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FRIDAY, APRIL 1, 2022
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$60m resort investor accepts US sanctions By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE LEAD principal behind a proposed $60m Cat Island resort project has accepted the imposition of sanctions over his role in an alleged $122m investment fraud, Tribune Business can reveal. Manjit Singh ‘Roger’ Sahota, in legal documents obtained by this newspaper, has consented to a lifetime ban on “acting as an officer or director of a publicly-held entity” as well as a permanent bar on involvement with corporate vehicles in the US oil and gas industry that are offering securities to investors. Besides agreeing to these “permanent injunctions”, the Securities & Exchange Commission (SEC) also informed the north Texas federal court on Wednesday, March 30, that
SAHOTA DEVELOPMENT PLANS
• Cat Island project principal gets lifetime bans • And could face up to $54m ‘disgorge’ penalty • Gov’t mum on project’s status, EIA hearing
Mr Sahota will “disgorge” all ill-gotten gains from the scheme and pay interest on this sum, as well as having a further fine imposed on him. The amount he must pay is to be determined at a future court hearing, with the “disgorgement” sum potentially reaching as high as $54m. The agreed judgment, which also bans Mr Sahota for life from further violations of US federal securities laws, was reached without the Almost Paradise resort principal “admitting or denying” the accusations levied against him. The documents detailing the “consent judgment” were signed by Mr Sahota on March 25, 2022, but this has yet to be approved by the North Texas federal court. The legal filings came one day after Tribune Business exclusively revealed the controversy engulfing Mr Sahota
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Minister: ‘Diversify within, not away, from tourism’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A CABINET minister yesterday said the number of registered Bahamian businesses has increased by 37 percent over the past two years, adding: “We must diversify within, and not away, from tourism.”
Senator Michael Halkitis, minister of economic affairs, told a tourism diversification webinar organised by Royal Bank of Canada (RBC) that Ministry of Finance data showed registered businesses had increased by almost 13,000 since 2019, growing from 34,780 to 47,717. A key factor driving this increase, he suggested, was the COVID-19 pandemic forcing
many Bahamians to become entrepreneurs “by necessity”, with most growth generated by the expansion of home-based businesses in areas such as catering and landscaping. Voicing hope that “the lessons learned from the COVID pandemic stick”, and drive greater diversification in tourism and the industries around it, Mr Halkitis said the sector’s
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MICHAEL HALKITIS
End to inter-island COVID tests a ‘world of difference’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net HOTELS and airlines yesterday hailed the Government’s decision to eliminate COVID testing for inter-island travel from New Providence and Grand Bahama as “making a whole world of difference” for domestic tourism and commerce. Anthony Hamilton, Southern Air’s director of administration, and president of the Bahamas Association of Air Transport Operators, told Tribune Business that the unveiling of the change by the Prime Minister’s Office - which is expected to take
effect by this weekend - was “super news” and “a definite plus” for a domestic aviation industry still trying to recover from the pandemic’s devastating impact. The testing elimination removes both an extra cost, barrier and deterrent to inter-island travel, and Mr Hamilton said: “We know the primary concern was cost, and there was a good deal of discomfort in terms of persons having to pay [for tests’ out-of-pocket. That decision that has been taken, particularly for persons travelling between the Family Islands and Grand Bahama with the socioeconomic challenges, that’s a great plus for us.
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Banks ‘shying away’ from hospitality, entrepreneurs By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A SENIOR Royal Bank of Canada (RBC) executive yesterday conceded that Bahamian commercial banks “shy away” from providing credit to both The Bahamas’ largest industry and even successful entrepreneurs. Liacarla Adderley, RBC’s area vice-president for business banking in The Bahamas and Turks & Caicos, told a tourism diversification webinar organised by the Canadian-owned lender that the absence of adequate collateral
against which to secure a loan was often why commercial banks declined to finance entrepreneurs with a proven track record. “When you look at entrepreneurs in those islands who want to launch their products, get their products out there, it’s been a challenge,” she conceded. “In the case of start-ups, banks typically shy away from start-ups because they don’t have a track record to rely on. “In the case of successful entrepreneurs, who want to add products and have been successful, and their financial statement show
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Minister: ‘We’ll surpass 2019 by end of the year’ • GDP data shows COVID wiped out decade of growth • Economy smaller at end of 2021 than it was in 2012 • And almost $1.5bn below pre-pandemic output By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A CABINET minister yesterday voiced optimism that The Bahamas’ economic performance will “surpass” that of 2019 by year-end after it was revealed that COVID-19 wiped out a decade’s worth of growth. Senator Michael Halkitis, minister of economic affairs, told Tribune Business that the initial 2021 gross domestic product (GDP) estimates released by the Bahamas National Statistical Institute provided a “positive sign” that the end to the COVID emergency orders, lockdowns and related travel restrictions had produced a much-needed spark. The Institute said its findings affirmed that economic activity “recovered significantly” in 2021 with real GDP expanding by 13.7 percent despite pandemic-related measures impacting much of the year. Real GDP, which strips out the impact of inflation, expanded by almost $1.2bn year-over-year, growing from $8.65bn in 2020 to $9.837bn last year. The latter figure, though, was some 8.2 percent or close to $900m below the $10.72bn GDP that The Bahamas generated in 2012. This means economic output, or the size of the Bahamian economy, was smaller at end2021 than it was a decade ago, meaning that COVID effectively cost this nation ten years’ GDP growth that it now has to recover. And 2021’s economic output was also almost $1.5bn, or 13.4 percent, below the $11.355bn GDP figure for 2019 - the last year before the global pandemic, and which also included the impact from Hurricane Dorian. “According to the 2021 annual estimates, economic activity in The Bahamas recovered significantly by 15.6 percent in nominal terms and by 13.7 percent in real terms, as business activity began to show signs of recovery from the adverse
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SKILLS REQUIRED FOR PROPER LEADERSHIP S
uccessful leadership never happens by choice. We have suffered for many years as a nation by giving titles to those who have no clue in the art of leadership. A leadership track record does not consist of big jobs or large networks. When a person cannot build healthy trust, centred on relationships, and nurture the talent of those around them, they cannot be regarded as having leadership skills. This week’s column is focused on the skills required for leadership. Here is the top ten list: 1. Humility: This is the ability to control your ego, not permanently subdue
it. Humility should not be confused with timidity. Humility is keeping one’s ego in check. 2. Competence: This is the demonstration of knowledge and skill as it relates to your areas of responsibility. 3. Approachability: Individuals will approach those whom they trust. That is, those with integrity, and those whose personal style and manner is flexible rather than rigid. Learn to be adaptable to the various needs and personalities of others. 4. Discipline: Exercise the required self-discipline to deliver what you say you will deliver, and behave the
IAN FERGUSON
way you know you should behave. Discipline puts feet to intent. 5. Conviction: People will follow those who believe in themselves, and display conviction regarding the course of action. Assess carefully how you will lead and then persevere, displaying confidence and conviction as you lead others towards your goal. 6. Decisiveness: Assess and then act. Take responsibility for your actions. Do not prepare a barricade or pass blame for your decisions in times of failure. When you must make a decision, make it, then take responsibility for the outcome.
7. Knowledge: Use your knowledge wisely to promote effective action and, when in doubt, gain the necessary knowledge. 8. Direction: Have clear goals and a clear vision for yourself, which you then pass on to others. It is important that you have clarity of action yourself, and the ability to clearly communicate this direction. 9. Clarity: Your communication needs to be simple and memorable. People must be able to understand it in your presence and recall it in your absence. 10. Charisma: Charisma does not mean the ability to win a popularity contest. Rather, it means that you
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are likeable. We all tend to gravitate towards people we like, and so as the leader strive to be warm and likeable. • NB: Ian R Ferguson is a talent management and organisational development consultant, having completed graduate studies with regional and international universities. He has served organsations, both locally and globally, providing relevant solutions to their business growth and development issues. He may be contacted at tcconsultants@coralwave.com.
