01022020 BUSINESS

business@tribunemedia.net

THURSDAY, JANUARY 2, 2020

$4.58

$4.59

Miller’s lease breach damages ‘over $66m’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A

FORMER Cabinet minister may seek more than $66m in damages after the Supreme Court found that the government’s lease of his shopping plaza is “valid and binding”, it was revealed yesterday.

Damian Gomez QC confirmed to Tribune Business that Justice Cheryl GrantThompson had given a verbal pre-Christmas ruling in favour of Leslie Miller’s claim of an “unlawful conspiracy” by the government and Bank of The Bahamas to seize his Summerwinds Shopping Plaza off Tonique Williams Highway.

He added that the government and BISX-listed

• Judge rules ‘valid and binding’ on govt • AG’s Office files for appeal, stay on plaza • Episode ‘really catastrophic’ for ex-MP

LESLIE MILLER

DAMIAN GOMEZ, QC

bank’s conduct had been “really catastrophic” for Mr Miller and his companies, with the former’s failure to finance contractually-agreed upgrades to the property

under the lease’s terms - as well as the loss of rental income and triggering of a loan default - all set to factor into how damages are calculated.

Mr Gomez, who represents Mr Miller in the dispute, said he understood the Attorney General’s Office had already filed to stay the ruling, and for leave to appeal, even though both sides are now waiting for Justice Grant-Thompson to issue her written verdict.

This was supposed to happen on December 30, but has been postponed to a date yet to be determined.

“She didn’t give her reasons, and said she would do that subsequently,” the former minister of state for legal affairs said. “But she

SEE PAGE 2

Deltec slams ‘inaccurate’ claims on broker’s failure

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A MAJOR Bahamian financial institution has slammed “inaccurate and unsubstantiated” allegations that it played a “conflicted” role in the collapse of a local investment advisory firm.

Deltec Bank & Trust, and its fund administration arm, moved swiftly to defend their reputation after Pacifico Global Advisors’ liquidator placed them at the centre of events that led to the company’s insolvency in his first report to the Supreme Court.

The Lyford Cay-based financial institution, in a statement issued in response to Tribune Business inquiries, said Ed Rahming,

• Says liquidator promises to address concerns • Pacifico Global: 70% of assets under one fund • ‘Conflict and dispute’ as former execs took clients

ED RAHMING the Intelisys (Bahamas) founder and managing director, had “agreed” to discuss their concerns and subsequently correct any

‘Pay attention to real estate trends’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A PROMINENT Bahamian realtor is urging vendors not to over-price their properties given that data shows the average selling price can be up to 40-50 percent below the initial listing.

Mario Carey, pictured, founder of Better Homes and Gardens Real Estate MCR Bahamas Group, told Tribune Business that his analysis of data from the industry’s Multiple Listings System (MLS) had

uncovered “trends that we need to pay attention to going into 2020”.

Going back over a fiveyear period, he said some $1.2bn worth of inventory listed on the MLS

SEE PAGE 2

‘Business as usual’ hurt poverty battle

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A $9.6M initiative to fight Bahamian poverty was undermined by the public sector’s “strict bureaucratic policies” that treated the effort as “business as usual”.

The Inter-American Development Bank (IDB) report on efforts to reform The Bahamas’ social safety net, which it helped to finance, revealed that the project ran into significant roadblocks that delayed the

creation of new units critical to its implementation.

Besides the Project Execution Unit, the report discloses that the Cash Grant Unit - which was supposed to oversee the conditional cash transfer (CCT) regime linking state benefits payouts to improved educational achievement and better health outcomes - was hardest hit by the typical bureaucratic inertia within the government.

“The Project Execution

SEE PAGE 3

“financial inaccuracies” contained in his filings with the court.

The report, which has been obtained by Tribune Business, cites Pacifico Global’s decision to place around $217m of its clients’ assets into investment structures “promoted” and administered by Deltec as a key factor in the former’s failure.

These structures, known as “sub-funds” of a main investment fund, are now in receivership under Philip Galanis, the HLB Galanis & Company accountant

and principal, after disputes involving Pacifico Global and two of its former executives - one of whom started a rival Bahamasbased investment advisory firm while still working for it - started to endanger the safety of client monies.

Luca Lanciano, Pacifico Global’s former chief operating officer, was alleged in the liquidator’s report to have issued instructions to redeem a significant amount of investor monies and have these assets transferred to

SEE PAGE 4

$4.66

$4.63

Failed broker paid ‘excessive’ cash to related parties

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A BAHAMIAN investment adviser collapsed into insolvency due to “mismanagement” centred on internal conflicts and the payment of “excessive cash” to related parties for client introductions.

Ed Rahming, Pacifico Global’s liquidator, told the Supreme Court it was currently impossible to estimate how much clients and creditors will recover of the sums owed to them because the company’s accounts “were at least nine months in arrears” when he was appointed in early October 2019 and cannot be relied upon.

His December 16, 2019, report, which has been obtained by Tribune Business, reveals that Pacifico Global’s operational affairs and back office were a shambles until Marc Brune was hired as its chairman in October 2017.

He, working with Nadia Butler, Pacifico Global’s new compliance officer, found that several clients “appeared to be involved in suspicious transactions” and seven such reports were filed with the Financial Intelligence Unit (FIU) as a result.

Mr Rahming’s report also discloses that the Securities Commission was notified of Pacifico Global’s decision to cease operations, and seek the appointment of a liquidator to wind it up, one day after the Bahamian capital markets regulator informed it that it planned to conduct an on-site examination of the company’s business in late October 2019.

The Intelisys (Bahamas) founder and managing director alleged that the

investment advisory firm would have breached the $300,000 regulatory capital threshold it is required to maintain had it remained in business that long, which would have been another breach of Bahamian securities laws.

For Pacifico Global’s failure to issue audited financial statements since 2017 is a breach of the Securities Industry Act 2011, Mr Rahming asserted, with the 2018 financials incomplete because it had failed to provide promised information to its external auditors who “also had concerns about the solvency of the company”.

“The liquidation was ultimately caused by the mismanagement of the company,” Mr Rahming concluded of his review into Pacifico Global’s affairs. “In 2017, the company began to experience a cash shortage/ solvency issue which was the result of paying out ‘excessive cash’ to related parties for business introductions and consulting...

“There are substantial related party payments and transfers made with the apparent knowledge that insolvency of the company would occur. There also appear to be creditor payments made shortly before the liquidation that were transacted with the knowledge that the company would shortly become insolvent.”

The liquidator’s report suggested that Pacifico Global’s road to ruin began some two years ago. “We understand that in early 2017 the company began to experience internal conflict amongst its stakeholders,” Mr Rahming alleged.

“The stated reasons for the internal conflict vary and include a lack

SEE PAGE 3

PAGE 2, Thursday, January 2, 2020 FROM PAGE ONE ruled in favour of the application we made.

“She struck out the defence on the basis it was frivolous, vexatious or an obvious abuse of process.

In light of their [the government and Bank of The Bahamas] submissions, they really have no defence.”

Mr Gomez expressed surprise that the government and the bank would seek permission to appeal before the Supreme Court released the reasons behind its verdict, revealing he had been contacted by an attorney from the Attorney General’s Office to inquire about his availability for a hearing but had received no date yet.

“What I was told was that they’ve applied for leave to appeal and for a stay,” he added. “I don’t see they’re entitled to either. Quite frankly, with just what they admitted in their pleadings, I’m surprised they’re bold enough to do that.”

Depending on the success of the government’s appeal application, Mr Gomez said the next step in the process would get to “the heart of the case against the government and Bank of The Bahamas” - the assessment of damages due to his client.

