06062016 business

MONDAY, JUNE 6, 2016

business@tribunemedia.net

New tax enforcement move ‘unconscionable’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

DOCTORS HOSPITAL

Doctors in $573k project write-off

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net DOCTORS Hospital has written-off $573,000 in architectural drawing fees after deciding not to proceed with a “major renovation” investment at its main Collins Avenue facility.

The BISX-listed healthcare provider’s 2016 annual report reveals that it has “permanently put this project on hold”, given that it was “not feasible at this time”.

The newly-released annual report provides no details on the ‘renovation investment’, but it indicates the project has been on the so-called drawing board for at least six years.

“Architectural drawing fees in the amount of $573,000 that were completed in 2010, and held in ‘work in progress’ pending the major renovation, were written-off,” Doctors Hos-

Puts renovation ‘permanently on hold’ $1.463m swing returns company to profit Waiting on new treatment approvals pital wrote under the heading ‘loss on disposal of fixed asset’.

“It was decided to permanently put this project on hold as the investment to expand is not feasible at this time.”

Tribune Business’s files suggest this likely refers to plans that potentially involved adding a further two stories to Doctors Hospital’s main Collins Avenue facility.

See PG B5

Dingman’s strike out bid ‘not necessarily a winner’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net JAMIE Dingman’s bid to strike out a $1.113 million damages claim over his failed Nassau restaurant empire is moving forward despite “not necessarily being a winner”.

See PG B9

BUSINESSES are hitting out at “unconscionable” Government enforcement efforts that require them to submit Tax Compliance Certificates (TCC) to obtain payment for goods and services ALREADY supplied.

Rick Lowe, Nassau Motor Company’s (NMC) director/operations manager, told Tribune Business that the enhanced enforcement

Firms must prove compliant to get Gov’t payment AFTER goods and services already provided Certificate also required for Customs refund

efforts threatened to further tighten the stranglehold bureaucracy and red tape are imposing on Bahamian businesses.

The controversy stems from the Christie administration’s efforts to implement legal amendments introduced last year.

These require companies to prove they are compliant with all their taxes prior to receiving payments on public sector contracts worth more than $10,000.

Mr Lowe, though, said his firm was now being asked to

provide a TCC to obtain a small ‘four-figure sum’ that the National Insurance Board (NIB) had owed since January this year.

He warned that the demands threatened to “cripple” cash flow for other businesses, while imposing a further compliance burden on legitimate tax-paying firms - many of whom will have to obtain TCCs every month.

The NMC executive, implying that the Government’s move was ‘overkill’, See PG B10

Summit scales peak in 72% profit growth

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A BAHAMIAN insurer believes it will be “challenging” to repeat a 2015 performance which saw its net income increase by 72.3 per cent year-over-year.

Timothy Ingraham, Summit Insurance Company’s president, said the more than-$1 million bottom line improvement had exceeded the underwriter’s own expectations by around 10 per cent.

He told Tribune Business that the year-over-year increase had largely stemmed from an improved claims experience, following a

Beat 2015 expectations by 10% ‘Challenged’ to repeat in 2016 Around $1m Joaquin payout 2014 in which Summit faced hefty insurance payouts over incidents such as the fire that destroyed Bahamas Food Packaging’s (Bapak) premises.

“I think that we exceeded our expectations slightly,” Mr Ingraham said. “It

turned out to be a very good year for us.

“Given that the economy is still in a depressed state, the results were a pleasant surprise for us.”

He told Tribune Business that Summit’s $2.708 million net income had beaten the property and casualty underwriter’s own expectations by “roughly about 10 per cent or so. It wasn’t huge”.

“A lot of that would have been down to claims,” Mr Ingraham added. “We had fewer claims in 2015 than we had in 2014.

“In 2014 there were several large losses, and the Bapak fire would have been See PG B10

$4.00 $4.06 $4.07

$4.04

Home

insurance

Court allows dismissal motion to move But only on ‘Bahamas better forum’ argument

QC fearing GBPA income ‘starvation’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE proposed ‘onestop shop’ for investors will “starve the Port Authority of municipal income” vital to Freeport’s maintenance, a well-known QC has warned.

Fred Smith QC, the Callenders & Co attorney and partner, told Tribune Business that the Government’s seeming ‘takeover’ of business licensing in Freeport would likely see associated fee income diverted to the Public Treasury.

This, in turn, would deprive the Grand Bahama Port Authority (GBPA) of a valuable revenue source See PG B8

Gov’t eyes licensing, approvals takeover ‘Complete abrogation’ of Hawksbill deal

WE’LL HELP YOU

KEEP YOUR

CASTLE SAFE FRED SMITH QC

NASSAU | FREEPORT | ABACO | ELEUTHERA | EXUMA

PAGE 2, Monday, June 6, 2016

THE TRIBUNE

Union chief supports Gov’t on contract worker ‘dignity’

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE Bahamas Public Service Union’s (BPSU) president has praised the Government for “bringing some level of dignity” to ‘unregularised’ civil service employees, and called on it to abide by established protocols when hiring temporary/contractual workers in future.

Prime Minister Perry Christie, during his 2016/2017 Budget com-

munication, pledged that during the upcoming fiscal year the Government would look to bring the number of temporary and contractual workers in the public service to an “irreducible minimum”.

“Many of these workers joined the public service without the requisite qualifications and, through their own hard work and commitment, are making a valuable contribution to the public service and the country; they are deserving of being integrated into the public

service.”

John Pinder told Tribune Business: “Finally, in this year’s Budget communication, the Prime Minister indicated that he has finally approved some funds for persons to be regularised.

That brings some level of dignity to those persons.

“From our perspective, that puts them in the position where they can go to the banks, get loans and qualify for mortgages, and so that is a good thing. They can now borrow funds, and are in a position to get loans. That

can be a boost to the economy from a banking perspective.”

The issue of contractual/ temporary workers in the public service was recently highlighted in an Auditor General’s report, which found that the Government was not living up to its obligations to the 33 per cent of Department of Social Services staff who were initially hired via the Unemployment Assistance Programme.

Terrance Bastian and his team, in their two-year

Congratulations

Samuel Joshua Jennings A Strong, Ambitious, Quiet-spirited & Courageous Leader

M

other’s Day 2016 saw 11,235 students graduate from The Ohio State University. Of the 36 students graduating from the School of Engineering with a Bachelor of Science in Materials Science and Engineering there was one Bahamian – Samuel Joshua Jennings. What an awesome and remarkable accomplishment for a young man who perseveres and believes that no matter what challenges life presented, he could do all things through Christ who strengthens him. There is a season and set time for everything. Tough times don’t last, but Tough people do!

During Samuel’s studies at the Ohio State University, he was given an opportunity with an Internship at The University Engineering Center for Electron Microscopy and Analysis. This experience enabled him to gain knowledge and understanding of the properties of materials, plastic, glass etc. Samuel’s enthusiasm to discover how various objects are made and function, led him to participate in the Ohio State design team working on the hyperloop - a conceptual high-speed transportation system incorporating reduced-pressure tubes in which pressurized capsules ride on an air cushion driven by linear induction motors and air compressors.

