08292016 business

MONDAY, AUGUST 29, 2016

business@tribunemedia.net

Corporations facing $1.6bn pension hole

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Governmentowned corporations will have a collective $1.6 billion deficit in their employee pension plans by 2032 unless urgent reforms are enacted, a report obtained by Tribune Business reveals.

The document, which was presented to the Christie administration by the KPMG accounting firm, provides stark evidence of the ‘ticking timebomb’ fac-

Liabilities to hit $2.2bn by 2032; only $600m funded KPMG urged ‘pooling’ all plans into central fund Looming crisis for hundreds, Bahamian taxpayer ing both employees of these corporations and the Bahamian taxpayer.

For in assessing the collective financial position of See pg b6

BoB rocked by new $24m loss

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Bank of the Bahamas suffered another $24 million loss for its 2016 financial year, shareholders have been told, as the BISX-listed institution asks them for a further $40 million in equity capital.

The prospectus for the bank’s rights offering, which aims to recapitalise it and end non-compliance with the Central Bank of the Bahamas’ regulatory requirements, indicates that little progress has been made in stemming the financial bleeding.

Unaudited figures for the

Makes $120m worth of ‘red ink’ in three years ‘Hell, no’ will shareholders take up $40m offering Funds to recapitalise, bring bank into compliance 12 months to end-June 2016 show that net losses at Bank of the Bahamas declined by 21.2 per cent year-overyear, falling from $30.397 million to $23.951 million.

The main reason for the near-$6.5 million improve-

ment was a 37 per cent rise in the bank’s total operating income, which increased from $6.785 million in 2015 to $9.289 million.

This, in turn, was driven by a $1.6 million jump in net See pg b4

BoB ‘can’t be serious’ over $40m rights offer

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Sarkis Izmirlian

James Smith

Leslie Miller

Sarkis slams CCA presence on Baha Mar committee

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Sarkis Izmirlian last night slammed the inclusion of a China Construction America (CCA) executive on the committee that will determine how much Baha Mar’s unsecured Bahamian creditors will receive, arguing that it was “not in their best interests”.

Mr Izmirlian’s comments, issued through his BMD Holdings vehicle, came af-

Says undermines creditor trust in payout process Miller: Under $500k to be made whole, others 50% James Smith, bank, receivers all on claims body

ter Tribune Business’s exclusive revelations of last week were confirmed by the Government, which announced the membership of the committee that will oversee payments to creditors.

Tribune Business last week disclosed that the agreement between the Government and the China Export-Import Bank, Baha Mar’s $2.45 billion secured creditor, called for payments to be made through a See pg b5

Sceptical shareholders yesterday said Bank of the Bahamas “cannot be serious” over the share price and one-week timeline for its $40 million rights offering.

Darron Cash, the former FNM chairman, described as “funny” the $2.70 per share selected by the BISXlisted institution for a rights offering that is intended to recapitalise the bank and end its non-compliance with Central Bank of the Bahamas requirements.

The $2.70 price represents a 48.3 per cent discount to Bank of the Bahamas’ current share price on the Bahamas International Securities Exchange (BISX), but Mr Cash said this still “grossly overvalued” the bank following its woes over the past three years.

He also blasted the oneweek timeline for the rights offering, which opens today and closes next Monday,

Ex-FNM chair says $2.70 price ‘grossly overvalued’ Blasts one-week offering timeframe as insufficient

September 5, as totally inadequate for the 35 per cent minority investors to assess the terms offered.

Suggesting that few, if any, minority shareholders were likely to subscribe for See pg b7

Shareholders to have more faith if Govt divests

$3.85 $3.89 $3.89

$3.89 Darron Cash

Moody’s: Reduced Govt spending ‘key’ to fiscal success

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Reduced spending is “key” if the Government is to hit its 2018-2019 surplus target and succeed in its consolidation efforts, Moody’s has warned, as it expressed concern over the “rising risk” posed by public corporations.

The international credit rating agency, in its full Bahamas country analysis, said the “increased debt burden” of state-owned entities presented a threat to the Government’s fiscal strength.

The analysis, released late last Thursday, added that the Government’s balance sheet would be negatively impacted should debts owed by the likes of BEC and the Water & Sewerage Corporation “materialise”.

“Given our expectations that an economic recovery will be gradual and growth will likely remain around potential (1-1.5 per cent), expenditure restraint will remain key to secure the success of the consolidation plan and to reverse the deterioration of the Government’s balance sheet,” Moody’s said.

“We expect fiscal discipline will play an important role to ensure expenditure reductions in real terms that would support the Government’s goal of a balanced budget by 2018-2019.”

It added: “High spending on social transfers and in-

Public corporation debt poses ‘rising risk’ Consolidation will be at ‘slower pace’ than forecast creased budgetary support to public-sector corporations have increased expenditures. The unemployment rate remains high, making reducing social transfers difficult.

“Additionally, with the increase in the debt burden there has also been a rise in interest payments that consumes a larger part of government revenues.”

Moody’s comments are significant, as they back warnings from both the International Monetary Fund (IMF) and the Bahamian private sector that ValueAdded Tax (VAT) and revenue enforcement/administration measures are not a fiscal panacea by themselves.

The credit rating agency’s analysis echoes their argument that a successful fiscal turnaround is heavily reliant on combining revenue measures with spending cuts and restraint, something the Christie administration has yet to consistently demonstrate it can achieve.

Moody’s, though, noted See pg b6

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PAGE PAGE 2, 2, Monday, Monday, August August 29, 29, 2016 2016

THE TRIBUNE THE TRIBUNE

Patience a virtue on Baha Mar deal

By Anthony Howorth Nassau

Anthony Howorth writes that Bahamians have an immediate opportunity to punish any agreement they believe is bad in May 2017

tions on persons or authorities other than the Governor-General.

Thus Parliament has the supreme power, subject to the Constitution. Article 72 reads: “(1) There shall be a Cabinet for the Bahamas, which shall have the general direction and control of the Government of the Bahamas, and shall be collectively responsible therefore to Parliament.”

It continues: “(2) The Cabinet shall consist of the Prime Minister and not less than eight other Ministers (of whom one shall be the Attorney-General), as may be appointed in accordance with the provisions of Article 73 of this Constitution”.

Clause 73 provides that not more than three senators may be included in the

Cabinet.

Clause 87 provides that no business shall be transacted at any meeting of the Cabinet unless a majority of the members for the time being are present.

It is also noted in Article 86 that the Cabinet shall not be summoned except by the authority of the Prime Minister. We are fortunate that he does summon Cabinet every week. Some Dictators never summon Cabinets in this way.

But what protocols exist, and how does the Cabinet operate?

The only other person at the Cabinet meeting is the Cabinet Secretary. It has been the practice in the Bahamas, no doubt inherited from the British system of Government, that the onus

of preparing the agenda for Cabinet meetings falls upon the Cabinet Secretary, who refers to the Prime Minister for instructions.

He may be instructed to call on respective ministers to prepare a Cabinet paper, or ministers may themselves submit papers requesting the Cabinet to approve certain actions. Such requests may be reviewed by the Cabinet Secretary and sent back to the minister for corrections or changes before being added to the Agenda. Thus matters may or may not be discussed at a Cabinet meeting depending on the agenda, and may be deferred.

The Cabinet meetings are confidential. The Cabinet papers are confidential. No See pg b7

Tourism focusing on accessibility

in Bangkok, the organisation has encouraged countries to join a global campaign and raise national consciousness for accessible tourism by conducting a symposium in their country.

As a part of this campaign, the Ministry of Tourism will host a one-day symposium at the Melia Nassau Beach Resort on Tuesday, September 27.

International guest speakers and local experts have been invited to participate.

Infrastructure audits of the country’s facilities such as hotels, public spaces and ports of entry are being conducted to see how the Bahamas measures up.

Architects, and those responsible for the country’s historic sites and attractions, are being informed of the need to be more inclusive in their designs.

Tour operators will also be apprised of the new rental amenities on the market that they can make available to disabled guests.

Tourism is hoping the

Government will consider special incentives for private sector businesses to begin to retrofit their properties in order to cater to this emerging market segment.

Such retrofits would include installing individual handicapped male and female bathrooms; grab railings; increasing the width of doors; special retrofitted wings in hotels; chair ramps and signage so as to accommodate all visitors.

Parliament has already passed the Persons with Disabilities Bill in 2014, and has established a Secretariat for the National Commission for Persons with Disabilities.

The Bill, now an Act of Parliament, seeks to eliminate discrimination against disabled people, and allow access to public buildings, transport and education.

It also mandated that businesses that employ 100 people or more must employ a minimum number of disabled people.

Whilst I respect the views of Fred Smith QC, as quoted in your Business edition of August 26, I disagree that any court would require the veil of Baha Mar secrecy to be lifted, particularly as the Constitution protects, in Article 15, the rights and freedoms of others and the public interest.

Why should the public need to know every detail of a deal struck by the receivers, the Government and the Chinese, given that the former’s main concern is to maximise the return to all the creditors? The court is there to protect the public interest as well as the interests of all the parties within

The Ministry of Tourism is aiming to tap into the billion-dollar market for disabled visitors, a sector it believes has long been overlooked. It will now begin to place accessibility at the heart of tourism development.

