05192022 BUSINESS

business@tribunemedia.net

THURSDAY, MAY 19, 2022

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Insurers warn on ‘double digit’ auto repair increase

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

previously informed the BISXlisted property and casualty insurer’s shareholders that current inflationary pressures are “presenting operational challenges both in terms of

costs are likely to be long lasting.

Describing the increase in motor vehicle repair costs, and insurance claim payouts as “significant”, he had

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

PATRICK WARD pricing our products and adjudicating claims. However, we are taking proactive steps to

SEE PAGE SEVEN

Flowers ordered to pay ex-FML executive $120k

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net CRAIG Flowers’ FML web shop chain has been ordered to pay a former senior executive $120,000 plus interest after the Court of Appeal overturned a previous verdict relating to “irregularities” designed to inflate staff earnings.

The appellate court, by a two-one majority ruling, found that Deyvon Jones, FML’s former chief operating officer, should receive the four months’ unpaid salary due to him. With a 6 percent annual interest rate applied to this sum from late March 2018, the total payment due is now over $150,000, but the Court of Appeal rejected the bulk of a claim for that

Bank sold despite ongoing legal fight • Central Bank, EY accountant’s actions being challenged • Lucayas being sold to Britannia, runnerup in PIB process • Key Goodman’s Bay property at heart of regulatory dispute

• Assessing if long-term rise requiring premium hike • Bahamas First chief pledges ‘no knee jerk’ reaction • RoyalStar counterpart says costs have jumped 15%

BAHAMIAN insurers yesterday warned they are examining “high double digit increases” in auto repair costs to determine if an increase in motor vehicle premiums is justified over the medium to long-term.

Patrick Ward, Bahamas First’s president and chief executive, told Tribune Business that the carrier will avoid any “knee jerk reaction” through premium price hikes in the near-term as it explores whether the inflation and post-COVID supply chain disruption driving higher repair

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totalled more than $1m for breach of contract and constructive dismissal.

Appeal justice Stella CraneScott, writing the majority verdict, noted that Mr Jones brought eight of the former Fantasy web shop locations with him when he joined FML Group of Companies as its chief operating officer in 2015.

SEE PAGE NINE

A BAHAMIAN bank’s sale has been confirmed by its statutory administrator despite his actions, and those of the Central Bank, being subject to a legal challenge that is ongoing before the Supreme Court.

Multiple questions have been raised over the fate of Lucayas Bank, the former Private Investment Bank (PIB), after Igal Wizman, the EY (Ernst & Young) accountant and partner appointed by the regulator, informed its clients that their assets have been sold to fellow Bahamas-based institution, Britannia Bank & Trust.

Documents obtained by Tribune Business reveal that the sales agreement with Britannia was concluded on April 29, 2022, with the transfer of client assets to Britannia beginning on May 6, even though Lucayas Bank’s nowformer owners have applied for Supreme Court permission to bring a Judicial Review action challenging both the Central Bank’s decision to appoint Mr Wizman and their subsequent actions.

Well-placed sources yesterday suggested that a Supreme Court ruling on their application, which is being opposed by both the Central

CRAIG FLOWERS

SEE PAGE FOUR

Bahamas will ‘fight’ EU, Bran’s law firm receives $62.5k on Gibson case OECD on digital assets

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE BAHAMAS will likely have “to fight” the European Union (EU) and Organisation for Economic Co-Operation and Development (OECD) to preserve its digital assets leadership, the Opposition’s leader warned yesterday.

Michael Pintard, the Marco City MP and former Minnis administration Cabinet minister, told the House of Assembly that high-tax European states and their parliaments would like nothing better than “to clamp down” on The Bahamas’ ambitions to establish itself as a Fintech (financial technology) hub for crypto currencies, blockchain

THE

DEMOCRATIC

National Alliance’s (DNA) leader yesterday accused

MICHAEL PINTARD and non-fungible tokens (NFTs).

Speaking as the House debated reforms to the Digital Assets and Registered Exchanges Act, which will expand the Securities Commission’s enforcement and

SEE PAGE EIGHT

Adrian Gibson of “costing the Bahamian people an extra $22,500” after the Water & Sewerage Corporation settled the full amount of his law firm’s claim out-of-court.

Branville McCartney told Tribune Business that the embattled MP, who is currently facing a police probe into contracts awarded during his time as the Water & Sewerage Corporation’s

executive chairman, had created an unnecessary expense for consumers by refusing to pay his firm due fees for collecting on delinquent accounts.

SEE PAGE SIX

PAGE 2, Thursday, May 19, 2022

THE TRIBUNE

SOFTWARE DEVELOPER UNVEILS PERSONNEL, PAYROLL PLATFORM A BAHAMIAN software development company yesterday said it has launched a human resources and payroll platform designed to improve business efficiency and time management.

Plato Alpha, in a statement, said it had developed Triblock HR in a bid to reduce the time that human resources and payroll departments spend doing repetitive work. It added that the platform streamlines payroll, performance and time management systems.

Designed specifically to meet the needs of

DURAN HUMES

KEITH ROYE II

Bahamian companies, the software developer said the platform enables human resources professionals to centrally manage an employee’s corporate interaction, including payroll; time

tracking; one-on-one performance reviews; and document management.

“At Plato Alpha, we strongly believe human resources is about the people work, not the

paperwork, and have designed a system that empowers both employers and employees,” said Duran Humes, its chief executive. “Triblock HR simplifies human resources management through an integrated system that keeps track of all relevant data with ease and accuracy.”

Developed over a fivemonth period, Plato Alpha said the inspiration for Triblock HR came from what it described as a “noticeable gap in the market” for a modern human

resources and payroll solution in The Bahamas.

“Business in the digital age moves at a frantic pace, and human resources and payroll managers must stay on the pulse of technology to maximise productivity and performance within their departments,” said Keith Roye II, Plato Alpha’s chief operating officer.

Plato Alpha said key proprietary features that distinguish Triblock HR from its rivals are its reporting and analytics capabilities, plus employee data entry components.

“We have included failsafe elements that enable employees to input data themselves, empowering workers to fulfill basic human resources and

payroll tasks and eliminating them from the human resource professional’s to-do list,” said Mr Roye II. “Our comprehensive reports and analytics are invaluable, and equip companies with the relevant data to make informed business decisions.”

Established in 2019, Plato Alpha is a full-service software and product development company that aims to keep technologyrelated opportunities, innovation and employment in this nation. Led by two Bahamians aged under 25 years-old, the company’s clients include the Rotary Clubs; the Government; REV; Aliv; Doctors Hospital; Eugene Dupuch Law School; and Super Value.

TIMOTHY SMITH

DANNY LOWE

BAHAMIAN REALTOR’S LEADERS WIN MAJOR GLOBAL HONOURS A BAHAMIAN real estate company’s four top producers have all won awards from its global franchise partner, placing it among the latter’s top international partners.

The four award winners from Better Homes and Gardens MCR Bahamas were the firm’s founder and chief executive, Mario Carey; its managing partner and broker, Tim Rodland; and broker, Danny Lowe.

Each tallied transactions that earned them Emerald Elite status, which is reserved for the top 3 percent of Better Homes and Gardens’ independent agents worldwide, and the highest distinction in the awards categories.

The fourth winner, Timothy Smith, a partner in the Bahamian firm, earned Platinum status, a ranking reserved for the top 6 percent. Better Homes and Gardens holds its Emerald Elite and Platinum awards annually.

“The awards acknowledge the achievement of top performers within the franchise network based

on stringent criteria in the categories of total closed units or sales volume,” said Better Homes and Gardens. Top performers are selected from a network of more than 12,600 independent sales associates, and around 410 offices worldwide “I am really proud of all of our team, especially these agents awarded with top distinctions recognised globally within the brand,” said Mr Rodland.

Mr Carey, meanwhile, said market conditions were a strong contributing factor with the increase in demand outweighing supply.

“We had buyers and investors flocking to our shores like we’ve never seen before to get a piece of what The Bahamas has to offer,” he added, calling the interest in turnkey property in The Bahamas “unprecedented” - including private islands.

