A just released analysis by the Inter-American Development Bank (IDB) has highlighted what the bank has called weaknesses in The Bahamas’ fiscal policies, governance, institutions, rules and processes, public financial management processes and public financial management.
Pointing specifically to The Bahamas’ fiscal accounting practices, the IDB stated that information is lacking on extra-budgetary expenditure of funds and that tax liability assessments and exemptions are still subject to the discretionary powers of different government entities or lack enforcement.
The analysis is a part of a book entitled “Economic Institutions for a Resilient Caribbean”, which lays out a specific reform agenda for The Bahamas, Barbados, Guyana, Jamaica, Suriname and Trinidad and Tobago, and presents recommendations on how these nations can strengthen their institutions to promote economic growth.
The IDB stated that for The Bahamas, annual financial statements do not meet international standards in terms of presentation or disclosure.
“There have been problems with reconciliations and although auditor generals highlight weaknesses and breaches of the rules, response efforts have been limited, reflecting lack of accountability and low regard for the auditor’s opinion. While key budget reports are prepared, public access and financial information are rather limited.”
The organization also pointed out that Caribbean countries do not show systemic or timely follow up in auditor general findings, specifically in The Bahamas, Guyana, Jamaica, Suriname and Trinidad and Tobago.
The IDB analysis states that while evidence shows the public financial management processes and systems of Caribbean countries are weak in general, The Bahamas and Suriname have advanced in specific areas.
Prime Minister Dr. Hubert Minnis earlier this week sought to begin debate on several bills that are expected to address many of the country’s weaknesses pointed out by the IDB, however the opposition argued that they were not properly notified of plans to debate and were not prepared.
The debate has been put off for some time after the government completes debate on the 2020/2021 mid-year budget.
The Public Financial Management Bill, 2021; Public Procurement Bill, 2020; the Statistics Bill, 2021 and the Public Debt Management Bill, 2021 are expected to bring further transparency and accountability to the management of public finances and the issuance of government contracts.
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