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FRIDAY, MAY 31, 2019

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Provider for $1.3bn tax giveaway digital B$ ‘will not be greedy’ T

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

HE government gave up more than $1.3bn in customs duties during the 2015-2016 fiscal year due to the multiple tax breaks afforded investors and corporate entities.

The auditor-general’s report for that period, tabled in Parliament on Wednesday, revealed that Customs collected just $4.138m on more than $6bn worth of imports covered by investment incentive legislation.

Without these concessions, the report discloses that some $1.333bn would ordinarily have been payable to Customs on these imports via a combination of excise tax and import duties.

• Customs got $4m on $6bn in imports • Would have been $1.3bn with no tax breaks • Revelation comes as DPM unveils review

“Conditionally, duty-free goods with a ‘landed cost’ of $6.093bn would have generated $1.333bn duty and excise tax revenue had it not been for the concessions granted,” the auditor-general’s report found.

“Of this amount, $4.139m was charged as revenue collection, and the remaining balance of $1.329bn recognised as ‘revenue foregone’.”

The auditor-general’s revelations are likely to ignite debate over the breadth and extent of investment incentives granted to both Bahamian and foreign-owned entities and investments at a time when

the cash-strapped Public Treasury needs every cent it can get to alleviate The Bahamas’ fiscal crisis.

The report identifies the sectors bringing in the highest-valued goods, and thereby enjoying the greatest tax breaks and concessions, as the hotel industry and Bahamas Power & Light (BPL).

Some $2.6bn worth of petroleum products were imported duty-free, with the auditor-general identifying the beneficiaries as BPL “and any licensed entity”.

BPL customers would likely face a much higher fuel charge without this incentive, but it effectively means

Bahamian taxpayers pay the price in terms of foregone taxes at the front end.

The report adds that more than $2.5bn worth of imported goods came in duty-free under the Hotels Encouragement Act, while another $360m benefited from the terms of the Family Island Development Act that was extended for a further two years in Wednesday’s budget.

“Other trade sources”, which ranged from charities and religious organisations to tax breaks provided to farmers, manufacturers and government housing

SEE PAGE 5

‘Nowhere near out of the fiscal woods’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas is “nowhere near out of the woods” with its fiscal woes, the deputy prime minister admitted yesterday, with the government still confronting several “ticking timebombs”.

KP Turnquest told Tribune Business that issues with the potential to “throw us out of whack” include the presently-unknown Bahamas Telecommunications Company (BTC) pension liability plus the unfunded retirement obligations owed to civil servants generally (see other article on Page 3B).

While acknowledging that the government had expected to be “a little further ahead” at this point

• DPM warns on several ‘ticking time bombs’ • No new or raised taxes till existing ones maxed • To revenue critics: ‘Deficit is what counts’

KP TURNQUEST in eliminating the persistent annual fiscal deficit, he added that it was “on the right path” to correcting the country’s finances and setting them back on a sustainable path.

‘Breakthrough’ in battle with foreign realtors

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE Bahamas Real Estate Association’s (BREA) president yesterday said it has finally made a “breakthrough” in cracking down on unscrupulous foreign realtors who are “crippling” the industry.

Christine Wallace-Whitfield, pictured, addressing the Rotary Club of West Nassau, said the US National Association of Realtors (NAR) had “vowed to prosecute” any

of its members who attempted to sell Bahamian real estate without partnering with a local realtor.

“One of my goals as president is to get control on foreign persons coming into the country to sell our land,” she added.

“BREA has been faced with numerous complaints over the years with foreign realtors coming into the country with the intent to engage in selling real estate in The Bahamas, and I am sure that they will continue to find a way.

SEE PAGE 6

Wealthy Bahamians greatest tax cheats

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net “HIGH-END” Bahamians and companies are the biggest tax dodgers, the deputy prime minister revealed yesterday, adding: “Poor people pay their taxes.”

K Peter Turnquest, speaking at a post-budget briefing, said it was those who can afford to pay but choose not to that present the greatest compliance challenge for the government as it moves to enforce all tax laws.

Emphasising that the government was not seeking to be “punitive”, or engage in a “gotcha exercise”, as it pursues all revenue due to it, Mr Turnquest warned: “We do intend to collect the government’s revenue. For a number of reasons we have been relatively lax, and in some instances slack, in the enforcement of tax laws.

“That has had its effect.

Each of us as citizens have an obligation to pay our fair share. We do not have a progressive tax system,

SEE PAGE 6

The 2019-2020 budget, unveiled by Mr Turnquest in the House of Assembly on Wednesday, effectively sent the message that the government intends to hold its present fiscal course and faithfully stick to its threeyear consolidation plan despite the ongoing domestic and foreign pressures.

It deliberately avoided any further shocks or disruption to the Bahamian economy following last year’s VAT hike and other revenueraising measures, seemingly recognising that businesses and consumers cannot shoulder any greater burden, with the government instead

targeting untapped revenue streams already on the books together with greater compliance and administrative efficiency.

Mr Turnquest yesterday withdrew a suggestion that these measures alone could yield an extra $100m in annual revenue for the Public Treasury, but conceded that the government had reached a stage where it needed to “plug all the holes” before introducing any new taxes.

Voicing optimism that the government will hit its 2019-2020 revenue targets

SEE PAGE 4

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE digital Bahamian dollar’s technology provider yesterday pledged to “open up” opportunities for local start-ups and financial operators, and promised: “We won’t be greedy.”

Jay Joe, NZIA Ltd’s chief executive, said the network infrastructure it will construct to facilitate the fiat currency’s nationwide rollout can provide the platform for existing banks, payments solutions providers and future market entrants “to create new services around the CBDC” (Central Bank digital currency).

