06172020 BUSINESS

business@tribunemedia.net

WEDNESDAY, JUNE 17, 2020

$3.27 Contractor’s part win over bungled BTC agreement

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A BUNGLED contract triggered a dispute that resulted in the Bahamas Telecommunications Company (BTC) being ordered by the Supreme Court to compensate an independent contractor for four months of work.

Justice Ian Winder, in a June 3 judgment, said BTC’s much-touted fibre-to-the-home technology “was not gaining significant momentum” when it terminated KT MacTech’s installation contract without due cause.

As a result, he found the contractor was entitled to the contractually-stipulated three months’ notice plus its invoice for work completed in December 2016 that BTC had also failed to pay.

However, Justice Winder only partially ruled in KT MacTech’s favour and stopped well short of the $1.918m damages sought.

He said there was “overwhelming evidence” that it was “an impossibility” for the contractor to fulfill the contractual term that ignited its legal battle with BTC given that - by industry standards - it would have to complete two days’ worth of work in just 24 hours.

KT MacTech, in its statement of claim, alleged that the fibre-to-the-home installation contract it secured with BTC contained an “express term” that it would receive “a minimum 276 points per work crew per day”.

The points system estimates how long it should take a technician to complete a field task, with one point equivalent to ten minutes’ worth of work. BTC, while admitting that KT MacTech’s contract contained this compensation arrangement, argued that it “was an error and is regarded as a mutual and/or unilateral mistake between the parties” that the contractor was fully aware of.

BTC, now controlled

by Liberty Latin America through Cable & Wireless Communications (CWC), said the contract should have stipulated “276 job points per day” for KT MacTech as a whole, not its individual crews.

However, KT MacTech, which said it had to sign-up to a non-compete agreement to work exclusively for BTC and no rival carriers, alleged that BTC had “defaulted” on payments required under the contract based on the “minimum 276 points per work crew per day”.

It further claimed that BTC “begged indulgence” to allow it to pay 46 out of the 276 points “until they were able to subsidise the same with the balance of the payment”. Alleging that BTC never paid the full balance owing in any month, KT MacTech also claimed that the carrier “attempted to coerce” its contractor into waiving the “276 points” stipulation and sought $1.918m in damages.

Keith Mackey, KT MacTech’s president, said in evidence and during the Supreme Court trial that it took a year to negotiate a satisfactory installation contract with BTC after initial offers proved “too low”. He claimed that Nigel Brogdam, a BTC executive, asked him to send invoices for 46 points per crew per day until the carrier could provide more work.

“Mackey says he was hesitant but went along this only because he had already

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$3.27

$3.80

Unpaid Lucayan workers ‘authors of own distress’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

HE Grand Lucayan’s chairman yesterday said the 40 managerial staff alleging they have not been paid for weeks are “authors of their own distress” after they failed to co-operate on accessing unemployment benefits.

Michael Scott QC, dismissing claims by the Bahamas Hotel and Managerial Association (BHMA) that the government-owned resort has been “cherry-picking” who it pays amid the COVID-19 crisis, told Tribune Business it had “bent over backwards” to ease the financial stress on employees during the pandemic.

Emphasising that Lucayan Renewal Holdings, the special purpose vehicle (SPV) that holds the resort, has “not thrown anyone to the wolves”, Mr Scott said the resort’s board and management had provided staff with

OBIE FERGUSON

all outstanding vacation pay and monies due from the hotel’s emergency welfare fund to help them ride out the virus-enforced lockdown.

When those monies were exhausted, he added that the Grand Lucayan sought to further aid staff by “walking them through” the process of applying for National Insurance Board (NIB)

unemployment benefits.

The workers now complaining of not being paid for months, Mr Scott said, were those who had refused to go through the NIB application process.

He also revealed that the Grand Lucayan is in the process of calculating full termination pay and benefits due to all remaining

MORE major Bahamian resort properties yesterday unveiled a variety of opening dates, with several pledging an instant relaunch while others have elected to wait until almost year-end.

SuperClubs Breezes, the Cable Beach-based all-inclusive, and Comfort Suites located on Paradise Island will both re-open on July 1 to coincide with the Bahamian tourism industry’s full restart and the relaxation of border restrictions.

