business@tribunemedia.net
THURSDAY, JUNE 7, 2018
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Nobody wins: tax ‘grab’ to kill 2,000 gaming jobs
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
* Study: 75% of web shops will close * Revenue hike to miss target by 35% * Industry warns of 30% black market switch
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HE web shop industry yesterday warned that 2,000 jobs will be lost, and 75 percent of its locations will close, if the government follows through with aggressive triple-digit tax hikes. The Bahamas Gaming Operators Association, the sector body, intensified its fight against the Minnis administration’s new “sliding scale” tax structure by producing a study showing that the main casualties of the so-called “wipe out” will be ordinary Bahamians - its employees and patrons. The research, by ten-year gaming industry veteran and accountant, Gavin Hamilton, warned that the tax “grab” will generate much
SEBAS BASTIAN K P TURNQUEST CRAIG FLOWERS less than the $35m antici- to an “underground black pated revenue increase while market” which already producing unintended conse- accounts for 15 percent of quences counter to the intent domestic gaming business. behind the sector’s 2015 Mr Hamilton’s report, “legalisation”. “Review of the Gaming He suggested that the increases, and their impact House Operator (AmendRegulations on the seven licensed web ment) shop chains, would drive 2018”, said the revised tax 30 percent of the indus- structure would place The try’s existing customer base Bahamas’ gaming industry as
“among the highest taxed” in the world. It added that the inevitable industry response would be a mass downsizing of staff and physical premises, with the impact spreading far beyond the immediate industry to include landlords, the government’s revenues and other businesses. In particular, the study suggested the industry’s marketing spend would fall by 30 percent. “We estimate that in order to restore profitability to the existing retail estates, there will be job losses of 2,000 jobs; store closures of up to 192 venues; a reduction of
SEE PAGE 4
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Contractors seek VAT ‘waiver’, six month transition By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMIAN contractors yesterday pledged to seek a “waiver” or six-month transition to 12 percent VAT to prevent those locked into existing contracts from being “wiped out”. Leonard Sands, pictured, the Bahamian Contractors Association’s (BCA) president, told Tribune Business that fears of having to now “eat” or absorb the 60 percent VAT hike were a major topic at the organisation’s monthly luncheon. With construction industry margins relatively thin, Mr Sands said the 4.5 percentage point VAT increase could result in many contractors being pushed into a loss on existing projects where they - and their clients - have already budgeted for a 7.5 percent rate.
* KEY TO PREVENT EXISTING CONTRACT ‘WIPE OUT’ * WARN GOVT ISSUE ‘EXTREMELY EXPLOSIVE’ * WANT SAME TREATMENT AS HOTEL INDUSTRY Material, supplier and construction services prices are set to increase on July 1 when the new rate takes effect, and Mr Sands said the government was “playing with something extremely explosive” for the sector. He added that clients were unlikely to obtain additional funding to cover the VAT-induced cost increases from risk-averse commercial
SEE PAGE 6
12% VAT only escape $75m for Over-The-Hill sewerage infrastructure * Water Corp chair: critical for health, life quality from ‘double whammy’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
The deputy prime minister yesterday said a 12 percent VAT was the only way to avoid “a double whammy” for the Bahamian people in closing a $400m budget “gap”. KP Turnquest, kickingoff the budget debate in the
* DPM JUSTIFIES 60% RATE HIKE * LOWER RATE WILL STILL MEAN BORROWING * CHALLENGES PRIVATE SECTOR ON ALTERNATIVES SEE PAGE 6
Hotel relief on VAT transition extension By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
* GOVT ADDRESSES INDUSTRY ‘CONCERNS’ * DNA SAYS ‘IMF/RATING AGENCY BUDGET’ * ARREARS PAY-OFF ‘TIMED FOR ELECTION’
The Bahamas’ largest industry yesterday breathed a sigh of relief after the government agreed to an extended VAT transition beyond July 1 for pre-booked business. Suzanne Pattusch, the
SEE PAGE 7
ACKLINS LAND
AUCTION
Last opportunity to own prime land near new Master plan Touristic Town Center to be developed in North Acklins, (2) Acres on main highway. FINAL DAY for bidding is this Thursday, June 7th, 2018
FOR FURTHER INFORMATION CONTACT: John Christie @ H.G. Christie Real Estate
BID ONLINE at
www.BahamasLandAuctions.com
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
* Project costs to be spread over multiple years A PROJECT to * Just 14% of residents use Corp’s system connect two-thirds of overthe-hill residential dwellings to a centralised sewerage system will cost $74.659m, the Water & Sewerage Corporation’s chair revealed on yesterday. Adrian Gibson, pictured, told Tribune Business that the proposed infrastructure
project was critical to improving sanitary health and the quality of life in Nassau’s inner-city, and pledged: “We’re going to get it done.” Emphasising that the current price
tag was only a preliminary estimate, Mr Gibson said the project - which has not been factored into the 2018-2019 budget - was a core component of the prime minister’s
drive to revive over-thehill communities and their economy. He added that the works, once approved, would be spread over several years to reduce the fiscal strain on
SEE PAGE 5
PAGE 2, Thursday, June 7, 2018
THE TRIBUNE
FORWARD-LOOKING DESIGN THAT NEVER GOES BACK
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HE only time we should ever look back in life is to see how far we have come. This is definitely something to ponder considering the many challenges, failures and disappointments that sometimes seem to follow us each day. Whether we believe in this mantra or not, it is certainly a “daily guide” to this website developer and the story he has to share. Listello Walkins, affectionately called “Stello”, is the proprietor of NAF (Nahid Advertising Firm). He has offered to share his life’s passion with us, and why he has no intention of ever looking back. Q: Tell us about your website design career. How did you advance to where you are today? A: Well, I always had a passion for graphic design since junior school, where I began with simple graphic design software. When I was 15 years-old, I would stay up all night practicing and watching video tutorials online to better my skills. By the age of 18, I began to display my work between friends and family. It was not until I reached the age of 19 that I began to
The Art of Graphix BY DEIDRE M BASTIAN
venture into corporate marketing. Thereafter, in 2011 I opened a company called NAF (Nahid Advertising Firm). It was a little challenging as I was still young, and companies did not take myself nor my team serious, but I kept pushing because it was my passion. Thereafter, I began securing projects from major companies in The Bahamas, and received projects, proposals and bids from multi-million dollar corporations. By 2013, NAF became a well-known, trusted brand
LISTELLO WALKINS for marketing. Q: What is the job of a web designer? A: Well, web designers have many processes, such as creating a theme, coding, creating content, SEO and web hosting. Q: What do you enjoy most about being a web designer? A: I love the investigative phase of my client’s business, which reveals their target market, products, services, likes and dislikes. Thereafter, I can then recreate a masterpiece that displays every detail of their business. Q: What do you do to keep your ideas fresh? A: Innovative and creative ideas come a dime a dozen, but I usually spend
SEE PAGE 4
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THE TRIBUNE
Thursday, June 7, 2018, PAGE 3
SPONGERS AGREE DEAL FOR PROCESSING CENTRE THE BAHAMAS Commercial Spongers Association (BCSA) has signed two contracts to lease and renovate a building as part of efforts to revive the industry. The contracts were signed on May 31, 2018, for a building that will become a sponge processing plant in Mangrove Cay, Andros. Lynward Saunders, president of BCSA-Mangrove Cay, signed the lease contract on behalf of the Association. The contract for repairs to the building was executed by the Bahamas Agricultural and Industrial Corporation (BAIC) on the Association’s behalf. “I know the community feels really good about today’s signing,” Mr Saunders said. The project to revitalise the sponging industry is sponsored by the Inter-American Development Bank (IDB) and
A CONTRACT was signed by BAIC on behalf of The Bahamas Commercial Spongers Association to renovate a building in Mangrove Cay and transform it into a sponge processing centre. Pictured are: Howard Russell, building owner; Calvin Sweeting Jr, BCSA-Mangrove Cay assistant treasurer; Claudine Green, project co-ordinator; Debbie Strachan, BAIC senior deputy general manager; Roston Moxey, local contractor; Lynward Saunders, BCSA-Mangrove Cay president; Maliancha Major, BCSA-Mangrove Cay assistant secretary; and Lundy Moxey, BAIC Mangrove Cay Staff/BCSA-Mangrove Cay public relations officer. the government. It is being managed by BAIC with support from the IICA (Inter-American Institute for Cooperation on Agriculture), the Bahamas National Trust, the Department of
Marine Resources and BCSA Board members. The $1.1m project aims to increase income for Andros spongers by providing them with a larger share of the industry’s revenue. A major
component is the formation of the Bahamas Commercial Spongers Association to centralise the processing and help link local spongers directly with international markets.