Janet Johnson, director in the Minister of Tourism’s office, said accessible tour-

the law.

Where in the Constitution is secrecy a crime? An examination of the Constitution and the provisions for executive Government. may be of significance.

It reads: “The Constitution of the Bahamas is the supreme law of the Commonwealth of the Bahamas (subject to such laws as may by passed Parliament that are not inconsistent with the provisions of this constitution).”

ism caters to visitors and residents alike.

It seeks to remove all barriers that would hinder and deny disabled persons, and even some who are aging, from enjoying easy access to everyday activities.

“It’s a win-win for everyone,” Ms Johnson said. “It’s a feel good initiative because we are doing the right

Bahamians elected the present executive government, which is established in accordance with the constitution. The constitution provides for the executive authority of the Bahamas to be vested in Her Majesty. (see Article 71.(1)). And by (2) and (3), this executive authority may be exercised by the Governor-General, either directly or through officers subordinated to the Governor-General, or by Parliament conferring func-

thing, while potentially benefiting from a relatively new and lucrative revenue stream.”

She explained that Barbados is leading the way, and benefiting handsomely with creative measures for disabled guests to experience the country, plus incentives for businesses that make accommodations for

this segment.

Obie Wilchcombe, minister of tourism, said this was an emerging market the Bahamas has to adapt to.

“We want to ensure that when guests come to our shores they can enjoy what we have to offer,” he said.

“It’s an important aspect that we want our visitors to know that we take seriously. We in the Bahamas want your stay to be memorable.

“Part of that is to ensure that all members of the family can access a particular space or take part in certain activities.”

The United Nations World Tourism Organisation’s (UNWTO) ‘World Tourism Day 2016 Celebration’, slated for September 27, will be held under the theme ‘Tourism for All – Promoting Universal Accessibility’.

While the UNWTO annual conference takes place

THE TRIBUNE

Monday, August 29, 2016, PAGE 3

PM reassures contractors over Baha Mar payments

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

Prime Minister Perry Christie last week summoned Bahamian contractors to a meeting at his office to urge them “not to mind the noise in the marketplace” about Baha Mar creditor compensation.

Larry Treco, president of CGT Contractors & Developers, who was present at the meeting, acknowledged that Bahamian contractors met with Mr Christie at the Prime Minister’s Office on Thursday.

He told Tribune Business: “When we met he wanted to reassure us about what he said, and not to mind the noise in the marketplace. I think we all left there very optimistic that this would happen.

Met with sector on Thursday Urged ‘not to mind noise in marketplace’ “We really have to just wait and see how this all plays out. The Prime Minister said it’s going to happen, so we have to take him at his word and wait to see how it develops. We all hope that it does. He says that things should be happening next month, so I guess we will see how that comes out.”

A collective $74 million was said to be owed to some 123 Bahamian contractors when Baha Mar was placed into Chapter 11 bankruptcy

protection in June 2015.

Mr Christie last week announced the agreement with the China ExportImport Bank to complete Baha Mar, with construction on the stalled $3.5 billion project expected to resume next month.

He said Bahamian creditors will receive “a significant part, and possibly all” of the monies owed to them during a televised announcement last Monday evening at the Cabinet Office.

Mr Christie said many of the Bahamian contractors and companies previously contracted to work on Baha Mar will likely be rehired to help complete the project, with China Construction America (CCA) to resolve all monies outstanding to its suppliers and sub-contractors.

Baha Mar remains unfinished - what will come of it in 2016?

Development Plan talks to intensify

By NATARIO McKENZIE

Triibune Business Reporter

nmckenzie@tribunemedia.net

The National Development Plan (NDP) Secretariat plans to have more intense public outreach on the goals it is seeking to achieve, according to the Government’s lead official on the initiative.

Dr Nicola Virgil-Rolle, speaking with Tribune Business following a recent update on the National Development Plan Vision

2040, said: “We are at the place now where the first draft of the plan is with our steering committee, which is giving us comments on that.

“We are then moving it on to Cabinet, and then we begin a very vigorous period of discussions on the actual strategy associated with each of those goals; the action steps, the deliverables, all of the elements of the plan with the Bahamian public. We will refine that over the next few months

so that we can finalise the plan.”

Vision2040 focuses on four main policy pillars the economy, governance, social policy and the environment, both natural and built.

“We will be having deeper discussions with the public and more outreach to go over each of the goals in detail,” said Dr VirgilRolle, adding that the draft National Development Plan consists of some 500 strategy pages.

Hotel union backs gratuities inclusion in wage definition

By NATARIO McKENZIE

nition of wages will have an “astronomical” impact on its cost base, and could drive some properties “out of business”.

The issue is set to be discussed at an upcoming National Tripartite Council meeting this week, following which recommendations will be made to the Government.

Ms Martin said that while the issue has been talked about, she was unaware of any move on the matter.

“While there has been some discussion, I am not away of any move on it,” she said. “I’m not even apprised as to whether anything was formally submitted to the Council.

“I know that we were in talks with the Government to have some amendments

to the Employment Act and Industrial Relations Act. It is something that we have talked about, and the truth of the matter is we have been in discussions with the Government, trying to get something done, but I don’t really know where that is.”

Ms Martin said the BHCAWU, which represents the largest number of hotel employees, has been agitating for such a move.

“That is how we got gratuities for the purpose of benefits for NIB done. We have long wanted the gratuity to be treated the same way. Our people make their living by gratuities mostly, and those gratuities are not formalised in the sense of being treated as wages other than for NIB,” she added.

Russia to resume charter flights for tourists to Turkey

stab in the back."

After Turkish President Recep Tayyip Erdogan apologized for the downing, he and Putin patched up relations at a meeting three weeks ago. Putin said then that charter flights to Turkey could resume "in the near future," but added that painstaking work was still needed to revive trade and economic cooperation.

Tribune Business Reporter

nmckenzie@tribunemedia.net

The hotel union’s president says it has “long wanted” the Employment Act to include gratuities in its definition of wages, given that the former was a substantial proportion of the take home pay for many employees.

The position taken by Nicole Martin and the Bahamas Hotel, Catering and Allied Workers Union (BHCAWU) thus conflicts directly with that taken by industry employees.

Tribune Business revealed on Friday how the hotel sector has expressed concern that proposals to include gratuities in the Employment Act’s defi-

MOSCOW (AP) — Russia has lifted its ban on charter flights to Turkey, opening the way to a resumption of the package tours that were a major source of revenue for Turkey.

In rescinding the ban on Sunday, Prime Minister

Dmitry Medvedev said he was doing so on the orders of President Vladimir Putin.

Russia imposed the ban in November after Turkey shot down a Russian warplane at the Syrian border, an action that Putin denounced as a "treacherous

Consumer confidence in Florida sliding downward again GAINESVILLE, Fla. (AP) — Consumer confidence in Florida is sliding to its lowest level in a year.

The monthly University of Florida consumer sentiment released Friday measured confidence at 88.2, which is nearly five

points lower than it was in July. The consumer sentiment is rated on a scale of 2 to 150 benchmarked to 1966 at a value of 100.

Researchers said that Floridians are becoming more pessimistic about their personal financial

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Hector H. Sandoval, director of the Economic Analysis Program at UF’s Bureau of Economic and Business Research, said despite positive economic signals that consumer sentiment among Floridians “seems to remain gloomy.”

“It’s also important to note that each set of actions have outputs and outcomes and timeframe for delivery, who is responsible and a

prioritisation for the system so that we can plan out how to to actually implement that,” said Dr Virgil-Rolle.

“The College of the Ba-

hamas has agreed to serve as sort of the watchdog over the plan’s implementation, so they will be monitoring implementation by publishing an annual report on the process of implementation and looking at the monitoring evaluation framework around the plan.”

PAGE 4, Monday, August 29, 2016

BoB rocked by new $24m loss From pg B1 fee and commission income to $5.23 million. However, Bank of the Bahamas continues to be weighed down the by poor quality of a large segment of its loan portfolio.

Loan loss provisions associated with ‘bad loans’ remained relatively flat yearover-year at $24.5 million, down slightly from $26.124 million the year before, indicating that more troubled credit needs to be removed from Bank of the Bahamas’ balance sheet if it is to properly recover.

The BISX-listed institution’s balance sheet for endJune 2016 again shows that it would be insolvent, with liabilities exceeding assets, were it not for the $100 million worth of bonds injected into it as part of the October 2014 ‘bail out’.

And, with the bank having suffered a collective $120.682 million net loss

over the past three years, the $54.622 million retained earnings ‘write back’ produced by the ‘bail out’ has been eliminated by a $594.549 million accumulated deficit.

Bank of the Bahamas’ net equity also slid, dropping by almost one-third to close June 2016 at $63.545 million, down from $90.786 million the year before.

Shareholder reaction to news of the $40 million rights issue, which was unveiled formally on Friday afternoon, was highly sceptical.

Mike Lightbourn, Coldwell Banker Lightbourn Realty’s president, responded “hell no” when asked if he would exercise his rights, which are to acquire an extra share for each 1.44 he currently holds.

