NASSAU, BAHAMAS — Asserting that the Grand Bahama Port Authority (GBPA) has not been living up to its legal obligations to develop and grow the economy in Freeport, Prime Minister Philip Davis says that the government has a "very strong case" to demand $357 million - which covers the last five fiscal years.
Prime Minister Davis, who made the remarks while addressing a Progressive Liberal Party (PLP) Branch meeting on Grand Bahama on Saturday, acknowledged that the government has sent a letter to the GBPA demanding the payment of $357 million within 30 days and if they fail to do so, the government has the right to begin arbitration proceedings immediately.
"As many of you know, there was a time when Freeport was my home. I know how special the people and communities are here, so it is profoundly dispiriting to see so much suffering and stagnation - to see the tragedy of unrealized potential," said Davis.
"Unfortunately, the Port Authority has not been living up to its legal obligations to develop and grow the economy in Freeport. In many cases, the government has had to step in where the Port has failed. Let's be clear about what this means: it means that the Bahamian people have been subsidizing the profits of these private shareholders! That is not right. You deserve flourishing, thriving communities. You deserve an inclusive economy that generates opportunity, dignity, and security. You deserve what is owed to you under the Hawksbill Creek Agreement."
According to Prime Minister Davis, on March 26, the GBPA was sent a detailed account—prepared by PricewaterhouseCoopers—of reimbursements owed to the government—which is to say, owed to the Bahamian people, said to be $357 million—covering the last five fiscal years.
"The Port Authority is required under the agreement to send this reimbursement within 30 days of the presentation of this detailed audit. If they should fail to do so, the government has the right to immediately begin arbitration proceedings. Now, the government has a very strong case," said Davis, while acknowledging that could be a drawn-out and contentious battle ahead. Still, he asserted that "it is the right thing to do," stating that it is "intolerable to ask the Bahamian people to continue subsidizing private profits."
"It is intolerable that the Port is not meeting critical infrastructure and development obligations," said Davis. He further noted that the issue was not personal, nor were any decisions made in haste. "We had many, many meetings and exchanges before we arrived at this point. But there were too many delays and too many dead ends. When only one side appears interested in advancement - and when the people of Freeport urgently need change and progress - then decisive action is the only choice," he said.
The Office of the Prime Minister in a statement issued on Sunday noted that The Grand Bahama Port Authority has distinct obligations under the Hawksbill Creek Agreement.
"Those obligations have not been met, and suffering in Freeport is widespread. The people of The Bahamas have been paying the bill for services that are legally the responsibility of the Port Authority. Acting under the law, the government is seeking reimbursement on behalf of the Bahamian people," the statement noted.
According to the OPM, Clause 1(5)(c ) of the Hawksbill Creek Agreement requires the Port Authority to reimburse the Government within 30 days of the presentation of a detailed account of the costs associated with providing services and infrastructure which are the legal responsibility of GBPA.
"Other issues which pertain to the Port Authority, including the best path forward, will be addressed comprehensively - however, attempts to distract or muddy the waters do not change the legal obligations of the Port Authority. The people of The Bahamas cannot bear their burdens any longer," the statement concluded.
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