05282018 business

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MONDAY, MAY 28, 2018

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$100m tourism boost via 18 percent stopover rise

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

HE Minister of Tourism has hailed an “exceptional” 18 percent air arrivals increase for injecting an extra $100m into the economy during the 2018 first quarter.

Dionisio D’Aguilar told Tribune Business that The Bahamas’ “double digit” growth translated into a 63,000 year-overyear increase in stopover visitors for the peak winter season, delivering an economic impact he branded “amazing”.

The Freetown MP said similar air arrival growth trends had continued into the second quarter, arguing that the Ministry of Tourism’s decision to refocus its resources on online marketing was delivering

* Extra 63,000 air arrivals in first quarter * ‘Exceptional double digit growth’ hailed * Online refocus in ‘staggering’ impact

DIONISIO D’AGUILAR “staggering results”.

While Baha Mar’s phased opening will have accounted for a significant portion of the year-over-year growth, Mr D’Aguilar pointed to Atlantis’s strong performance and “bullish” future outlook as evidence that the first quarter stopover arrivals surge has grown the

market for all properties.

“The refocusing of the Ministry of Tourism on its core mission, which is to spearhead the overseas marketing of the country, has definitely begun to yield exceptional results and that was demonstrated in the first quarter,” the Minister told this newspaper.

“Air arrivals to the country rose a staggering 18 percent, and by that I mean a whopping extra 63,000 stopover visitors came to the country in January, February and March. My initial feeling, that our tourism product was beginning to take off, is now being confirmed by the specifics we are seeing.

“For January, air arrivals were up seven percent.

In February they were up 16.7 percent, and in March they were up 26.1 percent. Double digit growth.

Based on our forward keys (indicators), we’re seeing double digit growth continue through the second quarter.”

Mr D’Aguilar said he was focused on driving stopover visitor growth because they represented the higheryielding segment of The Bahamas’ tourism market, typically spending 20 times’ more in the destination than their cruise passenger counterparts.

SEE PAGE 6

Tourism targets Junkanoo Beach deal

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Ministry of Tourism is seeking private sector bids to take over management of Junkanoo Beach and improve a key component of Nassau’s cruise product.

Dionisio D’Aguilar, minister of tourism, told Tribune Business that the Government is looking to “yield better results” by handing management of the West Bay Street site over to a private company.

Should a management deal be sealed, Mr D’Aguilar said the successful bidder would be responsible for billing and collecting rent from beach vendors, plus “enforcing the rules” and maintaining standards in a bid to improve the visitor experience at

* Seeks private entity to run amenity * And improve key cruise tourism facility * Gov’t failings ‘proven time and again’

JUNKANOO beach. a destination that draws a significant number of cruise ship passengers and other visitors.

He explained that the

Junkanoo Beach “outsourcing goal” was consistent with the Minnis administration’s twin aims of getting the Government “out of

Water Corp prices cover just 30% of out island costs

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Water & Sewerage Corporation’s (WSC) tariffs cover just 30 percent of its Family Island costs, with key government-owned utilities overstaffed and in need of downsizing.

* IDB: BOTH IT, BPL OVERSTAFFED * RENEWABLE PENETRATION LOWEST IN CARIBBEAN

The Inter-American Development Bank’s (IDB) newly-released 2018-2022 country strategy with The Bahamas suggests that both the WSC and Bahamas Power & Light (BPL) are overstaffed compared to regional peers, with their

SEE PAGE 4

business” and creating opportunities for small Bahamian businesses and entrepreneurs.

The Minister added that the move would also eliminate the influence of politically-motivated decision-making, arguing that it had been “proven time and time again” that politicians did not necessarily “make decisions in the best interest of the public” when running commercial assets.

“We felt we would at least explore an initiative involving a company running Junkanoo Beach for

SEE PAGE 7

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Bahamas ‘cannot hold back tide’ on owner registry

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas “cannot hold back the tide” on a beneficial ownership registry, the deputy prime minister arguing: “We must set the standard for ourselves and others.”

K P Turnquest, pictured, explained that while the Government was listening to financial services industry concerns, the Register of Beneficial Ownership Bill’s tabling in Parliament and - subsequent release for consultation- represented an effort to finally get The Bahamas “ahead of the curve” on international regulatory initiatives that have repeatedly rocked this nation.

“We are obviously listening to the industry but, at the end of the day, we have to recognise that holding back the tide on this puts us in a much more difficult position as opposed to being proactive and establishing the standard for ourselves such that international bodies have to explain why our standard is not good enough,” Mr Turnquest told Tribune Business.

“We are taking a proactive position to manage our industry. We are global players and thought-leaders in this space, and it’s time for us to take our position as leaders and contributors to the industry.”

Mr Turnquest’s comments come in the face of growing financial services industry calls for The Bahamas to delay moving on legislation to create a centralised beneficial ownership registry - albeit one that is private, and not accessible to ordinary members of the public.

The deputy prime minister, though, argued: “We can’t sit back and wait for someone else to take the

* DPM: ‘WE MUST SET THE STANDARD FOR US’ * ‘PROACTIVE MGMT’ OF INDUSTRY * EX-BFSB CHAIR ADDS TO ‘HOLD OFF’ CALL first step. We sometimes have to create the scenario we want to work in, and make the case to our partners.

“It’s a good standard, it’s good for the country, and it’s good for our international partners. It’s a matter of when, and whether it [the beneficial ownership registry] will be public or not. Our technical people just came from a CARICOM meeting with the European Union (EU), and CARICOM supports the view that a private registry is the way to go. That is the way countries are going, and we support that stance.”

The Minnis administration, since taking office, has argued that The Bahamas needs to move from a reactive to proactive stance when dealing with international regulatory initiatives impacting the financial services industry.

It has been seeking to “get ahead” of these developments, and begin to exert some influence on them, rather than allowing The Bahamas to be continually blindsided by other countries developing rules in which this nation has no say.

It appears that the Register of Beneficial Ownership Bill is the first attempt to make good on such a strategy, but not everyone is in agreement. Ryan Pinder, a former financial services minister, has already urged the Government to shelve the legislation “for now” amid fears it could

SEE PAGE 7

Use EU’s demands to ‘set our own table’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas must now focus on leveraging the European Union’s (EU) demands to “set our own table” and boost GDP growth and employment, a well-known attorney is urging.

Michael Paton, also a former Bahamas Financial Services Board (BFSB) chairman, said this nation

* DPM: ‘GLASS HALF FULL, NOT EMPTY’ * CAN TARGET KEY SECTORS WITH ‘SUBSTANCE’ * BAHAMAS MET CRITERIA 4 DAYS BEFORE ‘BLACKLISTING’

has the opportunity to design an “economic substance” regime targeted at the types of real business it wants to attract following its removal Friday from the EU “blacklist”.

With the 28-nation EU yet to specify the criteria for meeting its core demand, the Lennox Paton partner told Tribune Business: “I would say we need to design this

SEE PAGE 8

PAGE 2, Monday, May 28, 2018

THE TRIBUNE

Chamber leads mission to Haiti THE Chamber of Commerce (BCCEC) took a 17-strong delegation of Bahamian businesspersons to Haiti last week on its latest trade mission.

