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TUESDAY, MARCH 13, 2018
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Minnis ‘called out’ on Schooner Bay
Galanis ‘blindsided’ by Minister’s attack
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A
BAHAMIAN businessman yesterday challenged the Government to demonstrate its support for local entrepreneurs after a new front erupted in his battle with a foreign developer. Glen and Tracy Kelly, who were previously evicted from their Crown Land farm at Abaco’s Schooner Bay, have now been hit with a lawsuit that seeks to bar them from operating a property management business at the project. The action, launched by Schooner Bay Ventures, alleges that the couple - as homeowners at the 220acre development - have breached the Declaration of Covenants and Restrictions all property purchasers must sign up to. This Declaration, according to legal filings obtained by Tribune Business,
* Evicted farmers hit with new lawsuit * Ask: Does Gov’t support local entrepreneurs? * As foreign developer ‘hopes we’ll give up’
SEE PAGE 7
A VIEW of Schooner Bay in Abaco.
A BAHAMIAN accountant yesterday admitted he was “blindsided” by the Minister of Housing’s attack on his firm’s integrity during the mid-year Budget debate. Philip Galanis, principal of HLB Galanis & Company, told Tribune Business he first wanted to meet with Romauld Ferreira, minister of the environment and housing, before giving a full public response to the criticism levelled against his business. “I don’t want to blindside him like we were blindsided in Parliament,” the former PLP MP and Senator said. “I would not want wish to comment publicly before I’ve discussed the matter with him. “I would want to extend to him the courtesy of first discussing the matter with him. I would not wish to broadside or blindside my client without speaking to him first.”
* FERREIRA: FIRM ‘COLLECTED WHOPPING’ SUM FOR LITTLE WORK * ACCOUNTANT TO MEET MINISTER BEFORE FULL REPLY * JUST FOUR OF SEVEN LANDFILL BIDS PICK UP RFP Mr Galanis refused to comment further, but Tribune Business sources suggested he and his accounting firm view Mr Ferreira’s comments as inaccurate and ‘off base’, and feel he may have been misled. The Minister, leading off his mid-year Budget debate, suggested HLB Galanis & Co “collected whopping” multi-million dollar sums despite doing little to no work in relation
SEE PAGE 6
BAHAMAS ‘FAILED TO READ TEA LEAVES’ ON CORPORATE TAX By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas’ failure “to read the tea leaves” and introduce a corporate income tax “for ourselves” has contributed to Europe’s planned ‘blacklisting’, a financial executive argued yesterday. Paul Moss, Dominion Management Services’ president, told Tribune Business that implementing such a tax would mean the European Union (EU) “cannot accuse us of being a tax haven” that siphons off revenue from its 28 member states. With the EU set to confirm today whether it will make good on threats to ‘blacklist’ the Bahamas for being non-cooperative in the fight against tax avoidance, Mr Moss said the move stemmed from the Government’s inability to
* Should have implemented regime ‘for ourselves’ * Gov’t failed to heed ‘warning shot across bows’ * DNA: Use for ‘equitable, progressive’ tax reform act when it received “a shot across the bows” last year. The EU Council, in announcing its original ‘blacklist’ in early December 2017, gave the Bahamas and seven other Caribbean nations a reprieve to allow them to recover from the devastation caused by Hurricanes Irma and Maria. Suggesting that this had lulled the Minnis administration into a false sense of security, Mr Moss said the Deputy Prime Minister’s comments about being ‘blindsided’ by last week’s EU move “would be laughable if not so serious”. He warned that a ‘blacklisting’ could result in the Bahamas losing corporate and high net worth financial
services business, especially if European-owned banking institutions started to apply “greater scrutiny” to transactions originating from this nation and thereby delayed their completion. “The Bahamas and our guys did not read the tea leaves,” Mr Moss told Tribune Business. “When they got that reprieve they thought they were doing something exceptional with their actions, not recognising that if it were not for the hurricanes we would be on that list. “Their inability to do what they should have done has landed us where we are now. They’re [the Government] going to move heaven and hell to
get us off that list, but this is something they should have done when they got that shot across the bows.” Mr Moss said he had “no doubt” that the EU will proceed with ‘blacklisting’ the Bahamas despite the last-ditch visit to Europe by the Deputy Prime Minister and minister of financial services, K P Turnquest and Brent Symonette, respectively, to plead this nation’s case for an 11th hour reprieve. He then reiterated his frequent calls for the Bahamas to implement a low-rate corporate income tax, which many observers believe the EU wants to force upon this nation and is its ultimate goal.
