04052024 Business

Public pensions shake-up over $3.5bn liabilities hole

• Unfunded obligations ‘top risk’ to Gov’t finances

PENSIONS for thousands of Bahamian public sector workers are poised for a major shake-up in a bid to tackle “alarming” unfunded liabilities that could impose a $3.5bn burden on taxpayers come 2030.

Simon Wilson, the Ministry of Finance’s financial secretary, told Tribune Business last night that these pension liabilities represent “the top risk” to the stability of the Government’s finances and need to be “dealt with as soon as possible” to reduce the threat that taxpayers will increasingly be called upon to plug this multi-billion dollar hole.

• Taxpayer burden to rise 33% to $219m by 2030

• Likes of NIB, PHA, BDB to join contributory plan

He spoke ahead of today’s consultation closure on the draft Pensions Bill 2023, which will end the present ‘pay-as-you-go’ pension scheme enjoyed by the Government’s near-20,000 existing civil servants through requiring them - for the first time - to contribute to financing their retirement from their own salaries. The Ministry of Finance, explaining the background to the proposed legal reforms, revealed that financing the current system will increase the annual burden imposed on Bahamian taxpayers by 32.7 percent or $54m over the next six years as growing numbers of civil servants retire and become pensioneligible. The yearly funding

bill is forecast to grow from $165m at present to $219m by 2030.

Civil service pensions are currently 100 percent financed by taxpayers through the annual Budget, and the Ministry of Finance said: “During the past two years, the Government’s mission has been to prioritise the containment of growth in relation to pension liabilities, aimed at reducing the burden on public sector finances. Currently, the Government carries an unfunded liability of more than $2bn.

“Pension consultant, KPMG Advisory Services, conducted a pension reform feasibility study on the Government’s pension scheme in 2013 which was revised in 2022. This study estimated pension liabilities for public sector employees would accumulate to $2.2bn between 2013 and 2020, and projected an increase to $3.5bn by 2030.”

‘Mind-boggling’ timing over Gov’ts $357m GBPA claim

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

as a squeeze play or pressure tactic designed to force the GBPA’s joint owners, the Hayward and St George families, to sell to it at “a pepper corn” price so that it can then “take

GBPA ‘vehemently disputes it owes $1’ of $357m Gov’t claim

• Payment demand doubles due to extra years

• Public sector wages included in spending

• Move is another step towards arbitration

THE Grand Bahama Port Authority (GBPA) “does not accept it owes $1 to the Government out of that $357m” claim which has more than doubled after the number of years included were expanded. Freeport’s quasi-governmental authority yesterday did not respond officially to the Government’s increased payment demand, but well-placed sources speaking on condition of anonymity confirmed that the sum is “vehemently and vigorously disputed” by the GBPA and its owners, the Hayward and St George families. Tribune Business was told that the Government’s claim, which has effectively increased by 135 percent or more than $200m, has expanded in size because it now covers five years of purported expenses as compared to the initial $152m which only related to twothree years. That $152m payment demand was made on June 12, 2023, and is understood to have covered the period between July 1, 2022, and March 31, 2023. Both sums represent expenses

HOW TO INSPIRE YOUNG WOMEN ENTREPRENEURS

Every society shares a collective goal to address the plight of the marginalised. Empowering young women is more than just a commendable goal; it is an essential step towards a more equitable and prosperous society. Everything we do to boost ladies trying to positively make their mark impacts all of us.

This week’s column focuses on the need to, and the ways in which we can, support young women currently seeking to go into business. Promoting female entrepreneurs is critical because it leads to greater

economic growth as well as social progress.

When women are empowered, they become active contributors to the economy, driving growth and creating opportunities for all. Gender equality takes a strain off all contributors in the economy.

Empowered women also play a pivotal role in community and societal development. In the Bahamian context, they champion positive changes in areas such as health, education and overall societal well-being. Women’s equal participation in leadership roles is critical for achieving

gender equality and the empowerment of all women and girls. So how, then, can we inspire and promote young women to safely navigate the risk of enterprise? To truly empower young women in professional environments, a multi-pronged approach is essential. Individuals, organisations and businesses can help support young women in the following ways:

Mentorship programmes: Mentorship can be transformative. Pairing young women with seasoned professionals provides access to

Carnival promotes Bahamian to lead Half Moon Cay team

CARNIVAL Corporation has promoted long-time Bahamian team member, Ryan Knowles, to the position of island manager at its Half Moon Cay private island and cruise port destination.

