05162018 business

business@tribunemedia.net

WEDNESDAY, MAY 16, 2018

$4.75

$4.77

Fiscal targets ‘blown’ without disaster plan says BIA chair

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A

HURRICANE Matthew-type event could wipe out the IMF’s proposed national disaster fund and forever blow The Bahamas off its Fiscal Responsibility targets, a top insurer warned yesterday.

Emmanuel Komolafe, pictured, the Bahamas Insurance Association’s (BIA) chairman and a risk compliance specialist, told Tribune Business that the Government will struggle to hit - and maintain - the goals set out in the Fiscal Responsibility Bill unless it implements a “multi-faceted” national disaster risk management programme.

Arguing that the two initiatives needed to go “hand in hand”, Mr Komolafe warned that governments

* Hurricanes will wash away Bill’s goals * Forever using its ‘adjustment’ clause * Matthew damage equals IMF ‘fund’ will frequently find themselves having to call on the Bill’s section 13 given The Bahamas’ increasing exposure to more frequent and powerful hurricanes.

This section, titled “Exceptional Circumstances”, allows the Government to “temporarily depart” from the Bill’s deficit and debt targets “when sudden and unexpected events arising from external shocks, resulting in a significant economic downturn, national security considerations, or natural disasters so require”.

Qualifying events would include the likes of the

Minister: ‘No free lunch’ on tug boats

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net A CABINET minister yesterday defended the imposition of a mandatory tug boat fee for cruise and commercial vessels using Nassau Harbour, saying: “There’s no such thing as a free lunch.”

Frankie Campbell, pictured, minister of transport, told Tribune Business that the Government has to “recoup” the $15m investment in the two tug boats that were christened on Monday.

“The rationale is there is no such things as a free

* SAYS GOV’T ‘MUST RECOUP $15M’ lunch,” he said. “They can debate whether or not it should cost that but they can’t debate whether or not there should be a cost. You heard how much the tugs cost; $15m. That cost has to be recouped somewhere.

“We in the Ministry of Transport are ensuring that if there is a distress, if there is an emergency, it will not be said that the port

SEE PAGE 3

RESPONSIBILITY BILL TO TAKE EFFECT THIS BUDGET

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE “enforcement elements” of the Fiscal Responsibility Bill will be incorporated into the 20182019 Budget, the Ministry of Finance’s top official has confirmed.

Marlon Johnson, the acting financial secretary, told Tribune Business that

* GOV’T AIMS TO PASS

BY MID-YEAR * WON’T ‘GET TOO FAR’ INTO 2018-2019 * FISCAL HAWK PRAISES ‘PENDULUM MOVE’

the Government wants Parliament to pass the Bill by

SEE PAGE 7

2008-2009 global recession, plus major hurricanes, and the Bill requires the Government to outline both the measures and timeline needed to get “back on track” with targets that require it to maintain a 0.5 per cent deficit from 2021 onwards and, over the long-term, slash the debt-to-GDP ratio to 50 per cent.

But, with The Bahamas impacted by major hurricanes in each of the past three years, Mr Komolafe said the extent of the subsequent “fiscal correction” and time needed - as demanded by the Bill - would have

increased each year had the legislation already been in effect.

The BIA chairman suggested it was thus no accident that the International Monetary Fund’s (IMF) latest Article IV report had focused heavily on establishing a national disaster savings fund, which it recommended should equal between 2-4 per cent of GDP. This would create reserves worth between $214m to $428m, based on 2017’s real GDP figures, to help finance immediate post-hurricane recovery. Yet Mr Komolafe pointed out that Hurricane

SEE PAGE 4

$4.77

$4.77

No ‘hanky panky’ over $5m Long Island water deal

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net LONG ISLAND’S $5m water deal went to the only bidder that “substantially” met the Water & Sewerage Corporation’s terms, its chairman saying yesterday: “I don’t believe in hanky panky.”

Adrian Gibson, pictured, told Tribune Business there were sound reasons why the two-phase infrastructure contract was awarded to BHM Company (Bahamas Hot Mix), rather than a Long Island construction firm that submitted the lowest bid.

Rejecting claims by former PLP chairman, Bradley Roberts, that the Corporation would receive poor “value for money” from an award allegedly influenced by “cronyism”, Mr Gibson said price was

* WINNING OFFER 96% COMPLIANT * ‘TOO RISKY’ TO GIVE LOWEST BIDDER * TWO DISQUALIFIED ON ‘POTENTIAL CONFLICT’ not the only factor that determined the outcome.

Construction expertise, especially on similar water infrastructure, and the bidder’s financial strength also weighed heavily in a process that had to comply with Caribbean Development Bank (CDB) requirements given that the multilateral institution is providing the financing.

While confirming Mr Roberts’ claim that Rowdy Boys, the Long Island-based construction firm, submitted

SEE PAGE 5

IMF urges ‘bold action’ on structural reforms before WTO

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE BAHAMAS will not “reap the full benefits” of World Trade Organisation (WTO) membership unless it takes “bold action” to eliminate structural obstacles to growth, the IMF has warned.

The Fund, in its latest Article IV report, warned that economic growth will remain “subdued” unless the Government moves decisively to address this nation’s “ease of doing business”, energy, labour and

* Otherwise Bahamas ‘won’t get full WTO benefits’ * And medium-term growth will be ‘subdued’ * Governance reformer: it backs my position credit market inefficiencies.

“Decisive structural reforms are needed to unlock growth, particularly as a gradual liberalisation of the economy advances,” the IMF said, acknowledging the Minnis administration’s efforts to deregulate through initiatives such as exchange control liberalisation, the Commercial Enterprises

Act and the WTO accession process.

Yet it warned that The Bahamas will fail to maximise the benefits from such reforms, and be unable to achieve higher GDP growth rates, without addressing long-standing structural weaknesses and bottlenecks within its economic make-up.

“Staff stressed that these

efforts should be complemented with bold action to put the public debt-toGDP ratio on a downward trajectory, and to alleviate structural impediments to reap the full benefits from greater integration with the global economy,” the IMF said.

“A more competitive

SEE PAGE 6

PAGE 2, Wednesday, May 16, 2018

THE TRIBUNE

HILTON EXPOSES HOTEL INDUSTRY TO STUDENTS THE BRITISH Colonial Hilton has taken part in “Careers@Hilton Week”, the hotel chain’s annual event showcasing the many hospitality industry opportunities available for young job seekers.

For the week of May 14, Hilton hotels and corporate offices around the globe hosted hundreds as part of Hilton’s Open Doors commitment, which aims to impact at least one million young people by 2019 through connecting them to opportunities in the hospitality industry.

The Hilton is on track to reach this target, with nearly 800,000 young people impacted through global partnerships, the talent pipeline and local activities to-date.

As part of this, the British Colonial Hilton yesterday hosted an event for more than 800 students in grades four through nine. Children from New Providence schools gathered at the downtown Nassau resort to talk about their futures.