PAUL MOSS Mr Moss, one of the few local owners of a Bahamas-based international financial services firm, again argued that implementing such a tax would enable the Bahamas to shed the ‘tax haven’ label and open up the way to agreeing double taxation and investment treaties with other countries. “I have said the Government ought to do things
for themselves, and had we done it - implementation of a corporate income tax - which captures revenue from the Bahamas, no one would accuse us of being a tax haven siphoning off revenues from countries in Europe,” he told Tribune Business. “I think they have not thought out a tax regime for the Bahamas that would ameliorate the situation. We introduced VAT when we had the opportunity to do something innovative and creative for the economy. We will eventually get off the list, but it’s not going to take the Bahamas out of harm’s way.” The threatened EU ‘blacklisting’ of the Bahamas is tied directly to the Organisation for Economic Co-Operation and Development’s (OECD) Base Erosion and
SEE PAGE 6
Customer’s 20-year Job fairs create 900 ‘concrete block’ to New Providence jobs Water Corp cut-off By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Water & Sewerage Corporation gave $5.9 million back to consumers over 21 months, while one delinquent customer “blocked meter access” with concrete to enjoy uninterrupted supply for 20 years. The Ernst & Young (EY) forensic accounting probe into the Corporation’s activities highlighted what it described as “a number of areas with inadequate controls” when it came to billing customers and collecting revenues. Based on information supplied by Bradley Darville, the Governmentowned corporation’s senior manager of business
* $5.9M RETURNED TO CUSTOMERS OVER 21 MONTHS * FORENSIC AUDIT IDENTIFIES ‘INADEQUATE CONTROLS’ * DISCONNECTIONS ‘HIGH RISK’; STEALING REVEALED operations, EY found that it returned a net $5.871 million to customers during the period January 1, 2016 to October 17, 2017 as a result of some 24,271 account “adjustments”.
SEE PAGE 4
By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net
ALMOST 900 persons on New Providence have gained jobs through the Labour Department’s ‘Labour on the Blocks’ employment fairs, its top official revealed yesterday. Robert Farquharson, director of labour, said: “The ‘Labour on the Blocks’ events have been extremely successful. Todate we have employed almost 900 persons in New Providence. The numbers in Grand Bahama are still coming in, but we can say that a number of persons in Grand Bahama were employed.” He added that with a number of investment projects proposed for Grand Bahama, the Department
of Labour will host additional jobs fairs on that island. “We look forward to working with all of our stakeholders and employers to making this upcoming ‘Labour on the Blocks’ a successful one,” said Mr Farquharson. The next ‘Labour on the Blocks’ job fair is slated for March 24 on Windsor Park. “We have confirmation from a significant number of employers who will be there,” he added. The ‘Labour on the Blocks’ job recruitment and registration drive was launched in January in the Bain and Grants Town area. The initiative targets job seekers who may have given up on finding work, or may not understand the avenues they should take
SEE PAGE 4
THE TRIBUNE
Tuesday, March 13, 2018, PAGE 3
NIB’s IT woes cause 43% productivity fall By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net THE National Insurance Board’s (NIB) information technology (IT) challenges have caused a 43 per cent decline in productivity, a Cabinet minister revealed yesterday. Brensil Rolle, minister of state for the public service and National Insurance, lamented that an additional $2 million will have to be spent on “bug” fixes and maintenance enhancements for NIB’s V3 System. Mr Rolle, during
his contribution to the mid-year Budget debate, blamed the Christie administration for implementing a system he labelled “not ready” and “not able to do the job”. “They just wanted to make an announcement that they were doing something and it is with regret that the public is suffering,” he argued. “NIB has had many challenges with its V3 system. Many challenges have impacted NIB’s operation. “The issues are so farreaching and have impacted the Bahamian public at large. The system requires
an overwhelming amount of bug fixes. At the end of April 2017, the NIB Board had already spent $1.4 million to address some of the bug fixes and enhancements in its maintenance packages. It is projected that by the end of 2019 an additional $2.3 million will be spent by the Board on fixes.” Mr Rolle added that there was a one-year warranty on the system’s software, but100 ‘bugs’ were only uncovered after the period expired. “NIB has seen a major decline in productivity as a result of the system,” he
said. “There has been a 43 per cent reduction in productivity. We are going to address that issue. We will address the backlog of claims. From April 2016 to November 2017 there were approximately 4,660 short-term benefit claims outstanding. “Over that period there were 1,887 long term claims made that were not addressed.” He warned that NIB “will probably lose money again for 2017”, and added: “We are committed to stopping this downward spiral by aggressively enforcing compliance.”
CHAMBER TO ‘MONITOR TRADE MISSION RETURNS’ By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net THE Bahamas Chamber of Commerce’s chief executive yesterday said the organisation will be “monitoring the returns” from its trade mission to Washington DC last week. Edison Sumner told Tribune Business: “The trade mission went extremely well. We met with a number of business persons in the DC and Baltimore area. We had meetings with the DC Chamber and Baltimore Chamber. “It was a 16-member delegation from both the public and private sector. I led the private sector delegation and the minister of state for Grand Bahama, Kwasi Thompson, led the Government delegation.” Mr Sumner said the Chamber of Commerce signed a Memorandum
of Understanding (MoU) with the DC Chamber. “We established some relationships and we will be monitoring to see how those relationships grow over time,” he added. “The MOU will advance the relationship between the DC Chamber and the Bahamas Chamber, and explore opportunities for trade and commerce. We were very excited about that exchange.” “We will monitor the returns on it as far as business development side,” Mr Sumner added of the mission. “We feel that based on feed back we are going to see some positive results, and see some businesses established in Bahamas or at least some joint ventures. “We don’t expect anything to materialise immediately but we are hopeful. There was a lot of interest expressed in Grand Bahama and a lot of talk about trying to attract new
business into GB on the
technology side.”
