Chamber: DPM 'dead wrong' over KPMG

Thu, Aug 21st 2014, 11:40 PM

The chairman of the Bahamas Chamber of Commerce and Employers Confederation (BCCEC) has declared that Deputy Prime Minister Philip Brave Davis is "dead wrong" for implying that the contracting of KPMG (Bahamas) as consultants in the Bahamas Electricity Corporation (BEC) reform process represents genuine private sector involvement in the decision-making process.
Robert Myers, chairman of the BCCEC, also accused the government and its consultants of defending a status quo that has led the country to the point of seeing its major power provider "collapse under its own debt and inefficiencies".
"If our leadership and consultants at every level continue to dance around the matter while protecting those that have led us to this place then the consumer, public and economy will continue to suffer.
"We are not the first country to have arrived at this place and if we wish to reduce power costs, improve the quality of power and the consistency with which it is provided, then we need to rid ourselves of what has gotten us to this point," said Myers.
He made the comments after Davis revealed to Guardian Business this week that the government is considering a "Nassau Airport Development company-style" public-private partnership model for the Bahamas Electricity Corporation (BEC), similar to the Airport Authority.
The entity, which Davis suggested is under consideration by the government, would
allow the government to retain ownership while possibly involving representatives from a variety of the companies currently bidding in the BEC request for proposal (RFP). The deputy prime minister insisted that the proposed authority was only one of "several options" presented to the government "by persons who participated in the process".
KPMG Head of Advisory for The Bahamas Simon Townend last week claimed that "no decision had been reached on this matter".
Davis has stated that KPMG's involvement in the process is evidence of the government involving the private sector in the decision-making process, as has been requested by the BCCEC.
However, Myers has taken issue with claims from Davis that KPMG's involvement could substitute for that of the private sector, which the BCCEC has argued would bring greater transparency and benefits for the public to the BEC contract decision.
He stated: "KPMG is a hired gun... KPMG do not represent the thoughts and feelings of the private sector."
The government issued the BEC RFP in August 2013, seeking two companies that would sign separate contracts to handle BEC's generation, transmission and distribution (T&D) functions.
Davis again defended the government's continued delays in reaching a decision on the future of BEC this week, arguing that the government would continue taking its time to ensure that it received "the best results for the Bahamian people".
Despite this, Myers was adamant that the government should reach a decision in the near future, noting that the government already had several bidders before it.
"Several qualified providers have put forth well-founded and credible solutions to the BEC mess... Unfortunately, politics have gotten in the way of service in our monopolistic utilities," stated Myers.
"Within a third party agreement for generation and T&D the government and the Bahamian people could easily have the right to participation, and it would likely behoove the selected contractor/provider to be able to issue local bonds to raise some of the capital required.... Making this happen immediately is not an option; it's a national priority.
"We don't need further deliberation and delay, we need transparency, accountability and the right decisions to be made now. We urge the Government to collaborate with the private sector and citizens of our nation and to work together to make positive changes that will put our country back on the track to success."

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