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FRIDAY, MAY 17, 2019

$4.90 BISX-listed Fund: ‘much changed’ if vacancy cut 50% By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A BISX-listed fund’s administrator yesterday said “the picture will be much changed” by yearend 2019 if it succeeds in slashing vacant space at its flagship property by 50 percent. Michael Anderson, pictured, RoyalFidelity Merchant Bank & Trust’s president, told Tribune Business that the Bahamas Property Fund would completely reverse last year’s negative net cash flow if it brings negotiations with two prospective Bahamas Financial Centre tenants to a positive conclusion. With the duo lined up to take a minimum 20,000 square feet between them, Mr Anderson said this would halve vacant space at the Charlotte Street-based property and boost both the fund’s top and bottom lines. Besides increasing rental income, he explained that

increased occupancy would also slash the Common Area Maintenance (CAM) costs that the Fund is currently having to pick up as landlord, thereby cutting its expenses. RoyalFidelity has already achieved this at the Fund’s third property, Providence House, by renting the 75 percent that was previously vacant itself. This has producing $450,000 in “cumulative value” for the fund, and resulted in Providence House’s value being revised upwards by $1m. Mr Anderson yesterday voiced optimism that winds of improvement in the

SEE PAGE 5

BISX seeks share in each listed firm By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas International Securities Exchange (BISX) wants to obtain a share in each of its listed companies so it can determine if they are meeting their disclosure obligations. The proposal is among a slew of changes to the exchange’s trading, listing and issuer obligation rules that have been released for a 30-day feedback period, with BISX aiming to make its interactions with the market “faster, cheaper and more digital”. Keith Davies, BISX’s chief executive, told Tribune Business the proposals were “the first tranche” of changes designed to shakeup and modernise the exchange’s rules that will be rolled-out on “an ongoing basis”. Among the proposed changes are requirements for BISX’s publicly traded companies to file interim financial statements within 45 days of quarter end, rather than the current 90 days, to bring the exchange’s rules in line with the Securities Industries Regulations 2012. It is also proposing that companies issue their

KEITH DAVIES annual reports and audited accounts “not less than 21 days” before an annual general meeting (AGM), with these details prepared within 120 days of the financial year-end. This, again, is to bring BISX’s rules in line with the Securities Industry Act. Mr Davies confirmed the changes were intended to eliminate any “inconsistencies” between the law and BISX. “We want to make sure we align ourselves with what the law requires,” he told this newspaper. “The way the rules are written they’re designed to recognise the Act is paramount. We’re making that simple change.” BISX is also seeking to centralise the distribution of information by its listed companies by proposing that they publish their financial results, material changes and other

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‘Drastically shrinking’ middle class market By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

HE Bahamian real estate market “shrinks drastically” beyond the $450,000 price point because too many purchasers are being priced out, a local developer has warned. Jason Kinsale, president of Aristo Development, told Tribune Business in a recent interview that The Bahamas currently has a “two-speed” market where the foreign segment is strong but the local element “still struggling”. The developer, who has

• Developer details buyer struggles over $450k • ‘Resistance any time’ threshold is breached • Too few unable to afford $3k monthly repay

JASON KINSALE

spearheaded the development of projects such as the Balmoral Club, ONE Cable Beach and THIRTY-SIX on Paradise Island, said Bahamians were increasingly unable to afford middle to upper middle class price points due to a combination of insufficient income and bank reluctance to advance mortgages. Suggesting that single parent homes were “probably 50 percent of the

demographic”, and with construction costs continuing to increase, Mr Kinsale said Bahamians households needed to be earning around $100,000 per year - some $7,000-$8,000 per month - to comfortably service the $3,000 and higher monthly mortgage payments at such price points. “I think to be quite honest with you the

SEE PAGE 4

Private equity venture eyes ‘$100m-$200m opportunities’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A BISX-listed firm yesterday said its newlycreated venture capital subsidiary can exploit “over $100m to $200m in opportunities” provided by Bahamian companies that need reinvigorating. Julian Brown, pictured, Benchmark (Bahamas) president and chief executive, told Tribune Business that the group’s Benchmark Ventures unit is targeting established businesses that need new “capital, management and direction to thrive in the 21st century economy”. While Benchmark Ventures’ creation, as part of a wider restructuring, dragged its parent to a $776,900 total comprehensive loss for the 2018 full-year, Mr Brown voiced optimism that it could

Benchmark targets businesses needing ‘21st century direction’

become “a significant part of the group” within the next five years. He added that Benchmark (Bahamas) would have “no objection” to eventually taking companies it invests in public via an initial public offering (IPO), which is how private equity and venture capital firms typically exit their investments in developed markets.

Benchmark Ventures made a small $10,625 contribution to its parent’s bottom line in the 2019 first quarter, and Mr Brown said of the unit: “We think there’s a great need for it. The Bahamian economy is an $11bn economy, and we believe there is over $100m to $200m of opportunities in the economy that can use our expertise and capital. “Businesses that are mature, with good market share and good, strong brands, we believe that kind of business is available, and what we see in the local economy is a lack of management and expertise in being able to make these businesses perform in today’s more competitive environment but that does

not mean these companies are dead. “They just need some renergising, and we believe we have the skill sets to do that. We’re really very, very positive and excited about this venture.” Benchmark Ventures is targeting an under-served niche given that the Bahamian economy has traditionally lacked private equity/venture capital finance in a substantial, organised form. These funding forms effectively represent a missing link in business financing needs. While the government and its various agencies, including the Entrepreneurial Venture Fund and Small Business Development Agency (SBDC), are focused on entrepreneurs, start-ups and micro businesses, there is little attention being