However, the near-term outlook was gloomier for San Salvador residents.

Darrin Woods, the Bahamas Hotel, Catering and Allied Workers Union’s (BHCAWU) president, confirmed to Tribune Business that Club Med representatives had informed him that their Columbus Isle

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• Breezes, Comfort Suites to reopen July 1 • But no Club Med return till December 12 • Union chief: Critical mass key to revival

SUPERCLUBS BREEZES property will not re-open until December 12 this year.

Meanwhile, John Issa, Breezes Bahamas’ chairman, said in a statement that the resort had worked to “redefine the customer experience” based on the new COVID-19 health

protocols as it prepares to re-open to guests on July 1 with the return of commercial airlift.

The resort acknowledged that initial occupancies and business volumes will likely be low, so not all staff will initially be recalled to work

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

- something that is likely to occur across the Bahamian tourism and resort industry until bookings start to ramp up.

“To ensure the safety of both guests and team members, Breezes has redefined the customer experience based on these new protocols. This plan complements the measures that will be carried out under the Ministry of Tourism’s Clean and Pristine guidelines,” said Mr Issa in reference to the COVID-19 health protocols.

The all-inclusive resort added that safety screens have been placed at its front desk, while decals mark the lobby floor to ensure safe distancing. The main dining

employees in anticipation of the resort’s purchase by the ITM Group/Royal Caribbean joint venture, Holistica, “closing within the next month”.

Mr Scott confirmed that the government, meaning the Bahamian taxpayer, will assume financial responsibility for fulfilling this obligation to the staff.

Adding that “we’re close to getting this concluded”, the QC said there was “no point” in extending the deal’s closing any further, and the government was now “pushing” Holistica to complete the deal for Freeport Harbour’s cruise port expansion with Hutchison Whampoa.

He hit out after Obie Ferguson, the Bahamas Hotel Managerial Association’s

Bahamian resorts give mixed relaunch dates

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Web shop taxes set to generate 43.5% increase THE government is betting that the “full effect” of the revised web shop gaming tax structure will generate a 43.5 percent year-over-year increase in the upcoming fiscal year, a top official said yesterday.

Marlon Johnson, the Ministry of Finance’s acting financial secretary, told Tribune Business it is projecting that the first full year of the two-tier operator taxation structure will produce one of the few revenue gains in the 2020-2021 budget.

“This will be the first full year that the new taxation regime will be in effect,” he said of the ministry’s rationale for the revenue rise. “That’s what speaks to the increase and factored into the trajectory. There are a few other areas with increases, but that’s the most significant one.

“We anticipate, as with everything else, that there might be less gaming, but with the taxes in full effect that will create the bump up in projections.” The government is projecting that taxes paid by web shop operators in the 12 months to endJune 2021 will rise by 43.5 percent compared to the 2019-2020 projections, jumping to $23.1m compared to $16.093m.

The projected $7m increase also comes after web shop gaming taxes collected during the first nine months of the 2019-2020 fiscal year exceeded the latter figure, which was for the full year.

The 2020-2021 budget projections still represent a 25 percent rise on the $18.483m collected during the nine months to end-March 2020.

Mr Johnson added that the budget estimates did not include the taxation on patron winnings, and only reflected what is being imposed on operators. All licensed gaming operators pay 15 percent on their first $0 to $24m of revenue, and operators earning anything greater than $24m will pay 17.5 percent on sums above that threshold.

Tribune Business reported in early March 2020, just before the COVID-19 lockdown, that the government

• Chair: Refused to co-operate on NIB benefits • Union claims resort ‘cherry picking’ who paid • Aim to complete Holistica deal ‘within month’

MICHAEL SCOTT QC

$3.23

‘Too early’ to decide new/increased taxes

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE deputy prime minister has reiterated that “it’s too early” to determine if new and/or increased taxes will be needed for The Bahamas to escape the fiscal hole created by COVID-19 and Hurricane Dorian.

K Peter Turnquest, pictured, in a recent interview with Tribune Business, expressed his faith in the economy’s ability to “bounce back relatively quickly” from the multibillion dollar shocks created by two crisis that occurred just seven months apart.