“Would you have anything to do with Bank of the Bahamas?” he asked.

“Case closed. Nobody with

any sense will take up any shares. The Government can buy that, I guess, and take it up.”

Another shareholder, speaking on condition of anonymity, also told Tribune Business that few existing investors would likely subscribe for extra shares in the offering.

By not electing to take up their rights, these shareholders will see the percentage of Bank of the Bahamas that they own diluted.

Given that the Government owns 65 per cent of Bank of the Bahamas’ equity via the National Insurance Board (NIB) and the Public Treasury, the shareholder suggested that the latter two entities would be used to purchase any shares not acquired by existing investors.

While the offering document makes no specific reference to this potential outcome, the shareholder suggested that if this occurs, then the Bahamian public and taxpayer will again be ‘bailing out’ Bank of the Bahamas through NIB and the Treasury.

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“I think that very few shareholders will opt to buy additional shares at this point in time, and I think that what will probably happen is that NIB, and maybe the Treasury, will take up all the outstanding rights, so those people will be diluted,” the shareholder said.

“That will mean that the national debt goes up again, and that the public is having to bail out the bank again.”

Bank of the Bahamas, in unveiling the offering price of $2.70 per share, described the price as “attractive”, and urged its 4,000 shareholders to ignore the troubled recent history and questionable future prospects - in making their investment decision.

“Since its initial public offering in 1994, investors have been paid about $50 million in dividends, which is a more than respectable rate of return. Given the support of this history, those adding to their holdings in the bank can do so with confidence,” its chairman, Dr Richard Demeritte, said.

“It is important to note that BOB is aggressively pursuing two main avenues in going forward. We are assuring Bahamians of the solidity of the Bank’s capitalisation and continuing to strengthen our services to Bahamians across the archipelago.”

The rights offering prospectus does not appear to be available yet on either Bank of the Bahamas’ website or that of Leno Corporate Services, the management and placement agent, despite this being promised in the press release.

However, Tribune Business has managed to obtain a copy, which reveals that the Bahamas International Securities Exchange (BISX) quietly increased “the trading bandwidth” for Bank of the Bahamas stock.

BISX normally allows trading prices for its listed stocks to only fluctuate by a maximum of 10 per cent either side of the previous day’s close, in a bid to eliminate market volatility produced by small retail sellers wanting to get out at any price.

However, the rights offering document says: “On Thursday, July 14, 2016, BISX announced an increase in the trading bandwidth for BOB ordinary shares from 10 per cent to 20 per cent.

“Due to the financial circumstances of the bank over the past three years and stagnant trading, market sentiment reflected that the price was overvalued at $5.22 and the band needed

to be increased to encourage trading in order to bring the price in line with its true value.”

Explaining how the rights issue price was calculated, the prospectus added: “Using this premise, and the last price at which the shares executed of $4.70, the price was further discounted 42.5 per cent to arrive at the issue price of $2.70.

“Thereby, once the rights offering closes and the stock begins trading ex-rights, it would average out to a price of $4.18, which would amount to a 20 per cent decrease in the current market price of $5.22.

“This ex-rights price would satisfy the initial 20 per cent bandwidth decrease in the current price to stimulate trading in the security.”

Market analysts, though, remained sceptical of the $2.70 price, suggesting the rights were “improperly valued”.

“There’s no value in going into the bank unless you take the Government out of it,” one market analyst, speaking on condition of anonymity, told Tribune Business. “The top line price is not real.”

Explaining the purpose of the rights offering, Bank of the Bahamas said a net $39.56 million would be raised from the placement of 14,814,814 shares if all rights were exercise. Leno and Graham, Thompson & Company, the legal and financial advisers will both receive $215,000 fees that are VAT inclusive.

“The net proceeds from the issuance of the ordinary shares will be used to fund the company’s planned growth in consumer lending, as well as to facilitate the company’s operational efficiency, with the ultimate result of complying with Tier 1 capital requirements with the Central Bank of the Bahamas,” the prospectus said.

Thus the proceeds are intended to bring Bank of the Bahamas into line with the two Central Bank capital ratios it has been in noncompliance with for the past year, plus facilitate its switch into consumer lending - an extremely crowded marketplace.

The rights issue will come as little surprise to informed shareholders, given that Prime Minister Perry Christie confirmed in his 20162017 Budget address that it was party of Bank of the Bahamas’ recapitalisation strategy.

This is to be accompanied by a convertible bond issue, which also remains part of

THE TRIBUNE the plans, the prospectus confirms.

“BOB’s current financial position is challenged, and financial support is needed to develop and execute on the transformation strategy and achieve a sustainable operating model,” the document admitted.

“Incremental capital of about $40 million is required to shore up BOB’s capital ratios for its Tier 1 Capital. In addition, the bank is exploring a contingent convertible capital instrument as a further funding measure to address any future losses.”

Bank of the Bahamas shareholders were warned that they faced dilution if they both failed to take up their rights in the current $40 million offering, and if the bonds were ultimately converted to equity.

Details of how Bank of the Bahamas plans to get itself ‘out of the hole’ were much vaguer, with the prospectus suggesting this relies both on the switch to consumer lending and becoming the exclusive payments agent for all the Government’s financial business.

“The bank is seeking to transform itself to become a more consumer-based bank, with laser-focused attention on growing its retail business on both the deposit and credit side,” the prospectus said.

“In addition, the bank will leverage its relationship with the Government to become a major payment hub for the Government of the Bahamas.”

The extent to which the Government, together with the web shops, is propping up Bank of the Bahamas’ deposit base is shown by the near-$110 million increase in deposits by the Christie administration during the 2015 financial year.

The rights offering document also admitted that Bank of the Bahamas’ revival “will take time”, and that “substantial progress will be made” in the coming months, with the groundwork having been laid since March.

The only detail of note, though, is that Bank of the Bahamas is “in the process of right-sizing its cost base to release capital or otherwise meet stakeholder objectives. The bank is establishing reasonable cost saving targets to drive optimisation”.

It is unclear whether this implies redundancies among Bank of the Bahamas’ 342-strong workforce.

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THE TRIBUNE

Monday, August 29, 2016, PAGE 5

Sarkis slams CCA presence on Baha Mar committee From pg B1 proper structure supervised by the committee.

This newspaper also reported that creditors owed $500,000 and less, which will largely by the 2,000 former Baha Mar staff, are to be paid first, while others with larger claims - such as suppliers of goods and services, and the 123 Bahamian contractors owed a collective $74 million - will do “fairly well”.

However, Tribune Business was told that how much larger claimants will receive will depend on their particular circumstances and contracts, and that there will be an element of “negotiation, compromise and settlement” - indicating they may not receive 100 per cent of what they are owed.

These details were effectively confirmed by Leslie Miller, the PLP MP who is himself a Baha Mar creditor, who yesterday said those owed $500,000 or less would be made ‘whole’.

Those with larger sums will likely recover around 50 per cent.

Mr Miller said: “I understand that those up to $500,000 will get full pay, and after that you will have to negotiate and hopefully you’ll get 50 per cent. That

is what I am told.”

A number of Bahamian creditors, who have been waiting around 20 months to receive payment, are likely to regard 50 per cent as better than nothing, given that many will probably have written off their Baha Mar debts.

Tribune Business sources last week confirmed that more than 90 per cent of creditors would get paid, although how much, when and by whom was not revealed.

The Government, in a statement yesterday, expressed hope that the settlement of small claims - mainly those by former Baha Mar employees for severance pay and other benefits - would be settled

by September 30, 2016.

It is aiming for all other creditors to be paid by yearend, given that the China Export-Import Bank will “shortly place on deposit in the Bahamas the funds necessary” to effect the payouts.

The Government, while confirming that the Supreme Court-approved agreement had provided a formula for paying Bahamian creditors and how those claims would be assigned, acknowledged that

German economy minister says EU-US trade talks have failed BERLIN (AP) — Free trade talks between the European Union and the United States have failed, Germany’s economy minister said Sunday, citing a lack of progress on any of the major sections of the long-running negotiations.

Both Washington and Brussels have pushed for a deal by the end of the year, despite strong misgivings among some EU member states over the Trans-Atlantic Trade and Investment Partnership, or TTIP. Sigmar Gabriel, who is also Germany’s vice chancellor, compared the TTIP negotiations unfavorably with a free trade deal forged

between the 28-nation EU and Canada, which he said was fairer for both sides.

“In my opinion, the negotiations with the United States have de facto failed, even though nobody is really admitting it,” Gabriel said during a question-andanswer session with citizens in Berlin.

He noted that in 14 rounds of talks, the two sides haven’t agreed on a single common item out of 27 chapters being discussed.

Gabriel accused Washington of being “angry” about the deal that the EU struck with Canada, known as CETA, because it contains elements the U.S. doesn’t

the timing of payouts would depend on the committee.

The committee’s membership features former finance minister and Central Bank governor, James Smith; Grant Lyon, the Government’s liquidation claims advisor; Yanping Mo, representative of the ChinaExport-Import Bank); Norbert Chan, a representative of Deloitte & Touche (Baha Mar’s receivers); and Tiger Wu, representing CCA. The involvement of CCA likely could not be avoided, given that it will be required to adjudicate on the claims submitted by its sub-contractors, and determine whether these are valid.

