Dear Bahamas Press,
In the Nassau Guardian of 21 August 2024, GBPA Executive Director Rupert Hayward said the bitter public fight between the Davis administration and the Grand Bahama Port Authority (GBPA) affects investor confidence on the island. Of course, this implies that Investor confidence is driven only by the PLP policies and has nothing to do with Freeport’s neglect and GBPA’s breaches of the Hawksbill Creek Agreement (HBCA).
So, what is investor confidence, and why does the GBPA always offer this trope whenever it cannot apply pressure to get what it wants from the central government? Investor confidence refers to the willingness of investors to engage in financial activities based on their perceptions of risk and expected returns. It encompasses two main elements:
- Investor Optimism: Investor optimism is a positive outlook on their investments’ risks and potential returns. It reflects their belief that their investments will yield worthwhile returns.
- Investor Trust involves investors’ confidence in the fairness and integrity of the financial markets, including the protections in place to safeguard them from fraud and other misconduct.
Despite Mr Haywards’s implications to the contrary, under the HBCA, the GBPA is responsible for creating an atmosphere in which investors are confident in investing, and it’s the government’s responsibility to protect its citizens from shady investors such as Oban and the like.
Despite the smoke and mirrors and conspiracy theories utilised by the GBPA and its subservient FNM MPs, the US State Department 2023 Investment Climate Statements on Freeport contains these revelations, which contradict Mr Hayward’s misleading statement. “ Freeport, Grand Bahama, has been attracting significant foreign investment due to its strategic location and status as a free trade zone”. Here are some key points:
- Strategic Location: Freeport is ideally positioned at the centre of major international trade lanes, making it a hub for global business.
- Tax Incentives: The city offers a wide array of tax incentives, including exemptions from income tax, capital gains tax, property estate tax, and import/export duties.
- Diverse Economic Activity: Freeport hosts various industries, including ship repair services, logistics, manufacturing, pharmaceuticals, and tourism.
- This potential to significantly boost the local economy is a reason for optimism and hope.
- Chinese Investment: The Freeport Container Port has seen substantial investment from Chinese backers, benefiting from increased regional shipping and trade.
- What must surprise the GBPA oligarchs is that the report stated that “ Freeport is administered and regulated by a private organisation known as the Grand Bahama Port Authority. In conjunction with the Bahamas Government, the Grand Bahama Port Authority has engaged in the best possible give-and-take relationship with private enterprises, creating a thriving city with more than 52,000 people.”
So, where are these rumours of government interference coming from? The reality is that having been allowed to manage Freeport as their private fiefdom and extract its riches, the oligarchs are finally faced with a government with the will to make them account for their stewardship and pay the agreed-upon funds under the HBCA extension. Whether the government’s arbitral team has the same will and commitment remains to be seen.
The reality is that GBPA’s continued neglect and degradation of Freeport appear to be a deliberate strategy aimed at achieving an opaque goal. Any right-thinking person cannot arrive at a different conclusion.
As I stated earlier, it is imperative that the GBPA, as the entity responsible for the advanced state of neglect in Freeport, funds its resolution. We, as a community, should support the government’s stance on this matter.
Sincerely.
Michael J. Brown
