Prime Minister Dr Hubert Minnis.
By MORGAN ADDERLEY
Tribune Staff Reporter
madderley@tribunemedia.net
PRIME Minister Dr Hubert Minnis on Friday accused web shop owners of “monopolising on the economy”, as he introduced a new public-private programme to increase Bahamian ownership of government assets.
Deputy Prime Minister K Peter Turnquest likened the programme to a trust fund that would combine these assets and allow Bahamians to invest in it with a “guaranteed return”.
A return, Dr Minnis said would be as much as five to six percent.
The prime minister spoke at the ribbon cutting ceremony of Poinciana House, a complex that houses a number of financial institutions and regulatory agencies.
“In this spirit, the government is considering various public-private arrangements and opportunities for the development of government offices, which will also help to create a greater shareholder society for scores of Bahamians,” Dr Minnis said during his opening remarks.
“I would like to at this time to personally thank Mr Greg Cleare, who is leading the government in a new and innovative programme where we will establish (an) independent company where all government buildings will be permanently located and become part of this company, one hundred per cent Bahamian and government owned and Bahamians will be offered an opportunity to invest in this company and own government complexes.
“The returns, government will then be in a position to rent facilities of its own, rather than having three or four individuals monopolising on the economy, or as we would say, the web shops monopolising on the economy, the Bahamian people will be empowered to own their own complexes and have returns of 5-6 per cent as opposed to 0.5 per cent as its given in the bank.”
“And I would hope that when this initiative is launched, that we would have full and complete cooperation of each and every Bahamian who will own such an organization, such an institution, and we will guarantee 5-6 per cent return.”
Dr Minnis said complaints that government buildings were filled with mildew and mould, made Bahamians sick, and had an overall negative impact on their quality of life – will be a “thing of the past”.
Following the speech, Mr Turnquest declined to comment on Dr Minnis’ statement on web shop owners.
However, he did clarify about the initiative.
“So we’re looking at (an) innovative product that we’re trying to create that will widen the participation of the average Bahamian in the ownership of government assets,” Mr Turnquest said.
“We have not come up with any concrete plans yet, but the idea basically is that all of the government assets would go into a trust fund or a special sovereign fund where Bahamians would be able to invest in it with a guaranteed return.
“And the trust fund would be responsible for managing those assets to ensure that the upkeep is up to par, that they take care of the remediation issues that continue to pop up in all of these ministries to ensure that the environment for civil service is comfortable, it is modern, and they are afforded a good work place.”
Mr Turnquest did not provide a specific timeline for this initiative, noting it is still before Cabinet. However, he said it is expected that it “will be moving forward relatively soon”.
During his remarks, Dr Minnis vowed that his government “will continue to diligently cut through the bureaucratic and legislative roadblocks, red tape and mind-sets which impede greater and quicker progress on making The Bahamas a more competitive jurisdiction in a host of sectors and industries”.
In this vein, he elaborated on the importance of Poinciana House, noting the Ministry of Finance set up a Special Purpose Vehicle to purchase the site on which it sits.
Poinciana House houses the Securities, Insurance, and Compliance Commissions of the Bahamas.
Dr Minnis noted these three regulators enjoy “synergies derived from their physical proximity to each other, including certain shared functions and the sharing of related costs”.
He added that the growth some financial services regulators have experienced, and are projected to continue to experience, was a major factor in the decision to relocate to this complex.
“To house an expanse of government agencies and to reduce the costs of rentals and leases, the Government will need to invest over many years in new buildings and purchases,” Dr Minnis said, as he reiterated the series of works projects scheduled to occur in the capital.
These include the construction of a new office complex on the site of the old City Market on Market Street, which is part of the Minnis Administration’s “ambition and long-term urban revitalization programme”.
He noted this will complement the refurbishment of the historic Southern Recreation Grounds — the first phase of which is “nearing completion”.
Dr Minnis added that the heads of agreement for the redevelopment of Prince George Wharf is currently being negotiated.
Comments
Foxie 4 years, 11 months ago
Greg Cleare... isnt he one of those so called "White Nights"..??? Maybe the Minister of Trade & Industry can answer that...
sealice 4 years, 11 months ago
how are these honkies from the 1920's still alive and haunting your dreams?
