06162016 business

THURSDAY, JUNE 16, 2016

business@tribunemedia.net

Resolve sale woes threaten ‘bail-out’ payment to BOB

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMAS Resolve’s ability to service the $100 million worth of bonds that plugged the hole in Bank of the Bahamas’ balance sheet will “soon” be impaired unless it can sell its distressed properties, Tribune Business was told yesterday.

James Smith, the special purpose vehicle’s (SPV) chairman, said it had encountered several obstacles in its efforts to sell the real estate and other assets it inherited from the troubled BISX-listed bank in October 2014.

The former Central Bank governor revealed that some of the 13 ‘bad borrowers’, whose loans and related collateral were transferred to Bahamas Resolve, were “denying” the SPV and its managers access to their properties.

As a result, Mr Smith said Bahamas Resolve and its managers, the Deloitte See PG B5

$100m bonds to be serviced by SPV asset sales But nothing sold since January 2015 Some bad borrowers ‘denying access’ to Resolve

THE Bahamas Financial Services Board’s (BFSB) chief executive yesterday echoed a former Cabinet minister in warning that “the very survival of the sector is under threat”, and demanded urgent reforms.

Tanya McCartney, addressing a Bahamas Institute of Financial Services (BIFS) seminar, called on for this nation to demonstrate its commitment to the new automatic tax information exchange/Common Reporting Standard (CRS) by passing legislation to bring this into effect by fall 2016.

Even though the Bahamas does not have to im-

THE Bahamian financial services industry believes “it is an opportune time” to determine whether this nation should pursue double taxation agreements as a means to attract international business, it was revealed yesterday.

Tanya McCartney, the Bahamas Financial Services Board’s (BFSB) chief executive, told Tribune Business that the industry wanted “a dialogue” over a business model that has been effective in attracting business to jurisdictions such as Barbados.

Asked whether the Bahamas should pursue a ‘low tax’, as opposed to the current ‘no tax’ model, Ms McCartney replied: “Industry is of the view that

AN ex-MP has denied participating in an alleged conspiracy to force out the previous Hard Rock Cafe (Nassau) franchisee, and allow ‘friends’ of the restaurant chain’s senior executives to take over the business.

Marvin Pinder, father of current Elizabeth MP, Ryan Pinder, alleged in a May 20, 2016, affidavit that his only motivation in taking over the Nassau franchise from

Gov’t felt ‘not right time’, despite ongoing outages

JAMES SMITH

Urges auto tax exchange laws passed by fall 2016 Permanent residency ‘cannot take two years’ McCartney address echoes Ryan Pinder’s concerns plement the new global standard until 2018, Ms McCartney called on this nation to “expedite” implementation so that it could detect - and manage - the See PG B4

BFSB chief: Good time for double tax model discussions

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

HRCC (Bahamas) was “to save the many Bahamian jobs at risk”.

He and his company, Thirty 3 Ltd, at their “own volition and initiative”, then hired Paul Zar and Anders Vestergaard to operate the franchise, and its retail/restaurant components, given that he lacked the necessary expertise.

Mr Pinder’s affidavit is designed to rebut claims by the previous franchisee, HRCC (Bahamas), and its principals, Keith and Kevin Doyle, that Hard Rock and several of its senior execu-

tives manufactured the loss of their business.

Their lawsuit, in middle Florida district federal court, alleged that their departure was engineered to allow Messrs Zar and Vestergaard, to take over running the Nassau-based Bahamas franchise.

The Doyles are claiming that Mr Zar is a “long-time personal friend” of Tom Perez, Hard Rock’s director of business development and franchise operations, who is also named as a defendant in the action.

See PG B10

Pinder sought director’s friend at ‘own volition’ Acted ‘to save many Bahamian jobs at risk’ Warned previous franchise’s closure may ‘explode’

Gray admits: ‘We put the brakes on’ BPL rate increase

BFSB chief: Industry’s ‘survival under threat’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Former MP refutes Hard Rock ‘conspiracy’ claim

Sector urges bond, endowment residency reform Urges Cabinet to move recommendations forward

it is an opportune time for us to have real discussions on DTAs (double taxation agreements).

“This will create a environment for international business in the fullest sense.

We need to have dialogue on this so that an informed decision can be made either way.”

See PG B6

Concerns expressed over $600m bond refinance Fears investors getting too little for risk assumed

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A CABINET Minister yesterday admitted that the Government had “put the brakes on” Bahamas Power & Light’s (BPL) proposed base rate increase, as fresh doubts emerged over the energy monopoly’s planned $600 million refinancing.

V Alfred Gray, minister of agriculture and fisheries, told the House of Assembly that the Government believed it was “not the right See PG B7

$4.15 $4.20 $4.21

$4.21 V ALFRED GRAY

PAGE 2, Thursday, June 16, 2016

THE TRIBUNE

Bank’s $15.5m profit is ‘undeniably good’

WILLIAM B SANDS

COMMONWEALTH Bank produced an “undeniably good” $15.5 million in net earnings for the 2016 first quarter, its chairman has told shareholders.

William Sands told the BISX-listed institution’s annual general meeting (AGM) that it continued to deliver strong financial performances despite the negative economic climate.

“Despite the uncertainty

facing the country in 2016, the bank posted strong earnings of $15.5 million for the first quarter 2016, which is undeniably a very good result in this economy,” Mr Sands said.”

Commonwealth Bank now plans to introduce a chip-enabled VISA debit card and an online banking platform with vastly expanded capabilities, in a bid to boost efficiencies and

customer service.

The bank delivered its fourth year of annual profits greater than $50 million in 2015, and hit new highs in assets, share price and community donations.

“2015 was a record year for the bank and represented the fourth time in the bank’s history that profits exceeded $50 million, said Mr Sands. “That speaks to the quality of the management of your bank.”

Together with Ian A. Jennings, Commonwealth Bank’s pesident, he credited its conservative lending policy, prudent management of its credit portfolio and staff dedication as the driving forces in making it “the most successful public Bahamian company”.

Commonwealth Bank accounted for more than 30 per cent of all shares traded on the Bahamas International Securities Exchange (BISX) during the year, with the demand for stock

driving common shares price up from $7.84 at yearend December 31 to a record high of $9.30 on June 1. The bank paid out 68 per cent of net income, or $29.5 million, in shareholder dividends in 2015.

Total assets stood at more than $1.54 billion at 2015 year-end. Total profit was $57.8 million, an increase of more than 8 per cent over 2014. Gross revenues topped $152 million, up more than 9 per cent year over year.

Commonwealth Bank experienced just a 3.9 per cent impaired loan ratio, the lowest percentage in four years, compared to the industry-wide average of 14.8 per cent.

These figures were achieved despite economic challenges, coupled with an increase of more than 20 per cent in Business License fees and taxes to a total of $8 million for the year.

JULIAN FRANCIS

Brewery profits decline 35% on VAT absorption COMMONWEALTH Brewery endured a 35.2 per cent year-over-year decline in profitability in 2015, due to a tepid economy and its decision to absorb ValueAdded Tax (VAT) payments itself.

Reporting mixed financial results to shareholders at its annual general meeting (AGM), the BISX-listed brewer acknowledged that its bottom line dropped by $6.4 million - from $18.2 million to $11.8 million.

Apart from absorbing the 7.5 per cent VAT on all customer sales, Commonwealth Brewery’s results were also impacted by the fall-out from the Baha Mar impasse and price inventory corrections.

Despite the reduction in profitability, Hans Neven,its chief executive, said Commonwealth Brewery had used 2015 to take important strides in operations and marketing that will benefit shareholders in future years.

“I am filled with optimism about our company,” said Mr Neven. “That is because I feel the energy surging through every division of Commonwealth Brewery; from manufacturing to marketing, from wholesale distribution to retail sales, from corporate responsibility to sustainability.

