04032017 business

business@tribunemedia.net

MONDAY, APRIL 3, 2017

$4.10

GB provides 65% of Matthew claims

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Grand Bahama has accounted for almost twothirds of the $409 million in gross Hurricane Matthew claims reported to the Bahamas Insurance Association (BIA) to-date.

Emmanuel Komolafe, the BIA’s chairman, told Tribune Business that more than $267 million in gross insurance claims have been submitted by businesses and residents on Grand Bahama, which was especially hard-hit when Matthew’s winds and storm surge strengthened to Category Four force.

Giving an industry-wide update, Mr Komolafe said that based on data passed to the BIA to-date, New Providence had got off relatively lightly in comparison with just over $125 million in gross claims reported todate.

He added that the Bahamian property and casualty industry’s estimate of $400 million in total Matthewrelated insured losses, given days after the storm’s passage in early 2016, had “held true and steady” based on current performance.

“From a review of returns made to the BIA to date,

Island accounts for $267m of $409m total Majority comes from $265m property claims New Providence less than one-third of BIA total

$4.16

$4.16

BTC: Aliv taking ‘Liberty’ on name

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

The Bahamas Telecommunications Company (BTC) is demanding that its new mobile rival stop using its controlling shareholder’s name to brand one of its product suites, setting the stage for a bruising trademark lawsuit.

Aliv, which has broken BTC’s long-standing mobile monopoly, has responded defiantly to its competitor’s demand, insisting that it will “continue to advertise” its ‘Liberty Global’ Haiti calling plan.

The brewing trademark/

Mobile rivals gear up for trademark battle BTC: Rival ‘infringing’ name of our parent firm Aliv: Liberty Global has ‘no monopoly’ on language copyright battle between the two mobile rivals is disclosed in the private place-

ment memorandum (PPM) for Aliv’s recently-closed bond offering, which closed on Tuesday last week 100 per cent oversubscribed, having raised $60 million.

Liberty Global is now BTC’s controlling shareholders, and the latter is arguing that Aliv’s use of the same name for one of its product categories falsely suggests its parent has “endorsed” its rival.

Aliv, though, is countering that ‘liberty’ and ‘global’ are common English words, and that BTC and its controlling shareholder “do not have monopoly rights” over their usage.

It added that Bahamian

consumers are unlikely to connect Liberty Global, the company, which took over BTC via its 2016 acquisition of Cable & Wireless Communications (CWC), with Aliv’s own product offerings.

“On March 6, 2017, BTC wrote to Aliv’s general counsel alleging the unauthorised and infringing use of ‘Liberty Global’ by Aliv,” Aliv’s PPM discloses, describing the issue as a ‘pending trademark claim’.

“BTC claims that ‘Liberty Global’ is an international telecoms company providing services around the world, including in the See pg b9

Sands: Doctor, care quality ‘impossible’ if 70% NHI pay cut Emmanuel Komolafe Grand Bahama accounted for 65 per cent of the total claims incurred, while New Providence accounted for 31 per cent of the total,”Mr See pg b9

FNM deputy pledges repeal of Freeport’s investments regime

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

$4.14

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A well-known physician says it is “going to be incredibly difficult, if not impossible” for Bahamian doctors to run quality medical practices with the 66-77 per cent compensation cuts proposed by the National Health Insurance (NHI) scheme.

Dr Duane Sands, also the FNM’s candidate for Eliza-

beth, said a February 2017 NHI draft showed that doctor fees were being determined by the need to fit the primary care phase into the $100 million budget allocated by the Government, not the true cost of services.

He warned that the dramatic cuts in doctor compensation, compared to the Medical Association of the Bahamas (MAB) fee schedule, threatened to compromise quality of care by forcing physicians

to treat patients as “human cattle”.

Dr Sands said this would be the natural consequence of the proposed fee cuts for providers that signed on to NHI as is, for they would be forced to dramatically increase the number of patients seen - and reduce the time spent with each one - to make their practice’s economics work.

He added that many private doctors would see See pg b8

Scheme fees will see patients become ‘human cattle’ Compensation ‘untenable’ for private doctors Paper shows NHI being squeezed into $100m budget

‘Fully committed’ to passing ‘true Incentive Act’

The FNM’s deputy leader yesterday pledged the party will repeal Freeport’s new investment regime if elected to government, amid continuing uncertainty over whether businesses should apply to receive continued tax exemptions.

K P Turnquest told Tribune Business that the main See pg b4

GB Chamber advises applying; deadline now May 4

Carey Leonard

Mick holding

Govt hand delivers letter seeking licensee applications

‘Russian roulette’ fear over Freeport tax break sign-up

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Grand Bahama Port Authority’s (GBPA) former attorney is “completely disassociating myself” from an advisory suggesting Freeport businesses apply for renewal of their tax breaks, with some arguing that to do so is akin to See pg b5

Ex-GBPA attorney ‘astonished’ at Chamber advice Says applying equal to ‘double taxation’ consent Chamber chief: ‘Better off’ to apply due to tax

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PAGE 2, Monday, April 3, 2017

THE TRIBUNE

Newly-opened PI hotel ‘comes alive’

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Warwick Paradise Island resort expects occupancy levels will continue climbing following last week’s official opening, with

executives telling this newspaper: “The hotel has come a long way”.

