business@tribunemedia.net
WEDNESDAY, FEBRUARY 22, 2017
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Bran: Landfill could be Baha Mar ‘deal breaker’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Democratic National Alliance’s (DNA) leader yesterday questioned if Baha Mar’s new owner had done proper ‘due diligence’ on its purchase, warning that it “hasn’t seen anything yet” in relation to the New Providence landfill. Branville McCartney spoke out after Graeme Davis, head of Chow Tai Fook Enterprises’ (CTFE) Bahamian subsidiary, indicated he had been taken aback by the pollution and health hazards stemming from the landfill. Mr Davis told a radio show on Monday that he “just recently noticed” the issues created by the landfill, and their potential impact on Baha Mar, whose See pg b4
DNA chief queries CTFE’s ‘due diligence’ quality Warns it has ‘seen nothing yet’ on dump pollution
Doctors yesterday said it was impossible to determine whether National Health Insurance’s (NHI) $100 million budget will be sufficient to cover all the medical services proposed for its primary care phase, as payment rates and provider numbers remain unknown. Dr Sy Pierre, the Medical Association of the Bahamas (MAB) president, told Tribune Business that the main issue with NHI remained “the quality of care” and patient treatment outcomes under the new system,. Speaking after the NHI secretariat this week unveiled the scheme’s draft benefits package, Dr Pierre said it was impossible to tell whether the $100 million budget would be sufficient to finance all the Government is promising. “I don’t know,” he told See pg b4
Branville McCartney
Can’t determine if $100m budget sufficient Project director tells public to pressure physicians MAB chief: ‘Quality of care’ still the key issue
Dr Sy Pierre
AG’s Office reviewing BTC’s sale to Liberty By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A Cabinet minister yesterday said he was waiting for the Attorney General’s Office to complete its review of Liberty Global’s acquisition of the Bahamas Telecommunications Company (BTC) before “re-submitting” it for approval. Khaalis Rolle, minister of state for investments, told Tribune Business that there was nothing untoward or unusual concerning the review, which he described as “standard procedure in a transaction of this magnitude”. “I think it’s just a standard review,” Mr Rolle said
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Port’s profits double on 3,000 TEU jump By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
The Arawak Cay port operator yesterday said a 3,124 year-over-year increase in container volumes resulted in its half-year profits more than doubling, as Hurricane Matthew repairs and Baha Mar’s restart resulted in import activity surging. Michael Maura, Arawak Port Development Company’s (APD) chief executive, told Tribune Business that the increase in container throughput volume had driven increases in all its major revenue lines. The BISX-listed Nas-
Matthew, Baha Mar boost BISX-listed operator ‘Break bulk’ tonnage doubles, vehicles up 10% Aided by $1.5m Baha Mar recovery sau Container Port operator was also boosted by the recovery of $1.5 million in Baha Mar-related rents and storage income, and a 10 per cent increase in vehicle See pg b3
Nassau Container Port
Govt urged to cut ‘30% inefficiency’
Doctors urge: ‘Produce the meat’ on NHI plan By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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Minister waiting to ‘re-submit’ for final approvals Describes review as ‘standard procedure’ of the Liberty deal. “That is still being reviewed by, I think, the Attorney General’s Office prior to it coming back to me to re-present to the National Economic Council (NEC).” When asked how quickly the review process would be completed, Mr Rolle replied: “I cannot say as yet, but I think that given the See pg b5
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A leading governance reformer yesterday urged the Government to tackle “30 per cent inefficiency” levels within the public sector, arguing that this and its crackdown on tax cheats were key to reaching a Budget surplus. Robert Myers, a principal with the Organisation for Responsible Govern-
ance (ORG), told Tribune Business that all legitimate, tax compliant businesses “should be applauding” the Government’s success to-date in getting non-payers to contribute their fair share. Simon Wilson, the Ministry of Finance’s financial secretary, last week revealed that the Government’s tax enforcement drive, launched last November, was yielding an extra $15 million per month on
New Providence alone. The Government’s top finance official disclosed that it is targeting an extra $400 million in annual revenues within two years from its compliance efforts alone, an initiative that yesterday met with Mr Myers’ approval. However, the former Bahamas Chamber of Commerce and Employers Confederation (BCCEC) chairman warned the Government not to solely See pg b4
Governance reformer: Public sector ‘too fat’ All compliant payers should ‘applaud’ tax drive But can’t just ‘beat up’ on private sector
PAGE 2, Wednesday, February 22, 2017
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Regulatory regime to renew energy sector It was reported earlier this month that Bahamas Power and Light (BPL) will shortly provide its revised small-scale renewable generation plan to the Utilities Regulation and Competition Authority (URCA). I was very excited in December when the regulator released its proposed amendments to BPL’s plan, directing the utility to better support Bahamians in adding solar and wind power to our homes and businesses. For those who did not read URCA’s 34-page document, I wanted to bring you a few highlights. We will have to see how BPL’s new plan incorporates these. The biggest ‘take away’ is that URCA is preparing for the inevitable, and that grid-tied solar and renewable energy systems are on the way. The world is trend-
ing towards distributed renewable energy (such as solar on house rooftops), and URCA is starting to offer regulation for it. Let me be clear: Regulating the inevitable is a good thing. Proper regulation, enforced correctly, is positive. It protects customers from scammers trying to make a quick buck. It protects professionals like myself from ‘cowboy’ operators who slap together garbage that gives the rest of us a bad name. It protects society by allowing green energy in the Bahamas to become more common, and with safely. The downside of regulation is that it creates more of a hassle, but the protection it provides is worth it. URCA’s proposal takes us an important step closer to having a regime in place that permits Bahamians’ solar systems to exist, tie
into the grid, and receive financial compensation for energy sent to the grid. How does this help us? Here are a few examples based on the proposal: * Regulation will set, and guarantee you, a certain return on investment. URCA’s proposed power purchase agreement lets you know what BPL will pay for at least 10 years after you install your solar system. By that time, your solar system will have paid for itself. * Regulation also lays down the standard for what your system must do, its size, and the quality it has to meet for the Government to approve it. This will give Bahamians assurance, once they work with a qualified professional, that their solar system will not be disconnected by the Government arbitrarily, and that
their solar investment will pay for itself. * If URCA’s proposals go through, we will have ready access to information. The importance of good information cannot be understated. For example, the application forms to get your system approved will be online. Similarly, BPL’s key documents will be soon be just a keystroke away. As URCA wrote: “URCA requests that BPL submit revised documents … by the commencement of Phase 1, which will be published on URCA’s website”. * Once the regime is in place for Bahamians, that can make it easier for us to access financing to upgrade our home or business. This can unlock the door to energy freedom for many who otherwise cannot easily afford it.
If you buy a cheap hamburger and do not get to eat it, it is no big deal. However, if you spend tens or hundreds of thousands of dollars on a solar system, you want to be sure you will be able to enjoy your investment. Proper regulation, enforced correctly, helps protect that for us all. I was excited to read URCA’s proposed changes, and am just as excited to read BPL’s revised plan when it becomes available. This is a good time to talk with a professional to assess your home and design your renewable energy system. Since this takes time, especially if you want to make changes, it is recommended that you contact your local energy efficient products specialist sooner rather than later. That way, when the legal regime is more fully in place, your solar system will be ready to go.