However, CCA’s place on the committee particularly vexed Mr Izmirlian, who said its inclusion would undermine creditor trust in the process given the previous alleged failings of Baha Mar’s main contractor.

“It is hard to understand how the best interests of unsecured creditors can be served by a committee that specifically includes the Chinese Construction Company (CCA) and its executive, Tiger Wu,” Mr Izmirlian blasted.

“This is the same CCA and Tiger Wu who failed to meet construction deadlines, causing Baha Mar to not be completed and to not open. It is the same CCA that created a Baha Mar creditor situation in the first

place.

“It is the same CCA that opposed the Chapter 11 filing and helped to stop the developer’s reorganisation plan to pay Bahamians in full and complete Baha Mar with Bahamian contractors.

And this is the same CCA and leadership which have been sued in various legal proceedings for failing to pay parties to whom CCA owes monies for its nonperformance.”

Mr Izmirlian concluded: “CCA has proven itself to be a serial deceiver of the Prime Minister of the Bahamas and the Bahamian people. The unsecured creditors of Baha Mar have every reason to be wary and concerned about the credibility of this committee and its agenda.”

However, a Tribune Business source familiar with the Baha Mar situation, yesterday again backed the Government’s position that “real money and remobilisation” will flow from the Government’s agreement with the Chinese bank and contractor to complete the property’s construction.

“It’s not just a game and smoke and mirrors here.

This is going to be real money and remobilisation,” the source, speaking on condition of anonymity, said.

“There is real money, and creditors and employees are going to get real money, and money is probably going to

want to see in the TTIP. “We mustn’t submit to the American proposals,” said Gabriel, who is also the head of Germany’s center-left Social Democratic Party.

In Washington, there was no immediate comment from the office of the U.S. trade representative.

Christian Wigand, a spokesman for the European Commission, the EU’s executive arm and which is leading the TTIP negotiations, said Sunday that the institution had no comment or reaction at this time.

Gabriel’s ministry isn’t directly involved in the negotiations with Washington because trade agreements are negotiated at the EU level. But such a damning verdict from a leading official in Europe’s biggest economy is likely to make further talks between the EU executive and the Obama administration harder.

Gabriel’s comments contrast with those of Chancellor Angela Merkel, who said last month that TTIP was “absolutely in Europe’s interest.”

Popular opposition to a free trade agreement with the United States is strong in Germany. Campaigners have called for nationwide protests against the talks on Sept. 17 — about year before Germany’s next general election.

start flowing in the next 3060 days.”

Tribune Business was also reminded that the China Export-Import Bank was under no obligation to pay the former employees and creditors one cent, given that these were liabilities owed by Mr Izmirlian and Baha Mar. As for the investment incentives granted to the Chinese, this newspaper’s source said that there was “a package of concessions”, but in negotiating them the Government was mindful that it could not go beyond what had been granted to Atlantis.

This implies that Customs duties and VAT will have been waived on all construction materials and fixtures/ furnishings imported for the project, adding to the $1.2 billion granted previously to Mr Izmirlian.

Tribune Business also understands, though, that Stamp Tax may be waived on the sale of Baha Mar to any buyer and the property’s transfer out of receivership for construction completion - an element that is a potentially major revenue earner for the Treasury.

This newspaper’s source,

meanwhile, suggested that the fundamental problem underlying public reaction to the Baha Mar deal was the lack of trust the Bahamian people had in the Government.

With many believing the Christie administration was hiding something, and had “ulterior motives” and “hidden agendas”, they said that convincing the public to buy into the agreement currently was “hopeless”.

Likening the situation to the public’s reaction to recently-failed constitutional referendum, the source said: “If the Government said it wants to provide free milk for babies, the public would be saying: We don’t believe them because no one trusts them.

“When the Government loses the trust of a large segment of the public, it’s very difficult because people assume the worst.

“The public does not trust the Chinese either, making it a double whammy. It’s compounded. They don’t trust the bank, the don’t trust the construction company, and they don’t trust the Government. Put all that together, and it’s hopeless.

Restaurant Equipment for Sale 6 Compartment Gas Food Warmer Beverage Cooler Griddle 8’ Exhaust Hood with Roof Fan Fire Suppression System 7’ Freezer Pizza Warmer/Pastry Display 3 Compartment Sink Stanchions......and more Interested persons contact Tonya at 436-0986 or 328-1801.

PAGE 6, Monday, August 29, 2016

Corporations facing $1.6bn pension hole From pg B1 pension plans at corporations such as BEC and Water & Sewerage, KPMG estimated that within 16 years their collective $600 million in assets will be dwarfed by some $2.2 billion in liabilities, which represent benefits owed to present and future retirees.

“Accrued liabilities are expected to grow to around $2.2 billion over 20 years,” the KPMG presentation said. “Assets are expected to grow to around $0.6 billion over 20 years on the assumption that all corporations pay amounts equal to the cost of accruing benefits.”

This data, which has never been revealed publicly before, suggests that Government-owned Corporations and entities will incur a collective $1.6 billion in unfunded pension liabilities within 16 years, as opposed to the current $600-$700 million ‘gap’, if the status quo remains.

Apart from potentially impacting the retirement incomes and living standards of hundreds of Corporation employees and their

families, the situation also threatens to impose an impossible financial burden on the Bahamian public and taxpayer if they have to be called upon to fill the gap.

To avoid the looming crisis, KPMG suggested that all existing corporation pension plans - their assets and liabilities - be transferred into a single, centralised plan, followed by the windup of the existing schemes.

The Government would support the new plan via an undertaking, with agreed contribution rates for past and future beneficiaries from the corporations.

KPMG said all financing risks would be transferred to the Government under this structure, with legacy funding commitments “treated as a fixed debt repayment in the corporations.

It added that “pooling” all existing plan assets and liabilities into one would boost investment and administrative efficiency, provide for greater control and transparency, and centralise governance.

“There are a wide range of benefit changes that could be made,” KPMG

Moody’s: Reduced Govt spending ‘key’ to fiscal success From pg B1 the Government’s plans to start restraining spending after the 2016-2017 fiscal year, a period during which the next general election is likely to be held.

The Christie administration’s own projections, unveiled with the 2016-2017 Budget, show recurrent (fixed cost) spending peaking at $2.321 billion during the current fiscal year.

That represents a 7.7 per cent year-over-year increase, but the Government is forecasting that recurrent spending will start to taper off in 2017-2018, declining by $19 million to $2.301 billion.

A further fall to $2.262 billion is projected the fol-

lowing year, with recurrent spending as a percentage of Bahamian GDP peaking at 25.3 per cent this fiscal year, before dropping to 24.2 per cent and 22.8 per cent in 2017-2018 and 2018-2019, respectively.

However, the fiscal forecasts reveal just how much ‘the size of government’ has increased over the past decade, given that ‘recurrent spending has jumped from $1.642 billion in 2010-2011 to a $2.321 billion peak in 2016-2017 - a rise of $679 million or 41.4 per cent.

Moody’s, meanwhile, warned that debt the Government has guaranteed on behalf of the public corporations and other state-owned agencies represents a potentially major drag on its

THE TRIBUNE

said of the Corporation plans, adding that there was “more flexibility” for reform here than with the civil service.

“Many will be challenging to implement, although some may be welcomed by employees.”

The situation facing the public corporations’ pension schemes also threatens to exacerbate the issues the Government faces in dealing with the unfunded pension liabilities relating to the civil service, plus police and Defence Force officers.

KPMG previously disclosed that unfunded public sector pension liabilities, which it currently estimates at around $1.5 billion, are set to increase to $2.5 billion by 2022, and $4.1 billion by 2032.

Add in the figure for the public corporations, and it appears that the Government’s total unfunded pension liabilities could be as much as $5.7 billion in less than two decades.

“Deficits in the corporations are also significant, and carry an implicit government guarantee,” KPMG said.

The accounting firm’s presentation, which Tribune Business has gone to great lengths to obtain, is dated late July 2013, meaning that the Christie admin-

istration has known of the looming crisis for at least three years.

However, despite recent warnings from the International Monetary Fund (IMF) about the need to prevent such liabilities from “crystallising” and adding to the Bahamas’ $6.778 billion national debt, they do not appear to be a current policy priority for the Government.

Michael Halkitis, minister of state for finance, has previously spoken to the need for public sector pension reform, but the current administration - and its predecessors - have done little to address what KPMG has described as akin to “the iceberg that sank the Titanic”.

“Such growth of public pension liabilities and cash outflows is not sustainable given the fiscal position of the Bahamas,” the KPMG presentation warned succinctly.

The accounting firm told the Government that unfunded pension liabilities were a major impediment to any efforts to privatise government corporations, given the financial costs potentially imposed on buyers, and also undermined the purchase price it might receive.

“One of the major hur-

dles for the Corporations in obtaining debt financing is the future cash outflow required to support pension arrangements,” KPMG said.

