Articles by Youri Kemp Senior Business Reporter

Technology

Thompson accuses govt of shifting millions in financial reports without explanation

Shadow Minister of Finance Kwasi Thompson has accused the government of producing financial reports with sudden shifts, often in the tens of millions of dollars, without providing the Bahamian people with clear or timely explanations. “The most recent example is particularly troubling. In the final fiscal report of the year, we see the government slashing its reported spending numbers downward by some $30 million, just enough to appear close to meeting budget targets. This conveniently timed revision raises serious concerns about transparency and accountability. Yet, the Bahamian people were offered no proactive explanation.” Thompson was responding to reports in The Tribune that the Ministry of Finance had not justified the removal of $37.3 million from spending and deficits incurred between July and November 2024. That report also said that the Ministry of Finance, when it unveiled the government’s fiscal performance for June and the full budget year, revealed that the fiscal deficit only exceeded initial projections by 13 percent to close at $78.9 million compared to the originally-targeted $69.8m. However, a closer inspection of the figures – particularly a comparison of the Ministry of Finance’s May and June fiscal reports – discloses that the government only came so close to its target because of last-minute changes to monthly expenditure and deficit figures for the first five months of the 2024-2025 fiscal year. Thompson also said: “While the Davis Administration continues to pat itself on the back for allegedly meeting fiscal targets and impressing international agencies, the daily reality for Bahamians tells a very different story, one of rising hardship, insecurity, and growing frustration. “Yet this government continues to speak in press conferences and spreadsheets, parading numbers that do not reflect the lived reality of Bahamians. This government continues to confuse fiscal public relations with economic reality. “The Davis Administration conveniently avoids talking about the crisis of 65,000 Bahamians who they have admitted are underemployed, forced to work part-time when they need full-time work. Economic recovery means nothing if it doesn’t reach everyone, and this government has done nothing to ensure that it does. “The wealth gap is growing. The cost of living is exploding, and this administration has forgotten the people who elected them. This government has failed to address the human crisis behind the numbers.”

Technology

Central Bank advises public consultations on compendium of proposed legislative reforms

The Central Bank of The Bahamas (CBOB), in a release on its website, advised that a public consultation on a compendium of proposed legislative reforms has commenced for public consideration. “The public consultation consists of two separate papers designed to enhance the financial regulatory framework, strengthen depositor protection, and improve overall the resilience of the financial system,” the bank said on Friday. The first consultation paper outlines amendments to several key pieces of legislation, including the Central Bank of The Bahamas Act, 2020, the Banks and Trust Companies Regulation Act, 2020, the Protection of Depositors Act, 1999, The Protection of Depositors Bye-laws, 1999, The Payment Systems Act, 2012, and The Payment Instruments (Oversight) Regulations, 2017. Additionally, there will be regulatory frameworks for the Protection of Depositors (Administrative Monetary Penalties) Regulations, 2025, and Central Bank of The Bahamas (Administrative Monetary Penalties) Regulations, 2025. The release continued: “These proposed reforms aim to strengthen the resolution framework for systemically important financial institutions, including banks and credit unions; migrate money transmission service providers from the banking framework to the broader payment institutions framework, in line with global best practices; strengthen oversight of payment systems and instruments and increase the scope to regulate payments instruments in the interest of the consumer; Expand depositor protection, supported by back-up funding arrangements to ensure confidence and stability in the financial system; and introduce governance and currency reforms, including provisions for the Bahamian dollar digital currency. “The consultation paper also reflects recommendations from the International Monetary Fund following technical assistance missions and safeguards assessments, which emphasized alignment with international standards.” There will also be attempts at reforming the credit union sector. The second consultation paper will outline key amendments to legislation, including the Bahamas Co-operative Credit Unions (Amendment) Bill, 2025; and the Bahamas Co-operative Credit Unions (Amendment) Regulations, 2025. “The draft bill and regulations reflect the Central Bank’s continued efforts to promote enhanced transparency and accountability, as endorsed by international standards-setting bodies responsible for supervisory and regulatory oversight of credit unions. As such, these legislative reforms seek to advance supervisory and regulatory requirements related to corporate governance procedures, capital adequacy, and reserve requirements for credit unions.”

