By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Unpaid medical coverage for police officers and the other security forces is “within tolerable” limits, a Cabinet minister asserted yesterday, while denying allegations that the arrears exceed $100m.

Wayne Munroe KC, minister of national security, told Tribune Business that figure - detailed in a February 3, 2025, notice by the Police Staff Association (PSA) to its members - as well as suggestions that Colina Insurance Company “has threatened to cancel policies” due to the non-payment were both incorrect.

While not providing the accurate premium arrears figure, he said the sum involved was “within tolerance” for the relationship between the Government and the BISX-listed life and health insurer. Mr Munroe also argued it was extremely rare in the corporate world for companies and governments not to owe monies to their vendors at some point in their dealings, describing this as a normal business occurrence.

And, in a thinly-veiled suggestion that the Police Staff Association memorandum’s leak could be related to the upcoming general election and start of political campaigning in earnest, he said the contents have been sent to the ministry of national security’s legal unit for its “advice” and assessment in a hint that disciplinary action may follow.

Pointing out that, as members of the uniformed security services, police officers have a duty to be accurate with information that they release, Mr Munroe voiced concern that the Association’s actions could “impact morale within the Royal Bahamas Police Force (RBPF). He expressed particular unhappiness that it had not exploited his “open door” policy to bring its concerns to him first.

The minister hit back after the Association, in its February 3 missive on PSA-headed paper, said: “As public servants we have made a profound commitment to protect and serve our communities. However, we face challenges that hinder our effectiveness and threaten our well-being, challenges that deserve our urgent attention and collective action.

“One of the most pressing issues we currently confront is the alarming situation regarding our insurance coverage. It deeply concerns me to report that the Government of the Commonwealth of The Bahamas once again owes Colina, our insurance carrier, in excess of $100m. 

“This unpaid obligation raises urgent and critical questions about the safety and security provided to us who serve on the front lines to protect the Commonwealth of The Bahamas,” the Association added. “The real impact is that Colina has threatened to cancel policies because of the Government’s continued promises to settle this debt and continue to pay it consistently until it is completely paid.

“However, the Government has once again failed to live up to its obligations and its promises. This is a recurring payment and was a part of last year’s fiscal Budget.” Ricardo Walkes, the Police Staff Association’s executive chairman, did not respond to attempts to reach him for comment before press time last night despite multiple attempts to do so.

However, Tribune Business sources with high-level contacts in the Royal Bahamas Police Force and the Association confirmed that both the document, and sentiments it conveyed, were genuine and authentic.   

And this newspaper knows that the issue of unpaid health insurance premiums, and the fear Colina may cancel coverage as a consequence, is causing alarm and disquiet among many police officers. This is based on feedback that Tribune Business has received privately, and is separate and apart from the concerns raised by the Police Staff Association.

The 2024-2025 Budget earmarks a total $70.064m to be paid-out this fiscal year to cover insurance premium payments on behalf of public officials, with this sum forecast to increase to almost $75m by the 2026-2027 fiscal year. 

The Ministry of Public Service, under whose budget these insurance payments fall, was shown as owing a total $13.609m in total arrears, unpaid invoices and unbudgeted spending some 12 months ago during the 2023-2024 mid-year Budget, so the leap to the Association’s suggested $100m debt liability would be significant if accurate.

Mr Munroe, who confirmed he was aware of the Association’s notice, said he had checked with Michael Halkitis, minister of economic affairs, who had confirmed to him that the $100m figure was not correct. “What is surprising, if it was true, is that they have made no attempt to meet with the ministry or minister,” the minister of national security said of the Association.

“It seems to be something, for want of a better word, political with a small ‘p’ rather than a large ‘p’.” He told this newspaper that the Association’s concerns over medical and health insurance coverage were not new, and each issue had been addressed by either the Government or senior Royal Bahamas Police Force officers previously.

As an example, Mr Munroe said the Government had clarified that dropping insurance coverage for dependents of police officers only applied to those recruited after the Budget year began on July 1 and had yet to begin training. And he added that Deputy Commissioner of Police, Kirkwood Andrews, had also dispelled fears over an officer’s alleged inability to get coverage and a dependent’s death as the policy was still in force.

Pointing out that all police officers are governed by the Police Service Act and other laws in their conduct, and asserting that they have a duty to be accurate with information presented publicly, Mr Munroe argued that the Association had presented no evidence to support the $100m figure and assertion that Colina is preparing to cancel coverage.

“It’s troubling that in the face of inaccurate information they would publish that,” the minister told Tribune Business. “They cannot produce any document that says the policy is not in force, and cannot produce any document that says the Government owes money to Colina.”

Mr Munroe, while confirming outstanding premiums are due to the Bahamian life and health insurer, added that any arrears were within the limits of the two sides’ business relationship. “I’ll put it to you like this: I’d be surprised if any vendor or business is not owed some money,” he said. “Everyone knows governments and large organisations all have credit relationships with their vendors.

“The question is: Is it within the tolerance of the relationship? From what I understand it’s within the tolerance of the relationship. What’s personally disappointing is that, when I was appointed minister, I made it a point to meet with the Police Staff Association, meet with the Prison Staff Association, meet with the Defence Force officers to let them know we have an open door policy on any issues they may have.

“And if we could not resolve their issues, we would tell them we cannot address them and direct them to where they needed to go. The Prison Staff Association frequently comes to the ministry with any issues they have, but this group [the Police Staff Association] does not.”

Mr Munroe explained that the same Colina medical insurance policy also covers Defence Force and prison officers, as well as police officers, thus embracing all the security services. “I don’t know why they keep bringing it up when nobody has been refused service based on the policy,” the minister told Tribune Business.

“The policy is kind of strange in some of its conditions; you cannot go abroad without a referral, but every policy has its terms.” Tribune Business sources yesterday confirmed that substantial health insurance premium arrears is nothing new for the Government with the issue pre-dating the Davis administration.

Well-placed sources, speaking on condition of anonymity, said sums owed to Colina “probably got to near $40m” under the former Minnis administration. “I don’t think it got a lot higher than that,” one contact familiar with events at the time revealed.

“We were always conscious of it because they [Colina] put a lot of pressure on us. They had a lot of carrying capacity but it was a cost to them because they were paying out-of-pocket” to cover health and medical coverage costs for members of the Bahamian security forces until due premiums were paid. 

E-mails and calls to Colina Insurance Company’s spokesperson, who is Opposition senator, Maxine Seymour, were not responded to before press time last night. Mr Halkitis and Simon Wilson, the Ministry of Finance’s financial secretary, also did not respond to messages seeking comment.