Lorenzo ‘TC’ Symonette, the all-inclusive property’s manager, told Tribune Business: “Things are looking very good. In October last year we had an introductory-

type opening, and now we have opened the hotel officially to the world.

“Warwick Paradise Island has come alive now and we expect great things. The hotel has come a long way. It’s a completely brand new hotel operating 250 rooms, five

restaurants and two bars.

We’re excited about our new spa programme that has come online. Our food and beverage offering is exceptional.”

Richard Chiu, the Hong Kong-born president and founder of the Warwick

Hotels and Resorts Group, told this newspaper last November that “just short of $50 million” had been invested in upgrading the property, formerly the Paradise Island Harbour Resort, which was purchased from Lehman Brothers Holdings and Driftwood Hospitality Management (via Gemwood Paradise Ltd) during a 2012 auction. The Warwick Hotels and Resorts Group now has a collection of 53 hotels with close to 9,000 rooms worldwide.

Mr Symonette said the resort’s occupancies are in the 60-65 per cent range currently, and climbing. “Our occupancy is now in the neighbourhood of 60-65 per cent and climbing,” he said.

“We held some of it back because to do a grand opening and have a full house would be cumbersome. Cur-

rently, we have in the neighborhood of 165 employees.”

Prime Minister Perry Christie said the hotel has hired 40-50 core managerial employees via a subsidiary, and “entered into an outsourcing arrangement with HR Business Solutions and Marketing Company for the hiring of 125 line staff on the property.

“They have been partnering with the Ministry of Labour and National Training Agency to ensure that employees are trained and able to deliver levels of service representative of the brand.”

The hotel’s 250 rooms are spread across 12 floors.

Apart from five dining options and two bars, the resort has a fully equipped fitness centre, entertainment and activities, an onsite gift shop and tour desk offering sightseeing options.

Road Traffic: Commercial vehicle month ‘good now’

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Road Traffic Department’s principal yesterday said it had finally gotten a handle on the massive licensing backlog caused by commercial vehicle month month falling in March.

Ross Smith, its controller, told Tribune Business that the department had been working around the clock to facilitate vehicle licensing. “We’re getting there,” he said.

“We’ve been working around the clock. We just had a few companies that didn’t send in the relevant information; very few, smaller companies. We’re open every day, tired but we’re OK. We have it under wraps now. I was a bit concerned before but we’re good now.”

Tribune Business was informed by several sources that the Road Traffic Department has run out of the new vehicle license plates on several occasions.

On that issue, Mr Smith

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said yesterday: “We didn’t run out of plates until a few days ago. It has to do with where they are coming from.

While we are building the system for the manufacturing of plates, we have to have them done through the company that we have contracted. They had some issues but they are back on track.”

The manufacturing of vehicle license plates will now be done by inmates at the Bahamas Department of Corrections, in a bid to address shortages and reduce costs.

At a press conference last week, Mr Smith said: “I believe there’s going to be significant savings; one because we have up-to-date equipment, not the old antiquated equipment.

“And so once you have equipment that is more up to date, 21st century focused, we should be able to produce plates much cheaper than we ordinarily produce them. With the actual raw material being used, along with the labour, we should be well under $10 for the production of plates.”

THE TRIBUNE

Monday, April 3, 2017, PAGE 3

Baha Mar owner: April 21 ‘no sham’

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

Baha Mar’s new owner yesterday said it will not repeat the mistakes of previous developer, Sarkis Izmirlian, and reassured that its ‘soft opening’ on April 21 is “not a sham”.

Graeme Davis, president of Chow Tai Took Enterprises’ (CTFE) Bahamian subsidiary, told Tribune Business that the Hong Kong-based conglomerate has “one chance to get it right”, which was why it had adopted a phased opening approach to the $4.2 billion resort development.

“We only have one chance to get it right, and that is to ensure that we open properly and in a phased manner, and ensure that the experience is exceptional on day one,”Mr Davis said.

“We have a tremendous amount of invited guests already. We are full in the first days. We will open that

Executive: ‘We only have one chance to get it right’ Tells critics: ‘You’re not in the business; we are’ reservation system, rest assured. This is not a sham.

This is not anything other than a lodging company that has experience and will open on our terms, in the right fashion, and ensure that every guest walks away with an exceptional experience and tells that in order to regain the trust that was lost in the past. We want to make sure we get it right this time.”

His comments came after his presentation at a public hearing on Friday over thegaming license application

by Sky Warrior (Bahamas) Ltd, the CTFE affiliate which will own and operate

BAHA MAR developement project the project’s 100,000 square foot casino, the largest in the Caribbean.

During the presentation, Mr Davis confirmed that the 1,800 room Grand Hyatt will be the first hotel to open. “We could occupy as many rooms as we need, but we want to make sure that with our restaurant capacity that we shepherd that experience and make sure it’s exceptional,” he said.

“As we progress each week we will open more rooms. Rest assured, if you’re concerned about advertising or not seeing reservations online, we know what we are doing. We’re experienced lodging executives. We have a company with a great depth of resources to ensure that we open properly. There will be guests coming here in the very near future. On

CTFE confident casino concerns all addressed

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

Baha Mar new owner is confident it has addressed any concerns over its suitability for a gaming license, adding that its casino could rival those in Las Vegas or other global gaming destinations.

