- Government introduces reforms via House of Assembly.
- The House of Assembly debated the management and oversight of the National Investment Fund (NIF), which was established by the Davis administration.
National Investment Fund Stalled Due to Board Meeting Issues in The Bahamas
What happened
The establishment of the National Investment Fund is stalled due to financial mismanagement and the lack of board meetings. Although Minister of Finance Michael Halkitis stated that $700 million in excess borrowing was transferred to the fund in May, correspondence revealed the NIF board of directors has never convened. Under the NIF Act, the Central Bank cannot approve a custodian bank or establish an account until the board meets.
Why it matters
Former Financial Secretary Marlon Johnson stated that the confusion surrounding the National Investment Fund could negatively impact The Bahamas’ international reputation. He expressed concern that credit rating agencies or bondholders might see their confidence erode in government records.
The House of Assembly has been debating the management and oversight of the National Investment Fund, which was established by the Davis administration, and the government is introducing reforms via the House of Assembly.