Joshua key SuperGreen Solutions
And you can start saving money immediately. • NB: Joshua Key is general manager for SuperGreen Solutions Bahamas, located on Wulff Road next to FYP. SuperGreen Solutions is one of the premier advisors, suppliers and installers of domestic and commercial energy efficient solutions.
Island Luck executives gain top qualifications
Dirk Simmons
Two executives with the Island Luck web shop chain have obtained an international anti-money laundering qualification specific to the gaming industry. Dirk Simmons, its chief financial officer, and Neil Major, the company’s risk and compliance manager, have both been awarded the International Compliance Association Specialists Certificate in money laundering risks in betting and gaming. The International Compliance Association (ICA) is a professional membership body based in the UK, and is the leading global provider of professional, certified qualifications in anti-money laundering, corporate governance, risk and compliance, and financial crime prevention. The certificate in money laundering risks in betting and gaming is a three-
month programme covering all aspects of customer due diligence and anti-money laundering risks and typologies, including both online and physical gaming environments. Mr Simmons is a member of the Board’s risk and compliance committee. Prior to joining Playtech Systems, Island Luck’s parent, he was managing director of a financial services provider. Mr Major has served as the risk and compliance manager for Playtech Systems for the past two years. Prior to his current position, Mr Major worked in the financial services industry for 11 years. He held previous posts at the Securities Commission of the Bahamas, and was employed in a contractual capacity with the Central Bank.
Neil Major
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Wednesday, February 22, 2017, PAGE 3
Taxpayers funding ‘excesses of Govt’ By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net The Government’s aggressive tax crackdown must be accompanied by spending cuts, the Free National Movement’s (FNM) deputy leader said yesterday, while expressing doubts whether its enforcement efforts would generate an $400 million in revenues within two years. “How do we juxtapose that kind of number against the anecdotal evidence out there that the economy is
FNM deputy urges spending cuts balance in fact lagging,” queried K P Turnquest, “that we have had negative GDP growth going on three years, and this year it doesn’t look any better. “When you look at an economy like Grand Bahama, which is certainly in depression at this point, where exactly are they going to get this revenue and what effect will that have on the economy? I don’t know if it’s
Port’s profits double on 3,000 TEU jump From pg B1
imports for the six months to end-December 2016. Mr Maura added that tonnage shipped through APD’s break bulk terminal had also more than doubled year-over-year, as Bahamas residents headed to Florida to purchase their storm relief supplies. “Our container volumes are 3,124 over last year for the same period, and 2,829 over budget,” he told Tribune Business, identifying the main factor driving APD’s substantial bottom line improvement. Mr Maura said the comparisons against budget were especially impressive because APD had budgeted for a flat 2017 when it came to container volumes, due to uncertainty over when Baha Mar construction would resume. The APD chief executive added that the company’s budgeting and financial planning had also not taken into account Hurricane Matthew, and the import increase sparked by the reconstruction and repair efforts. “The increase in container volumes was attributable to Hurricane Matthew rebuilding efforts, and to a lesser extent Baha Mar and some Hurricane Joaquinrelated imports,” Mr Maura told Tribune Business. “The increase in volumes had a substantial impact on operating income. We were also fortunate to collect approximately $1.5 million in Baha Mar-related outstanding rents and port storage income. “We also implemented a tariff increase on August 1, 2016, amounting to $12 per TEU, which would have added to both the revenue and income increase. We have also seen an increase in vehicle imports. December 2015 year-to-date saw 6,580 vehicle imports versus December 2016 year-todate of 7,334 vehicles, or a
10 per cent increase.” Mr Maura said the substantial increase in import activity was also reflected at APD’s ‘break bulk’ terminal, where “tonnage through the end of December was 13,700 tonnes compared to 6,500 tonnes for the same period in the prior year”. Explaining the factors driving the more than 100 per cent increase, he added: “That was very much attributable to Hurricane Matthew volumes. “It would have been the small, less-than-container load imports from persons flying over to Florida to do their shopping, picking up supplies and home repair materials, and shipping them over to Nassau on the likes of the Betty K. “The reality is that the hurricane resulted in an increase in retail, construction and employment activity.” Mr Maura said that while increased import volumes from Hurricane Matthew had continued into 2017, “as insurance monies flow into the economy”, this impact was likely to lessen. He added, though, that this momentum would be replaced by Baha Mar-related imports, as the multibillion dollar Cable Beach development moved to both complete construction and outfit the property with traditional hotel materials and supplies. APD’s twenty-foot equivalent unit (TEU) volumes were up 35.9 per cent yearover-year for January 2017, standing at 5,617 compared to 4,132 for the same month in January 2016. This continued the surge that started in November and December, when TEU volumes were up 25.8 per cent and 23.4 per cent yearover-year, standing at 6,756 and 6,552 TEUs. The Government’s revenues also rebounded postMatthew, as its collected $53.402 million in combined Customs duties, Excise
legitimate. I can’t dispute it one way or the other.” Simon Wilson, the Ministry of Finance’s financial secretary, last week told the Chamber of Commerce’s State of the Economy 2017 forum that the Government is targeting an extra $400 million within two years from its crackdown on tax cheats. He said its efforts were already yielding an extra $15 million per month in additinal revenue from New Providence alone, the initiative having been launched late last November. Mr Turnquest added:
“We know that there has been some issues with respect to real property tax; the collection and registration of tax payers. There has also been tremendous inefficiencies with the Inland Revenue system, even with respect to VAT. “Even after two years there still hasn’t been any VAT controller appointed. We hear about the record amount of VAT being collecte, but we don’t hear about the outstanding VAT credits that have not been paid or recognised. While the government makes these claims, it certainly flies against what we see out
there in terms of the economic growth and general health of the private sector throughout the country.” The Government’s crackdown is targeting four key taxes - VAT, Business License fees, real property taxes and Customs duties, as it bids to enhance cash flows by collecting every cent in taxes due to it. “That is the interesting paradox, because while the Government is asking its citizens to make additional sacrifices to help fund the Government and its insatiable need for more revenue,” Mr Turnquest said, “but we see very little or no evi-
dence that they are, in fact doing likewise, trimming their Budget and reigning in expenditure on all these pork barrel projects to help make a debt in the national debt. “We’re still running recurrent deficits, spiralling national debt that seems to be going out of control, situations of reported cash flow shortages where vendors are not being paid on time, VAT refunds long past due. It seems that the Government is saying to the average taxpayer that we want more to fund our excess because we are not prepared to do the same.”
Tax and Value-Added Tax (VAT) through the Arawak Cay port. This total represented a five-month high, and a rebound from the 30 per cent drop to $32.791 million in October 2016 as a result of Matthew’s aftermath. All this has placed APD well ahead of its own internal forecasts that it would generate a 16.26 per cent increase in shareholder profits for its 2017 financial year. It projected in its 2016 annual report that total income attributable to equity investors will increase by more than $700,000 to $5.044 million for the 12 months to end-June 2017 - a target that it is only $200,000 shy of following the first half. APD unveiled total comprehensive income that was more than double the 2015 comparatives, producing a $4.814 million bottom line for the six months to December 2016, as opposed to just $2.192 million the prior year. Revenues rose by 10.1 per cent to $14.943 million, compared to $13.571 million the prior year, while expenses dropped by 14.7 per cent - from $8.641 million to $7.379 million. The expenses decline was aided by a $700,168 bad debt recovery, which Mr Maura confirmed was related to Baha Mar rents and storage money previously owed. On the balance sheet side, APD saw its accounts receivables jump to $4.014 million from $1.95 million the previous year. “The increase in import activity resulted in an increase in accounts receivables,” Mr Maura explained.