“Pensions are therefore a barrier to the capital plans of the Corporations. Further, in any future privatisation of a Corporation, a buyer is likely to take a cautious approach to assessing pension liabilities, impacting Government’s sales proceeds.”

The Government is already familiar with the consequences, given that it had to grapple with the Bahamas Telecommunications Company’s (BTC) $38-$39 million unfunded pension liabilities during the sale of 51 per cent majority control to Cable & Wireless Communications (CWC) in 2011.

This likely reduced the purchase price CWC paid to around the final $206 million, but the problems did not cease with the sale.

Under the terms of the deal, the then-BTC pension plan was to be closed to new entrants, who would be placed into a new one sponsored by the company. The Government was then supposed to take responsibility for ‘filling the hole’.

Yet Prime Minister Perry Christie recently bemoaned

the alleged failure of the former Ingraham administration to cover the original $39 million deficit, alleging it had now ballooned to $99 million. The pension fund issue is also probably why the likes of Sir Franklyn Wilson have criticised the BTC sales price.

Meanwhile, the KPMG report also warns: “The Government has restricted control and visibility over the operation and financing of the Corporation’s pension arrangements.

“Decisions taken by Corporation Boards in union contract negotiations can (sometimes unknowingly) have severe impacts on pension liabilities.”

KPMG added that collective pension plan contributions among the corporations currently stands at $12 million per annum, with employees making no payments under these defined benefit schemes.

Describing the funding levels as “generally low” and deteriorating, the accounting firm said contributions were “not matching the accrual of benefits”.

And some corporations were “relying on government subventions to finance current pensions”.

finances should such liabilities crystallise.

“A potential rising risk to the Government’s fiscal strength is the increase in the debt burden of stateowned enterprises (SOEs), which reached 17.6 per cent of GDP in 2014-2015,” Moody’s warned.

“Although less than half of it is fully guaranteed by the central government, should these contingent liabilities materialise, it would have an important negative effect on the Government’s balance sheet.

“Potential reforms to SOEs would be key to ensure that their finances improve, both to reduce the necessity of sovereign support and to decrease the current transfers the central government makes every year that impact its own fiscal deficit.”

Taxpayer subsidies worth between $50-$60 million

per annum are continuing to prop up perennial lossmakers such as Bahamasair, Water & Sewerage Corporation, the Broadcasting Corporation of the Bahamas and Hotel Corporation of the Bahamas.

Apart from the Bahamas Telecommunications Company (BTC) privatisation, the Government’s reform efforts to-date have focused on the energy sector and the contract with PowerSecure International to manage the Bahamas Electricity Corporation (BEC), an initiative that has yet to fully deliver the promised benefits.

One aspect of the BEC reform effort is the refinancing of its legacy debts ‘off balance sheet’ via a Rate Reduction Bond (RRB), an initiative that would remove the liability of a $245 million government guarantee from the national debt.

Tribune Business reported last week how Moody’s had joined the IMF in projecting that the Government will likely overshoot by $100 million its projected 20152016 fiscal deficit target of $150 million.

Together with the upward revision of the 2014-2015 fiscal deficit, from 2.3 per

cent of GDP to 4.4 per cent, Moody’s said: “These instances show that fiscal consolidation has been more gradual than previously thought, especially as VAT helped increased revenues by almost 3 per cent of GDP in one year, and has pushed our estimate of the peak in debt-to-GDP ratio to the end of 2016/17.

“Given our expectation that fiscal consolidation will proceed, albeit at a slower pace than envisaged by the Government, we forecast that the debt-to-GDP ratio will continue rising through 2016-2017.

“Thereafter, the ratio would begin to gradually decline contingent on further deficit reduction and the materialisation of an economic recovery in 201619. Given these debt dynamics, we do not expect the Bahamas’ fiscal strength to materially improve relative to peers over the coming years.”

Moody’s, though, acknowledged that the structure of the Government’s debt, and especially the dates when it had to repay investors their principal (maturities), remained favourable.

This, it added, was further boosted by the fact that just over one-quarter, or 28 per cent, of the Bahamas’ $6.778 billion national debt was held by foreign investors.

“The Bahamas’ maturity profile is favourable, with over 70 per cent of government debt maturing in more than five years, and 46 per cent in more than 10 years,” Moody’s said.

“Given this long maturity profile, amortisations tend to be low. Therefore, while the Bahamas has run large fiscal deficits, its overall financing requirements remain below those of other Baa-rated peers.

“In addition, the Government’s external debt as a share of total government debt is relatively low and compares favourably with that of most rating peers.”

All this, Moody’s added, helped to “mitigate some of the risks” associated with the Bahamas’ sizeable debt burden.

The ‘Bahamian dollar’ investor base, it said, had helped the Government to extend the maturity of most bond issues beyond 10 years.

THE THE TRIBUNE TRIBUNE

Monday,August August 29, 29, 2016, 2016, PAGE PAGE 7 Monday, 7

BoB ‘can’t be serious’ over $40m rights offer From pg B1 extra shares, Mr Cash said they would be more inclined to invest if the Government were to reduce its 65 per cent majority shareholding.

The Government holds this position via a combination of the National Insurance Board (NIB) and the Public Treasury, and Mr Cash suggested that a reduction in its holdings would give shareholders confidence that a change in the bank’s policies may be forthcoming.

“My immediate thought was: They couldn’t be serious,” Mr Cash replied, after being informed of the Bank of the Bahamas rights offering and its terms by Tribune Business.

“I confess that I am very, very sceptical and that I’m tempted to speak in more derisory terms, but I will give them the benefit of the doubt to see whether the prospectus puts out answers to the questions shareholders have.”

The bank is offering existing shareholders as at July 31, 2016, the opportunity to

purchase an extra share for every additional 1.44 that they hold, and at a price of $2.70, in a bid to raise $40 million of equity capital.

Bank of the Bahamas said the funds raised would be used to bring it into compliance with the Central Bank’s Tier 1 capital requirements, given that it has been in breach of two of the latter’s five key capital ratios for almost a year.

Its prospectus, a copy of which has been obtained

by Tribune Business, states that the monies - if raisedwill also be used to finance the bank’s “growth in consumer lending” and “operational efficiencies.

Mr Cash, though, took issue with both the one-week offering duration and the $2.70 share price. “It seems to me that under most normal circumstances, a week is an unrealistic time for shareholders to understand the details of a rights offering,” he told Tribune Business.

“And for a company as deeply troubled, and troubled for such a sustained

Patience a virtue on Baha Mar deal From pg B2 Cabinet minister may retain documents presented at Cabinet unless specifically authorised by the Prime Minister, who controls all Cabinet decisions. We are led to believe that Cabinet decisions are unanimous.

But, in fact, no vote is taken, and the meetings are more of a discussion to take the views of all the members present. The consensus opinion is recorded by the Cabinet Secretary, and after approval by the Prime Minister, circulated or provided to the Minister in respect of his Cabinet paper for action.

As stated, the Cabinet is collectively responsible to Parliament. In effect, the Prime Minister controls the Cabinet. Is this democracy? Why should secret negotiations be made public? Is it in the interests of the Bahamian people that every detail negotiated on their behalf is made public, when they have elected the Members of Parliament and the Prime Minister to act in their best interests? If they don’t like what is done in their best interests, they can make that known at the next democratically held election and vote in members of Parliament who support their views.

Every minister, as provided for in the various laws and regulations of the Bahamas, may be given power to enact decisions either on his own or, if he considers it appropriate, following a

submission to the Cabinet.

Thus the wheels of Government move slowly on, or don’t move at all. Too often, Ministers do not take any action, and defer matters to a Cabinet meeting. Too often ministers, including the Prime Minister, do not obey their own laws and regulations. One example is that Government Boards must have their accounts, audited or not, before Parliament every year. There are several cases where this has not occurred, and no Opposition member has complained.

Crown Land applications are another case of the executive not acting in the interests of the Bahamian people. We are told by Fred Smith, QC that more than 30,000 applications for Crown Land grants have never had a formal response by successive governments.

He has established a nonprofit organisation called Crown Land for Bahamians (CLB), aimed at highlighting the perversion of foreign developers being given Crown Land, whether freehold or under a lease, whereas thousands of Bahamians are not even given the courtesy of a reply to their applications.

Crown Land is held in trust by the state (as property of the Crown), and the Prime Minister alone being the statutory trustee. He may claim that he is holding the land for the benefit of all Bahamians present and future, but is this in

period of time as Bank of the Bahamas has been, it seems that a week is completely unreasonable for shareholders to evaluate the offering.”

Both Mr Cash and Michael Lightbourn, a fellow Bank of the Bahamas shareholder, told Tribune Business yesterday they had yet to receive the prospectus setting out all the rights offering details.

However, one other shareholder, speaking on condition of anonymity, told this newspaper that he had obtained a copy of the rights offering document.

Tribune Business understands that the prospectus was sent out to investment houses, brokers and other institutional money managers on Friday.

However, this raises questions about information asymmetries and the maintenance of an orderly Bahamian capital market, given that some Bank of the Bahamas shareholders gained an advantage over their fellow investors.

