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TUESDAY, JUNE 4, 2019

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Brewery suffers loss on $2.7m cost one-offs By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net COMMONWEALTH Brewery has blamed a sixfigure loss for the 2019 first quarter on $2.7m in one-off expenses linked to restructuring, staff lay-offs and Kalik Light’s re-branding. The BISX-listed brewer, unveiling its results for the three months to endMarch, said shareholders were experiencing temporary pain in order to realise “planned efficiencies” that will be felt in its financial results in the coming months. The vertically-integrated brewer, wholesaler and retailer, which is 25 percent owned by Bahamian shareholders, told the capital markets that it also had to contend with flat revenues as well as increased costs during the first quarter as it lost four sales days in “going live” with its new Enterprise Resource Planning (ERP) system. The impact from the $866,258 loss for the 2019 first quarter, representing a more than-$3m “swing” from the profits generated in the year-before period, was also felt on Commonwealth Brewery’s balance sheet. The brewer, which is 75 percent majority-owned by international giant, Heineken, saw its cash and cash equivalents shrink by more than $7.5m in the three months after 2018 year-end, dropping from $9.09m to just $1.503m. Commonwealth Brewery’s current liabilities of $41.31m also just about exceeded its $41.177m in current assets at the March quarter-end, although its plant and other physical assets ensured its net equity remains at a healthy $55.668m. “Commonwealth Brewery is preparing itself to become a more streamlined organisation that would deliver increased value and efficiencies through our people and processes,” the company said in explaining its 2019 first quarter results to investors. “Increases in the three principal operating expense lines, compared to the first quarter of 2108, relate to the restructuring and realignment exercise in process, which had an impact of $1.5m.

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No $480m property tax arrears write-off By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

HE government has no plans to write-off its $480m in real property tax arrears and will “pursue” all delinquents “with vigour”, its top finance official warned yesterday. Marlon Johnson, the Ministry of Finance’s acting financial secretary, told Tribune Business that barring any change in policy it will continue to target every tax cheat through a combination of private sector collection agencies and the soon-to-be created Revenue Enhancement Unit (REU). He revealed that the latter will create a call centre and employ a collections team to “chase down” defaulters who have contributed to almost half a billion dollars in uncollected property tax arrears identified by the auditor general in his latest report for the 2015-2016 fiscal year. The government is also aiming to “better coordinate and target” the

“ENORMOUS confusion” exists even among hotel union members over whether industry employers want to eliminate or alter the automatic 15 percent gratuity, Tribune Business was told yesterday. Dionisio D’Aguilar, minister of tourism and aviation, told Tribune Business that “it’s a matter of conjecture as to who agreed to what and what’s in dispute” as the fall-out from last week’s overwhelming vote in favour of a strike by Bahamas Hotel, Catering and Allied Workers Union (BHCAWU) members continues. Implying that the union’s actions are premature, given that negotiations between itself and representatives from the Bahamas Hotel and Restaurant Employers Association (BHREA) are not scheduled to begin until June 27, Mr D’Aguilar

GB tech hub won’t appear ‘overnight’

• Top official: ‘We don’t like’ forgiveness • Will still ‘pursue’ deadbeats vigorously • Tax under-performed by 46% in 15-16

MARLON JOHNSON work performed by private sector collection agencies on its behalf, Mr Johnson disclosed, focusing them on the “more challenging cases” involving real property tax cheats. While it may appear that the government has little choice but to write-off a substantial proportion of the $480m real property tax arrears mountain in the auditor general’s report, the acting financial secretary

said it was no conceding defeat on any of this sum just yet. “Our intention is to collect all the tax that is due,” Mr Johnson told Tribune Business. “As it stands now, no [write-off] has been contemplated. The government may make a policy decision, but for the time being we will certainly pursue all taxes due. “We will continue to look and find a reasonable approach where necessary, and do so in a way that makes sense for the government and taxpayer. If people show a preparedness to pay, and come up with a reasonable payment arrangement, we will continue to work with persons.” The 2019-2020 budget communication made much of the government’s recently-announced doorto-door campaign to visit all 100,000-plus properties on New Providence, and assess

them in a bid to develop a standard, fair methodology for property tax valuations, while adding 9,000 properties to the tax roll and collecting an extra $21m in revenue annually. However, it made no mention of how the government planned to tackle the build-up of past real property tax arrears that features prominently in every Auditor General’s Office audit of its annual financial accounts. Those arrears are now more than double the projected annual deficit of $229m for the current 2018-2019 fiscal year. Mr Johnson yesterday explained that a key element of the government’s strategy is the newly-formed Revenue Enhancement Unit (REU) that will formally begin work on July 1. “A part of the Revenue Enhancement

pointed to the contradictory positions taken by both sides over the gratuity. “There’s enormous confusion because the union is saying the mandatory 15 percent gratuity charge is under attack, and Atlantis is saying it was never an issue,” the minister told this newspaper. “I don’t think they’ve

even got into the room to start negotiations. The only way this can be resolved is if their meeting goes ahead, all matters are vented and we see what the issues are. It’s critical they do that. It’s a matter of conjecture who agreed to what and what’s in dispute. “It’s not just the hotel workers that are potentially

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

affected by some sort of industrial action; it’s the whole nation - taxi drivers, tour operators, straw and beach vendors. It’s very important we get this right.” Mr D’Aguilar’s primary concern is to avoid any industrial action that may disrupt - and threaten - the double digit percentage increases in visitor arrivals and hotel earnings indicators that The Bahamas has enjoyed for 2019 to-date in a sign that the sector may finally be putting a decade-long post 2008-2009 recession hangover behind it. However, the “confusion” over the gratuity referred to by Mr D’Aguilar extends even to hotel union members themselves. Dave

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• Minister: Dispute ‘a matter of conjecture’ • Unionist: ‘You don’t know what to believe’ • Hotels seeking ‘equity’, not elimination

DIONISIO D’AGUILAR

KWASI THOMPSON

THE government’s plans to transform Grand Bahama into a technology hub will not materialise “overnight”, a Cabinet minister admitting yesterday: “There is a whole lot more to be done”. Senator Kwasi Thompson, minister of state for Grand Bahama, said that while the government is pleased with its successes to date, establishing a new industry was not an easy process. “The government has been focused on marketing Grand Bahama as a technology hub. We believe that the island is suited to do so because of its proximity and infrastructure,” said Mr Thompson in an interview with Tribune Business during an Internet workshop at the British Colonial Hilton. “Creating a new industry is not a simple process. It is not a process that is going to be done overnight. It is something the government really is focusing on doing. We have seen some success. We are pleased with those successes, but there is a whole lot more to be done. “There is a lot more training and promotion to be done, and a lot more sensitising the public as to what we want to do. There are a lot more companies we believe would be interested in coming to Grand Bahama. We will continue to keep pushing with this agenda and keep moving. We believe that a number of employment opportunities can be arrived at, and a lot more economic opportunities can be arrived at.” Mr Thompson’s comments come after GIBC Digital, the company viewed as the “flagship” investment for the technology hub, seemingly shut its Grand Bahama office and sent all remaining employees to work from home. It is

