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Volume:115 No.136, JUNE 8TH, 2018
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WEEKEND: MAN ON A MISSION TO HELP THE DISABLED
‘We’ll tackle any illegal web shops’
Bethel pledges to deal with any outlets that go underground By AVA TURNQUEST Tribune Chief Reporter aturnquest@tribunemedia.net ATTORNEY General Carl Bethel yesterday warned that any illegality in the gaming industry will be “vigorously addressed” by the government as he moved to address recent statements by gaming house operators that appeared to resonate as a threat of moving “underground” to escape impending tax increases. A study released by the
ATTORNEY General Carl Bethel. Bahamas Gaming Operators Association warned 2,000 jobs will be lost, and 75 per cent of its locations will close, if the government
BRINIQUE BRINGS OUT THE SMILES
follows through with its new sliding scale tax structure. But it also projected the increases and their impact on the seven licensed web shop chains would drive 30 per cent of the industry’s existing customer base to an “underground black market.” Yesterday, Mr Bethel said: “Any resort to ‘underground market’ resonates with a threat of illegality. Any illegality will be vigorously addressed by the government. SEE PAGE THREE
...WHILE GAMBLING HOUSES URGED TO HOLD MONEY BACK FROM GOVT By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
WEB shops were yesterday urged to withhold all revenues currently due to the Government, amid claims planned tax hikes were intended to wipe them out in favour of a National Lottery. Philip Galanis, the former MP and Senator, told Tribune Business he had personally advised the sector to place all tax
COOPER: FNM ‘HYPOCRITICAL’ OVER VAT - SEE PAGE FIVE McALPINE: BRING IN INCOME TAX SEE PAGE THREE liabilities “in escrow” until the escalating dispute over the industry’s proposed new structure was resolved. A long-time advocate for the sector’s legalisation,
and an auditor for several operators, Mr Galanis blasted the magnitude of the Government’s ‘tax grab’ as “illegal, immoral and perverse”. The HLB Galanis & Company principal argued that the domestic gaming industry had been “targeted at the front end and the back end” by the 20182019 Budget, with taxation set to be imposed directly on its customers as well as operators. FULL STORY - SEE BUSINESS
MISS World Bahamas Brinique Gibson gets a warm welcome at Garvin Tynes Primary School yesterday during a visit. See page two for more. Photo: Terrel W Carey/Tribune Staff
GAMING BOARD WORKERS TESTED FOR TUBERCULOSIS By MORGAN ADDERLEY Tribune Staff Reporter madderley@tribunemedia.net
WORKERS in the Centreville House building have been tested for tuberculosis in the wake of speculation that a female Gaming Board employee was hospitalised last week
for the illness, Bahamas Public Services Union President Kimsley Ferguson told The Tribune yesterday. The building is also being checked for mould, Mr Ferguson said. The offices of organisations such as the Gaming Board and Urban Renewal are located in Centreville
House. When contacted by The Tribune, Mr Ferguson said he had discussed these reports with Ian Tynes, acting secretary of the Gaming Board. “(Mr Tynes) told me that on Thursday (May 31), a young lady was taken from
Nassau & Bahama Islands’ Leading Newspaper
SEE PAGE SEVEN
NAUGHTY: WHAT A TIME TO BE ALIVE
SEE PAGE EIGHT
PAGE 2, Friday, June 8, 2018
THE TRIBUNE
Miss Bahamas is the queen of hearts NEWLY-CROWNED Miss World Bahamas Brinique Gibson visited the students and faculty of Garvin Tynes Primary School and Autism Centre yesterday. She greeted and embraced the students who were ecstatic to see her. Ms Gibson was crowned last month during the final pageant at the Atlantis
Imperial Ballroom. The beauty queen - who was Miss New Providence in the contest - edged out second-placed Serena Greene (Miss Grand Bahama), and third-placed Shelly Elisee (Miss University of The Bahamas). Photos: Terrel W Carey/Tribune Staff
THE TRIBUNE
Friday, June 8, 2018, PAGE 3
‘We’ll tackle any illegal web shops’ from page one “It is hard to see the validity of any threatened legal action if the same is backed by the clients’ threat to resort to illegalities or ‘underground’ activities, if they are unable to demand and receive the fruits of their proposed litigation without actually going to court –- just because they threaten to go underground. “Such threats are unacceptable and any such underground activities will be addressed, as indicated,” Mr Bethel said. Mr Bethel was referring to the seven-day ultimatum issued by BGOA – which expired today and called for the government to negotiate with the association or face legal action. Finance Minister Peter Turnquest did not respond to calls for comment on the BGOA report up to
press time. Yesterday, Labour Minister Dion Foulkes said about the layoff threats: “I don’t want to comment on it. The minister of finance has carriage over all matters connected to taxation. He has been in several conferences, meetings, dialogue with stakeholders, I do not want to interfere. “But I want to say that the object of the government from the Ministry of Labour point of view is to maintain jobs. We would wish to maintain existing jobs and to create new jobs, that is what our policies are all about with respect to what’s going on with the gaming houses.” The gaming industry’s projection of thousands of job losses and web shop closures due to tax hikes was yesterday described as an attempt to “hold a gun to the government’s head” by two senior Cabinet ministers.
Another Cabinet minister told The Tribune the “brash and arrogant” group had made it clear they held an irrational or inflated sense of entitlement and influence on the governance of the country. The Tribune spoke to three other Cabinet ministers, who yesterday sounded off on the gaming industry’s report with the condition they would be afforded anonymity. One Cabinet minister asked: “Who’s actually running the country - is the government running the country or the numbers guys? The government is perfectly within its grounds, according to the constitution, to levy taxes.” The minister continued: “There is nothing unconstitutional about that, that’s why we get real property tax paid by people in Nassau and not the Family Islands. You have examples of foreigners paying real property
tax on undeveloped land, Bahamians don’t. There are many examples of variable approaches to taxation. “Once you start going around the road about the high and mighty. They (web shop owners) happen to be black but imagine if this was a group of white powerful people that said this? People would be up in arms saying who are these people think they is!” The minister continued: “Notwithstanding they have a lot of money, they are brash and arrogant. I don’t think they know who they dealing with.” Another minister said: “I think they put a gun to the government’s head and they are saying it’s either our way or the highway. Any business establishment that does that, normally it doesn’t work. The government represents the people. “Baha Mar’s former developer (Sarkis) Izmirlian said something to the PLP
once and you see how that turned out,” the minister continued. “Perry went after them. This is a matter of sin taxes. There is a high tax on alcohol, high tax on tobacco and gambling. “(The web shop operator) is very arrogant, he thinks because he has all these millions he can just tell the government what to do,” the minister added. “Well I ain’t never get nothing from him and a sovereign government will never give away some basic obligations that they have to the people. I don’t care what court they go to, no court will ever rule in their favour.” The Nassau Guardian’s editorial on Wednesday suggested web shop operators would form an alliance with the Progressive Liberal Party in a bid to oust the government – a theory that was condemned by the party’s chairman, Fred Mitchell, as “wrong and illogical”.
However, Cabinet ministers canvassed yesterday told The Tribune it was a likely development albeit not one that mattered much. “They (web shops) probably will – so what?” said one minister. “I think they dealt with the PLP using honey instead of a stick. Now they say ‘oh they contributed to the campaign’.” The minister continued: “They did contribute to FNM campaigns, and to individual campaigns, so did hundreds of other people – that does not give you the right to dictate. “I think they are overplaying their hand right now and it’s in part due to the arrogance of a few of them, probably led by one of them. All of a sudden, you’re a big star and you believe your s*** don’t stink,” the minister said, “but all you are is a numbers boy. So stop.”