All four Bahamian winners – Mr Carey, Mr Rodland, Mr Lowe and Mr Smith – agreed the COVID-19 pandemic had produced positive change.

THE TRIBUNE

Thursday, May 19, 2022, PAGE 3

ELECTRICAL RETAILER IN ZONING CLASH WITH MAJOR DEVELOPER

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A MAJOR New Providence developer is objecting to an electrical retailer’s bid to rezone five acres it owns near Lyford Cay to commercial, which it argues will aid the property’s sale and fetch a higher purchase price.

New Providence Development Company voiced its opposition to the application by Henry F Storr Electric Company at a Town Planning meeting on Tuesday night, arguing that the latter should abide by the restrictive covenants that were in effect when it acquired the property.

These stipulate that it is for residential use only.

The electrical retailer, though, is asserting that

the rezoning from residential to commercial was given the go-ahead by the Town Planning Committee some five years ago. Sandy Hall, an Henry F Storr director, told the hearing it received approval for the rezoning back in May 2017, which was around the time of the general election that brought the Minnis administration to office, but he had lost the letter of approval.

Neither does the Town Planning Committee have a record of the 2017 approval letter. This led its current chairman, Keenan Johnson, to say that if such a letter had been issued to Henry F Storr then the current application should be “null and void”.

Kim Storr, another Henry F Storr director, added: “This property was

purchased 30 years ago, and today I think that the restrictive covenants are a bit ridiculous. They have asked us to get approval for any houses that are built on the property, and we need to get approval for putting up fences, a swimming pool. They also tell you what colour to paint the house. They also tell us that we can’t build a single storey house. It’s really restrictive.”

The restrictive covenants are a key reason why Henry F Storr wishes to sell the property, located on the southern side of Western Road around 2,822 feet east of the Lyford Cay Circle, but potential purchasers want it solely for commercial - and not residential - use. Without a rezoning, no sale will take place.

A ‘poisoning of the well’ on COVID food initiative

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE OPPOSITION’S leader yesterday accused the Prime Minister of committing a “poisoning of the well” by “drip feeding” Bahamians assertions about the COVID food assistance initiative that were not yet supported by evidence.

Michael Pintard, the Marco City MP and former Minnis administration Cabinet minister, told the House of Assembly that Philip Davis’ allegation that $10m worth of taxpayer monies were unaccounted for was not supported by the 138-page audit which the latter tabled in Parliament on Monday.

Hitting back at the “hyperbole” used by the Prime Minister to describe the report’s findings, he argued that Mr Davis been “leading the discussion” in such a way as to “reach a conclusion that we have not yet arrived at” in relation to how the $53m worth of taxpayer funds provided to National Food Distribution Task Force members had been spent.

Suggesting that the Prime Minister had been seeking to “muddy the waters” over the COVID food assistance programme ahead of next week’s Budget, Mr Pintard questioned why the Government had not waited for its own internal spending

watchdog, the Auditor General’s Office, to complete its own report into the initiative.

And, given the Government’s complaints that non-governmental organisations (NGOs) who participated in the Task Force have been non-cooperative in providing it with requested records and other financial information, the Opposition’s leader queried why it had not used its considerable authority - or requested that the Auditor General’s Office use its own - to compel production.

“One would think that when he laid the food programme report, the Prime Minister would have mentioned these are the steps we are now taking with persons refusing to turn over information to the Government. The Government has tremendous power, the Ministry of Finance and Auditor General have tremendous power, but I digress,” Mr Pintard said.

In response, Mr Davis said the Government is indeed mulling whether to employ such mechanisms to obtain the documents it is seeking. “These are being considered,” he added. “I don’t need to tell you when I will do it. You will be informed at the appropriate time of the steps being taken in relation to that.”

The Prime Minister also repeated his denial that he was deliberately seeking to

harm the Task Force’s reputation, or that of its NGO participants.

Mr Pintard, though, was unmoved. He argued: “It is most unfortunate that the Government has chosen to drip feed the public with fallacious details surrounding a wide range of issues inclusive of the Food Task Force.

“It’s always a painful experience to listen to private organisations that historically made contributions to The Bahamas, and private individuals’ reputations, taking a beating and the perpetrators are no less than policy makers who are the caretakers of our country and, by extension, our citizens.

“It is possible to hold previous governments accountable for the decisions made or the oversights that they’ve permitted to slip through.

It is possible to hold individual organisations that are the beneficiaries of resources from the Bahamian people accountable without savaging the reputation of persons who are not in this place to defend themselves.”

The Opposition leader, arguing that the Prime Minister’s rhetoric was not matched by the audit report findings from Kershala Albury, president and principal consultant at ATI Company Ltd, added: “The

SEE PAGE FIVE

Yet changing the use to commercial is being heavily opposed by the area’s original developer, New Providence Development Company. Gail LockhartCharles, its attorney, argued that the restrictive covenants were not something to be debated or determined by the Town Planning Committee.

“The developer would have considered in terms of its pricing, as well as its layout and overall development plans, what

areas would be for what purposes,” she said. Mrs Lockhart-Charles said Henry F Storr purchased the land for a price based on the restrictive covenants, understanding that it should be used for residential purposes only.

As a result, she argued it is “not unfair” to ask any new purchaser to abide by those covenants. “Mr Storr got the benefit of his bargain in terms of the price, and purchased the land,” Mrs Lockhart-Charles

said. “He fully understood he was purchasing with the restrictions that he fully and freely agreed to.

“To now come and purport to make a case, that somehow it is unfair.... He can sell that land, as I’m sure there’ll be people who would be happy to buy that land and who would be happy to develop that land in accordance with the restrictions that are contained on that land.”

PAGE 4, Thursday, May 19, 2022

BANK SOLD DESPITE ONGOING LEGAL FIGHT FROM PAGE ONE Bank and Attorney General’s Office, is now awaited but any decision in the owners’ favour could have effectively been rendered moot given that the sale of Lucayas Bank’s assets under management has already occurred.

Tribune Business last year questioned why the Central Bank, having approved the acquisition of PIB by the former owners

just eight-nine months previously, suddenly performed an abrupt u-turn by appointing Mr Wizman as statutory administrator of the renamed Lucayas Bank on October 27, 2021.

No explanation has been forthcoming, and the timing of a document’s tabling in the House of Assembly yesterday has raised further questions. A notice laid by the Prime Minister revealed that Clifford Culmer, the BDO Bahamas accountant

PUBLIC NOTICE Lil Giant’s Discount Lumber & Supplies Limited notifies the public that MR. LEO DOUGLAS JR. is no longer employed by the Company since December 2021 and is such not authorized to conduct any business on behalf of Lil Giant’s Discount Lumber & Supplies Limited.

NOTICE

PERPALLS TRACT Re: The Ten Acre Tract Of Land Advertised For Sale on April 28th, 2022.

TAKE NOTICE that portions thereof are charged with an unpaid purchase price of $525,000 with interest.

Action No. CLE/gen/01533 Atcorp et al v. Kathryn Leach et al Anthony Thompson & Co. Attorney’s for the Unpaid Vendor, Atcorp Ltd. #2 Nassau Court Nassau, Bahamas

and partner, had been appointed by the Central Bank as an “independent valuer” of Lucayas Bank’s assets with effect from April 4, 2022.

The notice was itself dated May 17, 2022, and multiple contacts - speaking on condition of anonymity because all those connected to the Lucayas Bank situation are said to have been “gagged” questioned why Mr Culmer’s appointment was only being made known now, some six to seven weeks after it took effect, and also some twothree weeks after the sale to Britannia and the transfer of client assets to the latter.

At the heart of Lucayas Bank’s woes is the Goodman’s Bay-based property, Fairview, which it owns.

This newspaper was told it carries up to a $15m valuation, more than double the existing price, just based on plans to redevelop the near two-acre site into a tourismdriven property or condo hotel such as the GoldWynn project next door.