BAIC’s senior deputy general manager, Debbie Strachan, said: “As sponging is the bedrock of the Mangrove Cay community, I believe this is going to cause an even greater economic impact for those who sponge in the community. “We are excited, and I am wishing the project and those in Mangrove Cay even greater success as they move forward with sponging here in The Bahamas.” IDB documents show the project is intended to empower spongers who “do not have access to highervalue markets because they are not organised, and do not have the skills to process and market the sponges, and thus earn a low income”. Many spongers harvest the sponge and sell it at a low price, not realising the full economic value of their work. Mr Saunders said the processing centre will allow
spongers to receive a higher price by adding value to the sponge in a variety of ways. “We are going to clip it and package it, and do a lot of other marketing right here in Mangrove Cay to add value to the sponge to get a higher price for the local spongers,” he said. “When you actually create something like this on the island it creates an economic empowerment. Sponging is very valuable to Mangrove Cay, and establishing a processing plant here will cause the sponge value to increase, and we can earn more money and be able to create an industry here.” Claudine Green, project co-ordinator, added: “In a matter of a few weeks we hope to transform this space into a processing area. I am excited, and can’t wait to come back to open this plant to help the people of Andros and The Bahamas.”
Nassau to host key aviation conference THE Caribbean region’s largest aviation conference will take flight in Nassau this June, bringing together major industry players and investors for three days of discussions. The third annual Caribbean Aviation Meet-up is scheduled for June 12-14, with the key objective finding ways to increase airlift into the region. This year’s event will include 31 sessions and presentations involving 40 presenters. They include Dionisio D’Aguilar, minister of tourism and aviation, and Joy Jibrilu, directorgeneral of tourism. Other industry professionals will also join speakers from the US, Caribbean, Canada and Europe. The programme will include topics such as regional airlines, route
development, airport devel“The purpose of the meetopment, airlift’s impact on up is to gather audiences tourism and the economy, of differing backgrounds to investment considerations, inspire each other. If two trends in regional travel and differing parties have access tourism, product innovation, to the same information, it service and infrastructure, creates a better understandas well as tourism product ing and better chance for development. co-operation, new ventures “The meet-up is not a and new opportunities. typical conference just to sit Now, they can network down and listen. It encour- and explore co-operation ages interaction between in areas that they never speaker and audience, and thought of before.” within the audience with The 2018 Caribbean Aviathe speaker as moderator. tion Meet-up is hosted by The meet-up has streams of the Ministry of Tourism and parallel breakout sessions, Aviation. so that participants can “We are pleased to create their own programme welcome hundreds of parand choose from a variety ticipants to this year’s of sessions that may be of conference, and look forinterest to them. Which ward to showing them the makes the event more effi- best in Bahamian hospicient,” said Commander tality. We are also looking Bud Slabbeart, chairman forward to the many benand co-ordinator of the Car- efits of such a forum. We ibbean Aviation Meet-up. know that airlift is vital
to tourism, and tourism is vital to all economies in the Caribbean region,” said Mr D’Aguilar. “The Bahamas is no exception. This conference will not only allow us to discuss and act upon essential airlift issues that affect our archipelago; we will also be able to acquire valuable feedback and information from the international experts who will attend the conference.” Conference participants from 28 countries and territories are expected to attend.
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PAGE 4, Thursday, June 7, 2018
THE TRIBUNE
Nobody wins: tax ‘grab’ to kill 2,000 gaming jobs
FROM PAGE ONE marketing spend by around 30 percent in line with the decline in market size,” the report said. “The net impact of this is that the overall tax take will increase by only $27m, equivalent to a 26 percent flat tax today, but at the cost of significant loss of employment and a backward step towards a large unregulated market, the very thing the original 2014 regulations were introduced to avoid. “We strongly urge that the government reconsiders the current proposals before it does long-term and irreversible damage to a vibrant, regulated market that provides significant employment in the region.” In percentage terms, the study suggests that 71.4 percent of the web shop industry’s total workforce, and almost three-quarters of its current 257 locations, will be lost as a result of the Minnis administration’s determination to fill a $400m “gap” in its budget revenues. It adds that the government’s tax take is likely to be “35 percent lower than anticipated”. The government, though, has given every indication that it views the web shop industry as a tempting tax
target, with the new “sliding scale” structure designed to double its annual tax take from a sector that also includes the foreign-owned casinos. They have not been subjected to such a tax structure, but KP Turnquest, deputy prime minister, has made clear the government’s position that web shops must contribute more to the Treasury given the perceived anti-social effects of gaming - especially the sucking of money out of Family Island communities, and the redistribution of wealth into the hands of a few in Nassau. Sebas Bastian, Island Luck’s principal, declined to comment yesterday on whether the industry will meet with the government after its attorney, Alfred Sears QC, last week issued a seven-day ultimatum for it to negotiate with the Association or face legal action. That deadline expires tomorrow, and the Hamilton report’s release suggests there has yet to be a meeting of minds. The research reiterated that the government’s tax rises were counter-productive, and threaten to drive domestic gaming back into the illegal “black market” where it thrived prior to legalisation. Mr Sears’ letter warned that such developments could subject The
Bahamas to additional scrutiny by the international bodies that have previously “blacklisted” its financial services industry for alleged regulatory weaknesses. “Precedent from international studies shows that the higher the tax rate, the lower the ‘capture’ rate,” the Hamilton report said. “Customers are likely to move to black market operators where black market operators can offer better prices (higher rebates, lower take out rates) “The rule of thumb used is that the percentage of the market that will switch to the black market, or substitute for other products, is equal to the overall tax rate. At an effective average rate of 44 percent, this suggests that the market will decline by 30 percent following the tax increases (the black market already accounts for 15 percent).” Thus the web shop industry’s argument is that the government’s tax “grab” will result in exactly the opposite of what it intends revenues below expectations; increased unemployment; and an industry that has either been driven largely online or into the “black market”. The Hamilton report estimated that, presently, employee costs account for almost 50 percent of the web
