02052018 business

business@tribunemedia.net

MONDAY, FEBRUARY 5, 2018

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‘No sacred cows’: All taxes up for review

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

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top Finance official has pledged there will be “no sacred cows” as the Government embarks on a wide-ranging review of all tax laws, regulations and procedures.

Marlon Johnson, the Ministry of Finance’s acting financial secretary, told Tribune Business that “nothing is out of bounds” as the Government seeks to marry tax administration and enforcement with

* Finance secretary: ‘Nothing out of bounds’ * Cabinet’s ‘clear mandate’ on all processes * DPM: Balance tax integrity with business ease an improved ‘ease of doing business’.

He revealed that the Minnis administration had given the Ministry and its revenue collecting agencies, including the Department of Inland Revenue (DIR) and Bahamas Customs, “a clear mandate” to review all current tax processes

and make recommendations on how they can be improved to better enable commercial flows.

“In terms of all the Acts, we have been mandated to look at all the prevailing legislation that impacts upon what we do,” Mr Johnson said. “And, consistent with the whole ease

of doing business initiative, those things we can amend to facilitate the ease of business but maintain the integrity of collecting taxes in a way that is a lot more facilitative and effective.

“Cabinet has been very clear with us. There are no

SEE PAGE 6

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DPM ‘questions’ corporate veil piercing tax law

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Deputy Prime Minister yesterday questioned how the former government “got away” with ‘piercing the corporate veil’ to hold businesses hostage over shareholders’ personal tax liabilities.

K P Turnquest told Tribune Business he had asked Marlon Johnson, the acting financial secretary, to examine what changing a little-noticed 2016 amendment to the Financial Administration and Audit Act “will entail”.

“I question that law myself,” he said. “I don’t see how they [the Christie

* ASKS OFFICIAL WHAT REFORM ‘WILL ENTAIL’ * QUERIES HOW FORMER GOV’T ‘GOT AWAY’ WITH IT * FINANCIAL SECRETARY: LAW UNDER REVIEW administration] can do that, quite frankly, and how they got away with that. We are looking at that. I have instructed the Financial Secretary to look at amending the law and what that might entail.”

SEE PAGE 3

Money transfer business faces regulatory ‘review’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Deputy Prime Minister yesterday said he has requested a regulatory “review” of the money transfer industry to ensure there are no loopholes that can be exploited by financial criminals.

K P Turnquest, describing the sector as “the next big thing”, told Tribune Business that the Government wanted “to get a handle” on a sector where operators and locations are multiplying rapidly following Western Union’s return to the market.

Acknowledging that digital banking was “the wave of the future”, and that money transmission providers can help fill the

* DPM wants to ‘get a handle’ on rapid growth * Sector ‘next big thing’; expanding like web shops * Disquiet over GraceKennedy; PJ’s Perry lobby

KP TURNQUEST void created by commercial bank exits from the Family Islands, Mr Turnquest said this had to be balanced with ensuring the necessary anti-money laundering and terror financing controls were in place.

Disclosing that concerns had been expressed

over the business’s rapid growth and accompanying regulatory regime, Mr Turnquest said: “I’ve asked for a review of that whole situation just to see how it happened.

“There have been several complaints with respect to the handling and the whole transfer business; how it works.” The Deputy Prime Minister declined to go into detail over the concerns and “complaints” received by the Government, other than to reaffirm: “There are some issues we are looking at.”

His comments came as Tribune Business sources suggested there was increasing industry disquiet over how the Jamaican conglomerate, GraceKennedy, had obtained a licence to operate in the Bahamas as a Western Union agent.

Several contacts, speaking on condition of anonymity, questioned how GraceKennedy had been able to enter a market that was supposedly reserved for Bahamian-owned businesses only.

Tribune Business could find nothing in the National

Investment Policy stipulating that the money transfer business is exclusively reserved for local ownership. And, since it is ‘Policy’, this is liable to be waived by the government of the day in certain circumstances.

This, it is understood, is what happened with GraceKennedy’s permission to operate in the Bahamas. Tribune Business was told that approval was granted in May 2016 by the former Christie administration following heavy lobbying from the former

Jamaican prime minister, P J Patterson, on GraceKennedy’s behalf.

Mr Patterson was thought to be close to former prime minister, Perry Christie, and several members of his Cabinet, and made numerous trips to the Bahamas under the former administration while representing companies such as Digicel.

Mr Turnquest yesterday said he understood that GraceKennedy’s permit was obtained under the former administration, and

SEE PAGE 8

‘GREASE’ ECONOMY BY MP ‘COLD SHOULDERED’ CEASING NON-RESIDENT BY SCHOONER BAY * ALBURY IGNORED BY B$ LOAN RESTRICTIONS FOREIGN DEVELOPER

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Central Bank has been urged to “revisit” restrictions on Bahamian dollar lending to non-residents as a way to “grease” the economy and release $1.8 billion in excess banking liquidity.

James Smith, a former finance minister and Central Bank governor, told Tribune Business this was one method through which the monetary policy regulator could address a major impediment to job creation and economic growth.

