By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
THE Bahamas Agricultural and Industrial Corporation (BAIC) “largely” failed to pay NIB contributions between 2012-2017 despite deducting these from employee salaries, it was revealed yesterday.
Michael Foulkes, the BAIC chairman and Golden Gates MP, lamented the Corporation’s “dire financial straits” with outstanding debts standing at $3 million - including $1 million owed to the National Insurance Board (NIB). He added that its workforce had near-tripled during the Christie government’s tenure.
Mr Foulkes, during his mid-year Budget contribution, accused the former administration of “gross mismanagement” and “lack of fiscal responsibility” with regards to BAIC.
Among its outstanding commitments, he added, was the $300,000 owed to Bahamas Power and Light (BPL). Mr Foulkes told Parliament that while BAIC’s solar system had been projected to save the Government 40 per cent on energy costs, it had no batteries or tie-in to the grid.
“The Corporation’s group medical coverage is in a suspended status, but we are working towards the restoration of coverage soon,” Mr Foulkes said. “During most of the last five years the former government did not pay BAIC’s portion of its National Insurance Board (NIB) payments. This resulted in BAIC owing in excess of $1 million to NIB.
“Over the past five years, for the most part, BAIC deducted the employee portions from their monthly salaries representing the NIB portions, but BAIC did not pay the funds to NIB. Money was taken from the employees’ pay cheques but not paid to NIB. That amount is just under $700,000.
“The question is: What did they do with the employees’ money? Meanwhile this government is left to secure these funds during these pressing times. We have paid the employees’ contributions that were deducted from their salaries in January and February, and we intend to do likewise this month.”
Mr Foulkes then revealed that BAIC’s workforce had increased significantly under the previous administration - from 77 to 200 line staff and contractual workers. The Corporation has undergone two downsizing exercises since the Minnis administration took office.
He added that BAIC was moving to curb abuses with respect to land use and would crack down on delinquent tenants.
Comments
Well_mudda_take_sic 6 years, 8 months ago
There is a term for this foolishness. It's called FRAUD and it's a criminal offense!
Porcupine 6 years, 8 months ago
Absolutely correct. And, criminal offenses should have consequences so that there is a deterrent effect. The lack of deterrents for crime here is precisely why it goes unchecked and more prevalent each year that goes by, no matter who's in power.
TheMadHatter 6 years, 8 months ago
Standard procedure under the PLP.
The ongoing issue is the silly DELAY that Turnquest has said to switch to an accrual accounting system. All non-recurrent expenditure should immediately be switched to accrual. Recurrent is best handled by the current software. This could be switched over by end of this month. This is my area of expertise. It is not as big of a deal as some would make people believe. An office with 3 persons could handle the data entry for the new commitments and the ongoing payments of the entire govt including the govt corporations. Yes, i'm serious. Old commitments could be added as they are discovered in the rats nest. I worked at Min of Finance for years, so i'm not guessing here.
Finally, and perhaps most importantly new laws need to be passed (and implemented) that REQUIRE that all loans and commitments of any kind must be noticed to the Shadow Minister of Finance and failure to do so is punishable by jail time for the minister that it happened under.
This foolishness of the opposition party spending over a year to just discover the problem before they can solve it has to stop.
The question is does the FNM have the cajones to do it, or are they just going to stick their tongues out at the PLP and say "Too bad for yall. Now it's our time to hide the Easter eggs. Yall find 'em 5 years from now if you can." That is just childish, irresponsible, and unpatriotic. People's grandchildren have to pay in the future for today's foolishness.
Min Turnquest, if you want me to run that 3 man office for you, give a call. I would be honored to do so as a patriot. Respectfully.
hrysippus 6 years, 8 months ago
The NIB board was a total joke, . . . . .... They were enough to make all good men choke, . . . .... They spent so much on themselves, they were so greedy, . . . . They left little behind to pay out to the needy, . ... . . .. Retirement now with a pension big and fat, . . . . ..... Smiling to the bank like a canary catching cat, . . . ... ... They were eager to prosecute the ordinary man, .. .. . ... If he fell behind on contribution plan, . . . .. .. ... but Arnold Forbes and B.A.I,C. . .. . . .. .. ... Held to a different standard entirely, . . . . .. Just the corruption that was normal under Christie's PLP. . .. ..
bogart 6 years, 8 months ago
Very good Madhatter, but you would not be any more pattiotic than the men and women who wear a Bahamas flag on their Lapel.......and swear on the bible to do your job and perhaps even in front of Her Majesty's Representative.
Respect your expertise. Good points. Possibly some delays arise because the CEO is not the same as the Finance Minister......and many 35 to 4 are looking for swift justice.
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