The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Former chief Central Bank of the Bahamas economist, John Rolle, has been appointed as the Ministry of Finance’s financial secretary, Tribune Business can reveal.

He takes over the post as the Government’s top revenue collection overseer from Ehurd Cunningham, who will focus on “specific projects” designed to improve tax administration.

Michael Halkitis, minister of state for finance, responding to Tribune Business’s questions, confirmed that Mr Rolle started in the financial secretary post with effect from last Friday - February 1, 2013.

Multiple financial industry contacts had revealed Mr Rolle’s appointment to this newspaper. He joins the Government at a critical time for its fiscal health, given that the Bahamas’ debt-to-GDP ratio is rapidly approaching the 70 per cent ‘danger zone’ threshold, and with its projected $550 million deficit for the 2012-2013 Budget year likely to be exceeded by yet more borrowing.

With the Government trying to collect every cent in taxes and fees due to it, Mr Rolle will have a vital ‘role’ to play in overseeing and administering all revenue sources and collection points.

He will also be a key figure in putting together the Government’s 2013-2014 Budget, a document vital to ensuring both the private sector, and likes of the International Monetary Fund (IMF), Moody’s and Standard & Poor’s (S&), are reassured on the Government’s fiscal credibility and commitment to fiscal prudence.

The upcoming Budget will also be critical in laying out a concrete plan to first reduce, then send on a downward path, the Bahamas’ national debt and fiscal deficit.

Mr Rolle was most recently working for the IMF in Washington, but the minister of state for finance said this had no bearing on his appointment.

Mr Halkitis said yesterday: “Mr Rolle is a 22-year veteran of the Central Bank of the Bahamas, who for the past three years was attached to the IMF as the Caribbean Representative in the office of the executive director for the Caribbean.

“His tour of duty at the IMF ended in November 2012, and he returned to the Bahamas in December 2012. Mr Rolle is very highly regarded for his analytical skill and intellect.”

Asked whether the IMF influenced the appointment, Mr Halkitis replied: “He was not recommended by the IMF, but is a case of one who, having gained the training and experience at home and abroad, is returning home to apply his knowledge to the further development of the Bahamas.”

As to his predecessor, Mr Halkitis added: “Mr Cunningham, who has been acting financial secretary for the past five years, will continue to assist the Government with special projects specifically related to improved revenue administration.”

The Government has already taken several steps on this front, introducing recently measures to recover $20 million - or some 80 per cent - of what it believes is lost annually to tobacco smuggling.

Other efforts have focused on improving real property tax collection and the appointment of a Debt Management Committee.