‘Enormous confusion’ over hotel gratuities By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

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Sebas funds: No liability over ‘conflicts of interest’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net INVESTORS buying into the mutual funds launched yesterday by Sebas Bastian’s investment house will not be able to take legal action relating to any “conflicts of interest” it may have. The offering memorandums for the Titan Balanced Fund and Titan Fixed Income Fund, which have been scrutinised by Tribune Business, both contain clauses stating that investors acknowledge the existence of such “conflicts” - and “agree not to assert any claim against Investar Securities or the funds” - when they execute the agreements to buy shares in them. “Conflicts of interest” are identified as a “risk factor” in both funds’ prospectuses, which state: “There

Titan investors sign away right to claim are potential conflicts of interest between the interests of the shareholders [in the funds] and the business interests and activities of Investar. Among other reasons, these potential conflicts may result from Investar’s investment activities on behalf of its other clients.” The Titan funds both pledge that their investment manager, Leno Corporate Services, “shall not enter into any such transaction on behalf of the fund that is not in the best interests of the fund” as a means to safeguard against any possibility that investors may get a raw deal. However, a subsequent

“risk factor” identifies the fact that the Titan funds will “share a common director” with both Investar and Playtech Systems, the latter being the parent company for Mr Bastian’s Island Luck web shop chain. The “common director” is likely to be Dirk Simmons, Playtech’s chief financial officer. “By executing a subscription agreement, each shareholder acknowledges that such conflicts of interest exist and agrees that both Investar and the fund will have no liability to the shareholder as a result of these conflicts,” both funds’ offering documents state. “The shareholders agree not to assert any claim

against Investar or the fund arising in connection with any conflict of interest experienced by Investar, whether or not specifically set forth above.” Ansel Watson, Investar’s president and chief executive, declined to comment on the level of interest that the Titan funds attracted during their first day on the market, instead referring Tribune Business to its public relations agency, Diane Phillips & Associates. No response was received to an inquiry made to the agency before press time. But capital markets experts consulted by Tribune Business yesterday described the existence of these stipulations in both funds’ prospectuses as unusual, and questioned whether they were effectively asking shareholders

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THE TRIBUNE

Service quality win for Freeport firm A FREEPORT-BASED small business has been recognised by the world’s largest travel platform for the quality of its customer service. Island Yogurt co-owners, Paul and Kimberley Brown, received a 2019 TripAdvisor Certificate of Excellence. This is awarded to businesses based on consistently great reviews received on TripAdvisor. Kimberley Brown said: “We are very humbled to be recognised because we pride ourselves on delivering the best customer experience to everyone who walks into Island Yogurt. We know that customer service is critical for the success of our business and the economy of Grand Bahama.” Island Yogurt, which launched in 2012 and is located in the Port Lucaya Marketplace, provides fresh frozen yogurt in a self-serve

PAUL & KIMBERLY BROWN format along with an array of toppings. To qualify for the TripAdvisor award, a business must maintain an overall rating of at least four out of five; have a minimum number of reviews; and be listed on TripAdvisor for at least 12 months. Paul Brown said: “This is our first time being recognised by TripAdvisor and it feels really good. We

now belong to a prestigious group of Grand Bahama businesses being globally recognised for excellent customer service and quality products.” The co-owners added that the award will help showcase their business to local residents, tourists and international visitors who use TripAdvisor to research and select the best eateries in Freeport. Island Yogurt has a loyal, reliable customer base, which the Browns believe is one of the reasons why they were awarded the Certificate of Excellence. “We give God thanks for this award. We are very grateful to each of our customers who graciously support our business and know that without them, none of this would be possible,” said Kimberley Brown. “Together, we all achieved this and we humbly say, thank you.”

DHL EXPRESS OPENS NEW NASSAU FACILITY DHL Express, the global delivery company, has opened a new 9,578 square foot facility in Nassau to integrate its Bahamian operations into one location. It has moved to consolidate pick-up and delivery operations, international gateway and country office operations under one roof to provide better customer service and seamless processing. “By combining all three functions in the same building, DHL will be better able to manage customer shipping growth, while

simultaneously offering unparalleled service for existing Bahamian business customers, as well as tourists visiting the islands,” said DHL Bahamas country manager, Loukishia Cooper. DHL Express has onsite Customs clearance at its own facility, ensuring deliveries occur as quickly as possible. The full-service DHL Express facility, located at the Solomon’s Building inSuite 2A on the East-West Highway, also includes: • A larger, state-of-theart operational facility,

supported local pick-up and delivery routes • A centralised location to drop off and pick-up passports, and pay associated fees (as part of an agreement with the US Embassy in Nassau) “The facility manages a wide range of shipped items – from golf clubs and suitcases to wedding dresses, important documents and critical parts for yachts docked in the harbours,” said Cooper. “By integrating our efforts in one location, including on-site Customs clearance, we’ve developed an innovative solution that better-serves customers, enabling DHL to deliver packages earlier and more efficiently.” The facility also houses the sales, human resources, accounting and finance departments that comprise The Bahamas country office. Cooper added: “We’re excited to enhance our quality of services, speeding customer shipments with all of our operations under one roof.”

FORUM DISCUSSES AMENDMENTS TO INSOLVENCY REGIME THE Restructuring and Insolvency Specialists Association (RISA Bahamas) has held its first roundtable discussion on proposed reforms to The Bahamas’ insolvency framework. The debate focused on The Companies Winding Up Amendment Act 2011; the Companies liquidation rules; the International Commercial Arbitration Bill 2018; the Arbitration (Amendment) Bill 2018; the Bankruptcy Act 1870; and the Bankruptcy Rules 1876. The discussion was sponsored by PricewaterhouseCoopers (PwC) and Providence Law. It was opened by Tiphaney Russell of Deloitte & Touche, and the moderator was Sophia Rolle-Kapousouzoglou of Lennox Paton. The panelists featured Brian Moree QC (McKinney, Bancroft & Hughes); Philip C. Dunkley QC (Higgs & Johnson); John Delaney QC (Delaney Partners), Brian Simms QC (Lennox Paton); Ed Rahming (Intelisys Bahamas); and Igal Wizman (Ernst & Young). They considered the issue of whether the Supreme Court should be vested with the statutory jurisdiction to grant free-standing injunctions; the Baha Mar case as well as the liquidation of Cayman-based Caledonian Bank; and the issue of whether fraudulent preference claims should be served outside the jurisdiction. This is an issue upon which the Privy Council is expected to make a determinative finding on. The panel also considered the possibility of modernising The Bahamas’ bankruptcy laws, and the possibility of restructuring enactments to provide for debtor-friendly corporate and personal rescue mechanisms. RISA Bahamas is the local professional body for those practicing restructuring and insolvency. One of its main aims is professional education and training. RISA Bahamas is also a Professional Industry Association of the Bahamas Financial Services Board (BFSB), as well as a member association of the International Association of Restructuring, Insolvency & Bankruptcy Professionals (INSOL).