Tribune Business has seen written suggestions that the government owes as much as a $66m liability to Mr Miller, but Mr Gomez told this newspaper yesterday: “It could be higher than that.

“The leases called for the government to put in a mezzanine floor, which would double the size of the

Miller’s lease breach damages ‘over $66m’ property. That would have been a benefit that inured to the landlord beyond the term of the lease. That’s really where most of the money is.

“When you take that into the criteria, and the fact the lease was entered into in the context of regularising Bank of The Bahamas’ position with the Central Bank, the government understood that if it reneged it would cause a default in the loan arrangement, and all the costs tied to that are tagged on to the economic loss suffered.”

Mr Miller did not return Tribune Business calls seeking comment yesterday, while Carl Bethel QC, the attorney general, declined to comment. “I’m not aware of the details of the case or the basis of the ruling, and am not prepared to make any comment until I am briefed by counsel involved in the matter,” he told Tribune Business.

The ex-Cabinet minister’s lawsuit, filed last July, had been seeking a Supreme Court declaration that the five leases entered into on December 1, 2016, by the former Christie administration are “valid and binding” upon the government.

Those leases were among

the contracts identified by K Peter Turnquest, deputy prime minister, during the 2018 mid-year budget debate as “handcuffing” the government’s financial plans. It was one of two cases he cited where the government owed between $13m-$14m for property leases and had “no exit clauses”, even though “not one single government worker has ever set foot in the building”.

Tribune Business also reported recently on the other “case”, which involves businessman and accountant Kingman Ingraham, who is asserting a $30m claim against the government based on its alleged breach of an irrevocable lease agreement to rent the former Kelly’s Warehouse on Soldier Road for the Department of Public Health - a situation that has placed his family home in jeopardy.

Between his claim and that of Mr Miller, the government - meaning the Bahamian taxpayer - could be facing a near-$100m payout liability if both their claims are upheld and they obtain the damages sought.

Tribune Business knows of other potential multimillion dollar claims against

the government by investors and companies who believe it has breached binding, legally enforceable contracts they have with it. This suggests the $186m figure quoted by former MP and Cabinet minister, Pierre Dupuch, as to the total liabilities faced by the taxpayer may not be completely far-fetched.

Mr Dupuch, in a letter released on Monday, again referred to this sum and alleged that the government, through the Attorney General’s Office, is using the courts and arbitration system to drag these claims out in a bid to wear its opponent down and force them to settle for ‘cents on the dollar’ when the financial burden created - along with legal expenses becomes too heavy to bear.

Sir Franklyn Wilson, the Arawak Homes and Sunshine Holdings chairman, yesterday told Tribune Business that Mr Dupuch’s comments are “very significant and cannot be ignored” given that “very tidy sums” were involved in the various breach of contract claims against the government.

He added that Mr Miller’s claim, now the Supreme Court has ruled

in his favour, would have to be treated as a liability on the government’s balance sheet if - and when - it moves to accrual-based accounting.

The current cash-based system only picks these up when they are paid, meaning that there could be a nasty shock in terms of the government’s true financial position when all these debts are accounted for with the switch to accrualbased accounting come 2022.

“I don’t care what you say about Mr Dupuch’s analysis,” Sir Franklyn said, “whether it’s $186m or some other figure. You cannot dispute that the figure is a material amount.

Mr Dupuch has only scratched the surface of how serious this.”

Many observers are questioning why the government prefers to fight instead of exiting contracts and hirings it no longer wants, arguing that the proper course is simply to negotiate a financial settlement with the other side or pay them what is due under the deal’s terms. The cash-strapped Treasury, though, may provide one explanation.

In Mr Miller’s case, he is alleging an “unlawful

THE TRIBUNE conspiracy” by Bank of The Bahamas and the government to seize his shopping plaza, claiming that both reneged on agreements to fund multi-million dollar renovations at Summerwinds Plaza so it could be rented to government ministries.

Besides claiming damages for the loss of multi-million dollar rental income through these purported contractual breaches, Mr Miller also accused the Minnis administration of deliberately refusing to follow through on the leases signed by its predecessor knowing it “would trigger a default” on $25m$28m worth of loans owed to Bank of The Bahamas, thereby paving the way for the bank and the Bahamas Resolve bail-out vehicle to seize control of the Tonique Williams Highway plaza.

In a previous interview, Mr Miller described the leases - entered into by the former Christie administration in December 2016 - as “a win-win” for all parties given that the rental rate was 45-55 percent lower than that typically enjoyed by the government.

The outspoken ex-MP told Tribune Business that the main potential tenant was the Immigration Department, which had been lined up to lease some 98,000 square feet at the former Robin Hood store.

Other government departments supposed to join it are the Registrar General’s Department, Public Parks and Beaches Authority and Parliamentary Registration (voting) Department.

Mobile ride firm sees ‘Pay attention to $69k capital injection real estate trends’ A CHILDREN’S mobile ride rental company has received a $69,000 capital injection with help from the Small Business Development Centre (SBDC).

More Play Entertainment, owned

by Alisa SandsHutcheson, pictured, caters to school and public fairs, festivals, birthday parties and corporate events, bringing carnival-like fun for children to enjoy.

Always involved with planning events and helping with birthday parties, Ms Sands-Hutcheson said she was inspired to start More Play Entertainment after constantly having issues over how to best entertain children.

“Planning ‘fun days’ and school fairs, we would always come to a roadblock when it came to what entertainment we can find for the kids,” she explained. “We always ended up trying to get a show or something exciting like that outside of the regular bouncing castles.

“Those experiences caused me to think that maybe I should get into providing that service for people looking for a next-level source of entertainment.”

Through research, Ms Sands-Hutcheson found examples of people offering mobile ride rentals and decided to dive into the business. Listening to the radio, she heard about the SBDC and was impressed enough to go to the website and sign-up.

“What made me really join the SBDC was that it was a personalised experience,” Ms Sands-Hutcheson said. “When I listened to the introduction of the programme and read about how it worked, that drew me into

the programme. I was like: ‘OK, they are going to assign me an advisor’, so it is not just like you bring your idea and if it doesn’t work, we don’t fund you.

“It was like: ‘We are going to help you figure it out. We are going to help you get your plan together.

We are going to help you be able to present it to where it needs to go’, and that’s what attracted me to the organisation. It was the commitment the programme had of helping you to develop your business; not just giving you a grant but helping you to keep on track.”

Now that More Play Entertainment has received funding, Ms SandsHutcheson said: “I am very excited to be funded because I was waiting for a while.

You have an idea, and you can see your vision, but for someone to believe in your vision and help you to achieve the funding for your vision, it is an overwhelming experience.

“I do not think I would have been able to access the correct funding that I needed if I did not have the advisement of the SBDC. They pushed and worked the plan properly, showed me different areas and weak points that the idea may have had.

“Taking my idea to them and letting them assist me with showing me all the areas that needed to be considered, all the risk that will be taken, all the things that need to be done, I feel like without the SBDC the road would have been much longer. I have all kinds of different emotions. I am excited, I am ready to go, and I am eager to make this happen,” she continued.

“One of our immediate goals for the company is to get our name out there. Once we get the rides landed, we want to have a big event to allow persons to see and use the rides. In the meantime, we will be opening up our social media pages and begin marketing More Play Entertainment.”

Ms Sands-Hutcheson said the most valuable thing the SBDC has offered her company is the advice.

“The advisement that you get in the programme, a start-up company cannot pay for,” she added. “You can get someone to do the work for you, but the cost factor is the big thing. The experience, the work and the effort that you get from the SBDC are priceless. You can’t put a real figure on what they do because it is so well-rounded with what you need for your business.

