04292021 BUSINESS

business@tribunemedia.net

THURSDAY, APRIL 29, 2021

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Supply cut-off threat on $4.5m Water Corp debt

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

HOUSANDS of Family Island residents face having their water supply cut-off on Monday unless the Water & Sewerage Corporation settles an allegedly outstanding $4.5m debt.

Aqua Design Bahamas, the owner/operator of reverse osmosis plants that supply potable water to the state-owned utility in South Eleuthera, San Salvador and Inagua, yesterday argued it had been “left with no feasible choice but to cease operations” while acknowledging all three communities will be put “at risk”.

Directing blame at the Water & Sewerage Corporation, the company said it will “decommission” its plants and remove all equipment that it owns - a move that will effectively make it impossible for the utility or any other private provider to take over water production at such

• Three Family Islands ‘at risk’ of water loss Monday • Plant operator argues ‘left with no feasible choice’ • Will ‘decommission’ and leave with all equipment

ADRIAN GIBSON

DESMOND BANNISTER

short notice.

Apart from $3.8m in past due debts, Aqua Design argued it had also been forced into its position by the Water & Sewerage Corporation “showing no interest” in renewing the contracts to operate the three plants which have now expired.

Responding to Tribune Business inquiries, the reverse osmosis plant operator said: “On May 3, 2021, Aqua Design Bahamas

will be left with no feasible choice but to cease operations of its drinking water plants in the communities of South Eleuthera, San Salvador and Inagua.

“It is unfortunate that Water & Sewerage Corporation has chosen to allow the contracts that are necessary to operate these plants expire, placing the people of these communities at risk of losing access to its water supply.”

Seeking to pin the

GB airport take-off targeted for June 1

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE government will take full control of Grand Bahama International Airport’s operations by June 1 following today’s handover of the facility’s ownership by Freeport Harbour Company.

Algernon Cargill, pictured, director of aviation, yesterday told Tribune Business there will be a 30-day “transition” period before the state-owned Airport Authority assumes full responsibility for dayto-day management at the

island’s premier aviation gateway.

“The contract is being signed, and the government will actually take control of the airport 30 days thereafter by June 1,” he explained. “The transition

SEE PAGE 7

Concerns despite Royal Caribbean’s $1bn boost pledge

By LEANDRA ROLLE Tribune Staff Reporter lrolle@tribunemedia.net

BAHAMIANS last night raised concerns over Royal Caribbean’s proposed Paradise Island beach club despite cruise line executives pledging it will inject $100m annually into the economy in its first decade.

James Boink, president of private destinations for Royal Caribbean Cruises, told a virtual Department of Physical Planning meeting that the multi-million dollar Royal Beach Club, once completed, will provide a major boost to the

economy’s post-COVID revival by generating $1bn in spending over a ten-year period.

He added that the project will create an estimated 250 jobs for Bahamians, 100 of which will come from the construction industry.

“Our project will contribute over $1bn in just the first ten years,” Mr Boink said. “Our project will also drive demand for Nassau, and this will result in an increase of 1.2 million additional guests every single year to Nassau over the

SEE PAGE 6

blame on the corporation, it added: “It’s important to understand that Aqua Design has done everything in our power to avoid this action. We have for more than 15 years been a loyal partner and supplier of water to Water & Sewerage Corporation for the people of The Bahamas. However, recent actions by Water & Sewerage Corporation have left us no alternative.

“Our position is as follows. Aqua Design has met all contractual obligations to supply the quality and quantity of desalinated water required at all the plants, and has made repeated efforts to resolve this matter. Our contracts to operate drinking water plants in these communities have expired and, despite several renewal options presented by Aqua

SEE PAGE 5

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Top banker loses dispute linked to soccer bribe chief

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A SENIOR Bahamian banker’s claim for wrongful/unfair dismissal over his dealings with a key figure in world soccer’s recent bribery scandal was this week rejected by the Supreme Court.

Justice Keith Thompson, in an April 26, 2021, verdict, found that Paul Major’s actions could potentially have cost BISX-listed CIBC FirstCaribbean International Bank (Bahamas) its banking licence after they were detailed in a US federal government indictment against that country’s top soccer executive.

He upheld the bank’s decision to dismiss Mr Major, then its head of international banking, for breaching its strict policies on dealing with US clients when he collected a $250,000 cheque from Charles “Chuck” Blazer, former general-secretary of soccer’s governing body for North and Central America, and the Caribbean, at New

York’s JFK airport in late April/early May 2011.

Describing Mr Major’s behaviour as “evasive”, both when cross-examined at trial and earlier by CIBC FirstCaribbean investigators, Justice Thompson said “the critical display of dishonesty came” when the banker sought to argue that his employer’s policy on US clients - which prohibited collecting cheques on US soil - did not exist in 2011 when there was abundant evidence it had been in force from 2005.

“The possible consequences or fall-out of the actions of the plaintiff [Mr Major], in my opinion, had the potential of the defendant losing its banking licence altogether, thereby being prevented from carrying on the very purpose of its existence,” the judge ruled.

The verdict revealed that Blazer, who pled guilty in a US court to receiving more than $2m in bribes as part of the corruption scandal that engulfed soccer’s world governing body, FIFA, had

SEE PAGE 6

THE TRIBUNE

Thursday, April 29, 2021, PAGE 3

GOVT TEAMS WITH UOB FOR BETTER FORECASTING

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE government yesterday moved to boost The Bahamas’ own economic forecasting capabilities by enlisting the University of The Bahamas (UoB) help to create “data-driven” growth models.

Kwasi Thompson, minister of state for finance, said the two sides’ agreement will see the university’s government and Public Policy Institute (GPPI) produce fiscal and gross domestic product (GDP) growth forecasts to underpin the economy’s sustainable recovery from the twin crises of Hurricane Dorian and COVID-19.

He added that this will reduce The Bahamas’ reliance on external forecasts produced by multinational agencies such as the International Monetary Fund (IMF), and instead incorporate on-the-ground local expertise in charting a road map for the country’s postpandemic revival.

“Today, we celebrate the launch of the Bahamas Recovery and Sustainable

KWASI SMITH

DR RODNEY SMITH

Growth project, which will harness the talent, expertise and resources of our very own academia to support and strengthen the government’s economic recovery plan,” Mr Thompson said of the Ministry of Finance’s agreement with the university.

“In working with the University of The Bahamas, this administration is further cementing the government’s move to a more scientific and data-driven approach to public policy.

Under the project, UoB will research and determine optimal growth levels to support the government’s plan to set the country on a more sustainable

macroeconomic path.

“It will expand and enhance the government’s current economic modelling, and platforms and protocol, by allowing for more suffocated analysis using a wider range of input and variables.”

Mr Thompson acknowledged The Bahamas’ challenges in generating significant GDP growth since the 2008-2009 financial crisis and worldwide recession, which has resulted in the economy expanding too slowly to create sufficient jobs for a rapidly growing population.

Pointing out that, prior to Hurricane Dorian, The Bahamas was in 2019

The rules designers should never violate WITH graphic design becoming increasingly more accessible as a career, breaking the rules could be viewed by some as forwardthinking. Nonetheless, most newcomers to the profession are unaware of certain rules, especially the ones that are important and should never be broken.

By not following these rules, the end result can be visually jarring, resulting in your target audience losing trust in your ability or competence.

To assist with creating more successful designs, I have created a list of commonly-broken graphic design rules. Let’s dive in.

Design with consistency Consistency is graphic design rule number one. Maintaining consistency across all design elements and materials allows your target audience to clearly recognise that the brochure or flyer is an extension of the same brand seen on your website. Be consistent with the following: • Colour palette: Use no more than five colours

The Art of Graphix

BY DEIDRE M BASTIAN

(including shades) in your branding (limiting it to two or three is probably best) • Typography/web fonts: Try not to use more than three fonts, or stick to one font family. Use similar elements throughout, and ensure all marketing material looks the same. You want all your branded materials to look like they belong to a series.

Avoid poor legibility Legibility is of utmost

importance when choosing fonts, and this applies to both web and print design.

No one wants to be annoyed by difficult text. Legibility can also be improved by adding an overlay of contrasting colour, or white against black (and vice versa), which always equates to better legibility.

Avoid colour discord Colour is a powerful tool, so ensure you choose colours that complement each other to avoid creating colour discord. The lighton-dark scheme helps to alleviate vibration or colour discord.

Prevent non-proportional scaling of graphics and text Bad design always catches the eye and distracts the reader from a message. Be sure to maintain the same proportions while scaling. To put it simply, never stretch images as it looks unprofessional. Small images, especially, do not scale well.

Stay away from rasterbased images Oftentimes, newcomers

SEE PAGE 4

forecast to enjoy its first year of two percent-plus GDP growth in 12 years, he added: “This administration is focused on combating the challenge of producing growth at sufficient levels to address the full gamut of national development priorities, including fiscal responsibility targets relating to revenue, expenditure and debt.”

Drawing on data supplied by the government, the UoB team will develop models and forecasts to predict The Bahamas’ short, medium and long-term growth. This, in turn, will result in it developing recommendations to address The Bahamas’ deteriorating fiscal and economic trends.

“In the past, The Bahamas has largely relied on multinational economic modelling,” Mr Thompson added. “The models to be developed by GPPI will be specific to The Bahamas, and based on our unique economic background and expertise.

“These improvements can promote better prioritisation of limited resources and more relevant

and attainable growth results..... The work of GPPI will bring about findings that can turn our economy around.”

Dr Rodney Smith, UoB’s president, said the agreement aims to produce a study that will “determine the level of growth, on a sustained basis, that our country must achieve in order to emerge out of - and move beyond - its present economic and fiscal dilemma.....

“The Ministry of Finance desires to determine the level of growth the country needs to achieve to reverse the current economic and fiscal trends toward a more sustainable financial future.”

