The company owns the Royal Oasis Resort in Freeport, Grand Bahama, but closed its doors shortly after the passage of Hurricanes Frances and Jeanne last year. Driftwood left behind a mountain of debt, owing workers, the National Insurance Board, the Port Authority and its Group of companies, as well as casino taxes.
Chairman of the Gaming Board, Kenyatta Gibson, said since the Board has been authorized to collect taxes, they have become concerned about the “non-performance” of Driftwood Properties Ltd. and their failure to pay casino taxes. He advised that under the Gaming Act, the Board may call upon the company to prove why certain penalties, including forfeiture of its gaming licence, should not be considered for failing to comply with the Act.
“I trust that this licensee [Driftwood] will get its house in order because the Bahamian people expect me to do my job and I will do my duty,” Mr Gibson warned while giving his contribution to the budget debate on Thursday morning.
Mr Gibson did not state how much in casino taxes Driftwood owed the Government; however, Tourism Minister Obie Wilchcombe revealed in the House of Assembly earlier this year that Driftwood and the Royal Oasis owed some $13 million in casino taxes,
$2.7 million to the Port Authority and its group of companies, $2.5 million to National Insurance and $4.1million to the Pension Fund. He also stated that the company owed more than $55,000 to vendors in Grand Bahama.
Since the closure of the resort the Government had also been battling the creditors of Driftwood Freeport Ltd., (Lehman Brothers) for severance and national insurance payments for the more than 1,200 displaced workers. In February, the government announced that it would come to the rescue of the workers and pay out some $8.4 million in redundancy payments. However this amount was reduced to $5 million and was finally dispersed last month to 900 former employees, in accordance with the provisions of the Financial Administration Audit Act.
Severance payments were paid to those workers who qualified in accordance with the provisions of the Employment Act. The Act limits the government to $5 million for this purpose, and the government in the interest of time decided to allocate $5 million to cover initial disbursements to the workers whose total payout package amounted to $10,000 or less. This group represented 650 workers while the remaining 250 workers owed more than $10,000, received 50 percent of their severance pay.
Labour Minister Vincent Peet told the press last month that this additional $1.2 million was expected to be paid once approval needed from the House of Assembly was received.
He also indicated that the Royal Oasis property was being offered for sale, and stressed that the Government would ensure it was repaid and a new owner chosen in the best interest of property development.
Meanwhile, the Kennedy MP said that in addition to collecting casino taxes, the Gaming Board, at its “earliest opportunity,” will be introducing new legislation to regulate gaming in The Bahamas in order to keep the industry on the competitive and cutting edge.
By: TAMARA McKENZIE, The Nassau Guardian