NOTICE
Notice is hereby given that BGRS Certificate No. 50014 in the amount of $500.00 is lost and was due to mature 2017. If this Certificate is found, please write to P.O. Box SS-5917 Nassau, Bahamas.
NOTICE
NOTICE is hereby given that YOHANCE AKINTOLA BOWEN, #101 Explorer Way, Hudson Avenue, Freeport, Grand Bahama, 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 13th day of March, 2018 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Freeport, Bahamas.
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL The public is hereby advised that I, DERNIER ANDREA MULLINGS of Matthew Town, Inagua, Bahamas, General Delivery, intend to change my name to DERNIER ANDREA INGRAHAM SR. If there are any objections to the change of name by deed poll, you may write such objections to the Chief Passport Officer, P.O. Box N-742, Nassau, N.P., The Bahamas no later than thirty (30) days after the date of the publication of this notice.
NOTICE
NOTICE is hereby given that JEFFREY PIERRE of Mackey Street, 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 6th day of March, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, Bahamas.
PAGE 4, Tuesday, March 13, 2018
THE TRIBUNE
Tourism pitches to US businesswomen By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Ministry of Tourism has sold the Bahamas’ benefits to more than 1,200 influential businesswomen from across the US. Already a corporate sponsor of the Black Enterprise Women of Power Summit (BEWOP), the
Ministry took centre stage at the final luncheon of the organisation’s three-day conference in Orlando. Led by Linville Johnson, director of multicultural markets, the Ministry of Tourism gave a presentation featuring visuals of the Bahamas’ beaches, clear waters and other attributes. It also gave two winners of the event’s social media promotion trip giveaways
to Baha Mar’s Grand Hyatt and Rosewood properties. Mr Johnson said: “2018 was a pivotal year as we move closer to Black Enterprise making an announcement in hosting a signature event in the Bahamas. There was a major buzz that something was imminent. “Black Enterprise continues to be a key strategic partner in the multicultural
US market, giving us a platform to reach decision makers and women’s corporate organisations. “The Bahamas will continue to broaden and deepen ties with these
partners, the aim being to develop major group movements and incentive trips to our islands. “In fact, the team proudly boasts netting several groups from this
event scheduled to roll out between 2018 and 2021. “The revenues for these groups will infuse potentially millions into the Bahamian economy,” he said.
Customer’s 20-year ‘concrete block’ to Water Corp cut-off FROM PAGE 1 This, according to the report recently tabled in Parliament, represented the difference between $8.336 million in credit adjustments and $2.466 million of the debit variety. “EY observed a number of areas with inadequate controls,” the report said of the Corporation’s revenue and billing procedures. “Should a meter be unable to be accessed, then an estimate will be used based on previous billings. “If a reading cannot be taken for two consecutive quarters then extra measures will be taken, such as disconnection notifications. We were advised that it is common that customers now secure their properties which prevents access to the meter. In these circumstances, customers are allowed to submit pictures with the meter reading.” The report added that “there is no limit to the value” by which an incorrect meter reading can be adjusted by the Water & Sewerage Corporation’s billing team, with EY finding that alterations as high as $1.32 million for a single customer.
Concerns were also expressed to the auditors that delinquent customers can be reconnected “illegally” as a result of multiple persons having access to meter keys. “Water & Sewerage Corporation have since introduced a second lock that is only accessible by a limited number of people,” EY found. “However, staff still feel this is a high risk area. We were informed that the only way to monitor for illegal reconnections would be when the quarterly readings are completed.... Miya Bahamas were previously responsible for removing meters if no payment had been made within one year. When this process began, Water & Sewerage Corporation discovered that a number of people were stealing water or noticed a number of leaks.” Meter removal was subsequently outsourced to other companies, but there were also fears among Water & Sewerage Corporation personnel that accounts scheduled for disconnection “could be manually removed from the list or not completed”. “We were advised of a previous case where a meter was not disconnected
and the customer blocked access to the meter with concrete, continuing their supply for approximately 20 years,” EY said. “We have not been advised of any recent cases similar to this in nature.” The accounting firm added that Water & Sewerage Corporation files often “lacked substantiating evidence”, such as independent plumber reports, to support write-offs, rebates and other account adjustments. During the 21 months reviewed by EY, the Water & Sewerage Corporation gave leak rebates totalling $1.295 million and reversed just $24,227. And there was “a lack of adequate approval matrix for incorrect meter readings, which may increase the risk of exploitation by junior staff”. “These adjustments did not require any approvals from senior levels of staff or the executive team,” the EY report said of altered meter readings. “They were completed by the billings department and approved by the team leader. A work order was simply created and bills adjusted based on the outcome of the additional work performed.”
Job fairs create 900 New Providence jobs FROM PAGE 1 to secure employment. ‘Labour on the Blocks’ will be hosted in a different community every month this year. The Department of Labour, meanwhile, is staging several job fairs to find recruits for the Mediterranean Shipping Company’s (MSC) private cruise port on Ocean Cay near Bimini. The first event will be held at its New Providence headquarters on Wednesday, with two others planned for Thursday and Friday on Grand Bahama. “We want to encourage job seekers who are
seeking employment to come to the Department of Labour on Wednesday between the hours of 11am and 4pm and sign up to be interviewed for the jobs,” said Mr Farquharson. “It is my understanding that they have the go-ahead to begin construction, and so they will be looking to fill positions immediately. “The aim of the Department of Labour is to provide job opportunities for unemployed Bahamians, and we believe that this is an excellent opportunity for Bahamians who are unemployed and have the skills in the construction industry to be employed on an impressive development.”