‘TOUGH CHOICE IS BEST FOR COUNTRY’ By KHRISNA RUSSELL Deputy Chief Reporter krussell@tribunemedia.net
THE Minnis administration may pay a political price for its value added tax hike, but it is better to pay that price than face the ramifications of not making the hard decisions, St Barnabas MP Shanendon Cartwright said yesterday. As he made a case for his support of the 20182019 budget, Mr Cartwright yesterday told Parliament he does not like the VAT increase, but the decision to do so among others will result in a better Bahamas. “I believe that the members opposite love this country just as much as us,” the Free National Movement member of Parliament said. “I will never question that and I will never engage in anything that suggests that they don’t because I believe them that the tough decision that the former administration had to make in 2015 on the implementation of VAT was a tough decision. They did it because they loved the Commonwealth of the
Bahamas and they thought it was in the best interest. “Likewise the hard choices that we have to make in this budget is for the future of the Commonwealth of the Bahamas and is gladly a choice I will make.” He continued: “Mr Speaker, I am going to be very direct with this. Maybe there will be a political price for the hard choice that has to be made. Maybe I will have to pay that political price, but I tell you this: I would rather pay the price than the heavy price that the Bahamian people would have to pay should we not make that choice. “I saw some strong words levelled at the hard choices we’ve had to make in this budget. I am obligated as a son of this Bahamian soil, as a representative of 5,148 Bahamians in the constituency of St Barnabas, as a member of this honourable House, to do not what is politically convenient, to do not what is easy but to do what is right for those 5,148 constituents in St Barnabas,” he said. “Not to act in this
moment would be to use those strong words – treacherous, reckless and dangerous. Whenever my season is up in this honourable place, I want my God, my daughters, the people of St Barnabas, Bahamians everywhere and my conscience to note that I not only served but I succeeded on behalf of the Bahamian people.” Central and South Abaco MP James Albury, for his part, said he understood the need to increase VAT. However he voiced concerns about an insufficient constituency allowance given to MPs. Presently MPs receive $30,000 for their constituencies in every budget cycle. The 20182019 budget did not include an increase for constituency allowances. Despite this, Mr Albury said he supported the 2018-2019 budget. Both MP’s support for the budget and the higher VAT rate falls in line with the narrative from the Minnis administration that not doing so would result in higher deficits in the coming years. The decision
ST Barnabas MP Shanendon Cartwright. was made in response to the need to pay down on the national debt, government officials have said. On Wednesday, Prime Minister Dr Hubert Minnis said his job was to “save the country” when he was asked if he were concerned about losing political capital because of the VAT decision. However, he dodged responding to questions
Photo: Terrel W Carey/Tribune Staff
regarding complaints about the government’s lack of consultation on the move, which also saw some Free National Movement members of Parliament left in the dark on the decision. “You’ll get everything when I speak,” was the prime minister’s reply to these VAT related questions. The government has been the target of intense
backlash over its decision to increase VAT from 7.5 percent to 12 percent since Finance Minister Peter Turnquest made the announcement last week. With the VAT increase, the government projects it will reap $1,115,007,455 in revenue in the next fiscal year, a 60 percent increase compared with the forecasted VAT revenue for 2017-2018.
McALPINE CALLS FOR INCOME TAX RATHER THAN VAT RISE By AVA TURNQUEST Tribune Chief Reporter aturnquest@tribunemedia.net
OUTSPOKEN Pineridge MP Frederick McAlpine yesterday ridiculed his government’s budget, telling parliamentarians it appears Free National Movement politicians have reneged on their words. As he laid out unflinching criticism of the government’s “unduly aggressive” fiscal strategy, Mr McAlpine stressed far too many Bahamians felt they were enduring “taxation without representation”. Declaring the budget was devoid of transparency and compassion, and highly disrespectful due to the lack of consultation or notice on tax increases, the Pineridge MP projected the more than 60 percent increase of the “regressive” value added tax would prove to be disproportionately “onerous” on the poor. He said his views came after consultation with his “economic advisor,” adding serious consideration should have been given to income tax as current targets appeared “unrealistic and unsustainable.” “I know as a government we are relentless in our efforts,” he said, “nonetheless, with the people
we are falling down. They see us who once preached transparency converted to secrecy. “We told the people to take the jobs and vote FNM. The other people told them if they voted FNM they would lose the job. We told them not so. The people lost their job! “We have appeared to renege on our words. We’ve switched positions without any explanation. What we fought yesterday we seem to embrace today.” The Minnis administration has reversed its stance on several issues since assuming office. The administration passed the controversial “Spy Bill” last month, despite opposing similar legislation while in opposition. The FNM voted against the introduction of VAT in 2015, but announced last week it would be raised to 12 percent next month. Mr McAlpine claimed the 2018-2019 budget produced more questions than answers - but noted there was “still time to fix it,” and implored the government to “pause, re-assess, re-evaluate and reconsider where we are in the hearts and minds of the Bahamian people.” He took shots at the
increase in customs exemptions, stating it would be good if the economy was booming but people can barely afford tickets to travel overseas. Mr McAlpine added the VAT reduction on insured residential properties was not a priority as it was a luxury most Bahamians did not have. “However,” he said, “the public could have used that little something on medical and life insurance, but instead we are taxed from the womb to the tomb. “I can’t kill the government for trying, but without any economic stimulus and present economic growth this leads to a ‘shock and awe’ and perhaps this is why we’re feeling this stench and push back from the public. “All I can say to our government and the minister of finance is it better work! If not, dog eat our lunch sooner rather than later. Many are of the view that we didn’t have to go so hard so fast in this regard.” Mr McAlpine said he was emboldened not only by the emails, texts, calls and letters of his constituents, but also residents throughout Grand Bahama who have asked him to “stay the course.”
He spoke to an outpouring of support throughout the country for him to stay true to his convictions, and speak truth to power, adding that supporters knew the difference between service and disservice. Mr McAlpine said he was an East Grand Bahama resident but could not condone “compromisation over salvation.” The Pineridge MP hinted at the existence of a personal political agenda against him within his party. “My survival depends on my truthfulness in this life and the life thereafter,” he said. “It’s amazing, prior to election, all through the campaign, ‘It’s the People’s Time.’ Now that the people don’t see what we see, nor feel what we feel, they’re now labelled as fickle, impatient, ungrateful or uneducated; but they were smart enough to vote us in. What a difference a year makes!” He said: “None of us are perfect! Notwithstanding, imperfections shouldn’t negate us from speaking truth, especially for the disadvantaged, dejected and demoralised of our society.” During his contribution yesterday, Mr
McAlpine was also critical of the proposed tax hike for web shops, asking parliamentarians who were businessmen whether they would seriously accept such an increase in their sector. He called for the government to revisit the “mercenary, unconscionable, and obviously discriminatory” sin tax on the grounds of fairness and equity, adding that other “vice” related activities go unchecked. Mr McAlpine also suggested non-Bahamians be made to pay registration fees for hospitals and schools at twice the rate for Bahamians. “If it’s not going to be a free lunch for Bahamians, it shouldn’t be a free lunch for anybody else,” he said. He furthered that it was a crying shame that
Cabinet ministers and parliamentary secretaries were afforded insurance for their spouses and dependents but the same was not given to ambulance drivers, or parliamentarians. He charged if the government could not pay for all, then it should not pay for any position with the exception of the prime minister. Mr McAlpine also congratulated the government on its reduction in discretionary expenditure, and for having the political will to address the spiralling deficit and the issue of national debt. However, he challenged there was a need for a more balanced approach when it came to the disengagement or displacement of workers, and in consideration of the availability of investment incentives offered to
PAGE 4, Friday, June 8, 2018
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New VAT hike must be revisited IT IS said that the job of political leaders is to balance conflicting priorities and goals and make decisions based on the welfare and best interests of the people. That looks to be a sensible and laudable ideal. But it may be seen here in The Bahamas as hollow, if not risible, following the announcement in the Budget last week of a huge increase of 60 per cent in Value Added Tax, a move which will have predictably negative consequences for our nation across-the board. While the Prime Minister and his colleagues can be commended for biting the bullet and addressing the nation’s unsustainable fiscal deficits and unprecedented levels of debt resulting from economic mismanagement, including reckless spending and borrowing, by successive governments for many years, it is also clear that their approach about VAT is not only flawed economically but is likely to turn out to be politically inept. Clearly, the poor state of our public finances requires firm remedial action. But, even with underfunded government pension liabilities and spending commitments amounting to $360m, the Government has stunned the business community by the size of its VAT increase. As a form of taxation, VAT is claimed to be fair because it applies to all and is based on consumption that is deemed to be discretionary. In reality, however, this increase will hit the poor hardest despite the product exemptions. Such an increase is likely to stifle growth, undermine business and investor confidence and affect consumer spending since disposable incomes will be reduced; and the experts contend that a recession may follow. Moreover, to many critics the timing could not be worse when there are signs of an economic turnaround. It is also strange to impose such a swingeing increase when there has been a substantial upturn in tourism during the first quarter of this year resulting in higher VAT receipts. The Government seems also to have ignored the fact that an economic downturn with consumers buying less will mean a decrease in tax revenue. This then begs the question why the Government would not prefer to bring in a VAT increase more gradually while paying down debt at a similar pace and thus improve the likelihood of balancing fiscal consolidation with the creation of wealth and economic growth. While higher taxes on web shop casinos will be widely welcomed, a striking
omission in the Budget was the absence of measures to improve the ease of doing business. This includes bringing pressure on the banks, if necessary through legislation, to improve their procedures that are beset by excessive bureaucracy. There was no mention of Business Licence reform and adjustment of fees and little real recognition of the effect of increased VAT on the productive sector of the economy despite the Government itself predicting that the economy overall will slow down. Another alarming factor was the lack of consultation on such an important issue even with FNM Members of Parliament. Mr Turnquest’s explanation of the reasons for not discussing the issue with the private sector were unconvincing. All this is attracting much criticism, not least because the effects of higher VAT will be felt throughout the land. Many are now urging the Government to look at alternative ways to raise extra revenue; among others, for example, privatisation of Bahamasair and selling its $70m majority ownership of the mobile operator Aliv. Amidst this growing controversy, it has become clear that the Government must now seek to reduce recurrent public spending in accordance with the recent recommendations of the International Monetary Fund. A significant revelation in the Budget was provision for its extra spending showing that, far from shrinking, the size of the Government continues to grow. This is no longer sustainable. In addition to tackling the national debt, overall government spending and the number of workers on the public sector payroll have to be reduced. With its huge majority and only one year in to its five-year electoral term, the FNM Government is in a strong position to push through its policies. We believe the Minister of Finance is right to tackle the nation’s economic problems head-on and not, in his own words, “kick the can down the road”. It is also the case that governments are elected to take decisions. But a 60 per cent VAT hike all at once is too high for our small economy. By stifling economic growth and precipitating a recession, it may also turn out to be counterproductive. We consider, therefore, that it should be looked at again. There is surely anyway no need for our current political leaders to put their futures on the line in this way that is bound to be deeply unpopular when there is no compulsion to do so. We urge those concerned to be mindful of the bigger picture.