The cruise line, in a statement, said Mr Knowles has been a valued team member for several years and worked in a number of positions on the island, most recently managing shore excursions for Carnival Corporation guests. Voicing his enthusiasm for the new role, Mr Knowles said: “Carnival Corporation and its cruise lines are collectively the largest employer in South Eleuthera. Between Half Moon Cay and Princess Cay, the company employs 250 Bahamians.

“That includes 100 percent of the team members at Princess Cay, from management down, and 96 percent at Half Moon Cay with all managers being Bahamians. The career opportunities at Carnival Corporation have significantly impacted myself as well as countless other Bahamians.

“This part of The Bahamas has suffered economic challenges for decades. Like everywhere else, the COVID-19 pandemic only made matters worse. It’s hard to imagine where many of our communities would be today without the employment and small business opportunities Carnival Corporation has provided,” Mr Knowles added.

Trailblazer award winner hailed by its namesake

invaluable advice, support and networking opportunities. These relationships can help them navigate workplace challenges, refine their skills and accelerate their career trajectories. There are enough successful women in business to accomplish this task quite easily.

Skills development: Continuous learning is key. This could encompass leadership training, technical skills enhancement or even soft skills such as negotiation and communication. Government and private sector programmes should be

ongoing to build capacity in young ladies interested in business ownership with corresponding grant options to follow.

• NB: Ian R Ferguson is a talent management and organisational development consultant, having completed graduate studies with regional and international universities. He has served organisations, both locally and globally, providing relevant solutions to their business growth and development issues. He may be contacted at tcconsultants@ coralwave.com

“I truly appreciate this company for believing in Bahamians and creating roles for us at all levels, from management to shore excursions, to food and beverage and beyond. We want to be a work destination of choice and attract more Bahamians to rewarding jobs where they can grow and improve, building their skill sets and ensuring a secure future for themselves and their families.”

Mr Knowles, who worked in a number of jobs in hospitality and retail before joining the cruise line, encouraged more Bahamians to consider working with Carnival Corporation. “At every level, as I grew through the company, my current leaders always made me feel that I was empowered and that my opinion mattered,” he added.

“It’s almost overwhelming that a huge global company believes in me, listens to what I have to say and respects my opinion.” Juan Fernandez, Carnival Corporation’s vice-president of operations, said: “I am so pleased that Ryan has officially been promoted to island manager of Half Moon Cay.

“He has been with us for many years and has grown through the ranks by displaying admirable dedication and professionalism. His passion and enthusiasm are contagious, and is already having an energising effect on the operation. I am so proud to see him taking this next step in his career.”

THE winner of this year’s John Lawrence Trailblazer Award has been praised for her instrumental role in developing Bahamian financial services on the global stage.

John Lawrence, the former Society of Trust and Estate Practitioners (STEP) Bahamas head, who the award is named after, hailed Ivylyn Cassar for helping to spearhead the growth of Equity Bank Bahamas and Equity Trust Bahamas into a group that now employs 60 Bahamians and operates in both the local and international markets.

“Ivylyn’s achievements have propelled the financial services influence of The Bahamas far beyond its geographical borders. Her continuous innovation and dedication to excellence have not only enriched the industry but have also inspired many to reach new heights,” Mr Lawrence said.

“I want to personally congratulate her on winning the John Lawrence Trailblazer Award. We are all proud of the continued innovation that The Bahamas demonstrates on the global stage, and Ivylyn is a key part of that innovative push as we move the financial services industry forward. Her accomplishments are many and her track record speaks for itself. “She has mentored many persons in the financial services sector in her ongoing efforts to further deepen our rich talent pool in The Bahamas, and we all look up to her as an inspiration. Please keep doing what you are doing and continue to be that trailblazer that we all admire.” Mr. Lawrence, cofounder and chief executive of Windermere Group, was recognised for his own contribution to the industry in

2002 with the renaming of the former STEP

BAHAMIAN managers, from L to R: Tavaris Bonaby, operations manager in training; Ryan Knowles, new island manager; Anya Martin, guest experience manager in training; Vanrick Wilson, engineering manager.