THE TRIBUNE

HE Central Bank yesterday described tourism’s performance as “buoyant” through April 2019, with “off-resort room nights” in the vacation rental sector up 31.7 percent that month. The regulator, in its report on April’s monthly economic developments, added that data from Lynden Pindling International Airport’s (LPIA) operator showed that air arrivals maintained “positive momentum” during the Easter month via an 18.3 percent year-overyear expansion in foreign departures. “Data from the Nassau Airport Development Company (NAD) showed an 18.3 percent expansion in total departures - net of domestic passengers - more than two times higher than the 7.9 percent gain recorded in the previous year, as growth in the US segment quickened to 21.3 percent from 6.8 percent,” the Central Bank said. “However, the gains in the non-US international component slowed to 2.8 percent from 14.3 percent in the previous period. Similarly, over the first

Tuesday, June 4, 2019, PAGE 3

Central Bank hails ‘buoyant’ tourism By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net four months of the year, aggregate departures strengthened by 21 percent, outpacing 2018’s 12.1 percent improvement. “This outturn reflected an increase in the US component by 23.1 percent, overshadowing the prior year’s 11.3 percent expansion. In contrast, gains in the non-US segment narrowed by 5.8 percentage points to 10.4 percent.” Turning to the vacation rental market, which is already being subjected to the imposition of VAT, the Central Bank added: “The increase in air visitors fuelled growth in the nonhotel based vacation rental

segment of the market. In this regard, data obtained from AirDNA showed that the total number of off-resort room nights sold firmed by 31.7 percent in April and by 18.7 percent for the year-to-date, with both hotel comparable and entire place listings firming over the four months by 22 percent and 18.3 percent, respectively. “A breakdown by market showed that the cumulative growth in room bookings was underpinned by a 51.4 percent expansion in demand for accommodation in Exuma, while New Providence, Abaco and Grand Bahama accounted for smaller increases of 14.5 percent, 6.8 percent and 2.5 percent, respectively.

“In terms of pricing, the average daily room rate (ADR) of the entire place listings - which is generally more comparable across periods - firmed by 3.8 percent to $398.75, due mainly to gains in room rates in Exuma. However, the ADR for hotel comparable listings declined by 6.2 percent to $159.24, as average prices for accommodation in Grand Bahama and New Providence contracted.” Elsewhere, the Central Bank said the effects associated with increased international oil prices and the “pass through” impact from last year’s VAT rate increase to 12 percent had resulted in inflation rising by 1.2 percentage points to 2.6 percent for the 12 months to February 2019 as

measured by the All-Bahamas Retail Price Index. “Domestic energy costs rose during April, with the average price of gasoline firming by 7.2 percent over the previous month, and by 8.7 percent vis-à-vis 2018 to $4.75 per gallon. Similarly, diesel prices were higher by 1.9 percent month-onmonth at $4.35 per gallon, but were 3.8 percent lower when compared to the prior year,” the Central Bank said. It added that an expanded labour force, resulting from the imminent release of high school leavers into the workforce as well as the return of previously discouraged workers, “could constrain” any reduction in the national 10.7 percent unemployment rate in

response to improved economic growth prospects. “The Bank remains sensitive to the underlying risks associated with the high levels of surplus liquidity in the banking system, which could have negative implications for reserves if the resources are deployed too rapidly to fund credit expansion,” the Central Bank continued. “The Bank will therefore continue to sell-off its holdings of government securities to absorb excess liquidity from the system over time. Similarly, the implementation of a credit bureau will serve to boost lenders’ confidence around the screening of high-risk borrowers and appropriately extending new credit in less risky fashion.”

BAHAMAS HOSTING ANTI-FINANCIAL CRIME TRAINING THE Financial Action Task Force’s (FATF) weeklong flagship training course on combating financial crime began for Bahamian and regional regulators this morning. The FATF Standards Training Course (STC) is being conducted for members of the Caribbean Financial Action Task Force (CFATF) by the FATF’s Training and Research Institute at the Poinciana House regulatory complex on East Bay Street. The training on global anti-money laundering and counter terrorism financing (AML/CFT) standards, and measures to combat these crimes, is being hosted by attorney general and minister of legal affairs, Carl W. Bethel QC, and is sponsored by the Securities Commission. “Training of this nature is an essential complement to the myriad legislative, policy and regulatory initiatives that the government and financial regulators continue to implement to protect the financial system from being abused for criminal purposes, including money laundering and terrorism financing,” Mr Bethel said.

THE FATF Standards Training Course (STC) is being held from 3-7 June at the Poinciana House regulatory complex in Nassau, The Bahamas. The event is being hosted by attorney general and minister of legal affairs, Carl W. Bethel (front row, third from left) and the Securities Commission of The Bahamas, represented by Christina R Rolle, executive director, front row, fourth from left. K Peter Turnquest, deputy prime minister and minister of finance, is in the front row, fifth from left. “The knowledge that so many of our Bahamian AML/CFT sentinels will take away from this training will greatly enhance the nation’s capacity to ensure that its legal and regulatory frameworks align with the FATF’s recommendations, and their effective implementation and enforcement

in the jurisdiction.” K Peter Turnquest, deputy prime minister and minister of finance, added: “Considering the importance of financial services to The Bahamas’ economic wellbeing, global standards setters, potential investors, as well as those that would seek to abuse our financial system, must know of The

PRIVATE SECTOR ‘CRITICAL’ TO INTERNET GOVERNANCE By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net IT is “critical” for the private sector to be involved in discussions on internet governance, the Utilities Regulation and Competition Authority’s (URCA) chief executive said yesterday. Stephen Bereaux spoke as URCA, in collaboration with the Internet Corporation for Assigned Names and Numbers (ICANN), the Internet Society (ISOC) and the American Registry for Internet Numbers (ARIN), hosted a two-day ICT Roadshow at the British Colonial Hilton. He told Tribune Business: “In connection with the government and the country’s policy to make technology the third pillar, one of the critical things is for the country to play a part and have a clearly defined and active multistakeholder internet governance society. “The internet doesn’t work like most governmental policies; it’s independent and works as a multi-stakeholder community. The Internet itself is distributed architecture. If you’re going to make technology a major part of your national policy, you have to ensure that your internet users and key internet partners are a part of that dialogue

STEPHEN BEREAUX so we can get the right kind of internet service, the right kind of activity and governance.” Mr Bereaux added: “It is critical that our local stakeholders and experts are part of that discourse. What we have done is partner with ICANN, the Internet Society (ISOC) and the American Registry for Internet Numbers (ARIN), which are global bodies that bring that discussion into The Bahamas, and hopefully will engender a discourse. “The workshop is an opportunity for key stakeholders to come together and understand what is needed for our country to

play a part in the global dialogue regarding the internet.” Mr Bereaux said that earlier this year URCA published a consultation paper on the creation of Internet Exchange Points (IXPs) for The Bahamas, which he described as part of Internet governance. The workshop opened yesterday and ends today. Senator Kwasi Thompson, minister of state for Grand Bahama, said: “The conference is extremely important and timely. It focuses attention on what really could and should be developed as the third pillar of our economy, the technology industry.”