Backing the Central Bank’s decision to “investigate policies to promote a soft landing in terms of

* WOULD EASE $1.8BN LIQUIDITY PRESSURE * AND BREAK ‘VICIOUS CIRCLE’ HOLDING ECONOMY BACK * FUNDING SHORTAGE OFTEN OVERLOOKED

easing system liquidity”, Mr Smith said that - if successful - it could break “a vicious circle” that has held the Bahamian economy in a no growth/high unemployment grip for nearly a decade.

He explained that the banking system’s $1.8 billion surplus liquidity mountain often escaped

SEE PAGE 5

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

SOUTH Abaco’s MP has revealed he was ‘cold shouldered’ by a foreign developer when he attempted to resolve the dispute it sparked by evicting a Bahamian farmer from Crown Land.

James Albury, who is also parliamentary secretary in the Prime Minister’s Office, told Tribune Business he was repeatedly ignored by Schooner Bay’s principals when he reached out to them over the removal of Glen and Tracy Kelly.

The couple, operating as Driftwood Food Company, were evicted in seeming violation of Schooner Bay’s licence for the 100-acre Crown Land tract known as ‘The Commons’, and Mr Albury acknowledged

* DEVELOPMENT’S SITUATION ‘OF BIG CONCERN’ * REALTOR THREATENS LAWSUIT OVER LOST SIGN

recent developments at the project were “a big concern” for him.

“I’m aware of the situation ongoing at Schooner Bay; it’s a big concern of mine,” the central and south Abaco MP said, before revealing his failed efforts to intervene and broker a resolution.

“During the initial spark that brought this to the forefront,” he added of the

SEE PAGE 4

PAGE 2, Monday, February 5, 2018

THE TRIBUNE

Western Union unveils service, expansion plan WESTERN Union has pledged to expand beyond its existing 20-plus Bahamas locations, as it unveiled a new service designed to increase money transfer efficiency.

The cross-border payments solutions provider, in an effort to drive traffic to its growing Bahamas network, has introduced a ‘limited time’ offer that will allow consumers to use its ‘Direct-ToBank’ service for just $10.

Launched on February 3, Bahamas-based residents will be able to transfer cash to bank accounts in more than 50 countries, including the Philippines, the US, Nigeria, China and Mexico. Western Union is promising that the funds will reach their destination bank accounts within minutes - or a maximum of two days - depending on the country.

Andre Largie, Western Union’s global money transfer lead for the Caribbean Region, said: “Now we have the capability to accept cash from a customer here in the Bahamas and deliver that cash to an account across the world.

“That service we refer to is ‘direct- to-bank’ or ‘send to an account’, and that service is enabled at all of our Western Union locations here in the Bahamas.”

He added: “Now this is very important because not every market has this opportunity. But at Western Union the Caribbean, and most certainly the Bahamas, is very, very important to us.

Enabling our services here and delivering our services in communities that are underserved by financial institutions is something that we take great pride in.”

The announcement was applauded by members of the Bahamas’ extensive Filipino and Haitian communities, who are among the biggest users of money transmission services.

Florita Viterbo, vice-president of the Filipino Association of the Bahamas, said: “This service, their new service of sending money direct to the banks - Oh my God, you cannot imagine—because in the Philippines, there are so many crimes, especially when it comes to money matters.

“When they send directly to the bank, they don’t have any worries of going to the Western Union shop to pick up their money. They will have peace of mind that it’s in my account, and it can stay there and I don’t need to be worried about crime.”

Charlene Jean said she will definitely spread the message about the new service to the Haitian community.

“As a Bahamian of Haitian descent, we are happy and we are elated that Western Union is here to serve the Creole community,” she said. “From what I have gathered, the rates are cheaper and the customer service will be spectacular.”

Western Union earlier this year announced the opening of its locations in New Providence, Abaco, Andros and Grand Bahama in alliance with its three agents: Sun Cash, Money Maxx and GraceKennedy Money Services.

Western Union’s future plans include further expansion and the on-going improvement of its products and services.

Congratulations The Partners & Staff of KPMG congratulate Georgette Taylor on the successful completion of the Uniform Certified Public Accountant (CPA) examination.

Georgette Taylor graduated from Government High School in 2008. After completing high school, she attended The College of The Bahamas, now The University of The Bahamas (UB) where she graduated with a Bachelor of Business Administration in Accounting in 2015. During her academic tenure, she was the recipient of the Mary Lu Tulu, Lyford Cay Foundation Award and the Ministry of Education’s National Bursary Award. Prior to graduating, she was a member of the Business Club, The Rotaract Club and The BICA YACHT Club.

Georgette joined KPMG in September 2015 where she works as a Senior in KPMG’s audit practice.

Georgette would like to thank God for the successful completion of the CPA exams. She would also like to express a heartfelt thank you to her family and friends especially her mother and brothers for their countless sacrifices, unwavering support and continuous encouragement.

Georgette’s motto is taken from Abraham Lincoln: “You can have anything you want if you want it badly enough. You can be anything you want to be, do anything you set out to accomplish if you hold to that desire with the singleness of purpose.”