RYAN Knowles with Michelle McGregor, Carnival Corporation’ director of operations for The Bahamas.

RYAN with Bahamian captain Dominque Brown.

Regulators probing protected tree loss at Wynn project site

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net

REGULATORS will today visit the site of Wynn Development’s proposed 14-storey Goodman’s Bay penthouse project to investigate whether a protected tree species has mistakenly been cut down.

Danielle Hanek, acting director of the forestry unit at the Ministry of the Environment and Natural Resources, confirmed to Tribune Business it had received reports alleging that the developer has removed a protected Tamarind tree while clearing the penthouse location ahead of receiving the necessary approvals to start construction activity.

She added that the forestry unit will be conducting a site visit today to inspect the premises and meet with Wynn executives. It will liaise with the Department of Environmental Planning and Protection (DEPP) to determine if Wynn’s application for a certificate of environmental clearance (CEC) mentioned removing the tree.

Ms Hanek said: “I have gotten a report but I haven’t had a chance to do a site visit to assess it myself for the department. So that’s what we’re doing tomorrow [today]. We have to speak with DEPP to see what their CEC involves.

“And then, if it’s the case that they had a wild tamarind there, they would have needed a permit. But our records state that they don’t have a permit. So, I need to do a site assessment to determine that.” Tribune Business understands that the DEPP had given Wynn the go-ahead to clear the site and demolish any structures in preparation

for the planned penthouse construction.

However, Ms Hanek said Wynn had not secured a permit to remove the protected tree, which is a separate matter. If the developer is found to be in violation of the Forestry Act and its accompanying regulations by cutting down the tree without permission, it could face fines of up to $25,000, up to two years imprisonment or both.

She added: “If they would be in violation of that, we would then go through the necessary steps to bring it to their attention and to address the fines to the company.

“So if you look in our forestry regulations, you would see what the fines would be. So it really is up to the judge on a case-bycase basis, but it could be they could be fined up to $25,000 or they can face up to two years imprisonment, or both. But it just depends on the case and the parameters.”

Randy Hart, Wynn’s vice-president, said the developer will likely issue a statement on the matter today once the site visit and discussions with Forestry Unit and DEPP officials are completed. He

added that Wynn was also digesting and analysing the Subdivision and Development Appeal Board ruling that modified the approvals granted for the 14-storey Goodman’s Bay penthouse.

The Board, in its six-page ruling on the challenge to the Town Planning Committee’s initial approval by the project’s neighbour, Edward Hoffer, moved to clean up the process that Wynn must follow through “a slight variation” addressing stages that may have been missed out or leapfrogged.

It said it was “troubling” that an application for “preliminary support for site plan approval”, which had previously been sent back to the Town Planning Committee after both sides agreed the proper process may not have been followed, was now back before it for a second time as an appeal against “final site plan approval”.

Suggesting that incorrect language may have been employed, the Appeal Board said the leap to “final” approval was “inconsistent with the basis upon which” Wynn’s first permission was overturned

and went back before the Town Planning Committee.

To clean this up, it ruled that Wynn is granted “preliminary support for site plan approval” while also adjusting the conditions previously imposed by Town Planning. The developer must now first satisfy the Department of Environmental Planning and Protection (DEPP), obtaining its certificate of environmental clearance (CEC) and any other permits, before satisfying the Ministry of Works’ civil design unit.

Town Planning’s original decision had suggested that Wynn address the two agencies’ concerns the other

way around, placing civil design before the DEPP and environmental approvals. However, the Appeals Board is understood to have thought this made no sense, given that construction cannot begin until all environmental issues are satisfied and all necessary approvals obtained.

