05192022 BUSINESS

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WEDNESDAY, MAY 18, 2022

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BOB shedding ‘haunted’ past with 20% growth goal for ‘23

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Bank of The Bahamas top executive yesterday asserted it is moving beyond the bail-outs that “will forever haunt” the institution with predictions it will grow this year’s forecast $7m profit by a further 20 percent in 2023.

Kenrick Brathwaite, the BISX-listed institution’s managing director, told Tribune Business it is now “on a good wicket” and close to being “comfortable” that it can generate sustained profitability on an annual basis after generating $5.806m in net income during the three months to end-March 2022.

That represents a morethan $7.4m reversal from the $1.614m net loss incurred in the same quarter just 12 months prior, and he voiced optimism that by the time Bank of The Bahamas’ 2025 financial year begins in July 2024 it will be poised “to compete on a level playing field with any bank in the country”.

Based on the institution’s nine-month performance, with the third quarter having wiped out a minor first-half loss to leave profits at $5.637m, Mr Brathwaite predicted that Bank of the Bahamas - which is 82.6 percent majority-owned by the Government via the National Insurance Board (NIB) and Public Treasury

- will generate full-year profits that finish “north of $7m”.

And, given that the Central Bank and International Monetary Fund (IMF) are projecting 4 percent economic growth for The Bahamas next year, combined with a continued tourism recovery, he revealed that the publiclytraded bank is targeting a further 20 percent bottom line expansion during the financial year that closes at end-June 2023.

Hitting those two goals will require Bank of The Bahamas to produce a near$1.4m net profit during the three months to end-June 2022, when its financial year SEE PAGE FOUR

SHED TAX HAVEN LABEL FOR DIGITAL ASSETS WIN

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Bahamas will lose its position as a digital assets leader and the potential economic “upswing” if it fails to shed its ‘tax haven’ label, a Bahamian financial services provider warned yesterday.

Paul Moss, Dominion Management Services’ president, told Tribune Business that while crypto currencies, blockchain technology and other digital asset forms represent a potential saviour and game changer for the Bahamian financial services industry the opportunity if this country did not get its taxation house in order.

While shrugging off the recent crypto value crash as part of a typical market cycle, he added that The Bahamas needed to preserve its position by getting “ahead of the game”

and implement a low-rate corporate income tax that would eliminate perceptions that this nation remains a so-called ‘tax haven’.

With the G-7 and major industrialised countries pursuing the adoption of a global minimum 15 percent corporate tax rate, targeted only at large multinationals initially, Mr Moss voiced fears that The Bahamas by failing to enact tax reforms to suit its own needs - will give the likes of the Organisation for Economic Co-Operation and Development (OECD) the chance to drive it out of the digital assets space.

“Fundamentally it comes down to how we promote ourselves and present our taxation system,” he told this newspaper. “It appears to me that we’re not prepared to address that issue. We could have all the players, and all the grand games, all of the attractive products, but until we

address the issue of taxation we will not see the benefit of an upswing in financial services in the country.

“We don’t seem prepared to do so.

We could have the most sexiest products but, at the end of the day, be caught out. We have the opportunity to be ahead of the game. We need to address the issue of corporate income tax in the country to move The Bahamas from being a low tax, offshore, zero tax country to being a low-tax country.

“If we do that we will have a chance, but if we continue to act as we have been for many years, we know what is going to happen, no question about it. I think if we address it, it will certainly help the country. But we don’t seem to have the will and foresight to make these decisions ahead of time for ourselves so that we’re not forced by someone from the alphabet groups SEE PAGE EIGHT

WATER & SEWERAGE SUPPLIER EYES EXPANSION DESPITE $18.5M DEBT

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Water & Sewerage Corporation’s main supplier is eyeing potential expansion possibilities on New Providence notwithstanding the $18.5m debt that the state-owned utility continues to owe it.

Senior Consolidated Water executives, in a recent conference call with Wall Street analysts to discuss their 2022 first quarter results, disclosed that the Water & Sewerage Corporation’s desire to “take every gallon we can produce” from its main Blue Hills reverse osmosis plant indicates there may soon be a need for more production capacity as the Bahamian economy continues to rebound from the COVID-19 pandemic.

Suggesting that new or expanded reverse osmosis plants at both Blue Hills and its other site, Windsor, Rick McTaggart, Consolidated Water’s chief executive, said: “We anticipate

our bulk business will continue its very stable and profitable performance, and with the return of tourists to The Bahamas and significant economic activity, we see new potential opportunities to expand that business as water demand grows in New Providence and the Family Islands.”

BISX-listed Consolidated Water, in its results for the three months to endMarch 2022, revealed that the volume of water it supplied to the Water & Sewerage Corporation during the period had increased by 6 percent year-over-year compared to the same period in 2021.

Asked by analysts to provide more details on The Bahamas opportunities, Mr McTaggart added: “The Blue Hills plant is producing pretty much at full capacity. We see the growth potential there as significant. It could involve expanding those plants at some point.

“The Windsor plant, which is the newest one there, we have a little bit of additional capacity to get out of

that by doing some modifications, but once we get past that level you’re talking about new plants.....”

David Sasnett, Consolidated Water’s chief financial officer, then added of the Water & Sewerage Corporation: “They’re taking every gallon we can produce at Blue Hills. We’re producing more than ever before for them and have similar demand for Windsor, so we’re hoping that if things continue down this road we’ll have a need for more capacity.”

The Blue Hills plant, which is capable of producing 12m gallons of water per day, is contractually obligated to supply the Water & Sewerage Corporation with 63m gallons per week under a deal that runs until March 2032. Windsor, which has capacity to produce 2.8m gallons of water per day, must deliver 16.8m gallons per week.

Mr McTaggart made clear that Consolidated Water not only saw expansion being driven by the economy and tourism’s post-COVID SEE PAGE FIVE

KALIK MAKER: PRODUCT SHORTAGES ‘INEVITABLE’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

KALIK’S manufacturer has continued to warn that product shortages and price

hikes are “inevitable” due to continued supply chain disruptions post-COVID despite generating $1.3min profits for the 2022 first quarter.

Commonwealth Brewery,

the vertically integrated BISX-listed brewer, wholesaler and retailer, said year-over-year comparisons continued to benefit from being up against the prior year’s COVID restrictions

as top-line growth continued to match that enjoyed in the 2021 full-year.

“Commonwealth Brewery continued to experience strong growth in net SEE PAGE FIVE

FNM LEADER MICHAEL PINTARD

GOV’TS ‘FLAT-OUT CONCEALING’ MILLIONS IN CONTRACT AWARDS

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Opposition’s leader yesterday hit back at the Davis administration for “flat-out concealing” millions of dollars in contracts it has concluded since taking office by failing to comply with the Public Procurement Act. Michael Pintard, the Marco City MP and former Cabinet minister, accused the Prime Minister of applying “different sets of rules for others than what he is prepared to abide by himself” when it comes to good governance and transparency and accountability in public life.