“Another major thing for why I like, and would encourage entrepreneurs to join the programme, is the advertising and networking you get through the SBDC is also something that you can’t put a figure on. You can get your business out there, and you have a network of entrepreneurs helping each other, coming to each other for services within the organisation.

That alone is advertising that you cannot pay for.”

The SBDC is the product of a tripartite arrangement between the government, through the Ministry of Finance, University of The Bahamas (UB) and the Bahamas Chamber of Commerce and Employers Confederation (BCCEC). The Centre works to guide the development, funding, growth, and evolution of Micro, Small and Medium-sized Enterprises (”MSMEs”) in The Bahamas.

FROM PAGE ONE - equivalent to ten percent of the total $12bn listed over that period - had sold. The average listing and selling prices stood at $700,000 and $400,000, respectively, with the average number of days on the market standing at 270 (around nine months).

“What I noticed is about ten percent of inventory on the MLS sells annually; there was $1.2bn over a fiveyear period in sales on the MLS,” Mr Carey told Tribune Business. “Over that five-year period, $1.2bn out of $12bn sold.

“The average listing price was $700,000, the average sales price was $400,000, and the average days on the market was 270. There are trends there that we need to pay attention to going into 2020. I still think it’s a buyer’s market, and the mentality has been to list high, get offers in and negotiate.

“With the data available, why not list the property and sell the property? I’m not big on taking a listing over a period of time. I’ve lost business because of that. I’m not one to sit on the summit for three years,” he continued.

“It’s a tricky business.

I noticed the trends: Ten percent of properties being listed are being sold, the average listing is 270 days, and the average price is 40 percent below the asking price on average over a fiveyear period.”

While acknowledging that the MLS does not include every property listing in The Bahamas, Mr Carey argued that the volume of inventory it features is still large enough to be statistically significant and help to gauge trends.

His data suggests that more than $200m worth of MLS listings are sold annually, a figure that does not include private listings, new inventory constructed by developers and a whole host of other realtor listings.

Besides the work created for realtors, contractors, furniture and materials suppliers and attorneys, Mr Carey also pointed to the VAT and other taxes generated for the Public Treasury.

He also urged the government to “empower” Bahamian ownership in the tourism industry by creating a taxation level playing field for Airbnb and other vacation rental owners through giving them the same tax breaks and incentives as the major resorts.

“I’ve always felt that as Bahamians we should be empowered to get into the Airbnb game,” Mr Carey told Tribune Business. “We should be given real property tax breaks, VAT breaks.

“Every Bahamian should be encouraged to hold five properties. It doesn’t have to be as individuals; it could be done through partnerships.

It should be the same incentives given to the hotels.

Why not empower us in this tourism industry and give us a piece of that?”

Mr Carey added that the Bahamian real estate market appeared poised for a good 2020 having shrugged off any fall-out from Hurricane Dorian, and client phone and messaged inquiries starting to pick-up as normal as the industry’s typically busy season kicked-off on Boxing Day. “I don’t think you ever get a real estate agent to be negative,” he told Tribune Business. “I think we’re going to recover from the

slowdown post-Dorian. Typically that time of year slows down anyway going into the summer. Did we lose about 20 percent? Maybe, but in the slow season.

“Our season traditionally starts on December 26, so the phone is now ringing and there are a lot of e-mails. I got inquiries for a property in the Family Islands. They want to buy for $3m and rent it out for Airbnb, so they’ll be looking for property management.

“The hurricane slowed things down a bit, but luckily the real estate market is not focused on BPL. That whole thing is such a mess. It’s bad news,” Mr Carey added. “I think we’re in a good position. I think the market is going to do well.

“There’s affordable money out there. We’re still an attractive destination and the Ministry of Tourism is bringing bodies here. The Bahamas is now a global name in a concerning way, but the more we promote The Bahamas is open for business the better it is.

“We’re looking forward to 2020. Affordable money, affordable inventory, and the luxury market continues to do well. My feeling is we’re going to have a good year. There’s a lot of money out there, a lot of wealth.

The Bahamas is a wellknown second home market and we have to capitalise on it.”

Mr Carey added that developments such as Hurricane Hole and GoldWynn were bringing new highend inventory to market, together with expansions at the likes of Palm Cay and new projects at Cable Beach and Love Beach.

THE TRIBUNE COMPANIES will be fined if they still have banned plastic products on their shelves or in inventory come July 1, government officials have warned.

Dr Rhianna Neely-Murphy, senior environmental officer with the Department of Environmental Health, along with environmental officer, Lyndee Bowe, reaffirmed to Tribune Business the government’s commitment to ending the use of single-use plastic bags, styrofoam containers and related plastic utensils.

Dr Neely-Murphy said: “As of July 1, any of the forbidden items, if they are found on your shelf or in your store you can be fined and, depending on the severity of the fine, it will be up to $5,000 or $7,000.

“If you release a balloon, there is a fine up to $2,000 and subsequent fines if you are caught doing it again. If you sell any of the banned items after this transition period [January 1 to June 30, 2020] there are fines up to $5,000 and then subsequent fines. If you are a retailer and you are not reporting on the bags that you sold, there are fines up to $1,000 and subsequent fines if you continually don’t report.”

Dr Neely-Mur-

Thursday, January 2, 2020, PAGE 3

Businesses warned on plastic products

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net phy added: “If you are a restaurant and you have Styrofoam, between January 1 and June 30 you can continue to sell those until the stock is completed, but if you are a restaurant and, on July 1, your stock is not completed and officers come and make an inspection of your store, you would incur fines because that transition period is over.”

New Year’s Day saw the start of food and other stores charging between 25cents to $1 per plastic bag at the point-of-sale. The border ban importing the prohibited plastic items is also in effect, along with the bar on releasing balloons into the atmosphere. There is a sixmonth transition between January 1 to July 1, 2020, for companies to run down existing stocks of prohibited items.

The Department of

Environmental Health duo, meanwhile, also responded to a social media post that went viral over the past week showing some boxes of plastic bags being sold by the case from Super Value.

They said: “We saw it needful to do some extra PR on the plastic bag ban. We want to let people know that the bags are being banned at the border, and we do not encourage people to buy bags, especially as an individual or a household, because the likelihood you will be able to take them into a store and use them is very slim.

“The stores have to show that they sold you a bag on that visit, and if they can’t show that and an inspector comes then that store can be fined. You have to show on the receipt, and the store has to keep records that have to be submitted on a yearly basis.”

Dr Murphy added: “Right now we are working with (the Department of) Inland Revenue to make this a part of your application for a business license. So if you have a business license, it will be an add-on to your business license. E-businesses also need to go through the similar processes to record that you are selling the bags.”

‘BUSINESS AS USUAL’ HURT POVERTY BATTLE FROM PAGE ONE Unit (PEU) and the Cash Grant Unit suffered significant challenges during implementation,” the IDB report, obtained by Tribune Business, reveals. “As reported in interviews with officers who operated in the units, there was an attempt by the management of the Ministry [of Social Services and Community Development] to operate the PEU as ‘business as usual’.

“These restrictions significantly impacted operations, as they were not based on standard project implementation processes and procedures but instead followed strict bureaucratic policies.

This structure resulted in complex human resource policies, in which officers were required to fulfill all the requirements of those employed within the civil service. This codification resulted in lengthy staff recruitment to the PEU that resulted in delays in the organisation and administration of the Cash Grant Unit.”

Co-ordination between the PEU, the Department of Social Services and its ministry, and the ministries of health and education were identified as another obstacle, highlighting how rigid, inflexible government processes can act as a barrier towards efforts to improve the lives of the Bahamian people.