“Throughout 2015, a year of changes and a year I would describe as nearly perfectly meeting the qualifications for disruptive innovation, we have strengthened operations, distribution and delivery, inventory evaluation and management, payment solutions and processes, and cemented relationships with customers, suppliers and communities.”

Commonwealth Brewery

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expanded from 51 stores on nine islands to 55 stores on 11 islands, and added more than 12 jobs last year. It currently employs 413 full-time workers.

The most noticeable changes came at the end of the year, as Commonwealth Brewery began the roll-out of its new branding, uniting all stores under its distinctive 700 Wines & Spirits umbrella.

The financial numbers were better elsewhere, as Commonwealth Brewery generated $123.5 million in revenues and $68 million in total assets during 2015. while remaining debt-free.

Revenue was relatively flat year-over-year, with the figures reflecting challenges and corrections, including a one-time adjustment that was described as paling in comparison to the strategic plans to take the company forward.

Julian Francis, Commonwealth Brewery’s chairman, called the results “particularly impressive” given that the maker of Kalik, and distributor of more than 200 brands, had invested heavily in inventory after being named a supplier of choice for Baha Mar, an expense it could not fully retrieve following the r resort project’s collapse in late June 2015, with its future still in limbo.

“Given the immediate stimulus and longer term support which this project had been expected to deliver to the economy including, of course, our sector, it is not an exaggeration to say that the impact of its delay has been wide-reaching and devastating,” said Mr Francis.

“In the midst of this, the worst hurricane ever to hit the southern Bahamas struck.”

He added that Commonwealth Brewery took a one-time $3.7 million loss adjustment “dating back a number of years relating to pricing anomalies”.

Since going public in 2011, Commonwealth Brewery has paid out $80 million in dividends, and its share price has climbed from $8.33 at the time of the initial public offering (IPO) to a high of $15.50 at year-end.

Some 75% of the shares are held by Heineken, with the remaining 25 per cent owned by Bahamian investors, including the National Insurance Board (NIB).

THE TRIBUNE

Thursday, June 16, 2016, PAGE 3

Minister sees advantage in CRS treatment of US

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net A FORMER financial services minister yesterday warned that it was “only a matter of time” before the US adopts the Common Reporting Standard (CRS) for automatic tax information exchange, throwing his support behind its listing as a “participating jurisdiction”.

Ryan Pinder, now a Graham, Thompson & Company partner, told a Bahamas Institute of Financial Services (BIFS) seminar: “It’s only a matter of time before CRS is adopted by the United States.”

He added that the CRS is “broader in scope” than the US Foreign Account Tax Compliance (FATCA) ini-

tiative, which is itself a form of automatic information exchange.

“The query is, from the Bahamas’ point of view, do we list the US as a participating jurisdiction or do we not, and that’s a determination that we would have to make as a government,” Mr Pinder said.

“Certainly, I support listing them as a participating jurisdiction. Anything that would differentiate us on a cross-border basis from Cayman and the BVI is good.”

The Cayman Islands and British Virgin Islands (BVI) have not listed the US as a participating jurisdiction.

US-based tax expert and attorney, Steve Cantor, said the US will probably adopt the common reporting standard (CRS) “one way or

the other”.

“People say that the US is the biggest tax haven there is because they don’t have ultimate beneficial ownership rules,” Mr Cantor said.

“There are a few reasons why the US is probably going to adopt CRS one way or the other. First and foremost, the US is going to get a lot of pressure next year when a lot of these [FATCA] IGAs are up for renewal, and some will argue that they are providing the US with information, and so the US should provide them with information.”

“The Commissioner of the Internal Revenue Servicesaid that he is in favour of the US adoption of the CRS,” said Mr Cantor, adding that the issue would ultimately have to be passed through and dealt with by

Congress.

The CRS is the OECD’s initiative for a global automatic exchange of tax information standard. Currently, more than 90 jurisdictions have committed to the OECD Multilateral Convention on Mutual Administrative Assistance in tax matters, and over 60 have signed a Multilateral Competent Authority Agreement that permits participating countries to enter into agreements that provide for the automatic exchange of information.

The US has not agreed to adopt the CRS, instead continuing to rely on FATCA and its intergovernmental agreements (IGAs) to achieve its automatic exchange of information objectives.

Tourism moves to halt 85% earnings leakage

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net TOURISM executives are hoping to “arrest” the leakage of 85 per cent of the industry’s revenues by better connecting Bahamian entrepreneurs/producers with wholesale purchasers in the sector.

The Ministry of Tourism’s director-general, Joy Jibrilu, announcing the Tru Tru Bahamian Marketplace that will be held at the Atlantis Grand Ballroom from June 17-18, said it would allow 100 Bahamian small and medium-sized enterprises to meet and do business with key decision makers in the tourism sector.

“This public-private sector collaboration aims to assist the development of the tourism supply chain and other linkages, and to support business-to-business trade between Bahamian entrepreneurs and potential partners in the tourism sector,” Ms Jibrilu said.

“In this very first marketplace event, 100 Bahamian

small and medium-sized enterprises - from supply chains including agricultural products, durable goods, food products and consumables, to creative industries - will meet and do business with key decision makers in the tourism sector, including hotels, restaurants, cruise line representatives, tour operators and event planners.”

Mrs Jibrilu said 85 cents of every tourist $1 earned ultimately flows back out of the Bahamas. One way to curb this trend, she argued, was allowing Bahamian entrepreneurs to sell their goods directly to the hotels and cruise lines.

“This is expected to become an annual event that will give Bahamian producers the opportunity to show and expand their business initiatives by enjoying improved access to wholesale purchasers and facilitators in the tourism sector,” Ms Jibrilu said.

“By so doing the marketplace will support the sustainable socio-economic development of the Baha-

JOY JIBRILU mas by helping to arrest the unnecessary leakage of tourism revenues from the country. We believe that tourism can do more than just provide jobs.”

Nina Maynard, a Bahamas Hotel and Tourism Association (BHTA) executive, said noted that within the next year if not sooner, a web portal will be launched

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to allow vendors to sell their products directly to buyers.

“We’re building the portal so that a buyer can buy from Bahamian entrepreneurs online. We want it to become a real e-commerce site. We are making sure that we step into the 21st century,” said Ms Maynard.

Operator moves away from web shop ‘stigma’

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

ONE gaming house operator is seeking to distance itself from the ‘web shop’ label and perceived stigma associated with it, explaining that it has been certified as a casino with a full suite of products.

Gavin Newball, cofounder of GLK Ltd, which trades as A Sure Win with 42 locations throughout the Bahamas, told Tribune Business the firm had “made history” with its recent Gaming Laboratories International (GLI) certification.

“We want to move away from the stigma of a web shop. We are no longer a web shop,” he said.

“We made history and now we are certified like every other casino, and we should be known as casinos and move away from the stigma of web shops.

“We are the first gaming house operator to complete the full testing and certification process with GLI, and to have our gaming system authorised by the Gaming Board.”

Gaming Laboratories International (GLI), the online systems and iGaming tester, serves more than 475 jurisdictions worldwide, fulfilling their testing and certification needs.

“Being the first operator in the Bahamas to have been certified by them is a major accomplishment for us,” said Leander Brice, GLK co-founder.

“It was a long and tedious process, but it is great to be named among the likes of MGM and Caesars. These are companies that they work for and certify, and now we are on the international level in terms of the quality of products we offer.”

PAGE 4, Thursday, June 16, 2016

BFSB chief: Industry’s ‘survival under threat’ From pg B1 risks to its financial services industry.

And, in an address that almost mirrored the 20162017 Budget debate contribution by former financial services minister, Ryan Pinder, she called on the Government to overhaul the permanent residency regime approvals regime and ‘ease of doing business’ to enable the industry to flourish.

“It should not take two years to process a permanent residency application,” Ms McCartney said.

“We believe that if properly managed, Immigration policy and process reform will yield results that give maximum return for the

Bahamas and for Bahamians. Failure to take action in this regard could very well be fatal to the financial services sector.