The recipient of an International Student Scholarship, the Ohio State University proved to be an excellent choice of school. His advisors were very supportive in keeping him focused on his academic goals, while they also recognized Samuel’s level of determination and commitment.

Outside of his studies, Samuel started the first ever Caribbean International Group (Jamaica, Cuba, etc.) at the Ohio State University.

He painted Art Work for church exhibitions and assisted other students with piano lessons.

Samuel describes the Ohio State University as a great place, saying “keeping busy is good, because you should never stop learning”.

Samuel’s offers these words of to future college/universities students “keep in contact with your advisor, maximize your time wisely. Don’t seek out friends, because you can’t force friendship. Friends who just want to have a good time are not good!

True friends are those who help you to stay focused on achieving your goals. Study as frequently and as much as you can, but discover your best way to study.”

Samuel is now going on to pursue a Master’s Degree program at Swansea University, in the UK, in Aerospace Engineering.

We know that the same God that started great works in Samuel is well able to complete and perfect him during his studies at Swansea University. Samuel, we celebrate your achievement with you and thank God for what he is doing in your life.. May God continue to bless you and keep you in perfect peace as you move on to success in the next level of your life.

Congratulations with love and prayers from your proud parents IAN and JANET, your strong and loving brother DANIEL, grandfather Herbert Miller and other relatives, Especially Godparents Faye Higgs, Trevor Thompson, Ian Wilkinson and Bishop Gloria Redd. Special thanks to all IB teachers at Lyford Cay International School , especially Mrs. Judy Reiach and Mrs. Janice Barclay. To God be the Glory.

audit of the Government agency’s New Providence divisions, said 172 of its 515 active employees were still waiting to be ‘regularised’ as full-time public service employees.

Warning that it would be “egregious” for the Government not to alleviate the “continued unease” of these persons over their status, the Auditor-General said the present situation was also impeding their incomeearning capabilities.

Mr Pinder warned the Government against repeating this practice going forward. “The Government is moving to regularise those persons, but it appears that they are about to repeat it again with the latest jobs programme,” he said.

“What happens is persons want to work for government and, while being paid by the Treasury, form this opinion that they do, in fact, work for government and this drags on.

“If the government changes and they don’t want to disenfranchise those per-

sons, they get stuck in the system. Some of them don’t have the skill set to meet the minimum requirements for persons to be employed in the public service,” the BPSU chief explained.

“Others may have that and are looking for a much higher salary than the Government can afford. It brings a level of stress to people and the public purse. Persons become demoralised and they are not performing in the public service, but they are taking home a pay cheque any how.”

Mr Pinder continued: “We wish for the Government to discontinue the practice of doing that and follow the established protocols in the public service for persons to be hired properly and, where necessary, for part-time or relief workers you can do that.

“If you have a six-month project, when the six months expire you either issue a new contract or let them go, but that doesn’t happen.”

Insurers give backing to new NHI structure

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas Insurance Association’s (BIA) chairman believes the new National Health Insurance (NHI) governance structure provides further evidence that the Government is taking a more inclusive approach.

Emmanuel Komolafe said the BIA had accepted an invitation from the Government’s NHI Secretariat to sit on the newly-created body that will oversee the healthcare reform’s implementation.

The UHC (universal healthcare) Stakeholder Advisory Council was unveiled last week by the Government, as it seemingly continues to alter its

EMMANUEL KOMOLAFE NHI approach and consult more widely with all industry stakekholders.

“The details released on the new enhanced governance structure for UHC seem to suggest that there is a desire to have meaningful stakeholder engagement See PG B4

THE TRIBUNE

Monday, June 6, 2016, PAGE 3

Bahamians ‘delusional’ over reliable electricity

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzi@tribunemedia.net

BAHAMIANS are “deluding themselves” if they believe they can have a reliable energy supply without paying for it, a former BEC director warning: “At some stage we have to spend the money.”

Superwash president, Dionsio D’Aguilar, told Tribune Business that a ‘base rate’ hike by Bahamas Pow-

Must pay for improvements er & Light (BPL) was necessary despite being unpopular with consumers. His comments came amid reports that Pam Hill, BPL’s chief executive, had sought a ‘base rate’ hike from the Government that had been rejected.

“BEC is basically bank-

rupt. It has lost a whole lot of money and a great portion of its infrastructure needs to be modernised,” Mr D’Aguilar said. “You can’t do that without cash.

“The Bahamian people are simply deluding themselves, and the Government is selling them a dream, that they can have reliable power without paying for it.

“If you want reliable power and BEC has the problems it has, I don’t know how you are going to

Bahamas moves up in tourism quality THE Bahamas moved ahead of Jamaica to claim fourth spot in the 2016 Caribbean Tourism Quality Index Resonance Report, it was reported yesterday.

However, ir remained behind the faster-growing Dominican Republic, Puerto Rico and Cuba, which claimed the top three spots in the absolute rankings. Jamaica dropped to fifth.

This nation also ranked among the top 10 Caribbean countries in culture, entertainment, culinary and adventure.

“While the Baha Mar bankruptcy means there won’t be a mega-resort any time soon, [the Bahamas] still attracts the second highest number of visitors to the Caribbean, and ranks first overall for food and drink experiences, such as food and brewery tours, cooking classes and bustling food markets,” the report said.

It was released during the Caribbean Tourism Organisation’s (CTO) Caribbean Week in New York last week, where the Bahamas had a strong presence.

The study measures tourism’s supply side performance and competitiveness in 28 destinations across the Caribbean. The absolute rankings are based on the total number of ‘very good’ or ‘excellent’ experiences in each country according to thousands of visitor reviews on TripAdvisor and other social media.

In culinary rankings, the

Bahamas is fourth. And in the sightseeing category, it is ranked fifth.

The Bahamas is ranked sixth in entertainment; fourth in sports and adventure tourism, third in top hotel and lodges, and fourth in top culture rankings.

The report notes that development in the hotel sector still continues despite Baha Mar’s troubles.

“The Bahamas is rated third for hotel and lodging offerings despite the failure of the huge and holy anticipated Baha Mar resort,” the report said.

“And it hasn’t stopped other developers from opening new destinations. The four-star Warwick Paradise Island Bahamas, opening in October2016, brings adult only all-inclusive lodging to luxurious new heights.”

Since the information for the study was garnered, there has been some movement in the Baha Mar negotiations.

As it relates to sports and adventure, the study points out that beaches, boat tours and watersports are among the favourites in ranking activity for the Bahamas.

“Almost half of the top 25 outdoor activities were adventure-related, and the more unique – like deep sea shipwreck diving in [the Bahamas] or riding a futuristic underwater motor scooter – the more a destination can appeal to experience seekers and adrenalin junkies,” the report said.

Richard Sealy, the CTO’s chairman, said the future for Caribbean travel is bright, but admonished tourism officials to continue to work to improve their product offerings.

“The year 2015 was a record year in terms of travellers to the region,” he said during a press conference on Thursday. “Twenty eight million people journeyed to the Caribbean.

“Two thousand and sixteen is also trending to see an increase over 2015. In fact, for the first quarter we are 7 per cent up, so it means if we continue on this course - we were just under 30 million in 2015 - we will be just over 30 million in 2016, which would be a record.