SEE PAGE 4

PAGE 2, Friday, May 17, 2019

HE Bahamas this week sought to formalise a segment of the tourism industry that we have targeted for many years. Community-based tourism has received wide attention in south-east Asia, Africa and many other parts of the developing world. Through a partnership between the University of The Bahamas (UoB), the Ministry of Tourism and the Tourism Development Corporation, we have embarked on a journey to bring more authentic Bahamian experiences to our guests. Community-based tourism invites tourists to visit local communities through the provision of overnight accommodation, culinary and other cultural exchange experiences. The benefits derived are both socio-cultural and economic. We celebrate the richness of our diversity by bringing tourists into our common spaces, showing and teaching them to sing, dance, dine and speak as we do. The residents earn income

THE TRIBUNE

Marrying community with guest experience as land managers, entrepreneurs, service and produce providers, and employees. The entire community benefits either from the direct income earned or residual income that the visitor spends. Community-based tourism enables the tourist to discover local habitats and wildlife, and celebrates and respects traditional cultures, rituals and wisdom. The forum held at the university was designed to remind communities of the commercial and social value placed on their natural and cultural heritage through tourism, which will foster community-based conservation of these resources. This means, then, that every pillar of sustainability stands to benefit from bringing

locals and visitors together in these deliberate ways. While we applaud the Nettie Symonettes and the Arlene Nash-Fergusons, who have already set the pace for living proudly as Bahamians in the presence of our visitors, there are still so many missed opportunities and “low hanging fruit” that we must take advantage of. Our discussion today, in tribute to this week’s forum, is to share three suggestions for new businesses that will bring locals and visitors together. 1. Bush to Bag Experience Straw has, since the early 1700s, been a mainstay for The Bahamas. Visitors still enjoy watching Bahamians make straw items, and

gladly purchase them for personal use. Imagine the heightened experience of taking a visitor into the coppice to select the silver top palm; strip the palm; set out the palm for drying; dye the palm strips; learn the basic plaits; and create the bag/ hat/doll or other souvenir item to take with them. This level of participation increases the satisfaction and excitement level for visitors ten-fold. 2. Crabbing Adventures Every Bahamian that has ever gone into the bush, in the wee hours of the morning with a stick, croker sack bag and lamplight in search of land crabs, remembers fondly the thrill of catching the little critters. Imagine how exhilarating it would be

for visitors to have this same experience. Perhaps we have taken for granted that the daily activities of our summer childhood would make great memories for our visitors. 3. A seven leg-church tour From the Anglican, Catholic, Presbyterian, Baptist, Methodist and Pentecostal movements, the churches in walking distance of downtown Nassau provides a vivid and rich historic overview of The Bahamas’ story. When millions take pilgrimages each year to the Vatican and other shrines across the globe, we are certainly missing great opportunities to share the richness of our heritage with religious enthusiasts.

IAN FERGUSON BY

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

Tourism targets ‘new and refreshed face’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Tourism Development Corporation(TDC) held a Community-Based Tourism workshop at the University of The Bahamas (UoB) in a bid to create more entrepreneurial opportunities. Under the theme, Empowering Bahamians, Encouraging Entrepreneurship, the corporation and university teamed up to develop a business model for community-based tourism throughout The Bahamas. “It’s all about

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JANET JOHNSON entrepreneurship and creating entrepreneurs within the community that are going to benefit from what assets there are in that community,” the corporation’s executive director, Janet Johnson, said. “It’s bringing enlightenment in the community, and showing a new and refreshed face to tourism, and going into those heritage communities such as Fox Hill, Bain and Grants Town, Adelaide and looking for the assets that they

have and trying to get people to understand that those are what people want to see.” Dr Vikneswaran Nair, UB’s professor of sustainable tourism, who has experience in spearheading the development of rural tourism in south-east Asia, made a presentation on the issue and its implications for development in Bahamian communities. His presentation was followed by a “question and answer” session. “The biggest take away is that we need to take a stepby-step approach. We have to first prepare the community for what tourism is all about, then we develop the product and, in the final stage, we do all we can to sustain the product,” Dr Nair said. “I see the interest that is coming out of this programme. I think if you give young people the

opportunity, they can be more innovative than their parents. We need the youth to be a part of this thrust toward community-based tourism.” Ms Johnson said plans are under way to launch community-based tourism pilot workshops in two communities: Bimini and Bain Town. Similar workshops will be rolled out in other islands of The Bahamas. “We have to have the toolkit that would be adapted for The Bahamas and each individual island because their characteristics are all so different. It’s going to be a labour of love, and we are going to enjoy the deep dive that we have to do to come up with the formula that’s going to work for The Bahamas,” she said. “TDC is ready to get on with the work that’s required.”

THE TRIBUNE

Friday, May 17, 2019, PAGE 3

EXPORT REVENUES CUT OUT FROM BUSINESS LICENCE

THE government is moving to stimulate export activity by excluding all revenues generated from the calculation of business licence fees, the deputy prime minister said yesterday. Addressing an industry briefing at the British Colonial Hilton, KP Turnquest said the move would achieve consistency between the business licence and value-added tax (VAT) treatment of export earnings. Acknowledging the structural obstacles that make it difficult for The Bahamas to compete on goods exports, he added that this nation should focus more on exporting professional services such as accounting. Mr Turnquest said the renewed export focus was part of the government’s bid to stimulate domestic economic activity, a move that has been forced in part by the end to preferential tax breaks/incentives for foreign investors as a result of the European Union’s (EU) anti-tax evasion offensive.

