Welcome to Bahamas Local, Your Bahamas Online Search Engine

Prime Minister Philip Davis - Contribution to the Public Finance Management and Public Procurement Bills

Mon, Mar 20th 2023, 01:39 PM
Finance Politics

Madam Speaker:
Sound financial management principles are a cornerstone of my administration’s efforts to improve the government’s fiscal health. Today, we are here to repeal and replace the Public Finance Management Act 2021. The Fiscal Responsibility Act 2018, sections of the Financial Administration and Audit Act and The Public Procurement Act 2021, correcting issues surrounding practical implementation, and delivering improved government financial management and transparency on behalf of the Bahamian people.

We have already seen how our commitment to effective policymaking and best practices has yielded stellar results during our mid-year review.  Our track record speaks for itself.  We have surpassed the fiscal performance of the past few years, eclipsing the previous administration’s pre-pandemic and pre-Dorian years. 

Spurred by record levels of economic growth and a recovered job market, we are now surpassing our own revenue targets. Through the work of the Revenue Enhancement Unit, we are also ensuring that everyone, including the wealthiest people in our society, pays their fair share. 

We have maintained our disciplined approach to budget management, even when high priority items have exceeded allocated amounts. In these instances, we have re-allocated and re-organised, using existing funds from within our budget and making tough choices to ensure that our priorities are realised.

Madam Speaker:

As revenues grow, the government’s budgetary deficit has decreased.

We delivered a lower deficit while launching the most comprehensive Immigration plan in our nation’s history and conducting record amounts of migrant repatriations. We put millions of dollars in the hands of working Bahamians by raising the public and private sector minimum wages. We are improving facilities at PMH and renovating clinics throughout New Providence and the Family Islands. Under this administration, more Bahamians have become homeowners through our affordable homes initiatives and our rent to own programme is well on the way.  In addition,  we continue to maintain robust levels of social support to help Bahamians to stay on their feet as the economy continues its upward climb. 

It is only through disciplined financial management that we have struck the right balance to spur growth, empower people, and improve the government’s fiscal health. This balanced approach will propel us as we advance our agenda for the remainder of this fiscal year. Our efforts to combat learning loss within our schools have been initiated. We are expanding our clinic renovations in the Family Islands and investing in Family Island infrastructure, including starting the process to redevelop 14 airports throughout our Family Islands.

We are only a year and half into this term, but big things are happening, Madam Speaker. 

Even as we successfully meet our fiscal targets, we know that there is more to be done. That is why improved financial management and public procurement are so critical. When governments are operating more efficiently and more transparently, funds are used in ways that yield a higher return on investment the public can see and feel. Eliminating wastage and inefficiencies is a high priority item that positively impacts every other item on our agenda. 

Our goal is to achieve unprecedented policy wins for the Bahamian people while being the best-run government in our history.
 Madam Speaker: 

The Public Finance Management Act and Public Procurement Act were two pieces of a compendium of laws passed by the former administration.

Now, while I am sure the many technical experts who developed the framework for these Acts put in a lot of hard work, there was a clear failure on the former administration’s part to ensure that these two pieces of legislation were practical and consistent with sound public policy.

While the stated purpose of the legislation was to demonstrate that the former administration was reform-minded in its approach to managing the country’s finances, the legislation itself was unworkable from the start.

After all of their talk and empty rhetoric about raising standards, the truth is that their legislation failed to meet the reality test.

I know that there are those opposite who pretend that they are concerned about the amendments we are making. 

But the truth is, Madam Speaker, deep down, they knew how flawed their approach was. I suspect they didn’t care about these flaws because they knew that an early election was coming. So, they brought into force these two pieces of legislation just weeks before the election.

After all their talk about fiscal discipline, they ensured that these laws were made law at the very end of their term when it would have practically no impact on their administration.  I guess their promise to help the poor wasn’t the only thing they wanted to do in that “next term” that never happened. It seems, improving the government’s financial management was also a part of that hypothetical “next term.” 

But the Bahamian people are no fools, Madam Speaker. They know that an administration that waits to pass transparency and financial management laws until the very last days of its term in office, is not a group that values transparency or financial management.

