02172022 BUSINESS

business@tribunemedia.net

THURSDAY, FEBRUARY 17, 2022

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BOB defeats ‘irregular’ $6m default judgment

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

• Bank victorious in one of two ‘highest risk’ legal fights • Judge: ‘Arguable defence with prospect of success’ • Ex-Cabinet minister owns 50% of opposing company

BANK of The Bahamas yesterday emerged victorious in one of its two “highest risk” legal battles after a $6m default judgment against it was found to have been “irregularly” obtained.

Justice Petra Hanna-Adderley upheld a prior decision to overturn the October 23, 2017, default entered against the BISX-listed institution by a group of companies alleged to have links to a former Cabinet minister.

Her verdict recorded evidence that Damian Gomez QC, former minister of state for legal affairs, was said to be a 50 percent beneficial owner in one of the plaintiff companies, Seaport Construction Ltd, “and may have an interest in the other” corporate entities. The legal dispute with the bank was behind his decision

to resign from the Cabinet in 2015.

Besides finding that Bank of The Bahamas had “an arguable defence with a prospect of success” to the claims, the judge also ruled that the “judgment in default of defence” was obtained irregularly because it needed the Supreme Court’s prior approval.

Her verdict thus enables the commercial bank, which is more than 82 percent owned by the Government, to breathe a little easier given that the

battle with entities forming the Freeport-based MRC (Meridian Research Corporation) group was ranked as its most important legal dispute alongside the battle with exCabinet minister Leslie Miller.

Wayne Aranha, now Bank of The Bahamas’ former chairman, told shareholders in its 2021 annual report: “In the matter of Kaydee Ltd et al versus Bank of The Bahamas, the bank awaits the delivery of the appeal ruling stemming from the ‘judgment in default of defence’ entered against the

DAMIAN GOMEZ QC bank by the plaintiffs in excess of $6m, which was set aside on October 21, 2019.”

Justice Hanna-Adderley, setting out the background to the dispute, said it stemmed from the MRC Group’s allegations that Bank of the Bahamas had failed to follow through on various mortgage contracts agreed with

SEE PAGE SEVEN

Auditor General hails Health Visa’s ‘vision’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Auditor General’s Office has hailed the Ministry of Tourism’s “vision and implementation” of the Health Travel Visa despite finding multiple concerns over how the scheme was administered.

The Government’s financial watchdog, in a report tabled

in the House of Assembly yesterday, acknowledged that the programme had enabled The Bahamas to check whether visitors and residents were complying with COVID-19 testing protocols and other requirements at the pandemic’s height in a bid to facilitate the economy’s safe opening.

“During such extraordinary times government needs to be creative, flexible without

jeopardising good governance (transparency and accountability),” the Auditor General’s Office concluded in a report that appears to fall short of providing the Davis administration, which frequently attacked the Health Travel Visa when in Opposition, with further ammunition for a new offensive.

SEE PAGE EIGHT

TERRANCE BASTIAN

Retailer: Price rises ‘hurting our hearts’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Retail Grocers Association’s president yesterday warned that many merchants would be “forced out of business” by any move to impose acrossthe-board controls on their margins.

Philip Beneby told Tribune Business that further government intervention to dictate wholesale and retail mark-ups, as seemingly suggested by a former Price Control Commission chairman, will likely leave many businesses unable to cover already-substantial overhead costs.

Asserting that it would be counter-productive to fight inflation using such methods, he added that no Bahamian merchant would willingly “over price our goods” because competitive pressures from multiple rivals would simply force them out of business.

Revealing that “it hurts our heart to see what some of the price increases are”, Mr Beneby said retailers and wholesalers “sometimes have to close our eyes” knowing the potential impact this will have on lower and middle class Bahamians already struggling to make ends meet following the devastation inflicted by the COVID-19 pandemic.

He added, though, that many persons were acting as if the current hike in prices was only happening in The Bahamas rather than being recognised as a consequence of inflationary pressures that are impacting the entire world.

“They’ll be running a lot of retailers out of business because prices are not in our control,” Mr Beneby told this newspaper of the suggestion by Danny Sumner, former Price Control Commission chair, that

SEE PAGE NINE

BISX-listed insurer in 37% profit jump

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A BISX-listed insurance group yesterday unveiled a 36.8 percent year-over-year profit increase for 2021 as its top executive said it was “time to be cautiously optimistic” after two years of COVID. Alister McKellar, J S Johnson’s managing director, channelled his Winston

Churchill spirit when telling shareholders: “After two-plus years of COVIDrelated issues, concerns,and worries, it finally feels like time to be cautiously optimistic again. And our financial results for the fourth quarter of 2021 seem to support the change.

“The combination of an easing of COVID restrictions, a quiet hurricane

SEE PAGE 10

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Health Travel Visa ‘worked bloody well’ • Ex-minister: It gave extra $10m to COVID fight • Auditor General shows ‘not a penny is missing’ • D’Aguilar: Shows PLP’s Kanoo claims fall flat

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A FORMER tourism minister yesterday asserted that the Auditor General’s findings proved the Health Travel Visa had “worked bloody well”, adding: “There’s not a penny missing.”

Dionisio DIONISIO D’Aguilar, reactD’AGUILAR ing to the report by the Government’s financial watchdog, told Tribune Business that while the system was “not perfect” it had served to facilitate tourism’s safe re-opening and that of the wider economy while contributing a net $10m surplus to assist the fight against COVID while he was in office.

The Auditor General’s Office, while hailing the Minnis administration’s decision to launch the Health Travel Visa, raised concerns about a lack of competitive tendering; government payment procedures not being followed; delays in transferring funds to the Public Treasury; and the “critical” need for the Government to gain more “control over its own revenue collection”.

But the report, which was tabled in the House of Assembly yesterday, fell well short

SEE PAGE SIX

PAGE 2, Thursday, February 17, 2022

THE TRIBUNE

A perilous path to recovery T

he economy’s reopening has been both positive and necessary as we seek to recover from two years of extreme pressures sparked by the global COVID-19 pandemic. Since the reopening, The Bahamas has done extremely well with government revenues outpacing projections - a trend we are hoping will continue and deepen. We must, however, be mindful that recovery for emerging economies, especially highly vulnerable small island states such as ourselves, will be fraught with challenge. Targeted strategies are required to meet these challenges head on, and these must be based on facts that are communicated with clarity and precision.

