06022022 BUSINESS

business@tribunemedia.net

THURSDAY, JUNE 2, 2022

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Aviation relief as ‘really ugly’ outcome averted

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMAS Customs has apologised for its now-aborted efforts to introduce a new border control system for private aviation that could have produced “a really ugly” outcome if implemented.

Ralph Munroe, acting Customs comptroller, in a May 31, 2022, e-mail to a senior Ministry of Tourism employee said the agency “regrets” the uncertainty and confusion caused for a lucrative visitor market over plans to make them enter/exit The Bahamas via its Click2Clear online portal.

The e-mail, sent to Greg Rolle, the tourism official responsible for the private pilot segment, said: “Further to our telephone conversation (Rolle /Munroe) regarding the matter at captioned, this is to confirm that the June 1, 2022, scheduled launch date has been postponed pending further discussion by Customs, government officials and

• Customs says sorry for private pilot anxiety • Solution ‘can’t kill goose laying golden egg’ • ‘Complexity burden’ impact was ‘really bad’ programmers to address reasonable concerns expressed by stakeholders.

“Following our discussions, if or when there is a new date set for a launch of the module, our most valued stakeholders will be provided with adequate and sufficient notice to ensure there is a smooth transition.

“The Customs Department regrets and most sincerely apologises for any inconvenience caused by this most unfortunate turn of events, and reassures our partners and stakeholders of our commitment to dialogue and

co-operation with them in charting the way forward to improve the experience of flying into and throughout our beautiful country.”

It appears this e-mail was forwarded by Mr Rolle to the private aviation industry to alert them to Customs’ last-minute u-turn, as its contents were referenced by the Aircraft Owners and Pilots Association (AOPA), the world’s largest aviation association, in informing its hundreds of thousands of members that The Bahamas

had dropped the Click2Clear clearance plan.

The private aviation industry yesterday voiced relief that Customs had changed course at the 11th hour. Rick Gardner, director of CST Flight Services, which provides flight co-ordination and trip support services to the private aviation industry throughout the Caribbean and Latin America, summed it up in telling Tribune Business: “All’s well that ends well” - at least for now.

With Customs’ move easing the fear and anxiety that had gripped private pilots, Mr Gardner said it was critical that all stakeholders “sit at the table” with Customs and the Government to see how they can best help them achieve their goals “without killing the goose that lays the golden egg”.

Mr Gardner, a Bahamian who is a member of The Bahamas Civil Aviation Council as well as a Bahamas Flying Ambassador, added that it would have been “ugly all the way around” had Customs

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Bank chief challenges PM over $80m ‘revenue loss’ • Business Licence switch raised sector fees • Fidelity chief still queries compliance on EU • Hit ‘diamond standard’ on ‘rules of the game’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A BAHAMIAN commercial bank chief yesterday challenged the Prime Minister’s assertion that the Government lost $80m in revenues through the sector’s 2018 tax structure change to meet the European Union’s (EU) demands.

Gowon Bowe, Fidelity Bank (Bahamas) chief executive, told Tribune Business that Philip Davis QC appeared to have been “inaccurately informed” about the revenue impact from switching to the present fee-based system as his institution’s financial statements show it has paid more to the Government every year since the change happened.

The Prime Minister, in leading off yesterday’s Budget debate, sought to reassure that reverting

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PM: Property tax arrears at $800m PM ‘confident’ over bank

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Prime Minister yesterday revealed that real property tax arrears now total $800m as he pointed to the Government’s plan to allocate all past due revenues to paying off the national debt when collected.

Philip Davis QC, leading off the 2022-2023 Budget debate in the House of Assembly, disclosed that unpaid real property taxes now stand at a sum equal

to 15 percent of The Bahamas’ gross domestic product (GDP) in highlighting Public Finance Management Act reforms that will require any collected arrears to be paid into a “sinking fund” created to pay down the $10.5bn national debt.

“I advised of an amendment to the Public Finance Management Act to ensure that all arrears collected go into the sinking fund to pay off debt, and I advised of an amendment to the Real Property Tax Act to

House blows traded over 350% yacht charter hike

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Prime Minister and an ex-Cabinet minister yesterday traded blows over the Government’s plan to increase the taxation rate on foreign charter operators by 350 percent in the upcoming 2022-2023 fiscal year.

Philip Davis QC, taking a swipe at marina operators as he led-off the 2022-2023 Budget debate, accused them of often giving “tacit approval” to the competitive disadvantage suffered by Bahamian-owned tour and excursion operators who presently face a much

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simplify our collections effort,” he said.

“The total arrears for real property tax alone are about $800m or roughly 15 percent of GDP. We have dedicated this entire amount to pay down debt, along with other tax arrears including VAT, Business Licence, Customs duties or even Immigration fees. Madam speaker, this is a very aggressive strategy to manage our debt.”

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tax despite blacklist fear

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Prime Minister yesterday voiced “confidence” that changes to commercial bank taxation will not violate existing agreements with the European Union (EU) despite Opposition fears it “could shake the foundation of our credibility”.

Philip Davis QC, leading off the House of Assembly’s 2022-2023 Budget debate, said it was “not the case” that reimposing Business Licence fees on the likes of Royal Bank of Canada (RBC) and Scotiabank will undermine The Bahamas’ commitment to eliminate preferential tax regimes for foreign-owned entities conducting business outside this nation.

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THE TRIBUNE

Promoting greater staff advancement Y

ou have been working hard, putting in long hours at the office and giving in to every demand from your boss, and you are still being passed over for a promotion. Being a loyal worker clearly is not enough to get you to the next career level, so what is a dedicated employee to do?

The hard truth is that simply fulfilling the exact requirements of their existing position does not guarantee that an employee will be promoted. Companies usually seek out employees who go above and beyond the scale of their duties. Doing so demonstrates their increased value to a company, and desire for professional growth. Achieving promotion typically means your

supervisor notices your impressive performance, and believes you are ready to accomplish more complex tasks, projects and responsibilities. There are many ways you can prove to your manager that you are well-suited for a promotion.

Characteristics of promotable employees * They understand how to deal with failure and leadership traits * They are highly engaged and take on increased responsibility * They identify organisational issues and solve problems with a proven ability to deliver results * They adopt innovative approaches in identifying new ideas that create value internally and externally * A demonstrated ability to adapt in the midst of rapid change

externally, as well as at all levels internally * The possession of business acumen, professionalism and the potential to achieve even more.

By

DEIDRE

BastiaN * The ability to act and react in a decisive manner * The capacity to establish and maintain relationships

Promoting from within is great for the budget To ensure that promotions from within enhance a company’s culture and its chemistry, such decisions must be thoughtfully considered. No company is perfect, and those who claim to be are really just displaying their own shortsightedness. A successful business is always seeking new ways to modify and improve their structure and workflow.

Promoting employees can be an important talent retention tool, and it is a great approach to rewarding excellence. Moreover,

promotions from within sends a message to all employees that “hard work is recognised”, company loyalty is valued and staff are crucial to future success.

Employees who work hard and demonstrate leadership and problem solving skills, a growth mindset and a high level of engagement, have already proven themselves to be an asset to a business and deserve to be rewarded. This is an indicator that an employee is ready for promotion.

Promotions are not only good for employees but they benefit the overall company as well. It is proof of strong growth, expansion and new opportunities available for a business, and also allows management to better attract top level talent during the

Managing the Budget’s perils T he 2022-2023 Budget has generated vibrant, robust discussion in certain quarters and an uncanny level of silence in others. I believe this is a sign of the complexities involved. Objective assessment suggests there are positive aspects to the Budget, but that these also come with significant associated risks. In seeking to provide fair, objective and balanced commentary, I will readily admit that it is not so easy to navigate the current Budget communications. The issues are more complex in the post-COVID environment of significant disruption and ever-increasing uncertainty.

One should, however, always be reminded that a Budget is a set of

projections based on assumptions, all of which carry risk of not materialising. The major issue with the current Budget is the extent to which normal risks have been heightened and new vulnerabilities have emerged.

The Thinking Before looking at these risk factors, let us set a framework for understanding where we are. First, the Budget is highly reflective of the administration’s manifesto, Our Blueprint for Change. The 10-point framework to “recover, rebuild and ultimately revolutionise the economy” is dominant throughout.

Three areas that stand out the most are: “compassionate social relief and strengthened security”;

“a plan for each island”; and “Bahamian empowerment”. These are captured in the priorities stated

by Prime Minister Philip Davis QC in presenting the Budget. These are intended “to help Bahamians cope with a cost of living crisis”; “the creation and expansion of jobs and ownership opportunities for Bahamians”; and “addressing various security issues to make our communities and homes safer, and our borders more secure”.