The May 23-26 event partnered with Aliv, Bahamasair and the Bahamas Embassy in Haiti, and was headed by Chamber chief executive, Edison Sumner.

The mission included a call with Haitian president, Jovenel Moïse; the country’s prime minister, Dr Jack Guy Lafontant, and other government ministers at the Haitian National Palace. Talks focused on the Bahamian private sector’s commitment to follow-up on the recent high-level government visit to Haiti in February.

Trade facilitation, logistics and agriculture were among the key topics discussed. The Haitian president stressed that his government was open to trade and investment, particularly in the agriculture and electricity generation sectors.

The Bahamian delegation also visited E-Power, a power station; Port Lafito, a real estate development that includes a

BCCEC CEO Edison Sumner presents a Bahamas Independence Coin to Haitian President Jovenel Moïse. modern international port, Fonkoze; and Digicel BPO, a free zone, a business a business division of Digipark, country club and cel Haiti, which focuses on an ocean club; and AGA providing Business ProCorp Group, a clothing cesses Outsourcing (BPO) through contact centre manufacturer.

The mission also fea- services.

The Chamber gave a tured business-to-business sessions, where Bahamian presentation about the and investment businessmen were paired trade with their Haitian counter- opportunities available in parts in a series of meetings The Bahamas; the details to discuss and explore of which were outlined in business opportunities a commemorative Trade in Haiti. Apart from the Mission Booklet that was one-on-one meetings, the widely distributed.

The mission ended with delegation also benefited from presentations from a networking reception the Centre for Facilitation where about persons from of Investments in Haiti; a government and the primicro-financing company, vate sector gathered.

BAHAMAS FIRST IN CHAIR SUCCESSION

FROM left: Patrick Ward, Alison Treco & Ian Fair.

BAHAMAS First Holdings has appointed Alison Treco as chairman with effect from May 25, after Ian Fair retired following 19 years in the post.

The move came after the insurer’s 2018 annual

general meeting (AGM).

Ms Treco has served as a Bahamas First director, and chair of the Board’s Audit Committee, since 2012. She was appointed deputy chair in December 2017.

Ms Treco started her accounting career in 1980 with Peat Marwick Mitchell (which subsequently merged with another firm to become KPMG) in London. In 1984, she transferred to Peat Marwick’s office in The Bahamas and, in 1993, became a partner at KPMG Bahamas.

Ms Treco left KPMG in 2004 to establish her own firm. In 2006 her business was merged into FT Consultants Ltd, which provides accounting, advisory and restructuring services to local and international clients.

Patrick Ward, Bahamas First’s president and chief executive, said of the change: “We are pleased to announce the selection of a highly-respected professional woman to lead our Board.

Ms Treco’s appointment is key to our maintenance of high standards of corporate governance, leadership continuity and succession within the Board and its objectives.

“Her leadership and expertise have provided tremendous value to our organisation over the years and, with her appointment, I believe we are well-positioned to execute on strategies to drive operational excellence, continued innovation and stronger earnings growth in the longer-term.”

Mr Ward thanked Mr Fair for his leadership and invaluable contributions during his time as chairman. “Ian has always been a remarkable captain over the years, skillfully navigating the company through numerous challenges with keen oversight, unwavering commitment and balanced optimism,” he said.

“His leadership has allowed us to clearly identify, evaluate and exploit every opportunity that accompanied the challenges we have faced during his time with us.”

A mandatory retirement age for Bahamas First Board members was set in 2002 as part of the company’s corporate governance initiative.

As a result, Mr Fair was not eligible for re-nomination as a director and chairman this year.

Mr. Fair said: “It has been a singular privilege and honour to serve as chairman. As the first general insurance company in The Bahamas to exceed $100m in premium income, we have made significant strides as a company and contributions to the industry over the last 19 years.

“While we have achieved many firsts, of which I am extremely proud, I am most proud of our leadership and employee development initiatives, including our signature Future Leaders Programme, and contribution to youth development through Junior Achievement and other community programmes. We have consistently provided training and advancement opportunities for our employees, and have created a knowledgeable employee and leadership team, well-positioned for future growth and success.”

Optimistic about stepping into her new role, Ms Treco said: “I am humbled and extremely grateful for the confidence placed in me by our shareholders and my fellow directors. Over the last 19 years, Ian Fair’s vision and leadership have built our company into a leader in the insurance industry, not only in The Bahamas but in the Caribbean; one that is intensely committed to delivering for its customers, shareholders, partners and employees.

“I am incredibly excited about the opportunity that lies ahead for Bahamas First, and for the ability to lead this next chapter. We remain deeply committed to delivering excellence and innovation to our agents, partners and clients. I couldn’t be more confident in our ability to continue to grow, or more honoured to lead this great company.”

Ms Treco is also a director of an offshore trust company; a listed company engaged in retail and franchise services; and a shipping company; as well as a trustee of the Governor General’s Youth Awards programme.

THE TRIBUNE

Monday, May 28, 2018, PAGE 3

DPM PLEDGES ‘NO RUNAWAY BUDGET’

By NEIL HARTNELL and NATARIO McKENZIE Tribune Business Reporters

THE Deputy Prime Minister has pledged that there will be “no runaway spending” in Wednesday’s budget, which will feature “hard choices” to get the near$8bn debt under control.

K P Turnquest, addressing the Institute of Internal Auditors last week, said the 2018-2019 Budget will embrace the principles set out in the draft Fiscal Responsibility Bill that is currently undergoing public consultation.

“We have chosen to develop the 2018-2019 budget in accordance with the law’s guidelines, so when I present the national budget next week Wednesday one thing you will not see in our budget is any runaway spending,” he said.

“We will spend the people’s money responsibly, in accordance with our strategic priorities and the commitments made to the Bahamian people. All of our work at the Ministry of Finance moving forward will be conducted in the context of a statutory

mandate to practice fiscal responsibility.”

Yet, without giving any specifics, he warned: “In the national budget you will see us make hard choices to lower our debt levels. You will see us make responsible choices to arrive at a more sustainable fiscal balance.

And you will see us embrace the idea of transparency and accountability in a way no other government has done before.”

Mr Turnquest’s comments came amid calls for the upcoming budget to present an “honest” assessment

of this nation’s fiscal affairs and “what we can do in the short, medium-term and long-term”.

Gowon Bowe, the Bahamas Institute of Chartered Accountants (BICA) president, told Tribune Business: “If there was one word I would hope to see come from the budget it’s honesty. That means, while we keep using buzz words like transparency and accountability, what we really want is an honest assessment of where we are and what we can do in the short, medium and long-term. In addition

to that we need plans to execute those goals.”

He added: “I think very often we get piecemeal information in terms of saying this is an initiative we have launched and so forth, as opposed to saying what our overall strategy is toward the completion of the National Development Plan. I think that the actual budget presentation now needs to be very much in a business-minded manner in saying here are the things we may have committed to during the election campaign but, at this point in

time, here are the things that we can afford to do.”

