The Tribune

By LEANDRA ROLLE

Tribune Staff reporter

lrolle@tribunemedia.net

ACTING Prime Minister Chester Cooper yesterday hailed the National Investment Funds Bill 2022 as a “transformational” piece of legislation that will lay the foundation for public sector investing and reinvestment in support of the country’s national development goals.

Mr Cooper, who is also Minister of Tourism, Investments and Aviation, moved the bill in the House of Assembly as he opened debate on it.

The proposed legislation seeks to repeal and replace the Sovereign Wealth Fund Act, 2016 and allow for the establishment and management of a national investment fund regime.

It also creates a framework that will aid national efforts to advance the blue, green, and orange economies of The Bahamas.

“The bill provides a legacy for future generations of the citizens of The Bahamas,” Mr Cooper told parliamentarians yesterday.

“It provides for the management of the natural resource wealth of The Bahamas and private investments held by the government of The Bahamas for the present and future benefit of its people in an effective and efficient manner.

“This bill ensures that investments and private share holdings of the government are managed professionally for the long-term benefit of citizens of The Bahamas.

“It ensures that revenues from the natural resources and investments of The Bahamas contribute to the economic certainty of the country and its people.”

The bill was first tabled in Parliament in October by Prime Minister Phillip Davis who supported the legislation, saying it will assist the country’s development and future progress.

Yesterday, Mr Cooper congratulated Mr Davis, who is currently out of the country, for the work put into the legislation.

“You would note the name of the bill, Madam Speaker, is the National Investment Funds Bill,” he continued. “The plural nature of the word ‘funds’ is deliberate as the bill provides for the establishment of one or more national investment funds and sub-funds. This is a Sovereign Wealth Fund, but it is so much more.

“Part two of the bill lays out the following reasons that a fund may be established under this law.”

These include the development of national infrastructure and public improvement projects; a public development and advancement project related to the blue, green and orange economy; to receive revenues derived from national assets and resources in public-private partnership, to receive revenues derived from the trading of carbon credits; among other reasons.

“We can set up an infrastructure fund, an education fund, a utilities development fund, a disaster recovery fund, et cetera, to drive national development,” he also said.

Mr Cooper said in short, the bill will allow for the government to maximise its revenues.

Through this bill, the fund will be managed by an appointed board of governors, which will consist of five members who are knowledgeable in matters of finance, investment, economics, business management or law.

For his part, East Grand Bahama MP Kwasi Thompson said there were a number of problems with the bill.

“It is an investment fund which means even if the government owns assets you have a board that must be independent and transparent and free from government political influence,” Mr Thompson said during his contribution to the debate.

“As I recall it was designed to have an investment fund manager who is a global investment firm who is free from political interference. This should be mainly driven, and I believe the member of Exuma said it should be driven mainly by the private sector and the private sector board.

“The problem, though, with this bill is that it is full of potentially political influence,” Mr Thompson said.