“The reality is that the very survival of the sector is under threat. This has implications for the overall economy but, closer to home, it has implications for each of us on a very personal and direct level who work within the sector. It certainly has grave implications for our middle class.

Hence, decisive action must be taken.”

The fact that senior private, and formerly public, sector officials are speaking in unison on both the gravity of the situation facing the Bahamian financial

TANYA MCCARTNEY services industry, and the necessary reform strategy, highlights the importance of rapid reform and action.

Ms McCartney acknowledged that many were “pondering the viability of the sector for the long-term”, given the multiple challenges and regulatory pressures it is facing, such as tax

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transparency/information exchange and correspondent banking ‘de-risking’.

Both she and Mr Pinder have this week reiterated that long gone are the days when the Bahamas could sit back, and rely on its ‘bank secrecy’ and ‘no tax’ platforms to bring business to it.

The new international regulatory platform has eliminated these former competitive advantages, forcing the Bahamas and other international financial centres (IFCs) to compete directly with onshore centres such as London and New York.

Emphasising that the Bahamas needed to “differentiate” itself from rivals, and give high net worth clients a compelling reason to use it, Ms McCartney said this nation needed to prove it was fulfilling its international commitments.

“As we manage regulatory risks, therefore, we must be proactive and take decisive and demonstrative steps so as not to be seen as laggards only paying lip service to the international community,” the BFSB chief executive said.

“Our efficiency must be the differentiator in this context. We have committed to implementing Automatic Exchange of Information by 2018 using a bilateral approach, and there are some concrete steps that must be taken to ensure that we manage the risks associated with this new regulatory regime.”

Ms McCartney said the Bahamas “needs” the legislation and regulation to fa-

cilitate the implementation of automatic tax information exchange “in place” by year-end 2016, and ideally passed by the fall.

She added that the Bahamas also needed to assess jurisdictions it would automatically exchange tax information with, and ensure there were “strict safeguards on the disclosure and use of data”, plus put in place the necessary IT systems.

Emphasising that the financial services industry was willing to assist the Government in drafting the necessary legislation, Ms McCartney said: “We must expedite the implementation of the action plan to meet our deadline of 2018.

“We know what needs to be done, and the private sector is committed and stands ready to work with government, and to invest time and resources to ensure that as a jurisdiction we mitigate against the risks associated with automatic exchange of information and the common reporting standard, and a failure to implement in a timely manner.”

Ms McCartney then indicated that she, too, sees the Bahamas’ financial services future lies in getting high ne worth clients to follow their assets to the Bahamas, and using this nation as their primary domicile to legitimately escape high tax rates in their home countries.

Backing Mr Pinder’s call for the Bahamas to start issuing Tax Residency Certificates to prove its clients’ compliance, Ms McCartney said this country needed to expand the permanent resi-

THE TRIBUNE dency requirements beyond real estate investments, and also grant such status with the right to work in the applicant’s own business.

“BFSB and its members strongly believe that enhancing our Immigration policy and processes will inure for the benefit of the sector. We must examine our permanent residency (PR) regime,” she said.

“Importantly, there is an opportunity to improve the process for handling of Immigration matters. This is tied to the overall need for improvement in the area of ‘ease of doing business’ to improve our overall ratings. Hence, BFSB is formulating recommendations as to how processes may be refined for improved efficiency.”

Ms McCartney added that the Bahamas needed to become a ‘Centre of Excellence’ for developing human capital, and said: “We need a business-friendly environment where applications, license requests and other processes that require government interface are processed in a timely manner, and requirements are streamlined.

“This may be addressed quite simply by having government agencies speaking to/interfacing with each other. The slip in the World Bank ratings evidences the urgency of this.

“We must ardently take the requisite steps to manage the risks that threaten the very survival of the financial services sector, as the Bahamian economy and the lives of countless professionals depends on it.”

THE TRIBUNE

Thursday, June 16, 2016, PAGE 5

Houston Chamber meet with GB counterparts

Resolve sale woes threaten ‘bail-out’ payment to BOB From pg B1 & Touche accounting firm, have been unable to properly assess the current ‘market value’ of these assets - prohibiting it from releasing accurate financial information on its affairs to the public.

He then revealed for the first time that the proceeds from Bahamas Resolve’s ‘distressed asset’ sales are intended to both finance its ongoing operations and pay the interest due on the bonds received by Bank of the Bahamas as part of its $100 million ‘bail-out’.

Mr Smith said Bahamas Resolve has to-date been self-funding, having received the proceeds from one real estate sale that occurred in January 2015, which the bank had already set in motion.

He indicated, though, that Bahamas Resolve was not close to sealing any other deals, despite coming close on several occasions. These sales, Mr Smith added, had been frustrated by the inability of potential buyers to obtain financing.

“Resolve needs to fund itself from the proceeds of sales,” he told Tribune Business. “One sale, in January 2015, had been completed, and the proceeds from it have been used up to now to handle any expenses the company undertakes.”

Mr Smith added that the bulk of Bahamas Resolve’s costs to-date had been the professional fees paid to Deloitte & Touche in return for its services as the SPV’s manager.

He declined to reveal how much the accounting firm has been paid, but acknowledged that the company’s cash balance was shrinking rapidly following a year without any distressed asset sales.

“It’s obviously dwindling, and replenishment can only come from another sale,” Mr Smith told Tribune Business. “Another sale is being frustrated by legal and other matters.

“One of our major contributions is the servicing of the bonds at Bank of the Bahamas. We’ve paid that so far from the proceeds [of the first sale], but unless we get another sale soon, we’re going to have to take a short-term facility and apply it until a sale comes through.”

Should such a scenario ultimately occur, Mr Smith said one option was for the Government to take over paying the interest on Bank of the Bahamas’ bonds temporarily, until a Bahamas Resolve asset sale was consummated.

The proceeds could then be used to repay the Government, he added, while another option was for Bank of the Bahamas “to hold off” on demanding its interest payments.

Mr Smith, though, acknowledged that this would “defeat the whole purpose of the SPV”, and impact a still-troubled bank that is struggling to survive and needs recapitalisation.

“Resolve itself is kind of an interim, medium-term measure to solve Bank of the Bahamas’ problems with the regulator, the Central Bank of the Bahamas, and give the Government breathing room as the majority shareholder to prepare a rescue plan for the bank going forward. Then

Resolve will disappear,” Mr Smith told Tribune Business.

The reference to the Central Bank alludes to noncompliance by Bank of the Bahamas with the former’s key minimum capital ratios, which was initially solved by the October 2014 ‘bail out’.

That saw a collective $45.2 million in ‘bad loans’, belonging to 13 delinquent borrowers, transferred to Bahamas Resolve, with the subsequent ‘hole’ in the bank’s balance sheet plugged by $100 million worth of government bonds.

Mr Smith, though, said that even if Bahamas Resolve were to sell its distressed assets for ‘market value’, there would still be a ‘hole’ at Bank of the Bahamas that the Government (Bahamian taxpayer) will have to fill.

“Quite frankly, given the valuations we have seen as to what we can expect, even if we sold all the properties going forward into the future, the Government has to deal with the gap [at Bank of the Bahamas] and get authorisation to fill that gap,” he told Tribune Business.

Mr Smith said Bahamas Resolve was being impeded in its efforts to determine the current ‘market value’ of its distressed assets, indicating that the collective worth was likely to be less than the $45.2 million assigned to them at the time of transfer.

“We kind of have to develop an opening valuation,” he said of Bahamas Resolve’s assets. “There’s always a difference between the book value of assets transferred to the company and market value.

“We have got recent valuations on a number of the properties, and doing as many as we can. We have a couple of properties where the owners are denying us access, so we’re unable to do the valuations.

“We have put in the hands of the lawyers, who are going to take legal action to allow access to the properties to get the valuation done.”