Mr Bowe warned against the “political sparring” over “who did or didn’t do what’, arguing that the fate of the economy is ultimately at stake.

“We have to be to be speaking 21st century governance as well as 21st century financial reporting and budgeting, and not political sparring over who did and didn’t do what and when, when at the end of the day the country is still in the same state,” Mr Bowe said.

No time for ‘jubilation’ on EU blacklist escape

Contractors urge better policing’ of investments

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net

A TOP accountant has warned there is no time for “jubilation” over The Bahamas’ removal from the European Union’s (EU) “blacklist”.

Gowon Bowe, pictured, the Bahamas Institute of Chartered Accountants (BICA) president, told Tribune Business: “It is positive news. I wouldn’t call it good news, because good news would suggest it’s a fait accompli.

“I would call this positive news that we are being seen as doing things that are acceptable to those making judgments against us, and from that perspective we have to ensure that we don’t just stop and look at what has been accomplished today. We have to focus more on what is the end goal which is achieving full compliance by end of the year, so that we are not even sitting on a ‘grey list’, which is a ‘watch list’ if you want to call it that.”

The Ministry of Finance

announced on Friday that The Bahamas was removed from the European Union’s (EU) list of non co-operative jurisdictions for tax purposes following a positive recommendation from the EU Code of Conduct Group (CoCG), which was formally adopted by the Council of European Union Finance Ministers (ECOFIN).

The Government said: “The Bahamas remains committed to constructive engagement with the ECOFIN and the CoCG technical committee to meet or exceed global standards of conduct and co-operation in tax matters, and to the timelines set for technical compliance and legislation to effect the same.

“The Government of The Bahamas remains committed to the financial services industry, and to the success of the Bahamian professionals who form the foundation for its continued viability.”

Mr Bowe added: “We haven’t been put on the white list, if you want to call it that. We have been put on the ‘grey list’, which is saying that we have been taking steps to remain off the ‘blacklist’ and become compliant. What is important is not what we would call jubilation in saying we have achieved a landmark ruling.

“Our efforts should be more holistic and driven towards how we defend our centre as a properly regulated and compliant jurisdiction, and that were are not taking knee jerk reactions to what is being required. What we should be focused on is really having a very clear and articulated plan of what we will be as a financial service centre in the future given all of the regulatory changes around the world.”

THE CLEARING BANKS’ ASSOCIATION Announces RANDOL FAWKES LABOUR DAY HOLIDAY BANKING HOURS THURSDAY, MAY 31, 2018 9:30 a.m. – 4:30 p.m.

RANDOL FAWKES LABOUR DAY FRIDAY, JUNE 1, 2018 CLOSED SATURDAY, JUNE 2, 2018

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Bank of The Bahamas Limited CIBC FirstCaribbean International Bank Citibank, N.A. Commonwealth Bank Limited Fidelity Bank (Bahamas) Limited RBC Royal Bank (Bahamas) Limited Scotiabank (Bahamas) Limited

THE Bahamian Contractors Association’s (BCA) president has called for stricter “policing” to ensure developers adhere to the terms of their Heads of Agreement.

Leonard Sands, pictured, told Tribune Business that the BCA, which has repeatedly raised concerns over the ratio of Bahamian to Chinese labour at The Pointe development, reiterated the position that government should have revisited the tax incentives afforded to the developer.

He argued that this was highlighted by the fact that Labour Minister, Dion Foulkes, recently told this newspaper that The Pointe Heads of Agreement had been “poorly drafted”.

“One of the things we would have hoped is if they saw that the agreement needed to be revisited in any way, that they would have done so and looked at the concessions,” Mr Sands said. “To continue with the

concessions under the circumstances is not good.

“Again, we do not take aim only at the Pointe development. We recognise and acknowledge that there are other Heads of Agreements not being lived up to by other developments in The Bahamas. All of them call into question who was there policing the Heads of Agreement? We need to police these Heads of Agreements and ensure that they are being followed, given the concessions that are being granted,” said Mr Sands.

The BCA chief had previously blasted as “hogwash” the Government’s finding that The Pointe was not in breach of its Heads of Agreement on labour ratios.

He rejected “outright” both China Construction America’s (CCA) explanation for the ratio of Bahamian versus non-Bahamian workers currently at the site, and the notion that qualified Bahamians cannot be found to perform the work.

Ministry of Labour officials met with Daniel Liu, The Pointe’s president, his vice-president and legal

counsel to discuss a report that found the ratio of workers at the downtown Nassau development was 75 percent/25 percent in favour of Chinese employees. The Heads of Agreement calls for a 70/30 split in favour of Bahamians, meaning the ratio has been reversed.

The developer’s explanation was that at the present stage of construction, the erection of the superstructure requires specialised post-tension concrete structure workers to complete the phase in a very short timeframe.

“We began speaking out because we felt that we were not getting an opportunity to be involved at the ground level as part of the development,” Mr Sands said. “Someone should have ensured that we are represented. We are not coming after the development, we’re not upset with minister, we’re simply saying that if an agreement says there should be a 70/30 ratio, someone should ensure that we are represented.”

PAGE 4, Monday, May 28, 2018

THE TRIBUNE

Water Corp prices cover just 30% of out island costs FROM PAGE ONE inefficiencies acting as a drag on economic growth.

While the $81m-IDB financed project to upgrade the WSC’s systems has slashed water losses from its network by 60 percent, the country strategy report warned that the resulting benefits will be squandered unless customer tariffs are increased in line with its costs.

“In the absence of tariff adjustments, and as a result of the increased costs associated with reverse osmosis water, the financial performance of the Water and Sewerage Corporation (WSC) has yet to improve,” the IDB said.

“Water purchase amounts to more than 40 percent of WSC operational costs. Tariffs presently represent only 60 percent of the cost of service in New Providence, and only 30 percent in the Family Islands.”

Virtually no business can exist with customer prices that cover between just 30-60 percent of its costs, with the last WSC tariff rise having occurred in 1999. However, in the Corporation’s case, it has been able to rely on annual multi-million dollar subsidies from the Bahamian taxpayer.

Drawing on Central Bank data, the IDB said these subsidies totalled $25m in 2015 and $40m in 2014, illustrating just why the Minnis administration wants all state-owned enterprises (SOEs) to become self-sufficient and reduce a collective $420m-plus drain on the Treasury.

“WSC staff costs are on the order of one-third of its operational expenses, and its employee per 1,000 connections is high with respect to its peers (regional average of 6.2 employees per 1,000 connections),” The Bahamas country strategy report said.

“The Water and Sewerage Corporation estimates that it currently supplies 50

percent of overall potable water demand in The Bahamas.

Despite significant achievements in recent years in reducing volumes of nonrevenue water, WSC services are still not financially and operationally viable, thereby requiring large governmental transfers and limiting available funds to aid other areas of public sector governance.