“The rigid reporting hierarchy significantly affected the agility of the project team to respond to

implementation challenges,” the IDB report said. “The reporting structure led to protracted timelines for decisions and procurement transactions, as well as long review periods of consultant reports. All these delays, in turn, led to significant delays in the implementation of key project activities.

“These delays were the most significant, however, in the roll-out of the CCT pilot. Decisions related to all stages of the registration process were delayed primarily because of the lack of understanding of the processes, and the fact that decisions were not forthcoming....

“A total of four missions over the space of a year were used to determine the amount of the benefit to be paid by the CCT. Based on these mission reports, changing arrangements around the consolidation of the different benefit plans that would now be paid through the CCT required significant and multiple points of review before it was approved by the Cabinet in 2016. These discussions had started at the beginning of the project in 2012.”

The four-year wait to make key decisions is unlikely to surprise many observers of how the Government works. This part of the IDB report this exposes another element that undermined efforts to reduce Bahamian poverty.

Tribune Business previously revealed how the same report disclosed that poverty-stricken families and the Bahamian taxpayer

received almost no value from the near-$5.4m investment already made in welfare reform when it was halted by the Minnis administration due to “the change in policy direction” that followed the May 2017 general election.

The project had been designed to “break the cycle” of “generational poverty” and welfare dependency by linking the payment of benefits to specific education and health goals. Known as a conditional cash transfer (CCT), which would have consolidated the Government’s benefits regime, the initiative aimed to “change behaviour” among the children of poor families by promoting schooling and healthy living.

Benefits recipients would have been required to ensure their children maintained a 90 percent school attendance record at both primary and secondary level, and keep a grade point average (GPA) of 2.0 or more. Dropping below this level would have triggered a 90 percent minimum attendance threshold at tutoring classes.

On the health front, beneficiaries and their families would have been required to attend the likes of routine prenatal classes, “well child care” visits, parent craft classes and healthy weight clinics in a bid to combat childhood obesity and the high level of non-communicable diseases that flow from it.

Failed broker paid ‘excessive’ cash to related parties FROM PAGE ONE of communication between the managing shareholder [Arturo Klein][ and executive management, a lack of transparency in the day-to-day operations of the company, a lack of sufficient documented policies and procedures, a lack of adherence to existing policies and procedures, and an emerging and constant monthly cash flow shortage that resulted in an inability to pay in a timely fashion the business introducers.”

Pacifico Global’s seemingly messy insolvency represents an untimely black mark for The Bahamas and its financial services industry given the ongoing struggles to escape the Financial Action Task Force’s (FATF) “monitoring list”, as well as avoid continued scrutiny from the European Union (EU) and Organisation for Economic Co-Operation and Development (OECD) on tax matters.

It is seemingly the latest small broker/dealer or investment advisory firm to collapse and be placed under court-supervised liquidation.

Tribune Business has extensively reported over the past decade on the failures of companies such as Caledonia Corporate Management, Owen Bethel’s Montaque Capital Partners and Tillerman Securities.

All these companies, as well as Pacifico, appear to share common characteristics in that they were all small, independent firms without a large parent network to provide distribution access to clients. And all seem to have been controlled by a single, or small group of like-minded, shareholders and managers.

Meanwhile, Mr Rahming’s report to the Supreme Court revealed that Eliano Tamburini and Luca Lanciano, respectively Pacifico Global’s former chief executive and chief operating officer, were responsible for securing the majority of the

company’s clients.

The duo would thus have earned the bulk of these “introduction” commissions, which were calculated as a percentage of the gross value of client investments. While they took these clients with them when they left, some of these “transfers” were not executed due to reasons that included “insufficient Know Your Customer (KYC) on customer files”.

Following Messrs Tamburini and Lanciano’s departures, Mr Brune and Ms Butler conducted an internal investigation into Pacifico’s affairs.

“The reported findings were that the company lacked clear operational and compliance-related policies and procedures,” Mr Rahming alleged in his report.

“There were no internal controls, there were no corporate resolutions for decisions made, there was no operational transparency.

Management personnel operated independent of each other, and there was no knowledge of what the other was doing.

“Many of the client files lacked proper KYC documentation, and some of the clients appeared to be involved in suspicious transactions. As a result of the internal investigation, a total of seven suspicious transactions reports (STRs) were filed with the Financial Intelligence Unit (FIU) and copies were provided to the Securities Commission.”

Mr Rahming alleged that one consequence of the probe was that Pacifico Global elected not to take on any new clients until it had “cleared all irregularities and closing existing accounts that did not have KYC documentation, raising red flags”.

This meant no new clients were taken on from August 2017, resulting in reduced revenue streams that contributed to the insolvency.

Revealing that he was still piecing together Pacifico Global’s true financial position, Mr Rahming said he had “concerns that the accounting records of the company cannot be fully relied upon” as they were “at least nine months in arrears” - with eight months

of journal entries waiting to be entered into its system - when he took over in October 2019.

An extension for the 2018 audit had been sought from the Securities Commission, and the liquidator added: “We understand the company’s external auditors, Kikivarakis & Co, had begun the audit of the year-end 2018 financial statements and found missing information and errors - management fees and commissions payable requiring adjustments.

“We were told the external auditors also had concerns about the solvency of the company. The company was to revert to the auditors with updated financial information, including solvency information, to complete the audit.... We understand the company did not revert to the external auditor with updated financial statements/information before it was placed into voluntary liquidation.”

Pacifico Global’s chief operating officer for the seven months prior to its insolvency was Kareem Kikivarakis.

Prior to that, Pacifico Global had outsourced its accounting functions from April 2018 onwards to Kicays Accounting and Consulting Services, a company owned and operated

by Kareem Kikivarakis.

Multiple sources in the financial services industry told Tribune Business that Kareem Kikivarakis is either the son or nephew of Anthony Kikivarakis, principal of Kikivarakis & Co, Pacifico Global’s external auditor, although this could not be confirmed before press time as neither returned Tribune Business calls and e-mails seeking comment.

Kikivarakis & Co was named as the company’s external auditor well before Kareem Kikivarakis became involved with Pacifico Global. No adverse findings are made in the liquidator’s report, and there is nothing to suggest either man or Kikivarakis & Co has done anything wrong in relation to Pacifico Global.

PAGE 4, Thursday, January 2, 2020

THE TRIBUNE

Deltec slams ‘inaccurate’ claims on broker’s failure FROM PAGE ONE his new firm, Phoenix Capital Ltd, while still engaged by his now-former employer.

The redemption request, allegedly made without Pacifico Global’s knowledge, triggered a dispute with Phoenix Capital that ultimately resulted in the sub-funds - containing up to 70 percent of the former’s client assets under management - being placed under Mr Galanis’s care.

The liquidator alleged that his review of Pacifico Global’s files found complaints by its former executives that “Deltec was conflicted and acting in a manner adverse” to its interests by accepting the redemption requests from Lanciano and Phoenix - a charge that both the bank and trust company, and fund services arm, are understood to vigorously dispute and reject because the requests were never acted upon.

The Deltec group is also vehemently denying Pacifico Global claims

that net asset valuations (NAVs), which calculated the worth of the sub-funds’ shares and underlying investments, were “often late” and contained mistakes, as well as allegations about the non-payment of due management fees and failing to follow liquidity requirements.

“The company [Pacifico Global] claims these issues negatively impacted its business by resulting in cash shortages, an inability to pay itself management fees, an inability to file year-end financial statements to meet regulator-mandated deadlines, customer complaints to the Securities Commission of The Bahamas, negative publicity, legal threats from customers and loss of customers,” Mr Rahming alleged in his report to the Supreme Court.