Tribune Business understands that the bank’s now-former owners, via a separate company, had also sealed an agreement with the former Minnis administration to purchase the adjacent La Playa property from the Government.

Putting that together with Fairview, this newspaper was told, would result in a development parcel worth $80m “net of value”. Paul Wynn, GoldWynn’s principal developer, has made no secret of his desire to acquire La Playa However, as revealed by this newspaper previously, the Central Bank was unhappy with the inclusion of Fairview among Lucayas Bank’s assets and regulatory capital. It mandated that the new owners sell the property, located opposite the Prime Minister’s Office, within a tight seven to tenday deadline that they felt was impossible to comply with. When this failed to happen, the regulator appointed Mr Wizman.

“The principals were very upset by that,” one source

familiar with developments said yesterday. “I think they felt the Central Bank might have reacted a bit too quickly in that they gave them one week to dispose of the property and produce the necessary capital to allow them to be within the capital requirements.

“The former owners were told by the Central Bank that they couldn’t use Fairview as part of the bank’s capital. The question is: Can you sell a property in a week? You cannot sell a bicycle in Nassau within seven to ten days.” The source said the speed at which the Central Bank appointed Mr Wizman, having just approved the then-owners’ purchase of PIB some eight-nine months prior, raised questions about the quality of the regulator’s due diligence.

Another source, backing this explanation, told Tribune Business that the Central Bank effectively demanded that the new owners “take the real estate assets out of the bank after they had approved the valuation of the bank based on the real estate assets. Then they turned around and said the bank cannot be in the business of real estate.

What bank on planet Earth doesn’t have a book backed up by real estate?”

John Rolle, the Central Bank’s governor, declined to provide details or respond to most Tribune Business questions on Lucayas Bank situation. “Specific to this entire incident we have to let the work continue without any prejudice to it,” he said, alluding to the ongoing Supreme Court legal battle.

However, letters sent

by Mr Wizman to Lucayas Bank clients, and obtained by this newspaper, confirm the sale to Britannia and the transfer of their deposits and assets to the latter. Tribune Business understands that Britannia had sought to acquire the bank when it was still PIB, but was beaten out into second place by Lucayas Bank’s now former owners.

“Further to my letter dated April 13, 2022, we continue to work toward concluding the sales

process and, to this effect, are pleased to announce the asset purchase agreement (APA) was executed on April 29, 2022,” Mr Wizman told clients in a May 2, 2022, letter.

“Transfer of the bank’s assets under management to the purchaser will commence at closing and, as a result, trading of securities will be suspended temporarily for five business days before closing. Once the assets under management transfer has been completed, trading will resume.

“We are working towards an expedited closing and anticipate closing before May 16, 2022. Please note that on the closing date the purchaser will be assuming liability for the transferred assets under management and you will be deemed to have accepted the transfer of your assets to the purchaser at this time,” the EY accountant continued.

“I can confirm that the bank’s assets under management portfolio has been sold to Britannia Bank & Trust, the origins of which in The Bahamas date back to 1997.” Research by Tribune Business confirmed Mr Wizman’s description of Britannia as part of a London-headquartered financial services group, participating in the wealth management, securities and investment funds sectors.

“The sale of the bank’s assets under management portfolio has been carried out in accordance with a process approved and overseen by the Central Bank of The Bahamas, and continues to be in the best interest of its customers and stakeholders,” the EY partner asserted.

In a follow-up letter on May 9, 2022, Mr Wizman attached a “welcome letter” to Lucayas Bank clients from Britannia, and added: “The transfer of customers’ assets to Britannia commenced upon closing on May 6, 2022.” However, not all are impressed that the sale and asset transfer have apparently closed.

“The Central Bank has gone ahead and approved the sale to Britannia even

THE TRIBUNE though the entire sale is in dispute; the actions of the statutory administrator are under dispute in the courts,” one well-placed source said yesterday, questioning the message that the Lucayas Bank situation is sending to investors and financial institutions at a time when The Bahamas is seeking to establish itself as a digital assets hub. “There’s probably a lot of negative impact on the client base.”

Simone MorganGomez, the Callenders & Co attorney and partner, is understood to be representing Old Church Financial Investments, the vehicle used by Lucayas Bank’s former owners to hold their interest. Meanwhile, the source queried why Mr Culmer’s appointment was only being made known now - after the sale closing and client assets transfer - despite the legal requirement for the Central Bank to announce it.

The Banks and Trust Companies Regulation Act 2020 mandates that such a “valuer” be appointed if a Central Bank statutory administrator decides to sell one of its licensees or their assets to ensure that the sum paid by the purchaser is fair and sufficient. Mr Rolle confirmed: “It is a part of the legal process of making certain everything is conducted properly throughout.

Yet the source added: “You can’t retroactively give notice that you’ve appointed this man in April. They’re trying to back-date this ahead of the announcement of the sale to Britannia.”

All this is a far cry from when Lucayas Bank’s new owners unveiled plans on March 11, 2021, to expand its assets under administration to $1.5bn within two years. They added that they were already eyeing a tourism industry investment that could create “at least 75 fulltime jobs” separate from the 24 staff it has inherited with the PIB deal.

The Lucayas Group declined to reveal much about the identity of its major or controlling shareholders, only saying that its various companies have been operating for up to 20 years and the principal stakeholder is “an AngloIrish and American family trust with other individuals holding minority stakes”.

Union of Public Officers P.O. Box CB-11645

PUBLIC NOTICE The UPO wishes to announce that

General Election to fill all Executive Positions

will be held Tuesday, June 2nd, 2022 between 9:00am - 4:00pm at the Church of God of Prophecy, Baillou Road.

THE TRIBUNE

BREWERY LAUNCHES NEW KALIK VARIETY COMMONWEALTH Brewery says it has unveiled the latest member of the Kalik brand, the fruit infused Kalik Platinum beer.

The vertically integrated, BISX-listed brewer, wholesaler and retailer, said in a statement that the latest variety combines citrus strawberry and black currant with its well-established beer formula. “This brew is very unique. It not only uses the Kalik Platinum brewed liquid, but it also includes white rum for an added kick

and higher alcohol content level,” said Ricard Roberts, Commonwealth Brewery’s brewing master.

“It also incorporates the fruit of each new flavour, citrus strawberry and black currant, to create the wellbalanced fruit flavoured platinum blend now known as Kalik Platinum Flavours.” Waylon McHardy, Commonwealth Brewery’s senior portfolio manager for beers, said: “This product is considered to be a party beer and, after the onset of

COVID-19, the launch of this beer is perfect as the country begins to open up and party occasions are becoming more prevalent.”

He added that flavoured beers is a growing segment among younger consumers, aged between 18-35 years-old, globally.”Kalik Platinum is known as the official party beer of The Bahamas, so it was only fitting for us to launch a flavoured beer in our market, seizing the moment to capitalise on

A ‘poisoning of the well’ on COVID food initiative FROM PAGE THREE report didn’t say that $10m vanished. It said at the time of the report, certain details were unavailable.”

Mr Davis, in his House of Assembly address on Monday, had used the term “unaccounted for” in relation to the $10m rather than “vanished”. This relates to two non-profits that collectively received almost $15.158m - some 28.6 percent of the total $53m spent - which have yet to produce financial records showing how the monies were used.

Lend a Hand Bahamas and IDEA Relief, prior to the report’s publication, had yet to provide ATI Company with any financial records even though they received $11.159m and $3.988m of taxpayer monies respectively. In particular, Lend a Hand Bahamas received 21.05 percent or $1 out of every $5 taxpayer dollars distributed to the Task Force, its share being second only to that of Bahamas Feeding Network, which was handed $11.397m.

Mr Pintard said that while the Free National Movement (FNM) supported holding those who committed any wrongdoing to account, the Government first needed to complete the investigation and use its available powers to compel production of any documents it requires.

“The reality is that if any citizen, public servant or NGO, or anyone associate with them, is engaged in mis or malfeasance, any government is dutybound to investigate and take action to hold them to account,” he added.