Speaking after Philip Davis QC blasted the Minnis administration’s $53m COVID-19 food assistance initiative for poor record-keeping and inadequate controls over how taxpayer monies are used, the Opposition’s leader sought to turn the tables by renewing his assertion that the Prime Minister has “flat-out refused to comply” with the legal requirements of a law that came into force just 15 days before the September 16, 2021, general election.

“Our position is simply that the Government is determined not to follow the law, and in a few instances with the compendium of financial legislation where

they have followed it, it is at their own pace and on their own terms,” Mr Pintard blasted. “I would only say on the record, listening to the Prime Minister, that he has a different set of rules for others than what he is prepared to abide by himself.

“He is unprepared to remove the veil of secrecy because of his unwillingness to comply with the Public Procurement Act and reveal what contracts they have entered into since coming into the Government. He has flatout refused to comply.....

When it comes to removing the veil of secrecy he is woefully lacking and has fallen short.

“They are flat-out concealing who they are entering into business with, the size of the contracts, duration of the contracts they are issuing and, in some cases, they have to end existing contracts to enter into new ones. With whom, for what amounts and for what length of time?

These are things they are obliged to tell the Bahamian people.”

This is not the first time that Mr Pintard has challenged the Davis administration’s compliance with this law. Under the Act, all, government ministries, departments, agencies and stateowned enterprises (SOEs) are mandated to SEE PAGE SEVEN

PAGE 2, Wednesday, May 18, 2022

THE TRIBUNE

THE LOW GROWTH, HIGH DEBT TRAP

By HUBERT EDWARDS

IN THE first article we assessed some of the consequences from a high, and growing, national debt. With The Bahamas’ debt-to-GDP ratio expected to remain above 80 percent over the mid-term at least, the question that dominates is the extent to which this is sustainable. The International Monetary Fund (IMF)

recently concluded that it is. We are, however, aware of the Fiscal Responsibility Act’s requirements to lower this to 50 percent - the Government now targeting the 2030-2031 fiscal year to achieve this. You might ask, if the debt is sustainable, why the IMF arguing for new and increased taxes, and other reforms geared towards reducing the cost of government debt.

Based on the current fiscal

arrangements, The Bahamas’ growth trajectory and taking into account all the debt implications, it is unsustainable. However, the IMF anticipates changes to underlying fiscal arrangements and reforms to support government projections.

High versus sustainable debt For decades, the IMF promoted the idea that a

debt-to-GDP ratio of 60 percent, and annual fiscal deficit equal to 3 percent of economic output, were optimal levels for a country. This argument rests on the theory that acquiring debt generally has a positive impact on GDP. In other words, borrowing leads to growth, all things being equal.

According to the IMF, up to approximately 30 percent of GDP, debt has a positive impact on growth. Beyond this 30 percent mark the positive effect diminishes with each additional dollar of debt until the 56 percent debt-to-GDP threshold is reached. Here, every additional dollar of debt has a negative impact on GDP. Based on this argument, The Bahamas is well within the red zone, and borrowing is largely a negative adventure. How do we reconcile this with empirical evidence that suggests something completely different? Recent data shows that average general government debt in advanced economies is 122 percent of GDP compared to 64 percent for emerging markets.

For many advanced economies, the level of debt is staggeringly high. For those same economies, growth rates are comparatively higher than those enjoyed

by The Bahamas and the wider Caribbean; development is in greater evidence; and the challenges we face to generate growth appears not to be shared by them.

A recent graph captured countries with the highest levels of debt. Japan at 257 percent; Italy at 159 percent; the US at 130 percent; Singapore at 130 percent; France at 116 percent; Spain at 120 percent; UK at 117 percent; Canada at 110 percent; Brazil at 91 percent. And, in our region, Jamaica at 98 percent; The Bahamas at 103 percent (now lower); and Barbados at 138 percent.

A few important issues immediately come to the fore. Why are these countries with high debt burdens thriving when The Bahamas and other small island states are not? Is it appropriate to limit lack of growth to the incidence of debt? What other factors may be driving the inertia, in our case, and the vibrancy in the case of developed nations?

There is evidence that even the IMF is rethinking the benchmarks above.

The performance of countries with debt ratios well beyond 60 percent of GDP gives us reason to pause and rethink not only outcomes but also causes, the effect of high debt and the existence and impact of other factors that contribute to national economic output. In fact, I propose that performance is

HUBERT EDWARDS multi-dimensional and complex, with multiple factors affecting actual outcomes.

Having considered these other countries, The Bahamas unfortunately falls in the grouping where the effects of high debt seem to have greater adverse implications for growth.

Objectively assessed, the high debt level faced by The Bahamas is very challenging. This is normally the case for many small developing states. However, I believe it is important that we disabuse ourselves of the idea that it is the incidence of high debt alone which hurts growth. While instinctively this may seem like an accurate and elegant proposition, evidence suggests there is much more to the relationship of high debt and economic performance.

Ultimately, it is a matter of sustainability and not simply the amount. Let us ask ourselves two questions. First: “What are the consequences of high and growing national debt on the growth and development of the Bahamian economy?” If we were to base our answer on the performance of developed states, it would be reasonable to conclude that The Bahamas could fare well and, in fact, realise vibrant growth just as some of these states do. On the other hand, if the second question is styled: “What are the consequences of unsustainable and growing national debt on the growth and development of the Bahamian economy?”, the responses would take on a very different perspective. We would not be so concerned with the level of debt in absolute terms but, rather, asking at what level is debt sustainable for The Bahamas?

The answer to this is clearly not $10bn. Therefore, as the question currently stands, it is without doubt that the country will not grow and develop with debt at current levels, and which is expected to only increase in the nearterm.

This reframing, however, bring us closer to a new realisation and starts to set us on the path of deconstructing the fundamentals of the debt problem faced

by The Bahamas.

The reframing also leads us to another important

point.

Debt-to-GDP at 60 percent is but a benchmark and, where it signals sustainability, it might be of great value. But where it is either above or below an objective, sustainable level, then it might very well be counter-productive to growth and development. An economy that is not growing, with debt at or below 60 percent ratio, is likely not investing enough. An economy that is unable to afford debt but shoots towards the upper limit of this “safe threshold” is likely to face peril. What is the main point here? We should shift our focus to measures that signal optimal performance rather than absolute benchmarks.

If the IMF position holds, then The Bahamas has a significant amount of work to do to claw itself back to a place where deficit financing is growth generating. The US, our nearest neighbour and largest trading partner, grows consistently with a massive debt-to-GDP. In 2021, the US federal debt was $29.6trn - up $7trn from 2019 - and is projected to grow by over 3 percent. On the other hand, The Bahamas is expected to rapidly revert to its average economic growth of below 2 percent in the near to medium-term.