© 2018 KPMG, a Bahamas partnership, and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

PICTURED (L to R): Ignacio Videla, global money transfer head, Latin America and Caribbean region; Noel Greenland, GraceKennedy Money Services, senior vice-president, operations and marketing; Carlos Mackey, chief executive, MoneyMaxx; Andre Largie, global money transfer lead, Caribbean region; Desmond Pyfrom, SunCash chief technology officer; Barry Malcolm, chief executive, SunCash.

“You can expect us to work even harder to serve the people of the Bahamas,” said Mr Largie.

“You can expect us to work harder to expand our locations.

“We are currently in over 20 locations in the Bahamas and some of the Family Islands, and

we are working hard to expand that even further. You can expect us to continue to innovate and to deliver even more greater value to our customers here in the Bahamas, and you can expect us to continue to deliver money in minutes, safely and securely.”

THE TRIBUNE

Monday, February 5, 2018, PAGE 3

Bahamian energy start-up teams with solar provider

By NATARIO MCKENZIE Business Reporter nmckenzie@tribunemedia.net A BAHAMIAN green energy start-up has entered into a partnership with a Florida-based solar provider.

Global Energy Solutions last week signed a Memorandum of Understanding (MOU) for a clean energy technical partnership with Orlando-based Sybac Solar, a utility scale PV (photovoltaic) projects developer. The Bahamian company was one of three first-round funding recipients from the Bahamas Striping Group’s investment arm, The Investment

DPM ON TAX LAW FROM PAGE 1

That amendment, passed at the time of the 2016-2017 Budget, enables the Government to withhold Tax Compliance Certificates (TCCs) from businesses if a shareholder who has a greater than 20 per cent equity interest is non-compliant with payment of their personal taxes.

The legislation, which has been reviewed by Tribune Business, also provides for a TCC refusal where a company “with similar shareholding” - meaning that the major shareholders have similar equity interests - is not compliant with it due tax payments.

That, in effect, is designed to capture subsidiaries/affiliates who have failed to pay due taxes.

The amendment’s ‘objects and reasons’ explicitly state that it is designed “to prevent a company from receiving a Tax Compliance Certificate unless

Group. Darius Johnson, an electronic engineer and head of Global Energy Solutions, said: “We as a nation have passed our critical point when it comes to energy. We are at a point where decisions must be made concerning the use of our energy and our longterm energy security. We must wean ourselves of our dependence on fossil fuels.”

He added: “Energy reform and migration to renewables is an expensive proposition, but to not act will be even more costly.”

Mr Johnson said the renewable energy sector presents an opportunity to create thousands of highpaying jobs for Bahamians.

He added that the partnership with Sybac will provide Global Energy Solutions with “scalable capacity, decades of industry experience, factory direct buying power and the ability to draw down on over $100 million to fund public-private initiatives to utility scale”.

Daniel Proculfly, the head of Sybac Solar’s US operations, said it had already secured funding for solar projects from existing investors who were “very supportive” of the potential for such developments in the Bahamas.

John Bush, political and energy officer at the US Embassy in Nassau, said the Global Energy Solutions

and Sybac arrangement was a “strategic and timely partnership”.

“This is a sign that the Bahamas is really ready to embrace green energy; for decades it’s fallen behind the region in renewable penetration despite its potential,” he said.

Mr Bush praised the Government for its attempt to improve the ‘ease of doing business’, and suggested that energy issues be placed under a single ministry. He suggested that renewable energy firms come together to form an alliance to speak with one voice and advocate for regulation and an enabling environment.

the Financial Secretary is satisfied, prior to issuing the Certificate, that any other company with similar shareholding, or the significant shareholders thereof, have fulfilled its obligations to pay monies due to the Government”.

The Christie administration’s intention was to clearly improve enforcement, and eliminate loopholes, by tightening the compliance web to such an extent that companies, fellow shareholders and subsidiaries/affiliates are effectively held responsible and penalised for the personal liabilities of one investor.

This, though, has come under increasing fire from the private sector as the Financial Administration and Audit Act change bites - especially when it affects companies whose major shareholders are disputing the unpaid tax liabilities the Government is associating with them.

The denial of TCCs potentially leaves companies unable to conduct business with the

Government, and obtain Business Licences and a host of other essential permits. It effectively holds a company hostage, rendering them unable to conduct normal commerce, with all the dire consequences this has for its financial health and employees’ jobs.

Many observers have questioned whether companies should be held liable for the personal tax liabilities of their owners, among them Mr Turnquest. He said yesterday: “The whole purpose of a company is to have Limited Liability status. I don’t think it’s fair for personal assets, unless cause can be made for wilful negligence or some other act, to be covered.”

Mr Johnson, though, emphasised that the Department of Inland Revenue was within the law to enforce the 2016 amendment until the law was changed. “It’s pretty clear and pretty explicit to create that extended level of compliance,” he said.

Mr Johnson added that the Financial Administration and Audit Act would

be among the laws subject to the Government’s internal review of all tax laws, regulations, systems and procedures.