Bahamas’ robust commitment to global anti-money laundering and counter terrorism and proliferation financing standards. “Hosting this event in The Bahamas not only allows us to expose an array of key persons across various agencies and authorities to this in-depth training but, we hope, helps to

reinforce that message.” Christina Rolle, the Securities Commission’s executive director, said: “The Commission remains committed to properly equipping its staff to deliver the worldclass regulation that the industry, the capital markets and investors deserve. “With our recent

implementation of riskbased supervision across our regulatory remit, and considering our progressive initiatives to overhaul and modernise the legislation we administer and to show regional leadership, sponsoring this event was a natural fit for our long-term objectives.” More than 40 persons, including representatives of financial regulators, the judiciary, the Financial Intelligence Unit and the Royal Bahamas Police Force are registered to take advantage of the five-day training session. Representatives from nine Caribbean countries including Antigua and Barbuda, Aruba, Barbados, Bermuda, Cayman Islands, Guyana, St Maarten, Trinidad and Tobago, and the British Virgin Islands are also attending the sessions. The course will focus on the FATF standards related to risk-based supervision, international co-operation, preventive measures, financial intelligence and investigations, counter-terrorism financing, counter-proliferation financing and beneficial ownership.

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THE TRIBUNE

No $480m property tax arrears write-off FROM PAGE ONE Unit team is a call centre team and a team of collection agents whose job it will be to go after the balance of delinquent property taxes,” he said. “That call centre team and the collectors will do the field work and go out and chase hard to collect real property taxes. In addition, for some of the more challenging cases the government has outsourced some of that to collections agencies that are experts in the field. “That’s part of the plan,” Mr Johnson added. “Certainly, the government is looking to go after that with

the same degree of vigour. There was some move to that already with the private sector collectors but we believe there needs to be a bit more of a refocus on the challenging cases. “There are a number of cases before the courts where they’ve worked it all the way through and got to the point of judgment. They’re hard at work, the collections agencies, but it’s the government’s view that their efforts need to be a bit more co-ordinated and targeted. “There are things happening, and collections going all the way through to take persons delinquent in property taxes to court

in efforts to collect. We don’t like to write-off. We attempt at times to make payment arrangements with persons, and there’s some accommodation in the new legislation for that.” The Real Property Tax Amendment Bill 2019 “empowers” the chief valuation officer to waive penalty surcharges when a tax delinquent enters into a payment plan to settle tax arrears, with the auditor general’s report for the 2015-2016 fiscal year again highlighting the government’s chronic under-performance in collecting real property tax. “Revenue collected for real property tax in

2015-2016 amounted to $103.741m in comparison to 2014-2015’s total of $107.004m. The revenue dropped by $3.263m or three percent,” the auditor general’s report said. “The revenue collected did not meet the budget expectation of $151.217m. It fell short by $47.477m or 46 percent. The decline in revenue collection for commercial property tax and foreign-owned undeveloped property tax, in part, contributed to the revenue shortfall.” Commercial real property tax revenues for 2015-2016 came in $17.01m under-budget at $49.56m compared to the projected

‘Enormous confusion’ over hotel gratuities FROM PAGE ONE Beckford, a hotel union member and employee, and recent presidential candidate, told Tribune Business yesterday: “You don’t know what to believe. “The union is saying what’s in the proposal, and that they [hotel employers] want to take away this, that and that, but the Atlantis president has now spoken to that issue and said they were never taking away the gratuity.” He added: “This contract situation has been going on so long that the only people hurting in this are the workers. I’m not surprised it’s come to this. “If both parties had a better working relationship it may not have been so bad, but there was never a good working relationship when Nicole Martin was president, and I don’t think the employers see Darren [Woods, current president] any differently he was the general secretary at the time.” Hotel union members, in the run-up to last week’s strike vote, were especially incensed that the BHREA’s opening industrial agreement proposal seemed to seek an elimination of the automatic 15 percent gratuity that has almost become an industry staple. Gratuities, in particular, represent 80-90 percent of tipped employees’ take home pay, and

DAVE BECKFORD their purported end would result in an alarming drop in income and living standards for those affected. So vexed were union members that they burnt copies of the employers’ opening offer during a meeting at Workers House. However, Tribune Business sources yesterday backed statements by Audrey Oswell, Atlantis’s president, that employers are not seeking to eliminate the 15 percent gratuity. They added that the union may have misinterpreted the offer. While the employers left the section relating to the gratuity blank, this newspaper understands this does not imply a zero percent rate. Instead, they are seeking a “more equitable distribution” of the gratuity among the various worker categories that currently benefit from it. Besides waiters and servers, the gratuity paid by customers is also split among back-of-house staff, bus boys and other worker

categories. However, the way it is split - and its distribution - varies between different types of employees and what the hotel union itself agrees to. Tribune Business was told that hotel employers currently have no say in how gratuity revenues are distributed, with the method and split varying from resort to resort and between different types of restaurants. Members of the Bahamas Hotel and Restaurant Employers Association (BHREA), which acts as the bargaining agent for the Atlantis, Cove, Ocean Club, British Colonial Hilton, Melia Nassau Beach, Lyford Cay Club and Towne Hotel properties, want the gratuity split formulas and breakdowns to now be agreed and spelt out in the new industrial agreement. However, Sheila Burrows, the union’s general secretary, told The Tribune yesterday: “If you put zero percent in the proposal with no figure, what that mean? Zero percent.” Asked by Tribune Business what the union’s next step is following last week’s strike vote, she said “we did what we had to do” and to “stay tuned” for further developments this week in the Labour Day run-up. Tribune Business previously reported that resort employers hold the upper hand in any industrial agreement negotiations because the last industrial agreement between the two sides expired back in 2013, and its terms are being treated as if it is still in effect. This resulted from the union missing the October 8, 2012, deadline by which it had to submit its proposal for a new industrial agreement - as it was required to do by the conditions set out in the old deal. With hotel union members enduring VAT’s

