Bahamas<\/p>\n
Governance reformers yesterday voiced \u201calarm\u201d that the uncertainty surrounding the Fiscal Responsibility Council highlights a growing \u201ctrend\u201d where public accountability and transparency \u201clack priority\u201d within government.<\/p>\n
Matt Aubry, the Organisation for Responsible Governance\u2019s (ORG) executive director, told Tribune Business that the fiscal watchdog\u2019s present \u2018in limbo\u2019 status is another example where the Davis administration appears to be \u201cpaying less attention\u201d to building trust as opposed to focusing on other policy priorities.<\/p>\n
Speaking after this newspaper revealed Council members are seeking clarity from Prime Minister Philip Davis KC as to whether their appointments are still valid, he also pointed to the \u201ccontinued contravention\u201d of both the initial and new Public Procurement Act due to the Government\u2019s failure to publish details on contract awards within 60 days of their issuance.<\/p>\n
\u201cWhat I think alarms us about it is it\u2019s yet another instance where we see a lack of clarity for the mechanisms of transparency and accountability, and the responsibility to give information to citizens,\u201d Mr Aubry told this newspaper on the Council.<\/p>\n
\u201cWhen we look at that, it ultimately reinforces what we see as a trend \u2013 that there\u2019s more and more instances of this lack of priority for government mechanisms\u2026. What we\u2019ve seen in the instance of the Freedom of Information Act, and maybe with the Fiscal Responsibility Act, is there is not the same level of attention to these issues when compared to the focus on others such as getting off blacklists and accessing more sources of revenue.<\/p>\n
\u201cThese are just as critical, and maybe even more so, because when government enacts changes citizens can see whether they are aligned with their interests.\u201d Tribune Business yesterday reached out to Latrae Rahming, the Prime Minister\u2019s communications director, to seek government comment and inquire what it was doing to address Fiscal Responsibility Council member concerns as to whether their appointments are still valid.<\/p>\n
This newspaper also asked the Government to address concerns that the Council is perceived to be less independent from government following enactment of the Public Finance Management Act 2023, which switched responsibility for its members\u2019 appointment from the House of Assembly speaker to the minister of finance (now Mr Davis) \u2013 the very person whose ministry, and fiscal strategies, plans and actions, they are supposed to be scrutinising.<\/p>\n
Mr Rahming acknowledged receiving Tribune Business\u2019 questions and message, but no reply was received before press time last night. Gowon Bowe, the Bahamas Institute of Chartered Accountants (BICA) representative on the Fiscal Responsibility Council (FRC), explained he and his colleagues need confirmation if they remain members until their original appointments expire or if they are considered \u201cterminated\u201d due to the new Act coming into effect.<\/p>\n
Given that the Council plays a critical role in The Bahamas\u2019 enhanced fiscal transparency and accountability regime, he added that it was \u201cin the best interests of the Government\u201d and the nation to reassure the likes of the International Monetary Fund (IMF), Moody\u2019s and Standard & Poor\u2019s (S&P) that there is no intention of \u201cwatering down\u201d this framework.<\/p>\n
The five-member Council plays a critical role since it is charged with examining whether the Government\u2019s annual Budget, Fiscal Strategy Report and other measures align with set fiscal responsibility targets and principles. To-date, though, it has released just two assessments \u2013 on the 2020 Fiscal Strategy Report and the 2021-2022 Budget.<\/p>\n
Mr Aubry yesterday said the Government\u2019s decision to merge the Fiscal Responsibility Act into the Public Finance Management Act, consolidating both laws into one, has made the Council\u2019s role \u201cmore important\u201d because it has \u201creduced the opportunities for the public to learn and understand the fiscal strategy and financial position of the Government.<\/p>\n
\u201cIt requires a more robust reporting schedule, and the importance of the Fiscal Responsibility Council achieving their mandate is critical,\u201d he added. \u201cWe\u2019ve seen even when the Fiscal Responsibility Act was in effect there was still not a frequent level of reporting, and a lack of clarity on when the Council would bring information forward or access the resources and funds to do their job appropriately.\u201d<\/p>\n
Asserting that this mechanism was a key component in building greater trust in government among Bahamians, Mr Aubry added: \u201cIf there\u2019s less reporting and the mechanism is not in place, your fiscal responsibility is disengaged and not as robust. It affects your credit rating, which affects your borrowing costs, it affects local and international confidence in the fiscal strategy and position of The Bahamas.<\/p>\n
\u201cGiven the clear focus on trying to drive new sources of revenue, you\u2019d want that to be published, scrutinised and reflective of feedback and analysis by the experts on the Council. There\u2019s a lot of benefit from having this mechanism, which does not have a long history, working.\u201d<\/p>\n
Mr Aubry said ORG holds similar concerns over \u201cthe continued contravention of the Public Procurement Act because there\u2019s no public disclosure of which contracts have been awarded\u201d. While the Government\u2019s procurement website is \u201cmodern and accessible\u201d, and provides a list of the different tenders and contracts out to bid, together with the identities of some winning bidders, he urged that \u201cthe back end\u201d be enhanced to comply with the law.<\/p>\n
This requires that the name of the winning bidder, the contract value and \u201cwhat is expected of them\u201d be published within 60 days of award but this has never been fully complied with since the first Act took effect on September 1, 2021, during the final days of the Minnis administration.<\/p>\n
Mr Aubry said the Act\u2019s purpose was to ensure government contracts are awarded fairly, rather than on the basis of patronage, political and family connections or some other arbitrary influences. If it worked, small Bahamian businesses would be encouraged to bid and, if they succeeded, they will grow themselves and the economy.<\/p>\n
The Opposition, meanwhile, were quick to jump on what they termed the Government\u2019s \u201cinaction\u201d over the Fiscal Responsibility Council. Kwasi Thompson, the Free National Movement\u2019s (FNM) finance spokesman, accused the Government of \u201csystematically decimating\u201d transparency and accountability checks and balances that the former Minnis administration established.<\/p>\n
\u201cIt was just wrong to move the jurisdiction of the Council from the Speaker to the minister of finance,\u201d Mr Thompson said. \u201cThe Council members are correct; it is like the fox watching the hen house. It was wrong to move the funding from the Parliament to the Ministry of Finance. It was wrong to move the appointment of the Council from the Speaker to the minister of finance.<\/p>\n
\u201cThe Davis administration has systematically decimated the accountability controls, particularly with respect to the Fiscal Responsibility Council.\u201d Mr Thompson argued that the Government has yet to justify the changes to the Fiscal Responsibility Council, and added: \u201cIt is the people who suffer the most from not having the necessary reports of the Council, and the Government seems happy to simply ignore this important accountability control system.\u201d<\/p>\n