Speaking as NZIA formally sealed its partnership with the Central Bank for the digital Bahamian dollar’s development, Mr Joe said the company’s work would “augment” - rather than “disrupt” current financial services providers and their business models.

Describing the digital Bahamian dollar’s creation as “an historic project not just for the Bahamian people but on a global level”, he added that the initiative will “not succeed” if NZIA - a joint venture between IBM and a Singapore-based software company specialising in blockchain solutions - tries to hog all the work for itself.

“When you look at typical Central Bank digital currency (CBDC) projects, a lot of companies try to position themselves to build the whole caboodle, and we’re not into that,” Mr Joe said.

JOHN ROLLE “We’re going to build the infrastructure component, build the back-end, and open the front-end to local technology start-ups, banks, to create new services around the CBDC. This is a key aspect of making this a living, breathing thing that people engage with.

“If we try to be too greedy with this it will not succeed. We want to open the front-end for people to build solutions and services not thought of. There’s a lot of creativity out there and we want to foster that. This is the right way to do it.”

NZIA Ltd was selected as the preferred technology solutions provider for the digital Bahamian dollar’s creation, and roll-out, in early March this year, and yesterday’s contract signing with the Central Bank triggers the “ramp up” of both sides’ efforts to launch the “pilot project” on Exuma.

John Rolle, the Central Bank’s governor, said Exuma residents should be using the digital version of the Bahamian dollar before year-end, with the product launched in other Bahamian islands next year once

SEE PAGE 7

PAGE 2, Friday, May 31, 2019

THE TRIBUNE

Addressing key workplace woes MORE than 80 percent of Bahamian businesses do not have the benefit of on-staff human resources professionals.

Literally thousands of Bahamians are operating without a buffer between them and management. For the new few weeks we have committed this column to answering the many questions that small businesses and those they employ have. Here are the first three, together with answers: Question 1 What is the easiest way to fire an employee?

Answer: There is never an easy way to terminate an employee. No matter how egregious the infraction, or how much the company is unable to financially support the employee, we must always remember that we are dealing with human beings. The three crucial rules that must be respected when severing ties with an employee are: • Consult the labour laws, especially the Employment Act. Know exactly where both you and the employee stand in light of any challenge to the company’s decision. Sometimes the employee is unfairly dismissed and the company is forced to pay.

• Communicate the message with tact and precision.

It becomes more painful to the staff member when there is delay and wandering around the process.

Swift and decisive action after deep contemplation is always best.

• Be as kind and respectful as possible throughout the process. Give the employee as much as you can in terms of severance pay, references, words of advice, an exit interview and anything else that will give them closure.

Questions 2 How does an employee cope with a disgusting manager?

Answer: Almost every Bahamian can identify in some way or another with an oppressive, incompetent, rude or obnoxious manager.

The first thing to remember in these situations is that managers are merely people given the responsibility of leading the team or process.

They have the same fears, shortcomings and issues as everyone else.

Open communication with the manager always works best. If they seem unable to sit and reason, a third party leader - perhaps the “manager’s manager” needs to be included in the conversation.

IAN FERGUSON BY

The silent revolution, gossip and slander, or outright internal warfare that we resort to in these situations is counterproductive and does not serve employee or company well.

Question 3 How do you now when social media has become more of a distraction than a blessing for employees?

Answer: In this digital age, no progressive company operates without taking advantage of technology, including social media. By the same token, many employees seem engrossed in WhatsApp, Twitter, Facebook and other social media outlets during work time.

There are any number of security controls that employers can use to ensure that social media is not abused by an employee.

The company’s policy manual must speak clearly to social media use, and ongoing training efforts must be directed towards encouraging compliance.

The best way to ensure employees do not over-use social media is to give them meaningful work assignments. When employees have clearly defined deliverables that they are held accountable for producing, they will find less time to be idle.

Stay tuned next week for our response to three more of your human resourcesrelated questions.

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

THE TRIBUNE

Friday, May 31, 2019, PAGE 3

CIVIL SERVICE PENSION REFORM EYED BY GOVT

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE government is in the process of hiring consultants to study the feasibility of making civil servants contribute financially to their own retirement via a defined contribution pension plan.

KP Turnquest, deputy prime minister, told Tribune Business yesterday that while no final decision had been taken the government was mulling such reforms as it grapples with the multibillion liability presented by unfunded civil service pensions.

While unsure whether all responses to the consultancy request for proposal (RFP) have been received, Mr Turnquest said: “We want to update a study done in a previous period with respect to converting to a defined contribution plan. Hopefully we will have that study, and finalise our planning and progress around that.”

Asked whether the government was exploring changes that will require

civil servants to help fund their own retirement, the deputy prime minister described this as an “unconfirmed thesis” but added: “The government has not made any final decision about that, but it’s in line with the general thinking I believe.”

The Minnis administration has little choice but to tackle an issue that could ultimately sink the government’s finances once these multi-billion dollar liabilities start to become due in the next ten to 15 years.

Defined contribution pension plans, which virtually all companies and public sector entities now employ, require employees to contribute a portion of their own salary towards their retirement. These are matched by employers, although their contribution is usually capped at five percent of the worker’s salary.

However, the current system for Bahamian civil servants is more “a pay as you go” with funding currently worth around $100m a year allocated to retirees every year in the budget.

Reform will be especially

difficult given the potential opposition from many in the civil service, plus the existence of union contracts.