shop industry’s fixed costs. It pegged collective industry profits at around $47m, with profit margins at 24 percent - a ratio the report said was “in line with the benchmark for other listed gambling operators” once taxes were factored in. With domestic gaming industry employment levels almost three times’ higher per capita than markets such as the UK, the Associationcommissioned research said the revised tax structure would make The Bahamas’ tax rate “24 percent higher than world average”. “The increasing tax rate penalises scale, and gives small operators an unfair cost advantage,” the Hamilton Report added. “This risks having unintended consequences, as nobody will be able to reach a scale that permits them to generate an economic return, which will make the market fragile and risk reckless behaviour by sub-scale operators. “The only way existing licensees can react is through aggressive costcutting, which will fall firstly on employees and premises rationalisation.” The present tax structure requires web shop operators to pay 11 percent on taxable revenue or 25 per cent of EBITDA (earnings before interest, taxation,
depreciation or amortisation), whichever is greater. However, under the proposed new “sliding scale” they will pay: • Up to $20m in revenue, a rate of 20 percent. • Between $20m and $40m, a rate of 25 percent. • Between $40m and $60m, a rate of 30 percent. • Between $60m and $80m, a rate of 35 percent. • Between $80m and $100m, a rate of 40 percent. • Over $100m, a rate of 50 percent. And, in a nasty twist as far as web shop operators are concerned, the government has also imposed new taxation on gamblers themselves rather than the sector. Patrons, from July 1, will have to pay a five percent stamp tax on both their web shop deposits and non-online games/digital sales. The Hamilton report said the effect of all this will be to increase the web shop industry’s effective tax rate to 44 percent of gross gaming revenues (GGR), which it branded “among the highest taxes payable in the world”. “This has significant risks,” it added. “The increase in tax take will be offset by a large migration of customers from the regulated market to the untaxed, unregulated market. We estimate the market will decrease by up to 30 percent.
“Tax take likely to be 45 percent lower than anticipated when market reduction and spill-over impact on NIB contributions, venue licence fees taken into account. Customers will be forced to the unregulated market, which will not be subject to the same levels of oversight in protecting the vulnerable and preventing crime.” Tackling claims by Mr Turnquest that gaming taxes were as high as 80 percent in some jurisdictions, the report said this only applied to monopolies such as the UK’s national lottery. “In contrast, the proposed progressive tax rate structure (up to 72 percent marginal effective rate) makes it impossible for Bahamian operators to absorb increased taxes through increased scale, as smaller operators have a material cost advantage through lower taxes,” the Hamilton report added. “Our analysis suggests that the rate of increase is from a low of 238 percent to a high of 453 percent - materially higher than publicly disclosed. Multiple international studies have shown that punitive taxes drive customers into the unregulated, black market, where they are far more likely to fall victim to unscrupulous operators.”
Forward-looking design that never goes back FROM PAGE TWO a lot of time at the beach to enjoy a relaxing environment. “Mother Nature” helps as well, but otherwise I am usually online researching old artists and painters, viewing their style. Q: What are the three most important fundamentals a customer should be concerned about when building a website? A: Content, Theme and Audience are the most important elements. Q: What areas of design are you less experienced in, but interested in gaining more knowledge? A: Cinematography. I must say I love to watch movies that have extreme graphics such as Transformer and Avatar etc. I’m learning more about motion picture graphic design and green screen rendering. I would one day love to create master pieces in cinematography for corporate marketing. Q: How do you cope with criticism? A: I deal with it. Mainly because over the years I’ve learnt that everyone has their own belief on everything in this world, but if you can persuade clients to see at least 80 percent of your vision you’ve done well. In art there will always be one person out of ten that won’t be satisfied. But wisdom teaches us to receive criticism, because sometimes in most critics there is a
sense of value that can help us along the way. Q: What are your strengths and weaknesses? Answer: My biggest strength is quality, quick completion and affordable prices. However, with weakness, I haven’t experienced a real challenge; maybe because I’ve been in the business for so many years. But if I am tested, I will surely give it my best shot. Q: What are the easiest programs to create a website and why? A: Dreamweaver is easy for beginners, because it has a more user-friendly feel and offers tons of online tutorials for beginners. Q: What do you hate and love most about your career? A: I don’t think I hate anything about designing because I have such a strong passion and love for it. Question: Where do you look for inspiration? A: Inspirations come from everywhere. But I usually look at old artists and incorporate their style of old paintings, designs and sculptures with modern designs. Q: What are your favourite Web Browsers and why? A: Google, because it’s the most powerful search engine. Q: Describe your typical day of work. Answer: After I awake, I would do a little work but take breaks in between. In the afternoons I usually create proposals for new clients. Thereafter, I schedule
meetings for the following day. Q: How do you feel about the misuse of Photoshop in photography? A: I feel that all photographers and designers have their way of expressing their work, whether using Adobe or Corel software. But once the client is satisfied that is all that matters. Q: What advice can you give to prospective students thinking about a career in web design? A: If you want to become the best in this industry, practice and study as much as possible. Knowledge is key, as it will separate you from everyone else. Until we meet again, fill your life with memories rather than regrets. Enjoy life and stay on top of your game!. NB: Columnist welcomes feedback atdeedee21bastian@gmail.com ABOUT COLUMNIST: Deidre Bastian is a professionally-trained graphic designer/ marketing co-ordinator with qualifications of M.Sc., B.Sc., A.Sc. She has trained at institutions such as: Miami Lakes Technical Centre, Success Training College, College of The Bahamas, Nova Southeastern University, Learning Tree International, Langevine International and Synergy Bahamas.