He declined to respond when asked whether The Bahamas’ debt burden, projected to bypass the $10bn mark in the 2021-2022 fiscal year, was reaching levels where it becomes an unsustainable burden on Bahamian taxpayers, saying: “I’m not going to even entertain that conversation because the basic assumption is that we will have a relatively quick recovery.

“We have to believe that the economy is going

• DPM places faith in growth-led recovery • ‘Unknowns’ put budget focus on 12 months • Pension liabilities ‘significant exposure’

to come back relatively quickly. The previous experience with pandemics is a V-shaped recovery. In our circumstance, it may end up being a bit more of a ‘U’, but hopefully it will be a short ‘U’ and we will get back to the other side relatively quickly.”

Many observers believe that The Bahamas will have to generate explosive economic growth if it is to avoid further austerity measures to right its fiscal course, something it has conspicuously failed to do over the

past decade when the average annual gross domestic product (GDP) growth figure was below 1 percent.

“It’s too early to talk about this kind of thing,” Mr Turnquest replied, when asked whether new and/ or increased taxes will be inevitable as a result of the projected $1.3bn fiscal deficit for the 2020-2021 budget year. “We anticipate there’s going to be a strong recovery in the economy based upon pent-up demand for near shore vacations.

“We also believe the

cruise industry will come back to some degree, and that will help to advance the growth to bring us back around. These industries are resilient and will bounce back relatively quickly, together with all the initiatives we have taken to shore-up small and medium-sized enterprises.”

Mr Turnquest acknowledged that the government’s unfunded civil service pension liabilities, estimated by some to stand at $2bn now, represent “a significant exposure” that is being assessed both within the administration and external consultants.

He added that the budget had focused on a 12-month timeframe because “there isn’t a hell of a lot of data to rely upon” in projecting economic forecasts during health pandemics such as COVID-19. “Forecasting is not as certain as we’ve had in past experiences because of the large unknowns,” Mr

Turnquest said. “Nobody can really predict how consumer demand will react.....”

The 2020-2021 budget projections confirmed that the scars and impact of COVD-19 will continue to impact both the economy and the government’s fiscal position for many years to come.

For the government is currently forecast to run an $813.4m deficit, measuring by how much its spending exceeds its revenue, in the subsequent 2021-2022 budget year. If that comes true, it will be the second highest deficit in Bahamian history behind this year’s $1.327bn, and even higher than the $773.7m worth of “red ink” that will be incurred in the present 2019-2020 period.

This “unprecedented” deficit and borrowing, combined with those two years, means The Bahamas will have added more than $2.9bn to its national debt within a three-year span. And, according to the budget projections, will take the government’s direct

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PAGE 2, Wednesday, June 17, 2020

Hurbert Edwards, in the third of a five-part series, sets out the process for repositioning the Bahamian financial services industry.

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O DATE, The Bahamas’ main appeal has been the fact it is a jurisdiction with a “light touch” taxation regime for international entities.

This is changing rapidly, and there has been incremental but sustained pressure brought to bear, which is undermining the country’s attraction as a “no” or “low tax” jurisdiction. Looking back, we will see that The Bahamas was blacklisted by the Financial Action Task Force (FATF) in 2000.

Subsequently, around 2010, it was identified by the Organisation for Economic Co-Operation and Development (OECD) as being a noncooperative jurisdiction and carried the label of being a so-called “tax haven”. Significant pressure was being placed on the country by supranational agencies. A declaration from the G-20 Summit held in London, England, on April 2009, declared in part, that “the era of banking secrecy is over”. Back then, the G-20 was demanding that all countries adopt the international standard for tax information exchange as outlined in the UN Model Tax Convention, and signalled the readiness of its members “to take agreed action against those jurisdictions which do not meet international standards in relation to tax transparency”.

For The Bahamas, that statement pointed to significant challenges that have eroded - and could eventually eliminate - the most compelling rationale for doing business in this nation.

The European Union’s (EU) own anti-tax evasion drive in 2018 reinforced that these pressures will not

THE TRIBUNE

TIME TO GET THE ‘BOOT’ OFF FINANCIAL SERVICES’ NECK

BY HUBERT EDWARDS

go away. In response to the EU blacklisting, there were arguments floated about the need for The Bahamas to introduce a corporate income tax. Yet there were counter overtures that corporate income tax was a “no-go” area. In 2020, the EU’s “foot on your neck” position looms large. So, too, does the “nothing you can do” response.