“But we recognise that having got the visitors into the region, we have to make sure if we are going to have maximum impact on our economies that there are things for them to do,” Mr Sealy added.

The Bahamas participated in several events during Caribbean week including the Student Colloquium, Media Marketplace, and marketing workshops.

The Ministry of Tourism also hosted two successful signature events during the week, Date Night and Party In Da Backyard, which were attended by hundreds of New Yorkers, Bahamians living in the tri-state area, travel agents and media.

Now Accepting Scholarship Applications Scholarships to St Andrew’s School are awarded on a competitive basis to those of a high academic standard. This year, we are also offering two (2) full scholarships for the prestigious pre-university International Baccalaureate Dipolma Programme (IBDP).

To apply, students must be: 1. A Bahamian citizen 2. Have attended a local Government or Private School 3. Be at least sixteen (16) years of age 4. Have GPA of 3.70 or above 5. Must also have successfully completed five (5) BGCSE examinations with an “A” or “B” grade to be eligible for consideration. For students currently sitting BGCSE examinations predicted grades may also be considered.

To apply, students must submit: 1. Completed application form, obtained from school website under Admissions/Admissions Applications menu option 2. Copies of the last three (3) report cards or transcript 3. Copy of Birth Certificate 4. One-page essay about why you would benefit from an IBDP education at St Andrew’s School 5. Two (2) reference letters from teachers

Deadline For applications Monday, 10th June, 2016 No applications will be accepted after this date.

To submit applications, or for further information, contract: Karen Carey Director of Admissions, Marketing & Development St Andrew’s School P.O. Box EE-17340 Nassau, Bahamas

For more information about us, please visit our website: www.st-andrews.com

improve it unless you get money. You can either rise the rates or borrow more money, or the Government can give them money which they will get form taxation.”

Mr D’Aguilar continued: “At the end of the day, the Bahamian people will have to pay for improved and reliable power infrastructure, and there is no way to get around it.

“The Bahamian people through, successive governments, have mismanaged BEC to the point where it is bankrupt and its infrastructure is in a poor state. BEC needs a ton of money to recapitalise.

“Either we pay it through increased rates, or the Government borrows more money, which they really

can’t with the debt-to-GDP ratio where it is now. Of course, an increase is very unpopular, but at some stage we have to spend the money. Yes, it’s a good first step to get someone running BEC, but once again the Government is meddling in its ability to run properly.”

Carolinas-based PowerSecure signed a fiveyear management services agreement with the Government to run BPL, the Bahamas Electricity Corporation’s (BEC) newlycreated operating subsidiary, on February 9 this year.

Less than three weeks later, PowerSecure announced that the Atlanta-based utility giant, Southern Company, was acquiring it for $431

million.

Tribune Business revealed last year that investment banks and finance houses were being invited to bid on raising a $75 million facility, likely a bond issue, to provide BPL and its new manager with shortterm working capital.

This has yet to happen, however, and suggests that plans for BPL’s initial financing may have changed, forcing it to go the ‘base rate’ increase route. That $75 million facility was also supposed to be replaced by the proposed $650 million Rate Reduction Bond (RRB), which is designed to refinance the debt, environmental, pension, severance and other legacy liabilities left by BEC.

FOR SALE Single family residence comprising of four (4) bedroom three (3) bathroom located Lot # 13 Situate on Breezy Hill off Village Rd Property size of 28,848 square feet Contact Info: Tenders are invited to submit offers to: The Sr. Manager, Special Accounts specialaccounts@scotiabank.com Telephone Contacts: 356-1400 / 356-1424 / 356-1608

PAGE 4, Monday, June 6, 2016

Insurers give backing to new NHI structure From pg B2 and collaboration,” Mr Komolafe said.

“It is noteworthy to state that the BIA has been invited to serve on the UHC Stakeholder Advisory Council (Council), and we have accepted the invitation to contribute to the success of this progressive social initiative.

“We are particularly pleased that the Council has a broader focus and mandate on the achievement of universal health coverage (UHC) in the Bahamas, of which NHI is but one component.”

Mr Komolafe further praised the Government’s commitment to delivering

quality, affordable healthcare via sustainable reforms, as outlined by Prime Minister Perry Christie in his 2016-2017 Budget address.

“The BIA and all members of the United Healthcare Reform Alliance (UHRA) are firm believers and proponents of universal access to quality healthcare,” he added.

“We concur with the approach that places emphasis on the improvement of the public healthcare system infrastructure, and development of human capital within the healthcare sector. This is in line with the recommendations of key stakeholders, including the

BIA.” Mr Komolafe promised that the BIA would “work diligently” with the Government and other healthcare industry bodies to improve the proposed universal healthcare strategy, and develop a model that will helop make the Bahamas the healthiest Caribbean nation by 2030.

“The range and depth of expertise of the members of the Council will be pivotal to the future success of UHC in the Bahamas,” he added.

“We expect that representatives of the diverse groups will contribute unique skills, experiences, talents and perspective to the deliberation of the Council. We look forward to obtaining more details on the Government’s plans in the days ahead.”

THE TRIBUNE

Ministry partners on first-ever Yacht Show THE Ministry of Tourism and ‘Boat 4 A Day’ have partnered to stage the firstever Bahamas Yacht and Travel Show, which will be held from June 17-19 at Bay Street Marina.

The non-profit, threeday show will promote all sea travel and guest-related products, with Florida-based travel representatives and yacht brokers present.

There will be numerous vendors, including chartered yachts and other charter options, hotels, marinas, resort wear, excursions and anything related to tourism and travel to the Bahamas.

“We at ‘Boat 4 A Day’ will be showcasing our collection of available charter yachts, along with several other local companies that offer charter services in our waters,” said Shannon Bruce.

“Additionally, we will have other complimentary and like-minded entities participating as vendors/exhibitors, thus creating a well-rounded

JEROME SAWYER, head of J. Sawyer & Associates, alongside Captain John Bruce. selection of some of the Bahamas’ finest.”

The concept came from wanting to create a yacht and travel show in Nassau, so that small Bahamian businesses would have the opportunity to market their products and increase their exposure.

The organizers also wanted to generate tourist interest in what the Bahamas has to offer, especially the boutique style of travel in this nation.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, TERRANCE PIERRE COLE, of Sequoia Avenue, Pinewood Gardens, Nassau, Bahamas intend to change her name to TERRANCE DOMINIC HALL JR. 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.

NOTICE

NOTICE is hereby given that DEBORAH ANN MARIE PALMER of #45 Bahama Palm Way, Freeport, Grand Bahama, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 30th day of MAY, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

During the show, the Bahamas National Sailing School will be the recipient of proceeds from an auction of different items, including a yacht charter and a vacation to one of the Bahamian islands.

Prospective vendors are asked registering online at https://boat4aday.com/Bahamas-Yacht-and-Travel-Show.

“We are extremely pleased to be teaming up with ‘Boat4-A-Day’ to host the first Charter and Travel Show in the Bahamas,” the Ministry of Tourism said.

“As most people are aware, the charter market is very lucrative one worldwide.

It is estimated that in excess of $14.1 billion is generated from the industry annually.

“The Bahamas provides more opportunities than any of our nearby Caribbean brothers and sisters and, as such, the interest to our country is substantial.”

