This information is derived from the State Department's Office of Investment Affairs Investment Affairs' Investment Climate Statement. Any questions on the ICS can be directed to EB-ICS-DL@state.gov
Last Published: 9/27/2016

Some U.S. companies have alleged a lack of transparency and undue political influence with government bidding and procurement processes.  There is no requirement to engage in open public tenders, and award decisions are not subject to review.  These processes are governed by the Public Procurement Act and the Financial Administration and Audit Act of 1973.  A Government minister can approve any purchase up to $50,000; purchases of equal to or greater than $50,000, but less than $250,000 must be approved by the tenders board, chaired by the Minister of Finance; and amounts exceeding $250,000 require Cabinet approval. 

The Government has implemented procurement procedures in the management of funds from international lending agencies, but has not yet implemented best international practices for the management of national finances.  In several highly publicized requests for proposal, the Government has not met self imposed deadlines and contract renewals have been pending for 12 months or more.

Successive governments sometimes review contracts executed by previous administrations, although government officials assert that the majority of contracts are not reviewed or altered in any way.  However, the Embassy is aware of instances where contracts have been cancelled.  Other areas of concern noted by companies include the discretionary issuance of approvals and licenses from various government authorities.  Companies complain that in some instances these approval processes can be opaque with no possibility for review or appeal of a decision.

The Bahamian government has publicly committed to modernizing and reforming government procurement.  The review of the procurement process is being financed by the Inter-American Development Bank, and will include the transition to program-based budgeting and the creation of an integrated financial management system to collect statistics, oversee the procurement process, and perform evaluation and monitoring functions.

Public companies listed on the Bahamas International Securities Exchange (BISX) are required to prepare annual and quarterly financial statements in conformity with International Financial Reporting Standards (IRFS).

Draft legislation, in general, is subject to a public consultation process.

The Bahamas has recently established a national standards bureau and is receiving technical assistance from the Bureau of Standards of Jamaica, the Caribbean Regional Organization for Quality and Standards, and the European Union Development Fund.

Despite calls by some Bahamian government officials to permit international law firms to establish business operations in The Bahamas, particularly to serve the securities and financial services sectors, the bar association to date has resisted a further opening of the legal profession in the country, citing immigration concerns.  (This is distinct from the practice of permitting international lawyers to engage in litigation in special cases or to practice in areas where expertise is lacking.)

According to Transparency International’s 2014 Corruption Perceptions Index, The Bahamas ranked 24 out of 175 countries with a score of 71 out of 100.  The country is not listed in the 2015 Index.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.