02192019 BUSINESS

business@tribunemedia.net

TUESDAY, FEBRUARY 19, 2019

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KP TURNQUEST

No ‘material’ impact in late EU tax changes

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE deputy prime minister has voiced confidence that the Bahamian financial services industry will not be “materially affected” by the last-minute reforms to escape Europe’s “blacklist”.

KP Turnquest told Tribune Business that the sector had been consulted on the revisions to the Commercial Entities (Substance Requirements) Act 2018 before they were passed

by Parliament with the government not expecting any further concerns to be raised.

“I think it’s more clearing up and tidying up, answering some questions and clarifying queries that the [European Union] Code of Conduct Group would have had with respect to the legislation presented, just making some issues clearer,” Mr Turnquest said.

“These matters are always fluid and negotiating points. Obviously we want to reduce the opportunity for a reasonable excuse to blacklist us, so we addressed these issues as prudently and urgently as we can. The Code of Conduct Group has been co-operative, and we’ve had fruitful discussions on the finer points they’ve raised.”

The reforms to the Commercial Entities (Substance Requirements) Act are not connected to the EU’s decision, much disputed by the Government, to last week include The Bahamas on a list of 23 nations it deems to pose a “high risk” of financial crime.

Instead, they are related to the threat by another division within the EU to “blacklist” any jurisdiction it considers to be uncooperative in the fight against global tax evasion - especially by multinational corporations.

Mr Turnquest, expressing confidence that The Bahamas has done everything it can to avoid the second EU list, said all the changes to the Commercial Entities (Substance Requirements) Act had been “passed

SEE PAGE 3

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‘Nipped in the Bud’: Brewery lays off 73

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net C O M M O N W E A LT H Brewery yesterday said a tough economy and competitive pressures from cheaper rival beers had forced it to terminate 73 staff within its 700 Wines & Spirits retail unit.

The vertically integrated, BISX-listed brewer, wholesaler and retailer said it had made redundant 53 positions on New Providence, and 20 on Grand Bahama, as it adjusts its business to prevailing market conditions that include reduced consumer spending and fierce competition from its Bahamian Brewery & Beverage Company rival.

Ron Hepburn, Commonwealth Brewery’s director of retail, voiced hope that the downsizing would not result in all 73 affected employees departing the business despite having been forced to “streamline” the 200-plus workforce.

• Would have placed increased burden on itself • By making non-profits ‘incapable’ of operating • Sector’s society services faced cut-back

COMMONWEALTH Brewery HQ He said those impacted would be able to apply for newly-created positions within the company, and told Tribune Business that the move will not impact the operations at any 700 Wines & Spirits outlet. All 56 retail sites will remain open, and Mr Hepburn said some stores were “set to open in the next month or so”.

He told Tribune Business: “If you look at our financial position, as reported in

the third quarter last year, we have been impacted by competition - mostly from imported beer brands like Bud Lite and the like. At the end of the day this is just the result of different drivers that impacted our overall business that caused us to make a decision to streamline our operations.”

Mr Hepburn’s statement indicates that the impact of Bahamian Brewery’s Budweiser distribution contract coup is now being felt

market-wide. Tribune Business reported back in 2015 that the Grand Bahamabased rival had seized the Bahamian distribution contract for Budweiser, and all brands produced

by Anheuser-Busch, from Commonwealth Brewery. The move had effectively ended a four-decade reign by Commonwealth Brewery as the Bahamian distributor for the brands produced by the world’s largest brewery.

Commonwealth Brewery, which is 25 percent owned

by Bahamian shareholders, last year also made a decision to absorb a “significant” cost by choosing to “eat” the 4.5 percentage point value-added tax (VAT) hike across its entire

CUSTOMS is moving to ensure the one-time registration for its new automated system is as “efficient and seamless” as possible following multiple complaints of delayed import clearances.

Marlon Johnson, the Ministry of Finance’s financial secretary, told Tribune Business yesterday that all businesses - not just couriers and brokers - are required to register with the Department’s new Electronic Single Window (ESW).

Arguing that this would bring “certainty and accountability” to the import and goods clearance process, Mr Johnson said Customs needed to “tie it back” to the ultimate shipment owner since they were responsible for paying due taxes.

The top Ministry of Finance official acknowledged the need for more public education on the registration process, and to “streamline” it, after several businesses complained to Tribune Business about

MARLON JOHNSON the “four times’ longer than normal” delays incurred in clearing packages vital to their smooth functioning.

Some said they had to present themselves personally at Customs, together with incorporation papers and other corporate identity documents, before they could obtain their shipments.

And concerns have also been raised that Customs

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Window (ESW). As part of that, everyone who is going to be importing has to be registered.

“It’s a one-time registration process, and we’ve been talking to Customs to find out how to simplify it. We call businesses onetime so there is certainty and accountability as far as imports are concerned, and it helps to manage Customs’ processes better.

“We do recognise that there needs to be more public education around that, and are looking at how to simplify the process and procedures to make it happen and make it more efficient and bearable for everyone.”

Pointing out that couriers and brokers were not the actual importers, but merely acting on behalf of those who were, Mr Johnson said Customs needed to “tie it

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• Top finance official pledges ‘seamless’ process • As private sector complains of lengthy delays • Business licence ‘confusion’ also addressed may be demanding valid business licences for 2019 before they will register a company, even though the private sector still has until March 31 to pay the fee.