introduction and subsequent increase, and cost of living rises, without a wage increase since 2012, pressure on the BHCAWU leadership to deliver a new industrial agreement has steadily increased. However, last week’s strike vote has now given the union some leverage, and a bargaining chip to play in upcoming talks with employers, even if the basis for the anger-driven vote was “wrong and off-base” as described by one source. Mr Beckford yesterday said it was “long overdue” for employers to come to the negotiating table, and added: “Both parties need to come together and negotiate and agree on a proposal that benefits everybody - the union which represents the workers, and the employers who represent the hotels. It’s good for the industry. There’s no question about it; we need a contract negotiated. He added that hotel union executives were “tight-lipped” on the contents of their own proposal, and called for greater transparency so that the 5,000-6,000 hotel staff know what is being negotiated on their behalf. “You have a responsibility to tell members what’s in your proposal,” Mr Beckford argued. “We don’t know what’s in the proposal; we only know what the employers want to take away based on what Darren said in the meeting.” Other alleged proposals that have aroused union ire are delaying the payment of Christmas bonuses until the second week of January and tying them to the hotel’s performance, meaning they are not guaranteed. Nor will the traditional provision of Christmas ham and turkey by resorts for their staff be guaranteed.

$66.57m, a figure that was also lower than the $51.995m collected in the prior fiscal year. Collections on foreignowned undeveloped land fell short by almost 50 percent, coming in at $24.413m as opposed to the projected $42.631m. Real property tax for owner-occupied properties was also lower than projected for 20152016, falling short by $11.249m at $30.768m compared to $42.017m. “The $36.762m outstanding real property tax for 2015-2016 is a notable reduction when compared to the $110.718m reported in 2015,” the auditor general found. “However, the

cumulative outstanding amount of $479.609m is still high. “The Office of the Auditor General noted that three private debt collection agencies, Department of Inland Revenue’s debt management unit, Revenue Enhancement Unit and Department of Inland Revenue’s compliance and enforcement unit are all engaged in collecting the outstanding real property tax. “We recommend that efforts continue to be made to collect the outstanding real property tax, particularly the prior year(s) arrears to reduce the cumulative amount and enhance revenue.”

GB tech hub won’t appear ‘overnight’ FROM PAGE ONE unclear whether the move stemmed from flaws in its own strategy and business model, issues with the technology hub’s platform, or a combination of the two. The Senator, meanwhile, said the government has also been focused on its own digital transformation initiative. “The government recently executed a $30m loan with the IDB to move that process forward. That programme is designed to streamline government services and increase the amount of services the government provides,” he said. “It is also designed to have a system which is interoperable, and which focuses on the government agencies digitally speaking to each other. If we are able to achieve that it will only make the service faster and convenient for people, and make the processes

paperless. It will stop persons from having to provide paper to another government office. It will allow for government agencies to digitally speak to each other.” Mr Thompson added: “The system we have now is focused on the citizen working for the government in having to provide all of the information to the government. We are trying to move towards a system where the government truly works for its citizens. “It’s also about transforming the ICT framework in the government. We want to be unified so that all of the agencies, instead of functioning in silos, there is one unified system so that each government agency understands and knows it can work together with all the other government agencies. We want to work towards having a true national digital strategy.”

To advertise in The Tribune, contact 502-2394 Guest centric Environment seeks Experienced Operations Manager Ideal applicant must: • 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

THE TRIBUNE

Tuesday, June 4, 2019, PAGE 5

Brewery suffers loss on $2.7m cost one-offs FROM PAGE ONE “In addition, the shift in consumer preferences and re-branding of the Kalik Light portfolio resulted in a net increase of $1.1m. These had been anticipated in our plan for 2019. The realisation of planned efficiencies are expected have a positive impact in the months to come.” In mid-January, Commonwealth Brewery announced 73 jobs losses at its retail unit, 700 Island Wines and Spirits, although there were hopes at the time this could be minimised at 43 through finding as many as 30 alternative posts within the group. The downsizing, which is likely to have been a major part of the $1.5m in “restructuring and realignment costs”, tackled what the company said were too many middle management layers amid a tough economy and competitive pressures from cheaper imported beers such as Bud Lite. Ron Hepburn, Commonwealth Brewery’s director of retail, said at the time: “If you look at our financial position, as reported in the third quarter last year, we have been impacted by competition - mostly from imported beer brands like Bud Lite and the like. At the end of the day this is just the result of different drivers that impacted our overall business that caused us to make a decision to streamline our operations.” His statement indicated that the impact of Bahamian Brewery and Beverage Company’s Budweiser distribution contract coup is now being felt market-wide. Tribune Business reported back in 2015 that Commonwealth Brewery’s Grand Bahamabased rival had seized the Bahamian distribution contract for Budweiser, and all brands produced by Anheuser-Busch, from the BISX-listed firm. The move effectively ended a four-decade reign by Commonwealth Brewery as the

Bahamian distributor for the brands produced by the world’s largest brewery. Commonwealth Brewery last year also made a decision to absorb a “significant” cost by choosing to “eat” the 4.5 percentage point value-added tax (VAT) hike across its entire Kalik beer product line. This was done to maintain Kalik’s price competitiveness, and as a goodwill gesture to consumers struggling to adjust to the impact of a 12 percent VAT rate introduced with the 2018-2019 budget. “Commonwealth Brewery reported a net loss of $866,258 for the period, mainly driven by the timing of promotion/expenses and one-off restructuring/ERP implementation costs,” the company said yesterday of the 2019 first quarter figures. “The strategic actions undertaken thus far by Commonwealth Brewery were pre-planned and forecasted to yield growth by moderating cost development versus top-line while continuing to invest in our key brands. Explaining its revenue performance, which stood at $32.282m for the 2019 first quarter compared to $32.317m the year before, the BISX-listed brewer added: “Commonwealth Brewery’s revenue was flat for the first quarter of the year, in comparison to the previous period, despite the loss of four days of sales due to closing in March, to allow for the go live of our new Enterprise Resource Planning (ERP) System. Without this interruption, we estimate that the first quarter top line would have realised moderate growth.” Due to the one-off costs incurred, Commonwealth Brewery’s total expenses for the 2019 first quarter increased by just over $3m to hit $29.803m. Personnel costs increased by over $1.3m to reach $6.813m, while raw materials, consumables and services also jumped by over $1m to $21.707m.

