$5.5 million spent on Bahamas Jubilee Games, $1 million more than government allocation

NASSAU, BAHAMAS — The Auditor General's Report examining the accounts of The Bahamas Jubilee Games has revealed that the government spent $5.5 million funding the games, just over $1 million more than the government's initially allocated amount.

The Auditor General also raised concerns regarding unauthorized salary increases for employees, among other irregularities.

The report ultimately criticized the accounting to the Secretariat, noting that accounting records were not properly maintained as there was missing documentation, financial records lacked certain financial transactions, and profit and loss statements were not regularly generated.

The report, which was tabled in Parliament on Wednesday, noted that the operating budget of the Bahamas Games Secretariat was $5.5 million. The government initially allocated $4.5 million for the games, with just over $1 million being requested by the Secretariat after the event

The Auditor General's report noted a lack of transparency concerning expenses related to preparing the games and a lack of accountability regarding the discretionary allocation of honorariums, overtime payments, and salary increments. The report also noted that procurement procedures lacked formalized procedures and transparency.

According to the report, the Secretariat received $59,000 in revenue from ticket sales, booklets, and souvenirs during the games; however, the OAG was unable to determine the specific breakdown.

The Auditor General noted that a government-appointed was supposed to oversee the Secretariat's responsibilities but was never appointed.

The Auditor General also found that the Secretariat's petty cash fund was improperly utilized for payment receipts concerning the acquisition of two vehicles. The sum of those transactions amounted to $4,000. The petty cash management document specified that no individual claims should surpass $500; however, several expenses exceeded that limit. The Auditor General recommended that car loan payments via the petty cash account be discontinued.

The report also raised concerns regarding some employee contracts, which stipulated that they were to be paid certain sums monthly but instead were paid monthly and instead were paid weekly. It was also noted that while employee contracts did not include vacation entitlements, the OAG observed that various employees availed themselves of vacation time, although there were no supporting documents substantiating their eligibility for such leave.

The report also noted that the Secretariat failed to make a $4,108 payment to the National Insurance Board, exposing itself to a fine for non-compliance.

According to the report, the Secretariat purchased two vehicles for $15,000. However, "There was no official documentation authorizing the purchase, and it was observed that two employees were making monthly contributions toward eventual ownership, although the exact amount for monthly payments was not specified in records."

The Commonwealth of The Bahamas successfully closed a $500 million 10-year international commercial loan benefitting from a first-loss Policy-Based Guarantee provided by the Inter-American Development Bank (“the IDB”, S&P [AAA/Stable]) and arranged by Banco Santander, S.A. (New York Branch) as Global Coordinator and Mandated Lead Arranger (“Santander”, S&P [A+/Stable]).

The landmark transaction is the country’s largest credit-enhanced financing on the international loan market to date. This transaction, being the first of its kind for IDB, demonstrates The Bahamas’ strong commitment to the diversification of financing sources towards semi-concessional financing and blended finance solutions collaborating with the private sector. Additionally, the transaction is supportive of The Bahamas’ external funding pipeline, representing over 50% of external borrowing requirements for Fiscal Year 2023-24, and will fund eligible budgetary expenses, such as infrastructure, education, and social welfare projects. The execution of transactions with innovative credit enhancement structures is expected to provide a solid anchor to The Bahamas’ medium-term external funding plan.

The transaction’s credit-enhanced structure allowed The Bahamas to secure favorable financing terms, considerably more advantageous than those available on the international bond market. The IDB’s first-loss Policy-Based Guarantee will initially cover up to 40% of the scheduled principal and related interest, having allowed the IDB to develop an innovative structure with a multiplicator effect in which through a partial risk assumption, the private sector, led by Santander, is able to lend a much larger nominal amount. As a result, The Bahamas secured significant savings compared to market cost of funding at the time of transaction closing. This structure will advance the country’s objective of reducing debt service costs, extending maturities and tapping new liquidity pools as outlined by the Medium-Term Debt Strategy and Annual Borrowing Plan for Fiscal Year 2023/24.

