Information coming out of the work of the Summit of the Americas process and the Bahamas government reveals that going into business in The Bahamas takes 179 days on average, compared to three to five days in the United States and seven days in Canada, Free National Movement Senator John Delaney claimed on Wednesday night.
“Most problematic is the difficulty in getting governmental decisions in almost any area which calls for governmental approval,” said Mr. Delaney, who was addressing the second night of the FNM Convention at the Nassau Wyndham Resort on Cable Beach.
He said over the summer the Bahamas Real Estate Association complained about the inability of the government’s Investment Board and National Economic Council to streamline the approvals process.
“They said it is especially bad for projects in Abaco and New Providence,” Mr. Delaney added. “And this September the newspapers reported the frustrations with bureaucracy experienced by the developers of a proposed eco-tourism resort in Inagua. Yet, with no regard for truth in advertising, the government continues to advertise that it has cut red tape and rolled out the red carpet.”
Mr. Delaney further claimed that the ordinary Bahamian investor has been tied up in red tape by governmental bureaucracy and is given little or no attention.
He also took the government to task over what he said were serious inefficiencies in the Registrar General’s Department.
“We witnessed only a few months ago a destabilised Registrar General’s Department, sent into complete and utter disarray by highhanded ministerial action that caused a wrongful termination of the registrar general,” the FNM senator said.
He was referring to the firing of Elizabeth Thompson, who is one of the delegates at the convention. After her firing, the Supreme Court determined that she had been wrongfully dismissed.
“Further, for several weeks this past summer, the state of disrepair of the facilities made impossible physical inspections of corporate files of companies registered under the Companies Act,” Mr. Delaney added.
“This totally contradicts an election pledge of the present government to provide the necessary funding and administrative support to the Companies Registry.
“Further still, the system at the Registrar General’s Department for searching deeds and documents, which must be used daily by law firms and other persons searching title to land, is inadequate, inefficient, and defective regarding data commencing 2003 to present. It is a nightmare for lawyers and gives rise to the risk of liability.”
His claims – not surprisingly – are in direct contrast to much of the statements that have been made all year by Minister of Financial Services and Investments Allyson Maynard Gibson, who has continued to tout the improvements and strides she says are being made at the Registrar General’s Department.
Her Ministry has embarked on a major project aimed at fully computerizing that Department, which means that Family Island residents would be able to access services without having to come to the capital.
During his speech, Mr. Delaney focused a great deal on what he indicated were the many successes achieved in the area of financial services under the FNM Administration.
He noted the Ingraham government acted “without delay or indecision” to ensure that The Bahamas was moved from the Financial Action Task Force and the Organization for Economic Cooperation and Development’s blacklist.
The organizations blacklisted The Bahamas in 2000 for its alleged failure to fully cooperate in the war against money laundering. The powerful industrialized nations also said this country’s financial system allowed their citizens to easily evade taxes.
Mr. Delaney noted that as a result, the FNM government acted by strengthening the supervisory powers of the Central Bank and the Securities Commission, established the Financial Intelligence Unit, and made important changes to relevant laws.
“All together, the year 2000 legislation secured The Bahamas’ reputation as a well regulated and respectable financial centre,” he said.
“Despite much talk, by and large the year 2000 legislation has remained untouched in any material way by the present government. Additional legislation action to the anti-money laundering law was made mainly to keep pace with new developments by the FATF.”
Mr. Delaney said the sound financial regulation left in place by the former FNM government has made it possible for The Bahamas to proudly state to international regulatory bodies and market to customers that our laws are consistent with best international standards.
Additionally, he said this sound financial regulation also allows the country to focus on new financial product legislation as recommended by the private sector; and to engage in high margin, value added, sustainable business, the low-end risky business having been weeded out.
As to tax information, he reminded, the FNM government signed a treaty only with the United States of America on terms which benefited both the financial sector and the tourism sector.
“In short, the measures taken by the former FNM government in response to the urgent challenges strengthened the financial sector, and continued to benefit our country, even the tourism industry,” Mr. Delaney told delegates.
Source: The Bahama Journal