Even before experiencing current debt levels, The Bahamas did not demonstrate the ability to secure robust growth. It is unlikely to do otherwise in the face of downward pressures exerted by the level of debt on the books. This is one of the major consequences of having unsustainable debt, and the main reason I conclude that the current situation is not sustainable. The historical anemic economic growth must be reversed, but the ability to do so has become more difficult and is worsening. I have consistently suggested that we become more aggressive about growing the economy, take more chances and make bolder moves. The Bahamas should not settle for the current economic construct but must work to expand and enhance what currently exists, diversify and grow.

The Caribbean Context Let us contextualise this issue further. According to a report by the Inter-American Development Bank (IDB), Economic institutions for a resilient Caribbean: “The history of public debt in Caribbean countries is striking. Several countries in the region have been among the most indebted in the world (measured in terms of the public debt-to-GDP ratio) since gaining independence beginning in the 1960s. While economic and debt crises have been common throughout Latin America and the Caribbean over the past century, particularly when compared to other regions, the frequency, depth and duration of such episodes for Caribbean countries makes it an outlier relative to the rest of the world.

“High debt levels within a context of weak public financial management processes have held back growth, incomes and living standards for millions of people… developing countries also tend to suffer from large and persistent public and social infrastructure deficits that act as brakes on private sector investment and productivity growth. Many of these deficits must be addressed with prudent public investment and expenditure, generally requiring governments to borrow both domestically and from abroad.

“So why have Caribbean countries been so indebted and crisis prone?

There are many reasons for these outcomes. It is clear that initial conditions mattered for many of these countries, as the group includes some of the youngest nation-states in the hemisphere, and many were severely lacking in terms of financial and technical resources after gaining independence, amplifying existing vulnerabilities to economic and other shocks.

Caribbean countries are small, open and, in most cases, island economies, making them particularly SEE PAGE FOUR

THE TRIBUNE

Wednesday, May 18, 2022, PAGE 3

Demand leaves chicken farmer short on supplies

AIRLIFT TOP PRIORITY FOR SOUTH ANDROS

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

THE South Andros Chamber of Commerce president yesterday said improving airlift to the island remains the highest priority for its economy.

Joe Rahming told Tribune Business: “Everything over here is fine except the air transportation seems to be the most difficult thing for us.

We only have Western Air three days out of the week.”

The South Andros economy has been slowly “stabilising” since the relaxation of COVID-19 measures, but the Chamber president added: “We have a few young people employed with bonefish lodges, but other than that it could be more employment.

People want to come home to more opportunity, but I hope we get more investments like how Grand Bahama has been getting recently.”

Another South Andros businessman, speaking on condition of anonymity, said: “Right now, there’s only Western Air. We also have Le-Air and Flamingo Air that have been rotating. With the two airlines it has been really slow. Sometimes you’ve been having difficulty with the websites not being up to date or saying that it’s not available.

This makes people question how serious are these airlines, particularly form the visitor’s point of view.”

They added: “If Le-Air and Flamingo Air are going to rotate, then give us some notation or something to let them know to check the other airlines. People are worried about how they are going to get to Andros if one airline is not having any flights coming in. They need to clean that up.

“July, August and September, when you don’t have that heavy traffic, it would be good to get both of the airlines back on track for us given the potential of Andros. We are already impacted as it is in this country by not having sufficient airlines, and we know that traffic has to drive it, but we can’t be putting off the little bit that you have.”

AN ABACO poultry farm yesterday said it is “selling out” of chickens as demand has the farm “running out of supplies every month”.

Lance Pinder, Abaco Big Bird Poultry’s operations manager, told Tribune Business that he was now “trying to expand as we see things happening” in the market. Abaco Big Bird’s progress comes as Clay Sweeting, minister of agriculture, marine resources and Family Island affairs, renewed calls to increase poultry production in a bid decrease The Bahamas’ annual $1bn food import bill.

Mr Pinder, though, said he has

“heard it all before” with governments trying to increase poultry production. However, he believes this time will be different because the current minister “sounds very interested”.

“The Government just needs the political will to do what needs to be done if they want to see the poultry industry grow,” he added, calling for a consistent commercial environment where the rules do not change at every general election. “The Government needs to create an environment where the industry knows what field its playing on, and then let the private industry go from there,” Mr Pinder said.

“Whatever they decide to do they need to make it a long-term policy, and it can’t be every two years that

the duty rate goes down and they do this, that and the other because private businesses can’t operate in an environment like that.”

Agricultural processing investments require significant capital, and investors want to know what to expect and that they are competing in a climate that is fair.

“Obviously, things like hurricanes can happen, but private business needs to know how things function,” Mr Pinder added.

“That’s my biggest thing. It needs to be a set policy where we know where we’re going and we know what we’re dealing with. Consistency always has been one of my biggest complaint,s and not when the minister changes or when the Government changes.

“It’s not like growing a cash

crop like tomatoes, where every three months you are redoing your thing,” Mr Pinder added of the poultry business. “You’re talking about building structures and processes and plants, and a lot of capital intensive infrastructure for a poultry operation.”

The poultry industry is currently facing inflationary pressure in common with all industries. Mr Pinder said everything he imports to run his farm has increased in price, on average, by 10 percent.

“If you look at the US poultry figures, chicken has gone up almost 70 percent in the last year,” he added.

“USDA (US Department of Agriculture) market data was $1.05 a pound, and they’re pushing $1.70 a pound right now, so that’s about a 70 percent increase.”

GOV’T IN POTTER’S CAY FIRE STATION PLAN

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

A CABINET minister yesterday said the Government is exploring the construction of a fire station at Potter’s Cay following the devastating blaze that destroyed six vendors’ stalls last year.

Clay Sweeting, minister of agriculture, marine resources and Family Island affairs, confirmed ahead of the weekly Cabinet meeting that his ministry was “looking into” establishing such a facility. He added that it had already granted the six fireaffected vendors $16,000 each to finance the rebuilding of their stalls, but this sum does not include the collective $48,000 for deck pilings said to have been set aside by the former Minnis administration.

“We’ve met with the vendors a few times last week,” Mr Sweeting said. “We provided them with their letter to access supplies, which would in essence be $96,000 amongst the six vendors. We also provided them with two plans, one from a private architect and one from the Ministry of Works, which they can select between the two.

“We have also included an optional deck option for them if they wanted to extend, which would be up to the vendors to get

THE AREA at Potter’s Cay Dock where some stalls burned down last year. the approvals on, because you understand when you deal with the seabed that goes through the Department of Environmental Planning and Protection (DEPP).”