K PETER Turnquest speaks at the government’s Industry Briefing at the British Colonial Hilton. Photo: Kristaan Ingraham/BIS “We all know the barriers caused by the high cost of electricity and labour, as examples,” the deputy prime minister said in relation to goods exports.”We have several competitive niche areas as a country and we capitalising on those, but there is another export market that is under explored, where we can more effectively compete on an even footing. “That is the export

of services: Accounting services, legal services, information technology services, management consulting services and, of course, financial services, just to name a few.” Mr Turnquest said that consistent with the recent legislative changes that level the playing field for Bahamians by removing preferential exemptions for non-residents, the government is targeting policies

to incentivise the export of services. Revenue derived from these services exports will not be taxed for business licence purposes or VAT. “In this digital economy, export services are growing rapidly and we do not want Bahamians to be constrained within our territorial borders,” he explained. “In fact, we want to incentivise them to build clientele on the international market, taking advantage of all the business opportunities that can be delivered through a mobile device or on a computer.” Mr Turnquest added that as Bahamians increase their skill sets and expand their reach, there will be increasing opportunities to participate in the export economy. He conceded that, for the past 50 years, the government has approached regulation from the standpoint of whether an individual or entity was resident or non-resident. “This legal framework of

privileges and benefits to non-residents was inherited many decades ago. It served its purpose at the time as a way to encourage the inflow of foreign exchange. However, today, it does not work,” Mr Turnquest said. “We are adopting a new approach that brings fairness to the system. We are adopting a new way that positively shifts the overall value proposition of The Bahamas’ financial sector. We are implementing a new framework that increases the ease of doing business. “All together, this means we faced the daunting prospect of change in the industry and, instead of being paralysed by the prospects, we created a framework of transformation for the country.” Mr Turnquest said that moving forward, it does not matter who the person/business is or where they reside: Taxes are due on all business activity where the benefits are derived inside The Bahamas. To encourage the export of services, the government

is excluding revenue derived from this activity from being included in the basis for business licence fee calculation, consistent with the existing rules for VAT. This will apply whether an individual or entity is resident or non-resident. Mr Turnquest said: “We first introduced this thinking when we enacted the VAT Act, with its provisions for zero-rated goods and services. They already apply to business activity outside of The Bahamas. “Streamlining the treatment of VAT and business licence makes it easy for businesses to implement these new rules, because they have already done the analysis for the purpose of VAT. Moving forward, they will apply the same type of calculations to determine export turnover for the purpose of business licence. Essentially, if you do not pay VAT on it, you do not pay a business licence on it.”

TOP US GOVT FINANCIER SET TO VISIT BAHAMAS THE head of the US government’s development finance institution will visit The Bahamas next week to explore investment opportunities in energy and other sectors. David Bohigian, the Overseas Private Investment Corporation’s (OPIC) acting president and chief executive, will also visit Jamaica, Haiti, the Dominican Republic and St Lucia during his May 19 to 22 sweep of

the Caribbean. These are the countries whose leaders were previously invited to a private audience with US president, Donald Trump, at his private Florida estate. Besides potential investments, an OPIC statement said the visit is designed to strengthen relationships with countries that are key partners with the US “in fostering stability and security in the Western Hemisphere”. Mr Bohigian and his delegation will meet

with senior government officials and business leaders during the trip. “At a meeting in March with Caribbean leaders to discuss trade, energy investment and security concerns, President Trump reaffirmed the US’ commitment to working with its partners in the region to foster economic growth, counter predatory investment practices, and strengthen security co-operation,” OPIC added.

INSOLVENCY ASSOCIATION TO DISCUSS LEGAL REFORM THE Restructuring and Insolvency Specialists Association (RISA Bahamas) is to host a roundtable discussion on proposed changes to this nation’s insolvency legislation. The event, featuring a selection of industry experts, will be held on May 30 at the British Colonial Hilton. The discussion will focus on the Companies Winding-Up Amendment Act 2011; the Companies Liquidation Rules; the International Commercial Arbitration Bill 2018; the

Arbitration (Amendment) Bill 2018; the Bankruptcy Act 1870; and the Bankruptcy Rules 1876. The panelists include Brian Moree QC (McKinney, Bancroft & Hughes); Philip C Dunkley QC (Higgs & Johnson); John Delaney QC (Delaney Partners); Brian Simms QC (Lennox Paton); Ed Rahming (Intelisys Bahamas); and Igal Wizman (Ernst & Young). The Panel will be moderated by Sophia Rolle-Kapousouzoglou

(Lennox Paton). This event will bring together RISA Bahamas members and other executives. Sponsors include PricewaterhouseCoopers (PwC) and Providence Law. Zelma Wilson, RISA Bahamas’ founding director, said: “The Board of Directors of RISA Bahamas is excited to host the first roundtable event of this nature with a focus on legislative reform, as this is a pivotal catalyst in

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BTVI CHIEF MEETS WITH US OFFICIAL

A US government official met with the Bahamas Technical and Vocational Institute’s (BTVI) president just a day before a scholarship programme was reinstated for Bahamians. Caroline Casagrande, deputy assistant secretary for academic programmes in the US Department of State’s Bureau of Education and Cultural Affairs, paid a courtesy call on Dr Robert W Robertson prior to the

announcement that the Fulbright programme would be reinstated. The programme, which promotes international goodwill through the exchange of students in the fields of education, culture and science, was introduced to The Bahamas in 1996. Dr Robert W Robertson is an alumnus of the Fulbright programme. Shown seated from left are BTVI’s president, Dr Robert W Robertson;

Ms Casagrande and the US Embassy’s public affairs officer, Penny Rechkemmer. Standing from left are: US Department of State special assistant of academic programmes, Ingrid Specht; BTVI’s dean of student services, Racquel Bethel; BTVI’s associate vice-president of academic affairs, Leroy Sumner; and director of the US Embassy’s international narcotics and law enforcement affairs, Jamie Martin.