“Continued implementation of operational efficiency measures to provide sustainable services, as well as revenue-generating measures to reduce the fiscal burden – as outlined in the WSC Action Plan and the New Providence Wastewater Master Plan – are imperative to improving service provision in the sector during the period. Wastewater facilities (sewer drains, pipes and disposal facilities) are insufficient to service the country. The sewerage system only covers 14 percent of the population of New Providence and, according to the Wastewater Master Plan 2014, requires ‘emergency’ rehabilitation.”

As for BPL, which is currently undergoing a voluntary separation exercise as it “rightsizes” its 1,050-strong workforce, the IDB report said: “The electricity utility company has 93 customers per employee compared to 175 in Grenada, 224 in Barbados and 415 in Jamaica.”

BPL’s unions, in particular, will likely argue that such comparisons are meaningless as the utility is being matched with rivals that service just one island. BPL, on the other hand, has to replicate its infrastructure and maintenance across multiple islands, thus requiring extra labour.

Still, the IDB report said The Bahamas ranks “rock bottom” in the Caribbean when it comes to renewable energy penetration despite being blessed with natural assets it is ideally positioned to exploit.

“Despite possessing ample renewable energy resources, and having in place an ambitious National Energy Policy to increase renewable energy generation to 30 percent by 2030, The Bahamas ranks lowest in the region for renewable energy penetration,” the document said.

“Furthermore, as a consequence of old power generation infrastructure, The Bahamas suffers from a high fuel import bill (4 percent of GDP), high and volatile electricity prices, and a large and financially challenged utility (BPL) that experiences frequent power outages and elevated system losses. Such power generation shortcomings have been associated with a reduction in the likelihood of introducing innovation in Caribbean countries, particularly those that resort to self-generation as a coping mechanism by suggesting that firms allocate resources to self-generation that would otherwise be allocated to innovation. Nonetheless, energy conservation and efficiency options remain underutilised in the public, commercial, and residential sectors.”

The IDB report said Bahamian firms experienced an average of 2.2 power outages per month, less than Jamaica’s 2.5 but higher than for Barbados, Suriname and Trinidad & Tobago.

“Limited productivity and volatile oil prices have contributed to making Bahamian electricity tariffs among the highest among Caribbean economies,” it added. “In 2012, due to high oil prices, the electricity tariffs were US$0.40/kWh for residential customers and US$0.44/kWh for hotel customers.

“Today tariffs are lower (US$0.27/kWh for retail and US$0.25/kWh for residential), mainly due to the reduction in oil prices (a more than 50 percent reduction).”

THE TRIBUNE

Monday, May 28, 2018, PAGE 5

Insolvency Association launches in Bahamas THE Restructuring and Insolvency Specialists Association (Bahamas) held its launch event last Thursday at Baha Mar’s Royal Blue Golf Club.

In attendance were around 50 guests, including members of the judiciary, Queen’s Counsels (QCs), Certified Financial Analysts (CFAs), accountants and attorneys from The Bahamas’ leading institutions, accounting and law firms.

Welcoming remarks were given by RISA’s founding directors, who said similar chapters have already been established in the Cayman Islands, Bermuda and British Virgin Islands (BVI).

The Association’s goal is to bring together persons with experience in insolvency and restructuring to assist in facilitating legislative reform, committees for educational seminars, the hosting of international conferences and other networking events.

The event was sponsored

by Lennox Paton, KPMG and Ernst & Young. The Founding Directors of RISA are Zelma Wilson (KPMG), Igal Wizman (EY) and Sophia RolleKapousouzoglou (Lennox Paton).

FOUNDING Directors of RISA Bahamas from left: Sophia Rolle-Kapousouzoglo, Zelma Wilson and Igal Wizman.

Photos: Scharad Lightbourne

METTA MacMillan-Hughes (Lennox Paton), Alfred Sears QC (Sears & Co), Brian Simms QC (Lennox Paton) and Simone Morgan-Gomez (Callenders & Co).

CRAIG Gomez (Baker Tilly Gomez) and Zelma Wilson (KPMG – Founding Director of RISA).

ANISHKA COLLIE, Tiphaney Russell (Deloitte) and Ed Rahming (Intelisys).

PAGE 6, Monday, May 28, 2018

THE TRIBUNE

$100m tourism boost via 18 percent stopover rise FROM PAGE ONE Using a conservative estimate of per capita stopover spend, the Minister said: “If I were to take those 63,000 and multiply them by an average spend of $1,500, that gives you between $90-$100m ($94.5m) of additional spend and GDP impact.”

Mr D’Aguilar conceded that a key driver was Baha Mar’s additional room inventory, as both the development’s Hyatt and SLS properties were not open during the same period in 2017. And the March figures will have been influenced by

Easter falling earlier this year.

He argued, though, that Atlantis’s recent revelation of a strong performance on Paradise Island showed that increased air arrivals has delivered growth across-the-board.

“Some of this growth is obviously with the additional inventory brought on stream

by Baha Mar, but when I speak to Atlantis - because I was initially fearful there would be some cannibalisation with the opening of Baha Mar - that is definitely not happening at this time,” he told Tribune Business.

“They have very strong occupancies, very strong room

rates and, for lack of a better word, it’s incredible. What is particularly exciting to me is Atlantis is maintaining its occupancies and its room rates. They’re very bullish on the future. Their numbers are very robust moving forward.”

Fears that Baha Mar may split, rather than grow, the market for high-end visitors with Atlantis have been present ever since the $4.2bn Cable Beach development was conceived in 2003-2005.

Paul O’Neill, Atlantis’s former top executive, publicly voiced such concerns during that period at a Bahamas Chamber of Commerce luncheon.

Should such fears come to pass, it would create downward pressure on room rates at both New Providence’s mega resorts and, potentially, other hotel properties, with none generating the profits they need to keep Bahamians employed and maintain a sustainable business model.

But Graeme Davis, Baha Mar’s president, last week backed Mr D’Aguilar’s assertion that the “market split” fears have proven unfounded to-date. Speaking ahead of the official opening for Baha Mar’s last resort property, the Rosewood, he said: “I don’t think you’re seeing the cannibalisation people expected between Atlantis and ourselves. Both of us are growing the market together.

“I think we’ll grow the

market together if we work together, the Ministry of Tourism and the Nassau/Paradise Island Promotion Board.

If we all grow this market and work together we have a very good opportunity to ensure the market grows instead of being divided.”

And Audrey Oswell, Atlantis’s president and managing director, told Tribune Business earlier this month that the property had enjoyed “one of the strongest first quarters in many years”, revealing that business is “well ahead” of 2017 and 2016 numbers.

Mr D’Aguilar, meanwhile, conceded that The Bahamas’ cruise business, which accounts for 75 per cent of tourism industry volume, had been relatively flat year-todate. And he acknowledged

NOTICE Mr. Ramakrishna Vyakaranam, please be advised that you have until May 31st, 2018 to remove any and all personal belongings from the apartment. After that they will be disposed of.

that Baha Mar remains “a work in progress” as it completes its phased opening.