Speaking to the Progressive Liberal Party’s (PLP) stance on taking office, the Mr Davis said: “We were keen not merely to jumpstart the economy to stimulate economic activity and growth, but to do so in compassionate ways

that brought hope and dignity back to people.” While there is room for discussion, debate and disagreement, it is useful to see the Budget within this context. These are the priorities and, in executing them, the Prime Minister said the expected outcomes will achieve three things. First, it will put the administration “firmly on course to continue to rescue the economy”. Second, these objectives will “help us navigate some of the new challenges facing the global economy”. Finally, achieving them will “maximise the opportunities and deliver the growth necessary to support national development”. Any analysis that loses sight of these issues risks ignoring the fact that it acknowledges the

Hubert Edwards By

urgent need to rescue the economy, along with the known headwinds and global influences acting against achieving this goal.

The Budget clearly states the need for growth and, importantly, the three main priorities outlined by the Prime Minster are all significantly “people centric”.

This focus will naturally create tensions given known macroeconomic pressures.

The Story Numbers alone will not tell the full story. Before diving into the numbers, developing a reasonable appreciation for the thinking and priorities of the Budget can help avoid emotional responses or utterances. An initial highlevel assessment, guided by the stated intentions, taking into consideration the fiscal, social and economic realities, current economic performance to-date, and factoring in announced policy changes, provides a sound basis for interrogating the information presented. This approach allows for a sober, inquisitive exploration of the effects and changes. For example, how does a particular policy shift affect the overall debt and country’s creditworthiness?

What other approach to reforms for state-owned enterprises (SOEs) is possible given the absence of cuts to their subsidies? What can be gleaned from the trajectory of the projected deficit?

How does forecast revenue stack up against previous best performances, and what were the conditions then compared to now? By doing this, it is possible to avoid getting too deep into the weeds, making comparisons based on popular lines or heads, and just targeting those that might carry the greatest emotive value.

Based on this approach, I noted that the Budget represents a very complex, interwoven story indicative of the delicate challenges that The Bahamas faces.

Overall, the Budget was excellent in dealing with

recruitment process. Until we meet again, fill your life with memories rather than regrets. Enjoy life and stay on top of your game.

NB: Columnist welcomes feedback at deedee21bastian@gmail.com About Columnist: Deidre M. Bastian is a professionally-trained graphic designer/brand marketing analyst, author and certified life coach with qualifications of A.Sc. B.Sc. M.Sc. She has trained at institutions such as: Miami Lakes Technical Centre, Success Training College, College of The Bahamas, Nova Southeastern University, Learning Tree International, Langevine International and Synergy Bahamas. social support (all measures to directly benefit citizens), and in seeking to protect the most vulnerable segments of the population. However, there were tensions given the decision not to hike taxes, as this places pressure on the limited fiscal space. The Budget represents a very delicate balancing act seeking to navigate the tensions created by the high inflationary environment and a recovering economy, with revenue arguably buoyed by inflation. Finally, I note that the failure to have a fuller discussion regarding the national debt and debt management strategy is likely the most significant area of risk to the Government’s overall plans.

Moody’s statement Following its recent declaration in January that The Bahamas’ fiscal projections may be overly optimistic, Moody’s delivered its assessment of the 2022-2023 forecasts. In my view, the credit rating agency provided a very balanced statement that, in general, is not as pessimistic as some seem to suggest. The report points out the positive trajectory for the fiscal deficit, which is forecast to drop from $758.6m this year to a projected surplus in 20242025, and concludes that this is a favourable development from a credit rating perspective. The report acknowledges the deficit remains elevated due to the overhang of liabilities left behind by the previous administration, while highlighting the reduction from January’s estimates - a fall from 7.4 percent of GDP to 6 percent. It indicates the reduction will mainly be driven by the current economic recovery, with fiscal consolidation being more rapid than previously expected. Importantly, the report points to the fact that the projections are consistent with economic recovery.

It then notes certain risks to achieving these results.

These include the cost of debt. In an environment with increasing risk premiums, and a continued need for borrowing, the risk is whether the cost of debt as projected may increase and consequently expand the deficit. Then there is the reliance on collections and enforcement as a means of increasing revenue intake versus implementing new taxes. Essentially, there is the risk that efforts might fail to yield the expected results and thereby widen the deficit. Finally, restraining spending as projected over the next two fiscal periods could adversely

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THE TRIBUNE

Thursday, June 2, 2022, PAGE 3

‘ECONOMIC DIGNITY’: CONTAINER PORT SLASHES CASUALS TO 24%

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Prime Minister yesterday said the Government’s drive for “economic dignity” had resulted in Freeport Container Port

reducing the number of “casual” employees in its workforce to 24 percent.

Philip Davis QC, leading the 2022-2023 Budget debate in the House of Assembly, said the Grand Bahama-based industrial operator had reduced this

proportion from the 43 percent threshold that existed when the Government met with it in January 2022.

Noting that their “casual” status was preventing these workers from qualifying for

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FREEPORT CONTAINER PORT

HOUSE BLOWS TRADED OVER 350% YACHT CHARTER HIKE FROM PAGE ONE higher tax burden than their foreign rivals.

“One of our goals in this government is to move towards a tax system that is more efficient and more equitable. We have already begun ensuring that a greater share of our revenues will come from those who can afford to contribute more with our Revenue Enhancement Unit, which is particularly focused on increasing the yields on our real property tax,” he said.

“Another example is the amendments we have tabled to the Boat Registration Act to make it clear that foreign yacht charters are subject to VAT in this jurisdiction. This is an important step, as Bahamian-owned charter operators have to pay Business Licence fees and have to charge VAT, plus Immigration fees for any foreign crew members.

“The playing field is now level. We are watching this sector closely. Too often, Bahamian operators are disadvantaged, often with the tacit approval of marina operators who benefit from foreign yacht charters.”

Foreign yacht charters are already supposed to pay a fee equivalent to 4 percent of the contract value to the Port Department.

However, reforms to the Boat Registration (Yacht) (Amendment) Rules 2022, which were tabled in the House of Assembly last Wednesday, effectively now subject the industry to ‘double taxation’ by levying 10 percent VAT on the same contract.

This more than triples the tax rate for foreign yacht charters, taking it from 4 percent to 14 percent, and Peter Maury, the Association of Bahamas Marinas (ABM) president, warned that these reforms will “kill” an industry that last year directly injected $122m into the economy.

He yesterday found a supporter in Kwasi Thompson, former minister of state for finance in the Minnis administration, who said: “Here is another concern. The Association of Bahamas Marinas have already expressed their strong concerns with the tax on the Yachting industry.

They say the legislation is devastating for the yachting industry in The Bahamas.

“The tax on chartering a yacht in The Bahamas has risen by 350 percent, from 4 percent to 14 percent. It employs thousands of Bahamians in marinas and in other businesses that cater to these yachts. Will we lose this important industry to other destinations in the Caribbean, where there is a 0 percent tax on the yacht rental?

“They are begging the Government to take another look at this, especially those representing Family Island communities, to please reassess this 350 percent tax increase.

They say their lives and livelihoods are depending on it.”

Mr Maury last week said such a hike threatens to undo the increased boating/yachting market share that The Bahamas has enjoyed since the start of the COVID-19 pandemic. Warning that the Government’s move will “drive them right back to the Caribbean”, the ABM chief told this newspaper that combined data from 55 Bahamas-based marinas showed that the sector accounted for 37.3 percent or more than one-third - of total tourism revenues generated in 2021.

Mr Maury based this on the total $327.438m total revenue generated

by Bahamian tourism in 2021 - a statistic that he said came from the Ministry of Tourism. Asserting that it showed the marina sector had “made huge strides” in efforts to bring more boats and yachts to The Bahamas, and create jobs and entrepreneurial opportunities for locals, he argued that it could all go to waste due to what he described as a tax grab by the Ministry of Finance.

However, his concerns were vehemently rejected

by Senator Michael Halkitis, minister of economic affairs, who argued that the foreign yacht charter industry had for years “enjoyed a windfall at The Bahamas’ expense” by using this country’s marine environment and natural resources to earn millions of dollars without paying its fair share to the Public Treasury.

Dismissing arguments that the VAT hike on foreign yacht charters is too onerous, Mr Halkitis chuckled at suggestions the move would “kill” the sector when addressing the weekly

press briefing given by the Prime Minister’s Office. He recalled how private pilots had threatened to abandon The Bahamas, and instead travel to destinations such as Turks & Caicos, when the Government introduced a $50 fee for Customs processing of private planes.

We don’t think it’s onerous,” Mr Halkitis added of the 10 percent VAT levy.

“We did some checks and found, for example, that if you do a charter in the

Mediterranean the VAT is 22 percent and we’re charging 10 percent. We don’t think that will chase anybody away.”

Almost anticipating Mr Maury’s response, the minister recalled the previous furore over the $50 private aviation processing fee and the failure of ‘doom and gloom’ predictions to become reality. “People say: ‘Ok, if you do this, it’s going to kill the charter industry’, right?

“We don’t think so. As a matter of fact we think, and I say it here, individuals have been having a windfall for a long time at our expense and we feel it’s time we get what we think is our fair share. We have a a beautiful environment, and have to preserve it and maintain it. Anywhere else in the world you have to pay. Give us our little thing.” Research by this newspaper showed the VAT rate on charter fees

in Greece and Spain are 24 percent and 22 percent, respectively.

