01262017 business

THURSDAY, JANUARY 26, 2017

business@tribunemedia.net

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Bahamas ‘ranked too highly’ by corruption index

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Transparency International’s Bahamas representative yesterday admitted that this nation was ranked too highly in its Corruption Perceptions Index (CPI), describing the issue as “the foundation for all” the country’s current problems.

Lemarque Campbell, of Citizens for a Better Bahamas (CBB), told Tribune Business that the global corruption watchdog’s assessment of the Bahamas was based on limited data and did not account for the views of persons ‘on the ground’.

Transparency International’s 2016 Index, released yesterday, ranked the Bahamas as the least corrupt country in the Caribbean, placing it at 24th out of 1276 nations.

This nation was also rated as the fourth least corrupt in the Americas, behind Canada in ninth spot, the US in 18th, and Uruguay in 21st position. By comparison with the rest of the Caribbean, Barbados was 31st and Jamaica in 83rd spot.

Nation least corrupt in Caribbean,says global survey Transparency rep: Data and local input too limited ‘Can’t tackle our woes if corruption not tackled’ The Bahamas’ rating is likely to be seized upon by the Government as one indicator showing that this nation is moving in the right direction, at least in comparison with other rankings such as the World Bank’s ‘ease of doing business’ report.

However, the Bahamas’ 24th spot ranking likely fails to match the experiences of many investors and business owners, along with ordinary Bahamians. Members of an ‘Entrepreneur Panel’, speaking at a Rotaract meeting last week, complained about payments being sought by government officials to expedite permit See pg b11

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Democratic National Alliance (DNA) yesterday pledged to return $90 million to Bahamian businesses and the wider economy by reducing Business Licence fees to a nominal sum.

Party officials said their See pg b9

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By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Minority investors in Bank of the Bahamas (BOB) are moving to seek financial redress for the spectacular destruction of shareholder value caused by $120 million in losses incurred over the past three years.

Shareholders in the troubled BISX-listed institution met at the British Colonial Hilton on Tuesday night to plot their next move, with a class action-type legal ac-

tion among the options said to be under discussion.

A spokesman for the meeting’s organisers, speaking on condition of anonymity, told Tribune Business that there was a collective determination among minority shareholders to obtain financial compensation for the dramatic decline in their investment’s value.

Declining to go into detail on how they would achieve this, the spokesman promised that the group would act “properly” and responsibly, and that the

shareholders were not seeking to further damage Bank of the Bahamas or the wider Bahamian economy.

“The goal is to make the shareholders whole, but they don’t want to cause disruption and bring the bank down,” the spokesman told Tribune Business. “They are in the process of deciding how to move forward.

“The concerned minority shareholders of Bank of the Bahamas had a meeting, and they are considering what steps to take in order to regain some value in See pg b8

nhartnell@tribunemedia.net The Bahamian insurance industry yesterday accused the Government’s key advisers of “overstating” the economic benefits from National Health Insurance (NHI) by failing to account for this nation’s strained fiscal position.

The Bahamas Insurance Association (BIA), in a written response to KPMG’s study, said funding for the $100 million NHI primary care phase would have to come from somewhere either taxes or reallocated government spending.

Either move, the BIA said, would impact other areas of the Bahamian economy and its GDP output,

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Robert Myers

Attempts to justify the Government’s use of the $1 billion-plus ValueAdded Tax (VAT) revenues are misplaced, a governance reform campaigner said yesterday, accusing it of “irresponsibly kicking the can down the road”.

Robert Myers, a principal with the Organisation for

Responsible Governance (ORG), said the PLP convention speech by Michael Halkitis was more a list of capital expenditures than a proper VAT accounting.

The Minister of State for Finance, addressing his party’s supporters on Tuesday night, repeatedly said ‘that’s where the VAT money gone’ in listing numerous expenditures and capital projects See pg b9

Plan ahead this year with a BOB Christmas Club Account  Deposit now through November 30th.*  Withdraw on December 1st.  Highly competitive rate.  Only $20 to open.

Promises nominal fee based on business size To range from $100 to $1,000 per annum Wants to return money to businesses, families

Says $100m funding will detract from other services ‘No reference’ to weak fiscal, economic climate BIA: No recognition of needed facility upgrades thereby offsetting some of the economic impact identified by KPMG. “The decision to spend $100 million per year on NHI is a decision to increase taxes or reduce other public services, both of See pg b7

Lawsuit among options discussed at Tuesday meeting ‘Goal is to make minority investors whole’ Organisers urge more to join the cause

VAT speech shows Govt still ‘kicking can down the road’

Insurers: Report ‘overstates’ NHI economic impact

By NEIL HARTNELL Tribune Business Editor

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BOB shareholders plot redress battle

DNA pledges $90m boost via Business Licence overhaul

By NATARIO McKENZIE

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Bank of The Bahamas Limited BOB Head Office: (242) 397-3000 www.BankBahamas.com *

Certain restrictions apply. Accounts must be opened by June 30th.

ORG chief: Minister missed mark on concerns FNM deputy: Projects identified not funded by VAT Speech admission tax funding extra spending, debt

THE TRIBUNE

Thursday, January 26, 2017, PAGE 3

DNA chief demands ‘Big concern’ over proper VAT auditing Homeowners Bill

By NATARIO McKENZIE

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The FNM’s deputy leader yesterday warned the Government about the potential ‘unintended consequences’ of its Homeowners Protection Bill, expressing concern that it could further slow mortgage lending and the wider economy.

K P Turnquest told Tribune Business his “big concern” lay in the fact that the Bill threatened to “intervene” in the contractual relationship between a borrower and their lender after both parties had committed to it.

He warned that court intervention, as set out by

Tribune Business Reporter

FNM deputy fears unintended consequences Warns of further lending, economic slowdown Interest rates, qualification requirements would rise previous versions of the Bill, would make it much harder for commercial banks and other lenders to secure properties and other loan security.

As a result, Mr Turnquest said they would become more risk averse, and either pull back from mortgage lending or increase the interest payments borrowers must make, with both outcomes likely to slow down the housing market and industries that depend on it.

“The big concern I’ve always had is that they’re talking about introducing regulations, or intervening in a contract between the bank and its borrower,” the FNM’s deputy leader told Tribune Business. “That’s not great. It’s going to make credit more difficult to obtain.”

Asked whether the Bill would make commercial See pg b14

True qualities to be an artist You either have it or you don’t. Is this true? Do you have to be born with natural ability or, with the right help, can we all be artists?

While some incredibly lucky people are born with the gift of artistic prowess, others have to study to become fluent in the language.Most artists I know were attracted to art at a very young age. They had a natural inclination to draw, paint, sculpt or design. And I believe everyone has at least one talent; something they are REALLY good at.

Some people are especially gifted at fixing things, while others can pick up a musical instrument and learn very easily.

As children we paint and draw all the time. We enjoy the chance for selfexpression and are unconcerned by the final result.

As a child, I can remember designing things that others my age could not. I was recently told by a very close family friend that I was destined to fall under the category of some sort of ‘artistic skill’, as he always observed the way I creatively combed my doll’s hair and the various colour clothing matching that I prepared for my dolls.

But as adults we are a lot more afraid to make mistakes, and have become more inhibited. Psychological barriers are usually to blame. By the same token, our first experience of art training often comes at secondary school, and it is at this time that people decide whether they are good at it or not. It is during these years that we lose belief in our ability and we do not try hard any more.

Another psychological barrier is the belief that you have to be naturally artistic or creative. Creativity is actually about engaging with the world and trying to express how you feel about it.

