In the first Bahamas Electricity Corporation (BEC) and Bahamas Power and Light (BPL) combined annual reports made public in five years, the power company's dire financial position is outlined.

The 2016-2018 Annual Report and the 2019-2020 Annual Report were tabled in the House of Assembly yesterday.

KPMG, in its independent auditors' report, points to the company's continued negative cash flows, operational losses and impending maturities of all its obligations over the five-year period, as the basis that a material uncertainty exists that may cast significant doubt on the corporation's ability to continue as a going concern.

As at June 30, 2020, BPL had $52.5 million cash, $49.9 million accounts receivable from the private sector and $71.6 million from government corporations, departments and ministries.

Total assets, including recoverable fuel charge, property, plant and equipment, amounted to $888.2 million, with liabilities equaling the same amount.

"The company's objectives when managing capital are to safeguard its ability to continue as a going concern and maintain financing ratios in line with debt covenants. As of June 30, 2020 the company secured a $75 million bank loan with principal balance amounting to $45 million (2019: $60 million). The company should maintain on a quarterly basis for its loan covenants a tangible net worth of $450 million and maximum total quarterly funded debt to tangible net worth ratio of 1.0:1.0, and maintain a minimum debt service coverage ratio of 1.25. The loan was classified as a current liability as of June 30, 2020," the auditors said.

"The company is exposed to a variety of risks including market risk (including foreign exchange risk and interest rate risk), credit risk, liquidity risk and operational risk arising in the normal course of the company's business activities.

The company does not have any written risk management policies, however there are risk management guidelines. It is management's policy to monitor the financial risks measures as considered necessary from time to time to minimize such financial risks."

Last year, the government refinanced the $246 million bridge loan facility it assumed responsibility for in 2020 to cover BPL's legacy debt.

BPL originally entered into a facility agreement for $211 million between lenders Bank of The Bahamas, Credit Suisse, FirstCaribbean International Bank, Royal Bank, Scotiabank and the National Insurance Board on October 2, 2009, amending it on December 14, 2014 and again on March 8, 2018.

A separate facility agreement was entered into on August 24, 2012 with FirstCaribbean International Bank for $35 million and reinstated in December 2014 and March 2018.

Both facilities were expected to reach their extended maturity dates on June 11, 2020, when they were due payable in full.

Prime Minister Philip Davis said in the House of Assembly yesterday that a private company engaged by the Minnis administration to collect immigration fees and taxes on a family island had kept millions of dollars in public monies it collected.

"For reasons which remain profoundly unclear, the previous administration appointed a private company — again, the name is here; I ain't call the name. I'll tell you privately if you want — as the sole collector of immigration fees," said Davis.

While he did not name the company, his speech was sent out to the media with the company's name in it.

Davis said the

engagement of the company "was contrary to the practice since the department was created, whereby fees were paid directly to the government".

The prime minister continued, "Under this exclusive contract, every person then had to go to the various offices of this company to pay for work permits and all other immigration fees in cash.

"What is deeply troubling, Madam Speaker, is the fact that this company was not licensed to collect revenue, or to engage in the provision of financial services. This how loose and slack this was.

"We cannot imagine why the administration chose to enter an agreement with a company which was not licensed to trade in the terms of the contract."

The prime minister continued, "To make matters much, much worse, the company kept the money.

"From the start of this contract in 2020, to when we stopped the arrangement in 2022, the company is estimated to have collected some $6.4 million.

"When the government approached them asking them to forward the monies collected, we were told by the CEO that they were withholding government revenue in order to, and I quote, 'expand their business'.

"I'm sure I don't need to remind honorable members that this is a wholly improper use of government funds."

The prime minister charged, "It doesn't end there."

He said the company was also collecting taxes on behalf of the government on a Family Island, and yet again, keeping the money.

"And this was the same company that provided $12 million in loans during the pandemic, as part of the government's COVID-19 loans for small businesses scheme, and the company cannot, or will not, provide a single record of any of the loans," said Davis.

The prime minister said the matter remains under investigation.

"But I can report that after discussions with the Royal Bahamas Police Force, the company has agreed to forward the revenue collected to the government," he said, adding that as of yesterday, some money had been received.

The prime minister did not table any documents in support of his statements in Parliament, something Opposition Leader Michael Pintard took exception to.

"I've said over and over we believe the government ought not drip feed the public. They ought to present a fulsome report. We welcome a fulsome report. The prime minister has not mentioned a single company's name...," said Pintard.

He called what the prime minister was doing "a broad statement of salacious details".