Graeme Davis, president of Chow Tai Took Enterprises’ (CTFE) Bahamian subsidiary, told Tribune Business: “We have hired a world-class executive team.

We have provided, and will provide, any documentation or any request from the Gaming Board to ensure it is comfortable with us being the operator of the Baha Mar casino.

“We are very confident that we have addressed any concerns or issues. We are confident that we met all the

requirements to operate the casino.”

His comments to this newspaper came following his presentation at a public hearing at the British Colonial Hilton on Friday on the gaming license application from Sky Warrior (Bahamas) Ltd. Sky Warrior (Bahamas) is the CTFE subsidiary that will own and operate the project’s 100,000 square foot casino, the largest in the Caribbean.

“Right now we have over 300 persons for just the casino area, but we have over 1,000 persons hired in total,” Mr Davis said.

“In the coming days we will have 1,500 to be open for April 21. We are very confident that the teams are coming together, the training is taking place and everyone is working very hard to ensure that we are successful.”

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day one we will be open to the public.”

The new developer is pushing for a full opening in March 2018. Baha Mar also includes a 300-room SLS resort, a 200-room Rosewood Baha Mar property, and the 694-room Melia Nassau Beach, which has been open for three years and operates as an adultsonly, all-inclusive.

During his presentation Mr Davis also shot back at critics questioning the new developer’s strategy, and the failed attempt by Mr Izmirlian to open the resort.

“I don’t try to play politics. I am a lodging executive and I do know how to open a hotel,” he said.

“When some people say that there are no reservations, and how can it be open, they are not in the business; we are.

“When it comes to the past experiences of not

opening and missing your opening dates, anyone who has been in the lodging business knows that you don’t open until the experience and detail is exceptional in every way.

“If that means you open with 10 rooms, you open with 10 rooms. We don’t end up like in the past, disappointing people, ruining people’s vacations and costing millions in lost business. We only have one more chance to get it right.

We are going to open in a thoughtful way. We will start with invited guests, which we are full already with, and we will continue as the days progress to open up those reservations beyond.

“We’re not wasting millions in past advertising that never opened the property,” added Mr Davis, expressing confidence in the ‘pent up demand’ for the resort.

PAGE 4, Monday, April 3, 2017

FNM deputy pledges repeal of Freeport’s investments regime From pg B1 Opposition party was “firmly committed” to repealing and replacing the Grand Bahama (Port Area) Investment Incentives Act 2016, arguing that the legislation was “not conducive to a stable business climate”.

“We are firmly committed to repealing that Act, particularly the portions that relate to applying for incentives,” Mr Turnquest said.

“We believe that Grand Bahama and Freeport need an opportunity to rebound, and this particular piece of legislation does not help us to create the kind of certainty to attract investors here for the long-term.

“The Bill does not help spur investment in Grand Bahama. It does the exact opposite.”

The expiration of Freeport’s real property tax, income and capital gains tax exemptions on May 4, 2015, enabled the Government to remove these incentives from the purview of the Hawksbill Creek Agreement via the new Act. The Grand Bahama Port Authority’s 3,500 licensees, with the exception of the GBPA and Hutchison

Whampoa’s companies, now have to apply to obtain these incentives from the central Government’s Investments Board in Nassau.

The application process is viewed by many as introducing extra costs, bureaucracy and uncertainty into Freeport’s investment and business climate, especially since the granting of incentives is now at the Government’s discretion - and no longer an ‘absolute right’ under the Hawksbill Creek Agreement.

Mr Turnquest emphasised these issues yesterday, pointing to the reporting requirements imposed on licensees, as well as the Investment Board reviews to ensure granted incentives are being properly used.

“There’s subjectivity in the process that may be unfair depending on the status of the investor,” he told Tribune Business. “We don’t believe it’s conducive to a stable environment or making the jurisdiction competitive vis a vis our competitors.

“We are on record to repeal that Act and replace it with a true Incentive Act to put Grand Bahama on par with its competitors, if not

advance us to a regime with some of the advantages we had in the past.”

The FNM’s stance, as outlined by Mr Turnquest, introduces a new consideration - possibly even further uncertainty - into the decision many GBPA licensees are currently agonising over in terms of whether to formally apply for incentive renewals under the new Act. The Government last week extended the deadline for submission of such applications by another month, pushing it back from April 4 to May 4, 2017.

This is the second such extension granted by the Christie administration, and many observers are interpreting it as a sign that few GBPA licensees have been applying.

Further evidence for this assessment comes from the fact that the Government, in what many view as an attempt to pressure GBPA licensees to comply, has been hand delivering letters to Port Lucaya Marketplace tenants urging them to apply for their tax exemptions.

“I look forward to your co-operation and support as we now work towards the continued growth and development of Grand Bahama Island,” said the letter, signed by Melvin Seymour, permanent secretary for the Ministry of Grand Bahama.

Tribune Business has seen a copy of one such letter, as well as the March 30,

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2017, advisory sent by the Grand Bahama Chamber of Commerce to its members, suggesting that they comply and apply.

