Renew Bahamas’ principal shareholder yesterday said “nothing can be read” into his stepping down as the New Providence landfill manager’s chief executive, as concerns persist over its financial health.

Gerhard Beukes told Tribune Business that it was “a pre-determined transition” for him to move back from Renew Bahamas’ day-to-day operations in favour of the company’s chief operating officer, Michael Cox.

Mr Beukes, who corporate records show as Renew Bahamas’ 60 per cent majority shareholder, explained that Mr Cox’s ascension to the chief executive post was designed to occur when the company had reached its operational phase.

He emphasised that he remained on Renew Bahamas’ Board as a director, adding: “I’m still a director of the company; I stepped down as chief executive.

“That was part of a pre-planned transition role. Nothing can be read into that. I’m still a director of the company, and very involved in what happens.”

Mr Beukes continued: “It was just a pre-determined transition. As companies evolve, you go through phases - the start-up phase, and the operational phase. Things change.”

He declined to comment, though, on the status of Renew Bahamas’ negotiations with the Christie administration to the terms of its five-year landfill management contract, which it wants to amend to stem multi-million dollar losses.

And Mr Beukes also declined to comment “at this time” when asked about Renew Bahamas’ plans, and whether it would be at the landfill for ‘the long haul’.

Concerns over the company’s sustainability were expressed in yesterday’s newspapers by some of the 40 staff laid-off since early June, who are fearful that it may be winding down its operations, and will not be in existence to pay them severance pay and other due benefits.

The Renew Bahamas redundancies come as little surprise, and had been in the offing for several weeks, after Tribune Business revealed in late April that suppliers and security companies were complaining of late or no payments from the company.

The landfill operator has been hard-hit by the early April fire that knocked out its ‘baler’, as this has meant it is unable to package any recycled materials for export or local sale.

With recycling its only income stream, and no revenues coming in as a result, Renew Bahamas has little choice but to seek to reduce its costs to try and remain viable.

With a monthly top-line of $250,000, Renew Bahamas has likely lost around $750,000 in revenue just over the past three months.

Mr Beukes was yesterday unable to give a date for when the baler would be repaired, and recycling resume, saying: “They’re still looking at it. It’s quite a complex piece of machinery.”

Several observers of the situation at the landfill, though, speaking on condition of anonymity, have queried why such an important piece of equipment has been down for so long, and whether Renew Bahamas had insurance cover for it.

Mr Beukes, meanwhile, described the company’s employees as its “most valuable asset”.

“We want to make things better for the country,” he added. “There are many good people working 24 hours a day to turn this into a Bahamian success story. We’re trying to do all we can to resolve the situation there.”

Renew Bahamas earlier this year said that changes to its management contract were essential to eradicate “substantial” losses, which showed its original financial projections were invalid, and have a viable business going forward.

“What we are asking government to consider is to change the financial terms of our arrangement. We have lost millions of dollars. Our financial situation is not good,” Mr Beukes said earlier this year.

“What we are trying to do is change the profile of the contract, which means that we would be a viable business going forward. There are some ideas we are working on to ensure that a significant piece of ownership is transferred to Bahamians.”

He described the landfill management contract as “a classic frontier investment”, and said there had been numerous “unknowns” that Renew Bahamas was now aware of, but which it had not allowed for in its original business plan and projections.

Renew Bahamas’ effort to re-negotiate its contract, which runs until 2019, has placed the Christie administration in a difficult position.

It placed much faith in Renew Bahamas to solve the landfill’s woes, and is likely to be unhappy that the firm is seeking to alter the deals financial terms just two years in.

The Government has also been under immense public pressure over the recurring landfill fires - and the associated environmental, health and economic impact on nearby communities and businesses.

There have been suggestions that the Christie administration has been seeking alternatives and ‘Plan B’ options for the New Providence landfill, should an adequate compromise with Renew Bahamas prove impossible.

The latter’s latest difficulties again prompted calls for greater transparency from the Government on the landfill, and the disclosure of all its agreements with Renew Bahamas.

Branville McCartney, the Democratic National Alliance’s (DNA) leader, who has made the landfill one of his key ‘issues’, said: “We don’t know where this is going to lead that company as to their operations, but we don’t know what that operation is all about.

“We’re still trying to find out what their mandate is. We want to know what they are doing here. What is the essence of Renew Bahamas? We’ve been asking for that for two years.

“It’s really very concerning that the Government has been very reluctant and quiet as to what they were engaged to do. Why are they there? They have not had any impact on recycling in this country.”

Mr McCartney said there seemed to have been “a failure all around” with regard to the Government’s New Providence landfill strategy.

“Any negotiation with them ought to be for them to pack up and leave,” he added of the Government’s talks with Renew Bahamas. “That ought to be the type of negotiation going on here.”