Mr Johnson yesterday moved to ease business licence-related fears by revealing that the government had issued “clarifications” to Customs and other agencies to confirm that prior year licences were valid until end-March.

However, with only air freight subject to the registration process to-date, fresh concerns are likely to mount when the initiative is extended to sea freight - representing the bulk of The Bahamas’ multi-billion annual imports - by next month.

Mr Johnson confirmed that plan yesterday, and explained: “What’s happening is that Customs is moving to the Electronic Single

Bahamas must benefit in WTO sector openings THE Bahamas will only open up industries to foreign competitors under the WTO if doing so generates “real economic opportunities” for this nation, its chief negotiator asserted yesterday.

Zhivargo Laing, a Cabinet minister under the last two Ingraham administrations, told Tribune Business that the government will not retreat from the position that Bahamian-owned businesses must “at the very least still be competitive” with overseas rivals in any sector that is liberalised when this nation becomes a full World Trade Organisation (WTO) member.

He added that government, in partnership with the private sector, wanted to ensure all positions taken in the WTO accession talks are “both doable and winnable” and resulted in “net gains” for both particular industries and the wider Bahamian economy.

Speaking ahead of the government’s planned consultations this week with specific industries and their trade associations, Mr Laing emphasised that The Bahamas was entirely in control of its own fate in the negotiations to join global trade’s rules-setting body.

Reassuring that “nobody” can force The Bahamas to do anything, be it opening up specific services industries to foreign companies or cutting particular tariffs, Mr Laing said “it’s entirely up to us” how fast the negotiations proceed and whether this nation ultimately joins the WTO. He revealed that The Bahamas’ fourth meeting with the WTO Working Party, made up of nations interested in trading with this country, has now been pushed back by a further month from March to April 2019.

The Working Party will negotiate the terms of The Bahamas’ accession, and the delay gives the government extra time to consult

Customs moves on registration concern

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

$4.24

Web shops hit banks’ ‘dangerous’ rejection

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

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WEB shops yesterday argued it was “dangerous and counterproductive” for the majority of Bahamian banks to reject research showing the sector is “clean” with the country under attack.

The Bahamas Gaming Operators Association (BGOA), in a statement sent to Tribune Business, hit back at the rationale given by Gowon Bowe, the Clearing Banks Association’s (CBA) chairman, for its members’ continued reluctance to accept the industry’s deposits.

Arguing that Mr Bowe’s comments to this newspaper effectively “discredit” the Gaming Board’s research, the association said their timing was especially troubling given the European Union’s (EU) decision to last week brand this nation

• Say position ill-timed with Bahamas under attack • Association asserts: We’ve met KYC ‘litmus test’ • Wants to understand ‘hurdles’ to acceptance

GERSHAN MAJOR as posing a “high risk” of financial crime.

It asserted that the web shop industry’s Know Your Customer (KYC) scrutiny of patrons was just as rigorous as that applied by CBA members to their customers,

meaning that the sector had already “met the litmus test” and therefore there should be no money laundering-related concerns to deter banks from accepting its monies.

“The BGOA is clear that banks can choose whoever they want to do business with, and that their business choices are their own, but statements like the one made by the CBA chairman are counterproductive, dangerous and unfounded,” the association said.

Describing Mr Bowe’s comments as “disturbing” because they were not backed by empirical evidence or data, it added that besides questioning a regulator’s work they had also occurred “at a

time when The Bahamas is contesting an onslaught of ‘blacklistings’ which threaten the survival of our financial services industry”.

In fact, Mr Bowe did not challenge the Gaming Board’s work or its integrity, but merely said its research on average patron accounts and transaction balances did not go far enough. Nor, he added, did it address the fundamental concerns and challenges Bahamian commercial banks had in accepting web shop deposits.

Top among them, he explained, was the “elevated risk” involved in dealing with cash intensive

SEE PAGE 6

PAGE 2, Tuesday, February 19, 2019

THE TRIBUNE

DESTINATION MANAGER GETS TOP GLOBAL AWARD CACIQUE International has won a 2018 Stella Award from Northstar Meetings Group, receiving a top destination management honour as “best” in international and US territories.

The Stella Awards, a major recognition programme in the meetings and events industry, rewards excellence among suppliers across the world.

Winners are honoured for consistently providing high quality service and innovation to meeting and event professionals.

After nominations closed in April 2018, finalists in each category were determined by meeting planners

DIONISIO D’AGUILAR, minister of tourism and aviation, right, congratulates Shawn Sawyer, president and creative director of Cacique International, on the company winning a 2018 Stella Award for Best International Destination Management Company (DMC). during an open voting period in which nearly 10,000 votes were tallied.

Winners were selected by a panel of judges overseen by the editors of Northstar

Meetings Group’s leading brands, Meetings & Conventions and Successful Meetings.

Shawn M. Sawyer, Cacique International’s president and creative director, said: “Being recognised among the best in the world at what we do is truly an honour. “Just Imagine” is more than a tagline to us – it’s a daily reminder to push the boundaries of creativity and service.