The vendors have argued that the previous administration set aside $48,000 at FYP (Builders Mall) to help finance the construction of over-the-water decks at their stalls,

but Mr Sweeting yesterday said he was “not aware of that”.

He added that his ministry has been “very accommodating” to the Potter’s Cay vendors with the total $96,000 that has been released to them. “I have met with them four times since I have been the minister, and we have done what we can.

They have the letter to access the

Photo: Donavan McIntosh/Tribune Staff funding from FYP, and hopefully they can get up and going in about ten days or so,” Mr Sweeting said.

The minister conceded that insurance was priced beyond the reach of many Potter’s Cay vendors, meaning that they remain exposed to financial loss and business interruption should there be a repeat of the 2021 fire.

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

BAHAMIAN INSURERS SEE CREDIT RATING REAFFIRMED TWO Bahamian insurers have been removed from “review” by the industry’s main international rating agency, and had their financial soundness reaffirmed, after their parent completed a recent Caribbean acquisition.

CG Atlantic Medical & Life Insurance and CG Atlantic General Insurance (the former Security & General) are among the Coralisle Group subsidiaries that AM Best has removed from “under review with developing implications”. It has also confirmed their financial strength rating of ‘A’ (Excellent) and the longterm issuer credit rating of ‘a’, together with a ‘stable’ outlook, following CG’s acquisition of Barbados-based Massy United Insurance on May 4.

AM Best has also removed from “under review with developing implications”, and affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of ‘a-’ (Excellent, for United Insurance.

The outlook assigned to these ratings is positive.

United Insurance now operates within the Coralisle Group as CG United Insurance.

The rating agency said that, with the addition of United Insurance operations in 14 new jurisdictions, CG has expanded its presence across the Caribbean with potential for cross-selling complementary health products, additional scale in its growing property business and synergies in revenue and expenses.

It added that the United Insurance acquisition aligned with CG’s strategy “to balance its health operations with its property/casualty business across numerous Caribbean operations”.

‘We are very pleased with Best’s assessment of Coralisle Group,” Naz Farrow, CG’s chief executive, said.

“It’s a positive report that reflects sound strategy, prudent planning, best business practices and teamwork.

With our new colleagues at CG United, we are wellpositioned to continue growing toward becoming the insurer of choice in the Caribbean.’

Coralisle and United Insurance were reviewed on operating performance, business profile, risk management and balance sheet strength. With

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the addition of United Insurance, Coralisle Group’s Caribbean presence extends from The Bahamas, Turks and

Caicos, the British Virgin Islands, Cayman Islands and Barbados to Anguilla, Antigua and Barbuda, Montserrat, Dominica, St

Lucia, St Vincent, Saint Maarten, Grenada, Trinidad and Tobago, Guyana, Curacao, Aruba, Jamaica and Belize.

PAGE 4, Wednesday, May 18, 2022

THE LOW GROWTH, HIGH DEBT TRAP from page two

dependent on external demand and capital flows, as well as susceptible to related shocks from abroad. Their small size and limited economies of scale have led to narrow production bases, and in some cases outsized sectors - for example, commodity exports or tourism - that further amplify vulnerabilities to swings in external demand.

Similarly, their geography makes them amongst the most vulnerable on earth to weather-related shocks, as well as the implications of climate change.”

In my opinion, the takeaways from the above closely match the realities for The Bahamas. The effects of economic crises and shocks for the Caribbean last longer than in rest of the world. The global financial crisis of 2008 is a useful reference point. While the world recovered, The Bahamas’ economic performance still lagged in many important ways.

Often it is the inadequacy of public financial management that creates the impediment to growth, not the debt in and of itself.

Currently, The Bahamas’ public financial managhement systems are weaker than desired. There are great needs for development that necessitate

borrowing. Development needs in the country are wide ranging and currently beyond the country’s financial capacity.

And, finally, the circumstances of these countries are more significant due to lack of diversification and vulnerabilities to climate change. The Bahamas is highly dependent on two industries with tourism accounting for over 60 percent of GDP. Therefore, while it will be challenging for The Bahamas to secure economic growth, it is important to pay attention to not just the debt but also effective management of the country’s economics.

NB: Hubert Edwards is the principal of Next Level Solutions (NLS), a management consultancy firm. He can be reached at info@ nlsolustionsbahamas.com.

He specialises in governance, risk and compliance (GRC), accounting and finance.

NLS provides services in the areas of enterprise risk management, internal audit and policy and procedures development, regulatory consulting, anti-money laundering, accounting and strategic planning. Hubert also chairs the Organisation for Responsible Governance’s (ORG) Economic Development Committee.

This and other articles are available at www.nlsolutionsbahamas.com.

THE TRIBUNE

BOB SHEDDING ‘HAUNTED’ PAST WITH 20% GROWTH GOAL FOR ‘23 from page one closes. And it will then need to generate $8.4m in net profit over the following 12 months of its 2023 financial year, representing another $1.4m jump.

However, while such profitability may pale against the $134.533m accumulated deficit remaining on Bank of The Bahamas’ books due to the sustained losses incurred between 2014 and 2018, which required two taxpayer bail-outs and a rights offering worth a combined $300m-plus to stabilise it, Mr Brathwaite said there were sufficient signs to suggest it is close to moving on from a troubled recent past.

“We are progressing. I think we are getting better.

We’re reaching a position of more sustainability.

We’re creating additional revenue streams that are helping the cause,” he told this newspaper, pointing to non-interest revenue sources such as fees and commissions earned from the provision of merchant services, Automated Teller Machine (ATM) services

and fees levied on cash deposits.

Using a cricket analogy, Mr Brathwaite said: “We are on a good wicket. We’re going to be fine as long as we’re doing the things we’re doing now. We’re getting through to a position where we can be comfortable we’re not dipping into a loss one year, and are profitable next year. We can be confident we’ll make a profit every year.

“I think we’re getting to that position. We don’t want to be up and down, making a profit and then making a loss. COVID pushed us into a loss, but other than that we have been turning a profit, which is all we can hope for.” Mr Brathwaite said Bank of the Bahamas was also moving to strengthen its physical presence by expanding its branch network, with ambitions to open its new location close to JFK Drive’s six-legged roundabout by 2022’s calendar year-end.

“We’re behind the other banks in terms of physical presence,” he told Tribune Business. “That’s one of the things we’re looking at in our strategic plan - to improve the bank’s image.

We’ve spent quite a bit of money, millions, renovating the Freeport branch, and with the new branch in Nassau that will go in the direction we need to go in to make sure everyone knows we’re in this market and here to stay.

“We still need to ensure the image we portray is something acceptable to us. The other banks may not have that challenge, but based on our history we have to do a little more.”