The International Monetary Fund (IMF) has for several years, with increasing urgency, been prodding the government to address the multi-billion dollar liability it and Bahamian taxpayers face as a result of unfunded civil service pension liabilities.

Previous research by the KPMG accounting firm suggests this unfunded liability is now likely to be approaching $2bn, with this sum set to increase to $2.5bn by 2022, and $4.1bn by 2032, unless reforms are enacted.

The IMF, for its part, said in 2016: “Government pensioners (15 percent of the public work force) receive pension payments from the budget that, on average, stood at one percent of GDP and 7.3 percent of tax revenue per year in 1994–2014.

“The accrued pension liabilities [will total] $1.5bn in 2021 (17.9 percent of GDP).

Pension payments and

liabilities are projected to reach $230m (1.5 percent of GDP) and $3.7 billion (24 percent of GDP), respectively, by 2030.”

Its 2018 Article IV report projects a $2.2bn increase in these unfunded liabilities over the 18 years to 2030, which translates into an average increase of $122m per year.

Mr Turnquest, meanwhile, yesterday said the unfunded civil service pension liabilities “belong in the same bucket” as the obligation to inject $39m into the now-closed Bahamas Telecommunications Company’s (BTC) former defined benefit employee pension plan - a commitment two previous administrations have failed to meet.

The Ingraham administration committed to place the money into a feeder trust to cover the plan’s deficit as part of BTC’s sale to Cable & Wireless Communications (CWC) in 2011, but this sum was never paid.

Former prime minister, Perry Christie, said this obligation had ballooned to $62m and $99m in 2014 and

Govt targets $20m-$50m boating industry boost

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE GOVERNMENT could generate between $20m-$50m in extra revenue from fully collecting all due cruising permit and yacht charter fees, the deputy prime minister said yesterday.

K Peter Turnquest, speaking at a post-budget press conference, conceded it was difficult to determine how much additional income the government will realise as it has not been able to capture the necessary data on the boating market.

“It’s hard to say because we have, quite frankly, been missing that segment. What we think, and what industry tells us, is a significant amount of revenue. We know that there are vessels in The Bahamas cruising throughout,” Mr Turnquest said.

“We know that there are facilitators in the US selling charters. Some of those charters are here and not declaring that they are actually doing charters from The Bahamas. There are others coming over from the US. Particularly in Bimini, this is a problem.

They come over for a day

MARLON JOHNSON fishing and whatever, and don’t declare they are on a charter.

“We are missing all that revenue. The estimates could be anywhere from $20m-$50m. What we have built is a system to track marine traffic, and is going to be able to tell us who has - and has not - paid. It is going to make it easier and more efficient for people to register. Hopefully that will drive natural compliance, and derive the kind of revenue we are seeking.

Mr Turnquest, in unveiling the 2019-2020 budget, confirmed that “government will increase cruising permit fees from $150 on boats up to 34 feet, and $300 on boats 35 feet and over, to

a set of rates based on size and length of stay ranging from $150 per three months to $4,000 per year. These rates will become effective January 1, 2020, so as to allow a transition period for the boating industry”.

Marlon Johnson, the Ministry of Finance’s financial secretary, said the government “feels comfortable” that the boating industry can absorb increased cruising permit rates despite marina industry concerns.

He added that the government had conducted benchmarking studies on similar fees in rival Caribbean jurisdictions before unveiling the new structure in yesterday’s 2019-2020 budget.

“We feel comfortable the market can absorb it,” Mr Johnson said. “We anticipate push back from some of the players in the market, but we feel with rates elsewhere in the region the market can absorb the increase.”

The Association of Bahamas Marinas (ABM) said that while it supports the government’s need to increase revenue, it remains “deeply concerned” that proposed fee increases on the boating sector are being announced in an environment where there has been

no improvement in important aspects of the industry’s infrastructure.

The government also plans to introduce a single window for the online processing of marine traffic and fees such as cruising permits and yacht charter fees.

To advertise in The Tribune, contact 502-2394

2016, respectively, but his administration also failed to pay. The Minnis administration has now allocated $3m in the 2019-2020 budget to start dealing with this as it works on a “multiyear” strategy to cover the balance.

Mr Turnquest said new actuarial valuations will have to be performed to determine the size of the now-closed BTC plan’s deficit, confirming that it will increase the existing $360m in unfunded arrears that the government is paying off through the 2020-2021 fiscal year.

“This is an added commitment,” he said.

“However, just like with the arrears, we’re going to pay that out and liquidate it as best we can. It’s now becoming more significant as more and more of these persons in the pension plan start to retire. It is a priority, absolutely.”

The deputy prime minister said he became aware of the government’s unmet BTC pension obligation last year during a meeting with the company’s executives when the issue was raised.

“It’s one of those issues where I don’t know if we have an actuarial valuation; that’s part of the issue,” he told Tribune Business. “We can’t pay unless we know what the hell it is we’re paying, and when the commitment is going to come to fruition and crystallise.

“I wouldn’t say it’s a surprise but it’s one of these things you try to manage.

It is an unfortunate liability we’ve inherited, and a commitment we’re going to have to deal with. It’s no different from the liability we have for pensions for public servants. You can put it in the same bucket, quite frankly.”

In the Estate of FRANKLYN SAMUEL M. WILLIAMS late of #15 Gladiator Road in the Western District of the Island of New Providence one of the Islands of The Commonwealth of The Bahamas, deceased.

NOTICE NOTICE is hereby given that all persons having any claim or demand against the said estate are required to send the same duly certified in writing to the undersigned on or before the 5th day of August, A.D. 2019, after which date the Executrix will proceed to distribute the estate having regard only to the claims of which she shall have had notice.