Mr Smith acknowledged that the legal process was “not easy”, and likely to be time-consuming, given that some of the 13 ‘bad borrowers’ had taken out previous actions against Bank of the Bahamas.

He added, though, that these issues are preventing Bahamas Resolve from disclosing its financial affairs to the public, as any report will be incomplete without the asset valuations.

Hubert Chipman, the St Anne’s MP, yesterday questioned in the House of Assembly when the audited financial statements for Bahamas Resolve will be published, and how it is financing its operations.

Mr Smith said Bahamas Resolve had initiated sales processes for all those properties to which it has clear title, but buyer financing woes were preventing the closure of any deals.

“There are any number of inquiries, going so far as to clinching a deal, but then funding becomes an issue,” he explained.

“All this is being done against the backdrop of an extremely tight mortgage market, where any number of foreclosures have been going on for six to seven years. It’s a very long, drawn out process.”

Photo/KEEN I MEDIA LTD

MEMBERS of the Greater Houston Black Chamber (GHBC) paid a courtesy call on the Grand Bahama Chamber of Commerce during a recent to discuss investment possibilities and networking opportunities on the island.

The meeting was a continuation of talks between the two parties stemming from the Grand Bahama Chamber of Commerce and Grand Bahama Port Authority’s trade mission to Houston in May. The visiting delegation comprises leaders in various industries, including industrial development and training, real estate development and manufacturing.

Pictured from L to R: Mick Holding, first vice president, Grand Bahama Chamber of Commerce; Andre Horn, president and chief executive, Industrial Welding Academy; Miranda Horn, vice-president, Industrial Welding Academy; Vernita Harris, chair emeritus, Greater Houston Black Chamber; Kevin D. Seymour, president, Grand Bahama Chamber of Commerce; Thomasine Johnson, president, En’terior Designs; George E. Johnson, president, George E. Johnson Development Company; and Mercynth Ferguson, executive director, Grand Bahama Chamber of Commerce.

PAGE 6, Thursday, June 16, 2016

BFSB chief: Good time for double tax model discussions From pg B1 Some in the financial services industry, believe the Bahamas should switch to a ‘low tax’, double taxation agreement model on the grounds that this would help it shed the ‘tax haven’ image, and improve perceptions of this nation as a compliant jurisdiction facilitating legitimate business.

Paul Moss, head of Dominion Management Services, has been among the leading proponents of such reforms, arguing that legitimate high net worth and institutional (business and corporate) clients would

not object to - and may even want to - pay income-related taxes at low rates in the Bahamas.

Double taxation treaties with other nations would facilitate such business, as they would ensure that companies and individuals were taxed only in the Bahamas - and at lower rates - on profits and capital they wanted to repatriate back home.

Barbados has become the ‘Caribbean jurisdiction of choice’ for Canadianowned companies, for instance, because its ‘double tax’ agreement with Canada allows their income to be

taxed only at its lower rates.

Ms McCartney, meanwhile, said the financial services industry had recommended that the Government expand the qualifying criteria for permanent residency status to investments in Bahamian debt and in endowments that boost education and the environment.

She explained of the proposals: “It presents an opportunity to attract new sources of investments to the country; such as investment in a long-term bond to qualify for permanent residency.

“This bond could pay a lower rate of interest than what we are currently paying on external debt. We can further national development goals by allowing

investment in an endowment for the purposes of permanent residency - a substantial endowment to support the roll-out of the University of the Bahamas, or environmental or energy improvements.

“In addition, it will attract new business to the sector if we were able to introduce a class of certified tax residents. Moreover, if we grant permanent residence with a right to work in one’s own business, provided that a prescribed amount of jobs are created and maintained, this would be attractive and help to address the current unemployment levels.”

These proposals have been on the drawing board for at least two years, and Ms McCartney told a Bahamas Institute of Financial Services (BIFS) seminar yesterday: “The private sector in collaboration with the Minister of Financial Services, who is fully engaged, has made recommendations to the Government with respect to these Immigration matters and the need to improve the process.

“We trust that Cabinet will move forward with those recommendations, in the best interest of the financial services sector, for its long-term growth and survival.”

Ms McCartney said the Bahamian financial services industry was “at an extremely critical juncture that coincides with the time line for implementation of automatic exchange of information by 2018”.

She added that it was “imperative that we move expeditiously” to implement this and have legislation passed before the end of 2016, and called for the Bahamas to address Immigration, the ‘ease of doing’ business and create “a business-friendly environment across all sectors” to drive financial services growth.

“As the World Bank survey bears out, we need to be more business friendly,” Ms McCartney told Tribune Business. “We are in agreement with the Bahamas Chamber of Commerce on this.

“If we were able to improve the ease of doing

THE TRIBUNE business, it will create an environment for more Bahamian ownership in the financial services sector and attract other investment to the sector.

“Further, the experience of clients and international financial institutions will align with the expectations set when promoting the jurisdiction.”

She added: “We need to fully and effectively embrace the use of technology to achieve this.

“Further we must use technology to innovate service delivery methods for an improved client experience. In addition, we must find ways to create linkages between the large commercial ventures/developments and financial services.

“We also need to review our national brand and ask: What are we known for? What do we want to be known for? How are we perceived, making refinements or improvements where necessary to address this.”

THE TRIBUNE

Thursday, June 16, 2016, PAGE 7

Gray admits: ‘We put the brakes on’ BPL rate increase From pg B1 time” for an increase in energy costs, given the state of the economy and fact light bills were relatively low at present.

“The Government stopped that process as it felt it was not the right time to have any increase after light bills have been going down,” Mr Gray revealed during his contribution to the 2016-2017 Budget debate.

“That’s what we want.

They need to keep it going down, not up.”

He added of BPL and its manager, PowerSecure: “I know they wanted to do it [the base rate increase]. The Government put the brakes on it, as the Government does not believe that should be happening at this time.”

Mr Gray said Prime Minister Perry Christie had not received enough praise for his “power of conviction to say to the Board of Directors: ‘Not now. Sorry, it’s not happening right now’.”

Mr Gray, though, displayed a somewhat tenuous knowledge of the Government’s recently-enacted energy reforms, frequently referring to BPL as BEC, and mixing the two entities up.

The Bahamas Electricity Corporation (BEC) is now the parent of BPL, which is the operator for all its electricity assets. And Mr Gray also seemed confused when he referred to PowerSecure, BPL’s manager, co-mingling its name with references to BPL and BEC. Some observers might also argue that Mr Gray and the Christie administration have a ‘tenuous grip’ on energy economics and BPL/ BEC’s near bankrupt state, which was further highlighted by the company’s confirmation that it had implemented a two-hour ‘rolling blackout’ across New Providence yesterday, with generation capacity unable to meet demand.

The proposed increase to the ‘base rate’ portion of customers’ BPL bills, which is supposed to cover its operating expenses, and generate cash flow and profit, was said to be intended to finance investment in equipment and infrastructure upgrades - exactly what is required to deal with the frequent outages and ‘blackouts’.

Bahamian households and businesses will seemingly have to endure the BEC legacy ‘status quo’ of outages and blackouts for months to come, as a result of the Government “putting the brakes on”, and the consistent $20-$30 million annual losses that are fuelling the lack of maintenance and upkeep.

Meanwhile, light bills have reduced due to factors outside BPL/BEC’s control, namely the dramatic drop in global oil prices, which are starting to increase again.

With global oil prices still at relatively low levels, some observers believe now is the ‘best’ time for a BPL base rate increase, and some are likely to view the Government’s refusal as influenced by the upcoming general election, given the negative impact it would have on voters.

Dionisio D’Aguilar, a former BEC Board member under the last Ingraham administration, told Tribune Business this week that a BPL ‘base rate’ increase was “probably inevitable” given the utility’s dire operational and financial position.

“The Government is going to have to let BPL operate as an ongoing concern that is making enough money to pay its expenses, upkeep its equipment, do routine maintenance and make

a profit,” Mr D’Aguilar said.