Confirming the monthlong extension to May 4, the Chamber letter acknowledged: “Currently, the most frequently asked question amongst our members is whether or nor they should apply for the various tax concessions detailed in the Grand Bahama (Port Area) Investment Incentives Act 2016.

“The Chamber will continue its dialogue with Government to gain further clarity to the interpretation of the provisions of the Act on behalf of its members.”

Key among the private sector’s concerns, as yet unanswered by the Government, is whether the new Act and its application form, taken together, effectively ‘lock in’ licensees not planning to expand their businesses to maintaining their existing employment levels for five years.

Should they be forced to downsize, the Act allows the Minister for Investments to strip Freeport businesses, partially or in full, of their tax breaks, and even enables them to demand payment of taxes that should have been paid if no concessions were granted.

The Act enables the Minister to “reduce or revoke in full” the tax breaks granted, and even “demand payment in respect of any money that would have been payable had no concessions under the Act been conferred”. In effect, it demands retroactive or ‘back’ taxes.

Uncertainty over how long the tax breaks will be granted for is another unresolved issue, but the Grand Bahama Chamber nevertheless advised its members to comply with the new law.

“After due consideration

THE TRIBUNE by the Chamber, our advice, based on the information available as of today’s date is, yes, you should apply,” the March 30 letter read.

Setting out the rationale for its advice, the Chamber divided GBPA licensees into two distinct groups those that are Bahamianowned, and those that are foreign-owned.

This is because only real property tax, of the three tax exemptions dealt with by the Act, is presently in force in the Bahamas.

And, given that Bahamianowned real estate and property in the Family Islands is exempt from the tax, it stands to reason that only foreign-owned GBPA licensees are potentially exposed to its imposition.

However, the Chamber letter warned that the Family Island ‘exemption’ for Bahamian businesses was “qualified”, and could be repealed by the Minister responsible for real property tax based on the Act’s warning.

“In other words, the exemption could be withdrawn at any time,” the Chamber said. “This is a real possibility as the Bahamas moves to joining such international bodies as the World Trade Organisation (WTO).”

World trade rules would likely prevent the Bahamas from discriminating between foreigners and Bahamians in terms of real property tax treatment, and the Chamber letter warned that the Government could also explore income and capital gains taxes in the future as it “seeks new ways to raise revenues’.

“Therefore, while there currently is no liability to any of these taxes, application for exemption under the Act will give protection against such taxes for a period of up to 20 years,

dependent on the period for which the concession is granted on an individual basis,” the Chamber advised Bahamian-owned licensees.

As for their foreignowned counterparts, the Chamber warned that they were “vulnerable” to the imposition of real property taxes if they did not apply, and could potentially hit with demands for a year’s worth of retroactive taxes to May 4, 2016.

“In the case of both Bahamian-owned and foreign-owned businesses, we feel that for the cost of the $100 processing fee it is an inexpensive ‘insurance policy’ against current and possible future taxation,” the Chamber letter said in advising members to apply.

It emphasised, though, that a decision had to be made by each individual business.

Mr Turnquest, meanwhile, said Freeport had fallen victim to a trend where other nations had “duplicated” its free trade zone model, “expanded on it and done it better”.

Arguing that such a description could also apply to the Bahamian tourism and financial services industries, he added: “We want to reverse that and get ahead of the curve, and become an attractive investment destination again.”

Questioning whether the Government saw the Grand Bahama (Port Area) Investment Incentives Act 2016 as a revenue-raising, rather than investment-enhancing, measure, Mr Turnquest also challenged why it was targeting Port Lucaya Marketplace tenants.

He emphasised that as tenants, they had no potential real property tax liabilities under the Act, calling into question why their applications were being sought.

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THE TRIBUNE

Monday, April 3, 2017, PAGE 5

‘Russian roulette’ fear over Freeport tax break sign-up From pg B1 “playing Russian roulette”.

Carey Leonard, now an attorney with Callenders & Co, told Tribune Business he was “astonished” that the Grand Bahama Chamber of Commerce had advised its members to apply for renewal of key tax exemptions via the Grand Bahama (Port Area) Investment Incentives Act 2016.

Mr Leonard said the Chamber was giving this advice despite not knowing what the GBPA’s 3,500 licensees will be signing up to, given that the duration and extent of any tax breaks granted is entirely at the Investments Board’s discretion.

He added that the Chamber also had yet to receive government answers to key questions, particularly whether those businesses not planned to expand within the next 12 months will be ‘locked in’ to maintaining current employment levels for the next five years.

Mr Leonard also told Tribune Business that by applying, GBPA licensees were effectively giving consent to potential “double taxation” through the imposition of real property tax on top of service charges currently paid to the Port Authority.

“Why would you sign up for something that you don’t know what you’re signing up for,” Mr Leonard queried to Tribune Business.

“There is no criteria and no certainty. I disassociate myself completely from the letter sent out by the Government in its entirety.

“I’m astonished that the Chamber would advise its members rather than report to them. How can you be telling them to do this when they still have unanswered questions? The Chamber’s

questions have not been answered. Why are they telling people to sign up?”

Mr Leonard was referring to the March 30, 2017, advisory sent by the Grand Bahama Chamber to its members, which advised that they apply for renewal of their real property tax, income and capital gains tax exemptions via the new Act’s mechanisms (see other article on Page 1B).