Justice for Camron EDITOR, The Tribune.
THE Committee for Gender Equality & The Rights of the Child extends its deepest condolences to the family and friends of eightyear-old Camron Cooper. It takes a village to raise a child. This responsibility also speaks to creating safe environments for our children to live and play. Children do not request to be brought into this world and depend on our collective efforts as members of society to not only protect them but to ensure that they are given a fighting chance to
become adults themselves. We have failed in our responsibility as a society when children become casualties of gun violence. We have failed in our responsibility as a society when men believe that the only way to resolve their conflicts is to pick up a gun. We can do better and we must do better for our children who not only learn from us through our words but also through our actions. The Bahamas is widely promoted as a paradise for tourists and the time is long
overdue that we focus our efforts in making this country equally so for its citizens. We encourage anyone with information to please come forward to assist The Royal Bahamas Police Force with their pursuit to provide justice for Camron Cooper.
is concerned and their right to say NO even to their husband. These gentlemen’s idea of consensual sex in a marriage seems to be still along the lines of “Go in the room and fix yourself ‘til I reach” also indicating that they’re incapable of thinking with their brain where relations with women are concerned. The act of rape, whether committed by a stranger or a husband, is still rape and in civilized societies constitutes
a harmful, illegal and immoral action perpetrated against another human being. These men are not only out of step with the rest of the civilized world on this matter but are also out of touch with the teachings of Our Lord which they so often misconstrue for their own selfish misogynistic purposes. IAN MABON Nassau, May 31, 2018
RONELLE KING Chairwoman, Committee for Gender Equality & The Rights of the Child Rights Bahamas, Nassau, June 7, 2018.
Archaic views of clergy EDITOR, The Tribune.
THE Baptist leaders’ assertion that the government’s proposed Marital Rape Bill “Tarnishes the sanctity of marriage” glaringly highlights the archaic mindset of many Bahamian men, including a sizable block of the local clergy. Obviously, most of them are of the opinion that married women have no rights where the sanctity of their own body
Time to pay for our lunch EDITOR, The Tribune.
Instead of piling blows on the Minister of Finance MILTON Friedman we should appreciate the was a Nobel prize winrationality of his policy. letters@tribunemedia.net ning economist famous for Alongside austerity he repeating a truism of life: Customs duties, VAT, and intends to continue making there ain’t no such thing as property taxes are a neces- wise investments to stimua free lunch. sary inconvenience for the late the economy. For decades, we gorged rich but a burden for those Government spendourselves on hand-outs, not so well off. Coming up ing has a multiplier effect. waste, corruption and slack- with a fairer, more progres- Every $100m in increased ness at the public Treasury. sive tax system, like income government spending could When we lived within our tax, is a far more important trigger $150m in total output means this could have debate than VAT alone. throughout the economy. been excused as youthful While the debate in the If you listen very carefully exuberance. But when we to what the Prime Minister House of Assembly will started borrowing money to has said in the last 12 months rightly be contentious, we finance the fête, surely we it is clear while not immedi- need a policy discussion on had to know that a day of ately solving the problem how to create employment reckoning would come. he is trying to mitigate the and increase real wages so That day is now. We burden of regressive taxes that the pain of the VAT spend more than we earn on poor people. increase is minimal and more and up to last year were Removing VAT from importantly is shared equally. doing a giddy dance towards breadbasket items, mediAggressive government a debt trap…a state of des- cines and some necessities action is what we need (and peration where debt is like shoes and clothing is an voted for). The tourism bigger than GDP and lend- attempt to insulate the poor golden goose is finally sputers force countries to draw from this burden. tering back to life. Tourism is their economic belt so tight But while Bahamians what we know and are pretty it cuts off their circulation. who shop at Payless shoe good at. We should build on With our national credit stores in the US will pay this growth and spread the rating hovering near junk- no VAT on their $15 pair opportunities throughout the status, the global rating of shoes, the well-to-do will Family Islands and not just agencies are watching with enjoy the same exemption limit it to Cable Beach and beady eyes to see how we on their $500 Prada slip- Paradise Island. get out of our financial mess. ons purchased at Neiman We can create our own The Minister of Finance Marcus. Such is the regres- Pirates of the Caribbean was faced with two budget sive nature of this waiver. themed Fantasy Island on choices – austerity or The government’s problem Grand Bahama to get them growth. He elected to is mostly messaging. If they back in the game big time. create a third lane in an can ever get their PR game Let us reinvent the Irish effort to try and have it straight, the government model of financial services both ways. He proposed could hammer home that that the Minister alluded to an austerity programme led their strategy is built on sound when he slashed VAT on airby public sector rationaliza- economic reasoning and has craft. There are thousands tion and fiscal constraint. both rhyme and rhythm. of corporate aircraft regisThen in a move to head off The Minister wants to use tered in the Cayman Islands dire financial consequences, some of his VAT haul to and Bermuda but very few he proposed a 4.5 percent spur growth by investing in here. We tax, they don’t. increase in the VAT rate. Although 99 percent of public goods like infrastrucBecause he is a politi- ture, business incubation these jets never land in cian, he crammed into the and start-ups. Cayman or Bermuda they budget a virtual smorgasThe first step to generating employ an army of locals in bord of waivers and favours more revenue without raising high paying jobs that make intended to sugar-coat the taxes is to improve the tax substantial contributions. bile of the austerity pill we collection system, eliminate The government should are being forced to swallow. fraud and waste in the public coax the private sector and Economic growth is the Treasury and tackle corrup- our Lyford Cay friends and promised reward for our tion. The Prime Minister friendly development partnational sacrifice. made this his mission from ners like China to establish All governments must tax day one in office but his gov- a $1 billion Venture Capito give us the kind of society ernment’s messaging doesn’t tal Fund to get Bahamians we want to live in. Protec- drive home these positives. into industries like agritive and health services cost Bahamians are notorious culture and fisheries that money as do defence, edu- and ingenious in thinking offer import substitution cation, infrastructure and up ways to avoid paying potential as well as lucraheritage parks. taxes. We will “tip” a tive export opportunities Every day, Bahami- public official $100 if said that earn foreign exchange. ans are forced to divvy up official can get us out of a The fund can help young their own family budget $50 duty, ticket, fee or fine. Bahamian entrepreneurs in to manage the trade-off We dispense with economic renewable energies and in between utility bills, mort- logic in our tax aversion. areas that generate goods gage and eating out. The For sure, there are alter- and services we can export. mortgage is fixed, the light natives to VAT to raise As to our current fiscal bill is variable. Dining out revenue for the govern- crisis, how about selling becomes the extravagance. ment. But the FNM has 30 percent of our stock in While we understand this flipped the PLP economic BTC to Bahamians. BTC’s principle at home, some of script which was to substi- revenues exceed that of the us don’t think they should tute borrowing for taxes. government. One third of shoulder the burden of That only got us a moun- BTC must be worth at least paying our national bills. as much as the $400m the tain of debt. That said, the central The evolving Minnis eco- Minister expects to raise issue for our economy is not nomic doctrine is a healthy from the VAT increase. VAT at 12 percent. We are mix of consumption, public Despite hard times comparatively one of the and private investment the offering will be lowest taxed jurisdictions and prudent government oversubscribed. in the region. However, we spending. This will grow tend to favour regressive the economy enabling us THE GRADUATE taxes that hit the poor and to earn our way out of this Nassau, the middle classes hard. fiscal purgatory. June 7, 2018
LETTERS
THE TRIBUNE
Friday, June 8, 2018, PAGE 5
Cooper hits out at FNM hypocrisy By RASHAD ROLLE Tribune Staff Reporter rrolle@tribunemedia.net EXUMA & Ragged Island MP Chester Cooper (PLP) ridiculed the Free National Movement and its intended value added tax hike yesterday, portraying a party that voted against VAT’s introduction as hypocritical. He said some of the government’s justifications for the VAT increase are inadequate. For instance, Prime Minister Dr Hubert Minnis’ claim the VAT hike is necessary to prevent currency devaluation is one parliamentarians should not repeat to their constituents, he said. “Surely members of this House, the prime minister among them, understand how our currency and foreign exchange regime work,” he said, “and that raising taxes has nothing to do with dollar devaluation. Indeed, the minister (of finance) acknowledged on page 67 of his communication that foreign reserves are almost double the international benchmark.” As for comparisons of the Bahamas to Barbados, a nation that is struggling financially, he said: “The only thing similar to us and Barbados in that context is the size of our population.” Mr Cooper said he opposes the VAT hike out of concern the business
community and public cannot adjust to accommodate it so soon and because there has been no peer reviewed research supporting the government’s revenue projections. He noted Dr Minnis once described VAT as “evil” and lamented that the Progressive Liberal Party imposed the tax on “our poor, our pensioners, our disposed and our middle class to suffer such a huge financial burden.” “The hypocrisy is boundless,” Mr Cooper said. “Laziness abounds. This administration has a credibility deficit. And it is little wonder that people no longer trust this administration. The credibility deficit is far larger than the budget deficit itself. “The FNM was against Bahamas Resolve Limited, now it supports Resolve, put more money into it than the previous administration. The FNM was against the so-called ‘Spy Bill’, now they love it. The FNM was against not consulting the Bahamian people on major developments, but I guess that was before they became the government and Oban came calling. And so is the case with VAT. What they once saw as a scourge, they now tout as a useful tool, yet they still don’t know how to properly use it.” Mr Cooper said the PLP will vote against the tax increases.
