By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Opposition last night charged that “the Bahamian economy has never performed so aggressively as to wipe out a $300m shortfall” after the Government unveiled a deficit over five times’ its full-year target.
Dr Duane Sands, the Free National Movement’s (FNM) chairman, told Tribune Business that Bahamians should “not hold our breath” that the forecast $69.8m full-year target for 20242025 will be met after the Ministry of Finance unveiled a $356.5m fiscal deficit for the five months to end-November.
That figure, which is some 410.7 percent or more than five-fold higher than the full-year goal, is also near-double or 92.3 percent
• Opposition: Economy won’t ‘wipe out $300m shortfall’
• Gov’t deficit to November up 92% on ‘23 at $356.5m
• Revenue up but cannot cover $61m spending jump
greater than the $185.4m in ‘red ink’ incurred at the same endNovember point in the previous 2023-2024 fiscal year.
And, if the Government repeats December 2023’s monthly deficit of $65.9m, it will likely face a halfyear deficit of more than $400m when it unveils the mid-year Budget next Wednesday in the
• Bahamian bank says deputy US AG has ‘agreed terms’
• Funds represent alleged proceeds from crypto fraud
• US gov’t had sought forfeiture of sum seized in 2023
By NEIL HARTNELL Tribune Business Editor
A BAHAMIAN bank is close to resolving its dispute with the US Justice Department over the ownership of $13.475m that was seized by the federal authorities for allegedly being generated by a massive fraud.
Deltec Bank & Trust, in filings with the eastern Virginia district court last Thursday, asserted that itself and the US Justice Department “have agreed to terms that will settle all issues” surrounding who is the rightful owner of this sum that was seized by the US Secret Service during its probe into a multi-million dollar international crypto currency scam. The Lyford Cay-based institution’s spokesperson did not respond to Tribune Business e-mails seeking comment before press time last night, but the move to settle the dispute comes just 23 days after Deltec served notice of its claim to the
$13.475m via earlier filings with the same court.
“Claimant asserts that it has a legitimate, lawful ownership interest in the $13.475m that was seized by the US from its account ending in 0328 at Mitsubishi UFJ Trust and Banking Corporation on June 13, 2023 pursuant to a seizure warrant issued by a US magistrate judge,” Deltec said in a document that was signed by its chairman, Jean Chalopin, on January 23, 2025.
The Bahamian bank and trust company’s filing was made in response to the US Justice Department initiating legal proceedings on December 20, 2024, just prior to the Christmas and New Year holidays, where it was seeking an order that the multi-million dollar sum be forfeited to itself.
Deltec acted to stop that happening without a fight and, in last week’s filing just 17 days after its initial move, said the two parties were close to resolving the fate of the
House of Assembly. If this comes true, the Davis administration will need to generate a staggering surplus of around $330m during the fiscal year’s second half to reverse this trend and come close to the full-year deficit target..
Michael Halkitis, minister of economic affairs, did not respond to Tribune Business’s message
seeking comment before press time last night. However, Dr Sands voiced scepticism that the Government will be able to make up all the lost ground during the 2024-2025 fiscal year’s second half even though it has begun
Atlantis drops legal appeal over Wendy’s PI restaurant
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
WENDY’S last night said it is tasting success in its “long and hard-fought battle” to expand to Paradise Island after Atlantis agreed to drop its Supreme Court challenge to the proposed restaurant.
Gail Lockhart-Charles KC, attorney for Aetos Holdings, the fast-food chain’s Bahamian franchisee, told Tribune Business in a statement that her client has “always maintained” that converting the former Scotiabank branch property for its flagship brand as well as Marco’s Pizza was “lawful and appropriate”
- especially since it had obtained all necessary planning approvals. Pointing out that both the Town Planning Committee and Subdivision and Development Appeals Board had rejected the opposition from Atlantis and other Paradise Island hotels, she said: “On October 24, 2023, the Town Planning Committee approved Psomi Holdings Ltd’s proposal to develop a Wendy’s restaurant and Marco’s Pizza on Paradise Island at the location of the former Scotiabank building. “Atlantis challenged this approval by filing an appeal with the Subdivision and Development Appeal Board. In July 2024, the Board dismissed
to generate Budget surpluseswhere tax and revenue income exceeds its spending - during this period.
The Davis administration produced a $92m surplus during the six months to end-June last year, which many suspect was at least partially achieved by delaying payment of outstanding bills and payables until the current fiscal period, but it will likely need to achieve a four times’ greater sum this time around to come in close to projections.
The Ministry of Finance, in its November 2024 report, revealed that month’s deficit expanded by 18.5 percent or $12.9m year-overyear, growing from $69.6m the year before to $85.5m. The data shows this was driven entirely by spending increases that exceeded improved revenue collections
the appeal, confirming that the proposed use of the site for the restaurants did not violate any existing restrictive covenants and was compatible with the surrounding area.” This, though, did not result in closure.
“Atlantis then appealed to the Supreme Court,” Mrs Lockhart-Charles confirmed. “Meanwhile, Wendy’s continued operating its state-of-the-art branded mobile kitchen while the appeal process was underway. On February 5, 2025, Atlantis filed a notice of discontinuance,
officially ending the appeal.
“It has been a long and hard-fought battle, but our client has always maintained that the use of the site for Wendy’s and Marco’s Pizza was lawful and appropriate, with all necessary planning approvals properly obtained and granted.”
It is unclear whether Sterling Global Financial, the Hurricane Hole developer, and the Paradise Island Tourism Development Association (PITDA), which represents the likes of the Ocean
Ex-MP blasts sewage woe at North Eleuthera Airport
By ANNELIA NIXON Tribune Business Reporter anixon@tribunemedia.net
A FORMER MP yesterday blasted the sight and smell of raw sewage that he says greets Bahamian travellers and tourists when walking between terminals at North Eleuthera’s airport.
Stephen ‘Hank’ Johnson, ex-FNM MP for central and south Eleuthera, voiced his “embarrassment” with the much-used airport’s current state just months after the Government signed a $55m loan agreement with the Saudi Development Fund to finance its transformation.
Dirt, broken tiles, sewage, disorganisation and the absence of promised upgrades were among the complaints cited by Mr Johnson in a widely-circulated social media voice note following his recent trip from North Eleuthera to New Providence.
Asserting that he is not being political, Mr Johnson urged the Government to “get it together” because “we need to deal with it”.
Acknowledging the Saudi loan agreement, he decried the absence of significant progress at North Eleuthera’s airport todate. Mr Johnson said that, while awaiting renovations and upgrades, passengersespecially tourists - should still feel comfortable rather than having to contend with disorganised lines, dirt and foul odours.
“I understand that they’re building a new terminal, but let’s make sure that our guests are comfortable. They shouldn’t have to come here in that
central government, via “net repayment positions”.
condition, walking from terminal to terminal and sewage on both sides,” he added.
“I was rather surprised. I just couldn’t believe it. And I myself walked from one terminal to another and the sewage [was] on both sides of the walkway. I heard one of the guests say: ‘Oh, what is that smell?’ You know how I felt...? I couldn’t even answer the lady. Something needs to be“Thedone.Government needs to step in there. Because I’ll tell you this. For the amount of flights that American [Airlines] have coming in - American had two, two of those jets in
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
TOTAL Bahamian public sector debt grew by $312.8m over the previous year to exceed $13bn at end-December 2024, it was revealed yesterday, “driven” almost entirely by central government borrowing.