Banco Santander S.A., and BNP Paribas, acting as Mandated Lead Arrangers and Original Lenders on the transaction, were advised by Clifford Chance US LLP. The Ministry of Finance was advised by Rothschild & Co as financial advisor and Hogan Lovells US LLP as legal advisor.

The Bahamas intends to capitalize on the success of this credit-enhanced financing and the approved second tranche of the IDB guarantee for up to $200 million to deploy its blended finance agenda through a second transaction over the course of Fiscal Year 2023/24.

The Commonwealth of The Bahamas successfully closed a $500 million 10-year international commercial loan benefitting from a first-loss Policy-Based Guarantee provided by the Inter-American Development Bank (“the IDB”, S&P [AAA/Stable]) and arranged by Banco Santander, S.A. (New York Branch) as Global Coordinator and Mandated Lead Arranger (“Santander”, S&P [A+/Stable]). The landmark transaction is the country’s largest credit-enhanced financing on the international loan market to date. This transaction, being the first of its kind for IDB, demonstrates The Bahamas’ strong commitment to the diversification of financing sources towards semi-concessional financing and blended finance solutions collaborating with the private sector. Additionally, the transaction is supportive of The Bahamas’ external funding pipeline, representing over 50% of external borrowing requirements for Fiscal Year 2023-24, and will fund eligible budgetary expenses, such as infrastructure, education, and social welfare projects. The execution of transactions with innovative credit enhancement structures is expected to provide a solid anchor to The Bahamas’ medium-term external funding plan. The transaction’s credit-enhanced structure allowed The Bahamas to secure favorable financing terms, considerably more advantageous than those available on the international bond market. The IDB’s first-loss Policy-Based Guarantee will initially cover up to 40% of the scheduled principal and related interest, having allowed the IDB to develop an innovative structure with a multiplicator effect in which through a partial risk assumption, the private sector, led by Santander, is able to lend a much larger nominal amount. As a result, The Bahamas secured significant savings compared to market cost of funding at the time of transaction closing. This structure will advance the country’s objective of reducing debt service costs, extending maturities and tapping new liquidity pools as outlined by the Medium-Term Debt Strategy and Annual Borrowing Plan for Fiscal Year 2023/24. Banco Santander S.A., and BNP Paribas, acting as Mandated Lead Arrangers and Original Lenders on the transaction, were advised by Clifford Chance US LLP. The Ministry of Finance was advised by Rothschild & Co as financial advisor and Hogan Lovells US LLP as legal advisor. The Bahamas intends to capitalize on the success of this credit-enhanced financing and the approved second tranche of the IDB guarantee for up to $200 million to deploy its blended finance agenda through a second transaction over the course of Fiscal Year 2023/24.

The Ministry of Finance's 'Reconstruction with Resilience in the Energy Sector in the Bahamas' Project -- and ANO Technologies Ltd. -- signed a contract for the implementation of a Rooftop Solar Photovoltaic Generation system at the University of the Bahamas.  The contract was signed November 17, 2023 at the Ministry of Finance.  

ANO Technologies Ltd. will be responsible for the design, procurement, construction, installation, connectivity, commissioning, operation and maintenance of the grid-tied Solar Photovoltaic Systems at the University of the Bahamas, with the objective to reduce energy costs at the institution.   

Pictured addressing the press conference is Financial Secretary of the Ministry of Finance, Simon Wilson.  Also present: Permanent Secretary, Ministry of Finance, Janice Miller; Acting-President, University of The Bahamas, Ms. Janyne Hodder;  Managing Director, ANO Technologies Ltd., Delano Arthur;  Business Development Manager, ANO Technologies, Zakiya Brown; Programme Coordinator Marco Rolle; Project Manager, Sharon Stuart; Procurement Specialist Don Gray; and Vice-President Operations, UB, Ronnie Stevenson.  

