The Tribune

By NICO SCAVELLA

Tribune Staff Reporter

nscavella@tribunemedia.net

POWERSECURE has selected subcontractor Mike Harreld to assume the role of interim CEO of Bahamas Power & Light (BPL) effective today, as the company’s board prepares to implement systems to “track and eliminate fraud and financial abuses.”

BPL’s board, in a statement obtained by The Tribune, also announced that it is in the “final stages” of “separating from the company, the last of the employees” identified in the forensic audit report into the multi-million theft scheme at BPL.

However, the board said it is not at liberty to release the report as the matter is still under police investigation.

The board’s announcement comes just days after former BPL CEO Pamela Hill was terminated. Mrs Hill’s termination came less than a week after the company fired three junior employees in connection with the more than $2m fraud scheme uncovered earlier this year.

The five-month long scheme involved approximately 44 cheques paid out to 16 vendors from December 16, 2016 to May 9, and prompted a wide-ranging audit by Ernst and Young of the electricity provider.

The board’s statement, however, stressed yesterday that Mrs Hill’s termination was “in the best interest of BPL,” and not a “consequence of the ongoing fraud investigations in BPL.”

The statement also said company is prepared to leverage its leadership and current business assets and platforms to execute what it sees as “enormous growth opportunities” on which BPL can “capitalise.”

It added BPL “can and will return to a path of robust growth, renewed financial strength and an innovation leader in the industry,” and that the board is “committed to exploring and evaluating possibilities and opportunities that will put BPL on a trajectory for revitalisation and deliver value to shareholders.”

The statement further said the board is “resolved” to pursue a “steady course of action towards the attainment of all of the company’s human and capital resources functioning at optimal levels of efficiency and capability.”

That plan, the board said, includes the implementation of systems to “track and eliminate fraud and financial abuses;” the engagement of local professionals and talents to help enhance BPL’s management and core staff units; treating “with respect” both the Bahamas Electrical Workers Union (BEWU) and the Bahamas Electrical Managers Union (BEMU) as well as the executive team, and ensuring BPL’s customers “receive top quality of service at a reasonable rate.”

“Once these objectives can be achieved the company will emerge as a more productive, efficient and profitable exercise,” the statement added.

“Enormous growth opportunities exist on which BPL can capitalise,” the board’s statement continued. “We fully intend to leverage the company’s leadership and current business assets and platforms to execute against these opportunities. We have the support of our talented teams and tremendous resources.

“This company can and shall return to a path of robust growth, renewed financial strength and an innovation leader in the industry. This board is committed to exploring and evaluating possibilities and opportunities that will put BPL on a trajectory for revitalisation and deliver value to shareholders.

“The board has addressed various performance issues with PowerSecure, and is anticipating that these are rectified in a specified timeframe.

“Our success depends on all stakeholders uniting behind our common goal of ‘building for better’ and it will call for mutual respect, patience, trust and a unified approach. It is our duty to serve at the highest levels to ensure that ‘our better becomes best.’”

Mrs Hill was named CEO in May 2016. She replaced Jeff Wallace, who resigned citing “personal reasons” weeks after the government finalised its deal with BPL’s management company PowerSecure.

PowerSecure’s five-year management services agreement (MSA), reportedly worth as much as $25m, was promoted by the former Christie administration as being the answer to sub-par electricity service and high electricity bills.

In a surprising move last week, however, BPL’s board instructed its legal counsel to demand reimbursement from PowerSecure of all funds gone missing due to the vendor fraud scheme. Additionally, the board called on PowerSecure to “cure all deficiencies and/or breaches” set out under the MSA within 30 days.