The Ministry of Finance’s public sector debt bulletin for the 20242025 fiscal year’s second quarter and first six months revealed that the central government accounts for
$11.749bn, or the majority, of those liabilities with its own indebtedness having expanded by $92.4m or 0.8 percent in the three months to year-end.
However, The Bahamas’ debt-to-GDP ratio reduced slightly despite the increased borrowing, falling from 79.5 percent at end-September 2024 to 79.2 percent when the 2024-2025 second quarter closed. The report also disclosed that government business enterprises (the former state-owned enterprises) and agencies were also reducing their debt, in contrast to the
The Ministry of Finance, meanwhile, reiterated that the Government is still exposed to significant rollover or refinancing risk given that more than 25 percent, or one quarter, of its debt portfolio is due to mature during 2025. Some $2.58bn, of which 90 percent is held by Bahamian investors, is due to mature over the nine months between October 2024 and end-June 2025. This debt will have to be refinanced via the issuance of new bonds, Treasury Bills or other securities, which exposes the Government to the potential - though unlikely at present danger - that a major investor may elect not to rollover and demand repayment of its principal.
“The average time to maturity (ATM) stabilised to 6.13 years over the recent two quarters. By end-December 2024, 26.78 percent of the debt portfolio was due to mature in one year compared with 27.45 percent in the prior quarter,” the Ministry of Finance said.
“The proportion of external debt maturing within one year receded to 7.76 years, while net issuance of longer dated maturities reduced the internal component to 41.5 percent from 43 percent in September 2024... Debt forecasts incorporate reissuances of Treasury bills ($1.222bn), Treasury notes ($33.8m) and Central Bank advances ($331m).
PUBLIC TRANSPORT WI-FI LINK-UP
BILLED AS CUTTING DATA COSTS 90%
THE BAHAMAS Telecommunications Company (BTC) yesterday unveiled a partnership to provide free wireless Internet service on 150 buses and taxis and slash their ‘unlimited data’ costs by 90 percent.
The carrier, in a statement, said it has partnered with AD-Fi, a subsidiary of AD+ECH Global, to install and roll-out an initiative designed to offer seamless connectivity to Bahamians and tourists alike. Installation of the necessary systems and technology began in January, with the official project launch set for March 2025.
JoBeth Coleby-Davis, minister of energy and transport, said: “This initiative will enhance the
experience for passengers on public buses and taxis. It aligns with the Government’s plan to transform the sector.”
The project seeks to combine AD-Fi’s advertising platform with BTC’s 4G LTE mobile network. It will deliver an ad-supported Wi-Fi solution designed to boost connectivity, support local businesses and elevate the public transit experience. Passengers will enjoy complimentary Wi-Fi access while businesses can reach targeted audiences through innovative advertising opportunities.
The partners added that, by integrating AD-Fi’’s platform with BTC’s data services, bus operators can now affordably provide free
Wi-Fi to passengers. This, they asserted, will reduce the $145 cost of unlimited data per bus by nearly 90 percent, minimising costs for operators but also transforming Wi-Fi into a sustainable, cost-effective amenity that enhances the overall public transit experience.
“This partnership is a significant milestone in our mission to bridge the digital divide,” said Keith Russell Jr, AD-Fi’s chief executive. “By integrating free Wi-Fi into public transit, we are not only improving access to the Internet but also creating a platform for economic empowerment, benefiting passengers, advertisers and transit operators.”
BAHAMAS’ ANNUAL INFLATION IN GREATEST FALL FOR THREE YEARS
THE Bahamas’ monthly inflation rate enjoyed its first decline for four months in November 2024, it was disclosed yesterday, while the annual version also fell for the fifth straight month.
The Bahamas National Statistical Institute (BNSI) unveiled consumer price index (CPI) data that showed a continued easing of the post-COVID inflation that, for many middle
class and lower income families, sparked a cost of living crisis.
However, many will argue that they are yet to feel the benefit as consumer goods prices have not fallen by any significant amount. And, given the increase in US inflation in January 2025 and continued uncertainty over US tariff policies that may fuel future price increases, the easing
suggested by the Institute’s data could yet prove temporary.
Still, The Bahamas’ month-over-month inflation rate declined by 0.7 percent for November 2024. This marked the first fall for four months since July, and was the greatest decrease since May’s 0.8 percent drop. And the annual, or trailing 12 months, inflation rate decreased for the fifth
Delmaro Duncombe, BTC’s director of B2B (business-to-business) operations, said: “BTC is committed to driving innovation that enhances connectivity for all. Partnering with AD-Fi allows us to extend our reliable 4G LTE network to public transit, ensuring that both residents and visitors stay connected effortlessly.
“This initiative not only strengthens digital access but also creates new opportunities for businesses and commuters alike. This partnership with AD-Fi is timely and reinforces BTC’s role in advancing The Bahamas’ digital future.”
The installation phase will equip 150 public buses and taxis with Wi-Fi systems.
consecutive month with a 1 percent decline. This marked the greatest decline in the year-over-year inflation rate for more than three years.
“The monthly inflation rate in The Bahamas, which represents the overall change in price for 2024, decreased by 0.7 percent when compared to October 2024. This change is reflected in the overall price of items purchased by the average consumer during this period. This November 2024 decrease followed an increase between the months of September 2024
AD-Fi said it also has plans to help restaurant and bar owners, Airbnb hosts and boutique hotel operators monetise their existing Wi-Fi infrastructure.
Currently, many of these businesses provide free Wi-Fi to patrons at their own expense. AD-Fi’s sponsored Wi-Fi platform will allow these operators to generate additional revenue through third-party advertising. By integrating AD-Fi’s platform with their existing
and October 2024,” the Institute said. “On a month-to-month basis, the major decreases by group included food and non-alcoholic beverages, 4.2 percent; furnishing, household equipment and routine household maintenance, 2.9 percent; and miscellaneous and goods, 1.2 percent. Meanwhile, the major increase was in clothing and footwear, which increased by 0.7 percent.
“Furthermore, for November 2024, the CPI declined 1 percent from the same period last year.
The major categories that contributed to this decrease
Atlantis drops legal appeal over Wendy’s PI restaurant
FROM PAGE B1
Club and Comfort Suites, will seek to challenge the Appeals Board’s decision via the Supreme Court although they are likely to follow the mega resort’s lead. The Appeals Board had found the restaurant, which is expected to involve a $3m investment and create 75 full-time construction jobs and between 100 to 125 permanent full-time jobs once completed, “does not offend” land use restrictions and is “compatible” with the surrounding area and nearby businesses. It rejected all opposing arguments, including lack of a traffic impact study and non-existent Paradise Island land use plan.
Chris Tsavoussis, Aetos Holdings’ principal, in a TV interview earlier this week, said he recently met with Audrey Oswell, Atlantis’ president and chief executive, with the two sides
finding they had more in common than not and agreeing that their respective developments can co-exist.
Aetos Holdings, which Mr Tsavoussis runs with his brother, Terry, had always believed the main reason Atlantis and other Paradise Island resorts fought so vigorously against the proposed restaurant’s presence is because of the competitive threat it poses to their own dining and food and beverage operations. The delay caused by the planning approval challenges is likely to have cost it significant time and money. The former Scotiabank branch occupies a key spot at the junction of Harbour Drive and Paradise Beach Drive. Drivers coming on to Paradise Island reach it before they get to Atlantis, Hurricane Hole and any of the other resorts, while persons exiting via the offbridge also have to pass it.