"Put the details on the House of Assembly table, so all of us can examine what the facts are," said Pintard.

Davis said he was providing the House with information regarding "the slack use and downright inappropriate handling of the public finances".

"Let me just say this: you were not the leader at the time. You will be excused from this. You weren't the prime minister at the time, but you were around the Cabinet table," the prime minister said.

Davis said, "The most generous interpretation of this state of affairs is that good governance and fiscal accountability were seriously lacking under the previous administration.

"We have been working assiduously to ensure that much higher standards, and better controls, are in place."

The government has increased the allocation to social assistance benefits this fiscal year by $4.1 million.

The revised figure is part of the government's revised figures in its 2022/2023 Supplementary Budget of Draft Estimates of Revenue and Expenditure.

In total, social assistance benefits increased from $29.9 million to $34 million.

Under the total, foster care remained unchanged at $655,150; uniform assistance was cut by $375,000 and now sits at $427,000; and assistance to children with special needs remains at $330,000.

The food assistance program saw a $251,778 increase to $21.8 million; subsistence and support of persons contract increased by $2.1 million to $5.4 million; and the total for circumstance and relief emergency desk assistance increased by $2 million to $5.3 million.

During the mid-year presentation last Wednesday, Prime Minister Philip Davis noted that global inflation caused an unwelcomed cost of living increase for Bahamians.

He noted that social assistance spending "still represents a substantial increase over that of pre-pandemic years, in recognition of the enduring impact of the lockdowns on household income".

Minister of Social Services Obie Wilchcombe said last week that the number of people on food assistance has grown to about 12,000.

"...The projected increases for food assistance goes up 10 percent next week for now, this pay period now, 10 percent across the board for food assistance," he said.

"This is very good. People who used to get $84 for instance will now get like $100, so we've been able to slowly move it up and we're very satisfied that since last year, we've been able to now effectively make it happen."

Prime Minister Philip Davis indicated yesterday that the government has paid off the majority of the $1 billion in liabilities he claimed a year ago were left unpaid by the previous administration.

Shortly after taking office, Davis revealed that it had engaged accounting firm Deloitte to check government accounts, claiming that the Minnis administration did not account for $1 billion in liabilities in its pre-election report and fiscal update report. However, at the time he did not provide specifics.

During his mid-year budget communication in the House of Assembly yesterday, Davis said up to the halfway point of this fiscal year, the government's unpaid bills totaled a mere $90.7 million.

"Members will recall that in the mid-year review of the previous year, I revealed to the public that my administration inherited almost $1.48 billion in unpaid bills, claims and unfunded obligations. Not only did we have debt levels of near 100 percent of GDP, but we also had a drawer filled with bills of almost $1 billion, waiting to be paid," he said.

"Again, I am happy to report that our plans and strategies are working, and that the era of fiscal mismanagement has come to an end. I am pleased to report that at the halfway point in the fiscal year, the government's unpaid bills total a mere $90.7 million or 2.7 percent of budgeted expenditure, compared to the 31.3 percent reported in the previous year."

In March 2022, Davis told Parliament the $1 billion in arrears the Minnis administration had left behind was due to debt and interest payments related to the government taking over the legacy debt of Bahamas Power and Light; unpaid bills and other obligations for state-owned enterprises; outstanding payments for insurance services in the public service; outstanding legal claims; VAT refunds; and outstanding payments for COVID-19 patient support at Doctors Hospital.

Yesterday in Parliament, Davis gave a breakdown of the remaining obligations of government.

"These bills include $44.3 million in unpaid bills and other obligations for state-owned enterprises, of which $30.7 million in unpaid bills were to the Water and Sewerage Corporation for water purchased; $13.8 million in unpaid bills to the Ministry of Tourism, Investments, and Aviation, mainly for consultancy services, quality assurance, and global communications; and $9.9 million in unpaid bills for catastrophic healthcare services and the upkeep of community clinics via the Ministry of Health and Wellness," he said.

He continued, "Eight million dollars in unpaid bills to Department of Transformation and Digitization in respect of various unfunded contractual obligations; $5.9 million to the Ministry of National Security for various security enhancement projects; and $5.5 million to Bahamas Agricultural and Industrial Corporation, mainly for insurance services and utility services."

According to the mid-year budget presented yesterday, total revenue for the first six months of the year were estimated at $1.2 billion, which represents a $111.5 million increase over the same period last fiscal year Total expenditure is estimated to be $1.5 billion, which represents an increase of $119.3 million over the same period compared to the previous year.