Hotel staff from each department were available to provide a detailed description of their roles within the hotel, and the importance of the hospitality industry.

Christal Stubbs-Grant, the British Colonial Hilton’s director of human resources, said: “The reason why we chose students at such a young age was because they are very impressionable, and that is usually when you are able to make an even bigger impact on their futures.”

Cable Bahamas in leadership change CABLE BAHAMAS is undergoing a leadership transition, with Anthony Butler set to retire as chief executive and be replaced

by Bahamian businessman Franklyn Butler II. The BISX-listed communications provider, in advertisements set to be published today, revealed that Mr Butler is set to retire from the top post on

June 30, 2018, following a near-20 year career with Cable Bahamas.

He will be replaced by Mr Butler, the current chairman of AML Foods and the Milo Butler Group. Mr Butler has served as a director on the Cable Bahamas Board since 2011, and he will be the first Bahamian to lead the company since its creation in 1994.

GB CONSULTATION ON WTO BEGINS TODAY THE GOVERNMENT will today begin a three-day World Trade Organisation (WTO) consultation with Grand Bahama’s private sector.

Led by officers from the Ministry of Financial Services, Trade and Industry and Immigration, the consultations will take place at the Grand Bahama Chamber of Commerce’s offices at No 5A East Mall Drive, Freeport.

Brent Symonette,

minister of financial services, trade and industry and Immigration, said private sector input was vital in helping to craft the best negotiating offer for The Bahamas’ WTO accession.

“We need the input of every Bahamian sector,” he said. “When we negotiate, we want to ensure that we obtain accession terms that will contribute to the country’s overall growth and development.

“With everyone’s input,

our negotiation team will be in a better position to put forward offers that encourage what’s best for the Bahamian economy from a long-term perspective. But we are unable to accomplish that goal without the full support and input of all sectors.”

Companies interested in attending the consultations are encouraged to refer to the Ministry’s website, www. bahamasministryoffinancialservices.com, to determine

the date and time that meetings will be held for their particular industry/sector and confirm attendance.

Those unable to attend the in-person consultations, but would wish to have their input taken into consideration, are encouraged to complete the appropriate questionnaires on the Ministry’s website. The Ministry can also be reached by email at trade@bahamas. gov.bs or by phone at (242) 328-5071-6.

THE TRIBUNE

Wednesday, May 16, 2018, PAGE 3

Minister: ‘No free CENTRAL BANK UNVEILS $2.7BN FDI ‘PIPELINE’ lunch’ on tug boats FROM PAGE ONE of The Bahamas is not able to address it. For the purpose of safety, just like the fire engine; you have it there in case there is a fire and, just like insurance, you purchase it in case there is an incident.”

Mr Campbell added: “I’m not overly concerned that we are not headed in the right direction. I am satisfied that we are doing what we need to do to ensure that, as the service provider, we have the necessary infrastructure in place.”

Tribune Business reported on Monday that the Government’s plan to introduce the “mandatory tug boat fee” has been met with furious opposition from commercial shippers and cruise lines, amid fears it will further undermine Nassau’s competitiveness.

Michele Paige, the Florida-Caribbean Cruise Association’s (FCCA) president, in an e-mail responding to Tribune Business inquiries said the industry was “fundamentally opposed” to paying for the service in Nassau Harbour.

“The industry supports paying for services that it needs,” Ms Paige wrote.

“However, in this case, our member lines tell me that tug service requests are not needed in the Port of Nassau, and that the existing fleet of tugs was adequate for the exceptional use by the industry.

“The industry is fundamentally against paying for this service and, in fact, has gone on record as saying it did not need this new mandated service. This new mandatory fee will result in additional costs that are not warranted, which makes the ‘Bahamas Cruise Product’ more expensive.”

Ms Paige added: “I note that mandatory fees of this sort are not at any other ports in the entire Caribbean, except one which has a very tricky maneuver to get into the port, which is not the case in the Port of Nassau.” The FCCA member lines make up close to 100 per cent of

Nassau’s cruise business, including Carnival, Royal Caribbean and their affiliates. One major importer, speaking on the condition of anonymity, told Tribune Business: “We’re told that commercial vessels that are 1,000 gross tonnes are going to have to pay on every vessel coming in. They’re looking at $700 in and out, so that’s a total of $1,400.”

The move to outsource the tugboat service falls in line with recommendations by auditor-general, Terrance Bastian, who in an examination of the Port Department’s accounts for the two-year period to end-June 2016 suggested that it either purchase new vessels or outsource tug boat services to the private sector.

At the time, he branded the over $600,000 spent on repairs as “exorbitant” and not necessarily providing taxpayers with ‘value for money’. The two new tug boats, named Tug Samson and Tug Rose, will be operated by Tug Services Ltd, a 100 per cent Bahamian-owned and operated company.

The Government has entered into a 15-year lease with Tug Services Limited, beginning on April 1, 2018, to use the vessels.

The agreement calls for Tug Services Ltd. to provide two 50-tonne bollard pull, Azimuth Stern Drive, tug boats, on a daily time charter. This includes: management services, crew, firefighting, oil spill recovery, salvage capabilities and vessel maintenance for tug services at Nassau Harbour and Clifton Pier. With its world class equipment and experienced Bahamian staff, Tug Services Limited has the task of providing tug boat services 24 hours per day, 365 days per year for the next 15 years to ensure the safety and enhance the competitiveness of Nassau Harbour and Clifton Pier. This includes reliable service during poor weather and in emergencies.”

The 15-year contract will cost tax payers $4m per year.

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE CENTRAL Bank is reporting a foreign direct investment (FDI) “pipeline” worth around $2.7bn excluding Baha Mar and other “headline” projects, the IMF has revealed.

The International Monetary Fund (IMF), in its just-released Article IV report, said that number equivalent to about 24 per cent of Bahamian gross domestic product (GDP) - did not include the controversial $5.5bn Oban Energies deal or the potential $2.5bn development of the former Ginn project in Grand Bahama’s West End

by Toronto-based Skyline Investments.

“Projected FDI flows and tourism receipts are subject to upside and downside risks,” the IMF said. “The Central Bank of The Bahamas reports a value of about $2.7bn (about 24 per cent of GDP) in FDI projects in the pipeline, excluding completion of Baha Mar...

“Therefore, there are significant upside risks to staff’s baseline outlook for FDI cumulative flows of about $2bn, excluding Baha Mar. At the same time, external risks associated with US growth and global financial conditions, as well as the risk of policy slippages, imply downside risks to the FDI outlook. Equally two-sided are the risks around the outlook for tourism activity, related mainly to Baha Mar and the occurrence of natural disasters.”

Elsewhere, the IMF expressed concern about further slippage in The Bahamas’ cost and structural competitiveness, with real wage growth outstripping worker productivity.

