The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Government was yesterday facing intense scrutiny over the New Providence landfill, as its opponents raised doubts over whether it should “bail out” the facility’s privately-owned manager.

K P Turnquest, the Opposition’s finance spokesman, said Renew Bahamas’ demands to revise its five-year management contract, and for the Government to provide it with more funding, undermined the objectives supposed to flow from privatising the landfill’s management.

He told Tribune Business that “the crux of the matter” was now whether Renew Bahamas could fulfill its mandate at no further cost to the Bahamian people and taxpayers, given the revelation that its current business model is not viable.

Gerhard Beukes, Renew Bahamas’ president and chief executive, told this newspaper on Thursday that the company had lost “millions of dollars” to-date, implying that it would be unable to continue in business unless the Government agreed to revised financial terms.

Tribune Business sources yesterday told this newspaper that the Christie administration had hired Anthony Kikivarakis, and his Kikivarakis & Company accounting firm, to conduct a special audit of the New Providence landfill.

Mr Kikivarakis did not return this newspaper’s calls and e-mails seeking comment yesterday, but Tribune Business understands the assignment involves an assessment of Renew Bahamas’ cash flow projections and current financial position.

This newspaper’s contacts, speaking on condition of anonymity, said the Government had hired Kikivarakis & Company to determine whether Renew Bahamas’ calls for a revised contract and financial assistance were justified.

If the accounting firm found they were not, the sources suggested the Christie administration was likely to turn to alternatives for the New Providence landfill and its management.

“The Government is looking to justify the switch or additional funding for Renew,” one source told Tribune Business.

They backed up information previously received by this newspaper, which reported on Thursday how the Government and its agencies have been reaching out to previous landfill bidders who were rejected in favour of Renew Bahamas.

This suggests the Christie administration may be exploring its options, and seeking alternatives, in case it is either unable to reach a satisfactory agreement with Renew Bahamas, or the company proves unable to tackle the recurring fires.

Mr Turnquest, meanwhile, said this week’s disclosures raised numerous questions over the initial landfill tender process, the selection of Renew Bahamas, and the nature of the contract negotiated by the Christie administration.

As for the company, the Opposition’s leader queried whether it had performed proper due diligence on the landfill, and correctly assessed the magnitude of the task it was undertaking.

Mr Turnquest said: “I think the Bahamian people need to have a full and transparent review of the contract, and the obligations on the part of the Government and Renew Bahamas, to ensure that if any additional payments are made, they’re part of the contract and Renew Bahamas is performing.”

He expressed scepticism as to whether the Bahamian people should be called upon to cover the “losses” being sustained by a private company, given that the very purpose behind privatising the landfill’s management was to relieve taxpayers of an annual multi-million dollar burden.

“I don’t know whether we should be in the business of bailing out a private entity if they’re unable to fulfill their obligations,” Mr Turnquest told Tribune Business. “Not to be overly critical of Renew Bahamas, but this is business, not charity.

“I don’t see Renew Bahamas’ operation as a quasi-governmental corporation we are somehow obligated to support. It’s a private-for-profit.

“The whole idea with signing a management contract with Renew Bahamas to operate the landfill is to run it in a profitable, efficient and safe manner without cost to the people of the Bahamas.”

Kenred Dorsett, minister of state for the environment, as recently as April 8 touted the $6 million annual savings to the Government and Bahamian taxpayer from privatising the New Providence landfill’s management.

That saving may now be considerably reduced, depending on Renew Bahamas’ demands and whether any revised contract can be negotiated with the Government.

Mr Turnquest said the situation raised numerous questions over both the bidding process for the management contract and selection of Renew Bahamas, particularly whether the former process was “fair and transparent” to all interested parties.

Mr Dorsett previously said eight candidates were shortlisted from the numerous proposals submitted to the Government’s National Energy Task Force, which was co-chaired by former parliamentary secretary, Renward Wells. Out of those offers, Renew Bahamas was chosen.

As for the company, Mr Turnquest questioned whether it under-valued its bid or “did they miss the realities the landfill has faced for years, such that they were unable to fulfill their mandate and put in place best practices to mitigate against these fires”.

“I want to see Renew Bahamas fulfill their obligations to the Bahamian people without further cost to us,” the east Grand Bahama MP told Tribune Business.

“That is the crux of the matter. Going forward, are they going to be in position to provide the resources necessary to remediate whatever situation persists that allows these fires to go on.”