Mr Farquharson said MSC is also offering employees room and board, three meals a day and transportation to and from Ocean Cay. The Government and MSC signed a Heads of Agreement in December 2015 to transform Ocean Cay for the construction of its $100 million cruise port. Sandy Cay Development Company surrendered the 25-year lease they held for sand and aragonite mining on Ocean Cay to the Government as part of the deal. The proposed cruise port is supposed to bring an extra 465,000 cruise passengers to the Bahamas annually.
VACANCY
FOR ABACO LAW FIRM Major law firm is immediately seeking a detail oriented, hands-on individual to fill the position of Legal Secretary in Abaco. The successful candidate must be an exceptionally motivated, hardworking and dynamic individual having at least 5 years’ previous legal experience in the real estate practice area. Required qualifications, skills, knowledge: • Experience in the preparation of agreements for sale, conveyances and mortgages, and other relevant documents; • The ability to use initiative, multi task, work accurately under pressure, possess exceptional organizational and communication skills and be able to work overtime and weekends; • Computer literacy, including advanced proficiency in the use of Microsoft applications. Compensation: Commensurate with qualifications and experience; excellent benefits. Only short-listed applicants will be contacted.
Reply in confidence to: vacancy50@gmail.com
THE TRIBUNE
Tuesday, March 13, 2018, PAGE 5
Higgs & Johnson hosts insolvency conference By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Higgs & Johnson law firm has hosted the annual meeting of the North American Insolvency & Bankruptcy Practice Group of TerraLex, a global network of more than 155 independent legal practices. “Our attorneys have a high regard for the expertise and co-operation available within the TerraLex network,” said Surinder Deal, partner at Higgs & Johnson and TerraLex Lawyer of the Year for 2014.
“We have worked together over the years, or turned to one another for assistance, in executing co-ordinated cross-border solutions with speed and efficiency. “Higgs & Johnson continues to value our membership in TerraLex, and to benefit from connections made around the world. Similarly, our clients accrue added value from our access to unparalleled global legal resources.” A founding member of TerraLex, Higgs & Johnson showcased New Providence and Paradise Island to the visiting attorneys. It
facilitated discussions on a broad range of insolvency issues, including the receiver-manager’s role in the midst of liquidation. This was led by Raymond Winder, managing partner at Deloitte & Touche (Bahamas). TerraLex is an international legal network, and is represented in hundreds of jurisdictions by full-service, medium to large-sized business law firms. It covers 17,000 attorneys in 100 countries, and Higgs & Johnson is the network’s member representative for both the Bahamas and the Cayman Islands.
Aliv launches in Long Island By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net ALIV says it has been making “excellent progress” with its service roll-out, a top executive saying it has more than 100,000 subscribers to-date. Damian Blackburn, the chief Aliv officer, said: “We promised the people of the Bahamas that we would roll-out the Aliv network out to every single island in the Bahamas, and I am very pleased to report that we are making excellent progress in this regard. In
addition to launching in Exuma about 10 days ago, we now have the Aliv network up and running on Long Island. “I just want to say to the good people of Long Island that we have made good on our promise. “We apologise that it has taken a bit longer than planned. It is absolutely fantastic news for Long Island. “We are having a full launch on March 23. There are many people on Long Island who have already switched to Aliv. “Our engineers will just be tweaking the network, as they do, over the next week or so.”
Aliv officially launched in George Town, Exuma on February 20. The Exuma service was expected to launch last year, but was postponed due to the passage of Hurricanes Irma and Maria last year. It is anticipated that the islands of San Salvador and Cat Island will receive Aliv service soon, with the mobile operator hoping to launch in all the major Family Islands and throughout the Bahamas by mid-2018. Aliv currently has retail stores and authorised dealers on the islands of New Providence, Grand Bahama, Abaco, Eleuthera, Bimini, and Andros.