The event’s sponsors include Boat 4 A Day; the Ministry of Tourism; Bay Street Marina; Island Wines and Spirits; Bahamas Local; Association of Bahamas Marinas (formerly the Marina Operators Association of the Bahamas); National Marine Supplier; Aqua Soleil; A la Plage Boutique; Blue Moon Resort Wear and Paradise Blue; Surf Shop; Bahamas Out Island Promotion Board; Green Parrot Restaurant.

COMMONWEALTH OF THE BAHAMAS IN THE SUPREME COURT

2014 CLE/GEN/01314

Common Law and Equity Division IN THE MATTER of an Indenture of Mortgage made the 27th day of November, A.D., 1986 between Esther Mae Denise Brown and Finance Corporation of Bahamas Limited AND IN THE MATTER of The Mortgages Act, Chapter 156 of the Revised Laws BETWEEN FINANCE CORPORATION OF BAHAMAS LIMITED AND ESTHER MAE DENISE BROWN

Plaintiff

Defendantt

To: Esther Mae Denise Brown TAKE NOTICE that an action has been commenced against you in the Supreme Court of the Commonwealth of The Bahamas by Finance Corporation of Bahamas Limited, Main Branch, 323 Bay Street, Nassau, New Providence, Bahamas, in which the Plaintiff’s claim is set out in the Originating Summons filed in this action on the 2nd day of September, A.D., 2014 seeking an Order to direct you to deliver up possession of the Mortgaged Property situate at Lot Number Four Thousand and Eighty-Eight (4088) in the Pinewood Gardens Subdivision, New Providence, Bahamas to Finance Corporation of Bahamas Limited within Twenty-eight (28) days of the Order and Judgment for the sum outstanding under the Indenture of Mortgage dated the 27th day of November, A.D., 1996 and that it has been ordered that the publication of a notice of the entry of the Originating Summons filed on the 2nd day of September, A.D., 2014, Notice of Appointment to Hear Originating Summons filed on the 2nd day of July, A.D., 2015, Affidavit in support of application filed on the 2nd day of July, A.D., 2015, Ex Parte Summons filed on the 29th day of January, A.D., 2016, Affidavit in support of Ex Parte Summons filed on the 10th day of March, A.D., 2016 and Order filed on the 25th day of April, A.D., 2016 in The Tribune newspaper shall be deemed to be good and sufficient service of the said document upon you.

A copy of the said Originating Summons, Notice of Appointment to Hear Originating Summons, Affidavit in support of application, Ex Parte Summons, Affidavit in support of Ex Parte Summons and Order may be obtained from the Supreme Court Registry, BAF Financial Centre, Marlborough Street, Nassau, Bahamas, Nassau, Bahamas, or from the Attorneys for the Plaintiff below mentioned.

Dated the 26th day of May, A.D., 2016

HIGGS & JOHNSON Ocean Centre Montagu Foreshore East Bay Street Nassau, New Providence, Bahamas Attorneys for the Plaintiff

THE TRIBUNE

Monday, June 6, 2016, PAGE 5

Doctors in $573k project write-off From pg B1 Barry Rassin, the company’s then-president, told this newspaper in a January 2011 interview that the expansion/renovation would not proceed until the Bahamian and world economy was “back on track”.

He explained that the BISX-listed healthcare provider’s strategy for its proposed expansion was to complete the architectural and engineering plans, get the financing in place, obtain all government approvals, and have the construction contract out to bid, then wait for the economy to recover.

Doctors Hospital’s 2016 annual report gave no explanation for why the company has chosen to place such a “major renovation” on permanent hold, but some observers are likely to interpret it as a further sign of ‘no confidence’ in the Bahamas’ economic prospects.

There was better news, though, for Doctors Hospital shareholders, as the company’s performance for the 12 months to end-January 2016 produced a $1.463 million ‘swing’ into profitability.

The BISX-listed firm generated consolidated net income of $702,790, or $0.07 per share, compared to a loss of $759,573 or $0.08 per share for the year-before period.

The improvement was driven by an improved showing from its main Collins Avenue facility, held under Doctors Hospital (Bahamas), where net income more than doubled year-over-year.

Profits grew by 165.7 per cent, rising from $698,428 to $1.856 million, which was more than enough to offset the latest loss from the company’s Blake Road-based Bahamas Medical Centre.

That facility, featuring specialist procedures targeted at the medical tourism/international patient market, cut its losses by 21 per cent year-over-year down from $1.458 million to $1.153 million.

While some shareholders may view the Bahamas Medical Centre as a drain on their returns, this has largely been due to the long wait/delays for Government approvals for the various surgeries it wishes to offer.

Joe Krukowski, Doctors Hospital’s chairman, told

investors that the company’s joint venture with the UKbased Taymount Clinic had enabled it in 2015 to add a treatment programme for gastrointestinal and neurological conditions.

“Doctors Hospital Health Systems has a number of other exciting programmes set to commence in the coming year, having gone through the necessary series of approvals,” he wrote in the annual report.

“With our International Patient Programme housed at Bahamas Medical Centre, we continue to explore opportunities to add programmes that will not only serve the local patient community, but attract patients from overseas.”

However, the annual report’s ‘management analysis’ revealed the extent to which approval delays have impacted the Bahamas Medical Centre’s patient offerings and financial performance.

Referring to the Taymount Clinic joint venture, it said: “Approval for the FMT (Fecal Microbiota Transplant) programme was finally received in November, two months prior to

year-end.

“Therefore, expected revenues did not materialise.

Provisional approval was officially received in April 2016 for specific stem cell therapy, and is expected to impact revenue numbers next year.

“There are two more stem cell programmes awaiting the June 2016 meeting of the Government committee, and a new cancer programme awaiting approval.”

Thus better days potentially lie ahead for Doctors Hospital and its Blake Road facility, which saw its total revenues for the 12 months to end-January 2016 grow by 2.9 per cent to $1.434 million.

The Bahamas Medical Centre’s expenses were down year-over-year by $266,390 or 8.6 per cent, falling from $3.085 million to $2.819 million, due to “a concentrated effort to reduce operating costs until planned revenues can be realised”.

Mr Krukowski, meanwhile, said Doctors Hospital Health Systems (DHHS) “foresee some interesting opportunities” ahead stemming from the Government’s proposed National Health Insurance (NHI) scheme.

While providing no specifics on these “opportuni-

ties”, Mr Krukowski added that Value-Added Tax (VAT) had forced Doctors Hospital to “redefine” its billing process, including the ‘unbundling’ of its fees from those charged by physicians.

“The introduction of VAT in 2015 required Doctors Hospital Health Systems to redefine our billing process,” he wrote.

“In addition to the new challenges most businesses faced in ensuring VAT compliance, VAT dictated that we could no longer continue to bundle our billing to include our fees as well as those of the physicians who provide services at our facilities.

“Our finance team and our physician community were able to accomplish this major change in operations with no disruption to our patients.”

Doctors Hospital is planning $4 million worth of capital expenditure in its upcoming 2017 financial year, which will be allocated towards equipment replacement and facilities improvement.

Looking back at 2016, revenues at the company’s core Collins Avenue facilities increased by 4.9 per cent or $2.238 million, providing a key boost that drove the return to profitability.

