The tens of millions of dollars will be spent by Cable Bahamas, NewCo and the Bahamian government building out Cable Bahamas cell infrastructure, This is a terrible mis-allocation of the Bahamian peoples capital caused by a misunderstanding of the rapid rate of change in technology.
In 3 years, once the cell phone infrastructure is built out cell phones will certainly be obsolete. See link to article:
Cable is a private company so if they want to invest in obsolete technology then its their business and the business of its shareholders and directors.
Unfortunately, like Cuba, the Bahamas government has taken the position that it must own 51% of all last century utility/infrastructure companies such as water, sewerage, electricity, telephone, cell, carbon fuel, aviation and waste disposal. If we add up the losses of all of these public companies over the decades it would probably be well over a billion dollars. The damage to our environment and the health of our citizens is incalculable.
Why is it going to be different with the government's ownership of 51% of Cable Bahamas' cell phone venture.
"Power tends to corrupt, and absolute power corrupts absolutely." Sir John Dalberg-Action.
The recent consolidation of power, control and taxation by the current Bahamian government is truly shocking. Eg: 51% ownership of BTC, proposed 51% ownership of the Cable Cellular service, 51% control of the monopolistic shipping port in Nassau, perennial loss making BahamasAir competing against private aircraft services, legalization of gambling against the wishes of the Bahamian people, pervasive implementation of VAT on almost every business transaction and the proposed implementation of NHI to the detriment of private health insurance providers.
Perhaps the most troubling development is the edict that new government employees must bank at the Bank of the Bahamas. A bank which is in breach of Central Bank reserve requirements and which NI has invested over $100m with no forensic audit of what went wrong. We should not wonder why the deficit continues to grow above dangerously high levels.
We should not therefore be surprised that the administration sees nothing troubling with the disclosure private information in Parliament.
Read the signs and prepare accordingly. Don't be surprised by what comes next.
Excellent points GrassRoot and DreamerX. Its refreshing to see commentary relating to accounting principals, standards and the tardiness of BEC's audit report.
It is standard practice for companies to issue their financial statements 4 months after year end. By this standard the BEC accounts for 2014 should have been published and the audit for 2015 should be well on the way.
Late financial statement issuance points to poor corporate governance and it is bewildering that an "investment grade" country (like the Bahamas) could be so late in the publication of a government corporations financial statements and still retain its investment grade rating from the international rating agencies. I suspect by the time the Bahamas is actually downgraded our financial position will be much worse than anticipated.
Be that as it may, it still begs the question of what is the current state of BEC's finances. The reason this is important is that you have a number of other zombie government corporations (BoB, Bahamasair, Water and Sewerage and possibly NI). I define a zombie corporation as one where liabilities exceed assets.
At a certain point, probably long after the PLP has left power we will reach an inflection point where the financing of governments negative cash flow will be so costly that a devaluation will become necessary.
I agree with Tal. The ability to derive millions of dollars in political donations with no paperwork, no reporting, no financial statements, no accountability is too much for any government to enact legislation to stop.
While the political parties take in millions of dollars, poor Bahamians and Bahamian businesses need to pay VAT, real property tax, business license fees, customs, stamp tax, national insurance and shortly national health insurance. Also businesses need to prepare audited financial statements and submit them to to government just to operate. Political parties pay non of these taxes on donations received.
We as Bahamians are fools to put up it.
Meanwhile the Minister of Education is so busy talking politics he has no time to address the D average of most government school students.
Worst of all we will go to the polls in 2017 and put them (FNM or PLP or DNA) back in power.
While Pintard has resigned just wait and see the new "has been" politician with a lot of "baggage" that Minnis puts in his place. Nothing will change, just the actors.
observer2 says...
...how boring, any word from Toggie and Bobo?
On Panama Papers ‘have undermined country’
Posted 11 April 2016, 11:48 p.m. Suggest removal
observer2 says...
....how boring, anything new from Toggie and Bobo?
On Moody’s: Bahamas in ‘low growth trap’
Posted 11 April 2016, 11:44 p.m. Suggest removal
observer2 says...
The tens of millions of dollars will be spent by Cable Bahamas, NewCo and the Bahamian government building out Cable Bahamas cell infrastructure, This is a terrible mis-allocation of the Bahamian peoples capital caused by a misunderstanding of the rapid rate of change in technology.
In 3 years, once the cell phone infrastructure is built out cell phones will certainly be obsolete. See link to article:
http://fortune.com/2016/01/08/facebook-…
Cable is a private company so if they want to invest in obsolete technology then its their business and the business of its shareholders and directors.