TalRussell 4 years, 11 months ago
Yes, yes really,,,,,,, perhaps its time red shirts party to move on cause this pre 2022 General Election propaganda has no tangible plan in mind... add this many pre 2022 General Election flawed announcements but this bullshit one does really steals show most red shirts comical, yes no.... ..then again, ... is it possible all comrade crown members Imperial red shirts cabinet are becoming as weird this serving Colony of Out Islands prime prime minister, yes, no...... why bother take the time make such bullshit up, yes, no.... seems reds are prepared use PeoplesPublicPurse as their ATM to bankroll the red party's 2022 General Election campaign, yes, no?
Well_mudda_take_sic 4 years, 11 months ago
This could well be the swindle of the century in the making if the already 100% government-owned assets are going to be transferred to the special sovereign fund for anything less than their fair value. Just think about it for a moment. The government assets being talked about here are already supposedly 100% owned by all of the Bahamian people. To transfer these assets to a trust fund expected to be owned by only investors in that fund, rather than all of the Bahamian people, would mean all other Bahamians end up giving up something, i.e. their interest in the transferred government-owned assets, for which they (the Public Treasury) should be entitled to receive the equivalent fair value of as consideration in return from the trust.
There's something very fishy going on here, and the fact that Gregory Cleare and possibly the Holowesko family are involved should raise a number of very serious questions.
Remember: Whenever government mentions Pubic-Private-Partnership (PPP) they usually mean Pilfering-Pillaging-Plundering of the Bahamian people.
And beware any politician who talks about a "guaranteed return". That's sure fire code for the Bahamian people at large getting royally ripped-off in some deceitfully devious way.
DDK 4 years, 11 months ago
Sadly, you are probably right Mudda! The fact is you cannot take anything these folk spout at face value. Shame the effort they put into their money making schemes and scams while in office cannot be used for intrinsically good ventures for Bahamiankind..
sealice 4 years, 11 months ago
it does sound more ponzi then help bahamians for certain
birdiestrachan 4 years, 11 months ago
Why is doc so concerned with web shops and not concerned with the Arawak shipping port? 40% owned by 11 families doc will be going to Bains Town soon to cut his birthday cake.
doc is making stuff up and some one responsible should call him aside and tell him to stop. because many Bahamians know better.
Mr small things: can say that the FNM government has enriched his pocket. While the poor the little they had is been taking away. :its the peoples time"
Chucky 4 years, 11 months ago
How do you increase Bahamian ownership of government assets. It’s not possible, as if the government owns it, it belongs to all Bahamians. This is just code for wealth transfer to rich friends.
Well_mudda_take_sic 4 years, 11 months ago
Exactement!
bogart 4 years, 11 months ago
MONKEY ONKLE......I ...MUSSEY...ONE ...D GRADE...PORE....EDUCATED FOOL....WHICHINININ......ANY ..FELLOW JUNGALIST.....JONSER DONE KNOW ....GUBBERMINT BELONGS TO DA PEOPLE.....!!!!!!!!!!!...we mussey stupid dumb black..stupid............but we aint dat stupid....!!!!!!!!!!! ERRY ONE DONE KNOW CENTRAL BANK REPORT DONE REPORT DAT BAHAMIANS ...LIKE 50% STRUGGLIN TO MAKE ENDS MEET....AN DEN 4.5% VAT ADDED...ON BEND... BACKS............WORSER OFF.........NO DISPOSABLE INCOME.......LATIN AMERICA ECONOMIC REPORT 2019 DONE SAY ....BAHAMAS HAS .....BIGGEST GAP IN CARIBBEAN WID ....SURINAME..FIRST BIGGEST GAP SOCIAL AN ECONOMIC .......sooooooooooooo.....where we pore d grade ...an 50% Central Bank report certifies we strugglin....an worser wid 4.5% taxes....majority nation....gon get money fron....???????...an if we get money we 5,400 homes widdout light gan try pit it back on......mabye new shoes....underwear.....
IF DERE ARE SHARES GIVEN OUT ......DA JUS LIKE TO HAVE DA PIRATE OF PRAGUE.....ADVISING DA PROGRAM.....
TalRussell 4 years, 11 months ago
Yes, yes, seems ma Comrades, a challenge being offered for we beloved Queen Liz to execute a royal intervene prevent Imperial red shirts cabinet's rush finish transferring ownership of many the PeoplesPublic assets, before they're tossed out office - prime Colony of Out Islands assets ownership awaiting being transferred over to a well-known select merchant group UBP's, and foreigner interests, yes, no?
Gotoutintime 4 years, 11 months ago
Never happen!!