“Patient days increased by 6.9 per cent from the previous year. Increases in the Intensive and Intermediary Care Units accounted for 91 per cent of the change,” Doctors Hospital’s annual report said.

“Total admissions to the facility were 4,063 in fiscal 2016 compared to 4,061 in fiscal 2015. The flat admission numbers and increased patient days are indicative of the higher utilisation of the Intensive Care Units.

“The average daily census increased to 31.2 patients per days from 29.2 in the previous year.”

Doctors Hospital saw its total expenses increase by 2.4 per cent or $1.103 million in financial year 2016.

That figure was exceeded by the $1.502 million rise in salaries and benefits, some 73 per cent of which was for the hiring of radiologists. Medical supplies costs

jumped by 6.5 per cent or $439,848 last year, due to increased volumes.

Doctors Hospital attributed an increase in selfpaying patients, requiring critical care, to the rise in bad debt expense during the 2016 financial year.

“Bad debt expense, as a percentage of patient service revenues, increased to 3.4 per cent for the year ended January 31, 2016, compared to 2.9 per cent the previous year,” the annual report said. “This represented an increase of $ 317,454, or 23.3 per cent.

“The number of days revenue in accounts receivable at year-end (AR Days) for fiscal 2016 stand at 43 compared with fiscal 2015 at 44 days, and net receivables as a percentage of net patient revenue decreased slightly to 11.77 per cent from 12.13 per cent.”

Doctors Hospital employed some $2.9 million worth of net cash for investment purposes in financial year 2016, compared to $2.5 million the year before.

PAGE 8, Monday, June 6, 2016

QC fearing GBPA income ‘starvation’ From pg B1

that it has traditionally used to finance upgrades to Freeport’s infrastructure.

The Memorandum of Understanding (MoU) agreed recently between the Christie administration and the GBPA promised that the two would collaborate on the creation of a so-called

the needs of all investors in Freeport.

Well-placed Tribune Business sources, speaking on condition of anonymity, confirmed that from the Government’s perspective this ‘one-stop shop’ means Nassau taking over all business licensing and investor

“The Ministry of Grand Bahama is going to administer all licensing on a onestop shop basis,” one source told Tribune Business. “All work permits and approvals will come through the Ministry. The Port Authority, and the ‘Pink Building’, will become a rubber stamp.”

This newspaper understands that the Christie administration is moving rapidly to translate the MoU’s many vague promises into binding commitments via statute laws, which are now being drafted.

Traditionally, while the GBPA has had the power to license Freeport-based businesses as the city’s quasi-governmental authority, a ‘nod’ from Nassau has often been required - especially in the case of foreign direct investment (FDI) or controversial projects.

It is unclear whether the ‘one-stop shop’ plans will result in the complete loss of licensing income to the GBPA, but it is likely that at least some of this revenue stream will be diverted to

THE TRIBUNE Nassau.

That possibility, though, did not sit well with Mr Smith, who described it as “a complete abrogation of the Hawksbill Creek Agreement”.

One of the most outspoken defenders of Freeport’s founding agreement, he told Tribune Business: “Every new application for exemption from real property taxes, and any new development, the Government are going to extract or prevent the GBPA from getting a licensing fee.

“The income stream that the GBPA derives here is going to be diverted to the Public Treasury. The Government is going to bleed the Port Authority of income to finance the cost of maintenance and upkeep of infrastructure in Freeport.”

Expressing concern that political considerations would infect the investment approval process in Freeport, Mr Smith added: “Now, every time a nonBahamian investor acquires five acres or more and wants

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to get these tax exemptions, or any new developer wants to invest, they will have to agree to pay the Government some type of concession fee.

“The Public Treasury is going to get that, and not the Port Authority..... The Port Authority is going to be starved of municipal income for the administration, upkeep and management of the Port area.”

Some observers may question whether the GBPA has always applied business licence fee income to Freeport’s maintenance in the past, and the Hawksbill Creek Agreement Review Committee’s report acknowledged the uncertainties over who was responsible for what in Freeport’s governance.

“Multiple stakeholders perceive that the current process by which businesses interact with each either central government or the GBPA is cumbersome and inefficient,” the report said.

“For approval of business licences, the committee heard that even when the GBPA quickly grants initial licenses, central government can be slow to act on license applications for non-Bahamians, which are sent to central government for approval.”

Despite GBPA licensees praising the timely approvals process, the Committee’s report said its business licensing criteria “was unclear and applied inconsistently”, creating perceptions of unfairness.

“Potential investors and existing businesses also expressed that they were not clear as to who could answer any questions on license fees, tax concessions, work permit processes and other considerations of importance when deciding to make a new investment,” the report added, setting out the rationale for the ‘one-stop shop’.

The Committee’s report also noted the calls for greater transparency over the GBPA’s sources, and uses, of funds, and for “clearer roles and responsibilities between GBPA, local government and central government”.

THE TRIBUNE

Monday, June 6, 2016, PAGE 9

Dingman’s strike out bid ‘not necessarily a winner’ From pg B1 The son of world-famous entrepreneur and Lyford Cay resident, Michael, has been given permission by a New York judge to argue that the Bahamas is the most appropriate jurisdiction in which to hear the case against him.

Judge Naomi Buchwald, in a June 1 Order, is permitting Mr Dingman’s ‘motion to dismiss’ to proceed to a hearing, but with the caveat that it is restricted to the ‘most appropriate jurisdiction’ argument only.

“We have reviewed the parties’ letters of May 6 and May 19,” Judge Buchwald said in a May 23 legal filing.

“Having done so, it seems to this court that the ‘forum non conveniens’ argument is the strongest one (though not necessarily a ‘winner’) advanced by the defendants.”

She directed that Mr Dingman’s ‘motion to dismiss’ the action, brought by several Bahamian corporate and individual creditors of his collapsed restaurant ventures, be restricted to that topic.

However, this does not “prejudice” the other dismissal arguments advanced previously by Mr Dingman and his US attorneys. The two sides must file legal papers, outlining their respective cases, over a series of dates in June and August 2016.

Mr Dingman’s US attorney, Jeffrey Mitchell, of the Browne, George, Ross law firm, argued in a May 6 letter to the New York southern district judge that the Bahamas was the most appropriate jurisdiction in which to bring the claim.

“Almost all of the parties, witnesses and evidence are in the Bahamas, the case concerns businesses in the Bahamas, and virtually every event complained of occurred in the Bahamas,” he alleged.

“Accordingly, the three factors to be considered in assessing a request to dismiss all weigh in favour of

dismissal. Moreover, for those plaintiffs who are US citizens, their reliance on citizenship to avoid dismissal is diminished in view of their choice to invest in a foreign country, and their complaints about fraudulent acts occurring primarily in that country.

“Instead, these claims should be adjudicated in a Bahamian court, where defendants all are amenable to suit, and which is the appropriate avenue for plaintiffs to seek redress for their claims.”

Mr Mitchell also warned that Mr Dingman might seek to dismiss the lawsuit because it “lacked jurisdiction” over both himself and the five restaurant companies, all of whom are domiciled in the Bahamas.