The Bank of the Bahamas prospectus does include an explanation for how the $2.70 rights offer price was calculated (see other article on Page 1B), and discloses that the company’s stock

will commence trading post-offering at $4.18 - a 20 per cent discount to the current $5.22 market price.

The fact some shareholders already possess the prospectus is shown by BISX trading data, which shows 28 ‘sell’ orders have been placed - including one for more than 83,000 shares - at that same $4.18 price.

Given that shareholders are supposed to receive material information on their company at the same time, so that none gains a competitive advantage, this may be a situation that requires BISX and Securities Commission examination.

Aside from this, Mr Cash said: “The offering price of $2.70 ought to be viewed with some suspicion. The last valuation I looked at seven months ago had Bank of the Bahamas valued at less than $2.70 per share, because the long-term worth of the company was extremely diminished.

“To suggest shareholders are getting a deal at $2.70 os worthy of deep suspicion.”

The Bank of the Bahamas press release confirming the $40 million rights offering had lauded $2.70 as an “attractive price”, but Mr Cash said this ignored problems with the current $5.22 per

share BISX trading price.

BISX data shows that there are around 130 ‘sell’ orders currently placed for Bank of the Bahamas stock, at prices ranging from $4.18 to $6.24 per share, and no ‘buy’ orders. This essentially means investors, both retail and institutional, are desperate to offload their stock given three years of consecutive losses and the $100 million government ‘bail out’.

But there are no willing buyers, and Mr Cash said: “The value on BISX is grossly erroneous and amazingly overvalued, and in no way reflects the value of the company.”

He added that many shareholders who wanted to sell had likely refrained from placing orders with their brokers due to the absence of any buyer interest.

“The idea of people getting value at $2.70 is grossly disingenuous on the part of the bank,” Mr Cash told Tribune Business.

“I think it will be extremely important for shareholders to see a substantial and meaningful document out there to explain what the $40 million is for, and how the $40 million will be invested.

“One looks at this and

sees where the current directors of the company have destroyed a considerable amount of value, and now they’re using the rights offering to get it back from the same shareholders and rebuild the value they have lost,” he continued.

“It’s almost unconscionable to expect existing shareholders to put $40 million into a company where the current directors have destroyed so much value without any indication of change at the top.”

Mr Cash said existing shareholders may be encouraged to invest further in Bank of the Bahamas if there was greater “clarity” over its future and the Government’s plans, especially if the latter was inclined to reduce its equity stake.

“If there is a meaningful effort, either in this exercise or in the near future, to divest some of its shares in Bank of the Bahamas, that will go a long way to improving confidence among existing shareholders that there will be a meaningful change in policies at the bank if they invest more money,” he told Tribune Business.

fact the case? He may also claim that any decisions are subject to approval by Cabinet. So all ministers are collectively responsible for this situation, and are responsible to Parliament.

That is why the street is demanding transparency.

Has Parliament approved all such gifts or grants of leases of Crown Land? If not, why not?

As to Baha Mar, the original grants of Crown Land are obscured by the fact that the Nassau Beach Hotel and the Meridian Hotel were bought by the Hotel Corporation, a government Corporation, or sold direct to the present owners.

Other parts of the property were held in other names, and may have been bought with approval of the Investment Board by foreign companies. Certain restrictions and conditions on the use of the land were included.

All or most of the assets of Baha-Mar were charged to another company owned the China Export-Import Bank, a lender and foreignowned entity. That loan must have been approved by the Investment Board and the Central Bank, as it is repayable in foreign currency.

The bank is the principle creditor in the ongoing receivership/provisional liquidation, both of which are subject to the Supreme Court of the Bahamas. But was the final deal approved

by Parliament? Should it not have been so approved?

If so, was it made public? If not, why not? To have the details of any action by the receivers/liquidators, taken on behalf of all the creditors made public, is not a

decision for Government, but for the receivers.

The Prime Minister says all will be revealed at the appropriate time. Jerome Fitzgerald says certain details will be given next week. The street is saying the devil is in the detail, and the whole deal must be presented to the public.

I question this. The secured creditor placed Baha Mar into receivership, after the court was asked to approve a provisional liquidation.

This is not the first time a hotel has been the subject of foreclosure by a mortgagee.

The Lucayan Hotel in Freeport was placed in receivership following the Bahamas Government revoking the casino license, thus making the Hotel economically unsound, and which caused the loss of hundreds of Bahamian jobs.

The receivers failed to find a buyer for the hotel

without a casino license.

The Grand Bahama Port Authority declined to make an offer, as did Howard Hughes, who spent his last years holed up in the Xanadu Hotel. Negotiations by the receivers with the Government resulted in an agreement for the sale at a big loss for the mortgagee.

At the last minute, the receiver was instructed by the Government to pay a real estate commission to Henry Bowen, an MP who had his own real estate company.

Was this all in the interests of the Bahamian people?

None of this was made public at that time.

Will a real estate commission be payable on Baha Mar, even though the receivers are soliciting offers direct from the public in a case where the world knows the opportunity to bid for the properties. They also know that any final buyer must also be approved by

the Investments Board and the Cabinet, responsible to Parliament in the interests of the Bahamian people Let’s be patient. Time will tell. An election is due in June 2017, after Baha Mar is supposed to open.

PUBLIC NOTICE Would the owner of a white 30ft homemade fiberglass hull boat located in Drigg’s Hill South Andros, on Lot #1 of Flowers Estate please contact Percitta Knowles at 369-1466/4710981./369-4569 in reference to removing said item. Storage fee @ $150.00 will be charged everyday for duration of Notice and thereafter. If no contact is made, the owner of the property reserves the right to dispose of the boat. Whether it be by removal of the boat from the property or sale of the boat for all cost incurred.

PAGE 8, Monday, August 29, 2016

THE TRIBUNE

Yellen suggests rate hike is coming but offers no timetable WASHINGTON (AP) — Federal Reserve Chair Janet Yellen said Friday that the case for raising interest rates has strengthened in light of a solid job market and an improved outlook for the U.S. economy and inflation. But she stopped short of offering any timetable.

Yellen sketched a generally upbeat assessment of the economy in a speech to an annual conference of central bankers in Jackson Hole, Wyoming. She pointed to steady gains in employment and strength in consumer spending.

She also noted that while inflation is still running below the Fed’s 2 percent target, it’s being depressed mainly by temporary factors.

“In light of the continued solid performance of the labor market and our outlook for economic activity and inflation,” Yellen said, “I believe the case for an increase (in the Fed’s benchmark borrowing rate) has strengthened in recent months.”

Still Yellen declined to hint at whether the Fed might raise rates at its next policy meeting, Sept. 20-21, or at its subsequent meetings in early November and mid-December.

Instead, she stressed, as she frequently has, that the Fed’s rate decisions will depend on whether the freshest economic data continues to confirm its outlook.

“As ever,” she said, “the economic outlook is uncertain, and so monetary policy is not on a preset course.”

Economists took her remarks to mean that while a rate hike remains possi-

Federal Reserve Chair Janet Yellen, center, strolls with Stanley Fischer, right, vice chairman of the Board of Governors of the Federal Reserve System, and Bill Dudley, the president of the Federal Reserve Bank of New York, before her speech to the annual invitation-only conference of central bankers from around the world, at Jackson Lake Lodge in Grand Teton National Park, north of Jackson Hole, Wyo., Friday, Aug 26, 2016. (AP Photo) ble at the Fed’s September meeting, it isn’t necessarily likely.

“We think most officials will want to see more concrete evidence of a rebound in GDP growth and a rise in inflation towards the 2 percent target, with a December move still appearing the most likely outcome,” said Andrew Hunter, an economist with Capital Economics.

Hunter pointed to a government report Friday that the economy, as measured by the gross domestic product, grew at an anemic 1.1 percent annual rate last quarter as evidence that the Fed likely wants to see stronger growth.

In December, the Fed

raised its benchmark rate modestly in response to a brighter economic picture, notably a job market nearing full health. The rate had been kept at a record low near zero since the depths of the 2008 financial crisis.

At the time, the Fed foresaw four additional rate increases in 2016. But since then, global economic pressures, financial market turmoil and a brief slump in the U.S. job market have kept the Fed on the sidelines.

Some economists have said they think conditions are ripe for the Fed to boost rates next month. Others say they foresee no action until December, after the elections, in at the earliest.

Stanley Fischer, the Fed’s vice chairman and a close Yellen ally, said after her speech that in deciding whether to raise rates as soon as September, policymakers will assess the August jobs report next Friday to see whether employment growth maintains its solid pace of the past three months.

“That will probably weigh in our decision, along with other data that may come in,” Fischer said in an interview on CNBC. “We think the evidence is that the economy has strengthened.”

Fischer said it was still possible that the Fed could raise rates twice before year’s end. But he said

NOTICE

NOTICE

AUTOMARKET DE COLOMBIA LIMITED

EXXONMOBIL PERU (HEAVY OIL) LIMITED

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 26TH day of September, A.D., 2016. In default thereof they will be excluded from the benefit of any distribution made by the Liquidator.

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 26TH day of September, A.D., 2016. In default thereof they will be excluded from the benefit of any distribution made by the Liquidator.