It is also within walking distance for both the thousands of staff and tourists at Paradise Island’s hotels, giving any fast food operator a lucrative and large market to tap into, not to mention the area’s residents. Wendy’s and Marcos Pizza’s offerings will also likely be competitively priced compared to many Paradise Island rivals.
Tribune Business previously revealed that both Atlantis and Sterling Global both had chances to acquire the former Scotiabank property before Aetos Holdings. Atlantis did not move, while Sterling’s offer is understood to have been rejected by the bank because it was too low.
Atlantis and its fellow resorts had put forward multiple challenges to the original Town Planning Committee decision. They claimed “there was a failure to consider or receive traffic studies and/or assessments” on the impact the Wendy’s
and Marco’s Pizza restaurants would have, plus the “disregard of lack of a land use plan, zoning bye-laws or transparent, objective development for the property area”.
Further objections included “the standard of clientele, traffic congestion, parking demands, obstacles for luxury development... and disregard for the views of [Paradise Island] residents at large”, with the general sentiment that Wendy’s and Marco’s Pizza would devalue Paradise Island’s image and status as a high-end tourism destination.
However, the Appeals Board knocked down the Paradise Island resort industry’s arguments one by one.
“While objections were made based on the lack of a traffic study, the same is not a mandatory requirement under the terms of the Planning and Subdivision Act and or Planning
Ex-MP blasts sewage woe at North Eleuthera Airport
there. Delta came in there. Silver came in there, and then further down the road there, the White Crown there.
“You know how many jets was in there yesterday in and out of that airport? I can only average the amount of travellers as far as visitors was concerned yesterday. Based on what I’ve seen I’m sure there were over 3,000 passengers going through there. I may be exaggerating a little bit, but there were quite a bit. It’s disturbing.”
Mr Johnson continued:
“Both governments were talking about this privatepublic partnership and getting this airport done. But as far as I can see here, there’s nothing happening with this airport to talk about the construction of a new terminal. I don’t see anything happening out there. White Crown is doing something, I think, which is private, but there’s nothing happening that I see.
“It has been months ago now, and this terminal has been planned for the last four or five years. Every administration is talking about it. This government went to the point where they signed an agreement with the Saudis. They got the loan from the Saudis, but there’s nothing happening.
“Being a person that’s been there and on standby watching what’s going on, they need to be more organised on the inside of the terminal. The terminal may be small, but they can organise themselves better. We know the terminal is definitely too small for the amount of traffic in and out of there, but they can organise themselves that they can make it work,” he added.
“In every day life, no matter how poor you might be...you can keep your environment clean. You can do that. And persons are getting paid to do that, and so I was disappointed to see the condition of that place yesterday.”
Calling for North Eleutherans and the Government to “get on top of things”, Mr Johnson said the airport is the “breadbasket of Eleuthera” welcoming high volumes of tourists regularly. “When you step out of that door, the dirt by the door, broken tiles right as you step outside, the dirt there; it was unbelievable,” he said.
“It was dirty. I walked from there to the terminal, the temporary terminal they have there for the passengers to wait in. When I stood outside, the stench of sewage was unbelievable. I looked to the east to walk towards going to that terminal. There was water on the left-hand side of that walk path and water flowing on the right side of the path. It was the sewage overflowing.
“The guests, the tourists, along with myself, had to walk on that walkway with sewage water on both sides to walk to that waiting area. And the stench of sewage was unbelievable. It was so despicable and so embarrassing,” Mr Johnson continued.
“...The North Eleuthera Airport is one of the busiest airports in the Commonwealth of The Bahamas. And the dirt is not cleaned properly. The stench of sewage that the tourists had to walk through, including myself, it’s unacceptable, unbelievable. But it’s happening in North Eleuthera Airport and I said to several of the
Wi-Fi network, businesses can earn monthly payouts based on the volume of ads viewed at their location. “The best part is, they don’t have to lift a finger once the integration is complete,” said Mr Russell. “We handle everything - from ad sales to platform management - while these businesses enjoy the financial benefits of this passive income stream.”
consisted of transport, 3.6 percent; restaurant and hotels, 2.6 percent. Additionally, during the same period last year, the major group increases consisted of alcoholic beverages, 4.5 percent; along with food and non-alcoholic beverages, 1.6 percent,” it added.
“For the month of November 2024, gasoline recorded an increase of 0.2 percent in addition to diesel increasing by 0.8 percent. Meanwhile, when compared to this same period last year, both gasoline and diesel declined 9.5 percent and 12.3 percent, respectively.
“the law does not compel the impossible”.
and Subdivision Regulations and, therefore, despite protest, the Board sees no reason on the basis of the intended use of the property that the lack of one should amount to the setting aside of the decision,” the Appeals Board said.
“This point may have been more materially considered if the report, which was said to have been commissioned by an appellant, was provided to the Board. However, absent more, the failure to consider same does not in the Board’s view rise to the level of vitiating the approval.”
As for PITDA’s argument that the lack of a land use plan and zoning bye-laws for Paradise Island resulted in the Town Planning Committee acting unlawfully, and in violation of the Planning and Subdivisions Act 2011 when granting site plan approval, the Appeals Board said it was guided by the legal expression that
workers: ‘What’s going on here? What happened here? You all can’t find the one to pump this sewage?’
“And I asked one of the persons at the airport. I said: ‘What are you all doing?’ Folks, we got to get it together. I’m going to say to the people in the north: God has blessed you. Things are going well for you all in the north, but you got to get on top of things. I’m sorry, but the sight of garbage, the sight of sewage that your guests, which is our guests, have to go through - unacceptable in 2025.
“Are we playing a blind eye to what’s happening in these islands? We need to do something. And I’m calling on the various authorities in the Government, and the management and staff of that airport, please get it together. That is the breadbasket of Eleuthera. We need to do better. And those of you who are getting paid to do a job out there, I don’t know what the conditions [are]. I don’t know what is what, but someone need to step in there. Someone need to do something.
“I’m not being political today. I’m not being political. But it appears that those persons who are in authority, some apparently.. there’s scales on their eyes. They can’t see it and they damn can’t smell. Something’s wrong. We need to...we need to deal with it.”
Residents and nearby businesses are also “tired” and “frustrated” with the state of the airport. Gerald Stuart, owner of the North
On the land use plan, it added: “Such a plan cannot be regarded as one does not exist, while it is extremely preferable that one is promulgated post haste.”
Turning to the site itself, the Appeals Board confirmed that restrictive covenants determining what it could be used for have long expired.
“Having reviewed the restrictive covenants in the title documents of the proposed site, the intended use of the proposed site for the restaurants does not, in the Board’s view, offend the existing restrictive covenants,” it said.
“Moreover, and in any event, having regard to the surrounding fast food businesses and the indication that there will be no drive-through services this use does not seem incompatible once the conditions imposed by the approval are met.” Those conditions relate to the erection of signs, billboards and advertising devices at the site.
Eleuthera Craft and Snack place, a gift shop and deli located near the airport, said he had spoken with Dr Kenneth Romer, director of aviation, months ago about its condition and was promised it would be addressed. Mr Stuart said: “It’s been 100 years since we’ve been promised the airport. All it’s been is promises. They’ve signed many agreements. Many, many agreements. So nothing is happening. I don’t see it. I right in front of the airport. My business is immediately in front of the airport. So nothing is happening.
“The state of the airport is it looks like a chicken coop. When you step off the plane and you look at the roof, it has tar paper on the roof. It looked like a chicken coop... And I spoke with Mr Romer personally. I spoke with him and told him the chicken coop roof looks terrible. The first impression of a tourist coming to the island, it looks terrible. His response is we can address it. They always addressing it, but nothing happens.”