Well_mudda_take_sic 4 years, 11 months ago
And still not peep from Minnis about Carnival using our country's seas as a toilet for decades. Does our dimwitted PM have any sense at all about what's most important to us and our country?
Weezie 4 years, 11 months ago
So, let us take a look at this!
The PM is right! The government owns a bunch of run down buildings which have been abandoned - Post Office, Rodney Bain, Clarence Bain, old City Markets Building on Market Street, etc.
In addition, the Government owns buildings that have been so poorly maintained and have become so mold infested that these buildings have to be abandoned if only the government could find a place to move - Ministry of Health on Meeting Street, JL Center on Blake Road, etc.
In addition, the Government owns buildings that it cannot seem to get finished despite years of construction and the expenditure of tens of million of taxpayer dollars and to this day remain unfinished and unoccupied - Independence Shopping Center on East West Highway, Ministry of Tourism on George Street, Building on Seventh Day Adventist property on Wulff Road, Building next to Attorney General's office on Thompson Boulevard, etc.
So, yes! We own the buildings but SO WHAT.......because those buildings ain't doin' nuttin' for us sitting there bust up and broke down.
To repair, renovate, rebuild or blow up and start again all of these buildings will cost probably over $100 million.....maybe even $200 million. Where do you think we will get this money from? The taxpayer? Hell no! NO MORE TAXES! Borrow it? Hell no! We have been downgraded so many times for borrowing and borrowing that we should borrow no more!
The only sensible solution is to get the money from the private sector. Bahamians have over $6 billion sitting in the banks earning NO interest. Just imagine........creating a company into which these run down abandoned government owned real estate assets are placed at FAIR MARKET VALUE, join that up with some of that $6 billion sitting in banks earning no interest (safeguards would have to be put in place to ensure that the ownership was spread over tens of thousands of Bahamians). The advantages would be enormous: 1. Loads of new construction jobs would be created fixing up these new buildings. 2. Loads of new maintenance jobs would be created maintaining these buildings. 3. Government would have newer buildings (with no mold) which would translate into better working conditions for civil servants. 4. Government would still own 30-40 percent of the buildings and get the dividends from that. 5. Government would have no new debt and the taxpayers would have no new taxes to pay for all this construction. 6. Government buildings would now be partially owned by thousands of Bahamians getting them a modest return on their investment. 7. Government could reduce the need to rent buildings from the white knights and the numbers boys!
Sound like a damn good idea to me!
DDK 4 years, 11 months ago
Like Bank of Bahamas?
DDK 4 years, 11 months ago
.
DDK 4 years, 11 months ago
The thing is, if neither Government ministers nor civil servants who work in current government owned buildings, whether relatively new or not, do not now possess the wherewithal the keep these buildings clean and properly maintained, what would change with public/private investment? Would we have boards to manage the current over paid useless boards? Mind sets would have to change first........
Well_mudda_take_sic 4 years, 11 months ago
PART I
Say what you may Weezie, but this has all the hallmarks of being an outrageously monstrous land grab by the wealthiest few in our country today. The stench of the greediest of them in the Lyford Cay community is palpable all over this proposed swindling of assets worth hundreds of millions of dollars from the Bahamian people.
It will not be long before we start hearing about the proposed waiver of stamp duty on all property transfers to the trust, a generous exemption from real property tax for a lengthy period on the transferred properties, customs duty exemptions for all materials imported by the trust to spruce up, restore and/or re-develop the properties, and so on and so on. Bahamians may be getting nothing or very little now from these dilapidated and/or abandoned properties, but that's not going to change when these properties come under the control of the trustees of the trust, who no doubt would comprise a select few of the wealthiest and greediest among us.
How would government go about ensuring it gets fair value for these assets for the Bahamian people? Many of the dilapidated and/or abandoned buildings sit on very valuable real estate, together worth hundreds of millions of dollars. Ideally each of the properties should be independently appraised (by more than one expert appraiser) to determine a minimum selling price. They could then be sold in a public auction where not only the proposed trust/investment fund, but also other competing bidders, would have an opportunity to bid up the starting asking price. The other competing bidders would have to be unrelated to the investment fund and banned for a lengthy period of time from investing in the trust or selling to it the properties they acquire at auction. This would at least avoid the huge and most egregious firesale discount that would surely otherwise exist under a bulk sale of the properties to a single buyer, the trust. See PART II immediately below.