One of my strong beliefs is that worrying less about the outcome, and instead enjoying the process of creating art, is the best advice any would-be artist can receive. However, to improve as an artist it is wise to master some basic principles, and perhaps the biggest obstacles facing novice artists are the technical aspects.

The key to this is something called the ‘artist’s eye’.

Learning this skill makes the other technical skills you need easier. A key part of being an artist is observing the world around you and reflecting. Stopping to smell the roses. Notice how the light changes during the day, how colours affect you, how an interaction makes you feel. Take the time to become fully aware of your surroundings, and allow your observations to seep into your work.

For instance, if you see a couple sitting under a tree, notice how their bodies interact with the nature around them. What is the light like? What colours are predominant? How would you frame the scene?

Would you focus on their faces, on the colours, on the tree?

Paying attention to how you see the world will help translate your observations into art. While it takes years of training to learn to

see the world like an artist, there is so much new art in the world now there could never be a museum large enough to contain it all.

How can we save all this stuff? How do we catalogue it? Art is being produced every day, every hour, and at amazing speeds. The different arts communities, painting, poetry and literature, are like individual fish bowls. Each community is its own enclave.

Art in our time has come to mean anything, from the way colourful tattoos blend into human bodies to fancy food production in hot See pg b5

The Art of Graphix by deidre m bastian

nmckenzie@tribunemedia.net

The Democratic National Alliance’s (DNA) leader yesterday pressed the Christie administration for a proper accounting of Value-Added Tax (VAT) revenue, accusing it of wasting monies on pet projects and those that had gone over-budget.

Branville McCartney’s call came after Michael Halkitis, minister of state for finance, on Tuesday night defended the Christie administration’s spending while addressing the Progressive Liberal Party

(PLP) convention.

Mr McCartney said: “We want a breakdown of what goes into the Consolidated Fund; from where and by how much. How do you allocate what you spend from the Consolidated Fund and why? We see clearly that the money can’t be allocated for one thing and reallocated to the next.”

He added: “We want to know, or for it to be shown to us in very clear and numerical terms, a month-bymonth break down for each Ministry. We need to know why did the VAT revenue not go to pay down the debt as they said it would?

“Where is the Central

Revenue Agency and the legislation that the Christie administration promised to bring to Parliament in an attempt to move the collection of public monies out of the ineffective system.”

Mr Halkitis said that as a result of the Christie administration’s tax reforms, the Government has been able to get put the Bahamas’ finances on a better footing and double the investment in scholarships.

He added that it had also provided the financial resources to transition from the College of The Bahamas to The University of Bahamas at well over $12 million, plus the building of new schools and repairing existing ones; funding the introduction of National Health Insurance (NHI); and investment in public healthcare facilities.

PAGE 4, Thursday, January 26, 2017

THE TRIBUNE

BFSB, Govt launch languages initiative The Bahamas Financial Services Board (BFSB) has teamed with two government ministries on an initiative to make Bahamian students more competitive in the jobs market.

The Towards a Bilingual Bahamas (TABB) 2.0 programme was officially launched on Tuesday in Ministry of Education high schools throughout New Providence and the Family Islands.

It was introduced by the BFSB in 2015, in partnership with Rosetta Stone, the Ministry of Education, Science and Technology and The Ministry of Financial Services. TABB aims to give Bahamian high school students the opportunity

to become proficient in the French or Spanish language.

BFSB executives, along with representatives of the Ministry of Education and the Ministry of Financial Services, paid a courtesy call on L.W. Young Junior High School to celebrate the launch.

School officials expressed their commitment to TABB, and the students enthusiastically shared what they hoped to gain from this language programme.

Some 233 learners are enrolled in the initiative this year, an increase of 17 per cent over 2015. Top performers will have the opportunity to participate in Spanish and French im-

mersion courses during the summer vacation.

Lionel Sands, director of education, emphasised the Ministry of Education’s commitment to TABB. Hillary Deveaux, a consultant in the Ministry of Financial Services, stressed the importance of foreign language skills to the financial services sector, as well as the wider economy.

Tanya McCartney, the BFSB’s chief executive and executive director, encouraged the students to embrace the opportunity to gain a foreign language skill, which will position them well when they enter the job market upon completing school.

Pictured L to R: Spanish teacher at L.W. Young; Hillary Deveaux (consultant, the Ministry of Financial Services); Tanya McCartney (chief executive and executive director, BFSB); Seretha Clarke (assistant director of education); Donella Davis (head of modern languages, Ministry of Education); Lionel Sands, director of education.

SaleS Coordinator essential Job Functions: • Assist with the preparation of sales reports that will assist revenue

management; groups, corporate and leisure clients.

• Prepare all written correspondence and follow up with clients.

• Prepare all creative correspondence to Corporate Clients.

• Oversee all set up and break down of functions Position requirements: • Three years experience at a major company or hotel in a similar

position; • Proficiency in Microsoft Word and Excel spreadsheets; • The ability to assist with Sales Functions

Interested persons should submit their resumes via e-mail to: recruitment.humanresources@outlook.com

THE BAHAMAS RED CROSS SOCIETY Announces that it will host its first DISASTER MANAGEMENT MEETING for 2017 as follows: Date: February 1, 2017 Time: 6:00 pm Place: Auditorium, National Headquarters, John F Kennedy Drive.

All are welcomed.

For further information you may call (242) 323-7370 or email redcross@bahamas.net.bs

THE TRIBUNE

Thursday, January 26, 2017, PAGE 5

True qualities to be an artist From pg B3

Ian Rolle: President – The Grand Bahama Port Authority, Limited

Alana Jesse: Senior Campaign Strategist – Indiegogo New York

By DENISE MAYCOCK Tribune Freeport Reporer dmaycock@tribunemedia.net

a relatively small amount, typically via the Internet.”

Mr Rolle added that he was eager for participants to interact with one another and build off the creative energy created by the entrepreneurs gathered.

“This program is very much in line with our organisation’s visionary focus for the 2017 business year.

We want to support our licensees to become globally competitive, and to utilise the strength of technology to market products that are unique to our country,” ,” Mr Rolle said.

“We are taking advantage of technology to sell our goods and services. The benefits are enormous from job creation to revenue generation, and a great sense of pride about what Grand Bahamians can contribute locally and internationally.”

The event will feature local financial organisations, including Colina General Brokers and Scotiabank.

Derek Newbold, senior manager of business development and Invest Grand Bahama, said: “The financial services showcase is specifically designed so that our licensees begin to understand and appreciate that there are teams of dedicated professionals locally who want to help them meet and exceed their business goals.

“A part of the ease of doing business on the island is connected to building, promoting and maintaining networks of professionals invested in the success of what happens on the island.

We are excited and looking forward to positive results for participants.”

Freeport workshop eyes crowdfunding Entrepreneurs attending Freeport’s Small Business Fair and Training Workshop will gain insight into how to grow their businesses through crowdfunding in the global marketplace.

The workshop, hosted by the Grand Bahama Port Authority’s Invest Grand Bahama Small Business Bureau (IGBSBB), is held annually, and has about 100-registered participants to date. The event will be held at the Pelican Bay Resort in the Delphine Room, beginning at 10am today.

The GBPA has partnered with Indiegogo, from San Francisco, California, which has used the Internet in 223 countries and territories to raise more than $1 billion for projects.

Indiegogo will outline the process for participants to start shaping new or existing projects, or products, so that potential investors can learn more about available opportunities through a trusted and safe on-line platform.