Rhone is a Swiss company established in 1982 with offices in Geneva, The Bahamas and Singapore. It creates and administers legal entities. To bolster its Bahamas based team, Rhone is seeking
COMPLIANCE OFFICER MISSION To act as a Compliance Officer and Deputy MLRO and to assist the Compliance Director. Together with the Compliance Director you would be responsible for Rhone’s Compliance requirements in The Bahamas and also provide supervision and certain support for the Group‘s other offices, principally in Switzerland and Singapore. RESPONSIBILITIES INCLUDE o Review of new business, payments etc. to ensure compliance with internal procedures o Monitoring and Analysis of Transactions o Know Your Client checks o Clearance of Database checks o PEP reviews and reviews of higher risk rated cases o CRS and FATCA reporting (in The Bahamas and elsewhere) o Drafting and filing of Suspicious Transaction Reports o Liaison with the Central Bank of The Bahamas o Liaison with specialist compliance officers and advisors in other jurisdictions to ensure effective implementation of procedures on a Group level. PROFILE o Bachelor’s Degree in an appropriate area o AML and Compliance certification o Five years relevant experience o Proficient in Microsoft Office o Excellent command of English, oral and written. An ability to also read and speak French would be an asset o Regulatory approval is a condition of the job No telephone calls accepted. Please submit written applications to: Compliance Director Rhone Trustees (Bahamas) Ltd PO Box SP 63131 Building No. 1, Bayside Executive Park West Bay Street & Blake Road Nassau, The Bahamas Deadline for Submission: March 23, 2018
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PAGE 6, Tuesday, March 13, 2018
THE TRIBUNE
BAHAMAS ‘FAILED TO READ TEA LEAVES’ ON CORPORATE TAX FROM PAGE 1 Profit Shifting (BEPS) initiative. Compliance with that is one of three criteria being employed by the EU to determine whether a country is co-operative in the fight against tax avoidance. At its simplest, BEPS aims to ensure that the profits of multinational companies are taxed in the country where they are generated. Multinational companies often use legitimate tax avoidance strategies to “exploit gaps and mismatches” between different countries’ tax rates and rules, and “artificially shift profits” to low or ‘no tax’ jurisdictions despite conducting no or minimal business there. This enables them to minimise their tax exposure by paying a lower rate than they otherwise would in countries where they do conduct business.
The Bahamas has elected to meet the minimum BEPS requirement by complying with four standards: (Action 5): Countering Harmful Tax Practices; (Action 6): Treaty Shopping; (Action 13) Transfer Pricing Documentation and Country-by-Country Reporting; and (Action 14) Dispute Resolution. Yet financial services industry sources told Tribune Business that compliance with Action 5 was especially problematic for the Bahamas. This is because the OECD considers a corporate tax rate of 10 per cent or less to be a ‘harmful tax practice’, but the Bahamas - with no income taxes of any kind has an effective corporate tax rate of ‘zero’ because it simply does not have this system. Therein lies the problem for the Bahamas in meeting both OECD and EU demands, and some believe the Bahamas may have
no choice but to eventually implement a corporate income tax to address such concerns. Mr Moss yesterday urged the Bahamas to “leverage” its relationships with the US to obtain “protection” against the EU, basing its argument on the negative impact of a ‘blacklisting’ to US-bound investment flows that pass through this nation. “Our leaders are so intimidated by Europe they are frightened to act properly,” he blasted, arguing that complying with BEPS and automatic tax information exchange would not be enough to satisfy the EU. “What it means is the scrutiny that goes into a transaction with Europe is going to very tough to overcome,” Mr Moss added of a ‘blacklisting’s’ impact. “It could mean that European institutions say to a Bahamian institution we really have to scrutinise your transaction.
“Things that take minutes to get done take hours to get done. Things that took days to get take weeks. That’s not good for business. “That is the difficulty of being ‘blacklisted’. Companies and people may close accounts because they cannot bear the scrutiny. “People doing business in today’s world want to do it quickly and discretely. With this kind of focus it’s not going to happen. People have legitimate reasons to be incognito; they don’t want to attract prying eyes. That’s not going to happen with being blacklisted,” he continued. “Our legislature and our leaders have not, in my view, begun to understand what’s at stake and they misread the initial warning. People like me saw this was coming, and we need to get on with it. There is nothing wrong with the Bahamas implementing a tax for itself.”
Mr Moss’s position was echoed by Arinthia Komolafe, the Democratic National Alliance’s (DNA) deputy leader, who yesterday said the EU threat provided “an opportunity to carry out comprehensive tax reform with due regard for the introduction of a more equitable and progressive tax system for our people”. She added: “Tax reform in the Bahamas should not result in an increase in the overall tax burden on Bahamians. The overall net effect of this reform should not complicate the ease of doing business or increase the cost of doing business in the Bahamas for Bahamian businesses. “We are already burdened by several taxes, fees and levies without the necessary prudence, accountability or improved infrastructure to show taxpayers. Due consideration should be given to the reclassification or
modification of existing taxes. “A prime example is the Business License tax, which is currently assessed on gross revenue rather than net profit.” Mrs Komolafe added: “The evolving and shifting goal posts for compliance with international standards have nurtured a reactive rather than a proactive approach to our nation’s financial services industry over the years. We have found ourselves in survival mode rather than being strategic in planning for the repositioning of the financial services industry. It is time to turn this around for our own benefit. “Rather than just focusing on the short-term goal of avoiding blacklists, a Financial Services Growth Action Plan (FSGAP) should be developed. This plan must be holistic while leveraging our strengths and the expertise of Bahamian professionals.”
Galanis ‘blindsided’ by Minister’s attack FROM PAGE 1 to its role as ‘administrator’ of a $10 million National Insurance Board (NIB) loan designed to kick-start the Government’s housing programme. The sums sought, he claimed, exceeded the loan’s value. Mr Ferreira’s allegations stemmed from a November 8, 2013, agreement that he “uncovered” between the Ministry of the Environment and Housing and HLB Galanis & Co. The agreement stated that his ministry, NIB and the Ministry of Finance “have come together to collaborate as partners” in a venture where Housing was to take the lead.