THE TRIBUNE
Thursday, June 7, 2018, PAGE 5
$75m for Over-The-Hill sewerage infrastructure FROM PAGE ONE the government as it seeks to find scarce funding for essential infrastructure and capital upgrades. “This is something the government spoke to in its over-the-hill development White Paper,” Mr Gibson told Tribune Business. “This is Water & Sewerage’s part in the overall plan to redevelop and revitalise over-the-hill. “The preliminary cost estimate for over-the-hill is $74.659m. What we’re looking at here is the number of homes connected. There are 7,700 dwelling units, with the target of having 5,280 homes connected. We’re developing a masterplan for this specific area. The aim is to revitalise and improve living conditions in over-the-hill.” Mr Gibson said around 28,000 persons lived in the target area, which also contains schools, government and commercial properties. The Water & Sewerage project is focusing on an area bordered on the west by Nassau Street from Meeting Street south to Poinciana Drive; Poinciana Drive to Blue Hill Road; and Blue Hill Road from Poinciana Drive to Robinson Road. The southern boundary is Robinson Road, with Claridge Road/Mackey Street and Madeira/Rosetta/ Meeting Streets the eastern and northern boundaries, respectively. He added that this covered some 1,320 acres, with the planned works critical to improving residents access to piped water and sanitary health. “The socio-economic living standards in over-thehill are among the lowest on the island,” Mr Gibson said. “Many of the homes are old and require upgrading to improve living standards.” The absence of piped water forces many residents to rely on government stand pipes, he added, while “we’ve discovered that many residents do not have indoor plumbing” and instead rely on outside toilets. The Water & Sewerage chairman, seeking to
illustrate the need for the project, said a low-lying water table coupled with high tides frequently caused back-up and other problems for persons in the area with septic tanks and soakaways. “These conditions are not ideal, and can precipitate the outbreak of waterborne diseases,” he added. “Infants and the elderly are especially susceptible. “The introduction of a centralised sewerage system will require considerable street trenching, but it will be part of a holistic approach taken to develop sewerage systems in this area and address current infrastructure needs.” Breaking the initial cost estimate, Mr Gibson said connecting 5,280 dwellings to a street-level sewerage system was estimated to cost $6.336m alone. Shared sewerage pipes were pegged at $22.704m, with local neighbourhood pumping stations set to cost another $24.488m. Overheads, design costs, taxes and contingencies are likely to add a further $21.33m. He added that these cost estimates would be further refined, yet the initial assessment does not include key elements of the over-thehill sewerage solution plan. Once taken from homes to underground street sewers, the waste will be taken to a community pumping station at Malcolm Park. While there it will be screened, with effluent pumped into an off-site disposal well. The waste will then be taken down the main sewerage lines for treatment at the Fox Hill wastewater treatment plant, which will be the central point for generating all over-the-hill created waste. Mr Gibson said one option for waste transportation was to connect the over-the-hill system with the corporation’s Bay Street and Shirley Street sewer lines. Both would need upgrading to take the increased volume, but neither this - nor the cost of the over-the-hill connection; Malcolm Park pumping station; and Fox Hill plant have been factored into the
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$74.659m budget. “We’ll come up with more detailed planning, plus refine cost estimates, as we deploy more teams on the ground and place greater emphasis on moving this along,” he told Tribune Business. “This is a major project to undertake. “It’s going to be a project spread over a number of years. It’s not in this year’s budget as it has to be approved. We are still at the stage where we’re examining, reviewing and arriving at preliminary cost estimates. This is a project we certainly want to undertake given the overall New Providence Sewerage Masterplan.” Mr Gibson’s comments illustrate the difficulty of undertaking essential infrastructure improvements and maintenance at a time of fiscal austerity, and when Bahamian taxpayers are being asked to bear a 60 percent VAT rate hike. Many observers are likely to be distinctly nervous at the prospect of a loss-making corporation, which has already run-up a $150m-plus accumulated, undertaking such heavy investment at a time when it continues to receive $25m in annual subsidies from the Public Treasury. Mr Gibson, meanwhile, said the over-the-hill project was part of a comprehensive overhaul planned for the corporation’s New Providence sewerage and wastewater treatment systems, which presently only service 14 percent of residents. “Continued implementation of operational efficiency measures to provide sustainable services, as well as revenue-generating measures to reduce the fiscal burden – as outlined in the Water & Sewerage Corporation Action Plan and the New Providence Wastewater Master Plan – are imperative to improving service provision in the sector,” the Inter-American Development Bank’s (IDB) latest country strategy warned. “Wastewater facilities (sewer drains, pipes
and disposal facilities) are insufficient to service the country. The sewerage system only covers 14 percent of the population of New Providence and, according to the Wastewater Master Plan 2014, requires ‘emergency’
rehabilitation.” Mr Gibson said the Masterplan divides New Providence into three sewerage zones or “drainage basins” - Fox Hill, Gladstone Road and the airport. A wastewater treatment plant, able to convert
sewerage into irrigationquality water, is planned for each. He declined to comment on the cost for executing this strategy, apart from saying it is “even greater” than the plan proposed for Over-theHill system.
PAGE 6, Thursday, June 7, 2018
THE TRIBUNE
Contractors seek VAT ‘waiver’, six month transition FROM PAGE ONE banks already reluctant to lend, which risked a halt to - possible non-completion of - construction projects already underway. Warning that the construction industry was “too big to let it fail”, Mr Sands said he “spoke very strongly” at yesterday’s BCA meeting on the need for it to receive similar transition treatment as the hotel sector. The Bahamas’ largest private employer was yesterday given an extended transition period to 12 percent for contracts already pre-booked (see other article on Page 1B). “That is the most significant concern,” he told Tribune Business. “We have a number of contractors who are like: ‘We just signed a contract yesterday with a commercial bank. When July 1 hits we’re already committed to 7.5 percent.’ They now have to pay 12 percent. Where’s that lost income going to come from to pay creditors and suppliers? “We’re already working
through the Association. We’re finalising a document to ask the government for a special waiver for contractors facing that scenario. The 30-day implementation period is too short for us to adjust and negotiate. “The only thing we can do is ask the Ministry of Finance and VAT Department for a waiver for those contractors caught in this scenario. This is a very real, significant thing.” Mr Sands estimated that 40 percent of contractors were relying on just one contract that was already in progress, pointing out that the 4.5 percentage point VAT increase could amount to millions of dollars in unanticipated costs depending on its scale. “There needs to be a special waiver,” he added. “If they don’t, you’re going to potentially put a significant amount of construction companies out of business. It’s the fact these guys will not be able to pay that extra in VAT. “What we know also is that the banks are not being very favourable to construction contracts. Once you get a mortgage, the sum is fixed.