And it also noted that the foreign currency component of The Bahamas’ national debt had risen further, potentially putting pressure on the external reserves.

The Article IV report also reiterated that that The Bahamas’ one to one peg to

the US dollar had resulted in a real effective exchange rate (REER) that was overvalued, with a 9.8 per cent to 12.3 per cent adjustment needed to “align the current account balance with economic fundamentals”.

“Several indicators point to an erosion in cost and structural competitiveness in recent years,” the IMF said. “From a cost perspective, despite the depreciation of the currency in real effective terms, the value of The Bahamas’ REER remains above the average among key tourism competitors (Jamaica and the Dominican Republic) with more flexible exchange rate arrangements.

“The risks to tourism competitiveness are mitigated somewhat by the large share of US tourists in total arrivals,” the Fund added.

“However, real wages in

The Bahamas have been rising faster than labour productivity in recent years and the costs of electricity are relatively high.

“Finally, the World Bank’s ‘Doing Business Indicators’ suggest that the Bahamas has steadily lost ground from a business climate perspective since 2013, despite regaining some ground in 2017. The country still scores poorly in administrative processes, infrastructure, access to credit, ease of trading across borders, and protecting minority investors.”

As for the national debt’s composition, the IMF said: “Despite continued increases in debt, its composition remains favourable in terms of maturity, but has deteriorated somewhat in terms of currency.

“Foreign currency debt is projected at 36 per cent of

total debt in fiscal year 2018 (up from 27 per cent in FY2017), while short-term debt, denominated entirely in domestic currency, represents only 14 percent of total debt.”

The Fund added: “The stock of public external debt increased by 6.2 percentage points of GDP in 2017, reaching an estimated 27.3 per cent of GDP by end-year. The increase is primarily accounted for by the $750m external sovereign bond placement in November.

“Under the baseline scenario, external debt is projected to rise to 27.6 per cent of GDP in 2019, reflecting the planned issuance of a rate reduction bond by the state-owned electricity company, then fall to 26 per cent of GDP at the end of the forecast horizon.”

PAGE 4, Wednesday, May 16, 2018

THE TRIBUNE

BIA chair: Fiscal targets ‘blown’ without disaster plan FROM PAGE ONE Matthew’s estimated damage, pegged by the Inter-American Development Bank (IDB) at $374m, together with $145.5m in “economic losses” could effectively “blow” those funds in one go.

He called for The Bahamas to go beyond the IMF’s suggestion, and instead increase insurance penetration through a combination of tax and other incentives; ensure full compliance with Building Code and land use plans; and secure coverage for public

infrastructure assets such as docks, roads, bridges and government buildings.

“Our ability to achieve them may be impacted significantly if we do not have a multi-faceted approach to addressing national disasters,” Mr Komolafe told Tribune Business of the Fiscal Responsibility targets.

“We may have to have several of those fiscal adjustment plans in the absence of a national disaster risk management plan. Fiscal adjustment plans are not something you should have to use often. It just highlights that this [Fiscal Responsibility] goes hand in hand with

NOTICE

APEX CONQUEST LIMITED N O T I C E IS HEREBY GIVEN as follows: (a) APEX CONQUEST LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. (b) The dissolution of the said company commenced on the 14th May, 2018 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas Dated this 16th day of May, A. D. 2018 _________________________________ Bukit Merah Limited Liquidator

the IMF report, and their recommendation to have a holistic approach to address these issues.”

Recognising The Bahamas’ increasing vulnerability to major hurricanes, the IMF reiterated its call for the Government to set aside savings equivalent to 0.5 per cent of GDP in storm-free years to help build a “disaster savings fund”.

Based on real GDP data for 2017, these annual savings would amount to between $53-$54m. With the IMF calling for a fund equal to between two to four per cent of GDP, The Bahamas will only be able to achieve this recommendation if it enjoys four consecutive storm-free years at the low end - and eight years at the high end.

Such a lengthy storm-free period is doubtful given that The Bahamas has been struck by major hurricanes in each of the past year, which suggests that it may take a decade or more to hit the IMF’s “disaster saving fund” target.

Explaining the rationale for its suggestion, the IMF’s Article IV report said: “Over the last 30 years, The Bahamas has recorded annual average damages from natural disasters (NDs), including both to public and private sector assets, at close to 1.5 per cent of GDP, higher than the Caribbean regional average of 1.2 per cent of GDP. “Four out of the eight hurricanes that hit The Bahamas since 1990 resulted

COMMONWEALTH OF THE BAHAMAS IN THE SUPREME COURT Common Law and Equity Division

2017 CLE/GEN/0424

IN THE MATTER of an Indenture of Mortgage made the 6th day of October, A.D. 2006 between Danny G. Fowler and Sabrina S. Fowler and Finance Corporation of Bahamas Limited.

AND IN THE MATTER of The Mortgages Act, Chapter 156 of the Revised Laws of the Commonwealth of The Bahamas BETWEEN FINANCE CORPORATION OF BAHAMAS LIMITED AND DANNY G. FOWLER AND SABRINA S. FOWLER

Plaintiff

First Defendant Second Defendant

To: Danny G. Fowler and Sabrina S. Fowler TAKE NOTICE that an action has been commenced against you in the Supreme Court of the Commonwealth of The Bahamas by Finance Corporation of Bahamas Limited, Main Branch, 323 Bay Street, Nassau, New Providence, Bahamas, in which the Plaintiff’s claim is set out in the Originating Summons filed in this action on the 31st day of March A.D., 2017 seeking an Order to direct you to deliver up possession of the Mortgaged property being ALL THAT piece parcel or lot of land situate in the Subdivision called and known as Yamacraw Shores formerly New Providence Estate situate in the Eastern District of the Island of New Providence in the said Commonwealth of The Bahamas and being lot numbered Thirty (30) to Finance Corporation of Bahamas Limited within Twenty-eight (28) days of the Order and Judgment for the sum outstanding under the Indenture of Mortgage dated the 6th day of October A.D., 2006, and that it has been ordered that the publication of a notice of the entry of the Originating Summons filed on the 31st day of December, A.D., 2017, Affidavit in support of application filed on the 23rd day of April, A.D., 2018, Ex Parte Summons filed on the 23rd day of April, A.D., 2018, Order dated on the 24th day of April, A.D., 2018 in The Tribune Newspaper and the Nassau Guardian shall be deemed to be good and sufficient service of the said document upon you.

If you desire to defend the said action, you must within fourteen (14) days from the publication of this advertisement, inclusive of the day of such publication, enter an appearance in person or by an attorney either (1) by handing in the appropriate forms duly completed, at the Registry of the Supreme Court, Ground Floor, BAF Financial Centre, Marlborough Street, Nassau, Bahamas, or (2) by sending them to that office by post.