The one thing that is true about these ongoing initiatives is that, over time, they have become more effective and efficient. They effectively force jurisdictions to paint themselves into a corner, ultimately eroding options. This is aided by slowness of response and the escalation of aggressive demands by external forces. The way to get ahead of this is to seek to control the floor to the greatest extent possible.

This becomes easier when seen over the long-term.

Self-imposed limitations of “now” and electorate reaction will always result in a poor response. This is a response that solves the issue for a moment; a response that comes with a price but little or no incremental gain; a response which protects the pie and

plays to a narrative which suggests that compared to the alternative of losing it all this is a good outcome.

All things considered, The Bahamas faces some important issues that goes to the very survival of its financial services industry.

The issue here is simply this: Until and unless there is a comprehensive analysis and assessment, taking into account not just the immediate issues before us but also considering all the linkages, inter-linkages, potential spillovers and cluster impact etc, there will be no clear understanding of where the industry truly stands nor a clear view of its potential future direction and gains.

While we tend to discuss matters in abstract, and as disparate considerations, consider this. Back when The Bahamas made its “services only” offer as part of the Economic Partnership Agreement (EPA) negotiations with the European Union (EU), it was called “into question” by the Europeans as possibly not going far enough. The EU was then on the prowl.

The pressures back then from the G-20/OECD, with their call for tax transparency, were fundamental game-changing events. At the time we concluded that the changes required to overcome these challenges would have a fundamental impact on the financial services industry. Whatever they resulted in would have significant influence on the continued existence of the international aspect of the financial services industry.

We now see this to be the exact case, for while the focus has shifted from the OECD, it must be noted

that the EU’s latest initiatives are inextricably linked to the OECD’s “harmful” taxation drive. All have become part and parcel of the same effort, which is to repatriate tax revenue allegedly owed by their citizens and which they claim is rightly due to their various jurisdictions.

There is no indication that these countries will relent. This makes the argument unequivocal. The way in which the financial services sector is organised and positioned will continue to face pressure for change.

In the absence of careful, forward-looking and strategic planning, there are clear risks of the industry being seriously “damaged”. It must be accepted that in this process there will be disruptions. However, we must not cower at the idea of being disruptive given that an entire industry, and possibly up to one-third of the economy, may be put at risk.

Accept the fact there will be ongoing challenges, and become comfortable with the idea that The Bahamas will, until a more defined approach is taken, be susceptible to the vagaries of the demands and designs of the world’s most influential economies. Marcus Aurelius stated that the “obstacle is the way”. This is true but defining the obstacle is critical. In this instance, the obstacle is not simply overcoming the EU or any other supranational demands.

The obstacle is the erosion of a vibrant economy, and the eventual impact that losing the financial services industry will have on the standard of living.

Recommendations The following recommendations are outlined in three specific segments. The first are big picture positions, which seek to create a basis for thinking and operating way into the future.

They address matters which, if properly contemplated and implemented, create a situation that has continuity.

Continuity is very important because of the political interplay with the industry. Parties generally think within five-year cycles, while the interest of the

industry ought to be considered over longer horizons.

The second section focuses on impacting the value proposition, seeking to bring focus to areas which, when addressed, will improve the market perception of what it gets for the value it gives up. These are areas that are value creating, and go fundamentally to the efficiency and effectiveness with which The Bahamas will be able to deliver products to an increasingly sophisticated and discerning market, and positively impact its value proposition.

The final section deals with product development, and calls for focus on a specific class of products or the way in which product development is approached in The Bahamas. It seeks to underline the need for a total rethink of product development and how the market is made aware of new products. It seeks to apply corporate strategy in securing some element of surprise for the market while looking at the entire industry machinery and building it in a manner that enables it to deliver products, or adjustment to products, that are not easily duplicated by other jurisdictions in a very short time.

1. A high level strategic thrust As The Bahamas seek to grow and develop its financial services industry there are certain fundamental changes that need to be addressed. To date, based on research and analysis of the country’s performance across a range of areas, it is clear that individual corporate strategy is the major engine behind any impetus within the industry. The argument being proposed here is not that strategy should not to be the concern of private companies.

