MEMBER OF PARLIAMENT

7.A Bill for Act to Amend the Financial & Corporate Services Provider Act, 2000.

I rise once again on behalf of my extended family, the faithful and loyal constituents of the Grants Town Constituency, to contribute briefly to the Amendments on nine pieces of the Financial Services Legislation.December 2000 was a very hectic period for some members of the ancient and honorable Parliament.

Madame Speaker, the record will show and indeed the Government will confirm that it rushed at breakneck speed and passed a slew of bills in December, 2000.Incomplete Bills were tabled and countless Amendments were made.Never before in my almost twenty years in this place did I experience such an approach taken to passing laws in our Bahamas.The Opposition strongly warned the Government that it was moving too hastily clearly operating with a gun to its head against some timetable fixed by some very powerful people.The Opposition was ignored and dismissed as lacking in wisdom and knowledge.

Madame Speaker, here we are today, some eighteen months later, and this so called wise, but arrogant, Government is eating crow big time.Not a single word of apology after causing so much damage to our second industry.The lives of so many of our people were turned upside down, many are still spinning, many are angry with this Government for they have lost their good paying jobs.Many know that the Government could have dealt with these changes in a different manner.Rather than their way only, and the hell with any other way.

Madame Speaker, we all know or should know, the very but well known adage, that haste makes waste, it best summarizes the reason why this Parliament is meeting today to address the numerous additional amendments to the Financial Services Legislation.The year 2000 has established a record as being the year for the largest number of Amendments to Bills after second reading in this Parliament since its was established in 1729.

Madame Speaker, history will condemn Hubert Ingraham’s FNM Government’s poor and disastrous handling of the Black Listing of the Bahamas Financial Services.

For the benefit of my Bahamian brothers and sisters, I must tell you that despite all they have said of the former PLP Government, the Bahamas was never blacklisted during the PLP’s tenure as Government.

Madame Speaker, this Government record in many areas has been one disaster after another.Take an example, the FNM Government handling of Bahamasair.After spending millions of dollars of the taxpayers’ hard earned monies, what has been the performance of Bahamasair under the watch of the lame duck Prime Minister and the so called highly educated and visionary members of the FNM Government?

Madame Speaker, under the FNM’s watch, in nine years Bahamasair has lost $135 million dollars.On average it works out at $15 million per annum.

During 19 years of the PLP Government, Bahamasair lost $100 million dollars.On average it works out at $5,264,000 per annum.

Madame Speaker, the average loss per annum of Bahamasair by the FNM is almost three times as much as was the PLP’s tenure.

Madame Speaker, this is but one example of massive mismanagement of the country’s affairs by this inept, corrupt Government.

Madame Speaker, on the subject of blacklisting.Under the FNM Government’s watch, one blacklisting was not sufficient.We were then burdened with yet another.Thanks to the indecent and colossus mismanagement of our Aviation Services and Nassau International Airport, we were again blacklisted.Yet another black stain on our small nation!

Instead of receiving better – better, internationally our reputation as a nation has instead been negatively stained and further darken the Bahamas’ reputation, thanks to gross mismanagement by our lame duck Prime Minister and his band of weak and spineless ministers.

Madame Speaker, the blacklisting of our Aviation Services is contributing to new levels of losses for Bahamasair.

Bahamasair is unable to acquire any additional aircrafts following the downgrading of our Aviation Services, hence they are obliged to enter into wet lease arrangements for needed aircraft.Such leases provide the crew, the aircraft, etc.Wet Leasing is not cheap, on the contrary, it is expensive.Wet Leasing, Madame Speaker, has resulted in the under utilization of pilots, crew, maintenance staff, etc.

Pilots, cabin staff, maintenance staff are being paid regular staff pay, but are being substantially under-utilized.Taxpayers’ monies are being fritted away.

Monies that can be utilized to pay decent wages to nurses, Air Traffic Controllers and other underpaid civil servants are being poured into Bahamasair’s endless pit.Madame Speaker, if this Government had any shame, it would have resigned over its failed management of Bahamasair.The cold facts are that this Government has no shame.

Madame Speaker, whilst the Bahamas is paying the heavy price for the blacklisting of our deficient Aviation Services, the Government

in its brilliance, places the lives of the flying public at risk and engages in illegal union busting of the Air Traffic Controllers’ Union.It is dumb and unbelievable that this Government refuses to sit down and to conclude negotiations of an agreement with the Air Traffic Controllers’ Union.Has the entire Government gone mad like it’s leader?