DEPUTY Leader of Opposition Chester Cooper.
Photo: Terrel W Carey/Tribune Staff
FNM CHAIRMAN: OUR BUDGET WILL CLEAR UP PLP MESS FREE National Movement Chairman Carl Culmer has said the Minnis administration’s 2018-2019 budget will “solve” the “financial mess” left behind by the Progressive Liberal Party. There has been intense backlash to the government’s plan to raise the value added tax rate to 12 percent as of July 1, with many complaining that it will hurt the poor and middle class and increase the cost of living. While he did not refer to the VAT increase, Mr Culmer focused on the areas from which VAT will be removed, saying the budget focuses on helping families “provide for their basic needs.” “Our country is still suffering the repercussions of the disastrous, fiscal mismanagement that took place under the woeful PLP when they held power,” Mr Culmer noted in a press release. “...The FNM government has set a course to get our fiscal house in order – no more having a government putting themselves over the people they serve, no more back room deals that benefit the chosen few over the rest of the country and no more of the blatant corruption that marked the days of the PLP government. Under the FNM government the country has been able to pay off $400m of that massive debt the PLP left, leaving us $360m more to wipe out,” the chairman said. “This new budget provides both for the payment
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of $174m towards reducing the burdensome debt while at the same time laying out a plan to finally retire it over the next several years. No longer are we operating as if we have a credit card that we can keep running it like the PLP did, simply assuming someone else will pay for their charges. Those days are over and people everywhere – both across the country and throughout the world are acknowledging the fiscally responsible steps we are taking. Investors and investments are coming back to The Bahamas and our economy is steadily gaining momentum. This budget will keep that momentum going in the right direction. “The FNM government’s new budget continues to put our country on the correct fiscal path. This budget focuses on helping families provide for their basic needs and necessities by removing the VAT tax that the PLP placed on breadbasket items, medicine, electric bills and so many other items Bahamians use every day. “The FNM is keeping its commitment to attacking the woeful fiscal mess
the PLP left behind and to put our fiscal house in order for the benefit of all Bahamians. The people deserve no less and they deserve to know where their sacrifices are going. We will not hide from those responsibilities and will work together with the people to get our fiscal house in order.” Last week, Minister of Finance Peter Turnquest outlined a list of changes to the country’s tax regime which would benefit thousands of families and businesses. Then came the price for paying for these measures: VAT nearly doubling from 7.5 percent to 12 percent. Despite touting the Minnis administration’s lowering of the wage bill and the purchase of goods and services by a projected $120m - along with a $351m deficit reduction - the deputy prime minister dropped his VAT bombshell, justifying the hike by saying there was an urgent need to pay off a “mountain” of arrears and unbudgeted commitments totalling some $360m left behind by the former administration. The
government also moved a resolution last week for a loan of $187,233,623 to defray expenditure in the 2018-2019 estimates of revenue and expenditure. Mr Turnquest attempted to soften the blow of the higher VAT rate by unveiling VAT free breadbasket items, duty reductions and exemptions. “Effective August 1, we are eliminating VAT on all breadbasket items, with the exception of sugar, as sugar will – for health reasons – be removed from the list of breadbasket items,” he said. These items include butter, cooking oil, mayonnaise, grits, cheese, corned beef, evaporated milk, margarine, rice, flour, tomato
YOUR
paste, baby cereal, soups, broths, powdered detergents and mustard among other things. VAT also will be eliminated on medicines and residential insurance. The tax also will be waived on residential electricity and water bills at or under $200. The customs personal travel exemption also will be increased from $300 to $500 per person twice each year. Government is also eliminating duties on solar kits upon application to the Ministry of Finance. The duty on aeroplanes and helicopters is also being eliminated. Mr Turnquest said this is in an effort to build an aeroplane registry industry.