The global recovery will be led by the large developed economies. The World Bank noted: “As the world enters the third year of the COVID-19 crisis, economic

developments have been both encouraging and troubling, clouded by many risks and considerable uncertainty... Spending in developing countries surged to support economic activity during the crisis, but many countries are now facing record levels of external and domestic debt. Adding to these debtrelated risks is the potential for higher interest rates. It is difficult to predict how rapidly interest rates will rise as advanced economies slow down their expansion in monetary policies. With fiscal and monetary policy in uncharted territory, the implications for exchange rates, inflation, debt sustainability and economic growth are unlikely to be favourable for developing countries.” This is a precise description of the realities facing The Bahamas and most countries in the Caribbean. The headwinds, such as inflation, exchange rates (not for The Bahamas),

lack of economic growth and maintaining debt at reasonable levels, are clear and will be very challenging. The question is how the country responds in this environment.

“US equity futures fell after a better-than-expected US jobs report increased bets of tighter monetary policy... The unemployment rate ticked up to 4 percent, and average hourly earnings jumped... Canada’s labour market suffered a larger-than-expected setback last month after the nation was hit with fresh lockdowns meant to contain the Omicron variant of Covid-19... Vladimir Putin and Xi Jinping closed ranks against the US and its allies on key security issues, as they declared that there’s no limit and ‘no forbidden zones’ in the friendship between Russia and China.” These are instructive news highlights from a February report by Jeffries LLC, an investment

company. They aptly demonstrate the perilous nature of the recovery from the global pandemic. We are not yet out of the woods.

As the health crisis wanes, the financial crisis lingers with pronounced effects and new headwinds with which to contend. The road forward will not be easy; indeed, it is perilous.

The recent release of the Fiscal Strategy Report (FSR) draws attention to this point when it states: “The nation’s fiscal health is in a perilous state.” Applying dictionary definitions to the word ‘perilous’, the message here is that the country’s fiscal health is “exposed to imminent risk of disaster”. The statement carries so many implications that to ignore it would itself be perilous. An economy described as such clearly needs urgent attention and a clear strategy to fix it. The FSR attempted to do just that when it stated: “As outlined in

the 2021 FSR, The Bahamas’ fiscal health will be restored by improving government efficiency through digitisation, continued economic diversification and improvements in revenue policy and administration to achieve revenues of 25 percent of GDP by fiscal year 2025-2026.” What is most interesting about this statement is that the first portion is a continuation of policies espoused by the previous administration, while the latter section highlights the need for a significant increase in revenues. This latter portion generated expected pushback and concerns. Followed to its conclusion, over the next two to three years, this will see revenue growth of more than $1.2bn above the best revenue performance in the country’s history and a budget surplus.

Not only is the fiscal health of The Bahamas in a perilous states, but so is the global economy. This revenue target set by the new administration will therefore be difficult to achieve, there is no question about that. The argument, however, turns on whether the policy direction is the correct one. Does the country need additional revenue to effectively run government, provide public goods and services and tackle its debt burden? On analysis, the answer is an easy ‘yes’.

“Containing expenditure will be equally important in achieving fiscal targets, and government intends to limit recurrent expenditure to 20 percent of GDP and capital expenditure to 3.5 percent of GDP by the end of the same period,” the FSR said. “The planned result is the achievement of a modest budget surplus by fiscal year 2024-2025”.

Mathematically, the problems appear to be solved.

Revenue at 25 percent of GDP, recurrent expenditure at 20 percent and capital expenditure at 3.5 percent, leaving a surplus equivalent to 1.5 percent of GDP. The problems, though, are very complex. The environment is perilous and there might be more important elements than numbers that need solving before we can start to remedy The Bahamas’ fiscal affairs.

We should therefore recognise some important signals. As a norm, the sovereign (meaning the Government) ought to be the lowest credit risk an institutional lender takes on, especially for a domestic lender in Bahamian dollars. Currently in The Bahamas, a private borrower can secure credit at rates far superior to the Government in Bahamian dollars. This is indicative of a prevailing sentiment in need of urgent correction.

The Jeffries LLC report highlighted that of all Caribbean countries covered, The Bahamas has the highest yielding bonds at near 11 percent. Why would this be? What is it that the international capital market is interpreting and concluding? What needs to be done to correct the sentiment in the market? There appears to be an important information gap at play and, to some extent, a message confusion. It would appear that there is a need for greater clarity on policy positions.

Such a discussion would allow lenders to rationalise why the Government does not represent the risk indicative in current domestic pricings and international yields. I say this because it is almost inexplicable how

Hubert Edwards By

all, or at least most, other Caribbean sovereign bonds are trading more favourably than The Bahamas. There is an adverse view in the local space and the international capital markets. I believe that this adverse view can only be addressed from the seat of policy, or helped by a sudden significant shift of economic fortunes. The latter is highly unlikely.

The FSR attempted to lay out a path, and convey the very message that I am calling for. If one takes the time to read it there is no doubt you will find it a fascinating document with a number of very interesting themes. First, the release letter pointed to the “perilous” state of the “health of the country’s finances”.

Second, the document captures, more than any other pronouncements to-date, some of the very critical issues facing the country.

Third, there is evidence of the continuation of policies from the previous administration. This is a very interesting and positive observation. Fourth, the document lays out and incorporates the strategic initiatives promised while carefully highlighting assumptions - and the downsides - if the former are not realised. Overall, I think the document is very instructive. There is a sense that the issues are all well-known, acknowledged and an attempt is being made to address them. The main point for discussion therefore becomes the revenue projections, as noted before.

Here is my position: I agree that there is a need for increased revenue. The targeted level of expenditure is in keeping with revenue levels and not necessarily informed by actual need.

The 3.5 percent projection for capital spending is too limited by revenue levels, and might be insufficient to help build-out a more robust infrastructure framework to facilitate growth.

The big questions are: How will we get there? Is the expenditure high enough given the known challenges in the country and, most important, how does the stated policy position of not increasing taxes reconcile with the increase in revenue? I believe it is this analysis that is demanding clarification. There is a significant tension between the stated desire, the projected numbers and the global environment. Currently it will be difficult for the country to realise the economic growth that will automatically create more buoyancy in revenue. If there are no tax increases, and the effort is largely limited to enforcement, is there confidence that these targets will be met? In addition, if we are unable to move in the direction of the stated targets, what effect will this have on government debt stock, and its ability to finance the current and projected deficits.

Is there a need for greater clarity? The answers all inform the policy stance, favourable or otherwise.

SEE PAGE FIVE

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Thursday, February 17, 2022, PAGE 3

GOV’T: END TO ‘UNDUE INFLUENCE’ AT BAMSI

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A CABINET minister yesterday pledged that “undue political influence” will be eliminated at the Bahamas Agricultural and Marine Sciences Institute (BAMSI) via new legal reforms.