Technology

ORG: Lots of opportunities in existing governance legislation nation can benefit from

Organization for Responsible Governance (ORG) Executive Director Matthew Aubry told Guardian Business that there are a lot of opportunities in existing governance legislation that the country can benefit from, notwithstanding the latest US Department of State’s recently released 2025 Bahamas Investment Climate Statement for the country. He said: “The bottom line on the US investment report is it reiterates a lot of things that ORG has been talking about for a while. There are a lot of opportunities to be leveraged in the existing legislation related to anti-corruption, including the Freedom of Information Act (FOIA), the ombudsman, the independent committee for investigation, the protected disclosures, and bringing these in full effect with appropriate funding.” He added that leveraging what is already in the current legislation can “unleash a number of positive opportunities.” The US State Department’s Bahamas Investment Climate Statement has raised concerns about corruption and stalled transparency laws in The Bahamas. The report said: “Despite government efforts to improve transparency and efficiency, investors face challenges such as a lack of clearly defined investment procedures, delays in resolving legal disputes, and incomplete implementation of anti-corruption reforms.” Aubry said: At our anti-corruption conference in 2023 we had all the sectors represented, and those sectors spoke to the varying activities that are happening. The private sector is spending lots of money on codes of ethics and training of staff. The government has different initiatives focused on integrity, including digital governance and work in the financial services center. Civil society groups like ours and the Caribbean Women in Leadership (CIWIL) are working to raise community level engagement, so that our political systems are less vulnerable to corruption and patronage. However, most of these exist in silos, and we are not connecting or leveraging them to see the full benefit of this potential framework, or have drafted a framework that could be utilized”. Aubry continued: “The US investment climate report also spoke to a number of key opportunities and presents an overall positive picture. That’s important, and you see how the leverage of laws and policies that connect tourism and economic development have created value. Prioritizing the laws around transparency, accountability, and anti-corruption can have a similar impact for all both economically and socially. “ORG is currently in the middle of supporting an access to information week, tied into a universal access to information day, to remind Bahamians that much can come from furthering transparency, and that they have the capacity to reach out to their elected officials and call for these pieces to be part of a legislative and national priority. “Transparency accountability is something that we all have a mutual responsibility for, and the absence of it limits all sectors in their movement forward towards national development.”

Technology

Building supplier: Abaconians have upped their game post-Dorian

An Abaco-based building supplier said that Bahamians have “upped their game” with regard to ensuring their homes are protected against hurricane-force winds like Dorian in 2019. James Allen, owner/operator of Ultimate Seawalls and Docks, told Guardian Business yesterday that business in Abaco post-Dorian in 2019 has been steady, and Abaconians are ensuring that their homes and structures are of the strongest quality and durability. “They are trying to build stronger and cover any loopholes they missed. Some people are cheap in a way, but usually they will pay the price later. Most people are investing in upgrading and whatever technology they can to make their structures safer.” Hurricane Dorian caused catastrophic damage in The Bahamas in 2019, with reports indicating many destroyed buildings, particularly in the Abacos and Grand Bahama, did not comply with the existing building code, despite the code being considered relatively strict at the time. While the building code required specific construction standards, a significant amount of damage was attributed to a lack of proper enforcement and the unprecedented ferocity of Dorian. The insurance industry faced significant strain, as up to 80 percent of affected homes and businesses were uninsured, placing a heavy burden on the government and taxpayers for reconstruction. Noting that a stronger building code is needed for the country, Allen said: “Right now hurricane impact windows are optional in the building code, because not all people can afford them. Most times they would get whatever is affordable, but I would suggest that moving forward, that should be the building code.” Although reconstruction on Abaco has gotten a lot better, Allen said there are still a lot of flood-prone areas, and this was seen after Tropical Storm Imelda moved across the country up to Abaco this past week. “Moving forward, we should have the drainage problem addressed, because some of these areas are prone to flooding. A lot of people still can’t get into their homes.”

Technology

Corporate services firm sees 40% jump in business filings under CESRA

A corporate services provider has reported a 40 percent client jump in clientele as a result of businesses needing to file under the Commercial Entities (Substance Requirements) Act, 2023 (CESRA). Peter Cartwright, managing director of PDC Corporate Services Limited – which provides company formation, management, accounting, and fiduciary services for businesses and individuals – told Guardian Business that his company had filed 150 companies under CESRA up to the deadline on September 30. He said this is a significant jump for a fledgling corporate services provider with less than five years in operation. CESRA was passed on January 1, 2019 and amended in 2023. It seeks to ensure that commercial entities that are resident in the Bahamas for tax purposes, and engaged in any of nine specified relevant activities, have adequate substance in the jurisdiction. Those activities are fund management, insurance, banking, distribution and service center, shipping, finance and leasing, intellectual property, representing themselves as a holding company, or having a headquarters in The Bahamas. “I think we have seen a 40 percent increase year-on-year,” Cartwright said, adding that he expects a further uptick in business as a result of CESRA. “For the most part, we do realize and recognize that The Bahamas is still one of those favorable jurisdictions for foreigners wanting to do business,” he said. “Early on, there was this resistance to all this change, because it felt like we can become a bit too over compliant. But as a result of this over compliance, or these new compliance measures, we’ve been able to get off those gray and black lists. It was really just a strength in our AML [anti-money laundering] procedures to comply with international best practices.” He continued: What we did this year was we sort of helped the clients out in a bit, where we pre-populated some of the declaration forms requiring signatures... We changed the strategy a lot this year, and we’ve seen the fruits of that labor.” He added: “I would say the lion’s share of our filings came in the ninth hour. And that’s not just the local companies, but the international companies as well. No matter how early you start the process, you will still get those clients that prefer to take it down to the wire. But thankfully, we didn’t have any issues with the systems. My team and I were working up until about eight o’clock last night. We got all the filings done. The portal was stable, so that helps a lot too.” Cartwright thanked the Office of the Attorney General for getting the country off of the Financial Action Task Force’s gray list, and making compliance with the CESRA possible. “We’re actively looking at the changes the government is making in the legislation to enhance and strengthen our AML procedures, and we want to make sure we are in a position where we comply and ensure that our clients comply with these new requirements.”

