By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

An Exuma-wide boat mooring/anchorage deal branded as “insane” by Bahamian marina chiefs has been halted by local government authorities due to the purported absence of key approvals.

Bahamas Moorings Company, which according to documents obtained by Tribune Business has secured a 21-year seabed lease for 49 separate anchorage/moorage sites spread throughout the Exuma Cays, was on Friday ordered to “cease and desist” what the island’s administrator described as an “unauthorised mooring installation”.

The move came after the lease, seemingly signed by the Prime Minister in his capacity as minister responsible for Crown Land on January 25, 2025, sparked consternation, bewilderment and anger among boaters/yachters, impacted Family Island communities and others who all said they were blindsided by revelations of this deal.

Besides raising questions over the Davis administration’s apparent lack of transparency and failure to consult Out Island communities, other observers also challenged why a deal of this nature was not put out to competitive bidding via a request for proposal (RFP). And they queried why the Government had not adopted a different public-private partnership (PPP) model by retaining the seabed and hiring a private operator.

Instead, several sources suggested the lease deal represents a privatisation of all safe, feasible anchorage and mooring sites throughout the Exuma cays outside of those in the Exuma Lands and Sea Park. In effect, they said the Government has given a private company a monopoly over these sites where it will be “mandatory” for boats and yachts to pay the fees levied by Bahamas Moorings Company.

Peter Maury, the Association of Bahamas Marinas (ABM) president, argued to Tribune Business that the arrangement “doesn’t even make sense” while agreeing that it creates a monopoly. And Eric Carey, the ex-Bahamas National Trust (BNT) executive director, warned that the deal “must not become a licence to print money” that raises costs to such an extent that it drives high-spending boaters from The Bahamas.

This newspaper can reveal that the many of those involved in the Bahamas Moorings Company deal have close links to the Office of the Prime Minister and senior persons who work in it. Of the two principals named in the lease, Tribune Business research reveals that Philip A. Kemp II is a former City Markets chief financial officer, having been part of both the ill-fated Trans-Island Traders purchase and its predecessor, BK Foods.

And Raymond Christian Knowles, better known by his middle name, is a boat captain with the ‘Pieces of 8’ tour boat and charter operator, where he is described as “a 30-year veteran on the open waters” who has worked as a commercial fisherman. 

The signing of the lease was witnessed on Bahamas Moorings Company’s behalf by Sandra Marie Hylton Kemp. This newspaper’s research shows Mrs Kemp is both Philip A. Kemp II’s wife and deputy communications director in the Prime Minister’s Office. The lease states she is “of Bahamas Moorings”, and that she “subscribed my name to complete the due execution of the lease” for the company.

Several observers, speaking on condition of anonymity, have questioned her involvement given that she is acting as witness on behalf of a private company to a deal with her employer, the Government of The Bahamas. They pointed out that ‘general orders’, which govern the civil service, require officials to disclose any private dealings that may conflict with their public duties and, potentially, divest them.

And Tribune Business can also reveal that the address for serving Bahamas Moorings Company, No.3 Bayside Executive Park in western New Providence, is the same as that for two entities playing a key role in the Government’s energy reforms - Bahamas Grid Company, which now controls New Providence’s energy grid, and Island Power Producers, the company that will supply energy to cruise ships docked in Nassau.

The address is the home of Levant Advisors, incorrectly spelt as Lavent in the lease document, which appears to be a newly-formed boutique financial services firm. Its website lists Levant’s principals as Anthony Ferguson, the company’s founder who is also CFAL chief, and Antoine Bastian, the Genesis Fund Services head.

Both men are heavily involved with the Office of the Prime Minister as they are leading the Government’s efforts to monetise The Bahamas’ seagrass meadows, mangroves and other so-called ‘carbon sinks’ via the creation of ‘blue carbon credits’ - an initiative much-touted by the Government.

Tribune Business was also informed that another person involved with Bahamas Moorings Company is Captain Joseph Ierna, a former administrator of the Exuma Cays Land and Sea Park on behalf of the BNT. He was tight-lipped when contacted by this newspaper, although he confirmed that his number was the one listed on Bahamas Moorings’ fee sheet and did not deny his involvement with the company.

Likely aware of the “cease and desist” order halting the company’s buoy and mooring roll-out, he said: “What you should do is refer to the Exuma administrator or the Palm Beach Boat Show when an announcement will be made. Please refer to the Exuma administrator. Bye, bye.” Mr Ierna then terminated the call.

Christopher Adderley, the administrator for the Exuma cays, in his Friday letter to Mr Kemp wrote: “It has come to our attention that mooring buoys have been installed in the Exuma cays without the necessary approvals from the relevant authorities. 

“As such, you are hereby ordered to cease and desist all mooring installations and related activities immediately until official approval has been obtained from the Department of Environmental Planning and Protection (DEPP), the Exuma Cays District Council and any other relevant agencies. Failure to comply may result in further action being taken in accordance with the relevant laws and regulations.”

