NICHOLAS REES, centre, with Kanoo co-founders.
• Payment provider defends contract awards
• Blasts attacks as ‘reckless, laden with ulterior motives’
• Says talented Bahamians will question ‘coming home’
By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
A Bahamian digital payments provider yesterday hit back at mounting attacks on its business by asserting that all contracts were won “above board”, it’s chairman adding: “I have absolutely nothing to hide”.
Nicholas Rees branded the politically-led assault on Kanoo as “inaccurate, reckless and laden with ulterior motives”, and warned they threatened to undermine not just the company but national “world first” initiatives such as the launch of the Central Bank’s Sand Dollar digital currency (see other article on HERE).
Confirming that Kanoo has also won the bid to provide the “multi-signature digital wallets” to all government departments and agencies, so that they can use the Sand Dollar for payment transactions, Mr Rees said the past two weeks have made him question whether “it was really worth” coming home “if this is how the country is going to treat me and my co-founders”.
Suggesting this highlights why talented Bahamians choose to remain abroad and not come home, he added that Kanoo was another victim of the so-called ‘black crab’ syndrome where “too often in this country we tear down people who are making inroads”.
Kanoo was embroiled in a political firestorm after it became caught-up in the Progressive Liberal Party’s (PLP) attack on The Bahamas’ health travel visa system. The digital provider facilitates the visa payments on the Ministry of Tourism’s behalf, and questions surrounding the fees it was earning and why the money was not being deposited in the Government’s consolidated fund quickly surfaced.
The allegations then expanded to political favouritism and nepotism amid claims that Dr Nigel Lewis, the FNM’s national campaign co-ordinator for the upcoming general election, was a Kanoo director and that the company had won multiple other government contracts.
Mr Rees, though, produced Kanoo’s annual returns filed with the Registrar General’s Department to show that Dr Lewis is not a director. He holds less than a 1 percent equity stake in the company, the Kanoo chairman added, which was given as a reward for putting himself and his fellow Bahamian entrepreneurs in touch with their Atlanta-based technology partner some five years ago.
Describing the company as “politically agnostic”, with Dr Lewis’ political connections “irrelevant” to Kanoo and its business, Mr Rees said it seemed like he and his fellow investors have “made a lot of enemies since we launched”.
Besides Sand Dollar and the health travel visa, Kanoo has also won the contracts to facilitate the electronic processing of child support and other court-ordered payments, plus food assistance payments on behalf of the Ministry of Social Services and Urban Development.
However, further controversy arose when it was revealed that the Bahamas Agriculture and Marine Science Institute (BAMSI) had engaged Kanoo to facilitate the payment of tuition and registration fees by Family Island-based students. Mr Rees’ father, Olvin, is BAMSI’s deputy chair, and sources subsequently informed this newspaper he is close to the Prime Minister.
However, Mr Rees slammed social media claims of favouritism and nepotism as wholly incorrect as he disclosed that Kanoo has hired attorneys “to look into the false assertions and innuendos made” with a view to taking potential legal action against its accusers. “How many other friends does the Prime Minister have?” he asked.
He revealed that BAMSI reached out to Kanoo and other digital payment providers during the COVID-19 pandemic, and “there was no contract awarded. They signed up to our merchant services platform in the same manner as all of our merchants. It’s [BAMSI] one of our smallest clients”.
While declining to provide figures, Mr Rees said Kanoo was earning a two-figure monthly sum from the BAMSI arrangement. BAMSI declined to comment when contacted by Tribune Business, but sources confirmed that it had sought “three to four quotes” from rival digital payments providers as well as Kanoo before ultimately opting to select the latter.
As for the Supreme Court payments contract, the Kanoo chair said this was awarded only after “an extremely intensive Request for Proposal” where it had to partner with another company to outperform all Bahamian and international digital payment rivals.