PAGE 4, Friday, May 17, 2019

THE TRIBUNE

‘Drastically shrinking’ middle class market FROM PAGE ONE

Bahamian market is still struggling,” he told this newspaper. “Any time you see prices over $450,000 you’re seeing resistance. The foreign market is strong, but I don’t see the Bahamian market really recovering. “I think Bahamians are nervous, and we’re still seeing some downsizing continue in the banking industry. You’re trying to find the persons that can afford real estate. The single person with a child can’t afford it, and that’s probably 50 percent of the demographic unfortunately.” Mr Kinsale added that he did not “really have the answer”, but with construction costs continuing to rise suggested that the government may have to explore more tax breaks and concessions to incentivise Bahamians and make the burden of real estate ownership a little easier. “It’s just not there right now,” he added. “They just need to do something. It’s the ability to qualify and afford a home over $450,000. The market shrinks drastically over $450,000. Who can afford

something over that price? The mortgage is $3,000 a month, so you need to be earning $7,000-$8,000 a month and $100,000 a year. It starts getting tight for sure. “I also think you’re going to see prices increase in The Bahamas. Construction has gotten expensive in The Bahamas. A lot of new developments in The Bahamas are at the $900 per square foot price point and up. The market in the US is quite buoyant, so construction materials in North America have increased. That seems to be the trend right now.” While “bad” commercial bank loans dropped to under $800m at endJanuary 2019, falling to their “lowest levels for ten years”, the industry remains skittish about mortgage lending given how badly it has been stung in the decade since the 2008-2009 recession. Only the most qualified borrowers, able to put down 20-30 percent equity upfront, are being considered. Many salaries and incomes also have yet to fully recover despite recent signs of a Bahamian economic rebound, with existing personal and household debt levels often

cited as a key factor for why Bahamian commercial banks are rejecting up to 50 percent of mortgage applicants. Mr Kinsale said his latest project, the 16-unit Baron Place located just south of Super Value’s Cable Beach store, is priced at $389,000 per property in a deliberate bid to “get it to a Bahamian market” by keeping costs below $450,000. He added that ten of the units had been sold within two months of going to market. The Aristo chief, meanwhile, said few units were left at his ONE Cable Beach and THIRTY-SIX projects, both of which have been targeted at an international buyer clientele as opposed to the domestic market. “At ONE Cable Beach we’re 98 percent sold out,” he told Tribune Business. “We’re in great shape there. We only have two units left out of 73. At THIRTY-SIX people are moving in now. We have nine units out of 36 remaining there. “Overall we’re doing quite well. We’re seeing buyers from Canada, Europe, America. There’s still a lot of demand for residency. That seems to be high on everybody’s

PUBLIC NOTICE

LEGAL NOTICE

NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, VANDAL LEANDER LOUIS of #99 Coral Reef Blvd. 3rd section, Freeport, Grand Bahama, Bahamas intend to change my name to VANDAL LEANDER TURNQUEST. 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.

POSITION AVAILABLE

priority list. The reality is you can’t get it for under $750,000, but that hasn’t created any issues for us.” Mr Kinsale said duplex lots priced at $250,00 are still available at his original development, Balmoral. “We’re almost done there,” he added. “It’s nice to get out of those projects. In real estate you have to start, finish and get out. If it takes too long you never benefit. That’s the nature of the beast. “We have a product we can be proud of. We were lucky we were able to get higher prices; between $900 to $1,300 a square foot at ONE Cable Beach, and I think we’re about $850 a square foot at THIRTY-SIX. We’re not on the beach there.” Moving forward, Mr Kinsale said: “My biggest concern is we’re getting into a shortage of buildable, available land. I think that’s one of the concerns we have. When you look closely there are not a lot of properties you can build on that are viable - not in ideal locations. That’s my concern: How do you build the GDP of the country if you do not have land to build on?”

INTERNATIONAL BUSINESS COMPANIES ACT (No.45 of 2000) In Voluntary Liquidation Notice is hereby given that, in accordance with Section 138 (4) of the International Business Companies Act, (No.45 of 2000), OEDF INVESTMENT FUND LTD. (the “Company”) is in dissolution. The date of commencement of the dissolution is 10th May, 2019. Luciane Ribeiro Moreno is the Liquidator and can be contacted at Rua Afonsa Braz, 747, AP 41D, Vila Nova Conceição, CEP 04511-011, São Paulo – SP, Brazil. All persons having claims against the above-named Company are required to send their names, addresses and particulars of their debts or claims to the Liquidator before 10th June, 2019. Luciane Ribeiro Moreno Liquidator

Cardiac Catheterization Laboratory Technician

NOTICE NALON INVEST NOTICE is hereby given as follows:

At least 2 years experience Flexible hours

Contact Ms. Carey 242-502-9676 E-mail: Info@tmp_bahamas.com

(a)

Nalon Invest Ltd. 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 when the Articles of Dissolution were submitted to and registered by the Registrar General of the Common wealth of The Bahamas.

(c)

The Liquidator of the said Company is Beatus Limited, P.O. Box N7776-348, N.P., Bahamas. Dated 15th day of May, 2019. Beatus Limited Liquidator

Private equity venture eyes ‘$100m-$200m opportunities’ FROM PAGE ONE paid on graduating small businesses to become medium-sized or even larger companies. That is typically where private equity/venture financing comes into play in developed countries, with pooled investor capital taking ownership positions in companies in a bid to generate higher profits and returns. This sometimes involves major corporate turnarounds, and the installation of new management teams to effect the desired revival. This is the space Benchmark (Bahamas) is now seeking to fill with its new subsidiary, and Mr Brown yesterday said it was open to following the typical private equity model of exiting investments via IPOs to public investors. “We’re looking to put risk capital into mature and stable businesses in The Bahamas that are looking for fresh capital investment,” he reiterated. “Some that are larger in size have not migrated into a 21st century environment, and are looking at a transition in ownership and looking for investment to come and take the business over, and give it management, direction and capital. “We think they exist in the economy at the moment. With the right management and capital we think they’ll thrive. We’ll eventually look at taking them public if the situation warrants. That will be our strategy as well. Own it, put capital into it, fix the business and position it so that the public can participate with us. We’ll take the initial risk.” The proliferation of family-owned businesses in The Bahamas, a number of which have succession issues, also creates potential for a private equity/venture capital-type operation. But not all such takeovers have succeeded, BSL Holdings’ disastrous acquisition of City Markets being one of the most prominent failures. Benchmark Ventures lost $497,781 during 2018, which Mr Brown attributed to having to “put a lot of money into it last year to get it going”. Benchmark (Bahamas) had some $4.279m in cash on its balance sheet at year-end, with assets exceeding liabilities by a net $11.191m. The unit’s creation was part of a wider Benchmark (Bahamas) restructuring that has resulted in the BISX-listed entity becoming a holding vehicle, with “all the assets” shifted down into its various subsidiaries which will function as the operating, income generating ventures for the publicly-traded parent and its shareholders. These subsidiaries include two Class 1 broker/ dealers, Benchmark Advisors and Alliance

