By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net


The US has accused the Government of "stalling" the full enactment of anti-corruption laws that would accelerate improved transparency and accountability in Bahamian governance.
The US State Department, in its just-released 2024 investment climate report on The Bahamas, cited campaign finance reforms and the creation of an Integrity Commission as two initiatives that have been "delayed" to leave this nation exposed to the threat of corruption and undue foreign influence in policy-making decisions.

In highlighted, in particular, what it described as the "complete disregard" by some Bahamian politicians and high-ranking public officials towards complying with the Public Disclosure Act, which mandates that they meet an annual deadline to disclose their net worth through providing information on their income, assets they own and liabilities such as mortgage debts.

The US report asserted that the Public Disclosure Commission, which oversees the filing of these financial declarations, has failed for the past 13 years to meet its legal obligation to publish reports on who complied and who did not. And it added that the Commission's last publication in the Government's official gazzette, in 2011, only contained disclosures for 2008 - some 16 years ago.

Noting the frequent allegations of some officials "accepting small-scale 'bribes of convenience', and favourable treatment given to wealthy or politically connected individuals", the 2024 investment climate report on The Bahamas also queried whether reforming the Bahamas Investment Authority (BIA) into a more proactive promotions agency remains "a priority" for the Davis administration.

It repeated prior concerns of "bureaucratic impediments" in the investment approvals process, citing "significant delays", and even asserted that some investor applications have never been responded to by the Government and its relevant agencies. No details or examples, though, were provided.

While governance was again the US State Department's area of greatest concern, it did acknowledge The Bahamas' 64 out of 100 score in Transparency International's corruption perceptions index as giving this nation a "notably transparent" ranking compared to all other 180 countries ranked.

And The Bahamas was also branded "an excellent investment opportunity for US companies" due to its tax regime, which includes no income-based taxes at the moment, proximity and history of democratic stability. Yet the report also pointed out that The Bahamas' score in the Transparency International survey has fallen by seven points compared to 2012.

"The current administration is working to amend several good governance laws. While efforts have been made in some areas, the Government has stalled full implementation of anti-corruption legislation that would accelerate efforts to enhance transparency and accountability.

"The Government has not fully enacted its Freedom of Information Act (2017). Legislation to support an Integrity Commission and campaign [finance] reform have also been delayed. An independent Information Commissioner, supported by technical and administrative staff, was appointed in mid-2021, but the office is not fully operational."

The Government will likely retort that the US should focus on its own problems before commenting on the internal issues of other countries such as The Bahamas. However, this year the US State Department paid special attention to the Public Disclosure Act and compliance with its provisions.

"The Public Disclosure Act, a legal anti-corruption mechanism, mandates that every senator and member of Parliament provide to the Public Disclosure Commission a declaration of assets, income and liabilities annually," the investment climate statement said.

"When it comes to meeting the legal requirements under the Public Disclosure Act, some public officials have over the years shown a complete disregard. The Public Disclosure Act provides for the Public Disclosure Commission to examine every declaration furnished to it by MPs, senators and senior public officials and public appointees.

"It also requires that the Commission gazette reports so members of the public can see who declared and who did not. Over many years, the Public Disclosure Commission has failed to meet this legal requirement to publish reports," the US State Department document continued.

"The most recently gazetted report is from December 2011, and it contained information on disclosures only up to 2008. The Public Disclosure Commission is pushing to modernise the system of filing and publicising financial disclosures of public officials."

Expanding on its governance and anti-corruption concerns, the US State Department report said that while retired Supreme Court justice, Keith Thompson, was appointed as information commissioner in mid-2021 and is now backed by an office and support staff, they are "not fully operational" yet and the Freedom of Information Act has yet to be fully implemented.

"Legislation to support an Integrity Commission and campaign [finance] reform has also been delayed. The campaign finance system remains largely unregulated with few safeguards against quid pro quo donations, leaving a vulnerability for corruption and foreign influence," the document added.

An Integrity Commission would create a politically-independent body to receive and investigate corruption allegations. Legislation to form it, and give it legal standing, was first tabled in the House of Assembly by the Minnis administration in 2017 but never moved forward to a debate or second reading, and it died once Parliament was prorogued for the September 2021 general election.

The Davis administration pledged to revive this in its 'Blueprint for Change' election campaign manifesto, but has thus far yet to table any legislation in the House of Assembly, so the Integrity Commission delay runs across both FNM and PLP administrations.

"There are no specific protections for NGOs (non-governmental organisations) involved in investigating corruption," the US State Department report added. "US firms have identified corruption as an obstacle to FDI (foreign direct investment) and have reported perceived corruption in government procurement and in the FDI approvals process."

Again, no details or examples were provided, but the report added: "Bahamian laws provide criminal penalties for corruption, and the Government generally implemented the law effectively when applied. However, laws to combat corruption by public officials have been inconsistently applied.

"The Bahamas would benefit from a more robust enforcement of rules to prevent conflicts of interest related to government contracts. The country grapples with reports of corruption, including allegations that contracts have been directed to political supporters, isolated reports of officials accepting small-scale 'bribes of convenience', and favourable treatment given to wealthy or politically connected individuals....

"The absence of transparent investment procedures and the lengthy legal disputes resolution process pose challenges for investors. The Government has made some efforts to address these issues, but full implementation of anti-corruption legislation and other reforms is pending.

"US investors should be aware of the potential risks and focus on areas where they have a competitive advantage. Ongoing monitoring of the investment climate is recommended, particularly regarding government efforts to improve transparency and efficiency."

Oft-repeated concerns over so-called 'red tape' again made this year's report which, for the first time, singled out the BIA - and whether the Government plans to transform this into Bahamas Invest - as a potential concern.

"Bureaucratic impediments are not limited to the National Economic Council approvals process. The country lags on international metrics related to starting a business, registering property, acquiring construction permits, accessing credit and resolving property disputes. Significant delays in the approvals process have occurred, including cases where the Government failed to respond to investment applications," it said.

"A few years ago, the Government promoted plans to establish a new, independent agency – Bahamas Invest – to fast-track FDI, mobilise local investments and improve bureaucratic delays, functionality and transparency. However, the embassy is not aware of progress towards establishing Bahamas Invest and it is unclear if these plans remain a priority. BIA continues its oversight of all FDI-related approvals and promotion."

The concept of transforming the BIA into a proactive investment promotions agency, which would target the investors and industries that The Bahamas wants to attract in a manner similar to Jamaica's JAMPRO, was first discussed under the former Minnis administration post-COVID and survived into its Davis-led successor.

Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, has said publicly several times that the plans to convert the BIA into Bahamas Invest are moving forward. However, less has been said about this in more recent times, although there has been no indication the Government has abandoned this idea.

The US State Department report may also have been inaccurate in asserting that the Ombudsman Bill, which would create a public office to investigate complaints of maladministration by government officials, has yet to be passed by the Senate despite clearing the House of Assembly in January 2024.

Tribune Business located a video showing Opposition senator, Maxine Seymour, debating the Bill on February 14 this year. It is unclear, though, whether the Senate passed the legislation or it went forward to get the required assent from the governor general that is needed to bring it into law.

"In January 2024, the Ombudsman Bill 2023 passed in the House of Assembly. The Bill establishes the Office of Ombudsman to investigate the administrative actions of any public authority and decide whether there is evidence of maladministration on the part of the authority," the US State Department report said.

"The ombudsman is charged with making recommendations for improving administrative practices and procedures for the authorities subject to its investigations. However, the Bill still needs to be passed in the Senate to be enacted. It is unclear when this will happen."