Alana Jesse, Indiegogo’s senior campaign strategist, said: “Crowdfunding is a revolutionary way for entrepreneurs who have been neglected by traditional modes of fundraising to get the capital they need to start and grow their businesses.”

Ian Rolle, the Grand Bahama Port Authority’s (GBPA) president, said: “Crowdfunding is the practice of funding a project or venture by raising money from a large number of people who each contribute

urban kitchens where the chef is almost certainly... an artist. Clearly, ‘art’ is the most abused word in the English language.

I wince when I hear dabblers say: “I’m going home to make art.” Really? How do you know that what you are about to make will become art? That is not the point.It becomes art because they say it is art. End of conversation.

For example, a welder who is proficient at welding can decide he wants to make steel sculpture art.

A carpenter may decide he wants to create artwork out of wood. People who are naturally talented at something can use that talent to make art.

Becoming an artist requires a lot more than tal-

ent. It requires learning, looking at art from other artists, and continually creating and exploring. Art can be anything you want it to be. A fashion model, for instance, will refer to her walk down the runway or her pose before a magazine photographer as ‘art’.

Actors call their work in the theatre ‘art’, although there was a time when talented actors used to be referred to as good technicians capable of memorising lines.

While this may or may not be true, expressing yourself emotionally on stage is a talent many do not possess.

One thing most will agree on is this: Actors are the most visible of all the arts communities. They are really the ‘talking heads’ of the arts world, comparable

to ‘talking head’ (broadcast) journalists.

By and large, those who have no natural inclination towards creativity may develop it through experiences, travels, reading and learning.

I know of artists who never had any urge to create in their life until they went through certain experiences. These experiences inspired them to pick up a brush and learn to paint; something they did not ever think of doing before.

Everyone has their own journey and reasons for becoming an artist. Nonetheless, the best way to define yourself as a unique artist is to create your own style within the medium you have learned. No one can teach you your own style, simply because you need to discover it for yourself.

Break yourself out of your comfort zone.

Who is really an artist?

“An artist will risk many

things; convenience, popularity, fame or even friends and family to protect the integrity of their ideas. If you’re not risking anything, and mostly doing what you are told, you’re probably not an artist”. Until we meet again, fill your life with memories as opposed to regrets. Enjoy life and stay on top of your game!

• NB: The columnist welcomes feedback at deedee21bastian@gmail.com ABOUT THE COLUMNIST: Deidre Marie Bastian is a professionally trained graphic designer/marketing co-ordinator with qualifications of M.Sc., B.Sc., A.Sc. She has trained at institutions such as: Miami Lakes Technical Centre, Success Training College, College of the Bahamas, Nova South Eastern University, Learning Tree International, Langevine International and Synergy Bahamas.

PAGE 6, Thursday, January 26, 2017

THE TRIBUNE

GB Chamber meets Hawksbill Committee EMPLOYMENT OPPORTUNITY IT TECHNICIAN Job Summary We are looking for an IT Technician who has a thorough knowledge of computer software and hardware and a variety of internet applications, networks and operating systems. The ideal candidate will also have great troubleshooting abilities and attention to detail. The right individual must be able to train users of the systems.

Duties and Responsibilities: • Setup workstations with computers and necessary peripheral devices (routers, printers, etc) • Be familiar with all hardware and software • Be familiar with network operating system • Install and configure appropriate software and functions

according to specifications • Check computer hardware (mouse, keyboard) to ensure functionality • Provide orientation to new users of existing technology • Provide individual training and support on request • Troubleshoot technology issues • Provide network access to all users • Make recommendations about purchase of technology resources • Maintain records/logs of repairs and maintenance schedule Position Requirements: • Proven experience as IT Technician • Excellent diagnostic and problem solving skills • Excellent communication ability • Organizational and time management skills • Certification as IT Technician will be an advantage

In keeping with its commitment to open communication, the Grand Bahama Chamber of Commerce’s (GBCC) new executive Board has met with the Hawksbill Creek Agreement Review Committee.

The Chamber executives formally introduced themselves at the meeting, and pledged to maintain a good relationship with the committee.

Representatives from both parties also shared their hopes for Grand Bahama’s economic future, particularly as it relates to the Hawksbill Creek Agreement.

Pictured L-R: Ministry for Grand Bahama senior under-secretary; Harcourt Brown; permanent secretary, Melvin Seymour; Gb Chamber treasurer, Ralph Hepburn; Gb Chamber

secretary, Karin Sanchez; GB Chamber president, Mick Holding; Hawksbill Creek Agreement Review Committee chairman, Dr Marcus Bethel; GB Chamber second vice-president, Lawrence Palmer; GB Chamber executive director, Mercynth Ferguson; and GB Chamber first vicepresident Dan Romence.

(Photo: Keen i Media Ltd.)

Competitive salary and benefits package are commensurate with experience.

Interested persons should apply in writing via e-mail address: jmcdonald@comfortsuitespi.com

BTVI gets shown Development Plan The Bahamas Technical and Vocational Institute’s (BTVI) staff, faculty and students have been given a thorough breakdown of the Government’s National Development Plan (NDP).

Called ‘Vision 2040’, the initiative, funded by the Inter-American Development Bank (IDB), is expected to guide the Bahamas’ policy decisions up to 2040.

The four pillars of the plan include governance, human capital, the economy and the environment. It

is expected to provide answers to challenges through sustainable, non-partisan measures that would eventually be brought into law.

BTVI’s president, Dr Robert W. Robertson, said that as the country’s leading vocational and technical training institution, BTVI was ready to assist with the training and skills development involved with the NDP’s implementation.

Pictured seated from L to R are: NDP consultants Kevin Surujlal and Denise

Hinds-Jordan; chairman of the NDP’s steering committee and BTVI chairman, Felix Stubbs; and project officer, Daniella Pratt.

Standing from L to R are: BTVI’s associate vice-president of academic sffairs, Leroy Sumner; associate vice-president for administrative Services, Zakia Winder; Dr Robertson and associate vice-president, fund development, Alicia Thompson

THE TRIBUNE

Thursday, January 26, 2017, PAGE 7

Insurers: Report ‘overstates’ NHI economic impact From pg B1 which will negatively impact GDP,” the BIA argued. “By omitting this effect, KPMG has overstated the potential gain from introducing NHI.” Continuing with this financial/fiscal theme, the Association added: “The KPMG paper fails to reference the significant fiscal challenges faced by the Bahamas. The economic impact assessment ignores key macroeconomic indicators and metrics which are vital to the implementation and success of an affordable and sustainable healthcare programme.

“No reference was made to the negative and stunted growth environment within the Bahamas over the last four years.

“Additionally, the high debt, high debt-to-GDP ratio, high deficit, continuous increase in government spending and the junk bond (credit rating) status of the Bahamas were conveniently omitted from the economic impact assessment,” the BIA continued.

“The absence of this vital information from the study is unfortunate, and puts a damper on the mood of the private sector which had looked forward to this study with great anticipation.”

The KPMG study is predicting that implementing NHI’s primary care phase now will make the Bahamian economy almost $500 million bigger in 2040 than it would otherwise be, with the larger GDP output coming from a healthier, more

productive workforce that contained more workers.

It added that NHI primary care implementation would in 2030 make the Bahamian economy $248 million, or 2.7 per cent, larger than it would otherwise be if the scheme was not implemented.

And it estimated that NHI would make Bahamian GDP, or economic output, some $358 million or 3.7 per cent greater in 2035 than if the scheme was not executed. These figures rose to $485 million, or 4.8 per cent, by 2040.