As part of the Family Island Renaissance Project aimed at revitalising airports, the Saudi loan carries a 2.5 percent interest rate. There is a 25-year payback period with the first installment due in a few years. The loan promises an airport that will accommodate 400 passengers in the departure lounge, a complete overhaul of the terminal and a revamped runway.
DELMARO DUNCOMBE
KEITH RUSSELL JR
Bahamian companies more innovative but face barriers
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
AN Inter-American Development Bank (IDB) economist yesterday said that while Bahamian firms are more innovative than their Caribbean counterparts they also face more obstacles to progress in this area.
Dr Jose Luis Saboin, IDB country economist for The Bahamas, said the development bank’s most recent study on growth and productivity in the Caribbean revealed this nation has more innovative firms when compared to its regional counterparts and more potential for green innovation.
“The Bahamas, in terms of general innovation, is outperforming the Caribbean region. We have a larger percentage of firms innovating according to that framework, general innovation, when compared to the
Caribbean view,” said Dr Saboin.
“The other thing that is interesting, when we talk about green innovation, which are the firms that are trying to do a lot of stuff regarding green matters, we see that there is a lot of potential when compared to the Caribbean peers.”
Dr Saboin explained that although The Bahamas outperforms the region by 15 percentage points on innovative companies, the latter also face greater barriers such as access to finance and labour market challenges when compared to Caribbean counterparts.
“The main constraints in The Bahamas for some with potential to innovate is qualification, skills and access to credit,” said Dr Saboin. “It’s interesting for The Bahamas, because those are greater constraints - ten percentage points more than in the Caribbean. So, in relative terms, the firms in The Bahamas have greater constraints than the firms in the Caribbean.”
Nicholas Higgs, the Bahamas Development Bank’s managing director, said many small businesses in The Bahamas face financial barriers when trying to innovate. While some projects are costly, entrepreneurs can take steps to innovate their businesses by streamlining tasks and procedures.
“Most businesses, especially entrepreneurs, they’re trying to figure out the business, trying to get sales, or trying to get that next deal. Innovation barriers, traditionally, are time and cost,” said Mr Higgs.
“Innovation doesn’t have to be expensive. If you have a four-step process, and you can get it to three, you’ve now innovated the business. But a lot of times it is a cost associated with that, and lots of entrepreneurs don’t have that money set aside and it is expensive at times.”
Dr Sylvia Dohnert, executive director for Compete Caribbean, said financing for innovation often comes from companies’
own funds or partners with minimal public or commercial capital. She added that only 4 percent of innovation financing in the Caribbean comes from the public sector, and just 20 percent of regional businesses obtained commercial financing for innovation.
“With respect to financing for innovation, which is a very specific form of financing, most of the financing for innovation came from the business’ own funds or from business partners,” said Dr Dohnert.
“In the Caribbean, about 4 percent came from public sources and the ratio in Latin America, for example, is 10 percent. And then in the Caribbean, about 20 percent of businesses had some sort of commercial financing for innovation and, in Latin America, it’s 35 percent; so much larger. Commercial financing isn’t usually generally the way to finance innovation, because if it’s something that’s truly innovative, it may be very difficult to price.”
Bahamas’ total debt now exceeds $13bn
“Outcomes on both the external and domestic debt primarily reflect central government’s bond maturities. Across the maturity spectrum, the longer maturity and amortizing profile of the multilateral and bilateral credits continue to provide smoothing to debt operations.”
The Government’s key financing transaction during the 2024-2025 second quarter was its much-heralded debt-for-nature swap, whereby it used a $300m foreign currency bank loan from Standard Chartered to pay off more than $218m in outstanding bond debts. The interest savings generated by the cheaper bank loan will be directed to enhanced conservation and management of marine ecosystems.
“External operations were highlighted by the Government’s refinancing of $300m of its debt, comprising $218.1m in eurobonds repurchased via a public tender offer and $81m in commercial bank debt. This liability
management exercise was financed through a new $300 commercial loan,” the Ministry of Finance report said.
“As a consequence, the exposure to capital markets was reduced by 3.6 percentage points to 45.7 percent, while that to financial institutions firmed by 3.9 percentage points to 29.4 percent.” Interest rates on the Government’s outstanding foreign debt were also impacted by the Standard Chartered transaction and debt-for-nature swap.
“Since end-September 2024, the weighted average interest rate (WAIR) on the debt stock declined by 18 basis points to 5.65 percent at end-December 2024,” the Ministry of Finance said.
“The WAIR on external bonds was slightly higher at 7.39 percent, while the external loan measure was reduced by 41 basis points to 6.58 percent.
“The new $300m loan benefited from a comprehensive guarantee package comprising $200m from the Inter-American Development Bank, $70m from Builders Vision and $30m
in credit insurance from XL. The WAIR on domestic loans eased by 34 basis points to 4.36 percent, attributed in part to lower costs associated with Central Bank advances to the Government. Meanwhile, the WAIR on domestic bonds was slightly lower at 4.62 percent.”
Assessing The Bahamas’ total debt, the Ministry of Finance added: “At endDecember 2024, the public sector debt stock was estimated at $13.15bn for respective increases of $81.3m (0.6 percent) and $312.8m (2.4 percent) over end-September 2024 and the year-earlier comparative period.
“Gains in the outstanding debt continued to be driven by the central government’s net financing activities, in contrast to the net repayment positions for agencies and government business enterprises. Foreign currency indebtedness decreased by $133.4m (2.3 percent) during the review quarter, with the annual decline more than halved at $56.5m (1 percent). The outstanding balance
KFC is leaving its ancestral home as parent company moves its corporate office to Texas
By BRUCE SCHREINER Associated Press
KENTUCKY Fried Chicken is being uprooted from its ancestral home state in a shake-up announced Tuesday by its parent company that will relocate the chain's U.S. corporate office to Texas. The food chain now known as KFC — launched by Colonel Harland Sanders and his secret blend of 11 herbs and spices — will be based in Plano, Texas, and about 100 KFC corporate employees will be relocated in the next six months, said Yum Brands, which owns KFC, Taco Bell and Pizza Hut.
The relocation of KFC's corporate office from Louisville brought a quick response from political leaders in Kentucky.
"I am disappointed by this decision and believe the company's founder would be, too," Gov. Andy Beshear said in a statement. "This company's name starts with Kentucky, and it has marketed our state's heritage and culture in the sale of its product."
Beshear, a Democrat, said he hopes Yum rethinks moving KFC employees out of Kentucky. Louisville Mayor Craig Greenberg also expressed disappointment with the corporate
reshuffling of workers to Texas, noting that the brand "was born here and is synonymous with Kentucky."
Yum said the move is part of its broader plans to designate two brand headquarters in the U.S. — in Plano and Irvine, California. KFC and Pizza Hut will be headquartered in Plano, while Taco Bell and Habit Burger & Grill will remain based in Irvine, the company said. Yum added that 90 U.S.-based employees who have worked remotely will be asked to eventually relocate to the campus where their work occurs.
Yum and the KFC Foundation will maintain corporate offices in Louisville, the company said. The governor and mayor said they were grateful those jobs are being retained in Kentucky's largest city.
"I've asked to meet with the Yum CEO soon and am heartened Yum will retain its corporate headquarters and 560 employees here," Greenberg said in his statement. "I will work tirelessly with Yum's leadership to continue growing its presence in Louisville."