“This particular law, as well as all other laws and regulations, will be reviewed in the coming months,” he told Tribune Business, “and then we will make recommendations to Cabinet as to whether this is consistent with the kind of business environment the Government envisions going forward.”

Rick Lowe, an executive with the Nassau

MINISTER PLEDGES NEW NASSAU POWER PLANT

By NATARIO MCKENZIE Business Reporter nmckenzie@tribunemedia.net THE Government is planning to soon launch a bidding process to construct a “state of the art” power plant for New Providence, which will also include a solar energy component.

Desmond Bannister, minister of works, speaking at a ceremony to mark the signing of a Memorandum of Understanding (MOU) for a clean energy partnership between Bahamas-based Global Energy Solutions and Florida’s Sybac Solar, said that despite the challenges the Bahamas has made inroads in the energy sector.

“Here in the Bahamas we face critical challenges

in the energy sector. As an archipelago we must provide energy to numerous islands, all diverse and each in different stages of development. There is no magical formula; no formula that provides an answer to every need,” said Mr Bannister.

“We have the perfect environment to foster small-scale renewable generation in the Family Islands...

“We anticipate that shortly we will build a new state-of-the-art generating plant on this island with best-in-class efficiencies and a single cycle power generation.

“There will be an RFQ with respect to that facility which will require the utilisation of solar energy.”

Institute think-tank, suggested the Financial Administration and Audit Act’s 2016 amendment should be challenged in the courts by the private sector.

“It’s great that they’re reviewing these things, but review doesn’t mean change,” he told Tribune Business. “They’re [the Government] certainly showing good faith in a number of areas so far, but this is very egregious, this change in the law.

“Why have a Companies Act? You have a company to limit your liability, and

they have nothing to do with people personally.

It’s the whole reason you have a Limited Liability Company.”

Suggesting that the 2016 amendment would not pass the “reasonable and fairness” test, Mr Lowe also pointed to the negative impact on companies held hostage by its requirements.

“You have the potential to disenfranchise the workers of the company, it might have to close its doors because its directors may or may not have a tax liability,” Mr Lowe said.

PAGE 4, Monday, February 5, 2018

THE TRIBUNE

MP ‘cold shouldered’

by Schooner Bay FROM PAGE 1 Kellys’ farm, “I made several attempts to reach out to the management of Schooner Bay, identifying myself as the MP for the area, as well as the parliamentary secretary for the

Office of the Prime Minister there.

“Up to this morning, despite several attempts I never received a communication back. My attempts to speak directly were never returned, which is unfortunate.”

Tribune Business previously revealed how the Kellys’ eviction raised questions as to whether Schooner Bay and its principals, Dr David Huber and Tina Gascoigne, were breaching the terms of a Crown Land licence that

stipulates The Commons is to be used for the “benefit” of Bahamian entrepreneurs and artisans.

And this newspaper also revealed complaints about how the 220-acre South Abaco project has been violating Bahamian real estate laws, particularly the Real Estate (Brokers and Salesman) Act, through the foreign developer running its own property sales, management and vacation rental business.

Foreign developers, under the Real Estate (Broker and Salesman) Act, can only sell and manage the real estate that they own.

Once such property is sold to third-party buyers, the Act prevents them from engaging in re-sales of that real estate, and operating their own property management/vacation rental businesses - something Schooner Bay has been doing.

Mr Albury declined to comment in detail on the situation at Schooner Bay on the grounds that, as a result of Tribune Business’s investigation, the Crown Licence and real estate law breaches were now being dealt with by the Attorney General’s Office.

He described the situation at a project once held up as a model for sustainable Family Island development as “unique” and “a special case”, implying it was not representative of other large-scale foreign direct investment (FDI) led initiatives on Abaco.

“That’s in the hands of the Attorney General’s Office,” Mr Albury said of the Schooner Bay situation.

“That’s for their action at this point. I can’t speak for them, and don’t want to say anything out of turn.”

Pointing to the economic and jobs impact of developments such as Baker’s Bay and Winding Bay, the MP added: “The situation at Schooner Bay is something unique. I have full confidence in believing it’s not typical of all outside projects going on in Abaco.

That’s a very special case that’s being addressed.”

Mr Albury said the responsibility for making Schooner Bay a sustainable success lay with its principals, adding that Abaco’s economy - especially in the island’s southern and central areas - was not totally dependent on it.

“It’s just one project among several large projects in Abaco, but I’m sure it’s something people would like to see develop positively in every aspect,” the MP added of Schooner Bay. The development’s legal woes may be increasing, though. Damianos Sotheby’s International Realty, the Bahamian real estate firm, has filed a police complaint and is threatening legal action over the destruction of a sign advertising the properties it is marketing for sale within Schooner Bay. The realtor is alleging that representatives for Schooner Bay Ventures, the developer, cut down and

demolished its sign even though this was located on government-owned land by the highway - outside the development’s boundaries.