“If BPL has to raise rates by a certain amount to get to that point, and the Government is worried about the impact on poor people, the Government should subsidise the poor people.

It has nothing to do with BPL. The light bill is the light bill.”

While acknowledging that BPL needed to “justify” any rate increase, Mr D’Aguilar reiterated: “The Government needs to get out of the business of telling BPL how to operate.”

The ‘base rate’ episode raises further questions about how political interference at BPL and how much autonomy PowerSecure really possesses.

Tribune Business understands, though, that the management agreement between the Government and PowerSecure reserved the right for the Christie administration “to determine” all “fees, rates and charges” associated with BPL. Mr Gray’s admission came as financial analysts yesterday expressed misgivings over the structure of the proposed $600 million Rate Reduction Bond (RRB), which will refinance BEC’s legacy bond and bank debt, plus pension and environmental liabilities, and any severance costs.

Speaking on condition of anonymity, they said potential investors - both Bahamian and foreign - are being offered too little compensation for the risk involved in investing in the RRB. Tribune Business has seen documents showing that the Government intends to offer investors in the $100-$150 million Bahamian dollar component an interest coupon “equivalent” to the 4.75 per cent Bahamian Prime rate, which is almost two percentage points lower than what is paid to BEC’s existing bondholders.

Deepak Bhatnagar, BPL’s executive director and a key adviser to the Prime Minister, told a March 10, 2016, meeting of existing bondholders about the Government’s RRB plans.

Confirming that it would be a total $600 million placement in the Bahamas, the UK, the US and Canada, the meeting minutes said: “Mr Bhatnagar advised that the new Rate Reduction Bonds are likely to be for a term of not less than 25 years.

“The Bahamian dollar bonds will be at a rate equivalent to the Prime rate, and the US dollar bonds will be tied to the Bahamas’ sovereign bonds.”

Tribune Business understands that arranging, and placing, the RRB has involved far more work than the Government originally planned, and that it has only recently asked Bahamasbased investment houses to submit proposals to act as the issue’s financial adviser/ placement agent.

However, one financial analyst said the 4.75 per cent Bahamian Prime coupon was not enough to compensate investors for the risk created by BEC’s bankrupt financial state and operating woes.

They explained, speaking on condition of anonymity, that investors were being asked to ‘take a punt’ on PowerSecure being able to resolve BPL’s multiple problems, which is by no means guaranteed.

RRB investors are guaranteed the ‘first share’ of BPL’s revenues by the law passed to facilitate the issue, but the analyst said energy bills would likely have to rise to pay the associated debt servicing costs.

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This, they argued, would only exacerbate the difficulties many households and businesses are already experiencing in paying their utility bills, resulting in further cut-offs and BPL’s cash flow shrinking even more as accounts receivables rise.

“The fundamentals have to be fixed and/or in the process of being fixed before a bond will work,” an investment banker told Tribune Business.

“Most people realise that 90 per cent of the problem (cost, reliability, efficiency) with BEC is generation. If the cost doesn’t come down and stay down, there is no real long-term solution that helps the people and allows a rate reduction bond to flourish.”

They added: “For a rate reduction bond to work, generation equipment and fuel mix has to be fixed.

The bond can’t realistically be funded unless there is certainty that the rates are down when it is funded, and will continue to stay down relative to where BEC has historically been price wise.

“Additionally, for a rate reduction bond to work, BEC has to be out of the generation business. They are in the position they are today for a variety of reasons but one of the biggest is that politics priorities prevail and drives maintenance.

“When BEC says, for example, they need to spend an extra $40 million this year on maintenance ,and that it will require a rate increase, the Government says no because it will unsettle voters. You cannot run a generation business that way. “ Until the RRB takes care of BEC’s legacy debt, BPL and PowerSecure’s hands are tied financially in terms of turning the energy monopoly around, and obtain-

ing new financing - estimated at $450 million - to overhaul its infrastructure.

Some believe BPL was seeking the ‘base rate’ rise because it cannot afford to wait for the RRB, and/or because it needs the extra revenue to make the bond attractive to investors.

“We’ve got to believe they’re between a rock and a hard place,” Mr D’Aguilar told Tribune Business.

“You can’t effect a lot of the necessary changes without money.

“The devil will be in the details, and some people will likely moan about a

rate increase, but there’s a lot of legacy debt that has to be paid off.”

The ongoing power outages, meanwhile, will also raise questions about what BPL is doing about acquiring rental generation capacity to boost its power output.

PAGE 10, Thursday, June 16, 2016

Former MP refutes Hard Rock ‘conspiracy’ claim From pg B1 Mr Pinder, who is also the Hard Rock Cafe (Nassau) franchise’s landlord, said he “became aware” that the Doyles were “closing or imminently closing” the Charlotte-Street based franchise in the third week of March 2014.

Upon hearing the news, Mr Pinder said he immediately spoke with Robert Frankel, “who I knew to be an additional owner of, or creditor of”, HRCC (Bahamas)”.

Mr Frankel, who allegedly leased the Hard Rock Cafe franchise’s equipment to the Doyles, was the person who put the former Bahamian MP in touch with Mr Perez.

“My principal interest in reaching out to Mr Perez was to save the many Bahamian jobs at risk because of the imminent closing of the Nassau Hard Rock Cafe,” Mr Pinder alleged.

“Within a few months, I was awarded the Hard Rock Cafe franchise for Nassau through my company, Thirty 3 Ltd.

“To assist with the operation of this business, I asked Paul Zar and Anders Vestergaard, who were experienced in operating themed restaurants in the Caribbean, and solicited their assistance. My involvement of Mr Zar and Mr Vestergaard was done of my own volition and initiative.”

Mr Pinder exhibited the March 26, 2014, e-mail he sent to Mr Perez, in which he offered to rescue the 40 Bahamian jobs jeopardised

by Hard Rock (Nassau’s) closing.

Stating that he knew “the business landscape of the Bahamas intimately’, Mr Pinder told Mr Perez: “I am interested in saving the jobs at the cafe, and would assume the Hard Rock franchise subject to your approval) in an effort to do so.

“The new operator would be a new and independent operator, with absolutely no connection with HRCC. “I am advised that the closing by HRCC is imminent; therefore it is important that we act quickly before the situation explodes.”

Mr Pinder’s account was also backed by a May 24, 2016, affidavit from Mr Vestergaard, who also denied that he ‘conspired’ with Mr Perez to “assume ownership or operation of the Hard Rock Cafe in Nassau, and also conspired to sell assets belonging to the former Hard Rock franchisee”.

“I deny Mr Doyle’s accusations and state that they are falsely made,” Mr Vestergaard alleged, stating that he owned the entity that now managed the business on behalf of Mr Pinder and Thirty 3 Ltd. He and Mr Zar own a Montego Bay, Jamaicabased company called Viking Productions, which touts its involvement in the Caribbean with other brands, including Sharkeez and Harley Davidson. They also operate Hard Rock Cafe locations in Jamaica and Grand Cayman.

Former Hard Rock employees, speaking on condition of anonymity, told Tribune Business that when they were summoned back following the Thirty 3 Ltd takeover, all their dealings were with Messrs Zar and Vestergaard, rather than Mr Pinder.

CAREER OPPORTUNITY Comfort Suites Paradise Island is seeking qualified persons to apply for the following positions:

Engineering Manager: Essential •

•

•

Job Functions: Working knowledge of systems such as electrical, plumbing, heater, solar panels, mechanical, heating and air condition units.

Must be proficient in Preventive Maintenance Programs.

Perform preventative maintenance on a scheduled basis and complete work orders as necessary; keep accurate records of PM’s on all rooms and equipment and prepare relevant reports.

Have the ability to test, examine, and maintain all hotel’s safety systems to ensure they are 100% operational at all times.

Position Requirements: • Five years experience as a Supervisor or Manager in the Maintenance Department of a hotel

Engineering Can-Fix-It Essential • •

•

Job Functions: Repair minor electrical issues, appliances, and minor plumbing.