A copy of the said Originating Summons, Ex Parte Summons, Affidavit in support of Ex Parte Summons and Order may be obtained from the Supreme Court Registry, Judicial Complex, East Street North, Nassau, Bahamas, or from the Attorneys for the Plaintiff below mentioned.

Dated the 10th day of May, A.D., 2018

HIGGS & JOHNSON Ocean Centre Montagu Foreshore East Bay Street Nassau, New Providence, Bahamas Attorneys for the Plaintiff

in estimated total damages - public and private - of at least five per cent of GDP, implying a probability of a disaster of that magnitude of close to 15 per cent in any given year.

“The Bahamas has traditionally absorbed the fiscal consequences of these shocks through re-prioritisation of spending and/ or worsening fiscal deficits, often forcing a rapid accumulation of debt. However, increased reliance on risk reduction and preparedness policies are preferable than relying entirely on [afterthe-fact] intervention as financing can be made available immediately; and likely at more affordable costs.”

The IMF estimated that there was just “an 11 per cent probability or less” that its proposed savings fund would be depleted once it reached its target size, although Mr Komolafe was yesterday unconvinced.

Pointing out that Hurricane Matthew produced $409 million in insured losses alone, with uninsured damage and economic losses accounting for millions more, the BIA chief argued this showed The Bahamas needed to go further than the IMF’s proposed “fund”.

“One event could easily wipe that out,” Mr Komolafe told Tribune Business. “God forbid we have another event like Matthew. It [the IMF’s fund] might suffice, but not for total losses to the country.

“That’s why it’s important on the part of government to incentivise more people and companies to be insured because it reduces or limits the burden on the Government in the aftermath of the storm... If we have a significant event, that fund will be depleted and we may have to start again.”

While the IMF’s “fund” would likely suffice “on the

high end”, Mr Komolafe said annual contributions to it could be part-funded by the three per cent premium tax levied on the insurance industry.

Based on the Insurance Commission’s annual 2016 report, this tax generated $22m in revenue - equivalent to about 40 per cent of the annual target contribution cited by the IMF. “It’s a drop in the bucket in terms of the overall fund, but at least it’s a start,” the BIA chairman told Tribune Business. He added that $13m of 2016’s premium tax total came from the life insurance sector, with the $9m balance generated by property and casualty insurers.

Mr Komolafe also reiterated the industry’s call for Value-Added Tax (VAT) to be removed from property and casualty premiums, on the grounds this would make hurricane coverage more affordable and accessible, and thus reduce the financial recovery burden on government.

“We have stated repeatedly that the Government ought to consider insuring public sector assets,” he told Tribune Business. “A self-insurance policy without an annual allocation of funds within the Budget earmarked specifically for disaster recovery or infusion into a captive-style structure is flawed.”

The BIA chairman agreed that “a properlystructured” insurance policy with the Caribbean Catastrophe Reinsurance Fund (CCRIF), and the proposed $100m disaster “contingency loan” facility from the Inter-American Development Bank (IDB), were also critical elements of a more comprehensive disaster risk management plan.

The IMF seemed to agree, saying: “A tiered

approach to disaster risk financing—an approach including different financial instruments for different layers of risk—is appropriate and cost effective.

“Self-insurance or risk retention, including through contingent funds in the Budget, the proposed savings fund, and the recently requested contingent loan from the IDB for $100m should be used to confront the more frequent, less severe shocks.

“Risk transfer through the Caribbean Catastrophe Risk Insurance Facility (CCRIF), of which The Bahamas is a member, and insurance of public sector assets should be used to confront more severe events. Catastrophe bonds could also help to insure against the most severe disasters.”

Summing up its recommendations, the Fund added: “Increased reliance on preparedness and risk reduction policies, including by setting up a natural disasters savings fund, should enhance fiscal and economic resilience...

“In addition, insuring public assets and encouraging the broader use of private insurance, including through financial literacy training and targeted subsidies, would reduce fiscal contingent liabilities. Investing in resilient infrastructure and maintaining up-to-date building codes, land use and zoning guidelines are also critical elements of an adequate disaster risk management strategy.”

To advertise in The Tribune, contact 502-2394

THE TRIBUNE

Wednesday, May 16, 2018, PAGE 5

NO ‘HANKY PANKY’ OVER $5M LONG ISLAND WATER DEAL FROM PAGE ONE

the lowest bid of $2.66m, Mr Gibson said it would have been “too risky” to award it the contract.

This, he explained, was because Rowdy Boys’ bid was less than 50 per cent of the valuation placed on the project by the Corporation’s external engineering consultants, who estimated it would cost $5.762m.

Information provided to Tribune Business showed that Rowdy Boys’ bid was only 68 per cent compliant with the tender’s requirements, containing eight so-called deficiencies, whereas BHM Company’s offer was 96 per cent compliant.

Mr Gibson also revealed that two of the 11 bids, those from Island Site Development (ISD) and Top Notch Builders, were immediately disqualified because of potential “conflicts of interest”.

He and the Corporation, in a statement, said the two contractors’ submissions were accompanied by “professional references for individuals” working for the external engineering firm overseeing the Long Island project.

This resulted in the engineering firm’s “termination without prejudice”, with the Corporation planning to meet the two contractors involved to “discuss the matter further”.

“The procurement and tendering process has to be transparent, 100 per cent transparent,” Mr Gibson told Tribune Business. “It’s keeping everything above board, and I’m the type of person that doesn’t believe in hanky panky.

“I don’t subscribe to any corrupt practices. If it existed before my appointment, I’m certainly weeding it out and putting in measures to ensure everyone that submits a bid gets a fair shake.”

He added that bidders on any Corporation, Government or private contract

had to understand that they would both win and lose out on different tenders, and said the two contractors’ disqualifications highlighted the need for “code of conduct” requirements for Water & Sewerage vendors.

“Just the potential for a conflict of interest, and this is in accordance with CDB rules, caused that result,” Mr Gibson said. “It’s simply the potential for that to happen triggered the engineering consultant’s removal and two bids to be disqualified.

“We have a vendor due diligence form, and a form that speaks to standards of conduct for vendors. Vendors must be compliant with the Corporation’s standards for how we conduct business. These are all elements, facets of the new business model we’re putting in place.

“The idea is to create an environment of fairness, transparency and competitiveness. We’re anticorruption, anti-bribery.”

Mr Gibson hit back after Mr Roberts, a former Water & Sewerage chairman, implied in a statement issued on Sunday that the contract award was influenced by “cronyism” because Brent Symonette and his family are shareholders in BHM Company.

Mr Roberts has a long history of targeting the Cabinet minister over this link, and Sunday’s statement was no exception. He attacked the contract award on the basis that BHM Company’s offer was 139 per cent, or $3.14m more, than the bid submitted by Rowdy Boys.

“As the [former] minister with responsibility for public works and the Water and Sewerage (WSC), I engaged the professional services of Rowdy Boys,” Mr Roberts said. “Therefore, I am well aware of the quality of their work nationwide.

