The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Governance reformers yesterday argued that the Bahamas Power & Light (BPL) board turmoil highlights why The Bahamas must overhaul how state-owned enterprises (SOEs) are run.

Robert Myers, the Organisation for Responsible Governance’s (ORG) principal, told Tribune Business that the Government needed to enact legislation similar to New Zealand’s State Sector Act to prevent a repeat of infighting that threatens to jeopardise a $500m economic boost that may cut light bills in half.

Emphasising that energy reform “merits high priority”, Mr Myers said the potential benefits from Shell North America’s new power plant for New Providence were in danger of being undermined by allegations and counter-allegations of political meddling and other “nonsense”.

“Why are we not putting the right people on these Boards with the right experience and understanding?” the ORG principal asked. “This goes back to ORG’s position for the need for these reforms represented in the State Sector Act.

“The State Sector Act was specific legislation put in place by New Zealand for the same reason and problems we seem to be having; that there’s too much political meddling between MPs and state-owned enterprises.

“They [governments] put political supporters and donors in charge of these Boards rather than the right people. Politics gets in the way.”

Mr Myers explained that a Bahamian version of the State Sector Act would define the relationships between ministers and SOE Boards and management, limiting the former’s influence and involvement to policy issues and setting out the relationship and roles between all parties.

He argued that, in this way, the potential for political interference would be eliminated or minimised, improving governance and the operational/financial performance at SOEs. It would also boost accountability and transparency in the public sector.

“It would be the same as the private sector; find the best person and hold them accountable,” Mr Myers said. “We’ve been saying that for five years; accountability, accountability, accountability.

“Hold them [Board members and management] accountable, give them a mandate, give them a timeline. Put the right people on the Board and give them a directive. Ministers are there to set policy and give direction. They’re not there to run the business.”

Mr Myers told Tribune Business that too much was at stake for the Bahamas and its economy for there to be a repeat of the BPL Board controversy and its potential impact on energy reform. “There’s half-a-billion dollars in this decision,” he said, “the one very thing we should be pounding away on.

“It’s more delays, more nonsense, more people having to come up to speed.... These are serious businesses, and they’re not being run like serious businesses. Until somebody steps up and recognises this is a serious setback to the running of the Board we’re going to keep making the same mistake.

“The State Sector Act would keep people in their place. Politicians will be politicians, Board members will be Board members, and management will be management. Until we do that we will keep running around in circles,” Mr Myers continued.

“It’s insanity. Get some people in there that understand business, understand governance, and make changes to our laws that make changes to our governance.”

Paul Maynard, the Bahamas Electrical Workers Union’s (BEWU), told Tribune Business that the Bahamas needed to end situations where families were forced to choose between putting food on the table or paying their light bill.

“We need to cut light bills in half,” he said. “That’s the only way we’re going to survive. The time has come for a mother to stop deciding whether to feed her children or pay BPL.”