Sebas funds: No liability over ‘conflicts of interest’ FROM PAGE ONE to sign away protective rights they may have as minority investors. Both Titan funds were previously said to have been approved by the Securities Commission, the capital markets regulator, which presumably also vetted and gave its consent to the offering documents. But the Titan Balanced Fund, in particular, is targeted at the “small Bahamian” who is a relatively unsophisticated investor and may not appreciate what he/she is signing up to. The “conflicts of interest” in question likely refer to the common directorships

between the Titan funds and Investar as their sponsor/promoter. Besides Mr Simmons, Hillary Deveaux, the former Securities Commission executive director who is also Investar’s chairman, sits on the Board of both funds. And the Titan Balanced Fund will also acquire a less than five percent equity stake in Mr Bastian’s Island Luck web shop chain, thereby keeping it below the threshold where its investment needs to be approved by the Gaming Board as well. “The fund will invest in private equity shares of Playtech Systems, trading as Island Luck, publicly-traded

equity shares listed on BISX, money market instruments, Bahamas government registered stock/bonds, Bahamian corporate bonds and the bonds of special purpose vehicles with an investment in commercial real estate,” the Titan Balanced Fund’s prospectus says. “Playtech Systems is a related party to Investar. The initial investment in Playtech Systems will not equal or exceed five percent of the issued shares of Playtech Systems. If it is the desire to invest five percent or more, appropriate approvals will be sort from The Gaming Board for the Bahamas. The fund will not invest in any other company

in the gaming industry.” The offering document confirms the Titan Balanced Fund will be unable to invest more than 35 percent of its assets into Island Luck’s parent company or any other single investment, while investments in a single industry will be kept to a maximum 55 percent of assets bar government securities. The Titan Fixed Income Fund, meanwhile, is targeting a yield some 25-50 basis points above the 4.25 percent Bahamian Prime rate via its investments in fixed income securities such as government and corporate bonds plus preference shares.

Carnival will pay $20m over pollution from its cruise ships MIAMI Associated Press CARNIVAL Corp reached a settlement yesterday with federal prosecutors in which the world’s largest cruise line agreed to pay a $20m penalty because its ships continued to pollute the oceans despite a previous criminal conviction aimed at curbing similar conduct. Senior US District Judge Patricia Seitz approved the agreement after Carnival CEO Arnold Donald stood up in open court and admitted the company’s responsibility for probation violations stemming from the previous environmental case. “The company pleads guilty,” Arnold said six times in a packed courtroom that include other senior Carnival executives, including company chairman and Miami Heat owner Micky Arison. “We acknowledge the shortcomings. I am here today to formulate a plan to fix them,” Arnold added “The proof will be in the pudding, won’t it?” the judge replied. “If you all did not have the environment, you

CARNIVAL Corp President Arnold Donald, left, arrives at federal court yesterday in Miami. Carnival Corp is in federal court for a hearing on what to do about allegations that it has continued polluting the oceans from some of its cruise ships despite agreeing years ago to stop. Photo: Lynne Sladky/AP would have nothing to sell.” Carnival admitted violating terms of probation from a 2016 criminal conviction for discharging oily waste from its Princess Cruise Lines ships and covering it up. Carnival paid a $40m fine and was put on five years’ probation in that case, which affected all nine of its cruise brands that boast more than 100 ships. Now Carnival has acknowledged that in the years since its ships have committed environmental crimes such as dumping “gray water” in prohibited places such Alaska’s Glacier Bay National Park and

knowingly allowing plastic to be discharged along with food waste in The Bahamas, which poses a severe threat to marine life. The company also admitted falsifying compliance documents and other administrative violations such as having cleanup teams visit its ships just before scheduled inspections. Seitz at an earlier hearing threatened to bar Carnival from docking at US ports because of the violations and said she might hold executives individually liable for the probation violations. “The concern I have is

that senior management has no skin in the game,” Seitz said, adding that future violations might be met with prison time and criminal fines for individuals. “My goal is to have the defendant change its behaviour.” Under the settlement, Carnival promised there will be additional audits to check for violations, a restructuring of the company’s compliance and training programmes, a better system for reporting environmental violations to state and federal agencies and improved waste management practices. The agreement also would set Sept 13 and Oct 9 deadlines to create an improved compliance plan and make other changes, subject to fines of $1m per day if those deadlines are not met. If a second round of deadlines are not met, the fines could go up to $10m a day. Other proposed changes include a reduction by Carnival in the use of single-use plastic items across its entire fleet and creation of “tiger teams” meant to make improvements in the ships’ food and beverage systems and how waste is handled at sea.

PAGE 6, Tuesday, June 4, 2019

THE TRIBUNE

NOTICE FELINO CORPORATION LTD. N O T I C E IS HEREBY GIVEN as follows:a)

FELINO CORPORATION LTD. is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

The dissolution of the said company commenced on the 28th May, 2019 when the Articles of Dissolution were submitted to and registered by the Registrar General.

The Liquidator of the said company is Octagon Management Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, Nassau, Bahamas.

GERMAN Chancellor Angela Merkel speaks to media prior to a special closed meeting of her Christian Democratic Union at the party’s headquarters in Berlin, Germany on Sunday. Photo: Markus Schreiber/AP

Dated this 3rd day of June, A. D. 2019

LEGAL NOTICE

NOTICE KALOTYCHIA LIMITED N O T I C E IS HEREBY GIVEN as follows:

KALOTYCHIA LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

The dissolution of the said company commenced on the 31st May, 2019 when the Articles of Dissolution were submitted to and registered by the Registrar General.

The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, Nassau, Bahamas.

Dated this 05th day of June, A. D. 2019 _________________________________

Future in doubt for Merkel’s German govt after ally quits BERLIN Associated Press GERMAN Chancellor Angela Merkel says she won’t run for a fifth term, but the departure of a top ally in her often-cantankerous coalition has raised new doubts about whether her government will even survive until the end of her current term in 2021. Here’s a look at the political turmoil in Germany right now:

Bukit Merah Limited Liquidator

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

WHAT THE EUROPEAN PARLIAMENT VOTE WROUGHT

2017 CLE/qui/00520

IN THE MATTER OF the Quieting Titles Act, 1959 AND IN THE MATTER OF the Petition of SHERRY NIXON AND IN THE MATTER OF ALL THAT piece parcel or lot of land being Lot No. 394 containing Six Thousand (6,000) square feet in “Garden Hill Estates No. 2” Subdivision situate approximately One Hundred and Twenty (120) feet North of Beaumonita Drive and One Hundred and Seventy (170) feet East of East Street in the Southern District of the Island of New Providence which said piece parcel or lot of land is bounded on the North by Lot No. 393 in Garden Hill Estates No. 2 Subdivision and running thereon One Hundred (100) feet on the East by land now or formerly the property of Eleuthera Adventurers Limited and running thereon Sixty (60) feet on the South by Lot No. 395 in Garden Hill Estates No. 2 Subdivision and running thereon One Hundred (100) feet and on the West by Beaumonita Avenue and running thereon Sixty (60) feet.