That is how we ended up with laws that were passed with none of the prerequisite work done for successful implementation. There was no new investment in technology and no comprehensive training programme for public officers to facilitate buy-in and ensure that the public service was prepared. None of the things needed to implement this very complex compendium of legislation were put in place.

Policymaking is about much more than passing laws, Madam Speaker. There is a need to think about practical elements like resources at hand, internal capacity, operational barriers, and stakeholder buy-in. There is also a need to think about the impact of the policy, including any unintended or unforeseen impacts. When you pass a law at the end of your term, you don’t really give yourself any time to implement policies in a practical way.

As the side opposite claims that the unworkable legislation they left on the books was “effective,” the real question is: how would they even know? They didn’t actually implement the laws they passed in a real way.

Fortunately, Madam Speaker, a new administration is in place that takes its commitment to transparency and sound financial management seriously. We will not wait until year five to rush through amendments as an afterthought. Good governance isn’t about checking boxes just to say you did something on paper. It is about the real results you get for people every day.

Enactment without a real plan for implementation could have done serious reputational damage to this country, exposing the previous administration as the political equivalent of used car salesmen. They hyped their efforts up with flashy words and big promises, only to disappoint everyone as their empty rhetoric and poorly implemented policies were exposed. 

Madam Speaker:

The passage of replacement legislation is necessary to fulfill the promise of effective public financial management, efficient public procurements processes, and more transparent and fair governance for all. There is no ulterior motive. Every change we make either strengthens loopholes within the existing legislation or covers blind spots and addresses unintended consequences.  

I know the other side took great pleasure in accusing this administration of not adhering to the law on a variety of matters.  However, it has become abundantly clear that they have no clue how to implement the legislation they passed.

The fact that they were clueless with respect to implementation is confirmed by the lack of documentation or background information related to the drafting of the legislation.  Without this relevant background, it is nearly impossible for outside observers to understand the reason for many of the clauses in the legislation and how it supposed to work in the Bahamian context. It's as if they simply grabbed hold of a template provided to them and filled in the blanks with no thought about the practical aspects of the legislation.

Madam Speaker:

The Public Procurement Bill before us today repeals and replaces the 2021 Public Procurement Act.  The 2021 Act  produced some of the unintended public policy consequences that we are keen to avoid. 

One of the worst examples of this is seen in the unequal granting of contracts. The processes put in place created an environment in which large vendors are able to dominate the competition. For example, in the procurement of food, one vendor by virtue of its size and corporate relations, dominated the procurement of food on behalf of the Government.  Under the current Act, this dominance is allowed. In fact, it is an outcome that the Act, as written, intentionally brings about. However, commonsense would tell you that the government nor the Bahamian people want to exist in a reality where only the largest, richest companies with the most resources get every contract. We can all agree that the role of government should be to broaden opportunities for a diverse range of Bahamians. Our small and medium sized businesses deserve opportunities too. The Bill before us today allows for that possibility. 

In fact, the new Bill does the opposite of what the current Act does, by allowing for the preferential treatment of specific groups. We will introduce preferences for Micro-, Small- and Medium sized enterprises, women owned business, Family Island businesses and youth-owned businesses. These are high priority areas we are targeting as a government to diversify opportunities in The Bahamas. 

I think this point bears repeating. Under the current Act, the most well-established, well-resourced businesses were able to dominate government contracts under the guise of them being the best fit for the job. This sounds good on paper but ignores the reality on the ground. 

You see, Madam Speaker, there is a difference between a policy in theory and policy when implemented. What sounds good as an idea, doesn’t always work in a practical way. The members opposite would have realised this if they actually took the time to properly implement the laws they passed. Under the new Bill, micro-, small-, and medium-sized businesses will have opportunities. Women-owned businesses will have opportunities. Businesses in the Family Islands will have opportunities. And Youth-owned businesses will have opportunities. This is The Bahamas my government intends to build. A Bahamas with opportunity for all. 

Our procurement laws must reflect this priority. 
Madam Speaker,

This administration took the necessary steps to develop and implement a procurement improvement plan.  Among the many changes we made, we have approved a career path for procurement officers, ensuring that they are treated with the same professional respect as their colleague technical officers in the Ministry of Finance.  

