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FRIDAY, FEBRUARY 14, 2020

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DPM: Bahamas ‘far from’ uncontrolled debt spiral

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

HE government is “far from” an uncontrolled debt spiral, the deputy prime minister argued yesterday, while voicing concern that a PLP administration would not remain faithful to fiscal consolidation. K Peter Turnquest told Tribune Business that Bahamian taxpayers “ought to have a bit of concern” that a Progressive Liberal Party (PLP) government would fail to steer post-Dorian fiscal deficits on to a downward trajectory should it take office at the next election. Noting that the opposition party’s representatives have

• Taxpayers ‘should be concerned’ about PLP govt • ‘Irresponsible’ not to stick with fiscal consolidation • Reveals ‘continuous fight for tax compliance’

K PETER TURNQUEST opposed the Fiscal Responsibility Act and increased reporting under the current administration, Mr Turnquest said efforts to get back on track with the targets set

out in the legislation were “absolutely necessary” for The Bahamas’ future financial stability. “I think the Bahamian people ought to have a bit of concern that the opposition has made some public, on-the-record statements with respect to their position on the Fiscal Responsibility Act and reports we’ve been doing,” Mr Turnquest said. “Whether that gives an indication of their intent, I leave that to the Bahamian people to decide. They are on the record as having

questioned and opposed the Fiscal Responsibility legislation.” Mr Turnquest told the House of Assembly this week that Hurricane Dorian’s $3.4bn worth of devastation meant it might take almost a decade, until the 2028-2029 fiscal year, for the government’s finances to reach the 50 percent debt-toGDP target ratio set out in the Fiscal Responsibility Act. Suggesting that this timeline might be “conservative”,

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Beat OECD/EU to income tax By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A FORMER attorney general yesterday urged The Bahamas to implement a “progressive” income tax regime geared to its own needs before one is imposed by the OECD/ European Union (EU). Alfred Sears QC told Tribune Business that this nation should view its upcoming removal from the EU’s so-called “grey” list, as revealed by the Financial Times, as “a very temporary reprieve” that gives it time to design a tax system suited “for the 21st century economy”. Arguing that The Bahamas’ current reliance on regressive consumptionbased taxes, such as VAT

• Ex-AG: Reform ‘for 21st century’ for our sake • But don’t be forced into tax regime change • EU ‘grey list’ escape branded as ‘false joy’

ALFRED SEARS QC and import tariffs, was “inefficient” and generating insufficient revenue to meet the country’s development needs, Mr Sears argued it needed to

Bahamas resident defeats Canadian sanctions of $20m By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

As a result, Justice Winder said the regulator’s claim ran afoul of the “exclusionary rule”, which A BAHAMAS resident - in English law jurisdichas defeated a Canadian tions such as The Bahamas regulator’s bid to impose - means the courts have no a $20m-plus sanction on ability to enforce orders him after the Supreme mandating the payment of Court ruled it cannot be fines and penalties to agenenforced in this jurisdiction. Justice Ian Winder, in cies of foreign governments. Gail Lockhart-Charles, a January 29, 2020, verMr Pushka’s Bahamian dict, ruled that the Ontario Securities Commission attorney, in a statement could not enforce Canadian issued yesterday argued court-ordered penalties that Justice Winder’s ruling against Wayne Pushka “clarifies the legal position because the funds would in The Bahamas” as to what go to the regulator rather types of foreign judgments than compensating inves- will be enforced or rejected tors allegedly harmed by his SEE PAGE 4 actions.

‘Chicken and egg’ on project labour

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net SOUTH Abaco’s MP yesterday said concerns over whether there is sufficient housing for a $300m development’s 600-strong workforce represents “a chicken and egg” situation. James Albury, speaking to Tribune Business following the Heads of Agreement signing for the Tyrsoz Family Holdings resort and marina project, acknowledged the questions over whether Abaco and the

wider Bahamas can provide sufficient manpower for the construction. He said: “This is one of those situations that’s a chicken and egg situation. You have a lot of people who want to move home and who want to move to Abaco, but especially now can’t find gainful employment. “Of course housing is always going to be a concern, but as that project rolls forward hopefully it is going to create that demand

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implement corporate and personal income taxes that suit its requirements before an inappropriate system is forced upon the country from outside. Such pressures appear to gathering at the Parisbased headquarters of the Organisation for Economic Co-Operation and Development (OECD), the self-proclaimed overseer of global tax competition, which is increasingly suggesting that all nations introduce some kind of “minimum” corporate income-type tax as a means to crack down on

avoidance/evasion by multinational corporations. This, together with the OECD’s focus on developing a uniform global system for taxing the digital economy, and players such as Amazon, Facebook and Google, suggests it may only be a matter of time before The Bahamas faces calls to bring its taxation system into line. “It is what I consider a very temporary reprieve,” Mr Sears told Tribune Business, should the Financial Times report about The

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Minister hails $300m South Abaco project as ‘transformational’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE government “is very mindful of the environmental concerns” surrounding the just-approved $300m South Abaco project, a Cabinet minister said yesterday, hailing it as “transformational”. Dionisio D’Aguilar, pictured, minister of tourism and aviation, told Tribune Business that while the environment was “a critical component” of the tourism product its protection had to be balanced with the need to create economic growth and job opportunities. Speaking after the government signed a Heads of Agreement with Tyrsoz Family Holdings and its principal, Ronnie Ben-Zur, Mr D’Aguilar said south Abaco residents seemed largely “supportive” of the development and the opportunity it creates for them to earn a living in their home island. He described the project, which includes a small 5,000 square foot casino, as “checking a lot of boxes” and “fitting the model of product” the government wants for the Family Islands in terms of attracting highend visitors. Mr D’Aguilar also voiced optimism that Tyrsoz Family Holdings and Mr Ben-Zur have the necessary financing for their plans, adding that the developer had “put together an impressive group of partners” although declined to name them. “This is a huge $300m project for south Abaco which is really transformational,” Mr D’Aguilar told Tribune Business. “It checks a lot of the boxes in the sense that it fits into the