CHOICE FOR THE FAMILY WWW.FACEBOOK.COM/JOYFM1019
PAGE 6, Friday, June 8, 2018
THE TRIBUNE
Pathologist testifies over police shooting of teenager By NICO SCAVELLA Tribune Staff Reporter nscavella@tribunemedia.net A FORENSIC pathologist yesterday confirmed that the purported sequence of events surrounding the shooting death of a teenager by a police officer in Yellow Elder Gardens five years ago corresponded with the two gunshot wounds the victim received. Dr Caryn Sands said Sergeant Antoine Hamilton’s in-court demonstration of what took place when he shot and killed Antonio Duncanson in October 15, 2013, can be supported by the respective paths the bullets travelled after they penetrated the 18-year-old’s body. Prior to her saying as much, Dr Sands confirmed that Duncanson suffered two gunshot wounds as a result of the shooting —one in the head and one in his right thigh. According to Dr Sands, one bullet entered the left side of his head, more towards the front, and exited on the right side, with the bullet travelling in a slightly downward pattern. Dr Sands also said there was evidence of close range fire on the skin surrounding the entry wound, suggesting that the barrel of Sgt Hamilton’s gun was between two to three feet away from Duncanson’s head when he
fired the shot. Concerning the shot in Duncanson’s right thigh, Dr Sands said the bullet entered the inner part of the teenager’s upper right thigh, but did not exit his body. Instead, the bullet was recovered in Duncanson’s hip, just above the entrance wound. Based on the information she received around the time she conducted the autopsy, Duncanson had died on the way to the hospital despite medical intervention. Sgt Hamilton, in questioning Dr Sands on her testimony, decided to give her an illustration of the events that took place on the date in question, enlisting the assistance of the court orderly to execute his demonstration. Sgt Hamilton placed the court orderly in front of him, explaining that on the date in question, he was chasing a particular suspect, purportedly Duncanson. After a while, Sgt Hamilton said the suspect glanced back and noticed that Sgt Hamilton was right on his tail and closing in quick, causing the suspect to reach to his right, rear waist for a firearm. At that point, Sgt Hamilton acknowledged that the suspect’s back was facing him, thus meaning that he was not an immediate threat. However, the officer said
the suspect subsequently took the gun from his waist, and “put one in the chamber” before turning to his left and ultimately around to face the officer, the gun trained on him. At that point, Sgt Hamilton said he fired one shot at the suspect’s right leg, in an attempt to prevent him from firing at him. However, he said the suspect did not falter and continued to aim at him, forcing him to fire one shot at his head. Sgt Hamilton then asked Dr Sands that if during the autopsy she conducted on Duncanson, she noted any gunshot wounds on the teenager’s back that would suggest he shot him from behind. Dr Sands said no. Sgt Hamilton then asked Dr Sands that based on the autopsy she conducted on Duncanson and her experience, if the trajectory of the bullet that travelled through the deceased’s upper right thigh could have been sustained in a manner similar to what was illustrated in his demonstration. Dr Sands replied by saying the scenario he gave correlated with the wound on Duncanson’s inner thigh, as no one standing still, much less directly facing a shooter, would likely receive such an injury upon being shot. Additionally, Dr Sands said the wound, more specifically the trajectory the
bullet travelled, suggested that the victim was in motion or that his leg was bent in some way to expose the inner portion of his right thigh. Dr Sands also confirmed that while the wound in his head was interesting, the trajectory of the bullet also matched up with the scenario Sgt Hamilton gave. However, Dr Sands stressed that when conducting the autopsy, she did not know the manner in which Duncanson was shot or which shot preceded the other. She also stated that neither gunshot was “immediately fatal,” but said they were indeed “traumatic,” particularly the one to Duncanson’s head, as that one was “concussive” and may have caused him to lose consciousness. Dr Sands’ testimony came during an inquest to investigate and determine the circumstances surrounding Duncanson’s death. According to the evidence previously led during the inquest, Sgt Hamilton was one of two officers, the other being Reserve Superintendent Christopher Pennerman, who was asked to assist in the apprehension of an “individual of interest” who was suspected of being in possession of a firearm. Around 1.50pm on the date in question, the
three officers of “Charlie Delta 10,” one of whom was former Police Constable Carey, received certain information about two males suspected of being in possession of a firearm. As a result of the information they received, the former officer said his unit went to Yellow Elder Gardens and conducted a mobile surveillance of the area in an unmarked police vehicle. While doing so, former P/C Carey said he observed the man dressed in orange brandishing a chrome handgun, which he subsequently placed in his waistband. Upon seeing this, former P/C Carey said he contacted police control room for backup. The crew of “Alpha Echo 3,” led by Sgt Hamilton and Reserve Supt Pennerman arrived in the area a short while later, after which former P/C Carey said he guided them towards where the two suspects were. When Reserve Supt Pennerman took the witness stand, he said both he and Sgt Hamilton were led to the intersection of Seymour Street and Lightbourne Avenue, where the crew of Charlie Delta 10 pointed out two men walking north along Seymour Street. One of them wore an orange shirt and dark-coloured pants and orange and blue Nike sneakers, he said.
The other wore a green Heineken shirt, black pants and sneakers. As he and Sgt Hamilton approached the two men in their police vehicle, Reserve Supt Pennerman said both fled in separate directions; the man in the orange shirt ran past the car and north along Seymour Street and onto Old Cedar Street while the other one, whom former P/C Carey said was Jaquan Rolle, ran south. Reserve Supt Pennerman said Sgt Hamilton, who was driving, got out of the car and immediately gave chase. Reserve Supt Pennerman said he then hopped in the driver’s seat and moved the car to a secure location before also giving chase. Upon reaching Old Cedar Street, Reserve Supt Pennerman said the man in the orange shirt turned left onto a dirt road and pulled a handgun from his waist. In fear of their lives, Res Supt Pennerman said Sgt Hamilton drew his service weapon and fired three shots at the suspect, who subsequently fell back on the ground. During previous proceedings, Sgt Hamilton openly apologised to Duncanson’s grandmother, Theresa Duncanson, for having to killer her grandson. However, he maintained that “It was either my life or his.” The case continues.
RBDF HOLDS MAJOR EXERCISE THE Royal Bahamas Defence Force will be hosting the largest military training exercise of its kind this month. Tradewinds 2018 is an annual regional military training exercise that will be held in the Bahamas from June 14 to 21. This year’s exercise will focus on countering transnational organised crime in the region. The main objective of the highly regarded military event is to foster training for security forces that is “tailored for the region by the region.” The annual exercise is sponsored by the United States Southern Command. This year’s Tradewinds will consist of 22 partner nations from the Caribbean region, the wider Americas and Western Europe. Additionally, the exercise will consist of over 800 troops from various Caribbean nations that are expected to put their military training to test.
THE Royal Bahamas Defence Force will be hosting the largest military training exercise of its kind, Tradewinds 2018, this month. Phase one of the Tradewinds exercise will take place in St Kitts and Nevis beginning June 3 and culminates on June 12. This preliminary training
will prepare forces for the final training and implementation phase in the Bahamas. This final phase will take place from June 14 to 21 and will consist of
simulated terrorist attacks on New Providence. During the training exercise, a military presence comprising of land and sea will be visible in New
Providence. Phase zero of the training commenced on May 28. The training is to prepare the troops for phases one and two of the exercise.
Photo: Eric Rose/BIS Tradewinds 2017 was held in Barbados and Trinidad and Tobago from June 6 to 17 of that year. The Bahamas last hosted Tradewinds in 2009.
POLICE INVESTIGATING MOTIVE BEHIND FATAL SHOOTING By RICARDO WELLS Tribune Staff Reporter rwells@tribunemedia.net POLICE yesterday said they are following several leads into a shooting that left a man dead. Assistant Commissioner of Police Clayton Fernander, the officer in charge of criminal investigations, yesterday said officers are sifting through various reports and claims as they look to identify a motive for the shooting. It has been reported the incident may have stemmed from an
attempted armed robbery. ACP Fernander said officers were on the ground in southwest New Providence speaking to residents and business operators, looking to determine what transpired in the lead up to the shooting. “There are some reports out there, we are looking at everything,” ACP Fernander said when contacted yesterday. We don’t have a motive as of yet, but we do believe we will very soon. I have officers on the ground in that area and they are asking questions as we look
to put this thing together.” He added: “I suspect that we will have something in the coming days; that is my intention and hope.” The incident, which occurred on Wednesday night outside of a bar at the intersection of Carmichael and Bacardi Roads, marked the country’s 39th homicide of the year, according to The Tribune’s records. Police have not yet identified the victim, but The Tribune understands he is Santonas Jonas. According to police, Jonas was accosted by a
gunman shortly after he pulled up to the Carmichael Road establishment soon after 9pm. The armed assailant opened fire, striking Jonas in the head before fleeing the scene in an unknown direction. Paramedics were called and attempted to revive Jonas, but were unsuccessful. He was pronounced dead at the scene. Anyone with information on this or any other crimes is asked to call police at 919 or Crime Stoppers at 328-TIPS.
BID TO RAISE FUNDS FOR CRASH VICTIM’S FAMILY By RASHAD ROLLE Tribune Staff Reporter rrolle@tribunemedia.net A GOFUNDME account has been launched to support the family of one of the three men killed in a plane crash on Eleuthera earlier this week. The American men were identified as Scott Dawson, Todd Crawford and Danny McKnight. Their deaths are being
investigated by the Air Accident Investigation Department of the Department of Civil Aviation. On the GoFundMe page, the family of Mr Dawson wrote: “Scott Dawson was on his way home to his family Tuesday afternoon after a brief fishing trip to Eleuthera, Bahamas, when the plane he was a passenger on suffered an engine failure shortly after takeoff and crashed into a heavily
wooded area. He was with two of his closest friends, Todd Crawford and Danny McKnight. There were no survivors. All three brethren were elders in the north Spartanburg, SC, congregation of Jehovah Witnesses. “Scott was a beloved father, husband, and son; as well as a spiritual blessing to the congregation…His family deeply appreciates all the love and support they have received during this
time. Scott was the main provider for the household and was self employed. This fundraiser is intended to help stabilize the family during this great loss.” The deceased men were travelling on a Cessna 421 aircraft. A porter who took their coolers and bags to their plane, Chris Johnson, described them as “cool guys” who frequently visited the island to fish.