The BIA, though, noted that NHI’s economic benefits, as outlined by the study, would materialise more in the medium to long-term, as opposed to the short-term.

In common with Dr Duane Sands, the FNM candidate for Elizabeth, it highlighted the KPMG report’s admission that the $485 million impact would materialise “over the course of a generation”.

Calling for publication of the assumptions underpinning the estimates and calculations in the study, the BIA also suggested that the report’s suggestion of ‘free’ healthcare being provided to all legal Bahamas residents via NHI was misleading.

It added that the NHI Act’s section 21 said something different, namely that persons with private health insurance coverage would have to exhaust those benefits before gaining access to the proposed Government scheme.

“This statement suggests that ‘free’ healthcare will be provided to all residents, and fails to clarify that individuals with primary care benefits under their private health insurance plan will not receive these ‘free’ services per the legislation,” the BIA said.

“Additionally, the report fails to acknowledge that there are no ‘modern primary care facilities’ in the Bahamas, and there is a dire need for the Government to focus on the strengthening and modernisation of their 90-plus clinics across our archipelago of islands prior to the rollout of the primary care phase.”

The BIA also described the KPMG report’s assertion that companies will see a slower rate of growth in private health insurance premiums as a result of NHI as “bold”, as it was unclear whether private coverage would remain viable and have “a healthier risk pool”.

“It is disappointing that despite several requests from the private sector as to how NHI will be funded, the costs of different options to finance this scheme were not examined by KPMG,” the Association added.

“Rather, KPMG has relied on what is currently set out in the Government’s implementation plans as developed by previous consultants..... The caveats in the document which implicitly highlight the correlation between good governance and strengthening of the public primary healthcare system are also noteworthy.”

Noting KPMG’s admission that there was a relative lack of data on which to base its projections, the BIA said assertions that

more persons would be able to work as a result of better health, and that the employability of those unable to work due to sickness/injury would improve, were unproven and not supported by statistics.

And, while acknowledging that it was fair to conclude employment in the public health sector will rise due to NHI, the BIA said this did not answer questions about care quality and whether jobs will be lost in the private health sector.

It added that there was “a school of thought” suggesting that KPMG was “conflicted”, or biased, in producing the study because of its role as the Government’s chief NHI adviser.

“This viewpoint zeros in on the fact that the firm has received - and continues to receive - significant fees for extensive services provided vis-à-vis the implementation of NHI,” the BIA said.

“Hence, it is almost unrealistic to expect KPMG to objectively criticise a plan for which it is one of the main architects or suggest that the overall impact on the economy will not be extremely positive.

“In this regard, while the partnership with Cambridge Econometrics is helpful in addressing this concern, a totally independent study would have been preferable. An independent collaborative assessment with the private sector would have also dispelled the notion that KPMG was influenced or pressured by the Government to produce a document which endorses its plans in a politically charged environment and justifies the current approach.”

PAGE 8, Thursday, January 26, 2017

BOB shareholders plot redress battle From pg B1 their shareholdings.

“They’re going to act in a way that is proper, because they don’t want to cause any damage to the bank and the economy but, by the same token, they have to take reasonable measures to regain the value of their shares.”

Tuesday night’s meeting represents one of the few instances of minority shareholder activism in the Bahamian capital markets.

Most investors in BISXlisted, publicly traded companies, tend to be relatively passive, content to let the majority shareholder/shareholders control and manage the fate of their investments.

However, the depth of

Bank of the Bahamas’ woes and the extent of shareholder losses, coupled with the Government’s involvement as 79 per cent majority owner, appear to have sparked enough outrage to unite the 3,500 minority investors.

The minority shareholder equity interest in Bank of the Bahamas has been progressively diluted, going from 49 per cent to 35 per cent, and now to 21 per cent following last year’s rights issue.

Tribune Business reported in September 2016 how almost $70 million was wiped off Bank of the Bahamas’ stock market value in one week, as investors searched for the ‘floor’ following the removal of price

movement restrictions.

This newspaper’s calculations show that the BISXlisted institution’s market capitalisation fell some 62.45 per cent in just five days, from $111.645 million to $41.92 million, during its $40 million rights issue.

Bank of the Bahamas’ market capitalisation is now even lower, with its share price standing at $1.77 on BISX, compared to the 52week high of $4.70.

The meeting spokesman yesterday suggested that the $1.77 price was still too high, arguing that Bank of the Bahamas’ stock was probably worth “less than 50 cents on the $1”.

Tribune Business understands that around 30 minority Bank of the Bahamas shareholders were present at the meeting, which was also attended by a legal team and forensic ac-

countants.

One shareholder who was present, speaking on condition of anonymity, told Tribune Business that the meeting was called to unite minority investors, and determine how many were interested in taking collective action against Bank of the Bahamas.

“It was just to see who was in agreement with proceeding with the action against the bank,” the shareholder told Tribune Business.

“It was intended as a get together to see whether there’s interest, which there is. Everyone thinks there’s a very strong case.”

While share prices can lose value just as easily as they appreciate, the controversy surrounding Bank of the Bahamas’ collapse, which required a 2014 ‘bail out’ transferring significant liabilities to the taxpayer, has created potential grounds for investor action.

Among the possible claims are ‘minority shareholder oppression’, and demands that they be compensated for the loss of dividends and their investments’ value.

Successive Boards and management have not been held accountable for Bank of the Bahamas’ descent

to advertise today in the tribune call @ 502-2394

into sustained, heavy losses with no end in sight, and the accusations that many loans were made to politically-connected persons although frequently denied - will not go away.

The meeting organisers’ spokesman yesterday argued that Bank of the Bahamas’ directors, management and the majority shareholder, meaning the Government, were all “culpable” for its problems, along with former auditors, Ernst & Young (EY). The Central Bank’s regulatory actions were also criticised.

They suggested that attendance on Tuesday’s would have been even greater had the Bahamas’ two main broker/dealers passed on details about it to their clients.

They accused CFAL and RoyalFidelity of failing to inform clients with Bank of the Bahamas shares about the meeting, explaining that the contact details for many shareholders were ‘care of’ either investment house.

“The organisers called on CFAL and RoyalFidelity to communicate the information to their clients, who they’re holding shares on behalf of,” the spokesman said, “but for whatever reason they chose not to.

“Shareholders should contact those entities to find out why they were not contacted, and what steps they ought to take to find out what is going on.”

The spokesman added that a website would be set up for Bank of the Bahamas’ minority investors, enabling them join in with whatever moves the existing

THE TRIBUNE group made.

A unified minority shareholder group, and the possibility of legal action, represent a further headache for Bank of the Bahamas and the Government (which holds its interest through the Public Treasury and National Insurance Board), plus possibly the Central Bank.

Should legal action result, all would face the possibility of having to make full disclosure through the filing of documents as part of the Supreme Court discovery process.

Bank of the Bahamas’ 2016 financials revealed that more than 46 per cent of its $510 million loan portfolio is now impaired.

And deposits by the Government and its agencies accounted for 52.8 per cent, or more than half, Bank of the Bahamas’ total deposits at the June 30, 2016, year-end.

This provides further evidence of just how heavily the Government is propping up Bank of the Bahamas, directing its agencies to deposit monies with it, and requiring new public sector hires to open accounts there.

The bank was also noncompliant with four of its five key regulatory capital ratios at end-June 2016, the annual financials revealing that the Central Bank of the Bahamas has made “certain supervisory interventions” with it.

The $40 million rights issue, and ongoing placement of $30 million in convertible bonds, is designed to correct this.