Well_mudda_take_sic 4 years, 11 months ago
PART II
Your suggestion Weezie that government would have newer buildings (with no mold) which would translate into better working conditions for civil servants" is probably without merit. Our costly bloated civil work force has left government without the means to properly maintain any of its properties on a sustained basis. That certainly would not be fixed by transferring rundown properties to the trust. The government would just develop and rundown a whole new set of properties. Right now government has no rental or property tax cash outflows associated with its rundown properties, and obviously would not be able to pay a market rate of rent on any of the transferred properties once they have been re-developed anew by the trust. That naturally begs the question: Just who would be occupying these properties after they have been re-developed by the trust? And would the trust be able to sell the properties it acquires from government?
Any hope of maintaining diversified ownership of the fund among many small investors would all too quickly be thwarted and roundly defeated by the very greedy and wealthy few who cooked up this whole idea to begin with. Make no mistake about that....we have seen it happen too many times before.
The greedy few behind this scandalous scheme obviously think Minnis is a donkey that they can all too easily ride right into the ground. We shall soon see from Minnis himself whether that is indeed the case.
Well_mudda_take_sic 4 years, 11 months ago
Government could easily ensure all eggs don't end up in one investor group's basket by limiting the number and/or value of properties any single investor or one investor group can acquire at auction, including the proposed trust/investment fund. There's no need to have only one investment fund bidding for the properties at auction. There may be other enterprising Bahamians willing to form investor groups and/or investment funds to help achieved the desired diversification.
It's a given that only Bahamians with disposable income will be able to participate in any investment scheme involving these properties....and we all know just how few they are in our society today. Most Bahamians will therefore be disenfranchised of their interest in these rundown properties if you accept that they are currently owned by the government on behalf of all the Bahamian people and not just those Bahamians who happen to have disposable income. The harsh reality is we are a society of the have and the have nots, and the have nots will not be able to participate in a trust/investment fund.
To prevent the barracudas from quickly devouring the guppy investors in the trust/investment fund, the investor shares would have to be non-transferable and non-redeemable, and the trust/investment fund would have to be without the ability to sell or otherwise dispose of the properties. These onerous restrictions, while being absolutely necessary to preserve the intended diversity of investors and prevent the barracudas from feasting, obviously would not be appealing to barracudas and their big wallets. But that's just the point - they should not be given the opportunity to feast at the expense of most Bahamians losing their interest in these rundown properties.
BONEFISH 4 years, 11 months ago
Correction.The old Independence Shopping Center is not owned by the bahamas government.That property is owned by Scott Godet of Scottsdale Bedding.Why won't the press do some real investigating and find out why that project was really terminated?
Also what you see in the Bahamas,increasingly is the transfer of public assets to private management.I suppose some of it.But it will enrich a select group of people in this town.No doubt about that.
John 4 years, 11 months ago
The article clearly mentioned the old City Market building on Market Street and NOT this one. You mix up like conch salad.
BONEFISH 4 years, 11 months ago
The point of correction I made was to a comment made by the poster Weezie.
BONEFISH 4 years, 11 months ago
I meant to say I support some of it.
Bonefishpete 4 years, 11 months ago
How can one buy something that one already owns?
Well_mudda_take_sic 4 years, 11 months ago
This proposed ridiculously scheme is the equivalent of government giving away a hell of a lot of our Crown Land to the greedy wealthiest few in our country today. Most of them live in Lyford Cay and it would seem Minnis and the FNM are beholden to them for very large financial contributions. This is utterly appalling and wreaks of wrong doing of the worst possible kind. It must be stopped. The Bahamian people will never ever forgive Minnis and the FNM party if this robbing of the people is allowed to take place. Minnis will have cooked his own goose but good if he doesn't immediately stop this proposed blatant thievery in its tracks. I smell Brent Symonette's involvement - he's the one the greedy few in Lyford Cay would go to for help in persuading Minnis to get on board their scheme to defraud the Bahamian people.
Gotoutintime 4 years, 11 months ago
Dem dat got the gold makes der rules!!