Gail Lockhart-Charles, Damianos Sotheby’s attorney, warned in a January 29, 2018, letter: “We are instructed that Schooner Bay Ventures’ representative unlawfully cut down and removed a sign belonging to Sotheby’s International Realty, which had been erected on the highway in the vicinity of Schooner Bay, Abaco.

“We are instructed to advise that our client has filed a police report with regard to Schooner Bay Ventures’ unlawful interference with its property and we are instructed to demand, as we now do, that Schooner Bay Ventures immediately reinstate our client’s said property.”

The letter warned that legal action would begin if the sign, which was advertising 12-13 Schooner Bay properties for sale, was not reinstated within three days.

Tribune Business has seen photographs purporting to show the realtor’s now-demolished sign lying in a trash heap at Schooner Bay’s property.

Bill Albury, an Abacobased realtor for Damianos Sotheby’s International Realty, yesterday confirmed a complaint had been filed and that he was now waiting to obtain a copy of the report detailing the outcome of the police investigation.

NOTICE

Notice is hereby given that BGRS Certificate No. 71061 in the amount of $30,000.00 is lost and was due to mature 2024. If this Certificate is found, please write to P.O. Box SS-5917, Nassau, Bahamas.

MANAGING DIRECTOR

Nassau Airport Development Company Ltd. CAREER OPPORTUNITY: Manager, Commercial Business Development The Nassau Airport Development Company Ltd. (NAD) is seeking candidates for the position of Manager, Commercial Business Development at Lynden Pindling International Airport Position Summary: Develops commercial business opportunities for Lynden Pindling International Airport that will maximize revenue and profit. Liaise with key constituent groups to ensure that the Airport’s interests are coordinated with relevant stakeholders. Identify potential business targets, build the business case and ensure alignment with strategic and land use plans. Optimize the Airport’s commercial business through effective planning, development and contract negotiation of all current and new commercial revenue opportunities.

Responsible for the budgetary performance of the commercial management function through new business and business enhancement strategies. Monitors trends and activities in the marketplace to forecast and leverage business opportunities.

Experience and Background: 1. University degree in business or other relevant field 2. 5-10 years professional experience in a business development or related role with a track record of successful projects Abilities and Qualities: 1. Ability to strategically research, identify and leverage commercial opportunities for NAD and LPIA 2. Strong Communication and Interpersonal Skills 3. Strong Collaboration and Negotiation Skills 4. Excellent Project Management Skills 5. Strong Writing and Presentation Development Ability Visit: www.nassaulpia.com/careers for more details If you are qualified and interested please submit your resume by February 9, 2018 to: Director of Human Resources Nassau Airport Development Company Ltd. P.O. Box AP 59229 Nassau, N.P., The Bahamas Email: people@nas.bs

Responsibilities of the position include, but are not limited to the following: • Manage the day-to-day operations of a long standing company located in central New Providence.

• Focus and communicate the company’s vision and strategic direction.

• Monitor financial management and regulatory reporting requirements.

• Formulate policies and planning recommendations.

• Leading, guiding, directing, and evaluating the work of other executive leaders • Maintaining awareness of internal opportunities for expansion, customers, new developments and standards.

• Analyse problematic situations and occurrences and provide solutions to

ensure company growth and development.

• Develop and design quality business strategies that will meet short and

long-term objectives.

• Ensuring proper execution of tasks by playing an active role in driving performance.

• Be able to make good sense decisions that affect the company on a

day-to-day basis.

The successful candidate must also possess the following qualifications or equivalent:• A minimum of 10 (ten) year’s work experience in a Senior Management position • Working knowledge of Microsoft Suite. (Excel, Word and PowerPoint).

• Excellent command of written and oral communication skills.

Qualified candidates are invited to apply via e-mail to: The Human Resources Manager E-mail: jobs2018bah@gmail.com Deadline Date: 15th February, 2018

THE TRIBUNE

Monday, February 5, 2018, PAGE 5

Ex-Bar chief in call for single arbitration regime

By NATARIO MCKENZIE Business Reporter nmckenzie@tribunemedia.net A FORMER Bar Association president has stressed that the Bahamas must implement a single regime for both domestic and international arbitration.

Dr Peter Maynard, senior partner at Peter Maynard & Company, told Tribune Business that while the Government’s focus on promoting the Bahamas as an arbitration centre and adopting the United Nations (UN) model law on arbitration - was laudable,

ECONOMY FROM PAGE 1

the attention of policymakers, yet it represented potential oxygen for Bahamian businesses to invest in job-creating expansion and growth.

“That’s a real, I think, problem for economic growth that is seemingly not getting the attention it deserves,” Mr Smith told Tribune Business, adding that attention typically focused on other fiscal and monetary indicators, government and private sector spending and unemployment.

“Underneath all of that is the Government and private sector have to have continued access to funding, and the banking sector - which holds all the savings in the country - has been bitten by the recession and is reluctant to lend at the pace of a decade ago,” the 2002-2007 finance minister said.

“They’re only targeting ‘A’ class customers who are over-qualified, meaning they are sluggish and reluctant to lend.... Now you have the productive sector; small, medium and large businesses, who are probably not getting the overdraft facilities to expand and create jobs.”