Must be able to repair drywall, flooring, carpentry, masonry and do remodeling jobs.

General knowledge to repair heating and cooling units, painting the exterior and pressure washing.

Position Requirements: • Must have three years of hands on experience in the maintenance field.

• Experience in the Hotel Industry will be a plus.

Electrician Essential •

•

• •

Job Functions: Assemble, install, test, and maintain electrical or electronic wiring, equipment, appliances, apparatus, and fixtures, using hand tools and power tools.

Diagnose malfunctioning systems, apparatus and components, using test equipment and hand tools, to locate the cause of breakdown and correct the problem.

Connect wires to circuit breakers, transformers, or other components.

Inspect electrical systems, equipment, and components to identify hazards, defects, and the need for adjustment or repair, and to ensure compliance with codes.

Position Requirements: • Completion of a technical school program.

• Three years experience in the field of electrical engineering.

Sales Coordinator Essential •

• • Position • • •

Job Functions: Assist with the preparation of sales reports that will assist revenue management; groups, corporate and leisure clients.

Prepare all written correspondence and follow up with clients.

Oversee all set up and break down of functions

Requirements: Three years experience at a major company or hotel in a similar position; Proficiency in Microsoft Word and Excel spreadsheets; The ability to assist with Sales Functions

Reservations Agent Essential •

• • • Position • • •

Job Functions: Receives reservations from various sources: Reservation Terminal, telephone, correspondence, and guests at front desk.

Handles arrangements for groups - i.e., rooming lists and pre-registration.

Keeps block arrangements secure for group bookings for Sales Department.

Maintains all pertinent information with regard to Travel Agent Commissions.

Requirements: Three years experience at a major company or hotel in a similar position; Working knowledge of hotel’s reservation system.

General knowledge of office and telephone procedures.

Guest Service Representative: Essential • •

•

Job Functions: Register guests and assign rooms.

Thoroughly understands and adheres to proper credit, cheque-cashing and cash-handling policies and procedures.

Coordinate guestroom maintenance work with the engineering and maintenance department.

Position Requirements: • High school graduate or equivalent.

• Previous hotel-related experience desired.

Storekeeper/Receiver: Essential •

•

• Position • • •

Job Functions: Receive and inspect all incoming materials and reconcile with purchase orders.

Process and distribute documentation with purchase orders; reports, documents and tracks damages and discrepancies on orders received.

Ensure all goods received are of good quality.

Requirements: High School Diploma required.

Two years experience as a Storekeeper required.

Must be computer literate.

Competitive salary and benefits package are commensurate with experience.

Interested persons should submit their resume to jmcdonald@comfortsuitespi.com

Hard Rock Cafe International and Mr Perez, together with fellow former executives, Hamish Dodds and Michael Beacham, are using the testimony from Mr Pinder and Mr Vestergaard to support their bid for summary judgment from the Florida court, which seeks to throw out the Doyles’ claim.

Seeking to debunk the Doyles’ claim that there was a conspiracy to terminate their franchise and hand it to someone else, the judgment motion alleged: “There was no agreement or understanding, express, implied or otherwise, by and between Mr Dodds, Mr Beacham and Mr Perez or any of them to ‘drive HRCC out of business’ or otherwise to ‘wrongfully seize the franchise’ or to ‘re-sell such franchises [sic] to a third party at a profit’.

“In March of 2014, Mr Pinder contacted Tom Perez to secure rights to the Nassau Hard Rock Cafe franchise. Mr Pinder then independently obtained the services of Paul Zar and Anders Vestergaard to assist in running the business.

Eventually, Mr Pinder, though his company Thirty 3 Ltd, became the new Nassau franchisee.”

The summary judgment motion also denied the Doyles’ claims that merchandise belonging to HRCC (Bahamas) was diverted to Mr Zar, or that

the company’s assets were sold or used in the new business.

“Any assets left in place at HRCC (Bahamas)’s premises in Nassau upon the liquidation did not belong to HRCC – they belonged to HRCC (Bahamas) or Bob Frankel, who was the lessor for the equipment there,” the summary judgment bid alleged.

“None of the individual defendants, Mr Dodds or Mr Beacham, expected to or received any personal financial gain from the termination of HRCC’s franchise agreement or re-sale of the Nassau Hard Rock Café franchise.”

Hard Rock Cafe International and the executives argued that the Doyles’ franchise was properly terminated because it failed to make due royalty payments.

And they dismissed the brothers’ arguments that they had ‘squeezed them out’ by refusing their pleas to close in the evenings and reduce the menu sizes.

“The sole reason for the agreement’s termination was HRCC’s failure to pay royalties – exactly as stated in the termination notice, and exactly what HRCC now admits that it did not do,” the summary judgment motion alleged.

“The balance of HRCC’s lengthy complaint describes its many gripes with defendants’ administration of the

THE TRIBUNE franchise relationship.

“HRCC uses colourful adjectives to label these gripes ‘deceptive trade practices’ and ‘conspiracy’, but they really are just its disagreements with defendants’ business decisions, which are not actionable.”

Hard Rock Cafe International and the executives alleged that HRCC and the Doyles had embarked “on a fool’s errand of litigation”, because the action had been brought in the name of British Virgin Islandsdomiciled HRCC Ltd, not the Bahamian company of the same name that actually operated the business.

“HRCC did not operate the Hard Rock Café in Nassau. It was never actually open ‘at night’. It did not incur ‘food losses’ It had no employees there. It did not pay rent, utilities or vendors. It did not file for ‘liquidation’,” the executives and Hard Rock International alleged.

“What HRCC did do was lie about what it was, what it did, and why it was terminated as a Hard Rock Café franchisee.

“HRCC was terminated as a franchisee because it did not pay royalties. There was no conspiracy. There was no ‘constructive termination’ and, while there were surely plenty of gripes, there was nothing ‘unfair’ or ‘deceptive’ about any of them.”

Foreign ownership of US debt falls for 1st time in 6 months WASHINGTON (AP) — Foreign holdings of U.S. Treasury securities slipped for the first time in six months, led by declines in Ireland and the Cayman Islands, the third and fourth largest owners of U.S. debt.

The Treasury Department says total foreign holdings declined 0.7 percent to $6.24 trillion.

The Cayman Islands, a Caribbean banking center, reduced its holdings 2.5 percent to $258.5 billion, while

Ireland cut back 2.4 percent to $257.9 billion.

China, the largest overseas owner of U.S. debt, also reduced its holdings by a slight 0.1 percent, to $1.24 trillion.

Japan, the second largest, raised its ownership 0.5 percent to $1.14 trillion.

The national debt is more than $19 trillion and projected to grow. That means the United States will need to see continued strong foreign demand for Treasury debt.

Of that amount, $13.7 tril-

lion is publicly traded on financial markets and $5.3 trillion is debt that the government owes itself in the form of holdings in trust funds such as the Social Security trust fund.

Foreigners own about twofifths of the debt that is publicly traded. Of that amount, $4.1 trillion is held by foreign governments, primarily central banks, who see Treasury securities as one of the world's safest investments.

THE TRIBUNE

Rules on GMO crops in Hawaii heads to US appeals court HONOLULU (AP) — The fight over regulating genetically engineered crops and pesticides in three Hawaii counties will be back in a federal courtroom Wednesday as some agricultural giants look to protect their research farms from bans against modified food in the islands.

The 9th U.S. Circuit Court of Appeals heard oral arguments in Honolulu on ordinances that seek to regulate or outlaw genetically modi-

fied products in Hawaii, Kauai and Maui counties.

Agrichemical companies and trade associations sued each county, and federal court rulings sided with the businesses. The counties and interested environmental groups want the 9th Circuit to overturn the decisions.

There has been little scientific evidence to prove that foods grown from engineered seeds are less safe than their conventional counterparts. But in the

islands, some are still concerned, especially about the use of pesticides.