THE TRIBUNE
Friday, June 8, 2018, PAGE 7
GAMING BOARD WORKERS TESTED FOR TUBERCULOSIS
from page one
work to the hospital, and she was hospitalised,” Mr Ferguson said. “They really don’t have the exact prognosis, but they speculated that it may have been (tuberculosis).” On Monday, officials
from the Ministry of Health conducted Mantoux tests to screen for tuberculosis on the staff, Mr Ferguson reported. “Today (Thursday), they would have come in, and they would have done the readings on those Mantouxs. “And the relevant
persons who they may have been concerned about, they would have sent them to certain areas to have particular things done.” Mr Ferguson clarified that these individuals require further testing. “After (health officials) would have read the Mantouxs, if they said that
New osmosis plant being bought for Ragged Island By MORGAN ADDERLEY Tribune Staff Reporter madderley@tribunemedia.net THE Water and Sewerage Corporation is in the process of procuring a solarised reverse osmosis plant for Ragged Island, WSC Chairman Adrian Gibson told The Tribune yesterday. The corporation hopes to obtain and possibly install the plant within the next month. In a statement released on Wednesday, WSC described it as a “fully selfcontained, solarised RO Plant that we are entering talks to purchase, own and operate (in-house) for locations such as Ragged Island.” Mr Gibson told The Tribune that WSC is “moving expeditiously” to purchase the plant. “I expect that we will procure (and possibly install) the plant within the next 15 to 30 days,” he added. The corporation also has a “newly minted” reverse osmosis unit that “will have carriage of administering contracts and operating certain plants going forward,” Wednesday’s statement said. “The reverse osmosis unit is a new department/ unit within WSC. That unit will be a roving unit as well, one that can and will be deployed both here in Nassau and ready to go to any Family Island where we have RO installations,” Mr Gibson said. “It’s one of two newly formed rapid response units. The other is a NRW (non-revenue water) unit that we are currently formulating. “We have also developed an accounts receivables strategy wherein the outstanding $45 million in receivables will be pursued by an active roving team, supplemented by disconnection exercises,” he added. Mr Gibson also provided ten major functions of the RO Unit. He said it will “ensure proper contract administration and the submission of weekly, monthly and annual operations reports” and “take over many of the existing plants once those agreements expire.” The unit will also “manage and respond” to all RO needs throughout the country, “mitigate against breaches of contract by any current operator,” and “ensure quality control, maintenance and compliance,” among other things. Furthermore, the unit will “assist the newly formed legal services department with eliminating
ADRIAN GIBSON MP inconsistencies and inad- for critical needs.” The temequacies in the agreements porary plant only produced of current water supplier’s 700 gallons of water per day contracts.” (as opposed to 3,000 galThe unit’s other duties lons), due to the reduced will be “to enforce and island population in the apply penalties to all exist- aftermath of the island ing RO operators once being declared uninhabitviolations have been iden- able by NEMA. tified, investigated and On January 2, the corproven” and “ensure that poration invited the public WSC, in its business deal- for a new reverse osmosis ings with RO operators, desalination plant. will find itself in a win-win “All bidders were position.” especially invited to proTo the last point, Mr vide sustainable green Gibson said: “Currently, alternatives, as per the that is not the case. Unfor- Governments mandate.” tunately, WSC carried most Of the 11 companies of the operational expenses, that expressed interest, provides the land, drills the two submitted bids— The wells, pays the electricity, Restoration Ragged Island even provides the mainte- Association and Watermaknance support.... there will ers/SCYC. According to be greater parity, a staunch the corporation, the latter private sector business cul- was the “more responture will be enforced at sive,” though neither WSC.” “provided sustainable or In Wednesday’s state- green options.” ment, WSC also clarified In the interim, the Resits “record on efforts” in toration Ragged Island Ragged Island, addressing Association lobbied for various reports on access to permission to temporarily water on the island and the install a plant. plants presently installed. This plant was installed “The corporation is cur- at the end of May, The Tribrently in the process of une reported last month. procuring a long-term soluThe corporation also tion for Ragged Island,” the expressed concern that an statement read. employee of SCYC was “This effort is being coor- “in the media agitating for dinated with the Ministry of increased water supply, Works, NEMA (National when it is known that only Emergency Management basic water supplies are Agency), BPL (Bahamas being provided, at this Power and Light), and the time.” central government, with “In other newspaper a view to implementing articles, WSC observed a sustainable, long-term commentary by another solution, inclusive of the entity, which asserted that consideration a more envi- the corporation took two ronmentally friendly site. months to approve the RO “In the interim two sys- plant; when in fact, the tems are now operable and original proposal lacked water is being provided for the required specifications, critical needs.” and could not be proven to The original water plant meet the basic standards for in Duncan Town, Ragged water, to be consumed, by Island was destroyed the public,” the statement by Hurricane Irma last continued. September. “WSC takes seriously According to the state- its responsibility to proment, an emergency reverse vide safe water supplies, as osmosis unit was provided limited quality water, will by Watermakers (WM)/ always be a better option Staniel Cay Yacht Club than an abundance of water (SCYC), to “provide water of an unacceptable quality.”
PAPA JOHN’S TO OPEN IN THE BAHAMAS WITH Papa John’s set to open its doors this summer, Papa John’s Bahamas CEO John F Wilson is as excited about the company’s commitment to the Bahamian community, as he is about making great pizza consistent with the Papa John’s global standard. “I am delighted to have been able to partner with a great company like Papa
John’s whose commitment to communities have been consistently recognised… “As we prepare to make a better pizza, we here at Papa John’s Bahamas are also looking forward to helping make a better Bahamas,” he said. “As a proud Bahamian businessman, my team and I are keenly aware of the issues that affect our communities.
We are therefore looking forward to engaging with our local community centre leaders; social programmes and institutions. “At Papa John’s Bahamas, we are committed to making a difference, with not only making pizza with the right blend of ingredients, but also making a better Bahamian community.”
persons may have been even more exposed, then what they would have done is probably recommended them to have chest x-rays and so on and so forth. “So that is where we are and that is what we know at this time. And (Mr Tynes) is committed to keeping me abreast of what transpires
in that regard,” Mr Ferguson said. Starting today, Centreville House also will be checked for mould, due to concerns that a respiratory illness could have caused the woman employee to be hospitalised. “They are checking the building for mould. And if
it is necessary to have a particular remediation exercise, then the (Gaming) Board will just have to go ahead and have that done,” Mr Ferguson said. “But (Mr Tynes) wants to check for the mould to ensure that they don’t have a case of mould in the building that may be affecting persons in that area.”
‘The Bahamas’ own street philosopher’
PAGE 8, Friday, June 8, 2018
THE TRIBUNE
HAS Prime Minister Dr Hubert Minnis slyly let his deputy, Peter Turnquest, take the fire for the VAT rise? Everybody’s blaming Peter - but where’s the PM?
Photo: Shawn Hanna/Tribune Staff
What a time to be alive T
HE year 2018 is turning out to be quite an eye opening experience for Bahamian voters who overwhelmingly brought the current Minnis administration to power in 2017. It’s a time to witness the same leaders in Prime Minister Dr Hubert Minnis and Deputy Prime Minister K Peter Turnquest, who both voted against the implementation of VAT in 2014 (with the former going as far as to say, “Increasing taxes is a lazy way out... when you don’t want to think, you just tax”) turn around and “pimp slap” Bahamians with a 60 percent increase. It’s a time to witness our current Minister of Health, Dr Duane Sands, backtrack on his island-hopping “healthier diet” tour to defend “corned beef and grits” while fruits and vegetables are nowhere to be found on the breadbasket items list. It’s a time when Bahamians are wondering how “processing and garment manufacturing equipment” as well as “fabric softener” somehow got on the duty free list while baby bottle warmers and sterilisers still come in at a 45 percent duty rate. It’s a time to hear our Minister of Finance and DPM basically say “if you can afford an expensive car you can afford to pay duty out every orifice” while simultaneously defending and exempting persons able to afford airplanes. To quote the rapper Future, “What a time to be alive!”
DEATH AND TAXES
Benjamin Franklin got it right when he said, “...in this world nothing can be said to be certain, except death and taxes”. More and more, it seems death from taxes brings a particular certainty with it, too. No sooner had DPM K Peter Turnquest announce a VAT hike from 7.5 percent to an astounding 12 percent rate before we heard industry insiders cry foul; Leonard Sands, the Bahamian Contractors Association’s (BCA) president, said the VAT rate hike will force 30-40 percent of Bahamian contractors out of business, essentially killing off half that sector. The “numbers boys”, facing a separate and additional set of increases (more on that shortly), also said the decision by the government to raise taxes on Web Shop gaming was a “death warrant” to that industry. Now, I will be frank with you; after regularly chronicling the many money shenanigans and wasteful spending by the last Christie administration, I knew this “V-Day” was coming. You can’t “ball til ya fall” like the last government did without consequences. We are at junk bond status. We’re (sort of) off the
EU blacklist “by the skin of our teet”. We have bills, bills, and more bills. So what did this FNM government do? What “lazy” leaders always do in a financial jamraise taxes. I don’t like it, but I’m not surprised. And I’m also no economist or Certified Public Accountant or even especially gifted at math, but I know we have many smart Bahamians in this country who are. And when I hear my old schoolmate and current president of the Bahamas Institute of Chartered Accountants (BICA), Gowon Bowe, break down why a 10 percent rate increase would have been more “palatable’ to the Bahamian people, I get it. When I hear former Minister of State for Finance, and current talk show host Zhivargo Laing question the rushy three-year time frame to balance the budget, I get it. Surely the government should have consulted more local economic experts before making this move. This decision to raise VAT to 12 percent (in less than a month!) is going to put many Bahamian families and businesses who are on financial life support sixfeet under, a fact I’m sure is not lost on the minister of finance who indeed hinted at a period of economic contraction during a recent interview. Now, the main question is how many casualties will “The People’s Budget” claim?