Employees being shifted will receive relocation and transition support, the company said.
Yum said that designating two brand headquarters is
meant to foster greater collaboration among its brands and employees.
"These changes position us for sustainable growth and will help us better serve our customers, employees, franchisees and shareholders," Yum CEO David Gibbs said in a news release.
Yum also announced it would provide a $1 million endowment to the University of Louisville's College of Business to fund Yumsponsored scholarships. And the company said KFC will continue its brand presence in Louisville with the goal of building a first-ofits-kind flagship restaurant.
KFC's ties to Kentucky run nearly a century deep. In 1930, at a service station in Corbin, Kentucky, Sanders began feeding travelers and spent the next nine years perfecting his blend of herbs and spices, as well as the basic cooking technique, KFC's website says. And the goateed entrepreneur's likeness is known globally, having been stamped on KFC restaurant signs and chicken buckets. There are now over 24,000 KFC outlets in more than 145 countries and territories around the world, the brand's website says.
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
THE Small Business Development Centre’s (SBDC) top executive yesterday said high-cost, poor quality electricity and communications services are inhibiting innovation by Family Island firms.
Samantha Rolle, its executive director, speaking at an Inter-American Development Bank (IDB) forum on private sector development highlighted the need for reliable infrastructure to facilitate growth throughout The Bahamas.
“There is a need for connectivity and reliable infrastructure. Can your system work without reliable electricity? There are a number of small businesses that want to innovate, but they spend so much cost or expenses around just surviving in terms of connectivity and infrastructure,” she said.
Nicholas Higgs, the Bahamas Development Bank’s managing director, added that a lack of connectivity has not only made it difficult for Family Island entrepreneurs to communicate with clients but has also prevented them from actively taking part in online forums that can help develop their firms.
and share the National Development Plan so firms are aware of the nation’s goals and how they can structure their services and products to accommodate that growth.
“I think in small island states, it’s important to have an understanding of the national strategy and development. When you are looking to invest or expand or improve your business, it always makes sense to understand where is it the nation is going,” Mr Bowe said.
“Meaning we only have a finite number of customers, but we can carry our product to the world if we have the collaboration of the private sector, the public sector, so that we have the foundation, the legislative framework, as well as the public sector support.
accounted for a reduced 43.5 percent of the total, compared with 45 percent in the previous year.
“Quarterly growth in the Bahamian dollar component reached $214.7m (3 percent), elevating the aggregate gain to $369.3m (5.2 percent). Correspondingly, the share of Bahamian dollar liabilities advanced by 1.3 percentage points to 56.5 percent of the outstanding debt.”
As for debt servicing costs, the Ministry of Finance added: “Quarterly debt service costs of $1.542bn exceeded the prior quarter by $930.2m (152.1 percent), and by a more moderate $176.4m (12.9 percent) compared to the same period a year earlier. Outcomes continued to reflect the timing of the central government’s debt amortisations, which included an international bond buy-back transaction.”
“When you look at the Family Islands, that’s a whole different level of infrastructure concerns when it comes to innovation. There are times a lot of the islands don’t have Wi-Fi, and so a lot of persons don’t have even laptops. There are times where persons are writing business plans on their phone,” said Mr Higgs.
“So when we talk about innovating some of the basic things that we can take for granted on the Family Islands, they don’t have, and so you have some of these trainings online with the CDB (Caribbean Development Bank), IDB. Some of them don’t have even good connection to capture that and follow along. So infrastructure is a challenge to innovation, especially on the Family Islands, where they don’t have these basic necessities.”
Gowon Bowe, Fidelity Bank (Bahamas) chief executive, said that while The Bahamas has “no shortage of innovation” there is a need to formalise
“One of the greatest challenges you see domestically is an absence of that clear national development strategy and plan. We have no shortage of innovation… there are persons with the ideas, but each of those took a risk because they didn’t quite understand what was going to be the wider national strategy.”
Mr Bowe added that while there are barriers to innovation financing, there is no shortage of resources within The Bahamas and the country needs to develop new financing options.
“The reality is that there’s a tremendous amount of resources within the country, but what is missing is the formal structure to say the various tiers. When we talk about commercial paper, we talk about bond markets, we talk about debt financing, we talk about angel investors, all of those are terms we hear in developed countries, but in small island states there’s a need for the development of that structure to allow persons to access funding based on the risks that they present but also in a structured manner,” said Mr Bowe.
SAMANTHA ROLLE
‘You’ll never claw back’: Deficit five times’ target
driven primarily by higher real property and international trade transactions.
Total spending jumped by $61.4m to hit $335.5m as opposed to $274.1m in November 2023, representing a 22.4 percent increase year-over-year. Recurrent spending, which covers the Government’s fixed costs such as civil service salaries, rents and supplies of goods and services, rose by $39.9m or 16.5 percent year-over-year to $281.9m as compared to the prior year’s $242m.
And capital expenditure on infrastructure projects and such like surged by $21.6m, or 67.5 percent, to $53.6m for November 2024 as compared to the year before’s $32m. Revenue, meanwhile, continued to beat prior year targets at $253.1m - a 21.3 percent or $44.5m jump over November 2023’s $208.6m, but this was insufficient to offset the growth in spending.
“I wonder how they are going to claw back that amount,” Dr Sands challenged last night, pointing to the near-$300m difference between the 2024-2025 full-year target and deficit through the five months to end-November. “I don’t know how they are planning to make that up.
“I don’t think we’ve ever seen the economy perform so aggressively as to wipe out a $300m shortfall in the second half of the fiscal year. For this administration to clam on one hand that it will meet its Budget deficit target this year, but
on the other be off not just one or two times’, but five times’ off its predicted fiscal deficit at a point when traditionally they ought to be further along than they are raises some questions about their connection with reality.”
And, acknowledging that the 2024-2025 fiscal year’s deficit target is supposed to be the stepping stone to a $448.2m surplus in the following 2025-2026 fiscal period, Dr Sands asserted that “I wouldn’t hold our breath” that this will be achieved.
The Government will likely counter that the Budget’s cyclical nature makes it impossible to predict the full-year outcome until all the numbers are in. This is because the Government typically earns the bulk of its income during the revenue-rich second half of the fiscal year, which is the period The Bahamas is now in.
This coincides with peak winter tourism and economic activity, as well as the payment of Business Licence fees, the bulk of real property taxes, commercial vehicle licensing and increased cruise ship passenger fees.
But Dr Sands argued: “I think we should be very concerned when we look at what has become a structural delay in payment to the Government’s vendors. There’s a consistent pattern where the Government of The Bahamas is late or very late in paying its bills except those that they feel are politically advantageous to them. I ask whether
this government is being frank about its ability to keep up with its budgeted expenses.”
Pointing to “garbage piling up at hospitals and healthcare facilities” as one alleged consequences of purported vendor payment delays, he added: “While we’ve had unprecedented levels of tax collection we’ve also had unprecedented levels of discretionary and other spending. If we continue to spend, spend, spend, there’s no way you’re going rightsize the fiscal position of The Bahamas.”
Continuing to question whether the increased tourism arrivals numbers are “making it to the average man and woman on the street”, Dr Sands said: “They are certainly not reflected in the fiscal position of the Government. What I’m hoping to hear [in the mid-year Budget] is a full-throated, honest assessment of the position we are in.
“Let’s hope this administration stops playing politics, comes clean with the Bahamian people and let’s us know what the contingencies are. The cost of money may increase, the availability of money may decrease and many of the things we are spending money on are not essential. There’s only so many cheques we can put in the draw or hide under the table given we have cashbased accounting.”