Investment Management. Mr Brown explained that the former, which is BISX broker/dealer member, will be the entity through which all trades will be executed on behalf of both Bahamian and international clients. Alliance, meanwhile, will function as the Benchmark group’s “administrative” broker responsible for vetting all clients, seeking out new business, opening accounts, compliance and taking/placing orders for execution by Benchmark Advisors. Through its software investments, Mr Brown said the group aimed to provide a platform through which clients of registered investment advisers and non-Class 1 broker/dealers could place and execute trades. “One of the sticking points in the local market is raising capital to be a Class 1 broker/dealer,” he told Tribune Business. “It takes $300,000 of capital. One of the strategies is to set up that broker/dealer [Benchmark] up to trade for the group and have other licensed, registered investment advisers who have clients trade through us. We’re setting up a platform to do that “It’s going to be seamless and very, very sophisticated. We hope to launch that by the third quarter.” Benchmark (Bahamas) real estate arm last year invested $70,000 to acquire a bedroom unit in the GoldWynn project at Goodman’s Bay as it seeks higher yielding capital returns than those presently available on bank deposits. Mr Brown added that lease renewal negotiations for the two anchor tenants at its Carmichael Commercial Centre, Bank of The Bahamas and the NUA insurance agency, were set to begin in two to three weeks. Suggesting that the process would be relatively smooth, he told Tribune Business: “There’s potentially more revenue streams coming in as we renew those leases. Things on Carmichael Road are very, very hot, and it’s one of the prime places in the country to run a business. “This is the third time of renewal. We’re pretty comfortable with each other. We know what the market is. We’ve been leasing space for the last 12 months so we know what the price per square foot is and believe they understand that number.” Benchmark (Bahamas) generated a $188,703 profit for the 2019 first quarter compared to a net of $268,631 for the same period in 2018, with all subsidiaries contributing positive earnings. The parent is still providing a guarantee for Alliance to operate as a going concern following previous losses.

INSOLVENCY ASSOCIATION TO DISCUSS LEGAL REFORM FROM PAGE THREE

developing The Bahamas’ insolvency and restructuring sector, and necessary for us to remain relevant amongst the progressive financial services centres within our region.’’ RISA Bahamas is a local professional body for those practicing restructuring and insolvency. It is a professional industry association of the Bahamas Financial Services Board (BFSB), as well as a member association of the International Association of Restructuring, Insolvency and Bankruptcy Professionals (INSOL). INSOL is a worldwide federation of national associations for accountants and attorneys who specialise in turnaround, restructuring and insolvency, and have over 10,000 members globally.

THE TRIBUNE

Friday, May 17, 2019, PAGE 5

BISX-listed Fund: ‘much changed’ if vacancy cut 50% FROM PAGE ONE overall market for highend commercial properties, dubbed “Class A”, would “blow into our buildings” over the course of 2019. “We are in discussions with a couple of companies where hopefully we are getting closer to formal leases in the Financial Centre,” he told Tribune Business. “We hope to finalise that before the end of the second quarter and, if not, it will move into the third quarter. “I was thinking [they will take] in the region of 20,000 square feet. If we succeed with both of those, it could be 30,000 square feet. We’re in the late stage of negotiations, but between 20,000 to 30,000 square feet would

be the hope. “If we get the rental of those properties sorted out, the second half of the year will be significantly better. I’m hopeful that by the end of 2019 the position will have changed quite a bit from where it was at the end of 2018.” The Bahamas Property Fund enjoyed a near-$5m improvement to its bottom line for the 12 months to end-December 2018, with the prior year’s $699,384 net loss converted to a $4.232m profit. However, this was entirely due to a positive $6.15m swing on the valuation of its three properties, which enjoyed a collective $4.3m “net fair value gain” compared to the prior year’s $1.85m loss.

Mr Anderson conceded that the upward valuations, which were $2.3m at the Bahamas Financial Centre and $1m each at both its One Marina Drive and Providence House properties, had resulted from an overall improvement in “Class A” property rental rates and occupancies rather than anything that happened at the Fund’s three properties. “We’re trying to pick it back up and move forward,” he told Tribune Business of the Property Fund, “after it stalled since 2008. The recession came and we started losing tenants at both the Financial Centre and One Marina Drive, and it’s been a while before it started to pick up. “We’ve seen an

improvement in Class A properties, and the impact of that should start to blow into our buildings from a general market perspective, and if we close those tenants that will be a specific help to it. The market seems to be moving forward, and we’re starting to see more activity.” Mr Anderson said RoyalFidelity’s lease of Providence House had already impacted the Fund’s 2019 first quarter results, boosting rental income while simultaneously cutting CAM costs that the latter previously had to pick up when the property was vacant. This had generated $450,000 in “cumulative value” for the fund, with the latest results also taking

into account the $1.4m invested in the building by RoyalFidelity and its knock-on impact on the valuation. “The disappointing part of 2018 was from a cash flow perspective because we had this building [Providence House] vacant for the entire year, and increased CAM costs were incurred to refurbish the building that were largely picked up by the fund as only 25 percent was occupied,” Mr Anderson explained. “We had 40 percent vacancies in the other two buildings, and the cumulative effect of the CAM costs was massive. Net cash flow to the company ended up being negative but with the rental of the Providence House space that

will get addressed. “If we’re able to rent more space at the Financial Centre that will improve the financial position, cash will be produced, and we’ll move forward positively from a cash flow perspective.” Mr Anderson said the Property Fund was still hunting potential acquisitions, and had held recent discussions over its proposed downtown Nassau parking garage in a bid to obtain the necessary space. He added that quotes were being supplied for the roof-top solar project earmarked for the Bahamas Financial Centre, with that initiative set to move forward in the 2019 second half.

