By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Two former Cabinet ministers are warning that the drug and corruption charges levied against senior security officials could have a potentially chilling effect on foreign direct investment (FDI) flows to The Bahamas.

Branville McCartney, the former Democratic National Alliance (DNA) leader who previously sat in the last Ingraham administration’s Cabinet, told Tribune Business that the Government faces a “heavy lift to ensure foreign investor confidence will be rebuilt and sustained” after US federal authorities charged 11 Bahamians - including police and Defence Force officers - with participating in a drug trafficking conspiracy.

He was backed by Dionisio D’Aguilar, minister of tourism and aviation, who said both the US indictment itself and status of those charged may give investors pause for thought and cause them to “stop and review” their projects given the claims that corruption has penetrated key Bahamian government institutions at a high level. As a result, they may reconsider whether they wish to do business in this nation.

Both men, who each have their own private business interests, told this newspaper that the charges levied against Bahamian citizens - including the police chief responsible for aviation and overseeing airport security including at Lynden Pindling International Airport (LPIA) and a Royal Bahamas Defence Force chief petty officer - revived memories of this nation’s drug-boom years in the 1970s and 1980s.

Mr McCartney, in particular, said the situation recalled the unflattering ‘Nation for Sale’ headlines that appeared in the international media about The Bahamas at that time, while Mr D’Aguilar said the US allegations combined with other recent incidents - including the suspension of the officer heading the Criminal Detective Unit (CDU) - to leave the Royal Bahamas Police Force’s reputation “in tatters right now”.

Warning that the fall-out “will impact The Bahamas as a whole, you and me”, as well as all Bahamians and legal residents, Mr McCartney told Tribune Business that the drug and corruption allegations being made by the US authorities will “of course” impact the attitude of investors towards doing business in this jurisdiction.

“It’s always a turn-off in that regard, especially when they speak about high-ranking government officials,” the former DNA leader said. “We certainly won’t know the impact, but we do know it’s a turn-off. I just hope the Government can do what they have to do to ensure foreign investor confidence will be rebuilt and sustained.

“I don’t know how they do that. Your guess is as good as mine. I’m quite sure that it is paramount for this government in their governance to deal with that, trying to ensure foreign investor confidence is recognised and accepted in the country notwithstanding what’s going on. That’s a heavy, heavy lift. Hopefully they’ll be able to do that for all our benefit.”

Both he and Mr D’Aguilar said the fall-out from the indictment was unlikely to impact tourism, The Bahamas’ largest industry. However, the latter added: “It will probably impact people’s interest in doing business in the community. It may not stop that, but it may cause them to pause and reconsider. I don’t know whether it will go to cancel, or if it will depend on what actions are taken.

“In a number of instances, there’s a stop and review. It doesn’t lead to a cancellation, but a stop and review and delay. These allegations reflect incredibly poorly on certain institutions in The Bahamas, like the Royal Bahamas Police Force and possibly the Defence Force. In the case of the Royal Bahamas Police Force, this is the second expose to hit them in five months.

“Back in July we had recordings concerning the head of CDU, chief superintendent Michael Johnson, that led to him stepping down and going on gardening leave and we’ve heard nothing since,” Mr D’Aguilar continued. “Then, five months later, you get this huge bombshell come in.

“The reputation of the Royal Bahamas Police Force is in tatters right now. The whole community is talking about an organisation that needs help. Something has got to give. I’m sure there isn’t a single Bahamian talking about this who is not asking what the hell is going on?

“The question is what is being done about it, and done to correct it moving forward. Do we hope it gets better or do we do something serious and transformational to make the organisation work as it should. You can stick your head in the sand and hope it blows over and goes away but the reputation of the Royal Bahamas Police Force is being significantly negatively impacted.”

With Chief Superintendent Elvis Curtis, head of the police force’s aviation and airport security division among those charged, together with Chief Petty Officer Darren Roker from the Royal Bahamas Defence Force, Mr McCartney said the potential impact for The Bahamas is “far worse” than the $10m the Ministry of Tourism had to spend earlier this year to “clean up” the negative publicity related to US crime advisories.

Pointing out that the country’s national security has been endangered if the US allegations are true, the former DNA leader warned Bahamians will be impacted regardless of political affiliation. “It almost reminds of a ‘nation for sale’ many, many years ago,” Mr McCartney said of the US indictment. “You are reminded of that.

“I am very curious to see what is going to happen in trying to calm the reputation of The Bahamas. I think it’s an extremely unfortunate situation, and we as Bahamians - I’m talking about every day Bahamians - that we are put in this position because of the foolishness done by those persons, especially persons in our national security and possibly in government.

“It’s absolutely ridiculous and something we shouldn’t really stand for. I would hope and pray that the Government takes a hard stand in weeding out the bad apples and making a true example of those persons because it affects every single Bahamian and those who have a right to live here.”

Asserting that The Bahamas’ response to the indictment, and its national security and reputation implications, will be critical, Mr McCartney said: “Just like life we need to face it head on and do what’s best, and the Government does what’s best, for The Bahamas. Don’t take this lightly.

“They need to show not only The Bahamas, but the world, we cannot stand for these things and we are taking steps in these circumstances. It requires taking drastic steps. The Government needs to show it is serious and not pussy-footing around with the criminal element. I think the Prime Minister has to come out and indicate not only to the Bahamian people but the world that they are very serious about this.”

Mr D’Aguilar, meanwhile, said “every right-thinking Bahamian is embarrassed by this”. He added of the Government: “You cannot bury your head in the sand, which is what most people believe has happened so far. Nobody believes they’ve done anything material, and there’s a large belief in the local community that they’re waiting us out. Time passes, and we will forget about.”

Agreeing with Mr McCartney that the US charges revived memories of the 1980s, when “people steered clear of us”, Mr D’Aguilar added: “We’re trending back in that direction.”