The Tribune

By FAY SIMMONS

TRIBUNE Business Reporter

jsimmons@tribunemedia.net

A CABINET minister yesterday branded it “totally unacceptable” for state-owned enterprises (SOEs) such as Bahamas Power & Light (BPL) and Bahamasair to go years without disclosing audited financial statements, warning that agencies funded by the taxpayer must be held to greater financial accountability.

Michael Halkitis, minister of finance, speaking during a presentation at the Bahamas Institute of Chartered Accountants (BICA) accountants week, said some public corporations have gone as long as a decade without submitting financial statements despite receiving funding from taxpayers.

“It's been an issue with several of our corporations where it's totally unacceptable that you have 10 years, and in some, I don't know if there's any more, but in any way to have multiple years of non-submission of financial statements, particularly and especially when these corporations and agencies are being funded by public resources,” he said.

Mr Halkitis said the Government is seeking to address the problem by requiring agencies and SOEs to publish annual and periodic plans, including half-yearly reports, as part of efforts to improve their management and oversight.

Reece Chipman, the former Free National Movement MP for Centreville, raised the concern, arguing that Bahamians should not be expected to continue financing state-owned enterprises without knowing how their money is being spent or whether the corporations have adequate governance arrangements.

Mr Chipman said some state-owned enterprises are up to 12 years behind in producing audited financial statements, making it difficult for taxpayers to assess their financial performance and hold those responsible accountable.

“Some of them are behind 10, 11, 12 years, and these cannot be state-owned enterprises that the public is financing, and we have no idea of how not only the money that we are financing them is being spent, but whether or not the governance structure is in a position to be held accountable,” he said.

Mr Chipman argued that MPs could address the persistent backlog by reconsidering the statutory requirements for financial reporting, suggesting that some corporations could be permitted to submit less comprehensive financial statements, compilations or reviews instead of full audits.

“I mean, the answer to the question on state-owned enterprises not presenting audited financial statements is a simple fix for legislators. Just change it,” he said.

Mr Chipman argued that requiring full audits without consistently enforcing the law had left The Bahamas with reporting requirements that were not being met, while creating an impression that the laws were not being followed.