Dated the 29th day of August, A.D., 2016.

Dated the 29th day of August, A.D., 2016.

____________________________________________

R.W. Rice Liquidator 22777 Springwoods Village Parkway Spring, Texas 77389 U.S.A.

N O T I C E

N O T I C E

EXXONMOBIL PERU (HEAVY OIL)LIMITED

AUTOMARKET DE COLOMBIA LIMITED

(a) EXXONMOBIL PERU (HEAVY OIL) LIMITED is in dissolution under the provisions of the International Business Companies Act 2000. (b) The dissolution of the said Company commenced on the 25th day of August, 2016 when its Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said Company is R.W. Rice, of 22777 Springwoods Village Parkway, Spring, Texas 77389, U.S.A. Dated the 29th day of August, 2016

ity growth has weakened sharply in recent years and has been a major factor in holding the economy back.

Yellen was the lead-off speaker Friday for the annual conference sponsored by the Federal Reserve Bank of Kansas City. The conference draws members of the Fed’s board of governors in Washington, officials from the 12 regional banks and monetary leaders from around the world.

In advance of Yellen’s speech Friday, several Fed officials met Thursday with about 120 activists from the Campaign for Popular Democracy’s Fed Up coalition.

The group of policy activists, labor unions and community groups has been lobbying the Fed to keep rates low to allow the economy to strengthen enough to benefit more Americans.

The group, some wearing T-shirts bearing the slogan, “We Need a People’s Fed!” posed questions about economic policy and the need for diversity to the Fed officials who took part in the 90-minute discussion.

“Our communities are being sacrificed for an inflation enemy that isn’t here,” said Rod Adams, a community organizer for Neighborhoods for Change in Minnesota.

The coalition said it wanted the Fed and Congress to consider changes in the makeup of the boards of directors of the 12 regional banks to promote more diversity among a group of officials that is mainly white and male and dominated by bankers.

____________________________________________

Milena Munevar Liquidator Calle 90 #19 C 32 Bogota, Cundinamarca 111021 Colombia

_____________________________________ N O T I C E IS HEREBY GIVEN as follows:

that would depend on the strength of forthcoming economic data.

In her speech, Yellen said the Fed still believes that future rate increases, whenever they occur, will be “gradual.”

Some have said that if the Fed does decide to act in September, it would need to further prepare investors.

After Yellen’s speech, data from the CME Group indicated that investors foresee only a 24 percent probability of a rate hike in September and about a 58 percent chance by December.

The Fed chair on Friday defended the extraordinary tools the central bank has used to support the economy since the 2007-2009 Great Recession. To ease the impact of the recession, for example, she said the Fed had effectively used bond purchases to reduce long-term borrowing rates and had assured investors that short-term rates would stay low.

But to combat future downturns, she said the Fed should explore other options, too. She mentioned raising the Fed’s 2 percent inflation target to give it more leeway or possibly expanding the types of assets the Fed could buy beyond Treasurys and mortgagebacked securities. But she said those options would require more study.

Yellen said that while the Fed’s support had been critical in supporting the economy, political leaders should considering using the government’s tax and spending powers as well.

She said efforts need to be made, in particular, to boost the productivity of U.S. workers. Productiv-

_____________________________________

N O T I C E IS HEREBY GIVEN as follows: (a) AUTOMARKET DE COLOMBIA LIMITED is in dissolution under the provisions of the International Business Companies Act 2000. (b) The dissolution of the said Company commenced on the 25th day of August, 2016 when its Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said Company is Milena Munevar, of Calle 90 #19 C 32, Bogota, Cundinamarca, 111021, Colombia Dated the 29th day of August, 2016

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@100JAMZ242

NOTICE KF INC. N O T I C E IS HEREBY GIVEN as follows: (a) KF INC. is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. (b) The dissolution of the said company commenced on the 24th August, 2016 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas Dated this 29th day of August, A. D. 2016

HARRY B. SANDS, LOBOSKY MANAGEMENT CO. LTD. Registered Agent for the above-named Company

HARRY B. SANDS, LOBOSKY MANAGEMENT CO. LTD. Registered Agent for the above-named Company

_________________________________ Bukit Merah Limited Liquidator

NOTICE

N O T I C E

NOTICE

EXXONMOBIL PERU UPSTREAM LIMITED

NEO HARVEST INVESTMENTS LIMITED

EXXONMOBIL PERU UPSTREAM LIMITED

____________________________________________

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 26TH day of September, A.D., 2016. In default thereof they will be excluded from the benefit of any distribution made by the Liquidator.

Dated the 29th day of August, A.D., 2016.

R.W. Rice Liquidator 22777 Springwoods Village Parkway Spring, Texas 77389 U.S.A.

_____________________________________ N O T I C E IS HEREBY GIVEN as follows:

(a) EXXONMOBIL PERU UPSTREAM LIMITED is in dissolution under the provisions of the International Business Companies Act 2000. (b) The dissolution of the said Company commenced on the 25th day of August, 2016 when its Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said Company is R.W. Rice, of 22777 Springwoods Village Parkway, Spring, Texas 77389, U.S.A. Dated the 29th day of August, 2016 HARRY B. SANDS, LOBOSKY MANAGEMENT CO. LTD. Registered Agent for the above-named Company

N O T I C E IS HEREBY GIVEN as follows: (a) NEO HARVEST INVESTMENTS LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. (b) The dissolution of the said company commenced on the 25th August, 2016 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas Dated this 29th day of August, A. D. 2016 _________________________________ Bukit Merah Limited Liquidator

THE TRIBUNE

Monday, August 29, 2016, PAGE 9

a Wall Street sign adjacent to the New York Stock Exchange. Stocks rose in early trading Friday, Aug. 26, 2016, following two days of declines after Federal Reserve Chair Janet Yellen gave an upbeat assessment on the U.S. economy. (AP Photo)

Stocks end mostly lower after Yellen speech

NEW YORK (AP) — Stocks ended mostly lower on Friday after Federal Reserve officials said the case has strengthened for raising interest rates above the super-low levels that have helped fuel a seven-year bull market.

Major U.S. indexes initially climbed after a speech

by Fed Chair Janet Yellen that was bullish on the economy but gave no timetable for future rate increases. Then investors began to have second thoughts, wondering if an increase was possible as early as next month, and buyers turned to sellers.

By the close of trading, seven of the 10 sectors of the Standard and Poor’s 500 index had fallen, led by a 2.1 percent drop in utilities. Investors frustrated with low-yielding bonds have flocked to utilities for their steady dividends, but higher rates would make those stocks less attractive.

The S&P 500 slipped 3.43 points, or 0.2 percent, to 2,169.04. The Dow Jones industrial average fell 53.01 points, or 0.3 percent, to 18,395.40. The Nasdaq composite rose 6.71 points, or 0.1 percent, to 5,218.92.

In her speech in Jackson Hole, Wyoming, Yellen noted that the Fed is moving toward raising interest rates in light of a solid job market and an improved outlook for the economy.

But she stopped short of signaling when the next rate hike might be.

Stocks climbed as investors perceived her comments as “dovish,” meaning a continuation of the easy money policies. Yields on government bonds fell.

But by the end of the day both stocks and bonds had reversed, with the yield on the 10-year Treasury note rising to 1.62 percent from 1.58 percent late Thursday.

Perhaps helping the turn of sentiment were comments on CNBC from Fed Vice Chair Stanley Fischer suggesting the central bank could raise rates twice before year’s end, instead of once in December as many investors had been expecting.

Lisa Kopp, senior vice president at U.S. Bank Wealth Management, said she wasn’t surprised by the selling given the “jitteriness” in the markets.

“Anything that’s not going to be straight-out dovish is going to be disappointing,” she said.

Yellen’s speech on Friday notwithstanding, not everyone is convinced a rate hike is coming soon.

“She suggests the economy is improving, but the GDP numbers for the past three quarters are closer to 1 percent than three percent,” said Bruce Bittles, chief investment strategist at R.W. Baird. “That is very anemic.”

A report early in the day from the Commerce Department showed GDP, or gross domestic product, for the second quarter rose by a revised 1.1 percent, slightly lower than initially forecast.

Since exiting the recession in the summer of 2009, the U.S. economy has been growing sluggishly, making it the slowest recovery since World War II. Among stocks making moves on Friday, Herbalife fell $1.43, or 2.3 percent, to $60.50 after news reports that that Carl Icahn, the company’s biggest shareholder and defender, has been trying to unload his stake in the embattled company. After trading closed, Icahn said the reports were wrong and, in fact, he has bought more shares.

Design software company Autodesk jumped $5.17, or 8 percent, to $68.87 af-

NOTICE

NOTICE is hereby given that MARCEL ELIZABETH SAMAROO of #2 Westeria Drive, Freeport, Grand Bahama, 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 August, 2016 to the Minister responsible for Nationality and Citizenship, P.O.Box N-7147, Freeport, Bahamas.

NOTICE

NOTICE is hereby given that DEONAUTH SOMAROO of #2 Westeria Drive, Freeport, Grand Bahama, 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 August, 2016 to the Minister responsible for Nationality and Citizenship, P.O.Box N-7147, Freeport, Bahamas.

