The Tribune

• Gov’t alleges not all funds collected paid over

• Omni denies; no Seaz Pass sums outstanding

• Marinas stunned by figure; seek re-open clarity

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The online clearance portal for foreign boaters and yacht charters has been shut down amid disputed allegations that “$5m” in fees paid by the industry have not been passed to the Bahamian Government.

Tribune Business can reveal that SeaZ Pass, which had operated as “a one-stop shop” to allow incoming vessels and their owners/captains to register online, clear Customs and pay for cruising permits and charter fees, was closed last October after the Government charged it was not receiving all that was due to it from the funds being collected.

Simon Wilson, the Ministry of Finance’s financial secretary, told Tribune Business in a recent interview that the Government believed it was “down over $5m” compared to what it should have received from the 4 percent charter fee as well as the cruising permits. In addition, 10 percent VAT was levied on the same charter contracts from the time of the 2022-2023 Budget last May.

He asserted that Omni Financial Services, the digital payments provider responsible for collecting the fee payments, had failed to remit the full sums due to the Public Treasury and the Government was now “trying to negotiate” with the company to recover what is allegedly owed.

Omni representatives yesterday declined to comment other than to deny there are any outstanding monies due to the Government from itself relating to the Seaz Pass initiative. And Peter Maury, the former Association of Bahamas Marinas (ABM) president who played a key role in establishing the online portal, yesterday voiced surprise at the Government’s assertion it was owed as much as $5m.

He especially queried the figure given that only $4m in fee income was collected by Seaz Pass during the 16 months it was operational. Mr Maury, who revealed that all parties including the ABM, Ministry of Finance and Omni, received weekly statements showing how much was collected from the portal, said he - like Tribune Business - had also been informed by the payments provider of its position that zero monies are owed to the Government.

Mr Wilson, though, confirmed that “the primary reason” the Government demanded Seaz Pass’s closure was its belief that paid fee income was not being handed over. “Omni never remitted the funds to the Treasury. We’re trying to negotiate with them. So far we are down, based on our calculations, over $5m,” the financial secretary told this newspaper.

“We have no objection to the concept. The issue we has was the payment provider was not holding up its part of the structure. People were paying but monies were not coming to us. We’re trying to negotiate with them [Omni]. They were the payment gateway provider. It was not just the timeliness of remittances; in some cases, they were not remitting the funds at all.”

Mr Wilson said the Ministry of Finance had “called in Peter Maury” and explained what was allegedly happening, and its rationale for closing Seaz Pass. He added: “This is nothing against the portal. We just have to fix this to make it work. We have no issue with what they’re [the ABM] proposing. We’re working on some solutions so we can fix it and that it works for us.”

Other sources, speaking on condition of anonymity because they were not authorised to talk publicly, yesterday affirmed Omni’s position that “zero” monies were owing to the Government from the online boating portal. Confirming that various talks and negotiations had taken place between the two parties to resolve the dispute, these contacts hinted that the payment provider may have been caught up in a political battle not of its making.

Mr Maury, though, said much uncertainty and confusion surrounded Seaz Pass’s suspension. He added that the Ministry of Finance had provided no clarity on when it could restart, or if an alternative payment provider to Omni would be an acceptable solution. The loss of a convenient payment/registration avenue, meanwhile, had set back The Bahamas’ digital drive and efforts to improve the ease of doing business while also causing frustration for boaters and charter guests.

“They just told us we can’t use Omni,” the Bay Street Marina manager said, when asked what reason the Government had given for the portal’s closure. “I think they are all in a big battle over it. Nobody is telling me anything. It’s my guess that the Ministry of Finance is not going to show us anything.

“And all Omni said to us is that it’s a legal matter between them and the Ministry of Finance, and they can’t give me any information. All they said to me - and this is probably what they said to you - is their lawyers told them not to talk about it, but they said they’ve paid over every cent.”

Mr Maury said both parties, the ABM and Port Department were provided with a regular statement on the fees that were collected online via Seaz Pass. Suggesting that such reports were provided as frequently as every week, the former ABM president voiced surprise at the Ministry of Finance’s suggestion that “over $5m” was outstanding

“It was never $5m,” he said. “We never collected that amount. It was cut-off when we had collected $4m; how could there be $5m? I’m surprised. I don’t understand how it’s $5m. We never saw those numbers. Maybe more money was submitted later on. I don’t know. We all got the same reports. Maybe they have a different abacus than me.

“The big thing was that when we put it in everybody was astounded by how much money was coming in. We knew a lot was getting paid. It’s more money than the Port has collected than ever before.... We kept a weekly track of what was getting paid. It was a considerable amount of money that we hoped they would reinvest in the industry, spending on fixing lights and things like that.

“Omni and the Ministry of Finance got into a big fight over it. I’d be interested to see if they resolved it. I let it lie. The Ministry said they owe money, and when we got to Omni they said: ‘No, we submitted everything. We showed them we paid it.’ Then somebody told me it was very political this whole thing.”

Mr Maury queried whether the Government was reading the charter contracts, which had to be uploaded to Seaz Pass by boat captains, brokers and agents, correctly if it was coming up with the $5m figure. He added that he would “love” to see Seaz Pass restored to full functionality, given that it would make entering The Bahamas far easier for boaters, and likely result in increased taxes and fees for the Government via a more convenient payment method.

“It seemed like an easy solution. I said let’s find another payment provider,” Mr Maury said. “I even asked Simon Wilson: Is there a company you’d prefer? Tell us and we’ll use that one. I just don’t know where they are with it.” He added that the ABM’s Board selected Omni because it had offered to build Seaz Pass at its own expense and get the initiative moving more quickly, with the marina industry body then paying it back over time.