“The mobilisation cost of New Providence-based companies such as BHM places them at a distinct disadvantage, and BHM’s bid price clearly confirms this. Why was the contract

not awarded to a local company (Rowdy Boys) with many years of delivering quality work around The Bahamas, and the prospect of saving the cash-strapped Water and Sewerage Corporation over $3m in the process.

“This contract award is one of the latest decisions of this government to fly in the face of what is now the empty campaign rhetoric of Dr Minnis and the FNM about eliminating public waste, becoming more fiscally responsible and being better stewards of the public purse.”

Information obtained by Tribune Business suggests Mr Roberts’ figures are slightly off. While Rowdy Boys’ bid was $2.266m, BHM Company’s “unadjusted” bid was even higher than allowed for by the former PLP chairman, coming in at $5.363m.

This, though, was still below the $5.762m project “costing” provided by the Corporation’s engineers.

Mr Gibson yesterday said other bids were also close to this price, with Bakerwick Construction submitting a $5.726m offer and Top Notch, one of those disqualified, coming in at $5.861 million.

With such a huge variance between Rowdy Boys’ price and the evaluation by its own consultants, Mr Gibson said it was simply too risky to hand the contract to the Long Island contractor.

“For good project and risk management, you’re injecting a huge element of risk as that’s more than 50 per cent below the professional engineers’ assessment of what a reasonable and experienced contractor will be able to do it for,” the Corporation’s former chairman said of the rationale for rejecting Rowdy Boys.

He emphasised that the Long Island contract “is not just about price”, pointing out that no other contractor came close to matching BHM Company on compliance with the tender’s requirements - including

financial strength and construction expertise.

“All bidders with the exception of BHM Company were substantially unresponsive,” the Corporation said in a statement. “Most of the bidders failed the financial requirements by submitting unaudited financial documentation. Several bidders did not utilise the forms that were provided with the

tender document.”

Mr Gibson said that out of the 11 bids received, five were priced higher than BHM Company’s winning submission. He added that the offers were all evaluated by an independent Jamaican engineering firm, which had no connection to any of the bidders or their principals.

And, with the CDB financing the project, strict qualifying and transparency

rules were applied to the process. “It’s a matter of bringing local contractors into the new century,” Mr Gibson told Tribune Business.

“It’s not getting some documents, putting information in them and focusing on price. We’re past that stage.

You must demonstrate you have the financial strength expertise. This is a design and build contract.”

COMMONWEALTH OF THE BAHAMAS IN THE SUPREME COURT

2016 CLE/GEN/1178

Common Law and Equity Division IN THE MATTER of an Indenture of Mortgage made the 18th day of April, A.D., 2006 between Orlando Godfrey Gardiner and Finance Corporation of Bahamas Limited.

AND IN THE MATTER of the Mortgages Act, Chapter 156 of the Revised Laws BETWEEN FINANCE CORPORATION OF BAHAMAS LIMITED Plaintiff AND ORLANDO GODFREY GARDINER Defendant

To: ORLANDO GODFREY GARDINER TAKE NOTICE that an action has been commenced against you in the Supreme Court of the Commonwealth of The Bahamas by Finance Corporation of Bahamas Limited, Main Branch, 323 Bay Street, Nassau, New Providence, Bahamas, in which the Plaintiff’s claim is set out in the Originating Summons filed in this action on the 5th day of August, A.D., 2016 seeking an Order to direct you to deliver up possession of the Mortgaged Property being Lot “B” Love Estates Subdivision situate in the Western District of the Island of New Providence one of the Islands in the Commonwealth of the Bahamas to Finance Corporation of Bahamas Limited within Twenty-eight (28) days of the Order and Judgment for the sum outstanding under the Indenture of Mortgage dated the 18th day of April, A.D., 2006 and that it has been ordered that the publication of a notice of the entry of the Originating Summons filed on the 5th day of August, A.D., 2016, Ex Parte Summons filed on the 23rd day of August, A.D., 2017, Affidavit in support of Ex Parte Summons filed on the 13th day of November, A.D., 2017 and Order filed on the 23rd day of January, A.D., 2018 in The Tribune Newspaper and Nassau Guardian newspaper shall be deemed to be good and sufficient service of the said document upon you.

If you desire to defend the said action, you must within fourteen (14) days from the publication of this advertisement, inclusive of the day of such publication, enter an appearance in person or by an attorney either (1) by handing in the appropriate forms duly completed, at the Registry of the Supreme Court, Ground Floor, BAF Financial Centre, Marlborough Street, Nassau, Bahamas, or (2) by sending them to that office by post.

A copy of the said Originating Summons, Ex Parte Summons, Affidavit in support of Ex Parte Summons and Order may be obtained from the Supreme Court Registry, Judicial Complex, East Street North, Nassau, Bahamas, or from the Attorneys for the Plaintiff below mentioned.

Dated the 10th day of May, A.D., 2018

HIGGS & JOHNSON Ocean Centre Montagu Foreshore East Bay Street Nassau, New Providence, Bahamas Attorneys for the Plaintiff

PAGE 6, Wednesday, May 16, 2018

THE TRIBUNE

IMF URGES ‘BOLD ACTION’ ON STRUCTURAL REFORMS BEFORE WTO FROM PAGE ONE economy would also facilitate a further strengthening of foreign reserve buffers...

Without bold action to tackle long-standing structural bottlenecks, medium-term growth would remain subdued.”

The IMF’s comments were yesterday seized upon by Robert Myers, the Organisation for Responsible Governance’s (ORG) principal, as supporting his long-standing calls for the Government to address its

own inefficiencies before leading The Bahamas into full WTO membership.

“It’s interesting that the IMF report mirrors our own belief, and what we’ve recommended to the Government, in terms of reducing the cost of business to allow us to become more competitive and gain the broader benefits of WTO accession,” he told Tribune Business.

“That’s the whole point of what I’ve been saying.

I’m not against WTO, but we need a level playing

CUNNINGHAM LINDSEY (BAHAMAS) LIMITED _____________________________________________ NOTICE IS HEREBY GIVEN that an Extraordinary General Meeting of the Shareholders of CUNNINGHAM LINDSEY (BAHAMAS) LIMITED is hereby called to be held via teleconference, on the 22nd day of June, 2018 at 2:30 in the afternoon.

The object and purpose of said meeting is to have laid before the Shareholders of the Company the accounts of the Liquidator, Laura di Sordi, showing the manner in which the winding up of the Company has been conducted and also to hear any explanation that may be given by said Liquidator.

Laura di Sordi LIQUIDATOR of CUNNINGHAM LINDSEY (BAHAMAS) LIMITED

field. That’s what the IMF is saying; if we get our costs order we will be more competitive regionally and globally.

“Our biggest impediment to getting our costs in order is the Government’s inefficiency and inability to improve the ease and cost of doing business. That means energy costs, taxes, exchange control, credit and banking regulations. Removing these structural impediments is what levels the playing field.”