AND notice is hereby given that all persons indebted to the estate are required to make full settlement on or before the date hereinabove mentioned.

CEDRIC L. PARKER & CO. Attorneys for the Executrix 9 Harcourt (Rusty) Bethel Drive Nassau, Bahamas

PAGE 4, Friday, May 31, 2019

THE TRIBUNE

‘Nowhere near out of the fiscal woods’ FROM PAGE ONE despite the $238m undershoot projected for the current fiscal year, Mr Turnquest described the budget projections as “reasonable” due to the Bahamian economy’s growth forecast and the number of foreign direct investment (FDI) projects set to kick-in.

Acknowledging that he does not possess “a crystal ball”, he added that budget estimates were based on the best available information at the time they were made.

Responding to Opposition criticism of the missed revenue target for 2018-2019, Mr Turnquest retorted that the narrowed fiscal deficit currently projected to beat its initial forecast - is “the number that counts”.

Tribune Business reported on Thursday how the 2019-2020 budget projections show the government now believes it will take a little longer than initially thought to eliminate the annual GFS deficit, which measures by how much government spending exceeds revenue (income), a conclusion confirmed yesterday by Mr Turnquest.

“Dynamics change,” he told Tribune Business.

“This year we expected to be a little bit further ahead, but the reality is we were not able to do that, and we had to push back a bit.

There’s a little bit of softening, but we’re going to be working very hard to bring those numbers in.

“There are still a few ticking time bombs out there from the sins of the past.

Until they can be resolved one way or the other we’re nowhere near out of the woods, but are on the right path assuming we can manage those little bombs so they don’t throw us out of whack.”

Those “ticking time bombs” include the government’s failure to fulfill its commitment to inject $39m into the now-closed BTC defined benefit pension plan to fill its deficit - something it agreed to in 2011 when Cable & Wireless Communications (CWC) bought a controlling interest, and is still not settled some two administrations and eight years later.

Comparing the government’s budget projections to the prior year shows it feels fiscal consolidation will be achieved more gradually.

The Minnis administration had last year forecast it would eliminate the deficit

and run a $10m surplus by 2020-2021, but the revised estimates project modest deficits of $73m and $19m for that year and 2021-2022 respectively.

An $85m deficit, rather than yesterday’s $137m, had also been projected for the upcoming 2019-2020 fiscal year. The projections indicate the government is making slower progress than desired on eliminating the deficit, but it is nevertheless heading in the right direction, although it is also conceding that revenue yields will not reach the previously forecast 20.1 percent of GDP. Mr Turnquest yesterday revealed that the government cannot introduce any new or increased taxes until it maximises existing revenue sources, although he walked back a projection that planned enforcement measures alone can yield an extra $100m annually.

“The truth of the matter is we are at the point where we need to maximise and plug the holes for all taxes before we contemplate any additional taxes,” he told Tribune Business.

“If all goes well we can recognise $100m from getting real property tax fully compliant and correct, and

the revenue from yacht charters and cruising permits, and compliance issues with VAT and business licences. I wouldn’t say $100m, but we can make some significant progress.”

Considerable scepticism surrounds the government’s 2019-2020 revenue projection, which at $2.628bn - a $215m increase upon the prior year - takes the Public Treasury’s income back close to the level originally forecast for the current fiscal year. That is now projected to come in at $2.413bn, some $238m or nine percent below target.

Mr Turnquest, though, expressed confidence that the 2019-2020 revenue target will be achieved because the factors that caused this year’s underperformance are no longer present. He added that the “VAT impact shock would have started to dissipate for consumers”, while the transition periods afforded the hotel and construction sectors ended earlier this year.

The Revenue Enhancement Unit’s (REU) creation, which was supposed to have occurred for last fiscal year, will now kick-in for 2019-2020 and potentially generate $80$100m in revenues, while the government has also concluded settlements with web shop operators.

Pointing to the anticipated increase in economic activity through FDI projects either approved or in the pipeline, Mr Turnquest

said: “Between these projects, the improvement in compliance ratios hopefully, as well as collecting those taxes on the books that are not being paid, we will be able to catch up to that goal.

“I think it is reasonable,” he added of the 2019-2020 revenue estimates. “There were some factors that would have stymied revenue collection last year, and those factors have gone away. The VAT impact shock would have started to dissipate also, so we should see some real rebound this year.”

Mr Turnquest added that the 2018-2019 revenue under-performance should have been no mystery to anyone, as he had revealed in February’s mid-year Budget that the government’s income was likely to miss its target by $185m or seven percent.

That gap has now further widened to $238m or nine percent. Based on the government’s nine-month fiscal “snapshot”, it has to collect some $724m worth of revenue during the fiscal year’s final quarter to hit the lowered $2.413bn goal.

Based on Mr Turnquest’s revelation that revenues for the first ten months stood at $1.9bn, it appears the government collected almost $211m in April given that end-March’s figure stood at just over $1.689bn.

However, the Opposition has seized on the figures to argue that the Minnis administration faces a tall

order to collect the $500m needed over May and June to hit the revised 2018-2019 figures.

Mr Turnquest accused the Opposition of “making hay” and failing “to understand that projections are just that; projections”.

Pointing out that revenue estimates could easily be blown off course by hurricanes, international economic developments and internal factors, he said this aspect of the Budget was often subject to adjustments because it lay outside the government’s control.

Arguing that revenue estimates are “not an exact science”, the deputy prime minister said The Bahamas was “on tap for another year of solid economic growth” and, should forecasts not materialise, the government always retained the option to reduce its discretionary spending to match income as it has done in 2018-2019.