However, Mr Maury argued that the Mediterranean VAT charter rate was actually 17 percent. He added that, when this was imposed, many countries in that region “lost half their business” to Croatia. The ABM chief also asserted that it was misleading and inappropriate to compare The Bahamas to the Mediterranean, given the distance between the two, and because this nation’s real competition is the Caribbean.

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THE TRIBUNE

AGRICULTURAL FUND SEEKING TO REVIVE INTEREST AMONG YOUNG

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

A CABINET minister yesterday said the Government plans to create an Agricultural Development Fund that will give young farmers access to grant and loan financing.

Clay Sweeting, minister for agriculture, marine resources and Family Island affairs (MAMRFIA), told the House of Assembly during his Budget debate contribution that The Bahamas must domestic

food production’s survival by getting young Bahamians interested in agricultural again.

Reiterating that food security remains a policy priority for the ministry, he added that it will inject $1.3m into grant programmes for farmers and fishermen through the Small Business Development Centre (SBDC) during the upcoming 2022-2023 Budget year.

“Cabinet has agreed to add boats and engine parts to the duty-free list to support the fishing sector. This is indeed welcome news for

all fishermen throughout The Bahamas,” Mr Sweeting added.

From March 2022, Bahamian fishermen have been able to apply online for their compressor permits and renewals, along with commercial fishing licenses and renewals. Crawfish and stone crab trapping permits and renewals are also available online as part of the Government’s efforts to make application processes more efficient and less time consuming via digitisation.

Acknowledging the the threat posed stony

MANAGING THE BUDGET’S PERILS FROM PAGE TWO affect opportunities for economic growth. We saw this before 2017, where while our trading partners were showing reasonable growth, but The Bahamas stagnate at annual GDP growth rates of 2 percent or less.

The Moody’s message is that the projected reduction in the fiscal deficit is a credit positive, but there are clear risks. The collections/ enforcement approach

might not be enough, the cost of debt may increase, and holding spending could hurt economic growth. It is a very important and potent message that should not be underestimated or ignored.

VAT effect VAT at 10 percent, and without zero-rated and exempt items, has generated significant discussion.

Coupled with high inflation, it has drawn varying questions, especially about its impact on poor persons.

VAT is the most significant contributor to national revenue, and therefore this kind of attention is inescapable and will continue.

This is especially so when one considers that the projections appear to be built on the assumption that the adjustments will prove to be sustainably revenue positive. To determine whether this is the case, we need more information than has been reported to-date and should consider the

coral tissue loss disease, Mr Sweeting said a multi-agency task force has been formed to mitigate its impact of this disease on Bahamian corals. The Ministry of Agriculture, Department of Environmental Planning and Protection, The Bahamas National Trust, The Bahamas Commercial Fishers Alliance, the Grand Bahama Port Authority, the Perry institute of Marine Science and the Ministry of Tourism are all represented.

Mr Sweeting said: “The spiny lobster stock assessment was completed during

September 2021. The stock assessment showed that the fishery is not over-fished, and that 5m pounds is a sustainable export amount for the fishery.

“While enough lobster can be found to export 6m to 7m pounds at times, I think this year we were just shy of 5m at 4.08m pounds.

We must ensure the stock is sustainable. Management efforts have resulted in the stock status steadily improving, and it is projected that the status will continue to improve if exports are constrained to the current harvest control rule of 5m

pounds and enforcement is effective.”

The Department of Marine Resources will also open an office on Bimini and receive a 25-foot Contender Marine patrol craft to aid its enforcement efforts.

“BAMSI (Bahamas Agricultural and Marine Science Institute) will be opening an office on Long Island to assist farmers on the island. Extension offices will be accessible and provide an outlet for plant distribution, training and other agricultural support,” Mr Sweeting added.

impact inflation may have on current performance. As we focus on the objectives and the potential risks in the Budget, having regard for the level of VAT revenue increase projected, it will be important to monitor actual performance. VAT has proven to be one of the most efficient and predictable taxes for The Bahamas, and any results below projection could have serious implications for overall fiscal performance.

Conclusion Taking all the points made here into consideration, one major takeaway must be that the margin of error for economic and fiscal management, in this and subsequent years, is very narrow. Before the Budget, I expressed the view that this could be one of the most important budgets in the history of the country. I maintain the view that this budget, and the others up to 20242025, will be defining for The Bahamas. Despite the

numerous issues and numbers to be discussed and analysed, this Budget is all about the national debt.

The outcomes are directly linked to the national debt, and the extent to which the country might secure growth is linked to the extent to which the $10.5bn-plus national debt is managed.

If there are weaknesses in the projections, the risk factors highlighted by Moody’s and others may come into play. However, if the administration has done its homework and rigorously modelled the numbers, as expected, then based on the trajectory of the deficit’s decline things should be generally fine. The words of the Prime Minister make for sober reflection as he conclude his concluded his presentation: “This is a time of great challenge for our country, but also a time of great opportunity. The perils are real – but so is the promise of what we can become if we move forward

together.” How we choose to explore, understand and navigate the nuances of this Budget and act accordingly will be fundamental in how these perils will be managed to secure positive outcomes.

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

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

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

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

THE TRIBUNE

Thursday, June 2, 2022, PAGE 5

PM: Property tax arrears at $800m FROM PAGE ONE No mention was made by the Prime Minister of how much of that $800m is deemed to still be collectable, and how much is unrecoverable and may have to be written-off. Given that the Auditor General’s report for the 2017-2018 fiscal year identified some $600m in outstanding real property taxes, it appears that this sum has increased by a further $200m in the past four years.

The Prime Minister said during his Budget communication that the Government is only collecting around 60 percent of its annual $280m real property tax billings which, when based on the $169.433m in forecast income to be generated from this revenue stream during the 2022-2023 fiscal year, leaves more than $110m uncollected in a 12-month cycle.

And Tribune Business revealed on Monday that the Government is owed more than $261m in “outstanding arrears” that were due for payment from three

key revenue streams within the 21-month period to endMarch 2022.

Information culled from the Department of Inland Revenue’s (DIR) systems, and disclosed with the 20222023 Budget communication, showed that some $95.1m which become due for payment during the 2020-2021 fiscal year from VAT, Business Licence fees and real property taxes was uncollected as at May 2022 when the Budget was prepared.

The $95.1m was broken down into $16.874m in VAT arrears; some $8.867m in past due Business Licence fees; and $69.36m in uncollected real property tax. The main contributor to the real property tax delinquency was identified as commercial properties, mainly those owned by businesses or subject to “mixed use”, which accounted for $38.022m or 54.8 percent - more than half - of the sum outstanding.

Vacant property generated another $22.87m in real property tax arrears, just under one-third of the total

amount, while residential and owner-occupied properties were identified as responsible for $2.179m and $6.288m of the 2020-2021 arrears, respectively. These arrears stem from a period that coincided with the peak of the COVID-19 pandemic.

These sums were shown to have increased further in the nine months between July 2021 and March 2022, which represents the first three quarters of the current fiscal year. Some $63.381m in outstanding VAT payments were said to be due, along with $20.355m in Business Licence fees and $82.481m in real property taxes.

However, given that the present fiscal year has yet to close, those amounts are likely to reduce. In particular, given that end-March was the deadline for Business Licence fee payments, that $20m-plus figure is likely to be lowered as late-paying companies make good on what is owed to the Department of Inland Revenue and Public Treasury. Real property tax and VAT payments will also continue to come in.

On real property tax, commercial and mixed use properties again led the way during the first nine months of the 2021-2022 fiscal year.

They were again responsible for $44.368m, or over half,

of the total arrears while vacant land accounted for $25.183m. Residential and owner-occupied properties were responsible for $4.31m and $8.63m of the 2021-2022 arrears, respectively.

The Budget documents described the revenue arrears as representing “outstanding balances as of May 2022.

Arrears are reported by fiscal year, based on the period in which the tax liability originated. All outstanding balances are included, starting from one day past due”.

The figures, they added, included surcharges, penalties, fines, fees and interest due on outstanding tax principal.

Mr Davis, meanwhile, yesterday said the Government

had increased the Department of Inland Revenue’s budget by $1.5m for the upcoming 2022-2023 fiscal year in a bid to ensure it fulfills its mandate to collect every cent due to the Public Treasury.

“The fiscal year 2022-2023 budget includes and assumes increases in revenue collections, particularly associated with improvements in VAT collections at the Department of Inland Revenue, or DIR. As I have previously articulated in this House, there are many administrative challenges facing this agency, including limited staffing, lack of legislative certainty, lack of a career path for staff and poor compensation.

This budget seeks to address

many of these challenges,” he said.

“In this Budget, the department is provided with a budgetary increase of $1.5m, largely attributed to increased salaries to allow for the recruitment and hiring of qualified staff to execute on the agency’s mandate.

We are already drafting legislation to institutionalise the DIR and provide it with improved legal authority to execute its mandate of revenue collection.

“This, along with the reconstitution of a properly staffed Revenue Enhancement Unit, is designed to yield significant improvements in revenue.”