Lawyers representing the counties argued that state laws do not specifically address genetically engineered crops or pesticides relevant to the proposed regulations.

The counties, which have policing powers to protect the health and property of their residents, therefore assert that they have the right and obligation to regulate the industry, they said.

CAREER OPPORTUNITY Career opportunities are available for ambitious career-oriented individuals at a mid size hotel. We are inviting experienced persons to apply for the following positions:

Security Supervisor

Prime Responsibilities and Duties are: • Oversee the proper reporting and documentation of all incidents.

• Act as focal point for any investigations involving guests and employees, prepare accurate reports and follow up action plans.

• Take the lead on all incidents and emergencies.

• Monitoring of camera system and schedule patrolling of grounds.

• Assist with the smooth and efficient running of the organization.

Qualifications & Experience Required: • Three or more years in the security or military (RBDF & RBPF) field.

• Three or more years supervisory experience • Excellent leadership and communication skills.

• Must be computer literate with strong administrative skills.

Security Officer

Prime Responsibilities and Duties are: • Assist with any investigations involving guests and employees, prepare accurate reports and follow up action plans.

• Ensure that any criminal activity does not hamper the smooth functioning of the hotel.

• Assist with and ensure the accuracy of all industrial accident reports.

• Take the lead on all incidents and emergencies.

• Assist with the monitoring of camera system and scheduled patrolling of grounds.

• Assist with the smooth and efficient running of the organization.

Qualifications & Experience Required: • Two or more years in the security or military (RBDF & RBPF) field.

• Excellent leadership and communication skills.

• The ability and interpersonal skills to relate with internal and external customers.

• Ability to work as part of a team, as well as independently.

• Must be computer literate with strong administrative skills.

Competitive salary and benefits package are commensurate with experience.

Interested persons should submit their resumes via e-mail to

recruitment.humanresources@outlook.com

Thursday, June 16, 2016, PAGE 11

PAGE 12, Thursday, June 16, 2016

Home Depot: US credit card firms slow to upgrade security

ATLANTA (AP) — Visa and MasterCard are using security measures prone to fraud, putting retailers and customers at risk of thieves, The Home Depot Inc. says in a new federal lawsuit.

It's the latest large retailer to raise the security concerns, with a lawsuit filed this week in U.S. District Court in Atlanta. Last

THE TRIBUNE

month, Arkansas-based Wal-Mart Stores Inc. sued Visa Inc. over similar issues.

Atlanta-based Home Depot says new payment cards with "chip" technology remain less secure in the U.S. than cards used in Europe and elsewhere in the world.

Even with chips, U.S. cards still rely on customers' hand-written signatures for verification, rather than more secure Personal Identification Numbers, or PINs, Home Depot maintains.

A Mastercard spokesman said the chips boost security.

"Regardless of how the cardholder's identity is confirmed, the chip makes data much more secure, rendering it almost useless to create fraudulent cards or transactions," MasterCard spokesman Seth Eisen said in a statement Wednesday.

MasterCard received the court filing Tuesday and is still reviewing it, Eisen said.

"We are aware of the complaint and will respond in due course," a Visa spokeswoman said in a statement Wednesday.

A central issue in Home Depot's lawsuit: Its accusation that Visa and MasterCard are conspiring to prevent adoption of more secure technology in order to maintain market dominance and profits.

"For years, Visa and MasterCard have been more concerned with protecting their own inflated profits and their dominant market positions than with the security of payment cards used

by American consumers and the health of the United States economy," Home Depot states in its 138-page lawsuit.

About 80 nations use cards with chips, and most of them — including England, France and Australia — also require a PIN, Home Depot said.

"Such cards offer an ex-

tra layer of security beyond the chip itself, by requiring the user to enter a four-digit PIN, thereby ensuring that the individual using the card is the card's owner," Home Depot states in its lawsuit.

"Signatures can be copied or forged, and cashiers are not handwriting experts trained to identify forged signatures."

As a result, U.S. consumers and merchants such as Home Depot pay fraudrelated costs that are "unrivaled in the rest of the industrial world."

A chip in combination with a PIN is a form of "twofactor authentication," said Craig Piercy, director of the online master of internet technology program at the University of Georgia's Terry College of Business.

"It basically means that you have something with you — usually a physical thing — and something that you know. Both together are required to authenticate a user."

If a card is stolen, even one with a microchip, a thief could still use it by inserting it into the card reader, then scribbling the name on the card on a receipt or pad near a cash register.

But if the thief doesn't know the PIN, the card is rejected.

"Neither one protects against all types of fraud, but in terms of protecting against lost or stolen cards, chip and PIN is more secure," Piercy said.

Home Depot was targeted in a wave of data heists that began with Target's pre-Christmas 2013 attack.

Home Depot's 2014 data breach at stores in the U.S. and Canada affected 56 million debit and credit cards, far more than the attack on Target customers. Hackers also stole 53 million email addresses from Home Depot customers.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, SEAN BAIN of Chippingham New Providence, The Bahamas intend to change my name to SEAN PINDLING. If there are any objections to this change of name by Deed Poll, you may write such objections to the Deputy Chief Passport Officer, P.O. Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of the publication of this Notice.

NOTICE

MARKET REPORT WEDNESDAY, 15 JUNE 2016

t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com

BISX ALL SHARE INDEX: CLOSE 1,922.90 | CHG -1.17 | %CHG -0.06 | YTD 98.95 | YTD% 5.43 BISX LISTED & TRADED SECURITIES 52WK HI 3.30 17.43 9.09 3.50 4.70 0.18 8.34 8.25 5.80 10.60 15.50 2.57 1.60 5.80 7.55 11.00 7.30 6.90 12.25 11.00

52WK LOW 2.20 17.43 9.09 3.00 4.70 0.12 5.32 7.25 5.50 6.85 14.50 1.94 1.27 5.51 6.00 9.89 6.01 5.25 11.75 10.00

PREFERENCE SHARES 1000.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

1.00 105.50 100.00 100.00 100.00 105.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.01

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 Famguard Fidelity Bank Finco Focol ICD Utilities J. S. Johnson Premier Real Estate 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 100.00 100.00 100.00

52WK LOW 100.00 100.00 100.00

SECURITY Fidelity Bank Note 17 (Series A) + Fidelity Bank Note 18 (Series E) + Fidelity Bank Note 22 (Series B) +

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS FAM FBB FIN FCL ICD JSJ PRE

LAST CLOSE 3.30 15.85 9.09 3.50 5.22 0.12 6.70 8.20 5.70 10.60 14.50 2.64 1.50 5.80 7.55 9.90 7.30 6.36 11.93 10.00

CLOSE 3.30 15.85 9.09 3.50 5.22 0.12 6.56 8.20 5.84 10.60 14.50 2.42 1.50 5.80 7.55 9.90 7.30 6.36 11.93 10.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 -0.14 0.00 0.14 0.00 0.00 -0.22 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.01

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.01

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

SYMBOL FBB17 FBB18 FBB22

LAST SALE 100.00 100.00 100.00

CLOSE 100.00 100.00 100.00

CHANGE 0.00 0.00 0.00

114.39 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

114.11 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

-0.28 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

VOLUME

1,000 2,200

.