How many businesses will fall as collateral damage in the FNM’s quest to quickly fix “The People’s Finances”? Bahamians already feel like “tings tuff” at 7.5 percent. It’s about to get tougher at 12 percent. Bowe is quoted in The Nassau Guardian saying, “Economics is not a science; it’s an art. And more importantly, economics is built on consumer sentiment, so that as positive sentiments are exhibited, then people react in a positive way...” I would add that politics is also an art, and the way the Budget has been prepared, presented and defended in the media shows a shocking lack of creativity. I see no maestro’s hand at work in this budget, but (to no one’s surprise) Dr Minnis has managed to paint his whole administration into a corner.
THE ARTFUL DODGER
Speaking of the good doctor, “where he gone?” From the day Dr Minnis decided to forgo the usual convention of giving himself (as prime minister) the ministerial portfolio of finance, I recognised he had made a cunning move. Finance is the most vexing ministry in the whole government. Fast forward to today and whose name are Bahamians “cussin ta high heaven”? Why, it’s none other than the man who announced VAT would rise - DPM and Minister of Finance K Peter Turnquest. Now we all know that PM Minnis had to sign off on this VAT increase. We all know Dr. Minnis and the rest of the Cabinet agree with this increase. We all know that the back-benchers, who were mostly elected at Minnis’ prodding, were left out the
loop. With 35 elected FNMs, 17 of whom are in Cabinet, the other 18 “voices of the people” on the government side were excluded from the VAT decision altogether. I wonder why? Not that it makes a difference. With the exceptions of Frederick McAlpine (MPPineridge) and Reece Chipman (MP-Centreville), the rest of the back-benchers will likely toe the party line. Which probably explains why their “two cents” was wholly unnecessary; when you act like a place holder, you get treated as decoration. But why isn’t Dr Minnis “out in dese streets” defending the biggest VAT tax rate in the country’s history himself? Where is the big press conference? Where is the press secretary, for that matter? We have had four persons serve as prime minister over the past 45 years. Over the same period, we’ve had eight persons serve as deputy prime minister. I’m not saying Turnquest could end up on the chopping block because of this VAT fiasco but I am saying the numbers don’t look good. But like I said, I’m not great at math. Still, if I were Peter, I would be less bullish and more bearish in these markets. Dr. Minnis allegedly told a Cabinet minister that he would “rather lose an election than lose a country” in a “private” conversation that minister then conveniently relayed to the media. Nice soundbite. But the real question is whether the PM would rather lose a deputy than lose an election?
SIN (CITY) TAX
The “numbers boys” are
about to be hit with massive tax increase, and boy “dey hot!” Bahamians, on the other hand, are divided; a majority, around 75 percent, think they are getting what they deserve for being greedy and “sneaking” in the back door to legitimacy. A minority, around 25 percent, feel they are being discriminated against for being young, successful, black Bahamian entrepreneurs. The “numbers boys” are crying about an industry “death warrant” and the loss of 2000 jobs yet I don’t think this government really cares about their tears. Truth is, the government stays “grinning up” with Oban Energies (who promised a quarter of the employment that web shops provide) but have shown scornful contempt in their loaded rhetoric against web shop owners. Clearly, they “ain’t on no numbers boys run”. The web shop owners say the increase would force the industry back underground. News flash! We are living in 2018, where the “Spy Bill” has passed Parliament and a certain neighbouring country may (or may not) still be recording every call, text and WhatsApp message; so essentially there is no “underground”. This is all shaping up to be quite the standoff. Why did the Deputy PM admit he doesn’t know the difference between a lottery and gaming? Why are web shops shunned while the major casinos (which also offer gambling) embraced? Why do I suspect that if these “boys” are run out of town there are other “respected” businessmen ready to step into the gap? Find out on next week’s episode of A Comic’s View.
READERS REACT TO WARNING OF JOB LOSSES AFTER the web shop industry warned that 2,000 jobs will be lost and 75 per cent of its locations will close due to tax hikes, readers gave their responses on tribune242.com. DDK said: “They will find other jobs if and when the private sector recovers from its near annihilation due to the proliferation of gaming shops. Do The Bahamas a favour and close all your doors.” Proudloudandfnm had this suggestion: “Sounds like the perfect opportunity to start a national lottery...” There was this from ThisIsOurs: “Okay fine, if the fear is that each has to reduce its costs, remove the moratorium and let more small operators in and with all the location closures, enforce the zoning requirements and control the number of locations.”
Realfreethinker was sceptical: “So they announce the increased taxes last week and in less than a week a ‘study’ was done to determine that ‘2,000’ jobs will be lost? What kind of hatchet job study could produce that info so quickly? Based on the 10 year expert’s info the gov will only collect $35mil dollars on a $400mil a year industry, less than 10 percent – what is he complaining about?” In other VAT news, Finance Minister K Peter Turnquest revealed the value added tax exemption ceiling on electricity bills
has been raised to $200 – prompting this response from Well_mudda_take_sic: “When the Christie-led administration misguidedly implemented the regressive VAT at 7.5 percent, they were at least praised for keeping zero rated and exempt items to an absolute minimum, thereby creating a much more collection efficient and easy to administer VAT system, with low cost ease in auditing compliance by all VAT registrants. But now we see Turnquest and Minnis upsetting that applecart in an effort to hand out candy in the form of VAT exemptions and zero rated VAT items that will add enormous complexity, inefficiency, leakages and noncompliance issues to what was otherwise a well designed taxation system, albeit a very misguided, regressive one.”
ThisIsOurs said: “As was pointed out, all they have to do to compensate for that is raise the fuel surcharge. What should concern you more is that in three days they’ve so casually backpedalled on multiple items, excluding this, reducing that. It must be ripping their revenue assumptions to shreds. It further shows how little thought went into the original projections, they had no idea of the impact of introducing the tax and no idea of the impact of picking it apart piece by piece.” But there was some positivity from Hrysippus: “This is great news for all those homes that can afford to invest in solar electricity generation.” • Don’t miss your chance to join the debate on tribune242.com.
PAGE 10, Friday, June 8, 2018
THE TRIBUNE
PICTURED from left, Dr Mayuri Deka, UB professor and Rotarian; Cheryl Carey, director, scholarship and financial aid; Peter Mitchell, director, development; Dr Rodney D Smith, president, UB; Barry Rassin, scholarship patron and Rotary International president-elect; Esther Rassin; Hope A Sealey, president, Rotary Club of East Nassau; Joanne Smith, director, East Nassau Rotary Club Charitable Trust; Diane Philips, CEO, Diane Philips and Associates and Constance Gibson, chair, Rotary Club East Nassau Community Service.
Bahamas Humane Society Bahamas Humane Society. - President of the Bahamas Humane Society, Kim Aranha and shelter manager Chief Inspector Percy Grant recently met
the Commissioner of Police and his team at the East Street headquarters. Commissioner Ferguson pledged his and his force’s support to the society. This meeting is the beginning of a wider cooperation between the Bahamas Humane Society and the RBPF.
Horticultural Society of The Bahmas Horticultural Society of The Bahamas. - The annual summer plant sale held by the Horticultural Society of The Bahamas will be held in Camperdown tomorrow
from 9am to 1pm at Soursop Street. Travelling east on Prince Charles Drive, turn left on Quail Roost Ridge (Seagrapes Shopping Centre corner turning opposite Wendy’s and Domino’s sign). At the T-junction at the end of Quail Roost Ridge, turn right on Camperdown Road then take the first right which is Cumelemi, then take first left to Soursop St. The house is the fourth on the left. Founded by the late Sara Bardelmeier in 1983, the Horticulatural Society of The Bahamas is home to many gardeners in The Bahamas. They will offer a wide variety of plants which will include bromeliads, ferns, orchids, succulents, palms, vegetables and other plants including tillandsias. Prices will be unbelievable, starting at $5. Replenish your garden or start a garden with the vast variety of plants that will be available.
