By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Government was yesterday urged to provide full disclosure over almost $61m of "short-term advances" provided to five unnamed "government business enterprises" during the 2024-2025 third quarter.

Kwasi Thompson, the Opposition's finance spokesman, argued that the failure to name the entities who received the financing, the nature and terms of the funding, and what it was used for represented "a startling lack of transparency" after the transactions were unveiled in the Ministry of Finance's fiscal report for the 2024-2025 third quarter and nine months to end-March 2025.

"The Government provided short-term advances totaling $60.8m to five government business enterprises (GBEs)," was as much as the report disclosed. "In financing activities, the balance under the net acquisition of financial assets advanced to $83.2m as the Government made sinking fund contributions to assist with financing future debt obligations and additional loans were made to government business enterprises."

Asserting that taxpayers deserved more detail on how their dollars are being spent, Mr Thompson asserted: "Every day Bahamians are faced with more troubling revelations about this government’s approach to public finance - an approach marked by secrecy, evasion, and a startling lack of transparency.

"The recent release of the Government’s third quarter fiscal report for the 2024-2025 fiscal year only reinforces this alarming trend. Buried within that report is a revelation that the Government advanced some $60.8m in short-term loans to unnamed government business enterprises.

"No explanation has been offered. No public disclosure has been made as to which entities received this money or what these loans were for. And, once again, the people of The Bahamas are left in the dark about how their money is being spent," he added.

"There can be no legitimate reason for keeping these transactions secret. This government is obligated, constitutionally and morally, to report and explain how every dollar of taxpayer money is used. Any disbursement from the consolidated fund, whether a loan or direct expenditure, must be drawn from budget allocations approved by Parliament. That is not a suggestion; it is the law, enshrined in our Constitution and reinforced in the Public Finance Management Act."

Mr Thompson also questioned why the five entities would require additional loans or advances if they had already received the taxpayer subsidies allocated to them in the 2024-2025 Budget. "The people have a right to know. The Government has a duty to tell," he argued.

The Ministry of Finance report, meanwhile, noted that taxpayer subsidies had increased by more than $25m year-over-year to hit over 82 percent of the 2024-2025 Budget's full-year allocation with three-quarters of that period or nine months gone.

"Subsidies, which include transfers to government-owned and/or controlled enterprises that provide commercial goods and services to the public, rose by $25.1m (8 percent) to $338m, and accounted for 82.1 percent of the Budget," the report said.

"Subsidies to public non-financial corporations increased by $24.3m (8.2 percent) to $320.4m, reflecting higher assistance to Water and Sewerage ($10.2m) and the Public Hospital Authority ($22m). Transfers to private enterprises and other sectors rose by $0.9m (5.2 percent) to $17.6m."

The Ministry of Finance report also disclosed that "other payments" rose by more than $41m, or almost 21 percent year-over-year, to hit almost $240m for the nine months to end-March 2025. "Other payments were boosted by $41.2m (20.8 percent) to $239.5m (66.3 percent of the Budget)," it added.

"Current transfers not elsewhere classified broadened by $35.6m (22.4 percent) to $194.1m, largely owing to disbursements of planned allocations for scholarships and grants to the Beaches and Parks Authority, the Court Services Council, and the School of Agriculture and Marine Science."

Breaking down the Government's recurrent or fixed-cost spending, the Ministry of Finance added: "Compensation of employees grew by $20m (3.2 percent) to $649m (73 percent of the Budget), and was primarily explained by higher outlays for National Insurance contributions, salaries and allowances.

"Spending on the use of goods and services was boosted by $82.4m (19.1 percent) to $514.2m. Rental costs, comprising payments for office lease and rent, vehicle leases and living accommodation, increased by $5.4m (6.3 percent) to $92.2m. Utilities and telecommunications outlays advanced by $25.5m to $58m.

"Spending on services, including security services, consultancy services, operation of facilities and healthcare services, grew by $38.8m (19.4 percent) to $238.6m. Outlays for special financial transactions rose by $26.4m to $39.9m on account of payments made to NIB related to the administration of the prescription drug plan, as well as budgeted contingent liability pension payments to BTC."