Schemer18 4 years, 11 months ago
They still eyeing them web shops. They are very gullible. Why do they think Bahamians needs to partner with a government to own a piece of this rock? Bahamians do not want no wait, & see lala land. Bahamians want their own business like you, & everyone else in this country. They put you in office to succeed for you, & your family. So make it happen for them to compete in this economy.
bogart 4 years, 11 months ago
DA....EXPERTS....ADVISORS.....TO PROGRAM.....FIRST.....NEEDIN TO GIVE DA LIST OF THE SUCCUSSFULLY BUILDINGS ....DAT HAS BEEN CONSTRUCTED .......WITHOUT WASTING CONSTRUCTION MONEY.......?????????...........DELAYS.......COST OVERRUNS.....MOLD.....WIDDOUT ELECTRICAL MEDIA AMENATIES....NO EFFICIENCIES.....ADdING GROINS TO PREVENT EROSION SAUNDERS BEACH...Airport Abaco...Seawall GB first contractor...School GB....Clinic plans Cat Island.....Clinic Eleuthera hole in da ground......Harbour Abaco site delays wid blue hole....Exuma Airport defective lights shutting down airport....Water treatment plant Gladstone Rd.....zRoad works.cost overruns...PMH new addition widdout medical equipment furnishings to be operational.......emplty selected Post Office Gladstlne......Structure for proposed location PM official residence Goodsman Bay...Baseball Stadium Yellow Elder....Legal Building JFK....Arawak Port replacing Bay St congestion heavy lorries traffic....Education Complex Oakes Field....StrawMarket widdout upper level not built ultra prime location....etcetcetc.......THEN...in hurricane increasing zone....what if hurricane destroys govt buildings......why should public money allocated money 100million for govt to start be paying everrybodyelses money to build back then RICH private investers investments in select govt buildings.....????????....one other Clico...BOB....added to aforementioned listing of govt buildings...works inefficiencies....incompetetances....ya ADVISORS needs a Sales pitch on da perfect constructed govt building.......
truetruebahamian 4 years, 11 months ago
Two things come to mind. 1 the government buildings are already owned by the people of the Bahamas. They have just been sadly neglected or maintained. 2 If investing in these is anything like investing in the Bank of Bahamas (BOB) there is absolutely no way anyone could possibly be attracted into investing when the running of and decision making for this idea would be probably left to incompetent friends family and cronies of any government of the Bahamas,
John 4 years, 11 months ago
The concept or idea of giving Bahamians more ownership in ‘they tings’ is a great idea once it doesn’t become mismanaged and loaded with scandals. And it should go even beyond government buildings to acquiring shares in the ports of Nassau as well as Carnival and Disney ports and any other major investment that comes on stream. The government is already holding shares in Bith BTC and Aliv that are supposed to make available to the public. Some of those shares can also be place in this company, even these companies income statements are not too impressive at this time. Families cannot survive o comfortably of work income allow and any opportunity for additional income is welcome. Most Americans who live above the grade own shares in the stock market.
John 4 years, 11 months ago
Why does the prime minister continue to bash web shops? He came to power and met these shops operating legally and as legitimate businesses. Furthermore these web shops contribute significant tax revenue to the government, hire many Bahamians, rent many properties and operate, for the most part, on the cutting edge of technology. It seems both ignorant and petty, anti-Bahamian even for the least of the country to diss Bahamians in this fashion. But one day another prime minister may say no more routes for Bahamas Fast Ferries because they are a monopoly or no more locations for Superwash and only then you realize how stupid and unfounded your statements are.
sheeprunner12 4 years, 11 months ago
Minnis is so disingenuous ......... Just sell off the Govt shares in BTC, APD and other corporations that need to be off-loaded by the Bahamian Government.
Well_mudda_take_sic 4 years, 11 months ago
Government could easily ensure all eggs don't end up in one investor group's basket by limiting the number and/or value of properties any single investor or one investor group can acquire at auction, including the proposed trust/investment fund. There's no need to have only one investment fund bidding for the properties at auction. There may be other enterprising Bahamians willing to form investor groups and/or investment funds to help achieved the desired diversification.
It's a given that only Bahamians with disposable income will be able to participate in any investment scheme involving these properties....and we all know just how few they are in our society today. Most Bahamians will therefore be disenfranchised of their interest in these rundown properties if you accept that they are currently owned by the government on behalf of all the Bahamian people and not just those Bahamians who happen to have disposable income. The harsh reality is we are a society of the haves and the have nots, and the have nots will not be able to participate in a trust/investment fund.
To prevent the barracudas from quickly devouring the guppy investors in the trust/investment fund, the investor shares would have to be non-transferable and non-redeemable, and the trust/investment fund would have to be without the ability to sell or otherwise dispose of the properties. These onerous restrictions, while being absolutely necessary to preserve the intended diversity of investors and prevent the barracudas from feasting, obviously would not be appealing to barracudas and their big wallets. But that's just the point - they should not be given the opportunity to feast at the expense of most Bahamians losing their interest in these rundown properties.
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