model of product we want to put in the Family Islands. “It’s very low density, very high-end in terms of hotel infrastructure, catering to a very high-end yachting crowd because he intends to create a marina for very high-end yachts.” Mr D’Aguilar said the sale of lots to buyers who would then build luxury homes will give the project scale, and feed into Abaco’s reputation as a second home destination, while the Sandy Point airport would be upgraded from “just a landing strip” into a fixed-base operation (FBO) and terminal creating to private jets. “It’s going to create an enormous amount of jobs, 600 in construction and another 600 when full-time operations begin,” he added. “It’s going to take while for that project to flesh out, probably 18 months to get going. Today was an important first step, and now the foundation work begins with further architects’ plans, getting all the government approvals and environmental studies done.” Tribune Business has reported extensively over the past year on the significant opposition to the Tyrsoz Family Holdings project from environmental groups, notably the 13 members of the Sustainable South Abaco group, who

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PAGE 2, Friday, February 14, 2020

SAT silently observing an assembly of 12 grade students, and pondered how adequately we have prepared them for the global corporate environment. How focused have we been in ensuring what they receive in our schools is applicable and relevant to the corporate landscape? A 2017 US workforce study revealed that while 96 percent of high schools, colleges and universities believe their institutions are very or somewhat effective at preparing students for the workforce, only 11 percent of business leaders strongly agree. Translating the theory of marketing, accounting, education, medicine and every other discipline into practical application has been the age-old struggle for generations of employers and employees. How do we

THE TRIBUNE

Are graduates ready for the world of work? set students up for success so that they can complete degree programmes that lead to promising career paths, and cope with the demands of their actual tasks? This week we focus attention on common strategies for building partnerships between employers and educators that will help students enter the workforce and develop their careers. 1. Work-based learning: One successful strategy is to embed work-based learning into classroom

and out-of-classroom experiences. Gallup research has found students who go on internships, where they can apply the knowledge and skills learnt in the classroom, are more likely to find full-time employment after college and be engaged in their work. Work-based learning can happen on-campus as well, such as project-based or simulated experiences that take place on the school premises. Maximising the number of students who have the opportunity to

participate in work-based learning requires a greater number of options and touch-points over the course of a student’s education. Every company should have a direct line of contact with guidance and career counsellors, as well as college student advisors. 2. Career services: Education leaders ought not to think of the student as the only customer of their work. In some ways, employers are just as important in identifying ways for how post-secondary training can lead to a good job. Teachers brought on to career development teams need to create opportunities for long-lasting relationships with employers to benefit the students they serve. In addition, staff need to be intimately familiar with what is happening across industries, including labour market information

and what it reveals about in-demand jobs. 3. Better information: Students are often not made aware of the intricacies and specific work attached to their chosen careers. The glitz and glamour of professions such as medicine, accounting and the law might become less attractive if local associations governing these professions provide detailed information exposing the unpopular aspects of the work. In order to better align higher education and the workforce, businesses and education institutions must partner to ensure that graduates enter the workforce prepared with the knowledge and skills they need to succeed. • NB: Ian R Ferguson is a talent management and organisational development consultant, having completed graduate studies with regional

IAN FERGUSON BY

and international universities. He has served organsations, both locally and globally, providing relevant solutions to their business growth and development issues. He may be contacted at tcconsultants@coralwave.com.

BPL STARTS ITS WINTER GENERATION OVERHAUL BAHAMAS Power and Light (BPL) yesterday said its winter maintenance overhaul has begun with one unit at Clifton Pier Power Station being taken off-line for 25 days. The state-owned energy monopoly, in a statement, said the DA13 diesel engine was removed from the grid on Monday as planned. It added that this was part of its Winter Action Plan, a months’ long effort to ensure generation units properly receive their annual servicing and maintenance. This, in turn, extends the life of BPL’s generation fleet and is designed to ensure all engines are functioning during summer to meet peak demand. The DA13 unit has been in service at Clifton Pier since 2006, and accounts for up to 18 megawatts (MW) of power daily. The

THE PAVEMENT reconstruction on a portion of Taxiway Hotel will begin on Monday, February 17.

Nassau airport upgrades set to resume next week UNIT DA13 in Clifton Pier Power Station’s Station B is now off the grid and undergoing a scheduled major overhaul. unit will undergo a full system diagnostic along with needed servicing before being brought back on to the grid in March. The work schedule is designed to avoid any disruption in service for customers. Dr Donovan Moxey, BPL’s chairman, said: “We are committed to solving the problems our leadership team inherited here at BPL.

We are going to ‘right the ship’ and bring reliability back for our customers. “As part of our turnaround strategy, our Winter Action Plan will provide critical maintenance to these units during the nonpeak winter months, when the engines can be removed from the grid and repaired without impacting the electricity supply.”

THE Nassau Airport Development Company (NAD) yesterday confirmed it will resume upgrading runway and apron surfaces at The Bahamas’ main airport on February 17. The Lynden Pindling International Airport (LPIA) operator said the latest work would focus on pavement reconstruction on a portion of Taxiway Hotel, which is a main access point on the airside. It is the location where aircraft exit the runway and enter aprons to park and be serviced in between flights. The scheduled works will last around two months and will result in full pavement restoration. Passengers travelling during peak travel periods, which are between 12pm to 3pm daily, and over Spring Break and the Easter holidays, were warned to brace for some delays when arriving or