And Social Services had initiated a “pilot programme” where Kanoo and its competitors were invited to participate so that their technical capabilities could be “tested and proven”. Mr Rees said “transparent and accountable reporting systems” were also required, and both his company and others were selected to help digitise welfare payments.
Tribune Business has obtained independent verification that many of the contracts awarded to Kanoo were obtained through competitive bidding and tendering processes. Rivals, speaking on condition of anonymity, confirmed that they, too, participated in the Supreme Court RFP as well as the Social Services vetting. The latter saw Kanoo awarded the food assistance payments, while Cash N’ Go and Omni now handle rental and uniform assistance.
“Every single one has been open, every single one has been above board,” Mr Rees told Tribune Business of Kanoo’s contracts. “I have nothing to hide. I have absolutely nothing to hide. We won hands down, solely related to our technology and our team. We’re a true Bahamian success story as it relates to young entrepreneurship and innovating in technology for The Bahamas.
“I make no apologies for that. It’s what I do every day. I help Bahamians to build their business and expand their business. We’ve made a lot of enemies apparently since we launched. We’re young, we’re new and and we have disruptive technology. We’ve been getting numerous attacks, not just in public, but attempts attacking our e-mail servers and core infrastructure which started late last year.”
Mr Rees said Kanoo was formed in 2016 when he was put in touch with US entrepreneur Nathan Horne and his business partner, Kenneth Lipscomb, who own Atlanta-based technology provider, Visikard. Mr Horne had been in The Bahamas “consulting under the PLP administration”, and his technology solutions attracted attention.
Dr Lewis, a long-standing business partner of his father for more than 22 years, put Mr Horne and Mr Rees together. The latter described their meeting as “like lightning”, with Mr Horne acting as a mentor to him. He added that, “as a thank you for making such a fruitful introduction”, Dr Lewis was granted a 1 percent equity stake in Kanoo but “he’s not a director and has never been involved in the day-to-day operations”.
The Visikard duo have a minority equity stake in Kanoo as its technology partners, with the company majority Bahamian-owned through Mr Rees and fellow co-founders Keith Davies, Herbert Cash, Shamark Davis and Khalil and Kimani Braithwaite.
As for the Ministry of Tourism’s health visa contract, Mr Rees said Kanoo was approached five days before the platform’s launch by Think Simple, its developer, which was then part of the Organisation for Responsible Governance’s (ORG) Living with COVID Coalition, to provide an online payment processing tool.
“Something like this would normally have taken four to six weeks, but we devoted the resources and got it done in five days,” he added. “We’re pretty proud of that. That is a testament to the team and the technology.”
Responding to the attacks on Kanoo, Mr Rees blasted: “We’re really discouraged as young professionals and find it disingenuous that we’re being targeted in this manner because we provide a needed service to the Government.
“We’re providing technology for digital transformation and are politically agnostic..... I make no apologies for having a father whose long-standing business partner is the FNM’s national campaign co-ordinator. That’s irrelevant to Kanoo. I couldn’t care less about this scenario.
“Too often in this country we tear people down who are making inroads, and this is a core reason as to why young people are not coming home. Over the past two weeks I’ve been thinking: ‘Was it really worth it coming home if this is how the country is going to treat me and the other co-founders with all the sacrifices that we’ve been making?’” he added.
“I have been so depressed over the past two weeks. We’ve engaged lawyers and they’re looking into the false assertions and innuendos made. They’ve been significantly damaging, not only to the company’s reputation but my personal reputation.
“I’m a two-time Olympian. I embrace competition. I feel competition enhances value and benefits countries. It’s important we raise the level of competition above politics and deliver the best solution we can. We feel we should not be penalised and attacked for using our talent and resources to develop this company for Bahamians. Everything about this company is to lift up The Bahamas.”
Not all competitors were convinced, though. Speaking on condition of anonymity, one said: “Something doesn’t look right about the awarding of these contracts.” Another added: “Not all of them were put out to bid, and it appears that Kanoo always had the inside track.