However, Deltec hit back, telling Tribune Business: “Many of the statements in the official liquidator’s affidavit that concern Deltec Bank & Trust and Deltec Fund Services are inaccurate

and unsubstantiated. Deltec, through its legal counsel, has reached out to the liquidator who has agreed to discuss the content of his report with Deltec and to address any possible factual inaccuracies.

“In the interim, our legal counsel has been instructed to pursue all avenues available to Deltec in order to protect our reputation as a prudent and leading financial services group in The Bahamas. It is our intention to ensure the content of the document is factual and leaves no room for innuendo or misinterpretation.”

Sources close to Deltec, speaking on condition of anonymity because they were not authorised to talk publicly, told Tribune Business that the Lyford Cay-based financial group felt Pacifico Global’s former executives had tried to make it a scapegoat when it was their own “mismanagement” that had caused the broker/dealer’s collapse (see other article on Page 1B).

They said Deltec was

unable to understand the basis for Mr Rahming’s assertion that its fund administration arm had been “conflicted” in how it handled the dispute between Pacifico Global, Phoenix Capital and the former Pacifico Global executives given that it never followed the latter’s redemption requests because they were not made in a valid format.

The liquidator’s report, though, alleged that Deltec Fund Services was “conflicted” because it would have acted as the administrator and custodian for the new sub-fund being established by the former Pacifico Global executives.

This newspaper also understands that Deltec’s position is that it tried to mediate between the warring Pacifico Global parties rather than becoming - as alleged by the liquidator’s report - involved in the dispute itself.

Tribune Business sources also said Deltec was told to stop paying the investment management fees, and the group was querying why Mr Rahming had not approached it to verify his findings - instead of seemingly accepting what was on file at Pacifico Global - prior to submitting his Supreme Court report.

Still, the sub-funds receivership resulted in a significant income loss for Pacifico Global, as this meant it was deprived of investment management, custodial and other fees, and Mr Rahming identified the drying-up of this revenue as one reason for its insolvency.

“The Lyford Fund, an open-ended investment fund incorporated in The Bahamas in June 2015, was promoted to the management of [Pacifico Global] by executives at Deltec as a beneficial investment holding structure for the company’s clients,” Mr Rahming wrote in his report.

“Between October 2016 and June 2017, the company sponsored a total of 20 sub-funds or segregated accounts linked to the Lyford Fund and had over $217m (as of December 31, 2017) or approximately 70 percent of its assets under management placed into the sub-funds.”

Deltec Fund Services acted as the administrator and registrar and transfer agent for the sub-funds, the liquidator’s report alleged, with its bank and trust company affiliate playing the role of custodian. Two corporate entities, Deltec Fund Directors Ltd and

Deltec Fund Governors, were directors of the Lyford Fund. Pacifico Global was the investment manager for the sub-funds, and custodian for most of their assets.

Mr Rahming’s report alleged that trouble was sparked by “internal conflicts” that emerged at Pacifico Global in early 2017. The broker/dealer informed the Securities Commission of its intent to dismiss Eliano Tamburini as chief executive on December 4, 2017, with Mr Lanciano resigning as chief operating officer with effect from June 30, 2018.

“Prior to his departure” from Pacifico Global, Mr Lanciano set up Phoenix Capital as a Securities Commission-licensed advisory firm in May 2018. He and Mr Tamburini were named by the liquidator as being responsible for attracting “the majority of clients” on Pacifico Global’s books, and they seemingly sought to take their clients with them.

“Tamburini sent instructions, via Phoenix Capital, to Deltec Fund Services on May 29, 2018, for redemptions representing 51 percent (approximately 28 million euros) of the assets in the Segregated Account, a sub-fund of the Lyford Fund,” Mr Rahming alleged.

These assets were to be placed in a new sub-fund named EUR Top Selection Sub-Fund, which was to be sponsored by Mr Tamburini and administered by Deltec Fund Services. However, the instructions were never acted upon, and Pacifico Global alleged it had been unaware of Mr Tamburini’s demands until informed

by Deltec Fund Services.

“On June 28, 2018, the company [Pacifico Global] advised Deltec that Lanciano was no longer an authorised signatory of the company, and it had come to its attention that he had acted - and was acting - in a manner adverse to the company” over the 51 percent redemption request,” Mr Rahming’s report said.

While Deltec Fund Services was said to have received a request from the majority of investors in one sub-fund to change the investment manager from Pacifico Global to Phoenix Capital, the intensifying dispute between the latter two entities started to dominate developments.

“The dispute arose due to the company [Pacifico Global] apparently not having knowledge of the large redemption request that was made by Phoenix while Lanciano was

employed by the company and the proposed change in custodianship from [Pacifico Global] to Deltec Fund Services,” Mr Rahming alleged.

“Deltec Fund Services, in its capacity as administrator of the sub-funds and proposed administrator for the EUR Top selection sub-funds, was conflicted. It became apparent that the dispute potentially endangered the assets in the Segregated Account.”

Mr Rahming’s report reveals that the Segregated Account was “suspended by unanimous consent” of the Lyford Fund’s Board on August 1 last year, and subsequently placed into Mr Galanis’s care as receivermanager on March 7, 2019.

The remaining sub-funds followed on May 28, 2019.

The liquidator added that, “due to the close of client accounts, transfer of accounts and other changes”, Pacifico Global’s client assets under management in the sub-funds had fallen to $114m or 52 percent of the total - compared to the initial $217m or 70 percent - by December 31, 2018. Still, they accounted for 87 percent of all its custodial assets.

Mr Galanis subsequently revoked Pacifico Global’s role as investment manager, and by September 30, 2019, he had gained control of $47m in sub-fund assets from their various custodians. Pacifico Global still retained $39.32m in cash, and $28.126m in securities investments, belonging to the sub-funds at this date just prior to Mr Rahming’s appointment as liquidator at the beginning of October.

He added that he plans to “review” the October 2019 transfer of $13.446m from Pacifico Global’s account at Deltec to Mr Galanis as this was made without his authorisation as liquidator. Mr Rahming said Pacifico Global still retains over $55m in assets belonging to the sub-funds and their investors, due to its prior role as custodian, as of November 1, 2019.

Mr Galanis could not be reached for comment over the New Year period, but his success in safeguarding and recovering the sub-funds’ assets will be key to the Pacifico Global liquidation as most of the latter’s client assets are in those investment structures.

www.ub.edu.bs

NOTICE

Spring 2020 Semester Registration and Payment Dates Friday, 13th December 2019 • Deadline to resolve registration matters at the Registrar’s Office • 12:00p.m. - Deadline to make payments on accounts at the cashiers’ windows Tuesday, 31st December 2019 Deadline for online registration for returning students Friday, 3rd January 2020 | 4:00 p.m.

Deadline to make payments online Friday, 3rd January, 4:01 p.m. to Monday, 6th January, 9:00 a.m.

Online payment portal WILL NOT be available Thursday, 9th January to Saturday, 11th January 2020 Late Registration *Spring Semester 2020 stickers available for collection from cashiers’ window until Friday, 17th January 2020

THE TRIBUNE

Thursday, January 2, 2020, PAGE 5

CAN MAKE A DIFFERENCE IN THE LIVES OF THE CHILDREN AT RANFURLY

T

he Ranfurly Homes for Children has been a safe haven for thousands of Bahamian children since 1956. The Home provides a safe, structured environment for children who have been orphaned, abused, neglected or abandoned.

YOU can make a difference in the lives of the children at Ranfurly. With your support children can have nutritious food, warm beds and a safe environment where they can discover the joy of being children. For years the children living and learning at Ranfurly have made great social and academic strides.

Their further development requires additional support in the form of a Transitional Home, planned for construction on the Ranfurly property.