Water Corp system losses cut by 71% LOSSES from the Water & Sewerage Corporation’s New Providence distribution system have been reduced by as much as 71 percent over the past decade, the contractor behind this achievement has disclosed. Mario Tavera, the Miya Bahamas project manager who has led the Inter-American Development Bank (IDB) funded effort, was a recent guest speaker at the weekly meeting of the Rotary Club of New Providence. The luncheon, which took place on World Water Day, featured a virtual presentation chronicling the company’s non-revenue water project. “Non-revenue water
levels are determined by how much revenue is lost to the Water & Sewerage Corporation due to water loss brought on by leaks and other shortfalls,” said Mr Tavera. He added that technology upgrades, and new protocols implemented by Miya, had a near-immediate impact on water efficiency across New Providence. Non-revenue water levels were cut by as much as 71 percent on a project that simultaneously increased revenues for the Water & Sewerage Corporation over its lifetime. “Once we had completed our initial assessments, we went ahead and implemented proactive leak detection strategies,” Mr
WITH a well-established reputation for water advocacy, the Rotary Club of New Providence spoke to Miya Bahamas project manager, Mario Tavera, on how they could further efforts to provide access to safe drinking water and basic sanitation. Photo:Jason Cooper/Barefoot Marketing Tavera explained to Rotarians. “With the help of rapid repair protocols, to
pressure zones and district metered areas, to the design and implementation and a
BOB APPOINTS FIRST EVER FEMALE CHAIR By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BANK of The Bahamas yesterday said it has appointed its first-ever female chair with attonery Donna Harding-Lee taking over the post with effect from March 18 following the necessary Central Bank approval. Mrs Harding-Lee was called to The Bahamas Bar in 1982, and joined the firm of Cash Fountain & Company, where she remained for 14 years until founding her own law office, HardingLee & Company, in 1996.
She has served as a director on several boards, including an insurance/financial institution, and Bank of The Bahamas. “I am doubly honoured to be appointed as chairperson to the Board of Bank of The Bahamas and the first female to occupy that position. The bank has so much potential, and I look forward to it becoming the premier banking institution in The Bahamas,” Mrs Harding-Lee said. She has also served as a member of the Industrial Relations Board of The Bahamas and the Judicial and Legal Services
Commission, and has held various positions within the Bahamas Bar Association, including membership on the Disciplinary Tribunal. While Pauline AllenDean and Renee Davis have previously served as Bank of The Bahamas’ managing director and acting managing director, respectively, this is the first time in the bank’s 34-year history that a woman has been appointed to lead its governing Board. Kenrick Brathwaite, the BISX-listed institution’s managing director, added that three of the bank’s chief officers are also
women and the bank’s staff is predominantly female. “Women have always made significant contributions to the success of the bank. They have done so at the highest levels, and we welcome and congratulate Mrs Harding-Lee and look forward to benefiting from her experience and guidance as well as that of other members of our new Board,” he added. Mr Brathwaite told Bank of The Bahamas’ recent annual general meeting (AGM) that the institution has strengthened its foundation, and will have soon completed a full
PWC: GOVERNANCE FAILURES WILL COST COMPANIES DEARLY COMPANIES could lose key staff, customers and investments if they fail to live up to environmental, social and governance (ESG) expectations, a Bahamian accountant said yesterday. Kevin Cambridge, the PricewaterhouseCoopers (PwC) partner responsible for ESG issues, said in a statement accompanying the accounting firm’s survey of 193 Caribbean directors that the climate change threat and COVID-19 pandemic made these matters priorities for companies to address. “ESG impacts all lines of service, and impinges on the most pressing issues on the boardroom agenda - from
talent gaps to winning back customers,” said Mr Cambridge. “ESG also holds the key to forging stronger and more sustainable business prospects. “In The Bahamas, we are forced to take a closer look at top issues that we are currently facing, including climate change and the need to keep our people safe and our economy strong during this pandemic. We’re also seeing where stakeholders, consumers and employees are gravitating towards green and sociallyconscious organisations. Organisations that fall short of stakeholder expectations could lose key talent, customers and investments.”
NOTICE
KORONNA MANAGEMENT HOLDINGS LIMITED N O T I C E IS HEREBY GIVEN as follows:a)
KORONNA MANAGEMENT HOLDINGS LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.
b)
The dissolution of the said company commenced on 30th March, 2022 when the Articles of Dissolution were submitted to and registered by the Registrar General.
c)
The Liquidator of the said company is Octagon Management Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, Nassau, Bahamas.
Dated this 1st day of April, A. D. 2022 _______________________________ Octagon Management Limited Liquidator
“Directors agree that the world has changed and Boards need to change with it. Diverse boards bring a breadth of experience and freshness of perspective that are critical at a time of shifting stakeholder expectations and accelerating social and economic change,” added Mr Cambridge. “But in order for new Board members to provide the most value, deliberate inclusion efforts must be made. Each voice in the boardroom needs to be heard, and Boards that are prioritising an inclusive board culture will be better poised to face whatever comes next.” PwC, in its statement, said company directors are coming under increasing pressure to rethink governance and decisionmaking processes as it released the Caribbean’s Corporate Governance
Survey 2022: Picking up the pace. “Whilst continuing to manage the ongoing impacts of the global COVID19 pandemic, the results highlight that organisations need to re-examine and realign priorities, rethink Board structure and reconfigure Board governance to address emerging challenges and be able to deliver sustained outcomes for all stakeholders,” the accounting firm added. Disclosing the findings, PwC said more than half the directors surveyed believe their Board needs refreshing by replacing at least one fellow director. And 30 percent would replace two or more, citing a reluctance to challenge management, a lack of necessary skills and expertise as among the top concerns. The accounting firm added that fewer than half the directors surveyed reported that their
NOTICE NOTICE is hereby given that LEONARDO HIDALGO ALVAREZ of High Vista, Eastern District of New Providence, The 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 1st day of April, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
series of system optimisations that included the use of GIS updating as well as the introduction of data management hardware and software”. March 22 marked the annual observance of World Water Day, which this year sought to raise awareness about the need to protect groundwater resources. “Though out of sight, groundwater plays an important role in the climate change adaptation process and is often a solution for people without access to safe water,” Mr Tavera added. “We were delighted to have Mario Tavera as a guest speaker, and to inform of the major project undertaken by Miya Bahamas
in collaboration with the Water and Sewerage Corporation,” said Rotary club president, Lisa Deveaux. “Mr Tavera’s presentation was insightful, timely, and attendees learned a lot not only about the project but water and sanitation on the whole.” Mr Tavera, during a question and answer segment, gave Rotarians an insights into the project’s future. “We are especially proud of the investment we have made in training members of our team,” he said. “That training has been critical to ensuring that this critical work can continue well into the future.”
modernisation of its delivery channels that will enable it to eventually achieve market leadership as the best and most respected financial enterprise in The Bahamas. Jihanne Hosmillo-Williams, its chief financial officer, said that despite the pandemic’s economic effects the bank generated net income of $3.73m for the fiscal year ended June 30, 2021, and $0.5m for the first six months of the current fiscal year. She added that Bank of The Bahamas’ capital ratios remain strong and well above regulatory requirements. As at December 31, 2021, the bank’s total assets stood at $924,201m with total equity at $158.299m The newly-elected Bank of The Bahamas board also
includes its youngest director to-date, Taran Mackey, managing director and chief executive of IPG Family Office; as well as Howard Thompson Jr, attorney-atlaw and entrepreneur; Errol McKinney, president and owner of EM and Associates, labour and human resources consultants; Dywan Rodgers, partner and attorney-at-law, Meridian Law Chambers; and Anastasia Ferguson-Pratt, vice-president of financial reporting and control at The Bahamas Telecommunications Company (BTC). Returning board members include Whitney Patton; minority shareholder representative Timothy Brown, president of Bahamian Sea Basket; and Mr Brathwaite who serves as managing director.