The Chamber advised its members that the $100 processing fee cost was an inexpensive ‘insurance policy’ against potential current and future taxation being imposed upon them.

Foreign-owned licensees are particularly vulnerable to real property tax, which the Chamber warned could be imposed against them retroactively for the past year to May 4, 2016, if they did not apply.

This category of licensee includes all Freeport’s major industrial investors, such as the Grand Bahama Shipyard, BORCO, Pharmachem and Polymers International, who, given their real estate holdings, could be exposed to multimillion dollar liabilities.

However, one Freeport businessman, speaking on condition of anonymity, said the numerous ‘unknowns’ associated with applying - especially the complete discretion granted to the Investments Board to determine which licensees were granted tax breaks, and for how long - meant it was not ‘inexpensive insurance’.

“Whilst I agree with the Chamber’s outline of the scenario, I do not agree with their position,” the businessman said. “It’s not cheap insurance; you’re betting on Russian roulette.

“You’re playing Russian roulette with $100, and we all know the house wins.’

Mick Holding, the Grand Bahama Chamber’s president, told Tribune Business that the concerns expressed

by Mr Leonard and others were “very fair comments”.

Yet he added: “I would say that whilst there is no certainty as to how long anyone will get, and the criteria of decisions will be whatever it is, it gives protection for foreign companies.

“Even if they only get five years, it gives them breathing space to have discussions about what happens at the end of five years.

My concern is that if they do not comply, they leave themselves liable for real property tax back to May 4,

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“If it only buys them five years, they don’t have retroactive taxes to pay. That’s the basis of the recommendation, and these things are never simple.”

Mr Holding said there had been a meeting last Monday “with a good proportion” of Freeport’s industrial investors and larger foreign-owned businesses to discuss the new Act and its implications.

While some present needed further discussions with their parent companies, he added: “I think the consensus of opinion is that we’re better off applying than not.”

Mr Holding acknowledged that there had been “some talk” of Freeport’s major industrial investors lobbying the Government for the same blanket 20-year exemption as that granted to the GBPA and Hutchison Whampoa, but to his knowledge this had not occurred yet.

“I think they were looking to the Government to take a lead and continue discussions with the Government, which is what we’re trying to do,” Mr Holding said.

“I’m very pleased there’s been another month’s extension [of the application deadline to May 4] to enable some progress to take place.”

The Chamber president admitted, though, that he had yet to make progress in obtaining answers to the private sector’s questions, or gain a meeting with the Government, although “I haven’t given up on that at all”.

Mr Leonard, meanwhile, argued that applying for the tax breaks’ renewal was akin to giving the Government consent to impose real property tax at some point, even if the exemptions were granted now.

“If you are signing up, you’re saying to the Government you have the right to double tax me; we’ve agreed to pay you,” Mr Leonard told Tribune Business.

“It’s really a double taxation because businesses are already charged a service charge in Freeport. Service charges are a real property tax for the purpose of maintaining roads, verges and all forms of infrastructure.

“We’re already paying a real property tax. Whoever signs up is saying: Fine,

charge me what you like, when you like, and however you like doing it. That’s the problem.”

Mr Leonard added that the threat of real property tax would also deter real estate developers and potential second home buyers from looking at Freeport as a place to invest, and ran counter to recommendations by the Government’s own adviser, Oxford Economics.

“I personally think the Act needs to be repealed or replaced with something better, or amended to that there is no real property tax fee for second homeowners,” he told Tribune Business.

However, another Freeport-based attorney, speaking in condition of anonymity, backed the Chamber and Mr Holding.

“If you don’t apply, you have to pay the tax,” they said. “The tax breaks went away. You had 30 years advance notice of that. If you want to pay the tax, don’t sign up.

“I’ve told all my clients that the facts are the tax exemptions went away. Why the hell wouldn’t you apply for an extension? Otherwise you just start paying.”

PAGE 8, Monday, April 3, 2017

Sands: Doctor, care quality ‘impossible’ if 70% NHI pay cut From pg B1 such a payment reduction as “untenable” for maintaining practice and patient care quality, which was why many were not registering to offer services under NHI. The February 2017 document, branded ‘confidential’ but now circulating widely in the healthcare industry, promises that NHI doctors’ fees will be determined by ‘fairness’, ‘simplicity’ and based on local and international industry ‘best practice’.

“The financial impact on physicians will be taken into account, and rates will be set in such a way to ensure a fair outcome for all physicians, while accommodating the public interest,” the NHI document states.

However, it states on the same page: “Rates will be developed in such a way that does not put the country’s finances at significant risk.”

And, on the following page, the NHI document effectively admits that doctors’ fees have been determined by the need to fit the primary care phase’s costs into the Government’s $100

million budget.

Noting that the ‘impact on total costs’ is one of they three key criteria for determining fees, the NHI document states: “Adjust to minimise the risk of total cost exceeding the $100 million available for year one.’

“There is no honest, objective assessment of what things ought to cost,” Dr Sands told Tribune Business. “It’s start off with a budget and work back from that, not look at needs, demographics and health profiles. Let’s start with a dollar amount and work back.

You’re trying to force it into a budget plucked out of thin air.”