Dr Smith, disclosing that the study will be conducted over the next 90 days, said the UoB team will feature Professor Olivia Saunders, professor of banking, finance and economics; ex-Cabinet minister and MP, Zhivargo Laing, who is executive director of UoB’s government and public policy institute; Professor Tri Lam; and Dr Jorge Baca-Campodonico,

Peru’s former finance minister.

Pointing out that improved forecasting will enable The Bahamas to better influence and plan for adverse future events, Dr Smith said: “This important study is an effort to understand better the economic and fiscal future of our nation.”

“In fact, by mathematically and statistically examining the impact of various policy measures on an academically rigorous model of our economy, we may be able to choose the best policies to positively impact our economic future. We can better predict the effect of those policies on important social outcomes like employment, poverty, savings, investing and the like.

“Additionally, we can better target resources to economic sectors that can produce the greatest outputs. This is the nature of the study being undertaken, and its lasting impact will be a model available for use in the future by personnel from across the government for future planning.”

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PAGE 4, Thursday, April 29, 2021

THE TRIBUNE

Scotiabank gives digital banking help for seniors SCOTIABANK Bahamas yesterday unveiled initiatives it says will help senior citizens become more comfortable with using digital and online banking services.

The bank, in a statement, said it had launched a new information hub at bs.scotiabank.com/digitalseniors from April 1.

This features a series of video-based content and guides designed for seniors.

Other initiatives planned include one-on-one tutorials in-branch about the use of Scotiabank automated banking machines (ABMs), plus the bank’s online banking platform and mobile app.

“Across the board, our aim is to make our electronic channels more

DIGITAL senior banking with Scotiabank. accessible for everyone.

However, we are very keen on reaching our customers who are members of the seniors’ community. It is important to us that our customers, including seniors, know they have options for safe banking from the safety and convenience of their homes,” said Na-amah Barker, Scotiabank’s retail

banking director.

Digital banking representatives have also been assigned to conduct training with seniors when they visit Scotiabank branches.

Ms Barker said the bank is prioritising the use of its digital channels as The Bahamas continues to grapple with the impact of COVID-19.

The move also supports Scotiabank’s longterm transformation of its operations, which includes the expansion of its ‘smart’ ABM network that was announced two weeks ago.

“We want our branches to become hubs of financial empowerment, where we can spend more time with our customers to discuss their financial well-being and to educate them on the many products we have that can meet their needs,” Ms Barker added.

Scotiabank said increasing the use of digital banking channels will reduce the number of times customers need to visit to a branch for routine transactions.

BTC slashes pre-paid mobile plans up to 35% THE Bahamas Telecommunications Company (BTC) yesterday said it has revamped its pre-paid mobile plans to improve subscriber value amid the ongoing COVID-19 pandemic.

Andre Foster, BTC’s chief executive, said: “We’re optimistic about our current outlook and the progress made in the last several months, but the reality remains that many persons are in need and still require relief. We’ve responded to this by reducing the cost of our 10-day combo plan by 20 percent and our 30-day combo by 35 percent, providing significant savings to our customers.

“In addition, we’ve

ANDRE FOSTER supersized these plans with more data and unlimited minutes to allow them to do more of what they love, while on the go. Earlier this

year, we also introduced prepaid plans starting from a low as $1 and $3. These single day plans deliver 30 minutes or 90 minutes of

talk-time respectively, plus free What’s App chat for three days.

“Our customer service teams have been actively working with our customers to ensure they stay connected with BTC, and we have been offering special payment options and practical solutions to meet their needs.”

BTC’s VAT inclusive “10day combo plan”, which was previously priced at $25, is now $20. The carrier said it includes unlimited minutes to call any network, plus the US and Canada.

It added that the “30-day combo plan” has been cut from $60 to $39, with the same unlimited minutes to call any network plus the US and Canada.

The rules designers should never violate FROM PAGE THREE will use raster-based images in their design. Whenever they enlarge or reduce the size of a raster-based graphic, it results in the image becoming pixelated.

Fortunately, Adobe Illustrator is a vector-based application, so any icons created in Illustrator will not become pixelated when resizing. Particularly avoid raster-based images like the plague.

Maintain alignment Put the thought in first, or you will end up with a design that distracts your audience with its bizarre text arrangement.

Choose three fonts I really want to emphasise this one because it is violated so often. No matter what you are designing, limit yourself to no more than three fonts and make sure your fonts are appropriate for your industry.

Establish a visual hierarchy Establish some type of visual hierarchy to emphasise one item over another, and draw the viewer’s eye to a certain item above others. Weighting different elements by importance, and using colour and size to either draw the eye or let the eye wander, is important. Without clear visual hierarchy a viewer will be unable to determine the order in which the information needs to be read.

Grammar, spelling and punctuation The truth is that you can

really hurt your relationship with a potential client if your marketing materials are riddled with errors.

A few typos every now and then are no big deal, but it can cause a problem before it even begins. Always take a little extra time to proofread and never be afraid to ask for help.

Embrace white space This is one of those graphic design rules that can make the viewer disoriented. White space is the negative space of your page that has nothing on it, which can add to a greater sense of professionalism and also allow the viewer a moment of eye rest.

Now that you understand a few basics of graphic design, the rules are yours to break or follow. Have fun. Until we meet again, fill your life with memories rather than regrets. Enjoy life and stay on top of your game.

NB: Columnist welcomes feedback at deedee21bastian@gmail.com ABOUT COLUMNIST: Deidre M. Bastian is a professionally-trained Graphic Designer/Brand Marketing Analyst, Author and Certified Life Coach with qualifications of B.Sc. and M.Sc. She has trained at institutions such as: Miami Lakes Technical Centre, Success Training College, College of The Bahamas, Nova Southeastern University, Learning Tree International, Langevine International and Synergy Bahamas.

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THE TRIBUNE

Supply cut-off threat on $4.5m Water Corp debt FROM PAGE ONE Design, Water & Sewerage Corporation has declined to renew.”

Turning to its second grievance, Aqua Design then detailed the past due sums owed to it for water supplied to the Water & Sewerage Corporation together with another $740,000 bill that is coming due for payment on May 8, 2021. It also implied that the state-owned utility has no back-up plan for resuming, or taking over, water supply to those three areas if it makes good on its threat to pull out.

“The Water & Sewerage Corporation has been delinquent in paying for water production for several years, consistently owing millions of dollars over this time period,” Aqua Design said. “Across all of the islands where Aqua Design operates, the past due amount currently totals nearly $3.8m, with an additional $740,000 coming due on May 8, 2021.

“All plants and materials at Aqua Design facilities are the property of Aqua Design, and will be decommissioned, as is our contractual and legal right, on May 3 if this issue is not resolved. The Water & Sewerage Corporation does not own any of the equipment at these plants.

“We are not aware of any plans by the corporation to provide water to these communities following the decommissioning of our plants on May 3. We ask the people of the Bahamas to inquire as to the Water & Sewerage Corporation’s plans for water production at South Eleuthera, San Salvador and Inagua,” it continued.

“If, indeed, they do not have an alternate plan, they should be urged to renew our contracts and fulfill their contractual obligations by coming current on all past due balances and remaining current on payments so as not to jeopardise the lives and livelihoods of the people that live in these communities.”

Neither Adrian Gibson, the Water & Sewerage Corporation’s executive chairman, nor Desmond Bannister, deputy prime minister, and who has ministerial responsibility for the water utility, responded to multiple Tribune Business calls and e-mails seeking comment on the situation before press time last night.

The government, though, is likely to react furiously to Aqua Design’s stance. It will probably view it as akin to trying to extort payment by holding hundreds of families and Water & Sewerage customers hostage at the worst possible time - the middle of the COVID-19 pandemic - through threatening to cut-off water

production despite the allegedly outstanding bills owed to it.

Mr Bannister adopted such a position last year when a similar dispute erupted between Aqua Design and the Water & Sewerage Corporation, which resulted in the former cutting off water production and supply to residents and businesses in Central Eleuthera over a payment dispute.

The deputy prime minister slammed Aqua Design Bahamas for “the nastiest, most callous conduct I’ve ever seen” in deciding to cease water production, as he branded the reverse osmosis plant operator “greedy” for making tens of millions of dollars off the Bahamian people” through “one-sided” contracts that were signed off by former administrations.

In effect, the relationship between the Government and Water & Sewerage Corporation on one side, and Aqua Design - a subsidiary of SUEZ – Water Technologies & Solutions on the other - had completely broken down when that incident occurred in October 2020, and has likely been unsalvageable ever since.

Mr Gibson has also made no secret of his belief that many Family Island reverse osmosis plant operators have enjoyed financially advantageous deals, and that the Water & Sewerage Corporation’s customers and taxpayers will be better served if the state-owned utility takes over these facilities when the existing supply contracts expire.

Such deals, which saw the Water & Sewerage Corporation outsource water production to private operators on multiple islands, typically give multiple options when they expire. The parties can renew, or the operator sells the plant at its equipment to the Water & Sewerage Corporation at an agreed price, with a third option being that it simply takes its equipment with it.

Aqua Design’s statement indicates discussions on a transition to Water & Sewerage Corporation control or a new supplier have yet to even begin, and that it will exercise the third option - to take all its equipment with it - within days unless the government bows to its demands.

While some observers will likely view the plant operator’s actions as the equivalent of using Bahamians as “bargaining chips” or “pawns” as part of hardball negotiating tactics, others will question why the Water & Sewerage Corporation simply does not pay its bills when they become due.

However, given that the Water & Sewerage Corporation sells water to consumers at a price below

the cost of production, it has always required taxpayer support to cover its bills - and that was before Hurricane Dorian and the COVID-19 pandemic, which have merely increased the strain on the Public Treasury to prop it up.

Mr Gibson revealed last year that the Corporation faced a “roughly $9m shortfall” in residential customer payments as a result of being directed to cease all disconnection activity since late March 2020 due to the COVID-19 pandemic.

It was also dealing with a $30.8m “backlog” on payments due to vendors at end-August 2020, a sum that continues to grow, and a $15m-plus year-over-year decline in revenue for the year to-date.