Mr Turnquest said the Opposition’s focus on revenue also ignored the halving of the fiscal deficit, yearover-year, to $122m for the first ten months of the 20182019 fiscal year despite the income shortfall.

“At the end of the day that’s the number that counts,” he told Tribune Business, although the fullyear 2018-2019 forecast of a $229m deficit suggests the “red ink” will increase by more than $100m in the final two months of the year.

THE TRIBUNE

$1.3bn tax giveaway FROM PAGE ONE projects, enjoyed tax breaks on some $287.96m worth of imports.

It is unclear whether 20152016 represents a typical year for foregone Customs revenue, but the period did not include any impact from the $4.2bn Baha Mar project which was then in the throes of Chapter 11 bankruptcy protection and the dispute between Sarkis Izmirlian and his former Chinese partners.

The auditor-general’s disclosures came in a report that was tabled on the same day as KP Turnquest, deputy prime minister and minister of finance, revealed that the Ministry of Finance has hired a consultant to assess The Bahamas’ investment incentives regime to determine if it is providing value for money and attracting the right type of investment.

Speaking during the 20192020 budget debate, he told the House of Assembly: “In assessing revenue compliance and strengthening tax administration, it is particularly pertinent to evaluate

the role that concessions play and their impact on the tax gap.

“Under its trade sector facility with the IDB (Inter-American Development Bank), the Ministry of Finance has contracted a consultant to review the current concessionary regime in The Bahamas to provide input on how these concessions impact economic growth, and how this translates into our fiscal policy needs, given the requirements of our fiscal responsibility legislation.

He added: “This engagement began in January of this year, and is still in the information gathering stage.

However, when contemplating policy action, it is imperative to consider the impact foreign direct investment has on the domestic economy - not just for tourism but in the monetary sector as well - and how changes to our current concessionary regime may affect that.

“Nonetheless, while this administration is not opposed to the concept of concessions to drive and foster positive investment

COMMONWEALTH OF THE BAHAMAS IN THE SUPREME COURT Common Law & Equity Division BETWEEN

in The Bahamas, we must undertake the proper study and analysis to ensure that the concessionary regime is fit for purpose - and that it actually drives the right kinds of investment.

“We must measure the tenure and scope of these concessions - their investment impact, so that we are not simply giving away freebies that add no value to The Bahamas and its citizens.”

The auditor-general’s report highlights a disjointed investment incentive regime, focusing on 14 separate Acts that range from the Hotels Encouragement Act and Industries Encouragement Act to the Bridge Authority Act and a host of other tax break-granting legislation.

Calls for a review of this framework have been made at infrequent intervals over the past decade, amid suspicions - albeit lacking empirical evidence - that The Bahamas has effectively created a welfare system for some industries and corporate entities able to stand on their own two feet without needing tax breaks.

2018 CLE/qui/000240

NOTICE The Petition of EARNESTINE KING in respect of: IN THE MATTER OF ALL THAT piece parcel of lot of land being lot number six (6) being a part of “The James Howe Grant A-66” and situate on the Northern side of Cow Pen Road approximately one mile West of Blue Hill Road in the Southern District of the Island of new Providence aforesaid and which said piece parcel or lot of land is bounded Northwardly by lot number Nine (9) on the plan and running thereon Fifty-five and Fifty hundredths (55.50) feet Eastwardly by lot number five (5) the property of Dwight B. King and running thereon One Hundred and Eight Hundredths (100.08) feet Southwardly by Cow Pen Road and running thereon Fifty-six and Twenty-nine hundredths (56.29) feet Westwardly by Thirty (30) feet wide road reservation on the plan and running thereon One Hundred and Sixteen Hundredths (100.16) feet which said piece parcel or lot of land has such shape boundaries marks and dimensions as are shown on the Plan and is delineated on that part of the plan which is coloured Pink and designated as Lot Number Six (6) thereon.

The Petitioner EARNESTINE KING claims to be the legal and beneficial owners in fee simple in possession of ALL THAT parcel of land hereinbefore described and the Petitioner has made application to the Supreme Court of the Commonwealth of the Bahamas under Section 3 of the Quieting Titles Act, 1959, to have its title to the said land investigated and the nature and extent thereof determined and declared in a Certificate of Title to be granted by the Court in accordance with the provisions of the said Act. Copies of the filed plan may be inspected during normal working hours at:a. The Registry of the Supreme Court, British American Building, Marlborough and George Streets, Nassau, N. P., Bahamas; or b. The Chambers of Bowleg McKenzie Associates, RowClem House, #67 Marathon Road, Marathon Estates, New Providence, The Bahamas.

NOTICE IS HEREBY GIVEN that any person having dower or right to dower or any adverse claim or claim not recognized in the Petition shall on or before the expiry of the thirty (30) days after the final publication of these presents, file in the Registry of the Supreme Court and serve on the Petitioners or the undersigned a statement of such claim in the prescribed form and verified by an affidavit to be filed therewith. Failure of any such person to file and serve a statement of such claim on or before the expiry of the thirty (30) days after the final publication of these presents, will operate as a bar to such claim.

BOWLEG MCKENZIE ASSOCIATES Chambers RowClem House # 67 Marathon Road Marathon Estates, N.P., The Bahamas

There have also been concerns that The Bahamas is deriving too little benefit from some FDI projects, with the value of incentives exceeding the impact on the economy and local populations. However, there is also the argument that is this economy was more efficient and productive, with labour and electricity costs much lower than they are currently, the government would not need to offer so many valuable tax breaks to entice local and foreign investors.