The NHI paper proposes to reduce the existing 39 ‘fee codes’ used by primary care doctors to five basic payments, on the grounds that these accounted for more than 70 per cent of claims submitted to one private health insurer in 2014.

Besides “largely aligning” with current doctor claims, the NHI document said such a ‘five-fee structure’ would “simplify the billing process” for the scheme and its administration.

It thus proposed fees for a ‘Simple Doctor Visit’ at $36; ‘Intermediate Visit’ at $60; ‘Complex Visit’ at $78; ‘Periodic Health Assessment’ at $66; and ‘Telephone consultation’ at $24.

Premiums of 15 per cent and 25 per cent are to be added to these fees for ‘new patients’ and a ‘home visit’ by a doctor.

Dr Sands said that compared to the recommended MAB fee schedule, the ‘Simple Doctor visit’ fee represented a 71 per cent reduction.

He added that the ‘Intermediate’ and ‘Complex’ visit fees represented 66 per cent and 71 per cent reductions, respectively, and ‘Periodic Health Assessment’ was a 77 per cent cut.

“It is highly likely that such a drastic reduction is highly untenable for practices,” Dr Sands told Tribune Business. “The only way you could survive is on the basis of volume and drastic reductions in faceto-face time, and things detrimental to quality of care.

“It basically turns patients into cattle. To maintain revenue across the board, you will need to be seeing a huge number of patients and no way is that tantamount to quality of care.”

Dr Sands said the current MAB fee schedule was “not high margin at all”, saying

it was “pretty inexpensive relative to existing norms”.

In a nod to the Government’s likely response, which may seek to portray private doctors as greedy, he continued: “Physician costs are not anywhere near top of the scale compared to regional norms.”

Dr Sands said the most expensive elements of healthcare were facility use charges, such as for patient hospitalisation, and equipment use. The latter costs, he added, were exacerbated by import duties and VAT. “When you look at these charges, how do you get to see a patient for $36 of office time,” Dr Sands said, breaking down the costs incurred by Bahamian doctors. Besides providing a sterile sheet for patients to lie on, he said physicians also had to cover medical waste management; blood pressure and vital signs readings; the costs of reception, care management and nursing staff; the provision of water coolers and maintaining a reception area.

“How does that get paid from $36,” asked Dr Sands again. “If you look at this now, that says it is going to be incredibly difficult, if not impossible, to run a medical practice with any level of quality.

“What I think this may force people to do is not look at this in terms of the specifics, but distill it to its

NOTICE IN THE ESTATE of Mizpah Tertullien, late of the Southern District of the Island of New Providence, one of the Islands of The Commonwealth of The Bahamas, deceased.

Notice is hereby given that all persons having any claim or demand against the above Estate are required to send their names, addresses and particulars of the same certified in writing to the undersigned on or before the 6th April A.D., 2017, and if required, prove such debts or claims, or in default be excluded from any distribution; after the above date the assets will be distributed having regard only to the proved debts or claims of which the Executors shall then have had Notice.

And Notice is hereby given that all persons indebted to the said Estate are requested to make full settlement on or before the aforementioned date.

MICHAEL A. DEAN & CO., Attorneys for the Administrator Alvernia Court, 49 A Dowdeswell Street P.O. Box N-3114 Nassau, The Bahamas Legal Notice

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Global Flex Fund Ltd pursuant to the Provisions of Section 138(8) of the International Business Companies Act 2000 notice is hereby given that the above-named Company has been dissolved and strucked off the Registrar pursuant to a certificate of Dissolution issued by the Registrar General on the 19th day of December, 2016.

(a) Saiph Fund Ltd pursuant to the Provisions of Section

ZAKRIT SERVICES LTD. LIQUIDATOR OF THE ABOVE-NAMED COMPANY

ZAKRIT SERVICES LTD. LIQUIDATOR OF THE ABOVE-NAMED COMPANY

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138(8) of the International Business Companies Act 2000 notice is hereby given that the above-named Company has been dissolved and strucked off the Registrar pursuant to a certificate of Dissolution issued by the Registrar General on the 9th day of March, 2017.

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Poly Flex Global Fund Ltd. pursuant to the Provisions of Section 138(8) of the International Business Companies Act 2000 notice is hereby given that the abovenamed Company has been dissolved and strucked off the Registrar pursuant to a certificate of Dissolution issued by the Registrar General on the 19th day of December, 2016.

The F.A.F Quark Fund Limited pursuant to the Provisions of Section 138(8) of the International Business Companies Act 2000 notice is hereby given that the abovenamed Company has been dissolved and strucked off the Registrar pursuant to a certificate of Dissolution issued by the Registrar General on the 7th day of March, 2017.

ZAKRIT SERVICES LTD. LIQUIDATOR OF THE ABOVE-NAMED COMPANY

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THE TRIBUNE core; to say this is untenable and can’t be done.

“Fundamentally, what they’re basically trying to do is nonsensical, and the solution is not to argue over the details but vote them out and then do it properly,” Dr Sands continued.

“It’s sad to reduce a discussion that is so important to these terms, but as I listen to my colleagues, this draft for consultation is absurd. How do you make a business model without information?”

