The Tribune

BAHAMIANS have raised their voices against Government’s decision to raise the VAT tax from seven to 12 per cent. On the other hand, there are those who see no alternative but to raise taxes to stave off the looming financial crisis.

Health Minister Dr Duane Sands, made it clear that in his opinion VAT is a regressive tax that disproportionately affects the poor. On the other hand, in his opinion, the present situation is so grave that VAT is the only palatable alternative “in the face of the fiscal circumstances of life or death” – such as the potential bankruptcy at the National Insurance Board. Dr Sands did not mention his own Ministry, which is equally threatened by poor political decisions, questionable contracts, and lack of the essentials for the operation of even a basically equipped hospital – all inherited from the PLP government.

“The first step to generating more revenue without raising taxes is to improve the tax collection system, eliminate fraud and waste in the public Treasury and tackle corruption,” suggested a regular writer to The Tribune’s letters column, who signs himself “The Graduate”.

All of this is true — it is political fraud, waste and corruption that has got us to where we are today. It is so bad that its evil head has to be crushed immediately if there is to be a future for this country. However, when told that the increase in VAT to generate sufficient revenue to rescue the sinking ship would see the FNM out of office at the next election, Prime Minister Hubert Minnis told a Cabinet Minister that it would be “better to lose an election than to lose a country”.

Yes, fellow Bahamians, that is how serious the situation is.

Free medical care

For example, when the PLP were promising Bahamians that they would no longer have to organise the traditional cook-outs to raise sufficient funds for their medical care – which in future would be free – the politicians were so busy wasting the people’s money that the basic necessities of the Princess Margaret Hospital could not even be maintained. Their election-gimmick of free medical care was just that - an election gimmick. For example, the Princess Margaret Hospital did not have funds to repair its roof after a hurricane, yet it could spend $234m in the lead up to the 2017 election. The Christie government spent over $90m in medical related contracts – one of them for the cleaning of an Abaco clinic that had yet to be opened. Contracts were executed despite a $416m shortfall that prevented the Public Hospital’s Authority from purchasing much-needed medication, vaccines and completing critical renovations at the Princess Margaret Hospital.

In the Budget debate in the House, Dr Sands described efforts to address the “long-standing challenges in the recording, coding and analysis on clinic information for both statistical and medical billing purposes”. We understand that with only one staff member remaining in this department, the Princess Margaret Hospital’s billing is at least six year’s behind schedule. No wonder there’s no money in the till. Most of this potential revenue is probably no longer collectable.

We also understand that more than $54m worth of construction purchases that were approved by the PLP Cabinet were based on either faulty information or went ahead without Cabinet approval. Remember this is all being done with the people’s money.

Civil service trimming

The civil service must be drastically trimmed. It is most unfair on the many persons unqualified for the positions in which they were posted before the election to secure their vote, who will now have to be dismissed.

When making these decisions politicians have to remind themselves that they are custodians of the people’s money — not their own — but the decisions made should be made as if it were their own. For example, what politician would put an unqualified person on his own payroll? None, unless, of course, he were foolish. Therefore, why hire an unqualified person on the People’s payroll, knowing that after the election that person will have to be dismissed. This is now what is happening. There is no money left. The ship is sinking and the new government must make hard, and unpleasant decisions to save the country. The PLP got away with its mismanagement, because the people were not vigilant. They put their politics first and listened to the “sweet talk” of their MP before their own security. Now VAT is the price that has to be paid to survive.

It is a bit late now to complain about the past. An aware people will have to be alert to make certain that the mistakes of the past are not repeated, and that financial reports on every Ministry is not only up to date, but laid on the table of the House at the end of every financial year.

The future is now in the hands of the Bahamian people. As for the FNM — tread carefully, work diligently and keep the best interests of the Bahamian people at the forefront of all of your decisions. As for Bahamians, belt tightening might be required for a period because of your failure to demand that your politicians be accountable.

We agree with the prime minister — it would be better to lose an election than to lose a country.