RCWN president-elect Pedro Delaney, president Chris Dorsett, Reggie Saunders, Ruth Beneby, Mr Smith (for Hope Smith), Herbert Bain, past president Caldwell Pratt (committee chairman) and Ricardo Griffin (background) following the announcement of the winners of the Rotary Club of West Nassau raffle winners.
Rotary Club of East Nassau Rotary Club of East Nassau. - The Rotary Club of East Nassau in commemoration of Barry Rassin leading the 1.2 million Rotarians as their president in 2018-2019, held a Hollywood Glam Party and auction to raise funds for a scholarship to the University of The Bahamas. The Barry Rassin Scholarship, valued at $10,000, will be divided between two students. A $6,000 allocation will go to a full-time student in any degree programme for a year; and a Family Island student will be given $4,000 to cover living expenses for one year. UB president Dr. Rodney D Smith expressed his gratitude to Mr Rassin and the Rotary Club of East Nassau for this initiative highlighting the benefits it will have for the recipients. “This is the beginning of an excellent relationship and I know that the students who will benefit from it will be deeply appreciative.” Pictured from left, Dr Mayuri Deka, UB professor
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REGGIE Saunders accepting a $1,000 Esso voucher for Kamala Saunders and, below, Ruth Beneby receiveing a 55in flat screen TV.
and Rotarian; Cheryl Carey, director, scholarship and financial aid; Peter Mitchell, director, development; Dr Rodney D Smith, president, UB; Barry Rassin, scholarship patron and Rotary International presidentelect; Esther Rassin; Hope A Sealey, president, Rotary Club of East Nassau; Joanne Smith, director, East Nassau Rotary Club Charitable Trust; Diane Philips, CEO, Diane Philips and Associates and Constance Gibson, chair, Rotary Club East Nassau Community Service.
Rotary Club of East Nassau Rotary Club of West Nassu. - The Rotary Club of West Nassau awarded the lucky winners of its Annual Spring Raffle. The drawing was held on Saturday, June 2, at Super Value Cable Beach. The winners were: 1st - Bahama Subs and Salads (ticket 001500), $10,000 Super Value groceries.
2nd - Kamala Saunders (001164), $1,000 Esso gas voucher. 3rd - Taneshia Gibson (001582), $1,000 BPL voucher. 4th - Ruth Beneby (005577), 55in flat screen TV. 5th - Herbert Bain (008325), laptop. 6th - Ophelia Munnings (008070), $500 phone and card package. 7th - Jocelyn Smith (008939) $500, Beneby’s Auto. 8th - Hope Smith (002925) , $250 AID gift certificate. 9th - Ricardo Griffin (006631), dinner for two at Poop Deck West. The raffle is the main fundraising event for Rotary Club of West Nassau. Proceeds of the Spring Raffle fund go to BTVI scholarships, MUNS (Model United Nations), disaster relief, Gambier Back To School event, Persis Rodgers Home, UB scholarships, support of Rotaract, Interact & EarlyAct.
KIM Aranha and shelter manager Chief Inspector Percy Grant, of the Bahamas Humane Society, meeting senior police officers.
THE TRIBUNE
Friday, June 8, 2018, PAGE 11
Drilling finds more murky groundwater in Grand Bahama By DENISE MAYCOCK Tribune Freeport Reporter dmaycock@tribunemedia.net MURKY groundwater samples were obtained on Wednesday during another drilling exercise at Pinder’s Point, Grand Bahama – an area residents believe is affected by industrial pollution. The exercise was undertaken by the Grand Bahama Environmental Association, which believes the groundwater is contaminated in that settlement. After nearly an hour of drilling down some 14ft in the ground, no clear water emerged. The GBEA said it contacted the Department of Environmental Health Services to be present at the drilling but no one attended because a week’s notice was needed as the inspector is based in Nassau. Shuffel Hepburn, GBEA executive, collected the
samples which the organisation intends to send the US for testing. It is the third drilling exercise conducted in the Pinder’s Point community on property owned by the late Sherwin Cooper. The first was conducted at Rev Michael Pinder’s yard where black water samples were allegedly obtained, and the second was at Lowell Pinder’s yard where orange-cloudy water samples were reportedly obtained. “We are trying to see to what extent is the oil underground in this area,” Mr Hepburn said, noting that none of the water samples obtained during the exercises were clear. “No water was clear, it was very smelly, and that’s how it is today. We could smell the hydrocarbons, the oil in the water; we had drilled at 14ft when we started to get that,” he told reporters.
Mr Hepburn said the group contacted DEHS, but was informed they needed to give advance notice. “They said they need to give him advance notice when we do this exercise,” he said. GBEA will continue to conduct other drilling exercises, which cost the organisation anywhere from $600 to $700, as well as additional funds to send the samples abroad for testing. “We will continue with this process… investigating the effects that these industrial companies have had in these communities,” pledged Mr Hepburn. Residents of Pinder’s Point/Lewis Yard and other nearby communities surrounding the industrial plants have complained of chemical emissions and water contamination for the past 30 years. They have also complained of health issues.
SHUFFEL Hepburn holds water samples taken from a drilling exercise in Grand Bahama. Photo: Denise Maycock/Tribune Staff
SPOTLIGHT ON YOUTH CULTURE AT FREEPORT EVENT By DENISE MAYCOCK Tribune Freeport Reporter dmaycock@tribunemedia.net
THE Ministry of Youth Sports and Culture will launch the first in a series of events known as Youth Outreach & Culture in The Park this weekend at the Gladstone “Moon” McPhee Park in Freeport. Carla Brown-Roker, coordinator of youth programmes in Grand Bahama, announced that
the event would take place tomorrow starting at 3pm at the park on Sgt Major Road. She said there would be live entertainment and performances, food, refreshments, a bouncing castle and fun activities planned. She said that the event allows three components of the ministry to reach out to the Grand Bahama community. Mrs Brown-Roker said
that by using the parks, ministry officials could interact directly with parents, young people and recruit unattached youth. The HOYTES (Helping Our Youth Through Education and Sports) organisation will be in attendance teaching basketball skills and drills to the youth. She said culture would be a prominent feature as well, with many schools, churches
and community groups showcasing their talent on stage through music and dance performances. Also performing will be Legends Marching Band, the Defence Force Rangers drill team as well as demonstrations from the Royal Bahamas Police Fire and Canine Units. “We want to ensure that every youth is engaged in wholesome activities during the summer months,” Mrs Brown-
Roker said. Also in attendance will be the Royal Bahamas Police Force Band, the City of Freeport Council, the YMCA, Bahamas National Trust, Sir Charles Hayward Library, churches and representatives from summer camps. Representatives of postsecondary institutions also will be on hand, including CELEARN, Pineyard Steel and Total Education Centre to recruit and advise young
persons in the programmes they offer. Young people also will be able to get information about the government’s job readiness programmes. Mrs Brown-Roker said community nurses would be providing free glucose and blood pressure and BMI tests. The second event will be held in Pinedale, Eight Mile Rock.
STUDENTS ARE HONOURED FOR A SUCCESSFUL YEAR AS the school year comes to a close, 13 students from Doris Johnson Senior High School were rewarded for their achievements. Last year, BTC pledged its support to the Student of the Month programme where it recognised the outstanding achievements of students. The programme recognises students at various academic levels that have demonstrated a commitment to academic growth and social development. Monthly, one student from the tenth, eleventh, and twelfth grade level is selected as the BTC Student of the Month. Each deserving student receives a $100 cash prize along with
a mobile device from BTC. Principal James Clarke said this programme has had a positive effect on the school since its inception in September 2017. Principal Clarke said, “So far we have seen where collectively our students have improved their GPA straight across the board from grades ten through grade twelve.” Being a star student is not easy, but these students pushed passed the odds and today are celebrated. For some of the students, this reward from BTC affords them their first mobile device. Tenth grader Kadeisha Adderley said she struggled with her GPA due to distraction from peers.
STUDENT HUB REBORN
PAGE 12, Friday, June 8, 2018
THE TRIBUNE
THE University of The Bahamas yesterday recommissioned the Portia M Smith Building. Cutting the ribbon alongside university president Dr Rodney Smith was Kiwani Smith, son of the late Portia Smith, his daughter and other family members and university staff. The building is a one-stop student services hub, which the university said serves as a reminder of the hard work and dedication Smith had for students and the institution at large. Photos: Shawn Hanna/Tribune Staff