The February 21, 2025, letter was copied to Berne Wright, Port Department controller; Dr Rhianna Neely-Murphy, DEPP director; and Donald Rolle, acting director of the Department of Local Government. Tribune Business had been informed that, prior to issuance of this letter, Bahamas Moorings Company has been installing buoys, moorings and anchorage facilities on its leased sites “like crazy”.

The deal with the Davis administration, which covers all anchorage and mooring sites between Allen’s and Musha Cays, including Norman’s Cay, Pig Beach, Black Point, Little and Big Farmer’s Cay, Children’s Bay Cay and Lee Stocking Island, gives Bahamas Moorings Company “the right to install and operate mooring services in the Exumas or elsewhere in The Bahamas”. This signals the scope may go beyond Exuma.

The company is said to “currently operate a mooring services for marine vessels” business and be licensed to operate in The Bahamas. It has committed to installing 250 moorings at 49 locations in the Exumas via an investment worth $2.5m.

In return for leasing a total 4.615 acres from the Government for 21 years, with effect from February 1, 2025, it has agreed to pay an annual rent equal to 3 percent of gross revenue collected from boaters plus 10 percent VAT. Bahamas Moorings Company, which says its fees are VAT inclusive, has also issued social media messages saying boaters can use its moorings free of charge until its official launch.

This, as Mr Ierna confirmed, will take place at the Palm Beach International Boat show from March 19-23, 2025. For mooring at its round buoys, Bahamas Moorings Company is proposing to charge fees ranging from $25 to $135 per day depending on vessel length, plus fees of between $170 and $250 per day for “super yachts” mooring at its ‘taper buoys again depending on length.

Anchorage fees range from 55 cents per foot per day to $1.10 per foot per day, again depending on boat length. Bahamas Moorings Company is arguing that its mooring/anchorage plan will bring order to the present chaos on Bahamian waters by giving boats and yachts designated points where they can tie up, thus preventing damage to the seabed, coral reefs and other ecosystems from anchors dragging.

“Moorings are an effective management tool for mitigating anchor damage to sensitive habitats, greatly reducing damage to coral and seagrass ecosystems,” it said, “allowing more efficient use of anchoring space while offering safety, comfort and well-being to the anchored community.

“Anchorage and mooring fees are mandatory for all vessels operating within a Bahamas Moorings anchorage and mooring fields.... All fees are utilised for the maintenance and day-to-day operations of the Bahamas Moorings anchorage and mooring fields.” Others, though, were not so convinced.

Mr Maury, the ABM president, told Tribune Business: “We’re all talking about it. I think it’s insane to be honest with you, but that’s my personal opinion. It doesn’t even make sense. It’s a monopoly. They’ve totally wiped out any opportunity for any Bahamian. It’s out of the Office of The Prime MInister. It’s just ridiculous.

“They have not consulted us at all. They did it all behind secrecy and without our knowledge. It just makes life harder for everybody. They’re mandating that the boats have to go to the moorings. They did it all behind the scenes. A lot of the yachts have heard about it already and it’s not been well received in the industry; from marinas to yachters and boaters. Everybody has a lot of questions.”

Mr Maury said the ABM had previously suggested that marinas take responsibility for anchorage and moorings on their respective islands, but it appeared as if the Government and Bahamas Moorings had taken this idea “for themselves”.

He added: “We’ve already heard from not just the smaller boats that visit the marinas, but the larger vessels that like to anchor out. They’ll be mandated to anchor at these moorings. “ Mr Carey, meanwhile, warned that the Bahamas Moorings plans “cannot be a licence to print money”, though in principle he has “no issue” with a private-public partnership (PPP) involving moorings as they “do have a benefit to the environment”.

The ex-BNT executive director, though, pointed out that most mooring facilities were operated by states, counties or city authorities, and said: “A very careful assessment needs to be done of the carrying capacity of what boaters are willing to pay before boaters abandon The Bahamas because of what they can’t afford. It can’t be a licence to print money and boaters say we’ll abandon The Bahamas.

“I’ve spoken to people at Black Point, Staniel Cay who have restaurants. They say that if those boats abandon us because they’re forced out, they’ll be severely impacted. The Palm Beach Boat Show is very significant to boating in The Bahamas. They’d better not introduce something that becomes a side show to The Bahamas. I don’t think Bahamian operators want this to be a distraction to getting boats here.”

Mr Carey, who said he only became aware of the Bahamas Moorings proposal after leaving the BNT, said: “In principle I have no issue with private enterprise enjoying a seabed lease if they go through the proper protocols, if there is transparency, environmental protocols followed and go through public consultation, especially in this case when it impacts local communities...

“This is every safe anchorage in the Exumas which has been ceded, leased and given up by the Government of The Bahamas to a private entity.” Mr Carey suggested that some of these anchorages should be given to local communities to manage, and added: “There are a lot of questions that people are asking that the Government will have to provide answers to before they are comfortable.’

Boaters have already warned online about a dozen moorings that have been installed in deep water on the approach to Staniel Cay and Samson Cay, one writing: “We came in at 1am a few days ago and passed closed to one, never saw it. Yesterday, at Big Majors, we saw a small work boat with a diver and a small crane working all day in the anchorage close to shore. Didn’t see any mooring.”