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The banks are not going to adjust that mortgage and advance more money. “This is a very complex issue, and I don’t think the government new it, appreciated it. It’s very serious. They have to give that waiver. We don’t feel it’s exceptional to ask for the same concessions for our industry given that the hotel industry is mostly foreign-owned,” Mr Sands continued. “We talk about the construction industry being mostly owned by Bahamians. We want to give them an opportunity not to be wiped out.” Should the government decline to grant a “waiver” on existing contracts, Mr Sands added that it could also provide a six-month “transition period” where such projects continued to pay VAT at 7.5 percent. “Failing that, we could see a very bad scenario play out for the construction industry,” he warned. “The government is playing with something extremely explosive. While they may earn $400m in new VAT revenues, they may lose $500m
in activity from construction and related services.” Suggesting that construction generated $1.5bn in annual economic activity for The Bahamas, the BCA chief argued that the government “can’t let it fail” given that the potential fall-out will be felt throughout society - especially among the unskilled workers it helps to employ. With VAT structured as a regressive consumption tax, Mr Sands said the ability of Bahamian families and individuals to qualify for home mortgages will fall as a result of the proposed 12 percent rate, “eroding the already small home building consumer base” that many contractors rely upon. He added that this had been brought home to him when a client recently called him and asked if he could reduce his construction quote from $160,000 to $130,000, otherwise she would not qualify for a bank loan. Addressing yesterday’s BCA luncheon, he said VAT’s introduction in 2015 had already contributed to
“a definite softness” in the industry as fewer persons qualified for mortgages as a result of the increased costs. Mr Sands said this was borne out by the $24m, or 20 percent, decline in the total value of construction starts in 2016 compared to the prior year. Suggesting this reflected the impact of VAT’s arrival, he added that the modest improvement in 2017 starts suggested the market had by then adjusted and “bottomed out”. Yet the BCA chief warned: “There is a concern appreciated by many contractors that the local lending environment has not resulted in a positive forecast, and we can only envision even further challenges if the proposed VAT increase to 12 percent becomes a reality. “What we know is that we have seen our residential mortgage business decline 50-60 percent because of two factors; local banks’ increased scrutiny and the introduction of VAT. It is not to say that that banks did not suffer significant losses over the past few
years that prompted these internal changes to banks’ lending practices. What we are noting is the fact that our pool of customers has as a result shrunk considerably. “We can only expect that the remaining customers that wish to engage in either a renovation or new construction will have to meet the same stringent guidelines imposed for local banks, as well as feel the impact of 12 percent VAT added to their residential mortgage product,” Mr Sands continued. “Essentially what we are saying is that in 2014 a $170,000 home would cost you, after VAT $188,125, and today if the new VAT rate is implemented, that same home will cost the consumer $196,000. The point that we are making is that there already exists a dwindling base of consumers that can afford to build a new home, and the proposed VAT increase will further shrink that number.”
12% VAT only escape from ‘double whammy’ FROM PAGE ONE House of Assembly, said the government’s analyses showed that a VAT rate anywhere between the current 7.5 percent and the chosen benchmark would
be inadequate for hitting its short-term fiscal consolidation targets. He portrayed a 12 percent VAT as the only option available to the Minnis administration if it wanted to avoid borrowing “significant sums” to fill the hole, and escape saddling the Bahamian taxpayer with increased debt and associated interest costs as well as a 60 percent tax hike. “In considering what the VAT rate should be, we
considered options ranging all the way from eight per cent, nine percent to 12 percent,” Mr Turnquest told MPs. “What would fix the problem rather than mask the problem? “When we did the analysis on those other rates, we quickly realised that although it would close the gap, with those other rates we would still have to go out and borrow significant sums to close it.” Taking this course of
action, the deputy prime minister explained, would have “burdened the Bahamian people with another significant loan” and associated interest payments on top of a VAT rate increase. Effectively, the government would have been taking at both ends, and Mr Turnquest said: “We would have given the Bahamian people a double whammy.” He added that it
SEE PAGE 7
THE TRIBUNE
Thursday, June 7, 2018, PAGE 7
Hotel relief on VAT transition extension 12% VAT only escape from ‘double whammy’ FROM PAGE SIX
FROM PAGE ONE Bahamas Hotel and Tourism Association’s (BHTA) executive vice-president, said the magnitude of the 60 percent VAT rate hike and limited adjustment times were among sector “concerns” discussed with the deputy prime minister and Ministry of Finance officials on Monday. In a note to industry stakeholders yesterday, following KP Turnquest’s confirmation of the extension, Ms Pattusch said “material bookings and pre-bookings” made before September 30, 2018, will be treated at the existing 7.5 percent rate. As for group business, the BHTA executive said contracts agreed between now and July 31, 2018, for “any point in the future” will be honoured at the existing rate. “The implications of the VAT increase of 4.5 percentage points, and the proposed early implementation date, were shared with the deputy prime minister and financial secretary [Marlon Johnson],” Ms Pattusch wrote. “We expressed concerns regarding the timeframes for the transition period as proposed, and its impact on important aspects of business; particularly group business, pre-booked business, contracted agreements made with third party sellers. “We requested a reasonable transitional time to ensure that this business was not disrupted, and that agreements and relationships with global and local travel partners were not
adversely affected.” The hotel and tourism industry appears to have got its wish, following the deputy prime minister’s confirmation and communication from the Ministry of Finance. “We will work to effectively communicate to our travel partners, members and tourism industry stakeholders to achieve a smooth transition process with little or no disruption to this segment of our business model,” Ms Pattusch said. The Ministry of Finance, in its communication, informed the industry: “Any material bookings, prebooked, pre-paid bookings, groups, contracts and agreements for travel, rooms, facilities and package deals made with the resort or with agents of the resort, third party sellers/bookers of travel/accommodations prior to September 30, 2018, for travel through June 30, 2019, will be honoured at the 7.5 percent VAT. “Groups: Any material bookings, pre-booked, pre-paid bookings, contracts and agreements for travel, rooms, facilities and package deals made with the resort or with agents of the resort such as third party sellers/bookers of travel/accommodation, between now and July 31, 2018, for any point in the future (post June 30, 2019) will be honoured at the 7.5 percent VAT.” Details on both business categories will have to be send to the Department of Inland Revenue. Mr Turnquest, in kick-starting the budget debate in the House of Assembly, yesterday said: “The hotel sector – the largest employer in the country
and the nation’s leading contributor to the economy - expressed reasonable concern about the considerable advanced bookings and group business that has already been contracted. “To address their concern, we are issuing a VAT guideline that will allow the hotel industry to continue their invoiced bookings and group business at the current prevailing 7.5 percent VAT rate through the end of September 2018 for all booked stays for which a deposit has been made. This will apply for stays up until June 2019. “For clarity, this will include only the rooms, facilities and other packaged arrangements that are booked and invoiced during this period. This accommodation for the key export sector allows them to meet very important contractual obligations with minimal disruption. This will not apply to walk-ins, or to any reservations that are booked but for which no deposit is made. It will only be for rooms, facilities and other elements of a packaged deal.” However, the budget yesterday came under renewed
SEE PAGE 10
ultimately decided that a 60 percent VAT rate hike “makes the most sense in the long-term”, as it would enable the government to pay-off $360m in unfunded spending arrears over a three-year period plus “right size the budget” to ensure the Fiscal Responsibility Bill’s 0.5 deficit target was hit by 2020-2021. Besides paying off $172m of the identified “arrears” during the upcoming 2018-2019 fiscal year, the extra $400m forecast to be generated by the VAT rate rise will also cover $76m in expenses never properly budgeted for previously; $89m in extra interest payments; and $19m in new government spending initiatives. Mr Turnquest said that as the arrears were paidoff, and the fiscal deficit fell towards the Fiscal Responsibility targets, the government will seek to reduce the tax burden on Bahamians through Customs and Excise Tax reductions. In truth, though, the VAT rate was always likely to rise at some point given the government’s intention for The Bahamas to become a full World Trade Organisation (WTO)
member by end-2019. Joining global trade’s rulessetting body will require the elimination of customs duties, which are viewed as trade barriers, resulting in a revenue loss that has to be compensated for. Still, Mr Turnquest said: “That’s how we came to the rate of 12 percent in the face of the challenges we have. It’s the most reasonable, responsible thing we can do.” Suggesting that the government faced no good policy options in addressing its $400m “funding gap”, Mr Turnquest said increased borrowing and/ or a continuation of overbudgeting, over-optimistic projections and “kicking the can down the road” were never “contenders”. As for significant cuts to government spending, he added that the Minnis administration had little room for short-term manoevere. He pointed out that interest payments on the government’s near-$8bn debt and subsidies to stateowned enterprises (SOEs) both accounted for 15 percent of recurrent spending. Acknowledging that the government’s wage bill, standing at $793m in 20182019, accounted for just over 30 percent of its fixed cost spending, Mr Turnquest said it was “neither
feasible nor desirable” to send hundreds of workers home. “With a fiscal gap of some $400m that needed to be bridged, securing even one-half of that out of the wage bill would have implied the drastic elimination of programmes and services, and the termination of thousands of government employees,” he explained. “Again the government judged that such an option was simply not feasible nor desirable in the near term. Over time, however, we will want to assess the appropriateness of our wage bill as we move forward with our in-depth examination of all areas of government expenditure.” Mr Turnquest, illustrating The Bahamas’ debt spiral, said interest costs had doubled over the past seven years, rising from $191m in 2011-2012 to $381m in the upcoming fiscal year. He also challenged the private sector, in particular the Chamber of Commerce and Gowon Bowe, the Bahamas Institute of Chartered Accountants (BICA) president, to come up with viable alternatives. “I asked them: Give me your solution. Tell me what to do. I’m still waiting,” Mr Turnquest said.