“We support that. We do not support the release of incomplete information,

leading the discussion with a conclusion that we have not yet arrived at, and that is essentially with the member for Cat Island, Rum Cay and San Salvador did.

“They gave the conclusion, not merely just innuendos, but made concrete statements about persons who sought to use the public purse to enrich themselves without putting on the public record the evidence thereof.... It’s interesting that the Prime Minister and his team did not seek to reveal the independent Auditor General’s report so that we have a more fulsome understanding of the food programme.

“All of us would like to know the complete details, and all of us would like to make sure the resources of the Bahamian people are not misused in any respect.” Mr Davis, on Monday, said the report had uncovered “18 categories of major deficiencies” largely relating to what he branded as poor record-keeping, lack of documentation and the absence of internal controls over how taxpayer monies were spent to feed more than 55,000 Bahamian families after the economy collapsed almost overnight due to COVID. Blasting what he sought to portray as a lack of

transparency and accountability, the Prime Minister also introduced new allegations. He asserted that some of the fees charged by providers were “exorbitant”, zeroing in on a $6 per food parcel “delivery fee” that was invoiced by Showman Bahamas to Hands for Hunger, one of the non-governmental organisations (NGO) responsible for distributing food aid to thousands of needy Bahamian families at COVID-19’s peak.

Mr Davis used language such as “startling”, “astounding” and “breathtaking” to describe the audit’s findings, and what he termed a “lack of cooperation” in producing records of the Task Force’s operations. However, the audit stopped well short of levying any charges or findings of financial misconduct or wrongdoing, instead focusing on problems with procedures, processes and internal controls.

The report also lamented that several NGOs had concentrated their spending and food procurement with several large vendors, such as Sysco Bahamas (Bahamas Food Services); Super Value; Price Right; Sawyer’s Fresh Market; and Showman Ebistro.

NOTICE

Ms. Tiffany Newton is no longer employed by or authorized to carry on business with clients of Anthony Thompson & Co. - Management

having a deeper emotional connection with our younger consumers,” Mr McHardy added.

“As a brand, it is important that we continue to innovate and stay ahead of trends like this. Kalik Platinum Flavours is very different from its mother brand, the Kalik Platinum, as it has an alcohol by volume (ABV) level of 7 percent and Kalik Platinum only has an ABV of 6 percent.” The Kalik Radler has an ABV level of just 2 percent.

Thursday, May 19, 2022, PAGE 5

THE FIRST batch of the newest member of the KALIK family is pictured boxed, wrapped and ready to go as Commonwealth Brewery Limited (CBL) launches its latest innovation, KALIK Platinum Flavours, the company’s first ever flavoured beer with a kick of rum.

PAGE 6, Thursday, May 19, 2022

BRAN’S LAW FIRM RECEIVES $62.5K ON GIBSON CASE FROM PAGE ONE

Confirming that Halsbury Chambers has received the full $62,500 payment, under the terms of an April 11, 2022, “deed of settlement

and release” with the stateowned water supplier, he blasted: “That matter has been resolved. Adrian Gibson, together with his attorney, has cost the

Bahamian people an extra $22,500.”

The deed, which has been seen by Tribune Business, shows that apart from the the $40,222 claimed by Halsbury Chambers for

collections work on the Water & Sewerage Corporation’s behalf, the law firm has also been paid $10,000 in legal costs ordered by Supreme Court justice, Indra Charles, as well as the additional $12,279 legal costs set out in the initial writ it launched over the utility’s non-payment.

Given the change in government, it is not surprising that the Water & Sewerage Corporation has chosen to settle, especially since it had failed to file a defence to Halsbury Chambers’ claim.

“It is a matter that should not have gone to court in the first place,” Mr McCartney said, noting that it stemmed from Mr Gibson’s desire to launch a defamation action against a bidder who lost out on a Water & Sewerage Corporation contract.

“As I indicated before, it really went to court because of Adrian Gibson’s personal agenda in us not agreeing that we use Water & Sewerage Corporation funds to pay for his private legal fees,” the ex-DNA leader added. “He wanted the Water & Sewerage Corporation to pay, and when we told him we cannot operate like that because defamation is private in nature, it doesn’t work like that, he took the files away from us and refused to pay our fees.

“Notwithstanding us trying to settle it, he hired Ferron Bethell at Harry B Sands & Lobosky to put up all sorts of technical legalities to avoid paying.” Mr McCartney said Mr Gibson had previously indicated that Halsbury Chambers collected “millions” in outstanding customer payments owed to the Water & Sewerage Corporation, although the former executive chairman has denied doing so while rejecting the law firm’s claim.

“Many times we were able to negotiate settlement with the customer,” Mr McCartney added. “We were able to do that, some being hotels and other

BRANVILLE MCCARTNEY corporations in the country, together with some big name people. We were able to call them up and speak prior to bringing any claim.

We were able to get results without going to court.

Some we did have to bring to court to get judgment and settlement with the Corporation.”

Justice Charles, in granting the appeal by Mr McCartney and Halsbury Chambers and awarding $10,000 in legal costs, also lifted the “stay” that had prevented their claim from progressing until they provided proof that the law firm was indeed a partnership. “On or about July 2019, Mr Gibson allegedly requested Halsbury to institute defamatory proceedings against one Gregory Miller, president of Apex Underground and Utilities Company,” she said, tracing the dispute’s origins “Pursuant to Mr Gibson’s request, a demand letter was issued and served on Mr Miller requesting a public apology and retraction of statements made in the media about Mr Gibson. Mr Miller was given seven days to comply. Mr Miller did not respond to the demand letter. Halsbury alleged that Mr Gibson insisted that a defamation action be instituted against Mr Miller, and that the legal fees relative thereto be paid by Water & Sewerage and not by him personally.”

THE TRIBUNE

Justice Charles said that when Halsbury Chambers informed Mr Gibson he would have to foot the legal bill, and not Water & Sewerage, “he stopped all communication and wilfully refused and/or neglected to pay legal fees regarding the collection of delinquent accounts to Halsbury”.

Mr McCartney and his firm alleged that former Water & Sewerage general manager, Elwood Donaldson, agreed that fees were owed to them and would be paid in two installments.

One payment was made in February 2020, and another $20,000 that September, which the utility said represented settlement of all sums owed. Halsbury Chambers denied this, but its demand for the remaining $40,221 said to still be outstanding was not met.

The law firm initiated legal action. While Water & Sewerage did not file a defence, it moved to try and strike out the action and also asserted that Halsbury Chambers was not a partnership at the time the lawsuit was filed. It thus argued that Mr McCartney and his company “lacked the capacity to commence the action” and demanded that the matter be halted until this was addressed - something the Supreme Court deputy registrar agreed to.

Overturning that verdict, Justice Charles ruled: “It will be difficult to see how Water & Sewerage could escape liability having engaged Halsbury in the collection of monies from its delinquent customers.

Water & Sewerage was a party to the contract and intended to create legal relations with Halsbury....

“To my mind, the issue of whether or not Halsbury was a partnership at the material time is not relevant to the crux of the action since Water & Sewerage contracted with Halsbury.”

THE TRIBUNE

INSURERS WARN ON ‘DOUBLE DIGIT’ AUTO REPAIR INCREASE FROM PAGE ONE mitigate the risks associated with each of these inflationary pressures”.

Anton Saunders, RoyalStar Assurance’s managing director, yesterday told this newspaper that motor vehicle repair costs have risen by 15 percent postCOVID. With the required parts taking longer to arrive, claim payouts are now extended and “the loss of use portion drags out” because clients face an extra wait to have their vehicles restored.

Confirming further fall-out for Bahamian consumers and businesses as a result of the sustained across-the-board increase in prices, Bahamas First’s Mr Ward said: “It’s combination of inflation and supply chain shortages. As we expected, as it relates to repairs on motor vehicles, there’s a shortage of parts or delays there.

“The increased cost of car parts is driving up the cost of repairs. We understand this, and have put in mitigating strategies to try and reduce the financial impact.” Asked to quantify the cost increases, and pressures, Mr Ward added: “It’s not unified out across the board. There are some vehicle types or certain parts going up more than others. There are certain

elements that may not be measured.

