business@tribunemedia.net
TUESDAY, FEBRUARY 7, 2017
$4.27
$4.28
Bran: ‘Crime is killing economy’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Democratic National Alliance’s (DNA) leader yesterday warned that “crime is killing the economy” in multiple ways, arguing that the annual $434 million cost to the Bahamas was actually an under-estimate. Branville McCartney told Tribune Business that the Inter-American Development Bank (IDB) report, which suggested that crime cost the Bahamas almost 5 per cent of its annual economic output, did not appear to include corruption
Says IDB’s $434m cost is underestimate
Bahamians ‘live in paradise, but paralysed by fear’
DNA leader Branville McCartney at the We March march.
RBC economist ‘too ‘No political party is superficial’ over VAT committed’ to cutting Govt size NEIL HARTNELL Tribune Business Editor squander conclusion By Sir Franklyn: Fear of nhartnell@tribunemedia.net By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A former finance minister yesterday criticised Royal Bank of Canada’s (RBC) top regional economist for reaching a “too superficial” and “selfserving” conclusion that the Bahamas is squandering its Value-Added Tax (VAT) revenue windfall. James Smith told Tribune Business that Marla Dukharan’s statements at last week’s RoyalFidelity Bahamas Economic Outlook conference were not the product of “rigorous analysis” of this nation’s fiscal predicament. He argued that her conclusions were not grounded in evidence, and failed to place the Government’s financial woes within the proper “contextual framework”. “I thought it was, in some instances, a bit too superficial for a chief economist,” Mr Smith, a former minister of state for finance and Central Bank governor, told Tribune Business. “The conclusions were not based on a rigorous analysis, and set in a contextual framework. She’s put out a broad statement that we had a good implementation of VAT, but we’ve squandered it by overspending.” Mr Smith, now a Ministry of Finance consultant, implied that he expected
votes loss too great
Ex-minister: ‘More rigorous analysis’ was required Yet not disagreeing with broad finding on Bahamas Govt enraged by damning fiscal assessment
James Smith someone of Ms Dukharan’s stature would have produced more evidence, analysis and research to back up her comments at the conference. He added, in particular, the RBC’s top Caribbean economist had failed to account for the impact of Hurricanes Matthew and Joaquin on the Government’s finances, which See pg b4
Shrinking the size of government will be extremely hard to achieve in the Bahamas, a well-known businessman believes, because “no political party is committed to it as a philosophy”. Sir Franklyn Wilson told Tribune Business that none of the major parties suggested in their names that they were wedded to a ‘Conservative’ political philosophy, which traditionally means a commitment to socalled ‘market forces’ and smaller government. And the Arawak Homes chairman suggested that a fear of losing general election votes had further deterred governments from reducing the size of the public sector, given the potential job losses that could result. See pg b5
‘Easier for politicians’ to talk of new social initiatives Bahamas needs ‘Conservative party’ to shrink
Sir Franklyn Wilson
$4.29
Aliv works with majority owner so ‘no cannibalising’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Doesn’t include corruption, white collar crime
and so-called ‘white collar’ crime. Had it done so, he suggested that the Bahamas’ See pg b5
$4.28
Aliv and its majority shareholder were yesterday said to be co-ordinating their respective capital raisings to ensure they will “not cannibalise” each other, with both looking to close in the 2017 first quarter. Gowon Bowe, one of the Government’s advisers on the HoldingCo share placement, told Tribune Business that Aliv had greater “flexibility” to target a wider range of potential investors for its $30 million debt offering. HoldingCo, the entity that holds the majority 51.75 per cent equity stake in Aliv’s operating company, NewCo, is instead seeking to sell 100 per cent of its equity to Bahamian institutional investors via a private
HoldingCo also eyes Q1 for its $70m placement Investors pitched at same time for around $100m total ‘Some similar sources’, but ‘more flexibility’ for Aliv share placement. While acknowledging that HoldingCo may be targeting some of the same potential investors as Aliv, Mr Bowe said the former was restricted to focusing on the likes of pension funds, mutual funds and credit unions. This is due to the See pg b4
Chamber chief calls for end to prison ‘blackhole’ By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net The Chamber of Commerce’s chief executive yesterday called for all Fox Hill Prison inmates to be placed in a mandatory work programme that would finance their incarceration, so that the funds to finance their jailing do not fall into a “blackhole”. Edison Sumner, who is also a member of the Parole and Re-entry Steering Committee (PRSC), told Tribune Business that the issue of re-offending by released inmates must be addressed, with one potential deterrent being to ensure
Insure the things you
Urges ‘mandatory work’ scheme for all inmates Would see prisoners finance own imprisonment they are engaged in productive work. The Ministry of National Security projects that 95 per cent of incarcerated criminals are expected to re-enter society over the next 10 years, with statistics indicating that 45 per See pg b4
love .
Ocean clUb ReSidenceS & MaRina
PaRadiSe iSland
c3.4 | Private & Luxurious oceanfront condominium 3 Br | 3/1 Baths | 2,985 sf | tranquiL sea views Beach cLuB | worLd-cLass goLf | resort amenities
US$2,750,000.
WEB: 28833 Craig.Pinder@SIR.com 242.457.2282
SIRbahamas.com t 242 322 2305
Member of The Bahamas MLS
baf general & health insurance brokers & agents ltd. 242-328-8996
i
mybafsolutions.com
i
facebook.com/baffinancial