Clay Sweeting, minister of agriculture, marine resources and Family Island affairs, told Parliament that the BAMSI Bill will give the Institute more autonomy to manage its own operations while removing political and

other arbitrary influences over recruitment and policy.

“This BAMSI Bill 2022 will remove the ‘undue influence’ that parliamentarians/ministers and government have on the daily operations of the Institute. No more calling the Member of Parliament or the minister to influence who gets accepted, hired or fired,” he promised.

“The BAMSI Bill 2022 is setting the legal framework to ensure that the actions of the Board of Directors and its president is transparent and accountable. The Board will be required to submit annual reports of the institution’s progress.

CLAY SWEETING “The Board will be mandated to prepare a full audit no less than three months following the beginning of each fiscal year. The

reporting of which will be laid on the table of this House. Transparency and accountability.”

Mr Sweeting said BAMSI’s role in training a new generation of Bahamian farmers, as well as generating research and data to support agriculture’s direction in The Bahamas, will help the country’s ambitions to boost food security post-COVID and slash its $1bn annual food import bill.

“Our annual food import bill from America alone continues to be in excess of $620m, and [it is] almost $1bn globally. This is a high price tag. Imagine being able to reduce this bill and

reinvest in the savings and the growth of agriculture and mariculture,” he added.

The minister then criticised the former Minnis administration for leaving BAMSI’s farm in a condition akin to an “eerie scene from a horror movie”. Mr Sweeting added: “Over the past four years there has been a considerable increase in budget at BAMSI, but we are not seeing where this increase led in any way towards increasing our growing capacity.

“I’ve said in this place before that upon coming to office, we met BAMSI in a poor state. Over the period of four-and-a-half years,

and despite an increase in budget, there are a several shocking realities.

The beautiful buildings constructed were without electricity and, to facilitate the tour of the campus, the generator had to be turned on.

“All the furniture to equip the buildings laid on the floors, in the same boxes they were shipped in, catching dust. The once-thriving aquaponics site looked abandoned, brood stocks were drastically reduced, and the entire farm looked like an eerie scene from a horror movie.”

Kalik maker back to $9.4m profitability

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A REVIVING economy and tourism industry saw Commonwealth Brewery enjoy a positive $15m bottom-line reversal in 2021 as it returned to profitability after the blows inflicted

by COVID-19.

The BISX-listed Kalik producer, in a statement released yesterday, said it generated comprehensive net income of $9.4m for the 12 months to endDecember 2021 compared to a $5.7m loss in 2020. The prior year was impacted by COVID-19 lockdowns and

associated restrictions, plus border closures and the tourism industry’s shutdown for several months.

And, with the economy re-opening, Commonwealth Brewery said its return to profitability had been driven by an upswing in revenues. Top line income was up 26 percent in the 2021 fourth quarter compared to the same period in in the prior year.

“Key drivers for the continued growth were a strong festive season, further easing of COVID-19 related restrictions and continued economic recovery, led by a rebound of the tourism sector,” the

vertically-integrated manufacturer, retailer and wholesaler said.

“New trends in retail and off-premises channels have demonstrated rapid improvement, driven by a shift in consumer spending to home and small-gathering consumption rather than at events attended in large numbers.”

Commonwealth Brewery added that it was not immune from the inflationary pressures currently afflicting the Bahamian economy, disclosing that operating expenses increased to $27m - a rise of 19 percent - in the fourth quarter due to

COMMONWEALTH BREWERY increased production and associated costs. Global supply chain disruption has increased the cost of goods and production materials.

The company’s profits for the three-months to endDecember stood at $3.3m, a 27 percent increase on the prior year’s $2.6m. “The

outlook for 2022 remains cautiously optimistic amidst the COVID pandemic due to the Omicron variant, inflationary pressure and global supply chain constraints,” Commonwealth Brewery said.

“Management will continue to closely monitor

its business strategies as we navigate the ongoing market volatility whilst building for the future.

Commonwealth Brewery will continue to invest in our brands, technology, people and the community as part of our long-term strategy.”

PAGE 4, Thursday, February 17, 2022

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BAHAMIAN ENTREPRENEURS EXPAND VIA HOT SAUCE LINE A BAHAMIAN business yesterday revealed it has expanded into hot sauces with the launch of its Guavalava brand, which is being sold from its West Bay Street retail outlet.

The New Duff, in a statement, said the sweet and spicy guava hot sauce can be used to fire up numerous dishes such as conch fritters and wings and ribs.

Kendrick Delaney, the New Duff’s chief executive and owner, said in a statement: “It’s really important for us to keep the spirit of innovation alive

when it comes to product development.

“Hot sauce has, of course, been done before, but whenever we create something new we want to not only keep Bahamian tastes in mind but we also want to have the flavour profile be unique and have international appeal as well.”

The company, also now serving breakfast sandwiches and lunch, has also started accepting international tour groups and seen an uptick in business that has been aided by the easing of

COVID-related restrictions and the rebounding tourism market.

Lazar Delorenzo Charlton, the New Duff’s co-owner with responsibility for business development and public relations, added: “We were all really excited about the release of our hot sauce.

It’s only the beginning of a line of sauces that we hope to launch over the course of the year, and what keeps us going is the absolutely amazing response we’ve had from both the Bahamian public and our international visitors that

GUAVALAVA on the shelves of The New Duff on West Bay Street. keep scooping it off the shelves.

“We pride ourselves on building our company with superior products, and we’re happy that the support of our loyal customers has helped us do just that with Guavalava as well. Customer satisfaction through innovation is at the core of our business development model.”

Ryan Lighbourne, coowner with responsibility for operations, added: “We have a lot in the pipeline this year and, as excited as we are, we’re keeping the laser focus on keeping the ship steady and keeping the customers happy with what we’re now known for - fantastic products. Next stop for Guavalava is getting it on grocery store shelves across the island, and then the country.”

The New Duff continues to have all four flavours of its fresh-frozen duff in the freezer section of Fresh Market Harbour Bay and Fresh Market Old Fort Bay.

BAHAMIAN Olympic swimmer, Elvis Vereance Burrows, shows off his bottle of Guavalava.

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Thursday, February 17, 2022, PAGE 5

BAHAMAS MAKES PRESENCE FELT AT CAPTIVES CONFERENCE THE Bahamas Financial Services Board (BFSB) was a gold sponsor at a major captive insurance conference that drew a strong presence from this nation.

The 2022 World Captive Forum (WCF), held in Miami from February 9-11, brings together captive managers, investment managers, reinsurers and brokers as well as industry regulators and government officials.