“The excuse was used that ‘the Government has been working with them’, which is not so because others have been working with government to fix lots of issues but we’re not given anything in return or invited to bid when the ‘meaty’ projects are on the line. The real issue here is that they have good friends in high places.”
Comments
M0J0 2 years, 10 months ago
Lol so who tear him down, we are only asking the government for answers. Guilt is a serious ting.
stislez 2 years, 10 months ago
I mean in the Bahamas these type things are normally who ya kno and kanoo whats Bahamians to believe everything was done in fairness? Please! You can't be serious! When has ANY CONTRACT AWARDED BY GOV BEEN A FAIR ORDEAL? Da i been foriegn to long an forget how things run aye. Yall just basically admit is cause yall kno Nigel lewis is why yall kno da tech company. So now yall want us to believe yall knows no one who facilitated yall because of yall relationship? Yall better off did come out an say yeh we get these contracts because of our close relationship with higher ups and the REGULAR bahamian would not be able to obtain this level of intrest if they dont know the ladder. Smh we know our country and people to well for yall to talk dis crap. The black crab syndrome is the people yall know who put yall above the rest king! No one tearing yall down, yall done gat the contracts, yall done gat the money an connections.......where this tear down is again? If yall are not aware that this type thing happens regularly in the bahamas then yall need to know this is why bahamians are up in arms cuz no paperwork gone get us to believe the ting was fair. Fairness and bahamas don't go together!
professionalbahamian 2 years, 10 months ago
Of course there was back door dealings - its just part of the Bahamas unfortunately.
Don't forget no Freedom of Information Act yet and no checks and balances on campaign finance sources.
carltonr61 2 years, 10 months ago
They might as well become an arm of the government. They alone possess 90% of our personal digital transaction information. That alone makes one wonder. The USA just this week asked EU/G7 to hold back on everything digital.
carltonr61 2 years, 10 months ago
Guess they in charge of Covid health passports QR personal infrastructure to track vaccinated and unvaccinated. The world is fighting all things digital, as your whole life could be wiped out or digitally altered. They have been made king crabs by the syndrome where their are no ghosts and shadows around them that come in from the dark one day to sit at the controls.
WETHEPEOPLE 2 years, 10 months ago
If asking questions makes the owners uncomfortable maybe they should stay in Atlanta.
JokeyJack 2 years, 10 months ago
They can't stay in Atlanta. The Wendy's got burned down. What they supposed to eat?
trueBahamian 2 years, 10 months ago
There are too many "coincidences" surrounding the granting of contracts. Also, why do we need to pay for a health visa when
You have a negative PCR that you can easily show at a check-in counter at any US airport before arrival back in the Bahamas.
You have to take a rapid antigen test 5 days later, which is submitted directly to the government. the way it is set up, you are directed to specific testing sites as opposed to being able to choose where you want to go.
I don't see the need to control this process the way the government is doing it besides to ensure money flows in a certain direction. I don't see the US asking anyone to pay for a health visa.
JokeyJack 2 years, 10 months ago
Dont you worry your pretty little head about all of that. 90% of Bahamians will still vote either PLP or FNM. You will also see them out dancing on the 10th celebrating "independence." It's the education systems here and abroad that do it.
Watch and see the fools on the 10th, and you will then realize you are sorely outnumbered, and fighting a lost cause.
truetruebahamian 2 years, 10 months ago
Sad reflection - sad truth.
Hoda 2 years, 10 months ago
Might not be needed. However, not uncommon in particular this region. If you have travelled anywhere other than USA you may have encountered the alternatives which have been quarantine or show proof of insurance and the ability to pay for your care if you happen to get sick or requirement to purchase travel insurance.
TalRussell 2 years, 10 months ago
Nothing to hide. so why not just send the three out to invite the camera to capture this boldly self-defending no-bid contract picture pose - representative of the red party's exact colour shades of red, blue and white. the reds official campaign messaging colours the general election.