Once these concerns are addressed, Wynn must then seek “final site plan approval”. The Appeals Board verdict possibly adds another planning approval step to the developer’s journey, resulting in extra time and potential delay, but Mr Hoffer’s bid to halt the development - which has evolved into a campaign

featuring a website urging Bahamians to oppose itwas rejected.

Wynn’s $100m penthouse complex has already undergone a public hearing and consultation on its Environmental Impact Assessment (EIA). The proposed project is expected to create 300 construction jobs and 30 permanent jobs.

A group opposed to the project, the ‘Say No to Wynn’ campaign, is alleging that the project is an ‘overdevelopment’ of the site and raises environmental and access concerns for neighbours.

WYNN GOODMAN’S BAY PENTHOUSE

PUBLIC PENSIONS SHAKE-UP OVER $3.5BN LIABILITIES HOLE

As for annual payouts to civil service retirees, the Ministry of Finance added: “Future cash outflows are also projected to increase significantly, from approximately $165m currently to $219m by 2030 - including both pension payments and gratuities.

“In addition, Government-owned corporations have similar defined benefit pensions with annual cash outflows of approximately $10m. Given these alarming statistics, measures must taken to provide a sustainable solution to bring about reforms to the public sector pensions plan.”

Pension payments for the current 2023-2024 fiscal year were estimated at $134.744m, with gratuities adding a further $33.776m, to bring the total taxpayerfunded outlay to $168.52m. The latter figure is forecast to steadily increase to $173.44m in 2024-2025, and then to $175.413m the following fiscal year.

The Bill, if enacted as is, will create a contributory pension scheme called the Public Service Contributory Pensions Fund. Its members will include all new civil service hires after it is passed by Parliament, and becomes law, once they have completed their six-month probation, while all existing public officials who have held pensionable positions for less than eight years will also be transferred to the contributory plan.

Civil servants in pensionable positions for more than eight years can voluntarily choose whether to join the contributory scheme or retain their current arrangements. The mandatory contribution rate has

been set at 3 percent of a plan member’s monthly salary, with the Government making a matching 3 percent payment. Workers can also choose, on their own accord, to raise the contribution rate for their portion to a maximum 10 percent although this will not be matched by the Government. The Public Service Contributory Pensions Fund will be overseen by a Board, which will appoint an independent investment manager, fund administrator and custodian to manage and safeguard pension plan assets.

Membership in the Public Service Contributory Pensions Fund will not be confined just to central government civil servants. For new and newer employees at state-owned enterprises (SOEs), and what are described as ‘Approved Authorities’ in the Bill, will also participate in the scheme if the legislation is passed as currently laid out, which means thousands will be impacted.

Those who join these ‘Authorities’ after the Bill is passed into law, and becomes an Act, or who have been employed for less than eight years will automatically join the contributory plan. Again, those who have been employed for more than eight years can elect to participate voluntarily, with the ‘Authorities’ involved including the likes of the Central Bank, Bahamasair and the Public Hospitals Authority (PHA). The list of ‘Approved Authorities’ features the National Insurance Board (NIB); University of The Bahamas; Bahamas Agricultural and Industrial Corporation (BAIC); Hotel Corporation of The

Bahamas; Water and Sewerage Corporation; Bahamas Development Bank; Bahamasair Holdings; the Royal Bahamas Defence Force; Bahamas Maritime Authority; and the Public Hospitals Authority (PHA).

Others named in the Bill include the Hospitals and Health Care Facilities Licensing Board; National Museum of The Bahamas; the Airport Authority; National Art Gallery of The Bahamas; Nassau Airport Development Company (NAD); Bahamas Mortgage Corporation; Insurance Commission of The Bahamas; Utilities Regulation and Competition Authority (URCA); Sports Authority and National Training Agency.

Rounding out the list are the Bahamas Public Parks and Beaches Authority the National Health Insurance (NHI) Authority; Bahamas Agricultural Health and Food Safety Authority; Aircraft Accident Investigation Authority; National Crime Intelligence Agency; Civil Aviation Authority; and Bahamas Air Navigation Services Authority.