Through the deal put together under the former Christie administration, NIB provided a $10 million ‘bridge loan’ to finance the Government’s low-cost housing programme. The funds were to be drawn down over a 12-month period in four separate tranches of $2.5 million each. “HLB Galanis & Co was hired to manage the drawdown of the funds and protect the interests of the partners,” Mr Ferreira told the House of Assembly. “HLB Galanis & Co was expected to adhere to the scope of works and any other responsibilities given for proper management and delivery of the project. “At what cost, Mr Speaker? HLB Galanis &
Co collected a whopping $10 million and was looking for $2.9 million more. Mr Speaker, what was so astonishing about the project is that the duties prescribed for HLB Galanis were always carried out by public officers.” Tribune Business reports from 2013 confirm that NIB financing was essential to kick-starting the Government’s housing programme under the Christie administration because the Mortgage Corporation, which has traditionally fulfilled that role, was prevented from doing so by its cash-strapped financial position. Mr Ferreira, though, described the three-way deal as “noteworthy” because the Minister of
Finance (Perry Christie) had failed to sign it. And then-minister of the environment and housing, Kenred Dorsett, signed the document as “a corporation sole” - rather than following the traditional practice of having the permanent secretary, or a senior civil servant sign. A ‘corporation sole’ is a legal entity consisting of a single incorporated office, occupied by one person, and Mr Ferreira said that of the 73 homes to be constructed from NIB’s $10 million only 55 - around two-thirds - were completed. “At the commencement of the agreement there were some 18 unfinished houses in Abaco, 15 in San Salvador and 14 houses in
MARKET REPORT MONDAY, 12 MARCH 2018
t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com
BISX ALL SHARE INDEX: CLOSE 2,040.04 | CHG 0.03 | %CHG 0.00 | YTD -23.53 | YTD% -1.14 BISX LISTED & TRADED SECURITIES 52WK HI 4.38 19.17 9.09 3.76 1.64 0.18 4.60 8.70 6.30 5.30 11.87 2.59 1.56 8.21 6.10 10.55 10.90 4.50 12.51 11.00
52WK LOW 3.50 17.43 8.19 3.32 0.90 0.12 3.50 8.40 6.00 3.15 9.00 2.18 1.40 7.70 5.83 8.78 5.67 3.35 12.01 10.00
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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 Premier Real Estate 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 100.00 100.00
52WK LOW 100.00 100.00
SYMBOL LAST CLOSE AML 4.14 APD 17.43 BPF 9.09 BWL 3.34 BOB 1.00 BBL 0.18 CAB 3.60 CIB 8.70 CHL 6.10 CBL 4.64 CBB 9.87 CWCB 2.70 DHS 1.50 EMAB 7.79 FAM 6.10 FBB 10.10 FIN 6.40 FCL 4.47 JSJ 12.51 PRE 10.00 CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB
SECURITY Fidelity Bank Note 18 (Series E) + Fidelity Bank Note 22 (Series B) +
SYMBOL FBB18 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 2.13 4.14 1.99 178.69 153.40 1.54 1.70 1.62 1.10 6.99 8.54 6.15 10.52 11.46 10.46
52WK LOW 1.67 3.04 1.68 164.74 116.70 1.48 1.62 1.57 1.04 6.41 7.62 5.66 8.65 10.54 9.57
CLOSE 4.14 17.43 9.09 3.34 1.00 0.18 3.60 8.70 6.10 4.64 9.87 2.69 1.50 7.83 6.10 10.10 6.40 4.47 12.51 10.00
CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.01 0.00 0.04 0.00 0.00 0.00 0.00 0.00 0.00
1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00
1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 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
LAST SALE 100.00 100.00
CLOSE 100.00 100.00
CHANGE 0.00 0.00
109.60 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
0.07 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
109.53 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
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 Royal Fidelity Int'l Fund - High Yield Fund Strategies Fund
VOLUME
10,000
VOLUME
EPS$ 0.475 0.932 -0.306 0.281 -1.133 0.000 -1.462 0.638 0.583 0.171 0.631 0.102 0.330 0.000 1.129 0.743 0.484 0.298 0.543 0.000
DIV$ 0.080 1.130 0.000 0.230 0.000 0.000 0.000 0.320 0.220 0.120 0.690 0.060 0.050 0.083 0.300 0.500 0.150 0.120 0.570 0.000
P/E 8.7 18.7 N/M 11.9 N/M N/M -2.5 13.6 10.5 27.1 15.6 26.4 4.5 N/M 5.4 13.6 13.2 15.0 23.0 0.0
YIELD 1.93% 6.48% 0.00% 6.89% 0.00% 0.00% 0.00% 3.68% 3.61% 2.59% 6.99% 2.23% 3.33% 1.06% 4.92% 4.95% 2.34% 2.68% 4.56% 0.00%
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 6.00% 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%
NAV 2.13 4.12 1.99 178.69 153.40 1.54 1.69 1.62 1.09 7.16 8.40 6.29 11.28 11.60 10.21
YTD% 12 MTH% 0.31% 4.30% 0.16% 5.93% 0.17% 2.36% 4.66% 3.89% 5.58% 6.65% 0.36% 4.29% -0.15% 3.50% 0.23% 3.89% -0.34% 4.66% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69%
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
4 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225
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
MATURITY 31-May-2018 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-Jan-2018 31-Jan-2018 26-Jan-2018 31-Dec-2017 31-Dec-2017 31-Jan-2018 31-Jan-2018 31-Jan-2018 31-Jan-2018 30-Nov-2017 30-Nov-2017 30-Nov-2017 30-Nov-2017 30-Nov-2017 30-Nov-2017
