MPs Debate Transferring $17M From Dormant Accounts to the Disaster Emergency Fund

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NASSAU, BAHAMAS – Prime Minister Philip Davis moved to pass a resolution in Parliament today, authorizing the transfer of $17 million from dormant accounts to the Disaster Emergency Fund.

The nation’s leader told Parliamentarians that capitalizing on these funds now could reduce potential losses by 45 percent over the next decade.

Leading today’s debate, Davis stressed that disaster preparation, funding, and infrastructure must be proactive, sustained, and robust enough to meet the growing threats The Bahamas faces.

“We are funding risk analysis, which allows us to know the extent of the risks we face. We are funding risk reduction, so we can take decisive, proactive action to minimize damage before it occurs.  We are funding risk preparedness, so we are ready when storms arrive. And we are funding our response capabilities, so we can act in those critical first hours,” said the Prime Minister.

He added that the government is also investing in rehabilitation and recovery efforts to ensure communities can “build back stronger than before.”

The new strategy, developed by the Ministry of Finance, in consultation with the Disaster Risk Management Authority and supported by the Inter-American Development Bank, recommends a layered approach to financing disaster resilience.

According to Davis, the country’s disaster funding framework currently includes:

• The Caribbean Catastrophic Risk Insurance Facility is valued at $50 million,
  A National Credit Line worth $150 million, A Contingent Credit Facility valued at $100 million,
  A Disaster Prevention Fund of $6 million, and the DRM’s annual budget allocation of $60 million.
  

For risks beyond those layers, the government has access to loans and other financial instruments totaling $251 million.

The Prime Minister explained that the $17 million transfer will come from dormant account proceeds held by the Treasurer, now part of the Consolidated Fund, and redirected to the Disaster Emergency Fund.

“These dormant accounts are essentially unclaimed resources that can now serve a national purpose, resources that were sitting idle can now be used to invest in our future and serve as the first line of defense when disaster strikes,” Davis said.

He added that regulations and operating procedures are being finalized to ensure proper oversight of the fund.

“The regulations will clearly outline what the funds can be used for, how unused funds can be invested to grow the fund, what will activate their use, and the appropriate steps that must be taken to ensure accountability,” he said.