departing from LPIA as a result of the airside works. Key airport stakeholders are working together to mitigate the impact on LPIA’s operations. Starting next week, Air Traffic Services (ATS) will activate contingency plans and implement operating procedures to manage traffic on the airside over the next two months. “We are undergoing this essential pavement reconstruction in an effort to increase the lifespan of Taxiway Hotel, and ensure its surface remains safe. As traffic to the destination continues to grow, we must maintain our primary assets at a level that meets the airport’s current and future demands,” Deborah Coleby, NAD’s vice-president of operations, explained. To minimise the overall impact to operations on the airside, the project will be divided into two phases

with each estimated to last around one month. NAD last year completed major rehabilitation works on Runway 09/27 (now Runway 10/28) and Taxiway India (now Taxiway Papa). Works included a full rehabilitation of the asphalt pavement surface, extending the life of the runway, as well as installation of new lighting. Although smaller in scale, the latest airside project will provide additional benefits to the overall operations. Additional works on airport aprons where aircraft park are scheduled to take place this year. Motorists entering the airport from the entrance closest to the domestic/ international departures and domestic arrivals terminal are being asked to approach the area with caution as heavy equipment movement may occur over the next two months.

BAHAMAS TO HOST MAJOR PAGEANT

THE Ministry of Tourism and Aviation yesterday announced that The Bahamas will host the World Beauty Fitness and Fashion (WBFF) pageant at the Baha Mar resort.

Dionisio D’Aguilar, minister of tourism and aviation, led a press conference on the event in the Rose Island Room at Baha Mar. He is pictured (centre) with Baha Mar’s president,

Graeme Davis, at right, and Ministry of Tourism sports manager, Jeff Rodgers. Also pictured are Paul and Allison Dillett, WBFF president and vice-president. Photos: Kemuel Stubbs/BIS

THE TRIBUNE By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net DISNEY Cruise Line yesterday teamed with Eleuthera’s Chamber of Commerce and the Small Business Development Centre (SBDC) to pledge $1m in assistance for the island’s business start-ups. The funds, which will be distributed over a threeyear period, are designed to help small businesses and entrepreneurs participate in development projects including the cruise line’s Lighthouse Point project. Speaking at the signing of a Memorandum of Understanding (MOU) between the three organisations, K Peter Turnquest, deputy prime minister, said: “This programme is not about the status quo, and it is not about empowering those who have already been empowered. This is about taking ordinary Bahamians and giving them the opportunity to create real wealth. “This MoU is a model of what we hope to achieve in other communities throughout The Bahamas as we look to bring additional investment to the country. This is not just about creating jobs; this is about creating wholesome communities because, at the end of the day, when we have happy communities we will have successful and profitable businesses.”

WATER CORP ISSUES $8.3M CONTRACTS FOR ABACO REPAIR THE Water & Sewerage Corporation (WSC) said yesterday it has awarded more than $8.3m in contracts to restore Abaco services and infrastructure post-Dorian with more to come. Giving an update on its restoration progress, the state-owned water supplier said services to the settlements of Crown Haven, Fox Town, Mount Hope, Wood Cay, Cedar Harbour, Coopers Town, Fire Road, Blackwood, Casaurina, Cherokee, Crossing Rocks and Sandy Point on mainland Abaco have been fully restored. “We have experienced some recent challenges with our water supply systems on the islands of Moores Island and Grand Cay, and we expect those to be fully rectified in the coming days,” the Water & Sewerage Corporation said. “The Grand Cay storage tank was destroyed during the hurricane, and a contract has been issued for the demolition of that tank. Another contract has been issued for a new 125,000 imperial gallon storage tank.

DISNEY TEAMS FOR $1M ASSISTANCE TO START-UPS

Friday, February 14, 2020, PAGE 3

Jeff Vahle, president of Disney Cruise Line, added: “We are pledging over $1m over the next three years to support new businesses and to support new leaders..... “Our organisations are coming together with the goal of empowering entrepreneurs and small businesses in Eleuthera, and maximising their economic opportunities for the long run. Disney is excited to be a part of this community, and to help create

a more robust and resilient economy in Eleuthera.” The new facility will be located in Rock Sound, with programmes delivered in group and one-on-one settings by both the Small Business Development Centre and the Chamber. Services will include business development advisory services, business communication training, customer service training, business mentorship and other seminars and

programming designed to equip Eleuthera businesses for success. The facility will also provide shared work space, high-speed internet, phone service and meeting rooms. Disney will also have a small office there. Disney’s Lighthouse Point project has has already come under fire from both local and international environmentalists due to concerns about its impact on the pristine South Eleuthera site, and surrounding area and sea. An online petition was launched last year with the endorsement of environmental groups reEarth, Save the Bays, Bahamas Reef Environmental Educational Foundation (BREEF), Earth Care and Water Keepers Bahamas in a bid to prevent Disney making what they described as a “big mistake” at Lighthouse Point. However, Davinia Grant, the SBDC’s executive director, said: “I’m really happy that Disney has partnered with us and the Eleuthera Chamber, because now we are able to have a full-time office in Eleuthera with advisors on the ground who can dedicate time to service not just clients interested in obtaining contracts from Disney but any client on Eleuthera.” “This strategic partnership aligns perfectly with our goals to provide employment, create

“Last week, the Water & Sewerage Corporation mobilised a private contractor to assist our team working to complete extensive repairs to our Marsh Harbour distribution system, which includes the communities of Marsh Harbour, Spring City, Dundas Town, Murphy Town, Central Pines, Pelican Shores and Eastern Shores. “It is expected that these works will continue for the next few months, resulting in substantial improvements in the reliability of our Marsh Harbour water supply system.” The Water & Sewerage Corporation’s statement continued: “At the Marsh Harbour pumping station site, the Water & Sewerage Corporation will commence major clearance works in the coming days for a new 1,500,000 imperial gallon storage tank that has already been contracted, a new pumping station building and two new solar power fields. “New standby generators were also delivered this week for both the new pumping station and another for the wellfields. When completed, our Marsh Harbour pumping station will be our most advanced water pumping station in the Family Islands with sufficient solar capacity to operate our entire wellfield and pumping station, along with standby power and

BPL power for use when the sunlight is not available.” Another private contractor has been hired to repair the Water & Sewerage Corporation’s distribution systems on Treasure Cay and Green Turtle Cay over the next several months. The Treasure Cay pumping station’s destroyed storage tank will be demolished in the next several days to make room for a new 750,000 gallon unit,

while the Green Turtle Cay facility will be repaired. “To date, the Water & Sewerage Corporation has awarded contracts for vehicles, equipment, new facilities, restoration works and services in excess of $8.3m,” its statement said, “and we anticipate another several million dollars in contracts will be awarded in the coming weeks. “Our Treasure Cay

DISNEY Cruise Line pledges $1m in startup assistance for Eleuthera. K Peter Turnquest, DPM, centre, with Disney’s Jeff Vahle and members of the SBDC, Bahamas and Eleuthera Chambers of Commerce.