Putting in place a new procurement framework without also ensuring that the proper upskilling and capacity building exercises were initiated was a terrible oversight that is now being corrected. Procurement officers throughout the government will now have the support and career progression they deserve. By putting these processes in place, we are also ensuring that we can attract new talent to public procurement and fill any shortages that may currently exist.

We will also have fully digital public procurement with the roll out of the Go Bonfire Platform: a best-in-class procurement platform that is being implemented throughout the public sector and in the Public Hospitals Authority.  Since the launch of the platform last November, 1,490 vendors have been registered. 299 opportunities have been contracted during this period and the estimated savings from the use of the platform is $2.6 million.  This number is expected to grow as more agencies move their procurement processes online.

Madam Speaker:

Through these amendments, we are also ensuring that key areas, such as treaties, international multilateral agreements, funding agreements, and other specialised areas are excluded from the normal procurement cycle in accordance with international best practices.

We are ensuring that all participants in procurements processes are registered by the Public Procurement Department where the current Act did not include international bidders in the registration process.

And we are lowering the threshold for establishment of a tender committee to review bids and award contracts from $50,000 to $25,000 for more transparency on government contracts. We have revised all financial thresholds for greater flexibility, transparency, and efficiency, to facilitate faster procurement agreements and completion of contracts.

Madam Speaker:

Contracts below a certain threshold will now automatically be reserved for national bidders. Special permission will have to be granted for these procurement processes to allow for international bidding. Specific justifications must be given for approval of this request. For example, it could be for a good or service that is not available in The Bahamas. In all other cases, any contract amount below that threshold will be reserved and granted to local companies. We are preserving opportunities for Bahamian business owners.

We are also introducing greater accountability for all parties.

 Under the new Bill, bidders who attempt to influence or induce the award of a contract by offer of employment, gratuity, or any other offer of value will be disqualified. This is yet another area that will be strengthened, among many others clearly and specifically outlined in the Bill before us.

Madam Speaker:

I will now turn to the Public Finance Management Bill. 

 I note that the side opposite has had a lot to say about this Bill. The same people, who while in government, failed to pass a practical and workable law. The same members opposite who did not take a single step toward real implementation of these laws now have all the ideas in the world about implementation. 

I will not address their out-of-touch commentary directly except to say: why would the people who failed to exercise effective oversight of $54 million in public funds think they have any credibility when it comes to the management of public finances?

Madam Speaker:

Our approach to the Public Finance Management Bill was much like our approach to the Procurement Bill.  We have ensured that the necessary prerequisites are in place for the successful modernization of public finances in The Bahamas.

Our first priority was to look out for the Finance and Accounting Officers who were overlooked by the previous administration.

We are now processing promotions for Finance and Accounting Officers, something that was not done since a PLP government was last in office. We are ensuring that a proper career progression framework is put in place out of respect for the valuable contributions made by our Finance and Accounting Officers.

Madam Speaker:

We left in place funding to replace the existing financial management systems when we demitted office in 2017.  To our shock, when we returned to office in 2021, there was very little progress. The Government’s payroll system has been in use since 1998. The hardware it sits on is no longer supported by the manufacturer. Despite the funding being in place, in four years they did little to address this situation. No wonder the payment backlog increased so much while they were in office. Defunct software and outdated hardware were kept in place by obsolete leaders. 

The real victims of their inaction were the thousands of public servants who showed up to work every day but were unable to receive the money they earned. This is not just a hiccup in the system. We are talking about people’s careers and livelihoods here. On realizing the full extent of the issue, within our first month in Office we got to work clearing out this backlog. Some of the stacks of files were piled all the way up to the roof of the Ministry of Public Service and were left untouched for four and a half years. That could not happen on our watch. Every public servant deserves the pay they have earned. And as we prioritize getting owed payments through the system, we are investing in a Digital Document Management System and Human Resource Management Information System to ensure that this backlog never happens again.

Madam Speaker:

The Government’s Enterprise Resource Planning system was last updated during the last PLP administration. This is yet another area where very little progress was made. There were additional upgrades necessary to assist with facilitating operational, financial, and human resource processes. Once again, it now falls on us to take up the mantle of digitalization and address these outstanding issues. 

