The Tribune

By KHRISNA VIRGIL

Deputy Chief Reporter

kvirgil@tribunemedia.net

THE Minnis administration continues to discover all manner of “financial irregularities,” Prime Minister Dr Hubert Minnis said yesterday, among them a nearly $2m remediation contract to a former high-ranking member of the Progressive Liberal Party and a questionable brokerage contract.

The prime minister was referring to a contract worth $1,853,829.56 to Errington “Minky” Isaacs, chairman emeritus of the PLP, who was a director of Penta Industrial Services Co Ltd and a customs brokerage contract worth $923,707.75 a year to a Fitzgerald—whose first name he did not call—for services to Bahamas Power and Light Ltd, formerly the Bahamas Electricity Corporation.

Dr Minnis said the government was also investigating an account that was set up to deal with the hosting of the Inter-American Development Bank’s Annual General Meeting last year. He explained that over $18m was transferred into this account from which payments were made between October 21, 2015 to April 2017.

He said the government was investigating how the funds were being paid, who authorised them and who were the beneficiaries of these payments.

“Despite having most of their front bench wiped out at the election, the (Official) Opposition has shown neither humility nor remorse for their actions while in office,” Dr Minnis told the House of Assembly as he wrapped up the budget debate. “Two of them sat at the Cabinet table and bear collective responsibility for the actions of the former government. We will not allow them to escape that responsibility. We continue to be amazed at what we are finding out about the PLP’s way of doing business.

“Mr Speaker, I wish to draw the attention of the House to payments made by (the former) Bahamas Electricity Corporation/BPL to various vendors. I note two of these payments . . . though there are more, some of which will surprise most, but not all the members of the House.

“I also note that contracts over $100,000 require bids or requests for proposals (RFPs). The contracts I am noting today were over $100,000. However, no bids were sought for these contracts. But let me explain it, request for proposals were sent out (and) companies sent in their documents but they were ignored and individuals were subsequently contacted and asked to bring their contract in and they were granted the contract.

“One of these contracts—and I wouldn’t call the first name so as not to call people’s names—but one of these contracts was (to) a Fitzgerald for customs brokerage services.

“The commencement was September 20, 2012, while the expiration date for the contract was September 2015. The annual amount of the contract was for $923,707.75.

“The beneficiary of another contract is Errington Isaacs, chairman emeritus of the PLP, who was a director of Penta Industrial Services Co Ltd. The commencement date was March 27, 2013, while the expiration date for the contract was March 27, 2017.

“The amount of the contract was $1,853,829.56. The contract was for ‘the provision of labour and cleaning services for BEC’s premises located at Blue Hills Power Station and Clifton Pier Power Station.’ Remedial work of this kind requires specialised knowledge.”

However, Dr Minnis said the person awarded this contract knew as much about oil remediation as the prime minister does about flying a space shuttle.

Regarding the IDB account, Dr Minnis said it is not clear why money is still being paid from the account.

He said: “We continue to discover all manner of financial irregularities. The Annual General Meeting of the Inter-American Development Bank was held in the Bahamas in 2016. An account was set up to deal with hosting the IDB Meeting in the Bahamas in April of 2016. Over $18m dollars was transferred into this account from which payments were made between October 21, 2015 to April 2017.

“Notwithstanding that the IDB meeting ended in 2016, funds to the tune of $500,000 were paid to the Local Organising Committee in each of the months of March and May of 2017.

“It is not clear why monies are still being paid from this account. The legal basis for the Local Organising Committee has not been determined, nor why one of the signatories of the account is a contract officer. We are investigating how these funds are being paid, who authorised these payments and who are the beneficiaries of these payments,” Dr Minnis said.

The prime minister said the former administration also overloaded the public service with contract workers with little regard to where salaries would come from.

He said between December 2016 and May 9, 2017, 648 persons were brought on at a cost of $10,149,738.40.

In April alone, 119 were hired at a cost of $1.9 million and in May, the cost for new hires was $2.5m. Persons were hired outside the public service by letters, and when these are added in the wage bill rises to $14m, Dr Minnis said.