“Receiving a Stella Award is testament to what we do. The fact that thousands of our peers around the globe voted to help us win is the highest form of validation. I’m very proud

of our team for constantly going the extra mile to deliver a product which goes beyond the client’s imagination.”

“A Stella Award is the finest symbol of excellence for suppliers in the meetings industry,” said Lori Cioffi, senior vice-president and chief content director for the Northstar Meetings Group. “Meeting planning is a methodical process, and attention to detail is a critical factor for success.

We’ve brought that ethic to the Stella Awards. It’s a competitive, year-long nomination and evaluation process to identify and honour outstanding companies in our field. This year’s

winners are a stellar class.”

Dionisio D’Aguilar, minister of tourism and aviation, also praised Cacique International for its success.

“This award for Cacique International demonstrates the calibre of excellence that the company has been known for over the last 20 years,” he said. “It shows that Cacique has continuously provided stellar service to the islands of The Bahamas and we could not be more proud. We salute you and look forward to your quality service for many years to come.”

Cacique International, created in 1997, is a Bahamian destination management company.

Tourism gets energy, marketing updates

FROM left: Robert ‘Sandy’ Sands, BHTA senior vice-president; Carlton Russell, BHTA president; Joy Jibrilu, Ministry of Tourism director-general; Donovan Moxey, Bahamas Power & Light (BPL) chairman; Suzanne Pattusch, BHTA executive vice-president; Stuart Bowe, immediate BHTA past president; Jamal Glover, treasurer, BHTA; Jermaine Wright, vice-president for Nassau-Paradise Island, BHTA; Basil Smith, representing the Association of Bahamas Marinas on the executive committee of the BHTA. TOURISM stakeholders received updates on marketing initiatives and efforts to reduce energy costs at the Bahamas Hotel and Tourism Association’s (BHTA) recent quarterly meeting.

Attendees heard from Joy Jibrilu, directorgeneral at the Ministry of Tourism, who provided an indepth insight into its 2019 creative campaign featuring rock icon, Lenny Kravitz.

Ms Jibrilu gave a report on the scope and depth of the campaign, which incorporates all aspects of The Bahamas’ tourism offering - from island hopping to culture and cuisine.

Following her presentation, participants discussed industry concerns surrounding the cost and supply of electricity in The Bahamas. Dr Donovan Moxey, Bahamas Power and Light’s (BPL) chairman, gave

the keynote address.

He presented tourism owners and operators with information on how BPL is adapting and responding to the issues it faces, and how it can better engage with stakeholders to respond to industry needs and improve two-way communications.

“BHTA meetings provide our members with the opportunity to network, discuss and engage with representatives from the public and private

sector in an effort to understand and address issues that impact our industry,” said Carlton Russell, BHTA president.

“These gatherings allow the BHTA to share information and garner feedback from our members as we continue to strive to achieve our mandate to positively influence the sustained growth, development and profitability of our number one industry.”

THE TRIBUNE

Tuesday, February 19, 2019, PAGE 3

‘STEP UP TO PLATE’ ON VIRGIN VOYAGES

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net A CABINET minister yesterday reiterated calls for Bahamian entrepreneurs to “step up to the plate” and maximise cruise tourism’s economic impact as a “Virgin” prepares to enter the market.

Dionisio D’Aguilar, minister of tourism and aviation, said the announcement by Virgin Group founder, Sir Richard Branson, that his Virgin Voyages cruise line will be “open for

DIONISIO D’AGUILAR business” in Bimini come 2020 highlighted how the sector’s rapid growth can aid The Bahamas.

He told Tribune Business

that while “everything was still in the formative stages”, up to 2,800 cruise passengers could visit the island with every call. Virgin Voyages has confirmed that all voyages will feature The Beach Club, an experience developed in partnership with Resorts World Bimini.

“The last stop in the cruise is going to be Bimini,” Mr D’Aguilar said. “Resorts World is going to build a Beach Club to accommodate their visitors. I think there will be approximately 2,800 passengers every time the ship comes in.

“It’s not expected to happen until 2020. It’s still in the formative stages. We are delighted that another company is deciding to have The Bahamas as a part of their itinerary. As opposed to going to a private island they have decided to go to Bimini, which will hopefully have a positive impact on the local economy.”

He continued: “I think that they will be making eight visits a year to Bimini, and I think they are hoping to roll-out another vessel in 2021 or 2022 and include Bimini in their stop. Not only will this create jobs

in the Beach Club but also opportunities for Bahamian entrepreneurs to develop and offer excursions to the passengers when they disembark. This is a clarion call for entrepreneurs.

When these passengers start stopping in Bimini they are going to want to take excursion and tours.”

Mr D’Aguilar said with several cruise-related developments either in development or being proposed, The Bahamas was well-positioned to reap tremendous benefits from the industry.

“There is no doubt that

The Bahamas is attractive to the cruise industry primarily because of its geographic location as the closest foreign port to the busiest cruise ports in the world,” he added.

“The Bahamas is wonderfully positioned to take advantage of all the business the cruise companies can bring. The challenge is to figure out how to deepen and increase the economic impact of all the passengers coming here. That is where we need Bahamian entrepreneurs to step up to the plate.”