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THE TRIBUNE

Thursday, January 26, 2017, PAGE 9

DNA pledges $90m boost via Business Licence overhaul From pg B1 proposed tiered structure, with fees ranging from $100 to $1,000 per annum, would effectively deliver on the Government’s 2013 promise of fundamental Business Licence reform following VAT’s introduction.

The DNA’s plan is that small ‘mom and pop’ operations pay an annual $100 Business License fee; medium-sized businesses pay a $250 annual fee; medium to large businesses pay a $500 annual fee;

and large businesses pay a $1,000 annual fee.

Chris Mortimer, the party’s deputy leader, said: “That would equate to putting approximately $90 million back into the pockets of Bahamian families.

“That would do wonders for our economy in terms of businesses begin able to pay salaries and just survive.”

Addressing the issue at a press conference at the DNA’s East Street South headquarters, party officials said that while the Government has increasingly seen

VAT speech shows Govt still ‘kicking can down the road’ From pg B1 undertaken by the Christie administration.

Mr Myers, though, said Mr Halkitis’s address missed the mark in terms of most Bahamians’ concerns, which were centred on whether the Government was using VAT revenues for the purposes stated in the run-up to the tax’s January 1, 2015, introduction.

VAT had been billed as a necessary levy to reduce the Government’s annual $400 million-plus deficits, and to start paying down the near$7 billion national debt.

However, the IMF has estimated that another $300 million deficit was incurred during the 2015-2016 fiscal year, while the national debt has continued to increase - albeit at a slower pace post-VAT. “He’s giving a quick account of capital expenditures, but that’s not telling you where the VAT monies have been used,” Mr Myers said of Mr Halkitis’s muchpublicised speech.

“I think that when people are saying: ‘Where’s the VAT money gone?’, they’re in effect saying it was supposed to reduce our debt and pay down on our debt.

That’s not been happening.

“Because that’s not happening, what are we spending it on, and are these

things priorities? Some of the things he’s talking about are certainly worthy, but what they’re not doing is looking at inefficiency and accountability in many of the Government ministries and agencies.

“All the while we’ve not reduced our deficit and not reduced our debt. Again, the irresponsibility of not living within our means and kicking the can down the road is going to lead to our inevitable demise,” Mr Myers added.

“I’m not asking them to stand up and give an accounting on what capital expenditures are. I’m asking them to be fiscally responsible and accountable, and that’s not happening. For five years we’ve been saying get your fiscal house in order to avoid collapse.”

Mr Halkitis identified numerous government projects and expenditure as recipients of VAT monies, such as the $232 million and $100 million upgrades of the Royal Bahamas Defence Force’s and Bahamasair’s fleets, respectively; a $150 million healthcare outlay in preparation for National Health Insurance (NHI); and investments in scholarships and the University of the Bahamas transformation.

Tribune Business re-

Business Licence fees as a vital revenue source,many businesses were being crushed by heavy taxation.

They explained that businesses such as food stores and gas stations, which are high volume but low margin/net income, often end up paying Business License fees far greater than their annual profits because the tax is based on gross turnover.

“When the Government put out the VAT ‘White Paper’, they projected that at 15 per cent the Government was going to, on an annual basis, take in $400 million,” Mr Mortimer said.

“The Government reduced it to 7.5 per cent and

has gotten more in the past two years than they projected when they introduced the ‘White Paper’.

“Every dollar that they make comes from the pockets of Bahamian families and businesses. We cannot have growth in this economy when the Government feels that they can add additional lines of revenue attached to the wallets of Bahamian citizens and families.”

Mr Mortimer added: “To jump start economic activity we are going to follow a simple formula. We are going to start allowing Bahamian families and businesses to keep more of the money that they make.

“This month there are businesses, whether they are ‘Mom and Pop’ or large businesses, which are having to make the decision of paying Business License fees on top of VAT and Customs duties.”

The Government’s VAT ‘White Paper’, released in February 2013, initially proposed scrapping the Business Licence fee and replacing it with a flat $100 annual levy on all businesses.

The Christie administration subsequently decided to keep the existing Business Licence regime and fee structure until it was certain VAT is generating the projected, and required,

revenues.

Mr Mortimer said: “The Government had proposed that with the introduction of VAT it was going to reduce Business License fees.

Today, after more than $1 billion has been taken out of Bahamian businesses and families, they still haven’t lived up to that.

“We say that 2017 will be the last time that Bahamian entrepreneurs and business will be paying Business License fees as they have done, as a percentage of their revenue.

“No commutations will be made on the gross or the net. We are going to live up to what they proposed in the ‘White Paper’.”

search, though, shows that the Defence Force and Bahamasair enhancements were financed by project-specific loans, from Deutsche Bank and Credit Suisse/CIBC respectively.

The Princess Margaret Hospital Critical Care Block, too, was financed by loans from Royal Bank of Canada and CIBC, the former of which was latter paid out by Public Hospitals Authority (PHA) bonds.

K P Turnquest, the FNM’s finance spokesman, told Tribune Business: “In short he [Mr Halkitis] outlined a list of projects that are demonstrably unconnected to VAT collection and payment, as they were covered by specific loans or grants.”

He argued that another way of interpreting the Minister’s speech was that it amounted to an admission of how VAT was financing increased government expenditure, paying off new loans and financing the ongoing rise in the national debt.

“It’s funding the 4,000 person increase in govern-

ment employment, and all the wasteful spending we’ve seen over the last four-anda-half years,” Mr Turnquest said.

Although the broadbased, low rate VAT model agreed with the Bahamian private sector has exceeded the Government’s revenue expectations, the Christie administration has yet to fulfill several other fiscal promises that it made.

Chief among these are the initiation of consultation on whether the Bahamas should have a Fiscal Responsibility Act, which

would increase transparency and impose more oversight on government spending, plus the effective elimination of Business Licence fees to a nominal $150 per annum.

Mr Myers said successive governments since Independence had failed to achieve a ‘balanced Budget’ and put “the Bahamas’ fiscal house in order”.

He reiterated: “For decades they’ve been kicking the can down the road, and its damn well got to stop.”

Describing Mr Halkitis’s address as “a politi-

cal speech” targeted at the Government’s supporters, Mr Myers also pointed to the millions of dollars in liabilities removed from the Government’s balance sheet by the use of ‘special purpose vehicles’ or SPVs. “Let’s see some proper international accounting standard and transparency applied to our fiscal issues,” Mr Myers told Tribune Business.

“Let’s start having some meaningful discussions about how to effect a change in this; make changes to our fiscal health.”

to advertise today in the tribune call @ 502-2394

PAGE 10, Thursday, January 26, 2017

THE TRIBUNE

Congressional Republicans sketch ambitious agenda

PHILADELPHIA (AP) — Congressional Republicans laid plans Wednesday to act on a health care repeal bill by the end of March and rewrite the tax code by August as they sketched out an ambitious agenda for their first 200 days under President Donald Trump.

Meeting in Philadelphia for their annual policy retreat, they also discussed action to raise the nation’s borrowing limit, write an in-

frastructure package sought

by Trump and push funding for defense and border priorities.

The gathering was shadowed by a rocky start to the Trump administration, full of distracting, inaccurate claims about voter fraud and inaugural crowd sizes that some lawmakers fear could distract from their ability to deliver in a new era of GOP control. Trump will address the retreat on

Thursday.

“We have to get on to the serious issue of governing, these other issues are distractions,” Rep. Charlie Dent, R-Pa, said. “It’s a very aggressive agenda.”