“We also had a couple of accounts that fell behind but we have experienced an improvement.” He added that while the impact from Baha Mar imports was uncertain, these were expected to keep APD
tracking “over budget” for the remainder of its 2017 financial year. “We have continued to work closely with Bahamas Customs and the Ministry of Finance in their efforts to address illegal trade activ-
ity,” Mr Maura added. “We have provided facilities and personnel to support the various initiatives. As an example, the Nassau Container Port now has a Customs K9 department operating at the port.”
to advertise today in the tribune call @ 502-2394
PAGE 4, Wednesday, February 22, 2017
Bran: Landfill could be Baha Mar ‘deal breaker’ From pg B1 initial ‘opening’ is just two months away. Mr McCartney said any Baha Mar purchaser should have received ample warning about the potential risks posed to their potential investment, given that the 100-acre site’s unresolved issues have repeatedly attracted media coverages. With marches having been held over the landfill’s health-related and environmental woes, the DNA leader said it was “a bit concerning” that the issue had failed to register with CTFE. Mr McCartney even went so far as to suggest the matter might be “a deal breaker”, especially given that CTFE’s purchase of Baha Mar has yet to close, should the New Providence landfill’s problems not be resolved. While there is no evi-
dence to suggest CTFE would take such drastic action by ‘walking away’ from its Baha Mar purchase, the Government appears to have recognised that the landfill represents a major liability for the Bahamas, given its renewed talks with a local waste management consortium about taking over the site’s management. “The dump has been a huge issue over the last few years, having been in the public domain with marches held over it,” Mr McCartney told Tribune Business. “For it not to register [with CTFE] raises questions over their due diligence. That’s very concerning. It’s a foregone conclusion that it raises questions. “We said that any new buyer, purchaser of this resort must take into consideration this dump. We said that when the bankruptcy debacle was going
Doctors urge: ‘Produce the meat’ on NHI plan From pg B1 Tribune Business, suggesting it was impossible to determine this without knowing how many Bahamian doctors had signed up to provide NHI services, and the compensation rates the Government will pay them. There are indications that the pace of doctor sign-up is not meeting the Government’s expectations, as the NHI project manager this week seemed to appeal for the Bahamian public to pressure physicians into providing services under the scheme. “The success of NHI Bahamas is dependent on the support of Bahamians and
physicians,” Dr Brennen was quoted as saying in an NHI secretariat release. “While we continue to receive positive support from the physician community, Bahamians should encourage their doctors to register for NHI so they can select their preferred provider during enrolment.” Dr Pierre said the Government appeared to be basing the NHI budget on estimates for utilisation rates, meaning how frequently Bahamians will visit their doctor for medical treatment. “They’re doing it under the guise of having ‘x’ amount of healthy people
Govt urged to cut ‘30% inefficiency’ From pg B1 focus on “beating up” the private sector in its quest to eliminate the persistent fiscal deficits. Mr Myers emphasised that greater accountability was essential when it came to spending, and urged the Government to tackle what he described as the “25-30 per cent inefficiency” level in the public sector. He also noted the support given by Jarkko Turunen, the International Monetary Fund’s (IMF) Bahamas mission chief, for the implementation of a Fiscal Responsibility Act and ‘fiscal rules’ to ultimately make the Government’s spending more transparent and accountable. Mr Myers said both initiatives “need to happen”, given that successive PLP and
FNM administrations had shown an inability to curb the spending that is driving continued $300 million deficits despite the extra $1 billion-plus in VAT revenues. Still, the ORG principal said Mr Wilson and the Department of Inland Revenue were to be commended for doing their job in cracking down on tax-dodging businesses. “That’s fantastic news. I’m so excited to hear that,” Mr Myers told Tribune Business of the extra $15 million per month in revenue yield. “They’re doing their job, and that’s what we need. All good, honest businessman in the private sector should be applauding this.” Mr Wilson had last week revealed that courier companies were “stealing”
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on. We said a new buyer must take this into account or they would be foolish to purchase this resort without ensuring the dump was first remediated.” The DNA leader added that Baha Mar lay directly in the path of where the wind typically blew fumes and smoke emanating from the Tonique Williams Highway facility, especially when underground fires erupted. He emphasised that regardless of who owned it, a high-end, multi-billion dollar tourism development such as Baha Mar could not expose its guests to such potential environmental and health hazards. “This dump could be a deal breaker,” Mr McCartney added. “This Baha Mar president has not seen anything yet when this dump starts to burn. “It’s not becoming of a multi-billion resort for its visitors and tourists to wake-up smelling the Nassau dump. Who wants to come to a resort to smell the dump? “That resort [Baha Mar]
is right in the direction of where the dump normally smells and flows. It’s right in that direction. It settles there.” Mr McCartney told Tribune Business that the landfill was “starting to fire up” yet again, having personally smelled smoke every morning when he woke up at home over the weekend. The DNA leader’s house, and his wife’s Meridian School, have both been directly impacted by the landfill in recent years, along with nearby communities in the Gladstone Road and Cable Beach areas. “The landfill is starting to catch fire again,” Mr McCartney said. “Every morning I got up this weekend and I smelled smoke. It’s been like that for the last couple of weekends. It’s brewing again. “Unfortunately, CTFE did not heed the call of buyer beware when we said that and put it out there. No resort of this magnitude will be sustained with the dump burning like that. None. They could kiss that resort
goodbye if they do not sort out that dump.” Tribune Business revealed yesterday that Prime Minister Perry Christie, recognising the dangers posed by the landfill if left unchecked, has met with members of the 10-strong Waste Resources Development Group (WRDG) at least twice in the past fortnight. The all-Bahamian consortium, whose members include companies such as Wastenot, United Sanitation, BISX-listed Bahamas Waste and Impac, has been asked to come up with a business plan for taking over the landfill’s management, together with the necessary financing, “in an extremely short time”. Mr McCartney said “the best person”, regardless of whether they were Bahamian, foreign or a joint venture between the two, was needed to remediate the landfill given how urgently this had to be achieved for multiple reasons. “The Government, unless their backs are against the
wall, will not do anything,” he told Tribune Business. “The Prime Minister would not be meeting with anybody regarding this dump unless they were in dire straits.” He added: “We want the best person, whether Bahamian or otherwise, to sort it out. Who has the best solution? “This is not rocket science; it’s something that can be dealt with. I wish that whoever can get the job gets it done, whether that’s Bahamian or otherwise.” Mr McCartney slammed both the Christie administration and its FNM predecessor for failing to address the landfill’s long-standing deficiencies, which have been well-known to all stakeholders. Recalling his time in the latter’s Cabinet, Mr McCartney said numerous private sector proposals from Bahamians, foreign entities and joint ventures between the two were submitted for the landfill’s management. However, none were acted upon.