Renewable providers call for energy trading

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net A NEWLY-formed renewable energy association of yesterday branded The Bahamas’ energy sector model as “outdated” and called for far-reaching structural reform.

The Sustainable Energy Association of the Bahamas (SEAB), which represents three renewable providers, said in a statement: “The current business model of the energy sector is outdated, and has not adapted to the paradigm of distributed generation. This means that the nation will, for the foreseeable future, depend on foreign, imported fuel and the conversion to carbon free technologies, like wind and solar, is not progressing as it should.”

It added that the Electricity Act currently only allows two power companies to provide electricity, Bahamas Power and Light

(BPL) and the Grand Bahama Power Company (GBPC). “This Act needs amendments, mainly to recognise that any citizen can now become a power producer and that incumbent utilities’ business models need changing,” the association added.

It argued that BPL’s agreement with Shell for the latter to develop a new multi-fuel power plant for New Providence will “alter the paradigm of the energy sector, as the energy cost from the new generation plant (PPA) should introduce a wholesale price of electricity”.

“From that we should create a market-oriented power trading system where anyone with the appropriate technical and financial background could bid for energy delivery,” the association said. “The reform should also address the trading scheme’s practical organisation into an independent Utilities Collection

Agency, which would collect all revenues from energy sales and pay participants for their services, such as IPPs (independent power producers), ISOs (independent systems operators) and for the upkeep and modernisation of the grid.

“Transactions would be fully digitised similarly to the VAT system, and further improved by the application of blockchain technology.

Blockchain ledgers would introduce peer-to-peer power trading where, for instance, a business or hotel could contract a certain amount of energy output from an IPP and conduct automated transactions between them.”

The SEAB also called for the sale of Family Island infrastructure to developers who would transform them into solar and wind powered mini-grids, then transfer them to local communities as co-operatives.

“This would result in

No ‘material’ impact in late EU tax changes FROM PAGE ONE through the industry’s stakeholders, and we don’t anticipate any new concerns in that regard”.

He added: “From our perspective, nothing is going to materially affect in any additional way our business. I think we have certainly met all the requirements we are aware of. They’ve come back to us with some additional finer points, we’ve addressed those with these amendments, and believe we should be there.”

The Commercial Entities (Substance Requirements) Act is designed to address the EU’s demand for all nations to impose “economic substance” regimes that effectively require companies to prove they have a physical presence - and are doing “real business” - in a jurisdiction.

It wants corporate profits, revenues and

assets to be taxed in the jurisdictions where they are generated. They are thus aiming to prevent companies, especially multinational corporations, from exploiting gaps in tax types, rates and rules to artificially shift profits from jurisdictions where they are generated to low or “no tax” jurisdictions, thus lowering their tax bill.

The Bahamian law requires entities operating in this nation to show they have a physical presence by conducting

income-generating activities here. Management and control must also reside in this country.

Headquarters operations, together with banking, insurance, fund management, financing and leasing, shipping, distribution or service center operations, and holding companies, are the business activities under the Act that must have a “substantial presence” in The Bahamas through offices and employees and be conducting “real business” activities.

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A vacancy exists in a local financial institution for an Internal Auditor.

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The Internal Auditor will ensure that the organization is compliant with all internal policies, applicable laws, regulations by performing the prescribed duties.

SPECIFIC RESPONSIBILITIES INCLUDE: • Ensures the application and compliance with established operating policies and procedures, applicable laws and regulations • Creates Internal Audit plans and programmes • Performs audits of internal controls, systems, transactions,documents, reports, forms, products, procedures, policies and methods.

• Develops and executes external Internal Control audits for member organizations QUALIFICATIONS • Bachelor of Science in Accounting, Business or other relevant discipline • Two to five years of work experience as an auditor • CPA or CIA designation preferred • Experience with various PC software (i.e Microsoft office )and financial institutions’ mainframe operating systems Interested candidates should forward a copy of their resume to P.o. Box SS-6314, nassau, the Bahamas, attn: Human resources or email SMissick@bclibl.com

by February 20th, 2019.

the local population getting the benefits of their investments, as they could purchase shares in the cooperatives and have a voice in how they are managed. A good example for such a cooperative is the St George’s Cay Power Company operating in Spanish Wells that has high customer satisfaction and a service level that is unparalleled,” it said.

“As policy making is a government task, we would like to ask for participation in the process of how our energy future is shaped. We are also asking for a wider participation of businesses and individuals so that the benefits of distributed energy can be enjoyed by everyone.

“Since everyone can install a solar system and become an independent power producer (IPP), a cost of ten to 12 cents per kilowatt hour is achievable. It should be up to us how we want our energy and money to be managed.”

To advertise in The Tribune, contact 502-2394

The SEAB was formed near the end of 2018 through three companies: Super Green/

Compass Energy; Alternative Power Supplies; and Bahamas Energy and Solar Supplies.

PAGE 4, Tuesday, February 19, 2019

NOTICE

Request for Proposals Internal Audit Services The Utilities Regulation and Competition Authority (URCA) was established on 1 August 2009, as a corporate body, under the Utilities Regulation and Competition Authority Act, 2009.

