“I am happy to confirm and inform the public that it is matter that can be addressed forthwith by way of regulation”
Bethel: Auditor general was given company names but chose not to list them
NASSAU, BAHAMAS — Attorney General Carl Bethel said yesterday that in short order, the law will be amended to allow the Ministry of Finance to supply beneficial ownership information and meet its international obligations.
Bethel, while speaking in the Senate yesterday, addressed concerns over an auditor general’s report into a $US250 million International Monetary Fund (IMF) rapid financing instrument, which noted the 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.
According to the report, more than $63 million of the $250 million 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.
Bethel noted that the Register of Beneficial Ownership Act will be amended to allow to such disclosures. He also noted that The Bahamas does not have a public registry of beneficial ownership and that its private register cannot be searched unless that search is connected to a proper and lawful request.
“The register of beneficial ownership owner law was designed based on the nature of the way we do business in The Bahamas, in terms of our financial services sector in particular but also in terms of the generality of what our law permits in terms of company incorporation,” Bethel explained.
“There is a common law right that every person including legal persons enjoy at common law meaning ordinary law to confidentiality of their business and private affairs.”
He added: “Our registry specifically limits the authorities who may request and receive the benefits of a search for the purpose of an international treaty or arrangement they are party to. The Ministry of Finance was not included as an authority on the matter.
“The law will be amended. I am happy to confirm and inform the public that it is matter that can be addressed forthwith by way of regulation because under the Register of Beneficial Ownership, the minister may make regulation with respect to anything required to be carried out under this act and add the Ministry of Finance as an authority to obtain beneficial ownership information.”
Bethel also said: “I have already had discussions with the law reform commission. They accept my interpretation of the powers of the minister and are drafting the regulations. The Ministry of Finance, in very short order, will be in a position to fully comply with its international obligations.”
Bethel stressed that with regards to the auditor general’s request, “this was not a matter of politicians deciding to pull the plug”.
“The company names were supplied to the auditor general and it was open to [the] auditor general to have listed those names and he didn’t,” Bethel pointed out.
“This is a small country and everybody knows who is in the business. You only need to see the name and you know who the beneficial owner is. At least, your competitors do, and if they know, it won’t be long before the public knows.
“It’s his judgment, his report, he has the constitutional authority and he did it the way he felt and perhaps complied best with what he was told the law is. I don’t fault [or] criticize him for it.”