To correct these deficiencies, we have signed an agreement with a leading company named Oracle to put in place a cloud-based Enterprise Resource Planning application.  This is going to modernise the financial operations of the Government at a much lower cost, as the vendor is providing both the hardware and software for this application.

Without these upgrades, it is very difficult to adhere to some of the requirements of the current Act. The previous administration was aware of this fact but did nothing about it. This is yet another example of how they initiated these laws without any thought to implementation: a pre-election rush job just to say it was done in the most superficial and meaningless way.

Madam Speaker:

Further highlights of this Bill include the strengthening of the Fiscal Responsibility Council with improved confidentiality of information and enhanced qualification requirements for members; greater flexibility for budgetary reallocations, increasing the limit from 3% to 5%; the introduction of a Code of Corporate Governance to provide oversight of government agencies and business enterprises; the establishment of a Public Sector Audit Committee; better facilitation of the transition to accrual accounting; and re-inserting the provisions related to the Deposit Fund Account; among other significant changes.

Our reforms are comprehensive, practical, and better suited to the Bahamian context. 

Madam Speaker:

The Bills before us are the product of deep consultation with public sector financial management and procurement experts who have communicated great concern about the lack of practicality in the existing legislation.

We must let common sense reign as far as effective policymaking and legislating is concerned. Rules that cannot be practically implemented are not good rules. A policy that is introduced without preparatory work being done is doomed to fail. A law that does not account for local context cannot effectively address the legislative needs of the government. 

Everyone sitting in this honourable House today is aware of these basic concepts. But there are some who feign ignorance as they seek to hide their own failures and ignore the advancements being made today. 

Madam Speaker:

The work of the government must be grounded in the facts. We must do what is effective and in alignment with best practices, as well as the local reality. 

The difference between the Bill before us today and the existing Act further highlight this fact. One was an Act passed right before an election. The other is a Bill developed throughout our first year and a half and delivered here today. These reforms have not been delayed. And we don’t have an election to hide behind. We will govern according to the highest standards reflected in these Bills for the next three and a half years. The entire Bahamas will witness the expanded transparency, improved operational efficiency, and increased accountability brought about by these Bills. 

The proof of the effectiveness of our approach will be clearly seen in our results.

We are confident that the financial management and procurement processes of the Government of The Bahamas will be significantly improved.

 

Madam Speaker:
Sound financial management principles are a cornerstone of my administration’s efforts to improve the government’s fiscal health. Today, we are here to repeal and replace the Public Finance Management Act 2021. The Fiscal Responsibility Act 2018, sections of the Financial Administration and Audit Act and The Public Procurement Act 2021, correcting issues surrounding practical implementation, and delivering improved government financial management and transparency on behalf of the Bahamian people.
We have already seen how our commitment to effective policymaking and best practices has yielded stellar results during our mid-year review.  Our track record speaks for itself.  We have surpassed the fiscal performance of the past few years, eclipsing the previous administration’s pre-pandemic and pre-Dorian years. 
Spurred by record levels of economic growth and a recovered job market, we are now surpassing our own revenue targets. Through the work of the Revenue Enhancement Unit, we are also ensuring that everyone, including the wealthiest people in our society, pays their fair share. 
We have maintained our disciplined approach to budget management, even when high priority items have exceeded allocated amounts. In these instances, we have re-allocated and re-organised, using existing funds from within our budget and making tough choices to ensure that our priorities are realised.
Madam Speaker:
As revenues grow, the government’s budgetary deficit has decreased.
We delivered a lower deficit while launching the most comprehensive Immigration plan in our nation’s history and conducting record amounts of migrant repatriations. We put millions of dollars in the hands of working Bahamians by raising the public and private sector minimum wages. We are improving facilities at PMH and renovating clinics throughout New Providence and the Family Islands. Under this administration, more Bahamians have become homeowners through our affordable homes initiatives and our rent to own programme is well on the way.  In addition,  we continue to maintain robust levels of social support to help Bahamians to stay on their feet as the economy continues its upward climb. 
It is only through disciplined financial management that we have struck the right balance to spur growth, empower people, and improve the government’s fiscal health. This balanced approach will propel us as we advance our agenda for the remainder of this fiscal year. Our efforts to combat learning loss within our schools have been initiated. We are expanding our clinic renovations in the Family Islands and investing in Family Island infrastructure, including starting the process to redevelop 14 airports throughout our Family Islands.
We are only a year and half into this term, but big things are happening, Madam Speaker. 
Even as we successfully meet our fiscal targets, we know that there is more to be done. That is why improved financial management and public procurement are so critical. When governments are operating more efficiently and more transparently, funds are used in ways that yield a higher return on investment the public can see and feel. Eliminating wastage and inefficiencies is a high priority item that positively impacts every other item on our agenda. 
Our goal is to achieve unprecedented policy wins for the Bahamian people while being the best-run government in our history.
 
