The Tribune

WE recall years ago when many Bahamians bitterly complained that the banks would not grant them unsecured loans to build their homes and start small businesses. At the time the PLP encouraged them in their demands, and the belief that the purpose of a bank was to help the little man get on his feet. No solution was offered as to what would happen to the bank when too many “little men” failed.

In this column, The Tribune tried to explain that this was not the bank’s money to give out at will. It was the money of investors who rightfully expected a fair return. Banks have no authority to lend money without an assurance that the borrower has unencumbered collateral to repay the loan should he fail.

Today we know what happens to a bank that goes overboard in its lending practices.

It either has to be bailed out or if collapses. Government, after months of denial and accusing the press of spreading false rumours, has had to face the public and admit that it has had to create a “special purpose vehicle” to rescue the Bank of Bahamas (BoB) and purchase its troubled loans. As a starter it will “provide liquidity support to BoB through deposits of approximately $65 million.” Of a loan portfolio of $750 million at least $250 million is in trouble.

However, about eight months ago, in an attempt to deflect reporters’ repeated questions, Mr Christie assured the public that there was “absolutely no reason for any fear or concern” about the bank. This assurance was given despite the fact that for the past two years BoB reported continued losses. The recent quarterly report noted that its shareholders received a report of $4.172 million in “red ink.” Contrary to the Prime Minister’s assurances, BoB with its outstanding loans was in deep financial trouble. Its investors still have much about which to be concerned. So has the public, despite another of Mr Christie’s assurances that no funds have come either from the Public Treasury or the National Insurance Board to support these loans. At least not yet…

Of course, Mr Christie is now trying to convince us that this is all the fault of the US recession. This world-wide recession started in the US at the end of 2007 with the bursting of the housing bubble and the resultant sub-prime mortgage crisis.

Up until now Mr Christie seemed oblivious to the world crisis that had severely affected the Bahamas. He blamed what he called the “fiscal mismanagement” on the Ingraham government, completely denying the undercurrent that had created the fiscal tsunami. “We must of necessity be more cost efficient in our operations and aggressively seek to enhance revenue performance,” Mr Christie had said at the time. When he made this comment, it had been pointed out that already he was well on the way to “smashing the $1 billion borrowing mark for his first two years in office.”

Since then his government has been anything but “cost efficient” in its governance.

As Mr Richard Coulson points out in his letter on this page, the other two Bahamian owned banks are facing exactly the same US recession. However, they are weathering the storm without a bailout.

For more information on this subject read Mr Coulson’s letter, today’s front page and the Business section.

The Bahamas is in serious trouble on all fronts. It is not only being destroyed by crime, but what is now being called “unfriendly” people, a “police force that is ineffective,” a “legal system that is broken” and tourism officials who “try to cover the violence up.”

This newsletter, written by an economist and making its rounds on the web, has even more to say:

“Many cruise tourists have an image of Miami as being high in crime, but they don’t understand that disembarking in Nassau is far more dangerous.

“Both the U.S. and Canada have issued crime warnings for the Bahamas because of the violence.

“More and more cruise passengers tell me that they stay on the ship when they reach port in Nassau. They say that they’re bored with the straw market and run-down Bay Street. They don’t want to risk walking off the ship into a shabby port and becoming a victim of armed robbery by a young man with a gun.”

On Saturday morning one of our friends returning from Miami met a very unhappy tourist at the airport who swore that this would be her last visit.

Her problem was that she had arrived from the US, but had a three hour wait for the arrival of her 90-year-old mother’s flight, which had been delayed. She wanted somewhere to sit while she waited at the airport. As she came out of Customs, she went “around the corner” to sit in the nearby “welcome” lounge. An airport official — she did not describe him — approached her and told her that she could wait there, which she thought was the waiting area for arrivals. He did not suggest where she could wait. She was visibly upset and so bent the ear of our friend. She said she and her mother had been coming to the Bahamas several times a year for the past five years. Bahamians were noted for their friendliness, she said, but lately something had happened. She no longer found them friendly. This would be their last visit.

It is hoped that once she and her mother got to their hotel, they would find the real Bahamians who would make them forget their unpleasant experiences and help change their minds about the Bahamas.

And then there is the crime on the home front. Here is a note — one of many that we receive from time to time. This one was sent on Saturday afternoon. Said the note:

“Police arrested at least one person in Blair last night on charges of possessing FIVE guns.

“The latest invasion occurred just a few days after Andre Cartwright was murdered in his home while protecting his parents from gunmen posing as policemen.

“A resident was expecting a friend. She saw a car pull up in front of her home and was going outside when she noticed the car was a red Cadillac and not her friend’s car.

“She called the police, who were patrolling Blair, and they arrived immediately and blocked the car in. They searched the car and found FIVE guns, the resident said.

“Last night, Halloween was cancelled in Blair as a result of the continuing wave of criminal activity.”

However, the police must be congratulated for their performance on Halloween night. According to an Eastern Road resident they were out in full force in their cars and made their presence felt. For once this particular resident slept soundly.

Then there is the Haitian problem. A video has now gone viral of the Saturday round-up of Haitians. The video shows Immigration officers escorting a group of children without their parents into a waiting bus. It was explained that children without their parents were put into the care of Social Services.

However, one of the children was still in diapers that needed changing. On the video a pleading voice was heard to say: “At least let her change the baby’s diapers.” To which a male voice replied: “She could change it on the bus.”

Footage was put up on CNN’s iReport website of children being led away by Immigration officers. The user accused the Bahamas government of “malicious behaviour” and said “children are being snatched from their beds with soiled diapers and packed into a yellow school bus like animals.”

According to our report this footage had already attracted 8,786 viewers, 37 comments and 2,000 “shares” on social media sites.

This video could turn into another Cuban crisis that simulated on film the beating of Cuban detainees at the Carmichael Road Detention Centre.