All healthcare industry stakeholders have backed the concept of Universal Health Coverage (UHC), enabling the Government to at least start on common ground with them.

They have also agreed on the need to provide Bahamians with modern, affordable and accessible healthcare, and that no one should be denied access to this on the basis of income, age, gender or pre-existing conditions.

Where the Government and healthcare industry stakeholders disagree is on the method for achieving this goal, with many viewing the financing mechanism for UHC - NHI - as a politically-driven solution whose implementation is being rushed ahead of the upcoming election.

The NHI Secretariat, though, has achieved some success in encouraging pri-

vate doctors to register as NHI providers, such as Dr Brian Tynes, Dr Leo Ignacio and Dr Tyneil Cargill.

Dr Sy Pierre, the MAB’s president, previously told Tribune Business that the economics of individual doctors’ practices would largely determine who registered as NHI providers, with physicians needing extra patient volumes likely to register.

The NHI document, meanwhile, made it clear that while doctors would be paid fees for specific services initially, within three to five years the scheme wants to convert remuneration to its preferred capitation - a per annum, per patient fee.

It adds that the base capitation fee is calculated from the $60 ‘Intermediate Visit’ fee, multiplied by an average of two visits per patient per year, and a 25 per cent ‘provider ‘incentive’ - giving the grand total of $150.

When adjusted for pharmaceutical, laboratory services and diagnostic imaging services, the ‘estimated base rate’ increases to $300-$350 per patient, per year.

Adjusted for factors such as age, gender and the island on which patients are located, the rate is calculated at between $225 to $725 per patient, per year.

Compliance Officer The Compliance Officer will be responsible for providing overall support to the Head, Compliance and the Compliance Department.

Requirements • A diploma in compliance from the ICA as first option or alternatively an advanced certificate in compliance also issued by the ICA; • At least three years of experience in a related field; • High work ethics and reliability; • Attention to detail; • Ability to plan, and prioritize; • Ability to work in a team structure; • Ability to manage and oversee projects as designated by the Head, Compliance; • Ability to take initiative and propose recommendations to enhance existing or, developing new procedures; • Proficiency in Microsoft Office Suite; and • Self-motivational work attitude and absolute honesty.

Send resume to: c/o The Tribune P.O. Box N-3207 DA# 113762 Nassau, Bahamas

THE TRIBUNE

Monday, April 3, 2017, PAGE 9

BTC: Aliv taking ‘Liberty’ on name From pg B1 Caribbean, and that in May 2016 became the majority shareholder in BTC,” Aliv’s explanation continued.

“BTC alleges that Aliv’s use of Liberty Global’s intellectual property is likely to confuse the public into believing that there is a connection or an endorsement constituting false representations. BTC required that Aliv remove the name and mark of Liberty Global, and cease and desist use with any and all promotional material, within 10 business days of the date of the letter.”

Aliv makes clear it has refused to bow to such demands, even though BTC “advised that it intended to immediately move to regis-

ter Liberty Global pursuant to Chapter 322” of the Bahamas’ Trade Marks Act. Setting out its own position, the new mobile operator said: “Aliv will defend its right to use the words ‘liberty global’ for its suite of pay in advance international calling plans.”

It added that Cable Bahamas, which holds a 48.25 per cent equity stake in Aliv, and has Board and management control, had made an application on September 2, 2016, to register ‘liberty global’ and other product names as trademarks in the Bahamas.

Aliv was subsequently licensed by Cable Bahamas to use the ‘liberty global’ term as a trademark through the Master Servic-

GB provides 65% of Matthew claims From pg B1 Komolafe revealed.

“Property claims accounted for $401 million or 98.1 per cent; motor $4.2 million or 1 per cent; and marine $2.4 million or 0.6 per cent. The actual incurred losses are very much in line with estimated gross incurred losses.”

He said BIA member underwriters had received property insurance claims totalling $265 million from Grand Bahama to-date.

The balance comprised $1 million in motor vehicle claims; $674,000 in marine insurance claims; and $533,000 in engineeringrelated claims.

The insurance industry data provides further insight into just how badly Freeport and wider Grand Bahama, and their economy and society, were hit by Matthew.

It is an indication of why the private sector is still struggling to recover, with the former Memories property and most of the Grand Lucayan still closed, and around 1,100 hotel and casino workers looking for jobs.

Elsewhere, Mr Komolafe said the BIA’s general insurance underwriter members had received $120 million in total property claims on New Providence.

The remainder includes $3

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million in motor vehicle claims; $1.6 million in marine claims; and $402,000 in engineering related-claims.

Breaking down the claims experience in an interview with this newspaper, Mr Komolafe said the bulk related to property damage.

He added that, nationwide, residential properties accounted for 25.4 per cent of property claims, with the majority - 74.6 per cent or almost three-quarters - relating to more costly commercial or business properties.

Mr Komolafe said: “The BIA’s assessment showed that total property insured in New Providence was approximately $10.8 billion or 65 per cent of the total property aggregates for the Bahamas, and $4.2 billion in Grand Bahama or 25 per cent of the total.”

He added that the latest claims data was an update on the initial $176 million figure provided at last month’s Grand Bahama Business Outlook, and brought the Bahamian insurance industry into line

es Agreement between the two entities and a licensing agreement.