Senator Clay Sweeting, the Progressive Liberal Party’s (PLP) central and south Eleuthera candidate for the upcoming general election, told Tribune Business that residents in the constituency were “frustrated and outraged” over the government and corporation’s failure to address their concerns after Aqua Design made public its cutoff threat.

“Water is critical to the survival of central and South Eleuthera, especially now with the pandemic, and nationwide. We’ve been plagued with this virus for more than a year,” Mr Sweeting said. “Now here we are, a few months later, and the government has to show more than lip service.

They’ve failed on so many fronts in development of the Family Islands, and now can’t even provide potable water.

“I’ve had numerous calls today, and my constituents are shocked and outraged that they’ve not heard one word from the government, one word from the corporation. This country is run like a circus. It’s high time the government shows

they really care about how they develop the Family Islands. The people of South Eleuthera don’t know if they will have water on Monday. This is not how to run a country.”

The Water & Sewerage Corporation’s two trade unions yesterday indicated they were both aware of the Aqua Design situation, and argued that the state-owned utility simply lacks the manpower and expertise to operate the three reverse osmosis plants themselves.

Dwayne Woods, the Bahamas Utilities Services & Allied Workers Union (BUSAWU) president, told Tribune Business:

Thursday, April 29, 2021, PAGE 5 “I’m aware they’re [Aqua Design] disappointed the corporation would allow the contracts to run out like that given that water is a public necessity....

“I know one thing: We don’t have persons trained enough to run those plants.

What I will say to you is it’s impossible for the Water & Sewerage Corporation to take them over because we don’t have the trained personnel to run them.

“I have a grave concern for the people of Inagua and Eleuthera. I have a grave concern because the health and wealth of the nation depends on water.

My advice to the public would be to prepare either way. But the failure to produce and distribute water to them will not be on the workers; it will sit squarely on the leadership of the corporation,” Mr Woods continued.

“It will be no fault of ours that water is not produced and delivered to them.

Don’t blame the workers.

It has to be the leadership of the corporation that is

responsible for whatever is coming.”

Ednol Rolle, of the Water & Sewerage Management Union (WSMU), said Aqua Design had been “at odds” with Mr Gibson and the corporation for some time.

“It’s unfortunate, but I hope the customer does not come out badly because of it,” he added.

“If these people don’t receive a contract renewal, we should at least have some plan in place but I am not aware of any. I think he’s [Mr Gibson] taken the position regarding all the reverse osmosis plants that as their contracts come up for renewal they will take them over.”

Mr Rolle said the transition to Water & Sewerage Corporation control would be easier at plants where its staff have some involvement, and added: “We’ve talked about setting up a reverse osmosis division but no one’s in it, so this is going to be interesting and intriguing. How do you run something if no one is there? We will see.”

PAGE 6, Thursday, April 29, 2021

Top banker loses dispute linked to soccer bribe chief FROM PAGE ONE been a CIBC FirstCaribbean International Bank (Bahamas) client since 2002.

Mr Major, who enjoyed a 23-year career with the bank prior to his dismissal, was Blazer’s relationship manager from that time and “handled small matter and large matters” for the American soccer executive.

However, prior to his New York trip to meet Mr Blazer and pick-up the fatal cheque, Justice Thompson said the evidence showed Mr Major was aware of an increasing number of media reports making allegations of corruption/bribery against his client and other members of the region’s governing soccer body. At one point he e-mailed Blazer suggesting he “stay out of the news”.

The New York rendezvous was detailed in the US government’s indictment against Blazer, the contents of which were reported by Tribune Business at the time. It described how a Bahamas banker from FirstCaribbean made a round-trip to New York to collect a $250,000 cheque from Blazer, which was part of a $10m bribe to influence voting on which nation would stage the 2010 soccer World Cup. The banker then flew back to the Bahamas on May 3, 2011, and deposited the $250,000 into Blazer’s CIBC FirstCaribbean bank account in Nassau, which had been undeclared to the US tax authorities until the Federal Bureau of Investigation (FBI) began its FIFA bribery probe.

Concerns despite Royal Caribbean’s $1bn boost pledge

FROM PAGE ONE

period to 2030, where we will stabilise around 2.5m guests.

“Not only will we bring more guests to Nassau but we will also have our guests spend more time on shore.

This is critical for the downtown Nassau area, and we will also have our guests enjoy Royal Beach Club for approximately four to five hours. “… We will employ locally, buy locally and partner locally. We project and estimate 250 new jobs. One hundred of these jobs will occur during construction, and we will use a Bahamian contractor for our project, much as we have for the Coco [Cay] project as well.

“We anticipate that when we open in 2023 that we will have 150 positions, and it is our commitment that within five years all of these positions will be filled by Bahamians.”

The planning meeting was called as part of Royal Caribbean’s formal bid to obtain site plan approval for the project from the Town Planning Committee. However, the cruise line’s presentation generated questions and concerns from attendees, who called for more details on the project.

Chief among those concerns was whether Royal Caribbean has been granted a crown land lease by the government for acreage on western Paradise Island in the Colonial Beach area.

THE TRIBUNE Mr Major, in his evidence, asserted: “When I collected the cheque from Blazer in May 2011 I had no knowledge at all of his criminal conduct. I had no reason to suspect that the cheque was anything other than what he said it was, that is, fees/ commissions.”

Giving further details, he asserted: “I cannot recall the exact date, but on one of the days between April 27, 2011, and May 2, 2011, while on vacation in New York I received a telephone call from Blazer. He asked me where I was, and I told him I was in New York and departing on Monday, May 2.

“Blazer told me that he had a cheque to deposit to his current account. He told me that the cheque was from CONCACAF (soccer’s governing body for the Caribbean, including The Bahamas) and that it represented fees/commissions owed to him. He asked if I could stop by his office to collect the cheque and to take it for deposit to the current account.”

Mr Major said Blazer also voiced concern about the mortgage that was secured on a condo he owned at Atlantis’s Reef

development, asserting that the condos were overvalued and that the cheque proceeds would be used to start paying off the loan.

The banker confirmed he endorsed the cheque and then deposited it to Blazer’s CIBC FirstCaribbean bank account on May 3, 2011. He later admitted, under questioning from CIBC FirstCaribbean investigators, that Blazer used to send his girlfriend and others to visit the bank’s Shirley Street branch and deposit funds to the account.

Blazer, as part of his subsequent guilty plea, agreed to forfeit 50 per cent of the $1m he had stashed away at CIBC FirstCaribbean International Bank (Bahamas), admitting his “wilfull failure” to report its existence to the US Treasury Department and Internal Revenue Service (IRS) for income tax purposes.

Meanwhile, the Blazer indictment and the reference to the Bahamian CIBC banker, triggered alarm bells at the bank which engaged the international law firm, Mayer Brown, to initiate an investigation. The bank was especially concerned that its policies prohibiting dealing

with US clients on American soil had been breached.

Bahamas-based financial institutions have to be ultra careful in dealing with US clients given the global reach of that country’s tax and legal system, and the extreme consequences they could suffer if they fall afoul of it - especially given their reliance on continuing access to the US financial system for clearing transactions.

Melissa Francis, one of the Mayer Brown investigators, provided testimony on their interview of Mr Major that Justice Thompson said was “critical” to the outcome of the case. When Mr Major was handed a copy of the indictment, she said there was “an extensive pause.....

He then, unprompted, said: ‘Hmmmm.... wow’, and he appeared visibly worried and shaken.”

When asked if he was the person referred to, Mr Major replied: “I’ll have to look at my records.”

Under further questioning, he admitted: “I suppose it’s possible it was me” and gave further vague answers when asked whether he frequently met Blazer in New York.

As the interview neared the end, Mr Major told the

investigators: “This one I’m going to need some time on.” And his parting shot to them was: “You really know how to shake a person.”

Marie Rodland-Allen, the bank’s now former managing director, said the investigation’s outcome made clear that Mr Major had to be dismissed because his conduct in breaching the strict rules on dealings with US clients showed he posed “a real danger” and “a real risk”.

Mr Major, though, did not take his dismissal well. The minutes of that meeting, included in the court’s judgment, state: “Paul stood up slowly, took one to two steps and then collapsed on the floor in front of Marie Rodland-Allen’s closed office door and proceeded to cry.

“Antoinette Turnquest told him that while we understood this was hard, it was the bank’s decision which is final. She also explained to him that at that moment no one outside of the office wold be aware of what transpired, and he was asked to try and compose himself so as not to alert anyone to what had occurred prior to him being allowed to leave the premises.”

The issue was raised by Bahamian entrepreneur Toby Smith, who is currently embroiled in ongoing court battle with the government over a crown land lease agreement that covers several acres also sought by Royal Caribbean for its development in the Colonial Beach area.

Royal Caribbean has steadily amassed around 13.5 acres on Paradise Island’s western end by buying out private landowners in the area, but it is also seeking to lease some ten acres of crown land to complete its development.

This has brought it into potential conflict with Mr Smith, who is seeking himself to lease two crown land parcels at Paradise Island’s western end, one of which involves two acres around the lighthouse and another three acres for the “beach break” element of his own $2m project.

Mr Smith’s court action is alleging that he was granted a valid crown land lease over both parcels, including the lighthouse and the area at Colonial Beach for his “beach break” destination, which is now legally binding.

A January 7, 2020, letter from Richard Hardy, acting director of Lands and Surveys, was headlined “approval for crown land lease” over the two tracts.

Mr Smith previously told this newspaper he returned the lease, bearing his signature and other formalities, to the government on January 9, 2020.

However, the government has to-date failed to apply its signature and execute the lease, with officials telling the entrepreneur that the document is now “not worth the paper it is written on”. And Mr Smith previously voiced fears his project was being “marginalised” and treated like “a second

class citizen” to make way for Royal Caribbean’s rival beach break destination.

Asked last night if the cruise line has an executed crown land lease to facilitate its proposed project, Mr Broink replied: “All of our terms had been agreed upon with the government and we are pending signature upon final execution of the contract.”