Excess liquidity in the Bahamian commercial banking system represents assets that are available for lending purposes, but for which the banks can find no borrowers who meet their qualifying criteria.

The banks’ reduced risk appetite following

it was important it be done right.

Dr Maynard stressed that the Bahamas should not have two separate regimes for domestic and international arbitration, arguing that this amounts to a waste of resources and would create confusion.

“We have an event talking about a joint regime in which you concentrate all arbitration matters. It’s a question of viability and waste of resources to be spread out between two centres and two regimes.

It’s also confusing and it’s dysfunctional,” Dr Maynard argued.

He added that what is currently being proposed in the Bahamas involves having an international commercial arbitration Act under the jurisdiction of the Minister of Investments, and domestic arbitration under the jurisdiction of the Attorney General.

“As an economist and as businessman I look at how to make this thing work.

I appreciate the minister giving it urgent and needed attention.

“They need to take into account things not being discussed. The idea which makes the most sense in our context is to just have a

single arbitration regime,” said Dr Maynard.

Brent Symonette, minister of financial services, trade and industry, and immigration, speaking at the opening of Royal Fidelity’s Economic Business Outlook conference last week, said: “We hope to adopt the UNCITRAL model of arbitration.

“We can bring arbitration here as an alternative for dispute resolution.We will look at the whole question of arbitration while still maintaining a dual system for local arbitration as opposed to international arbitration.”

the 2008-2009 recession, and aversion to lending to anyone other than those able to provide 100 per cent collateral or meet their strict approval conditions, has resulted in the Bahamian economy’s productive sector - the mortgage market and business community - being starved of debt capital financing.

And the growing excess liquidity was exacerbated by the Government’s recent $750 million foreign currency bond issue, a portion of which was used to pay-off Bahamian dollar-denominated debt.

This increased the banking industry’s surplus asset pile by nearly $300 million.

“I was wondering why we were staying in the recession so long,” Mr Smith said. “Even though tourism is not doing well, it’s not doing badly. We’ve got the same level of visitors and expenditure.

“I suspect it’s the failure to stimulate the economy by the failure to provide the grease that gets things going; money flowing from bank to productive sector. The Central Bank is right to focus on it, but what

type of policies will come into effect?”

The former governor suggested the Central Bank could seek to ease the liquidity pressure by permitting non-resident foreigners who owned Bahamian real estate to borrow in local currency - something that has been restricted or denied in the past.

“They might want to revisit that,” Mr Smith told Tribune Business, explaining that this could also boost the external reserves and foreign currency earnings if non-resident borrowers serviced their Bahamian dollar loans from abroad.

“You’re killing two birds with one step; reducing liquidity and bringing in foreign currency,” he explained. “You want to increase aggregate demand, which has been reduced by high unemployment rates.”

With commercial banks having identified the Bahamas as posing “a high level of risk”, Mr Smith added: “If we’re going to do anything, we have to mitigate that risk to make them feel freer to issue loans.

“They need to sit down with the banks to

compensate them fairly around the risk and, in an economy like ours, see how we deal with it.” He also pointed to the pressure placed on bank profit levels, compared to what they earned pre-recession, as a result of the non-performing loan situation.

With the Minnis administration having announced a revised housing programme, the former finance minister suggested it may have to mitigate risk through providing guarantees if the commercial banks remain reluctant to lend.

“It’s a vicious circle where it’s impacting on itself,” Mr Smith told Tribune Business of the excess liquidity problems.

“There are very few loans, high liquidity, a shortage of productivity and therefore a shortage of labour needed for that, resulting in high unemployment and an economy that appears to be at a standstill and shrinking. You’ve got to kind of stimulate it where you remove some of the barriers.”

FOR SALE

BY OWNER

12 Acres Queen’s Highway Palmetto Point, Eleuthera Contact 242-470-9024

PAGE 6, Monday, February 5, 2018

THE TRIBUNE

‘No sacred cows’: All taxes up for review FROM PAGE 1 sacred cows. Nothing is out of bounds. We have a clear mandate to examine what we do, and come back with the kind of legislative

change that allows us to operate efficiently, effectively and still preserve the legitimacy of tax collection.

In that regard, everything is up for discussion.”

Confirming the wideranging review of all

systems, procedures and processes, K P Turnquest, deputy prime minister and minister of finance, said the comprehensive effort would examine “every nook and cranny” of tax law and policy.

“We want to ensure compliance,” he told Tribune Business, “and we have certain tools available to us through the existing laws to enable us to do that.

“At the same time, we don’t want to do anything that hampers or frustrates business.

“We want to look at everything we’re doing to ensure it makes sense, and that the benefits outweigh the costs.”

Mr Johnson and Mr Turnquest’s comments are likely to be warmly greeted as an ‘expression of intent’ by the private sector, which has long grown frustrated at the increased bureaucracy and ‘red tape’ that accompanies the payment and administration of taxes.