Dr Sands, reiterating The Bahamas’ vulnerability to external shocks and hurricanes, said this nation’s
Deltec close to settling $13.475m US Justice Department dispute
FROM PAGE B1
$13.475m. “On January 27, 2025, Deltec filed a timely claim to defend against the [US] government’s action, which seeks forfeiture of currency seized from its Mitsubishi UFJ Trust and Banking Corporation Account ending in 0328,” the Bahamian bank said.
“Deltec and the United States, through their counsel, have agreed to terms that will settle all issues pending in this case. Pursuant to Department of Justice policy, the settlement has been approved by the deputy attorney general of the United States.”
But, with other potential claimants to the $13.475m having until March 1, 2025,
to intervene the two sides are unable to seek the eastern Virginia court’s approval for their settlement. “Until that period has expired, Deltec and the [US] government will not know whether another person will seek standing to contest the forfeiture,” Deltec said. “Therefore, at this time, the parties cannot submit their proposed settlement to the court for its approval. If the claim period elapses with no further claims, the parties expect to promptly file a motion for settlement with this court.” The Bahamian bank is thus making good on a promise it gave when the US Secret Service first seized the funds from its US
correspondent account with Mitsubishi UFJ Trust and Banking Corporation on June 13, 2023. It told Tribune Business at that time:
“Deltec Bank has been proactively co-operating with the related investigation of the US Attorney’s Office for the eastern district of Virginia in order to provide information and assistance consistent with applicable laws.
“We believe that Deltec Bank has a legitimate claim, under US laws, that the cash seized from its account at Mitsubishi UFJ Trust and Banking should be returned, and it intends to assert such claim as part of the forfeiture process defined under US law.” It has now done exactly that.
fiscal weakness leaves it especially exposed to the uncertainties stemming from Donald Trump’s economic, trade and tariff policies that some are speculating could trigger trade wars and even a global recession if fully implemented.
“I think we should be concerned. We really should be concerned,” he added. “The Government is picking figures and saying everything is wonderful. Why not take some responsibility for what this administration does with its spending and signal to the Bahamian people - I don’t want to use a swear word like austerity - but the counter-cyclical approach to the challenges we’ve seen over the years, we’ve got to be watching our pennies as opposed to spending in an environment where we don’t know where the next dollar is coming from.
“This ought not to be electioneering, although I’m sure they will promise a chicken in every pot to brighten their prospects and to hell with where the money is going to come from. Let’s get elected and we’ll worry where the money is coming from on the other side.”
The expanding deficit is also ill-timed for the Government given that a general election has to be called within the next 19 months, as it would typically - in common with many of its predecessorslook to prime the spending pump around now to create a voting climate more favourable for its prospects.
The US Secret Service had previously alleged that the $13.475m represented laundered fraud proceeds generated by a scam known as “pig butchering”. This involves scammers and con artists setting up “spoofed” Internet domains and websites, with addresses and features similar to those of legitimate crypto currency trading and investment platforms.
They then target victims with “unsolicited” phone calls, using techniques common to those employed in so-called ‘romance’ frauds to groom them, develop a relationship and gain their confidence. Finally, the victims are fooled into investing in crypto currency via the fake platforms that have been created, with the fraudsters stealing all their money.
The US Justice Department, in its December 20, 2024, legal filings that sought forfeiture of the seized $13.475m to the federal authorities, alleged that this sum was part of a larger $29.5m that was transferred into Deltec’s Mitsubishi account via 224 wire transfers between June 2022 and March 2023. There is nothing, though, to suggest that Deltec, its executives, staff and agents have done anything wrong.
Explaining how the scheme worked, the US Justice Department alleged: “The US claim arises from an investment fraud scheme perpetrated
It is also unclear why the Government would choose to release the monthly fiscal report for November 2024 now given that the mid-year Budget is due to be presented in the House of Assembly next week Wednesday, although observers yesterday again suggested it was likely to be “taking the sting” out of potentially difficult news and managing public expectations.
And the Government may have revenue-generating measures of its own to announce such as the long-promised blue carbon credits created from monetising this nation’s seagrass meadows and mangroves.
Still, it is also likely that the latest fiscal figures may attract scrutiny from the credit rating agencies, Moody’s and Standard & Poor’s (S&P).
Revenues, though, continue to beat prior year numbers. “Tax collections improved year-over-year by 25.7 percent ($47.1m) to $230.5m,” the Ministry of Finance said yesterday of November 2024. “Property taxes rose by $14m to $21.1m, underpinned by gains in the commercial and foreign-owned undeveloped property components.
“International trade and transactions taxes were higher by $23.5m at $85.3m due to growth in excise duty and departure tax yields. Non-tax revenue aggregated $22.6m for a 7.1 percent ($1.5m) year-over-year increase that was largely associated with Immigration and port fees.
against numerous individual victims. Co-conspirators used social engineering to convince victims to ‘invest’ in fraudulent crypto currency investment websites which, in fact, funnelled victim funds to those perpetrating the fraud, who then laundered those funds frequently to a location outside the US.
“Specifically, the coconspirators were directing victim monies to a number of US bank accounts in the name of various shell companies. As relevant here, the shell company accounts would generally forward the victim monies in batches to a correspondent account held at Mitsubishi UFJ Trust and Banking Corporation by Bank One.
“From there, the funds were further forwarded to an account ending in 0328 held by Bank Two at Mitsubishi in New York, and then forwarded to two bank accounts at Bank Two in a location abroad.” ‘Bank Two’ is easily identifiable as Deltec.
“As of the filing of this complaint, there are hundreds of victim transactions associated with this scam syndicate that operates primarily through the use of spoofed domains and is responsible for more than $80m directly traceable to reported victim losses,” the US Justice Department added.
“Once it obtained the victims’ funds, the syndicate utilised various money
“During the review month, revenue receipts totaled $253.1m, a 23.7 percent improvement from the prior year, with the tax component higher by $47.1m at $230.5m.”
As for government spending, the Ministry of Finance added:
“The $281.9m in recurrent outlays for the month represented an increase of 16.5 percent ($39.9m) from the corresponding period in the prior year. Use of goods and services increased by $16.7m to $60.9m, mainly on account of payment for utilities, acquisition of various services and special financial transactions.
“Subsidies grew by $10.1m to $42m due to higher transfers to public non-financial corporations. Capital expenditures widened by $21.6m to $53.6m. The bulk was expended for capital transfers (52.6 percent), and the remaining 47.4 percent represented the acquisition of nonfinancial assets.”
Turning to the impact of all this on the Government’s debt position, the Ministry of Finance added:
“During the review month, central government’s debt outstanding advanced by an estimated $40.4m.
“The $432.3m in proceeds from borrowings was derived from foreign currency (69.4 percent) and domestic currency sources (30.6 percent). Aggregate debt repayment of $392m was allocated between domestic (23.4 percent) and foreign (76.6 percent) currency components.”
laundering techniques to conceal the nature, source and origin of the victims’ funds. These techniques included the use of money couriers, commercially unnecessary numbers of financial transactions, pooling of victim monies and shell accounts.”