and ‘x’ amount of sick people,” the MAB chief suggested. “We have to see who signs up, and what the remuneration rates are; how much they’re going to pay. Who’s going to work with what they’re proposing?” Dr Pierre added that NHI’s evolution over the next several years would have to be observed to see if it resulted in long queues and waits for treatment, as has occurred with similar healthcare schemes elsewhere in the world. “The question has always been the quality of care: That has always been the question,” he added. The NHI secretariat earlier this week unveiled a comprehensive draft primary care benefits package, covering medical services that include mental healthcare, diabetes and
hypertension, high blood pressure and cholesterol, and cancer through to annual physicals and regular check-ups. Dr Pierre, though, suggested that the benefits offered were little different from what was currently available at Princess Margaret Hospital. He said that only the delivery mechanism had changed, with private physicians sought out as NHI providers in a bid to take the burden off the public sector. One doctor, speaking on condition of anonymity, said there was “no way in hell” that NHI’s $100 million would suffice to cover the primary care benefits being offered. “They’re relying on the fact that the average Bahamian is not going to show
up, and that’s a very bad assumption,” the doctor said. “If the average Bahamian does show up, and I believe they will, there’s no way in hell they can cover that.” The doctor added that NHI’s demands would require them to take on extra staff “exactly at the same time they’re asking doctors to take a pay cut”. “They’ll burn out $100 million, burn out the doctors and not get the quality of care and the treatment outcomes they expect,” the doctor told Tribune Business. Dr Duane Sands, the FNM’s candidate for Elizabeth, told Tribune Business last night: “With so many variables it’s impossible to peg this thing. “It [NHI primary care] could be as low as $10 million or as high as $200 mil-
lion. How many people are there, how many visits will there be, what are the remuneration rates, how many people have signed up?” he asked. “These numbers determine if this [$100 million] is an absolute shot in the dark or if there’s some scientific validity to this project.” Dr Sands said the primary care phase’s cost estimate could be akin to seeking to buy one thousand gallons of gas at $1.50 per gallon, a price that was impossible to obtain in the Bahamas. “Where’s the meat and when are you likely to produce the meat?” Dr Sands asked of NHI. “Flesh it out. Let’s see what’s expected, and what is likely to be delivered and can be delivered.”
from the Public Treasury, with three having recently agreed to pay a collective $7 million in outstanding taxes following audits of their businesses. Further examples cited by the financial secretary included a Bain Town liquor store, which was paying Business License fees on a $50,000 annual turnover despite ordering $8 million worth of product from suppliers, and a company that had agreed to pay $800,000 in due Customs duties following a post-clearance audit. Mr Myers also backed the Government’s seeming equitable enforcement of the law, based on Mr Wilson’s comments about the complaints he had received from current and former senior civil servants when they were hit with demands for real property tax payments. “It’s one law or no law. Nobody’s exempt,” he told Tribune Business. “What’s
good for the goose is good for the gander, whether it’s the Prime Minister or a senior civil servant. What’s good for the public is good for them, too.” Mr Myers, though, said the Government could not expect to eliminate the annual fiscal deficit, and stabilise and then pay down the $6.8 billion national debt, by focusing on tax compliance and enforcement alone. “They need to generate some of that through their own accountability and efficiency in the public sector,” he told Tribune Business of the Government targeting a “balanced” Budget within the next four years. “Don’t just beat up on the private sector and individuals. Cut down on the inefficiency we all know exists in government.” Mr Myers added: “I think there’s a 30 per cent inefficiency in government. That’s a massive potential
saving there. Compliance and government efficiency; that’s your route to generating a surplus. “They need to keep pushing that, and getting compliance up, and they will be there before they know it. I want to make sure he [Mr Wilson] recognises the inefficiencies out there, and the need to tighten up and get government more efficient.” Mr Myers argued that reducing government’s inefficiency level over the next government’s five-year lifetime was a target that the Bahamas needed to aim for. “I’m not saying overnight, but over three to four years it could save hundreds of millions of dollars,” he said. “If we can get 3-5 per cent more efficient over the next five years, you’re talking about hundreds of millions in savings.” Mr Wilson last week said the Government had been “very aggressive” in controlling its spending, and
had secured some “quick wins”, referring to fuel and vehicle fleet savings, plus an end to some 100-plus cell phone plans from BTC. Mr Myers, though, argued that the Government needed to go much further than the steps identified by Mr Wilson at the BCCEC’s State of the Economy 2017 forum. “What I’m talking about is not spending, but employment and efficiency,” Mr Myers explained to Tribune Business, “five people sipping a coffee while the public is figuring out how to get a permit. “It’s basically an employment subsidisation. There are too many people in government. Government is too fat and inefficient. If you control employment and accountability in government, you will have 20-25 per cent more efficiency on top of what he’s [Mr Wilson] doing. That’s a huge win.”
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Wednesday, February 22, 2017, PAGE 5
Rise in premiums lays bare 2 Americas on health care WASHINGTON (AP) — Michael Schwarz is a selfemployed business owner who buys his own health insurance. Subsidized coverage through “Obamacare” offers protection from life’s unpredictable changes and freedom to pursue his vocation, he says. Brett Dorsch is also selfemployed and buys his own health insurance. But he gets no financial break from the Affordable Care Act. “To me, it’s just been a big lie,” Dorsch says, forcing him to pay more for less coverage. Schwarz and Dorsch represent two Americas, pulling farther apart over former President Barack Obama’s health care law. Known as the ACA, the law rewrote the rules for people buying their own health insurance, creating winners and losers. Those with financial subsidies now fear being harmed by President Donald Trump and Republicans intent on repealing and replacing the ACA. But other consumers who also buy their own insurance and don’t qualify for financial help feel short-changed by
Obama’s law. They’re hoping repeal will mean relief from rising premiums. The ACA sought to create one big new market for individual health insurance in each state. It required insurers to accept all customers, regardless of medical problems. And it provided subsidies to help low- and moderate-income people afford premiums. These newly vested ACA customers joined consumers already in the market, to make a new insurance pool. Policies offered to all had to be upgraded to meet new federal standards for comprehensive benefits, raising premiums. And many of the new customers turned out to be sicker than insurers expected, pushing rates even higher. Consumers who didn’t qualify for government financial help wound up bearing the full cost of premiums. They also faced the law’s new requirement to carry health insurance or risk fines. “One (group) is angry and one is incredibly grateful,” said Robert Blendon of the Harvard T.H. Chan School of Public Health. If
AG’s Office reviewing BTC’s sale to Liberty From pg B1 season, it’s not going to be long before this one’s addressed.” Tribune Business revealed on Monday how Liberty Global’s acquisition of the controlling equity stake in BTC has yet to be approved by the Christie government nine months after the deal closed. The issue was disclosed in Liberty Global’s annual 10K filing with US regulators, which said its acquisition of Cable & Wireless Communications (CWC) last year is still awaiting regulatory review and approval in the Bahamas and several other Caribbean jurisdictions. “Most recently, the CWC acquisition triggered regulatory approval re-
quirements in certain jurisdictions in which CWC operates,” Liberty Global disclosed to its shareholders and broader capital markets. “The regulatory authorities in certain of these jurisdictions, including the Bahamas, Jamaica, Trinidad and Tobago, the Seychelles and the Cayman Islands, have not completed their review of the CWC acquisition or granted their approval. “While we expect to receive all outstanding approvals, such approvals may include binding conditions or requirements that could have an adverse impact on CWC’s operations and financial condition.” Liberty’s purchase of CWC, which acquired the controlling equity interest
“Being uninsured is not an option. I would have to change careers and find a job that offered health insurance” Trump and congressional Republicans aren’t careful, their actions could stoke fresh grievances without solving longstanding problems of access and cost. Consider what happened to Schwarz and Dorsch this year, as premiums for a standard plan through HealthCare.gov jumped an average of 25 percent. Schwarz and his wife are in their mid-20s and live in Tampa, Florida. He has his own commercial photography business and she’s pursuing a graduate degree in speech-language pathology. The sticker price of their HealthCare.gov policy went up about 20 percent, but what they pay monthly is about $115 lower than last year. Not only did their subsidy cover the rise in premium, they’re also getting more help because their income went down when Schwarz’s wife returned to school full time.
in BTC for $206 million via the 2011 privatisation, was completed on May 16, 2016. This means that the company controlled by renowned cable TV pioneer, John Malone, has been waiting exactly nine months for the Christie administration to approve it as the Government’s new partner in BTC. Liberty’s 10K filing also indicated its unease at having governments as equity partners in the communications companies it owns/ operates. “In several of CWC’s key markets, including Panama and the Bahamas, governments are CWC’s partners and co-owners,” its 10K filing said. “Consequently, we may not be able to fully utilise CWC’s contractual or legal rights or all options available, where to do so might conflict with broader regulatory or governmental considerations.”
