The Tribune

By LYNAIRE MUNNINGS

lmunnings@tribunemedia.net

OPPOSITION Leader Michael Pintard demanded the Davis administration provide a full account of public funds submitted to Bahamas Power and Light (BPL), after the government revealed further financial assistance to the entity.

Last month, Works and Utilities Minister Alfred Sears said the government intended to make payments of $10 million to Shell for a period of nine months to satisfy BPL’S debt.

He also noted that the government has continuously assisted BPL through various financial challenges.

“The government has been assisting BPL through various financing mechanisms to cover the arrears owed by BPL to Shell,” the minister said at the time in the House of Assembly.

“A firm arrangement has now been arrived at whereby as of October 1, 2022, the government will make a monthly subvention of $10m to Shell to be applied to BPL’s arrears. This arrangement will continue to June 2023,” he said.

In a letter addressed to Prime Minister Philip “Brave” Davis, Mr Pintard said he is seeking “immediate” answers to an array of questions.

He said: “Since September 2021, what is the total value of monies provided from the government to BPL and what were the specific reasons for these subventions?

 “Since September 2021, what is the total value of monies provided and monies committed to assist BPL going forward to allow the company to meet current obligations and arrears? What were and are the reasons for these subventions and commitments?”

 He continued: “What portion of the funds spent and committed by the government - if any - are direct non-reimbursable subsidies to BPL and where in the budget were the funds taken from?

“What portion of the funds spent and committed by the government - if any - are reimbursable advances or loans to BPL and under what statutory provisions were the advances made? Specifically, were the loans and advances made consistent with the provisions of Sections 37, 38 and 40 of the Public Debt Management Act?

 “For the portion of funds that are reimbursable to the government, what are the express terms covering the loans to BPL? What are the interest rates charged? What are the related intervals and timelines for the repayment of the loans?

“For the reimbursable portions, does an element of the proposed surcharge increase intend to fund the repayments of the advances made by central government? What proportions of the indicated new surcharge rates are to cover repayment of advances or loans made by the central government to BPL?”

 With the recent announcement of the spike in BPL’s surcharge and the repayment of the debt owed to the fuel supplier, Mr Pintard requested a “full and proper explanation” in a statement in Parliament on the matter from the prime minister or the works and utilities minister as he deemed it “unreasonable”.

 Mr Sears was contacted by this newspaper for comment, but he did not respond up to press time.