GBPA and its investor confidence metaphor

Dear Bahamas News Agency,

In the Nassau Guardian of August 21, 2024, GBPA Executive Director Rupert Hayward stated that the bitter public battle between the Davis government and the Grand Bahama Port Authority (GBPA) has affected investor confidence on the island. Of course, this means that investor confidence is driven solely by PLP policy and has nothing to do with Freeport’s neglect and GBPA’s breach of the Hawksbill Creek Agreement (HBCA).

So, what is investor confidence? Why does the GBPA always bring up this metaphor whenever it can’t put pressure on the central government to get what it wants? Investor confidence refers to the willingness of investors to participate in financial activities based on their perception of risk and expected returns. It consists of two main elements:

1. Investor Optimism: Investor optimism refers to a positive attitude towards the risk and potential returns of their investments. This reflects the investor’s belief that their investments will generate a decent return.
2. Investor trust involves investors’ confidence in the fairness and integrity of financial markets, including the protections that protect them from fraud and other misconduct.

Despite Mr Haywards’s statements to the contrary, under the HBCA, the GBPA has a duty to create an atmosphere in which investors can invest with confidence, while the government has a duty to protect its citizens from dubious investors such as Oban.

Despite the smokescreen and conspiracy theories used by the GBPA and its subservient FNM MPs, the US State Department’s 2023 Investment Climate Statement on Freeports contains these disclosures, which contradict Mr. Hayward’s misleading statement that “Grand Bahama Freeport has attracted significant foreign investment due to its strategic location and Free Trade Zone status”. Here are some highlights:

1. Strategic Location：The Freeport is strategically located at the center of major international trade routes and is a hub for global commerce.
2. Tax Benefits: The city offers a variety of tax benefits, including exemptions from income tax, capital gains tax, real estate tax, and import and export duties.
3. Diversified economic activities: The freeport hosts a variety of industries, including ship repair services, logistics, manufacturing, pharmaceuticals and tourism.
4. This potential to significantly boost local economic development gives rise to optimism and hope.
5. Chinese Investment: Freeport container terminal receives major investment from Chinese backers, benefits from growth in regional shipping and trade.
6. To the surprise of the GBPA oligarchs, the report states that “Freeport is managed and regulated by a private organization called the Grand Bahama Port Authority. The Grand Bahama Port Authority, in partnership with the Bahamian government, has established the best mutually beneficial relationships with private industry to create a thriving city of more than 52,000 people.”

So where do these rumors of government intervention come from? The fact is that the oligarchs who were allowed to run the freeport as their private fiefdom and extract wealth are finally facing a government that is willing to hold them accountable for their management and to pay the agreed funds on a deferred basis under the HBCA. Whether the government’s arbitration team has the same willingness and commitment remains to be seen.

The fact is that GBPA’s continued neglect and undermining of Freeports appears to be a deliberate strategy to achieve opaque objectives. No reasonable person would come to a different conclusion.

As I have said before, GBPA, as the entity responsible for Freeport’s gross negligence, must provide funding to address this issue. We, as a community, should support the government’s position on this issue.

Sincerely.

Michael J. Brown