“Being uninsured is not an option,” said Schwarz. If Republicans take away his subsidy, “I would have to change careers and find a job that offered health insurance,” he said. Dorsch and his wife live in Wilmington, Delaware, and are in their mid-50s. He has a wholesale business supplying electronics to retail stores and has been buying his own health insurance for years. He gets no financial help from the ACA.
Mike Schwarz, sole proprietor of Mike Schwarz Photography, poses for a photo in Tampa, Fla. Schwarz is a self-employed business owner who buys his own health insurance. The subsidized coverage “Obamacare” offers provides him protection from life’s unpredictable changes and freedom to pursue his vocation, he says. (AP Photo)
PAGE 6, Wednesday, February 22, 2017
THE TRIBUNE
Yahoo salvages Verizon deal with $350 million discount
SAN FRANCISCO (AP) — Yahoo is taking a $350 million hit on its previously announced $4.8 billion sale to Verizon in a concession for security lapses that exposed personal information stored in more than 1 billion Yahoo user accounts. The revised agreement, announced Tuesday, eases investor worries that Verizon Communications Inc. would demand a discount of at least $1 billion or cancel the deal entirely. The hacking bombshells, disclosed after the two companies agreed on a sale, represent the two biggest security breaches in internet history. The breaches raised concerns that people might decrease their use of Yahoo email and other digital services that Verizon is buying. A smaller audience makes Yahoo’s services less valuable because it reduces the opportunities to show ads — the main reason that Verizon struck the deal seven months ago. Yahoo has maintained that its users have remained loyal, despite any mistrust that might have been caused by its lax security and the
lengthy delay in discovering and disclosing the hacks. The separate attacks occurred in 2013 and 2014; Yahoo disclosed them this past September and December. The lower price, now pegged at $4.48 billion, will cost Yahoo shareholders roughly 37 cents per share. But they may also be responsible for substantial legal costs. After the Verizon deal closes, any future bills stemming from the hack will be shouldered by Altaba Inc. — a company that will become the caretaker of Yahoo’s remains, which will include about $7 billion in cash and lucrative stakes in Chinese e-commerce giant Alibaba Group and Yahoo Japan. Altaba will be responsible for all costs stemming from shareholder lawsuits and a Securities and Exchange Commission probe into how Yahoo handled the disclosure of the massive hacks. Verizon and Altaba will split costs from all other hack-related lawsuits and government investigations. This agreement “provides protections for both sides” and should help the deal
close by the end of June, Marni Walden, Verizon’s head of product innovation and new businesses, said in a statement. Yahoo shareholders have to approve it. Avoiding an even larger reduction in the deal value represents a small victory for Yahoo CEO Marissa Mayer, who had already been under fire on Wall Street for her inability to turn around the company and then for the humiliating security lapses that came under her watch. “Yahoo had to get this deal done. There is no better fit for them than Verizon,” said Doug Melsheimer, managing director for Bulger Partners, an investment banking firm specializing in technology. Mayer, 41, is widely expected to step down after Verizon takes over, although she hasn’t spelled out her plans definitively. If she departs, Mayer will leave with a severance package that was valued at $44 million last summer. The package is probably worth even more now because it primarily consists of Yahoo stock, which has risen by nearly 20 percent since last
the Yahoo and Verizon logos on a laptop, in North Andover, Mass. Yahoo is taking a $350 million hit on its previously announced $4.8 billion sale to Verizon in a concession for security lapses that exposed personal information stored in more than 1 billion Yahoo user accounts. The revised agreement announced yesterday, eases investor worries that Verizon Communications Inc. would demand a discount of at least $1 billion or cancel the deal entirely. (AP Photo) summer. Yahoo shares rose 40 cents to close at $45.50 while Verizon’s stock added 24 cents to finish at $49.43. Verizon’s willingness to accept some of the lingering risks from Yahoo’s security breaches underscores the
wireless carrier’s desire to become a bigger player in the digital advertising market. Google and Facebook currently dominate, but Verizon believes there’s room to grow. Because most people already have smartphones,
Greece calls on Germany to ease budget demands ATHENS, Greece (AP) — Greece’s government has called on Germany to drop what it described as “irrational” budget demands in the country’s bailout program, a day after Greece and its European creditors agreed to resume talks on new reforms. Spokesman Dimitris Tzanakopoulos on Tues-
day noted the eurozone finance ministers had made progress at their meeting this week on Greece’s bailout. He said there had been “concessions from all sides” on what reforms Greece must make to keep tapping its bailout loans. “It is now also time for Germany to proceed on the path of realism,” said
Tzanakopoulos. He called on Germany to drop its demands that Greece post a 3.5 percent primary surplus — the budget balance minus debt interest costs — each year for a decade. He also called on Germany to “adopt a constructive stance” to reach a deal on some form of debt relief for
NOTICE
NOTICE is hereby given that SYLVIA ROLLE of Nassau Street, P.O. BOX CB-12401, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 22nd day of February, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
Greece. Athens agreed on Monday to implement further reforms that will take effect from the start of 2019, after the country’s current third bailout has ended. The government says the measures will be fiscally neutral, with every increase in financial burden being offset by another counter-measure.
NOTICE NOTICE is hereby given that ANDIEU ETIENNE GABRIEL of Carmichael Road, P.O. BOX EE-16051, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 22nd day of February, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
MARKET REPORT TUESDAY, 21 FEBRUARY 2017
t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com
Reforms are expected in the labor market, pensions and taxation. Tzanakopoulos said he could not provide any details of the measures or the counter-measures, saying the package was subject to negotiations with the country’s creditors, whose representatives are to return to Athens for talks next week. “Even on the package of reform measures, lots of work still needs to be done and various outstanding issues will have to be calibrated,” said financial analyst Wolfango Piccoli of Teneo
wireless carriers such as Verizon have turned to price cuts and promotions to lure customers from each other. Under pressure, Verizon even restored unlimited data plans this month, robbing it of revenue from monster-size data plans. Intelligence. “For instance, the exact fiscal targets have not yet been agreed. This remains a political rather than technical matter, and more work is required before this debate can take place.” Greece had originally hoped to conclude by Monday the latest review of its progress in meeting its bailout conditions. Only once the review is complete will Greece be able to access the next installment of its bailout funds, which it needs to meet a 7 billion euro ($7.4 billion) debt repayment in July. Without the funds, the country will once again face default, throwing its future in Europe’s joint currency into question.