Kencil McPhee, the Insurance Commission of The Bahamas (ICB) deputy manager of supervision, participated in the conference’s regulatory update session. He was be joined by other regulators including Debra Walker, senior deputy commissioner, North Carolina Department of Insurance; Sandy Bigglestone, director of captive insurance, Vermont Department of Financial Regulation; and Sean O’Donnell, director of financial examination, District of Columbia Department of Insurance.

Besides Mr McPhee, the Bahamian group present included Michele Fields, the ICB’s superintendent of insurance (ICB); Phylicia WoodsHanna, the Government’s director of investments;

PICTURED L to R: Tanya McCartney, chief executive and executive director, BFSB; Michele Fields, superintendent of insurance (ICB); and Sonia Brown, chairperson of the (BEAAP).

Senator Randy Rolle; and Tanya McCartney, chief executive and executive director, BFSB. Private sector representatives included the BFSB’s captives working group chair, Guilden Gilbert, also chief executive of CG Captive Managers, and Rayon Brown, managing director and consulting actuary of Nassau Captives.

Ms McCartney said: “There remain opportunities for us to grow as a captive domicile. As we promote the jurisdiction

PICTURED from L to R: Senator Randy Rolle, consultant, Ministry of Tourism, Investments and Aviation; Tanya McCartney, chief executive and executive director, BFSB; Phylicia WoodsHanna, director of investments, Bahamas Investment Authority; and Rayon Brown, managing director and consulting actuary, Nassau Captive.

A PERILOUS PATH TO RECOVERY

FROM PAGE TWO

The sustainable way forward must be seeded with notable reforms. There are a number of great reforms noted in the FSR. However, when juxtaposed against a position of “no increases in taxes”, their attainment becomes unclear. It is my personal view that the direction is the right one.

Acknowledging the tensions at play, I believe it is best for the administration to show its cards early. The destination has been laid out. Now attention should be given to the path to get there and, equally important, the nature of the

journey. It will be perilous, it will be challenging, it will come with some measure of pain, but what is critical to ask and answer is whether it is necessary. If the answer is ‘yes’, as I anticipate it will be, then clearing up the messaging is fundamental and urgent. Preparing the country for the way ahead is crucial, and embarking on that journey early is critical.

The cost of doing otherwise will be detrimental to securing sustained resiliency and good fiscal health.

NB: Hubert Edwards is the principal of Next Level Solutions (NLS), a

management consultancy firm. He can be reached at info@nlsolustionsbahamas. com. Hubert specialises in governance, risk and compliance (GRC), accounting and finance. NLS provides services in the areas of enterprise risk management, internal audit and policy and procedures development, regulatory consulting, anti-money laundering, accounting and strategic planning. He also chairs the Organisation for Responsible Governance’s (ORG) economic development committee.

internationally as a financial centre, we will continue to outline the benefits that The Bahamas offers as a captive domicile. We were pleased that the Ministry of Tourism, Aviation and Investments supported our participation at the World Captive Forum.”

Through the BFSB’s captive working group, industry stakeholders continue to engage with policymakers to ensure that attention is given to the opportunities presented by this particular financial services niche.

Captives have long been used to control and manage risks faced by companies and professional groups and, in their simplest form, provide a mechanism for self-insurance. Risks on a company’s balance sheet may not align with its core business, they are transferred to a captive via an insurance contract.

While it is often felt that captives are only formed by large public companies, there is a growing trend for private firms to own them, too.

PAGE 6, Thursday, February 17, 2022

HEALTH TRAVEL VISA ‘WORKED BLOODY WELL’ FROM PAGE ONE

of providing the Davis administration - which had frequently blasted the Health Travel Visa while in Opposition and called for it to be abolished - with any major ammunition to use on further attacks against its predecessor.

Challenging critics to “name one government agency that processes 90,000 people per month”, as the Health Travel Visa did during his final ten months as minister, Mr D’Aguilar pointed out that the initiative had created a near-$10m windfall for the Government with revenues of $34.442m exceeding total expenses of $24.858m.

And visitors/tourists accounted for 82.8 percent, or $28.51m, of that revenue, which Mr D’Aguilar said showed that the Health Travel Visa’s financial burden fell largely on overseas nationals as opposed to Bahamians.

Locals, including residents, paid a collective $5.928m or just 17.02 percent of the total in the ten months between November 2020 and August 2021.

The former minister said the Auditor General’s findings also showed that the

Progressive Liberal Party’s (PLP) targeting of Kanoo, the digital provider that processes Health Travel Visa payments on the Government’s behalf, had no merit.

Kanoo’s $456,993 total fee for the ten months to August 2021, according to the report, was equivalent to just 1.3 percent of total revenues and 1.8 percent of all Health Travel Visa expenses. The latter paled against the $16.783m paid to CG Atlantic Insurance, the health insurance provider, which accounted for 67.5 percent - or over twothirds - of expenses.

“From a macro point of view, the Health Travel Visa was tremendously successful in achieving the goal it was intended to achieve,” Mr D’Aguilar told Tribune Business. “It was to open up the borders and allow visitors to come into the country and provide a mechanism by which persons could be tested and their COVID-19 status ascertained before they arrived.

“In a very short period of time, five to six weeks, we had to develop an online portal that allowed persons to apply and get a very speedy response. There had

to be no paper, very little human interaction and a very quick response. We had to compete with other destinations.

“While requiring a Health Travel Visa, we had to make the process as seamless and efficient as possible and it may be that, coming out of the gate in November 2020, there were a few bumps in the road but, by and large, it worked really well. In the ten months that I was minster of tourism, we processed over 900,000 applications.”

Some 77.8 percent of those applications, or 704,868, were visitors while the remaining 22.3 percent or 201,303 were Bahamians and residents returning home from abroad. Mr D’Aguilar conceded that the overriding imperative to re-open tourism, and get the Bahamian economy moving again, may have meant resulted in some procedures not being followed but argued that any infractions were minor and done for the greater good.

“The reason why Kanoo was selected, I can tell you, is because the local programmer we were using, Think Simple, as we drew nearer to the November 1 launch and figured out we

needed to charge a fee..... we only made a decision to charge for this visa on October 15, 2020,” Mr D’Aguilar explained.

“You’re ten days out from taking the portal live.

If people were coming in on November 1, we had to open the portal five to six days before we pulled the trigger on this visa. We had to figure out how do we get this to work, and their [Think Simple] suggestion was that we needed an online payments provider to be the link between the online portal and getting physical cash.”

While the Auditor General’s Office flagged concerns that it was Kanoo, and not the Government, paying other Health Travel Visa participants what they were due from the fees collected, Mr D’Aguilar said he had received legal advice that the law allowed him to enter into such contracts (see other article on Page 1B).

