Identifier
Created
Classification
Origin
09NASSAU533
2009-09-09 18:22:00
UNCLASSIFIED
Embassy Nassau
how-toVZCZCXRO1808 RR RUEHGR DE RUEHBH #0533/01 2521822 ZNR UUUUU ZZH R 091822Z SEP 09 FM AMEMBASSY NASSAU TO RUEHC/SECSTATE WASHDC 6634 INFO RUCNCOM/EC CARICOM COLLECTIVE
UNCLAS SECTION 01 OF 02 NASSAU 000533
SIPDIS
E.O. 12958: N/A
TAGS: ECON POL PGOV BF
SUBJECT: NASSAU MONTHLY - AUGUST 2009
REF: 08 STATE 38297
UNCLAS SECTION 01 OF 02 NASSAU 000533
SIPDIS
E.O. 12958: N/A
TAGS: ECON POL PGOV BF
SUBJECT: NASSAU MONTHLY - AUGUST 2009
REF: 08 STATE 38297
1. (U) This is a monthly report on a variety of topics of interest
which do not merit full reporting cables.
-- Cabinet Minister Shuffle Imminent
-- Weak Tourist Industry Results in Wave of Hotel and Resort
Closings
-- Unemployment Rates Skyrocket
-- Customs Department Rife With Corruption
-- Police Arrests Taint Embattled Force
-- Illegal Immigration Media Campaign Targets Haitians in The
Bahamas
-- Labor Union Scandals Continue to Grab Headlines
-- Turtle Protection Act Passes, Angering Fishermen (See Reftel)
-- Miss Universe Pageant A Success Despite Low Turnout
--------------
Cabinet Minister Shuffle Imminent
--------------
1. (U) A possible Cabinet Minister Shuffle is expected as early
reports indicate the Minister of Youth Sports and Culture, Desmond
Bannister, and the Minister of State for Lands and Local Government,
Byron Woodside, may step down. Media reports indicate that Sidney
Collie could replace either Bannister or Woodside. Collie had
previously resigned as the Minister of Lands and Local Government in
the wake of a local government election scandal. Media reports also
indicate the Prime Minister may move the Minister of State for
Social Services, Loretta Butler-Turner and Minister of State for
Public Utilities, Phenton Neymour. The rumored shuffle was reported
as a "traditional half way" shuffle.
--------------
Weak Tourist Industry Results
in Wave of Hotel and Resort
Closings
--------------
2. (U) The tourism industry continued to suffer this month as
several hotel chains and resorts closed. The Wyndham Nassau resort
will close between August and October for refurbishments and hotel
upgrades. This period represents a traditionally slow operating
period for hotels. The Port Lucaya Resort and Yacht Club on Grand
Bahama announced 29 layoffs due to the economic down turn. In
addition, the Riu Paradise Island hotel announced it would close for
three months, leaving 300 employees out of work. Guest complaints
about the quality of the accommodations in addition to dwindling
tourism are believed to be responsible for the Riu closure. Further
closures are expected in September.
--------------
Unemployment Rates Skyrocket
--------------
3. (U) The Department of Statistics recently released new
unemployment figures which are significantly worse than the 2008
unemployment rates. The national unemployment rate is now at 14.2%.
The unemployment rate in Grand Bahama is 17.4%. Minister of State
for Finance, Zhivargo Laing, referred to unemployment in Grand
Bahama as "reflective of what we know to be a very bad situation."
Grand Bahama Chamber of Commerce President Greg Moss said the real
unemployment rate is actually much higher because the statistics
released do not account for discouraged workers. Because The
Bahamas relies so heavily on tourism, the significant number of
hotel and resort closures will continue to have a major effect on
unemployment rates.