NOTICE
NOTICE is hereby given that KETTLYN NEUS of Eastwood Estates,P.O. Box EE-16222, New Providence, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 15th day of February, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
BISX ALL SHARE INDEX: CLOSE 1,916.19 | CHG -0.03 | %CHG 0.00 | YTD -22.02 | YTD% -1.14 BISX LISTED & TRADED SECURITIES 52WK HI 4.38 17.43 9.09 3.56 4.70 0.12 7.20 8.50 6.10 10.60 15.48 2.72 1.60 5.83 9.75 11.00 9.25 6.90 12.01 11.00
52WK LOW 2.70 17.43 8.19 3.50 1.77 0.12 3.80 8.15 5.50 7.72 11.00 2.18 1.31 5.80 6.78 8.56 6.12 6.35 11.92 10.00
1000.00 1000.00 1000.00 1000.00
900.00 1000.00 1000.00 1000.00
PREFERENCE SHARES
1.00 106.00 100.00 106.00 105.00 105.00 100.00 10.00 1.01
1.00 105.50 100.00 100.00 105.00 100.00 100.00 10.00 1.01
SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Famguard Fidelity Bank Finco Focol ICD Utilities J. S. Johnson Premier Real Estate Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B
CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00 100.00
52WK LOW 100.00 100.00 100.00
SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS FAM FBB FIN FCL ICD JSJ PRE CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB
SECURITY Fidelity Bank Note 17 (Series A) + Fidelity Bank Note 18 (Series E) + Fidelity Bank Note 22 (Series B) +
SYMBOL FBB17 FBB18 FBB22
Bahamas Note 6.95 (2029) BGS: 2014-12-3Y BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y
BAH29 BG0103 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407
BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
113.70 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
MUTUAL FUNDS 52WK HI 2.03 3.92 1.94 169.70 141.76 1.47 1.67 1.57 1.10 6.96 8.50 6.30 9.94 11.21 10.46
52WK LOW 1.67 3.04 1.68 164.74 116.70 1.41 1.61 1.52 1.03 6.41 7.62 5.66 8.65 10.54 9.57
LAST CLOSE 4.38 15.85 9.09 3.53 1.77 0.12 4.50 8.50 5.83 10.48 11.93 2.14 1.55 5.83 9.75 10.95 9.25 6.90 12.01 10.00 1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.01 LAST SALE 100.00 100.00 100.00 104.80 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
CLOSE 4.38 15.85 9.09 3.53 1.77 0.12 4.50 8.50 5.83 10.48 11.93 2.11 1.55 5.83 9.75 10.95 9.25 6.90 12.01 10.00
CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.11 100.00 100.00 100.00 10.00 1.01
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
CLOSE 100.00 100.00 100.00
CHANGE 0.00 0.00 0.00
104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
-0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund
VOLUME
1,100
200
VOLUME
NAV 2.03 3.92 1.94 168.44 141.76 1.47 1.64 1.56 1.04 6.96 8.50 6.30 9.80 11.13 9.63
EPS$ 0.029 1.002 -0.144 0.170 -0.130 0.000 -0.030 0.607 0.430 0.450 0.110 0.102 0.080 0.300 0.520 0.960 0.820 0.294 0.610 0.000
DIV$ 0.080 1.000 0.000 0.210 0.000 0.000 0.090 0.300 0.220 0.360 0.490 0.060 0.060 0.240 0.400 0.000 0.330 0.140 0.640 0.000
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
P/E 151.0 15.8 N/M 20.8 N/M N/M -150.0 14.0 13.6 23.3 108.5 20.7 19.4 19.4 18.8 11.4 11.3 23.5 19.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%
INTEREST 7.00% 6.00% Prime + 1.75%
MATURITY 19-Oct-2017 31-May-2018 19-Oct-2022
6.95% 4.00% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%
20-Nov-2029 15-Dec-2017 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022
YTD% 12 MTH% 4.30% 4.30% 3.82% 3.82% 2.73% 2.73% 3.95% 3.95% 6.77% 6.77% 0.40% 4.04% -1.76% 1.06% -0.34% 2.70% -0.95% 1.55% 4.35% 4.69% 4.13% 4.28% 4.22% 4.64% 6.19% 3.43% 2.77% 2.98% -3.66% -3.90%
NAV Date 31-Dec-2016 31-Dec-2016 31-Dec-2016 31-Dec-2016 31-Dec-2016 31-Jan-2017 31-Jan-2017 31-Jan-2017 31-Jan-2017 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016
MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings
YIELD 1.83% 6.31% 0.00% 5.95% 0.00% 0.00% 2.00% 3.53% 3.77% 3.44% 4.11% 2.84% 3.87% 4.12% 4.10% 0.00% 3.57% 2.03% 5.33% 0.00%
YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful
TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225
IMPORTANT NOTICE TO ALL CUSTOMERS AND CREDITORS OF MONTAQUE CAPITAL PARTNERS LTD. (In Liquidation) The Joint Official Liquidators (the Liquidators) hereby notify all Customers and Creditors of Montaque Capital Partners Ltd. (In Liquidation) (“the Company”) that they have applied to the Supreme Court of the Bahamas for Court approval of the payment of the Liquidators’ remuneration and costs for the period 1st February 2014 through 30th April 2016. The Summons by which the application is made and the Eighth Affidavit of Edmund L. Rahming setting out the costs may be accessed on the website: www.mcp-liquidation. com. The Liquidators’ application will be heard by His Lordship the Honourable Mr. Justice Ian Winder Justice of the Supreme Court in Chambers on Friday the 13th March 2017 at 9:00 o’clock in the forenoon. If you intend to appear on the hearing of the Liquidators’ application you will need to file at the Supreme Court Registry a Memorandum of Appearance or one of the forms shown on the website depending on whether you are claiming a debt owed to you (Creditor’s Appearance) or that the Company is holding assets beneficially owned by you (Customer’s Appearance). The Memorandum needs to be filed and served on the Liquidators or their Attorneys, Lennox Paton, no later than 4:00 p.m. on Thursday 9th March 2017. If you are a customer or creditor of the Company and you need any further information or clarification in regard to the application, please contact the Liquidators directly and they will do their best to assist you. Messrs. Kenneth Krys and Edmund L. Rahming The Joint Official Liquidators of Montaque Capital Partners Ltd. (In Liquidation) Intelisys 15 Caves Professional Center, Caves Village Nassau, The Bahamas Tel (242) 327-4001/3 www.intelisysltd.com
THE TRIBUNE
Wednesday, February 22, 2017, PAGE 7
Deal hunger sends food stocks higher; US indexes at records NEW YORK (AP) — Stocks again broke records Tuesday as investors came back from a long weekend hungry for deals. While Kraft Heinz and Unilever couldn’t complete a proposed $143 billion megamerger, food and household goods makers rose as investors bet that other deals are coming. Companies that make packaged foods, everyday household items and other consumer goods are usually seen as stable investments and rarely take center stage on Wall Street. But on Tuesday they did just that, as investors felt the failed Kraft Heinz-Unilever sale will be replaced by other deals. Oreo maker Mondelez and jam maker Smucker made the largest gains. “That’s why you saw the (home and personal care products) companies move up on Friday and you’re seeing some of them follow through today,” said Jefferies & Co. analyst Kevin Grundy. Stocks built on their gains over the last two hours of trading to close at their highest prices of the day. Income-seeking investors also bought shares of real estate investment trusts and utilities. The Dow Jones indus-
trial average climbed 118.95 points, or 0.6 percent, to 20,743. The Standard & Poor’s 500 index rose 14.22 points, or 0.6 percent, to 2,365.38. The Nasdaq composite gained 27.37 points, or 0.5 percent, to 5,865.95. All three indexes are at record highs after rising nine times in the last 10 days. The Russell 2000 index of smaller companies added 10.48 points, or 0.7 percent, to 1,410.34, also a record. U.S. markets were closed Monday for the Presidents Day holiday. Kraft Heinz and Unilever both slumped after Kraft withdrew a $143 billion offer to buy its rival. Unilever said the offer was too low and the companies said Kraft Heinz was giving up its effort. Unilever, the maker of Hellman’s, Lipton and Knorr, declined $3.66, or 7.5 percent, to $44.87. Kraft Heinz, which owns brands including Oscar Mayer, Jell-O and Velveeta, gave up $1.78, or 1.8 percent, to $94.87. Grundy, the Jefferies analyst, said the Kraft HeinzUnilever talks surprised Wall Street because Unilever gets most of its revenue from household products, not food. With the Unilever talks apparently done, analysts think Kraft Heinz is
Wall Street is etched in the facade of a building in New York’s Financial District. Stocks are opening higher on Wall Street, yesterday, as investors return from the holiday weekend in a buying mood. (AP Photo) still interested in buying another company and they are wondering if it will pursue a different consumer products company or stick to the food industry. He added that Unilever’s shareholders might push that company to make a deal as well. Kraft Heinz, which is mostly owned by 3G Capital and Warren Buffett’s Berkshire Hathaway, has a reputation for slashing costs to make bigger profits. Mondelez, which was once part of Kraft, climbed 5.8 percent and J.M. Smucker rose 4.4 percent, while cereal makers General Mills and Kellogg gained 3 percent and 2.5 percent, respectively. Household goods makers ColgatePalmolive, Kimberly-Clark and Clorox all jumped.