Lawmakers arrived in Philadelphia via chartered train Wednesday. The 200day agenda was discussed at a downtown hotel, in a working session led by Senate Majority Leader Mitch McConnell and House

Speaker Paul Ryan.

Ryan laid out the goals of passing legislation to repeal former President Barack Obama’s health care bill and replace some portions by the end of March; and passing legislation to overhaul the loophole-ridden tax code by August. Lawmakers and aides said those goals could be achievable in the House but more difficult for the slower-moving Senate where Democratic

cooperation will be needed.

The Senate will also be occupied with confirming a new Supreme Court justice to fill the court’s vacancy.

McConnell got a standing ovation from House and Senate lawmakers in the closed-door meeting for his aggressive tactics last year in refusing for 10 months to fill the vacancy created

by Antonin Scalia’s death, which now hands Trump a seat to fill. Trump has said

he’ll announce his nominee next week.

Details from the gathering were described by lawmakers and aides speaking on condition of anonymity to discuss the private conversations.

Along with Trump, Vice President Mike Pence is addressing the gathering Thursday, as is British Prime Minister Theresa May, in a first for a foreign head of state.

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THE TRIBUNE

Thursday, January 26, 2017, PAGE 11

Bahamas ‘ranked too highly’ by corruption index From pg B1 applications.

Mr Campbell yesterday told Tribune Business he had himself been critical of both the Bahamas’ CPI ranking and how the Government has “used it” in the past, pointing to Prime Minister Perry Christie’s touting of it at a Cayman Islands conference several years ago..

As if confirming Mr Campbell’s position, this newspaper received an email from a well-known Bahamian businessman yesterday, seizing on the Bahamas’ high ranking.

“Transparency International is generally regarded as the ‘gold standard’ by which transparency in governance around the world is measured,” the businessman wrote.

“The latest report has recently been released and ranks the Bahamas as the least corrupt country in the Caribbean, surpassing Barbados which had previously held that standard... This is how the world sees the country.”

Mr Campbell, though, explained that the Bahamas’ CPI ranking was based on

“limited data” sources.

Just three - Political Risk Services’ Country Risk Guide; Global Insight’s Country Risk Findings; and the World Justice Project’s Rule of Law Index - had been used to determine the Bahamas’ ranking, whereas the CPI drew upon as many as 10 sources for other nations.

He added that the Index also drew heavily on “the perceptions from experts and business people”, as opposed to citizens and residents of the Bahamas, who were ‘on the ground’ and experienced the brunt of governance flaws.

“I myself have been critical of the CPI and the way the Government has used it,” Mr Campbell told Tribune Business. “I’ve been in contact with the Transparency International secretariat in Berlin.

“I think that when you look at the general perception of the average citizen, they have a different perspective compared to these limited data sources.

“Corruption is a very elusive form of human behaviour that could be very difficult to quantify. The best way to measure corruption

in the country is by the interaction that the average citizen and resident faces with the public sector.”

Mr Campbell said Citizens for a Better Bahamas was now in discussions with Transparency International to obtain just this information, via the latter’s Global Corruption Barometer survey - which interviews residents and businessmen in the particular country under scrutiny.

“I think what we really need to look at is getting a national survey done, incorporating the views of citizens and residents,” he said. “That would give you a broader perception of corruption and transparency than relying on the CPI. “The CPI is very limited. Don’t get me wrong:

Transparency International does amazing work, great work in terms of promoting transparency and accountability, but there’s a downfall in relying on the CPI.” Mr Campbell added that Global Corruption Barometer surveys were already underway in Jamaica and Trinidad & Tobago, and Citizens for a Better Bahamas was pushing for this to be extended to this nation, so that a regional report could be produced.

“Only Bahamians and residents of the Bahamas can truly give an accurate perception of corruption in this country,” he argued.

“We have current politicians who have admitted to not filing their financial details as mandated by the Public Disclosures Act.

NOTICE

“We have government entities not conducting and releasing information on annual audits; we have politicians who blatantly admit that their supporters should be the ones to obtain government contracts; we have money missing from government agencies without anyone held accountable; we still don’t have a strong Freedom of Information Act; we still have dubious actors heavily financing political parties without any restriction on the same; and the list goes on.

“These examples are not just a perception of corruption in the Bahamas; this is the reality that affects every Bahamian.”

Mr Campbell said the absence of such anti-corruption mechanisms in the

NOTICE is hereby given that SIDNEY SYLVIAN of Abundant Life Road, Nassau, The 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 26th day of January, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

Bahamas made it “a bit difficult to even get a clear perception” of how widespread the problem was.

He told Tribune Business that good governance, or the lack thereof, which embraces the topics of corruption, accountability and transparency, was at the root of the Bahamas’ present difficulties.

“Right now we can see that it’s affecting our development or lack thereof,” Mr Campbell said. “With the recent credit rating downgrade, it stands out in all of this. I think corruption is the foundation for all of this. Unless we tackle corruption, we can’t tackle many of the issues the Bahamas is facing.”

NOTICE

NOTICE is hereby given that Fernand Joseph of Carmichael Road, Faith Avenue South, P.O.Box CR-54743, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 19th day of January, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that INAVIE SIMILIEN WARD of #83 Wild Plum, 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 19th day of January, 2017 to the Minister responsible for Nationality and Citizenship, P.O.Box N-7147, Freeport, Bahamas.

MARKET REPORT WEDNESDAY, 25 JANUARY 2017

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

BISX ALL SHARE INDEX: CLOSE 1,913.17 | CHG -0.87 | %CHG -0.05 | YTD -25.04 | YTD% -1.29 BISX LISTED & TRADED SECURITIES

NOTICE

NOTICE is hereby given that FRANDY ADRIAN GREEN of #3 Edgers Place, 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 19th day of January, 2017 to the Minister responsible for Nationality and Citizenship, P.O.Box N-7147, Freeport, Bahamas.

NOTICE

NOTICE is hereby given that LOLITA CECELIA FORBES of 3A Seagull Close, Sea Horse Village, P.O.Box F60167 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 19th day of January, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

A Law Firm, seeks to employ person(s) for the following positions:

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52WK HI 4.38 17.43 9.09 3.55 4.70 0.12 8.21 8.50 6.10 10.60 15.48 2.72 1.60 5.82 9.75 11.00 9.00 6.90 12.25 11.00

52WK LOW 2.70 17.43 8.19 3.50 1.77 0.12 4.50 8.05 5.50 7.72 11.00 2.18 1.31 5.60 6.70 8.56 6.12 6.35 11.81 10.00

1000.00 1000.00 1000.00 1000.00

900.00 1000.00 1000.00 1000.00

PREFERENCE SHARES

1.00 106.00 100.00 106.00 105.00 105.00 100.00 10.00 1.01

1.00 105.50 100.00 100.00 105.00 100.00 100.00 10.00 1.01

SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Famguard Fidelity Bank Finco Focol ICD Utilities J. S. Johnson Premier Real Estate Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00 100.00

52WK LOW 100.00 100.00 100.00

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS FAM FBB FIN FCL ICD JSJ PRE CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

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

SYMBOL FBB17 FBB18 FBB22

Bahamas Note 6.95 (2029) BGS: 2014-12-3Y BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y

BAH29 BG0103 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407

BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

113.70 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

MUTUAL FUNDS 52WK HI 2.03 3.92 1.94 169.70 141.76 1.46 1.67 1.56 1.10 6.96 8.50 6.30 9.94 11.21 10.46

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.41 1.61 1.52 1.03 6.41 7.62 5.66 8.65 10.54 9.57