PAGE 6, Thursday, June 2, 2022

BANK CHIEF CHALLENGES PM OVER $80M ‘REVENUE LOSS’ FROM PAGE ONE back to the previous Business Licence fee will not undermine previous commitments to the EU, but Mr Bowe still voiced concern that doing so may result in perceptions that The Bahamas is no longer abiding by “the rules of the Game”.

He warned the country could suffer serious reputational damage if it was viewed as no longer honouring previous commitments, and warned that the advice provided to Mr Davis - that The Bahamas can proceed with the tax regime switch and still remain compliant with its pledge to end so-called “ring fencing” - is “certainly not consistent with the analysis performed” prior to the 2018 reforms.

The Bahamian financial services industry’s present fee-based system, which applies to both domestic commercial banks and

institutions operating in the “offshore” sector, was introduced to meet EU demands that this nation eliminate preferential tax breaks targeted at the latter segment.

The same incentives could not be accessed by commercial banks providing services to the domestic economy, leading to what the EU and its 27 members argue is “ring fencing”.

Prior to the 2018 reforms, Bahamas-based commercial banks paid a revenue-based annual 3 percent Business Licence fee to the Government. The 2022-2023 Budget wants to return to this system, although the rate will be slightly less and structured so that it is based on the type of financial services providers offer.

Mr Davis said the reversion to a Business Licence fee-type structure was necessary because the Government had failed to

make-up, or compensate for, the $80m revenue loss that resulted with the fee-based switch (see other article on Page 1B), but Mr Bowe said the Public Treasury’s income had increased - not decreased - as a result. He added that, instead of making payment to the Department of Inland Revenue, the monies are collected by the Central Bank.

Suggesting that it would be helpful for the Government to publish the advice received, the Fidelity chief told this newspaper: “In matters that require collaboration and full support, narrative and communication are insufficient. There were several statements where I would say the Ministry of Finance did not accurately inform their minister of finance [Mr Davis].

“One of the statements was that the change in regime led to a decline in government revenue. I can

tell you, as a publicly-traded company and my financial statements are available online, the new regime as designed was calibrated by the Central Bank in such a way that domestic banks and institutions did not expect any change in fees.

“The fees shifted from being a Business Licence to being paid to the Central Bank. The change was, as opposed to being paid to the Department of Inland Revenue it was paid to the Central Bank. There was a mechanism put in place for the Central Bank to remit the fees collected to the Government,” Mr Bowe continued.

“It was not a Business Licence fee, but the Public Treasury certainly received no less funds from the banks as part of the change in regime and, in fact, there was an increase. There’s certainly been no decline in any of the fees paid. There was no revenue loss. There’s a certain amount of clarity required because it’s mischief to say there was a reduction in revenue. It was just redirected and paid to the Government.”

Fidelity Bank (Bahamas) financial statements back-up Mr Bowe, as annual “bank and Business Licence” fee payments have increased for every year since the switch was unveiled.

The BISX-listed institution paid $2.867m in such fees for 2017, the last full year when the 3 percent Business Licence regime was in effect. Following the switch, Fidelity Bank (Bahamas) paid $2.902m in such fees in 2018; $3.088m in 2019; $3.705m for 2020; and $3.756m in 2021.

“I would hope to see the legal and technical advice provided. There are certain matters I feel it’s important to not loosely address,” Mr

THE TRIBUNE Bowe said. He pointed out that reverting to a Business Licence fee for commercial banks could reinstate the very same “ring fencing” that The Bahamas promised the EU it would eliminate given that domestic and “offshore” institutions will once again be subject to different tax regimes.

The Fidelity Bank (Bahamas) chief said that besides having a full physical presence, and “mind and management”, in The Bahamas, many private wealth management providers also have clients in this nation who are second homeowners and/or permanent residents.

These providers, in common with the commercial banks, provide services to Bahamas residents and earn income here yet are set to be taxed differently.

Mr Bowe added that the former Minnis administration’s commitments had gone beyond the elimination of “ring fencing” to pledge that there would be “no smoke and mirrors” to hide such practices. Suggesting that the Davis administration’s advice seems to contrast with what was provided then, he added that both governments have been “guilty” of failing to consult the financial services industry in a timely manner.

“When we as a small island state make commitments, regardless of the administration, it’s important that we are very comprehensive when we change those commitments and it’s not sufficient to say technical advice was sought and we were ultimately deemed to be in compliance,” Mr Bowe told Tribune Business.

He added that The Bahamas needed to both justify and explain the change to the EU and its 27 member states, including why this nation is still in compliance with its “ring fencing” obligations.

“I’m not saying we should capitulate to the EU, but if we make a commitment we

should be clear, thorough and comprehensive in how we make changes to those commitments and remain in compliance,” the Fidelity chief said.

“We as a country have to be careful when we change our position. I’m not saying not to do so, but we have to if we seek to change - ensure we’re still abiding by the rules of the game. I take the Prime Minister at his word that the technical advice and liaison has been done, but such advice should be shared with the industry. We have to demonstrate we are not only gold standard but diamond standard” and beyond reproach when altering prior commitments.

“Based on the participation I was involved with, on the surface of it, it does not seem to be in compliance with what we committed to in the past,” Mr Bowe said of the Business Licence fee revision for commercial banks.

The reforms to the Business Licence Act mandate that all Bahamas-domiciled financial services entities will pay a $2,500 “tax”.

On top of that, they will pay an additional levy depending on their licence and nature of their business activity. So-called “authorised agents” operating under the Banks and Trust Companies Regulation Act 2020 will pay a $10,000 annual licence fee, while “other public banks and trust companies” will pay $5,000. Authorised dealers must part with a sum equal to 2.25 percent “of total revenues net of interest expenses”.

Meanwhile, money lenders; money transmission businesses; insurance companies and fund administrators, investment managers and advisors working with Bahamian dollar assets all have to pay a Business Licence fee matching 2.25 percent of turnover.

THE TRIBUNE

Thursday, June 2, 2022, PAGE 7

‘ECONOMIC DIGNITY’: CONTAINER PORT SLASHES CASUALS TO 24% FROM PAGE THREE mortgages and other forms of credit, as well as denying them benefits and holiday leave, he added: “At the end of January I had a meeting with the management of the Freeport Container Port. During the meeting, I shared with them that the practice of hiring Bahamians as casual workers rather than employing them as permanent staff was having a large, and negative, impact for those workers.

“The casual workers had no security, no benefits, no leave, no ability to enter into credit arrangements. I want to thank Freeport Container Port, and hold them up as a model for others in Grand Bahama and others in the private sector across our country, because they came back to see me this week to say that as a result of my advocacy and our dialogue, they have made substantial progress in converting a number of

casual workers to permanent workers.

“When we met in January, 43 percent of their staff complement were casual labourers. That number has now been reduced to 25 percent, and they intend to reduce it further. Madam Speake, these workers now have increased take-home pay, increased job security and benefits, including access to creditable financing,” Mr Davis continued.

“This is what socially responsible corporate

ASIAN SHARES MIXED AFTER STOCKS RETREAT ON WALL STREET

By ELAINE KURTENBACH AP Business Writer SHARES were mixed in Asia on Wednesday after a wobbly day on Wall Street closed out a month buffeted by worries about a possible recession, inflation and rising interest rates.

Tokyo's Nikkei 225 advanced 0.7% to 27,472.49. Japan's parliament late Tuesday enacted a $21 billion extra budget to tackle soaring fuel and food prices following Russia's invasion of Ukraine.

The extra budget, for the current fiscal year that started April 1, will fund part of a $48 billion emergency economic package the government adopted in April. It includes subsidies to oil wholesalers to minimize the impact on consumers.

In Sydney, the S&P/ ASX edged 0.1% higher, to 7,219.60, after the government reported the economy expanded at a 3.2% annualized rate, or 0.8% quarterly rate, in the first quarter of the year.

That was slower than the 3.6% growth in the last quarter of 2021 but still relatively strong, analysts said.

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leadership looks like. This is what a positive, productive partnership between Government and the private sector looks like. This is what competent, compassionate leadership looks like.”

Describing “economic dignity” for all Bahamians as his “guiding principle”, the Prime Minister added: “Everyone matters. We all want to live lives of purpose and meaning; we all want to take care of the people we love. No one who reflects

on God’s love for all of us could believe that the size of our dreams for our children should depend on the size of our bank accounts.

“This is why partnerships, and dialogue and collaboration matter. We all have a role to play in knocking down barriers so that everyone can participate meaningfully in our economy and in our civic life. And whereas complete economic equality may be impossible, what is achievable, and morally

compelling, is to protect for everyone the most natural equality, the right to the greatest joys in life: the births of one’s children, the companionship of a loving partner, the love of family and friends, and the lifting up of human fulfilment.”