“It’s a property coming on stream slowly,” the Minister said. “I think they’re meeting their projections, and are very encouraged by the projections they are seeing, but it’s their first year. Anyone starting a business in the first year would expect occupancies to be in the 50-60 percent range.

“If you go to 100 percent straight away it causes strain.

I don’t expect Baha Mar in the first year to get to the significant occupancy levels Atlantis will have, but they’re growing.”

Mr D’Aguilar argued that the stopover visitor increase year-to-date had also been influenced by the Ministry of Tourism’s decision to focus its marketing resources online, research having shown that 67 percent - some two-thirds - of all travellers to The Bahamas book their vacations via the Internet.

“The refocusing of the Ministry of Tourism on its core mission, which is to spearhead the overseas marketing of the country, has definitely begun to yield exceptional results, and that was demonstrated in the first quarter,” he told Tribune Business.

“Our focus on looking at the way people book their vacations, and directing resources into the online space, is bearing fruit. All that is coming together to yield the amazing first quarter we have experienced.”

THE TRIBUNE

Monday, May 28, 2018, PAGE 7

Bahamas ‘cannot hold back tide’ on owner registry FROM PAGE ONE “destabilise” the Bahamian financial services industry.

He received support from fellow attorney Michael Paton, with whom he coheads the industry working group responding to the Government’s legislative initiatives. Mr Paton, too, suggested passage of the Bill should be delayed to enable The Bahamas to focus on avoiding another EU “blacklisting”.

“The beneficial ownership register is not a 2018 criteria,” he told Tribune Business. “I would say hold off on that. I would say prioritise “ring fencing” and substantive economic presence. That’s what we have to deal with right now.”

Mr Pinder, in a recent Bahamas Financial Services Board (BFSB) sponsored seminar, warned that a central beneficial ownership registry represented “a major shock” for an industry and client base already reeling from the imposition of numerous international regulatory initiatives within just a few years.

He added that the legislation would likely prove especially alarming for the high net worth Latin American clients that The Bahamas is increasingly targeting, as they had legitimate reasons for confidentiality given the often-high level of crime and political instability in their home countries. Disclosure of their wealth - via hacking or data leak from a Bahamian ownership registry - could place their lives and their families in jeopardy.

Mr Pinder thus urged the Government to delay the beneficial ownership registry until global standards on the issue further evolved, arguing that The Bahamas should see how UK legislation that forces public beneficial ownership registries on its overseas territories - Bermuda, Cayman Islands and the British Virgin Islands (BVI) - by 2020 plays out.

Calling for The Bahamas

to instead focus on complying with the EU’s demands for “economic substance” and the elimination of “ring fencing”, Mr Pinder added that the Bahamian financial services industry could illafford further “shocks and challenges” until the revamping of its business model, and a clearly defined “value proposition” and growth strategy, were developed and implemented.

Carl Bethel QC, the attorney general, told the same seminar that the Register of Beneficial Ownership Bill 2018 was “not set in stone”, but reiterated that it was an attempt to stay ahead of global supervisory changes.

The proposed registry will contain beneficial ownership information on “all corporate and legal entities” incorporated in The Bahamas, but will be neither “in the cloud” or linked to the Internet in a bid to prevent “hacking” or data breaches.

Beneficial ownership information is currently required to be held and maintained by the local “registered agent” for all Bahamas-domiciled entities, and this will now have to be “inputed” into the registry once its creation is given legal authority by the Bill’s passage.

The registry, though, is not an “open sesame” and will not be open to members of the public to conduct ownership information searches on all and sundry. The Bill provides that it can only be accessed by so-called “designated persons”, who must either be assigned by the attorney general’s office - which has direct responsibility for the registry - or selected by a “registered agent”.

The latter can only designate a maximum of two persons, and searches of the registry’s database can only be authorised by the attorney general’s office or one of the financial services regulators in response to domestic and overseas supervisory authority requests.

Tourism targets Junkanoo Beach deal FROM PAGE ONE us,” Mr D’Aguilar told this newspaper. “Governments have tried, have had limited success in running things, and it is much the same thing at Junkanoo Beach.

“We felt that if we injected, or put, a private company in there with a clear mandate and clear standard to maintain we’d yield better results. If we put a private sector company in there to run it, not so much to make a huge profit, they’d be much more mindful to collect the revenues there, maintain the standards, enforce the rules and bring about an improved customer experience at that beach.”

The Ministry of Tourism, in a series of little-noticed newspaper advertisements, has been seeking

Expressions of Interest (EoI) from private sector participants interested in taking over Junkanoo Beach’s management for the past several weeks.

Mr D’Aguilar was unable to say if any offers have yet been submitted, but pointed to the 30-year management outsourcing contract for Lynden Pindling International Airport (LPIA) to the Nassau Airport Development Company (NAD) as the sort of arrangement he was seeking for Junkanoo Beach.

For the area is a key strategic asset, located adjacent to the British Colonial Hilton and The Pointe development, and sitting at the eastern entrance to Arawak Cay and the “Fish Fry”. It is the closest public beach to downtown Nassau and the city’s cruise port,

representing a draw for visitors and locals alike, and lies across the road from the Courtyard by Marriott and other tourist amenities.

“Junkanoo Beach is the beach closest to the 3.6 million cruise passengers that come through Prince George’s Dock, and many find their way to Junkanoo Beach,” Mr D’Aguilar told Tribune Business.

“As Minister of Tourism, it would make sense to have someone with a business mind, business background and expertise with running things right to come in and run that on behalf of government.

“The FNM have said we will try as best as possible to put as many facets of government as possible in the hands of the private sector to run. We, in a very small way, are trying to

deliver on that promise.”

Mr D’Aguilar did not say how the proposed private sector manager will be compensated, although this will likely take the form of a management fee. Who pays this will have to be determined, but the very nature of “outsourcing” is intended to ensure the taxpayer no longer picks up the bill.

“The belief governments can run things better has been proven wrong time and time again,” he reiterated.

“We want to see if we can create an opportunity for a private sector organisation to run this on our behalf; bill people, collect revenue when they’re supposed to, maintain things and yield better results.

“It creates opportunity.

SEE PAGE 8

PAGE 8, Monday, May 28, 2018

THE TRIBUNE

Tourism targets Junkanoo Beach deal FROM PAGE SEVEN Not for a large company, but a company looking to grow the amenity, improve the experience for the customer and deliver a better tourism product. That’s our goal.”

Mr D’Aguilar, though, emphasised that outsourcing Junkanoo Beach’s management to the private sector - if it does happen - will not be a one-shot “cure all” for Nassau’s cruise tourism product deficiency.

“It’s critical but not the only thing we’re thinking of,” he told this newspaper.

“Just by running Junkanoo Beach better, if you think that’s going to solve our lack of product and things to do, and available things to do, it’s not going to solve that.

“We’re taking a component of the cruise product that a lot of passengers use, and we’re trying to improve that experience. We want to see if that makes a difference.”

Use EU’s demands to ‘set our own table’ FROM PAGE ONE economic substance regime in such a way that benefits us as well as meets the EU criteria and BEPS (Base Erosion and Profit Shifting) criteria.