Besides the tight timeline and workload associated with Business

Licence compliance, which the Minnis administration has promised to correct, the difficulties and runaround associated with obtaining Tax Compliance Certificates (TCCs) continues to be an issue for many companies.

The Government is moving to streamline the Business Licence process for all new businesses via the use of technology and online portals, some of which will also aid existing companies. And the National Insurance Board

NOTICE

NOTICE is hereby given that TONY ANTONIO CHERIBIN of Marshall Road, New Providence, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 29th day of January, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, Bahamas.

OFFICE ADMINISTRATOR Needed for small company Responsibilities include:

-Quick Books data entry/Accounts Receivable -Inventory checking/Stock taking -Assisting w/cashing when necessary -Creating invoices in Quick Books -Ordering Materials -Filing -Post cash book & Ledger balance/Journal -Entries & Paying bills -Proficiency in Quick Books is a MUST Please send resumes to: newjobapplicant2018@gmail.com

NOTICE

NOTICE is hereby given that PRINCELLIAE GUSTAVE of P.O. Box General Delivery, Savannah Sound, Eleuthera, 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 twentyeight days from the 29th day of January, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, Bahamas.

MARKET REPORT THURSDAY, 1 FEBRUARY 2018

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

BISX ALL SHARE INDEX: CLOSE 2,039.78 | CHG -0.10 | %CHG 0.00 | YTD -23.79 | YTD% -1.15 BISX LISTED & TRADED SECURITIES 52WK HI 4.38 19.17 9.09 3.76 1.64 0.18 4.60 8.70 6.30 5.30 11.93 2.59 1.56 9.70 6.01 10.55 10.95 4.50 12.51 11.00

52WK LOW 3.50 17.43 8.19 3.32 0.90 0.12 3.50 8.40 5.83 3.15 9.00 2.18 1.40 8.76 5.82 8.78 5.67 3.35 12.01 10.00

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 Premier Real Estate

1050.00 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 Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Fidelity Bank Class A Focol Class B

PREFERENCE SHARES

1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 105.00 100.00 100.00 10.00 1.00

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

E J K L M N

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

52WK LOW 100.00 100.00

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

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

SYMBOL FBB18 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) 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

MUTUAL FUNDS

ADVERTISE TODAY IN THE TRIBUNE, THE NO.1 NEWSPAPER IN CIRCULATION...

JUST CALL 502-2394

(NIB) last week announced that businesses can apply for ‘Letters of Good Standing’ via that same Department of Inland Revenue portal which launches today.

An improvement in the ‘ease of paying taxes’ could also aid the Government’s compliance and enforcement efforts, as it seeks to strike the correct - and, so far, elusive - balance between every cent due to it and allowing commerce to flow unimpeded.

52WK HI 2.12 4.14 1.98 178.69 153.40 1.53 1.70 1.62 1.10 6.99 8.54 6.15 10.52 11.46 10.46

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.47 1.62 1.56 1.04 6.41 7.62 5.66 8.65 10.54 9.57

LAST CLOSE 3.90 17.43 9.09 3.34 1.00 0.18 3.68 8.70 6.10 4.70 9.01 2.68 1.50 9.04 6.00 10.45 6.24 4.47 12.51 10.00

CLOSE 3.90 17.43 9.09 3.34 1.00 0.18 3.68 8.70 6.10 4.70 9.01 2.64 1.50 8.96 6.00 10.45 6.24 4.47 12.51 10.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.04 0.00 -0.08 0.00 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

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 100.00 100.00

CLOSE 100.00 100.00

CHANGE 0.00 0.00

110.30 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

-0.27 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

110.57 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

VOLUME

NAV 2.12 4.14 1.98 178.69 153.40 1.53 1.70 1.62 1.10 7.16 8.40 6.29 11.28 11.60 10.21

EPS$ 0.475 0.932 -0.508 0.540 -1.220 0.000 -1.462 0.638 0.583 0.171 0.631 0.102 0.330 2.670 1.129 0.729 0.484 0.298 0.543 0.000

DIV$ 0.080 1.130 0.000 0.230 0.000 0.000 0.000 0.300 0.220 0.120 0.690 0.060 0.050 0.565 0.290 0.500 0.150 0.120 0.580 0.000

P/E 8.2 18.7 N/M 6.2 N/M N/M -2.5 13.6 10.5 27.5 14.3 25.9 4.5 3.4 5.3 14.3 12.9 15.0 23.0 0.0

YIELD 2.05% 6.48% 0.00% 6.89% 0.00% 0.00% 0.00% 3.45% 3.61% 2.55% 7.66% 2.27% 3.33% 6.31% 4.83% 4.78% 2.40% 2.68% 4.64% 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 6.00% Prime + 1.75%

MATURITY 31-May-2018 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% 4.00% 4.39% 5.57% 5.69% 2.14% 2.44% 4.66% 3.89% 5.58% 6.65% 4.34% 4.34% 1.83% 1.83% 3.30% 3.30% 4.03% 4.03% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69%

NAV Date 31-Dec-2017 31-Dec-2017 31-Dec-2017 31-Dec-2017 31-Dec-2017 31-Dec-2017 31-Dec-2017 31-Dec-2017 31-Dec-2017 30-Nov-2017 30-Nov-2017 30-Nov-2017 30-Nov-2017 30-Nov-2017 30-Nov-2017

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

YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225

PAGE 8, Monday, February 5, 2018

THE TRIBUNE

Money transfer business faces regulatory ‘review’ FROM PAGE 1 while possessing no direct knowledge had “heard” of the former Jamaican prime minister’s involvement.He added that he made inquiries of persons in the money transfer business after Tribune Business revealed GraceKennedy’s coming, and was told that the Jamaican conglomerate’s coming had “kind of blindsided” the sector.