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PAGE 8, Thursday, June 2, 2022

PM ‘CONFIDENT’ OVER BANK TAX DESPITE BLACKLIST FEAR FROM PAGE ONE Yet Kwasi Thompson, former minister of state for finance in the Minnis administration, expressed concern that reinstating the bank Business Licence regime as the Government plans to do via the 2022-2023 Budget - could again result in The Bahamas being ‘blacklisted’ by the 27-nation EU.

That would result in potential reputational damage for The Bahamas, while its financial services providers could suffer difficulties in accessing EU markets and clients. Mr Thompson warned that reverting to the pre-2018 tax structure for domestic commercial banks could “breach” this nation’s agreements with the EU “and shake the foundation

of our credibility as a trusted partner”.

The then-Business Licence regime for commercial banks was disbanded because it was part of a structure that created a preferential tax regime for foreign-owned entities, which enjoyed benefits and concessions that their counterparts operating in the domestic economy did not. This ran afoul of the EU’s so-called “ring fencing” standard, and The Bahamas eliminated this by moving to a fee-based structure applied to all its financial services providers.

Mr Davis, seeking to ease concerns over the switch back to Business Licences for commercial banks and domestic financial services operators, said: “There has been a suggestion that doing so violates some agreements with the OECD [sic; EU]. This is not the case.

“The concern arises over the principle called ring fencing. This is where preferential tax rates are given to foreign-owned entities to attract this business to The Bahamas, although the taxable activity is outside the country. Ring fencing is a principle that evolved as a result of financial services entities that are foreign-owned but are here in The Bahamas and conduct their activity outside The Bahamas. They are attracted

here because we are not taxing them.

“That became a concern to the OECD (Organisation for Economic Co-Operation and Development) and an intervention was made to correct that in December 2018. As a result, I can say that it impacted our revenues by about $80m.”

Mr Davis said the need to recover that revenue loss, when set against the backdrop of The Bahamas’ fiscal and deficit crisis, was a key motivator behind his administration’s desire to reinstate the Business Licence fee regime for commercial banks and other providers focused on serving Bahamians and residents in the domestic market. However, at least one commercial bank chief is disputing that there was any revenue loss (see other article on Page 1B).

Still, the Prime Minister added: “When we reviewed the whole situation, we thought we needed to level the playing field and entities that are doing business in The Bahamas, financial entities doing business in The Bahamas, conducting business in The Bahamas and their activities are in The Bahamas, they should pay Business Licence fees like any other entity.”

“In this case, where the concern arises, we are imposing Business Licence taxes on entities that do business in The Bahamas with Bahamian citizens and residents, it’s where their mind and management reside, and they have a physical presence here in The

THE TRIBUNE Bahamas. We are ensuring entities licensed to business in the country pay Business Licence fees.”

This provoked the first of several interventions by Mr Thompson, who argued that the same tax structure has to apply to all Bahamas-based financial services providers regardless of whether they operate in the domestic or “offshore” segment. He expressed misgivings that the Government is seeking to reinstate the same two-tiered system that The Bahamas pledged to abolish, and which attracted the EU’s wrath in the form of socalled blacklisting.

“There needs to be equal and the same tax system for all the banks regardless of whether they do business here or just home base here,” Mr Thompson argued.

“The fee structure was set up to ensure the same system applied across the board to those home basing and those doing business here.”

Mr Davis, in response, focused on what he terms “suitcase” or “brass plate” companies that were domiciled in The Bahamas, conducted all their business activities outside the jurisdiction but were domiciled here and “not taxed at all”.

The EU and OECD, in their efforts to crackdown on international financial centres (IFCs) such as this nation, demanded that such entities be taxed.

Acknowledging the feebased structure established by the Minnis administration to replace the Business Licence fee and meet EU/ OECD demands, Mr Davis added: “But we are still short of what we had lost

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, ALEXANDER JOSEPH of 155 Beaconsfield, Freeport, Grand Bahama, Bahamas, intend to change my name to ALEXANDER GUE. If there are any objections to this change of name by Deed Poll, you may write such objections to the Deputy Chief Passport Officer, P.O. Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

[in revenue]. We are recovering that and, at the same time, introducing Business Licence fees for the banks.”

Noting that the elimination of ring fencing was part of a reform package that required financial services providers to establish a physical presence in The Bahamas, and prevent multinationals from artificially shifting profits between countries to avoid taxes, the Prime Minister said: “I did have some conversations with the former attorney general [Carl Bethel]. I thought there was another answer to it. We never got to deal with it. We are satisfied we are not violating it.”

This prompted Mr Thompson to ask whether the Government had discussed the proposed taxation shift with stakeholders both domestically and internationally, and “whether it creates any challenges for us with international regulators”.

Mr Davis replied that “my confidence comes” from the Government’s “technical team” telling him they were satisfied there will be no breach of the EU agreement.

“My first question when the matter was presented to me was whether we were violating any agreement with the EU and OECD,” he said.

“They assured me consultation had taken place and, as we were implementing the tax on domestic banks that do business with Bahamians and residents, that excludes us from violating any agreements we have.”

Mr Thompson, though, was not finished. In his contribution to the Budget debate, he said: “The second major amendment that concerns us is the reversal of the financial services fee structure that was implemented in 2018 to address the international community’s concern that the previous flat fee structure effectively gave ‘offshore institutions’ a tax advantage, considered to be so-called ring fencing....

“The previous government worked hard on this issue in consultation with the Central Bank, the Insurance Commission, the Securities Commission, the Bahamas Financial Services Board (BFSB), the Association of International Banks and Trust Companies (AIBT) and other interested stakeholders.

“As a result of that intense and close consultation, the new fee structure was developed and accepted by all parties, and presented to the OECD’s Code of Conduct Group on Tax Matters.

The Bahamas was eventually removed from the EU’s blacklist as a result, which appears to now be in jeopardy if this change goes through,” Mr Thompson added.

“Unless there is a new agreement that the Government has not yet disclosed, this will represent a reversal and a possible breach of agreements made, and could shake the foundation of our credibility as a trusted partner.”

THE TRIBUNE

Thursday, June 2, 2022, PAGE 9

AVIATION RELIEF AS ‘REALLY UGLY’ OUTCOME AVERTED

FROM PAGE ONE

forges ahead with its initial implementation due to the frustration that would have resulted from pilots spending two to three hours online trying to complete paperwork required for entry into The Bahamas.

Explaining that the issue was an increased “complexity burden”, and not financial, he suggested that the Government “take a step back and look at a strategy” to grow The Bahamas’ private aviation business given that it brought highspending visitors to the country and spread them around the islands rather than just confining them to Nassau’s mega resorts.

“I think this is great. I’m so happy,” Mr Gardner told this newspaper of Customs’ pull back. “I’ve been using the system, and pointing out all the issues. What be great would be to sit at the table and figure out what the Government needs, and how do we achieve that without killing the goose that lays the golden egg. That would be the quickest and best next step.

“We all need to come to the table in a positive way and work with the Government so they achieve what they want to achieve. The stakeholders can be a part of that, and we can communicate that to the industry, say ‘here’s the start date’ and help put together and distribute videos on how the system works.”

Mr Gardner said he had participated in something similar when the US introduced eAPIS, its own electronic border control and entry/exit system, which also impacted the aviation sector. “It’s unfortunate we got to where we are, but to everyone’s credit we got there,” he added of the now-eased frustration with Bahamas Customs and Click2Clear.

“I’m so glad that the Government of The Bahamas came out with the correction. Not all governments would. Some people dig in their heels, do not back down and pay the price for it. They do not have the foresight and vision to say let’s take a step back here and talk, and find a better way to do it. Kudos to them for doing that, and kudos to AOPA for taking the lead.

I’m passionate about The Bahamas, and this is good for it.”

Mr Gardner acknowledged that much now “depends on where we go from here”, and how long Customs is prepared to delay Click2Clear’s implementation - whether for a

month, year or indefinitely.

The move comes after the Nassau Airport Development Company (NAD) altered its own, separate plan to levy a $28 per passenger charge on international private aviation arrivals in favour of an aircraft weight-based levy.

“We’re not trying to be difficult for the sake of being difficult,” Mr Gardner added. “I know that market.

I think the Government needs to take a step back and look a strategy. These people have money every time they step off the plane.

They don’t have a boat, they don’t have a galley. These people come looking for a place to stay.

“They have the money to do it. They’re not like cruise passengers or airline passengers. They can pump money into the country, and don’t need to be transported by commercial airlines to do it.

They can fly to Deadman’s Cay, Long Island, and do it there.”

Revealing how he had been in contact with a home and boat owner in Pitts Town, Crooked Island, who had voiced frustration at having to spend three hours filling out Click2Clear’s entry requirements, Mr Gardner described Customs’

decision to delay as “huge” for the sector, tourism and the wider Bahamian economy.

“This was getting real ugly,” he told this newspaper of the fall-out had Customs proceeded. “This was the single ugliest thing I’ve seen in 18 years that I’ve been doing this. This was the ugliest thing I’ve seen. I deal with Mexican air space, and this thing was not there, but it was ugly all the way around. It was ugly, but the good news is we’ll never know how bad it could have been, but I have to tell you I think it would have been really bad.”