PAGE 10, Thursday, June 7, 2018
Hotel relief on VAT transition extension
FROM PAGE SEVEN
fire from the Democratic National Alliance’s (DNA) deputy leader, Arinthia Komolafe, pictured, who said it pandered too much to the International Monetary Fund (IMF) and credit rating agencies.
THE TRIBUNE “The proposed budget has the fingerprints of international rating agencies and multilateral agencies; it is those people’s budget,” she argued. “The Bahamas did not get in this position overnight, and the aggressive timeframe of three years for eliminating the GFS deficit (in time for the next
general election), which is the driving force for the proposed significant increase in VAT, seems to be politically motivated rather than focused on the welfare of the people. “This short-sighted plan highlights the need for statesmen/stateswomen that focus on the next generation rather than
politicians that look to the next general election. The Bahamian people should not be made to correct this malaise in the time proposed by the Minister of Finance, which imposes an unnecessary burden on Bahamian taxpayers at the risk of disrupting the economy.”
Recall of judge in Brock Turner case stirs courtroom concern SAN FRANCISCO Associated Press THE leader of the successful recall of a Northern California judge for an unpopular sexual assault sentence warned that the results show women’s rights and the #MeToo movement are now a potent political force that politicians ignore at their own peril. “The broader message of this victory is that violence against women is now a voting issue,” said Stanford University law professor Michele Dauber, who launched the recall effort against Santa Clara County Judge Aaron Persky. The judge sent former Stanford swimmer Brock Turner to jail, not to prison. Critics said the six-month sentence was too lenient. But opponents of the recall warned that Tuesday’s lopsided result — Persky lost by 20 points — is also a powerful political force where it shouldn’t be: the courtroom. “This sets a dangerous precedent for state court judges in California and perhaps beyond,” said LaDoris Cordell, a retired Santa Clara County judge who supported Persky’s campaign against the recall. Cordell was among a number of law school professors and retired judges who fear that judges may now take public perception into account more than they should when handling highprofile and sensitive cases. The recall effort started in June 2016 shortly after Persky sentenced Turner to six months in jail. Prosecutors had wanted a lengthy prison sentence for Turner in the sexual assault of a young woman incapacitated by alcohol. They noted that Persky was removed from office for delivering a lawful sentence that Santa Clara County district attorney Jeff Rosen declined to appeal. California’s Commission on Judicial Performance ruled that the sentencing was done correctly. Now, they
fear, other judges in elected positions will be reticent to issue unpopular but lawful rulings. “Subjecting judges to recall when they follow the law and do something unpopular undermines judicial independence,” Rosen said in a statement. “When judges believe that they will lose their careers for making unpopular but lawful decisions, they may lack the courage to stand up for the rights of minorities or others needing protection from powerful majorities or those with even understandably inflamed passions.” A widely cited 2015 study of elected state judges in Pennsylvania and Washington by New York University’s law school concluded that judges are influenced by election cycles. The study found judges issued longer sentences for serious felony conviction when they were close to re-election. “It’s very concerning if the recall become a normal tool for removing judges,” NYU law school professor Alicia Bannon said. “Following the law isn’t necessary popular and judges need some form of insulation from public perception.” Persky declined comment Tuesday night and didn’t return phone calls from The Associated Press on yesterday. In an interview with AP last month, Persky said his recall threatened judicial independence. “To get justice from a judge, they need someone who follows the rules. The basic rule is the rule of law,” he said. “The problem with this recall is it will pressure judges to follow the rule of public opinion as opposed to the rule of law.” But Persky adopted a recommendation from the county probation department and cited Turner’s clean criminal record, age, loss of his Stanford swimming career and other factors, including the involvement of alcohol, for the short jail sentence.
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PAGE 12, Thursday, June 7, 2018 NOTICE LEATECH LIMITED N O T I C E IS HEREBY GIVEN as follows: (a) LEATECH LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. (b) The dissolution of the said company commenced on the 5th June, 2018 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas Dated this 7th day of June, A. D. 2018 _________________________________ Bukit Merah Limited Liquidator
THE TRIBUNE
Native Americans rally in bid to save Arizona coal plant PHOENIX Associated Press MORE than 300 people who say their livelihoods depend on a coal-fired plant on a sprawling Native American reservation rallied in Phoenix Wednesday to request a 90-day delay in steps being taken to shutter it by 2019. Demonstrators — including miners who extract the coal that fires the plant, plant employees, their relatives and tribal and union leaders — asked for more time to allow a potential buyer of the Navajo Generating Station in northern Arizona to work out the details of a purchase they said would save jobs and a major source of funding for the Navajo Nation and Hopi Tribe. The power-generating plant is owned by several utility companies including its operator the Salt River Project, which owns 42.9 percent and controls another 24.3 percent on behalf of the US government. The utilities decided early this year to shut the plant down when its lease expires and use cheaper power sources. “Just 90 days! Just 90 days!” the crowd chanted. Some in the crowd carried signs that read, “We’re Worth 90 Days.” “We don’t think that 90 days is too much to ask,” Clark Tenakhongva, the Hopi Tribe’s vice chairman, told the group. He said that 85 percent of the tribe’s operating budget revenues come from the generating plant. Added Navajo Nation President Russell Begaye: “We should continue to work to find solutions to keep the plant operating while supporting both the Navajo economy and families.”
