PRIME Minister Dr Hubert Minnis.
By KHRISNA RUSSELL
Tribune Chief Reporter
krussell@tribunemedia.net
PRIME Minister Dr Hubert Minnis yesterday announced the government’s intention to implement a Sovereign Wealth Fund, saying the law governing the fund will likely be updated.
Countries typically look to form a sovereign wealth fund to manage and invest excess cash from royalties and budgetary surpluses, Dr Minnis said. While the country is not yet at that stage, Dr Minnis said there are valuable land and natural resource assets at citizens’ disposal.
This fund, he said, will enshrine an accountable and transparent means for Bahamians to ensure that national assets are deployed and developed for the benefit of the entire country.
The Economic Recovery Committee in its report last year recommended the establishment of such a fund.
“The government has already executed a legal review of the Sovereign Wealth Fund Act of 2016, with a view to enhancing the provisions of the legislation,” Dr Minnis told those gathered at the 2021 Bahamas Business Outlook yesterday.
“The proposed legislative changes fully embrace the Santiago Principles, which are international best practices designed to address concerns by investors and regulators about transparency, accountability, and the governance structure of such funds.
“Countries typically look to form a sovereign wealth fund to manage and invest excess cash from royalties and budgetary surpluses. While The Bahamas is not yet at that point in our development, we appreciate that we have valuable land and other natural resource assets.
“We also recognise that the country needs an independent, non-partisan, transparent, accountable entity to manage some of our most valuable land and our precious natural assets for the benefit of the Bahamian people. Such oversight may help to reduce corruption by public officials.”
He continued: “This Sovereign Wealth Fund will also likely manage a special sub-fund that will be dedicated to expanding critical infrastructure throughout The Bahamas, especially in our Family Islands.
“To maximise the potential of our Family Islands, critical transportation, healthcare, education, heritage, cultural, commercial and power infrastructure must be built, and built to world-class standards. In the face of climate changes, such infrastructure must be resilient.”
Dr Minnis told the conference that a National Infrastructure Fund will mobilise public and private capital, from local and international sources, to be deployed in the true spirit of public-private partnerships (or PPPs) to meet the estimated two billion in infrastructure development needs throughout our extensive archipelago.
“The Sovereign Wealth Fund and the accompanying National Infrastructure Fund will transform the way in which we approach the development of our country. These funds will enshrine accountable and transparent means for Bahamians to ensure that our national assets are deployed and developed for the benefit of the entire country.”
Dr Minnis also said his administration is focused on economic recovery and getting Bahamians back to work as quickly as possible.
However he said given the current state of public finances, the government has had to make
some “tough” decisions.
“As a temporary measure to avoid any further deterioration in our fiscal position, we are reducing new capital expenditure for the current fiscal year,” the minister of finance said.
“However, for a number of planned new projects, the government is exploring creative alternatives to finance such critical infrastructure.”
These projects include site works at the Exuma International Airport; the Long Island International Airport at Deadman’s Cay; the North Eleuthera International Airport and upgrades to the Leonard Thompson International Airport at Marsh Harbour.
“Similar to the Lynden Pindling International Airport model, the government intends to aggressively implement a public private partnership programme to complete these capital projects.
“Such public private partnership methods may include the use of passenger facility charges and other airport usage fees to fund the development of our Family Island infrastructure, as opposed to funding exclusively via the Public Treasury,” Dr Minnis said.
“While we must adapt the mode of financing for a number of key infrastructure projects, our commitment to develop Family Island infrastructure remains as strong as ever.
“Such significant investment in airport infrastructure will support increased airlift to our Family Islands as tourism rebounds. It also represents some $150 million in infrastructure stimulus spending in these islands.”
In December, Senator Kwasi Thompson, the newly-appointed minister of state for finance, told the Senate that the Minnis administration is aiming to slash $100m apiece from both its capital and recurrent (fixed cost) spending after 2020-2021 first quarter revenues came in $68m below projections while spending soared.