Boards had carried out an assessment in the past year, of which most were self-assessments. Some 74 percent of directors identified difficulties in being frank in the review process, and more than half (57 percent) interpret it as a “check the box” exercise. Fewer than 60 percent of respondents believe there is sufficient follow-up after the assessment process, and that the assessment process is effective. In response to the results, less than 10 percent sought to diversify the Board. PwC said it found more than 90 percent of directors believe Board diversity brings unique perspectives to the boardroom, improves relationships with investors and enhances Board and overall company performance. In spite of this, 40 percent have not taken any action to strengthen diversity over the past two years, and almost none feel their Boards are already diversified.
Industry and risk management expertise are prioritised above diversity when selecting a new board member (33 percetnt), even with acknowledgement that there is an “over-reliance on executive networks to source candidates”.This stands as the top impediment to increasing board diversity (40 percent). The PwC survey found that 60 percent of directors say ESG is linked to company strategy and acknowledge its financial impact, yet only 10 percent say their Boards understand ESG risks very well. Directors take a number of ESG-related factors into account when developing their strategy, including resource scarcity (83 percent); climate change (82 percent); and human rights (86 percent). Yet income inequality barely registers, despite the fact this is the macro trend that is a cause for concern among directors (95 percent).
NOTICE NOTICE is hereby given that DELVIN MARTINEZ VARGAS of Sunshine Park, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 1st day of April, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
THE TRIBUNE
Friday, April 1, 2022, PAGE 3
‘WONDERFUL’ IF FREEPORT CRUISE SURGE SUSTAINED By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Grand Bahama Chamber of Commerce’s president yesterday said it would be “wonderful” if the four cruise ships that visited the island on Wednesday can be sustained. James Carey, told Tribune Business: “It is always good when we have more activity here. I can’t say whether that is sustained or a one-off at the moment; I just don’t have that information. If it’s sustained that would be wonderful news. We are grateful nonetheless that they would come in. The drivers and vendors all would have benefited from their presence, so that’s good. Any little sign of picking up is good for Grand Bahama.” Four cruise ships – the Norwegian Sky, the Norwegian Pearl, the Gran Classica and Ocean Voyager - docked in Freeport Harbour on Wednesday morning, with hundreds of passengers boarding tour buses and heading for attractions in Grand Bahama’s West End and the Port Lucaya Marketplace. Three hundred visitors were bused to Crystal Bay Beach, where they took part in the “swim with the pigs” experience. The site not only gives visitors an opportunity to swim with and feed trained pigs, but there are kayaks available, a restaurant that serves Bahamian dishes and drinks, a gift shop and cabanas set up along the beach shore. Steven Johnson, the Ministry of Tourism’s general manager for Grand Bahama, said: “Grand Bahama is primed for what is about to come. We’re excited about today and
about the future. We were in Colombia about two weeks ago and we’re looking at a programme out of Colombia. It’s not confirmed yet, but we’re working on it. “Grand Bahama has turned into an all-age party city. People are coming here, whether corporately or for leisure, to celebrate and have parties in Grand Bahama. We’re excited about the opportunities that are coming...... We have two of the top diving exploration spots in the region at Tiger Beach just outside of West End and Shark Junction. “There is lots of activity at those spots. In fact, we have people coming in to make movies at those sites. Actually, I recently signed about 15-20 different releases, giving approval for movie companies to bring in equipment to make their movies,” Mr Johnson added. “There’s something about diving here in Grand Bahama, particularly shark diving, that you cannot get anywhere else in The Bahamas. So Grand Bahama has suddenly become a big diving hotspot. We’re excited about the possibilities for Grand Bahama’s tourism.” Mr Johnson said Grand Bahama was also seeking to bring in fraternal tourism, religious tourism and other major groups. Senator James Turner said of the cruise passenger influx: “This is a red-letter day for Grand Bahama, and it is certainly the beginning of a new day for the people of our island. This is the time that reminds us of what once was and what we have to reclaim. “We’ve been saying for a long time in Grand Bahama that we all ought to participate in the prosperity of the islands of The Bahamas.
A TREASURE Cay resident yesterday voiced frustration at the seeming “state of limbo” involving the sale of its resort property, urging that its fate be rapidly resolved. Eric Bethel, property owner, amenities board member with the Treasure Cay property owners group and former head of security, told Tribune Business that
the ongoing uncertainty surrounding the Treasure Cay Resort’s sale to controversial Austrian investor, Dr Mirko Kovats, is costing him opportunities to lease his units as Airbnb vacation rentals. “I’m going to get a lot more people coming into Treasure Cay if they would know for sure they are building a boutique hotel here, and if they are going to put a casino here. But if people don’t know what’s going on then a lot of people aren’t coming,” he added.
new owner and what’s he’s going to do. “The Meisters aren’t going to do anything. So with all of these people up there in Treasure Cay, they are in limbo waiting for something to happen. Not to mention, there is a group of homeowners in Treasure Cay who actually countered Dr Kovats’ offer with more money for the Meisters, but they didn’t want it. So I don’t understand what’s going on.” A group led by Craig Roberts, a property owner on Treasure Cay, had made an offer alleging that it was superior to the deal offered by Dr Kovats. Mr Bethel
added: “I am a part owner of six condos with dock slips in there, so I do have a vested interest in Treasure Cay coming back. “Treasure Cay Ltd pretty much dictates what goes on in Treasure Cay. The Meisters own the marina and they own the golf course, and they own all of the common areas. So if you have a property in Treasure Cay, you have to pay for the amenities and you have to pay the amenities board, which the Meisters also control. So the resort is tied into pretty much everything that goes on here in Treasure Cay.”
HUNDREDS of tourists flocked into the Port Lucaya Marketplace for some shopping and dining on Wednesday, March 30, 2022. The visitors were from two Norwegian cruise ships that called on Freeport on Wednesday morning. The initiative was part of an effort by the Ministry of Tourism and the Ministry of Grand Bahama to get more cruise ship visitors into the market place. Today is wonderful. Four cruise ships in the port, we see buses going back and forth, picking up and dropping off tourist. We see the vendors here in the marketplace negotiating, we see hundreds of visitors walking around and we see our tourism officials smiling.” Meanwhile, with downtown Freeport in urgent need of revitalisation, Mr Carey said: “I think there is a bit of a legal issue in terms of moving the derelict buildings downtown. There is a solution for everything. As far as I’m concerned, it’s just finding the right solution. But Freeport does look a bit tired with the number of derelict buildings and other properties. Not just with the downtown area, but it is more pronounced in the downtown area where a lot of persons pass through. “The Grand Bahama Port Authority said the same thing to me in my capacity, and so has the minister
OVER three hundred tourists were bused to Crystal Bay Beach in Holmes’ Rock, West Grand Bahama to take part in the “swim with the pigs” tourist attraction, on Wednesday, March 30, 2022. The visitors were bused to the site from the Norwegian cruise ship that was docked in Freeport Harbor. Photos:Lisa Davis/BIS for Grand Bahama, so I’m hoping they can find a solution to get this done. In some areas they did put a coat of paint on the buildings and that sort of thing, but there are a lot of them that are beyond the coat of paint right now.”
