The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A top Ministry of Finance official yesterday defended the decision to accept a “sole source” bid for the app that now allows persons to file their Customs declarations electronically prior to arrival in The Bahamas.

Marlon Johnson, the Ministry of Finance’s acting financial secretary, told Tribune Business that the selection of Caves Village-based Exempt Technologies Ltd as the app developer/provider was consistent with both existing procurement practices as well as the new Public Procurement Act due to take effect from September 1. 

He added that the choice had passed through all necessary approval processes after Exempt Technologies proposed the app to Bahamas Customs following its preparation of a “proof of concept” to the agency.

Speaking after the Government decided to suspend the imposition of a $3.35 per declaration processing fee for air arrivals to The Bahamas, which it said was approved in the 2021-2022 Budget, Mr Johnson said of Exempt Technologies’ selection: “The simple answer is, as is the case now and as is the case under the new legislation, there are carve outs for sole sourcing where there is proprietary technology and continuation of process work.

“There are several scenarios where it is acceptable to go into sole sourcing. The company approached Customs, had a concept they had done some work on, and Customs looked at various factors, made the determination that this is the way they wanted to go and the approval process that was needed to get it done. 

“All the approval processes were followed. They had developed a proprietary proof of concept they wanted to sell to Customs, and that was decided by Customs, the Ministry of Finance and certainly the Government itself.”

Exempt Technologies’ website lists its senior management as Dino Huyler, Michaela Bayliss and Elon Mackey. It could not be reached for comment before press time, but other app and digital payment technology providers - speaking on condition of anonymity - questioned the justification for “sole sourcing” and not putting the contract out to bid especially since it involves levying fees on Bahamian citizens.

Meanwhile, Customs yesterday said it had temporarily suspended the $3.35 processing fee after it was levied on persons who did not need to pay it. The fee is only levied when persons declare goods that attract import duties, but those using their annual exemptions or filing “nothing to declare” were also being charged.

Social media accounts, many connected to the Opposition Progressive Liberal Party (PLP), slammed the fee’s imposition for causing long lines and 90 minute queues for persons returning to The Bahamas via Lynden Pindling International Airport (LPIA). They questioned why the app was not simply tied into Customs’ existing portal to make payment even simpler.

“The Government has temporarily suspended the implementation of a Customs processing fee, approved during the 2021-2022 Budget exercise, to allow for additional training and customer education,” the Ministry of Finance said in a statement.

“The recent change was made to bring the procedures for air arrivals in line with all other forms of entry, where a small processing fee is changed to support the cost of operations by the Bahamas Customs and Excise Department.

“The $3.35 fee does not apply to individuals using their Customs exemption or filing nothing to declare. It is only applicable for individuals who declare taxable goods on a C17 or C18 form, associated with accompanied baggage declarations.”

Dr Geannine Moss, Comptroller of Customs, added: “These fees are collected by the Customs Department and deposited directly to the Public Treasury. We are aware that some customers were charged incorrectly and are making arrangements to issue the appropriate refunds. While the fee is being suspended we are reviewing the implementation to ensure adequate training and proper communication.”

The Ministry of Finance added that the fees are applicable to both manual submissions and those made through Exempt Technologies’ EXEMPT app, which is now being trialled. It described as “wholly erroneous” social media missives linking the app to Kanoo.