As the independent regulator, URCA’s regulatory remit of the Electronic Communications Sector (ECS) covers radio and television broadcasting, radio spectrum, internet and data, pay-TV and voice telephony; and oversight of Electricity (ES) Sector which includes entities or persons who generate, transmit, distribute or supply electricity throughout The Bahamas.

URCA wishes to advise that a Request for Proposals (RFP) for the provision of Internal Audit Services has been uploaded to our website at www.urcabahamas.bs .

Interested parties should submit responses to the RFP by 4:00 pm on 28 February 2019.

THE TRIBUNE

‘Nipped in the Bud’: Brewery lays-off 73 FROM PAGE ONE Kalik beer product line.

This was done to maintain Kalik’s price competitiveness, and as a goodwill gesture to consumers struggling to adjust to the impact of a 12 percent VAT rate introduced with the 2018-2019 budget.

Mr Hepburn yesterday said that the restructuring exercise was not a negative indication of Commonwealth Brewery’s health, but rather “a sign of our commitment to continue and thrive in this dynamic business environment”.

He added that a “methodical streamlining decision” was made to simultaneously make certain posts redundant while

creating a new role, affording the impacted employees the opportunity to apply for the newly-created positions while being compensated fairly for the loss of their old jobs.

“Keep in in mind that we have job postings. While we made a role redundant we, at the same time, created a job role so the total net loss of staff shouldn’t be 73 persons’ it should be less,” said Mr Hepburn.

While the restructuring was the first major downsizing to affect Commonwealth Brewery since it went public in 2011, Mr Hepburn did not rule out the possibility of a similar exercise in the future.

“Like all businesses it depends on the environment in which you operate.

If we become challenged again, then we may have to continue to streamline our operations. It’s not that anything is inside the pipeline at this time for the retail division,” he added.

Mr Hepburn said that the company had carried out the exercise in accordance with the country’s labour laws, with Labour Minister Dion Foulkes confirming that he had been given notice of the redundancies.

“We would have sent a notice to the minister of labour as required by law,” Mr Hepburn added. “We would have waited the cooling-off period and followed every step that we were supposed to.

“We even had National Insurance here to give a talk on the benefits available to employees. We followed everything we were required to follow, and even added extra on to persons’ severance packages.

There should be no question whether we treated our employees with dignity and respect. I spoke with the majority of them personally,” said Mr Hepburn.

“As with any other business, the dynamics of the consumer spending really would dictate how we need to change. If you looked at our set-up as it was, we had assistant managers and managers reporting to a manager who reported to

another manager. You can’t sustain that; you have to streamline. We are mindful of the impact on our staff.

They are our first priority.

We had counsellors there during the course of the exercise.”

Commonwealth Brewery, which is 75 percent majority-owned by multinational brewing giant, Heineken, said in its 2018 third quarter results statement that the period had “presented more challenges than usual”.

“A shift in consumer spending habits gives rise to sales gravitating towards spirits and more economic brands.

This, coupled with the impact of a VAT increase of 4.5 percentage points effective July 1, 2018, has limited the spending power of our consumers and resulted in negative revenue growth of 3.5 percent for the quarter,” it said.

Commonwealth Brewery actually incurred a small $3,574 total comprehensive loss for the 2018 third quarter, with its top-line revenue dropping by more than $1m to $30.044m. This was partially offset by a near $3m decline in operating expenses, driven by an almost-$2m fall in raw materials, costs and services costs to $24.185m, while staff costs dropped by some $600,000 to $5.22m.

For the first nine months of 2018, while Commonwealth Brewery’s total comprehensive income was down by 56.2 percent year-over-year, standing at $5.361m compared to $12.242m in 2017, the prior year figure was boosted by the $6.3m insurance settlement and expense clearing related to Hurricane Matthew damages from October 2016.

While revenue was ahead one percent year-over-year for the first nine months, Commonwealth Brewery’s management cautioned: “Continuous changes in consumer spending power, slow economic growth and resultant changes in consumer preferences compels the company to further sharpen its focus on innovation and cost optimisation.”

Customs moves on registration concern

2019 business licence.

While business licence revenues have to be “certified” by end-January of each year, companies have until March 31 to pay the accompanying fees. Several sources told Tribune Business that Customs was no longer operating as if prior year business licences were valid until end-March - as has been the normal procedure.

But Mr Johnson, while conceding there was “a point of confusion about a month ago”, said the issue of “Customs asking for a new business licence even though the law allows it to be current up until the end of March” had already been addressed.

“We’ve made a clarification - not just with Customs but all government agencies to make sure they can accept business licences up to March 31,” he told Tribune Business. “The comptroller would have sent a communication to the Customs team to advise them of that. I’ve seen the communication.”

One source, speaking on condition of anonymity, expressed concern about “inconsistencies between Customs and the Department of Inland Revenue” over the interpretation of business licence-related laws and policies.

“The procedure for business licences is that they need to be ‘certified’ by January 31 and paid by March 31,” the contact said. “I just received a call from a client and they are not being allowed to clear inventory as they have not yet paid for their business licence.

“It has been a practice in the past for Customs not to enforce the business licence requirement until March 31.

If this is a ‘new’ policy by Customs then it in unfair as it only affects businesses that have imports. The services industries are not effected by Customs changes. As we try to ascend to WTO we cannot implement inconsistent policies internally.”