PEOPLE rally outside the Capitol in Phoenix, on yesterday. Hundreds of Navajo Generating Station employees, relatives and union and tribal leaders rallied to request a 90-day pause in steps to close the coal-fueled plant by the end of 2019 as scheduled. Photo: Matt York/AP The board of the Central Arizona Water Conservation District is to consider alternative power sources to the generating station during a meeting today. The district uses power from the plant to operate an aqueduct system. It was the latest effort by employees of the 2,250-megawatt station to save their jobs. The plant’s sole coal supplier, Peabody, has hired an investment banking firm to find a new owner for the station and the Kayenta Mine that supplies the plant with coal. Demonstrators were heartened by news that a Chicago-based company called Middle River Power has expressed interest. While supporters of the plant insist it can produce economically priced energy, utility operators say the station is more expensive to run than natural gas-burning plants. Jolene Bitsui, a 42-yearold single mother of four grown children who services heavy machinery at the coal mine, said her job has allowed her family to continue living on the Navajo reservation. “Closing the plant and the mine will take away hundreds of jobs from Navajos and Hopis, and these are good jobs,” she said.
“There really isn’t any other business out there, any employer out by the reservation,” said Floyd Singer, a 67-year-old member of the Hopi Tribe who made the five-hour trip to Phoenix with his son and three grandchildren. The Hopi Tribe and coal mining groups last month sued the operator of an Arizona aqueduct system known as the Central Arizona Project to halt the plant’s closure when its lease expires near the end of next year. The lawsuit in US District Court contends that federal law obligates the district to buy power from the station. A recent letter from the Interior Department raised the question of whether a 1968 federal act that obligated purchase of electricity from the station should be considered when deciding its future. Congress constructed the station rather than build two dams on the Colorado River for hydroelectricity so Arizona could move its water. Middle River Power, a portfolio company of Avenue Capital responsible for managing its power plant investments, said in a May 2 letter to the water conservation district’s board president that it was discussing a possible plan for
the station’s future with the plant’s operator and owners and federal and tribal officials. “We are immediately advancing discussions with the existing non-federal owners, tribal leadership and other stakeholders to discuss next steps for a functional transition to new ownership,” wrote Mark Kubow, Middle River Power’s president. Company officials did not immediately respond to a request for more details. The Salt River Project, a utility that operates the generating station, said Tuesday there is no deal. Salt River Project spokeswoman Scott Harelson said the station’s owners decided to end its participation in the plant because coal generation cost so much and they had “not received an offer or entered into negotiations with any potentially interested party” to buy it. The Central Arizona Project, run by the Central Arizona Water Conservation District, is a primary customer of the plant, using the power to move water to residents and businesses in the state’s Maricopa, Pinal and Pima counties. The plant also provides electrical service to other customers in Arizona and parts of Nevada.
THE TRIBUNE
Thursday, June 7, 2018, PAGE 13
House GOP slates vote on $15bn Trump spending cut package WASHINGTON Associated Press THE GOP-controlled House is moving ahead on a White House plan to cut almost $15bn in leftover spending, scheduling a vote after President Donald Trump took to Twitter to sell the idea. A spokesman for House majority leader Kevin McCarthy said on yesterday that the House will vote tonight on the measure, which had appeared to languish after Trump submitted it last month. The measure faces long odds in the Senate despite being immune to a Democratic filibuster. The legislation would have only a tiny — $1bn or so — impact on the government’s budget deficit, which is on track to total more than $800bn this year. Some of the cuts wouldn’t affect the deficit at all since budget scorekeepers don’t give credit for rescinded money that they don’t think would have ever been spent. For instance, more than $4bn in cuts to a loan program designed to boost fuel-efficient, advancedtechnology vehicles wouldn’t result in fewer loans since the loans are no longer being made. But rescinding previous leftover funds, such as $7bn from the popular Children’s Health Insurance Program, or CHIP, would take that money off the table so it couldn’t be used to help pay for new appropriations down the road. The recently-passed catchall spending bill used $7bn in unspent CHIP funding to pay for budget increases elsewhere. In a statement, the White House urged lawmakers “to return this funding to the Federal Treasury rather than use it as a budgetary gimmick to offset spending elsewhere.” The pending vote — if successful — would be a vindication of sorts for McCarthy, who has a driving force behind the
HOUSE Majority Leader Kevin McCarthy, R-Calif, joined at right by House Speaker Paul Ryan, R-Wis, talks with reporters at the Capitol in Washington. package of cuts, which comes after many conservatives complained about a $1.3tn catchall spending bill that passed in March. House Speaker Paul Ryan, R-Wis, hasn’t been an active booster of the plan. “The President’s rescissions request is a straightforward approach to begin cleaning up a bloated federal budget and respecting hardworking taxpayer dollars,” McCarthy said. The White House submitted a revised package of cuts Tuesday, removing politically troublesome proposals to cut money to fight Ebola funds and to rebuild watersheds damaged by Superstorm Sandy. The removal of cuts to Sandy aid could shore up support among northeastern Republicans such as Peter King of New York. “The HISTORIC Rescissions Package we’ve proposed would cut $15,000,000,000 in Wasteful Spending! We are getting our government back on track,” Trump tweeted Tuesday. But the measure faces long odds in the Senate, where pragmatic-minded Republicans are focusing on trying to get the troubled process for handling annual appropriations back on track on a bipartisan basis. White House budget director Mick Mulvaney heeded warnings to not touch the budget-busting omnibus spending bill, but it’s still unclear whether the closely divided Senate will be able to pass it.
PAGE 14, Thursday, June 7, 2018
THE TRIBUNE
Mulvaney dissolves group that advised consumer watchdog NEW YORK Associated Press THE head of the Consumer Financial Protection Bureau dissolved a group of outside experts that acts as a sounding board for the federal watchdog agency on important economic and financial issues as well as policy. Bureau officials told the 25 members of the Consumer Advisory Board yesterday on a morning conference call that they will be replaced and the board will be reconstituted, according to two board members who participated. An email to board members on behalf of acting director Mick Mulvaney confirmed the actions. “Everyone on the board has been fired,” said Judith Fox, a professor of consumer law at Notre Dame Law School who sat on the board for three years. The law that created the CFPB mandates that bureau officials meet with the advisory board at least twice a year. Board members say that under Richard Cordray, the Obama appointee who retired as director in November, the board and CFPB officials would have extremely detailed discussions about industry issues or pockets of concern the bureau should be examining such as fair lending. Under Mulvaney, meetings have been cancelled repeatedly. The most Mulvaney could ever commit
WHITE House budget director Mick Mulvaney, speaks with members of the media after meeting with House GOP members on Capitol Hill in Washington. to, according to board members, was one 20-minute phone call. Mulvaney’s staff cited a busy schedule, board members said. Mulvaney has steered the bureau in a more industry-friendly direction since taking charge after Cordray’s resignation. One advisory board member suggested that yesterday’s dismissals were aimed at quieting opposition to the bureau’s change of direction. “The reason to let us go is an attempt to silence the voices that would be concerned about the direction the bureau has taken under this administration,” said Josh Zinner, CEO of Interfaith Center on Corporate Responsibility, and a
member of the board since 2015. The dismissals came just two days after Mulvaney said that concerns about the cancelled meetings were overblown. On the conference call, Mulvaney political appointee Anthony Welcher told board members that the bureau was looking for more diversity among its members and looking for ways to save money. But now-former board members say those arguments are misleading. The board’s cost was several hundred thousand dollars, according to bureau officials, compared to the bureau’s estimated budget for 2018 of $630.4m. John Czwartacki, a
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, LOLITA EVOSE COLEBROOKE also known as LOLITA STORR, LOLITA EVOSE COLEBROOK, and LOLITA COLEBROOKE of #68 Faith Gardens, Nassau, Bahamas, intend to change my name to LOLITA EVOSE COLEBROOKE. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.