Environmentalists also voiced concerns that the private land sought and acquired

by Royal Caribbean for the Royal Beach Club is presently zoned for residential property, and is said to have “low density”, which would mean the area need to be rezoned for commercial use under planning laws.

Asked if the proposed development complies with Bahamian laws as it relates to zoning, a cruise company executive replied: “Our project has been filed with Town Planning and you are correct that this is

residential property and this is part of the approval that we seek for our project.”

Royal Caribbean was also questioned about its sewerage and waste management protocols. Tim Blankenship, a member of its design team, responded: “Our plan to handle solid waste is to work with a local vendor to make use of existing recycling and solid waste management that’s available in Nassau currently. “ .. There will be a commercial barge operated by local vendors that will address the solid waste.”

“Relative to sewerage collection and treatment, Lambert Knowles indicated that there will be a sewage treatment package plan on island that will operate and collect the sewerage from the guests and the staff that’s on the island, and currently the design team is evaluating the potential use for reclaimed water for use in irrigation of certain areas of landscaping of the project.”

THE TRIBUNE

Thursday, April 29, 2021, PAGE 7

GB airport take-off targeted for June 1 FROM PAGE ONE period is 30 days. The ownership changes tomorrow [today], but the agreement calls for a 30-day transition period from the current owner, the Freeport Harbour Company, which is part of the Hutchison Whampoa group.”

Today’s signing brings long-running negotiations between the government and Freeport Harbour Company’s owners to an end, and represents the first sign - albeit modest - of tangible progress in reviving Freeport’s devastated economy in the aftermath of Hurricane Dorian and the COVID-19 pandemic.

While the government is only paying $1 to acquire Freeport Harbour Company’s subsidiary, Grand Bahama Airport Company, some observers have voiced misgivings about the deal’s structure. Mr Cargill previously confirmed to this newspaper that the airport’s 50/50 owners, Hutchison Whampoa and the Grand Bahama Port Authority (GBPA), will retain all the Dorian insurance proceeds.

This means a multi-million dollar claims payout, which some have said was as high as $25m, will not be injected into the airport’s rebuilding, which leaves the government and a proposed private operating partner to raise the $50m$60m required to finance post-Dorian restoration.

While many have hailed

the purchase as vital to Freeport and Grand Bahama’s “economic survival”, others feel Hutchison Whampoa and the GBPA had effectively been allowed to abandon their developmental obligations to Freeport under the Hawksbill Creek Agreement.

And the government (Bahamian taxpayer) is to “reimburse” Hutchison Whampoa for half the costs it incurs in paying due severance and other benefits to the airport’s 60-70 staff, who will leave its employment and be transferred to the state-owned Airport Authority.

Mr Cargill, meanwhile, disclosed that the bidding documents seeking private sector operators/managers for Grand Bahama International Airport and a series of Family Island airports have been consolidated into one mammoth Request for Proposal (RFP) rather than being split into separate tenders for each facility.

Confirming that the government had been advised to do this by its newly-hired consultants, LeighFisher, the aviation chief added that the bidding process launch was now some “60 to 90 days out”. He confirmed that bidders could seek to operate all the airports involved, some or just one.

“We wanted to issue one document rather than several,” Mr Cargill added, confirming that airports in Abaco, Exuma,

Great Harbour Cay, North Eleuthera, Long Island and San Salvador - as well as Grand Bahama International Airport will be included in the tender.

“It’s a huge project that LeighFisher is guiding us through,” he continued.

“It all depends on the response, so we can have Freeport with the others or have several operators.

What LeighFisher has recommended is a marketleading RFP, where the market dictates what offers come in as opposed to the government dictating.

“We’ve already had five to six unsolicited offers ahead of the RFP, but we have told everyone we will not entertain any questions until the RFP process is complete because we want to be fully transparent in that process.

“There’s a lot of people showing interest, and wanting to negotiate directly, but we said ‘no’, we will go through the RFP process. We want to ensure the process includes all voices, and the proposals will all be reviewed in the same manner using a disciplined and scientific process to find the right partner.”

Mr Cargill also disclosed that the construction ground-breaking for Exuma’s $65m airport revamp is due to take place next week Friday, with the prime minister scheduled to be in attendance.

While declining to name the winning contractor, he said work is due to take between 18-24 months.

“Great Harbour Cay is 75 percent to 80 percent complete, and that’s a brand new airport,” the aviation director told Tribune Business. “We go out to tender next week on the Long Island airport.

That airport is finally at the tender stage. We’re going to rebuild the Treasure Cay airport, that’s in the final stages of development, and North Eleuthera depends on the land transaction being completed.”

The latter $65m upgrade has run into opposition from nearby commonage land owners, whose holdings are required to facilitate that expansion.

The government is set “to pursue very soon” the

compulsory land acquisitions needed in North Eleuthera and elsewhere for its Family Island airport transformation.

Mr Cargill confirmed that discussions are ongoing with local investment bank, RF Holdings, which has been contracted to raise $140m in private capital to fund the airport redevelopments and supplement existing financing from the Inter-American Development Bank (IDB).

The structure and timing of the fund-raising is still being assessed.

“The airports are the first and last port of entries for persons arriving by air, so it’s important to leave a favourable impression

with amenities that tourists want,” Mr Cargill said.

“What we have in most Family Island airports falls far short of expectations.

“This will be a large jump in the tourism experience, and we expect it to have a positive effect on earnings.

In Grand Bahama, the airport is the third part of the puzzle. The government completed the purchase of the Grand Lucayan, is set to sell it to Royal Caribbean and Holistica, and now this. We have the air and sea, and now we have this. These things are being developed in tandem in order that we can revive Grand Bahama’s economy.”

PAGE 8, Thursday, April 29, 2021

THE TRIBUNE

Stock indexes slip after Federal Reserve leaves rates alone Associated Press A CHOPPY day of trading on Wall Street ended with stocks modestly lower yesterday after the Federal Reserve said it is leaving its key interest rate unchanged near zero, while noting recent improvement in the economy.

The S&P 500 slipped 0.1% after wavering between small gains and losses. Gains in communication services, energy and financial companies outweighed declines in technology and health care stocks. Bond yields also fell broadly, pulling back after an early rally.

In its latest policy update, the central bank left its benchmark short-term rate near zero, where it’s been since the pandemic erupted nearly a year ago, to help

keep loan rates down to encourage borrowing and spending. It also said that it would keep buying $120bn in bonds each month to try to keep longer-term borrowing rates low.

“With no meaningful change to monetary policy or communication, this meeting was simply a message to market participants to sit back and observe as the economic recovery continues to unfold,” said Charlie Ripley, senior investment strategist for Allianz Investment Management.

Stocks initially got a bump following the 2pm Eastern release of the Fed’s statement, but shed those gains by the end of the day.

The S&P 500 dropped 3.54 points to 4,183.18. The benchmark index hit an all-time high on Monday.

The Dow Jones Industrial Average lost 164.55 points, or 0.5%, to 33,820.38. The tech-heavy Nasdaq gave up 39.19 points, or 0.3%, to 14,051.03.

NOTICE IN THE ESTATE OF MAGNOLIA OPHELIA SMITH late of Big Pond in the Southern District of the Island of New Providence, one of the Islands of the Commonwealthof 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 the particulars of their debts or claims duly certified in writing to the undersigned on or before the 31st May, A. D. 2021, after which date the Administrator will proceed to distribute the assets having regard only to the proved debts or claims of which notice have been given.

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

EDWARD B. TURNER & CO. #24 Leonie Place Flax Terrace off Malcolm Road Nassau, Bahamas Attorneys for the Administrator of the Estate of the late Magnolia Ophelia Smith

Smaller company stocks fared better than the bigger companies. The Russell 2000 index rose 2.89 points, or 0.1%, to 2,304.16.

Wall Street has been mostly grinding higher in recent weeks, pushing stock indexes to record highs, as the rollout of COVID-19 vaccinations, the massive support from the US government and the Fed, and a string of encouraging economic data fuel expectations for a stronger economy and solid corporate profit growth this year.

The expectations for a strong rebound, and rising prices for oil, lumber and other commodities, have also spurred concerns over inflation and the prospects for higher interest rates.

Those worries have helped fuel a rapid rise in bond yields from where they were at the start of the year.

In its remarks, the Fed noted that the economy and job market have “strengthened”.

And, while it acknowledged that inflation has risen, the central bank said it sees the increase as transitory. Fed officials have said they want to see inflation exceed

OUTSIDE the New York Stock Exchange in New York. Stocks were off to a mixed start on Wall Street, yesterday as investors take in a big wave of earnings reports from major US companies. their 2% annual inflation target before they’d consider raising rates.

The yield on the ten-year Treasury, which influences interest rates on mortgages and other consumer loans, eased following the Fed’s statement, slipping to 1.61% from 1.62% late Tuesday.

The market welcomed the Fed’s decision to maintain its support for the economy and keep rates low, said Sylvia Jablonski, chief investment officer at Defiance ETFs. “We don’t expect a rate hike until 2023,” Jablonski said. “This, I believe, is almost no news is good news for the market. Any rhetoric to act more quickly would have been an issue.”

Investors also focused yesterday on corporate earnings, with dozens of companies reporting their quarterly results.

Google’s parent company, Alphabet, rose 3% after it said its profits doubled from a year earlier, helped by a surge of digital advertising revenue as more Americans shopped online during the pandemic. Visa rose 1.5% after reporting solid financial results.

Google’s solid gains helped send communications stocks higher. Oil prices rose and boosted energy company stocks.

Those gains were offset by a downturn in technology and health care companies.

Investors punished several other companies that came up short with their most recent financial results.

Boeing slipped 2.9%, while Spotify sank 12.3% after the music streaming company announced that subscriber growth had slowed more than expected.

Biotechnology company Amgen was among the biggest losers. It fell 7.2% after its first-quarter profits and revenue fell short of analysts’ forecasts.

