The Tribune

The US has delivered “another kick in the hip” to the Government’s conduct of economic policy with its latest transparency concerns over public sector contracts, the Democratic National Alliance’s (DNA) leader charged yesterday.

Branville McCartney told Tribune Business that the fact that the US administration had issued two similar warnings within a year showed that the Government needed to “stop its foolishness” with the awarding of public procurement deals.

“The US has issued another warning to the Government,” he told Tribune Business. “A year ago, it issued a very similar warning to the Government about transparency in its negotiations of contracts.

“What the US is telling us, plain and simple, is that the Government must stop its foolishness. I’ve said, over and repeatedly, that no foreign direct investment (FDI) is coming at this time because they don’t want to deal with this government.

“The report indicates that they don’t want to deal with this government because of lack of transparency with these contracts. I’ve met with investors, and they’ve told me they’re not dealing with this government.”

Tribune Business revealed yesterday how the US State Department’s annual investment climate statement on the Bahamas warned yet again that the Government’s procurement processes are “particularly susceptible to corruption”.

“The procurement process is particularly susceptible to corruption, as it is opaque, contains no requirement to engage in open public tenders, and does not allow award decisions to be reviewed,” the US investment climate statement blasted.

“The Government has laws to combat corruption of, and by, public officials, but they appear to be inconsistently applied. Reports of corruption, including allegations of widespread patronage and the routine directing of contracts to party supporters and benefactors, have plagued the political system for decades.”

The report also repeated concerns over “a lack of transparency and undue political interference” with government procurement contracts, and said anti-corruption laws were “inconsistently applied”.

Pointing to how the US concerns continued to be repeated year after year, Mr McCartney told Tribune Business: “It indicates that the Government is not doing anything to take into account or change the way of doing business.

“They do business the way they think they ought to do it, and that is not being transparent. It shows they just don’t care about what the international community says about the way the Government does business, and it is the Bahamian people who suffer most.”

Mr McCartney questioned why the Government had failed to respond to the US State Department report, or challenge any of its assertions or findings.

He added that the typical response has been to tell the US to ‘put its house in order’ first, rather than criticise the Bahamas, and to argue that there is more corruption in our northern neighbour than here.

“They’ve failed to say they’re right or wrong,” the DNA leader said. “If you’re saying the US report is wrong, they ought to outline what it is.

“Alternatively, the Government should show they are open and transparent with contracts, and give examples, but they can’t do that because they’re not open and transparent.”

The US report alleged: “Some US companies have alleged a lack of transparency and undue political influence with government bidding and procurement processes. There is no requirement to engage in open public tenders, and award decisions are not subject to review.

“The Government has implemented procurement procedures in the management of funds from international lending agencies, but has not yet implemented best international practices for the management of national finances.

“In several highly publicised requests for proposal (RFPs), the Government has not met self-imposed deadlines, and contract renewals have been pending for 12 months or more.”

Mr McCartney suggested that the Government would be unable to ‘run away’ from the US report, given that its economic and fiscal policies are set to come under intense scrutiny from Moody’s, which is threatening to downgrade the Bahamas’ sovereign creditworthiness.

“It’s another kick in the hip of the Government in relation to the way they deal with the economy,” he told Tribune Business.

“You have this report saying the Government is not open and transparent in its dealings, and the Government has to go to Moody’s and say they’re trying to do certain things with the economy.

“They’re going to have to overcome that report saying they’re not being open and transparent. This is the second time in a year the US has said this, and the Government must answer and respond, if not to the US, the it will certainly come up with Moody’s, no if’s, and’s and but’s.”