“But we know that, in almost every case, there have been increases over the prior year. If it cost $500 in 2019 or 2020, today a certain repair will have gone up by a certain percentage in 2021 and 2022.

For how long, and by how much, that cost has gone up is something that we don’t know yet.”

Pressed by Tribune Business on the extent of the motor vehicle repair price increases, Mr Ward responded: “It’s actually been quite significant; double digits and high double digits in some cases.” However, he reassured that auto insurance premium hikes to compensate will not happen in the near-term as Bahamas First and the wider Bahamian property and casualty industry seek to understand whether the repair rise is a short-term phenomenon or likely to last longer.

“I think that is something that has to be looked at over the longer-term,” the Bahamas First chief agreed. “While we’re monitoring the situation, we’re not looking to take any knee-jerk reaction to it, as we’re studying the situation to determine to what extent this will be a longterm issue as opposed to short-term.

“Anything specific related to inflation that has an impact is something we’re monitoring closely, though. Particularly if we’re looking at double digit increases in repair costs.

That’s significant. Events that take place around the world have the potential to impact everything else going on nowadays. We’re cognisant of that. We’re doing all we can to make sure we’re controlling our costs as best as possible.”

RoyalStar’s Mr Saunders backed Mr Ward’s assessment, disclosing that the underwriter has seen “at least a 15 percent” increase in vehicle repair costs. Not only are insurance claims payouts more expensive, but accident and crash victims are having to wait longer for their vehicles to be restored to roadworthiness.

“We’re also seeing not only a 15 percent increase, but critical parts are taking longer to come in, so claims take longer and the loss of use portion drags on because people do not have their vehicles to function,” he revealed. “We’ve been seeing it in our portfolio.

We can estimate, based on inflation, the cost of parts and the timeline dragging on, we’re seeing at least a 15 percent increase.

“Not only that inflation is impacting motor; it’s also

Thursday, May 19, 2022, PAGE 7 impacting homeowners insurance because of the increased cost of construction supplies. It’s across the whole spectrum in the insurance industry.”

This was echoed by Mr Ward, who added: “On the other hand, we’re concerned the average homeowner will end up being under-insured if they were not before, or to a greater extent, because of inflation’s impact on

the cost of construction supplies.”

Bahamian insurers have repeatedly warned that sums insured, and premiums, may have to increase because of the higher costs associated with rebuilding homes and commercial properties in the present inflationary environment.

Mr Ward said it was difficult to presently determine whether the number of under-insured properties

has increased post-COVID, but added: “We see underinsurance as an issue in every catastrophe claim event.

“It will definitely be a bigger issue if we have a catastrophe event and clients’ homes have not been repriced to correct underinsurance resulting from the current state of affairs relating to inflation principally.”

PAGE 8, Thursday, May 19, 2022

BAHAMAS WILL ‘FIGHT’ EU, OECD ON DIGITAL ASSETS FROM PAGE ONE

sanctions powers to cover unlicensed and unregistered operators, he added that the Free National Movement (FNM) was “prepared to stand with the Government in this fight” and back any necessary response.

Warning that The Bahamas will face similar attacks to those that have undermined the competitiveness of its traditional financial services sector, Mr Pintard said: “The problem that we are likely to run into, in Europe, parliaments are

quite worried about what we are doing here.”

While the European Commission has to-date voiced no concerns over The Bahamas’ digital assets drive, the Opposition leader said politicians in that region would likely view the country’s developing

industry as a potential haven for operators who do “not want to follow the law”.

“There are those in Europe looking at our jurisdiction and ways to clamp down on what The Bahamas is doing now,” he said. “Our jurisdiction has unfortunately been unfairly treated by the OECD and some of the parliaments in Europe, and some of the things we we were faced with in financial services we are likely to be faced with in digital assets.

“We have to fight that same fight with digital assets because the parliaments are looking out for their interests, not our interests. We are prepared to stand with the Government in this fight. When we pursue innovative things that position us as leaders in the global community, we do not permit them to shut down any opportunities where we can succeed.”

Kwasi Thompson, former minister of state for finance, said The Bahamas needed to focus on developing the necessary workforce for a digital assets industry.

“We need 10,000 [software] developers, we need 10,000

coders if we’re really going to make an impact in this industry,” he added.

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

THE TRIBUNE 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, welltrained workforce that can help attract other operators to domicile in this nation.

THE TRIBUNE

Thursday, May 19, 2022, PAGE 9

FLOWERS ORDERED TO PAY EX-FML EXECUTIVE $120K FROM PAGE ONE

He was to initially be paid an annual $180,000 salary, or $15,000 per month, “plus 20 percent of net revenue generated over a pre-determined amount of $1.5m per month”.

This contract, which was to last for two years, was modified in December 2015 to double Mr Jones’ salary to $360,000 per year, or $30,000 per month, together with the same 20 percent share of net generated revenue growth (NGR) above $1.8m. Further contract revisions followed, until FML entered a November 1, 2017, management agreement with an entity called Blue Star Holdings that would see the latter operate/manage its 19 “Express” web shops.

Blue Star’s principals included Mr Jones, plus two other employees, Cindy Williams and Jamaal Stubbs.

“In early February 2018, FML became aware of what appeared to be suspicious customer activity at certain store locations managed under the appellant’s [Mr Jones] portfolio,” the Court of Appeal noted.

The scheme purportedly involved deposits made in the morning being withdrawn that very same evening in a bid to unduly inflate compensation. The performance-based compensation agreement struck with Mr Flowers and FML meant that the higher the daily amount/volume of customer deposits at those “express stores”, the greater Mr Jones’ share of daily profits.

“The activity involved what FML claimed was unusually high deposit/withdrawal activity with no clear gaming purpose. FML’s internal investigations continued and, by midFebruary 2018, the matter was escalated to the level of the Board of Directors. On February 16, 2018, Craig Flowers met the appellant and his team and informed of them the situation.

“The appellant refuted any knowledge or suspicion of inappropriate activity.

Cindy Williams left the meeting and Jamaal Stubbs made no comment. On or about February 19, 2018, the appellant advised the Board of Directors that Jamaal Stubbs had admitted to orchestration of a scheme to manipulate the accounting system in order to boost performance numbers for his team. The following day, the appellant informed the Board of Directors of Jamaal Stubbs’ resignation.”

However, some three to four days later, Mr Jones’ socalled ‘performance-based incentive agreement’ was terminated on the grounds of “gross negligence”. Mr Flowers’ son, Jason, in a February 23, 2018, letter told Mr Jones: “It has come to my attention that there has been a falsification of the accounting system operating under the 1Click Platform, which handles the day-to-day operation.

“Further that, based on this falsification, percentages have been manipulated to benefit FLM Express.

Furthermore, your company has admitted to and acknowledged that this has occurred.” A further meeting was held between FML and JR Jones, but the former received legal advice on February 27, 2018, that he had “not returned to work and had abandoned his job, and that due to the infractions he should be summarily dismissed of he returned to work”.

This triggered the legal dispute between the two sides. Mr Jones alleged that he was unable to perform his job from February 23, 2018, because he was “locked out” of the web shop’s computer system while FML had also “started an unsubstantiated rumour” that he “was engaged in fraudulent activity”.

He claimed damages that included $720,000, or two years’ salary; some $120,000 in unpaid wages between September 2017 and February 2018; and other sums that included accrued vacation and three months’ termination notice. The total amounted to more than $1m.

FML, though, countered with a defence that asserted Mr Jones’ computer access was only restricted “in order to facilitate an investigation of irregularities involving the operation of

the ‘express stores’”. The probe “disclosed unauthorised behaviour and internal fraud taking place..... that would benefit [Mr Jones] under the new compensation arrangement”.