Facebook rose 5.5% in after-hours trading following the release of its latest earnings after the closing bell. Apple added 3.3% in extended trading after the company’s profit soared in its latest quarter on higher iPhone sales.

Wall Street also will be tuning into President Joe Biden’s speech to a joint session of Congress last evening. Biden is expected to lay out several parts of his agenda such as increased infrastructure spending, likely higher taxes on the wealthy and higher funding for government programmes. The $1.8tn programme will also create universal access to pre-kindergarten schooling as well as provide support for child care programmes.

THE TRIBUNE

Thursday, April 29, 2021, PAGE 9

Senate votes to reinstate methane rules loosened by Trump WASHINGTON Associated Press CONGRESSIONAL Democrats are moving to reinstate regulations designed to limit potent greenhouse gas emissions from oil and gas fields, as part of a broader effort by the Biden administration to tackle climate change.

The Senate approved a resolution yesterday that would undo an environmental rollback by President Donald Trump that relaxed requirements of a 2016 Obama administration rule targeting methane emissions from oil and gas drilling.

The resolution was approved, 52-42. Three Republican senators — Susan Collins of Maine, Lindsey Graham of South Carolina and Rob Portman of Ohio — joined Democrats to approve the measure, which only needed a needed a simple majority under Senate rules.

The legislation now goes to the Democratic-controlled House, where it is expected to win approval.

The Environmental Protection Agency approved the looser methane rule last year. The agency’s former administrator, Andrew Wheeler, declared the change would “strengthen and promote American energy’’ while saving companies tens of millions of dollars a year in compliance requirements.

Democrats and environmentalists called it one of the Trump administration’s most egregious actions to deregulate US businesses.

Methane is a potent greenhouse gas that contributes to global warming, packing a stronger punch in the short term than even carbon dioxide.

Preventing methane leaks at oil and gas sites “is a huge part of how we prevent a 1.5 degree (Celsius) rise in global temperatures’’, a key aim of the climate movement, said Sen Martin Heinrich, D-NM. Heinrich, a member of the Senate Energy and Natural Resources Committee, cosponsored the resolution under the Congressional Review Act, which allows Congress to overturn certain regulations that have been in place for a short time. The Trump rule was finalised last September.

Heinrich called the resolution “a no-brainer”, saying that preventing leaks of methane — a type of natural gas — will save companies money, put people to work

and help prevent global warming.

“I’m surprised and a little disappointed this is not broadly bipartisan,’’ Heinrich said, noting that many energy companies, including Shell Oil Co, Occidental Petroleum and Cheniere Energy Inc, support reinstatement of the Obama-era rule.

“It’s sort of inertia and dogma at this point” by Republicans to oppose the methane rule, he said in an interview.

Collins, who joined with Democrats to block a GOPled effort to overturn a similar Obama-era methane rule in 2017, said the move to undo the Trump-era rule would “protect public health and the environment by restoring the tougher standards at EPA that significantly decreased methane emissions”.

Graham, who also voted with Democrats in 2017, called methane leaks “unnecessary emissions’’, adding that if energy companies “can do something about it, they’ll need to do it’’.

Sen. Shelley Moore Capito, R-WVa, said Democrats appear intent on demonising natural gas even though increased natural gas production — spurred by the fracking boom — “actually helped lead to significant reductions in greenhouse gas emissions’’ over the past decade.

Capito, the top Republican on the Senate Environment and Public Works Committee, said President Joe Biden “managed to kill thousands of jobs and paralyse America’s energy industry with executive orders” soon after taking office, including withdrawal of a permit for the Keystone XL oil pipeline.

Another order, freezing new oil and gas leases on federal lands and waters, “is an economic, energy and national security disaster rolled into one,’’ she said.

The order “moves America from energy independence back to relying on foreign adversaries for energy — countries that have much laxer environmental standards,’’ Capito said. She called the leasing pause part of a looming war against natural gas, a fossil fuel that contributes to global warming, although at a lower rate than coal or oil.

“The forces against natural gas are growing,’’ she said, adding that many Democrats and environmentalists also oppose coal “or any other energy source

that’s not blessed by the Green New Deal.’’

Democrats disputed that notion. The Green New Deal — a sweeping but nonbinding proposal to shift the US economy away from fossil fuels such as oil and coal and replace them with renewable sources such as wind and solar power — has not been approved in either the House or the Senate.

David Doniger, a climate and clean-energy expert at the Natural Resources Defense Council, said natural gas has “significant leakage” at every stage in the production process, from drilling to movement through pipelines.

Doniger called the Trump administration’s rollback “a free pass for America’s oil and gas companies to keep leaking’’, adding, “If you are looking for fast relief from the worst effects of global warming, then methane control is high on your list.’’

Repealing the Trump rule not only is beneficial in itself, Doniger said, but it also will send a strong signal that “America is back on course” in the fight against climate change, “and this Congress wants to get action done on climate’’.

Heinrich and other Democrats said the methane vote is the first of many steps Congress will take to address climate change.

“Under this Democratic majority, the Senate will be a place where we take decisive, ambitious and effective action against climate change,’’ said Senate Majority Leader Chuck Schumer, D-NY. The US needs to “build credibility on the world stage” on climate change following “four years of inaction and hostility to climate policy” under Trump, Heinrich said.

“It’s a great opportunity to build momentum” as Congress considers Biden’s $2.3tn infrastructure plan, he said. The plan includes spending for 500,000 charging stations for electric vehicles; significant expansion of solar and wind power; and development of technology to capture and store carbon pollution from coal-fired power plants.

Congressional approval of the methane rule will help Biden at a UN conference on climate change, scheduled for November in Scotland, Democrats said.

The votes would tell other countries that, “we’re not just rejoining (the Paris climate accord) but we will lead the world on climate,’’ Heinrich said.

KPMG PO Box N-123 KPMG Montague Sterling Centre 13 East Bay Street PO Box N-123 Nassau, Bahamas

Montague Sterling Centre 13 East Bay StreetREPORT INDEPENDENT AUDITORS’ Nassau, Bahamas To the Shareholders of CBH Bahamas Ltd. Report on the Audit of the Consolidated Financial Statements Opinion

INDEPENDENT AUDITORS’ REPORT

We have audited the consolidated financial statements of CBH Bahamas Ltd. its wholly owned To the of CBH Bahamas Ltd.of financial position subsidiaries (together, “theShareholders Group”), which comprise the consolidated statement as at December 31, 2020, the consolidated statements of comprehensive income, changes in equity onthen theended, Audit of the Consolidated Statements and cash flowsReport for the year and notes, comprising significant Financial accounting policies and other explanatory information.

In our opinion,Opinion the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2020, and its consolidated financial performance andthe its consolidated cash flows for the statements year then ended We have audited consolidated financial ofinCBH accordance with International Financial Reporting Standards (“IFRSs”).

Bah subsidiaries (together, “the Group”), which comprise the consolidated s Basis for Opinion as at December 31, 2020, the consolidated statements of comprehensiv We conducted our audit in accordance with International Standards on Auditing (“ISAs”). Our flows for the year thenin ended, andResponsibilities notes, comprising signifi responsibilitiesand undercash those standards are further described the Auditors’ for the Audit of the Consolidated Financial Statements section of our report. We are independent of the other explanatory information.

Group in accordance with the International Ethics Standards Board for Accountants International Code of EthicsInforour Professional Accountants (including International Independence Standards) opinion, the accompanying consolidated financial statements p (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with the IESBA respects, the consolidated financial position of the Group as at D Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a consolidated financial performance and its consolidated cash flows basis for our opinion.

International FinancialforReporting Standards Responsibilitiesaccordance of Managementwith and Those Charged with Governance the Consolidated Financial Statements

(“IFRSs”)

Basis for Opinion Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS,our and audit for suchin internal control as management determines is Standards We conducted accordance with International necessary to enable the preparation of consolidated financial statements that are free from material responsibilities misstatement, whether due to fraud orunder error. those standards are further described in the Aud Audit of thefinancial Consolidated In preparing the consolidated statements, Financial management isStatements responsible forsection assessingof theour report Group’s abilityGroup to continue a going concern, disclosing, as applicable, matters related to going Board f in asaccordance with the International Ethics Standards concern and using the going concern basis of accounting unless management either intends to Code Ethics fororProfessional Accountants (including Internation liquidate the Group or toof cease operations, has no realistic alternative but to do so.

(IESBA Code), and we have fulfilled our other ethical in Those charged with governance are responsible for overseeing the Group’s financial responsibilities reporting process.

Code. We believe that the audit evidence we have obtained is sufficien basis for our opinion.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives Responsibilities are to obtain reasonableof assurance about whether theThose consolidated financialwith statements Management and Charged Governance fo as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ Statements KPMG, a Bahamian partnership and a member firm of the KPMG global organization of independent Phone: +1 242 393 2007 report that includes our opinion. Reasonable assurance is a high levelFax:of assurance, but is not a member firms affiliated with KPMG International Limited, a private English company limited by guarantee. +1 242 393 1772 Internet:awww.kpmg.com.bs guarantee that an audit conducted inisaccordance with ISAs always detect material Management responsible forwillthe preparation andmisstatement fair presentation when it exists. Misstatements can arise from fraud or error and are considered material if, individually statements in accordance with IFRS, and for such internal or in the aggregate, they could reasonably be expected to influence the economic decisions of users control a taken on the basis of these consolidated financial statements. necessary to enable the preparation of consolidated financial statemen As part of an misstatement, audit in accordancewhether with ISAs,due we exercise professional to fraud or error.judgment and maintain professional skepticism throughout the audit. We also: •

•

In preparing the consolidated financial statements, management is r

Identify and assess the risks of material misstatement of the consolidated financial statements, Group’s ability to continue a going concern, whether due to fraud or error, design and performasaudit procedures responsivedisclosing, to those risks, as applica and obtainconcern audit evidence is sufficient appropriate to provide a basis our opinion. unless m andthatusing the and going concern basis of for accounting The risk of not detecting a material misstatement resulting from fraud is higher than for one liquidate the Group or to cease operations, or has no resulting from error, as fraud may involve collusion, forgery, intentional realistic omissions, alternativ misrepresentations, or the override of internal control.