BISX seeks share US, European officials bring in each listed firm charges in global malware case FROM PAGE ONE

disclosures via its website “news wire”, eliminating the need to use the newspapers. “The thinking is to make it easier for people to meet their requirements,” Mr Davies added. “We’re trying to make things faster, cheaper and more digital.” He told Tribune Business that the requirement for BISX to be provided with a share in each of its listed issuers was something other exchanges had done to ensure they could monitor the timeliness and content of disclosures to investors and the wider capital markets. “We’ve seen in some jurisdictions that they hold a share in the companies,” Mr Davies said. “It puts the exchange in the flow of information that a company puts out. The company sometimes tells us what it’s going to do, but we’re not part of the sending and delivering process.” BISX, explaining the rationale behind the proposal, said: “BISX needs to be able to more effectively monitor company com-

munications with their shareholders to ensure that companies meet their regulatory responsibilities. “The best way to accomplish this is to put the exchange in the same position as any other shareholder through the exchange becoming a shareholder and receiving all shareholder communications under the same terms as other shareholders. Such shareholding would be de minimis and the share will not be voted by the exchange at any general meetings of shareholders.” The changes also expand the penalties available to BISX should any exchange users break market rules. It said: “The current penalty options limit the avenues that the exchange can take with regards to regulatory actions in response to contraventions of the BISX Rules.” “Given that we’re regulators for the market and the first line that interacts and deals with companies, the intent is that we have adequate remedies to deal with certain infractions of the rules,” Mr Davies explained.

WASHINGTON Associated Press

TEN people, including five Russian fugitives, have been charged in connection with malicious software attacks that infected tens of thousands of computers worldwide and sought to steal $100m from victims, US and European authorities announced yesterday. The malware enabled criminals from Eastern Europe to take remote control of infected computers and siphon funds from victims’ bank accounts, and targeted companies and institutions across all sectors of American life. Victims included a Washington law firm, a church in Texas, a furniture business in California, a casino in Mississippi and a Pennsylvania asphalt and paving business. Several defendants are awaiting prosecution in Europe, and five are Russians who remain fugitives in that country. An 11th participant in the conspiracy was extradited to the United States from Bulgaria in 2016 and pleaded guilty last month in a related case in federal court in Pittsburgh, where yesterday’s

indictment was brought. Though the Justice Department has pursued multiple malware prosecutions in recent years against foreign hackers, this case stands out as a novel model of international collaboration, said Scott Brady, the US attorney in Pittsburgh. Instead of seeking the immediate extradition of all ten defendants — an often cumbersome process that

can take years of negotiations, even in countries that have treaties with the US — American authorities shared evidence with their European counterparts to allow officials in Ukraine, Moldova and Georgia to initiate prosecutions in the nations where the defendants reside. “It represents a paradigm change in how we prosecute cybercrime,” Brady said in an interview with The

Associated Press before a news conference in The Hague with a coalition of a half-dozen countries. Cybercrime networks “are increasingly targetable” when investigators work together, Robert Jones, the FBI special agent in charge of the Pittsburgh office, said at the news conference. “International co-operation is no longer a nicety, it’s a requirement,” he said.

PAGE 6, Friday, May 17, 2019

THE TRIBUNE

2020 HOPEFUL INSLEE SAYS $9T CLIMATE PLAN WILL BOOST ECONOMY By BILL BARROW Associated Press DEMOCRATIC presidential candidate Jay Inslee is pitching a $9tnplus climate action plan that he touts as an economic renaissance and scientific necessity, putting the Washington governor at the forefront of White House hopefuls pushing for sweeping action to combat the causes and effects of a warming planet. Inslee compares his “Evergreen Economy” plan, which combines public and private spending, to President Franklin Roosevelt’s New Deal, the mobilisation of the US manufacturing base during World War II and the 1960s NASA mission to reach the moon. “We didn’t go to the moon because it was easy, but because it was hard,” Inslee told The Associated Press ahead of the release of his 38-page plan yesterday. “We need a common purpose ... that meets the

DEMOCRATIC Presidential candidate Washington Gov Jay Inslee speaks during an event at the Blue Plains Advanced Wastewater Treatment Plant in Washington yesterday during an event where he unveiled part of his plan to defeat climate change. Photo: Susan Walsh/AP scientific necessity.” Inslee’s proposal comes as some Democrats on Capitol Hill push a Green New Deal with a similar focus, but the former congressman, who has spent decades as a leading advocate for combating rising carbon levels, is seeking to carve out his own path on the issue.

PUBLIC NOTICE

The plan would marshal 28 new or existing programmes to shift US energy markets from fossil fuel dependence to renewable sources; transform US automobile manufacturing and construction practices; and remake the nation’s infrastructure from public transit to municipal water and rural electric co-operatives.

Inslee projects about $300bn in annual government spending over the first decade of the plan, with incentives he says will generate about $600bn in matching private-sector investment in such areas as expanding solar energy and rebuilding dilapidated water systems like the Flint, Michigan, infrastructure

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

NOTICE

The Public is hereby advised that we, JOHNELL HUMES and MICHAEL ALLEN SR., of Pinder’s Point, Freeport, Grand Bahama, Bahamas, parents of ANTHONY JUSTIN FEASTER, a minor, intends to change his name to MICHAEL ALLEN JR. 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.