TEMPLE CHRISTIAN HIGH SCHOOL ENTRANCE EXAMINATION 2020-2021 Temple Christian High School will hold its Entrance Examination on Saturday, February 15, 2020 at the school on Shirley Street from 8:30 a.m. to 12 noon for students wishing to enter grades 7, 8, 9 & 10. Application forms are available at the High School Office. The application fee is twenty-five dollars ($25). Application forms should be completed and returned to the school by Friday, February 14, 2020

For further information, please call telephone number: (242) 394-4481 (242) 394-4484

ownership opportunities and drive development in The Bahamas. Equipping our start-ups and small and medium-sized enterprises with effective new tools and training is an important step forward in our quest for sustainable growth and prosperity.” Thomas Sands, the Eleuthera Chamber of Commerce’s president, said: “For the first time that I know of a major foreign investor, who is investing in Eleuthera, is taking a bold step in setting a benchmark in terms of their corporate partnership.” “This co-operative effort with Disney will not only help existing businesses grow and thrive, but enable new ventures to get off the ground with some of the fundamental resources they need,” said Candice Turnquest, the Eleuthera Chamber of Commerce’s executive director. “Together we are able to present a unified programme offering excellent training and services along with direct connectivity to ongoing economic projects in the region. We are truly grateful for the support of our friends from Disney Cruise Lines= who are partnering with us to create this facility, which we know will foster a spirit of innovation and commerce.” Mr Sands last year told Tribune Business the private sector would back the

cruise line’s Lighthouse Point project provided the results from the project’s Environmental Impact Assessment (EIA) were “favourable”. Responding to this newspaper’s questions in the wake of renewed lobbying against Disney’s plans by its environmental activist opponents, Mr Sands and the Chamber also supported the Government’s decision to link full approval to the absence of adverse effects on the area’s pristine environment. “We understand and note the environmental concerns being communicated, and agree that any development happening on our island should seek to protect the island’s ecology as much as possible,” he added at the time. “With that in mind, we support the government’s requirement to have an Environmental Impact Assessment completed prior to the project being fully approved, and we continue to wait on the findings of that assessment. “If it is favourable, I do not see any reason why the business community would not support the Disney development, as we do with all developments that seek to positively impact our economy.” Disney’s Heads of Agreement requires that all necessary environmental approvals be in place before it starts construction.”

commercial office was destroyed during the hurricane and our Board is expected to approve the commencement of a procurement exercise for several building contracts shortly, including a new Treasure Cay commercial and operations centre, the new pumping station for Marsh Harbour, two solar power equipment buildings and refurbishment of all of our existing buildings on the

mainland and cays.” The Water & Sewerage Corporation added that the new plant purchased for Sweeting’s Cay is on Grand Bahama waiting to be shipped to its final destination. A non-governmental organisation (NGO), WaterMission, has provided a stand-by generator and desalination plant as the island’s water production facility was totally destroyed by Dorian.

PAGE 4, Friday, February 14, 2020

THE TRIBUNE

Beat OECD/EU to income tax FROM PAGE ONE

Bahamas being removed from the EU’s ‘grey’ list prove true. “If we become complacent in celebrating the removal, which indeed is warranted, we will lose sight of the fact we can reasonably expect an ongoing protectionist campaign against The Bahamas as a low tax nation. “Any reprieve must be used wisely because trust me: The next assault is right around the corner. That is one way of eroding sovereignty - the right of countries to chose when, and how, and at what rate, to tax. It has weakened and eroded the competitive capacity of this country.” The Bahamas avoided the EU’s non-cooperation “blacklist” last March, but was placed on a so-called “grey list” of 34 jurisdictions that were given until the end of last year to

fulfill their commitments to complying with its tax transparency and anti-evasion/avoidance demands otherwise they could be “blacklisted” in 2020. This week’s Financial Times report suggests The Bahamas has now completely satisfied its demands to eliminate “ring fencing”, which are investment incentives provided to foreign entities and investors that are not available in the domestic market, and economic substance requirements that call for companies present here to have a physical presence and be doing real business. The action, though, now appears to be shifting to the OECD, whose Base Erosion and Profit Shifting (BASE) initiative shares similarities to the EU effort. As a result, Mr Sears urged The Bahamas to move rapidly on tax reforms for its own

benefit rather than for the EU/OECD. “Rather than designing a tax regime for the peace, order and good governance of The Bahamas, what we will have is a tax and tax rate being imposed in order to lesson the competitive advantage they perceive The Bahamas and other low tax jurisdictions have,” he told Tribune Business. “We need to realign ourselves. Clearly, from the national perspective, relying on consumption tax is inefficient. We have to address it rather than keep kicking the can down the lane. We need a tax policy that sustains in an efficient manner the infrastructure we have throughout the archipelago with a very disparate population.” Arguing that The Bahamas’ current tax structure is simply not generating sufficient revenues to meet the country’s development

and social needs, Mr Sears added: “There needs to be a new tax regime, not one imposed by the OECD or EU as their intent is to run us out of business, but designed to meet the development needs of our society. “I would introduce a corporate income tax, but I personally believe we need personal income tax. We need a progressive system of taxation. The more skewed the distribution of wealth is, the greater the incidence of crime, disaffection and utter neglect of infrastructure. We have to design a tax regime that is progressive. “That’s essential to maintaining domestic stability and, in my opinion, it’s the best way to ensure we have the proper delivery of services to make the quality of life - not only for Bahamians but visitors - sustainable and realign ourselves for the