Mr Myers has repeatedly urged the Government to delay WTO accession until The Bahamas first “puts its house in order”, and lowers the cost and bureaucracy associated with doing business in this nation.

Otherwise, he has warned, opening up local industries and markets to larger, more efficient and lower cost foreign rivals will see Bahamian-owned businesses wiped out.

“If I’m paying $5,000 an acre for land to put an office on because land is expensive, and the guy in Florida is paying $2,500 an acre, I’ve got problems,” he told Tribune Business. “If I’m paying 65 cents a gallon for water and they’re paying three cents a gallon, it’s hard to compete.

“If I’m paying 44 cents a kilowatt hour and they’re paying 11 cents, it’s hard to compete. If I’m paying a 6.5 per cent interest rate and they’re paying three per cent, it’s hard to compete.

If I’m paying 1.5 per cent to access foreign exchange it’s hard to compete.”

Mr Myers said much of the responsibility for improving The Bahamas’ “ease of doing business” rests with the Government, given that it makes the laws and regulations, controls the various approval processes and controls most of the utility monopolies.

“When you get efficient I can get efficient and compete in a global marketplace,” he told the Government. “Until you get efficient I can’t get efficient to compete in the global marketplace.”

In response to the IMF’s concerns, the Government said the Rate Reduction Bond (RRB) intended to refinance the Bahamas Electricity Corporation’s (BEC) legacy debts and liabilities - amounting to as much as $650m - will be placed in early 2019.

“BPL is planning on issuing the rate reduction bond in early 2019 to refinance its legacy debt and fund additional infrastructure,” the IMF said. The Article IV

report made no mention of the recent long-term generation contract awarded to Shell North America, which will only take effect in 2021, instead referring to the initial short-term tender.

“On enhancing the business environment, the Cabinet is currently reviewing specific recommendations issued by the “Ease of Doing Business Committee”, appointed last summer, some of which have already been implemented,” the IMF said.

“They also noted that the anti-corruption reform package will strengthen governance and the rule of law, and stressed their commitment to fight crime.”

Summing up, the Fund said: “Lifting growth in the medium-term requires resolute implementation of structural reforms.

Priorities include advancing energy sector reforms to improve the reliability of the electricity grid and reduce costs; streamlining administrative processes to improve the ease of doing business; expanding vocational and apprenticeship programmes to help reduce skills mismatches and youth unemployment; and steadfast implementation of the credit bureau to improve access to credit.”

EUROPE, IRAN SAY PUSH TO SAVE NUCLEAR DEAL OFF TO GOOD START BRUSSELS Associated Press MAJOR European powers and Tehran committed yesterday to keep working together to save the Iran nuclear deal despite US President Donald Trump’s determination to kill it off.

European Union foreign policy chief Federica Mogherini and the foreign ministers of Britain, France and Germany said after talks with Iranian Foreign Minister Mohammad Javad Zarif that salvage efforts focused on economic, business and banking issues could produce “practical solutions in the next few weeks”.

“There was awareness of the urgency,” Mogherini said after the meeting in Brussels.

“If I can use the metaphor that some raised around the table, we all have a relative in intensive care and we all want to get him or her out of intensive care as soon as possible,” she said.

Germany, France and Britain all are signatories of the 2015 deal, which was meant to stop Iran from developing nuclear weapons in exchange for the lifting of economic sanctions.

NOTICE International Business Companies Act No.45 of 2000 THE LATIN INVESTMENT FUND LTD. (the “Company”) Notice is hereby given that, in accordance with Section 138 (8) of the International Business Companies Act, No.45 of 2000, the Dissolution of THE LATIN INVESTMENT FUND LTD. (IBC No. 146929 B) has been completed, a Certificate of Dissolution has been issued and the Company has therefore been struck off the Register. The date of completion of the dissolution was the 30th day of April, 2018.

Paolo Del Bue Liquidator

MARKET REPORT TUESDAY, 15 MAY 2018

t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com

BISX ALL SHARE INDEX: CLOSE 1,935.26 | CHG 0.04 | %CHG 0.00 | YTD -128.31 | YTD% -6.22 BISX LISTED & TRADED SECURITIES 52WK HI 4.40 19.17 7.50 3.76 1.64 0.19 4.50 8.90 6.60 5.30 11.50 2.71 1.60 8.21 6.10 11.48 7.29 13.67 12.51

52WK LOW 3.50 17.43 7.50 3.32 0.90 0.12 3.30 8.40 6.00 3.15 9.00 2.30 1.40 7.25 6.00 8.78 5.67 3.35 12.01

1050.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

PREFERENCE SHARES

1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 105.00 100.00 100.00 10.00 1.00

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

Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B

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

52WK LOW 100.00 100.00

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

SECURITY Fidelity Bank Note 18 (Series E) + Fidelity Bank Note 22 (Series B) +

SYMBOL FBB18 FBB22

Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y

BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407

BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

MUTUAL FUNDS 52WK HI 2.13 4.14 1.99 178.69 153.40 1.55 1.70 1.62 1.10 6.99 8.54 6.15 10.52 11.46 10.46

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.48 1.62 1.57 1.04 6.41 7.62 5.66 8.65 10.54 9.57

LAST CLOSE 4.40 17.43 9.09 3.35 1.00 0.18 3.35 8.89 6.10 3.82 10.05 2.61 1.60 7.68 6.10 10.44 6.43 4.20 12.51

CLOSE 4.40 17.43 9.09 3.35 1.00 0.18 3.35 8.89 6.10 3.82 10.05 2.62 1.60 7.72 6.10 10.44 6.43 4.20 12.51

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.04 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

CLOSE 100.00 100.00

CHANGE 0.00 0.00

108.75 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

-0.74 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00 100.00 109.49 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund

VOLUME

VOLUME

EPS$ 0.361 0.932 -0.306 0.281 -1.133 0.000 -1.465 0.638 0.573 0.171 0.631 0.102 0.330 0.000 1.129 0.679 0.610 0.293 0.543

DIV$ 0.080 1.130 0.000 0.230 0.000 0.000 0.000 0.320 0.220 0.120 0.620 0.060 0.050 0.084 0.320 0.500 0.200 0.120 0.580

P/E 12.2 18.7 N/M 11.9 N/M N/M -2.3 13.9 10.6 22.3 15.9 25.7 4.8 N/M 5.4 15.4 10.5 14.3 23.0

YIELD 1.82% 6.48% 0.00% 6.87% 0.00% 0.00% 0.00% 3.60% 3.61% 3.14% 6.17% 2.29% 3.13% 1.09% 5.25% 4.79% 3.11% 2.86% 4.64%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

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

INTEREST 6.00% Prime + 1.75% 6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%

NAV 2.14 4.13 2.00 179.39 135.02 1.55 1.68 1.63 1.09 7.15 8.14 6.41 11.26 11.68 10.24

YTD% 12 MTH% 0.31% 4.30% 0.16% 5.93% 0.17% 2.36% 4.66% 3.89% 5.58% 6.65% 1.04% 4.26% -1.06% 2.15% 0.58% 3.61% -0.48% 4.84% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69%

MATURITY 31-May-2018 19-Oct-2022 20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022 NAV Date 31-Mar-2018 31-Mar-2018 30-Mar-2018 31-Mar-2018 31-Mar-2018 31-Mar-2018 31-Mar-2018 31-Mar-2018 31-Mar-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018

MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings

YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225

THE TRIBUNE

Wednesday, May 16, 2018, PAGE 7

RESPONSIBILITY BILL TO TAKE EFFECT THIS BUDGET HOTEL UNION: INDUSTRIAL FROM PAGE ONE

mid-year, thus ensuring its provisions take effect during the new fiscal period.