The auditor-general’s report also revealed that VAT collected on these $6bn-plus imports, at the old 7.5 percent rate, amounted to some $456.551m in fiscal 2015-2016.

“From this amount, $130.433m revenue was collected and $326.118m deferred,” it said.

“Deferred VAT is approved by the Ministry of Finance and reported on the taxpayer’s filing return in the period incurred.”

Friday, May 31, 2019, PAGE 5

CAN MAKE A DIFFERENCE IN THE LIVES OF THE CHILDREN AT RANFURLY

T

he Ranfurly Homes for Children has been a safe haven for thousands of Bahamian children since 1956. The Home provides a safe, structured environment for children who have been orphaned, abused, neglected or abandoned.

YOU can make a difference in the lives of the children at Ranfurly. With your support children can have nutritious food, warm beds and a safe environment where they can discover the joy of being children. For years the children living and learning at Ranfurly have made great social and academic strides.

Their further development requires additional support in the form of a Transitional Home, planned for construction on the Ranfurly property.

This residence will cater to teenagers and young adults who are beyond school age, but need accommodation while they find work and gain independence from the Home.

We look forward to your continued support in this worthwhile endeavour.

MEMBERSHIP PACKAGES Individuals, Families & Corporate Sponsors Children Helping Children - $5 (Individual children from ages 6 - 18) Individuals Helping Children - $50 (Individual adults 18 years and over) Families Helping Children - $100

CIRCLE of FRIENDS Silver: $1,500 - $2,499 Gold: $2,500 - $4,999 Platinum: $5,000 plus

OPPORTUNITIES • • • •

Invitations to Ranfurly events Assist with fundraising events Involvement with special activities Adults are eligible to join the Board after three months • Stay in touch with Ranfurly through website and newsletters

BENEFITS

• Personal fulfillment in knowing you are impacting lives • Ranfurly children’s appreciation and positive response • Continued support provides stability and constant care

For more information visit: www.ranfurlyhome.org Please “Like” us on Facebook Ranfurly Home for Children, Mackey Street P.O. Box 1413 Nassau, Bahamas 242-393-3115

PAGE 6, Friday, May 31, 2019

Wealthy Bahamians greatest tax cheats FROM PAGE ONE

and so that requires that those of us who have an obligation - and particularly those of us who have more should pay.

“You would be surprised to find the class who don’t pay their taxes,” he continued. “It’s not the poor people; poor people pay their taxes. It’s normally the high-end people who can traditionally afford it that don’t pay.

“We are willing to enforce the laws on the books. This is not a punitive exercise.

It’s not a gotcha exercise.

It’s very much a partnership where the Government does its part and the citizens do their part, and together we get positive results from each of us following the rules.”

Mr Turnquest said the Government is still paying down its $360m in unfunded arrears inherited from past administrations. “We are unfortunately still paying bills. In last year’s budget we indicated that there was roughly $360m of arrears we had committed to address

THE TRIBUNE

over the next three years,” he added.

“We had budgeted $172m for this current fiscal year, and we have addressed $129m of that to-date. We will see where we get to at the end of the year. In the upcoming year we have budgeted another $100m. In the next year we will address the balance.

“The idea is over the next three-year period we will liquidate all of those arrears.

The idea is that that will be money that is freed up for us to give back to the Bahamian people in the way of further duty reductions, in the way of new programmes to stimulate economic activity, build infrastructure and to provide the social support that we need.”

Addressing concerns over the Government’s ability to meet revenue projections, Mr Turnquest said: “One of the things that I think is fundamental is that GDP growth and projections are exactly that; projections. It’s very difficult to pinpoint a number.

“We make these projections based on factors we are aware of in our global economy, that are happening in our marketplace, in our major sectors of our economy, and based on plans and investments we are aware of.

Any number of factors can affect and slow down that growth profile.

“GDP growth is a factor of a number of things. It’s

not only internal economic factors but also external economic factors, and they all play a role. The main thing, though, is to look at that bottom line and, this year, when you look at that deficit number coming in at our target, which means that we are doing a fair job in managing the fiscal affairs of this country.”

Marlon Johnson, the Ministry of Finance’s acting financial secretary, said: “The job of fiscal management is managing the deficit. The budgetary revenue projections are just that; they’re just revenue projections.

When you look historically, very few countries hit their revenue targets because there are so many factors involved.

“What all governments have a responsibility for is managing the deficit; your balance, your surplus. Part of the work we have been doing is managing the explosion in expenditure growth. That is what you can manage within the year. Ultimately, what is important is that you meet your fiscal goals with respect to your deficit targets, your debt targets and the like.

That really is the determinant of fiscal stability and fiscal success.”

Mr Turnquest had confirmed that revenues for the 2018-2019 fiscal year are now projected to come in some $238m, or 9 percent, lower than budgeted at $2.413bn due to the areas that the

LEGAL NOTICE

Guest centric Environment seeks Experienced

NOTICE BLESSED CRENS INVESTMENT INC.

Operations Manager

N O T I C E IS HEREBY GIVEN as follows: (a)

Government now hopes will drive its income in the upcoming fiscal year.

He said during the Budget statement: “All told, we project that the remaining two months of the fiscal year will perform positively. For the fiscal year as a whole, revenue is estimated to come in at about $2.4bn, some $238 million or nine percent lower than what was budgeted at the start of the fiscal year, largely on account of the new agreement with the gaming operators, the delayed implementation of the Revenue Enhancement Unit (REU), and the concessions granted to hotels and contractors in respect of the introduction of the higher rate of VAT. Addressing the issue of over-budgeting for civil service salaries and benefits, Mr Turnquest said yesterday: “This is an ongoing exercise for us. What we found is that the budgeting system we inherited is very inefficient. It has not been very scientific. As we go through line items comparing actual expenditure and the known commitments, we adjust the allocations accordingly.