This residence will cater to teenagers and young adults who are beyond school age, but need accommodation while they find work and gain independence from the Home.

We look forward to your continued support in this worthwhile endeavour.

MEMBERSHIP PACKAGES Individuals, Families & Corporate Sponsors Children Helping Children - $5 (Individual children from ages 6 - 18) Individuals Helping Children - $50 (Individual adults 18 years and over) Families Helping Children - $100

CIRCLE of FRIENDS Silver: $1,500 - $2,499 Gold: $2,500 - $4,999 Platinum: $5,000 plus

OPPORTUNITIES • • • •

Invitations to Ranfurly events Assist with fundraising events Involvement with special activities Adults are eligible to join the Board after three months • Stay in touch with Ranfurly through website and newsletters

YOUR

CHOICE FOR THE FAMILY

BENEFITS

• Personal fulfillment in knowing you are impacting lives • Ranfurly children’s appreciation and positive response • Continued support provides stability and constant care

For more information visit: www.ranfurlyhome.org Please “Like” us on Facebook Ranfurly Home for Children, Mackey Street P.O. Box 1413 Nassau, Bahamas 242-393-3115

WWW.FACEBOOK.COM/JOYFM1019

COMMONWEALTH OF THE BAHAMAS IN THE SUPREME COURT EQUITY SIDE

2014 CLE/QUI/

BETWEEN ALL THAT piece parcel or lot of land containing TwentyEight Thousand Nine Hundred and One (28,901) Square Feet Westwards of Telda Close approximately Three Hundred and Eighty-Six (386) feet Northwards of Cow Pen Road and approximately One Thousand Five Hundred and Fifty (1550) feet Westwards of East Street in the Southern District of the Island of New Providence one of the Islands of the Commonwealth of the Bahamas AND IN THE MATTER of the Quieting of Titles Act, 1959 AND IN THE MATTER of the Petition of CEDRIC E. CURRY, JR.

NOTICE 1. The Petition of CEDRIC E. CURRY of the Southern District of the Island of New Providence one of the Islands of the Commonwealth of the Bahamas in respect of ALL THAT piece parcel or lot of land containing Twenty-Eight Thousand Nine Hundred and One (28,901) square feet situate Westwards of Teleda Close approximately Three Hundred and Eighty-Six (386) feet Northwards of Cow Pen Road in the Southern District of the Island of New Providence aforesaid and bounded on SOUTHEASTWARDLY thence SOUTHWARDLY by land now or formerly the property of Neville Dorsette and together running thereon One Hundred and Fifteen and TwentySeven Hundredths (115.27) feet SOUTHWESTWARDLY by land now or formerly the property of Neville Dorsette and running thereon Two Hundred and Sixty and Forty- three Hundredths (260.43) feet NORTHWESTWARDLY by land now or formerly the property of Stoney Battery and running thereon One Hundred (100) feet NORTHEASTWARDLY thence EASTWARDLY thence NORTHEASTWARDLY by land the property of Your Petitioner and together running thereon Two Hundred and Ninety-Seven and Nine Hundredths (297.09) feet which said piece parcel or lot of land is shown on the plan attached hereto and is thereon coloured Pink.

The Petitioner, Cedric E. Curry, claims to be the owner in of the fee simple estate in possession of the said land and has applied to the Supreme Court of the Bahamas under the Quieting Titles Act, 1959, Chapter 393 of the Statue of Laws in the above action to have his title to the said land investigated and declared.

Copies of the said plan may be inspected during normal working hours at the Registry of the Supreme Court, Bank Lane, N. P., and at the Chambers of Braynen Symonette & Co., Suite A3, Amelia House, #23 Mt. Royal Avenue (Hawkins Hill) North, Nassau, The Bahamas.

NOTICE IS HEREBY GIVEN that any person having dower or right to dower or any adverse claim not recognized in the Petition shall before the 25th day of September A.D., 2014 file in the said Registry of the Supreme Court and serve on the Petitioner or the above Braynen Symonette & Co., a statement of such claim. Failure of any such to file and serve a statement of such claim by the above time will operate as a bar to such claim.

Dated this 11th day of December, A.D., 2019 BRAYNEN SYMONETTE & CO. Attorneys for the Petitioner

PAGE 6, Thursday, January 2, 2020

THE TRIBUNE

As more women run for office, child care remains a hurdle SALT LAKE CITY Associated Press

WHEN Kimberly Dudik ran for her fourth term in the Montana House, state officials told her she could not use campaign money to pay for child care for her four young children.

She is now running for attorney general and is trying to visit a big chunk of the sprawling state, spending hours on the road. That means she needs even more help picking up her kids at school and day care when she’s away and her husband has a late night at the office.

“It just seems behind the times,” Dudik, whose family is living off her husband’s income and savings from her work as a lawyer. “When it was a man campaigning, the woman was traditionally the one to stay home and take care of the children. There is not someone home just taking care of the kids.”

Experts predict a large number of women will again run for office in 2020 like they did in 2018, and child care remains a hurdle for many of them.

A congressional candidate in New York successfully

THIS undated photo provided by the Luz Escamilla Campaign shows Utah lawmaker and Salt Lake City former mayoral candidate Luz Escamilla with her husband Juan Carlos and three of her children, Aileen, Sol and Cielo, in Salt Lake City. She was among the first candidates to use a new Utah law that allows campaign money to be used for childcare. A small but growing number of states are passing similar measures, something that advocates say will allow more women to run for office amid a historic rise in the number of female candidates around the country.

Photo: Brandon Cruz/Luz Escamilla Campaign/AP petitioned the Federal Election Commission in 2018 to allow campaign money to help cover child care costs.

But it applies only to those running for federal office.

That leaves women in many states who are running for the Legislature, statewide positions like attorney

HELP WANTED

general or local offices to find another way to pay for child care as they campaign, which often requires night and weekend work.

Only six states have laws specifically allowing campaign money to be used for child care. Five states are considering it. In most states, including Montana, the law is silent on the issue and up to interpretation by agencies or boards. Agencies in at least nine states have allowed child care to be a campaign-related

expense, but those decisions are not law and could be reversed.

Utah is among the states that passed a gender-neutral child care expense law, which went into effect last May. Sponsored by Republican state Rep Craig Hall, it easily passed the GOP-dominated legislature.

Luz Escamilla was one of the first candidates to use it as she campaigned to become the first Latina mayor of Salt Lake City.

Escamilla had to take time

LEGAL NOTICE

A financial institution seeks a Teller/Clerk.

Successful candidates must have: • •

•

A High School Diploma At least an Associate’s degree in a financial field At least two (2) years’ experience in a similar position

Please send resumes to: positionavailable1985@gmail.com

UCAP Asia Fund Series Ltd., SAC INTERNATIONAL BUSINESS COMPANIES ACT (No.45 of 2000)

In Voluntary Liquidation Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act, (No.45 of 2000), that UCAP Asia Fund Series Ltd., SAC (IBC no. 171265 B) is in dissolution. The date of commencement of the dissolution was 27th December, 2019. The Liquidator of the Fund is Crowe Bahamas and can be contacted at Suite #0587, 7 Albany Street, Nassau, The Bahamas, P.O. Box AP-59223. All persons having claims against the above-named company are required to send their names, addresses and particulars of their debts or claims to the Liquidator before 27th January, 2020.

Crowe Bahamas Liquidator

off from her full-time banking job to knock on doors and shake hands as she made her case to voters.

Without a paycheck, it was hard to cover the cost of child care for her two youngest daughters. After the law was passed, she used about $1,500 in campaign cash over two months to help pay for it. The extra time she could spend campaigning helped propel her to a spot in the general election, though she lost in November.