21st century global economy. Certainly the tax regime we have now is really regressive and it cannot sustain this small population and country.” Paul Moss, Dominion Management Services’ president, told Tribune Business that the term “false joy” was the best way to describe The Bahamas’ reported removal from the EU’s ‘grey list’ as the cost of complying with the 27-nation bloc’s demands had been significant. “Once you do comply with what they demand, business closes out and clients leave,” he told Tribune Business. “We’ve done everything we can do, and what we’ve done is create a slow death of the financial services industry. If we stay with this model we will certainly die sooner rather than later.” Reiterating his call for The Bahamas to

implement a low-rate corporate income tax before it is forced upon the country by the likes of the EU and OECD, he added: “I’ve been advocating for this since 1999 or so, and every year it gets closer. I’m not sure why our leaders cannot see it. “They’re going to be forced to do it, and if they’re forced to do it we will not have the wiggle room to do it in a way that will be advantageous to us. We should not be wasting time passing stop-gap laws. They need to look at the industry holistically, and make the right set of changes so we become competitive in this everchanging world. “At the end of the day it comes back to tax. That’s why the offshore world was created because onshore tax rates were considered too punitive. We have to be competing on tax.”

Bahamas resident defeats Canadian sanctions of $20m FROM PAGE ONE

by this nation’s judicial system. She said the verdict reinforces that the Bahamian courts will aid foreign receivers seeking to recover funds on behalf of defrauded or harmed investors, and added of Justice Winder’s ruling: “His decision clarifies the legal position in The Bahamas, and will be a guide that informs foreign administrative agencies and governments as to what types of judgments can and cannot be enforced. “His decision demonstrates that the Bahamian court will not shy away from looking at the substance of the matter rather than the form... Justice Winder rejected the Ontario Securities Commission’s submission that the purpose of the proceedings was to facilitate the return of funds to harmed investors, and he noted that this case did not involve the recovery of defrauded monies.” The Ontario Securities Commission, represented by now-Chief Justice Brian Moree QC before he took his current position, initiated legal proceedings in The Bahamas after Mr Pushka exhausted all appeal avenues against the case brought against him. A sanctions order, filed with the Ontario Superior Court, mandated that he pay a $1.875m (CAD) Canadian dollar administrative fine in addition to a CAD$18.237m “disgorgement” as a result of breaching the state’s securities laws. Both sanctions were to be paid to the regulator. “The Ontario Securities Commission claims that in the period between the initial finding against Puhska in August 2013, and the determination of the appropriate sanction in August 2014, he removed from the Canadian jurisdiction over CAD$13.5m,” Justice Winder’s ruling recorded. “CAD$4.55m of these funds, they allege, were transferred to The Bahamas and the balance to a trust company in Liechtenstein. It is alleged that property in Lyford Cay, Bahamas, in the name of Bonnieblue Inc was purchased by Pushka with the funds removed from Canada.” Mr Pushka is the former “indirect owner” and chief executive of Crown Hill Capital Corporation, a Canadian investment management firm. An Ontario Securities Commission panel, after a two-week hearing, found he and the company breached their “fiduciary duty” to the investment funds they managed - and the investors in them - through a series of deals undertaken during 2008-2009. The panel upheld the regulator’s allegations that Mr Pushka and Crown Hill had “acted primarily in their own interest” in taking over the management of several other investment funds, violating Ontario securities laws by changing investor rights, not properly addressing

“conflicts of interest” and providing misleading information to clients. While these charges were vigorously disputed by Mr Pushka, he was defeated at every stage of the Ontario Securities Commission’s disciplinary process. However, Justice Winder noted he was not accused of defrauding investors, running an illegal securities scheme or causing harm to clients in any other way. And he criticised the Ontario Securities Commission for creating “a moving goalpost” by changing the basis of its action some three years after first initiating proceedings in The Bahamas against Mr Pushka. He noted that two of its vice-chairmen approved a September 2018 recommendation for the sanctions/ penalties to be paid to “harmed investors” even though the Ontario court’s order specifically said the CAD$20m-plus was to go to the regulator. Justice Winder also noted that the Ontario Securities Commission “did not provide an adequate response” to the argument that the CAD$18.237m “disgorgement” was more than any funds that should be returned to investors. He added that “at best” the true sum was CAD$14.501m, as some CAD$3.736m had been paid by another entity. “There is no reference to restoring any person or company who may have been harmed by Pushka, only about punishing him for transgressing Ontario Securities laws and ensuring he is not enriched thereby,” the Bahamian Supreme Court justice found. “Under the [Canadian] order the Ontario Securities Commission had a right to recover these sums and utilise them as they saw fit.... It could not be said that this was a claim about the recovery of ill-gotten gain by Pushka which belongs to harmed investors so as to restore them.” Turning to the regulator’s recommendation that the CAD$20m-plus be used to compensate investors, Justice Winder said this altered the nature of proceedings since it was “not the state of play” when the case was launched in The Bahamas. Doing so, he blasted, created “uncertainties” and the chance “to change the facts to suit specific goals and outcomes”. He argued that case pleadings cannot “be a moving goalpost adjustable to suit the vagaries of the jurisdiction in which enforcement is sought”. As a result, he dismissed the Ontario Securities Commission’s claim. Mr Pushka, in a statement, said: “The process in The Bahamas was balanced and fair. In Ontario, the original proceedings were in the Commission’s tribunal system, where the plaintiff, prosecutor and judge are all from the same organisation. It was refreshing to have my case heard in The Bahamas where I was before an independent judge, as opposed to Ontario.”