Those charged with governance are responsible for overseeing the Obtain anprocess. understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

•

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

•

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audita Bahamian evidencepartnership obtained, whether a firm material uncertainty exists related to events KPMG, and a member of the KPMG global organization of independent member affiliated with KPMG International a private English limited guarantee. or conditions that mayfirms cast significant doubt on theLimited, Group’s ability to company continue as by a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.

•

Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

•

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

April 28, 2021

CBH BAHAMAS LTD.

Consolidated Statement of Financial Position

KPMG, a Bahamian partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

December 31, 2020, with corresponding figures for 2019 (Expressed in Swiss Francs)

Assets Cash Due from banks Financial investments Derivatives Due from customers Prepaid expenses and other assets Property and equipment Intangible assets Total Assets

CHF

CHF

Page 2

2020

2019

33,566 180,363,208 132,101,781 1,811,290 94,650,909 385,873 549,376 37,950 409,933,953

34,023 221,819,929 19,334,867 534,817 170,841,483 430,357 596,494 ‒ 413,591,970

335,054,231 12,874,820 1,748,091 3,539,477 1,500,000 354,716,619

324,932,149 22,503,663 504,772 3,852,808 1,500,000 353,293,392

30,000,000 25,217,334 55,217,334

30,000,000 30,298,578 60,298,578

409,933,953

413,591,970

Liabilities and Equity Liabilities Due to customers Due to banks Derivatives Accounts payable and accrued liabilities Provision for contingent liability Total liabilities

CHF

Equity Share capital: Authorized, issued and fully paid 300,000 shares of CHF 100 each (2019 – 300,000 shares of CHF 100 each Retained earnings Total equity Commitments and contingencies Total Liabilities and Equity

CHF

See accompanying notes to consolidated financial statements.

These consolidated financial statements were approved on behalf of the Board of Directors on April 27, 2021 by the following:

CBH BAHAMAS LTD.

Notes to Consolidated Financial Statements

3

Year ended December 31, 2020 (Expressed in thousands of Swiss Francs)

1. General information CBH Bahamas Ltd. (“the Bank”), formerly CBH (Bahamas) Ltd., was incorporated under the laws of the Commonwealth of The Bahamas on December 19, 1994. The Bank is licensed under The Bahamas Banks and Trust Companies Regulations Act and holds a public banking license to provide a full range of banking, trust and corporate management services. On October 29, 2009 the name of the Bank was changed from Banque SCS Alliance (Nassau) Ltd. to CBH (Bahamas) Ltd. to align with its parent’s name change.

The Bank is a wholly-owned subsidiary of CBH Compagnie Bancaire Helvétique S.A., Geneva, Switzerland (“the Parent”). The Bank has four wholly-owned subsidiaries, Remus Investments Ltd., Romulus Investments Ltd., Castor Management Ltd. and Pollux Corporate Services Ltd. (collectively described as nominee companies), all of which were incorporated and licensed under the laws of the Commonwealth of The Bahamas. The subsidiaries act as nominee companies for the Bank and its clients and carry on no other trust business. The consolidated financial statements include the accounts of the Bank and its wholly owned subsidiaries (together, “the Group”).

The registered office of the Bank is located at CBH House, East Bay Street, P.O. Box N-1724, Nassau, Bahamas.

The accompanying consolidated statement of financial position is an extract from the Bank’s consolidated financial statements. The auditors’ report included herewith should be read in conjunction with the full set of consolidated financial statements, which can be obtained at, or requested in writing from, the Bank’s registered office, CBH House, East Bay Street, Nassau, Bahamas.

PAGE 10, Thursday, April 29, 2021

THE TRIBUNE

THE TRIBUNE

Thursday, April 29, 2021, PAGE 11

Fed keeps key rate near zero, sees inflation as “transitory” prices to offset increased wages and supply costs.

This can set off a wageprice spiral, something the United States last experienced in the late 1960s

WASHINGTON Associated Press THE US economy is quickly strengthening, inflation is showing signs of picking up and the nation is making progress toward defeating the viral pandemic.

But yesterday, Chair Jerome Powell, pictured, made clear that the Federal Reserve isn’t even close to beginning a pullback in its ultra-low interest rate policies.

In a statement after its latest policy meeting, the Fed said it would keep its benchmark short-term rate near zero, where it’s been pinned since the pandemic erupted nearly a year ago.

The goal is to help keep loan rates down, for individuals and businesses, to encourage borrowing and spending. The Fed also said it would keep buying $120bn in bonds each month to try to keep longerterm borrowing rates low, too.

At a news conference, Powell stressed that the Fed would need to see more evidence of sustained and substantial improvements in the job market and the overall economy before it would consider reducing its bond purchases. In the past, Powell has said that the Fed’s eventual pullback in its economic support would start with a reduction in its bond buying and only after that in a potential rate hike.

“We’re just going to need to see more data,” Powell said. “It’s not more complicated than that.”

Paul Ashworth, an economist at Capital Economics, noted that “although it took a more upbeat tone on the economic outlook and acknowledged that inflation has risen, the Fed offered no hints that it was considering slowing the pace of its asset purchases, let alone thinking about raising interest rates.”

Powell did highlight the economy’s improvement in recent months but said much more progress was necessary.

“Since the beginning of the year, indicators of economic activity and employment have strengthened,” the chairman said.

“Household spending on goods has risen robustly.”

He also highlighted the striking progress the nation has made against the pandemic — a key point given that the chairman has often said that the economic recovery depends on the virus being brought under control.

“Continued vaccinations,” Powell said, “should allow for a return to more normal economic conditions later this year.”

The US economy has been posting unexpectedly strong gains in recent weeks, with barometers of hiring, spending and manufacturing all surging. Most economists say they detect the early stages of what could be a robust and sustained recovery, with coronavirus case counts declining, vaccinations rising and Americans spending their stimulusboosted savings.

In March, employers added nearly one million

jobs — an unheard-of figure before the pandemic. And in April, consumer confidence jumped to its highest level since the pandemic flattened the economy in March of last year.

The quickening pace of growth, on top of additional large spending packages proposed by President Joe Biden, have raised fears among some analysts that inflation, long quiescent, could rise uncomfortably fast. Raw materials and parts, from lumber to copper to semiconductors, have spiked in price as demand has outstripped the ability of suppliers and shippers to keep up.

Some companies have recently said they plan to raise prices to offset the cost of more expensive supplies. They include the consumer products giants Procter & Gamble and 3M as well as Honeywell, which makes industrial and consumer goods.

Powell, however, downplayed concerns that these trends could trigger sustained high inflation. He said he expects supply bottlenecks to cause only temporary price increases.

“An episode of one-time price increases as the economy reopens is not likely to lead to persistent yearover-year inflation into the future,” he said.

Clogged supply chains won’t affect Fed policy, Powell said, because “they’re temporary and expected to resolve themselves.”

Under a new framework the Fed adopted last summer, it will no longer raise rates in anticipation of high inflation, which had been its policy for decades.

Powell and other Fed officials have made clear they want to see inflation actually exceed their 2% annual inflation target — and not just briefly — before they’d consider raising rates.

They’ve set that goal so that inflation would average 2% over time, to offset the fact that it has been stuck below 2% for nearly the entire past decade. Fed policymakers favor price gains at that level as a cushion against deflation — a prolonged drop in prices and wages that typically makes people and companies reluctant to spend.

One reason Powell has said he thinks the inflation pressures building in the US economy will prove temporary is that, for now, most Americans don’t expect prices to rise much in the long run.

At his news conference, Powell was asked how the Fed would respond if inflation expectations were to increase before the economy had achieved something approximating full employment.

“For inflation to move up in a persistent way that moves inflation expectations up,” the chairman said, “that would take some time, and you would think it would be quite likely we would be in very strong labor markets for that to be happening.”

Once expectations for inflation do rise, they can be self-fulfilling: Workers start demanding higher pay to offset expected price gains, and retailers begin raising

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and 1970s.

Apart from inflation, the Fed’s new framework includes a sweeping definition of maximum employment that includes fully recovering the

jobs lost to the pandemic, including among many people of color and low-income workers, before it even considers a rate hike. Powell has also indicated that the

Fed would like the roughly four million Americans who stopped looking for work after being laid off in the past year to be hired before it considers tightening rates.