“The OECD (Organisation for Economic Co-Operation and Development) criteria is essentially the BEPS criteria.

It’s open to us to design the regime in a way that hopefully benefits The Bahamas

and creates GDP growth as well as meeting that criteria.

We have the opportunity to set our own table provided we meet the basic criteria of BEPS five.”

BEPS five refers to that portion of the OECDinspired initiative designed to eliminate so-called “harmful tax practices”. The EU’s own anti-tax avoidance measures, running in parallel to the OECD’s, are effectively

MARKET REPORT THURSDAY, 24 MAY 2018

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

BISX ALL SHARE INDEX: CLOSE 1,967.25 | CHG 32.61 | %CHG 1.69 | YTD -96.32 | YTD% -4.67 BISX LISTED & TRADED SECURITIES 52WK HI 4.40 19.17 7.50 3.76 1.64 0.19 4.05 8.90 6.60 5.30 11.50 2.71 1.61 8.21 6.10 11.48 7.29 13.67 12.51

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

1050.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

PREFERENCE SHARES

1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 105.00 100.00 100.00 10.00 1.00

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

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

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

52WK LOW 100.00 100.00

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

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

SYMBOL FBB18 FBB22

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

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

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

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

MUTUAL FUNDS 52WK HI 2.13 4.14 1.99 178.69 157.58 1.55 1.70 1.62 1.10 6.99 8.54 6.15 10.52 11.46 10.46

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

LAST CLOSE 4.40 17.43 9.09 3.35 1.00 0.18 3.35 8.89 6.12 3.85 10.05 2.57 1.61 7.68 6.10 10.60 6.43 4.05 12.51

CLOSE 4.40 17.43 9.09 3.35 1.00 0.18 3.35 8.89 6.12 4.10 10.05 2.60 1.61 7.68 6.10 10.60 6.43 4.05 12.51

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.25 0.00 0.03 0.00 0.00 0.00 0.00 0.00 0.00 0.00

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

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

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

CLOSE 100.00 100.00

CHANGE 0.00 0.00

108.26 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

LAST SALE 100.00 100.00 108.26 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

VOLUME

115,117 421

170

VOLUME

EPS$ 0.361 0.932 -0.306 0.281 -0.973 0.000 -1.465 0.638 0.573 0.171 0.627 0.102 0.330 0.000 1.129 0.679 0.610 0.293 0.543

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

P/E 12.2 18.7 N/M 11.9 N/M N/M -2.3 13.9 10.7 24.0 16.0 25.5 4.9 N/M 5.4 15.6 10.5 13.8 23.0

YIELD 1.82% 6.48% 0.00% 6.87% 0.00% 0.00% 0.00% 3.60% 3.59% 2.93% 6.17% 2.31% 3.11% 1.09% 5.25% 4.72% 3.11% 2.96% 4.64%

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

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

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

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

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

NAV 2.14 4.13 2.00 179.39 153.02 1.55 1.68 1.63 1.09 7.15 8.14 6.41 11.26 11.68 10.24

YTD% 12 MTH% 0.31% 4.30% 0.16% 5.93% 0.17% 2.36% 4.66% 3.89% -0.25% 4.57% 1.04% 4.26% -1.06% 2.15% 0.58% 3.61% -0.48% 4.84% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69%

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

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

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

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

adopting the same criteria in assessing whether The Bahamas has met its demands to establish an “economic substance” regime by December 31, 2018.

Both the EU and OECD want corporate profits, revenues and assets to be taxed in the jurisdictions where they are generated. They are thus aiming to prevent companies, especially multinational corporations, from exploiting gaps in tax types, rates and rules to artificially shift profits from jurisdictions where they are generated to low or “no tax” jurisdictions, thus lowering their tax bill.

This has prompted the EU’s demands for all nations, including The Bahamas, to impose “economic substance” regimes that prevent this - effectively requiring companies to do “real business” in a jurisdiction. While this appears onerous, KP Turnquest, the Deputy Prime Minister, echoed Mr Paton’s call for The Bahamas to turn the situation to its advantage.

“Some people will look at this glass as half-empty but, in truth, it’s half-full,” he told Tribune Business. “There are opportunities for us to take advantage of the situation and encourage some of our clients to domicile here with their businesses and second homes. This may well, at the end of the day, turn out to be beneficial for us.”

Ryan Pinder, a former financial services minister, told a recent BFSB-sponsored seminar that family offices, intellectual property, information technology and regional distribution/trade hubs, the latter with World Trade Organisation (WTO) membership in mind, were among the industries The Bahamas could target via a transparent, preferential tax regime associated with “economic substance”.

“The development of economic substance regimes can be an opportunity for The Bahamas,” he said. “We can define regimes and what constitutes economic substance that are beneficial and relevant to the industries we want to develop.”

Mr Pinder said preferential tax regimes could be established for headquartering; distribution and services centres; fund management; financing and leasing; shipping and banking and insurance. He added, though, that transparency was key, along with the exchange of information on rulings by Bahamian tax authorities.

“This is still a wonderful place for headquarters,” Mr Turnquest told Tribune Business. “Any kind of industry that takes advantage of our location, the professionals

we have available, the professional services we have and the environment we have are likely targets.”

This, he added, held the potential to generate more lucrative, “career-based employment” for Bahamians with both Shell and Wynn Group having already committed to establishing head offices in this nation. However, to fully turn “economic substance” into an advantage The Bahamas will have to address its “ease of business” and “cost of business” deficiencies.

Mr Turnquest, meanwhile, described the EU’s “economic substance” demand as “a very technical standard” with no set criteria to guide nations in crafting regimes that meet its demands. He added that a working committee, featuring Ministry of Finance officials and financial services industry executives, had been created to address the matter.

He acknowledged that Friday’s removal of The Bahamas from the EU’s “blacklist” was merely a “first step” in addressing the 28-nation bloc’s demands, with this nation’s delisting removing any “reputational risk” - at least for now.

“While there were no economic penalties attached to that listing, we did suffer a bit of reputational risk or potential reputational risk, so it’s important we got off as soon as possible to avoid any disruption,” Mr Turnquest told Tribune Business.

“The fact we reacted as quickly as we did, and comprehensively as we did, was a good thing in terms of showing to the international community our commitment, and that we are a well-regulated, compliant jurisdiction.”

The EU, in documents accompanying its decision to remove The Bahamas, revealed that it received a satisfactory commitment to addressing its demands from this nation on March 9, 2018 - four days before its finance ministers confirmed the country’s “blacklisting”.

This raises questions as to why the EU followed through in treating The Bahamas in this manner, with its actions likely to spark concerns that it was seeking to “make an example” of this nation or seeking to avoid “loss of face” on its part.

Still, The Bahamas’ de-listing, following two-and-a-half months on the EU list, effectively reinstates the “status quo” that existed in early March. This nation’s removal will be for nought unless the 28-nation bloc’s demands are addressed within the next seven months, or The Bahamas could be “blacklisted” again come year-end.