The two major entities missing from this list are the Bahamas Telecommunications Company (BTC) and Bahamas Power & Light (BPL). BTC’s pension plan underwent a similar restructuring to a contributory scheme when it was privatised in 2011, but it is unclear why the BPL plan with its $120m deficit, as revealed by Jobeth Coleby-Davis, minister of transport and energy, was not included.

Mr Wilson last night told Tribune Business that the proposed reforms are “very important to stabilise our public finances, very important” given that in six years’

time they could potentially represent a further $3.5bn in unfunded liabilities in addition to the present $11.5bn national debt. “This is probably the top risk to our public finances, pensions,” he reiterated. “The greatest risk is pensions, and the state pension deficit. It has to be dealt with as soon as possible.”

The “risk”, which is akin to a ticking fiscal, economic and social timebomb, has been known for more than a decade given that KPMG’s first study was conducted in 2013, but successive administrations elected to pass on dealing with it.

Mr Wilson said he had yet to see written feedback on the Bill with consultation set to close today, but added: “I can tell you feedback from the SOEs and so forth has been very positive. We have wide gaps in our financial coverage in the public sector. This is an important step forward.”

Kimsley Ferguson, the Bahamas Public Services Union’s (BPSU) president, told Tribune Business he was preparing for a memorial service last night and wanted to review the legislation before commenting. However, one source familiar with the public service but speaking on condition of anonymity, warned the Government may face protests from existing civil servants over being transferred to the new scheme.

“It’ll be very interesting to see how that plays out with the unions and hundreds of existing civil servants,” they said. “I’d be surprised if the union head agrees with that. That is where the problems are going to be with those in the non-contributory pension. They’re going to scream and howl.

“A lot of them are tapped out with salaries now as they’ve maximised deductions and the like. For a lot of them, that 3 percent is going to be a chunk of what they take home now. I don’t think what they’re [the Government] doing is necessarily a bad approach as you want to populate it [the new scheme] with a cadre of people.”

Still, the source said there remain a number of unanswered questions in relation to the reforms. “What will be the impact of making the change?” they asked. “How is what you are doing going to mitigate against these entitlements? How will the taxpayer liabilities be reduced down? How is what you’re doing going to fix the underlying problem?

“We need something that speaks to the financial implications of that decision, and why it makes sense over other options. Will employees be just as well off at the end of the day?” On the latter point, Mr Wilson replied: “They might be better off actually. The current scheme is not portable. This is portable.” Asked how much in savings will be generated for Bahamian taxpayers via the proposed pension reforms, Mr Wilson replied: “We haven’t sorted out the figure. We will make sure we get the legal framework approved, move forward and get some actuarial work done.” As for when the Bill may go before Cabinet, and then proceed to Parliament, the financial secretary said he has “no control” over that process.

The Ministry of Finance, in explaining the rationale for the reforms, said the draft Bill had been approved for consultation release following talks with public

proposed legislation seeks to transform from a non-funded, non-contributory pension scheme, to a funded and contributory pension plan for public servants,” it said.

“The objective of the proposed pension legislation is to provide for the establishment of a public service pension fund and a public service pension scheme. It aims to promote employee inclusivity, fiscal responsibility, accountability and efficiency in the management of the public sector finances through the implementation of a defined contributions pension scheme.

“The Pension Bill also seeks to provide for the governance, functions, organisation and management of the fund, to provide for the collection of contributions to the fund and payment of retirement benefits to pensioners and their survivors,” the Ministry of Finance added.

“The Pension Bill further seeks to provide for the investment of the monies of the fund and for related matters. In the current pension arrangement, under the Pensions Act, a number of challenges are presented relating to its exclusivity of certain categories of employees, and the unsustainable pension liabilities, owing to its non-contributory character by public servants....

“Given the extensive revisions required to address these concerns, it was agreed that it would be best to repeal the current Pensions Act and draft new pensions legislation that is in alignment with modern public service pension laws, and would improve the effectiveness of the Government’s fiscal policy outcomes.”

‘Mind-boggling’ timing over Gov’ts $357m GBPA claim

control” of the city and all future investment activity.

Agreeing that the GBPA “is not perfect”, he nevertheless argued that increased investment and economic activity would generate more revenues that Freeport’s quasi-governmental authority can use to promote and develop the city.

