Political opponents demand govt to reveal details on pandemic contracts
NASSAU, BAHAMAS — State Minister for Finance Kwasi Thompson said yesterday the provisions of the Public Procurement Act provide for the government’s ability to publish the names of beneficial owners for recipients of government contracts.
Thompson was responding to Eyewitness News inquiries after an auditor general’s report into a $US250 million International Monetary Fund (IMF) rapid financing instrument noted that government had yet to disclose the names of the beneficial owners of companies that received payments for the delivery of goods and services related to COVID-19.
“Provisions in the new Public Procurement Act (Section 61A(1)), which takes effect on September 1, 2021, provide for the government’s ability to publish the names of beneficial owners for recipients of government contracts where funding has been sourced from an international agreement or funding agency,” he said.
“The government will comply with the law.”
The audit report, which was tabled in the House of Assembly on Tuesday, revealed that more than $63 million of the $250 million rapid financing instrument that was approved by the IMF in June 2020 was spent to pay overseas and domestic vendors.
The government spent $29,670,400 for overseas vendor payments and $33,668,242 for domestic vendor payments.
“We were provided with a listing of ‘suppliers of works and services’ that received payments for the delivery of goods and services related to COVID-19. Request was made for the beneficial ownership of these business entities, however, the same is pending,” the report noted.
The auditor general’s report further noted that there is “no law which imposes mandatory disclosure of beneficial ownership information on the government”.
Alluding to an IMF reference regarding beneficial ownership, the report said: “We note that beneficial ownership full disclosure plays a pivotal role in the good governance in governmental financial affairs with respect to transparency and accountability; integrity and law enforcement; and mitigating the risks associated with abuse of public funds, corruption and financial fraud.”
The Auditor General’s Office has recommended that “consideration be given to addressing the beneficial ownership disclosure in terms of advancing and strengthening good governance; harnessing accountability in public sector procurement and financial affairs; further strengthening good corporate governance of all legal entities doing business in the country; and further advancing compliance in the regulatory environment to maintain good ethics for safety and protection”.
The issue was quickly seized by political opponents yesterday, with Democratic National Alliance (DNA) Leader Arinthia Komolafe demanding Prime Minister Dr Hubert Minnis reveal who got COVID pandemic-related contracts.
“The auditor general’s report recently tabled by the speaker of the House of Assembly is evidence that the FNM (Free National Movement) government is not committed to good governance,” said Komolafe.
“According to the report, the government failed to provide the names of ultimate beneficial owners of entities that received COVID-19-related contracts. In recent weeks, the government and companies that were awarded contracts during the pandemic have come under pressure and scrutiny based on allegations of cronyism, nepotism, favoritism and political patronage.”
She added: “The consent of the entities [given contracts] involved should have been obtained and at a minimum, the details ought to have been provided to the Office of the Auditor General.
“The DNA calls on the government to prove that the COVID pandemic has not been used to unjustly enrich its political supporters, cronies, family, friends and lovers. Respond to the request and reveal the names of those who received millions in COVID contracts.”
Progressive Liberal Party (PLP) Leader Philip Brave Davis, while addressing Parliament yesterday, said: “The greater the lengths they go to [to] hide their spending on contracts, the more suspicious the public is.”
Davis also referenced the health visa contract that was awarded to Kanoo.
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