FROM PAGE ONE back to the persons importing because they’re paying for it and have ultimate responsibility for it”.

“This is a one-time process as we transition to the system,” he reiterated. “Airside freight started several months ago, and sea freight will start next month nationwide. We will be doing more to ensure the public understand and are aware, and will make it streamlined and seamless for persons as much as possible”.

However, one private sector source, speaking on condition of anonymity, warned that the “ease of doing business” in The Bahamas again being undermined due to the extra time taken to clear imports.

“It’s inconvenient, there’s long waiting times, and things that should clear in a few days are taking four times’ as long as they should,” the source said. “Because of what they’re trying to implement it’s causing this backlog and taking much longer for people to get their packages and whatever.

“It is taking much longer, extremely long, to get your packages once you submit everything. A FedEx package takes forever. It’s ridiculous how much of a backlog it’s created. They need to go in and independently test the system they are putting in place to make business and the process easier. They can’t continue with what they have now, especially with sea freight; it will be all over.”

Mr Johnson, meanwhile, said the government had also addressed complaints that Customs was departing from standard practice by refusing to clear goods for companies who do not possess a valid

THE TRIBUNE

Tuesday, February 19, 2019, PAGE 5

Bahamas must benefit in WTO sector openings FROM PAGE ONE with the private sector and specific industries on how this nation should respond to the questions and requests prompted by its initial goods and services offers.

This week’s series of consultations are with services sectors that Working Party members identified in their initial responses, which likely means they want The Bahamas to further liberalise its position in these areas - possibly even opening up to the extent that it allows foreign firms to establish a physical presence in this jurisdiction.

The sectors meeting the government this week to determine The Bahamas’ response, and the negotiating stance it should adopt ahead of the fourth Working Party meeting, are accounting and auditing services; engineering and architectural services; the construction industry; real estate; advertising and public opinion services; audio visual services; the Port Authority; wholesale and retail services (food and beverage); non-food wholesale and retail; and the auto industry.

Mr Laing yesterday confirmed the meetings will assess “the responses we’ve gotten from several countries as it relates to their particular sector, and how they think we ought to respond to these requests”.

The chief negotiator, who oversaw The Bahamas’ application for full WTO membership back in 2001, said the consultations reaffirmed his and the government’s commitment to involve the private sector “at every stage of the process” given that it drives the country’s trade and will be most affected by the accession terms.

“We want to be able to have industry-agreed

responses to whatever requests are made, and whatever offers we make.

Every set of consultations is important,” Mr Laing told Tribune Business. “We are seeking to ensure that every position we take is both do-able and winnable in terms of gains for industry and the country. That’s really the bottom line.

“Our economy flourishes when our industry players flourish, and that’s both Bahamian businesses and non-Bahamian businesses we allow into the country to operate. We want to have negotiated positions that represent the best opportunity for our industry players.

“If there is an opening [of a particular industry] to be done, that has to be an opening that represents real economic opportunity for the country and represents an opportunity for our local businesses to, at the very least, still be competitive.”

Pledging that no Bahamian sector or businesses will be placed at an undue disadvantage, Mr Laing said this nation was in full control of its destiny in the WTO talks and could not be forced into any action that was against the national interest.

“What’s important for people to know is that openings are negotiated,” he explained. “Nobody imposes an opening.

Nobody demands an opening. We either say no, concede, or offer an alternative. It’s entirely up to us. The reality is we are committed to walking these steps together with industry partners.”

Keva Bain, the acting director of trade, pledged to private sector participants in this week’s consultations that the government would be as transparent as possible over the WTO negotiations and their progress.

To advertise in The Tribune, contact 502-2394

She pointed to the disclosure of The Bahamas’ original goods and services offers as making good on this commitment, and said private sector feedback is “critical” if this nation is to craft the best possible counter to the Working Party group’s questions.

Ms Bain, in a letter seen by Tribune Business, wrote: “The revised offers signalled the country’s willingness to lower tariffs on certain goods and to liberalise certain services sectors with a view that undertaking such commitments would ultimately benefit the Bahamian economy and the Bahamian people.

“The Bahamas received feedback on its revised goods and services offer at the Third Working Party meeting on The Bahamas’ accession to the WTO held in Geneva, Switzerland, in September 2018...

In its ongoing efforts at transparency and ensuring the continued input of the private sector in this important process, the WTO negotiating team intends to discuss the feedback from WTO states regarding specific services sectors.”

Ms Bain said the fourth Working Party meeting had already been put back to mid to late March “at The Bahamas’ request to allow additional time for sector specific consultations on responses to our offer”. That date, Mr Laing confirmed yesterday, has now been pushed out to April.

“Your favourable response to this [consultation] is therefore critical as it would assist the negotiating team in formulating The Bahamas’ response to the requests received from WTO states to our revised offers,” Ms Bain told the private sector.

Career Opportunities CIBC FirstCaribbean is a major Caribbean bank offering a full range of market-leading financial services in Corporate Banking, Retail Banking, Wealth Management, Credit Cards, Treasury Sales and Trading, and Investment Banking. We are the largest, regionally-listed bank in the English and Dutch speaking Caribbean. The bank has over 2,900 staff; 66 branches, 22 banking centres, and offices in 17 regional markets. We are looking to fill the following position:

Manager, Compliance Policies & Procedures Responsible for maintaining CIBC FirstCaribbean International Bank (the Bank) policies and procedures for which the Chief Compliance Officer (CCO) has accountability, including developing new policies, procedures, standards and guidelines as may be required from time to time.