Disclosing that he is “waiting for the next volley of missiles from Nassau trying to destroy Freeport and decimate its middle class”, Mr Antoni, who has figured prominently in efforts to form a Licensee Association amid the Government’s battle with the GBPA, said of the demand letter: “The timing is so bad that it appears the Prime Minister and his administration do not want to see Freeport succeed.

“He can ask whatever he wants of the GBPA but the truth of the matter is it’s going to end up in arbitration. I do know the GBOA has formidable attorneys [Fred Smith KC and Robert Adams KC] representing them, so this could go on for three to five years. In the meantime, what’s going to happen to Freeport?”

Both the Government and GBPA have recently touted Grand Bahama’s $2bn investment pipeline, featuring Carnival’s $600m Celebration Key private cruise port and the Grand Bahama Shipyard’s acquisition of two new dry docks for the same sum. However, while such projects are now ‘baked in’ and unlikely to be deterred, the outbreak of renewed hostilities between the GBPA and government may unsettle others.

Uncertainties over Freeport’s future governance may drive potential investors to look elsewhere, and Mr Antoni added: “Things are picking up here, and all we need is government to play its part in facilitating the approval of investments and the approval of investors, and not throw darts at the Port Authority and, of course, Freeport.

“It’s mind-boggling from Freeporters’ point of view. It doesn’t send a good message to investors looking at Freeport and a lot of people are. The whole thing is political; it’s all politics honestly.”

Prime Minister Philip Davis KC and his administration, though, believe change is required in Freeport and at the GBPA because the latter has failed to live up to its development and other obligations.

However, Mr Antoni revealed that, in meeting with the Prime Minister’s wife when she recently visited Freeport, he had advised her that if Mr Davis “wants to extend his legacy do something immediately with the airport and the hotel, and accommodate that investors looking at Freeport”.

Suggesting that his advice had not been taken, Mr Antoni said the $357m demand letter was simply another step in an arbitration process that the Government intends to use to force out the Hayward and St George families and take control itself. “I think it’s a combination of both things,” he added. “They want to see if they can buy out the families at a pepper corn price, and the second thing is they want to take control of Freeport and future investments. They want their boys to take charge.”

While many in Freeport agree that change is needed, they do not want to see the Government take control and replace the GBPA. Mr Antoni said east and west Grand Bahama were clear examples of why the Government should not run Freeport, and added: “The Port Authority is not perfect, and has limited funds, but if we get more investment coming in here and more licensees there will

be more money to improve infrastructure....

“The increase in taxes... the new boat registration fees, the NIB contribution rate increase coming up, it’s killing the middle class. We have no middle class here. They cant keep up with inflation.”

Meanwhile, James Carey, the Grand Bahama Chamber of Commerce’s president, told Tribune Business that “the timing couldn’t be worse” in relation to the Government’s demand letter given that optimism surrounding Freeport’s economic prospects has become more upbeat in recent months due to the investment projects moving ahead.

“Will it put a damper on them? I certainly hope not. It cannot be positive or conducive to development,” he added. “It will be a stop and look again on behalf of potential investors. Keep in mind the Port Authority opened an office in Nassau to encourage investment coming out of Nassau business houses. It’s just not very positive when these things happen.

“You just don’t know what will happen because you don’t know if the Port Authority legitimately owes the Government $357m. If they do, and the Port Authority has to fork out over $300m, what does the Port Authority have left?

I don’t know what their reserves are but what will they have left to promote and develop the city of Freeport?

“Is this part of the design that the Government intimated last year that they want new investors in place? Is this part of the plan? I don’t know. If I were a potential investor in Freeport I certainly wouldn’t look favourably at Freeport until this matter is resolved.”

Mr Carey said the dispute between the Government and the GBPA had gone quiet in recent months, although Freeport’s private sector and licensees knew it had not gone away. While some had dared to start hoping it may be resolved quietly, the latest eruption “doesn’t bode well in terms of what we’re trying to accomplish in Freeport and Grand Bahama at the moment”.