Acknowledging that this had compressed consultation on the Bill into a narrow two-week period, Mr Johnson said: “The policy desire articulated by the Prime Minister is to ensure the Government’s new fiscal Budget has the enforcement element of the Fiscal Responsibility Bill in place.

“The timelines are tight, but we are confident that people will turn around and give us feedback in that timeframe. The desire is not to get too far into the new fiscal year” before the legislation is passed.

Mr Johnson added that the Fiscal Responsibility Bill was “very clear in what it sets out to do”, and that persons wanting to compare, benchmark and analyse its provisions against similar legislation in other jurisdictions have the Internet at their disposal.

“The policy consideration is to have this in place by the middle of this year; passed and in place by the middle of the calendar year,” he told Tribune Business.

The Fiscal Responsibility Bill is intended to transform the Government’s fiscal discipline by locking it into specific deficit targets and longer-term debt ratios, while boosting transparency and accountability in the management

MARLON JOHNSON

of its financial affairs through enhanced public scrutiny.

The latter role will be played by a newly-created Fiscal Responsibility Council, comprised of accounting, legal, financial analyst and business expertise from the private sector, while the legislation also attempts to introduce “checks” that will prevent a repeat of the Christie administration’s pre-2017 general election spending spree.

The Fiscal Responsibility Bill’s key targets require the Government to slash the fiscal deficit to 0.5 per cent from 2020-2021 onwards, slashing it from a sum equivalent to 5.8 per cent of GDP in the 20162017 Budget year. This means reducing it from near $700m to around $54m.

The Bill’s “first schedule” sets out a “glide path” or “road map” for

NOTICE

NOTICE is hereby given that I, ndubuisi akazie of #66 Glencoe Drive, South Bahamia, Freeport, Grand Bahama, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 9th day of May, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

achieving this, acknowledging - as the IMF stated - that “significant fiscal adjustments” are needed over the next two Budget years to hit this objective.

To enable the public sector and wider Bahamian economy “to achieve the fiscal objective in an orderly manner”, and avoid unnecessary shocks, the Bill calls for 2018-2019 and 2019-2020 deficits that “shall not exceed” 1.8 per cent and one per cent of GDP, respectively.

The Bill also sets out a “long-term” target of reducing the Government’s direct debt-to-GDP ratio from the current 58 per cent to “no more than 50 per cent”. The year by which this target is to be achieved has to be set out in the Government’s “fiscal strategy report”, which must be submitted to Parliament no later than the third week of November each year.

The Fiscal Responsibility Bill’s content and intent yesterday found favour with long-standing “fiscal hawks”, with one telling Tribune Business: “It’s swinging the pendulum in the right direction.”

Rick Lowe, an executive with the Nassau Institute, told Tribune Business: “From my first read it looks reasonable enough.

I think it’s a good starting point. It should force more accountability on government, and puts them more in the position of the private sector of having to be accountable for their actions rather than pile on more debt.

“It makes them take stock of what the position actually is today, and is moving the pendulum in the right direction. If this is the beginning of their changes, it’s a good, major first step. They appear to be trying to open up and be more transparent. We’ll see in the days, weeks and months ahead how meaningful that will be. Two cheers so far.”

Mr Lowe said he was unhappy with “the out” provided by section 13’s “exceptional circumstances” clause, which allows the Government to “temporarily depart” from the Bill’s deficit and debt targets “when sudden and unexpected events arising from external shocks, resulting in a significant economic downturn, national security considerations, or natural disasters so require”.

Qualifying events would include the likes of the 2008-2009 global recession, plus major hurricanes, and the Bill requires the Government to outline both the measures and timeline needed to get “back on track” with its targets.

“That’s a loophole to me that I don’t really like,” Mr Lowe added, “but at least this has started the process to re-evaluate government debts and deficits. That’s where they’ve been hiding tax increases for decades; in deficits and debt. Instead of coming to the taxpayer and saying: ‘We need to add two percentage points to VAT’, they add it on to their borrowing.”

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that we, JAMAINE BASDEN and KENYON BASDEN of Oasis Drive, P.O.Box N-8724, New Providence, Bahamas, intend to change our child’s name from KENYON ANDREW ALEXANDER BASDEN to MICHA KENYON ANDREW ALEXANDER BASDEN. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O. Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

AGREEMENT ‘PARAMOUNT’

By NATARIO MCKENZIE the terms of the industrial Tribune Business Reporter agreement that expired in nmckenzie@tribunemedia.net January 2013 are still in effect.

NEGOTIATING and Four teams vying for the registering a new indus- hotel union’s leadership trial agreement was nominated yesterday after yesterday described as the Supreme Court last “paramount” for the hotel week removed an injuncunion’s new leadership, with tion preventing candidate elections now set for next nominations and voting.

Wednesday.

That ruling by the court Darren Woods, the Baha- removed an injunction, premas Hotel, Catering and viously obtained by veteran Allied Workers Union’s hotel trade unionist, Dave (BHCAWU) general sec- Beckford, and his Team retary, and who is vying for Destiny election candidates, the presidency this time which blocked a nomination around, told Tribune Busi- process originally scheduled ness: “We were able to for last week, Tuesday, May negotiate contracts for all 8.

“Elections are set for next of the other properties, but we were unable to do the week Wednesday, May 23.

Master Contract. For us That is the reason why we had to try and get before that is paramount.

“We need to not only the court because the originegotiate it, but we need to nal date for nomination was be able to negotiate and sign May 8,” said Mr Woods.

He added that reform to a registered document so we could have it executed. It’s the union’s constitution was fine to negotiate a contract, needed. “Reformation of but we need one that is our constitution is needed going to be registered. With now based on what has the new amendments to the happened over the past 10 law that the Christie admin- years or so, and all we have istration dealt with, all the gone through,” Mr Woods terms of the conditions of a said. “We need to put some registered document forms things in place to bring our part of the individual terms constitution in line with of condition of employ- what is happening today. ment. That would solidify Our union is going to be 60 our members in the indus- years old come December try once we are able to get a 2018.” registered document signed.

