By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
The government's financial management systems remain "below global standard" and have seen "limited improvement", scoring 80 percent below maximum in their last assessment.
An Inter-American Development Bank (IDB) report on The Bahamas' "fiduciary systems", accompanying the 2018-2019 country strategy for this nation, backs assertions by KP Turnquest, the deputy prime minister, that a $33m project to overhaul an area overseeing fiscal consolidation efforts had been "floundering".
Using its PRODEV Evaluation Tool, the IDB said The Bahamas had secured "a marginal overall improvement" in the quality of its financial management systems between 2009 and 2013. However, this nation's score had only improved from 0.8 to 0.9 out of a maximum "five" based on its performance across five areas.
These were listed as Results-Based Planning; Results-Based Budgeting; Public Financial Management; Programme and Project Management; Monitoring and Evaluation. The Bahamas fared somewhat better on "public financial management", where its score improved from 1.9 in 2009 to 2.3 in 2013.
"The current Public Financial Management technological platform is outdated, lacks integration, and difficult to maintain," the IDB report said, while referring to the "new business model" that the government intends to adopt.
The Minnis administration has committed to transforming The Bahamas' governance and fiscal management systems through wide-ranging legislative reform, which includes the implementation of an e-procurement platform designed to address tendering system weaknesses identified by the IDB.
"Budget processing has seen limited improvement during the previous country strategies," the IDB report revealed. "The absence of a long-term vision articulated with medium-term fiscal framework, sector programmes and the Budget remain a concern as it is not suited to focus on results achievement.
"Ministries plan their expenditures with some certainty, but cash flow planning is limited. Payroll and personnel systems are not integrated..... Accounting and reporting systems, and practice, fall below international standards in terms of presentation and disclosure.
"Currently, the Government of the Bahamas has established a concept paper and road-map for implementing accrual accounting in accordance with international Public-Sector Accounting Standards (IPSAS), which envisions completion by 2023. Implementation is being incorporated within the [$33 million] loan operation."
As for public procurement, the IDB said: "The Bahamas does not have dedicated legislation that governs public procurement. The legal framework emanates from subsidiary legislation, in this case the Financial Administration and Audit Act (FAAA). This situation challenges a co-ordinated approach, as a set of suitable rules for planning, awarding and monitoring government contracts is missing.
"The Bahamas' current public procurement legislation and regulation is considered below international standards and practices. There is an absence of consolidated unifying instruments in public procurement at the statutory level with a clear hierarchical structure, able to promote uniform practices of high standards.
"Consequently, they do not cover a full range of issues needed for the functioning of a modern government public procurement system. Without a designated entity to take overall responsibility for the development and functioning of the system, and no feedback/reporting mechanisms, it is unclear how decisions with respect to rules and practices are made and informed."
Besides establishing a Public Procurement Unit, the Government is also implementing a public sector-wide e-tendering system from BIP Solutions, which the IDB branded as "robust" and in line with the legislative reforms. This should be completed in 2018.
Mr Turnquest reaffirmed the Government's commitment to modernise its financial and information management systems during the 2018-2019 Budget, while blasting the former Christie administration for failing to move the $33 million IDB-financed project forward.
Describing the initiative as "floundering up until last year, and producing meagre tangible results", Mr Turnquest said: "The objective of this exercise is to enhance the capacity of the Ministry to produce high quality information for evidence-based policymaking, as well as improve the ability to better allocate and track public funds.
"As well, the Ministry is moving to the adoption of new budgeting and accounting software and standards, and the introduction of accrual accounting and the systems that support it. Also in development is the implementation of a new, modern Chart of Accounts that is fully compatible with international standards.
"As an initial step to avoid the build-up of future arrears, the Government is enabling accrual accounting with the planned introduction of International Public Sector Accounting Standards (or IPSAS) for government bookkeeping and reporting that will provide increased visibility into outstanding cash requirements and facilitate cash planning. Here again, we are committed to bringing the Bahamian government up to modern and international standards."
Comments
Well_mudda_take_sic 5 years, 10 months ago
The IMF, IDB and OECD have been F'ing us over royally for decades ...... it's high time we told these representatives of foreign interests, all of whom are looking to take control of our country and acquire its natural resources for pittance, to stop meddling in our affairs and stay the hell out of our country. The IDB in particular should be told to close shop in the Bahamas. They are responsible for nearly one-third of our national debt by forcing on our dumb politicians and bureaucrats a plethora of very costly but worthless projects and studies that have greatly enriched their own foreign constituents and other foreign consultants over many decades at great expense to Bahamians and to the financial detriment of our nation.
rdonaldson 5 years, 10 months ago
Sorry, but the IMF, IDB or OECD are not responsible for the mess we are in today. However, the greedy and dishonest PLPs have raped the country and enriched themselves. We went to these institutions for loans and financing, not the other way around. If the monies were spent for the projects they were borrowed for, then we would probably be in good shape. It is people with your mentality who feel that they can borrow and steal without consequences. The COUNTRY NEED TO PAY OFF ITS DEBTS, but you want to borrow free. Well pal, it does not work that way in the real world. NOW WHAT i HAVE A PROBLEM WITH IS the many politicians who are getting away with not paying off their loans and financing and leaving it for the government (which are you and me) to clean up their mess and pay off their debts. It is not fair for these people to be riding around in their fancy cars and showing off their big housres and expect us to pay off their debts. They should not own a car or a home if they owe government-owned entities. The government should sell off their homes and cars to pay off their debts and still make them serve time in jail.. It is disgusting that yoiu can find fault with the IMF, IDB and OECD. but not a word about these parasites living off poor people. Sure, we will feel the pain until the country is back on its feet, but in the meantime, let me hear your views on what should happen to the corrupt politicians and "all for me baby" crowd.
Well_mudda_take_sic 5 years, 10 months ago
Oh please, spare me the 'we must blame the PLP or ourselves' theatrics. The FNM were almost as bad as the PLP. And yes, we, the people, do elect our politicians, but it is the IMF, IDB, OECD, etc. that send along their 'hitman' to corrupt the decision making of our elected politicians in favour of an agenda that suits their own purposes, and the interests of their own foreign consultants and other foreign constituents. We, the Bahamian people, end up getting royally screwed in terms of value for money, and are left holding unsustainable foreign debt which can then be used to hijack from us not only our sovereignty, but also control of our own destiny. It's high time to fully recognize things for what they have truly been when it comes to the involvement in our affairs of international agencies like the IMF. IDB, OECD, etc.
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