NASSAU, BAHAMAS — Minister of Finance Michael Halkitis has defended the government’s use of $310.9 million in National Investment Fund (NIF) proceeds for infrastructure and other public investments, while acknowledging that spending money for the public good does not eliminate the need for proper governance and accountability.
Delivering a communication in Parliament amid mounting controversy over the Fund’s administration, Halkitis said the Ministry of Finance relied on the Public Finance Management Act and acted in accordance with advice received from the Office of the Attorney-General while the NIF’s governance arrangements were not fully operational.
“At the same time, the Government does not suggest that a worthy public purpose removes the need for proper governance,” Halkitis said.
“Public benefit and accountability are complementary obligations. The stronger the public investment, the stronger the systems of oversight, reporting and assurance must be.”
The statement comes as the Opposition intensifies its scrutiny of the Fund and prepares to pursue legal action over what it alleges is the government’s mishandling of public resources.
Free National Movement Leader Michael Pintard has also questioned the legal authority for reported transfers of hundreds of millions of dollars to the NIF and the movement of money from the Fund. The Opposition has further raised concerns about the Fund’s governance structure, including whether its Board of Directors was properly functioning when the transactions took place.
Halkitis told Parliament that on March 10, 2025, lawmakers authorised the government to borrow up to $300 million and approved the deposit of the proceeds into the NIF to support infrastructure and national development.
“During the period before the Fund’s governance arrangements became fully operational, the Ministry of Finance acted on the basis that the Public Finance Management Act governed the administration and application of these public resources through the Ministry and the Treasury,” he said.
“The Government has sought settled advice from the Office of the Attorney-General concerning the interaction between the Public Finance Management Act, the National Investment Funds Act and the relevant parliamentary authority. We acted in accordance with that advice and will bring any measure considered necessary before Parliament at the appropriate time.”
According to Halkitis, $310.9 million in NIF proceeds has been used to strengthen public infrastructure and strategic national assets across The Bahamas.
Buildings and roads accounted for $210.6 million, representing the largest category of spending. The money supported the construction, renovation, acquisition and modernisation of public assets, including roads, a new court complex and an administrative complex. Funding was also used to acquire water infrastructure.
Another $100.3 million was directed towards aviation infrastructure, including airport development projects throughout the Family Islands.
The aviation spending covered airport construction, runway and terminal improvements, land acquisition, engineering, project management, surveying and other professional services. Halkitis identified airport projects in Cat Island, Long Island, Exuma and San Salvador among the initiatives supported.
“These investments have supported projects designed to improve essential public services, modernize public facilities, enhance transportation connectivity, and create a stronger foundation for economic development,” he said.
Halkitis argued that the investments supported essential infrastructure used by Bahamian households, businesses and communities.
“They supported infrastructure that serves Bahamians: government buildings from which essential services are delivered, roads that connect communities and facilitate commerce, water systems upon which households and businesses depend, and airports that sustain the social and economic life of our Family Islands,” he said.
“Their value belongs to the Bahamian people.”
He said investment in the court and administrative complex would support the administration of justice and the delivery of government services, while road and water infrastructure spending would benefit public safety, health, families and businesses.
Halkitis also stressed the importance of airport investments to Family Island economies.
“These investments are intended to improve connectivity, strengthen local economies and ensure that national development is not confined to New Providence,” he said. “They represent an investment in the proposition that every Bahamian community should have the infrastructure required to participate meaningfully in the country’s progress.”
Addressing the Fund’s governance arrangements, Halkitis said a Board of Directors was appointed with effect from June 30, 2025. However, he confirmed that the government is still completing several elements necessary for the Fund’s continuing operation.
Those outstanding arrangements include regulations, mandates, a committee structure and financial reporting and audit processes.
“The objective is to ensure that future decisions are taken within a clear and settled framework, with defined responsibilities, effective oversight and the reporting required by law,” he said.
Halkitis said the Ministry of Finance maintains financial records connected to the transactions and that those records would be dealt with through the applicable accounting, reporting and audit processes.
He also pledged the government’s full cooperation with the chairman of Parliament’s Public Accounts Committee, which has announced plans to investigate the NIF.
“The first is to ensure that national resources produce tangible and lasting benefits for the Bahamian people,” Halkitis said.
“The second is to ensure that those resources are administered through institutions worthy of the public’s confidence.
“The Government accepts both responsibilities.”