THE TRIBUNE

Friday, February 14, 2020, PAGE 5

DPM: Bahamas ‘far from’ Minister hails $300m South Abaco uncontrolled debt spiral project as ‘transformational’ FROM PAGE ONE and could be achieved quicker barring any further Doriantype disasters over the next decade, he argued that setting the public finances back on the consolidation path detailed by the Act as rapidly as possible was critical to restoring sustainability. “From our perspective it’s absolutely necessary,” he told Tribune Business, “not only to discipline ourselves but to demonstrate our commitment to our partners that we understand the issues and have every intention to bring the situation under control and restore it to manageable levels given that we’re in an area subject to unexpected events. “That will demonstrate we have the headroom to respond to emergency needs. It’s part of our risk mitigation strategy from a macroeconomic standpoint, and in our view it would be irresponsible for anyone to delay that as we look to the future fiscal sustainability of the country. “I’m very confident we’ll get back on track. I’m very confident, barring any further natural disasters of the size and magnitude that we’ve just had, that the path we were on was working notwithstanding the challenges and we were comfortably within where we need to be.” Mr Turnquest also dismissed fears that The Bahamas is nearing a position where its debt levels could spiral out of control due to the projected $1bn-plus increase in the national debt that is forecast to occur over the next three fiscal years. “No, we’ve not reached that point. We’re far from it,” he replied. “We will do well to be prudent and go back to the principles that got us the results we enjoyed over the last two years, and we’ll do that. I don’t expect we’re going to get into that kind of range any time soon. “It’s all about prudent ways of collecting the revenue that we need to collect on the

books. It’s a continuous fight, unfortunately, for compliance. We’re doing all we can with the Revenue Enhancement Unit and they’re making progress, so we do what we can.” Dorian’s impact on the country’s short and mediumterm finances, which has placed fiscal consolidation firmly on the backburner for the time being, shows that a 2019-2020 deficit equivalent to 5.3 percent of gross domestic product (GDP) will drive the government’s direct debt beyond the $8.205bn mark by end-June 2020. The direct debt-to-GDP ratio will increase by more than seven percentage points compared to initial projections, rising from 57.3 percent to 64.4 percent by the time the fiscal year closes. This ratio is forecast to peak at 66.6 percent at the end of the 20202021 fiscal year, and will only have come down slightly to 65.9 percent some two years later. The government’s revised budgetary projections show more than $1.7bn being added to its direct debt over the four years from end-June 2019 to the close of the 20222023 fiscal year, taking it to $9.243bn. If roughly $700m of contingent liabilities guaranteed on behalf of loss-making stateowned enterprises are thrown in, together with potentially at least $1.5bn in unfunded civil service pension liabilities, then the true scale of The Bahamas’ debt is placed nearer $11.5bn. Tribune Business also revealed on Thursday that Bahamian taxpayers face a $50m post-Dorian hike in debt servicing costs. The forecasts published by the government in the May 20192020 budget projected that its debt servicing (interest) costs would be placed on a declining trend, falling from $381.351m in 2018-2019 to $371.552m this fiscal year. That momentum was to continue with further falls to $345.338m in 20202021, and $327.552m in

2021-2022. However, the recovery and restoration costs associated with Dorian have totally reversed this picture based on the estimates contained in the supplementary budget presented to the House of Assembly in late January. While debt servicing costs are forecast to increase by a modest $5.5m on the initial 2019-2020 projection to $377m, the impact of the $540.5m deficit increase post-Dorian only starts to be properly felt in coming Budget years. Instead of dropping to $345.338m in 2020-2021, the government’s interest bill is instead forecast to surge to $381.238m. And, for 20212022, instead of dropping to $327.552m it is projected to increase to $377.852m - a jump of more than $50m compared to pre-Dorian. Debt servicing costs are forecast to increase further in the 2022-2023 fiscal year to $397.8m, placing them almost equivalent to the $400m in Dorian-related expenses and losses. Mr Turnquest yesterday pledged that the government would ensure Bahamian taxpayers receive value for money for the extra debt and borrowing costs taken on post-Dorian. “We are very sensitive to the additional funding we are asking to borrow,” he said, “and we recognise we have an obligation to the Bahamian people to be as transparent as possible with respect to that. “We will manage this very carefully and judiciously, and will be monitoring that expenditure, and hope to be able to report to the Bahamian people on how this money is being spent in addition to the regular reports we do.” Mr Turnquest described criticism of the government’s decision to borrow a net $508m to finance Dorianrelated repairs and recovery as “mischief” that had its roots “more in rhetoric and politics than economics”.

FROM PAGE ONE are concerned about both the size and location of the proposed development, which is in close proximity to the 20,500-acre Abaco National Forest and the prime breeding ground for the endangered Abaco parrot. “I don’t know if there’s been significant push back but certainly the residents in south Abaco seemed largely supportive,” Mr D’Aguilar said. “We are very mindful of the environmental concerns and I’m sure they will be duly considered. Decisions by the environmental regulatory bodies will ensure its protection. “The government is

focused on the environment first and foremost, and considers it an important component of the tourism product, so we want to protect it as best we can. But that has to be balanced with the desire and need for economic development, which is why we have to ensure the correct balance is struck.” When the development of a casino in a relatively remote Family Island location was questioned, Mr D’Aguilar said Mr Ben-Zur needed “to build a certain amount of scale to create a destination” that can attract the high-end visitors he is targeting. He added that the government was “minded to give him an opportunity to

see if he can make it work” when it came to the casino, and said the government was seeking to create economic opportunities that would enable south Abaco residents to either remain at, or return, home rather than having to migrate to Nassau for work. Questioned whether the developer has the necessary financing, Mr D’Aguilar said of Mr Ben-Zur: “He definitely, in my opinion, has the business background, experience in the hospitality business, and success as a businessman. In our opinion he possesses the qualities, the attributes that someone wishing to pull off a project like this needs, but only time will tell.”