Mr Gardner said Click2Clear would have imposed a “complexity burden” that was sufficient to drive private pilots to other destinations. He suggested that the system needed to have an interface similar to eAPIS where, once flight plans were filed, the details were automatically updated electronically to Customs’ system.

His call for a specific aviation module, where fees and forms could be paid and filled out quickly and efficiently, was backed by Jim Parker of Caribbean Flying Adventures. In a letter to Mark Baker, AOPA’s

NOTICE

NOTICE is hereby given that JAMES BRAVE of Carmichael Road, Nassau, 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 26th day of May, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that YVES SIMPLICE of Bethel Avenue, Nassau, 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 26th day of May, 2022 to the Minister responsible for nationality and Citizenship, P. O. Box N-7147, Nassau, New Providence, The Bahamas.

president, he wrote: “Please do not take your eyes off the ball.

“The promised makeover of the app could still be a big problem unless is it dramatically simplified. The only ‘maybe’ concession that came out of the two hour meeting with the ‘Ambassadors’ was to drop the passport uploads. No mention, however, of dropping the laborious requirement to enter all the passport details for everyone on board or of simplifying the drop down menus, etc.

“A follow-up letter from AOPA with specific suggestions could be instrumental in arriving at an acceptable outcome. Fillable PDF forms are readily available. What will work for Customs and AOPA members is a general aviation app that is nothing more than two fillable forms – C7A and general declarations – plus an online payment app for the $50 arrival fee and the $29 per person departure tax,” Mr Parker added.

“These two forms have satisfied Customs for

decades and can continue to do so in a digital format while saving time and effort by everyone involved. A separate, simplified general aviation app makes sense given that the original Click2Clear application was built for agents and businesses, and later to capture payments from pleasure craft (boats).

“It contains a lot of moving parts that simply do not apply to general aviation aircraft. When you send your recommendations to Mr Munroe, I also suggest that you advise them to continue to accept paper documents and cash payments for the few pilots who are not comfortable with online processes.”

NOTICE

NOTICE is hereby given that OLIVIA KOURIE MAHDAVI of Ocean Club Residences, Paradise Island, New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 27th day of May, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

PAGE 12, Thursday, June 2, 2022

THE TRIBUNE

BIDEN SAYS HE WASN'T INFORMED EARLY ON OF BABY FORMULA WOES

By ZEKE MILLER Associated Press PRESIDENT Joe Biden on Wednesday said he was not briefed on the prospect of nationwide shortages of infant formula for about two months, and he acknowledged the strain on families as his administration struggles to address the situation.

Yet company executives at a meeting Biden hosted from the White House told the president that they knew the substantial impact that the shutdown of a major production plant in February would have on the U.S. supply almost immediately.

"They did, but I didn't," Biden told reporters later, saying he was not made aware of the severity until early April.

The delay, unexplained

by Biden or White House aides, undercut the administration's efforts to demonstrate that he has been on top of a problem that has compounded stress and economic difficulties for families with young children at a time when Americans are already struggling with inflation.

White House press secretary Karine Jean-Pierre insisted that the administration began working to address the crisis within days of the plant's closure, but could not explain the delay in raising the issue to Biden. She acknowledged that he is "frustrated" by the situation.

"We have been doing this whole of government approach since the recall," she said. "We have been working on this for months,

for months. We have been taking this incredibly seriously."

In recent weeks the government has imported foreign supplies and used the Defense Production Act to speed domestic production of infant formula. But those steps did not begin until mid-May, once retailers began rationing supplies and store shelves were emptying.

"There's nothing more stressful than feeling you can't get what your child needs," Biden said, adding that as a "father and a grandfather," he understands how difficult the shortages have been for parents and their children.

Jean-Pierre said Biden was satisfied with how the Food and Drug Administration has handled the response, though the

agency itself has promised to conduct and after-action review of what it described as a deficient effort.

The agency's response was "too slow and there were decisions that were suboptimal along the way," FDA Commissioner Robert Califf told lawmakers last week.

Biden hosted the roundtable with leaders of manufacturers ByHeart, Bubs Australia, Reckitt, Perrigo Co. and Gerber.

Notably absence was Abbott Nutrition, whose Michigan plant was shut down in February over safety concerns, leading to the domestic shortage.

The White House did not explain why Abbott was not included.

The meeting Wednesday was a chance to provide an update on what

the administration is calling "Operation Fly Formula" to import formula and to use the Korean War-era production law to require suppliers to prioritize their orders in a bid to ease bottlenecks.

The White House announced the third and fourth round of formula shipments from overseas would begin next week, from producer Kendamil in Britain and from Bubs Australia.

The shipments would bring Kendamil formula from Heathrow Airport in London to U.S. airports over a three-week period, starting June. 9. The flights will carry about 3.7 million 8-ounce bottle equivalents, shipped free of charge by United Airlines.

The first shipments will include Kendamil Classic Stage 1 and Kendamil

Organic formulas, which will be available at Target stores across the United States.

And Bubs Australia will ship the equivalent of 4.6 million 8-ounce bottles of its infant formula on Defense Department-contracted commercial aircraft from its hub in Melbourne, Australia, to Pennsylvania and California on June 9 and June 11, respectively.

The imports will help but will not immediately bring an end to supply shortages that have left people who depend on formula facing empty shelves or limits on purchases.

The Food and Drug Administration began focusing on Abbott's plant last fall while tracking several bacterial infections in infants who had consumed formula from the facility.

PAGE 18, Thursday, June 2, 2022

THE TRIBUNE

GN-2720

COMMONWEALTH OF THE BAHAMAS

2016/CLE/gen/01268

IN THE SUPREME COURT Common Law and Equity Division IN THE MATTER of an Indenture of First Demand Legal Mortgage dated the 17th day of August A.D., 2005 and made between Derek Troy Ferguson and Brenda Louise Ferguson nee Taylor (as Borrowers) of the first part, Brenda Louise Ferguson nee Taylor (as Mortgagor) of the second part and Bank of The Bahamas Limited (as Lender) of the third part to secure advances to the said Derek Troy Ferguson and Brenda Louise Ferguson nee Taylor by the said Bank of The Bahamas Limited AND IN THE MATTER of an Indenture of First Demand Legal Mortgage dated the 17th day of August A.D., 2005 and made between Derek Troy Ferguson and Brenda Louise Ferguson nee Taylor (as Borrowers) of the one part and Bank of The Bahamas Limited (as Lender) of the other part to secure advances to the said Derek Troy Ferguson and Brenda Louise Ferguson nee Taylor by the said Bank of The Bahamas Limited AND IN THE MATTER of an Indenture of First Demand Legal Mortgage dated the 17th day of August A.D., 2005 and made between Derek Troy Ferguson and Brenda Louise Ferguson nee Taylor (as Borrowers) of the one part and Bank of The Bahamas Limited (as Lender) of the other part to secure advances to the said Derek Troy Ferguson and Brenda Louise Ferguson nee Taylor by the said Bank of The Bahamas Limited AND IN THE MATTER of All Those pieces parcels or lots of land being Lots “C” and “E” on the plan of the Subdivision of Lot Number Three 3 of the Sandilands Allotments in the Fox Hill area, in the Eastern District of the Island of New Providence, The Bahamas AND IN THE MATTER of All That piece parcel or lot of containing Five Thousand One Hundred and Thirty Three (5,133) square feet being Lot “J”, Frank Edgecombe Drive (formerly Springfield Road) in the Eastern District of the Island of New Providence, The Bahamas AND IN THE MATTER of Rules of the Supreme Court Order 77 BETWEEN BANK OF THE BAHAMAS LIMITED Plaintiff AND DEREK TROY FERGUSON 1st Defendant AND BRENDA LOUISE FERGUSON nee TAYLOR 2nd Defendant TO: BRENDA LOUISE FERGUSON nee TAYLOR TAKE NOTICE that: 1.

An action has been issued against you by Bank of The Bahamas Limited in the Supreme Court of the Commonwealth of The Bahamas by Originating Summons filed on the 29th day of August, A.D., 2016 being Action No. 2016/CLE/ gen/01268.

2.

The Plaintiff intends to proceed in this action after the expiration of Thirty (30) days from the last date of publication of this advertisement.

3.

It has been ordered that service of the Notice of Intention to Proceed filed in this said action on the 19th day of October, A.D., 2021 be effected on you by virtue of this advertisement.

