NASSAU, BAHAMAS — Labour and Immigration Minister Keith Bell that officials are looking into a few instances where Bahamian companies are suspected to have been ‘fronting’ for foreign entities, with the Bahamian Contractors Association president indicating that the issue is a serious concern for the construction industry.
Leonard Sands, the Bahamian Contractors Association president noted yesterday that while there is reason for optimism for the local construction sector given the number of construction projects in the pipeline, there remain areas of concern.
“We are excited about the number of projects in the pipeline but I have one concern. I see more and more like the minister noted fronting going on. I see these construction companies popping up and they’re doing an entire $50 million project and a marina and you never saw that company before. How do you allow that to happen today in construction? The guy who has been out there as a smaller contractor doesn’t even have the opportunity to compete at that level and it’s unfair,” said Sands.
The Departments of Labour and Immigration must work with the BCA to ensure that such entities cannot “pop up” and take work from bonafide Bahamian contractors. Construction companies in The Bahamas are reserved for Bahamians, except for special structures for which international expertise is required. Sands noted that the Contractor’s Bill address such issues.
“On Monday evening I received a communication from the Minister of Works and the Contractor’s Registrar, inviting the Contractor’s Association to submit their nominations for the Contractors Board. We were also advised that the two revisions the BCA made and the two revisions the other associations made were forwarded on for drafting for the amendments to the Construction Contractors Act,” said Sands. He noted that once the revisions received Cabinet approval, the amendments will be debated in Parliament and passed.
“We are aware of a few (fronting incidents) we are looking at,” said Bell. “There are several ways to deal with it. First of all, you can go to the business license department and ask them to cancel the business license. Everyone who works in that company who are not Bahamians, permanent residents or citizens, we can seek to cancel their permits.
“There are ways we can deal with the issue within the ambit of the law and have persons charged and brought before the courts.”
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