500

400

VOLUME

EPS$ 0.304 1.351 1.086 0.220 -1.134 0.000 0.185 0.551 0.508 0.541 0.528 0.094 0.166 0.510 0.612 0.960 0.650 0.703 0.756 0.000

DIV$ 0.090 1.000 0.000 0.160 0.000 0.000 0.187 0.260 0.200 0.360 0.610 0.060 0.040 0.240 0.275 0.000 0.280 0.120 0.640 0.000

P/E 10.9 11.7 8.4 15.9 N/M N/M 35.5 14.9 11.5 19.6 27.5 19.5 9.0 11.4 12.3 10.3 11.2 9.0 15.8 0.0

YIELD 2.73% 6.31% 0.00% 4.57% 0.00% 0.00% 2.85% 3.17% 3.42% 3.40% 4.21% 2.48% 2.67% 4.14% 3.64% 0.00% 3.84% 1.89% 5.36% 0.00%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 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 7.00% 6.00% Prime + 1.75%

MATURITY 19-Oct-2017 31-May-2018 19-Oct-2022

6.95% 4.00% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25%

20-Nov-2029 15-Dec-2017 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

BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.03 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

113.70 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Bahamas Note 6.95 (2029) BGS: 2014-12-3Y 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

BAH29 BG0103 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330

MUTUAL FUNDS 52WK HI 1.98 3.84 1.91 160.64 138.35 1.43 1.64 1.53 1.05 6.67 8.16 5.81 10.66 10.12

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.37 1.51 1.45 1.03 6.11 6.93 5.55 10.37 8.65

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 Bah Int'l Investment Fund Principal Protected TIGRS, Series 5 Royal Fidelity Int'l Fund - Equities Sub Fund

NAV 1.98 3.84 1.91 164.74 133.64 1.43 1.64 1.53 1.05 6.67 8.01 5.81 10.66 8.65

YTD% 12 MTH% 1.69% 4.07% 1.82% 6.21% 1.19% 3.12% 1.67% 5.13% 0.66% -3.41% 1.23% 3.88% 0.55% 8.17% 0.86% 5.37% 1.07% 1.61% -0.14% 9.15% -1.87% 15.62% 0.83% 4.82% 70.00% 2.80% -6.29% -13.65%

NAV Date 31-May-2016 31-May-2016 27-May-2016 31-Mar-2015 30-Sep-2015 30-Apr-2016 30-Apr-2016 30-Apr-2016 30-Apr-2016 29-Feb-2016 29-Feb-2016 29-Feb-2016 29-Feb-2016 29-Feb-2016

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 is hereby given that AGWELL FRANCOIS of Treasure Cay, Abaco, 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 9th day of June, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

THE TRIBUNE

Thursday, June 16, 2016, PAGE 13

Leaving rates alone, Fed sees ultra-slow pace of hikes ahead WASHINGTON (AP) — The Federal Reserve signaled Wednesday that it foresees an exceedingly slow pace of interest rate hikes ahead — and is in no hurry to resume them.

In explaining its decision to keep interest rates unchanged, the Fed expressed concern about a recent slump in U.S. job growth and about the potential consequences of Britain's vote next week on whether to leave the European Union.

The Fed suggested in a statement after its latest policy meeting that it needs a clearer economic picture before resuming the rate hikes it began in December. It did note that the housing market is improving and that the consequences of an export slowdown have lessened. Yet it signaled concern about the uncertainty of employment growth and global developments.

Some economists think a July rate increase is possible if the job market rebounds from a dismal May and financial markets remain calm after Britain's vote next

week on whether to leave the European Union.

"There are too many uncertainties to justify pulling the trigger" now, said Sung Won Sohn, an economist at the University of California's Martin School of Business.

The Fed "wants to make sure that the surprisingly weak payroll number for May is a temporary phenomenon and not a harbinger of a weaker economy to come."

In addition to the May jobs report, other economic barometers have also sowed doubts — from tepid consumer spending and business investment to a slowdown in worker productivity to stresses from China other major economies. And inflation remains below the Fed's target.

The Fed raised its key policy rate modestly in December from a record low near zero, where it had been since the depths of the Great Recession in 2008. Its expectations for an even slower pace of rate hikes than earlier envisioned were contained in updated economic forecasts it issued Wednesday.

The forecasts show that among the 17 Fed policymakers, six think there will be only one rate hike this year, up from just one official who thought so at the Fed's March meeting. Still, a majority of Fed officials continue to envision two rate hikes this year.

The officials' expectations for rate hikes in future years slowed: Their median forecast shows just three hikes in 2017 and three in 2018, down from an expectation of four for each year. That change suggests that Fed officials remain concerned about a recovery that's still sending mixed signals on jobs and inflation and that they're comfortable that rates can be left ultra-low for longer.

The officials sounded a slightly more downbeat note about the economy's growth this year and next compared with their forecasts three months ago. They now expect just 2 percent growth both this year and next year, down from their previous forecast of 2.2 percent for this year and 2.1 percent for 2017.

FEDERAL Reserve Chair Janet Yellen sits for lunch before making a scheduled speech in Philadelphia. Ending its latest policy meeting yesterday, the Federal Reserve issues a statement, updates its forecasts and holds a news conference with Yellen. (AP Photo)

THE TRIBUNE

Thursday, June 16, 2016, PAGE 15

A late decline erases gains for US stock market indexes NEW YORK (AP) — The stock market fell for a fifth straight day Wednesday as investors set aside the Federal Reserve's interest rate decision and remained focused on next week's vote on whether Britain will remain in the European Union.

The Dow Jones industrial average fell 34.65 points, or 0.2 percent, to 17,640.17.

The Standard & Poor's 500 index fell 3.82 points, or 0.2 percent, to 2,071.50 and the Nasdaq composite fell 8.62 points, or 0.2 percent, to 4,834.93.

As expected, the Federal Reserve's policymakers voted to keep interest rates unchanged at their current level of 0.25 percent to 0.50 percent.

In their statement, the Fed said that while U.S. economic activity continues to strengthen, "the pace of improvement in the labor market has slowed," a reference to the April and May job reports that were weaker than anticipated.

"After that May jobs report, I think today's decision was a fait accompli," said Kristina Hooper, head of U.S. investment strategies at Allianz Global Investors, after the decision was announced. "They needed to hit the pause button for June, but I think a July rate hike still remains a distinct possibility."

Bond prices remained high, keeping yields low.

The yield on the 10-year U.S. Treasury note fell to 1.58 percent from 1.61 percent a day earlier. Bond investors said the uncertainty about the British vote has forced European investors to buy up U.S. government bonds in a search for yield and security, pushing bond yields to their lowest levels in years.

"We are in a rare moment where the highest quality creditor, the United States, is also the creditor with the highest interest rate," said Brandon Swensen, senior portfolio manager and cohead of U.S. fixed income at RBC Global Asset Management.

With the Fed decision revealed, most investors are focused on the other side of the Atlantic. There is grave uncertainty about whether British voters will choose to leave the European Union in a June 23 referendum.

Polls show the vote could go either way and investors are starting to worry about the consequences.

A British exit from the EU, which investors have taken to referring to as "Brexit," would likely hurt the British economy most and destabilize the rest of Europe. The repercussions, however, are not clear and investors are reacting to the general uncertainty over the

TRADER RICHARD COHEN, right, works on the floor of the New York Stock Exchange, yesterday. U.S. stocks are edging higher in the early going as the market comes off a four-day losing streak. (AP Photo)

situation.

During her press conference, Yellen said Fed policymakers said the upcoming vote was one of the reasons why the central bank kept interest rates unchanged.

"The potential disruption from (a British exit from the EU) has not loomed as large with investors as it should

have. Now that the Fed decision over, the (vote will be all they'll be talking about," Hooper said.

Among individual companies, Whole Foods Market fell $1.62, or 5 percent, to $30.90 after the Food and Drug Administration said there were "serious violations" at a kitchen in Mas-

sachusetts that may have resulted in contaminated food and the grocery chain hasn't done enough to fix them so far.

Benchmark U.S. crude oil fell 48 cents to close at $48.01 a barrel in New York.

The price has fallen 6.3 percent over the last five days.

Brent crude, used to price

international oils, fell 86 cents to close at $48.97 a barrel in London.

In other energy commodities, wholesale gasoline futures fell 2 cents to $1.50 a gallon, heating oil closed down 2 cents to $1.48 a gallon and natural gas fell 1 cent to $2.595 per 1,000 cubic feet.

PAGE 16, Thursday, June 16, 2016

THE TRIBUNE