Technology

JBA rejects authority of Min. of Tourism to suspend Junkanoo beach employees

Junkanoo Beach Association (JBA) President Byron Coley-Austin told Guardian Business that the Ministry of Tourism, Investments and Aviation (MOTIA) has no authority to suspend employees of any establishment on Junkanoo Beach, and calls the interference by the ministry uncalled-for and without due process. Coley-Austin was responding to questions raised by Guardian Business with regard to its receipt of two letters addressed to Junkanoo Beach vendors Sony Ben-Aime, owner of C&S Watersports; and Tonia Leary, a hair braider, informing them that members of their staff are “prohibited” from working on Junkanoo Beach. The letter to Ben-Aime, signed by Waren L.D. Johnson, director of visitor safety and security, sites and facilities at the MOTIA, and stamped on September 30, 2025, said: “The ministry formally addressed the unacceptable conduct of Isaiah Moxey of C&S Watersports. The letter notes that on Monday, June 16, 2025, Isaiah Moxey was involved in a physical altercation with an employee of another establishment on Junkanoo Beach, that resulted in Moxey sustaining injuries and requiring hospitalization. “Following the altercation, both individuals were instructed by police officers not to return to Junkanoo Beach until the matter has been resolved, as they are both considered unauthorized workers. “It is important to note that the ministry has not received the required documentation for review and approval of the employee’s employment in accordance with the ministry’s policy. Additionally, in accordance with the ministry’s beach vendor agreement, fighting and acts of violence are strictly prohibited. Compliance with this agreement is mandatory and serves as a prerequisite for the ministry to issue its letter of non-objection, which vendors must obtain annually in order to renew their business licenses. “In light of this incident and the blatant disregard for authority, the employee has been prohibited from working on Junkanoo Beach unless and until he is formally approved by the MOTIA.” Moxey told Guardian Business that the incident in question took place in June. He claimed that since that time up to the release of the letter to his employer, MOTIA security staff along with Johnson have been harassing him and threatening his employment and free movement on Junkanoo Beach. He also claimed that at the time of the altercation in question, he was not on the job and was on his day off when the incident occurred. The second letter to Leary, also stamped on September 30, 2025, was with regard to the arrest of one of her employees for a drug possession arrest, that the letter said took place on September 25, 2025. The letter acknowledges that drug possession with the intent to supply is a serious breach of the laws of The Bahamas, and that the employee was placed on indefinite suspension, effective immediately, and is prohibited from working on Junkanoo Beach until further notice. Coley-Austin said that with regard to the employee of Leary, he was charged but never convicted of drug possession with the intent to supply, and he calls Johnson’s approach to the matter premature and intrusive to Leary and her staff member. Coley-Austin, in a statement sent to Guardian Business about the letters, said: “On behalf of the JBA, we write to urgently request an intervention into matters of serious concern regarding the conduct of the MOTIA’s security personnel, in particular its director of security. “Our association and its members have recently been subjected to escalating harassment, intimidation, and surveillance. Letters have been circulated to our staff without due process, and actions have been taken which appear designed to discredit and demoralize both our employees and executives. These actions go well beyond professional oversight and instead reflect an abuse of authority that has no place in a democratic society.” Guardian Business contacted the MOTIA to get further comment on this matter, but there has been no response up to press time.