Deltec, in its initial mid-2023 statement on the affair, said: ““The seizure warrants relate to fraud charges against two individual defendants. According to the documents made public by the Eastern District of Virginia, the individual defendants directed the fraudulently obtained money into a number of bank accounts including, among others, a Deltec Bank account at Mitsubishi UFJ Trust and Banking, from which money was seized.... “Deltec Bank is committed to abiding by all relevant anti-money laundering laws and maintains that all actions taken by the bank are in line with applicable policies and regulatory requirements... Deltec Bank takes its responsibility to clients and the financial centre as a whole very seriously, and ensures that the highest standards of conduct are upheld. As a matter of practice, Deltec Bank continuously enhances its compliance and control framework, which is evident in our ability to proactively work with the authorities.”
Airbnb sues New Orleans for trying to make it responsible for regulating short term rentals
By JACK BROOK Associated Press
AIRBNB is suing the City of New Orleans for requiring the company and short-term rental platforms ensure properties they market are in compliance with city laws.
"What we're looking at now due to Airbnb's lawsuit is that they do not want to be regulated," City Council President J.P. Morrell said in a late afternoon Tuesday statement.
For years, New Orleans leaders have struggled with how to manage the influx of illegal short-term rentals catering to the millions of visitors who flock to The Big Easy annually while managing a lack of affordable housing.
A federal court struck down a 2019 New Orleans policy barring short-term rentals at properties owned by out-of-state residents.
The city responded by adopting new regulations in 2023 mandating Airbnb owners live on site and limiting short-term rentals to one per block, but enforcing these rules proved difficult and illegal properties were easily able to resurface on Airbnb, city leaders say. A federal appeals court is currently reviewing these policies.
Last year, the city council adopted regulations set to go into effect in June requiring Airbnb and other companies verify that all New Orleans properties listed on their platform have permits from the city. Morrell called the policy a "game-changer" that would "gut the ability to illegally list fake permits and Airbnbs."
Airbnb said it should not be tasked with implementing the city's policies. The company has pushed back against other cities' efforts to regulate it, including suing New York and San Francisco.
Airbnb decries the city's regulatory 'regime'
In its lawsuit filed in federal court last week, Airbnb said it has no responsibility for the actions of its hosts, citing the same law that protects social media companies from liability for users' posts. And the company denied that it had any obligation to verify listings were in compliance with city regulations.
"It is the government's job to enforce its laws, not Airbnb's," the lawsuit said. It described the city's regulations as a "highly punitive enforcement regime" that violates "homeowners' longstanding and fundamental property rights."
Airbnb also protested having to turn over "confidential, sensitive and private data" such as taxes and fees it collected and the number of bookings per property in monthly reports submitted to the city.
A "typical host" in New Orleans earned $16,000 in 2023 and "hosting strengthens local economies and contributes to the cultural richness New Orleans is known for," the lawsuit states.
An abundance of illegal Airbnb listings
There are currently about 1,350 non-commercial short-term rental properties with legal licenses, according to City of New Orleans data.
But there are more than 7,000 active Airbnb listings in New Orleans revealing thousands of illegal shortterm rentals, said Angela Owczarek, an affordable housing advocate with the Jane Place Neighborhood Sustainability Initiative.
New Orleans is experiencing an affordable housing crisis mirroring many cities around the country, said Monique Blossom, director of policy at the Louisiana Fair Housing Action Center.
The city had a deficit of 47,000 housing units that someone making at or below the city's median income could afford, according to a 2022 report from the National Low Income Housing Coalition.
The city has a population of less than 400,000 residents based on U.S. Census data.
"Airbnbs and short-term rentals play into that, taking residential units off the market and saving them for tourists instead of having them available for the families that want to live and work in New Orleans or who are already here," Blossom said.
Morrell, the city council president, suggested the lawsuit meant the city should ban Airbnb. "If we cannot regulate short term rentals, there will not be any," he said.
Another councilmember, Oliver Thomas, said the city should first wait to see how pending litigation plays out.
Other councilmembers and a City spokesperson did not provide comment.
Skyrocketing costs for some Airbnb owners
Airbnb's lawsuit includes several other plaintiffs who are short-term rental property owners in New Orleans, including longtime Airbnb hosts Bret Bodin, 64, and Brad Newell, 47, who bought a home together in the historic Treme neighborhood in 2013.
Tens of millions of dead people aren’t getting Social Security checks, despite Trump and Musk claims
By FATIMA HUSSEIN Associated Press
THE Trump administration is falsely claiming that tens of millions of dead people over 100 years old are receiving Social Security payments.
Over the past few days, President Donald Trump and billionaire adviser Elon Musk have said on social media and in press briefings that people who are 100, 200 and even 300 years old are improperly getting benefits — a "HUGE problem," Musk wrote, as his Department of Government Efficiency digs into federal agencies to root out waste, fraud and abuse.
It is true that improper payments have been made, including some to dead people. But the numbers thrown out by Musk and the White House are overstated and misrepresent Social Security data. What has the Trump administration said about payments to centenarians?
On Tuesday, Trump said at a press briefing in Florida that "we have millions and millions of people over 100 years old" receiving Social Security benefits. "They're obviously fraudulent or incompetent," Trump said.
"If you take all of those millions of people off Social Security, all of a sudden we have a very powerful Social Security with people that are 80 and 70 and 90, but not 200 years old," he said. He also said that there's one person in the system listed as 360 years old.
Late Monday, Musk posted a slew of posts on his social media platform X, including: "Maybe Twilight is real and there are a lot of vampires collecting Social Security," and "Having tens of millions of people marked in Social Security as "ALIVE" when they are definitely dead is a HUGE problem. Obviously. Some of these people would have been alive before America existed as a country. Think about that for a second …"
How big of a problem is Social Security fraud?
A July 2024 report from Social Security's inspector general states that from fiscal years 2015 through 2022, the agency paid out almost $8.6 trillion in benefits, including $71.8 billion — or less than 1% — in improper payments. Most of the erroneous payments were overpayments to living people. In addition, in early January, the U.S. Treasury clawed back more than $31 million in a variety of federal payments— not just Social Security payments— that improperly went to dead people, a recovery that former Treasury official David Lebryk said was "just the tip of the iceberg." The money was reclaimed as part of a five-month pilot program after Congress gave the Department of Treasury temporary access to the Social Security Administration's "Full Death Master File" for three years as part of the omnibus appropriations bill in 2021. The SSA
maintains the most complete federal database of individuals who have died, and the file contains more than 142 million records, which go back to 1899, according to the Treasury. Treasury estimated in January that it would recover more than $215 million during its three-year access period, which runs from December 2023 through 2026.
So are tens of millions of people over 100 years old receiving benefits?
No. Part of the confusion comes from Social Security's software system called COBOL, which has a lack of date type in its programming. This means that some entries with missing or incomplete birthdates will default to a reference point of more than 150 years ago.
The news organization WIRED first reported on the use of COBOL programming language at the Social Security Administration.
THE AIRBNB app icon is displayed on an iPad screen in Washington, D.C., May 8, 2021.
Photo:Patrick Semansky/AP
TRUMP SAYS AP WILL CONTINUE TO BE CURTAILED AT WHITE HOUSE UNTIL IT CHANGES
STYLE TO GULF OF
By DAVID BAUDER
AP Media Writer
PRESIDENT Donald Trump said Tuesday that he will continue to restrict The Associated Press' access to his events and news conferences until the news outlet goes along with his renaming of the Gulf of Mexico in its reports. He acknowledged that the move was a presidential retaliation against the news agency's editorial policy.
"We're going to keep them out until such time as they agree that it's the Gulf of America," Trump said, speaking to reporters who witnessed the signing of an executive order at Mar-aLago, his Florida estate.
"We're very proud of this country, and we want it to be the Gulf of America."