--------------
Customs Department Rife With Corruption
--------------
4. (U) Sixteen Department of Customs officials face allegations of
bribery, stealing, falsifying documents, evasion of customs duties
and assault dating back to 2001. The 16 officers were suspended
from work with full pay and given 14 days to show cause for why they
should not be dismissed. Public Services Union President John
Pinder accused the GCOB of violating an industrial agreement by
failing to follow proper procedures when it decided to transfer and
interdict nearly 30 customs officers in the sting. Acting Customs
Comptroller Glenn Gomez said rampant corruption existed in the
Customs Department. According to Gomez, 50 of the department's 450
officers were under investigation for some sort of suspected
corruption.
--------------
Police Arrests Taint Embattled Force
--------------
5. (U) Several high profile arrests of police officers have made
headlines in the last month. The officers were charged with various
crimes including extortion, assault, sex with minors and drug
possession. Post is taking note of all such cases for the purposes
NASSAU 00000533 002 OF 002
of Leahy vetting and consular lookouts. These cases come in the
midst of a crime wave in which police have been faulted for not
adequately protecting the public. Chairman of the Police
Association Inspector Bradley Sands pointed to internal management
problems for the lack of police focus.
--------------
Labor Union Scandals Continue
to Grab Headlines
--------------
6. (U) A spate of labor related issues made headlines throughout
August. A Bahamas Hotel Catering and Allied Workers Union election
was nullified by a Supreme Court ruling because it was not
supervised by the Registrar of Trade Unions. The issue is currently
being heard by the Supreme Court to determine the correct date for
holding nominations. Later in the month, an angry mob stormed the
Bank of the Bahamas to demand why Union chiefs had been allowed to
withdraw $500,000 from Union funds without the consent of the
President. Union President Roy Colebrook said he plans to take
legal action. A massive sick out by the Bahamas Nurses Union over a
health insurance dispute resulted in the GCOB announcing it would
prosecute Doctors who falsified sick notes. According to the
Medical Act of 1974, the doctors could face fines, suspension and a
loss of license if found guilty.
--------------
Illegal Immigration Media Campaign
Targets Haitians in The Bahamas
--------------
7. (U) Embassy officials conducted a media campaign to address the
dangers of illegal immigration in response to a wave of illegal
immigrant interdictions and Haitian sloop tragedies. The Embassy
issued a press release after the most recent tragedy off the Turks
and Caicos Islands which resulted in 15 dead and 67 missing. The
press release was picked up by three of the major daily newspapers.
Warning posters were translated into Creole and circulated into the
Haitian community in The Bahamas. EmbOffs also participated in
interviews on several popular radio programs across New Providence
and the Family Islands, including Grand Bahama, Great Inagua, and
Exuma.
--------------
Turtle Protection Act Passes,
Angering Fishermen
--------------
8. (U) The GCOB passed the Turtle Protection Act to ban harvesting
and exporting all species of turtles. Those wishing to use turtle
products for scientific or educational purposes must now apply for a
permit to do so. In response, a meeting was called to address the
concerns of fishermen and others opposed to the ban. The meeting
will reportedly culminate in the creation of a Commercial
Fisherman's Association. The World Conservation Union considers all
sea turtles threatened or endangered. By passing the ban, the GCOB
is now in compliance with its commitments as a signatory to the
Convention on the International Trade of Endangered Species of Wild
Fauna and Flora. Minister of Agriculture and Marine Resources Larry
Cartwright said he believed the overwhelming majority of Bahamians
were in support of the ban.
--------------
Miss Universe Pageant A Success
Despite Low Turnout
--------------
9. (U) Despite lower ticket sales than expected, The Bahamas hosted
a very successful Miss Universe pageant over several weeks in
August. Minister of Tourism Vincent Vanderpool-Wallace said he will
soon disclose how much the government spent on the Pageant.
