Laing Denies Wrongdoing

The minister spoke on the matter in the House of Assembly Thursday night, just over two weeks after St. Thomas More MP Frank Smith asked him to say whether he used his position to secure a lower rate for the Brazilian berry drink Monavie.

Mr. Smith asked Mr. Laing on February 13 to confirm or deny that approval was given to the revenue secretary to direct the Department of Customs to ignore the International Customs Organization’s designation of Monavie, which placed it and other similar products in the 45 percent customs duty category, and place the product in a category which attracts customs duty of 10 percent.

"The tenor of his assertions was that I did something untoward in relation to the drink and customs rate to achieve some advantage for some family member," said Mr. Laing, who added that it is wise to sometimes ponder one’s answer before responding immediately so that answer cannot be misconstrued.

He said he was not trying to avoid answering the question and welcomed the opportunity to do so.

Minister Laing said that in September his brother, Tyrone Laing, telephoned him and said that the Department of Customs had altered "overnight" a rate that was being charged on the Monavie drink, from 10 percent to 45 percent.

Minister Laing said his brother asserted that someone with a competing product used a contact in the department to have the rate change.

"My immediate response to him over the telephone was that, you know what, this is a matter that involves family. I really would prefer to stay out of it and I detected the disappointment in his voice and then I hung up the phone," the minister said.

"And then I thought to myself that it cannot be right that someone would use a contact in Customs to have in an unusual manner a rate changed in Customs to achieve some advantage and that I do not at the very least have the matter looked into because the complainant to me was a relative."

Minister Laing said he spoke to the secretary of revenue and asked him to look into the matter.

"In reporting back to me within the same day the secretary of revenue said he contacted the customs department in Freeport and that they advised him that the rate had been changed – this was in September – and that he said to them that it was not the practice of the Ministry of Finance to change customs tariff rates in mid year, that the rates are changed – if they have to be – during the budget exercise," he told parliamentarians.

Minister Laing added that he thought that was a reasonable position, but it turns out it wasn’t the end of the story.

He said the then Comptroller of Customs John Rolle wrote a letter saying the World Customs Organization’s rendering of the classification of the Monavie product meant that it should be in a higher rate category.

Minister Laing said the comptroller’s decision to place the product in a higher rate category never came through the Ministry of Finance, and ministry officials agreed that rates will not change in mid year.

The minister said instructions were given to maintain the rate at 10 percent, and take the matter up at budget time.

Minister Laing stressed that he sought to give no advantage to any family member.

"I want to assure this House that I did not at anytime in anyway seek to give any advantage to any family member or anyone in relation to any product," he said. "For me the matter was that there had been a rate change complaint and that the complaint spoke to the customs department doing this change what they called overnight and I had the matter looked into."

The minister said he has spent the bulk of his adult life striving to do what he believes is right.

"I’m not perfect," he added, "but I did give my life to the Lord Jesus Christ many years ago, striving to follow his practices and his teachings. I value that. I value it tremendously. I’ve put in the public record of this country things that most men in the Commonwealth of The Bahamas would not dare to say because I value my sense of duty to the beliefs I hold."

Minister Laing stressed again that nothing in respect of this matter could be further from the truth to suggest that he did anything inappropriate.

He also said the Department of Customs has no authority to change a customs rate.

"It has never been the practice of the customs department to change a rate without reference to the minister of finance or the Ministry of Finance," said Minister Laing, adding that the issue will have to be further explored by officials.