Mr Brathwaite confirmed he was referring to Bank of The Bahamas’ rescue in the latter half of the last decade by its majority shareholder,

the taxpayer, which ensured its survival after being almost overwhelmed by a toxic commercial loan portfolio featuring some politically-connected borrowers.

“That is definitely behind us,” he asserted of the bail-outs. “Those poor decisions we made in the past will forever haunt us, but as long as we continue to build we will get beyond that. We still have a lot of room for growth. Once you get on the growth track as a bank, you see your revenue streams increase on an annual basis so you can sustain profitability over the long-term.

“We’re building the bank for the long-term, not the short-term. We’re not going anywhere. At the end of our three-year strategic plan we expect to compete with any bank. By the end of the 2024 financial year, going into 2025, we should be in a position where we are competing on a level playing field with any bank in this country. We’re strengthening multiple things to enable us to compete on a level playing field.”

Asked about Bank of The Bahamas’ profit targets for the 2022 full-year, Mr Brathwaite replied: “I’m going to be optimistic and think we should end up north of $7m for the year, which is a pretty good number for us and will exceed our projections for the year, so that will be a good number for us. Our projections were kind of conservative. It will have surpassed our projections for the year.”

As for 2023, he affirmed: “Based on what we’re looking at now, the Central Bank is projecting increased overall GDP growth for next year. We’re projecting the tourism industry will continue to move upwards

as well unless we have an exceptional outbreak with respect to the pandemic, so our projections for next year are looking at 20 percent growth.

“We’re factoring into that the hope we will be able to go back to commercial lending to diversify our lending streams. You can’t be relying on one aspect of lending, or interest income, non-interest income, fees and commissions. The Central Bank will be here by the end of the financial year to do its their review, and we’re optimistic we will have some good news from that. We expect some good things. This is a good time for Bank of The Bahamas.”

The Central Bank has blocked Bank of The Bahamas from commercial lending since the latter was rescued given that this was largely the area that got it into trouble in the first place. The BISXlisted institution has since had to largely rely on consumer loans for credit book growth, with its mortgage portfolio also shrinking.

Mr Brathwaite conceded that Bank of The Bahamas still needs to “turn the corner” and clean-up its remaining non-performing loan portfolio, which is well in excess of the commercial banking industry average at 18.69 percent or $69.494m of its existing $371.826m net credit book.

While he was not with Bank of The Bahamas when its survival was in question, the Government in the upcoming fiscal year needs to redeem the $167.7m “promissory note” that it injected into the institution’s balance sheet in 2017 and replace this with cash.

At end-March 2022, the bank was owed some $2.2m in accrued interest payable on the note.

THE TRIBUNE

Wednesday, May 18, 2022, PAGE 5

KALIK MAKER: PRODUCT SHORTAGES ‘INEVITABLE’ from page one

revenue during the period ending March 31, 2022, of plus-20 percent when compared to the same period of 2021. Key drivers for the continued growth were a further easing of COVID-19 related restrictions and continued economic recovery, led by a rebound of the tourism and hotel sector,”

the company added in a statement.

“Operating expenses increased to $24m for the period, up 14 percent, which is driven by increased sales and increased supply costs. There were continuous disruptions to the global supply chain that lead to higher input costs for the company.

“Commonwealth Brewery continues to show profitability with

net profit of $1.3m in comparison to the net loss of $0.3m for the comparative period of 2021,”the statement added. “Commonwealth Brewery remains cautiously optimistic as local COVID economic recovery progresses.

“Management is also closely monitoring its business strategies and taking additional measures to limit the impact of the

global supply chain. Still, price increases and out-ofstocks will be inevitable.

Commonwealth Brewery will continue to invest in its brands, technology, people and the community as part of its long-term strategy.”

The BISX-listed brewer’s revenues leapt by almost $5m during the 2022 first quarter, rising from $24.244m the yearbefore to $29.029m.

Operating expenses increased by almost $3m, jumping to $24.49m compared to $21.521m.

This followed a 2021 full-year in which revenues rose by 22 percent year-over-year.

“Notwithstanding the global challenges and mass uncertainty surrounding the health pandemic, I am very pleased with our team’s performance and overall

accomplishments,” said managing director, Jürgen Mulder. “Our employees across 13 islands successfully adapted to the needs of our partners and consumers, driving innovation and delivering exceptional customer experiences. Our overall performance is evident in their ability to embrace change and tackle challenges beyond our control.”

WATER & SEWERAGE SUPPLIER EYES EXPANSION DESPITE $18.5M DEBT from page one

revival, but by New Providence’s population growth.

With the island inhabited by 275,000, or around 70 percent of The Bahamas’ population, he added that these numbers were only likely to swell as more persons migrated to Nassau from the Family Islands in search of work.

“I can tell you anecdotally, I was there at the end of March staying at one of the big hotels, and the place was jam packed,” the Consolidated Water chief said. “It seems there’s a big return of tourists to The Bahamas. There are no quarantine restrictions, just a reciprocal COVID test to come in and go back.

“Their tourism business seems to be going very well.

That will be driving it and propelling growth. There’s a lot of smaller islands in The Bahamas, and everybody seems to end up in

New Providence eventually to get work.”

Mr McTaggart spoke as the Water & Sewerage Corporation’s debts to the BISX-listed reverse osmosis plant operator were cut by 12 percent or $2.5m during April 2022, with the Government having committed to bringing the remaining debt current.

“Consolidated Water (Bahamas) accounts receivable balances (which include accrued interest) due from the Water and Sewerage Corporation of The Bahamas amounted to $21.2m as of March 31, 2022, and $21.5m as of December 31, 2021,” the company said in its filings with the US Securities & Exchange Commission (SEC).

“Approximately 77 percent of the March 31, 2022 accounts receivable balance was delinquent as of that date. The delay in collecting these accounts receivable has adversely impacted the liquidity of

NOTICE

NOTICE is hereby given that MICHAEL ANTONIO TINER of Miami Street, New Providence, 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 18th day of May, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that TREVEL SMITH of South Beach, New Hope Drive, 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 11th day of May, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that JACKSON LOUISSAINT of Wulff 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 11th day of May, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that BELFORD FRANCOIS of #450 Sunshine Park, 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 11th day of May, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

this subsidiary. From time to time (including presently), Consolidated Water (Bahamas) has experienced delays in collecting its accounts receivable from the Water and Sewerage Corporation “When these delays occur, we hold discussions and meetings with representatives of the Water and Sewerage Corporation and The Bahamas government, and as a result, payment schedules are developed for Water and Sewerage Corporation’s delinquent accounts receivables.

All previous delinquent accounts receivable from the Water and Sewerage Corporation, including accrued interest thereon, were eventually paid in full.