NOTICE is hereby given that ARI EPHRIAM WEISSFISCH of Columbia Road, Lyford Cay, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 17thday of May, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

The Public is hereby advised that I, AMANDA VANISHA JOHNSON, of New Providence, Bahamas, mother and legal guardian of TYESHA TAJHA JOHNSON, a minor, intends to change my child’s name to TYESHA TAJHA RAHMING. 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.

NOTICE is hereby given that LEON J. LAROSE of Carmichael Road, Butlers Way, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 17thday of May, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

MARKET REPORT www.bisxbahamas.com

(242) 323-2330

THURSDAY, 16 MAY 2019

(242) 323-2320

ALL SHARE INDEX: CLOSE: 2,145.27 | CHG: 7.10 | %CHG: 0.33 | YTD: 35.82 | YTD%: 1.70 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 20.91 7.00 5.50 2.50 2.00 3.35 11.00 6.16 4.64 12.50 2.74 1.96 9.02 7.00 15.60 7.25 4.05 14.00

52WK LOW 3.50 19.17 4.90 3.50 1.00 0.19 2.00 8.89 6.12 3.54 10.00 2.35 1.60 7.25 6.10 10.60 6.20 3.01 12.51

PREFERENCE SHARES 1000.00 1000.00 1000.00 1000.00

1.00 103.00 100.00 100.00 105.00 103.00 100.00 10.00 1.01

1000.00 1000.00 1000.00 1000.00

1.00 100.00 100.00 100.00 100.00 100.00 100.00 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 Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Fidelity Bank Class A Focol Class B

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

E J K L M N

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

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 ##########

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

CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL 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)

LAST CLOSE 4.15 17.43 6.00 5.40 2.50 1.98 2.22 10.94 6.16 4.28 10.00 2.80 1.85 9.30 7.00 15.25 7.25 3.33 14.00

CLOSE 4.15 17.43 6.00 5.40 2.50 1.98 2.22 10.94 6.16 4.28 10.00 2.70 1.85 9.32 7.00 15.25 7.25 3.49 14.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.10 0.00 0.02 0.00 0.00 0.00 0.16 0.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 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

CHANGE 0.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.00 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 0.00

LAST SALE 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

VOLUME

820 2,000 7,500 524

1,200

VOLUME

EPS$ 0.167 0.932 -0.306 0.323 0.098 0.000 -0.431 0.708 0.480 0.154 0.627 0.102 0.209 0.000 0.636 0.834 0.950 0.205 0.631

DIV$ 0.130 1.260 0.000 0.240 0.000 0.020 0.000 0.710 0.220 0.120 0.620 0.068 0.060 0.328 0.240 0.500 0.200 0.090 0.600

P/E 24.9 18.7 N/M 16.7 N/M N/M -5.2 15.5 12.8 27.8 15.9 26.5 8.9 N/M 11.0 18.3 7.6 17.0 22.2

YIELD 3.13% 7.23% 0.00% 4.44% 0.00% 1.01% 0.00% 6.49% 3.57% 2.80% 6.20% 2.52% 3.24% 3.52% 3.43% 3.28% 2.76% 2.58% 4.29%

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 Prime + 1.75%

MATURITY 19-Oct-2022

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%

############### 30-Jul-2018 ############### 30-Jul-2020 ############### 30-Jul-2022 ############### 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022

YTD% 12 MTH% 0.32% 3.95% 0.62% 3.20% 0.69% 2.56% 2.06% 4.97% 4.52% 0.96% 1.15% 4.41% 0.59% 4.31% 0.92% 4.16% 2.79% 4.80% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69% -0.71% 0.16% 7.40% 2.70% 10.20% 1.30%

NAV Date 31-Mar-2019 31-Mar-2019 29-Mar-2019 31-Mar-2019 31-Mar-2019 31-Mar-2019 31-Mar-2019 31-Mar-2019 31-Mar-2019 28-Feb-2019 28-Feb-2019 28-Feb-2019 28-Feb-2019 28-Feb-2019 28-Feb-2019 30-Mar-2019 30-Mar-2019 30-Mar-2019

MUTUAL FUNDS 52WK HI 2.22 4.27 2.05 188.32 158.55 1.61 1.75 1.70 1.14 6.99 8.54 6.15 10.52 11.46 10.46 10.00 8.69 11.79

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.55 1.68 1.64 1.08 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 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 Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

NAV 2.22 4.27 2.05 188.32 154.49 1.61 1.75 1.70 1.14 7.54 8.73 6.65 10.66 11.79 10.48 9.92 8.68 11.38

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

that has garnered national headlines. Among Inslee’s ideas are a ReBuild America program that would help retrofit existing public and private structures to meet new energy standards and a new version of the postWorld War II “GI Bill” targeted to help coal industry workers who lose jobs in a transition to renewable energy. The coal worker aid would include guarantees for health insurance and pension benefits, in addition to funds for career training. Inslee and his aides note that many of the ideas stem from public and private initiatives already being undertaken in cities and states around the country. Aides say Inslee plans a series of events highlighting some of those efforts. He appeared yesterday at a wastewater treatment plant in Washington, DC, that uses thermal hydrolysis to convert wastewater into electricity. Inslee already had called for setting standards that would require the nation’s entire electrical grid and all new vehicles and buildings to be carbon pollution free by 2030, while phasing out all coal-fired power by 2035. His latest proposal adds additional goals, attaches a price tag and details how the federal government would meet them. “There is no middle ground on climate,” Inslee said, alluding to recent reports that former Vice President Joe Biden, a Democratic presidential front-runner, might pursue a more limited approach to combat the

effects of increasing carbon dioxide levels in Earth’s atmosphere. Biden has pushed back on those reports and promises to unveil his climate-change platform in the coming days, the first of what his aides say will be a series of major policy proposals. Another 2020 presidential candidate, former Texas Rep Beto O’Rourke, has offered a climate policy that calls for $5tn of public and private spending over a decade. O’Rourke does not call for as aggressive a timeline as Inslee has for reducing carbon emissions. Inslee acknowledges that getting such sweeping proposals through the existing Congress is a near impossibility. Inslee’s own historical references — FDR’s New Deal and World War II mobilization, John F Kennedy’s NASA investments — all occurred when Democrats had controlling majorities in Congress. In FDR’s case, New Deal programs were passed using large Democratic advantages. Democrats today must contend with a Republican Senate, and they face an uphill battle to flip enough seats in 2020 to reclaim the majority. Senate Majority Leader Mitch McConnell, meanwhile, has declared himself “the Grim Reaper” and promised to block policies he dismisses as socialist. Even Democratic House Speaker Nancy Pelosi is an open skeptic of the Green New Deal resolution pushed by progressive favorite and freshman Rep Alexandria Ocasio-Cortez.

