NASSAU, BAHAMAS — A governance reformer said yesterday that perceived corruption and a lack of transparency in the Bahamian government’s procurement process, as highlighted in the US State Department’s 2020 Investment Climate Report, only further underscore the need for this nation to “push forward” with critical pieces of anti-corruption legislation.
Matt Aubry, the Organization for Responsible Governance’s executive director, told Eyewitness News that what the report highlighted was “nothing new”, but “drives home” the point that this nation must ensure it takes steps to weed out corruption and the perception of corruption by increasing transparency and accountability.
The US State Department’s report noted: “Negative aspects of The Bahamas’ investment climate include: a lack of transparency in government procurement, shortages of skilled and unskilled labor in certain sectors, a bureaucratic and inefficient investment approvals process, time-consuming resolution of legal disputes, the high cost of labor and the high cost of energy, which averages four times higher than in the United States — primarily driven by antiquated generation systems and almost complete dependence on inefficient fossil-fueled power plants.”
The report noted that the current administration has prioritized infrastructure projects focused on non-oil energy, including a liquefied natural gas (LNG) plant on New Providence and various solar projects on the Family Islands.
The report noted that the Bahamian government does not have modern procurement legislation and companies have complained the tender process for public contracts is not consistent, and that it is difficult to obtain information on the status of bids.
“US firms have identified corruption as an obstacle to FDI (foreign direct investment) and have reported perceived corruption in government procurement and in the FDI approvals process,” the report stated.
Aubry told Eyewitness News: “We are in a climate where responsible foreign direct investment is crucial. We need it for our foreign reserves. We want to encourage new, innovative technologies and opportunities here.
“While we are trying to foster local economic development, these issues of actual or perceived corruption can inhibit development.”
He added: “We have legislation that is pending that could make a major step forward and help our reputation. We have the Freedom of Information Act that is yet to be fully enacted and we have the Integrity Commission Bill and Ombudsman Bill, which were tabled in 2017.
“Those are major steps that can move things forward but have not been moved on the legislative agenda since. There’s also the Procurement Bill, a more recent piece of legislation.
“We have the instruments of our salvation sitting there and they just need to be pushed forward.”
The State Department pointed to the Minnis administration’s draft Public Procurement Bill, 2020 which was tabled in Parliament last June along with the 2020/2021 budget. That bill is slated for debate during Q3 of the 2020/2021 fiscal year.