Madame Speaker, a very, very, very, sad event occurred on the evening of July 7^th, 2001, which brought further darkness to our land.It was a big black stain that will never be removed from the annals of our history.It occurred because of the Government’s inaction.They were asleep at the wheel.One of our Bahamas’ finest nurses was murdered whilst on duty at the Princess Margaret Hospital.

Madame Speaker, I have followed the comments and statements of the Government since the mafia style murder of Miss Joan Lunn, and I find it inhuman that there has not been a word of regret publicly by any Cabinet Minister to Miss Lunn’s Family and her colleagues in the nursing profession.Madame Speaker, does this Government have ice water running through its veins, when it comes to members of the nursing profession?What I find to be nauseating is that we have a senior health care professional as Minister, who understands fully the role of nurses in his chosen profession, yet he appears to be the nurses greatest critic.Madame Speaker, the lack of proper security at the Princess Margaret Hospital was totally and absolutely the fault of this FNM Government.The question is on whose lands should the murder of Ms. Lunn be laid?I say without hesitation that those who are Cabinet Ministers must look in the mirror and their in lies the answer.If there is a clear cut case on which the Minister of Health must resign, this is one, but is not to be, as he is totally loyal and sub-servant.One remembers well his offer to dry the feet of his leader, after disembarking a seaplane in the Exuma Cays where all were required to take off their shoes and socks.I could just visualize him saying I will do anything to be around the seat of power.Some people may even choose to be boot lickers.

I do acknowledge that it is any Minister’s right to be a boot licker but don’t go around claiming to be a real man if in fact you are nothing more than a high price one.

The Opposition will this week lay open wide the black eye at the Princess Margaret Hospital and the failure of this Government to take action after resting on their laurels for many years.

The Government led the Opposition and the Bahamian people to believe that the new financial legislation had been benchmarked according to similar legislative initiatives in competing jurisdictions.

None other than the lame duck Prime Minister assured the industry and assured Bahamians that the various new pieces of legislation would not put the Bahamas at a competitive disadvantage.

My Leader in a recent speech to the Rotary Club of West Nassau accurately stated “Nothing however, could then – or now – have been further from the truth.” The Member of Parliament for Centreville continued, “The truth is that our Bahamas, by its new laws, has gone a great deal further than anyone else as a result of the Ingraham Government’s anxiety to appease the Financial Action Task Force (FATF) and the Other Foreign Aggressors.

We have enacted legal restrictions and regulatory controls that are nowhere else to be found with such severity – not in any other offshore jurisdiction and most certainly not in the United States, Canada, the United Kingdom, France or Germany.

The bottom line is this:the new legislation, especially the Financial Transactions Reporting Act, now makes it considerably more difficult to carry on legitimate, I repeat legitimate banking business in The Bahamas than in any other jurisdiction in the offshore world.

Bankers, trust companies, mutual fund administrators, corporate service providers, money-managers, investment advisers and ordinary bank customers will all tell you that in the short space of six months The Bahamas has been transformed into the most difficult place in the world to open a bank account or to engage in any other type of legitimate financial services activity.

Our banking system has become over-regulated.It is now in danger of asphyxiation from red-tape and overly intrusive oversight.

Operating costs for financial institutions have skyrocketed as a result of the new compliance requirements:compliance personnel have had to be re-designed; and rather than attending to the legitimate banking needs of more of their time interrogating their customers.Bankers are no longer just bankers.The new financial services legislation has turned them into policemen who have to spend more time policing and patrolling and investigating than attempting to the business of banking for which they were trained.

What was ostensibly intended as a package of measures to curb money-laundering and bring greater ethical discipline to banking and financial practices has instead turned into a hellish nightmare in which honest, hardworking, law-abiding citizens are made to feel like common criminals when they go into the bank they have done business with all their lives.

Madame Speaker, the promulgation of the Financial Transaction reporting regulations by the Minister of Finance in the exercise of the powers conferred by Section 50 of the Financial Transactions reporting Act 2000 was a nightmare visited upon the lives of decent hardworking, honest Bahamas, the young, the not so young and even the retired.