Madam Speaker: 
The Public Finance Management Act and Public Procurement Act were two pieces of a compendium of laws passed by the former administration.
Now, while I am sure the many technical experts who developed the framework for these Acts put in a lot of hard work, there was a clear failure on the former administration’s part to ensure that these two pieces of legislation were practical and consistent with sound public policy.
While the stated purpose of the legislation was to demonstrate that the former administration was reform-minded in its approach to managing the country’s finances, the legislation itself was unworkable from the start.
After all of their talk and empty rhetoric about raising standards, the truth is that their legislation failed to meet the reality test.
I know that there are those opposite who pretend that they are concerned about the amendments we are making. 
But the truth is, Madam Speaker, deep down, they knew how flawed their approach was. I suspect they didn’t care about these flaws because they knew that an early election was coming. So, they brought into force these two pieces of legislation just weeks before the election.
After all their talk about fiscal discipline, they ensured that these laws were made law at the very end of their term when it would have practically no impact on their administration.  I guess their promise to help the poor wasn’t the only thing they wanted to do in that “next term” that never happened. It seems, improving the government’s financial management was also a part of that hypothetical “next term.” 
But the Bahamian people are no fools, Madam Speaker. They know that an administration that waits to pass transparency and financial management laws until the very last days of its term in office, is not a group that values transparency or financial management.
That is how we ended up with laws that were passed with none of the prerequisite work done for successful implementation. There was no new investment in technology and no comprehensive training programme for public officers to facilitate buy-in and ensure that the public service was prepared. None of the things needed to implement this very complex compendium of legislation were put in place.
Policymaking is about much more than passing laws, Madam Speaker. There is a need to think about practical elements like resources at hand, internal capacity, operational barriers, and stakeholder buy-in. There is also a need to think about the impact of the policy, including any unintended or unforeseen impacts. When you pass a law at the end of your term, you don’t really give yourself any time to implement policies in a practical way.
As the side opposite claims that the unworkable legislation they left on the books was “effective,” the real question is: how would they even know? They didn’t actually implement the laws they passed in a real way.
Fortunately, Madam Speaker, a new administration is in place that takes its commitment to transparency and sound financial management seriously. We will not wait until year five to rush through amendments as an afterthought. Good governance isn’t about checking boxes just to say you did something on paper. It is about the real results you get for people every day.
Enactment without a real plan for implementation could have done serious reputational damage to this country, exposing the previous administration as the political equivalent of used car salesmen. They hyped their efforts up with flashy words and big promises, only to disappoint everyone as their empty rhetoric and poorly implemented policies were exposed. 
Madam Speaker:
The passage of replacement legislation is necessary to fulfill the promise of effective public financial management, efficient public procurements processes, and more transparent and fair governance for all. There is no ulterior motive. Every change we make either strengthens loopholes within the existing legislation or covers blind spots and addresses unintended consequences.  
I know the other side took great pleasure in accusing this administration of not adhering to the law on a variety of matters.  However, it has become abundantly clear that they have no clue how to implement the legislation they passed.
The fact that they were clueless with respect to implementation is confirmed by the lack of documentation or background information related to the drafting of the legislation.  Without this relevant background, it is nearly impossible for outside observers to understand the reason for many of the clauses in the legislation and how it supposed to work in the Bahamian context. It's as if they simply grabbed hold of a template provided to them and filled in the blanks with no thought about the practical aspects of the legislation.
Madam Speaker:
The Public Procurement Bill before us today repeals and replaces the 2021 Public Procurement Act.  The 2021 Act  produced some of the unintended public policy consequences that we are keen to avoid. 
One of the worst examples of this is seen in the unequal granting of contracts. The processes put in place created an environment in which large vendors are able to dominate the competition. For example, in the procurement of food, one vendor by virtue of its size and corporate relations, dominated the procurement of food on behalf of the Government.  Under the current Act, this dominance is allowed. In fact, it is an outcome that the Act, as written, intentionally brings about. However, commonsense would tell you that the government nor the Bahamian people want to exist in a reality where only the largest, richest companies with the most resources get every contract. We can all agree that the role of government should be to broaden opportunities for a diverse range of Bahamians. Our small and medium sized businesses deserve opportunities too. The Bill before us today allows for that possibility. 
In fact, the new Bill does the opposite of what the current Act does, by allowing for the preferential treatment of specific groups. We will introduce preferences for Micro-, Small- and Medium sized enterprises, women owned business, Family Island businesses and youth-owned businesses. These are high priority areas we are targeting as a government to diversify opportunities in The Bahamas. 
I think this point bears repeating. Under the current Act, the most well-established, well-resourced businesses were able to dominate government contracts under the guise of them being the best fit for the job. This sounds good on paper but ignores the reality on the ground. 
You see, Madam Speaker, there is a difference between a policy in theory and policy when implemented. What sounds good as an idea, doesn’t always work in a practical way. The members opposite would have realised this if they actually took the time to properly implement the laws they passed. Under the new Bill, micro-, small-, and medium-sized businesses will have opportunities. Women-owned businesses will have opportunities. Businesses in the Family Islands will have opportunities. And Youth-owned businesses will have opportunities. This is The Bahamas my government intends to build. A Bahamas with opportunity for all. 
Our procurement laws must reflect this priority.
 