As for concerns that the Health Travel Visa fees were not being paid to the Public Treasury on a timely basis, Mr D’Aguilar conceded that this had been the case when the initiative started because the Ministry of Tourism and its private sector partners were “focused on the front end” and ensuring the customer experience was as smooth as possible.

“Once we got that under control we focused on the accounting, the back end,

and by mid-2021 the payments were going to the Treasury on a timely and regular basis,” the former minister added. “We took some time to catch up. We were a couple of months behind. It was a brand new program. We had to figure out how to make it work.

We created it from scratch.

“The point is no money went missing. Was it slow getting to the Treasury?

Yes, but they [the Auditor General’s Office] never said a penny was missing. It was all properly accounted for. They couldn’t find any missing money. And all that noise about Kanoo... I could never understand it.”

The Auditor General’s report referred to a $62,471 “discrepancy” or understatement of revenues, which it said could potentially represent some 2,000 visitors.

Mr D’Aguilar blamed this on system “misclassifications” during the Health Travel Visa’s initial stages, with some visitors staying longer than five days being charged a $40 fee instead of the required $60.

“Any time you develop from scratch a system that generates $34m, and have six to seven weeks to do it, it’s not going to be perfect coming out of the gate,” he reiterated. “But we caught up, and not a cent was missing. Money was secure, and every month now it gets handed to the Treasury.

“I can tell you that we made a $10m surplus that

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can be contributed to the fight against COVID-19. It did not cost the taxpayer a dollar, and generated a surplus of $10m to assist in the fight against COVID. And 83 percent of that money came from non-Bahamians.

Only 11 percent of that revenue came from citizens of The Bahamas. Almost 90 percent of the revenue came from non-Bahamians.

“I don’t lose money.

Dionisio D’Aguilar does not lose money. I was told to make it self-funding, and there was a $1m per month surplus because revenues exceed expenses.” Mr D’Aguilar said then Health Travel Visa’s value was shown by the fact that the Davis administration had retained it, although Bahamians and residents are now exempt from paying fees.

“You name me one government agency that processes 90,000 persons a month. It worked bloody well,” he told Tribune Business. “Now you get a response in two to three hours or less.

“It was very important to put it in the hands of the Ministry of Tourism because they understand the importance more than most of getting this right.

We couldn’t have people waiting three to four days for a response.”

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Thursday, February 17, 2022, PAGE 7

BOB DEFEATS ‘IRREGULAR’ $6M DEFAULT JUDGMENT FROM PAGE ONE

it, resulting in its various entities suffering what was initially claimed to be $14.085m in losses and damages.

David Edward Jennette III, as trustee and general counsel to Seaport, one of the MRC entities, had sought in 2009-2010 to secure credit facilities from Bank of The Bahamas as a means to refinance nonbank loans that had become “onerous “ to the group.

He dealt with John Sands, Bank of The Bahamas’ then-senior manager for the northern Bahamas. However, Indira Deal, the bank’s legal counsel, alleged in an affidavit filed as part of the dispute that Mr Sands had been dismissed in May 2011 “for gross misconduct, and he was previously suspended for his role in extending unathorised credit facilities to Seaport and individuals related to Seaport.

“In addition, a report was made to the Commercial Crimes Unit of the Royal Bahamas Police Force in September 2011 in relation to potentially fraudulent transactions entered into by Mr Sands and individuals connected to Seaport and the fifth plaintiff, Meridian Research Corporation,” Ms Deal further claimed.

Those “individuals” were not identified, and there is no suggestion Mr Gomez did anything wrong in relation to this matter. Justice Hanna-Adderley’s judgment makes no mention of what happened to the police investigation.

However, Mr Jennette and the MRC Group companies successfully obtained a default judgment against Bank of The Bahamas on March 31, 2016, after it

failed to appear in response to the action it filed over the loans dispute and associated damages.

That first default ruling was set aside prior to thenacting Supreme Court justice, Andrew Forbes, ordering that the dispute proceed to trial in traditional fashion before the Supreme Court. Yet Bank of The Bahamas failed to submit its defence in time, leading to another default ruling.

That was granted three years ago in October 2017, and Mr Jennette and the MRC Group subsequently obtained the $6m-plus damages award against Bank of The Bahamas on March 7, 2019, before moving to enforce it. The BISX-listed institution, though, successfully persuaded the deputy Supreme Court registrar to set that aside, too, leading to the appeal before Justice Hanna-Adderley.

Ms Deal, in her affidavit, sought to explain Bank of The Bahamas’ failure to meet the Supreme Court’s deadlines by disclosing that Chancellors Chambers, the law firm originally hired to defend its interests, had split-up by early January 2018.

“One partner left and joined the chambers of Damian Gomez QC, who is connected to the plaintiffs in these proceedings as a beneficial owner of 50 percent [of] Seaport Construction and may have an interest in the other plaintiff companies, and the other members of Chancellors formed a new chambers called Providence Law,” she recalled.

“Providence and the bank appear to have mistakenly believed that the transfer of the plaintiffs’ portfolios to Resolve meant that the

bank was no longer dealing with the plaintiffs’ claims against the bank, and that Providence were therefore instructed to ceases take any action in relation to the plaintiffs’ claims.”

Resolve is Bahamas Resolve, the Governmentcreated special purpose vehicle (SPV) to which Bank of The Bahamas’ toxic commercial loans were transferred in 2014 and 2017 as part of the two taxpayerfinanced bailouts of the BISX-listed institution. The MRC Group loans were among the facilities passed to Bahamas Resolve.

Providence Law subsequently informed the KPMG accounting firm, Bank of The Bahamas’ external auditors, on August 22, 2018, that the judgment in default of defence had been entered in favour of MRC Group and Mr Jennette.

The letter was copied to the bank’s financial controller, Jihanne Hosmillo-Williams, but she had not been previously involved in the legal battle and “and appears not to have realised that the bank needed to take any action”.

This, Ms Deal asserted, may have been because Providence Law informed her that the loans had been transferred to Bahamas Resolve. As a result, Bank of The Bahamas’ legal department only became aware of the situation on April 29, 2019, some seven weeks after the $6.049m damages were awarded to MRC and Mr Jennette.

Justice Hanna-Adderley found in favour of submissions by Dawson Malone, the Callenders & Co attorney representing Bank of The Bahamas, that the

Supreme Court’s deputy registrar had the necessary powers to set aside the default judgment.

And she also backed Mr Malone’s contention that Bank of The Bahamas has a strong and arguable defence to the claims against it.

