The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The FNM’s North Eleuthera candidate yesterday took “full responsibility” for his failure to settle a 15 year-old debt worth $9,500 to Bahamas Customs, and pledged to pay the full amount outstanding today.

Rickey Mackey told Tribune Business he had “completely forgotten” about the settlement agreement he made with the Customs Department in mid-2013, relating to $12,789 in outstanding import duties owed by his company since June 2002.

Mr Mackey made one $3,197 payment to the Public Treasury, via RBC’s Harbour Island branch, in April 2013 but left around $9,500 due and owing until exposed by his political opponents this weekend.

Bradley Roberts, the Progressive Liberal Party’s (PLP) chairman, told his party’s campaign rally at Hatchet Bay: “The FNM candidate for North Eleuthera, Howard ‘Rickey’ Mackey, to-date owes the Bahamas government thousands of dollars in Customs duties which he committed in writing to pay, but has failed to do so.”

Mr Roberts subsequently publicly disclosed the contents of what appears to be the Customs Department’s entire file on Mr Mackey, including his April 18, 2013, letter seeking agreement on his payment plan. Also revealed are a cheque payment by Mr Mackey, plus numerous receipts, invoices, bills of lading and Customs entries.

Mr Mackey questioned how the documents ended up in Mr Roberts’ possession, describing the PLP chairman as “a political hack”.

Another issue, perhaps more pertinent for Bahamian taxpayers and the public, is why the Customs Department waited more than a decade to pursue outstanding taxes owed to it.

Confirming that he still owed $9,500 to Customs, Mr Mackey told Tribune Business of his settlement proposal and the debt: “I had completely forgotten about it.

“I’m not denying it,” he added. “I take full responsibility, and tomorrow [today] I will take care of my obligations to the Customs Department.”

Explaining how the duties became outstanding, Mr Mackey said his company, Eleuthera Petroleum, was in 2002 engaged in the fuel business across a wide variety of product lines, including diesel and gasoline, aviation fuel, white fuel and propane.

Now focused primarily on propane, he told Tribune Business: “At that time, I ran into some difficulties and was going through some financial challenges. I got out of that business, and dropped gasoline and diesel.”

Despite Customs duties being outstanding from 2002, it appears that the Department only became interested in collecting the sum outstanding when Mr Mackey tried to import some dumpster cans in early 2013.

“Fast forward 11 years, things picked up and I’d ordered some dumpsters at that time. Customs then presented me with the 10 year-old outstanding bill,” Mr Mackey confirmed.

“I needed to get the bins off the dock and agreed to do the payment plan. I made one payment. I take responsibility for it. I did not complete.”

He added: “I’m not going to try and justify the situation. I will own up to it and pay. I’m now stepping up to take my responsibility, and will make the payment. I will take care of it.”

Mr Mackey’s April 18, 2013, ‘settlement’ letter to Customs promised to settle the duties arrears by July 2013, through four monthly payments of $3,197.30. Only one, the payment for April, was made - some five days after the initial letter.

The document, addressed to assistant comptroller, Gary Smith, said: “I, Ricky Mackey of Harbour Island, Eleuthera, owe the Bahamas Customs Department $12,789.20 for Eleuthera Petroleum.”

The sums outstanding are broken into two dates - $5,118 that was due on June 19, 2002, and $7,671 that was owing from June 26 that same year.

Mr Mackey then pleads: “Sir,I don’t really have the total amount, but I am then willing to make four payments of $3,197.30 per month. This payment will start from the month of April to July 2013.

“Sir, right now I have three-roll of dumpster cans that came on C&G just this Wednesday under the name of Eleuthera Petroleum, and they would not be released until I have paid off my outstanding with the Government.”

Questions are likely to be raised as to how Mr Mackey’s debt to Customs, and the Government, was allowed to persist across three administrations - two PLP, and one FNM.

The lack of enforcement by Customs is also exposed, and it seems likely that Mr Mackey’s dumpsters were released following submission of the payment plan and the first instalment, rather than waiting for all that was due to be collected.

Mr Mackey’s debt has only surfaced because it is political campaign season, and the FNM candidate himself said it was “very serious” how his Customs file had been obtained by Mr Roberts in his capacity as PLP chairman.

Mr Mackey accused the governing party of seeking to smear and discredit him as a candidate, and undermine his campaign, knowing that the PLP was unlikely to be successful in its bid to wrest North Eleuthera from the FNM.

However, his admission to owing outstanding taxes for almost 15 years has already been seized upon by the Christie administration, and will likely be an unwanted distraction for the FNM and its leader, Dr Hubert Minnis, as they seek to focus voter attention on the Government’s missteps.

Describing the leaking of his Customs file as “a vile undertaking” by the PLP, Mr Mackey hit back: “I hope they man up and take responsibility for the situation in this country.”