The five companies are the failed Nassau restaurant ventures: The Traveller’s Beach Restaurant, 25 North Ltd, Island Smoke House Ltd, Out West Hospitality and Bahamex Ltd. The Bahamian companies involved as plaintiffs against Mr Dingman are FYP and Tile King, the People First (Bahamas) employment agency, IDNet, and Young Digerati (YNG).

The individual Bahamians suing Mr Dingman include Jason Rolle, his former general manager, who claims to be owed $46,113 in unpaid salary and benefits, plus Tyrone Adderley, a contractor due more than $2,000 for work on the Beach Club Cafe at Sandyport.

In their May 19 response to Mr Dingman’s attorney, the plaintiffs argued that moving their claim to the Bahamian Supreme Court will be “unduly burdensome”.

Attorneys from US law firm Sher Tremonte alleged that Mr Dingman had provided no proof to back his assertion that the Bahamas was a proper alternative jurisdiction, and argued that this nation was an “inadequate” forum for the case.

They urged the New

York court to “defer” to the plaintiffs’ choice of venue, given that some of them resided in the city.

“Defendants have not offered any proof that the Bahamas would be an adequate alternative forum,” Sher Tremonte alleged.

“In fact, decisions in this circuit have recognised that the Bahamas may not be an adequate alternative forum for cases involving ‘multiple defendants and the possibility of extensive discovery’ because the American contingent fee system is ‘not available in the Bahamas’.”

They continued: “ Finally, adjudicating this dispute in the Bahamas would be unduly burdensome to plaintiffs, most of whom do not reside in the Bahamas.

“By contrast, litigating plaintiffs’ claims in this court would not be burdensome at all to Dingman, who maintains an apartment in New York city and travels to New York often.”

The original lawsuit, filed early in the New Year, claimed that Mr Dingman has effectively abandoned his creditors and investors and “fled the Bahamas altogether”, refusing to pay what he owes.

Mr Dingman’s efforts to build a Nassau-based restaurant and hospitality business included taking over the iconic Traveller’s Restaurant in western New Providence via a lease arrangement.

That venture failed and the property shut again, until members of the Bain family, its owners, reopened it again last summer.

He also leased two units in the Klonaris brothers’ Elizabeth on Bay plaza on Bay Street for two other restaurant formats, both of which have also closed.

Tribune Business also revealed how Mr Dingman leased the Beach Club Cafe from Sandyport’s developers, viewing this as his “signature property”. The venture never opened, and the lease was pulled.

Excellent Administrative And Interpersonal Skills, Ability To Prioritize And Meet Deadlines, Analytical With Keen Attention To Detail If You Possess These Attributes, We Invite You To Apply For The Position Of:

Director of Card Services Job Summary: This role will head the centralised operations for card processing that would include both the issuing (Debit and Credit card) and acquiring sides of the business. It will comply with payment systems regulations that govern the business and adopt best practices to ensure effective, efficient and successful execution, in a controlled, secure environment. It will strictly adhere to all governance and risk mitigation policies. The role will have to cope with a product and services base to match those of other international and local banks present in the region. The role will also be responsible for managing the production of regulatory reporting and payment system reporting (business management information to help in making key decisions that impact the financial & profit making ability of the business.)

Duties and Responsibilities:

CAREER OPPORTUNITY

BRAND MANAGER - WINES Key Responsibilities •

• •

•

•

•

•

Define the key growth opportunity for wine & champagne portfolio in Trade, Retail and Premium Accounts.

Manage the portfolio of wines SKUs. Identify the portfolio gaps and recommend the new products to be introduced.

Develop the programs and initiatives building the CBL expertise & image as No. 1 Wine Distributor.

Recommend the activation calendar & initiatives. including search & reapply on Partners platforms.

Close cooperation with Retail stores and Trade Teams. on promotional activities including identification of promotional SKUs. Activate participation in private Sales events for Champagne portfolio.

Qualifications: •

•

Bachelor’s or Master’s Degree in Marketing or Business Management.

Minimum 3 years of working experience.

CAREER OPPORTUNITY

MARKETING REPRESENTATIVE Key Responsibilities • •

•

•

• •

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Assist in the design of the yearly brand plans.

Assist in the elaboration of the budget and sales forecast.

Ensure the execution of the brand plan/brand projects, including creative, promotional calendar and programs, media plan and sponsorship activities, POS (Point of Sale) and specific retail programs.

Manage interface with Sales in development, planning, implementation and feedback on promotions and merchandising.

Coordinate events and projects activations.

Evaluate and measure key brand initiatives, including program execution, advertising and sponsorship effectiveness.

Be intimately familiar with consumer insights into evolving characteristics and needs of current prospective consumers, including periodic review of purchase, usage and attitudes and apply these consumer insights and market knowledge in brand strategies.

Qualifications: • •

Bachelor’s Degree in Marketing or Business.

Minimum 2 years working experience.

• Manage the Fidelity regional Card Operations for the Bahamas, and Cayman. This department will be responsible for the service and delivery of high risk and high volume of transactions due to the nature of cards issuing & acquiring business and responsible for timely and accurate settlement of issuing and acquiring transaction activity.

• Pre-empt and proactively respond to the oncoming business changes and prepare the operations accordingly so that business as usual continuity is maintained.

CAREER OPPORTUNITY

• Leads planning, analyses, and implementation of business and technical requirements and technology-enabled solutions for the cards issuing and acquiring business.

MARKETING MANAGER

• Leads meetings with technology solution vendors and Fidelity IT resources in the analysis, design, and delivery of technology-driven projects to achieve the short and medium-term business solutions for the Cards business.

• Responsible for identifying and executing process improvements that increase productivity and improve customer service. Also responsible for ongoing automation initiatives, reducing high maintenance / manual intensive work.

• Audit Performance - Satisfactory internal, external and regulatory audit rating.

• Responsible for managing internal control reviews and management of outstanding audit deficiencies.

Requirements/Qualifications: • • • • • • • • • • • •

Minimum of 15 years experience in a credit card environment.

Bachelor’s degree in quantitative discipline required; Master’s degree a plus.

Previous experience managing a large operations environment, of at least 30 - 40 people within the financial services industry.

Experience of active participation in cards systems implementations or system enhancement projects.

Thorough knowledge of the payment systems compliance and risk policies.

An extensive knowledge of Service Delivery within the Retail, Corporate and International Banking markets.

Banking knowledge in the area of general routine and risk management.

Thorough knowledge of Internal and External Audit requirements.

Sound understanding of Operational Risk, Compliance and Information Technology issues.

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Management and coaching skills.

Thinks and plans logically, ensuring issues are thoroughly evaluated.

PLEASE SUBMIT BEFORE June 10th, 2016 to: Only persons shortlisted will be contacted.

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A competitive compensation package (including base salary and commissions) will be commensurate with relevant experience and qualification.

Key Responsibilities •

• •

• •

• •

•

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Assess and establish objectives, lead innovation in promotions and merchandising development.

Monitor and analyze market trends.

Identify target markets and develop strategies to communicate with them.

Design yearly brand plans.

Elaborate the budget and sales forecast and manage the brand budget.

Lead activation teams.

Undertake periodic market/trade visits to evaluate products and packaging quality, merchandising and promotional effectiveness.