“The plaintiffs have already accepted that many of the alleged claims are spurious in reducing their claims from approximately $14m to approximately $3.7m at the assessment of damages (when the bank had not

even entered its defence),” he had argued.

Bank of The Bahamas, in its defence, said a probe by the Graham, Thompson & Co law firm that was carried out on its behalf “concluded that there was good reason to believe” that several borrowers connected to the MRC Group, and aided by Mr Sands, had “induced the bank to make loans on the basis of fraudulent information presented to the bank”.

And Seaport had been placed in receivership

under Philip Galanis, the HLB Galanis & Company accountant and partner, via a Supreme Court order in 2011. “ “The order restricting Seaport from dealing with its assets, and placing it in receivership, was made as a result of a claim by Mr Damian Gomez in relation to fraudulent conveyances

by Seaport to third parties similar in kind to those described above,” Bank of The Bahamas’ defence asserted.

PAGE 8, Thursday, February 17, 2022

THE TRIBUNE

AUDITOR GENERAL HAILS HEALTH VISA’S ‘VISION’

FROM PAGE ONE However, the report did raise concerns over the lack of competitive tendering for Health Travel Visa contracts; the fact vendors were not being paid directly by the Government; the use of verbal as opposed to written contracts; and delays in transferring fee income to the Public Treasury.

“COVID necessitated some realities that are not reflected in the financial regulations,” the Auditor General’s Office said in its report. “The Ministry of Tourism failed to comply with the regulatory requirements for the procurement of goods and services. Seeking competitive bids is a

mechanism intended to provide some assurance as to the reasonableness of costs of goods and services.

“Considering the cost of the travel insurance to CG Atlantic of $16.783m (net of VAT), representing 48.7 percent of total revenue, it would have been prudent to test the marketplace by seeking at least one other quote despite the pressing time limitations.”

The Government’s Financial Regulations 1975 require that all contracts for goods and services worth $250,000 and above be approved by Cabinet, but the Ministry of Tourism in its response to the Auditor General’s findings argued that the imperative of

re-opening tourism and the wider Bahamian economy meant some corners had to be cut.

“The Ministry acknowledged the lack of competitive bidding, and the failure to execute contracts prior to the launch of the current version of the Bahamas Health Travel Visa,” it replied. “However, management strongly believed that there was simply insufficient time to develop a Request for Proposal, receive bids and negotiate contracts in the designated timeframe.

“In addition, given the newness of the health visa product and the lack of any examples of how much time would be necessary

to launch and manage it, management felt it was more prudent to allow the contractors at the outset to develop the Bahamas Health Travel Visa on a ‘time spent’ basis and negotiate contracts three to four months after launch, once the scope of their work was better understood.”

The Auditor General’s Office noted the Ministry of Tourism’s description of the Health Travel Visa as “a ‘game changer’ for The Bahamas” in terms of the data it produced on travellers, both Bahamian and foreign. “We were informed that five days before the country was scheduled to re-open in November 2020, the program lacked a payment gateway,” the report added.

Kanoo, the digital payments provider, was brought in to provide this service, and the Auditor General’s Office said the compensation provided to it and other private sector contractors “appear to be within industry norms”.

However, the report said the Ministry of Tourism’s instruction for Kanoo to pay other private sector vendors via monthly payments from the former’s account was “inconsistent” or contrary to established practice. It said such payments should be made by the Public Treasury.

“The current revenue management administration of the Bahamas Health Travel Visa with the Government having limited control over its own revenue collection and related revenue expenditures is deemed critical and requires redress,” the Auditor General’s Office argued.

“This concern warrants the resolution at the Ministry of Finance, the Public Treasury, Ministry of Tourism and the Office of the Prime Minister in which the Department of Digitisation and Transformation is under.”

The Ministry of Tourism responded that the Promotion of Tourism Act’s section 3 (e) gave

the minister the ability to enter into any contact he/ she deems necessary, while it has always operated accounts that have received and paid out money.

The Auditor General’s Office, meanwhile, noted that there was a $30,000 difference between Health Travel Visa spending recorded by the Ministry of Tourism in July 2021 and that noted by the Public Treasury’s systems. And the latter recorded some $23,955 less than the $10.784m that the Ministry of Tourism said had been sent to the Public Treasury in Health Travel Visa fees.

An overpayment to Ports International of $43,948 for rapid antigen test kits was also noted, although the Ministry of Tourism said this would be “netted out” by the contracts end.

Concerns were also raised that the source code listings for the Health Travel Visa website were the property of the developer, Think Simple, and not the Government.

PUBLIC HOSPITALS AUTHORITY ADVERTISEMENT VACANCY DEPUTY MANAGING DIRECTOR SERVICE DELIVERY, POLICY, PLANNING AND EDUCATION CORPORATE OFFICE The Public Hospitals Authority (PHA) invites applications from suitably qualified persons for the post of Deputy Managing Director, Corporate Office with responsibility for Service Delivery, Policy, Planning and Education. The PHA comprises of three public hospitals of The Bahamas (Princess Margaret Hospital, Grand Bahama Health Services and Sandilands Rehabilitation Centre) Ten community clinics in Grand Bahama, National Emergency Medical Services and Supplies Management Agency.

Job Summary The Deputy Managing Director will work directly with the Managing Director at the corporate level to achieve the overall mandate of the Public Hospitals Authority.

The Deputy Managing Director will provide direct support to the Managing Director in the management of healthcare service delivery, strategic planning, policy formulation, health education, continuing education and other areas of responsibility as identified by the Managing Director.

KEY ACCOUNTABILITIES FOR THIS ROLE INCLUDE BUT ARE NOT LIMITED TO THE FOLLOWING: • Assisting in the management of PHA objectives, at corporate and institutional levels; • Assisting with the acquisition and maintenance of physical, financial and human capital for service diversity, improvement, expansion and sustainability in meeting growing healthcare demands, subject to Government-approved annual budgets; • Providing managerial oversight for the resolution of critical business issues including quality and safety concerns; • Facilitating continuous improvement in innovation, flexibility, service diversity, expansion and sustainability; • Encouraging a proactive, innovative public relations programme to anticipate health service needs, and foster optimum customer relations and satisfaction; • Managing work towards public sector health-services-system targets; • Providing managerial oversight for the formulation of policies directing and regulating PHA’s healthcare operations; • Providing managerial oversight for policy development and strategic planning to achieve Board policies and directives and PHA’s vision and mission; • Supporting the management at PHA’s institutions in the development and implementation of efficient and effective systems for delivery of comprehensive preventive, curative, rehabilitative, emergency and allied health care services; • Oversight for the monitoring and evaluation of PHA’s operational systems and healthcare outcomes; • Providing oversight for the development and implementation of health education programs and initiatives.

