NASSAU, BAHAMAS: Opposition Leader Michael Pintard has renewed demands for the Davis administration to account for nearly $700 million in excess borrowing proceeds linked to the National Investment Fund (NIF), challenging the Government to disclose where the money is being held, how it has been used and the parliamentary authority relied upon to transfer the funds.
Pintard’s latest challenge comes nearly three months after Finance Minister Michael Halkitis defended the transaction, insisting the Government acted within the law and that the additional borrowing formed part of a broader liability management strategy aimed at refinancing expensive debt while securing funding for future infrastructure development.
Speaking at an FNM press conference Monday, Pintard argued that the Government has still not adequately answered what he described as fundamental questions surrounding the NIF’s establishment, governance and finances.
“Where is the $700 million stashed away?” Pintard asked. “We are unable to find any fund registered. We are unable to find a board that has the authority to set up the fund. We have not found any officials who sit on the board.”
FNM Senator Dr. Trevor Johnson, who addressed the NIF issue ahead of Pintard, also raised concerns over the movement of money through the fund and the Government’s fiscal reporting.
The Opposition’s scrutiny stretches back to July 2025, when the FNM wrote Prime Minister Philip Davis after the Government announced plans to place $300 million into the NIF. The party questioned whether the necessary parliamentary appropriation had been made to transfer borrowed money from the Consolidated Fund into the investment vehicle.
The issue took on greater significance after Halkitis disclosed during the budget period that the Government had raised additional financing during a major liability management exercise and placed the unspent proceeds into the NIF.
At a May 29 press conference, Halkitis explained that the Government had refinanced approximately $700 million in outstanding bonds while deliberately raising additional capital.
“We paid off about, I think it was about $700 million dollars in outstanding bonds and additional money that was raised was not spent, was put in a national investment fund for future infrastructure development in particular,” Halkitis said at the time.
He explained that larger international bond transactions can generate greater investor interest and liquidity, making it advantageous for the Government to raise more than the amount immediately required for refinancing.
The transaction followed an earlier liability management exercise involving the Government’s 2024 debt-for-nature swap, which Halkitis said refinanced approximately $220 million in higher-interest debt and about $80 million in bonds while generating roughly $142 million in savings over 15 years for improved management of marine protected areas.
Halkitis also rejected the FNM’s contention that the Government improperly bypassed Parliament, saying legal advice was obtained from several parties involved in the transactions.
“We are satisfied we get the input from our lawyers, from the bank’s lawyers, from the investment lawyers,” Halkitis said. “So, we’re satisfied that everything was done in accordance with the law.”
Pintard, however, said Monday that the legal and accounting questions remain unresolved.
He argued that parliamentary authorization to borrow does not automatically constitute an appropriation allowing the Government to subsequently remove those proceeds from the Consolidated Fund and place them into another vehicle.
“Even if you move a resolution in Parliament to borrow funds, that does not give you the authority to put those funds wherever you like,” Pintard said.
“You need an appropriation bill to do so. And we have no record of the bill.”
Pintard said the Opposition also wants documentary evidence showing whether the full amount was ever deposited into an NIF account and, if so, how that account was established in the absence of what the FNM says is an identifiable board of directors.
The Opposition Leader further pointed to the Government’s own fiscal reports, which he said showed the NIF holding $265.3 million before its balance fell to approximately $200,000 within three months.
“We see no evidence of $700 million that the minister claimed is in the NIF,” Pintard said.
He also challenged Halkitis’ explanation that the excess financing was intended for future infrastructure development, particularly airport projects.
Pintard argued that the NIF was established as The Bahamas’ sovereign wealth fund and questioned why infrastructure spending would be routed through the fund rather than being clearly identified in the capital budget.
“If you look at the documents that they have, at no point did they talk about this allocation of funds from any arrangement that the government itself has made to finance the airport,” Pintard said.
“You moved $265 million. Can you point by line item what portion of that $265 million that went to, let’s say, Natterstown, where was that forecasted in your budget figures?”
Halkitis, for his part, has argued that the liability management transactions improved the country’s debt profile and strengthened its credibility with international investors and credit rating agencies.
Pintard said the Opposition is not disputing the Government’s ability to refinance debt, but is demanding a complete accounting of what happened to the additional proceeds once they were borrowed.
“What has the government done with the $700 million of excess borrowing? Where is that money? Who did they give it to? Can they release the names? Can they identify the projects?” he asked.
Pintard said he has written the Governor of the Central Bank seeking clarification on the bank’s role in the matter and has copied the Auditor General, saying both institutions should weigh in.
The FNM is now pressing the Government to disclose the legal authority used to transfer the borrowing proceeds, the accounts through which the money moved, the NIF’s governance structure and a detailed breakdown of any infrastructure projects financed from the fund.