Opposition parliamentarians have questioned whether the exposure was
worth the cost and whether it was Kerzner International and NBC that
benefitted more than the Bahamian people. Tourism insiders
estimated that a billion people worldwide watched the pageant. The
telecast was interspersed with eight minutes of features on key
tourism attractions throughout the Bahamian archipelago. Vanderpool
Wallace said the telecast alone represented a full return on
investment. The GCOB intends to use the success as a springboard to
lobby to host other major events. Senior Ministry of Tourism
Officials told PolOff that the government's official tourism website
received four to five times the normal number of hits immediately
after the pageant.
ZUNIGA-BROWN
SIPDIS
E.O. 12958: N/A
TAGS: ECON POL PGOV BF
SUBJECT: NASSAU MONTHLY - AUGUST 2009
REF: 08 STATE 38297
1. (U) This is a monthly report on a variety of topics of interest
which do not merit full reporting cables.
-- Cabinet Minister Shuffle Imminent
-- Weak Tourist Industry Results in Wave of Hotel and Resort
Closings
-- Unemployment Rates Skyrocket
-- Customs Department Rife With Corruption
-- Police Arrests Taint Embattled Force
-- Illegal Immigration Media Campaign Targets Haitians in The
Bahamas
-- Labor Union Scandals Continue to Grab Headlines
-- Turtle Protection Act Passes, Angering Fishermen (See Reftel)
-- Miss Universe Pageant A Success Despite Low Turnout
--------------
Cabinet Minister Shuffle Imminent
--------------
1. (U) A possible Cabinet Minister Shuffle is expected as early
reports indicate the Minister of Youth Sports and Culture, Desmond
Bannister, and the Minister of State for Lands and Local Government,
Byron Woodside, may step down. Media reports indicate that Sidney
Collie could replace either Bannister or Woodside. Collie had
previously resigned as the Minister of Lands and Local Government in
the wake of a local government election scandal. Media reports also
indicate the Prime Minister may move the Minister of State for
Social Services, Loretta Butler-Turner and Minister of State for
Public Utilities, Phenton Neymour. The rumored shuffle was reported
as a "traditional half way" shuffle.
--------------
Weak Tourist Industry Results
in Wave of Hotel and Resort
Closings
--------------
2. (U) The tourism industry continued to suffer this month as
several hotel chains and resorts closed. The Wyndham Nassau resort
will close between August and October for refurbishments and hotel
upgrades. This period represents a traditionally slow operating
period for hotels. The Port Lucaya Resort and Yacht Club on Grand
Bahama announced 29 layoffs due to the economic down turn. In
addition, the Riu Paradise Island hotel announced it would close for
three months, leaving 300 employees out of work. Guest complaints
about the quality of the accommodations in addition to dwindling
tourism are believed to be responsible for the Riu closure. Further
closures are expected in September.
--------------
Unemployment Rates Skyrocket
--------------
3. (U) The Department of Statistics recently released new
unemployment figures which are significantly worse than the 2008
unemployment rates. The national unemployment rate is now at 14.2%.
The unemployment rate in Grand Bahama is 17.4%. Minister of State
for Finance, Zhivargo Laing, referred to unemployment in Grand
Bahama as "reflective of what we know to be a very bad situation."
Grand Bahama Chamber of Commerce President Greg Moss said the real
unemployment rate is actually much higher because the statistics
released do not account for discouraged workers. Because The
Bahamas relies so heavily on tourism, the significant number of
hotel and resort closures will continue to have a major effect on
unemployment rates.
--------------
Customs Department Rife With Corruption
--------------
4. (U) Sixteen Department of Customs officials face allegations of
bribery, stealing, falsifying documents, evasion of customs duties
and assault dating back to 2001. The 16 officers were suspended
from work with full pay and given 14 days to show cause for why they
should not be dismissed. Public Services Union President John
Pinder accused the GCOB of violating an industrial agreement by
failing to follow proper procedures when it decided to transfer and
interdict nearly 30 customs officers in the sting. Acting Customs
Comptroller Glenn Gomez said rampant corruption existed in the
Customs Department. According to Gomez, 50 of the department's 450
officers were under investigation for some sort of suspected
corruption.