Subliminal messaging, kept naive or not, should've the trio's PR people, not have known these three colour shades are officially registered with Governor-General as being the red party's identifying colours?
No need to make up this kind of posing for the camera, yes?
John 2 years, 10 months ago
If it walks like a duck and quacks like a duck, then it must be a KaNoo rofl
proudloudandfnm 2 years, 10 months ago
Well guys, unfortunately for you this has gone political. No doubt the PLP will exploit this during their campaign and if (more likely when) they win you guys will no doubt lose all of your contracts. Sorry, but be prepared.
Bobsyeruncle 2 years, 10 months ago
Why not award all government contracts to overseas companies? Wait, then everyone would say the contracts should go to Bahamian companies, not foreigners. Seems like a no-win situation to me !
ThisIsOurs 2 years, 10 months ago
why not follow the procurements process they said would bring transparency? how about that?
TalRussell 2 years, 10 months ago
This should awaken doubters that move like this not signaling an End of Cash from pockets all but society's tiny group of elites isn't imminent by the year 2022?
Just has looked directly into the faces of the signaled-out elites to get answered - yes, they does have the same look of sharing an aggressive plot's MasterPlan?
ThisIsOurs 2 years, 10 months ago
I would bet that the uptake on digital payments other than for govt contracts is very low.
SP 2 years, 10 months ago
The wicked run away even though no one pursues them!
mckenziecpa 2 years, 10 months ago
Man leave these fellas alone they probably worked hard to get this company where it is today and if they are adding real value what the fuss about especially when the whole hog was taken vy the blue and yellow crew. These contracts are crumps in comparison to Shane Gibson and sticky fingers
ThisIsOurs 2 years, 10 months ago
the sad thing is a lot of people worked hard but were victimized. What they developed is admirable, but something is clearly wrong. I am interested in finding out who else in the hierarchy of the FNM has an interest in the company. Unfortunately their good work appears to have been hijacked
John 2 years, 10 months ago
If they was white, then no questions asked… but they only half white jred
ThisIsOurs 2 years, 10 months ago
not true Think Simple is white and Im wondering how an audio visual company got a no bid software development contract for the food program and tge health visa, how did that happen? And after clearly demonstrating that they werent experienced developers with that constantly crashing rapid site
C2B 2 years, 10 months ago
If they were competent with experience there would be no questions.
birdiestrachan 2 years, 10 months ago
The travel VISA is an unnecessary expense for those who can afford it the least.
Why take money from poor people to make some rich.
God is not pleased with those actions.
birdiestrachan 2 years, 10 months ago
they can become millionaires from somewhere else. but not from poor Bahamians trying to travel in their own Country.
It is a wicked plan.
C2B 2 years, 10 months ago
This is a good old fashioned Bahamian fleece job. Simple , repeated over and over, usually works to benefit corrupt insiders. There is nothing new about this payment system except that a Government decided to use it. The tech is many years old and nothing to rave about. My 10 year old and his friends have their own coin, and digital payment systems are decades old.
BONEFISH 2 years, 10 months ago
@C2B.What you say is very true. This is a typical Bahamian play. Things like this has gone for years in this country. Certain elements of the media attempt to play naive but they know the play. Like a former MP said on a radio show, the Bahamas is a deal country.
tribanon 2 years, 10 months ago
Apparently Carl Bethel was over heard saying there is no legal requirement for revenue from the issuance of health travel visas to be paid directly to the Public Treasury because parliament imbued Minnis with the necessary emergency powers to order such government contracts be entered into without the need for a prior public tender process of any kind.
Carl Bethel must also believe that Minnis as the supreme authority is empowered to personally direct how and where the related revenue from the issuance of health travel visas should be deposited. Minnis's emergency powers are certainly a major problem for our nation in as much as they create a whole new means by which politically contrived fraudulent schemes can be instantly created to benefit cronies and their well politically connected partners.
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