After coming under fire for alleged possible conflict of interest, chairman of the Grand Bahama Port Authority Hannes Babak has sold all of his shares in a construction company he once owned, and cancelled a contract recently signed between them and Associated Grocers.
Mr Babak states that since his appointment as chairman these allegations have surfaced despite the fact that the contract between H and F Babak Construction and International Distributors of Grand Bahama Limited (Associated Grocers) had been negotiated before he was even chairman of the Port.
“Since my appointment as chairman of the Grand Bahama Port Authority on June 1, 2006, there have been allegations of a conflict of interest between my role as chairman of the Port Authority and the business activities of H and F Babak Construction Company Limited.
“Recently the contract executed between International Distributors of Grand Bahama Limited and H and F Babak Construction has become the subject of a heated debate among certain members of the public, notwithstanding that is was being negotiated prior to my becoming chairman of the Port Authority and notwithstanding ļ¾ that International Distributors has publicly confirmed that the only company in the Bahamas which has the technology and expertise to perform the contract is H and F Babak Construction.
“As a result of these issues, and of my desire to serve in the best interest of the people of Grand Bahama, without being distracted by such allegations, I have come to the conclusion that H and F Babak Construction Company will not continue with the contract, and have therefore written to the attorneys for International Distributors of Grand Bahama Limited (Associated Grocers) to request that H and F Babak Construction be released from the contract with immediate effect,” a release from Mr Babak read. Also. Mr Babak said that he would indemnify International Distributors of Grand Bahama for any losses they may have suffered by releasing H and F Babak Construction from the contract.
“Furthermore, to avoid such allegations in the future, I have decided to sell all of my shares in H and F Babak Construction Company at a great personal loss to me. I am presently in negotiations with a reputable Bahamian contractor for the sale of the company and expect to conclude these negotiations shortly.
“I look forward to being able to focus on the development of business opportunities as chairman of The Grand Bahama Port Authority for the benefit of the people of Grand Bahama,” he said.
By PAUL TURNQUEST Tribune Staff Reporter