Merkel, Germany’s leader since 2005, has run the country for most of her tenure in a “grand coalition” of her centre-right Union bloc and the centerleft Social Democrats. Those traditionally were Germany’s biggest parties but their support has eroded, particularly that of the Social Democrats. On May 26, the centreleft Social Democrats had a disastrous result in the European Parliament election, dropping to third behind Merkel’s conservative bloc and the environmentalist Greens for their worst post-World War II performance in a nationwide vote. Andrea Nahles announced her resignation on Sunday as the Social Democrats’ leader and head of their parliamentary group, paving the way for what could be prolonged uncertainty about the government’s future. HOW DID WE GET HERE? Merkel’s fourth-term government took office in March 2018, nearly six months after a national election. The Social Democrats initially vowed to go into opposition after a poor

election result, but reluctantly reconsidered. The coalition has since become notorious for infighting. First, a spat within Merkel’s own bloc over migration. Then an argument erupted over the future of the domestic spy chief, who had appeared to downplay far-right violence against migrants. More recently the two sides have tussled over Social Democratic demands for more generous pensions for low earners. Support for both coalition partners has fallen, with the Greens in particular benefiting from general discontent and a perception that the government isn’t acting decisively enough to fight climate change.

Union, Annegret KrampKarrenbauer, has had a bumpy start and polls suggest Merkel remains more popular. There is no realistic chance that the pro-business Free Democrats and Greens could jump in as Merkel’s new coalition partners without a general election. Polls are now far more favorable to the Greens than before the 2017 election, when they emerged as the smallest party in parliament. And the Free Democrats have made clear they don’t want to join a Merkel government.

WHY DOES IT MATTER?

The Social Democrats’ share of the vote has declined from 40.9% in Germany’s 1998 national election to just 15.8% in last month’s European election. Many supporters were alienated by labor reforms and welfare-state cuts introduced by Merkel’s predecessor as chancellor, Gerhard Schroeder, though they were credited with boosting the German economy. In 2005, the party became Merkel’s junior partner in a “grand coalition”. It has been in that awkward position ever since, apart from a four-year break between 2009 and 2013. The party has struggled to sell its achievements in government, often complaining that Merkel — who has moved her own party steadily to the center — has taken credit for them. Germany’s introduction of a national minimum wage and same-sex marriage, for example, were policies that Merkel had long opposed but allowed to happen at the Social Democrats’ insistence.

If the Social Democrats decide that they want to leave the coalition, that would likely lead to an early election, which would end Merkel’s nearly 14-year reign. Merkel’s bloc alone is far from having a parliamentary majority. Merkel, 64, said last year she won’t seek a fifth term as chancellor. Her successor as leader of her Christian Democratic

NOTICE The Petition of SHERRY NIXON currently of the Marsh Harbour District of the Island of Abaco, one of the Islands of the Commonwealth of The Bahamas, and permanently resident of No. 394 Garden Hill Estate in the Southern District of the Island of New Providence one of the Islands of the Commonwealth aforesaid in respect of:ALL THAT piece parcel or lot of land being Lot No. 394 containing Six Thousand (6,000) square feet in “Garden Hill Estates No. 2” Subdivision situate approximately One Hundred and Twenty (120) feet North of Beaumonita Drive and One Hundred and Seventy (170) feet East of East Street in the Southern District of the Island of New Providence which said piece parcel or lot of land is bounded on the North by Lot No. 393 in Garden Hill Estates No. 2 Subdivision and running thereon One Hundred (100) feet on the East by land now or formerly the property of Eleuthera Adventurers Limited and running thereon Sixty (60) feet on the South by Lot No. 395 in Garden Hill Estates No. 2 Subdivision and running thereon One Hundred (100) feet and on the West by Beaumonita Avenue and running thereon Sixty (60) feet. NOTICE is hereby given that any person having a dower or right to Dower or an Adverse Claim or a claim not recognized in the Petition shall on before the expiration of Thirty (30) days after the final publication of these presents file in the Supreme Court and serve on the Petitioner or the undersigned a Statement of his claim in the prescribed form verified by an Affidavit to be filed therewith. Failure of any such person to file and serve an Adverse Claim on or before the expiration of Thirty (30) days after the final publication of these presents will operate as a bar to such claim. Copies of the Petition and filed plan of the said land may be inspected at: 1. The Registry of the Supreme Court, Nassau 2. The Chambers of Mangra & Co., Suite 12 Bayparl Building, Parliament Street. N.P. The Bahamas Dated the 4th day of June, A.D. 2019 Mangra & Co Suite 12 Bayparl Building Parliament Street Nassau, Bahamas Attorneys for the Petitioner

WHY ARE THE SOCIAL DEMOCRATS IN TROUBLE?

WHAT’S NEXT IN GERMAN POLITICS?

LEGAL NOTICE

NOTICE

NOTICE IS HEREBY GIVEN as follows: (a) GLOBAL DYNAMIC BUSINESS RESEARCH LTD. is in dissolution under the provisions of the International Business Companies Act 2000. (b) The Dissolution of said Company commenced on May 30, 2019 when its Articles of Dissolution were submitted and registered by the Registrar General. (c) The Liquidator of the said company is Zakrit Services Ltd. of 2nd Terrace West, Centreville, Nassau, Bahamas. (d) All persons having Claims against the above-named Company are required on or before June 30, 2019 to send their names and addresses and particulars of their debts or claims to the Liquidator of the company or, in default thereof, they may be excluded from the benefit or any distribution and before such debts are proved. June 4, 2019 ZAKRIT SERVICES LTD. LIQUIDATOR OF THE ABOVE-NAMED COMPANY

A trio of senior Social Democrats —Manuela Schwesig, Malu Dreyer and Thorsten Schaefer-Guembel — will serve as interim leaders until a longer-term successor is in place. That is likely to take a few months. They said yesterday the leadership will consider procedures for electing a successor on June 24 and also discuss the party’s expectations for a midterm review this fall of the coalition — long viewed as something that could end Merkel’s coalition. Social Democrats in the eastern state of SaxonyAnhalt yesterday backed ending the coalition with Merkel. Further tests loom that could destabilise the government. On Sept 1, the eastern states of Saxony and Brandenburg hold elections that could bring further setbacks for the governing parties. The far-right Alternative for Germany party is strong in both — as it is in a third state, Thuringia, which votes on Oct 27.