MARKET REPORT www.bisxbahamas.com

WEDNESDAY, 28 APRIL 2021

BISX ALL SHARE INDEX:

CLOSE

CHANGE

1948.67

-1.90

%CHANGE

YTD

YTD%

-0.10 -143.79

-6.87

(242) 323-2330 (242) 323-2320

BISX LISTED & TRADED SECURITIES 52WK HI 5.15 33.05 1.50 2.90 1.89 6.00 6.96 3.60 6.01 4.05 6.16 12.00 2.75 7.50 10.71 9.00 14.60 4.25 8.97 16.00

52WK LOW 3.13 22.65 1.46 1.62 1.50 5.00 6.00 2.70 4.25 2.75 5.00 9.75 2.10 4.90 9.50 8.00 13.00 3.42 8.15 15.20

PREFERENCE SHARES 1.00

1.00

1000.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

1.00 10.00 1.00

1.00 10.00 0.90

SECURITY AML Foods Limited APD Limited Benchmark Bahamas First Holdings Limited Bank of Bahamas Bahamas Property Fund Bahamas Waste Cable Bahamas Commonwealth Brewery Commonwealth Bank Colina Holdings CIBC FirstCaribbean Bank Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank Bahamas Limited Focol Finco J. S. Johnson

SYMBOL AML APD BBL BFH BOB BPF BWL CAB CBB CBL CHL CIB CWCB DHS EMAB FAM FBB FCL FIN JSJ

LAST CLOSE 5.05 32.12 1.50 2.71 1.59 6.00 6.96 3.53 4.30 2.90 5.67 9.75 2.38 7.00 11.20 9.00 14.00 3.99 8.35 15.50

CLOSE 5.05 32.12 1.50 2.71 1.59 6.00 6.96 3.53 4.30 2.90 5.67 9.75 2.37 7.00 11.20 9.00 14.00 3.99 8.19 15.50

1.00 1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

1.00 1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

SYMBOL FBB22 BFHB

LAST SALE 100.00 100.00

CLOSE 100.00 100.00

CHANGE 0.00 0.00

BAH29 BG0107 BG0207 BG0130 BG0230 BG0307 BG0330 BG0407 BSBGRS780222 BSBGRS760240 BSBGRS870288

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.65 100.00 100.86

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.65 100.00 100.86

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Bahamas First Holdings Preference Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Fidelity Bank Bahamas Class A Focol Class B

BFHP CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00

52WK LOW 100.00 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 102.00 100.00 100.50 100.66

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 99.97 100.66

SECURITY Fidelity Bank (Note 22 Series B+) Bahamas First Holdings Limited

BAHAMAS GOVERNMENT STOCK - (percentage pricing) Bahamas Note 6.95 (2029) BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-7Y BGRS FL BSBGRS780222 BGRS FL BSBGRS760240 BGRS FL BSBGR870288

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (0.01) 0.00 0.00 0.00 0.00 0.00 (0.16) 0.00

VOLUME

500

4,100 500

1,500

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

EPS$ 0.239 0.932 0.000 0.110 0.070 1.760 0.369 -0.438 0.140 0.184 0.449 0.722 0.102 0.467 0.646 0.728 0.816 0.203 0.939 0.631 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

VOLUME

DIV$ 0.170 1.260 0.020 0.030 0.000 0.000 0.260 0.000 0.000 0.120 0.220 0.720 0.434 0.060 0.328 0.240 0.540 0.120 0.200 0.610 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

P/E 21.1 34.5 N/M N/M N/M N/M 18.9 -8.1 30.7 15.8 12.6 13.5 23.2 15.0 17.3 12.4 17.2 19.7 8.7 24.6

YIELD 3.37% 3.92% 1.33% 1.11% 0.00% 0.00% 3.74% 0.00% 0.00% 4.14% 3.88% 7.38% 18.31% 0.86% 2.93% 2.67% 3.86% 3.01% 2.44% 3.94%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.00% 0.00% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%

INTEREST Prime + 1.75% 6.25%

19-Oct-2022 30-Sep-2025

MATURITY

6.95% 4.50% 4.50% 6.25% 6.25% 4.50% 6.25% 4.25% 4.44% 4.50% 4.33%

20-Nov-2029 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2022 26-Jun-2045 15-Oct-2022 22-Sep-2022 18-Jan-2024 26-Apr-2028

MUTUAL FUNDS 52WK HI 2.42 4.43 2.16 202.18 190.86 1.69 1.83 1.78 1.24 8.49 10.26 7.28 13.91 12.84 10.81 10.00 10.43 14.89

52WK LOW 2.11 3.30 1.68 164.74 116.70 1.67 1.73 1.75 1.03 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund Leno Financial Conservative Fund Leno Financial Aggressive Fund Leno Financial Balanced Fund Leno Financial Global Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

NAV 2.42 4.43 2.16 202.18 190.86 1.69 1.75 1.75 1.03 8.49 10.03 7.28 13.91 12.84 10.05 N/A 10.43 14.89

YTD% 12 MTH% 1.11% 4.62% -0.08% 0.88% 0.64% 2.75% 0.14% 5.02% 3.25% 31.13% 0.72% 0.80% -2.20% -1.87% -0.37% 0.01% -2.48% -11.52% 1.76% 1.76% -1.97% -1.97% 4.91% 4.91% 5.28% 15.75% 0.05% 3.96% -0.35% -6.34% N/A N/A 3.00% 25.60% 7.90% 48.70%

NAV Date

31-Mar-2021 31-Mar-2021 26-Mar-2021 31-Mar-2021 31-Mar-2021 31-Mar-2021 31-Mar-2021 31-Mar-2021 31-Mar-2021 31-Dec-2020 31-Dec-2020 31-Dec-2020 31-Dec-2020 31-Dec-2020 31-Dec-2020 31-Mar-2021 31-Mar-2021 31-Mar-2021

MARKET TERMS

BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00

YIELD - last 12 month dividends divided by closing price

52wk-Hi - Highest closing price in last 52 weeks

Bid $ - Buying price of Colina and Fidelity

52wk-Low - Lowest closing price in last 52 weeks

Ask $ - Selling price of Colina and fidelity

Previous Close - Previous day's weighted price for daily volume

Last Price - Last traded over-the-counter price

Today's Close - Current day's weighted price for daily volume

Weekly Vol. - Trading volume of the prior week

Change - Change in closing price from day to day

EPS $ - A company's reported earnings per share for the last 12 mths

Daily Vol. - Number of total shares traded today

NAV - Net Asset Value

DIV $ - Dividends per share paid in the last 12 months

N/M - Not Meaningful

P/E - Closing price divided by the last 12 month earnings

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | CAROLISLE 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333

PAGE 12, Thursday, April 29, 2021

THE TRIBUNE

HOW CAPITAL GAINS TAX HIKE TARGETS WEALTHY INVESTORS NEW YORK Associated Press

AFTER massive US government spending helped send the stock market back to record heights, with even more potentially on the way, the bill may be coming due for the nation’s wealthiest investors.

President Joe Biden is proposing to nearly double the tax rate the

highest-earning Americans pay on profits made from stocks and other investments. It would force millionaires to pay similar tax rates on their investment gains as upper-middle class households pay on their salaries, after years of enjoying lower rates.

It’s part of Biden’s efforts to tax wealthy people and corporations to pay for infrastructure investments and programmes aimed

at helping the broader economy. The most recent proposals, which Biden will detail in a speech before Congress later yesterday, focus on lower-income families and children. They include universal preschool for three year olds, two years of free community college and the extension of tax cuts for lower- and middle-income families.

Even though the possibility of higher capital-gains

tax rates has been telegraphed for a long time, reports of its pending unveiling shook up the stock market, with the S&P 500 falling to a nearly 1% loss on Thursday.

Stocks have since set more records, but the kneejerk reaction shows how much investors care about potential changes in tax rates.

WHAT IS THE CAPITAL GAINS TAX? The capital gains tax

must be paid on profits made from an investment, such as a stock or a Bitcoin. But it only takes effect after a sale locks in the gain. So if you bought a share of Tesla at $200 early last year and are sitting on a profit of more than $500, you won’t owe anything unless you sell.

If you do sell, and you are one of the highest-earning Americans, current law says you’d pay a 23.8% tax on a $500 profit, or $119.

That includes a 20% tax on investments held for more than a year, known as a “long-term capital gains” tax. It also includes an extra 3.8% tax on investments for high earners that’s been around since 2013 to help pay for the Affordable Care Act. WHAT IS BIDEN LOOKING TO CHANGE? Biden wants to raise the tax rate on long-term capital gains for Americans who make more than $1m in a year. Their rate would rise to 39.6% from 20%.

With the additional 3.8% tax, the highest-earning Americans could be paying a total tax rate of 43.4% on profits from long-term investments.

That would be the highest top rate since the 1920s, according to the Tax Foundation, and the proposal could make the rate on investment gains similar to the rate on income made from working.

The top tax rate that workers pay on salaries and wages now is 37%. Biden wants to move the top tax rate on work income up to 39.6%, which is where it was before the 2017 tax cuts.

One reason tax rates have been lower on longterm capital gains than for regular work is that supporters say it encourages long-term investment and helps the economy.

ARE THERE OTHER RELATED CHANGES? Biden is asking Congress to wipe out a preferential tax treatment for privateequity executives and other money managers earning millions of dollars annually, something referred to as “carried interest”.

For years they’ve been paying only 23.8% in federal tax because much of their compensation was treated as a long-term capital gain. The industry says that encourages private-equity firms to take risks as entrepreneurs and to continue investing in companies.

Because of it, many wealthy private-equity managers pay a lower rate than what households with married people filing their taxes jointly were paying on income above $171,050.

Besides targeting “carried interest”, Biden is also asking Congres for more funding for the IRS so it can be more aggressive in auditing wealthy Americans, among other proposals.

HOW BIG A DEAL ARE ALL THE CHANGES? Altogether, the White House says the tax law changes focusing on higherearning Americans would raise about $1.5tn across the decade. That would be in addition to the more than $2tn that the White House is looking to raise over the next 15 years from changes to corporate taxes.

Besides helping to pay for the programmes Biden is proposing, the White House says its proposals for capital gains rates and other changes will eliminate tax laws “that reward wealth over work” and hopefully “rein in the ways that the tax code widens racial disparities in income and wealth”.

Republicans in the Senate — where Biden’s Democratic party holds the slimmest of majorities — have already offered resistance to Biden’s proposals for big increases in spending and taxes for the wealthiest households.

BUT THE CHANGE IN THE CAPITAL GAINS TAX WOULD HIT VERY, VERY FEW PEOPLE? Only the top 0.3% of taxpayers, or about 500,000 households across the country, would be affected by the proposed rise in long-term capital gains rates, according to Brian Deese, director of the White House National Economic Council.

THEN WHY DOES THE MARKET CARE SO MUCH? The wealthiest households are very, very rich, and own a lot of stock.

The wealthiest US households are collectively sitting on $1tn to $1.5tn in gains on stocks that they will have to pay taxes on whenever they sell, according to a Goldman Sachs analysis of data from the Federal Reserve. That’s roughly 3% of the entire US stock market’s total value.

The concerns are that those rich investors will dump their stocks before the rate is increased, and that would-be investors would be discouraged from buying stocks because of the higher rate.

ARE THOSE CONCERNS VALID? The last time Washington raised capital-gains tax rates in 2013, the wealthiest households sold 1% of their stock holdings in the three months before the new rate went into effect, Goldman Sachs strategists say.