“Based upon this payment history, Consolidated Water Bahamas has never been required to provide an allowance for doubtful accounts for any of its accounts receivable, despite the periodic accumulation of significant delinquent

balances. As of March 31, 2022, we have not provided an allowance for doubtful accounts for Consolidated Water (Bahamas) accounts receivable from the Water and Sewerage Corporation.” ​Consolidated Water added: “In February 2022, we received correspondence from the Ministry of Finance of the Government of the Bahamas that set forth a payment schedule providing for the gradual reduction over the course of 2022 of the Consolidated Water (Bahamas’) delinquent accounts receivable due from the Water and Sewerage Corporation.

“Such correspondence also indicated that the Government intends to return all of Consolidated Water (Bahamas) accounts receivable from the Water and Sewerage Corporation to current status. As of April 30, 2022, Consolidated Water (Bahamas) accounts receivable from the Water and Sewerage Corporation totalled $18.7m.”

NOTICE 3VS INC. Notice is given hereby in accordance with Section 138(8) of the International Business Companies Act, 2000, the dissolution of 3VS INC. has been completed, a Certificate of Dissolution has been issued and the Company has therefore been struck off the Registrar.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

Aegis Corporate Services Limited Building 6, Caves Village West Bay Street P.O. Box SP-63771 Nassau, Bahamas Liquidator

The Public is hereby advised that I, DIANE ELIZABETH McMINNS of Sea Breeze Estates, Smith’s Cove, P.O. Box GT-2350, Nassau, Bahamas, intend to change my name to DIANE ELIZABETH FIFE. If there are any objections to this change of name by Deed Poll, you may write such objections to the Deputy Chief Passport Officer, P.O. Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

MARKET REPORT www.bisxbahamas.com

FRIDAY, 13 MAY 2022

BISX ALL SHARE INDEX: BISX LISTED & TRADED SECURITIES 52WK HI 6.70 53.00 2.05 2.90 2.60 6.05 10.05 3.50 9.02 3.10 8.00 15.30 2.71 10.25 11.25 10.85 15.00 4.10 11.00 16.50

52WK LOW 4.75 32.12 1.46 2.20 1.30 5.50 6.96 2.82 4.25 2.27 5.93 9.75 1.99 6.50 10.02 9.01 13.10 3.50 8.00 15.50

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

PREFERENCE SHARES 1.00

1.00

1000.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

1.00 10.00 1.00

1.00 10.00 1.00

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

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

52WK LOW 100.00 100.00

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

CLOSE

CHANGE

%CHANGE

YTD

YTD%

2350.95

0.14

0.01

122.71

5.51

SYMBOL AML APD BBL BFH BOB BPF BWL CAB CBB CBL CHL CIB CWCB DHS EMAB FAM FBB FCL FIN JSJ BFHP CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB SYMBOL FBB22 BFHB

BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.54 99.98 100.00 100.00 100.00 100.00 100.00 100.98 100.00

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 90.76 100.00 99.98 91.00 90.95 89.02 89.62 89.00 90.24 90.73

MUTUAL FUNDS 52WK HI 2.52 4.69 2.22 207.86 212.41 1.73 1.83 1.82 1.05 9.37 11.83 7.54 16.64 12.84 10.77 10.00 10.43 14.89

52WK LOW 2.11 3.30 1.68 164.74 116.70 1.68 1.73 1.75 0.99 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

Bahamas Note 6.95 (2029) BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-7Y BGRS FX BGR134150 BGRS FL BGRS79026 BGRS FL BGRS78024 BGRS FX BGR125238 BGRS FX BGR127139 BGRS FX BGR127149 BGRS FX BGR129249 BGRS FX BGR131249 BGRS FX BGR132249 BGRS FX BGR136150

BAH29 BG0107 BG0207 BG0130 BG0230 BG0307 BG0330 BG0407 BSBGR1341506 BSBGRS790262 BSBGRS780248 BSBGR1252380 BSBGR1271398 BSBGR1271497 BSBGR1292493 BSBGR1312499 BSBGR1322498 BSBGR1361504

LAST CLOSE 5.35 39.95 2.04 2.31 2.25 6.05 9.25 3.30 7.52 2.68 8.00 15.18 2.16 10.25 11.63 10.85 15.00 3.99 10.00 15.50 1.00 1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00 LAST SALE 100.00 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 90.79 100.54 99.98 100.00 100.00 89.08 89.62 100.00 100.00 100.00

CLOSE 5.35 39.95 2.04 2.31 2.25 6.05 9.25 3.30 7.52 2.68 8.00 15.18 2.29 10.25 11.66 10.85 15.00 3.99 10.00 15.50 1.00 1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

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

VOLUME

1,000

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

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 90.79 100.54 99.98 100.00 100.00 89.08 89.62 100.00 100.00 100.00

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 0.00 0.00 0.00

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund Leno Financial Conservative Fund Leno Financial Aggressive Fund Leno Financial Balanced Fund Leno Financial Global Bond Fund RF Bahamas Opportunities Fund - Secured Balanced Fund RF Bahamas Opportunities Fund - Targeted Equity Fund RF Bahamas Opportunities Fund - Prime Income Fund RF Bahamas International Investment Fund Limited - Equities Sub Fund RF Bahamas International Investment Fund Limited - High Yield Income Fund RF Bahamas International Investment Fund Limited - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

MARKET TERMS

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.13 0.00 0.03 0.00 0.00 0.00 0.00 0.00

(242) 323‐2330 (242) 323‐2320 EPS$ 0.239 0.932 0.000 0.140 0.070 1.760 0.369 -0.438 0.140 0.184 0.449 0.722 0.102 0.467 0.646 0.728 0.816 0.203 0.939 0.631 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

VOLUME

DIV$ 0.170 1.260 0.020 0.080 0.000 0.000 0.260 0.000 0.000 0.120 0.220 0.720 0.434 0.060 0.328 0.240 0.540 0.120 0.200 0.610 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

INTEREST Prime + 1.75% 6.25% 6.95% 4.50% 4.50% 6.25% 6.25% 4.50% 6.25% 4.25% 5.00% 4.53% 4.50% 5.00% 5.00% 5.50% 5.55% 5.60% 5.65% 5.69%

NAV 2.52 4.69 2.21 197.44 202.39 1.73 1.82 1.82 0.99 9.37 11.79 7.54 15.94 12.47 10.74 N/A 10.43 14.89

YTD% 12 MTH% 0.99% 4.22% 0.36% 5.78% 0.67% 2.74% -2.97% -2.35% -4.72% 6.04% 0.83% 2.82% -0.18% 3.72% 0.76% 3.55% -3.55% -3.85% -0.02% 10.36% -0.33% 18.23% 0.22% 3.05% -3.89% 14.76% -1.04% -2.57% 0.81% 4.20% N/A N/A 3.00% 25.60% 7.90% 48.70%

