Bahamas: Contractors Not Being Paid
There are several inter-related reasons why contractors working for the Progressive Liberal Party government (PLP) of the Bahamas are reporting delays or non-payment. Some are structural/government-system issues, others are more situational. Here’s a breakdown:
✅ What is known
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In June 2021, the PLP’s own chairman, Fred Mitchell, stated that the government “appears to be unable to pay its bills … the glaring fact is that they are unable to pay the contractors.” He cited several unfinished projects where contractors, engineers, and architects were still owed money. Bahamas Chronicle
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A protest by independent contractors at the Office of the Prime Minister highlighted that some contractors had not been paid “for services rendered as far back as last summer.” They claimed many involved were from the Bahamas Public Parks & Public Beaches Authority. Our News
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The government has failed to publish a full report on government contracts and procurement in a timely fashion. Bahamas Local
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Procurement and contract monitoring frameworks appear to be weak or inconsistently applied (e.g., absent Contractors Board, oral contracts, lack of oversight) in the construction sector. Tribune 242
🛑 Key factors contributing to the payment delays / non-payments
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Cash-flow / budgetary constraints
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The statement by Mitchell indicates that the government simply lacks the funds (or prioritises other expenditures) to meet contractor obligations: “unable to pay the contractors.” Bahamas Chronicle
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If payment obligations accumulate (contractors not paid, bills piling up), it creates backlog and further delays.
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Procurement & contract management weaknesses
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Some contracts reportedly awarded orally or without full written documentation. Tribune 242
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Lack of transparency and oversight in procurement (for example, agencies not uploading required data) slows the contract-to-payment cycle. Bahamas Local
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If contracts are not properly documented or approvals not completed, ministries/agencies may be reluctant or unable to release payments.
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Inadequate systems / internal controls
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The government has publicly acknowledged problems with financial management systems (for example payroll) which suggests broader systemic issues in managing government payments. CNW Network+1
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When systems are weak, processing payments (verifying work done, agreements, invoices) becomes slow or stalled.
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Unclear roles/responsibilities & “straight-through” processes lacking
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Contractors reported that the agency in question (Parks & Beaches) had many contractors and was oversubscribed. One audit flagged serious contract-oversight failures (e.g., multiple contracts to same individual, missing documentation) in that Authority. Reddit
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When there are many contractors and limited controls, the backlog builds and payments get delayed.
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Political / election-timing pressures
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The audit in the Parks & Beaches Authority suggested that an additional ~$21 million in obligations was taken on “in the months leading up to the … general election”– which suggests that politically-timed contract awards may have been made without full planning for payment. Reddit
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This can lead to situations where the work is done (or partially done) but the budget or payment mechanism is not ready.
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🔍 Why this appears especially acute now
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The combination of tight government finances, increased demand for infrastructure and services, and legacy systems that aren’t equipped to handle large volumes of contracts means many smaller contractors end up waiting longer for payment.
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Smaller contractors are often more vulnerable: they may have paid subcontractors, bought materials, undertaken work on expectation of payment, and when the government delays payment their cash-flow suffers.
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Lack of transparency: Without regular public disclosures on contract status, payment status, agencies’ obligations, it’s harder for contractors to understand where they stand and to press for payment.
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When contracts are not properly documented, ministries may delay payment until contracts, invoices, inspections, sign‐offs are all verified—which may take months.
🧭 What contractors (or watch-dog bodies) might look out for
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Ensure there is a written contract with clearly stated deliverables, payment terms, timeline and sign-offs. If work was done under an oral or loose agreement, payment risk is higher.
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Check whether the contracting agency has properly executed the contract (approvals, sign-offs, documentation) and that the work has been formally accepted/verified.
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Monitor payment status: if work was completed and verified, ask for official sign-off and invoice submission. Delays may often be due to missing documentation rather than “government refusing to pay” per se.
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Keep a record of communication with the agency, submission of invoices, any sign-off certificates, etc.—this helps if you need to escalate.
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Consider whether the agency falls under a ministry whose budget is under pressure; bigger ministries might have more capacity to pay, smaller ones less so.
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If delays are excessive, consider engaging legal counsel or contractor advocacy groups to explore remedies (though for public sector payments this can be complicated).
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Advocate (via industry associations) for stronger procurement and payment-systems transparency so that payment delays become less frequent.
©A. Derek Catalano/ChatGPT
