News that Winn-Dixie had signed off on the deal last week prompted reports that Perry Christie’s administration had agreed to approve the take-over.
But yesterday these reports were denied when a government source said that Christie’s cabinet was waiting for the results of a review – put together by the National Economic Council – before making a decision.
“The government has made no decision on the local purchase of City Markets,” a government insider said.
The deal has been criticised as controversial because BSL selected Barbados Shipping & Trading (BS&T), a Barbadian company, “to provide management oversight” for the 12 stores.
Critics claim the Barbadian company’s involvement compromises legislation reserving participation in the food distribution industry for Bahamians.
BS&T, listed on both the Barbados and Trinidad and Tobago Stock Exchanges, is involved in the retailing and food distribution business, and also invests in other economic sectors.
Franklyn Butler, one of BSL’s board members, confirmed that the purchase of the stores was backed by capital investments from BS&T. He said that in the future BS&T could become shareholders in BSL.
By: BARRY WILLIAMS, The Nassau Guardian