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PAGE 6, Friday, February 14, 2020

THE TRIBUNE

‘Chicken and egg’ on project labour FROM PAGE ONE

for not only housing but also persons who are looking to move back. So that’s what I mean when I said it’s a chicken and egg situation. Which one has to come first: The labour force or the jobs? “As far as I know in terms of the plan they are going to be building employee housing. So there will be actual living accommodations onsite for those personnel who will be able to live there and run the essential day-to-day activities.” Mr Albury added that the developer and its principal, Ronnie Ben-Zur, have “done their homework” in terms of mitigating any environmental impact to the South Abaco National Park. He added that they had been “very cooperative” with the Bahamas National Trust (BNT) and the Antiquities Monuments & Museums Corporation (AMMC) on restoring heritage sites in the area. “Anything you do there is going to be an environmental concern right out of the gate,” the MP told Tribune Business. “I’m one of those

for the BNT to be able to carry out these goals and transform that into a more formalised park. So they have been working closely with them. It looks like they will be very co-operative and even helping the BNT to maintain those areas, because it is a very important site for the Abaco parrot and other species that live there.” Mr Albury continued: “They [the developer] are also working once again with the AMMC to restore the old Hole-in-the-Wall Lighthouse area, because it really is a heritage site but for some time it has been in a dilapidated condition. “So they have committed to restoring and funding that through a Lighthouse Society, much like the one they have on Elbow Cay for the Hope Town Lighthouse. So they have done their homework as far as making sure they mitigate any environmental concerns, but they have to ensure that they are following the environmental impact assessments and other guidelines. “It appears to me that they are prepared to do quite a bit for the environment in terms of funding the park and those areas, and working

JAMES ALBURY persons who share those concerns, and I think it is very important to respect that. But one thing with this group is that they have worked very well with the BNT, because as you know this development is nearby the Abaco National Park.” “It doesn’t affect the national park, but it is just nearby to that piece of

property that is owned and operated by the BNT. For some time they have been wanting to establish that park as a full-blown natural park, with camp sites, infrastructure and different things that would make it a fully realised national park. “And one of those aspects that wound up in the Heads of Agreement is funding

with those groups, so they have done their homework there.” Speaking directly to the potential economic impact and job creation, Mr Albury said: “It’s really going to put another economic anchor in the south, especially for those persons living in the South Abaco, Moors Island, Sandy Point, Crossing Rocks and Cherokee Sound. It’s going to provide another attraction there.” “I would expect a

widening of persons who find employment, but also people who find employment closer to home, maybe bringing some more wealth and some more opportunities in the communities.”

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PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, OWEN REED FAWKES of Kemp Road, New Providence, Bahamas, intend to change my name to OWEN REED FOX. If there are any objections to this change of name by Deed Poll, you may write such objections to the Deputy Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

NOTICE NOTICE is hereby given that DILLON DEXTER WILLIAMS of Vernon Street, Collies Avenue 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 7thday of February 2020 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas. LEGAL NOTICE

10th February, 2020

NOTICE PORTONPAR INVESTMENTS LTD. 11th March, 2020

Notice is given hereby in accordance with Section 138(8) of the International Business Companies Act, 2000, the dissolution of PORTONPAR INVESTMENTS LTD. has been completed, a Certificate of Dissolution has been issued and the Company has therefore been struck off the Registrar.

MARKET REPORT www.bisxbahamas.com

(242) 323-2330

WEDNESDAY, 12 FEBRUARY 2020

(242) 323-2320

ALL SHARE INDEX: CLOSE: 2,218.44 | CHG: 0.53 | %CHG: 0.02 | YTD: -13.16 | YTD%: -0.59 BISX LISTED & TRADED SECURITIES 52WK HI 4.45 22.65 7.00 6.70 2.60 2.00 5.47 12.00 6.17 4.50 10.84 3.24 5.06 10.57 7.90 16.99 9.40 3.80 15.20

52WK LOW 3.35 20.91 5.50 5.38 1.60 0.67 2.00 9.50 5.60 3.95 6.35 2.53 1.76 8.00 6.40 12.38 6.80 3.01 13.50

SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson

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

1000.00 1000.00 1000.00 1000.00

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

CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB

PREFERENCE SHARES

1.00 10.00 1.00

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

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

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

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

LAST CLOSE 3.50 17.43 6.00 6.68 2.10 1.62 3.80 11.61 6.00 4.34 6.49 3.58 4.60 10.82 7.60 15.05 9.33 3.69 15.20

CLOSE 3.50 17.43 6.00 6.68 2.10 1.62 3.80 11.61 6.00 4.34 6.49 3.64 4.60 10.86 7.70 15.05 9.33 3.69 15.20

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.06 0.00 0.04 0.10 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00

CLOSE 100.00

CHANGE 0.00

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

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

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

VOLUME

500 2,000

VOLUME

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

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

P/E 14.6 18.7 N/M 18.1 N/M N/M -8.7 16.1 13.4 23.6 46.4 35.7 9.9 16.8 10.6 18.4 9.9 18.2 24.1

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

YIELD 4.86% 7.23% 0.00% 3.89% 0.00% 1.23% 0.00% 6.20% 3.67% 2.76% 0.00% 11.92% 1.30% 3.02% 3.12% 3.59% 2.14% 3.25% 4.01% 0.00% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%

INTEREST Prime + 1.75%

MATURITY 19-Oct-2022

6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%

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

YTD% 12 MTH% 3.73% 3.73% 2.93% 2.93% 2.67% 2.71% 5.76% 5.76% 12.81% 12.81% 3.93% 3.93% 6.38% 6.38% 4.50% 4.50% 7.96% 7.96% 11.57% 11.57% 18.35% 18.35% 5.17% 5.17% 15.86% 15.86% 5.67% 5.67% 3.40% 3.40% N/A N/A 10.80% 2.60% 10.40% -4.00%