Madame Speaker, I have heard so many horror stories of the humiliation Bahamians have experienced in making bank deposits and attempting to open a bank account.Thinking Bahamians are asking why they are being humiliated in their own country.They tell me that right now as I speak a Bahamian opening a bank account in Miami does not undergo the same level of screening in Miami, Florida, as he or she does in our Bahamas.Thinking Bahamians are saying the US Government and its allies put a gun to our Government head demanding certain disciplines be put in place for Bahamians, but do not require the same for Bahamians who put monies in banks in the USA.

Madame Speaker, last Saturday at Fish Fry a Bahamian mechanic told me his experience on attempting to deposit a $12,000 asue draw.The bank officer demanded that he get the coordinator Of the asue on the phone.The Officer drilled the asue coordinator for some twenty minutes.He told me he was humiliated as he was a customer of that bank for a number of years.

Madam Speaker, Bahamians are asking what is the government going to do to remove the humiliation from the daily lives of its honest, hardworking citizens.In the words of our lame duck Prime Minister “Some concerns have been expressed by providers of financial services and by members of the public over requirements on opening new banking accounts and facilities” etc.

Madam Speaker my information is that there is a great deal of concern.Our lame duck Prime Minister claims that some of these are legislative while others result from mis-application of the law by some financial institution.

Madam Speaker our domestic banking sector operates under an umbrella organization.I find it difficult that there could be mis-application of the law by some financial institutions and not all.I also find it strange that domestic banks would fail to get legal advise and would be caught up in the mis-application of the law.

Madam Speaker as regard the lame duck Prime Minister invitation to the Opposition to submit our views and recommendation on amendments to the financial transaction reporting regulations the Opposition views were not sought when the regulations were promulgated so why do you now seek our view now that their has been a backlash from thinking Bahamians and the banking community.My brother you dug the hole, you must get yourself out on your own as best you can.

Madam Speaker to the Bahamian people I wish to state the PLP’s position.New PLP government will immediately review the new financial services legislation and ensure that amendments are made (a) to rip out all unconstitutional features that presently appear; (b) to streamline and reduce the paperwork requirements that apply under the Financial Transactions Reporting Act; and (c) to ensure that there is a level of playing field with our competitors in all material respects, and multinational cooperation in the fight against drug trafficking, money laundering and other serious crimes, we will follow a policy of non-cooperation in relation to the enforcement of the tax laws of other countries.

COMMONWEALTH BANK SERVICE CHARGE

Madame Speaker, whilst visiting the Commonwealth Branch a few months ago I picked up a copy of that bank’s service charge changes which became effective November 1, 2000.

I can continue to keep a watching brief on our highly profitable domestic banking section.

Madame Speaker, a review of the Central Bank annual report for the year 2000 disclosed that the net interest spread continued to increase over the previous year 1999.Again, Madame Speaker, despite this Government’s promise in 1994, more than seven years ago, to address the excessive level of profits, they have not lift a finger to remove the burden from the backs of poor Bahamians.

Madame Speaker, I now bring to attention of this Parliament, and the Bahamian people that service charges are being increased and new service charges have emerged.Commonwealth Bank has introduced new sundry charges under the umbrella currency – bought/sold for cash.

Deposit of Bahamian dollars of $10,000 and higher now attract a fee of 1% minimum $100 on foreign currency bought/sold for cash deposit of foreign currency of $5,000 now attract a fee of 1% minimum $500.

Madame Speaker, I am advised that it is against the law for banks to charge its customers for what amounts to counting cash.All such fees charged should forthwith be returned to customers so charged.Further, Madame Speaker, any other banks who have engaged in such illegal practice should do likewise.

Madame Speaker, I take this opportunity to again request the lame duck Prime Minister to table the cost of his travel to the USA and Europe regarding the blacklisting of The Bahamas.

Madame Speaker, it appears that accountability has flown the coop under this tired, worn out Government.

I also call on the Government to answer all long overdue questions on Parliament’s Agenda many of which have been on the agenda for more than a year.(READ QUESTIONS)

a.Madam Speaker there is darkness all over our land which go directly to the heart of the FNM Governance.I cite for example the fiasco of the Poinciana Hill House – Government office complex which straddles three streets, Delancy Street, Augusta Street and Meeting Street.

