The Tribune

• Governance reformer: It ‘screams two things’

• Need for independent ‘vetting’ of concerns

• And ensuring political favouritism absent

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A governance reformer yesterday said there was “quite an obvious need for transparency” around the relationship between the Christmas Carnival and whichever political party is in power.

Matt Aubry, the Organisation for Responsible Governance’s (ORG) executive director, told Tribune Business that it seems “a bit left of above board” for the popular Christmas/New Year attraction to be obtaining its required permits and approvals via a political party.

Speaking after a letter was tabled in the Senate revealing that the governing Progressive Liberal Party (PLP) had applied to the Ministry of Finance/Customs for import-related approvals for all carnival equipment, the ORG chief said the situation “screams two things”.

These were a need for “greater transparency and objectivity” around the Carnival’s permitting process to ensure it was not receiving favourable treatment compared to Bahamian and foreign investors seeking the same approvals, as this would further strengthen scepticism that initiatives such as e-procurement will still be tainted by political favouritism.

And Mr Aubry said the growing political back-and-forth, amid revelations that the governing party - both FNM and PLP - may have benefited from a revenue/profit sharing agreement with the Christmas Carnival going back three decades or more, “reinforces” the need for an independent ombudsman or Integrity Commission to be created to probe potential “maladministration”.

Warning that unresolved concerns surrounding such situations again threaten to negatively impact The Bahamas’ international reputation and standing, the ORG chief said it could be a stumbling block to “attracting the right people” to invest in The Bahamas and drive reboot the economy post-COVID-19.

Revelations surrounding the Christmas Carnival’s links to whichever political party holds office, which emerged after the Ministry of Health and Wellness refused to grant permission for it to operate citing COVID concerns, suggest that Bahamians have for years effectively been unwitting participants in a political party fundraiser even though they may not support the governing group.

“The need for transparency is quite obvious in this case,” Mr Aubry told Tribune Business. “The process behind it, as it starts to be unbundled, does not necessarily meet what I think is a general understanding of how good governance is executed.

“Looking at this event, any event, regardless of whether it’s for a fundraiser it should follow the same process every vendor has to observe in writing to the Government, getting permits. Having access through a political party portal seems to be a bit left of above board.”

Mr Aubry said it was vital that equal treatment apply across-the-board, and that the Christmas Carnival go through the same processes, vetting standards and timelines as those that Bahamian and foreign businesses, plus non-profits, must comply with. The same benchmarks that are applied to the carnival should be the ones that the likes of Rotary clubs must meet.

Questions have already been raised over the Ministry of Finance’s decision to waive the requirement for the Christmas Carnival to lodge a Customs bond, guaranteeing payment of all due tariffs and fees, in the October 28, 2021, letter sent to PLP secretary-general, Barbara Cartwright, approving the temporary importation of all needed equipment and trailers.

“It screams two things,” Mr Aubry said. “We need far greater transparency and objectivity around this process. When we’ve talked about the new procurement laws, and being able to access government contracts, one of the big things we heard from small businesses is they feel decisions are made based on political favours, so they have less trust and are sceptical of the process.”

Building the necessary trust, he added, becomes harder when disclosures such as those surrounding the Christmas Carnival are made. “It reinforces that political party affiliation has a different entry point than anywhere else, and is easier than going through the established process,” Mr Aubry said.

And with carnival-related concerns threatening to become a political football, with “one side of the aisle against the other”, he argued that it “reinforces the need for an independent mechanism to weed out conflict of interest issues and maladministration - whether it be an ombudsman or Integrity Commission - so where there are concerns the Government has not adhered to the rules there’s space for resolution.”

Acknowledging that there are no campaign finance laws or restrictions on how political parties in The Bahamas raise funds, Mr Aubry reiterated that “there should be no advantage that is offered to a political party; they should follow the process as everyone else does”.

He added: “Things like this affect our reputation. Particularly as we need to drive the economy, we need to focus on attracting the right people here. The Bahamas is a place to do things above board, doesn’t tolerate conflicts of interest here, and has the means to attract top-class folks not people who have come to get around doors.”

Reuben Rahming, the FNM senator, provided further confirmation that both the PLP and the FNM have used the carnival events as major fundraisers for their parties when in power.

“The Carnival extravaganza started under the Sir Lynden Pindling administration and its current operator has been operating the carnival here for over 30 years,” Mr Rahming said. He explained that sponsorship of the carnival falls to the political party in power at that time.

The standard contract agreement with the carnival is made with the party, and not the Government of The Bahamas, as reflected in the approval letters that have been submitted even though the Public Treasury currently needs every cent it can get.

“As sponsor, the political party in this instance, which would be the Progressive Liberal Party, their duties and responsibilities are very, very clear. One, it is to apply for and obtain all necessary grants, permits, licences to enable operators to operate carnival, the carnival fair in New Providence and in Grand Bahama,” Mr Rahming said.

“Another responsibility that is a part of the contractual agreement that will be made between a carnival and a political party in power is that it will include all immigration work permits and health permits. The job is also to obtain the Ministry of Finance approval for importation of equipment and that includes even the wharf privileges for the off-loading of equipment for the carnival.

“In short, there is absolutely no way that the carnival can operate in this country without the express and direct involvement of the sponsors, so I encourage us to take a look at this matter and address this matter in the public interest.”

Zhivargo Laing, an ex-Cabinet minister, confirmed that political parties have partnered with carnival operators to host the event in the past and have likely reaped substantial financial benefits for doing so.

“The party in power tends to be involved and gets some financial benefit from it, that’s basically what I know,” Mr Laing said. “I thought (the financial benefit for a party) could be $200,000 plus, but I think it all depended on the economic circumstances of what they have in the projections of what carnival could do, but I have no definitive number on it...

“It certainly doesn’t breach any law, and I don’t know what the ethical dilemma would be for something that would bring employment, engagement, business licences and other taxes that have to be paid as per the law, so what could be wrong with that?”