The Tribune

By KHRISNA RUSSELL

Tribune Chief Reporter

krussell@tribunemedia.net

THE Public Parks and Beaches Authority “continued to run the red lights” issuing contracts that far exceeded its ability to pay in the lead up to the September 16 general election, according to the Authority’s new executive chairman.

McKell Bonaby told Parliamentary officials they have also found that some contractors do not have contracts to prove there was an agreement for them to work. Other contracts had no approval signature. In some other instances there was more than one contractor assigned to the same areas.

He said that between August and September this year, there were an additional $11m in new contracts issued. In total, he said between July 1 and September, the entity’s obligations ballooned to $23m.

Overall, the organisation’s financial obligation is now $37m from an initial approved $15.2m.

This despite the stipulations of the Public Financial Management Act and the Public Debt Management Act, which would have stifled the authority’s ability to review any additional funding, he told the House of Assembly.

This month alone, Mr Bonaby said the Public Parks and Beaches Authority has a shortfall of about $500,000 to $700,000.

The situation has placed executives in a predicament because while they do intend to pay as many contracts as possible, “difficult” decisions will have to be made, he said.

The authority has been the focus of much scrutiny since the Davis administration took office. Under the previous Minnis administration, St Barnabas MP Shanendon Cartwright was the authority’s executive chairman.

Mr Cartwright defended his tenure on Wednesday night in the House of Assembly, saying he will not allow his integrity to be placed in the “political crosshairs” whether from “without or within”.

It has been revealed the projected expenditure of the authority increased by nearly 150 percent in the months leading up to election, due to the award of contracts.

During his contribution to the Supplementary Budget 2021/2022, Mr Bonaby laid bare the fiscal challenges the authority now faces.

Budget

“The authority’s approved budget for this fiscal period is $15.2m starting from the first of July 2021. I am advised that $2m of that $15.2m is allocated for operational expenses. The other $13.2m was for contractual obligations,” the Mount Moriah MP said.

“The $15.2m is the annual budget which allows the authority to pay its bills and meet its obligations.

“Our obligations now far exceed the authority’s approved budget. While $15.2m was approved for 2021/2022, the authority’s obligation is now approximately $37m and so when we hear the rhetoric about financial restraint, we see what was happening at the Public Parks and Beaches Authority speaks to something different.

“The authority has exceeded the annual approved budget by $22m. To put this into context, that is larger than the budget for the Straw Market Authority, the Bahamas Development Bank and BAIC combined. Our obligations far exceed the approved funding allocated by Parliament. Our monthly obligation went from approximately $1.2m to now nearly $3m on a monthly basis.”

He explained the time it took to see an explosion of obligations.

“The first one, July, the monthly projected obligation was $1.3m. During the same month of July of this year the authority took on an additional approximately $10.6m in new obligations.

“When I say new obligations, I am referring to contracts. Sometime between August and September the authority became aware of an additional $11m in new contracts and so between the first of July and September of this year the authority’s obligations, as I said, increased to $23m.

“The authority was issuing contracts beyond what it was capable of paying based on the approved budget. Interestingly enough there were a number of laws that took effect on July 1, specifically the Public Financial Management Act (and) the Public Debt Management Act, which would have stifled the authority’s ability to receive additional funding after July 1.

“But the authority continued to run the red lights. So, what that meant is that even though the authority’s debts and obligations were growing it was unable to raise more money to pay the debts or the obligations that it was incurring.”

Mr Bonaby suggested this was a “war time” budget to be used for election purposes.

Mr Bonaby said he was hopeful the new executive board could bring order to the affairs of the authority.