Education/ Experience: • Master’s Degree in Health Services Management or equivalent; PhD is a plus.

• A minimum of Ten (10) years’ management experience at a senior level.

Competency Requirements: • Excellent Leadership skills; • Excellent Communication (oral and written), and interpersonal skills; • Strong management, organizational and analytical skills; • Knowledge of regulatory requirements and compliance standards.

The Deputy Managing Director will report to the Managing Director.

Letter of application and Curriculum Vitae should be submitted to The Director of Human Resources, Public Hospitals Authority, 3rd Terrace West, or jobs@phabahamas.org, no later than 23rd February, 2022.

THE TRIBUNE

RETAILER: PRICE RISES ‘HURTING OUR HEARTS’

FROM PAGE ONE merchants cut their margins and mark-ups to help combat surging inflation.

“In order for you to maintain your business you have to cover overhead expenses.

That has to be taken care of.

Those expenses only come through your profits and revenues. If you don’t make anything, the Government won’t make anything and you’ll have to close down your business.

“None of the retailers wants to over-price our goods. Everybody wants to maintain reasonable prices and wants to be competitive in their prices. If you need a particular mark-up to sustain your business and to keep your operation going, then that’s what you have to do. It’s hard on our overheads.”

Mr Beneby listed typical overheads as including bank loan payments, rent, real property taxes, Business Licence fees, insurance, electricity and other utilities, labour (salaries) and National Insurance Board (NIB) contributions.

“All of that has to come out of the business,” he added. “If you can’t get it you might as well lock the door and go home because it’s unsustainable. That’s the reality of it. The fact of the matter is that there are price increases all over the world, not just in The Bahamas.

Folks are carrying on like it’s just in The Bahamas, but it’s the whole world.”

Mr Beneby reiterated that, as a country that imports virtually all it consumes, The Bahamas is effectively a price taker and has little control over the cost of landed goods before they arrive in this nation.

“We are not a producing country; we are an importing country,” he added.

“When prices increase we try and shop around for good prices because we want to keep prices down as much as possible. Some weeks we’re paying $100 for a case of limes, $100 for a case of eggs.

“At some point it will level off and begin to go back down. But the reality is that I don’t think high prices have even peaked yet, not from what we’re hearing in the marketplace and around the world. That’s just the way it is. It’s sad, and we don’t like to see the hurt.

“The way the prices are increasing, we sometimes have to close our eyes when we price the items. It hurts our heart to see what some of the price increases are.

There’s only so much we can do. If you’re talking about price controls, there’s no price control on electricity, there’s no price control on Business Licence fees.

The Government doesn’t put price control on those things.”

Mr Beneby spoke out after Mr Sumner, in what sounded like a call to further extend price controls, said: “If a certain food store chain brings in these foods for the country, we need to sit down and let them rationalise with us - either on the wholesale level or the retail level - as to how they get to the pricing before the items go to the shelves.

“If we do that we can minimise on some of the pricing that is going up. I don’t think we are really dealing with price gouging. It is more of a mark-up system that maybe is not consumer friendly.

“We know for a fact that the mark-up price on breadbasket items is only 23 percent. That is documented and that is law, so the items that are being deemed as breadbasket items, the mark-up is 23 percent. Now, there is no set mark-up for other items other than breadbasket. So we don’t know if they are marking-up the other things 30 percent, 40 percent or even 50 percent.”

Mr Sumner continued: “This is something that is critically important. I think it is something that needs to be looked at to see how the merchants or how the owners reached the prices that they are targeting on

the Bahamian consumers and if they can do that I think and maybe perhaps the government could revamp the law a bit. I think the price control law needs to be brought up to speed a bit.

“We don’t want to overburden the retailers and wholesalers because they do have overhead expenses and staff to pay, etc, but on the same token the consumers have to survive and are bearing the cost of these high prices.”

The Prime Minister is understood, according to this newspaper’s sources, to have met with representatives of major wholesalers yesterday, including D’Albenas and Lightbourn Trading, as well as retailers such as AML Foods, to discuss possible ways of easing inflationary pressures on foods prices.

Price controls were initially imposed by the Government to prevent what it viewed as a unscrupulous merchant class from exploiting lower income Bahamians by unreasonably hiking the price of food staples and other products, thus placing them out of reach while undermining living standards.

However, opponents argue they are an out-dated and distortionary mechanism that create more unintended consequences than problems they solve.

They can result in product shortages, while retailers and wholesalers have to increase prices and margins on non-price controlled items to compensate for selling these goods as effective “loss leaders”.

Michael Halkitis, minister of economic affairs, recently argued that the Government “cannot control the market” when asked whether it planned to expand price controls as a measure to combat inflation.

Inflation’s impact here is likely to be worsened by The Bahamas’ consumption-based tax structure, which means that import tariffs and border VAT

- which are charged as percentages - will also increase.

The amount of VAT dollars paid by the end-consumer will also increase.

The one mechanism at the Government’s disposal to mitigate inflation’s impact is to thus reduce taxes on essential commodities, such as food and fuel, but it is

Thursday, February 17, 2022, PAGE 9 highly unlikely to do this as the post-COVID fiscal crisis means it needs every cent of revenue it can get.

Inflation, described as a sustained rise in prices across the board, devalues savings and causes particular problems for those on fixed incomes such as pensioners. It also raises the cost of living, reduces living standards and narrows disposable incomes, with those

less well-off inevitably hit hardest.

And, with many Bahamian households still struggling to rebuild jobs, livelihoods and incomes following the COVID-19 pandemic, the spectre of inflation could not have emerged at a worse time.

It will also likely result in increased demands on the Government for social assistance.

PAGE 10, Thursday, February 17, 2022

THE TRIBUNE

BISX-LISTED INSURER IN 37% PROFIT JUMP FROM PAGE ONE season, and Bahamians just simply wanting to get on with life led to renewed activity in both our business segments for the 2021 fourth quarter.

“Stalled construction projects began to restart in earnest and people seemed to re-establish many of their normal pre-pandemic activities. Both our underwriting and agency divisions reflected these developments by registering double-digit gains and boosting total net income

by 37 percent over the previous year.”

J S Johnson, which incorporates the performance of Insurance Company of The Bahamas (ICB) into its results, disclosed that net income for the year to end-December 2021 rose by more than $2m - from $6.58m in 2020 to $8.999m last year.

“Although we witnessed a 10 percent increase in other operating expenses from $4.538m to $4.995m due to ongoing COVID measures, this was offset largely by a 33 percent decrease

in claims incurred from $1.839m to $1.225m, resulting in a slight decrease in total expenses. This, coupled with a 9 percent increase in total income, yielded the increase in profitability,” Mr McKellar said.