The web shop chain added that apart from the restricted computer access, Mr Jones was never barred from coming to the office, but instead he “never returned to his workplace after the investigation started” and therefore “abandoned his job” without notice to FML. The scheme to inflate deposits was reported to the Gaming Board, with FML alleging that - at the time - it had already incurred $50,000 in legal and accounting costs for doing so and these were continuing to mount. These claims, though, were vehemently denied by Mr Jones who alleged that Fantasy’s eight outlets increased FML’s footprint by onethird, taking it from 16 to 24 stores.

He also claimed that the same-day deposit and withdrawal of monies at FML’s express stores “was a feature I had asked several times to be addressed, as based on the compliance rules under the Gaming Board this is not permitted”.

Then-justice Keith Thompson, in the initial Supreme Court verdict, found for Mr Flowers and FML and ruled that Mr Jones was never terminated but simply did not return to work.

However, the Court of Appeal was critical of former justice Thompson, finding that he “failed to take proper advantage of having heard and seen the witnesses and, quite simply, failed to show a correct understanding of the issues he had to decide against the background of the pleadings and the material available, the evidence led and the inherent probabilities”.

Appeal justice Milton Evans said he had failed to “properly analyse the evidence”.

He and Justice CraneScott ruled that Mr Jones had established “a prima facie case” for breach of contract dating from May 15, 2017, where FML had agreed to pay him a $30,000 monthly salary and 4 percent share of net generated revenue “on new products only”.

They found that the burden of proof had thus shifted to FML to prove this salary and terms had been altered orally. “While Craig Flowers’ testimony was that FML had agreed to compensate the appellant ‘based on’ the Blue Star agreement, his evidence fell far short of providing any details as to precisely how (and when) the relevant compensation Agreement had been ‘changed orally’ as FML had claimed in its defence,” Appeal justice Crane-Scott found.

“Most importantly, Craig Flowers gave no evidence whatsoever as to what was the new ‘varied’ salary or compensation which FML and the appellant had (as it claimed) verbally agreed that the appellant was to pay himself out of the income from the Express Stores after 1 November 2017.

“What is even more astounding is that apart from merely stating that the appellant had in fact been compensated from November 2017 based on the Blue Star compensation agreement, and that the appellant could in effect ‘keep as compensation the lion’s share of the profits generated after paying the expenses of those stores’, FML produced no evidence or accounting whatsoever to support these crucial assertions of fact.”

As a result, she found Mr Jones’ employment contract had been breached and he was entitled to receive four months’ unpaid salary at $30,000 per month or $120,000 in total. Appeal court president, Sir Michael Barnett, dissented from the majority by finding that the ex-FML chief operating officer’s compensation terms were varied by the Blue Star agreement.

However, he found that Mr Jones was constructively dismissed because he was locked out of FML’s computer system, and would also have allowed the claim for wrongful dismissal or breach of employment agreement for the same reason.

PAGE 12, Thursday, May 19, 2022

THE TRIBUNE

‘PHARMA BRO’ SHKRELI FREED FROM PRISON FOR HALFWAY HOUSE

By LARRY NEUMEISTER Associated Press

NEW YORK (AP) — Convicted pharmaceutical executive Martin Shkreli was freed Wednesday from prison after serving much of a seven-year prison sentence for lying to hedge fund investors and cheating investors in a drug company.

His attorney, Ben Brafman, said Shkreli, 39, was released early from a prison in Allenwood, Pennsylvania. The move was confirmed by the Federal Bureau of Prisons.

“I am pleased to report that Martin Shkreli has been released from Allenwood prison and transferred to a BOP halfway house after completing all programs that allowed for his prison sentence to be shortened,” Brafman said.

Shkreli was moved to a halfway house overseen by the Federal Bureau of Prisons’ New York Residential Reentry Management Office, the bureau said in a statement.

The Bureau of Prisons said Shkreli’s projected release date from federal custody was Sept. 14.

Brafman said he has encouraged Shkreli to make no statements, and the lawyer planned no comments beyond confirming Wednesday’s moves.

Shkreli was sentenced to the seven-year term after a 2017 conviction for lying to investors about the performance of two hedge funds he ran, skimming money for himself from those funds, and defrauding investors in a drug company, Retrophin, by hiding his ownership of some of its stock. He was

also ordered to forfeit $7.3 million.

Shkreli was originally due to be released from prison in September 2023.

Dubbed “Pharma Bro,” Shkreli gained fame and notoriety after buying rights to Daraprim, a drug used to treat an infection that occurs in some AIDS, malaria and cancer patients and raising its price from $13.50 to $750 per pill.

Shkreli defended the decision as capitalism at work, saying insurance and other programs ensured that people who need Daraprim would ultimately get it.

During the campaign for the presidency in 2016, Democrat Hillary Clinton called it price-gouging and future President Donald Trump, a Republican, called Shkreli “a spoiled brat.”

Shkreli resigned as chief executive of Turing Pharmaceuticals — later Vyera — in 2015, a day after he was arrested on securities fraud charges.

Earlier this year, he was ordered by U.S. District Judge Denise Cote to return $64.6 million in profits he and his former company gained by raising the price of the drug. She also barred him from the pharmaceutical industry for life.

He also once regularly attacked critics on social media and once offered a bounty to anyone who could give him one of Hillary Clinton’s hairs. He also was known for owning a rare, one-of-a-kind album by the Wu-Tang Clan which was sold to satisfy some of his court debts.

FORMER Turing Pharmaceuticals CEO Martin Shkreli attends the House Committee on Oversight and Reform Committee hearing on Capitol Hill in Washington, Feb. 4, 2016. Shkreli has been freed from prison after serving much of a seven-year prison sentence for lying to hedge fund investors and cheating investors in a drug company.

Photo:Susan Walsh/AP

DIVIDEND NOTICE TO ALL SHAREHOLDERS

The Board of Directors of Bahamas Waste Limited has declared a Dividend for Ordinary Shares, to all shareholders of record as of May 27th, 2022 of $0.16 cents per share

The payment will be made on June 8th, 2022, through Bahamas Central Securities Depository Limited, the Registrar & Transfer Agent Robert V. Lotmore Corporate Secretary

THE TRIBUNE

Thursday, May 19, 2022, PAGE 13

STOCKS FALL SHARPLY AS TARGET’S WOES RENEW INFLATION FEARS

By DAMIAN J. TROISE AND ALEX VEIGA AP Business Writers NEW YORK (AP) — The Dow Jones Industrial Average sank more than 1,100 points and the S&P 500 had its biggest drop in nearly two years Wednesday, as big earnings misses

by Target and other major retailers stoked investors’ fears that surging inflation could cut deeply into corporate profits.

The broad sell-off erased gains from a solid rally a day earlier, the latest volatile day-to-day swing for stocks in recent weeks amid a deepening market slump.

The S&P 500 tumbled 4%, its sharpest decline since June 2020. The benchmark index is now down more than 18% from the record high it reached at the beginning of the year. That’s shy of the 20% decline that’s considered a bear market.

The Dow dropped 3.6%, while the Nasdaq fell 4.7%.

The three indexes are on pace to extend a string of at least six weekly losses.

“A lot of people are trying to guess the bottom,” said Sam Stovall, chief investment strategist at CFRA. “Bottoms occur

when there’s nobody left to sell.”

The S&P 500 fell 165.17 points to 3,923.68, while the Dow slid 1,164.52 points to 31,490.07. The Nasdaq slid 566.37 points to 11,418.15.

Smaller company stocks also fell sharply. The Russell 2000 fell 65.45 points, or 3.6%, to 1,774.85.

Retailers were among the biggest decliners Wednesday after Target plunged following a grim quarterly earnings report.

Target lost a quarter of its value after reporting earnings that fell far short of analysts’ forecasts. In a sign of the impact of inflation, particularly on shipping costs, Target said its operating margin for the first quarter was 5.3%. It had been expecting 8% or higher. The company also said consumers returned to more normal spending habits, switching away from TVs and appliances and buying more toys and travel-related items.

The report comes a day after Walmart said its profit took a hit from higher costs. The nation’s largest retailer fell 6.8%, adding to its losses from Tuesday.