Questioning whether arbitration is necessary, the Chamber president contrasted Freeport’s predicament with Jamaica, where he said central government, local municipalities and the private sector were working together to make infrastructure and other projects happen rather than “working against each other as appears to be the case in Freeport”.

NOTICE

NOTICE is hereby given that AUREL AUGUSTIN of East Street, Nassau, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 5th day of April 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that LORIUS LYSIAS of P.O Box N-7060 #8 Arundel Street, Nassau, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 5th day of April 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

Security concerns drive FINCO’s $500 ATM limit

the changes were intended “to ensure your banking experience is not only convenient but also secure”. If clients need to access more than the $500 ATM daily limit, they will now have to physically visit a branch and conduct an over-thecounter withdrawal.

“At RBC FINCO, we are continually evolving to ensure your banking experience is not only convenient but also secure.

As part of these ongoing efforts, we have decided to adjust our daily ATM withdrawal limits,” FINCO’s managing director, Deverson Warner, told clients.

“Effective Tuesday, April 2, 2024, the new daily withdrawal limit will be set at

$500. This adjustment is a proactive step towards enhancing the security measures that safeguard your accounts and personal information.

“While we understand this may mean a change to your banking routine, we want to assure you that this decision was made with careful consideration to ensure that your funds remain safe and protected,” the letter added. “If you require a daily withdrawal amount exceeding the $500 limit, we encourage you to come visit any of our branches to conduct an over-thecounter withdrawal transaction. Please note that RBC FINCO savings account holders will now

enjoy four free ATM withdrawals per month.”

Mr Warner also advised clients to “actively monitor accounts for any suspicious activity” and to be wary of sharing PIN (personal identification number) or password information with third parties.

“As part of taking care of your financial well-being, we encourage all clients to actively monitor their accounts for any suspicious activity. Please remember that you should never share your PIN with a third party,” he added. “RBC FINCO will never reach out to you asking you to provide us with your PIN or password. If you notice any transactions that seem unfamiliar, or if you suspect any fraudulent activity, please contact

for the lenient sentence sought by both Mr Lewis’ attorneys and US prosecutors. Judge Clarke added that the billionaire’s age, and health, meant his life

us immediately at 242 356 8500. If you have any questions or concerns regarding the new daily withdrawal limit, please contact your relationship manager.”

The changes come just as FINCO has released its 2023 annual report ahead of its upcoming shareholders’ meeting. Chris Ronald, the mortgage lender’s chairman, said its shrinking loan portfolio was showing signs of “stabilising” but admitted there was more work to do in reversing this trend. “This past year also saw a 2.2 percent decrease in our loans and advances to customers, amounting to $608.8m,” he wrote. “This reduction is primarily attributed to challenges faced in credit origination and the write-off of nonperforming loans. However,

would be at serious risk if he were jailed. US federal prosecutors, in their earlier sentencing submissions, agreed that imposing an 18-24 month jail term as suggested by sentencing guidelines “would be greater than

we are pleased to re- port that our strategic efforts to address this decline have made a positive impact.

“A key focus has been to empower our relationship managers to actively build their portfolios through targeted acquisition activities with developers and realtors. Additionally, we have hosted client advice events and leveraged our network of contacts to generate new business opportunities. “As a result of these initiatives, the declining trend in our loan portfolio has shown signs of stabilisation.

While there is still work to be done, we are optimistic about the progress made thus far and remain committed to further strengthening our loan portfolio in financial year 2024.” However, FINCO still performed

necessary” given Mr Lewis’ health challenges and that he should receive a lighter punishment.

“Joseph Lewis committed grave, serial breaches of the duties he owed publicly traded companies to keep information confidential,” the US attorney’s office for southern New York said.

“As a billionaire investor, Lewis had privileged access to non-public, market-moving information by virtue of his large investments in certain companies.

“But while he was obligated to keep that information secret, and not trade on it, he did the opposite. On at least four separate occasions he tipped his girlfriend, personal pilots, employees, and friends with closely guarded, valuable information entrusted to him, intending that those individuals would trade securities he recommended.