HELP WANTED

Retail company seeking persons to issue flyers and direct customers into the store. Must be well groomed, punctual and willing to work and grow with the company.

Send resume and photo to 242-815-5808 or customerservice@tresorrarebahamas.com.

No calls. Salary plus commission.

HELP WANTED

Noteable Bakery needs Baker Cake Decorator

For more info email: needbaker17@gmail.com

THE TRIBUNE

Monday, May 28, 2018, PAGE 9

Ex-Arizona regulator charged with bribery heads to trial

PHOENIX, ARIZONA Associated Press ABOUT six years ago, an elected Arizona utility regulator who is now accused of accepting bribes had $31,000 funneled to him from a water company owner and tried to get the owner to buy him a $350,000 piece of land, authorities said.

In exchange, then-Corporation Commissioner Gary Pierce voted for a rate increase that benefited the water company and approved a measure that lets the firm’s owner use ratepayer money to pay his personal income tax bill, prosecutors said.

Pierce and three other people are scheduled to go on trial Wednesday in an influence-peddling case filed more than two years after Pierce left the commission due to term limits.

Pierce, his wife, Sherry, water company owner George Johnson and lobbyist Jim Norton dispute the allegations and have pleaded not guilty to bribery and other charges.

An indictment said Johnson arranged to have $31,000 in payments funneled to Pierce and his wife through a consulting firm. The money was paid to Sherry Pierce, who worked for the consulting firm, and deposited into a bank account held by her and her husband, prosecutors said.

Prosecutors said the firm was run by an “unindicted co-conspirator” who will testify at trial on behalf of the government, but they haven’t publicly revealed that person’s identity.

Norton’s attorney has said in court records that Norton’s ex-wife, Kelly Norton, is the unindicted co-conspirator.

Jim Norton, who lobbied on Johnson’s behalf, is accused of acting as a gobetween for Gary Pierce and Johnson and aiding in the real estate transaction.

Authorities say money for the purchase of property in Mesa was to be provided by Johnson.

The indictment doesn’t make clear what became of the property purchase, but Norton’s lawyer has said the transaction never occurred.

Prosecutors said in court papers that in an aboveboard

business relationship, Jim Norton would have hired Sherry Pierce directly and Gary Pierce would have disclosed his wife’s employment.

Instead, prosecutors said the consulting business’s sole purpose “was to conceal defendant Johnson’s payment to defendant Gary Pierce’s bank accounts”.

Attorneys for Gary Pierce and Johnson didn’t return a phone call and email seeking comment. Doug Behm, an attorney for Kelly Norton, declined to comment.

“Mr. Norton looks forward to going to trial next week and having the government prove the allegations against him,” said Ivan Mathew, an attorney representing Jim Norton.

Ashley Adams, Sherry Pierce’s attorney, said her client was paid for legitimate political work. “We are looking forward toward restoring the Pierces’ good name,” Adams said.

Mathew said in court records that Kelly Norton told FBI agents she didn’t want to hire Sherry Pierce at her consulting firm and got upset when she learned Johnson was going to provide money for the real estate deal.

“I threw a fit when I saw that, that Jim was gonna buy this land for Gary, and Jim said, ‘Don’t worry. George is putting up the money,’” Mathew quoted Kelly Norton as telling FBI agents.

Johnson tried unsuccessfully to prohibit prosecutors from presenting evidence and testimony of his wealth, arguing doing so would encourage jurors to find against Johnson based on how much money he has.

In court records, prosecutors included excerpts from two 2011 emails in which they say Gary Pierce discussed how the real estate deal should be carried out.

In one email to the unindicted co-conspirator, Pierce suggested a starting price to be used in the negotiations and said the deal needed to happen fast, prosecutors say. Two days later, Pierce said in another email that he wanted his name taken off the letter of intent for the property, according to a filing by prosecutors.

Authorities say the bribery allegations were discovered

HELP WANTED

Cosmetic Company seeking an accountant/Book keeper for retail stores.

Accountant skills and qualifications: Must be willing to learn, work hard and grow with company.

Email resume to: customerservice@tresorrarebahamas.com.

COMMERCIAL BUILDING FOR SALE This attractive building located on Jerome Ave in high traffic area is currently fully rented and is an ideal investment.

Price: $398,000 ONO. CALL 427-6969 or 465-2943

NOTICE

NOTICE is hereby given that CALIS MEUZE of Abaco, Marsh Harbour, Abaco, 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 28th day of May, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, PANDORA VICTORIA McPHEE of #16B Sunlight Village intend to change my name to CAROL JOHNSON. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O. Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

FORMER Arizona utility regulator Gary Pierce, left, is shielded by his lawyer as he leaves Federal Court last year after being arraigned on bribery and fraud charges in Phoenix.

during a larger, unrelated federal investigation, though prosecutors have declined to reveal its focus.

Pierce, who left the commission in early 2015, has acknowledged he was questioned by FBI agents investigating the 2014 commission election.

Pinnacle West Capital Corp., the parent company of electric utility Arizona Public

Service Co, was widely believed to have spent $3.2m backing Republicans for the utility commission. Pinnacle West Capital disclosed in public filings in August 2016 that it received federal grand jury subpoenas seeking information on elections involving the commission and secretary of state.

THE TRIBUNE

Monday, May 28, 2018, PAGE 11

COAL INDUSTRY PRAISES NORTHAM DECISION TO SIGN TAX CREDIT RICHMOND Associated Press SOUTHWEST Virginia lawmakers and coal industry representatives see hope for economic development in Gov Ralph Northam’s decision to sign a bill reinstating a pared-down tax credit for certain coal producers, but environmental groups call the move a wasteful corporate giveaway.

The measure Northam signed earlier this month revives a tax credit that expired in 2016, after previous legislative attempts to bring it back were vetoed by former Gov Terry McAuliffe.

This year’s bill is different in that it whittles down the recipients and expected cost to the state - only producers of metallurgical coal, used in steel production, are eligible. Before the credit expired, producers of steam coal, used to produce electricity,

also qualified.

Northam said in a statement provided by his spokesman that he signed the legislation because he believes it will help metallurgical coal stay competitive and boost southwest Virginia’s economy.

“At the same time, because of its targeted nature, this legislation acknowledges the reality that we must continue to diversify our Commonwealth’s energy economy and make Virginia a leader in renewables and energy conservation,” Northam said.

The General Assembly’s watchdog agency, the Joint Legislative Audit and Review Commission, reviewed the effectiveness of the state’s tax credits in 2012. Its report covered the tax credit reinstated this year, which is meant to incentivise coal mine operators, and another meant to incentivise power producers to buy Virginia coal.

NOTICE

NOTICE

In the Estate of STEPHEN LAERTES WHITE late of Ocean Club Estates Subdivision on Paradise Island another of the Islands of the Commonwealth of The Bahamas, one of the Islands of the Commonwealth of The Bahamas, deceased.

In the Estate EMMETT THURLOW PRITCHARD late of Port New Providence Subdivision in the Eastern District of the Island of New Providence another one of the Islands of the Commonwealth of The Bahamas, deceased.