“In or about February 2017, Aliv began advertising its suite of prepaid international plans with the name ‘liberty global’, pursuant to which BTC now alleges unauthorised use and infringement,” Aliv’s PPM document said.

“It is Aliv’s position that the words ‘liberty’ and ‘global’ are common words in the English language, and that BTC/Liberty Global does not have monopoly rights over the said words, and that consumers in the jurisdiction are unlikely to be aware of the name ‘liberty global’ or to associate it with BTC. “Accordingly, Aliv will continue to advertise its Liberty Global Haiti plan.”

The trademark dispute indicates that BTC and Aliv will not just be battling for

market share and subscribers, with the imminent arrival of number portability - targeted for April 25 - set to further intensify competition between the two.

The ‘Liberty Global’ battle also raises the possibility that two companies, both with large Government shareholdings, will be fighting in the courts. Besides its 49 per cent equity stake in BTC, the Government also currently holds the 51.75 per cent majority in Aliv via HoldingCo - a stake that it and its advisors are seeking to sell to private investors.

Aliv, meanwhile, acknowledged that Liberty Global has “greater scale” than its parent shareholders, and could present a formidable competitive threat should it choose to “operate aggressively” in the Bahamas through BTC. “Liberty Global has management and operational

control of BTC, which is our competitor in the Bahamian islands; an operator with greater scale who could operate aggressively in this market,” Aliv told investors.

“In addition, BTC is partially owned by the Government of the Bahamas and is the incumbent fixed-line provider. This relationship may provide competitive advantages not available to us, including greater economies of scale, the ability to offer bundles of services and subsidies of the mobile business with profits generated by the fixed-line business.”

Aliv, though, will be relying on the expertise and skills of its management team, many of whom are ex-Digicel and have direct experience of going into Caribbean mobile markets as the second entrant, to counter this.

The new mobile operator invested $116 million to build-out its network infrastructure through to end2016, incurring net losses of $16.9 million for the halfyear period amid its startup period.

“During 2017 all of our energy will be focused on achieving both our financial year and calendar year targets, and driving towards 50 per cent market share within three years by widening our available market through the offer of business specific offerings (launched 22 February, 2017) and taking advantage of number portability, which will occur on 25 April, 2017,” Aliv said.

“Our primary objectives until the end of June 2017 will be customer acquisition and increasing average revenue per user (ARPU) growth, and rolling out our network to the other islands in the Bahamas.”

with its original estimates.

“There are many lessons to be learned from Hurricane Matthew,” Mr Komolafe told Tribune Business, suggesting that its impact on the two major population centres highlighted the need for a National Disaster Risk Management framework.

The BIA chairman argued that this would “enhance the resilience of the Bahamas to natural disasters”, and added: “The recent hurricanes - Joaquin and Matthew - highlighted vulnerabilities that we have been aware of as a nation, and showed how the country’s fiscal condition, economic development plans and macroeconomic indicators could be negatively impacted by natural disasters.

“While the Bahamas is regarded as the first Commonwealth Caribbean country to introduce a mandatory building code, there is a need for the ongoing review and enforcement of building codes,” Mr Komolafe continued.

“These reviews should be carried out frequently - perhaps every five years - and followed by appropriate revisions where appropriate.

We ought to also ensure that

the standards are adhered to as Hurricane Matthew exposed the structural vulnerability of some damaged buildings. Additionally, we will need to consider on a national level the building of structures in vulnerable locations in low lying areas and near the coast.”

Mr Komolafe said that based on the BIA’s own damage assessments, “special attention will need to be paid” to reinforcing the connection, and anchoring, of roofs.

“It is common knowledge that roof loss compromises the integrity of a structure during and after a storm,”he added. “It is also time to rethink our approach to town planning and infrastructure that support the delivery of amenities such as electricity, water, telecommunications....”

Mr Komolafe said the installation of underground utility cable was one possibility that should be explored, although he conceded that this may not always be possible when dealing with the need for infrastructure such as communications towers.

The BIA chairman said one of the few, if any, ‘positives’ flowing from Hur-

ricane Matthew were the $250-$300 million foreign currency inflows associated with reinsurance monies coming into the Bahamas to help payout insurance claims.

Apart from boosting the construction and retail sectors, Mr Komolafe said these inflows would also en-

hance the Bahamas’ external currency reserves.

“The importance of the insurance industry as a risk transfer mechanism is apparent based on the fact that the speed and value of insurance payments have been instrumental in the recovery process,” Mr Komolafe said.

NOTICE

NOTICE is hereby given that JACINTH HERMINA BURCH of Murphyville Rd., P.O.Box CR-56864, 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 twentyeight days from the 3rd day of April, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that VINCENT MERILIEN of #4 Gibbs Corner, 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 3rd day of April, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

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PUBLIC NOTICE INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, JORDAN TARIQ DEAN of New Providence, Bahamas intend to change my name to JORDAN TARIQ PICKSTOCK. If there are any objections to this change of name

by Deed Poll, you may write such objections to the Chief Passport Officer, P. O. Box N-742,Nassau Bahamas no later than Thirty (30)days after the date of publication of this notice.

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NOTICE is hereby given that JOSHUA AUQUEL of Balfour Ave., 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 27th day of March, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.