Wal-Mart rose $2.08, or 3 percent, to $71.45 after the company said its online business surged in the fourth quarter and it reported more business in the U.S. during the holiday season. Wal-Mart recently bought web-based retailers Jet.com and Moosejaw to strengthen its online sales, which have improved over the last two quarters. Online rival Amazon continued to set record highs as it rose $11.37, or 1.3 percent, to $856.44. Restaurant Brands International, the company that owns the Burger King and Tim Hortons brands, agreed to buy Popeyes Louisiana Kitchen for $1.8 billion. Last week Popeyes jumped from about $66 to $70 and then fell back again as reports about a possible
deal swirled. Restaurant Brands agreed to pay $79 a share for Popeyes, which climbed $12.61, or 19.1 percent, to $78.73. Restaurant Brands’ stock jumped $3.70, or 6.9 percent, to $57.60. Benchmark U.S. crude oil rose 66 cents, or 1.2 percent, to $54.06 per barrel in New York. Brent crude, used to price international oils, added 48 cents to $56.66 a barrel in London. In other energy trading, natural gas plunged 27 cents, or 9.5 percent, to $2.56 per 1,000 cubic feet. That was its lowest price in almost a year and it dragged natural gas companies lower. Wholesale gasoline shed 2 cents to $1.49 a gallon. Heating oil rose 1 cent to $1.64 a gallon. Scripps Networks, the parent of Food Network,
Travel Channel and HGTV, climbed after it reported better ratings and stronger ad sales. Its stock gained $5.46, or 7.2 percent, to $81.50 while Discovery Communications, the parent of TLC and Animal Planet, picked up 94 cents, or 3.3 percent, to $29.62. News Corp, which owns the Fox cable channels, rose 25 cents, or 1.9 percent, to $13.33. The dollar rose to 113.58 yen from 112.93 yen late Friday. The euro sank to $1.0547 from $1.0607. Bond prices slipped. The yield on the 10-year Treasury note rose to 2.43 percent from 2.42 percent. Gold dipped 20 cents to $1,238.90 an ounce. Silver lost 3 cents to $18 an ounce. Copper rose 4 cents to $2.75 a pound.
Board: Puerto Rico to be hit with painful austerity measures
SAN JUAN, Puerto Rico (AP) — The newly appointed head of a federal control board that oversees Puerto Rico’s finances warned on Tuesday that the U.S. territory will be hit with painful austerity measures in upcoming months. Interim Director Ramon Ruiz said there are no other options given the island’s dire economic situation and recommended that the government act quickly. “We allowed this to reach too critical of a point,” he said. “Everyone will be impacted by the decisions that will be made.” Gov. Ricardo Rossello has until next Tuesday to
submit a revised fiscal plan that will outline where the cuts will be made and what essential services will be affected. Some government officials have balked at measures suggested by the board, which include slashing $300 million from the public university’s budget and cutting 10 percent from a public retirement system that is expected to run out of money within a year. Last week, nearly a dozen top university officials resigned in protest of the looming cuts, and tens of thousands of retired government workers fear for their financial future. Ruiz said the local gov-
ernment is cooperating with the board, but warned that if it doesn’t submit a fiscal plan with cuts needed to address an anticipated $7 billion deficit, the board will implement its own plan. “We have to take control of the situation that exists,” he said. “A lot of people, especially those who are most vulnerable, will be affected if we don’t act immediately.” Ruiz also said it’s unlikely the board will extend a May 1 deadline that currently shields Puerto Rico from creditor lawsuits because it would not be fair to bondholders. His comments come just
days after a federal judge said he will hear arguments from bondholder groups opposed to a debt moratorium imposed by the island’s previous governor. The ruling was a blow to the government of the U.S. territory, which is seeking to keep negotiations alive with creditors and restructure nearly $70 billion in public debt amid a string of multimillion-dollar defaults. Ruiz declined to comment on the judge’s ruling because he said it was not final and could still be appealed. In addition to submitting a fiscal plan, the governor has approved several
NOTICE
NOTICE
EXXONMOBIL CHEMICAL QATAR LIMITED
EXXONMOBIL CHEMICAL QATAR LIMITED ________________________________________
________________________________________________
N O T I C E IS HEREBY GIVEN as follows: (a)
EXXONMOBIL CHEMICAL QATAR LIMITED is in dis solution under the provisions of the International Business Companies Act 2000.
(b)
The dissolution of the said Company commenced on the 20th day of February, 2017 when its Articles of Dissolution were submitted to and registered by the Registrar General.
Creditors having debts or claims against the abovenamed Company are required to send particulars thereof to the undersigned c/o P.O. Box N-624, Nassau, Bahamas on or before 20th day of March, A.D., 2017. In default thereof they will be excluded from the benefit of any distribution made by the Liquidator.
(c)
The Liquidator of the said Company is D. Levy, of 22777 Springwoods Village Parkway, Spring, Texas 77389, U.S.A.