Mulvaney appointee and spokesman for the bureau, said that the outspoken members of the board were only interested in “protecting their taxpayer-funded junkets”. But several members, including Max Levchin, founder and CEO of financial services company Affirm, said they offered to pay their own travel costs if there were concerns. A recording of the conference call yesterday confirmed that several board members were willing to cover their travel and lodging costs. Also along with consumer groups and academics, the board was made up of representatives from big financial companies like Citigroup,
Mastercard, and Pennsylvania-based bank PNC. “Without this direct line to all stakeholders, CFPB’s job becomes much harder, perhaps nearly impossible,” said Levchin, who had been on the board since 2015. Bureau officials said the board would be reconstituted in the fall, likely with fewer members than its current 25-person membership. None of the current members of the board, who typically serve three year terms, would be eligible to apply. Members of two other boards, one at serves issues with credit unions and another that serves small community banks, which also provide outside expertise, would also be reconstituted as well. In total, 60 members across the three boards were
dismissed on yesterday. Rumors of the dismissal or reconstitution of the board had been lingering for weeks. After a two-day meeting scheduled for yesterday and today of this week was cancelled, a group of CAB members held a press conference Monday to express their concerns about the lack of meetings. Mulvaney responded with a letter saying “there is no cause for concern in this regard” and that he looked forward to having the meetings. Two days later, the board members were told they were no longer needed. Now fired, some board members say they are considering possible legal options against the bureau and Mulvaney.
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, ELLEN IVA HANNA of the Southern District of the Island of New Providence, Bahamas, intend to change my name to ELLEN IVA ARMBRISTER. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.
NOTICE
NOTICE is hereby given that FELICIA NORELIS of Fox Hill 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 7th day of June, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
MARKET REPORT WEDNESDAY, 6 JUNE 2018
t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com
BISX ALL SHARE INDEX: CLOSE 1,931.12 | CHG -0.08 | %CHG 0.00 | YTD -132.45 | YTD% -6.42 BISX LISTED & TRADED SECURITIES 52WK HI 4.40 19.17 7.50 3.85 1.48 0.19 4.05 8.90 6.60 5.30 10.40 2.71 1.61 8.21 6.10 11.48 7.29 13.67 12.51
52WK LOW 3.50 17.43 7.50 3.32 0.90 0.12 3.10 8.40 6.00 3.15 9.00 2.30 1.40 7.25 6.00 8.78 5.67 3.35 12.50
1050.00 1000.00 1000.00 1000.00
1000.00 1000.00 1000.00 1000.00
PREFERENCE SHARES
1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01
1.00 100.00 100.00 100.00 105.00 100.00 100.00 10.00 1.00
SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson
Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B
CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00
52WK LOW 100.00 100.00
SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB
SECURITY Fidelity Bank Note 18 (Series E) + Fidelity Bank Note 22 (Series B) +
SYMBOL FBB18 FBB22
Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y
BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407
BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
MUTUAL FUNDS 52WK HI 2.15 4.16 2.00 178.69 157.58 1.55 1.70 1.62 1.10 6.99 8.54 6.15 10.52 11.46 10.46
52WK LOW 1.67 3.04 1.68 164.74 116.70 1.48 1.62 1.57 1.04 6.41 7.62 5.66 8.65 10.54 9.57
LAST CLOSE 4.40 17.43 9.09 3.85 1.01 0.18 3.10 8.89 6.12 4.10 10.05 2.56 1.60 7.60 6.10 11.00 6.30 3.25 12.51
CLOSE 4.40 17.43 9.09 3.85 1.01 0.18 3.10 8.89 6.12 4.10 10.05 2.53 1.60 7.53 6.10 11.00 6.30 3.25 12.51
CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.03 0.00 -0.07 0.00 0.00 0.00 0.00 0.00
1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00
1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
CLOSE 100.00 100.00
CHANGE 0.00 0.00
107.83 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
-0.42 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
LAST SALE 100.00 100.00 108.25 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund
VOLUME 10,000
2,000
150
VOLUME
5 5
NAV 2.15 4.13 2.00 179.39 153.02 1.55 1.68 1.63 1.09 7.15 8.14 6.41 11.26 11.68 10.24
EPS$ 0.361 0.932 -0.306 0.283 -0.973 0.000 -1.465 0.638 0.573 0.171 0.627 0.102 0.330 0.000 1.129 0.679 0.610 0.293 0.543
DIV$ 0.080 1.130 0.000 0.230 0.000 0.000 0.000 0.320 0.220 0.120 0.620 0.060 0.050 0.084 0.320 0.500 0.200 0.120 0.580
P/E 12.2 18.7 N/M 13.6 N/M N/M -2.1 13.9 10.7 24.0 16.0 24.8 4.8 N/M 5.4 16.2 10.3 11.1 23.0
YIELD 1.82% 6.48% 0.00% 5.97% 0.00% 0.00% 0.00% 3.60% 3.59% 2.93% 6.17% 2.37% 3.13% 1.12% 5.25% 4.55% 3.17% 3.69% 4.64%
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%
INTEREST 6.00% Prime + 1.75% 6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25% YTD% 12 MTH% 1.23% 4.12% -0.16% 5.10% 0.74% 2.38% 4.66% 3.89% -0.25% 4.57% 1.04% 4.26% -1.06% 2.15% 0.58% 3.61% -0.48% 4.84% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69%
MATURITY 31-May-2018 19-Oct-2022 20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022 NAV Date 30-Apr-2018 30-Apr-2018 26-Apr-2018 31-Mar-2018 31-Mar-2018 31-Mar-2018 31-Mar-2018 31-Mar-2018 31-Mar-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018
MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings
YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful
TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225
NOTICE In the Estate of WILLIAM KEVIN SWEETING late of No. 7 Hamshire Street in the Western District of the Island of New Providence one of the Islands of The Commonwealth of The Bahamas, deceased. NOTICE is hereby given that all persons having any claim or demand against the above Estate are required to send the same duly certified in writing to the undersigned on or before the 19th day of July, 2018, after which date the Executor will proceed to distribute the assets having regard only to the claims of which he shall then have had notice. AND NOTICE is hereby also given that all persons indebted to the said Estate are requested to make full settlement on or before the date hereinbefore mentioned. HIGGS & JOHNSON Chambers Ocean Centre Montagu Foreshore East Bay Street P. O. Box N-3247 Nassau, Bahamas. Attorneys for the Estate of William Kevin Sweeting