Dated the 12th day of April A.D., 2022 OXFORD LAW CHAMBERS Chambers Park Plaza Annex Springfield Street, Fox Hill Nassau, The Bahamas

PAGE 20, Thursday, June 2, 2022

THE TRIBUNE

MARKET REPORT www.bisxbahamas.com

WEDNESDAY, 1 JUNE 2022

BISX ALL SHARE INDEX: BISX LISTED & TRADED SECURITIES 52WK HI 6.70 53.00 2.05 2.61 2.60 6.10 10.05 3.52 9.02 3.10 8.00 16.60 2.65 10.28 11.25 10.85 15.20 4.00 11.00 16.50

52WK LOW 4.75 32.12 1.49 2.20 1.30 5.75 6.96 2.82 4.25 2.27 5.94 9.75 1.99 7.05 10.02 9.01 13.10 3.50 8.19 15.50

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

PREFERENCE SHARES 1.00

1.00

1000.00 1000.00

1000.00 1000.00

1.00 10.00 1.00

1.00 10.00 1.00

52WK LOW 100.00 100.00

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

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

CHANGE

%CHANGE

YTD

YTD%

2430.20

-0.90

-0.04

201.96

9.06

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

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

CLOSE

SYMBOL FBB22 BFHB

BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 101.03 100.71 100.53 100.43 100.34 100.23 100.00 100.00 100.98 100.00

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.97 100.26 100.28 100.43 100.04 100.00 89.62 89.00 90.24 90.73

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

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

Bahamas Note 6.95 (2029) BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-7Y BGRS FX BGR141230 BGRS FL BGRS68023 BGRS FL BGRS70022 BGRS FL BGRS75022 BGRS FL BGRS81037 BGRS FL BGRS88028 BGRS FX BGR129249 BGRS FX BGR131249 BGRS FX BGR132249 BGRS FX BGR136150

BAH29 BG0107 BG0207 BG0130 BG0230 BG0307 BG0330 BG0407 BSBGR1412307 BSBGRS680232 BSBGRS700220 BSBGRS750225 BSBGRS810375 BSBGRS880287 BSBGR1292493 BSBGR1312499 BSBGR1322498 BSBGR1361504

LAST CLOSE 5.35 39.95 2.04 2.35 2.47 6.10 9.75 3.50 8.12 2.82 8.00 16.00 2.83 10.25 12.16 10.85 15.20 3.98 10.00 15.50 1.00 1000.00 1000.00 1.00 10.00 1.00 LAST SALE 100.00 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 101.20 100.26 100.53 100.54 100.34 100.00 89.62 100.00 100.00 100.00

CLOSE 5.35 39.95 2.04 2.35 2.47 6.10 9.75 3.50 8.15 2.81 8.00 16.00 2.81 10.26 12.14 10.85 15.20 3.98 10.00 15.50 1.00 1000.00 1000.00 1.00 10.00 1.00

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

VOLUME

2,500 5,634

1,500

50

0.00 0.00 0.00 0.00 0.00 0.00

CLOSE 100.00 100.00

CHANGE 0.00 0.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 101.20 100.26 100.53 100.54 100.34 100.00 89.62 100.00 100.00 100.00

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

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

MARKET TERMS

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.03 (0.01) 0.00 0.00 (0.02) 0.01 (0.02) 0.00 0.00 0.00 0.00 0.00

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

VOLUME

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

0.000 0.000 0.000 0.000 0.000 0.000

INTEREST Prime + 1.75% 6.25% 6.95% 4.50% 4.50% 6.25% 6.25% 4.50% 6.25% 4.25% 5.35% 4.62% 4.50% 4.43% 4.87% 4.33% 5.55% 5.60% 5.65% 5.69%

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

P/E 22.4 42.9 N/M 16.8 N/M N/M 26.4 -8.0 58.2 15.3 17.8 22.2 27.5 22.0 18.8 14.9 18.6 19.6 10.6 24.6

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

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

MATURITY 19-Oct-2022 30-Sep-2025 20-Nov-2029 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2022 26-Jun-2045 15-Oct-2022 17-Nov-2030 21-Jul-2023 29-Jul-2022 7-Sep-2022 26-Jul-2037 26-Jul-2028 15-Apr-2049 15-Jul-2049 15-Oct-2049 21-Apr-2050

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

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

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | CORALISLE 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333

CROSSWORD PUZZLE

Friday, June 3, 2022

YIELD 3.18% 3.15% 0.98% 3.40% 0.00% 0.00% 2.67% 0.00% 0.00% 4.27% 2.75% 4.50% 15.44% 0.58% 2.70% 2.21% 3.55% 3.02% 2.00% 3.94%

NOTICE

NOTICE is hereby given that ALI MAHDAVI of Ocean Club Residences, Paradise Island, New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 27th day of May, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

THE TRIBUNE

Thursday, June 2, 2022, PAGE 21

UKRAINE WAR BLAMED FOR FUEL HIKES IN SOUTH AFRICA, CONTINENT

By MOGOMOTSI MAGOME Associated Press SOUTH Africans are feeling the bite of fuel price increases as a result of Russia's war in Ukraine and the rise in the Brent crude oil price.

Neighboring Zimbabwe and other African countries are also grappling with increasing fuel prices.

South Africa, the continent's most developed economy, saw gas prices go above 24 rand ($1.50) per liter, more than $5.80 per gallon. Diesel prices also went up.

The latest increases make fuel in South Africa about 40% more expensive than a year ago. To try to hold down the spike in price, the government has reduced its tax on fuel sales.

The government said the increases were a result of the rise in the price of Brent crude oil.

The fuel price increase is the latest addition to South Africa's economic woes, which include a 34.5% unemployment rate and an economic downturn caused by the COVID-19 pandemic which resulted in the loss of an estimated 2 million jobs.

Economists are warning of further increases throughout the year, which will hit consumers already dealing with rising food, electricity, and transport costs, University of Witwatersrand economist Professor Jannie Rossouw said.

The biggest impact would be felt by the poor, who are already facing economic hardship, he said.

"The government has to do what it expects ordinary people to do by also cutting costs and using public money frugally because reducing the fuel levy will have a big impact on its revenue collection," he said.

"I'm not happy with the increase, it is too much. It will now be too difficult to buy food for the children, we will end up having to sell our cars to avoid petrol costs," said Soweto motorist Mwelase Mooki as he waited in the gas station line to fill up his car before the petrol increase came into effect at midnight.

Fuel prices have also risen in neighboring Zimbabwe.

Gasoline now costs about $1.70 per liter, up from $1.44 before Russia's invasion of Ukraine. The government attributes the increases to the war in Ukraine.

THE WEATHER REPORT

5-Day Forecast

TODAY

ORLANDO

High: 90° F/32° C Low: 73° F/23° C

TAMPA

SATURDAY

SUNDAY

MONDAY

A t‑storm in spots in the afternoon

Cloudy with a few showers late

A t‑storm around in the afternoon

Very windy; a shower and t‑storm

A stray t‑storm; winds subsiding

Partly sunny with a thunderstorm

High: 86°

Low: 77°

High: 84° Low: 76°

High: 85° Low: 77°

High: 86° Low: 77°

High: 87° Low: 76°

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

97° F

83° F

91°-79° F

90°-79° F

95°-83° F

99°-81° F

tiDes For nassau High

almanac

E

ABACO

S

N

High: 83° F/28° C Low: 78° F/26° C

4‑8 knots

S

High: 87° F/31° C Low: 74° F/23° C

4‑8 knots

FT. LAUDERDALE

FREEPORT

High: 87° F/31° C Low: 76° F/24° C

S

E

W

WEST PALM BEACH

E

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

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.

W

W

uV inDex toDay

FRIDAY

N

N

| Go to AccuWeather.com

TONIGHT

High: 92° F/33° C Low: 77° F/25° C

High: 84° F/29° C Low: 76° F/24° C

MIAMI

High: 88° F/31° C Low: 76° F/24° C

6‑12 knots

Statistics are for Nassau through 2 p.m. yesterday Temperature High ................................................... 82° F/28° C Low .................................................... 71° F/22° C Normal high ....................................... 86° F/30° C Normal low ........................................ 73° F/23° C Last year’s high ................................. 82° F/28° C Last year’s low ................................... 68° F/20° C Precipitation As of 2 p.m. yesterday ................................. 0.70” Year to date ............................................... 16.29” Normal year to date ..................................... 8.67”

ELEUTHERA

NASSAU

High: 86° F/30° C Low: 77° F/25° C

Forecasts and graphics provided by AccuWeather, Inc. ©2022

High: 84° F/29° C Low: 78° F/26° C

N

KEY WEST

High: 84° F/29° C Low: 76° F/24° C

Low

Ht.(ft.)

2.1 2.8

4:45 a.m.

4:26 p.m.

0.2 0.2

11:11 a.m.

11:32 p.m.

2.0 2.7

5:25 a.m.

5:06 p.m.

0.3 0.4

Saturday

11:55 a.m. ‑‑‑‑‑

2.0 ‑‑‑‑‑

6:07 a.m.

5:50 p.m.

0.4 0.5

Sunday

12:15 a.m.

12:43 p.m.

2.6 2.0

6:51 a.m.

6:39 p.m.

0.5 0.6

Monday

1:00 a.m.

1:34 p.m.

2.6 2.1

7:36 a.m.

7:33 p.m.

0.5 0.7

Tuesday

1:49 a.m.

2:28 p.m.

2.5 2.2

8:22 a.m.

8:33 p.m.

0.5 0.7

Wednesday 2:41 a.m.

3:24 p.m.

2.5 2.4

9:09 a.m.

9:35 p.m.

0.3 0.6

10:29 a.m.