“Whatever savings are derived are either eliminated or reallocated. At the end of the day, the important thing to note is that there is no head count out, and it does not stop ministries and agencies from hiring the talent they need in order to ensure they are efficient.”

Ideal applicant must:

BLESSED CRENS INVESTMENT INC. 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 29th May, 2019 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

• Thrive in a fast-paced environment.

• Have excellent verbal and written communication skills.

• Demonstrate critical thinking and ability to problem solve.

• Drive teams to revenue attainment.

• Maintain service excellence.

only qualified candidates should submit resumes to bahamascareers@gmail.com

Dated this 31st day of May, A. D. 2019 _________________________________ Bukit Merah Limited Liquidator

www.bisxbahamas.com

(242) 323-2330

(242) 323-2320

ALL SHARE INDEX: CLOSE: 2,169.92 | CHG: 0.03 | %CHG: 0.00 | YTD: 60.47 | YTD%: 2.87 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 20.91 7.00 5.50 2.60 2.00 3.25 11.05 6.17 4.64 12.50 2.74 1.96 9.32 7.00 15.60 7.50 3.95 14.00

52WK LOW 3.50 19.17 4.90 3.85 1.00 0.19 2.00 8.89 6.13 3.54 10.00 2.35 1.60 7.50 6.10 11.00 6.20 3.01 12.51

PREFERENCE SHARES 1000.00 1000.00 1000.00 1000.00

1.00 103.00 100.00 100.00 105.00 103.00 100.00 10.00 1.01

1000.00 1000.00 1000.00 1000.00

1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00

SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Fidelity Bank Class A Focol Class B

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

E J K L M N

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

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

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

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

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

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

LAST CLOSE 4.18 17.43 6.00 5.40 2.58 1.95 2.21 11.05 6.16 4.48 10.00 2.62 1.85 9.35 7.00 14.45 7.50 3.48 14.00

CLOSE 4.18 17.43 6.00 5.40 2.58 1.95 2.21 11.05 6.16 4.48 10.00 2.68 1.85 9.33 7.00 14.45 7.50 3.48 14.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.06 0.00 -0.02 0.00 0.00 0.00 0.00 0.00

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

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

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

CLOSE 100.00

CHANGE 0.00

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

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

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

VOLUME 1,000 400 7,400 100 200

VOLUME

EPS$ 0.167 0.932 1.838 0.323 0.098 0.000 -0.431 0.708 0.480 0.154 0.627 0.102 0.209 0.000 0.636 0.834 0.950 0.205 0.631

DIV$ 0.130 1.260 0.000 0.250 0.000 0.020 0.000 0.710 0.220 0.120 0.620 0.068 0.060 0.328 0.240 0.500 0.200 0.090 0.600

P/E 25.0 18.7 N/M 16.7 N/M N/M -5.1 15.6 12.8 29.1 15.9 26.3 8.9 N/M 11.0 17.3 7.9 17.0 22.2

YIELD 3.11% 7.23% 0.00% 4.63% 0.00% 1.03% 0.00% 6.43% 3.57% 2.68% 6.20% 2.54% 3.24% 3.52% 3.43% 3.46% 2.67% 2.59% 4.29%

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

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

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

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

INTEREST Prime + 1.75%

MATURITY 19-Oct-2022

6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%

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

YTD%12 MTH% 0.32% 3.95% 0.62% 3.20% 0.69% 2.56% 2.06% 4.97% 4.52% 0.96% 1.57% 4.58% 0.99% 4.25% 1.32% 4.12% 3.22% 5.64% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69% -0.71% 0.16% 7.40% 2.70% 10.20% 1.30%

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

MUTUAL FUNDS 52WK HI 2.22 4.27 2.05 188.32 158.55 1.62 1.76 1.70 1.15 6.99 8.54 6.15 10.52 11.46 10.46 10.00 8.69 11.79

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.56 1.68 1.64 1.08 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

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

NAV 2.22 4.27 2.05 188.32 154.49 1.62 1.76 1.70 1.15 7.54 8.73 6.65 10.66 11.79 10.48 9.92 8.68 11.38

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

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

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 | BENCHMARK 242-326-7333

FROM PAGE ONE “This year, finally, has been a breakthrough for BREA as I recently met with senior officials of the National Association of Realtors at the NAR’s legislative meetings and Trade Expo in Washington weeks ago.”

Mrs Wallace-Whitfield explained that foreign agents must contact a licensed Bahamian real estate company, and refer their client and property when dealing with sales activity. “This is an ongoing issue that is crippling our industry and livelihood of our licensed members,” she added.

“The NAR has vowed that they will prosecute any and all of its members that engage in any real estate transaction outside of their jurisdiction without being on referral basis. It is illegal for any foreigner to solicit a listing to clients outside of their area or state let alone their country. We as Bahamians must protect our land and our country, and stand up for what is right.

We have also spoken with local Immigration in Nassau and Exuma, as these are the most pressing areas for complaints.”

She added: “As we have a bilateral agreement with the NAR, they are supposed to make sure that BREA and the NAR both comply with each other’s rules and codes of ethics. One example of our agreement that was implemented years ago is BREA, as licensed real estate agents, cannot call ourselves realtors unless we have become an international realtor member (IRM) as the word ‘realtor’ is an international trademark.