Concern at Treasure Cay’s ‘state of limbo’ By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net
Grand Bahama has experienced a “high rate of foreclosures”, Mr Carey lamented, and this was before Hurricane Dorian and the COVID-19 pandemic. He added that there was “no need to demolish buildings that can be
salvaged”, as it would be more expensive to start again rather than repair what is there. “There are a lot of persons I would imagine still in need of homes. There seems to be a fairly high degree of homelessness if you look at the vagrants that tend to move about the business areas, and persons have their spots where they are begging consistently,” he added. “I saw in the newspaper that the taxi drivers are asking for the same relief package the vendors at the Port Lucaya Marketplace are supposed to be getting. I would say every little bit helps. When you have nothing, $500 is a lot of money.” The Minister for Grand Bahama, Ginger Moxey, told reporters earlier this week that the cabinet had approved $177,000 to be spread around 350plus vendors in the Port Lucaya, Smith’s Point and Eight Mile Rock areas, which would have amounted to an average of $500 per vendor. Mr Carey added: “Five hundred dollars is a lot to some people, but with today’s cost of living it can only go so far. A lot of these people also need to eat, and that’s going to help them. A lot of them have families, so it’s a very tough situation here, and you know Grand Bahama was hit with hurricanes and COVID-19. “Now the world situation is ultimately going to impact us as well; we’re not on our own with that. But certainly it’s like every time we seem to be able to have a little glimmer of light down the road, somebody throws a bucket of water on it.”
The Meister family, long-time owners of the Treasure Cay Resort and Marina, have in talks with Dr Kovats for several years, and it is understood that a sales agreement was signed. It is unclear, though, whether the deal has received the necessary government approvals and some residents are not keen on Dr Kovats as the buyer or his plans for the property. Mr Bethel said: “I was there for a year-and-a-half, and I was head of security for Treasure Cay Ltd and
Mr Meister, but even from day one when I got there they didn’t want to put any money into it. They were always only beautifying the place just to make it attractive for the potential sale. “Mr Meister just didn’t want to put any money into it because it would have taken from his profits.... I’m actually wondering why the Government hasn’t done anything because all of those people up in Treasure Cay, the economy can’t get going until they find out what’s going on with the
GB vendors need more than $500 Gov’t ‘relief’ By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A GRAND Bahama restaurant manager yesterday welcomed the $500 relief package unveiled by the Government but said businesses require more help to recover from the twin blows inflicted by Hurricane Dorian and COVID-19. Janet Wilson, assistant manager of Outriggers Native Restaurant at Smith’s Point, told Tribune Business that while grateful for the “immediate relief” package being provided for Port Lucaya, Eight Mile Rock, Smith’s Point and Farmer’s Market vendors, it does not go far enough. Ginger Moxey, minister for Grand Bahama, told media ahead of the weekly Cabinet meeting that vendors will receive an “immediate relief package” some time later this week. She added that after touring the Port Lucaya Marketplace with the deputy prime minister, she went back to Cabinet and received an assistance package worth a collective $177,000. This will be spread among the vendors at the four locations, and works out to an average $500 per vendor. Mrs Moxey said of the vendor split: “Port Lucaya has about 127. There are 188 in the Harbour, 10 in the Eight Mile Rock fish fry and twenty or so in the
Farmers’ Market downtown.” This rounds out to 345 vendors who will be assisted but, while the $500 is something, it is unlikely to have a meaningful impact on the long-standing financial needs of many entrepreneurs. “I don’t know how many vendors there are in total, but I know everyone would appreciate it,” Ms Wilson said. “I know it should have been more than that. It could have been more than that under the circumstances and what we went through with Dorian and the pandemic. I don’t even know if that could pay a light bill. My light bill is higher than that a month.” Mrs Moxey, meanwhile, added of the Port Lucaya area: “We are now working with the Ministry of
Tourism, in partnership, to develop a beach access that is secure. We’re going to also create other vendor opportunities for that area. So we’re working to do that, as well as to ensure that guests actually come into the marketplace. “So we’re speaking to the cruise lines. We’re also working in conjunction with the Ministry of Tourism to have something called the Taste of Port Lucaya. That makes it more attractive. So we are working on all cylinders, just trying to ensure that business comes to that area. “Guests come to that area to provide opportunities for the vendors there. So it’s been a challenge, but we are pushing forward doing everything we can to bring some relief to
those vendors, and I believe they’ve received that well.” As for the derelict buildings blighting downtown Freeport, Mrs Moxey said that is one of the “immediate” things her ministry is looking at. “There are some environmental byelaws that the Port (Grand Bahama Port Authority) has presented, but outside of that there are so many
other issues that are going on,” she added. “I know the Attorney General’s Office and lawyers from the GBPA have been in direct contact trying to make progress with it, but that’s one of the major things we are looking at right now and we’re working on it.” Replying for Smith’s Point, Ms Wilson added:
“We have had adequate beach access at Smith’s Point ever since they put the sea wall up. You can get to and from the beach with a stairway from the beach to the vendors. We have a main staircase near us, and then you have two or three more further down, going down to the other fish fry, so there is access to the beach.”
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$60M RESORT INVESTOR ACCEPTS US SANCTIONS FROM PAGE ONE
and his family after they were alleged to be the largest recipients of funds from what the SEC, the US capital markets regulator, branded as “an oil and gas offering fraud conducted over three years” by an entity called Heartland Group Ventures. Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, who has responsibility for the Bahamas Investment Authority (BIA), declined to comment when asked yesterday by Tribune Business to clarify the Government’s position on the Almost Paradise project and whether the public hearing called by the Department of Environmental Planning and Protection (DEPP) for next Tuesday will go ahead. That virtual meeting is intended to discuss the project’s Environmental Impact Assessment (EIA), and advertisements promoting the meeting were still being carried in the daily newspapers as of yesterday, indicating that it may still be proceeding despite this newspaper’s revelations. Mr Sahota and his family again could not be reached for comment, but he reportedly told other media they are “not backing out” of the $60m Almost Paradise
project having “settled” with the SEC. However, he disclosed none of the lifetime bans, sanctions and forfeitures agreed to, and this will likely make it very hard for the Government to give the go-ahead to a project targeted at Prime Minister Philip Davis’ own constituency. Mr Sahota’s wife, Harpit, and sons Monrose and Sonny, are all named as “relief defendants” in the SEC’s lawsuit because they either attended field trips used to promote the projects to Heartland investors or held corporate positions with the three family companies. It is uncertain whether the “consent judgment” agreed to by Roger applies to them also. Magistrate Judge Hal Ray, in a March 18, 2022, verdict that rejected the Sahota’s bid to remove or adjust the freeze on their assets, noted: “On cross examination, Sunny Sahota testified his family could not have purchased the airplane, helicopter and properties in The Bahamas but for the $54m they received from Heartland.” The SEC is alleging that $1.5m of the Heartland monies received by the Sahotas was used to acquire their existing Cat Island rental properties. And the court-appointed Heartland receiver is already moving to sell the family’s
private jet and helicopter to recover funds for defrauded investors as the Sahotas have insufficient assets to cover what is owed. This all raises the possibility that the receiver may seek to seize the family’s existing Cat Island holdings to recover the $1.5m invested, although it would likely have to initiate legal proceedings in The Bahamas to do so. The 50-acre site for Almost Paradise, the purchase of which this newspaper understands has yet to close, may also be financed by Heartland monies, which could expose a prime investment property to also being seized by the receiver. The Sahotas have vehemently denied the allegations against them. But the SEC, describing Heartland as a classic Ponzi scheme, in which new investor monies were used to repay those who had been lured in earlier, claimed that its principals “ignored red flags” regarding Roger Sahota’s previous oil and gas projects and use of investor funds. The US capital markets regulator alleged that in March 2019 they “learned of Sahota’s prior personal bankruptcies and Internet posts alleging that Sahota had committed fraud in multiple states and Canada, including by creating fake financial statements”.
