By Tynia Brown
Journal Staff Writer

Parliamentarians are on summer break, but East Grand Bahama MP Kwasi Thompson, who
is the shadow Minister of Finance and Opposition Leader Michael Pintard continue to hammer
away at the Davis administration and its handling on the public purse but the government
maintains it is moving in the right direction with its fiscal and economic strategy.
In a written statement Thompson said the Fiscal Responsibility Council’s latest report makes it
plain that the Davis administration is not just careless with the public’s money, it is non-
compliant with the very rules meant to protect it.
He said, “Time and again, this Government has refused to be transparent, ignored its legal
obligations, and misled the Bahamian people. The Council confirmed what we in the Opposition
have been saying for months. Earlier this year, the Prime Minister proudly projected the
Government achieved a $135 million surplus for the month of April. Yet the Ministry of
Finance’s own reports later revealed a $2 million deficit.
“When pressed in Parliament, the Prime Minister denied he ever made the claim, despite it being
recorded on video and reported in the press. Instead of answers, Bahamians got deflection and
confusion,” said Thompson.
He said the Council also found that the Government failed to comply with two critical
requirements: oversight of public enterprises and transparency around public-private
partnerships.
He said, “In the Council’s own words: Neither annual plans for the listed 18 public entities nor
statements of corporate intent for the 19 Government Business Enterprises were provided. This
is a serious failure. The Government refused to provide annual plans and corporate intent
statements for state-owned enterprises like BPL and Water & Sewerage.
“These agencies handle core national services and receive large sums of public money. They
should be closely monitored, yet this administration has offered no plans, no performance
benchmarks, and no explanation for how that money is being used.”
Continuing Thompson said, “Worse still, the Government secretly funneled $10 million to the
Carmichael Village Project Development Company Ltd., which it classifies as a Government
Business Enterprise. No announcement. No details. No accountability. It was only discovered
because it appeared deep in the pages of a Ministry debt bulletin.

“This is not an isolated case. The Government has also failed to provide a credible plan for the
Grand Lucayan project, leaving taxpayers in the dark while millions remain at risk,” Thompson
argued.
He said the Council also noted that the Government has not disclosed the framework it uses to
approve public-private partnerships, despite the fact that PPPs can leave taxpayers on the hook
for hundreds of millions of dollars.
“These projects,” he said, “are being approved without public vetting, without parliamentary
oversight, and without clear rules about how risks are assessed and managed. This is not
responsible governance. It is a deliberate pattern of hiding information, avoiding scrutiny, and
treating the Bahamian people as an afterthought,” said Thompson.
He said at a time when families are being asked to do more with less, they deserve to know how
their money is being spent, instead, they are left with half-truths, incomplete data, and vague
commitments.
“We cannot build a strong economy on secrecy. We cannot fix our public finances without trust.
This report should be a wake-up call. The path we are on is unsustainable. It is time for real
transparency, real accountability, and a government that treats public money with respect,”
Thompson bemoaned.
He said the Official Opposition will continue to demand answers and advocate for the kind of
fiscal responsibility the Bahamian people deserve.
In response to Thompson’s critique and the Fiscal Responsibility Council’s Review of the fiscal
year 2025/26 Fiscal Strategy Report and Annual Budget the government released a statement of
its own stating that it welcomes the Council’s role in strengthening transparency and
accountability within our fiscal framework, and we take note of the observations offered.
However, it said The Government remains confident in the overall direction of its fiscal and
economic strategy.
It said, “We have charted a clear path to reduce the debt-to-GDP ratio to 50 percent by
FY2030/31, while continuing to support growth, job creation, and targeted social investment.
The Council itself has confirmed that The Bahamas is broadly compliant with the Public
Financial Management Act, 2023, and that our debt trajectory is on a downward course.
“The Government is unapologetic in its commitment to ensuring that fiscal policy is not pursued
as an end but as a means to improve the daily lives of Bahamians. Decisions such as adjusting
the VAT rate on essential items are designed to ease cost-of-living pressures on families at a time
when inflation and global shocks remain very real concerns.
“These measures reflect a deliberate choice to protect the most vulnerable, while at the same
time pursuing reforms to broaden the tax base through initiatives such as the Domestic Minimum
Top-Up Tax, enhanced compliance enforcement, and the digitalisation of the tax system,” the
statement read.
The government also reminded that it is also pressing ahead with structural reforms that will
yield long-term savings and resilience.

It said, “Pension reform for new public sector entrants will contain future liabilities,
rationalisation of state-owned enterprises will reduce fiscal transfers, and reforms in energy and
digital infrastructure will support both competitiveness and fiscal sustainability. At the same
time, annual contributions to the sinking fund, prudent borrowing strategies, and expanded
access to concessional financing demonstrate that debt management remains a top priority.”
The Government said it recognises that the Council has raised questions about revenue targets,
expenditure ceilings, and the treatment of capital spending, but its’ approach is guided by realism
and prudence.
The government explained that the decision to allow SOEs to undertake critical capital
investments is not an attempt to obscure expenditure but to accelerate national development
through entities best positioned to deliver sector-specific projects.
“The Government will continue to improve reporting on these initiatives to ensure clarity and
transparency,” it said. “We also wish to underscore that the report of the Council represents a
roadmap for reform. While this initial review affirms that the Government has scored very well,
we acknowledge that there is still room for improvement. Continuous learning, better reporting,
and stronger execution are part of our commitment to building credibility and trust in fiscal
management.
In the statement the government recognized the importance of the independence of the Council
itself noting that the work of the Council has been decisive in enhancing fiscal accountability,
also accusing the previous Council appointed by the former administration of never producing a
single report.
“This Government has ensured that the Council has the support and autonomy necessary to carry
out its mandate,” said the statement. “We are determined that independent oversight of the
nation’s fiscal operations will remain a cornerstone of responsible governance. This
administration will not be distracted from the work of fiscal consolidation and growth. The
Council’s review underscores that The Bahamas is moving in the right direction.”
Following the release of the statement by the Government leader of the Opposition Michael
Pintard weighed in on the issue saying, “This Davis Administration has once again proven itself
to be the enemy of accountability and transparency. Confronted with serious findings from the
Fiscal Responsibility Council (FRC), the Prime Minister’s response was not to explain or correct
the breaches of law identified in the report, but to dismiss the Council’s conclusions outright.”
He said, “Once again, the Prime Minister continues to demonstrate that he neither understands
nor respects the role of institutions created to safeguard the public interest and ensure good
governance. After disbanding and weakening the Fiscal Responsibility Council for several years,
the Davis Administration is now trying to defend its indefensible fiscal practices.”
Mr. Pintard said the Opposition raised many of these same issues during the recent budget
debate.
He said, “Now, an independent watchdog has confirmed our fears. The Fiscal Responsibility
Council has made clear that the government is in breach of the law, that it is failing to meet its
own fiscal framework, and that it is misleading Bahamians with questionable projections. Instead

of owning up to the breaches and telling Bahamians how they’ll fix them, the Davis
Administration hides behind the same old political spin.”