LAST CLOSE 4.38 15.85 9.09 3.52 1.77 0.12 4.55 8.50 5.83 10.50 11.93 2.10 1.60 5.82 9.75 10.95 9.00 6.90 11.93 10.00 1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.01 LAST SALE 100.00 100.00 100.00 108.07 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

CLOSE 4.38 15.85 9.09 3.52 1.77 0.12 4.50 8.50 5.83 10.50 11.93 2.12 1.60 5.82 9.75 10.95 9.00 6.90 11.93 10.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 -0.05 0.00 0.00 0.00 0.00 0.02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.11 100.00 100.00 100.00 10.00 1.01

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

CLOSE 100.00 100.00 100.00

CHANGE 0.00 0.00 0.00

107.96 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

-0.11 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund

VOLUME 100

10,000

VOLUME

NAV 2.03 3.92 1.94 168.44 141.76 1.46 1.66 1.56 1.07 6.96 8.50 6.30 9.80 11.13 9.63

EPS$ 0.029 1.002 -0.144 0.170 -0.130 0.000 -0.030 0.607 0.430 0.450 0.110 0.102 0.080 0.300 0.520 0.960 0.820 0.294 0.610 0.000

DIV$ 0.080 1.000 0.000 0.210 0.000 0.000 0.090 0.300 0.220 0.360 0.490 0.060 0.060 0.240 0.400 0.000 0.330 0.140 0.640 0.000

P/E 151.0 15.8 N/M 20.7 N/M N/M -150.0 14.0 13.6 23.3 108.5 20.8 20.0 19.4 18.8 11.4 11.0 23.5 19.6 0.0

YIELD 1.83% 6.31% 0.00% 5.97% 0.00% 0.00% 2.00% 3.53% 3.77% 3.43% 4.11% 2.83% 3.75% 4.12% 4.10% 0.00% 3.67% 2.03% 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% 3.50% 3.88% 4.25%

20-Nov-2029 15-Dec-2017 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022

YTD% 12 MTH% 4.30% 4.30% 3.82% 3.82% 2.73% 2.73% 3.95% 3.95% 6.77% 6.77% 3.56% 3.91% 2.22% 2.79% 2.80% 3.18% 2.99% 2.26% 4.35% 4.69% 4.13% 4.28% 4.22% 4.64% 6.19% 3.43% 2.77% 2.98% -3.66% -3.90%

NAV Date 31-Dec-2016 31-Dec-2016 31-Dec-2016 31-Dec-2016 31-Dec-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016

MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings

YIELD - 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

Deadline for Application is 2nd February, 2017 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 14, Thursday, January 26, 2017

‘Big concern’ over Homeowners Bill From pg B3 banks more reluctant to engage in mortgage lending, Mr Turnquest responded: “Intuitively, I would say that it will.

“As banks continue to make sure they’re protected, to the extent they’re now talking about the court having the ability to intervene after the fact, it’s adding another layer of risk that the bank will want to be compensated for.”

Mr Turnquest said this would likely result in Bahamas-based lenders increasing the interest rates on mortgage loans, or further tightening an already-stringent lending criteria.

Either way, he expressed concern that more Bahamians would be denied the opportunity to enter the housing market, and own ‘their piece of the rock’, as a result of the consequences flowing from the proposed Bill.

“I think we have to see

the details of the Bill, but certainly that would be my concern,” Mr Turnquest told Tribune Business.

“It will obviously result in a slowdown in the economy overall, because if borrowers are not able to meet the requirements - if those requirements are raised - there’ll be no mortgage loan.

“And if there’s additional cost involved because of the risk, it will be more expensive to afford.”

With around $500-$600 million worth or mortgages still in default following the 2008-2009 recession, Bahamian mortgage lenders need little further incentive to pull back on lending.

Should they do so, the impact would be felt throughout an economy where credit is the lifeblood of economic activity.

The ramifications would be especially felt in the construction and real estate

never made it into law, is likely to have undergone some subsequent revisions.

However, in its early incarnation, many in the banking industry saw it as well-intentioned legislation that would provoke numerous unintended consequences.

While the Bill is designed to make troubled Bahamian borrowers more secure in their homes, the fear is it will make it far more difficult, costly and time consuming for banks to secure - and take possession of distressed assets.

And inserting the already-clogged court system into the contract between lender and borrower will provide a further disincentive for banks to lend, or entice them to raise interest rates to compensate for the increased risk.

The end result, banking industry sources have predicted, will be a further pull-back in commercial bank mortgage lending, exacerbating the current Bahamian housing crisis.

The Government, though, sees the Bill as part of an improved con-

k p turnquest industries, and all sectors that depend on the housing market.

Mr Turnquest spoke out after Prime Minister Perry Christie told the Bahamas Business Outlook conference on Monday that the Homeowners Protection Bill was back on the Government’s agenda, and it was seeking to pass it through Parliament before the upcoming general election.

The Bill, which was first brought to the House early in the Christie administration’s term in office, but

THE TRIBUNE

sumer protection package, alongside its Mortgage Relief Plan and the proposed Credit Bureau Bill.

It is also under pressure to act after Marco City MP, Greg Moss, introduced his own Private Members’ Bill on the same subject.

THE WEATHER REPORT

5-Day Forecast

TODAY

ORLANDO

High: 81° F/27° C Low: 54° F/12° C

TAMPA

FRIDAY

SATURDAY

SUNDAY

MONDAY

Beautiful with plenty of sunshine

Mainly clear

Partly sunny

Partly sunny

Clouds and sun; breezy in the p.m.

Partly sunny and breezy

High: 80°

Low: 65°

High: 80° Low: 64°

High: 77° Low: 63°

High: 78° Low: 65°

High: 76° Low: 60°

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

88° F

71° F

90°-68° F

87°-66° F

83°-62° F

76°-56° F

The exclusive AccuWeather RealFeel Temperature® is an index that combines the effects of temperature, wind, humidity, sunshine intensity, cloudiness, precipitation, pressure and elevation on the human body—everything that affects how warm or cold a person feels. Temperatures reflect the high and the low for the day.

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almanac

E

W

ABACO

S

N

High: 77° F/25° C Low: 72° F/22° C

8-16 knots

S

High: 83° F/28° C Low: 63° F/17° C

8-16 knots

FT. LAUDERDALE

FREEPORT

High: 84° F/29° C Low: 65° F/18° C

E

W S

E

W

WEST PALM BEACH

N

uV inDex toDay

TONIGHT

High: 80° F/27° C Low: 56° F/13° C

High: 82° F/28° C Low: 66° F/19° C

MIAMI

High: 86° F/30° C Low: 65° F/18° C

6-12 knots

KEY WEST

High: 80° F/27° C Low: 70° F/21° C

Statistics are for Nassau through 1 p.m. yesterday Temperature High ................................................... 79° F/26° C Low .................................................... 58° F/14° C Normal high ....................................... 77° F/25° C Normal low ........................................ 65° F/18° C Last year’s high ................................. 79° F/26° C Last year’s low ................................... 55° F/13° C Precipitation As of 1 p.m. yesterday ................................. 0.00” Year to date ................................................. 0.57” Normal year to date ..................................... 1.05”

ELEUTHERA

NASSAU

High: 80° F/27° C Low: 65° F/18° C

Forecasts and graphics provided by AccuWeather, Inc. ©2017

High: 76° F/24° C Low: 69° F/21° C

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tiDes For nassau High

Ht.(ft.)

Low

Ht.(ft.)

Today

6:35 a.m.