Throughout Spring 2019, Heartland’s principals were said to have experienced and ignored “additional red flags regarding Sahota, including his repeated refusal to provide requested information about title, project status, revenue and costs. Sahota [said] his company could spend money it received from Heartland as it wished, and that he did not have to provide details of where the funds went”. Heartland’s collection of investment funds raised a total $122m from more than 700 investors via five “unregistered” securities offerings. The funds raised were supposed to be invested in oil and gas drilling projects “producing hundreds of barrels of oil per day”, yet the SEC is alleging that these wells have yet to deliver a single barrel. Instead, investor monies were diverted for other purposes, with the regulator’s December 1, 2021, lawsuit alleging that some $54m - just over 44 percent of the total raised - went to Mr Sahota and three family entities - ArcoOil Corp, Barron Petroleum and Dallas Resources. “The Sahota defendants and Dallas Resources used millions of dollars in Heartland investor funds to purchase a private jet, a helicopter, real estate in The Bahamas and on other
non-oil and gas expenditures for themselves,” the SEC alleged. It also accused Mr Sahota and the family’s companies of making “material misrepresentations” about oil well production, inflating and altering volumes and revenues. Tribune Business’ findings blindsided the Government, which was seemingly unaware of the Sahotas’ legal woes. “It was approved by the former administration. I can confirm to you that it was approved by the prior administration in 2020,” a Davis administration spokesperson said. “ However, both Dr Hubert Minnis and his former senior policy adviser, Joshua Sears, said they knew nothing about the Almost Paradise project or the Sahota’s when contacted by this newspaper. The Sahotas and Waypoint Consulting must have received some kind of encouragement to proceed as the EIA reveals that field work for the assessment was conducted in February, April and May 2021. A joint site visit with the Department of Environmental Planning and Protection (DEPP) was held on April 16. While the SEC lawsuit was filed both after the EIA was completed, and the receipt of any approvals by
MINISTER: ‘DIVERSIFY WITHIN, NOT AWAY, FROM TOURISM’ FROM PAGE ONE near-total shutdown for much of 2020 should not cause The Bahamas to abandon it as the leading job creator, GDP driver and foreign exchange earner. “I think the point has been made, when we speak about diversifying the tourism economy in the aftermath of the pandemic, a lot of the discussion has been around the vulnerability of tourism and the travel bans,” the minister said.
“While the argument to diversify away from the tourism economy has become more pronounced after that, I think that with our natural resources and proximity [to the US], our job is not to diversify away from the tourism industry but diversification within the tourism industry.” Mr Halkitis said this diversification must occur geographically, so that more Family Islands “benefit to a greater extent” as well as in the product offering. In
particular, he singled out Airbnbs and the vacation rental market as a primary driver of greater Bahamian tourism industry ownership as well as providing a more authentic, cultural experience to visitors. Disclosing that The Bahamas saw 10,000 Airbnb reservations in February 2022 alone, with an average daily rate of $450.06, the minister added that some 7,000 such properties in The Bahamas are
currently listed with the vacation rental website. “That is very significant for two reasons,” Mr Halkitis said. “The main reason, number one, as has been said, particularly given the effect of the pandemic and change in consumer tastes, we have groups, segments of the market, that do not want to be in a large hotel but be in a smaller environment for safety and to experience the local flavour of the place they visit. We
MARKET REPORT www.bisxbahamas.com
THURSDAY, 31 MARCH 2022
BISX ALL SHARE INDEX: BISX LISTED & TRADED SECURITIES 52WK HI 6.70 40.50 2.05 2.90 2.60 6.05 10.05 2.56 9.02 3.10 7.20 13.00 2.71 10.25 11.25 10.75 15.00 4.00 10.00 16.50
52WK LOW 4.55 32.12 1.46 2.20 1.30 5.50 6.00 2.82 4.25 2.27 5.50 9.75 1.99 6.50 10.02 9.00 13.10 3.50 8.00 15.50
SECURITY AML Foods Limited APD Limited Benchmark Bahamas First Holdings Limited Bank of Bahamas Bahamas Property Fund Bahamas Waste Cable Bahamas Commonwealth Brewery Commonwealth Bank Colina Holdings CIBC FirstCaribbean Bank Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank (Bahamas) Limited Focol Finco J. S. Johnson
PREFERENCE SHARES 1.00
1.00
1000.00 1000.00 1000.00 1000.00
1000.00 1000.00 1000.00 1000.00
1.00 10.00 1.00
1.00 10.00 1.00
Bahamas First Holdings Preference Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Fidelity Bank Bahamas Class A Focol Class B
CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00
52WK LOW 100.00 100.00
SECURITY Fidelity Bank (Note 22 Series B+) Bahamas First Holdings Limited
CLOSE
CHANGE
%CHANGE
YTD
YTD%
2230.09
0.62
0.03
1.85
0.08
SYMBOL AML APD BBL BFH BOB BPF BWL CAB CBB CBL CHL CIB CWCB DHS EMAB FAM FBB FCL FIN JSJ BFHP CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB SYMBOL FBB22 BFHB
BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.22 100.53 99.98 100.00 100.00 100.00 100.00 100.00 100.98 100.00
104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.29 99.98 91.00 90.95 89.02 89.62 89.00 90.24 90.73
MUTUAL FUNDS 52WK HI 2.50 4.67 2.20 207.86 207.68 1.72 1.83 1.81 1.05 9.37 11.83 7.54 16.64 12.84 10.77 10.00 10.43 14.89
52WK LOW 2.11 3.30 1.68 164.74 116.70 1.68 1.73 1.75 1.01 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20
Bahamas Note 6.95 (2029) BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-7Y BGRS FL BGRS67023 BGRS FL BGRS70022 BGRS FL BGRS78024 BGRS FX BGR125238 BGRS FX BGR127139 BGRS FX BGR127149 BGRS FX BGR129249 BGRS FX BGR131249 BGRS FX BGR132249 BGRS FX BGR136150
BAH29 BG0107 BG0207 BG0130 BG0230 BG0307 BG0330 BG0407 BSBGRS670233 BSBGRS700220 BSBGRS780248 BSBGR1252380 BSBGR1271398 BSBGR1271497 BSBGR1292493 BSBGR1312499 BSBGR1322498 BSBGR1361504
LAST CLOSE 5.30 39.95 2.04 2.31 2.50 6.05 9.25 3.30 7.90 2.66 7.16 13.00 2.20 10.13 12.04 10.75 15.00 3.99 10.00 15.50 1.00 1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00 LAST SALE 100.00 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.53 100.57 100.00 100.00 100.00 89.62 100.00 100.00 100.00
CLOSE 5.30 39.95 2.04 2.31 2.50 6.05 9.25 3.30 7.90 2.66 7.16 13.00 2.21 10.25 12.14 10.75 15.00 3.99 10.00 15.50 1.00 1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00
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
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
CLOSE 100.00 100.00
CHANGE 0.00 0.00
107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.06 100.53 99.98 100.00 100.00 100.00 89.62 100.00 100.00 100.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.06 0.00 (0.59) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund Leno Financial Conservative Fund Leno Financial Aggressive Fund Leno Financial Balanced Fund Leno Financial Global Bond Fund RF Bahamas Opportunities Fund - Secured Balanced Fund RF Bahamas Opportunities Fund - Targeted Equity Fund RF Bahamas Opportunities Fund - Prime Income Fund RF Bahamas International Investment Fund Limited - Equities Sub Fund RF Bahamas International Investment Fund Limited - High Yield Income Fund RF Bahamas International Investment Fund Limited - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F
MARKET TERMS
CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.12 0.10 0.00 0.00 0.00 0.00 0.00
VOLUME
6,800
5,000
50
VOLUME
830 119 620
NAV 2.50 4.67 2.20 204.67 199.97 1.72 1.83 1.81 1.01 9.37 11.79 7.54 15.94 12.47 10.74 N/A 10.43 14.89
(242) 323‐2330 (242) 323‐2320 EPS$ 0.239 0.932 0.000 0.140 0.070 1.760 0.369 -0.438 0.140 0.184 0.449 0.722 0.102 0.467 0.646 0.728 0.816 0.203 0.939 0.631 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