Basing his renewed optimism on The Bahamas’ improved tourism performance and outlook, he added: “The nation’s tourism industry began to show signs of renewal in the last quarter of 2021 as well.

According to Central Bank figures, inbound visitors

to our shores shot up from 13,381 in Nov 2020 to 383,706 for the same period in 2021.

“Another key indicator of our tourism health - total room nights sold - also experienced an uptick in December, posting a more than two-fold increase over the previous year (50,000 to 124,000). Even outbound traffic from the country to the US increased by 419 percent (83,115 in 2021 versus 16,009 the previous year) as Bahamians once again ventured from our shores after a long hiatus.”

JS JOHNSON

KEY DETAILS AWAIT AS NY EYES $200M POT BUSINESS EQUITY FUND

By JENNIFER PELTZ Associated Press NEW YORK (AP) — In an ambitious move to make its new marijuana industry equitable, New York is proposing a $200 million fund to help entrepreneurs of color and some other groups

get into the business. But officials haven't yet nailed down some components that experts say are crucial to making the investment effective.

Gov. Kathy Hochul's proposal, unveiled last month, would be among the largest sums any state has

committed to try to ensure diversity and social equity in the fast-growing legal pot business. The plan also is somewhat unusual for relying on money from private sources. In one recent policy document, the Democratic governor's administration vowed to create "the most

diverse and inclusive" marijuana industry in the nation.

"New York will lead where many other states have fallen short," it said.

Would-be equity applicants hope so. But they're anxious for answers about who would provide private dollars and whether the

money would help cover the costs of seeking a license, not just start-up expenses for people who can afford to secure one.

"Two hundred million dollars sounds great," says Amber Littlejohn, the executive director of the Minority Cannabis Business Association, but "it's really not so much the amount as it is the timing of the funding and services. And if that comes after the point of application, its ability to be impactful is really limited."

Licensed sales are expected to launch sometime next year in New York, where adult recreational use of the drug was legalized last March.

New York's equity program could give both grants and loans to eligible businesses, which would include those owned by women or minorities, struggling farmers, disabled veterans and people from communities that endured heavy pot policing.

THE TRIBUNE

Thursday, February 17, 2022, PAGE 11

STOCKS END MIXED AS TRADERS PARSE NEXT RATE MOVE BY THE FED

By DAMIAN J. TROISE AND ALEX VEIGA AP Business Writers STOCKS shook off an early slump and ended mixed on Wall Street Wednesday after minutes from the Federal Reserve’s latest policy meeting showed policymakers still leaning toward moving decisively to fight inflation.

Trading was choppy following the midafternoon release of the Fed minutes.

The S&P 500 wound up 0.1% higher after having been down 0.9% in the early going. The Dow Jones Industrial Average slipped 0.2% and the Nasdaq composite fell 0.1%.

Treasury yields bounced around a bit as traders tried to parse the latest update from the Fed. The 10-year Treasury yield ended up at 2.03%, just below where it was late Tuesday.

Wall Street has been looking for clues about how much and how quickly the central bank will begin raising interest rates. Traders see a 44% chance for a first hike in March of half a percentage point, double the traditional move.

In their discussion of the outlook for monetary policy, most Fed policymakers suggested that a faster pace of increases in the central bank’s benchmark short-term interest rate than what the Fed followed after its last rate hikes in 2015 “would likely be warranted, should the economy evolve generally in line with the Committee’s expectation.”

Policymakers also noted during the meeting that it would be appropriate for the Fed to make “a significant reduction” in the size of its balance sheet.

“In markets, timing is everything, and the delayed reaction from the Fed has investors convinced that aggressive policy tightening is on the horizon,” said Charlie Ripley, senior investment strategist for Allianz Investment Management.

The S&P 500 rose 3.94 points to 4,475.01. The benchmark index was coming off a broad rally on Tuesday that snapped a three-day losing streak.

The Dow fell 54.57 points to 34,934.27, while the Nasdaq lost 15.66 points to 14,124.09.

Small-company stocks rose. The Russell 2000 gained 2.85 points, or 0.1%, to 2,079.31.

Gains in energy stocks, retailers and other companies that rely on consumer spending accounted for much of the S&P 500’s modest rise, keeping losses in the technology and communications sectors in check.

Most Fed officials agreed during their meeting last month that faster interest rate hikes would be needed “if inflation does not move down” as the central bank’s policymaking committee expects. As recently as December, Fed officials forecast that inflation, based on their preferred measure, would fall to an annual rate of 2.6%. It is currently 5.8%.

IN this photo provided by the New York Stock Exchange, traders work on the floor, Wednesday Feb. 16, 2022. Stocks fell in morning trading on Wall Street Wednesday, a day after a broad rally snapped a three-day losing streak.

Photo:Courtney Crow/AP

February Point Resort Estates in picturesque Great Exuma is seeking applications for the following positions: -Experienced Landscaping Manager -Irrigation Technician Qualified persons are asked to send their resumes to the following email address:

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NOTICE

NOTICE is hereby given that KIM BERLEY MONDESIR of Marsh Harbour, Abaco, 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 10th February, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

But Fed policymakers differ on how quickly to raise rates. On Monday, James Bullard, president of the Federal Reserve Bank of St. Louis, repeated his call for the Fed to take the aggressive step of raising its benchmark short-term rate by a full percentage point

by July 1. Esther George, president of the Kansas City Fed, expressed support for a more “gradual” approach. And Mary Daly of the San Francisco Fed declined to commit herself to more than a modest rate hike next month.

Most analysts expect Fed officials to raise that forecast at their next meeting, in mid-March, to reflect the acceleration of consumer prices. Inflation has reached its highest pace in four decades, hammering household budgets and wiping out the benefit of rising wages.

Rising inflation has been crimping profits and revenue for businesses in a wide range of industries. Many companies have been raising prices to offset the costs, including cereal maker Kellogg. That has raised concerns that consumers could eventually pull back spending, though the latest report from the Commerce Department shows that retail sales remained strong in January as the threat of the omicron variant of COVID-19 faded.

The government reported Wednesday that retail sales surged 3.8% last month, whizzing past the

projections of most economists. That compared to the prior month when sales slid 2.5%.

Investors brushed off the encouraging retail

sales data, but the results and other solid economic updates remain reassuring for the bigger economic picture as the Fed starts tightening its interest

rate policy,” said Liz Ann Sonders, chief investment strategist at Charles Schwab.

“The Fed is moving, period,” she said. “That’s