Madam Speaker it is a beautiful edifice painted pink and white with a super view of the entrance to Nassau Harbour.This building was funded by National Insurance Board monies generated mainly by contributions of ordinary Bahamians.The building was designed by the Architects of Alexiou and Associates, the general contractors were the well known firm of Mosko’s United Construction.

Madam Speaker on the surface to the casual observation all seems to bee well with this project.Having been born just a few hundred feet down the hill from this project in fact my navel string was buried there and was the site where I built my first home many years ago.My Rotary club meets every Thursday at the Buena Vista Restaurant located on the other side of Augusta Street.For some years now I have watched Poinciana Hill House emerge from its foundation to what on the surface appears now to be the finish product.

Madam Speaker, information is that not only is Poinciana Hill House is terribly behind schedule someone has screwed up big time.If what I was told is true it speaks volume of criminal negligence on the part of this outgoing FNM government.

Madam Speaker, I am told that arrangements were well in hand for the relocation of government offices to the be building when someone suddenly discovered that no provisions were made for telephone communication systems.I was speechless.

I am now told it will take millions of dollars to correct this unbelievable oversight.National Insurance monies used to build this edifice which would have been better utilized for mortgage lending for badly needed housing for poor Bahamians.

Madam Speaker the indecent management by this outgoing FNM government should be now well known to the Bahamian people.or as the Bahama Journal puts it “This FNM government is scandalously spent thrift with public resources.

b.Madam Speaker there are black eyes of various kinds going on around our land many with the complicity of the members of Parliament.I cite as an example Long Island which has been represented by the Honorable James Knowles for some 24 years.He currently serves as Minister of Agriculture and Fisheries.

During a visit to Long Island I was taken to a hilly area in Deadman’s Caywhere a massive removal of soil and sand had taken place and in fact still currently going on.Massive denuding of land in Long Island Madam Speaker, why is the land being denuded in Long Island?The answer is simply for profit – greed.

Madam Speaker, I have noted from the May 2001 edition of the Long Island Mail that the question of the removal of soil was raised in the editorial page.The answers have not been forthcoming.My investigation disclosedthat rich soil and sand was barged and sold to the developers of Moesha Cay in the Exumas.My further information is that a company trading under the name of Rowdy Boys owned by well known supporters of the Honorable James Knowles and the FNM.

The land I am told is crown land.Madam Speaker, the question is who gave approval to this new Black Eye on Long Island.Madam Speaker, someone is getting rich at the expense of serious ecological damage to Long Island land.If permission was granted, who gave it and on what basis if not what did the twenty-four year MP know and why did he fail to act.

How much money was made from this massive stripping and gouging of Long Island and who were the financial beneficiaries?What action is government going to take?Will the government now issue instructions for the massive raping of Long Island sand and soil?This must stop now without further delay.

Madam Speaker, I indicated that I will be brief, I wish to conclude by referring to Ms. Nicki Kelly’s column of yesterday, July 17, 2001 wherein she highlighted “The Bahamas must also cope with the repercussions on its financial services sector from the government’s new and highly-restrictive laws designed to satisfy the demands of the G7 countries.These regulations exceed those in any other jurisdiction, and certainly any in force in the G7 countries, raising the possibility of a serious contraction of the industry.Delays is dealing with court cases arising out of the new legislation are also likely to affect confidence in the Bahamas as a financial services jurisdiction.For Example, the supreme court has still to rule on action brought by Suisse Security Bank and Trust against the Central Bank, even though the hearings were concluded two months ago”.

Madam Speaker, our courts must move more swiftly if we are to maintain whats left of our depleted financial services sector and finally Madam Speaker, the FNM government has essentially dismantled bank secrecy because of its desire to comply with some concept of “Global best practices”.The government did so without consultation with local practitioners because in the words of the Prime Ministers they were “crooks” shielding gangsters, when the Bahamas only wished “clean business” to remain in our banks.

Madam Speaker, in contrast the US government is at least open to active lobbying by relevant practitioners in that country, and the practitioners make no apologies for seeking to help their oversees clients maintain their privacy.I wish to share with this Parliament an article which appeared in a recent wall street journal under the by-line “Treasury to reconsider rules on banks’ reporting on foreigners”.

Madam Speaker, it is more than obvious that forward thinking Bahamians be allowed to take the Bahamas to another level.Our lame duck Prime Minister and his colleagues have failed to protect the sovereignty and the vital interest of the Bahamas.It is time for them to go.