DIV$ 0.170 1.260 0.020 0.080 0.000 0.000 0.260 0.000 0.000 0.120 0.220 0.720 0.434 0.060 0.328 0.240 0.540 0.120 0.200 0.610 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
INTEREST Prime + 1.75% 6.25% 6.95% 4.50% 4.50% 6.25% 6.25% 4.50% 6.25% 4.25% 4.63% 4.50% 4.50% 5.00% 5.00% 5.50% 5.55% 5.60% 5.65% 5.69% YTD% 12 MTH% 0.34% 4.30% -0.06% 5.21% 0.21% 2.72% 1.37% 3.18% 8.18% 14.94% 0.26% 2.76% 0.36% 2.37% 0.28% 2.51% -1.31% -3.43% -0.02% 10.36% -0.33% 18.23% 0.22% 3.05% -3.89% 14.76% -1.04% -2.57% 0.81% 4.20% N/A N/A 3.00% 25.60% 7.90% 48.70%
P/E 22.2 42.9 N/M 16.5 N/M N/M 25.1 -7.5 56.4 14.5 15.9 18.0 21.7 21.9 18.8 14.8 18.4 19.7 10.6 24.6 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
YIELD 3.21% 3.15% 0.98% 3.46% 0.00% 0.00% 2.81% 0.00% 0.00% 4.51% 3.07% 5.54% 19.64% 0.59% 2.70% 2.23% 3.60% 3.01% 2.00% 3.94% 0.00% 0.00% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%
MATURITY 19-Oct-2022 30-Sep-2025 20-Nov-2029 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2022 26-Jun-2045 15-Oct-2022 8-Apr-2023 29-Jul-2022 22-Sep-2024 15-Oct-2038 15-Jan-2039 15-Jan-2049 15-Apr-2049 15-Jul-2049 15-Oct-2049 21-Apr-2050
NAV Date 31-Jan-2022 31-Jan-2022 28-Jan-2022 30-Sep-2021 30-Sep-2021 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Mar-2021 31-Mar-2021 31-Mar-2021
YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful
TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | CORALISLE 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333
see a significant increase in that segment.” The shift away from large mega resorts, such as Atlantis and Baha Mar, which has been the tourism model traditionally relied upon by The Bahamas, has also created “an avenue for independent ownership in the tourism industry” that is very much within the financial capabilities and wherewithal of Bahamians. Mr Halkitis said a shift away from promoting The Bahamas solely “as a place to lie on the beach, which is very nice, and go to the casino”, towards “more event-based” activities by reviving the ‘Sports in Paradise’ brand together with a focus on religious and medical tourism plus conferences, would also help drive diversification. Turning to the industry’s spin-off potential for Bahamian entrepreneurs, the minister added: “Linkages has been a topic for many years in this country..... We’ve been talking about this for 50 years, and work must continue.” He pointed to the Government’s annual $50m financing commitment to small and medium-sized enterprises (SMEs), as well as the work of the Small Business Development Centre and new crowdfunding rules that allow capital raises up
the Minnis administration, Tribune Business’ findings raise disturbing questions surrounding the strength, and scope, of the Government’s due diligence on foreign investors and whether their backgrounds, and source of funds, are vetted sufficiently. And, while the Government is especially eager to rapidly bring FDI projects out of the pipeline in its efforts to revive the Bahamian economy postCOVID-19, the Almost Paradise situation suggests more caution is required. The Almost Paradise project is targeted at a 50-acre parcel of land known as the Butler Tract. “The proposed development, ‘Almost Paradise’, is located on approximately 50 acres in southern Cat Island to the immediate south of Greenwood subdivision,” the EIA said. “Almost Paradise is a $60m capital expenditure for a mixed-use development featuring a resort, villas, single family home, amenities and back-ofhouse operations to be constructed over three phases. Total developed areas including built infrastructure comprise approximately 60 percent of total land area.” to $5m as avenues for startups and entrepreneurs to exploit. The “coloured economies” of blue (sea), orange (cultural) and green (sustainable development) were identified as further opportunities for Bahamians. Mr Halkitis said there had been 120 new farming projects since 2019, and over 170 new licensed fishing projects in the same timespan, all of which suggested there were opportunities to boost the value chain via domestic production. “There’s a need to mobilise private sector capital,” he added. “Our tourism industry is recovering. The Caribbean is leading the world in terms of that recovery, and The Bahamas is leading the Caribbean in terms of that recovery. Barring more geopolitical disturbances, we expect that momentum to continue and the economy to improve. “We are seeing signs throughout in terms of employment and what is coming to the Government, so this is a good time to mobilise private sector capital and deepen the involvement of entrepreneurs in the tourism economy.” Acknowledging that “barriers to entry” must be removed, Mr Halkitis added: “I think the future is bright, we’re optimistic and bullish on the future of The Bahamas.”
NOTICE NOTICE is hereby given that ANA VASQUEZ WESEMBER of High Vista, Eastern District of New Providence, The 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 1st day of April, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE NOTICE is hereby given that KELVIN JOEL RODRIGUEZ DE JESUS of South Beach, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 1st day of April, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
THE TRIBUNE
Friday, April 1, 2022, PAGE 5
END TO INTER-ISLAND COVID TESTS A ‘WORLD OF DIFFERENCE’ FROM PAGE ONE
Tribune Business that the end to inter-island COVID testing was “great news” and would boost domestic tourism while smoothing “the transit” for international visitors accessing the Family Islands via Nassau. “It’s going to make a world of difference,” he added. Clint Watson, the Prime Minister’s press secretary, in announcing the relaxation, said: “We’re pleased to announce that the Ministry of Health and Wellness will be further relaxing travel
restrictions as it relates to COVID testing. “By the end of the week, travellers from Grand Bahama won’t have to test to travel to New Providence or other Family Islands. The Ministry of Health and Wellness will put out a statement detailing the change. In essence, what we’re doing is removing Grand Bahama off of the schedule that it’s on now, and placing it on the other one, so if you are travelling from Grand Bahama to the capital or to the Family
Islands you will no longer need to test. “New Providence is also included in that, and so you will no longer need testing if you are leaving New Providence to go to any of the Family Islands. You can do so without a test and that will be taking effect later this weekend, so that means testing will no longer be required for travel throughout the Bahama islands.”
MINISTER: ‘WE’LL SURPASS 2019 BY END OF THE YEAR’
compared to 2020 as businesses fully reopened and employee work hours increased. However, household consumption was still 3 percent less than the level reported in 2019.” Turning to The Bahamas’ trade data, the Institute added: “Exports of goods and services grew by $447m (20 percent) led by the upturn in tourism expenditure, which represents approximately 65 percent of this sector. Air stopover arrivals, a component of tourism expenditure, increased considerably compared to 2020. However, when compared to 2019, it was 53 percent lower. Similarly, cruise
visitors for 2021 was 75 percent less than in 2019. “Imports of goods and services increased by $868m (22 percent) as a result of increased economic activity. When compared to 2019, however, this was $527m lower. This decrease in imports contributed positively to GDP, as imports reduce the level of GDP. “Gross fixed capital formation increased by $462m (23 percent), which was broadly based across all components. Machinery and equipment represented $246m, followed by buildings and infrastructure which accounted for $202m of the increase.”
“It has wider implications for the country at large. Persons commute from other Family Islands through New Providence to Grand Bahama. It’s one less burden to carry. It’s another step towards recovery in terms of revenue generation. It speaks to normalcy. Now persons can get their sights on life returning to its normal pace. It’s one less thing to worry about. There’s some relief in sight for the Family Islands.”