“This a process that any licensed BREA member

can do by applying to the NAR and paying their annual fee. As foreign realtors visit our shores, some take it upon themselves to conduct business. One of the ways they do this is by making deals with local brokers, and making arrangements and special deals. Another way is that the owner of a property here in The Bahamas would contact a US agent, hand them the keys and say please find a buyer.”

Mrs Wallace-Whitfield said BREA is also working with government to stay abreast of changing laws relative to the industry. The government announced this week that it intends to remove the stamp tax applied to real estate transactions and replace it with value-added tax (VAT), while closing a loophole that allowed companies purchasing property in The Bahamas to previously reclaim the latter tax.

She added that BREA had yesterday written to acting financial secretary, Marlon Johnson, for further clarification on the issue.

BREA director, Hartman Longley II, queried whether the term ‘stamp tax’ will for the foreseeable future no longer be associated with the purchase and sale of real estate in The Bahamas, and whether there will be new terminology for the ‘discounted VAT’.

To this, Mr Johnson explained that for the foreseeable future there will simply be different VAT rates for different transactions - a rate of 2.5 percent for real estate transactions valued under $100,000 and ten percent on those over $100,000. Businesses will not be able to recover any such real estate VAT payment as input deductions.

To advertise in The Tribune, contact 502-2394

MARKET REPORT THURSDAY, 30 MAY 2019

‘Breakthrough’ in battle with foreign realtors

NOTICE

NOTICE is hereby given that MASCIN LESSAGE of #2 Johnwentworth Drive, Freeport Grand Bahama, Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 24th day of May, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that SHAQUILLE DAVID WILLIAMS of Wulff Road, P.O.Box SS-6043 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 31st day of May, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that LAVETTE SUSETTE STUART of King 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 24th day of May, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

THE TRIBUNE

Provider for digital B$ ‘will not be greedy’ FROM PAGE ONE “lessons” from the trial rollout are digested and put to use. He added that the network and technology will cost “a few million dollars at least”.

The digital Bahamian dollar is a key component in the Central Bank’s strategy to boost financial inclusion and access to essential banking services, especially for businesses and residents in remote Family Island communities who currently have to travel for miles to physically interact with providers.

It will also boost security for businesses and households by reducing reliance on cash, while helping to mitigate the impact of the commercial banking industry’s withdrawal from having a physical branch presence in many Family Islands.

Mr Joe yesterday said Bahamians would be able to access digital dollars through mobile apps and electronic wallet on their phone. For those without a phone, he explained they would still “be able to fully interact with” the digital Bahamian dollar via a card that would operate similar to a credit/debit card at participating businesses.

Referring to the digital Bahamian dollar’s project name, the NZIA executive added: “Project Sand Dollar is going to be an historic project, not just for the people of The Bahamas but also on a global landscape in terms of the scope and depth of the retail deployment. Our focus is people first, technology second.”

He added that NZIA planned to deploy a decentralised wireless payments system to underpin the digital Bahamian dollar, with no transaction fees involved so as to encourage use and accessibility.

“We’re not here to disrupt the financial industry,” Mr Joe said. “We’re here to work alongside banks and existing institutions here to augment financial services rather than disrupt. We’re looking at

Friday, May 31, 2019, PAGE 7 innovative ways to increase, rather than erode, bank deposit bases.

“We want to provide openings to ensure banks, micro, small and medium-sized enterprises, and Bahamian entrepreneurs can create new solutions around the CBDC to further economic growth.

The key thing about this is this is not just a software project or technology project.

The key to making this project a reality is how we make the CBDC available in every case to The Bahamas.”

Mr Joe added NZIA had developed similar network infrastructure in Africa and Asia, and had experience in working in island archipelagos similar to The Bahamas.

Meanwhile, Mr Rolle said the Central Bank in partnership with NZIA Ltd will “almost immediately” launch its outreach to the Exuma community, payments services providers and major sources of financial transactions such as the government, National Insurance Board (NIB), utilities providers and communications companies.

“All those entities can expect almost immediate ramped up engagement from the Central Bank going forward,” the governor added.

While the Central Bank will have to take the lead in the digital Bahamian dollar’s initial development, he added that “our medium to longterm vision” is for the private sector payments providers to take this on and drive it.

“We anticipate they’ll be alongside us in the Exuma pilot so they get the necessary expertise from that to generalise it to the rest of The Bahamas,” Mr Rolle said.

“The focus in the coming months will be on ensuring we put in place a lot of regulatory structures in how the payments system operates generally in The Bahamas...

For one thing we want to make the cost of concluding electronic payments lower.

We want to reduce the cost of electronic payments for the average business and consumer.

“That’s very important.

That’s the way to increase the willingness to accept electronic payments. We want to put electronic payments within reach of all Bahamians who want to use the technology. That speaks to financial inclusion,” he added.

“We’re looking at improving the regulatory framework - not just for this but financial services generally so once people go through the process of enrolling through a licensed financial services provider they’ll have an easier time establishing relationships with other institutions, and they deposit and recover funds from their bank account. That’s one element of access to banking.”

Mr Rolle added that the digital Bahamian dollar will also potentially improve access to credit, as well as reduce the security risk associated with businesses and individuals holding large amounts of cash.

Acknowledging that business and community education was vital, he said: “Part of the public message is to understand the security features and how to be secure in operating in a digital environment.”

NOTICE

NOTICE is hereby given that FELIX ORVIL of Dignity Gardens, 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 twentyeight days from the 31st day of May, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

To advertise in The Tribune, contact 502-2394