P/E 22.4 42.9 N/M 16.5 N/M N/M 25.1 -7.5 53.7 14.6 17.8 21.0 22.5 21.9 18.0 14.9 18.4 19.7 10.6 24.6 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

YIELD 3.18% 3.15% 0.98% 3.46% 0.00% 0.00% 2.81% 0.00% 0.00% 4.48% 2.75% 4.74% 18.95% 0.59% 2.81% 2.21% 3.60% 3.01% 2.00% 3.94% 0.00% 0.00% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%

MATURITY 19-Oct-2022 30-Sep-2025 20-Nov-2029 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2022 26-Jun-2045 15-Oct-2022 15-Oct-2038 28-Mar-2026 22-Sep-2024 15-Oct-2038 15-Jan-2039 15-Jan-2049 15-Apr-2049 15-Jul-2049 15-Oct-2049 21-Apr-2050

NAV Date 31-Mar-2022 31-Mar-2022 25-Mar-2022 31-Mar-2022 31-Mar-2022 31-Mar-2022 31-Mar-2022 31-Mar-2022 31-Mar-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Mar-2021 31-Mar-2021 31-Mar-2021

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 | CORALISLE 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333

THE TRIBUNE

Wednesday, May 18, 2022, PAGE 7

GOV’TS ‘FLAT-OUT CONCEALING’ MILLIONS IN CONTRACT AWARDS

from page one

release information on all government contracts “within 60 days” of their award to the successful bidder. This means all contracts awarded between September 1, 2021, and March 18, 2022, should have been publicly disclosed by now.

This, though, has yet to happen with government officials, including Simon Wilson, the Ministry of Finance’s financial secretary, asserting that the failure to create, advertise and fill the post of chief procurement officer makes it impossible to implement the Act and its disclosure requirements because the legislation revolves around that person’s functioning.

However, section 61 of the

Public Procurement Act seemingly places the burden on the “procuring entity”, not the chief procurement officer, to “publish within 60 days of the award of the procurement contract, a notice of the award of the procurement contract”.

This must include the winning bidder’s name and address; contract amount; bid title; name of the procuring entity; and bidding method used. The “within 60 days” timeframe, and Act’s implementation on September 1, means that the Government is seemingly in violation of the requirement to publish all contract awards between September 1 and March 18.

Mr Pintard, accusing the Prime Minister and his administration of double standards by attacking the Minnis government for lack

of transparency and good governance when they were guilty of the same sins, argued: “What makes this more egregious is they are doing so at a time when they are talking about the omissions and gaps in the last administration.

Now they are in the driver’s seat, what are they doing so that they have the moral authority to talk about these matters?”

The Public Procurement Act was intended to shine the light of transparency and accountability across the award of all public sector contracts, thus improving taxpayer value for money and reducing fraud, wastage and corruption by making it much harder for lucrative deals to be awarded to friends, family members, lovers and political cronies of the major parties.

It was also supposed to

improve procurement efficiency by having all bids and contract awards handled through a centralised e-procurement supplier registry, with all companies interested in bidding registering with this portal. However, Daniel Ferguson, who headed the portal’s set-up before becoming a whistleblower critical of its roll-out, repeatedly voiced concern about the lack of agency buy-in and training plus shortages of human capital expertise.

And, upon coming to office, the Davis administration has frequently complained that the Public Procurement Act was passed into by the former government without any of the regulations, rules, guidelines and other supporting infrastructure to make it workable. It has also asserted that the law has mired

government procurement in bureaucracy and red tape, complicating simple contract awards and making them more costly.

Senator Michael Halkitis, minister of economic affairs, told Tribune Business in a voice note: “If you look at this Procurement Act, there’s a myriad of things that have to be put in place before this was enacted. As a matter of fact, this law was enacted without any of the foundational pieces which we are now putting in place.”

Mr Pintard’s comments came as Tribune Business yesterday queried whether the Government is in breach of the Public Financial Management Act by failing to publish the reports on its Budget performance for the first nine months of the 2021-2022 fiscal year as well as its public debt composition.

THE WEATHER REPORT

5-Day Forecast

TODAY

ORLANDO

High: 94° F/34° C Low: 73° F/23° C

TAMPA

THURSDAY

FRIDAY

SATURDAY

SUNDAY

A morning t‑storm; partly sunny

Mainly clear

Partly sunny and pleasant

A morning t‑storm; cloudy, humid

Decreasing clouds; breezy, humid

Clouds giving way to some sun

High: 83°

Low: 75°

High: 84° Low: 75°

High: 86° Low: 76°

High: 85° Low: 75°

High: 86° Low: 74°

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

94° F

82° F

96°-81° F

95°-82° F

95°-81° F

95°-77° F

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

N

almanac

E

W

ABACO

S

N

High: 83° F/28° C Low: 76° F/24° C

4‑8 knots

S

High: 89° F/32° C Low: 75° F/24° C

4‑8 knots

FT. LAUDERDALE

FREEPORT

High: 89° F/32° C Low: 77° F/25° C

E S

E

W

WEST PALM BEACH

W

uV inDex toDay

TONIGHT

High: 91° F/33° C Low: 76° F/24° C

N

| Go to AccuWeather.com

High: 85° F/29° C Low: 75° F/24° C

MIAMI

High: 91° F/33° C Low: 77° F/25° C

4‑8 knots

Statistics are for Nassau through 2 p.m. yesterday Temperature High ................................................... 86° F/30° C Low .................................................... 73° F/23° C Normal high ....................................... 84° F/29° C Normal low ........................................ 71° F/22° C Last year’s high ................................. 85° F/30° C Last year’s low ................................... 70° F/21° C Precipitation As of 2 p.m. yesterday ................................. 0.20” Year to date ............................................... 14.18” Normal year to date ..................................... 7.41”

ELEUTHERA

NASSAU

High: 83° F/28° C Low: 75° F/24° C

Forecasts and graphics provided by AccuWeather, Inc. ©2022

High: 83° F/28° C Low: 76° F/24° C

N

KEY WEST

High: 87° F/31° C Low: 79° F/26° C

High: 83° F/28° C Low: 77° F/25° C

N

S

E

W

4‑8 knots

S

4‑8 knots

ANDROS

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

High

Ht.(ft.)

Low

Ht.(ft.)

Today

10:11 a.m.

10:44 p.m.

2.5 3.4

4:22 a.m. ‑0.5 4:16 p.m. ‑0.7

Thursday

11:07 a.m.

11:40 p.m.

2.5 3.3

5:17 a.m. ‑0.4 5:12 p.m. ‑0.5

Friday

12:07 p.m. ‑‑‑‑‑

2.4 ‑‑‑‑‑

6:15 a.m. ‑0.2 6:12 p.m. ‑0.2

Saturday

12:39 a.m.

1:12 p.m.

3.1 2.4

7:15 a.m. ‑0.1 7:17 p.m. 0.0

Sunday

1:41 a.m.

