The Tribune

By AVA TURNQUEST

Tribune Chief Reporter

aturnquest@tribunemedia.net

FREE National Movement Senator Dr Duane Sands forecast yesterday that the government would attempt to prematurely roll out large-scale initiatives in a desperate bid to woo disenchanted voters ahead of the 2017 general election.

Pointing to the Christie administration’s revamped mortgage relief plan, Dr Sands said other programmes will be initiated with a life expectancy until just after Bahamians head to the polls.

“The referendum was a wake up call that demonstrated to the government that they have very little currency among Bahamian voters,” he said.

“Now Mr Christie made it very clear that he wanted to understand the message being sent by the voters. I believe that he has gotten the message that every single thing you promised you have not delivered on, and so whether it makes sense, whether it’s carefully thought out, whether viable or not, some effort is going to be made to roll it out and the mortgage relief programme is the first of these.”

Dr Sands added: “If we were to ask independent observers to look on and scrutinise this programme and opine I suspect there would be questions about prudence, viability, sustainability of this programme but we don’t have to get beyond May 2017.

“It only has to work until people have to get into the ballot box. The same thing will likely apply with NHI. Don’t be surprised if we have a very attractive appealing benefits rich NHI programme that’s rolled out even if it risks bankrupting the piggy bank. Desperate people do desperate things.

“We are looking at a desperate administration right now,” he said.

Prime Minister Perry Christie announced the revamped mortgage programme during his budget contribution last month. The programme is expected to provide financial incentives that will allow banks to offer borrowers who have some ability to pay, but have fallen behind, the chance to get back on track. Initial estimates indicate that more than 1,000 delinquent borrowers are slated to qualify for the plan, according to Mr Christie, who said the number could go higher.

The Christie administration introduced its first mortgage relief plan in 2012. At the time, 4,000 homeowners were in mortgage payment arrears and that year, State Minister for Finance Michael Halkitis said around 1,000 people would likely qualify for help under the plan.

However, in May 2013, Mr Christie told the House of Assembly he expected only “four or five” homeowners to benefit from the scheme.

Yesterday, Dr Sands, former chairman of the Bahamas Mortgage Corporation, questioned the source of funding for the programme, and why it was restricted to only delinquent mortgagers. He said the initiative appeared to be an exercise in “voodoo economics”.

“The proof of the pudding will be in the eating,” he said.

“I find it a little bit too good to be true and the timing also leaves me very suspicious or cynical so let’s see whether ordinary Bahamians actually benefit or whether this will be five or six people again that benefit.

“This is being rolled out with tremendous fanfare, it’s an interesting plan but let’s see details, what inducements are being provided to these commercial lending institutions to vary their contractual relationships with homeowners or mortgagers.”