NOTICE

NOTICE is hereby given that CHARLICIA GIBSON of Yeoman Woods, Freeport, Grand Bahama, 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 17th day of May, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that GEORGES MICHAEL LAMOUR of Chippingham, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 15th day of April, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that JOANNA SIMEON of #122 Coral Fish Street, Freeport, Grand Bahama, 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 10th day of May, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that KENSON TIMOTHEE of Infant View Road, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 17thday of May, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

THE TRIBUNE

Friday, May 17, 2019, PAGE 7

Economic sanctions on Huawei could backfire on US firms By FRANK BAJAK Associated Press THE Trump administration’s decision to restrict all US technology sales to Chinese telecommunications powerhouse Huawei for national security reasons doesn’t just up the ante in the China trade war. It’s also bound to hurt US suppliers and accelerate Beijing’s drive toward greater technological independence. The White House issued an executive order on Wednesday apparently aimed at banning Huawei’s equipment from US telecom networks and information infrastructure. It then announced a more potent and immediate sanction that subjects the Chinese company to strict export controls. The order took effect yesterday and requires US government approval for

all purchases of US microchips, software and other components globally by Huawei and 68 affiliated businesses. Huawei says that amounted to $11bn in goods last year. Commerce Secretary Wilbur Ross said yesterday in an interview with Bloomberg TV that the sanctions are “not really a part of the trade negotiation” but added that they could be reversed should Huawei no longer be deemed “a significant danger” to US national security. The US government has long insisted that equipment from suppliers including Huawei poses an espionage threat because it is legally beholden to China’s ruling party. But US officials have presented no evidence of any Huawei equipment serving as intentional conduits for espionage by Beijing. About a third of

PRESIDENT Donald Trump speaks during a meeting in the Oval Office of the White House, in Washington. Trump issued an executive order on Wednesday apparently aimed at banning equipment from Chinese telecommunications giant Huawei from US networks. It does not name specific countries or companies and gives the Department of Commerce 150 days to come up with regulations. Huawei’s suppliers are American including chip makers Broadcom, Qualcomm and Intel. Ironically, many of the computer chips, memory and other components it gets from US companies are made in China, said Roger Entner, founder of telecom research firm Recon Analytics. The company’s flagship smartphone, the Mate 20 Pro, includes chips made by Skyworks Solutions Inc. and a wireless receiver made by Integrated Device Technologies, both US companies. Neither company responded immediately to requests for comment. A Qualcomm spokeswoman said the company had no comment. Kevin Wolf, who was assistant secretary of commerce for export administration under President Barack Obama, described the impact of the US sanctions as “massive”. He said they would have “ripple effects through the entire global telecommunications network”. If Huawei “can’t get the

widget or the part or the software update to keep functioning, then those systems go down,” said Wolf, a partner at the Washington law firm Akin Gump. Huawei issued a statement yesterday calling the move “in no one’s interest”. “It will do significant economic harm to the American companies with which Huawei does business, affect tens of thousands of American jobs, and disrupt the current collaboration and mutual trust that exist on the global supply chain,” the company said. Huawei is already the biggest global supplier of networking equipment, and Entner said it is poised to overtake Samsung as the number one smartphone manufacturer. He said Huawei is now apt to move toward making all components domestically. China already has a policy seeking technological independence by 2025 and Entner said Huawei has its own mobile processors and chips. The restrictions would also bar Google from

licensing value-added components and services of its Android operating system, which Google gives away for free to use on Huawei and other smartphones. Entner said Huawei would likely be forced to ship its smartphones outside China with a stripped-down Android version used inside China. That package is missing Google’s maps software and its Play Store, from which users buy and download apps, meaning Google could lose revenue. Google officials did not immediately respond to a request for comment. While the export controls could keep US technologies away from Huawei, the separate executive order could effectively ban imports of Huawei products into the US. That order declares a national economic emergency that empowers the government to ban the technology and services of “foreign adversaries” deemed to pose “unacceptable risks” to national security — including from cyberespionage and sabotage.

Huawei vehemently denies involvement in Chinese spying and said blocking it from doing business in the United States would hamper the introduction of next-generation 5G communications technology. Huawei is a world leader in 5G, and Entner said Huawei’s 5G devices use domestically produced technology, meaning they don’t need US components. Huawei said the measure would instead limit US companies and consumers to “inferior yet more expensive alternatives”. European nations have resisted US entreaties to ban the company’s equipment from their 5G networks. The leaders of Germany and the Netherlands made it clear yesterday that they don’t plan to change their stance in light of the newly announced US measures. All major US wireless carriers and internet providers swore off Chinese-made equipment years ago, following a 2012 report by the House Intelligence Committee that said Huawei and ZTE, China’s number two telecoms equipment company, were enablers of Beijing-directed espionage. Last year, Trump signed a bill that barred the US government and its contractors from using equipment from the Chinese suppliers. Huawei’s smartphones are virtually nonexistent in the US, and last week the FCC rejected a Chinese phone company’s bid to provide domestic US service . Huawei says it supplies 45 of the world’s top 50 telecommunications companies. But only about two percent of telecom equipment purchased by North American carriers in 2017 was made by Huawei.