--------------
Police Arrests Taint Embattled Force
--------------
5. (U) Several high profile arrests of police officers have made
headlines in the last month. The officers were charged with various
crimes including extortion, assault, sex with minors and drug
possession. Post is taking note of all such cases for the purposes
NASSAU 00000533 002 OF 002
of Leahy vetting and consular lookouts. These cases come in the
midst of a crime wave in which police have been faulted for not
adequately protecting the public. Chairman of the Police
Association Inspector Bradley Sands pointed to internal management
problems for the lack of police focus.
--------------
Labor Union Scandals Continue
to Grab Headlines
--------------
6. (U) A spate of labor related issues made headlines throughout
August. A Bahamas Hotel Catering and Allied Workers Union election
was nullified by a Supreme Court ruling because it was not
supervised by the Registrar of Trade Unions. The issue is currently
being heard by the Supreme Court to determine the correct date for
holding nominations. Later in the month, an angry mob stormed the
Bank of the Bahamas to demand why Union chiefs had been allowed to
withdraw $500,000 from Union funds without the consent of the
President. Union President Roy Colebrook said he plans to take
legal action. A massive sick out by the Bahamas Nurses Union over a
health insurance dispute resulted in the GCOB announcing it would
prosecute Doctors who falsified sick notes. According to the
Medical Act of 1974, the doctors could face fines, suspension and a
loss of license if found guilty.
--------------
Illegal Immigration Media Campaign
Targets Haitians in The Bahamas
--------------
7. (U) Embassy officials conducted a media campaign to address the
dangers of illegal immigration in response to a wave of illegal
immigrant interdictions and Haitian sloop tragedies. The Embassy
issued a press release after the most recent tragedy off the Turks
and Caicos Islands which resulted in 15 dead and 67 missing. The
press release was picked up by three of the major daily newspapers.
Warning posters were translated into Creole and circulated into the
Haitian community in The Bahamas. EmbOffs also participated in
interviews on several popular radio programs across New Providence
and the Family Islands, including Grand Bahama, Great Inagua, and
Exuma.
--------------
Turtle Protection Act Passes,
Angering Fishermen
--------------
8. (U) The GCOB passed the Turtle Protection Act to ban harvesting
and exporting all species of turtles. Those wishing to use turtle
products for scientific or educational purposes must now apply for a
permit to do so. In response, a meeting was called to address the
concerns of fishermen and others opposed to the ban. The meeting
will reportedly culminate in the creation of a Commercial
Fisherman's Association. The World Conservation Union considers all
sea turtles threatened or endangered. By passing the ban, the GCOB
is now in compliance with its commitments as a signatory to the
Convention on the International Trade of Endangered Species of Wild
Fauna and Flora. Minister of Agriculture and Marine Resources Larry
Cartwright said he believed the overwhelming majority of Bahamians
were in support of the ban.
--------------
Miss Universe Pageant A Success
Despite Low Turnout
--------------
9. (U) Despite lower ticket sales than expected, The Bahamas hosted
a very successful Miss Universe pageant over several weeks in
August. Minister of Tourism Vincent Vanderpool-Wallace said he will
soon disclose how much the government spent on the Pageant.
Opposition parliamentarians have questioned whether the exposure was
worth the cost and whether it was Kerzner International and NBC that
benefitted more than the Bahamian people. Tourism insiders
estimated that a billion people worldwide watched the pageant. The
telecast was interspersed with eight minutes of features on key
tourism attractions throughout the Bahamian archipelago. Vanderpool
Wallace said the telecast alone represented a full return on
investment. The GCOB intends to use the success as a springboard to
lobby to host other major events. Senior Ministry of Tourism
Officials told PolOff that the government's official tourism website
received four to five times the normal number of hits immediately
after the pageant.
ZUNIGA-BROWN