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Bachelor’s degree in Marketing & Business.

Minimum 3 years of working experience.

Submit resumes via email to career@burnshouse.com

PAGE 10, Monday, June 6, 2016

New tax enforcement move ‘unconscionable’ From pg B1 added that it would also do nothing to improve the Bahamas’ ‘ease of doing business’ ranking “They want a Tax Compliance Certificate in order to pay us for money they’ve owed us since January. It’s unconscionable,” Mr Lowe told Tribune Business of NIB. “They’re not giving me any warning. They’re saying we’re not going to pay the money we legitimately owe you. It’s as bad as the people not paying the taxes.

“Things are slow, and the Government is saying they will not pay you for goods and services given in good faith. How can you fix your face to say you will not pay for goods and services rendered in January?”

He was responding after the National Insurance Board (NIB), via phone calls and faxes, warned all its suppliers within the last few weeks that TCCs must be provided before they receive payment.

A letter sent out by Sonia Gill, its financial controller, confirmed that they must provide NIB with both a TCC and invoice if they are to receive due payment.

The May 11, 2016, letter, which has been obtained

by Tribune Business, says the move is supported by statute law in the form of changes made to the Financial Administration and Audit Act last year.

“To this end, the National Insurance Board is now requesting that all vendors submit a copy of their valid Tax Compliance Certificate along with their invoices for payment to satisfy this re-

quirement,” Ms Gill wrote.

“Please note that payments will not be processed until a copy of your valid TCC is submitted.”

The NIB letter adds that a TCC is valid for six months on a contract worth less than $10,000, but just one month for those valued higher than this sum.

As a result, all companies with Government and NIB contracts valued at over $10,000 will now be required to obtain a TCC every month.

The move, as outlined by the NIB letter, has its legal basis in changes made to Part IIB, Section 19I of the Financial Administration and Audit Act last year.

These mandate that a business/entrepreneur must provide a TCC both to win an initial government tender and obtain payment on that contract, provided the value is greater than $10,000.

The taxes they must be in full compliance with are Business Licences and real property taxes, Immigration (work permit) fees, all Customs-related taxes, Value-Added Tax (VAT), NIB contributions and motor vehicle licensing fees.

However, based on the NIB letter, it appears this is being applied to government contracts of all values.

Mr Lowe, though, questioned why the Government was further increasing the compliance burden on an already weighed-down private sector.

He queried why the administration’s various revenue-collecting agencies were seemingly unable to confirm themselves wheth-

Summit scales peak in 72% profit growth From pg B1 one which happened right at the end of the year. That’s the main one that comes to mind, though there were a few others.”

Bapak’s premises in the Soldier Road Industrial Park were destroyed in the Christmas Eve 2014 fire, and last year also saw some significant losses for the Bahamian property and casualty market as a whole.

Mr Ingraham disclosed that Summit “paid out just

over $1 million” in damages claims as a result of Hurricane Joaquin, which devastated the southern Bahamas in late September and early October.

Despite this, Summit saw its net claims incurred decrease by 26.3 per cent year-over-year, dropping from $3.854 million to $5.228 million.

With its catastrophe and excess of loss reinsurance costs also down by almost $1.5 million, or 30 per cent, to $3.443 million, Summit

er a business was fully tax compliant, rather than sending companies scurrying to the Department of Inland Revenue for TCCs. And Mr Lowe also asked why different government agencies were acting as surrogate tax collectors for each other, rather than each one taking delinquent payers to court.

“Why is it that the Government reserves the exclusive right to take what they want?” he asked. “If you’re not paying your real property tax, it’s up to them to take you to court.

“It’s up to that government agency to come after you and make you pay tax. Have you heard of any business that has closed because they’ve not paid their Business Licence fee and real property tax?

“Has the Government enforced the law in that regard?” Mr Lowe continued.

“If not, they need to change the law and make us all equal.

“They shouldn’t have the right to say that because you provide good and services to another government agency, they’re going to take them. They’ll put you out of business. Where’s it going to end.”

The Government’s likely response will be that the private sector should have known this was coming, given that the changes to the Financial Administration and Audit Act were made more than a year ago.

With the Public Treasury desperate for every cent of revenue it can earn, given the Bahamas’ strained fiscal position, the TCC-related changes will be seen by the administration as further tightening the enforcement circle and eliminating compliance gaps and loopholes.

Mr Lowe said NIB’s re-

sponse, when challenged over the TCC policy, was that it was being demanded of all government agencies by the Ministry of Finance.

He also revealed that one business, which he declined to name, was informed by NIB that any outstanding sums owed to it would first be used to settle tax arrears if they existed.

Tribune Business was unable to obtain comment from NIB before press time.

However, Mr Lowe said businesses would “waste a hell of a lot of time traipsing around” to meet the TCC demand, given that certificates were not necessarily made available when needed.

He added that the Government’s new policy threatened to “cripple people’s cash flows”, and would be especially problematic for companies relying on payment to service bank overdrafts.

“What will this do to other businesses that do thousands of dollars of business with the Government?” Mr Lowe queried. “Suppose it’s $5,000 for a small business.

“What they’re doing is transferring the burden of what they [Government] should be doing to the private sector, and forcing us to do all the running around.

“It’s depressing. It really is. It slows down the pace of doing business again. It further complicates your efforts and takes you away from running your business and doing the things you need to do.”

Mr Lowe added that similar enforcement policies appeared to have spread to Bahamas Customs, which was also demanding that a TCC be presented before a

business was refunded for over-payment.

“Now think about that for a moment,” he said.

“You’ve got to be compliant with Customs in order to put an entry.

“You’ve got to provide them with a Business Licence, NIB good standing to put an entry in in your name.

“But you overpay them, and they say they can’t pay you back; you need to bring a new Certificate of Compliance. What the hell? The sole intent seems to be to make it more difficult to run your business.”

Edison Sumner, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chief executive, told Tribune Business that he understood Mr Lowe’s concerns, and the matter would be addressed with the Government.

He acknowledged the need to balance the Government’s desire to collect all due revenue with the ‘ease of doing business’, and not over-burdening legitimate, compliant businesses with both taxes and accompanying paperwork.

Describing the situation as “a quid pro quo” and “two-way street”, where both sides needed to respect the other’s objectives, Mr Sumner urged the private sector to allow the BCCEC time to deliver an improved situation.

“This is one of the policy measures the Government has decided to implement when it comes to revenue enforcement and collection,” he told Tribune Business, acknowledging that the Ministry of Finance had itself informed the Chamber of its intentions.

“Bearing in mind that the Government just an-

nounced it was providing exemptions and reductions on duty on certain items in the Budget, there are areas where revenue is lacking and they are not collecting.”

Mr Sumner told the private sector: “Give the Chamber an opportunity to address the situation.

We are aware, following through on this, and expect to have discussions within the next week or so with the relevant agencies in government, including NIB.” He added that the Government had in recent months shown an increased willingness to listen to the Chamber and its recommendations, holding out hope that a solution palatable to both sides could be achieved.

Still, Mr Sumner said the private sector needed to comply with all applicable laws and taxes as its side of the bargain, with the Government in return ensuring that all tax refunds and payments due to businesses were made in a timely manner.

