In many instances business interests are so intertwined it will be seen that a goodly number of the same people are associated with multiple business concerns and sit on several boards of directors. In quite a number of situations there will be conflicts of interest that will largely be of no interest to the vast majority but for some people what may only appear to be a conflict can really cause quite a stir.
That has been the case of Hannes Babak, the man appointed chairman of the Grand Bahama Port Authority on June 1 to replace Julian Francis, who resigned the position at the end of May οΎ— one year to the day after taking up the position. A number of other significant resignations followed Mr Francis including President Willie Moss and Executive Vice President Barry Malcolm.
In the almost four months that he has headed the GPBPA, Babak has been accused of a conflict of interest several times, firstly because the company he owned H & F Babak Construction Company is a licensee of the Port Authority and although he had removed himself from the daily operation of the company, he was still a beneficial owner.
Babak is now seeking to completely sever ties with the construction company and will sell all his interest in the thriving business at “great personal loss,” just to avoid the perception of conflict of interest. Mr Babak will go even further and cancel an $8 million contract that was negotiated between the construction company and International Distributors of Grand Bahama Limited, before he was appointed to head the Port, and could not have been a conflict of interest.
“As a result of these issues, and of my desire to serve in the best interest of the people of Grand Bahama, without being distracted by such allegations, I have come to the conclusion that H & F Babak Construction Company will not continue with the contract and have therefore written to the attorneys for International Distributors of Grand Bahama Limited to request that H & F Babak Construction be released from the contract with immediate effect.”
That may or may not have been an easy thing to do, depending on who is looking at it and how it is perceived. Babak will be out of pocket some additional money because he will indemnify the food distribution company for any losses suffered by the termination of the contract.
By all accounts Babak has acted with integrity in stepping away from the construction company and throwing his lot in with the GBPA. It has nothing to do with origins or colour, but everything to with what is right for the Port’s business community, for Freeport, Grand Bahama, and for the Bahamian people generally.
With all the attendant problems associated with the aftermath of those devastating hurricanes of 2004 and 2005, the closure of hotel properties and the general downturn in business, the GBPA needs the guidance of a strong, focused leader. For the economic resurgence of Freeport and Grand Bahama, there is the need for a decisive person who will be prudent, act expeditiously and champion the cause of the Grand Bahama business community.
Hannes Babak seems to be the man for the times.
Editorial from The Nassau Guardian