2:20 p.m.

3.0 2.4

8:17 a.m.

8:27 p.m.

0.0 0.2

Monday

2:44 a.m.

3:27 p.m.

2.8 2.5

9:17 a.m.

9:37 p.m.

0.0 0.3

Tuesday

3:46 a.m.

4:29 p.m.

2.7 2.6

10:14 a.m. 0.0 10:43 p.m. 0.3

sun anD moon Sunrise Sunset

6:24 a.m.

7:49 p.m.

Moonrise Moonset

11:02 p.m.

8:33 a.m.

Last

New

First

Full

May 22

May 30

Jun. 7

Jun. 14

SAN SALVADOR

GREAT EXUMA

High: 83° F/28° C Low: 77° F/25° C

High: 83° F/28° C Low: 78° F/26° C

N

High: 82° F/28° C Low: 75° F/24° C

E

W S

LONG ISLAND

tracking map

High: 84° F/29° C Low: 78° F/26° C

H

tiDes For nassau

CAT ISLAND

E

W

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

4‑8 knots

MAYAGUANA High: 85° F/29° C Low: 79° F/26° C

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

CROOKED ISLAND / ACKLINS RAGGED ISLAND High: 83° F/28° C Low: 79° F/26° C

GREAT INAGUA High: 87° F/31° C Low: 80° F/27° C

N

N E

W

E

W

H

High: 84° F/29° C Low: 79° F/26° C

S

S

6‑12 knots

4‑8 knots

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

Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday:

WINDS SE at 4‑8 Knots SE at 6‑12 Knots SE at 4‑8 Knots ESE at 4‑8 Knots E at 4‑8 Knots E at 6‑12 Knots NE at 4‑8 Knots E at 7‑14 Knots ESE at 4‑8 Knots E at 6‑12 Knots SSE at 4‑8 Knots SSE at 4‑8 Knots SE at 4‑8 Knots E at 6‑12 Knots NE at 4‑8 Knots ENE at 7‑14 Knots ENE at 4‑8 Knots E at 6‑12 Knots E at 4‑8 Knots E at 7‑14 Knots SE at 4‑8 Knots ESE at 6‑12 Knots E at 6‑12 Knots E at 7‑14 Knots E at 4‑8 Knots E at 6‑12 Knots

WAVES 1‑3 Feet 1‑3 Feet 0‑1 Feet 0‑1 Feet 1‑3 Feet 1‑3 Feet 1‑3 Feet 1‑3 Feet 1‑3 Feet 1‑3 Feet 0‑1 Feet 0‑1 Feet 0‑1 Feet 0‑1 Feet 1‑2 Feet 1‑2 Feet 1‑2 Feet 1‑2 Feet 2‑4 Feet 2‑4 Feet 0‑1 Feet 0‑1 Feet 1‑3 Feet 1‑2 Feet 0‑1 Feet 0‑1 Feet

VISIBILITY 10 Miles 10 Miles 10 Miles 6 Miles 7 Miles 10 Miles 10 Miles 7 Miles 6 Miles 10 Miles 10 Miles 10 Miles 5 Miles 10 Miles 10 Miles 6 Miles 7 Miles 10 Miles 10 Miles 6 Miles 6 Miles 10 Miles 4 Miles 6 Miles 6 Miles 10 Miles

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PAGE 8, Wednesday, May 18, 2022

THE TRIBUNE

PRIME Minister Philip “Brave” Davis at the official opening of FTX Digital Markets Headquarters in The Bahamas in October.

SHED TAX HAVEN LABEL FOR DIGITAL ASSETS WIN from page one

that we have to tax our people in a certain way and at a certain amount.”

The Bahamas, buoyed by the presence of FTX Digital Markets, the world’s second largest crypto currency exchange that is building its head office in this nation and organised the recent Crypto Bahamas conference, has sought to capitalise on all this - together with the Digital Assets and Registered Exchanges Act’s legislative platform and the Government’s digital assets ‘white paper’ - to establish itself as a leading jurisdiction in the sector.

The Government has also engaged the Deloitte & Touche accounting firm

to study the Bahamian tax system, and implications of the 15 percent global corporate income tax initiative. However, Mr Moss compared all this to “putting spray paint on a car that has no tyres; the tyres are bald” unless The Bahamas makes the necessary reforms to make a clean break with its so-called ‘tax haven’ past.

“We’ll be game for most products in the world as they know we will no longer be considered a tax haven,” he told Tribune Business.

“Everything will be transparent, and we will be able to sign tax agreements with every country in the world and make it quite open.

Otherwise we’re going to have the same results.

“We have to do our part and address the issues as

we must. If we don’t do it, it means we will be in the world and the big players in the G-7 and OECD will see the advances The Bahamas is making, say they want a part of that and then force us to over-regulate the sector like we’ve done in the past.

“We tend to lag behind.

Although we are ahead of the game right now, parliaments around the world move very quickly. We don’t have the drafts people to draft the laws. We don’t have draftsmen dedicated to the financial services industry so it’s very easy for them to catch us up and pass us. We have to get ourselves together and have to do it now.’

The Government’s ‘white paper’, entitled The Future of Digital Assets in The

Bahamas, seeks to balance signalling to crypto, blockchain and non-fungible token (NFT) providers that this nation is ‘open for business’ with the necessary risk-based regulatory approach to protect the country’s reputation and the interests of investors/ consumers.

Indicating The Bahamas’ eagerness to attract blue-chip operators of the same calibre as FTX Digital Markets, one of the world’s largest crypto currency exchanges, who wish to operate in a compliant environment, the paper lists multiple broad-brush goals and policy objectives that the Government wishes to achieve in building a sustainable digital assets sector.

Pledging to work with the

Central Bank and private sector to enable Bahamians to invest in digital assets using Bahamian dollars, and thus overcome a key complaint of many locals, the ‘white paper’ also promised to this year establish a Digital Policy Committee and Digital Advisory Panel to advise the Government on how best it can facilitate the sector’s growth via legislative and policy initiatives.

The Committee will be headed by the Prime Minister, be charged with overseeing the attainment of the Government’s digital policy objectives, while the Panel will feature industry and regulatory executives functioning in a capacity that will see them advise the former.

And, perhaps critically, the ‘white paper’ also

focused on enabling Bahamian entrepreneurs and workers to exploit digital assets opportunities by providing them with the necessary skills upgrades.

It calls for a partnership between the University of The Bahamas (UoB), Securities Commission and private sector to develop crypto asset-related courses, certifications and degrees.

To help finance this, the Government says it is mulling whether to impose a “development and training” levy - sum and mechanism not specified - on “the largest digital asset businesses” to ensure The Bahamas can provide the qualified, well-trained workforce that can help attract other operators to domicile in this nation.