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GBPA told to pay $300m in 30 days

Thu, Apr 4th 2024, 08:30 AM
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THE Davis administration has sent a demand letter to the Grand Bahama Port Authority (GBPA), giving it 30 days to pay more than $300m allegedly owed to government over the last five fiscal years.
The Tribune understands the letter, which was sent last week, is in regard to clause 1(5)(c)of the Hawskbill Creek Agreement.
#The letter represents an unprecedented escalation in the government’s pressure campaign against the GBPA, which Prime Minister Philip “Brave” Davis has accused of failing to follow its obligations under the Hawksbill Creek Agreement.
#Representatives from the GBPA and the Office of the Prime Minister declined to comment when contacted by The Tribune yesterday.
#Tension has been brewing publicly between the GBPA and the government since Mr Davis said last year that the authority is failing to maintain Freeport’s infrastructure and facilitate the growth of the city.
#The government has previously demanded that the GBPA reimburse it for costs incurred in providing public services in Freeport over and above what it has earned in tax revenues from the city.
#The latest letter says the GBPA must pay the government within 30 days. It follows presentation of an account of costs to the government, plus 25 percent of those costs. The total demand is $357m, and covers the years 2018-2022.
#However, Freeport’s quasi-governmental authority last June hit back by arguing that the sums sought by the government are “contested” and “it is yet to be satisfied”. The claims are said to be supported by credible evidence.
#GBPA’s president, Ian Rolle, said earlier this year that the two parties are engaged in dialogue regarding the island’s future.
#“There’s no other island in The Bahamas who suffered like Grand Bahama was a result of these natural disasters, and so I think persons on the island have become frustrated and had communications with government, etc, and that caused the government, very passionate about every single island wanting development to happen, was very concerned,” he told reporters on the Bahamas Business Outlook’s sidelines.
#“But we are pleased to actually say to everybody that we have well over $1.5 billion, almost $2 billion worth of projects now for Grand Bahama and I think the government has also said that recently, in fact, the PM said today, he reiterated what we’ve been saying for a while about the number of projects in the pipeline that will help transform the economy of Grand Bahama.”
#Prime Minister Philip “Brave” Davis said in November that the government informed the existing owners of Freeport’s quasi-governmental authority that it is prepared to acquire the GBPA and its affiliated assets if no suitable private investor or buyer emerges.
#However, Foreign Affairs Minister Fred Mitchell later said the government had withdrawn an offer to buy out the GBPA’s two shareholders, the Hayward and St George families, in favour of arbitration action.

THE Davis administration has sent a demand letter to the Grand Bahama Port Authority (GBPA), giving it 30 days to pay more than $300m allegedly owed to government over the last five fiscal years.
The Tribune understands the letter, which was sent last week, is in regard to clause 1(5)(c)of the Hawskbill Creek Agreement.

The letter represents an unprecedented escalation in the government’s pressure campaign against the GBPA, which Prime Minister Philip “Brave” Davis has accused of failing to follow its obligations under the Hawksbill Creek Agreement.

Representatives from the GBPA and the Office of the Prime Minister declined to comment when contacted by The Tribune yesterday.

Tension has been brewing publicly between the GBPA and the government since Mr Davis said last year that the authority is failing to maintain Freeport’s infrastructure and facilitate the growth of the city.

The government has previously demanded that the GBPA reimburse it for costs incurred in providing public services in Freeport over and above what it has earned in tax revenues from the city.

The latest letter says the GBPA must pay the government within 30 days. It follows presentation of an account of costs to the government, plus 25 percent of those costs. The total demand is $357m, and covers the years 2018-2022.

However, Freeport’s quasi-governmental authority last June hit back by arguing that the sums sought by the government are “contested” and “it is yet to be satisfied”. The claims are said to be supported by credible evidence.

GBPA’s president, Ian Rolle, said earlier this year that the two parties are engaged in dialogue regarding the island’s future.

“There’s no other island in The Bahamas who suffered like Grand Bahama was a result of these natural disasters, and so I think persons on the island have become frustrated and had communications with government, etc, and that caused the government, very passionate about every single island wanting development to happen, was very concerned,” he told reporters on the Bahamas Business Outlook’s sidelines.

“But we are pleased to actually say to everybody that we have well over $1.5 billion, almost $2 billion worth of projects now for Grand Bahama and I think the government has also said that recently, in fact, the PM said today, he reiterated what we’ve been saying for a while about the number of projects in the pipeline that will help transform the economy of Grand Bahama.”

Prime Minister Philip “Brave” Davis said in November that the government informed the existing owners of Freeport’s quasi-governmental authority that it is prepared to acquire the GBPA and its affiliated assets if no suitable private investor or buyer emerges.

However, Foreign Affairs Minister Fred Mitchell later said the government had withdrawn an offer to buy out the GBPA’s two shareholders, the Hayward and St George families, in favour of arbitration action.

Click here to read more at The Tribune

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