Madam Speaker,
This administration took the necessary steps to develop and implement a procurement improvement plan.  Among the many changes we made, we have approved a career path for procurement officers, ensuring that they are treated with the same professional respect as their colleague technical officers in the Ministry of Finance.  
Putting in place a new procurement framework without also ensuring that the proper upskilling and capacity building exercises were initiated was a terrible oversight that is now being corrected. Procurement officers throughout the government will now have the support and career progression they deserve. By putting these processes in place, we are also ensuring that we can attract new talent to public procurement and fill any shortages that may currently exist.
We will also have fully digital public procurement with the roll out of the Go Bonfire Platform: a best-in-class procurement platform that is being implemented throughout the public sector and in the Public Hospitals Authority.  Since the launch of the platform last November, 1,490 vendors have been registered. 299 opportunities have been contracted during this period and the estimated savings from the use of the platform is $2.6 million.  This number is expected to grow as more agencies move their procurement processes online.
Madam Speaker:
Through these amendments, we are also ensuring that key areas, such as treaties, international multilateral agreements, funding agreements, and other specialised areas are excluded from the normal procurement cycle in accordance with international best practices.
We are ensuring that all participants in procurements processes are registered by the Public Procurement Department where the current Act did not include international bidders in the registration process.
And we are lowering the threshold for establishment of a tender committee to review bids and award contracts from $50,000 to $25,000 for more transparency on government contracts. We have revised all financial thresholds for greater flexibility, transparency, and efficiency, to facilitate faster procurement agreements and completion of contracts.
Madam Speaker:
Contracts below a certain threshold will now automatically be reserved for national bidders. Special permission will have to be granted for these procurement processes to allow for international bidding. Specific justifications must be given for approval of this request. For example, it could be for a good or service that is not available in The Bahamas. In all other cases, any contract amount below that threshold will be reserved and granted to local companies. We are preserving opportunities for Bahamian business owners.
We are also introducing greater accountability for all parties.
 Under the new Bill, bidders who attempt to influence or induce the award of a contract by offer of employment, gratuity, or any other offer of value will be disqualified. This is yet another area that will be strengthened, among many others clearly and specifically outlined in the Bill before us.
Madam Speaker:
I will now turn to the Public Finance Management Bill. 
 I note that the side opposite has had a lot to say about this Bill. The same people, who while in government, failed to pass a practical and workable law. The same members opposite who did not take a single step toward real implementation of these laws now have all the ideas in the world about implementation. 
I will not address their out-of-touch commentary directly except to say: why would the people who failed to exercise effective oversight of $54 million in public funds think they have any credibility when it comes to the management of public finances?
Madam Speaker:
Our approach to the Public Finance Management Bill was much like our approach to the Procurement Bill.  We have ensured that the necessary prerequisites are in place for the successful modernization of public finances in The Bahamas.
Our first priority was to look out for the Finance and Accounting Officers who were overlooked by the previous administration.
We are now processing promotions for Finance and Accounting Officers, something that was not done since a PLP government was last in office. We are ensuring that a proper career progression framework is put in place out of respect for the valuable contributions made by our Finance and Accounting Officers.
Madam Speaker:
We left in place funding to replace the existing financial management systems when we demitted office in 2017.  To our shock, when we returned to office in 2021, there was very little progress. The Government’s payroll system has been in use since 1998. The hardware it sits on is no longer supported by the manufacturer. Despite the funding being in place, in four years they did little to address this situation. No wonder the payment backlog increased so much while they were in office. Defunct software and outdated hardware were kept in place by obsolete leaders. 
