By Fay Simmons

Tribune Business Reporter

jsimmons@tribunemedia.net

The Opposition has again pressed for details from the government surrounding a $10m loan to Carmichael Village Project Development Company.

Senator Darren Henfield yesterday pushed for the Davis administration to answer questions about its $10m loan to the Carmichael Village Project Development Company, listed as a government business enterprise (GBE) in the quarterly public debt statistical bulletin.

Reading a letter penned by the leader of the Opposition, Michael Pintard, to Prime Minister Philip “Brave” Davis from July 8 into the record of the Senate, Mr Henfield urged the Davis administration to demonstrate the level of transparency and accountability they demand from foreign entities registered in the jurisdiction and reveal details surrounding the company and the terms of the $10m loan arrangement.

“Why can’t we be so forthcoming with the Bahamian people as we intend to hold foreign companies registered in our jurisdiction? That is the only question I ask. And that is why the people who sometimes unfairly, in my humble estimation, ask us to do things in our financial services sector that appeared to us to be onerous,” said Mr Henfield.

“But when we behave like this at home, and we go abroad and pretend that all is well at home, and they forced upon us, these demands, and we come back and we stand lockstep with you, and we fight so stand lockstep with us and answer these questions for the Bahamian people.”

The letter noted that as the company is listed as a GBE and was provided a loan from the public purse, the Bahamian people should have been advised of the company’s existence and purpose.

“We can find no evidence of an announcement by the government in respect to this company or any public funds advance to it, we find this astonishing given that your ministry lists the company as a GBE, which would be, by definition, an entity principally owned by the government in trust for the Bahamian people to undertake commercial services in the marketplace,” said Mr Henfield reding from the letter sent to the Prime Minister.

“How could the Bahamian people not be advised formally that the government has established a multimillion dollar entity in the people’s name? Thus, on behalf of the Bahamian people, we demand the following answers.”

Mr Henfield went on to question the purpose and structure of the company as well as its current standing with the Registrar General and Department of Inland Revenue.

“When was the Carmichael Village Project Development Company Limited formed? Was a company formed by government attorneys or through a private practice? Where is the Registered Office for the company? Is the company a GBE? If so, please provide the name of the board members, chairpersons of the company, as an established and functioning board would be required by virtue of the Public Finance Management Act,” said Mr Henfield.

“What is the scope of this GBE? What are its core objectives and mandate? Is the company a going concern? Is the company in good standing with the Registrar General? Does it have a business license? Is it VAT registered? What are its primary sources of income? What are its major elements in its expenditure? Who is the most senior manager of this company, who is the Chief finance officer?”

He also questioned the purpose of the $10m loan as well as repayment terms and beneficiaries of the funds.

“Given that by law, all lending by governments require Cabinet approval. When did Cabinet consider and approve the proposal to lend the company $10m? What is the specific purpose of the $10m loan? What are the interest and repayment terms? When will it be repaired in full? Did the board of the company approve a resolution to accept a loan from the government? When did that happen?” said Mr Henfield.

“Does the company have bank accounts, was the $10m transferred to bank accounts controlled by the company. Who are the main signatories on the account, if the company does not have bank accounts into which company or companies were the proceeds of the loan advance? Which day or dates were the loan proceeds advanced?

“Were any proceeds with the $10m loan either directly or indirectly provided to private individual, contractor, vendor or entity, if so, to whom and for what purposes? Were any proceeds with the $10m loan, either directly or indirectly, provided to any public official, if so, whom and for what purpose?”

The letter also inquired if the $10m loan was lined to the $20m loan obtained by the Ministry of Housing in 2022 and questioned why a new GBE was established for housing development when other existing government ministries have taken on the task for several decades.

“Is this company or the loan in any way whatsoever linked to the $20m loan obtained by the Minister of Housing in 2022? Is the $10m or any portion thereof to provide debt servicing, debt repayment, assurance, collateral or benefit in any way, to the companies that furnish the then Minister of Housing with a $20m loan, if this transaction is related to the provision of the government sponsored housing, what specific set of circumstances required the government to establish a new GBE for housing development activities, which up until now, had been done successfully for decades through the existing government entities?” said Mr Henfield.

“Given that all non-statutory public expenditure must be appropriated by Parliament, and given that the government has zero authority to advance loans other than by way of appropriated funds, please indicate where in the budget this $10m discharged.

“Prime Minister, by any metric, the sum $10m is substantial. Try as we might, we can think of no satisfactory explanation as for why government, with a mighty public relations team, would neglect to inform the Bahamian people that it had established a new GBE, provided information on its board and management and explained how and why it had advanced this new entity some $10m in public funds. Accordingly, we look forward to the answers to our questions and for any and all information regarding this company and this significant transaction, all done purportedly on behalf of the Bahamian people.”