the John Claridge Subdivision that were incomplete,” Mr Ferreira told the House of Assembly. “That meant a total of 47 houses needed to be completed. However, these houses never were because they were not made a part of the Memorandum of Understanding (MoU).” The Minister added that 14 mortgage requests for the Bahamia West Repleat subdivision were never completed by the Bahamas Mortgage Corporation, which only issued 25 mortgages for homes covered by the deal. The end result, Mr Ferreira said, was that only 31 of the 55 completed homes were ultimately occupied. Meanwhile, just four of the seven bidders who qualified for the New Providence landfill Request for Proposal (RFP) round have paid the $10,000 nonrefundable fee and picked up the tender documents. The four to do so include at least three groups that are either Bahamian-led or have local participation, as they include Bahamas WTP Ltd; Bahamas Waste; Providence Advisors and the Waste Resources Development Group; and APAPA International (Nassau). Cedric Scott, the actor, producer and uncle of former Cabinet minister, Jerome Fitzgerald, is listed
by Bahamas WTP LTD’s website as one of its five principals. Its two other Bahamas-based principals are banker, Ivylyn Cassar, and permanent resident, Fay Russell. The company’s physical address is listed as Ms Cassar’s Equity Bank & Trust, based in western New Providence. Bahamas WTP is a consortium that also features two US companies, Delaware-incorporated Ameresco Ltd and Louisiana-based Furnace and Tube Services Inc. Bahamas Waste is the BISX-listed company of the same name, while Providence Advisors is headed by the well-known local investment banker, Kenwood Kerr. His partner, Waste Resources Development Group, features all the other Bahamian waste disposal groups bar Bahamas Waste. Mr Ferreira’s comments indicate that Valoriza Sevicios Medioambientales, a Spanish-headquartered waste and environmental services provider with significant interests in the Latin American region; Eastern Waste Systems, which appears to be a Florida-based garbage disposal operation; and Marine Contractors Inc have elected not to proceed with bids despite qualifying for the RFP round.
NOTICE Biloma Investments Limited (In Voluntary Liquidation) Notice is hereby given that the above-named Company is in dissolution, commencing on the 5th day of March, 2018. Articles of Dissolution have been duly registered by the Registrar. The liquidator is Amicorp Bahamas Management Limited. Dated this 7th day of March, 2018. Amicorp Bahamas Management Limited LIQUIDATOR
LEGAL NOTICE
THE TRIBUNE
Tuesday, March 13, 2018, PAGE 7
Minnis ‘called out’ on Schooner Bay FROM PAGE 1 contains a clause granting Schooner Bay’s developer an eight-year exclusivity on all real estate and property management activities at the development. While that exclusivity will end shortly, according to this newspaper’s sources, the Declaration also stipulates “that no business may operate in Schooner Bay without a business licence issued by the Board”. Schooner Bay Ventures is alleging that the Kellys obtained no such licence, resulting in them “wrongfully and unlawfully” providing property management services for at least five other homeowners at the development. It is seeking damages from the couple, a Supreme Court declaration that they are “barred from marketing properties within Schooner Bay”, and a ‘permanent injunction’ to prevent them from engaging in such activities. The legal move by Schooner Bay’s developer represents the latest setback for the Kellys, and effectively adds insult to injury given the fall-out they have suffered as a result of being evicted from their organic farm. Pledging to fight the latest attack by the foreign developer, Mr Kelly told Tribune Business the lawsuit was designed “to hit us financially and emotionally” in a bid to force the couple “to give up and go into the night”. He suggested that Schooner Bay Ventures was attempting to “make it as uncomfortable as they can”, and using its ‘deeper pockets’ to wear them down financially via a “war of attrition”. Tribune Business last year revealed how Schooner Bay Ventures had seemingly breached the conditions of its 100acre Crown Land licence by evicting Driftwood Food Company, the Kellys’ hydroponic farm, from that site. Mr Kelly yesterday said the Government had gone “quiet” on his complaints over the farm eviction, and ‘called out’ the Prime Minister and his administration over their support of Bahamian entrepreneurs being squeezed out by wealthier foreign investors. “I’d like to hear the Government’s views, especially the Prime Minister’s, who owns a home there that is being managed by the developer,” he told Tribune Business. “Does the Government think it important that Bahamians be allowed to take up the entrepreneurial spirit and go and serve their country, or do they think foreign big business is far more important. “I’d like to think they’re both important. I think they [Schooner Bay] realise our pockets aren’t as deep as theirs. It’s no secret. If it’s a game of attrition they’ll win, but I’ve got to believe at some point the Government of my country will do the right thing.” Mr Kelly’s call is especially problematic for Dr Minnis, who owns a property at Schooner Bay. Tribune Business previously revealed that the developer is managing Dr Minnis’s property, the Island Cottage, in an arrangement that violates Bahamian real estate law. The Prime Minister’s press secretary, Anthony Newbold, declined to comment on the matter when invited to do so. The new battle with the Kellys is the latest in a series of ongoing controversies swirling around Schooner Bay, after Tribune Business last year revealed the issues with its Crown Land licence and evidence that it