GraceKennedy’s arrival through its first location at Bahamian company, Tripoint Communications, appears to have sparked an expansion drive among rival Western Union agents that is reminiscent of the post-recession web shop explosion.

The other two Western Union agents, especially Barry Malcolm’s Sun Cash, as well as Money Maxx, have embarked on a rapid location roll-out in what many observers believe is a strategy designed to keep out/restrict GraceKennedy’s ability to do likewise.

Tribune Business found this out when, while visiting its local plumbing store last week, the shop assistant spent more time promoting its new in-store Western Union outlet.

And there are other potential entrants seeking to enter an increasingly crowded space which, apart from the three Western Union agents, also includes the likes of Omni Financial Group and Cash n’ Go. Tribune Business’s attention was drawn to the website and Facebook page of a company called JVR Xchange, which bills itself as a soon-to-launch money transfer and bill payment service that will have locations in all 13 of Super Value’s food stores plus “three flagship stores” in New Providence. The launch date is February 2018, and coverage is also promised in the Family Islands.

It is this rapid, evergrowing proliferation of money transfer businesses and locations that has likely attracted the Government’s attention. Harvey Morris, chief executive of Omni, one of the more established providers, told Tribune

Congratulations The Partners & Staff of KPMG congratulate Akini Morris on the successful completion of the Uniform Certified Public Accountant (CPA) examination.

Akini Morris graduated from The College of The Bahamas, now the University of The Bahamas (UB) in 2015 with a Bachelor of Business Administration in Accounting. He graduated with distinction, and as the top accounting and business student, earning the School of Business, Ernst & Young, and Bahamas Institute of Chartered Accountants awards. Additionally, he was a President’s Award nominee, and the Bahamas Financial Services Board Student of the Year finalist.

He attended Nassau Christian Academy from 2006 to 2011, forgoing his senior year of high school to initiate his tertiary education pursuit at UB. During his tenure at UB, Akini served as a mathematics peer tutor, treasurer of the college’s business club, and the Director of Education within the Institute of Internal Auditors.

In his free time, Akini enjoys reading, writing, listening to music, watching athletics, and spending quality hours with family and

friends. Akini is guided by the words of the legendary Martin Luther King Jr., who believed that “we must accept finite disappointment, but never lose infinite hope.” It is one of Akini’s unyielding hopes to be able to make a tangible impact during his time on this planet, and contribute to the creation of a more enlightened, egalitarian world than the one into which he was born.

Akini extends thanks, first and foremost, to his mother, Penny Thomas, for her unyielding, immeasurable support during his CPA journey. For this, and so much more, he is eternally indebted to her.

He also thanks his sister, Thandi Morris, for her moral support. Further gratitude is extended to his friends, work peers, and role models for their encouragement, advice, and inspiring feats of greatness that lifted him throughout his journey. Finally, Akini thanks the Partners and staff of KPMG for the key role they play in enriching his professional development

© 2018 KPMG, a Bahamian partnership, and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

All rights reserved.

Business last week that the “rapid oversaturation” of the market could provide cover for increased criminal activity.

Confirming that the Government will be working with the Central Bank, Mr Turnquest said: “We’ve had several requests to facilitate this money transfer system throughout the Bahamas.

“We’re looking at the business from a regulatory perspective. We want to make sure the system is secure and all the regulatory provisions are in place - all the Know Your Customer (KYC) provisions are in place - to protect the financial system.”

The Deputy Prime Minister added of the money transfer business: “It’s becoming the next big thing, and so we have to get a handle on it to protect the financial services system and don’t allow abuses through lack of oversight.”

He conceded that this had to be balanced with permitting the private sector to thrive, and said: “These are entrepreneurs trying to fill a need, a void that exists as a result of these [bank] closures and we have to be sensitive to the fact these communities need some kind of financial services. “Digital banking is the wave of the future, but we have to make sure the proper controls are in place.”

Mr Morris and members of Omni’s management team had suggested that fraudsters and other financial wrongdoers could exploit the lack of connectivity between different providers to ‘bounce’ from one money transmission business to another.

They expressed concern that this could enable a money launderer, for example, to conceal their activities by conducting small transfers with multiple transfer outlets - a process that is known as ‘layering’.

Omni’s executive team said the entire money transfer industry needed to work together and “play close attention” to such problems, expressing fears that they could result in the Bahamas being ‘blacklisted’ yet again if unchecked.