NOTICE is hereby given that all persons having any claim or demand against the above Estate are required to send the same duly certified in writing to the undersigned on or before the 9th day of July A.D. 2018, after which date the Executors will proceed to distribute the assets of the deceased having regard only to the claims of which they shall then have had notice.

NOTICE is hereby given that all persons having any claim or demand against the above Estate are required to send the same duly certified in writing to the undersigned on or before the 9th day of July A.D. 2018, after which date the Executor will proceed to distribute the assets of the deceased having regard only to the claims of which he shall then have had notice.

AND NOTICE is hereby given that all persons indebted to the said Estate are requested to make full settlement on or before the date hereinbefore mentioned.

AND NOTICE is hereby given that all persons indebted to the said Estate are requested to make full settlement on or before the date hereinbefore mentioned.

HARRY B. SANDS, LOBOSKY & COMPANY Attorneys for the Executor CHAMBERS Shirley House 253 Shirley Street Nassau, Bahamas.

HARRY B. SANDS, LOBOSKY & COMPANY Attorneys for the Executor CHAMBERS Shirley House 253 Shirley Street Nassau, Bahamas.

THE WEATHER REPORT

5-Day Forecast

TODAY

ORLANDO

High: 86° F/30° C Low: 72° F/22° C

TAMPA

TUESDAY

WEDNESDAY

THURSDAY

FRIDAY

Mostly cloudy, a t‑storm in spots

Mostly cloudy and humid

Humid with some sun

Humid with periods of sun

Clouds and sun

Times of clouds and sun

High: 84°

Low: 75°

High: 84° Low: 75°

High: 84° Low: 76°

High: 84° Low: 75°

High: 83° Low: 76°

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

94° F

81° F

94°-81° F

94°-82° F

94°-82° F

95°-83° F

High: 86° F/30° C Low: 74° F/23° C

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: 80° F/27° C Low: 77° F/25° C

15‑25 knots

S

High: 83° F/28° C Low: 74° F/23° C

8‑16 knots

FT. LAUDERDALE

FREEPORT

High: 84° F/29° C Low: 76° F/24° C

E

W S

E

W

WEST PALM BEACH

N

uV inDex toDay

TONIGHT

High: 82° F/28° C Low: 76° F/24° C

MIAMI

High: 83° F/28° C Low: 75° F/24° C

10‑20 knots

Statistics are for Nassau through 2 p.m. yesterday Temperature High ................................................... 79° F/26° C Low .................................................... 77° F/25° C Normal high ....................................... 85° F/30° C Normal low ........................................ 72° F/22° C Last year’s high ................................. 92° F/33° C Last year’s low ................................... 77° F/25° C Precipitation As of 2 p.m. yesterday ................................. 1.22” Year to date ............................................... 18.40” Normal year to date ..................................... 8.16”

ELEUTHERA

NASSAU

High: 84° F/29° C Low: 75° F/24° C

Forecasts and graphics provided by AccuWeather, Inc. ©2018

High: 82° F/28° C Low: 78° F/26° C

N

KEY WEST

High: 82° F/28° C Low: 77° F/25° C

High

Ht.(ft.)

Low

Ht.(ft.)

Today

7:44 a.m.

8:11 p.m.

2.5 3.0

1:54 a.m. ‑0.1 1:51 p.m. ‑0.3

Tuesday

8:26 a.m.

8:51 p.m.

2.4 3.0

2:37 a.m. ‑0.1 2:30 p.m. ‑0.2

Wednesday 9:07 a.m.

9:30 p.m.

2.3 3.0

3:18 a.m. ‑0.1 3:09 p.m. ‑0.1

Thursday

9:47 a.m.

10:09 p.m.

2.3 2.9

3:58 a.m.

3:48 p.m.

0.0 0.0

Friday

10:28 a.m.

10:48 p.m.

2.2 2.8

4:39 a.m.

4:27 p.m.

0.0 0.1

Saturday

11:09 a.m.

11:29 p.m.

2.1 2.7

5:19 a.m.

5:07 p.m.

0.2 0.3

Sunday

11:53 a.m. ‑‑‑‑‑

2.1 ‑‑‑‑‑

6:01 a.m.

5:51 p.m.

0.3 0.4

sun anD moon Sunrise Sunset

High: 83° F/28° C Low: 78° F/26° C

N

S

E

W

8‑16 knots

S

8‑16 knots Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

tiDes For nassau

6:21 a.m.

7:54 p.m.

Moonrise Moonset

7:12 p.m.

5:49 a.m.

Full

Last

New

First

May 29

Jun. 6

Jun. 13

Jun. 20

CAT ISLAND

E

W

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

ANDROS

SAN SALVADOR

GREAT EXUMA

High: 83° F/28° C Low: 78° F/26° C

High: 84° F/29° C Low: 79° F/26° C

N

High: 84° F/29° C Low: 79° F/26° C

E

W S

LONG ISLAND

insurance management tracking map

High: 84° F/29° C Low: 78° F/26° C

8‑16 knots

MAYAGUANA High: 83° F/28° C Low: 78° F/26° C

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

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

H

High: 83° F/28° C Low: 78° F/26° C

GREAT INAGUA High: 86° F/30° C Low: 79° F/26° C

N

E

W

E

W

N

S

S

8‑16 knots

7‑14 knots

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

Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday:

WINDS SE at 8‑16 Knots SE at 7‑14 Knots SE at 8‑16 Knots SE at 7‑14 Knots ESE at 8‑16 Knots ESE at 8‑16 Knots ESE at 8‑16 Knots ESE at 10‑20 Knots SE at 8‑16 Knots SE at 8‑16 Knots S at 12‑25 Knots SSE at 7‑14 Knots SE at 8‑16 Knots ESE at 8‑16 Knots E at 7‑14 Knots ESE at 8‑16 Knots ESE at 8‑16 Knots ESE at 8‑16 Knots ESE at 8‑16 Knots ESE at 8‑16 Knots SE at 8‑16 Knots SE at 7‑14 Knots SE at 8‑16 Knots ESE at 7‑14 Knots SE at 8‑16 Knots ESE at 8‑16 Knots

WAVES 3‑5 Feet 2‑4 Feet 1‑3 Feet 1‑2 Feet 3‑5 Feet 3‑5 Feet 3‑5 Feet 3‑6 Feet 2‑4 Feet 2‑4 Feet 3‑6 Feet 2‑4 Feet 1‑3 Feet 1‑3 Feet 3‑5 Feet 3‑5 Feet 2‑4 Feet 2‑4 Feet 4‑7 Feet 4‑7 Feet 1‑3 Feet 1‑3 Feet 1‑3 Feet 1‑3 Feet 2‑4 Feet 2‑4 Feet

VISIBILITY 6 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 4 Miles 6 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles

WATER TEMPS. 75° F 75° F 81° F 81° F 77° F 77° F 82° F 82° F 78° F 78° F 78° F 78° F 81° F 81° F 81° F 81° F 83° F 83° F 80° F 80° F 78° F 78° F 83° F 83° F 79° F 80° F

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