By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
The Opposition’s deputy leader yesterday said the agreement to pay Baha Mar’s creditors and complete its construction appears to be a “moving target”, adding: “The Bahamian people are on the hook for something”.
K P Turnquest queried: “Are the Bahamian contractors going to get a fair shake out of this? Who knows? We’re still all standing by to see what the details are, when these payments will actually happen.
“The Prime Minister indicated that monies will be transferred shortly, but what does that mean? It makes it appear as if he was a bit over-anxious or premature in making an announcement on this deal in the first instance.
“The fact that the preliminary agreement has been sealed suggests that there are still matters that are begin negotiated, and depending on how things go they might not even come out the way they anticipate. It seems seems a bit over-anxious to announce that deal to distract form the Moody’s downgrade,” Mr Turnquest continued.
“It still seems to be a bit of a moving target here, and the Bahamian people are on the hook for something and we need to know what we are on the hook for.”
The Government, in a statement on Sunday, expressed “hope” that the claims of former Bahamian workers at Baha Mar will be settled by the end of September, with all other claims dealt with by year-end.
The Christie administration also revealed the establishment of a committee to administer creditor claims, but no information was given on how the process would be conducted, its timeline, or the amount of funding allocated for claims.
The members of the newly-formed committee are former minister of state for finance, James Smith; Grant Lyon, liquidation claims advisor to the Government; Yanping Mo, representative of the Export-Import Bank of China; Norbert Chan, representative of court appointed receiver, Deloitte & Touche; and Tiger Wu, representative of China Construction America.
The statement read: “On August 22, 2016, the Supreme Court approved the plan to remobilise the resort. Part and parcel of the remobilisation was the acknowledgement and provision of funds to deal with the claims of unsecured creditors, in particular Bahamian creditors, in accordance with an agreed formula and a process for the assignment of those claims.
“It is important to note that these claims are being paid from monies which have been made available by the bank, as the Baha Mar companies in liquidation have no assets from which to pay creditors.
“The bank will shortly place on deposit in the Bahamas the funds necessary for the work of the committee; to settle the Bahamian employees’ related claims as outlined by the Prime Minister during his address to the nation on August 22; and to administer and pay the claims of Bahamian creditors, according to the process which has been indicated.”
It continued: “Further announcements on the specific details of the process will come from the committee. The Government hopes that Bahamian employee claims will be settled no later than September 30, 2016 and that all other claims will be dealt with on or before December 31, 2016.”
Comments
John 7 years, 7 months ago
Whatever the details the government needs to move swiftly to rescue this economy. It has hit a new bottom. Even the larger and normally profitable companies are finding that they can no longer meet their overhead. Many have resorted to post-dating cheques. A sure sign of trouble. Many, like the vendors on R. M. Bailey park, who were looking to back-to-school sales as a life-line are finding out it is not so. Sales are down, ways down and many of these vendors are carrying old inventory they had for three or even four years. Many persons are doing their back-to-school shopping on line and Bahamasair has cut its fare from $400.00 - $600.00 last year to as low as $199.00 (taxes included) to Miami/Ft. Lauderdale. The high unemployment and the VAT is taking its toll. The government must realize it cannot have the VAT and still hold on to customs duties and other taxes. Many retail stores are finding out that because they did not adjust their prices to cover the costs associated with the VAT, their businesses have lost profitability. If inventory shrinkage, for example, was 10% of sales before VAT it could now be 11% or 12%. Bookkeeping and accounting costs have increased. So has labor costs for most businesses along with a corresponding increase in national insurance due to minimum wage increases. Yet government is trying to maintain pre vat prices on breadbasket items. This is forcing many stores out of business, especilly when most of what they sell are bread basket items.
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