“We will do what we can to ensure the private sector is not disadvantaged by any moves in government policy or changes in bureaucracy, and get what is due to them,” he told Tribune Business.

“We want to ensure compliance by private sector participants, but also ensure the Government is held to account for what is due to the private sector.

“We will continue to address this issue until we get the results we are looking for. I understand Rick’s concerns, and am going to ask the private sector to bear with us while we address this, but at the end of the day I believe we’re going to get results we can all live with.”

enjoyed a near-$3 million decline in direct expenses.

That represented a 26.7 per cent fall, from $11.084 million in 2014 to $8.125 million last year, ultimately producing a 28.3 per cent increase in Summit’s underwriting profits.

They rose from $3.324 million to $4.263 million year-over-year, as the dramatic decline in direct costs more than offset the reduction in Summit’s top-line and net premium income.

Mr Ingraham said Summit, which gained 95 per cent of its business through Insurance Management, its affiliate broker/agent, was not immune to the pres-

sures impacting the rest of the Bahamian property and casualty market.

Apart from the struggling economy, which was inducing Bahamians to either reduce sums insured or drop coverage altogether, the Summit president acknowledged the international forces that were also influencing this market.

Excess global reinsurance capacity has also contributed to the downward pressure on Bahamian property and casualty premium rates, given the sector’s heavy reliance on its underwriting support.

Mr Ingraham said the reduction in prices had helped

to offset the initial impact of 7.5 per cent Value-Added Tax’s (VAT) addition to insurance premiums, which occurred on July 1 last year.

However, the rate softness has forced insurers such as Summit to take a hard look at their insurance portfolios, in a bid to ensure the premiums charged reflect the risk being underwritten.

“I think it will be difficult to match last year for a number of reasons,” Mr Ingraham told Tribune Business of Summit’s likely 2016 performance. “Our income is falling off, as is the rest of the market.

“It won’t be impossible to match last year’s numbers, but it will be a challenge.

In this part of the world, it depends on how the wind blows, and how significantly the wind blows.

“If there’s no significant wind storms, I think you’ll still see us struggle a little bit because of falling prices.

I think 2015 really saw the pricing start to decline.”

Summit, in common with its Bahamian competitors, saw its gross written premiums fall 4.6 per cent yearover-year in 2015.

With its top-line dropping by more than $1.5 million to $32.694 million, and premiums ceded to reinsurers increasing, Summit’s net written premiums fell by almost $2 million in 2015.

They dropped by 14.6 per cent year-over-year, declining from $13.532 million to $11.559 million.

Pointing out that Bahamian carriers typically renew their reinsurance treaties in January, Mr Ingraham said further unanticipated falls in local premium rates inevitably created “a negative gap”.

“We are very heavily linked to the international reinsurance market, and the local companies rely

on them to provide us with their capital,” he added.

“We have very little choice with their prices. For most companies, it’s going to be upwards of 60 per cent of premium income taken in that is going to be paid out to reinsurers.”

Mr Ingraham confirmed that the Bahamian property and casualty market’s 2016 performance will depend greatly “on where rates go and premium income”, the level of claims and losses suffered.

He acknowledged that 2015’s rate reductions had helped “cushion the blow” of VAT for consumers, with premiums ending up at the same level as the prior year despite the new tax’s impact.

“I still think it’s a negative impact from an insurance point of view,” the Summit chief said of VAT. “If you reduce your premiums to soften the blow, your income will be less.

“We are seeing premium income falling, which we think is indicative of people choosing not to insure.

Some of that is because of other pressures; they can’t cut out groceries, their light bill and other things.”

Mr Ingraham conceded that Bahamian property and casualty premiums could also harden if there was a reduction in global reinsurance capacity, either as a result of a major catastrophe payout or investors flooding back to equity markets.

He added that Summit also had “our eyes open” for potential growth opportunities, but indicated nothing had arrived yet.

“If something comes along that we think will benefit the company, our Board will take a look at it and see if we want to get involved,” Mr Ingraham told Tribune Business.

“I think the market here is competitive and saturated, but when you look around the region, you have more of the same; saturated markets with lots of competition and declining rates.

“In that environment, you have to be careful where you venture and what you are doing.”

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NOTICE

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NOTICE is hereby given that in accordance with the relevant provisions of the International Business Companies Act, 2000, Akrinton Invest Ltd. has been dissolved and struck off the Register according to the Certificate of Dissolution issued by the Registrar General on the 13th day of May A.D., 2016.

NOTICE is hereby given that in accordance with the relevant provisions of the International Business Companies Act, 2000, Amygill Invest Ltd. has been dissolved and struck off the Register according to the Certificate of Dissolution issued by the Registrar General on the 13th day of May A.D., 2016.

Dated the 1st day of June A.D., 2016.

Dated the 1st day of June A.D., 2016.

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THE TRIBUNE

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NOTICE

NOTICE is hereby given that KERLANGE PIERRE EXANTUS of Maliboo Reef, Block 6, No. 7, Freeport, Grand Bahama, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 30th day of MAY, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

THE TRIBUNE

Monday, June 6, 2016, PAGE 11

Obama opposes privatisation of VA health care COLORADO SPRINGS, Colo. (AP) — President Barack Obama is opposing suggestions the government privatize the Department of Veterans Affairs to improve health care veterans receive.

In an interview with the Colorado Springs Gazette (http://tinyurl.com/hsu4k7p ), the president said his administration has made progress modernizing the VA and providing veterans with more timely health care following criticism over wait times. Privatizing the agency would delay that progress, he said.

The administration came under fire when it was disclosed that secret wait lists were uncovered at a VA health care system in Arizona amid reports that several veterans had died waiting for health care. Government investigations found significant system failures.

"The notion of dismantling the VA system would be a mistake," Obama told The Gazette. "If you look at, for example, VA health care, there have been challenges getting people into the system. Once they are

in, they are extremely satisfied and the quality of care is very high."

Obama said during his last term in office, he will continue to work on issues plaguing the Veterans Administration.

"It's a big ocean liner, and on any given day, given how far-flung the agency is, we're still seeing problems crop up that we have to correct. I think the main message is that we've still got a lot of work to do. It's an allhands-on-deck process."

Obama appointed a new VA secretary in 2014 after Eric Shinseki resigned.

Robert McDonald, former CEO of Procter & Gamble, took his place.

"I think Secretary McDonald has done a terrific job," the president said.

"Since there's only eight months left in my administration, he's got all the way until then to run through the tape."

U.S. Rep. Doug Lamborn, R-Colorado Springs, a member of the Veterans Affairs Committee, agreed with Obama that total privatization would be a mistake, but he said veterans

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, PAMELA BOWE, of Elizabeth Estates, Nassau, Bahamas intend to change her name to PAMELA JOnEs. 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.

NOTICE

NOTICE is hereby given that AMISTRAL EXANTUS of Maliboo Reef, Block 6, No. 7, Freeport, Grand Bahama, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 30th day of MAY, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

need more options, including private care.

To cope with the prob-

lems, Obama signed the Veterans Access to Care Act that requires the VA to

contract with private providers when a clinic isn't within 40 miles of the veter-

an seeking care or the wait time for care is more than 30 days.