“Full-time campaigning during the summer with toddlers, it makes it really difficult,” Escamilla said, adding of the law: “It was a great tool in our toolbox.”

Lawmakers in Minnesota added child care as an allowable expense in 2018, while Colorado, New York, New Hampshire and California passed laws in 2019.

Before Colorado allowed campaign cash to be used for child care, Amber McReynolds, a former chief elections official in Denver, was contemplating a bid for statewide office in 2017.

The costs of child care were a considerable concern as a single mother of two young children.

For that and other reasons, McReynolds decided against running.

“When we look at the statistics in terms of representatives in Congress or statewide office and you don’t see single moms in that category, that’s why,” said McReynolds, who’s CEO of a nonprofit. “The circumstances are just that much more difficult when you are in politics.”

The policy also can help fathers running for office in families where both parents work.

Jean Sinzdak, associate director of the Center for American Women and Politics at Rutgers University, said the record number of women who ran for office in 2018 has helped drive the issue. Still, lawmakers in a number of states have resisted the change.

In Tennessee, the sponsor of a measure to add child care to the list of approved campaign expenses faced a skeptical audience during a subcommittee hearing last spring.

“If they aren’t running for office because they can’t find child care, how are they going to do the job down here?” asked state Rep. John Crawford, a Republican from Kingsport, Tennessee.

The sponsor, Democratic state Rep Jason Powell, said he introduced the proposal after people he tried to recruit to run for City Council in Nashville declined because child care needs kept them from campaigning.

“I hate that people in our

state feel like they can’t run for office because they may or may not be able to use their campaign funds for a child care expense,” Powell said.

The measure failed to advance after a split vote of the all-male subcommittee.

In Louisiana, Democratic state House candidate Morgan Lamandre had her request denied by the state ethics board even though it allowed a Republican man to claim campaign-related child care expenses in 2000.

Members, who were not on the panel two decades ago and didn’t have to follow the previous decision, said they were concerned it could be abused.

After a backlash, the board reversed itself.

While she’s used campaign funds to pay for child care a few times, Lamandre said it’s not a panacea for smaller races where candidates might have to choose between paying a babysitter or buying basics like lawn signs.

“It’s helpful, but it’s not a slam-dunk,” she said.

Liuba Grechen-Shirley, who unsuccessfully ran for Congress on eastern Long Island and whose FEC petition led to child care expenses being allowed for federal candidates, started a group called Vote Mama to help mothers running for public office and hopes one day the expense is allowed in every state.

States now considering proposals include New Jersey, Illinois, Ohio, Rhode Island and Massachusetts.

Caitlin Clarkson Pereira tried a similar approach to Grechen-Shirley’s, but ended up suing Connecticut after a board denied her request. She was told she couldn’t use campaign money to pay for child care for her young daughter during her state House race in 2018, which she ultimately lost.

Connecticut officials cited a programme that allows candidates to tap taxpayer money after they raise a certain amount on their own. With public money involved, the state says child care should be considered a personal expense.

Pereira argued that it should be considered as necessary as meals or travel.

“This is the time to remove the roadblocks that are clearly in the way of parents and families being able to run for office,” she said.

Despite an eleventh-hour push last year by Connecticut Gov Ned Lamont, lawmakers failed to pass the policy.

Dudik, the Montana candidate, said the lack of these laws shows the need to have more women in power so policies can be changed.

NOTICE NOTICE is hereby given that KATSIE PIERRE of 302 SW 15th Terrace, Delray Beach, Fl 33444 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 02nd day of January, 2020 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that ROMAINE GIBSON of Freeport, Grand Bahama 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 2nd day of January 2020 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

THE TRIBUNE

Thursday, January 2, 2020, PAGE 7

TRUMP SAYS HE’LL SIGN FIRST-STEP CHINA TRADE DEAL ON JAN 15 WEST PALM BEACH Associated Press

THE first phase of a USChina trade agreement will be inked at the White House in mid-January, President Donald Trump announced on Tuesday, adding that he will visit Beijing at a later date to open another round of talks aimed at resolving other sticking points in the relationship.

The so-called “Phase One” agreement is smaller than the comprehensive deal Trump had hoped for and leaves many of the thorniest issues between the two countries for future talks.

Few economists expect any resolution of “Phase Two” before the presidential election in 2020.

And the two sides have

PRESIDENT Donald Trump gives a thumbs-up after arriving for Christmas Eve dinner at Mar-a-lago in Palm Beach, Fla. Photo: Andrew Harnik/AP yet to release detailed documentation of the pact, making it difficult to evaluate.

Trump said high-level Chinese government officials will attend the signing on Jan 15 of “our very large and comprehensive

Phase One Trade Deal with China”.

“At a later date I will be going to Beijing where talks will begin on Phase Two!” Trump said in his tweet. He did not announce a date for the visit.

China has agreed to boost its US goods imports by $200bn over two years, the US Trade Representative said Dec 13 when the deal was announced. That includes increased purchases of soybeans and other farm goods that would reach $40bn a year.

China has also agreed to stop forcing US companies to hand over technology and trade secrets as a condition for gaining access to China’s vast market, demands that had frustrated many US businesses.

In return, the Trump administration dropped

plans to impose tariffs on $160bn of Chinese goods, including many consumer items such as smartphones, toys and clothes. The US also cut tariffs on another $112bn of Chinese goods from 15% to 7.5%.

Many analysts argue that the results are fairly limited given the costs of the administration’s 17-month trade war against China. US farm exports to China fell in 2018 to

about one-third of the peak reached six years earlier, though they have since started to recover.

Import taxes remain on about half of what the US buys from China, or about $250bn of imports. Those tariffs have raised the cost of chemicals, electrical components and other inputs for US companies. American firms have cut back on investment in machinery and other

equipment, slowing the economy’s growth this year.

A study last week by economists at the Federal Reserve found that all of the Trump administration’s tariffs, including those on steel and aluminum as well as on Chinese imports, have cost manufacturers jobs and raised their costs.

That’s mostly because of retaliatory tariffs imposed

by China and other trading partners.

PAGE 8, Thursday, January 2, 2020

THE TRIBUNE

Stocks close out best year since 2013; S&P 500 soars 28.9%

By ALEX VEIGA Associated Press WALL Street closed the books yesterday on a blockbuster 2019 for stock investors, with the broader market delivering its best returns in six years.

The S&P 500 finished with a gain of 28.9% for the year, or a total return of 31.5%, including dividends.

The Nasdaq composite rose 35.3%. For both indexes it was the best annual performance since 2013. Technology stocks helped power those gains by vaulting 48%.

The Dow Jones Industrial Average gained 22.3%, led by Apple.

Along the way, the three major indexes set more record highs than in 2018 and kept the longest bull market for stocks going.

“We had a remarkable year of returns in the stock market,” said Keith Buchanan, portfolio manager at Globalt Investments.

“Things are much different going into 2020 than they were going into 2019.”

Wall Street’s record-shattering ride in 2019 was not without its bumps.

The market got off to a roaring start in January after Federal Reserve Chairman Jay Powell said the central bank would be “patient” with its interest rate policy following four increases in 2018.

That encouraged investors who had been worried the Fed would continue hiking rates. Those concerns helped fuel a sell-off in the final quarter of 2018 that knocked the S&P 500 nearly 20% lower by December of that year.

January’s rally helped set the tone for a year in which the market responded to every downturn with a more sustained upswing. Along the way, stocks kept setting records — 35 of them for the S&P 500 index, 22 for the Dow and 31 for the Nasdaq.

By the end of the year, the Fed had completely reversed course and cut rates three times in what Powell called a pre-emptive move against any impact a sluggish global economy and the US-China trade war might have on US economic growth.