The real victims of their inaction were the thousands of public servants who showed up to work every day but were unable to receive the money they earned. This is not just a hiccup in the system. We are talking about people’s careers and livelihoods here. On realizing the full extent of the issue, within our first month in Office we got to work clearing out this backlog. Some of the stacks of files were piled all the way up to the roof of the Ministry of Public Service and were left untouched for four and a half years. That could not happen on our watch. Every public servant deserves the pay they have earned. And as we prioritize getting owed payments through the system, we are investing in a Digital Document Management System and Human Resource Management Information System to ensure that this backlog never happens again.
Madam Speaker:
The Government’s Enterprise Resource Planning system was last updated during the last PLP administration. This is yet another area where very little progress was made. There were additional upgrades necessary to assist with facilitating operational, financial, and human resource processes. Once again, it now falls on us to take up the mantle of digitalization and address these outstanding issues. 
To correct these deficiencies, we have signed an agreement with a leading company named Oracle to put in place a cloud-based Enterprise Resource Planning application.  This is going to modernise the financial operations of the Government at a much lower cost, as the vendor is providing both the hardware and software for this application.
Without these upgrades, it is very difficult to adhere to some of the requirements of the current Act. The previous administration was aware of this fact but did nothing about it. This is yet another example of how they initiated these laws without any thought to implementation: a pre-election rush job just to say it was done in the most superficial and meaningless way.
Madam Speaker:
Further highlights of this Bill include the strengthening of the Fiscal Responsibility Council with improved confidentiality of information and enhanced qualification requirements for members; greater flexibility for budgetary reallocations, increasing the limit from 3% to 5%; the introduction of a Code of Corporate Governance to provide oversight of government agencies and business enterprises; the establishment of a Public Sector Audit Committee; better facilitation of the transition to accrual accounting; and re-inserting the provisions related to the Deposit Fund Account; among other significant changes.
Our reforms are comprehensive, practical, and better suited to the Bahamian context. 
Madam Speaker:
The Bills before us are the product of deep consultation with public sector financial management and procurement experts who have communicated great concern about the lack of practicality in the existing legislation.
We must let common sense reign as far as effective policymaking and legislating is concerned. Rules that cannot be practically implemented are not good rules. A policy that is introduced without preparatory work being done is doomed to fail. A law that does not account for local context cannot effectively address the legislative needs of the government. 
Everyone sitting in this honourable House today is aware of these basic concepts. But there are some who feign ignorance as they seek to hide their own failures and ignore the advancements being made today. 
Madam Speaker:
The work of the government must be grounded in the facts. We must do what is effective and in alignment with best practices, as well as the local reality. 
The difference between the Bill before us today and the existing Act further highlight this fact. One was an Act passed right before an election. The other is a Bill developed throughout our first year and a half and delivered here today. These reforms have not been delayed. And we don’t have an election to hide behind. We will govern according to the highest standards reflected in these Bills for the next three and a half years. The entire Bahamas will witness the expanded transparency, improved operational efficiency, and increased accountability brought about by these Bills. 
The proof of the effectiveness of our approach will be clearly seen in our results.
We are confident that the financial management and procurement processes of the Government of The Bahamas will be significantly improved.
 Sponsored Ads