FROM PAGE ONE effects of the COVID 19 pandemic,” the Institute said. “However, it did not regain the same level of GDP as attained in 2019. In 2021, the total value of goods and services produced in the Bahamian economy was estimated at $11.209bn in nominal prices, and at $9.837bn in real prices.” The Institute’s 13.7 percent growth estimate is more than double that given recently by the International Monetary Fund (IMF), which pegged the economy’s 2021 expansion at 5.6 percent. Mr Halkitis yesterday said the continued easing of the COVID restrictions that impacted 2021’s economic performance would enable The Bahamas to further recover lost ground in 2022. “I saw the numbers, and what I get is of course we’re not fully back to prepandemic levels,” he told Tribune Business. “2021 did not get us back to pre-pandemic levels because for the good part, the first half even into the beginning of the second half of 2021, we were still subject to the restrictions and occasional lockdowns and all of the issues related to travel. So my belief is as we saw those begin to loosen towards the end of the year that added impetus to the growth. So, it’s a positive sign. “We’re not back to where we were pre-pandemic. I believe, from what we’re seeing now, end of last year coming now into this year, we should see that recovery. So by the end of this year we should definitely be back ahead of pre-pandemic levels,” Mr Halkitis continued. “The signs are positive. As you look around you see tourism is very strong,
The testing end will ease the bureaucracy and logistics for those who have to travel inter-island for business and to access government services, Mr Hamilton said. He added that the timing was especially beneficial just before the Easter season, when New Providence residents visited family and friends in the Out Islands, and persons there both transited through and visited New Providence. Hopeful of a further travel boost, he added that
leading the economy, and construction as well is very strong. So I think the main thing is, because for maybe two-thirds of the year we were still subject to lockdowns and restrictions etc, that dampened 2021, but going from now we should, at the end of this year, you should see us surpass those levels of 2019.” Several industries, according to the Institute’s data, enjoyed 2021 output levels that exceeded those of both 2019 and 2020. Among them was real estate, owner-occupied and rentals, which generated $1.744bn in economic activity due to surging demand from foreign buyers. This was a 4 percent rise on 2019’s $1.678bn. Finance and insurance was flat with 2019 output, standing at $1.074bn, while the shift to remote work for many businesses and staff resulted in information and communications output expanding by 15.6 percent to $440.3m compared to $381m in 2019. Meanwhile, wholesale, retail and motor vehicle repair services expanded by 7.4 percent to $1.643bn worth of economic output as opposed to $1.529bn in 2019. The Institute said this data was based on the “production approach”, which measures the gross value added by each industry in the Bahamian economy. “The industries that showed the most significant recovery in 2021 were the following. Wholesale/retail trade, and motor vehicle repairs, increased by $238m (17 percent) over 2020. This was a 7 percent increase when compared to the level of 2019,” it said. “Construction increased by $192m (38 percent) over 2020. However, when compared to the level of 2019 there was a 12 percent
BANKS ‘SHYING AWAY’ FROM HOSPITALITY, ENTREPRENEURS FROM PAGE ONE that they’re very profitable, but collateral is lacking.” To overcome such obstacles, Ms Adderley said RBC had partnered with the Government’s Small Business Development Centre (SBDC), which provides guarantees to underwrite financing to entrepreneurs and start-up ventures. Bahamian commercial banks have long been criticised for being risk averse, and preferring to finance consumer debt rather than invest in the more productive sectors of the economy that have long been starved of capital. However, banks generally lack the imagination and vision to take such risks on entrepreneurs and start-ups, and there are laws and regulations that prevent them from doing so - not least the need to safeguard their depositors’ money. Ms Adderley, meanwhile, confirmed that most Bahamian banks took a similarly risk-averse stance when it came to lending to the hotel and hospitality industry, the largest sector in the Bahamian economy. “Banks do have a reputation for shying away from providing credit to the hospitality industry, especially in the Family Islands,” she conceded. Key deterrents were the “cyclical nature of cash flows” given the typical
peaks and troughs of the Bahamian tourism calendar, and often the absence of financial records and data upon which to assess a hotel or tourism operator’s performance. “We do provide support to this market where opportunities exist,” Ms Adderley said, pointing out that RBC had recently provided financing for an unnamed boutique hotel acquisition in the Family Islands that had “fared very well” and exhibited “strong cash flow”, in addition to a solid business plan from the purchaser. Latia Duncombe, the Ministry of Tourism’s acting director-general, told the same webinar that The Bahamas’ had “in the last three years alone benefited from close to $2bn in foreign direct investment” inflows into major resort projects. Hotel numbers had expanded to 322, with the newer developments including the 300-room Margaritaville property with its 11 dining options, plus the upgrades at Resorts World Bimini and Sandals Royal Bahamian.
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the move could also aid passenger load factors for domestic carriers who have yet to see them rebound to pre-pandemic levels. “There’s been a reasonable turnaround, and this will add to that turn,” Mr Hamilton told this newspaper. “[Load factors] are maybe around 60-65 percent, in that range. We’d have been anywhere from 75-80 percent.” Benjamin Simmons, proprietor of The Other Side and Ocean View properties on Harbour Island, told
decline. Accommodation and food services increased by $184m (65 percent) when compared to 2020, as major hotels reopened and border closures were reduced globally. However, when compared to 2019 this industry group was 57 percent lower. “Transportation and storage increased by $146m (61 percent) when compared to 2020 as the tourism sector began its rebound. Air traffic increased considerably, which resulted in increased demand for taxi and land transportation. When
compared to 2019, however, the industry was 27 percent lower.” Measuring household and government consumption, the Institute added: “General government consumption increased by $201m (13 percent) when compared to 2020, a direct result of an increase in purchases of goods and services. The level of government consumption, however, was 2 percent lower than what was reported in 2019. “Household consumption grew by 23 percent
GN-2693
PAGE 8, Friday, April 1, 2022
THE TRIBUNE
KREMLIN DEMANDS RUBLES FOR GAS, EU LEADERS PUSH BACK By FRANCES D’EMILIO AND GEIR MOULSON Associated Press BERLIN (AP) — Russian President Vladimir Putin insisted Thursday that the country’s natural gas must be paid for with rubles, a demand apparently intended to help bolster the Russian currency but one that European leaders say they will not comply with because it violates the terms of contracts and sanctions. Putin said Russia will start accepting ruble payments Friday and gas supplies will be cut off if buyers don’t
received assurances from Putin about gas supplies. Putin announced last week the countries deemed “unfriendly” for imposing sanctions on Russia over its war in Ukraine must pay for natural gas only in Russian currency. His proposal has caused natural gas prices to gyrate and raised fears it could be a prelude to an interruption of supplies to Europe, which is heavily dependent on Russian natural gas and would struggle with a sudden cutoff. At the same time, Russia depends on oil and gas sales for much of its government revenue at a time its economy
agree to the new conditions, including opening ruble accounts in Russian banks, from which the gas payments will be made. “If these payments are not made, we will consider it a failure of the buyer to fulfill its obligations, with all the ensuing consequences,” Putin said. European leaders cautiously insisted they will continue to pay for natural gas in euros and dollars and want to see the fine print of how the Kremlin will implement its decree. It came a day after the leaders of Italy and Germany said they
White House said Thursday that the ruble is no longer a reliable measure of Russia’s economy because it’s being artificially propped up. Analysts at Evercore ISI said Putin’s primary motive seems to be “to prove he can bend EU leaders to his will.” They also said that even if Russia is able to force the EU to pay for gas in rubles, the European countries could retaliate by imposing more tariffs on Russian oil imports or banning them outright. While Russia could eventually sell the oil, the price would likely be at a steep discount, the analysts said.