The Ministry of Finance's 'Reconstruction with Resilience in the Energy Sector in the Bahamas' Project -- and ANO Technologies Ltd. -- signed a contract for the implementation of a Rooftop Solar Photovoltaic Generation system at the University of the Bahamas.  The contract was signed November 17, 2023 at the Ministry of Finance.   ANO Technologies Ltd. will be responsible for the design, procurement, construction, installation, connectivity, commissioning, operation and maintenance of the grid-tied Solar Photovoltaic Systems at the University of the Bahamas, with the objective to reduce energy costs at the institution.    Pictured addressing the press conference is Financial Secretary of the Ministry of Finance, Simon Wilson.  Also present: Permanent Secretary, Ministry of Finance, Janice Miller; Acting-President, University of The Bahamas, Ms. Janyne Hodder;  Managing Director, ANO Technologies Ltd., Delano Arthur;  Business Development Manager, ANO Technologies, Zakiya Brown; Programme Coordinator Marco Rolle; Project Manager, Sharon Stuart; Procurement Specialist Don Gray; and Vice-President Operations, UB, Ronnie Stevenson.  

A Memorandum of Understanding was signed on November 7, 2023 between the Bahamas Agricultural and Industrial Corporation (BAIC) and the Small Business Development Centre (SBDC) to assist entrepreneurs with the necessary capital for development of their small and medium-sized businesses (SME's).  

Executive Chairman of BAIC, Leroy Major said that this MOU piggybacks off a previous agreement signed in July 2019. He said at that time, several hundred applications for grants and assistance were being processed. 

"Today, I am elated to see the collaboration between BAIC and SBDC come full circle as we sign another Memorandum of Understanding to take our relationship one step further towards ensuring that we can now stimulate entrepreneurs with much-needed financial assistance almost seamlessly."

He said that while BAIC serves as the business arm of the Ministry of Agriculture and Marine Resources, to encourage the development of small and medium-sized enterprises in the country, SBDC is the government agency responsible for assessing loan applications for SME's seeking government guarantees. 

"We have provided entrepreneurs with land for farming and touristic development and assisted with business plans for their projects but many of them continue to be challenged because of a lack of funding," said Mr. Major. "SBDC will now step in and play a critical role in providing prospective small and medium-sized business loan applicants with critical seed money to assist in their advancement and overall development of entrepreneurship in the country."

Executive Director of SBDC, Samantha Rolle, was also in attendance and delivered brief remarks. She said she was 'excited' and optimistic about the new partnership and was looking forward to continuing to facilitate SME's in reaching their full potential.

A Memorandum of Understanding was signed on November 7, 2023 between the Bahamas Agricultural and Industrial Corporation (BAIC) and the Small Business Development Centre (SBDC) to assist entrepreneurs with the necessary capital for development of their small and medium-sized businesses (SME's).   Executive Chairman of BAIC, Leroy Major said that this MOU piggybacks off a previous agreement signed in July 2019. He said at that time, several hundred applications for grants and assistance were being processed.  "Today, I am elated to see the collaboration between BAIC and SBDC come full circle as we sign another Memorandum of Understanding to take our relationship one step further towards ensuring that we can now stimulate entrepreneurs with much-needed financial assistance almost seamlessly." He said that while BAIC serves as the business arm of the Ministry of Agriculture and Marine Resources, to encourage the development of small and medium-sized enterprises in the country, SBDC is the government agency responsible for assessing loan applications for SME's seeking government guarantees.  "We have provided entrepreneurs with land for farming and touristic development and assisted with business plans for their projects but many of them continue to be challenged because of a lack of funding," said Mr. Major. "SBDC will now step in and play a critical role in providing prospective small and medium-sized business loan applicants with critical seed money to assist in their advancement and overall development of entrepreneurship in the country." Executive Director of SBDC, Samantha Rolle, was also in attendance and delivered brief remarks. She said she was 'excited' and optimistic about the new partnership and was looking forward to continuing to facilitate SME's in reaching their full potential.