However, the selling was short-lived and the S&P 500 rose 30% for the year.

Stocks tend to go up over the long term. So, a sale today would mean an investor would be losing out on all the gains that may be coming in future years.

Also, many on Wall Street are expecting Democrats and Republicans to try for a compromise rate that’s lower than 43.4%.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, BARRY MERVYN SMITH of Providence Ave, Chippingham, P.O. Box CB11018, Nassau, Bahamas, intend to change my name to BARRY MERVYN SEYMOUR. 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, N.P., Bahamas no later than thirty (30) days after the date of publication of this notice.

THE TRIBUNE

Thursday, April 29, 2021, PAGE 17

APPLE PROFIT SOARS IN LATEST QUARTER ON HIGHER IPHONE SALES

Associated Press

DEMAND for the iPhone and other Apple products drove profits to more than double in the January-March period as the tech giant continued to capitalise on smartphone addiction.

Profits came to $23.6bn, or $1.40 per share, while revenue climbed 54% to $89.6bn in the fiscal second quarter, the company said yesterday. Analysts polled

by FactSet expected 99 cents per share on $77.1bn in sales.

The iPhone, Apple’s crown jewel, hadn’t sold quite as well as usual over

the past few years as people held on to their current phones for longer. But the release of four iPhone 12 models last fall has unleashed purchases, and iPhone sales rose 66% to $47.9bn on top of a holidayseason quarter when iPhone sales jumped 17%.

Some analysts believe the popularity of the iPhone 12 could lead to the device’s biggest sales year since 2014, when the iPhone 6 came out. It was a big hit because Apple enlarged the device’s screen.

The iPhone 12 is the first model that can connect to 5G wireless networks that promise higher speeds but

are still being built out.

Apple is trying to goose sales even more during the current quarter with a new purple iPhone 12.

Apple’s other products and services — it has music and TV streaming services, just announced a new keyand backpack-tracking device called AirTags, and computers and tablets — are also growing. Mac sales soared 70% to $9.1bn, a revenue record for the company, and iPad sales climbed 79% to $7.8bn.

CEO Tim Cook, on a call with investment analysts, noted the importance of the company’s computers and tablets during the pandemic

as students and workers toiled virtually at home.

The company’s steadily expanding services division generated revenue of $16.9bn during the quarter, up 27%. That division includes 15% to 30% commissions that Apple collects from most paid transactions completed with iPhone apps. Regulators in different countries are scrutinising how Apple extracts payments through the App Store.

The issue will be the focal point of a federal court trial scheduled to start May 3.

Epic Games, the maker of the popular video game Fortnite, will try to prove its

contention that Apple has turned its app store into a weapon for shaking down smaller companies to boost its own already huge profits.

Apple insists its fees are reasonable in light of its massive investment in the iPhone and that its “walled garden” approach helps protect the security of its customers and their devices.

The company also said it would increase spending on stock buybacks by $90bn and raised its dividend by 7%.

Apple CFO Luca Maestri said on the call that the company was not providing a revenue forecast given continued uncertainty in

THE WEATHER REPORT

5-Day Forecast

TODAY

ORLANDO

High: 90° F/32° C Low: 71° F/22° C

TAMPA

SATURDAY

SUNDAY

MONDAY

Mostly sunny with winds subsiding

Clear to partly cloudy

Beautiful with plenty of sunshine

Mostly sunny

Partly sunny and delightful

Breezy in the morning

High: 86°

Low: 74°

High: 86° Low: 73°

High: 86° Low: 73°

High: 86° Low: 73°

High: 85° Low: 74°

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

91° F

75° F

95°-77° F

96°-77° F

94°-75° F

92°-77° F

The exclusive AccuWeather RealFeel Temperature® is an index that combines the effects of temperature, wind, humidity, sunshine intensity, cloudiness, precipitation, pressure and elevation on the human body—everything that affects how warm or cold a person feels. Temperatures reflect the high and the low for the day.

N

almanac

E

ABACO

S

N

High: 81° F/27° C Low: 75° F/24° C

8-16 knots

S

High: 87° F/31° C Low: 75° F/24° C

8-16 knots

FT. LAUDERDALE

FREEPORT

High: 86° F/30° C Low: 77° F/25° C

E S

E

W

WEST PALM BEACH

W

uV inDex toDay

FRIDAY

W

N

| Go to AccuWeather.com

TONIGHT

High: 88° F/31° C Low: 75° F/24° C

High: 83° F/28° C Low: 73° F/23° C

MIAMI

High: 86° F/30° C Low: 76° F/24° C

7-14 knots

KEY WEST

High: 86° F/30° C Low: 80° F/27° C

Statistics are for Nassau through 2 p.m. yesterday Temperature High ................................................... 82° F/28° C Low .................................................... 69° F/21° C Normal high ....................................... 82° F/28° C Normal low ........................................ 70° F/21° C Last year’s high ................................. 81° F/27° C Last year’s low ................................... 75° F/24° C Precipitation As of 2 p.m. yesterday .................................. trace Year to date ................................................. 3.25” Normal year to date ..................................... 6.09”

ELEUTHERA

NASSAU

High: 86° F/30° C Low: 74° F/23° C

Forecasts and graphics provided by AccuWeather, Inc. ©2021

High: 83° F/28° C Low: 75° F/24° C

N

High: 83° F/28° C Low: 75° F/24° C

N

S

E

W

8-16 knots

S

8-16 knots

ANDROS

Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

The higher the AccuWeather UV IndexTM number, the greater the need for eye and skin protection.

tiDes For nassau High

Ht.(ft.)

Low

Ht.(ft.)

Today

10:16 a.m.

10:47 p.m.

2.7 3.5

4:23 a.m. -0.7 4:23 p.m. -0.8

Friday

11:10 a.m.

11:42 p.m.

2.6 3.3

5:18 a.m. -0.5 5:16 p.m. -0.6

Saturday

12:08 p.m.

-----

2.4 -----

6:16 a.m. -0.3 6:14 p.m. -0.3

Sunday

12:41 a.m.

1:11 p.m.

3.1 2.3

7:17 a.m. -0.1 7:17 p.m. 0.0

Monday

1:44 a.m.

2:19 p.m.

2.9 2.2

8:21 a.m.

8:25 p.m.

0.1 0.2

Tuesday

2:49 a.m.

3:27 p.m.

2.7 2.2

9:25 a.m.

9:34 p.m.

0.2 0.3

Wednesday 3:52 a.m.

4:31 p.m.

2.6 2.3

10:24 a.m. 0.2 10:40 p.m. 0.4

sun anD moon Sunrise Sunset

6:36 a.m.

7:39 p.m.

Moonrise Moonset

10:52 p.m.

8:42 a.m.

Last

New

First

Full

May 3

May 11

May 19

May 26

CAT ISLAND

E

W

the world economy, but said that revenue in the current quarter would grow by “double digits” from the year before. Supply constraints resulting from a shortage of computer chips would lower revenue by $3bn to $4bn in the June quarter, primarily affecting the Mac and iPad, he said.

Chips that power a wide range of devices are in short supply, contributing to the iPhone 12’s delayed release last year. Apple is “executing extremely well” despite those supply constraints, CFRA analyst Angelo Zino wrote in a research note.

Apple shares rose 1.8% in aftermarket trading yesterday.

SAN SALVADOR

GREAT EXUMA

High: 83° F/28° C Low: 75° F/24° C

High: 84° F/29° C Low: 76° F/24° C

N

High: 85° F/29° C Low: 76° F/24° C

E

W S

LONG ISLAND

tracking map

High: 84° F/29° C Low: 76° F/24° C

8-16 knots

MAYAGUANA High: 84° F/29° C Low: 76° F/24° C

Shown is today’s weather. Temperatures

CROOKED ISLAND / ACKLINS

are today’s highs and tonight’s lows.

RAGGED ISLAND High: 83° F/28° C Low: 77° F/25° C

H

High: 84° F/29° C Low: 76° F/24° C

GREAT INAGUA High: 86° F/30° C Low: 77° F/25° C

N

E

W

E

W

N

S

S

8-16 knots

10-20 knots

marine Forecast ABACO ANDROS CAT ISLAND CROOKED ISLAND ELEUTHERA FREEPORT GREAT EXUMA GREAT INAGUA LONG ISLAND MAYAGUANA NASSAU RAGGED ISLAND SAN SALVADOR

Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday:

WINDS SE at 8-16 Knots S at 6-12 Knots SE at 8-16 Knots SE at 6-12 Knots E at 8-16 Knots ESE at 6-12 Knots E at 8-16 Knots E at 7-14 Knots E at 8-16 Knots SE at 6-12 Knots SE at 7-14 Knots S at 6-12 Knots E at 8-16 Knots ESE at 6-12 Knots NE at 10-20 Knots E at 7-14 Knots E at 8-16 Knots ESE at 7-14 Knots E at 8-16 Knots E at 7-14 Knots ESE at 7-14 Knots SE at 6-12 Knots E at 8-16 Knots ESE at 7-14 Knots E at 8-16 Knots SE at 6-12 Knots

WAVES 3-5 Feet 2-4 Feet 1-2 Feet 0-1 Feet 3-6 Feet 3-5 Feet 3-6 Feet 2-4 Feet 3-6 Feet 3-5 Feet 1-3 Feet 1-2 Feet 1-2 Feet 1-2 Feet 3-5 Feet 2-4 Feet 3-5 Feet 2-4 Feet 4-7 Feet 3-6 Feet 1-3 Feet 1-2 Feet 3-6 Feet 2-4 Feet 1-3 Feet 1-3 Feet

VISIBILITY 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles

WATER TEMPS. 77° F 77° F 81° F 81° F 79° F 79° F 81° F 81° F 81° F 81° F 79° F 79° F 80° F 80° F 81° F 81° F 81° F 80° F 83° F 81° F 79° F 79° F 81° F 81° F 79° F 79° F