As subject matter expert, responsible for formulating internal Compliance Department procedures and guidelines for the efficient execution of the compliance program and will work closely with the senior Compliance Department management in developing and keeping up-to-date all Compliance Policies and Procedures.

Responsible for drafting all Compliance Policies and Procedures and ensuring that they are comprehensive in order to mitigate regulatory risk.

Works closely with the testing teams within the Compliance Department to identify gaps or ambiguities in Compliance Policies and Procedures in order to clarify and/or update, as necessary.

Collaborates with the Manager, Compliance Testing and Training to design training material and assist with the delivery of training on Compliance Policy and Procedures to the Business Units, senior management and other functional units.

About You • University degree in Banking, Business, Accounting or a related field required.

• Ability to read and interpret legislation to assist with the design of policies and procedures.

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• Ability to create methodologies, frameworks, policies and procedures with minimal instruction.

• At least 5 years’ experience in a compliance, risk management, legal or governance and control environment.

• Comprehensive understanding of regulatory requirements in jurisdictions where CIBC FirstCaribbean operates.

• Experience in conducting needs assessments and in drafting and creating appropriate policies and procedures.

About Our Offer Some travel within the Caribbean and limited travel to Canada may be required. Eligibility for US Visa and ability to work throughout the region is required.

To apply for this and any other positions, kindly visit www.cibc.com/fcib/about-us/careers.html Applications with detailed resumes with the names of three business references should be submitted no later than 1 March, 2019. CIBC FirstCaribbean International Bank Limited thanks all applicants for their interest, however only those under consideration will be contacted.

LINKEDIN cibc-firstcaribbean-international-bank

The CIBC logo is a trademark of Canadian Imperial Bank of Commerce, used by FirstCaribbean International Bank under license.

PAGE 6, Tuesday, February 19, 2019

THE TRIBUNE

Web shops hit banks’ ‘dangerous’ rejection FROM PAGE ONE businesses and the extra compliance/due diligence costs that banks will incur in handling such sums.

Web shops, likely the largest cash generators in The Bahamas, would fall at the peak of this “risk”

scale. Mr Bowe pointed out that the costs involved in dealing with large cash sums often exceeded the potential earnings from accepting them, creating an unfavourable risk/ reward situation for the banks that would likely result in losses.

The other obstacle he

N O T I C E MANGO – Trade and Investments, S.A. ____________________________________ 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 31st day of January, 2019.

Delano Aranha Liquidator of MANGO – Trade and Investments, S.A.

identified was the opposition of Bahamian bank’s foreign correspondents to accepting gaming-linked deposits, meaning that if local institutions institution accepted such funds they - and all Bahamian businesses - could be cut-off from the global financial system links the economy depends upon for its “survival”.

Gershan Major, the Bahamas Gaming Operators Association’s chief executive, last night told Tribune Business that

“the key” was for the web shops to meet with the banks, hear and understand their concerns, and for all parties to then develop a workable solution.

Noting that web shops were “already part of the banking system” through Bank of The Bahamas’ acceptance of their deposits, he added: “The question is what are the hurdles as the see CAB sees it as it relates to its members and correspondent banks.

“Let’s clearly determine

NOTICE Notice is hereby given that JASMINE CELINE FERTILIEN of Greenwiched Lane, Fort Fincastle, New Providence, Bahamas is applying to the Minister responsible for nationality and Citizenship, for Registration/ Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written signed statement of the facts within twenty-eight days from the 12th February, 2019 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147 Nassau, The Bahamas.

NOTICE SOPRA ASSET MANAGEMENT LTD. NOTICE IS HEREBY GIVEN that pursuant to section 138 (8) of the International Business Companies Act 2000 the dissolution of Sopra Asset Management Ltd., has been completed and the company has been struck from the Register on the 24th day of January, 2019.

one would think that the aggregate deposits from gaming customers would have already met the litmus test.”

The association then suggested that Bahamian commercial banks were continuing to discriminate against web shops by pointing to cash deposits accepted from hotel casinos, supermarkets and liquor stores - a charge Mr Bowe has vehemently rejected.

“Mr Bowe referred to a second hurdle related to the existing relationships with corresponding banks, and the fear that those relationships may be jeopardised if local banks receive deposits from BGOA members,” the association added.

“The reason for this fear is still unclear given that the CBA has not clearly articulated what those concerns are to the domestic gaming industry, and certainly not formally to the BGOA which represents them.

“The ‘business decision’ of individual banks cannot make illegal what the Parliament has declared legal.

Gaming house operators and banks, as regulated financial institutions, should work together to strengthen confidence in the group of financial services regulators rather than erode domestic and international confidence in this jurisdiction.”

The association concluded by calling for “an open and productive dialogue” with the CBA to resolve all concerns.

NOTICE WHITMORE ASSET MANAGEMENT LTD. NOTICE IS HEREBY GIVEN that pursuant to section 138 (8) of the International Business Companies Act 2000 the dissolution of Whitmore Asset Management Ltd., has been completed and the company has been struck from the Register on the 30th day of January, 2019.