is under severe stress from Western sanctions. Putin’s demand appeared to be part of Russia’s efforts to boost the ruble after the currency plunged under Western sanctions. After dropping as low as 143 rubles to the dollar in early March, on Thursday it took 82 rubles to buy a dollar, around the same level as the day Russia launched its invasion. Economists say switching the gas payments to rubles would do little to support the Russian currency, since gas exporter Gazprom has to sell 80% of its foreign currency earnings for rubles anyway. The
THE WEATHER REPORT
5-Day Forecast
TODAY
ORLANDO
High: 82° F/28° C Low: 69° F/21° C
TAMPA
SATURDAY
SUNDAY
MONDAY
TUESDAY
Humid; breezy in the morning
Mainly clear and humid
Mostly sunny and humid
A t‑storm in spots in the afternoon
A t‑storm in spots in the morning
Mostly sunny and humid
High: 84°
Low: 73°
High: 84° Low: 72°
High: 83° Low: 73°
High: 82° Low: 71°
High: 84° Low: 74°
AccuWeather RealFeel
AccuWeather RealFeel
AccuWeather RealFeel
AccuWeather RealFeel
AccuWeather RealFeel
AccuWeather RealFeel
92° F
78° F
94°-75° F
92°-78° F
91°-74° F
92°-78° F
The exclusive AccuWeather RealFeel Temperature® is an index that combines the effects of temperature, wind, humidity, sunshine intensity, cloudiness, precipitation, pressure and elevation on the human body—everything that affects how warm or cold a person feels. Temperatures reflect the high and the low for the day.
N
almanac
E
W
ABACO
S
N
High: 82° F/28° C Low: 75° F/24° C
8‑16 knots
S
High: 87° F/31° C Low: 72° F/22° C
7‑14 knots
FT. LAUDERDALE
FREEPORT
High: 86° F/30° C Low: 73° F/23° C
E
W S
E
W
WEST PALM BEACH
N
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TONIGHT
High: 81° F/27° C Low: 72° F/22° C
High: 83° F/28° C Low: 73° F/23° C
MIAMI
High: 87° F/31° C Low: 74° F/23° C
6‑12 knots
KEY WEST
High: 85° F/29° C Low: 75° F/24° C
ELEUTHERA
NASSAU
High: 84° F/29° C Low: 73° F/23° C
Forecasts and graphics provided by AccuWeather, Inc. ©2022
N
uV inDex toDay
The higher the AccuWeather UV IndexTM number, the greater the need for eye and skin protection.
tiDes For nassau High
Ht.(ft.)
Low
Ht.(ft.)
Today
8:45 a.m. 9:09 p.m.
2.8 3.0
2:43 a.m. ‑0.4 2:59 p.m. ‑0.4
Saturday
9:26 a.m. 9:49 p.m.
2.7 3.0
3:27 a.m. ‑0.3 3:37 p.m. ‑0.4
Sunday
10:05 a.m. 10:28 p.m.
2.5 2.9
4:10 a.m. ‑0.2 4:13 p.m. ‑0.3
Monday
10:44 a.m. 11:08 p.m.
2.3 2.8
4:52 a.m. ‑0.1 4:50 p.m. ‑0.1
Tuesday
11:24 a.m. 11:50 p.m.
2.2 2.6
5:34 a.m. 5:28 p.m.
0.1 0.1
Wednesday 12:06 p.m. ‑‑‑‑‑
2.0 ‑‑‑‑‑
6:19 a.m. 6:09 p.m.
0.3 0.3
Thursday
2.5 1.9
7:07 a.m. 6:56 p.m.
0.5 0.4
12:35 a.m. 12:53 p.m.
sun anD moon Sunrise Sunset
7:02 a.m. Moonrise 7:26 p.m. Moonset
7:24 a.m. 8:01 p.m.
New
First
Full
Last
Apr. 1
Apr. 9
Apr. 16
Apr. 23
CAT ISLAND
E
W
High: 83° F/28° C Low: 75° F/24° C
N
S
E
W
6‑12 knots
S
7‑14 knots Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.
Statistics are for Nassau through 2 p.m. yesterday Temperature High ................................................... 82° F/28° C Low .................................................... 70° F/21° C Normal high ....................................... 80° F/27° C Normal low ........................................ 67° F/20° C Last year’s high ................................. 86° F/30° C Last year’s low ................................... 70° F/21° C Precipitation As of 2 p.m. yesterday ................................. 0.00” Year to date ................................................. 6.36” Normal year to date ..................................... 4.51”
High: 83° F/28° C Low: 75° F/24° C
The decree Putin signed and state news agency RIA Novosti published says a designated bank will open two accounts for each buyer, one in foreign currency and one in rubles. Buyers will pay in foreign currency and authorize the bank to sell it for rubles on Moscow’s currency exchange. The rubles would then be placed in the second account, where the gas is formally purchased. People are “wondering what Putin is up to,” said Tim Ash, senior emerging markets sovereign strategist at BlueBay Asset Management.
ANDROS
SAN SALVADOR
GREAT EXUMA
High: 82° F/28° C Low: 74° F/23° C
High: 83° F/28° C Low: 76° F/24° C
N
High: 83° F/28° C Low: 74° F/23° C
E
W S
LONG ISLAND
tracking map
High: 84° F/29° C Low: 75° F/24° C
7‑14 knots
MAYAGUANA High: 83° F/28° C Low: 78° F/26° C
Shown is today’s weather. Temperatures
CROOKED ISLAND / ACKLINS
are today’s highs and tonight’s lows.
RAGGED ISLAND High: 82° F/28° C Low: 76° F/24° C
H
High: 82° F/28° C Low: 75° F/24° C
GREAT INAGUA High: 84° F/29° C Low: 76° F/24° C
N
E
W
E
W
N
S
S
8‑16 knots
8‑16 knots
marine Forecast ABACO ANDROS CAT ISLAND CROOKED ISLAND ELEUTHERA FREEPORT GREAT EXUMA GREAT INAGUA LONG ISLAND MAYAGUANA NASSAU RAGGED ISLAND SAN SALVADOR
Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday:
WINDS S at 7‑14 Knots S at 4‑8 Knots SE at 6‑12 Knots ESE at 4‑8 Knots SE at 7‑14 Knots ESE at 6‑12 Knots ESE at 8‑16 Knots ESE at 8‑16 Knots SE at 7‑14 Knots SE at 4‑8 Knots S at 8‑16 Knots S at 6‑12 Knots SE at 7‑14 Knots ESE at 6‑12 Knots E at 8‑16 Knots E at 7‑14 Knots ESE at 8‑16 Knots ESE at 7‑14 Knots ESE at 8‑16 Knots ESE at 7‑14 Knots SSE at 7‑14 Knots SE at 6‑12 Knots SE at 8‑16 Knots ESE at 7‑14 Knots SE at 7‑14 Knots ESE at 6‑12 Knots
WAVES 3‑6 Feet 2‑4 Feet 1‑2 Feet 0‑1 Feet 3‑6 Feet 2‑4 Feet 3‑6 Feet 2‑4 Feet 3‑5 Feet 2‑4 Feet 1‑3 Feet 1‑2 Feet 1‑2 Feet 0‑1 Feet 3‑5 Feet 2‑4 Feet 3‑5 Feet 2‑4 Feet 4‑8 Feet 3‑6 Feet 1‑3 Feet 1‑2 Feet 3‑5 Feet 2‑4 Feet 1‑3 Feet 1‑2 Feet
VISIBILITY 10 Miles 6 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 8 Miles 7 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles
WATER TEMPS. 77° F 77° F 78° F 80° F 78° F 78° F 79° F 79° F 77° F 78° F 78° F 80° F 78° F 80° F 79° F 79° F 79° F 79° F 78° F 78° F 78° F 78° F 79° F 79° F 77° F 78° F