Unfortunately, like Cuba, the Bahamas government has taken the position that it must own 51% of all last century utility/infrastructure companies such as water, sewerage, electricity, telephone, cell, carbon fuel, aviation and waste disposal. If we add up the losses of all of these public companies over the decades it would probably be well over a billion dollars. The damage to our environment and the health of our citizens is incalculable.
Why is it going to be different with the government's ownership of 51% of Cable Bahamas' cell phone venture.
On Mobile rival can ‘roam’ BTC for first three years
Posted 4 April 2016, 11:45 a.m. Suggest removal
observer2 says...
This is very positive news. Gilead is a world leader in biotech.
On Ground is broken on $120 million production facility on PharmaChem site
Posted 1 April 2016, 12:11 p.m. Suggest removal
observer2 says...
"Power tends to corrupt, and absolute power corrupts absolutely." Sir John Dalberg-Action.
The recent consolidation of power, control and taxation by the current Bahamian government is truly shocking. Eg: 51% ownership of BTC, proposed 51% ownership of the Cable Cellular service, 51% control of the monopolistic shipping port in Nassau, perennial loss making BahamasAir competing against private aircraft services, legalization of gambling against the wishes of the Bahamian people, pervasive implementation of VAT on almost every business transaction and the proposed implementation of NHI to the detriment of private health insurance providers.
Perhaps the most troubling development is the edict that new government employees must bank at the Bank of the Bahamas. A bank which is in breach of Central Bank reserve requirements and which NI has invested over $100m with no forensic audit of what went wrong. We should not wonder why the deficit continues to grow above dangerously high levels.
We should not therefore be surprised that the administration sees nothing troubling with the disclosure private information in Parliament.
Read the signs and prepare accordingly. Don't be surprised by what comes next.
On Alarm at MP’s use of emails
Posted 29 March 2016, 3:21 p.m. Suggest removal
observer2 says...
Excellent points GrassRoot and DreamerX. Its refreshing to see commentary relating to accounting principals, standards and the tardiness of BEC's audit report.
It is standard practice for companies to issue their financial statements 4 months after year end. By this standard the BEC accounts for 2014 should have been published and the audit for 2015 should be well on the way.
Late financial statement issuance points to poor corporate governance and it is bewildering that an "investment grade" country (like the Bahamas) could be so late in the publication of a government corporations financial statements and still retain its investment grade rating from the international rating agencies. I suspect by the time the Bahamas is actually downgraded our financial position will be much worse than anticipated.
Be that as it may, it still begs the question of what is the current state of BEC's finances. The reason this is important is that you have a number of other zombie government corporations (BoB, Bahamasair, Water and Sewerage and possibly NI). I define a zombie corporation as one where liabilities exceed assets.
At a certain point, probably long after the PLP has left power we will reach an inflection point where the financing of governments negative cash flow will be so costly that a devaluation will become necessary.
On BEC: 2013 loss increased to massive $58m
Posted 23 March 2016, 12:52 p.m. Suggest removal
observer2 says...
I agree with Tal. The ability to derive millions of dollars in political donations with no paperwork, no reporting, no financial statements, no accountability is too much for any government to enact legislation to stop.
While the political parties take in millions of dollars, poor Bahamians and Bahamian businesses need to pay VAT, real property tax, business license fees, customs, stamp tax, national insurance and shortly national health insurance. Also businesses need to prepare audited financial statements and submit them to to government just to operate. Political parties pay non of these taxes on donations received.
We as Bahamians are fools to put up it.
Meanwhile the Minister of Education is so busy talking politics he has no time to address the D average of most government school students.
Worst of all we will go to the polls in 2017 and put them (FNM or PLP or DNA) back in power.
While Pintard has resigned just wait and see the new "has been" politician with a lot of "baggage" that Minnis puts in his place. Nothing will change, just the actors.
On THE BIG QUESTION: Campaign finance - what would you do?
Posted 22 March 2016, 12:32 p.m. Suggest removal
observer2 says...
...better late than never.
On PM ‘20-30 years’ too late on legal opening demand
Posted 18 March 2016, 2:57 p.m. Suggest removal
observer2 says...
Another Lyford Cay foreigner behaving badly.
On Creditors seek $1.1m Dingman default verdict
Posted 18 March 2016, 2:53 p.m. Suggest removal
observer2 says...
...if only he could fight this hard when dealing with the D average of our school system.
On ‘Activists seek to topple govt’
Posted 18 March 2016, 2:48 p.m. Suggest removal