is violating Bahamian real estate law. The developer, headed by Dr David Huber, dubbed ‘America’s richest Mormon’, and US attorney Tina Gascoigne, took “great exception” to this newspaper’s reports without providing any evidence to refute them. And there is little doubt that Schooner Bay’s development has stalled ever since Dr Huber severed ties with then-partner, Lindroth Development Company, in 2013-2014, with the project’s original vision and philosophy in danger of being lost. Despite filing its lawsuit with the Supreme Court registry on September 20, 2017, Schooner Bay Ventures only served the Kellys with the papers on March 7. The move comes after the developer lost a similar action this January when Justice Ian Winder rejected its bid for an injunction to block Bahamian realtor, James Malcolm, from operating the exact same business at Schooner Bay. Mr Kelly said Schooner Bay Ventures’ decision to proceed with the lawsuit has “completely blown my mind”, given that the ruling in Mr Malcolm’s case had seemingly established a legal “precedent” that would favour the couple. The action, which only names Tracy Kelly as a defendant, alleges: “In breach of the Declaration and her Covenants as a homeowner, the defendant wrongfully and unlawfully marketed for rent and/or provided property management services for the following properties within Schooner Bay.” Five properties were named, and the lawsuit alleged: “In further breach of the Declaration, the defendant is operating a business marketing for sale and/or rent the properties located within the Schooner Bay development without having first obtained a business licence from the Schooner Bay Community Corporation.... “The defendant knowingly and unlawfully carried out the above-mentioned acts which are causing - and will continue to cause harm - to the plaintiff’s business, causing the plaintiff to suffer serious loss and damage.” Schooner Bay Ventures claimed that the Kellys’ business had resulted in it losing property sales and rentals commission; property management fees; marketing opportunities and “loss of opportunity”. Many observers, though, while likely interpret Schooner Bay’s latest move as further evidence of a desire to establish a monopoly on all real estate business at the project at the expense of driving out Bahamian companies. Mr Kelly yesterday said the couple had been engaged in property management services at the south Abaco development, ensuring homes and properties were maintained; paying bills on behalf of owners when they were absent; and providing access to repairmen when necessary. “We’re aggrieved by this move as much as anything else,” he told Tribune Business of the lawsuit. “We certainly have the relevant licences. They [the developer] knew full well we doing this business, and to my knowledge no one else has a business licence from Schooner Bay.” Mr Kelly indicated he would reach out to the couple’s homeowner clients to obtain their support, pointing out that “most of them are well-to-do folks” who have “contacts” in Nassau. “We’re going to engage a lawyer in our defense, and see if it goes any further than this,” he added. “It saddens us, but I’ve learnt nothing should surprise me
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any more. I’m still in shock, but I shouldn’t be.” Expressing unhappiness that his wife had been named as a defendant, even though the company’s government Business License was in his name, Mr Kelly said: “I think it’s a very intentional attempt to hit us financially and emotionally with the hope we’ll give up and disappear into the night. “That’s what I truly believe. They’ll make it as uncomfortable as they can in the hope we go away and, whether the action’s valid or not, they won’t have to pursue it.” Mr Kelly alleged that the legal actions against the couple and Mr Malcolm were a “systematic” effort to drive Bahamian entrepreneurs out of Schooner Bay, and warned: “There
will be more unless they’re [the developer] somehow checked in their behaviour. “Anyone they perceive as being in the way of their real estate sales machine. The funny thing is our business could have been one of the greatest cogs in the wheel, but they look at it as a detriment. “There are homeowners who do not want them [the developer] to manage their home, even if they’re legally entitled to. They do not want them. It’s good to have options and competition for Bahamian and foreign homeowners at Schooner Bay.” Schooner Bay, through its Covenants and actions, appears to be in breach of Bahamian real estate law. Foreign developers, under the Real Estate (Brokers and Salesmen) Act,
can only sell and manage the real estate that they own. Once such property is sold to third-party buyers, the Act prevents them from engaging in re-sales of that real estate, and operating their own property management/vacation rental businesses. In Schooner Bay’s case, it has only sold lots to home buyers who were then responsible for vertical construction on their properties. Thus it cannot get involved in managing these homes and/or renting and leasing them out, activities it has been engaged in, and without the necessary licence from the Bahamas Real Estate Association (BREA). Mr Kelly, meanwhile, said he had received no indication that the Government
is prepared to intervene over his farm eviction. “The Bahamas Investment Authority did come up,” he told Tribune Business, “and got some information from me. “That’s it. It’s all quiet.” He added that the couple had suffered an “immediate” financial impact as a result of losing everything already planted, and “had to give up other things” to recover between 33-50 per cent of their business by relocating elsewhere. Unable to offer winter residents “the whole gamut of organic vegetables” previously produced, the Kellys have been forced to focus on “quick growing” crops such as sour creams. While this had created “a lot of angry customers”, Mr Kelly said this was not directed at the couple but towards “the right people”.