The weak reports stoked concerns that persistently rising inflation is putting a

TRADER Patrick King works the floor at the New York Stock Exchange, Thursday, May 12, 2022, in New York. Stocks fell sharply on Wednesday as the Stocks fell sharply on Wednesday as the Dow Jones Industrial Average gave up more than 1,100 points, or 3.6% and the tech-heavy Nasaq pulled back 4.7%. The S&P 500, the benchmark for many index funds, fell 4%.

Photo:John Minchillo/AP

NOTICE

NOTICE is hereby given that NADIA PETER of St Morgan Road off St Vincent 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 12th day of May, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

tighter squeeze on a wide range of businesses and could cut deeper into their profits.

“These retailers are having to balance how much of the higher inflation to pass on to consumers versus eating it, so that goes into questions about profitability on the part of companies and that gets to some of these lingering valuation questions for the market,” said Willie Delwiche, investment strategist at All Star Charts.

Other big retailers also racked up hefty losses.

Dollar Tree fell 14.4% and Dollar General slid 11.1%.

Best Buy fell 10.5% and Amazon fell 7.2%.

Technology stocks, which led the market rally a day earlier, were the biggest drag on the S&P 500.

Apple lost 5.6%, its biggest decline since September 2020.

All told, more than 95% of stocks in the S&P 500 closed lower. Utilities fell, though not nearly as much as the other 10 sectors, as investors shifted money to investments that are considered less risky.

Bond yields fell as investors shifted money into lower-risk investments.

The yield on the 10-year

Treasury fell to 2.88% from 2.97% late Tuesday.

The disappointing report from Target comes a day after the market cheered an encouraging report from the Commerce Department that showed retail sales rose in April, driven by higher sales of

cars, electronics, and more spending at restaurants.

Stocks have been struggling to pull out of a slump over the last six weeks as concerns pile up for investors. Trading has been choppy on a daily basis and any data on retailers and consumers is being closely

monitored by investors as they try to determine the impact from inflation and whether it will prompt a slowdown in spending. A bigger-than-expected hit to spending could signal more sluggish economic growth ahead.

PAGE 18, Thursday, May 19, 2022

NOTICE

THE TRIBUNE

NOTICE is hereby given that ELVIO BEATO MORROBEL PEÑA of Nassau Village, Lee Street, 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 12th 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 JOSISKY LAMY of Harp Close, P.O. Box N-4793, 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 12th day of May, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

MARKET REPORT www.bisxbahamas.com

WEDNESDAY, 18 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 16.60 2.39 10.25 11.25 10.85 15.20 4.00 11.00 16.50

52WK LOW 4.75 32.12 1.49 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

1.00 10.00 1.00

1.00 10.00 1.00

Bahamas First Holdings Preference Cable Bahamas Series 6 Cable Bahamas Series 9 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%

2436.34

-10.68

-0.44

208.10

9.34

SYMBOL AML APD BBL BFH BOB BPF BWL CAB CBB CBL CHL CIB CWCB DHS EMAB FAM FBB FCL FIN JSJ BFHP CAB6 CAB9 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 9.75 3.30 7.52 2.81 8.00 16.60 2.34 10.25 12.07 10.85 15.20 3.99 10.00 15.50 1.00 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 9.75 3.30 7.52 2.81 8.00 16.60 2.40 10.25 12.00 10.85 15.20 3.75 10.00 15.50 1.00 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 4,000

5,609 400

4,500

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 0.06 0.00 (0.07) 0.00 0.00 (0.24) 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

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

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 26.4 -7.5 53.7 15.3 17.8 23.0 23.5 21.9 18.6 14.9 18.6 18.5 10.6 24.6 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% 2.67% 0.00% 0.00% 4.27% 2.75% 4.34% 18.08% 0.59% 2.73% 2.21% 3.55% 3.20% 2.00% 3.94% 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

Thursday, May 19, 2022, PAGE 19

NOTICE PACIFIC CENTURY LIMITED N O T I C E IS HEREBY GIVEN as follows: (a) PACIFIC CENTURY LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. (b) The dissolution of the said company commenced on the 17th May, 2022 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas Dated this 19th day of May 2022 _________________________________ Bukit Merah Limited Liquidator

THE WEATHER REPORT

5-Day Forecast

TODAY

ORLANDO

High: 94° F/34° C Low: 73° F/23° C

TAMPA

FRIDAY

SATURDAY

SUNDAY

MONDAY

Partly sunny and pleasant

A thunderstorm or two late

Humid; a t‑storm around in the a.m.

Partly sunny, breezy and humid

Mostly sunny and pleasant

Breezy in the a.m., then a shower

High: 84°

Low: 77°

High: 86° Low: 76°

High: 85° Low: 75°

High: 86° Low: 74°

High: 84° Low: 73°

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

96° F

80° F

94°-82° F

95°-80° F

96°-78° F

93°-75° 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: 77° F/25° C

4‑8 knots

S

High: 90° F/32° C Low: 76° F/24° C

4‑8 knots

FT. LAUDERDALE

FREEPORT

High: 89° F/32° C Low: 78° F/26° C

E S

E

W

WEST PALM BEACH

W

uV inDex toDay

TONIGHT

High: 91° F/33° C Low: 77° F/25° C

N

| Go to AccuWeather.com

High: 86° F/30° C Low: 75° F/24° C

MIAMI

High: 91° F/33° C Low: 79° F/26° C

3‑6 knots

Statistics are for Nassau through 2 p.m. yesterday Temperature High ................................................... 82° F/28° C Low .................................................... 73° F/23° C Normal high ....................................... 84° F/29° C Normal low ........................................ 71° F/22° C Last year’s high ................................. 87° F/30° C Last year’s low ................................... 72° F/22° C Precipitation As of 2 p.m. yesterday ................................. 0.12” Year to date ............................................... 14.30” Normal year to date ..................................... 7.54”

ELEUTHERA

NASSAU

High: 84° F/29° C Low: 77° F/25° C

Forecasts and graphics provided by AccuWeather, Inc. ©2022

High: 83° F/28° C Low: 78° F/26° C

N

KEY WEST

High: 87° F/31° C Low: 79° F/26° C

High: 83° F/28° C Low: 78° F/26° C

N

S

E

W

4‑8 knots

S

6‑12 knots

ANDROS

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

High

Ht.(ft.)

Low

Ht.(ft.)

Today

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. 0.0 8:27 p.m. 0.2

Monday

2:44 a.m.

3:27 p.m.

2.8 2.5

9:17 a.m. 0.0 9:37 p.m. 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

Wednesday 4:44 a.m.

5:24 p.m.

2.5 2.7

11:06 a.m. 0.0 11:42 p.m. 0.3

sun anD moon Sunrise Sunset

6:24 a.m. Moonrise 7:49 p.m. Moonset

none 9:38 a.m.

Last

New

First

Full

May 22

May 30

Jun. 7

Jun. 14

SAN SALVADOR

GREAT EXUMA

High: 84° F/29° C Low: 78° F/26° C

High: 85° F/29° C Low: 79° F/26° C

N

High: 82° F/28° C Low: 77° F/25° C

E

W S

LONG ISLAND

tracking map H

tiDes For nassau

CAT ISLAND

E

W

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

High: 85° F/29° C Low: 79° F/26° C

4‑8 knots

MAYAGUANA High: 84° F/29° C Low: 79° F/26° C

Shown is today’s weather. Temperatures

CROOKED ISLAND / ACKLINS

are today’s highs and tonight’s lows.