NAV Date 31-Dec-2019 31-Dec-2019 27-Dec-2019 31-Dec-2019 31-Dec-2019 31-Dec-2019 31-Dec-2019 31-Dec-2019 31-Dec-2019 31-Dec-2019 31-Dec-2019 31-Dec-2019 31-Dec-2019 31-Dec-2019 31-Dec-2019

Aegis Corporate Services Limited Offices at Old Fort, Building Four, Western Road, P.O. Box SP-63771 Nassau, Bahamas Liquidator N O T I C E DORIA SHIPPING, LTD. __________________________________ Pursuant to the Provisions of Section 138 (8) of the International Business Companies Act 2000 notice is hereby given that the above-named Company has been dissolved and struck off the Register pursuant to a Certificate of Dissolution issued by the Registrar General on the 30th day of January, 2020. Delano Aranha Liquidator of DORIA SHIPPING, LTD.

MUTUAL FUNDS 52WK HI 2.29 4.37 2.09 195.13 166.73 1.66 1.85 1.76 1.20 8.34 10.26 6.94 12.01 12.35 10.74 10.00 8.98 11.79

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.60 1.74 1.69 1.12 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund Leno Preferred Income Fund Leno Growth Fund Leno Diversified Fund Leno Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

NAV 2.29 4.37 2.09 195.13 166.73 1.66 1.85 1.76 1.20 8.34 10.23 6.94 12.01 12.35 10.73 N/A 8.98 11.40

MARKET TERMS

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

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

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | COLONIAL 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333

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

N O T I C E TRES HEIGHTS MANAGEMENT LTD. __________________________________ Pursuant to the Provisions of Section 138 (8) of the International Business Companies Act 2000 notice is hereby given that the above-named Company has been dissolved and struck off the Register pursuant to a Certificate of Dissolution issued by the Registrar General on the 27th day of December, 2020. Brynn Powell Liquidator of TRES HEIGHTS MANAGEMENT LTD

THE TRIBUNE

Friday, February 14, 2020, PAGE 7

China’s virus crackdown leaves millions working at home BEIJING Associated Press IN THE middle of a phone call with a customer, an important visitor knocks on Michael Xiong’s door: his 3-year-old son. Xiong, a salesman in Chibi, a city near the center of a virus outbreak, is one of millions of people in China who are obeying government orders to work from home as part of the most sweeping anti-disease measures ever imposed. After breakfast, Xiong leaves the 3-year-old and his 10-month-old brother with their grandparents. The salesman for IQAir, a Swiss maker of household air purifiers that are popular in China’s smog-choked cities, goes into a bedroom to talk to customers and try to find new ones by phone and email. His son “comes to knock on the door when I am in a meeting, asking for hugs,” Xiong said. “I put myself on mute, open the door and tell him I will be with him later, and he is fine with that.” Most access to Wuhan, a city of 11 million people where Xiong usually works, was cut off Jan 23 and some other cities have imposed travel restrictions. Controls imposed on business to try to stem the spread of infection extend nationwide, affecting tens of thousands of companies and hundreds of millions of employees. The government extended the Lunar New Year holiday to keep factories and offices closed. Cinemas, temples and other tourist sites were shut down to prevent crowds from forming. Group tours were canceled and businesspeople told to put off travel. China’s vast manufacturing industries cannot

“A return to normal isn’t yet in sight,” said Roger Diwan of IHS Markit in a report. Many employees already were equipped to work from home due to China’s almost universal adoption of smartphones, the internet and messaging and

MAGGIE Zhang uses a laptop computer at her parents’ home in in the northwestern city of Zhangye in Gansu province. Zhang, founder of SheTalks, a company in Beijing that organises events for women, is working out of her parents’ apartment after she went back for the Lunar New Year and said she might stay through March. Photo: Maggie Zhang/AP function without workers in factories. But as some businesses reopen, Beijing has told anyone who still can work from home to stay there. That is forcing employees, from solo entrepreneurs to automaker Volkswagen AG’s 3,500member headquarters staff in Beijing, to stay in touch with customers and business partners and keep companies functioning by phone and email. Millions of Chinese entrepreneurs operate house-cleaning, small trading and other businesses out of their homes. Many have suffered the same impact as bigger businesses from restrictions on movement and orders to families to stay indoors. Maggie Zhang, founder of SheTalks, a company in Beijing that organises events for women, is working out of her parents’ apartment in the northwestern city of Zhangye in Gansu province. She went for the Lunar New Year and said she might stay through March. Zhang temporarily stopped organising talks

and other public events and is gathering material for her company’s social media account to attract users. In the morning, “I will do some interviews over the phone or online with women working at the front in fighting the epidemic and sometimes foreign businesswomen working in China,” said Zhang. “When I am working, my parents always try to keep quiet and not disturb me.” Zhang said she uses the sunny living room to write and moves to a bedroom to do interviews or talk to employees. She works out on an elliptical machine during those calls “because my mind works faster when I exercise.” Numbers of new virus cases reported daily have declined, but economists warn against assuming the disease and its impact on the world’s second-largest economy might soon be under control. Quarantines in the central province of Hubei, which surrounds Wuhan, and some neighboring areas still are in place. Many large companies have told employees to stay home.

video call services, including the popular WeChat operated by Tencent Holdings Ltd. China is “probably one of the best countries to do this,” said Michael Mayer, who is in charge of marketing for the Volkswagen auto brand in China. A 27-year

veteran of VW, he came to China from India three years ago. “This would be hard to do in Europe. People here are much more open to using digital tools,” said Mayer. “As sad as it sounds, this is the best place for us to try this experiment.”