“With the benefit of Lewis’s recommendations, those individuals profited. This insider trading was not the result of aberrant, one-time conduct, but rather a troubling pattern of misconduct over the course of several years. In the process, Lewis’s conduct undermined the integrity of the securities markets from which he has so handsomely profited for decades.”

The US prosecutors continued: “Unlike many defendants who commit insider trading, Lewis’s conduct was not motivated by personal profit - he did not personally trade based on inside information, and did not make any money. Lewis describes his insider trading in his letter to the Court as motivated by “hubris and childish exuberance’.

“Whether his criminal conduct was motivated by hubris, ego, a desire to make a financial gift without parting with his own money, an irrational form of greed or some other reason, it is clear that Lewis believed he was above the law—that he had achieved a level of wealth and stature that relieved him from having to operate by the same rules that apply to everyday investors.”

well enough to declare dividends equivalent to $1.50 per share for the financial year to end-October.

“Notwithstanding the growth and non-performing loans challenges, the bank continues to maintain a strong capital position well above regulatory guidelines and adequate provisions for any potential negative impact from non-performing loans. We remain profitable, and there are no liquidity issues,” Mr Ronald added. “The Board reviews the payment of dividends every quarter and will continue to carefully monitor the economy, the mortgage portfolio and overall performance to ensure prudent management of RBC FINCO’s financial performance.”

Mr Lewis, in an earlier letter to Judge Clarke, wrote: “I am ashamed and deeply aware that I allowed my hubris and childish exuberance to impede my judgment. Realising my actions have violated the law and harmed those I love fills me with profound shame and embarrassment.”

Offering the court “and all those I have hurt” his apologies, Mr Lewis added:

“I offer no justifications for my actions nor excuses for my behaviour. I hope my decision to immediately and voluntarily travel to the US upon learning of my indictment, and my desire to plead guilty, demonstrate my willingness to accept responsibility and acknowledge my predicament is entirely my fault..... “I have always believed I could make a difference. I wanted to find cures for diseases and genuinely help people. The proudest and most exciting event in my professional life was when a company that I had nurtured for many years discovered life-saving treatments for colon and rectal cancer. “But I now recognise the irony of how my misguided actions undermined the laws of this nation and the very aims I pursued. It is a devastating and selfinflicted humiliation I will have to live with for the rest of my days.”

Mr Lewis will be barred from re-entering the US once his sentence is completed. His attorneys, pointing out that the losses and sums involved at $550,000 were relatively minimal when compared to the typical millions of dollars involved in insider trading cases, said: “It is also worth noting that Mr Lewis’ offences did not involve trading in any of the stocks at issue or for his own direct personal enrichment. “This is not the case of a defendant who became rich through his offence conduct. To the contrary, Mr Lewis’ offence conduct took place in his 80s when he had ample legitimate wealth to confer legitimate benefits on people in his circle. As such, his offence conduct was senseless and deeply regrettable.”

However, they ultimately conceded: “Lewis is elderly and battles significant health issues, many of which would make a term of imprisonment more difficult than it would be for a differently situated defendant. Those health conditions, coupled with the facts that Lewis demonstrated acceptance of responsibility by traveling to the US to voluntarily surrender (instead of engaging in a protracted extradition battle), promptly accepted responsibility through a guilty plea, and has otherwise lived a law-abiding life, weigh in favour of leniency. “Accordingly, the Government agrees with the defendant and the Probation Office that a downward variance, in some form, is appropriate.” Mr Lewis’ attorneys had already pointed out that the billionaire and his investment vehicle, Broad Bay Ltd, are set to pay $50m in “fines and forfeiture” as a result of the guilty plea. They reiterated that this is “many times” the estimated losses of around $500,000.

Mr Lewis, who started out in east London’s restaurant industry, moved to The Bahamas in 1979 and is said to have made his fortune from currency trading and speculation. According to the Sunday Times’ 2023 ‘rich list’, he has a net worth of some £5.096bn, while his Tavistock Group spans 200 companies and 8,400 employees in 13 countries. He previously owned New Providence Development Company, before exiting the investment and handing the company over to his former business partner, New Orleans-based Terry White, to focus on