Comments
TalRussell 3 years, 11 months ago
Comrade Mr. Minnis is not ready to run anything much less have his 38 redcoat candidates - rungin' doorbells and knocking doors constituents during a snap April 16, 2021, general election.
Nonetheless, how can it not be by pure redcoat corruption to travel abouts colony's out islands delivering redcoats' pre campaign messages - whilst the 39 and election teams run real risks infect many thousands of constituents with COVID, all whilst it's the PopoulacePurse be's left be picking up the campaigning and medical treatment costs any and all new COVID patients.
The 39 redcoats', should be made be insured covered as possible spreaders the killer COVID. Shakehead a quick once for upyeahvote, Twice for not?
GodSpeed 3 years, 11 months ago
The time to enact a Sovereign Wealth Fund was 48 years ago when independence was declared shortly after the Nixon shock and the nation had basically zero debt. All that had to be done was to purchase Gold continuously. Even starting in the 90's would have been okay. Now we have a debt to GDP ratio of over 100% and only have dollars backed by USD which the Socialists over there will be feverishly devaluing continuously to support their gigantic welfare state. Good luck with that.
TalRussell 3 years, 11 months ago
My Comrade GodSpeed, Mr. Minnis's Sovereign Wealth Fund stash might just be onto something - considering all the natural salt we gots. on the out island of Exuma?
shonkai 3 years, 11 months ago
Hahahahaha, Budgettary Surplus, hahahahahahaha. Rolling around on the floor laughing.
ted4bz 3 years, 11 months ago
So we’ve seen this movie before, the audio and picture never match.
Y’all stop pushing these people in a position to serve y’all political chicanery. Unless you’re on the top of the party supporter list, you’ll get nothing other than emotional promises and hopes. Stop forcing them to fool you all.
Topdude 3 years, 11 months ago
One of the unfortunate outcomes from slavery and colonialism is the failure Of Some former Slaves and their descendants to believe in themselves and the capacity to achieve.
Here we are in twenty first century being led by a visionary leader and some Bahamians are still believing that we cannot achieve and that we cannot overcome. This is the mindset that impoverishes and holds us back from achieving development.
What the Honorable Prime Minister is proposing is nothing new. Look at Singapore as an example to see how such a Sovereign Wealth Fund has contributed to that country’s sustained development.
The National Infrastructure Fund is also nothing new. It is one proven path to infrastructural development and modernization.
The comments above criticizing these innovative strategies suggest to any objective citizen that these sad individuals are like crabs in a barrel. They are incapable of throwing off their blinders and they continue to live in the past. They need socio- emotional and psychological assistance to break away from this negativity, “can’t doism” and dependence on the crumbs from the table of the master by doubting the innovative ideas and guidance from our leader at this juncture in our nation’s history.
Please throw off your self imposed shackles of straw market thinking and rise to the occasion of embracing the new and visualize the outcome.
FrustratedBusinessman 3 years, 11 months ago
"budgetary surpluses"
Minnis needs a psychiatric evaluation ASAP. We haven't had a surplus since the days of the UBP, and will not have one any time soon either.
TalRussell 3 years, 11 months ago
My comrades, care to define the difference in the mood if you were about to appoint Mr. Minnis, as the Executor over your own Sovereign Wealth Fund?
ThisIsOurs 3 years, 11 months ago
In 2017 I said it appeared as if they were running the country by "talk show". Whatever the hot topic of the day was, the govt would jump to address it with some new initiative... while that might be a good thing in some situations, i.e. "they're listening", it gave the distinct impression that they had no rudder and no plan.
SP 3 years, 11 months ago
Agreed. Purposely no definitive reference to what and where these surpluses are derived. This government also has a knack for saying what seems popular, then doing the opposite as is the case with coconut vendors that were promised coolers, umbrellas, etc' which never materialized, and no explanation given. We are supposedly too stupid to remember.
Regardless of the electorate decisively voting the dancing clown out the last election after 5 years of unbridled, highly insulting stupidity, they continue to think we are stupid and forgetful.
2022 soon come!!
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