RAGGED ISLAND High: 84° F/29° C Low: 80° F/27° C

High: 84° F/29° C Low: 79° F/26° C

GREAT INAGUA High: 86° F/30° C Low: 80° F/27° C

N

E

W

E

W

N

S

S

6‑12 knots

6‑12 knots

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

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

WINDS SE at 4‑8 Knots SSE at 6‑12 Knots SE at 4‑8 Knots E at 7‑14 Knots E at 4‑8 Knots ENE at 6‑12 Knots ENE at 6‑12 Knots E at 8‑16 Knots ESE at 4‑8 Knots ENE at 6‑12 Knots S at 4‑8 Knots SSE at 6‑12 Knots E at 6‑12 Knots ENE at 7‑14 Knots NE at 6‑12 Knots E at 7‑14 Knots E at 6‑12 Knots E at 7‑14 Knots E at 6‑12 Knots ESE at 7‑14 Knots ESE at 4‑8 Knots E at 6‑12 Knots E at 6‑12 Knots ENE at 7‑14 Knots E at 4‑8 Knots ENE 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 2‑4 Feet 1‑3 Feet 1‑3 Feet 0‑1 Feet 1‑2 Feet 0‑1 Feet 1‑2 Feet 1‑2 Feet 1‑3 Feet 1‑2 Feet 1‑3 Feet 2‑4 Feet 2‑4 Feet 0‑1 Feet 1‑2 Feet 1‑2 Feet 1‑3 Feet 0‑1 Feet 1‑2 Feet

VISIBILITY 10 Miles 5 Miles 6 Miles 7 Miles 6 Miles 7 Miles 7 Miles 10 Miles 9 Miles 6 Miles 10 Miles 6 Miles 5 Miles 6 Miles 5 Miles 4 Miles 7 Miles 5 Miles 7 Miles 5 Miles 10 Miles 8 Miles 6 Miles 5 Miles 6 Miles 5 Miles

WATER TEMPS. 81° F 80° F 85° F 85° F 82° F 82° F 82° F 82° F 82° F 81° F 82° F 84° F 83° F 84° F 82° F 82° F 82° F 82° F 81° F 81° F 83° F 82° F 82° F 82° F 82° F 82° F

THE TRIBUNE

Thursday, May 19, 2022, PAGE 21

CONSUMERS SHIFT AGAIN, FLUMMOXING BIG RETAILERS LIKE TARGET

By ANNE D’INNOCENZIO AP Business Writer

NEW YORK (AP) — The pandemic vastly changed the way Americans spend money and now as they return to prepandemic behavior, they’re tripping up retailers again.

That dynamic has only been intensified in recent months as inflation jumps sharply, and the latest financial report from Target underscores the challenges.

Target reported Wednesday that its profit tumbled 52% compared with the same period last year in an environment of rising costs for things like fuel, and also a lightening quick return by consumers to more normalized spending. Purchases of big TVs and appliances that Americans loaded up on during the pandemic have faded, leaving Target with a bloated inventory that must be marked down to sell.

Target’s quarterly financial report comes a day after shares of rival Walmart tumbled about 17% for similar reasons after it posted quarterly results. Both companies missed profit expectations by a wide margin. Shares of Walmart fell another 8% Wednesday.

Shares of Target Corp. closed Wednesday down 25%, the biggest one-day sell-off since the Black Monday market crash of 1987.

What hasn’t changed is the willingness of Americans to spend, even with inflation hovering near four-decade highs. Target said that revenue rose 4% to $24.83 billon in its most recent quarter, which was a little better than expected.

Big box retailers became a lifeline during the pandemic with millions of people splurging on food to make at home, as well as big-ticket electronics.

The spending on groceries continues to be strong, but those sales are lower margin compared with those luxuries for the

home. Consumers are also spending more on things like luggage as they begin to travel again.

Yet even though consumer spending continues to be strong, costs are rising for major retailers.

“Things have changed significantly from even 13 weeks ago,” said CEO Brian Cornell. “We did not project, I did not project, the kind of significant increases we would see in freight and transportation costs.”

That is hitting the bottom line of companies that have prospered over the past two years.

Target reported Wednesday that first-quarter net income tumbled to $1.01 billion, or $2.16 per share, in the quarter that ended April 30. Per-share earnings adjusted for one time costs were $2.19, far from Wall Street projections of $3.07 a share expected by industry analysts polled by FactSet. And there does not appear to be a way around

rising costs in the immediate future.

Those freight costs will be $1 billion higher this year than Target had anticipated, it said Wednesday, but the company also said it will work hard not to pass through the price increases to customers.

The behavioral change among American consumers is broad and it has adversely effecting companies that logged massive profits during the past two years.

Laura Veldkamp, a finance professor at Columbia University, says the constant “yo-yo of demand” has also contributed to pushing inflation higher because it has made it harder for businesses to plan.

As a result, a shifting mix of goods ends up in short supply, which pushes up their prices as demand unexpectedly jumps.

“This roller coaster ride that we’re on where everybody wants bicycles one day and then everybody wants to go out to a

THE BULLSEYE logo on a sign outside a Target store is seen on Feb. 28, 2022. Target’s first-quarter profit took a big hit from higher costs, despite strong sales growth. Target’s results Wednesday, May 18, reflect the pressure on retailers’ profits coming from surging inflation and persistent clogs in the supply chain.

Photo:Charles Krupa/AP

restaurant once we feel safe just has created such a chaos,” Veldkamp said.

“This kind of volatility really does drive up the cost of doing business.”

Amazon reported its first quarterly loss since 2015 last month, stalled by a slowdown in pandemicinduced online shopping, in addition to a huge writedown of its investment in an electric-vehicle startup.

At Walmart, higher labor and fuel costs as well as higher inventory levels

dragged down the company’s profits. Walmart said customers spent on food and other basic consumer goods, shifting away from discretionary items that had previously added to its bottom line.

That both Walmart and Target have pushed heavily into groceries is a plus with spending still heavy there, said Neil Saunders, managing director at GlobalData Retail.

Yet the same things that allowed Target to thrive in

recent years, successfully stimulating impulse buys of discretionary goods, was a negative to start the year.

“As consumers become more cautious, the ‘Target effect’ of spending hundreds of dollars on a mission that originally involved picking up a tube of toothpaste could fade fast,” Saunders said.

That appeared to be the sentiment on Wall Street Wednesday, with Target’s shares sliding $53.67 to close at $161.61.

PAGE 22, Thursday, May 19, 2022

THE TRIBUNE

FEDERAL AGENCY SENDS TEAM TO PROBE TESLA CRASH THAT KILLED 3

By TOM KRISHER AP Auto Writer DETROIT (AP) — The U.S. government’s road safety agency has dispatched a team to investigate the possibility that a Tesla involved in a California crash that killed three people was operating on a partially automated driving system.

The National Highway Traffic Safety Administration on Wednesday confirmed that it had sent a special crash investigation team to probe the May 12 crash on the Pacific Coast Highway in Newport Beach.

The investigation is part of a larger inquiry by the agency into crashes involving advanced driver assistance systems such as Tesla’s Autopilot. Since 2016, the agency has sent teams to 34 crashes in which the systems were either in use or suspected of operating. Of the 34, 28 involved Teslas, according to a

NHTSA document released Wednesday.

Fifteen people died in the crashes that NHTSA is investigating, and at least 15 more were hurt. Of the deaths, 14 occurred in crashes involving Teslas, the documents say.

In addition to the specific crashes, NHTSA has investigations under way into Teslas on Autopilot crashing into emergency vehicles parked along roadways, as well as a probe into Autopilot braking for no apparent reason.

THE TESLA company logo sits on a vehicle at a Tesla dealership in Littleton, Colo., on Feb. 2, 2020. The U.S. government’s road safety agency has dispatched a team to investigate the possibility that a Tesla involved in a California crash that killed three people was operating on a partially automated driving system.

Photo:David Zalubowski/AP

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Last June NHTSA or dered automakers to report any crashes on public roads involving fully autonomous vehicles or those with partially automated driver assist systems. The partially automated systems can keep a vehicle centered in its lane and a safe distance

from vehicles in front of it.

NHTSA says the data can show if there are common patterns in crashes involving the systems.

A message was left Wednesday seeking comment from Tesla, which is headquartered in Austin, Texas. NHTSA wouldn’t

comment beyond release of the document.

Tesla warns drivers using Autopilot, as well as its “Full Self-Driving” system, that the cars can’t drive themselves and that drivers must be ready to intervene at all times.