That is paramount, first and foremost.”

Both the Bahamas Hotel and Restaurant Employers Association and the union have previously confirmed they are behaving as if

To advertise in The Tribune, contact 502-2394

HELP WANTED

Noteable Bakery needs Baker Cake Decorator

For more info email: needbaker17@gmail.com

PAGE 8, Wednesday, May 16, 2018

THE TRIBUNE

US firms seek tariff relief as US and China try to mend rift WASHINGTON Associated Press CORPORATE America is seeking relief from President Donald Trump’s threatened tariffs on at least $50bn in Chinese goods as negotiators seek to prevent a trade war between the world’s two biggest economies.

Best Buy wants televisions to be spared from the tariffs. Sanden International (USA) of Wylie, Texas, warns it will have to lay off 39 of its 431 workers if 25 percent tariffs take effect on the components it uses to make car airconditioning compressors.

SABIC, a petrochemical manufacturer, wants some building materials struck from the tariff list.

As the US government began three days of hearings on the tariffs yesterday, Chinese Vice Premier Liu He traveled to Washington to seek a resolution to the trade dispute. A similar highlevel US delegation made a trip to Beijing earlier

this month and returned empty-handed.

Trump had raised hopes for the latest talks by striking a surprisingly conciliatory tone toward China, which he has long accused of predatory business practices that robbed American jobs and swelled Washington’s trade deficit with Beijing. Trump offered a lifeline to ZTE, a Chinese telecom company that is fighting for survival after being hit with sanctions this month by the US Commerce Department.

Trump tweeted on Sunday that he was working with President Xi Jinping to put ZTE “back in business, fast” and save tens of thousands of Chinese jobs — a stance that drew an immediate outcry from many Republicans and Democrats alike.

Trump had campaigned for the presidency on a vow to strike a much tougher trade stance than his recent predecessors, who, he argued, had agreed to deals that gave an unfair advantage to America’s competitors. The president

has pointed to the US trade deficit ($566bn last year) as a sign of economic weakness caused by disastrous agreements and abusive behavior by China and other countries.

He has proposed tariffs on $50bn in Chinese imports to punish Beijing for forcing American companies to hand over technology in exchange for access to China’s vast market. China fired back by targeting $50bn in American products, including soybeans and small aircraft, for potential retaliatory tariffs. Trump then ordered the US trade representative to look for an additional $100bn in Chinese goods to tax.

The prospect of an escalating trade war has rattled financial markets and alarmed many businesses.

The American Chemistry Council has predicted that by driving up prices and killing sales, the tariffs would wipe out 24,000 jobs at the companies that make chemicals and the companies that use them.

Yet some trade

analysts have suggested that Trump’s unexpected ZTE overture could give US and Chinese negotiators something to work with. Commerce and ZTE last year settled charges that the Chinese company sold sensitive telecommunications equipment to Iran and North Korea in violation of US sanctions. ZTE agreed to plead guilty and pay about $1bn in fines.

Commerce last month accused ZTE of violating the agreement and blocked the company from importing American components for seven years.

The department said ZTE had misled regulators: Instead of disciplining all employees involved in the sanctions violations, Commerce asserted, ZTE had paid some of them full bonuses and then lied about it.

The two countries are reportedly attempting a swap: Relief for ZTE in return for Beijing dropping plans to impose tariffs on US farm products.

“The president is

transaction-oriented,” said Christine McDaniel, senior research fellow at George Mason University’s Mercatus Center. “He and his team are working very hard to make a deal... That (ZTE) tweet maybe teed up the visit by Mr Liu.” William Perry of the Seattle law firm Harris Bricken, who runs the US China Trade War blog, said he thought the president has belatedly realised that a trade war would hurt some of his staunchest supporters — farmers in the American heartland who rely on exports. It might also hurt his Republican Party in the November congressional elections.

“He’s worried about the midterms and the impact of his trade policy on farmers,” Perry said.

Still, Trump’s ZTE tweet drew fire on Capitol Hill from some Democrats and Republicans.

“It’s the wrong time to cut a deal, and this would be a terrible deal,” said Republican Sen Marco Rubio of Florida.

Rubio said China won’t

play by the rules. He said the Trump administration has been given an historic opportunity to place the US’s relationship with China in proper balance.

He said one misstep could blow the whole thing apart and “doom generations of Americans to living in a world, not one with a powerful China, one with a dominant China and a declining America”. “...

If they win this battle on ZTE, the world will notice and the message it will send is that when push comes to shove this administration is no different than the others,” Rubio said.

Senate minority leader Chuck Schumer of New York lambasted Trump for going easy on a company that violated US sanctions.

“He talks a big game on China,” Schumer said.

“He promises to be tough, and yet this weekend on the toughest thing he did (harsh sanctions on ZTE), the thing that woke the Chinese up... the president backed off.”

UBER SHIFTS POLICY FOR ALLEGED SEXUAL MISCONDUCT ON SERVICE SAN FRANCISCO Associated Press UBER’S ride-hailing service will give its US passengers and drivers more leeway to pursue claims of sexual misconduct, its latest attempt to shed its reputation for brushing aside bad behaviour.

The shift announced on yesterday will allow riders and drivers to file allegations of rape, sexual assault and harassment in courts and mediation, rather than being

locked into an arbitration hearing.

The San Francisco company is also scrapping a policy requiring all civil settlements of sexual misconduct to be kept confidential, giving victims the choice of whether they want to make their allegations public.

Nothing in Uber’s previous policy prevented its riders and drivers from asking police to open criminal investigations into their accusations.

Uber’s new approach represents a conciliatory

step from CEO Dara Khosrowshahi. He was hired last August amid a wave of revelations and allegations about rampant sexual harassment in Uber’s workforce, a coverup of a massive data breach, dirty tricks and stolen trade secrets .

Khosrowshahi has vowed to “do the right thing”, repair the damage from previous missteps and lure back alienated riders who defected to rivals such as Lyft.

Not to be outdone, Lyft announced yesterday it would also scrap its rules

binding passengers and drivers to private arbitration and confidential settlements in civil cases involving allegations of sexual misconduct.

While applauding Uber for making a “good decision”, Lyft also made a veiled reference to the legal pressures that may have contributed to the change.

Uber is shifting its stance after receiving an open letter from the New York law firm Wigdor LLP, which already has filed a lawsuit seeking to be certified as a class action representing women who

allege they have been raped, sexually harassed or abused in other ways by Uber drivers.

The letter , sent on behalf of 14 women, called upon Uber’s board to drop the arbitration requirement to shine a light on abusive conduct.

“Silencing our stories and the stories of countless other female victims emboldens predators by failing to hold them accountable,” the letter asserts. “This vicious cycle perpetuates senseless violence.”