6:49 p.m.

2.8 2.2

12:11 a.m. -0.3 1:02 p.m. -0.1

Friday

7:15 a.m.

7:31 p.m.

2.9 2.3

12:54 a.m. -0.4 1:41 p.m. -0.2

Saturday

7:54 a.m.

8:12 p.m.

2.9 2.4

1:35 a.m. -0.4 2:20 p.m. -0.3

Sunday

8:34 a.m.

8:54 p.m.

3.0 2.5

2:17 a.m. -0.5 2:58 p.m. -0.4

Monday

9:14 a.m.

9:37 p.m.

3.0 2.6

3:00 a.m. -0.4 3:38 p.m. -0.5

Tuesday

9:56 a.m.

10:24 p.m.

2.9 2.6

3:45 a.m. -0.4 4:19 p.m. -0.5

Wednesday 10:41 a.m.

11:14 p.m.

2.8 2.7

4:34 a.m. -0.3 5:04 p.m. -0.5

sun anD moon Sunrise Sunset

High: 77° F/25° C Low: 70° F/21° C

N

S

E

W

4-8 knots

S

4-8 knots

ANDROS

Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

The higher the AccuWeather UV IndexTM number, the greater the need for eye and skin protection.

6:55 a.m.

5:50 p.m.

Moonrise Moonset

5:41 a.m.

4:52 p.m.

New

First

Full

Last

Jan. 27

Feb. 3

Feb. 10

Feb. 18

CAT ISLAND

E

W

Mr Turnquest, meanwhile, questioned whether the 350 borrowers assisted to-date justified the Government’s outlay of $20 million worth of taxpayer monies, over a four-year period, on the Mortgage Relief Plan.

SAN SALVADOR

GREAT EXUMA

High: 77° F/25° C Low: 71° F/22° C

High: 77° F/25° C Low: 71° F/22° C

N

High: 80° F/27° C Low: 65° F/18° C

E

W S

LONG ISLAND

insurance management tracking map

High: 78° F/26° C Low: 71° F/22° C

6-12 knots

MAYAGUANA High: 78° F/26° C Low: 72° F/22° C

Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

CROOKED ISLAND / ACKLINS RAGGED ISLAND High: 77° F/25° C Low: 74° F/23° C

GREAT INAGUA High: 80° F/27° C Low: 72° F/22° C

N

N E

W

E

W

H

High: 77° F/25° C Low: 72° F/22° C

S

S

6-12 knots

6-12 knots

marine Forecast ABACO ANDROS CAT ISLAND CROOKED ISLAND ELEUTHERA FREEPORT GREAT EXUMA GREAT INAGUA LONG ISLAND MAYAGUANA NASSAU RAGGED ISLAND SAN SALVADOR

Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday:

WINDS SW at 8-16 Knots WSW at 7-14 Knots S at 4-8 Knots SW at 3-6 Knots S at 4-8 Knots SW at 4-8 Knots SE at 6-12 Knots SE at 4-8 Knots SSW at 6-12 Knots SW at 4-8 Knots SW at 8-16 Knots WNW at 7-14 Knots S at 4-8 Knots SSW at 3-6 Knots SE at 6-12 Knots NE at 4-8 Knots SE at 6-12 Knots S at 3-6 Knots SE at 6-12 Knots S at 4-8 Knots SSW at 3-6 Knots SW at 3-6 Knots SE at 6-12 Knots E at 4-8 Knots S at 6-12 Knots SW at 4-8 Knots

WAVES 2-4 Feet 2-4 Feet 1-2 Feet 0-1 Feet 2-4 Feet 1-3 Feet 1-3 Feet 1-3 Feet 2-4 Feet 1-2 Feet 2-4 Feet 2-4 Feet 1-2 Feet 0-1 Feet 1-3 Feet 1-3 Feet 1-3 Feet 1-2 Feet 3-5 Feet 2-4 Feet 1-2 Feet 0-1 Feet 1-3 Feet 1-2 Feet 1-3 Feet 1-2 Feet

VISIBILITY 10 Miles 8 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 8 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles

WATER TEMPS. 73° F 73° F 76° F 76° F 76° F 76° F 79° F 79° F 74° F 74° F 75° F 75° F 76° F 76° F 80° F 80° F 79° F 79° F 78° F 78° F 75° F 75° F 78° F 78° F 76° F 76° F

THE TRIBUNE

Thursday, January 26, 2017, PAGE 15

Dow Jones industrial average breaks through 20,000 milestone AP Business Writer – The Dow Jones industrial average crossed the 20,000 mark for the first time Wednesday, the latest milestone in a record-setting drive for the stock market.

Strong earnings from Boeing and other big companies helped push the Dow past the threshold early on.

U.S. stocks closed solidly higher, lifting the Standard & Poor’s 500 index and Nasdaq composite to record highs of their own for the second day in a row.

Banks and other financial companies led the gainers, which included technology and industrials. Real estate, phone companies and other high-dividend stocks lagged the broader market as bond yields rose.

“It’s a psychological event to get through that big hurdle, that big round number,” said Jeff Kravetz, regional investment strategist at U.S. Bank’s Private Client Re-

serve. “It’s really symbolic of what’s going on with investor sentiment becoming much more positive, and that’s going to drive stock prices higher.”

The Dow, which tracks 30 major industrial companies, gained 155.80 points, or 0.8 percent, to 20,068.51. The S&P 500 index rose 18.30 points, or 0.8 percent, to 2,298.37. The Nasdaq added 55.38 points, or 1 percent, to 5,656.34.

Small-company stocks also rose. The Russell 2000 picked up 13.23 points, or 1 percent, to 1,382.44.

The market has been marching steadily higher since bottoming out in March 2009 in the aftermath of the financial crisis.

The rally continued after the election of Donald Trump as U.S. president last fall. The Dow first closed above 10,000 on March 29, 1999.

Wednesday’s rally came

against a backdrop of optimism on Wall Street that executive actions and policy goals announced by the Trump administration this week on trade, manufacturing and business deregulation will be good for corporate America.

“Whether it’s tax reform or infrastructure spending, any of those tend to be optimistic conversations for the markets currently,” said Darrell Cronk, president of Wells Fargo Investment Institute. “We have to wait and see how they play out, obviously. The danger here, if there is one, is that the market gets ahead of itself a little bit.”

Most professional investors are skeptical the Dow at 20,000 will have much effect on the market. They more often look to the S&P 500 index as a benchmark, because they consider it better representation of the broad market.

“In and of itself, it is just a number,” said Quincy Krosby, market strategist at Prudential Financial. “But what it does is it lifts market expectations, in essence, to continue moving higher.”

If the Dow reaching 20,000 has any impact, it will likely be a psychologi-

www.ub.edu.bs

APPLICATION DEADLINE FOR FALL 2017 The public is advised that the deadline for submission of applications to University of The Bahamas for Fall 2017 admission is Friday, February 3rd, 2017.

For more information email: admissions@ub.edu.bs

cal one. Investors have been leery of the stock market for years, unable to stomach the prospect of losing more than 50 percent of their money for a second time if another financial crisis hits.

That trepidation has

caused them to pull money out of stock funds — even as the Dow made its march toward 20,000 — and depend instead on safer bond investments.

Last year, investors pulled a net $27.1 billion out

of U.S. stock mutual funds and exchange-traded funds, according to Morningstar.

A year earlier, they yanked $66.5 billion. Over the same time, investors plugged a total of $218.6 billion into taxable bond funds.

GN-1846

Ministry of Transport & Aviation Road Traffic Department