Technology

Small contractor outlines difficulties accessing funding to expand

A local plumbing contractor said he wants to expand to a storefront operation, but said banks are not willing to lend him the money to take his growing business to the next level. Hatchelah Robinson Jr., owner of Lil H Plumbing, told Guardian Business that being a small contractor has its challenges, and access to funding is one of them. The second challenge is ensuring that larger contractors don’t skip out on paying him for his services. Shady contractors are a “contagious virus”, Robinson exclaimed, as his entire operation can be disrupted when he is depending on a check, and it doesn’t come through on time. “With greater access to funding you get to absorb not getting paid on time, it would be a lot easier to manage. But after you complete a job, and you’re waiting on the funding from that job, sometimes it’s a long runaround.” Robinson, who has grown Lil H Plumbing from a one-man operation in 2014 to now hiring four people full-time, said that working from his home is not sustainable any longer, especially when in his line of work as a subcontractor for larger companies, getting paid on time is a challenge. “It’s a struggle. The biggest thing is actually getting the money on time. I have three vans now, a team of about three or four people with me, and it’s about trying to make sure they’re paid... When they’re paid, I’m happy.” Robinson continued: “I want to look into expanding and getting into selling plumbing materials as well. So, I want to set up a storefront, that’s the next step.” Robinson said despite being a customer of his bank for nearly 15 years, obtaining a loan as a budding entrepreneur has been difficult. “I’ve been banking with my bank from the inception of my business, they’ve seen all of my records, and they see the money going into the account and growing, and they are telling me I need to come up with more money to get money.” He continued: “As a young person, they tend to give the older people the opportunity before you. So it’s a step-by-step process, just trying to meet new clients and then hoping that the word of mouth keeps spreading. I’ve been doing it on the side since I was working at Atlantis, so basically, I’ve been in the business part-time, for over 10 years. And it took about five just to get that friction to where I was able to take it further and make the jump into entrepreneurship.

Technology

Central Bank: Number of non-performing loans up in August

The Central Bank of The Bahamas said in its Monthly Economic and Financial Developments (MEFD) report for August 2025 that the number of non-performing loans has increased. The MEFD report said: “Commercial banks’ credit quality indicators, although showing annual improvements, deteriorated slightly in the month of August, owing primarily to a rise in non-performing loans. Specifically, total private sector arrears grew by $2.2 million (0.5 percent) to $459.5 million, while the attendant ratio stabilized at 7.7 percent. “A disaggregation by the average age of delinquency revealed that nonperforming loans (NPLs) — arrears in excess of 90 days and on which banks have stopped accruing interest — increased by $3.0 million (1.0 percent) to $317.7 million, as the relevant ratio held steady at 5.3 percent. “Further, the NPL ratio for commercial loans rose by 43 basis points to 3.5 percent. However, the ratios for mortgages and consumer loans fell by 10 basis points to 7.5 percent, and by five basis points to 3.9 percent, respectively. Conversely, short-term arrears (31-90 days) declined by $0.7 million (0.5 percent) to $141.8 million, resulting in the attendant ratio narrowing by three basis points to 2.4 percent. “An analysis by loan type indicated that mortgage delinquencies grew by $3.8 million (1.4 percent) to $284.4 million, underpinned by a $6.2 million (7.0 percent) growth in short-term arrears, which overshadowed the $2.4 million (1.2 percent) decrease in non-accrual loans. Similarly, consumer loan arrears increased by $0.6 million (0.5 percent) to $128.2 million, attributed to a $1.1 million (2.7 percent) uptick in the short-term segment, which negated the $0.6 million (0.7 percent) reduction in the long-term component. “In contrast, commercial delinquencies contracted by $2.2 million (4.4 percent) to $46.9 million, as the $8.1 million (72.3 percent) decline in short-term arrears outstripped the $5.9 million (15.6 percent) increase in the non-performing category. “Meanwhile, banks increased their total provisions for credit losses by $0.8 million (0.3 percent) to $272.4 million in August. However, the ratio of total provisions to total arrears declined by 11 basis points to 59.3 percent, while the ratio of total provisions to non-performing loans fell by 55 basis points to 85.7 percent. During the review month, banks wrote off an estimated $5.2 million in overdue loans, and recovered approximately $4.2 million.” The MEFD report also said: “In interest rate developments, the weighted average loan rate fell by 31 basis points to 11.37 percent. Conversely, the weighted average deposit rate rose by 25 basis points to 0.68 percent. The highest deposit rate offered was 3.75 percent, on fixed balances over 12 months. “Total Bahamian dollar deposits rose by $14.7 million in August, a turnaround from a $27.4 million contraction in the same period of the previous year. Leading this outturn, demand deposits advanced by $31.7 million, a switch from a reduction of a similar magnitude a year earlier. However, savings deposits growth tapered to $4.5 million from $15.3 million; and the decline in fixed deposits extended to $21.5 million, from $11.4 million in the year prior. Meanwhile, residents’ foreign currency deposits increased by $27.0 million, a shift from a $26.9 million contraction in 2024.”