10:51 p.m.

Friday

sun anD moon Sunrise Sunset

High: 84° F/29° C Low: 78° F/26° C

N

S

E

W

6‑12 knots

S

6‑12 knots Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

Ht.(ft.)

Today

6:20 a.m. Moonrise 7:56 p.m. Moonset

8:40 a.m.

10:56 p.m.

First

Full

Last

New

Jun. 7

Jun. 14

Jun. 20

Jun. 28

CAT ISLAND

E

W

66% before the Ukraine war to just over 130% in May. Prices of basic goods are spiking with a major factor being the increases in fuel prices. The state-owned bus transport company more than doubled its fares last week.

Uganda has also been battling rising fuel costs since 2021 after the government increased excise duty on petroleum products.

However, the prices have surged even higher in recent months, driven by a brief period of shortages in neighboring Kenya as well as what the government sees as inflationary pressure stemming from the war in Ukraine.

To reduce fuel prices, Zimbabwe has reintroduced the mandatory blending of gas with ethanol produced locally. Starting Wednesday petrol will be blended with 20% ethanol, which will reduce the pump price by 7 cents, said information minister Monica Mutsvangwa.

Zimbabwe's government said this week that it will also embark on a $20 million upgrade of an oil pipeline from Mozambique's port city of Beira to increase its capacity and reduce the inland country's reliance on trucks to deliver fuel.

Zimbabwe is grappling with sky-high inflation, with its annual rate rising from

ANDROS

SAN SALVADOR

GREAT EXUMA

High: 84° F/29° C Low: 79° F/26° C

High: 85° F/29° C Low: 79° F/26° C

N

High: 83° F/28° C Low: 77° F/25° C

E

W S

LONG ISLAND

tracking map

High: 85° F/29° C Low: 79° F/26° C

6‑12 knots

MAYAGUANA High: 85° F/29° C Low: 80° F/27° C

Shown is today’s weather. Temperatures

CROOKED ISLAND / ACKLINS

are today’s highs and tonight’s lows.

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

L

High: 84° F/29° C Low: 80° F/27° C

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

N

E

W

E

W

N

S

S

6‑12 knots

6‑12 knots

marine Forecast ABACO

L

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

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

WINDS SW at 4‑8 Knots SSW at 7‑14 Knots SE at 6‑12 Knots SSE at 8‑16 Knots SE at 6‑12 Knots E at 6‑12 Knots ESE at 7‑14 Knots ESE at 6‑12 Knots SSE at 4‑8 Knots SE at 6‑12 Knots WSW at 4‑8 Knots S at 6‑12 Knots SE at 6‑12 Knots E at 6‑12 Knots SE at 6‑12 Knots SSE at 4‑8 Knots ESE at 7‑14 Knots E at 6‑12 Knots ESE at 7‑14 Knots ESE at 7‑14 Knots SE at 6‑12 Knots SSE at 7‑14 Knots SE at 6‑12 Knots ESE at 6‑12 Knots SE at 6‑12 Knots ESE at 4‑8 Knots

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

VISIBILITY 7 Miles 6 Miles 6 Miles 6 Miles 7 Miles 10 Miles 6 Miles 10 Miles 6 Miles 8 Miles 7 Miles 5 Miles 10 Miles 6 Miles 10 Miles 10 Miles 7 Miles 6 Miles 7 Miles 10 Miles 7 Miles 6 Miles 10 Miles 6 Miles 7 Miles 5 Miles

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

PAGE 22, Thursday, June 2, 2022

THE TRIBUNE

Stocks slide as strong economic data raises rate worries

By STAN CHOE AND ALEX VEIGA AP Business Writers A SWIFT jump in Treasury yields rattled Wall Street on Wednesday, pulling stocks broadly lower at the start of another month in what’s been a turbulent year for the market.

The S&P 500 ended 0.7% lower after an early morning gain quickly gave way to choppy trading. The Dow Jones Industrial Average slid 0.5% and the Nasdaq fell 0.7%.

Stocks began their slide immediately after the release of several reports on the U.S. economy, including one showing manufacturing growth was stronger last month than expected. That bolstered investors’ expectations for the Federal Reserve to continue raising interest rates aggressively to slow the economy in hopes of reining in inflation.

“Investors are worried about the Fed meeting coming up, and because inflation is expected to remain stubbornly elevated the Fed probably won’t get away with front-end loading the rate tightening cycle and then pausing in the fall,” said Sam Stovall,

chief investment strategist at CFRA. The S&P 500 fell 30.92 points to 4,101.23. The Dow gave up 176.89 points to 32,813.23, after losing an early gain of 282 points.

The Nasdaq composite slid 86.93 points to 11,994.46. It also ended in the red after giving up an early 1.3% gain.

Smaller company stocks also lost ground. The Russell 2000 index dropped 9.22 points, or 0.5%, to 1,854.82.

Daily market swings have become routine on Wall Street amid worries that too-aggressive rate hikes by the Fed may force the economy into a recession.

Even if it can avoid choking off the economy, higher rates put downward pressure on stocks and other investments regardless.

High inflation is meanwhile eating into corporate profits, while the war in Ukraine and business-slowing, antiCOVID-19 restrictions in China have also weighed on markets.

The Fed has signaled it may continue raising its key short-term interest rate by double the usual amount at upcoming meetings in

SHERYL Sandberg, the No. 2 executive at Facebook owner Meta, who helped turn its business from startup to digital advertising empire while also taking blame for some of its biggest missteps, is stepping down.

Sandberg has served as chief operating officer at the social media giant for

14 years. She joined from Google in 2008, four years before Facebook went public.

"When I took this job in 2008, I hoped I would be in this role for five years. Fourteen years later, it is time for me to write the next chapter of my life," Sandberg wrote on her Facebook page Wednesday.

Sandberg has led Facebook — now Meta's — advertising business and

hearings he's been called to testify in to defend Facebook's practices.

Neither Sandberg nor Zuckerberg gave any indication that Sandberg's resignation wasn't her decision. But she's also appeared somewhat sidelined in recent years, with other executives close to Zuckerberg, such as Chris Cox — who returned in 2020 as chief product officer after a yearlong break from the company —becoming more prominent.

"Sheryl Sandberg had an enormous impact on

Facebook, Meta, and the broader business world.

She helped Facebook build a world-class ad-buying platform and develop groundbreaking ad formats," said Debra Aho Williamson, an analyst at Insider Intelligence. But she added that Facebook faced "huge scandals" under Sandberg's watch — including the 2016 U.S. presidential election, the Cambridge Analytica privacy debacle in 2018, and the 2021 riot at the U.S. Capitol.

IN this photo provided by the New York Stock Exchange, specialist Mike Pistillo works at his post on the trading floor, Wednesday, June 1, 2022. Stocks were moderately lower in midday trading Wednesday after a stronger-than-expected report on manufacturing showed that it’s likely the Federal Reserve will continue to aggressively raise interest rates to slow down the economy and tame inflation.

Photo:Courtney Crow/AP June and July. Speculation built last week that the Fed may consider a pause at its September meeting, which helped stocks to rise. But such hopes diminished after Wednesday’s manufacturing

report from the Institute for Supply Management.

It showed U.S. manufacturing growth accelerated last month, contrary to economists’ expectations for a slowdown. A separate

SHERYL SANDBERG, LONG FACEBOOK'S NO. 2 EXEC, STEPS DOWN

By BARBARA ORTUTAY AND MICHAEL LIEDTKE AP Technology Writers

report said that the number of job openings across the economy ticked a bit lower in April but remains much higher, at 11.4 million, than the number of unemployed people.

Following the reports, traders are now betting on a 60% probability that the Fed will raise its benchmark short-term rate to a range of 2.25% to 2.50% at its September meeting. A week ago, the majority of bets was on a lower level, at a range of 2% to 2.25%, according to CME Group.

The yield on the two-year Treasury, which tends to follow expectations for Fed moves, jumped with those expectations. It rose to 2.66%, up from 2.56% just before the manufacturing report’s release.

Wednesday also marks the start of the Fed’s program to pare back some of the trillions of dollars of Treasurys and other bonds that it amassed through the pandemic. Such a move should put upward pressure on longer-term rates.

The 10-year Treasury yield rose to 2.92% from 2.84% just before the report’s release.

Airlines and stocks of other travel-related companies were some of Wednesday’s biggest losers on Wall Street amid worries that inflation is slicing away their earnings.

was responsible for nurturing it from its infancy into an over $100 billion-a-year powerhouse. As the company's second most-recognized face — after CEO Mark Zuckerberg — Sandberg has also become a polarizing figure amid revelations of how some of her business decisions for Facebook helped propagate misinformation and hate speech.

As one of the most prominent female executives in the

tech industry, she was also often criticized for not doing enough both for women and for others harmed by Facebook's products. Her public-speaking expertise, her seemingly effortless ability to bridge the worlds of tech, business and politics served as a sharp contrast to Zuckerberg, especially in Facebook's early years. But Zuckerberg has since been catching up, trained in part for the several congressional