NOTICE

NOTICE is hereby given that ROBERT CHARLES of LEWIS YARD, GRAND BAHAMA, 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 29TH day of AUGUST, 2016 to the Minister responsible for Nationality and Citizenship, P.O.Box N-7147, Freeport, Bahamas.

ter reporting a small profit, beating expectations of a loss.

Earnings per share for companies in the S&P 500 index are expected to fall 1.8 percent in the second quarter, according to S&P Global Market Intelligence.

That would be the fourth quarter in a row of drops.

In overseas markets, Britain’s FTSE 100 rose 0.3 percent, Germany’s DAX gained 0.6 percent and France’s CAC 40 climbed 0.8 percent.

In Asia, Japan’s Nikkei 225 fell 1.2 percent after consumer prices fell the most in three years in July.

Hong Kong’s Hang Seng index rose 0.4 percent.

Benchmark U.S. crude oil rose 31 cents to close at $47.64 a barrel. Brent crude, used to price oil internationally, rose 25 cents to close at $49.92 a barrel.

Wholesale gasoline was little changed at $1.52 a gallon, heating oil slipped 1 cent to $1.50 a gallon and natural gas rose 2.5 cents to $2.871 per 1,000 cubic feet.

MARKET REPORT FRIDAY, 26 AUGUST 2016

t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com

BISX ALL SHARE INDEX: CLOSE 1,974.88 | CHG 0.03 | %CHG 0.00 | YTD 150.93 | YTD% 8.27 BISX LISTED & TRADED SECURITIES 52WK HI 4.05 17.43 9.09 3.50 4.70 0.18 8.34 8.50 6.10 10.60 15.50 2.72 1.60 5.80 8.76 11.00 8.20 6.90 12.25 11.00

52WK LOW 2.25 17.43 9.09 3.15 4.70 0.12 6.09 7.25 5.50 7.00 13.99 2.25 1.27 5.51 6.00 9.85 6.12 5.75 11.75 10.00

PREFERENCE SHARES 1000.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

1.00 106.00 100.00 106.00 100.00 105.00 100.00 10.00 1.01

1.00 105.50 100.00 100.00 100.00 100.00 100.00 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

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS FAM FBB FIN FCL ICD JSJ PRE

LAST CLOSE 4.05 15.85 9.09 3.50 5.22 0.12 6.47 8.50 5.83 10.60 14.00 2.46 1.55 5.80 8.77 10.95 8.12 6.60 11.93 10.00

CLOSE 4.05 15.85 9.09 3.50 5.22 0.12 6.47 8.50 5.83 10.60 14.00 2.50 1.55 5.80 8.77 10.95 8.12 6.60 11.93 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 0.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

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

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

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

SECURITY Fidelity Bank Note 17 (Series A) + Fidelity Bank Note 18 (Series E) + Fidelity Bank Note 22 (Series B) +

SYMBOL FBB17 FBB18 FBB22

LAST SALE 100.00 100.00 100.00

CLOSE 100.00 100.00 100.00

CHANGE 0.00 0.00 0.00

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

BAH29 BG0103 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330

115.55 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

115.34 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

-0.21 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

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

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

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

VOLUME 115

600

VOLUME

EPS$ 0.304 1.351 1.086 0.220 -1.134 0.000 0.185 0.551 0.508 0.541 0.528 0.094 0.166 0.510 0.612 0.960 0.650 0.703 0.756 0.000

DIV$ 0.090 1.000 0.000 0.160 0.000 0.000 0.187 0.260 0.200 0.360 0.610 0.060 0.040 0.240 0.275 0.000 0.280 0.120 0.640 0.000

P/E 13.3 11.7 8.4 15.9 N/M N/M 35.0 15.4 11.5 19.6 26.5 26.6 9.3 11.4 14.3 11.4 12.5 9.4 15.8 0.0

YIELD 2.22% 6.31% 0.00% 4.57% 0.00% 0.00% 2.89% 3.06% 3.43% 3.40% 4.36% 2.40% 2.58% 4.14% 3.14% 0.00% 3.45% 1.82% 5.36% 0.00%

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

0.0 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%

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

MUTUAL FUNDS 52WK HI 1.99 3.90 1.92 167.58 138.35 1.44 1.67 1.55 1.08 6.94 8.65 5.92 9.94 11.15 10.46

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.39 1.67 1.48 1.03 6.41 7.62 5.66 8.65 10.54 9.57

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

NAV 1.99 3.90 1.92 167.58 136.68 1.44 1.67 1.55 1.08 6.94 8.65 5.92 9.59 11.15 9.57

YTD% 12 MTH% 2.33% 4.05% 3.34% 6.09% 1.63% 2.99% 3.41% 5.18% 2.95% -0.58% 2.19% 3.91% 2.46% 8.70% 1.94% 5.28% 4.11% 1.26% 4.05% 8.28% 5.93% 13.53% 2.73% 4.73% 3.97% -3.53% 2.96% 4.33% -4.26% -6.22%

NAV Date 31-Jul-2016 31-Jul-2016 27-Jul-2016 30-Jun-2016 30-Jun-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-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 - 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

PAGE 12, Monday, August 29, 2016

THE TRIBUNE

Trump warns of regulations, taxes harming family farmers

Republican presidential candidate Donald Trump speaks at Joni’s Roast and Ride during a fundraiser at the Iowa State Fairgrounds, in Des Moines, Iowa, Saturday, Aug. 27, 2016. (AP Photo)

DES MOINES, Iowa (AP) — Donald Trump said rival Hillary Clinton will push regulations and high taxes that will hurt family farmers as he campaigned in Iowa, an agricultural state that remains a presidential election battleground.

Trump warned a crowd in Iowa on Saturday that Clinton “wants to shut down family farms” and implement anti-agriculture policies. His comments came in a speech to the annual “Roast and Ride” fundraiser for Republican Sen. Joni Ernst. Trump skipped the 42-mile motorcycle ride that preceded the event.

Joining the presidential nominee on stage were top Iowa Republicans — among them Ernst, Gov. Terry Branstad, Sen. Chuck Grassley and Rep. Steve King — in a rare show of establishment support for a candidate who has struggled to unite his party.

In a gesture to Iowa’s agriculture industry, Trump renewed his commitment

to continuing a requirement that all gasoline sold contain an ethanol-based additive, an issue important to corn growers. He also promised to cut taxes on family farms, which he called the “backbone” of the country.

“Hillary Clinton wants to shut down family farms just like she wants to shut down the mines and the steelworkers,” he said at the Iowa State Fairgrounds.

“She will do this not only through radical regulation, but also by raising taxes on family farms - and all businesses - to rates as high as nearly 50 percent.”

Clinton’s campaign website touts a plan to increase funding to support farmers and ranchers in local food markets and regional food systems, saying she’ll create a “focused safety net to help family farms get through challenging times.”

It also says she plans to target federal resources in commodity payment, crop insurance, and disaster assistance programs to support family operations.

Branstad, in an interview with The Associated Press, said he felt Trump could score points against Clinton by focusing on agricultural issues. Branstad, whose son runs Trump’s campaign in the state, said he also hopes Trump would launch campaign ads there and that he sees the race as “about even.”

“I don’t like that but, hopefully, that’s going to change,” Branstad said.

Speaking to an overwhelmingly white crowd, Trump again pledged that as president he would help

African-Americans living in cities with high crime and low employment. He offered no specifics for how he would achieve that goal.

Trump drew an online backlash Saturday for a tweet he sent in response to the shooting death of NBA star Dwyane Wade’s cousin, who was gunned down near the Chicago school where she had planned to register her children.

“Just what I have been saying. African-Americans will VOTE TRUMP!” Trump tweeted. He later sent a tweet offering his “condolences to Dwyane Wade and his family.”

Campaigning in Florida, Clinton running mate Tim Kaine said, “We just ought to be extending our sympathy to the family,” and added, “That’s the only reaction that’s appropriate right now.”

Clinton met Saturday for more than two hours with intelligence officials at the FBI office in White Plains, New York, for her first overview of the major threats facing the nation around the globe since she became the Democratic nominee.

Trump received his briefing earlier this month, a customary move for majorparty nominees.

Trump also previewed his immigration plans at the Iowa event, saying that he was developing an “exitentry tracking system to ensure those who overstay their visas, that they’re quickly removed.” The proposal echoed the language of Trump’s former primary rival, New Jersey Gov. Chris Christie, who is now advising him.

Facebook reduces role of human editors in ‘trending topics’ SAN FRANCISCO (AP) — Facebook is taking new steps to reduce the role of human judgment in its "Trending Topics" feature, which drew controversy earlier this year over claims the service was suppressing conservative views.

Although it denied bias, Facebook has sought to reassure users that it’s not showing favoritism when it highlights stories that are drawing comment on the social network.

Facebook says topics are selected by an algorithm that considers how often users post or share articles.

Editors will still vet the list, but the feature will no longer include headlines or summaries written by editors. Instead it will show a selection of user comments and an excerpt from a news article.

Earlier, Facebook said editors would stop relying on outside news outlets to help decide which topics should be highlighted.

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