It was the first time the president himself had commented on the issue since the White House began not allowing AP to cover several of his events last week. Two journalists from AP were denied entrance to Mar-a-Lago on Tuesday; they watched a live television feed of Trump's
AMERICA
remarks and were unable to ask questions. Shortly after taking office, Trump renamed the international body of water, which borders the United States, Mexico and other countries and has been named the Gulf of Mexico for more than 400 years. The AP, whose influential Stylebook is the arbiter for editorial choices at thousands of news outlets and other editorial operations, said it would continue to use Gulf of Mexico and note Trump's decision, to ensure that names of geographical features are recognizable around the world.
"The Associated Press just refuses to go with what the law is," Trump said, an apparent reference to his executive order renaming the Gulf. No law prevents the AP from choosing the style it deems fit.
AP spokeswoman Lauren Easton said Tuesday that "this is about the government telling the public and press what words to use and retaliating if they do not follow government orders. The White House
NOTICE
NOTICE is hereby given that GEORGE LAGUERRE of Ethan Road, Yellow Eder, New Providence, Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 12th day of February, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
has restricted AP's coverage of presidential events because of how we refer to a location."
AP frames it as a freespeech issue
While the AP has framed the dispute as a First Amendment issue, Trump's team says access to its events — most of which are funded by tax dollars — is a privilege extended by invitation, and that while AP is still permitted on White House grounds, it no longer has the right to be part of pools that cover events where space is limited.
While Trump characterized AP as standing alone against the name change, outlets like The New York Times and The Washington Post are also using Gulf of Mexico. Fox News Channel said it will use Gulf of America as a reference.
Axios, noting that it primarily serves a U.S. audience, said its reference will be "Gulf of America (renamed by the U.S. from Gulf of Mexico)." Additionally, AP's myriad customers that use its content follow AP style.
It's all part of an ongoing series of actions by the White House that has targeted legacy media. The Pentagon has evicted eight news organizations from workspaces at the Pentagon, and Trump is continuing his lawsuit against CBS News for how it edited a "60 Minutes" interview with his Democratic opponent, Kamala Harris, last fall.
Elon Musk, who is coordinating cutbacks in government staffing for Trump, posted on his X social media platform after a "60 Minutes" broadcast Sunday that people there "deserve a long prison sentence."
is hereby given that HOSTIA RAMOS SHERLYN YULLIANA of #10 Edmond Street, New Providence, The Bahamas, 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 12th day of February, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
Trump has issues with AP beyond the Gulf disagreement
Through a story in Axios over the weekend, the Trump administration broadened its complaints against the AP beyond the Gulf dispute. White House deputy chief of staff Taylor Budowich told Axios that the administration is concerned about AP "weaponizing language through their Stylebook to push a partisan world view."
Specifically, it objects to the Stylebook's use of the phrase "gender-affirming care" to describe medical treatments for transgender people, and the capitalization of Black and not white in racial descriptions.
Trump said that some of the phrases that the AP wants to use are "ridiculous" and "obsolete." "I guess some are OK, but
many aren't," the president said, without being specific. He also said, referring to himself in the third person, that AP "has been very, very wrong on the election on Trump and the treatment of Trump and other things having to do with Trump and Republicans and conservatives. And they're doing us no favors. And I guess I'm doing them no favors. That's the way life works."
It was unclear which election he was referring to. The AP reported Joe Biden as the winner of the 2020 election against Trump, and Trump the victor over Harris last fall.
Trump's Mar-a-Lago appearance on Tuesday was opened to several news outlets that were not part of the small group of reporters that have been traveling with the president in Florida since Friday.
NOTICE is hereby given that MARIA DEL ROSARIO RAMOS GUTIERREZ of #10 Edmond Street, New Providence, The Bahamas, 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 12th day of February, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE is hereby given that LAFRANCE FRANCIQUE INNOCENT of P.O.Box N-1686 Cable Beach, New Providence, The Bahamas, 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 12th day of February, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE is hereby given that JULIE OBAS of P.O.Box SS-19058 off Shirley Street, New Providence, The Bahamas, 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 12th day of February, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
LARA TRUMP, left, and White House press secretary Karoline Leavitt pose for a picture in the Briefing Room of the White House, Tuesday, Feb. 18, 2025, in Washington. Photo:Alex Brandon/AP
Wall Street rises to a record following a small gain for the S&P 500
By STAN CHOE AP Business Writer
U.S. stocks crept to a record as the S&P 500 nudged higher after a quiet Tuesday of trading.
The main measure of Wall Street's health rose 0.2% to finish just above its all-time closing high set last month. Most of the stocks within the index rose, as it danced around the milestone through the day.
The Dow Jones Industrial Average added 10 points, or less than 0.1%, while the Nasdaq composite rose 0.1%.
Entergy helped lead the way after rallying 6%.
The electric company, which serves customers in Arkansas, Louisiana, Mississippi and Texas, reported stronger profit for the latest quarter than analysts expected.
That helped offset a 5.5% drop for Conagra Brands, which lowered its forecasts for upcoming profit and
other financial measures.
The food company said supply issues have hurt two of its product lines: frozen meals containing chicken and frozen vegetables. It also said shifting values of foreign currencies are hurting its profits.
Meta Platforms weighed on the market after falling 2.8% It was the first drop for the parent of Facebook and Instagram since Jan. 16, and it had leaped more than 20% over that 20-day winning streak.
U.S. stocks have climbed back to record heights thank in large part to stronger-than-expected profit reports, even after big disruptions recently seemed set to derail Wall Street's long, upward trend that began in 2022.
Hanging over everything has been the threat of a punishing global trade war following President Donald Trump's announcements of tariffs. But Wall Street has been taking such actions
increasingly in stride, believing they are merely tools for negotiations and that they'll ultimately prove to be less painful for markets and the economy than they may seem initially.
Then there's DeepSeek, the Chinese artificial-intelligence startup that said it was able to match the performance of big U.S. rivals without having to use top-of-the-line chips. That raised worries about a pullback in AI investment,
which has been a central reason for the market's stellar gains in recent years. But big U.S. companies have since said in recent weeks that they still plan to invest billions of dollars in AI, even with DeepSeek's disruption.
Such optimism has global fund managers feeling so confident that they're piling into stocks and holding only 3.5% of their portfolios in the safety of cash, according to a survey by Bank
CURRENCY traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), top left, and the foreign exchange rate between U.S. dollar and South Korean won, top center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Feb. 17, 2025. Photo:Ahn Young-joon/AP
of America. That's the lowest since 2010, strategist Michael Hartnett said in a BofA Global Research report. Helping to support the fervor has been strong profit reports from Entergy and other big U.S. businesses. Companies in the S&P 500 are on track to deliver nearly 17% growth in their earnings per share for the final three months of 2024, compared with a year earlier. That would be the best growth since 2021, according to FactSet.
Still, threats continue to hang over the stock market.
Last week, two reports showed inflation unexpectedly worsened across the United States last month.
Traders have been paring their expectations for possible cuts to rates through 2025, with a notable number saying they foresee zero. That in turn has pushed up Treasury yields in the bond market, which typically drag downward on prices for stocks and other investments.
Treasury yields rose again Tuesday, with the yield on the 10-year Treasury rising to 4.55% from 4.48% late Friday. Like the U.S. stock market, bond trading was closed Monday in observance of the Presidents Day holiday.
Such stubborn inflation may force a halt to the Federal Reserve's cuts to interest rates, which began in September in order to take pressure off the economy and help the job market.