Shareece E. Scott Liquidator

MARKET REPORT MONDAY, 18 FEBRUARY 2019

what these hurdles are.

Currently, we don’t know.

Let’s sit down and have that conversation around these hurdles. Now that we are back in business we need to engage the parties that are part of the stakeholder process of this industry, the financial services industry. We need to understand the specifics, the concerns, the hurdles.”

Mr Major reiterated the association’s position that Mr Bowe’s remarks were unhelpful given that they came at a time when The Bahamas was confronting renewed threats relating to alleged deficiencies in its anti-money laundering and terror financing defences.

“It doesn’t help the financial services sector to be making these statements at this time,” he added. “We are, based on legislation, a legal entity with the same KYC requirements as the clearing banks.”

The association’s statement, pointing out that the Gaming Board had found there was no evidence to show web shops were “conduits for material money laundering”, argued that the regulator had also validated its strict KYC processes.

“The rigorous Know Your Customer (KYC) rules, which apply to CBA members when establishing accounts for their customers, are the very same criteria applied to and by domestic gaming house operators,” it said.

“If the KYC measures are the same for both domestic gaming operators and members of the CBA,

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

BISX ALL SHARE INDEX: CLOSE 2,048.42 | CHG -14.99 | %CHG -0.73 | YTD -61.03 | YTD% -2.89 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 20.91 7.50 5.50 1.77 0.67 3.68 10.20 6.60 4.85 12.50 2.74 1.78 8.50 6.30 14.10 6.99 4.47 13.85

52WK LOW 3.50 19.17 4.90 3.34 1.00 0.19 2.10 8.70 6.10 3.54 9.01 2.30 1.50 7.25 6.10 10.10 5.85 3.24 12.51

1000.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

PREFERENCE SHARES

1.00 103.00 100.00 100.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00

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

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

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

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) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

MUTUAL FUNDS 52WK HI 2.20 4.24 2.03 184.51 158.55 1.60 1.74 1.68 1.11 6.99 8.54 6.15 10.52 11.46 10.46 10.00 8.69 11.79

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.54 1.68 1.62 1.08 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

LAST CLOSE 4.37 17.43 7.00 5.39 1.64 0.67 2.28 9.50 6.16 4.30 10.99 2.65 1.78 8.57 6.30 14.10 6.98 3.60 13.85

CLOSE 4.37 17.43 7.00 5.39 1.77 0.67 2.28 9.50 6.16 4.30 10.99 2.65 1.78 8.58 6.30 14.10 6.98 3.24 13.85

CHANGE 0.00 0.00 0.00 0.00 0.13 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.00 -0.36 0.00

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

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

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

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

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

VOLUME

1,400 4,360 4,812 11,000

1,000 2,300

VOLUME

100

NAV 2.20 4.24 2.03 184.51 147.81 1.60 1.74 1.68 1.11 7.47 8.64 6.60 10.37 11.69 10.38 9.92 8.69 11.79

EPS$ 0.147 0.932 -0.306 0.323 0.085 0.000 -0.523 0.700 0.480 0.154 0.627 0.102 0.209 0.000 0.481 0.762 0.578 0.277 0.631

DIV$ 0.120 1.260 0.000 0.240 0.000 0.020 0.000 0.710 0.220 0.120 0.620 0.060 0.060 0.084 0.240 0.500 0.150 0.090 0.600

P/E 29.7 18.7 N/M 16.7 N/M N/M -4.4 13.6 12.8 27.9 17.5 26.0 8.5 N/M 13.1 18.5 12.1 11.7 21.9

YIELD 2.75% 7.23% 0.00% 4.45% 0.00% 2.99% 0.00% 7.47% 3.57% 2.79% 5.64% 2.26% 3.37% 0.98% 3.81% 3.55% 2.15% 2.78% 4.33%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%

INTEREST Prime + 1.75% 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% YTD% 12 MTH% 3.97% 3.97% 2.49% 2.49% 2.43% 2.43% 3.26% 3.26% -3.65% -3.65% 4.30% 4.30% 2.60% 2.60% 3.40% 3.40% 1.46% 1.46% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69% -0.71% 0.16% 3.96% 7.75% 8.34% 14.88

NOTICE JYNX INVESTMENTS LTD. NOTICE IS HEREBY GIVEN that pursuant to section 138 (8) of the International Business Companies Act 2000 the dissolution of Jynx Investments Ltd., has been completed and the company has been struck from the Register on the 6th day of February, 2019.

MATURITY 19-Oct-2022 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 NAV Date 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018

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

Shareece E. Scott Liquidator

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

Shareece E. Scott Liquidator Legal Notice NOTICE

BODER FUND ICON NOTICE IS HEREBY GIVEN as follows: (a) BODER Fund Icon is in dissolution under the provisions of the Investment Condominium Act, 2014 (b) The dissolution of the said Icon commenced on the 18th day of February, 2019 when its Notice of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said Company is Calynn Thurston, Deltec Fund Services Limited, Deltec House, Lyford Cay, P.O. Box N-3229, Nassau, Bahamas.

Calynn Thurston Liquidator

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