Dated the 22nd day of February, A.D., 2017.
measures aimed at cutting costs, promoting economic development and stabilizing the economy. Rossello announced on Tuesday he would submit a measure calling for a special referendum that would allow police officers to vote on whether they want to be part of the Social Security system. Currently, Puerto Rico police officers do not receive Social Security and depend solely on the island’s troubled public retirement system for their pensions. Rossello also signed a bill aimed at retaining doctors in Puerto Rico. The territory’s number of doctors has dropped from 14,000 to
9,000 in the past decade, the majority leaving for higher salaries and lower living costs on the U.S. mainland. Overall, more than 200,000 Puerto Ricans have left the island in recent years, and many fear the exodus will worsen as new austerity measures are implemented. Ruiz said the board is not responsible for the consequences of those measures because it’s up to the local government to decide what services might be affected. “They have to be fiscally balanced within two years,” he said. “How they do that is their responsibility.”
NOTICE BALDIN MANAGEMENT INC. In Voluntary Liquidation Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, BALDIN MANAGEMENT INC. is in dissolution as of February 16, 2017 International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.
HARRY B. SANDS, LOBOSKY MANAGEMENT CO. LTD. Registered Agent for the above-named Company
D. Levy Liquidator 22777 Springwoods Village Parkway Spring, Texas 77389 U.S.A.
NOTICE SILVER WAREHOU CORP. In Voluntary Liquidation
DERWISH S.A. Company No. 498391 (In Voluntary Liquidation)
NOTICE CARDAYLES INVESTMENTS INC. In Voluntary Liquidation
Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, SILVER WAREHOU CORP. is in dissolution as of February 16, 2017
NOTICE is hereby given pursuant to Section 204 (1)(b) of the BVI Business Companies Act, 2004 that DERWISH S.A. is in voluntary liquidation. The voluntary liquidation commenced on 15th February, 2017 and Nina Racciatti of Talstrasse 83, 8036 Zürich, Switzerland, has been appointed as the Sole Liquidator.
Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, CARDAYLES INVESTMENTS INC. is in dissolution as of February 21, 2017
Dated the 22nd day of February, 2017
International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator. LIQUIDATOR ______________________
Dated this 16th day of February, 2017 Sgd. Nina Racciatti Voluntary Liquidator
LIQUIDATOR ______________________
International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator. LIQUIDATOR ______________________
PAGE 8, Wednesday, February 22, 2017
THE TRIBUNE
United, American begin selling cheaper economy-class fare days, none at all. Bargain hunters will see more basic-economy options when searching oneway flights, rather than round trips, because American will not allow flyers to buy a round trip that combines the new cheaper fare on one leg with a regular economy fare on the other. On one-way flights, the price break can be as little as $12. American, the world’s biggest airline, said it will eventually add basic-economy fares on other routes. The United offering is even more limited — it only appears on some flights between Minneapolis and seven United hubs around the country. United said it started small to ensure a smooth rollout, but plans to expand the idea to the rest of the U.S., the Caribbean and the closest destinations in Latin America. Basic economy fares were introduced by Delta Air Lines several years ago in response to growing competition from discounter Spirit
Airlines. Spirit and Frontier Airlines offer bargainbasement fares but add on more fees than the bigger airlines, including charging for use of overhead bins. They have gained ground among travelers looking for the cheapest price. Delta now offers basic economy on about 40 percent of its U.S. routes and plans to cover its entire domestic network by mid-year. The major airlines are losing customers whose internet searches skip American, United and Delta because of higher economy fares, industry consultant Robert Mann said. The new discount fares could help the big airlines by stimulating new demand and because some people who intend to buy a rockbottom fare will pick a traditional economy ticket instead, Mann said. Airline websites warn buyers of the restrictions on basic-economy tickets.
Board: Puerto Rico to be hit with painful austerity measures
Rossello also signed a bill aimed at retaining doctors in Puerto Rico. The territory’s number of doctors has dropped from 14,000 to 9,000 in the past decade, the majority leaving for higher salaries and lower living costs on the U.S. mainland. Overall, more than 200,000 Puerto Ricans have left the island in recent years, and many fear the exodus will worsen as new austerity measures are implemented. Ruiz said the board is not responsible for the consequences of those measures because it’s up to the local government to decide what services might be affected. “They have to be fiscally balanced within two years,” he said. “How they do that is their responsibility.”
DALLAS (AP) — American and United have started selling cheaper "basic economy" fares as they battle discount airlines for the most budget-conscious travelers. American announced early Tuesday that it began selling the new fares for flights starting March 1 on 10 different routes from its hub airports in Dallas, Miami, Philadelphia and Charlotte, North Carolina. United followed suit later in the day, posting reduced fares on some flights from Minneapolis to seven of its hub cities including New York, Chicago and Los Angeles for travel starting April 18. Basic economy fares come with severe restrictions. Buyers can’t pick a seat when they buy the ticket, they’re in the last group to board, and they can only carry a small item that fits under their seat. With a few exceptions, they must pay extra to check a wheeled bag that other economyclass travelers can put in the
SAN JUAN, Puerto Rico (AP) — The newly appointed head of a federal control board that oversees Puerto Rico’s finances warned on Tuesday that the U.S. territory will be hit with painful austerity measures in upcoming months. Interim Director Ramon Ruiz said there are no other options given the island’s dire economic situation and recommended that the government act quickly. “We allowed this to reach too critical of a point,” he said. “Everyone will be impacted by the decisions that will be made.” Gov. Ricardo Rossello
an American Airlines passenger jet takes off from Miami International Airport in Miami. American and United have started selling cheaper “basic economy” fares as they battle discount airlines for the most budget-conscious travelers, announced yesterday. (AP Photo) overhead bin. But the fares are cheaper. The savings over a regular economy ticket appear to range from about $24 to $40 for a round-trip ticket on American and United. For
has until next Tuesday to submit a revised fiscal plan that will outline where the cuts will be made and what essential services will be affected. Some government officials have balked at measures suggested by the board, which include slashing $300 million from the public university’s budget and cutting 10 percent from a public retirement system that is expected to run out of money within a year. Last week, nearly a dozen top university officials resigned in protest of the looming cuts, and tens of thousands of retired government workers fear
example, on two random early-March itineraries between Dallas and Baltimore, economy tickets were listed on American’s website at $249 and $309. Those same trips were priced at $209
for their financial future. Ruiz said the local government is cooperating with the board, but warned that if it doesn’t submit a fiscal plan with cuts needed to address an anticipated $7 billion deficit, the board will implement its own plan. “We have to take control of the situation that exists,” he said. “A lot of people, especially those who are most vulnerable, will be affected if we don’t act immediately.” Ruiz also said it’s unlikely the board will extend a May 1 deadline that currently shields Puerto Rico from creditor lawsuits be-
and $269 on basic economy. Even on the routes where American sells the new fares, they are usually available only on a small number of flights — sometimes one or two a day — and on some
cause it would not be fair to bondholders. His comments come just days after a federal judge said he will hear arguments from bondholder groups opposed to a debt moratorium imposed by the island’s previous governor. The ruling was a blow to the government of the U.S. territory, which is seeking to keep negotiations alive with creditors and restructure nearly $70 billion in public debt amid a string of multimillion-dollar defaults. Ruiz declined to comment on the judge’s ruling because he said it was not final and could still be ap-
pealed. In addition to submitting a fiscal plan, the governor has approved several measures aimed at cutting costs, promoting economic development and stabilizing the economy. Rossello announced on Tuesday he would submit a measure calling for a special referendum that would allow police officers to vote on whether they want to be part of the Social Security system. Currently, Puerto Rico police officers do not receive Social Security and depend solely on the island’s troubled public retirement system for their pensions.