The market also overcame a late-summer slump caused by fears that the US economy could be headed for a recession. Those concerns eased as investors drew encouragement from surprisingly good third-quarter corporate earnings and data showing the economy was not slowing as much as economists had feared.

“You fast-forward 12 months and now we’re going into 2020 and the sentiment seems like it’s fairly the opposite,” Buchanan said. “There are fairly rosy expectations and there’s not a consensus that a recession is coming in a very near term.”

A truce in the 17-month US-China trade war helped keep investors in a buying mood through the end of the year. Washington and Beijing announced in December they reached an agreement over a “Phase 1” trade deal that calls for the US to reduce tariffs and China to buy larger quantities of US farm products.

On Tuesday, President Donald Trump tweeted that he will sign the initial trade

deal with China at the White House next month. He also said he plans to travel to Beijing at a later date to open talks on other sticking points in the US-China trade relationship that remain to be worked out, including Chinese practices the US complains unfairly favor its own companies.

A last-minute burst of buying reversed an early dip the major indexes on Tuesday. Stocks ended the day broadly higher, led by gains in technology, health care and financial companies. Industrial stocks and household goods makers lagged the most. Bond prices fell, sending yields higher. Gold rose and crude oil fell.

The S&P 500 rose 9.49 points, or 0.3%, to 3,230.78.

The Dow gained 76.30 points, or 0.3%, to 28,538.44. The Nasdaq climbed 26.61 points, or 0.3%, to 8,972.60.

Smaller company stocks fared better than the rest of the market. The Russell 2000 index picked up 4.32 points, or 0.3%, to 1,668.47. The index ended the year with a gain of 23.7%.

Trading volume was lighter than usual ahead of the New Year’s Day holiday. US markets were closed yesterday and reopened today.

Bond prices fell. The yield on the ten-year Treasury note rose to 1.92% from 1.89% late Thursday.

In a year when most of the 11 sectors in the S&P 500 finished with gain of more than 20%, technology stocks led the way higher.

“Technology performed well,” said JJ Kinahan, chief strategist with TD Ameritrade. “There was a huge fear going into the year that technology was going to suffer considerably because of tariffs, yet at the end of the year Apple is the leading stock in the Dow.” Apple did in fact precipitate one of the biggest sell-offs of the year on Jan 3 with a warning of slowing demand for iPhones. After that, however, it was mostly good news for Apple shareholders and the stock finished with an annual gain of 86%, its best year since 2009.

Financial sector stocks, especially big banks, also posted strong gains in 2019, despite a sharp pullback in interest rates.

The sector ended with a 29.2% gain for the year, while JPMorgan Chase, Bank of America and Citigroup climbed over 40%.

Benchmark US crude oil lost 62 cents to settle at $61.06 per barrel. Brent crude, the international standard, gave up 67 cents to close at $66 per barrel.

In other commodities trading, wholesale gasoline fell three cents to $1.70 per gallon. Heating oil slipped a penny to $2.03 per gallon.

Natural gas was little changed at $2.19 per 1,000 cubic feet.

The price of gold rose $5 to $1,519.50 per ounce. Silver fell eight cents to $17.83 per ounce. Copper dropped three cents to $2.79 per pound.

The dollar fell to 108.64 Japanese yen from 108.83 yen on Monday. The euro strengthened to $1.1217 from $1.1202.

HELP WANTED A financial institution seeks a Receptionist/Clerk.

Successful candidates must have: • • •

A High School Diploma At least five (5) BGCSEs At least two (2) years’ experience in a similar position

To advertise in The Tribune, contact 502-2394

CROSSWORD PUZZLE Wednesday, January 01, 2020 Merry Christmas

MARKET REPORT www.bisxbahamas.com

(242) 323-2330

TUESDAY, 31 DECEMBER 2019

(242) 323-2320

ALL SHARE INDEX: CLOSE: 2,231.60 | CHG: 21.28 | %CHG: 0.96 | YTD: 122.15 | YTD%: 5.79 BISX LISTED & TRADED SECURITIES 52WK HI 4.45 22.65 7.00 6.10 2.60 2.00 5.47 11.75 6.17 4.50 11.01 2.81 4.35 10.21 7.90 16.99 9.40 3.63 14.20

52WK LOW 3.35 20.91 4.90 4.46 1.47 0.22 2.00 9.50 5.60 3.95 6.75 2.35 1.76 8.00 6.25 12.15 6.80 3.01 13.01

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 Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson

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

1000.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Fidelity Bank Class A Focol Class B

CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB

PREFERENCE SHARES

1.00 10.00 1.00

1.00 10.00 1.00

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

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

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

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

Bahamas Note 6.95 (2029) 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 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

LAST CLOSE 3.59 17.43 6.00 6.10 2.35 1.80 4.40 11.06 6.16 4.35 8.01 3.29 4.35 10.42 7.60 15.05 9.33 3.51 14.00

CLOSE 3.59 17.43 6.00 6.10 2.35 1.80 4.40 11.06 6.16 4.50 8.01 3.26 4.35 10.50 7.60 15.05 9.33 3.54 14.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.15 0.00 -0.03 0.00 0.08 0.00 0.00 0.00 0.03 0.00

1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00

CLOSE 100.00

CHANGE 0.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.00 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

LAST SALE 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

VOLUME

324

96 20,000

100,000

VOLUME

EPS$ 0.239 0.932 1.760 0.369 0.070 0.000 -0.438 0.722 0.449 0.184 0.140 0.102 0.467 0.646 0.728 0.816 0.939 0.203 0.631

DIV$ 0.170 1.260 0.000 0.260 0.000 0.020 0.000 0.720 0.220 0.120 0.000 0.434 0.060 0.328 0.240 0.540 0.200 0.120 0.610

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 15.0 18.7 N/M 16.5 N/M N/M -10.0 15.3 13.7 24.5 57.2 32.0 9.3 16.3 10.4 18.4 9.9 17.4 22.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0

YIELD 4.74% 7.23% 0.00% 4.26% 0.00% 1.11% 0.00% 6.51% 3.57% 2.67% 0.00% 13.31% 1.38% 3.12% 3.16% 3.59% 2.14% 3.39% 4.36% 0.00% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%

INTEREST Prime + 1.75%

MATURITY 19-Oct-2022

6.95% 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 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% 3.06% 3.81% 1.91% 3.39% 2.23% 2.75% 4.99% 6.20% 7.18% -0.08% 2.88% 3.80% 4.56% 6.50% 3.35% 4.17% 5.77% 7.89% 10.91% 11.57% 17.57% 18.60% 4.72% 5.08% 13.44% 13.49% 5.38% 5.44% 3.28% 3.80% N/A N/A 10.80% 2.60% 10.40% -4.00%

NAV Date 31-Oct-2019 31-Oct-2019 25-Oct-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Nov-2019 30-Nov-2019 30-Nov-2019 30-Nov-2019 30-Nov-2019 30-Nov-2019

MUTUAL FUNDS 52WK HI 2.27 4.32 2.08 194.86 158.57 1.65 1.82 1.74 1.21 8.31 10.26 6.91 11.76 12.32 10.74 10.00 8.98 11.79

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.58 1.69 1.66 1.09 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund Leno Preferred Income Fund Leno Growth Fund Leno Diversified Fund Leno 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 Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

NAV 2.27 4.32 2.08 193.72 158.42 1.65 1.82 1.74 1.19 8.29 10.16 6.91 11.76 12.32 10.72 N/A 8.98 11.40

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

Please send resumes to: positionavailable1985@gmail.com TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | COLONIAL 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333

30-Sep-2019 30-Sep-2019 30-Sep-2019