To advertise in The Tribune, contact 502-2394

THE TRIBUNE

Tuesday, June 4, 2019, PAGE 7

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

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 8, Tuesday, June 4, 2019

THE TRIBUNE

US, Mexico officials to begin talks over tariffs, border WASHINGTON Associated Press MEXICO launched a counteroffensive yesterday against the threat of US tariffs, warning not only that it would hurt the economies of both countries but also could cause a quarter-million more Central Americans to migrate north. A high-level delegation from the Mexican government held a news conference at the embassy in Washington, making the case against the threat by President Donald Trump of imposing a 5% tariff on Mexican imports by June 10. It is unclear what more Mexico can do — and what will be enough — to satisfy the president. “As a sign of good faith, Mexico should immediately stop the flow of people and drugs through their country and to our Southern Border. They can do it if they want!” Trump tweeted yesterday from London. Trump’s Republican allies warn that tariffs on Mexican imports will hit US consumers and harm the economy. The president all but taunted negotiators for a quick resolution. “Mexico is sending a big delegation to talk about the Border,” the president tweeted on Sunday. “Problem is, they’ve been ‘talking’ for 25 years. We want action, not talk.” But Mexican Foreign Minister Marcelo Ebrard replied yesterday that both countries working together is “the best way to do it”. Mexico said it will only go so far to avert the duties, and absolutely ruled out a “third safe country” agreement that would require asylum seekers to apply for refuge in Mexico first. “There is a clear limit to what we can negotiate, and the limit is Mexican dignity,”

MEXICAN Foreign Affairs Secretary Marcelo Ebrard, centre, speaks at a news conference at the Mexican Embassy in Washington yesterday, as a Mexican delegation arrives in Washington for talks following trade tariff threats from the Trump Administration. Photo: Andrew Harnik/AP said Mexico’s Ambassador to the United States, Martha Barcena. Barcena said Mexico has taken steps to offer migrants visas in Mexico, and “without Mexico’s efforts, an additional quarter-million migrants could arrive at the US border in 2019”. Barcena said Mexico has accepted 8,835 returned migrants as of May 29, and they are now waiting in the country for an asylum hearing in the US courts. The tariff threat comes just as the administration has been pushing for passage of the United States-Mexico-Canada Agreement, which would update the North American Free Trade Agreement, and top Republicans warned it could derail that effort. US Commerce Secretary Wilbur Ross met yesterday with Mexican Economy Minister Graciela Marquez. Afterward, Ross said the two had discussed the tariffs and the “next steps” for the trade pact. “I reiterated the president’s message that Mexico needs to do more to

help the US address immigration across our shared border,” Ross said in a statement. Delegations led by Secretary of State Mike Pompeo and Foreign Relations Secretary Marcelo Ebrard will also meet in Washington. Marquez told reporters her team is assessing potential reprisals in case the diplomatic efforts do not bear fruit this week. “We will have to make a strategic plan to take into consideration many elements,” she said. Agricultural trade between the United States and Mexico was worth about $130m a day last year, according to Mexican Secretary of Agriculture Victor Villalobos. A 5% US tariff would decrease that trade by $3.8m a day, he said. Trump has been here before, issuing high-stakes threats, only to back off come crunch time. Trump claims Mexico has taken advantage of the United States for decades but that the abuse will end when he slaps tariffs

on Mexican imports. His frustration with the flow of migrants is nothing new, but it’s a subject he often returns to, as he did last week after special counsel Robert Mueller’s rare public statement on the Trump-Russia report. The president said last week that he will impose the tariffs to pressure the government of Andres Manuel Lopez Obrador to block Central American migrants from crossing the border into the US Trump said the import tax will increase by 5% every month through October, topping out at 25%. It swiftly refocused attention on the border issues. Mick Mulvaney, the acting White House chief of staff, said on “Fox News Sunday” that the president is “deadly serious”. Still, Mulvaney acknowledged there are no concrete benchmarks being set to assess whether the US ally is stemming the migrant flow enough to satisfy the administration. “We intentionally left the declaration

MARKET REPORT www.bisxbahamas.com

(242) 323-2330

MONDAY, 3 JUNE 2019

(242) 323-2320

ALL SHARE INDEX: CLOSE: 2,170.15 | CHG: 0.14 | %CHG: 0.01 | YTD: 60.70 | YTD%: 2.88 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 20.91 7.00 5.50 2.60 2.00 3.15 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 2.71 1.85 9.40 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 2.77 1.85 9.51 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 0.11 0.00 0.00 0.00 0.00 0.00

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 27.2 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% 2.45% 3.24% 3.45% 3.43% 3.46% 2.67% 2.59% 4.29%

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

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%

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

35,000 VOLUME 25

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% 1.22% 3.96% 0.74% 3.42% 0.97% 2.67% 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 30-Apr-2019 30-Apr-2019 26-Apr-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 2.23 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 2.23 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

sort of ad hoc,” he said. “So, there’s no specific target, there’s no specific percentage, but things have to get better,” Mulvaney said. “They have to get dramatically better and they have to get better quickly.” GOP Sen John Kennedy of Louisiana, called the tariffs a “mistake” and said it was unlikely Trump would impose them. Republicans on Capitol Hill and GOP allies in the business community have expressed serious unease with the tariffs. Some see this latest threat as a play for leverage and doubt Trump will follow through. Earlier this year, Trump threated to seal the border with Mexico only to change course. Republicans have repeatedly tried to nudge Trump away from trade wars and have specifically questioned the White House’s ability to rely on executive authorities to impose some of them as national security issues. At the same time, Trump’s efforts to revamp immigration laws have drawn little support in the Congress. “I think what the president said, what the White House has made clear, is we need a vast reduction in the numbers crossing,” Kevin McAleenan, acting secretary of the Department of Homeland Security, said on CNN’s “State of the Union.” Mulvaney, who also

appeared on NBC’s “Meet the Press”, said Mexico could take various steps to decrease the record numbers of migrants at the border. He suggested the Mexican government could seal its southern border with Guatemala, crack down on domestic terrorist organizations and make Mexico a safe place for migrants seeking to apply for asylum. Economists and business groups are sounding alarms over the tariffs, warning that they will impair trade and increase the costs of many Mexican goods that Americans have come to rely on. But Mulvaney played down those fears, saying he doubts business will pass on the costs to shoppers. “American consumers will not pay for the burden of these tariffs,” he said. He also suggested the tariffs were an immigration issue, separate from the trade deal the United States is trying to negotiate with Mexico and Canada. Several top GOP lawmakers have expressed concerns that Trump’s tariff threat could upend that deal. The chairman of the Finance Committee, Republican Sen Chuck Grassley of Iowa, said last week the tariffs would “seriously jeopardise” passage of that agreement, which needs approval in Congress.

NOTICE

NOTICE is hereby given that ALEX JONAS ALPHONSE of Mildred Avenue 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 28th 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 DELIA CALIXTE of Pinedale Street off Wulf Road, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 4th day of June, 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 DUROFARO CANJUSTE of Palmetto Point, P.O.Box EL-29952 Eleuthera, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 28th day of May, 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 RONISE CÉNÉCHARLES of Carmichael Road, East Avenue, 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 28th day of May, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.