This is, in fact, the case.

However, there is a larger issue of how the location of the companies influences strategic activities, and how the cumulative outcome of such strategies influences the competitiveness of the location. This appears to be one of the main areas of weakness for The Bahamas.

It seems that a more cohesive approach to addressing the country’s competitiveness, as it relates to financial services, is needed.

In his book, The Competitive Advantage of Nations, Michael Porter stated the following: “A firm’s home nation shapes where and how it is likely to succeed in global competition.”

It follows, therefore, that the likelihood of success is based on factors within a nation that will determine whether companies will locate there. Porter argues that “within an industry, a nation’s circumstances also favour competing in particular industry segments and with certain competitive strategies”. The Bahamas cannot be considered home for most offshore companies, but this is where the opportunity exists.

For growth to be realised through headquartering and substantive physical presence, The Bahamas must be seen to have clear advantages. Thinking in this direction can separate us from the rest of the region, all of which are pursuing the same “me too” strategies.

Extending this argument, industry arrangements exert strong influences on corporate strategies, and therefore provide a basis for driving competitiveness relative to rival nations. The country, through national or industry leadership, has significant influence in framing the competitiveness of that industry and signalling the direction of corporate strategies.

Implemented effectively, these strategies lead to greater productivity, enhance wealth creation and the potential of sustainable competitive advantage.

The Bahamian financial services industry must be looked at in this light if it is to secure long-term growth and development. Against this backdrop I offer the following suggestions: • Financial Centre Vision - A unified team of professionals from the Association of International Bank and Trust Companies (AIBT), the Clearing Banks Association, the Bahamas

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THE TRIBUNE

Wednesday, June 17, 2020, PAGE 3

FISCAL COUNCIL’S MOU EYES JULY COMPLETION Out Island

resorts fear altered tourism reopen

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

THE Fiscal Responsibility Council (FRC) is seeking “autonomy” in its financial affairs as it finalises the Memorandum of Understanding (MoU) that will govern its relationship with the government.

Gowon Bowe, who represents the Bahamas Institute of Chartered Accountants (BICA) on the FRC, told Tribune Business: “To be honest with you, it would be inaccurate to say we don’t have an MoU with the government. We don’t have the signed one. We have a document we have shared between the minister of finance and ourselves, and I think we had an agreement and then there was the COVID element in March.

“I think the principles of it were that all of us on the council were somewhat private sector representatives and used to autonomy in managing our budget and finances, and also being accountable for it, whereas it (the FRC) was created as a body under the Speaker of the House. They are used to going through the treasury and the ministerial approval process.

“So the principal of it was that if there was a budget allocation for specific purposes, we certainly felt it should be provided to us

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net GOWON BOWE

K PETER TURNQUEST

in a manner we would be responsible for, and not having to go back to the Ministry of Finance or the Treasury each time we wanted to cut a cheque or engage.”

Mr Bowe added that the MoU and FRC’s financial allocation will function “similar to the statutory bodies, because the government would have to treat it as a subvention. I would imagine that in order for them to give us control of our budget it would have to be done in a different way where they effectively fund it on a periodic basis”.

He said that while he has been given access to the previous year’s budgets, the FRC has not been involved in the preparation of the 2020-2021 effort or received any information regarding the details and specifics underpinning it.

Mr Bowe added: “We have gotten documents that are in the public domain, so it would be inaccurate to say

we have not received anything, but what we said was that in order to look at compliance with the legislation, it would really be the basis on which you presented the numbers. Because if you are being critical in both the positive and the negative light, you want to say that you are basing it on all of the details.”

K Peter Turnquest, deputy prime minister, told Tribune Business: “We are still in negotiations as to what their compensation issues are going to be and finalising that MOU.” He added that the FRC should be in possession of MoU by July as that is when it is scheduled to receive all documents used to prepare the budget. “We need to have it done before then,” Mr Turnquest said, adding that “other arrangements” will be worked out if it is not completed by then or both sides will go back to Parliament and ask for an extension.

HOTEL RE-OPENINGS DELAYED TO AVOID ‘HORRENDOUS’ LOSS

positioned when the larger resorts decide to open.”

Mr D’Aguilar added that larger resorts “know better than we do” about what is happening in the market, saying: “They obviously have thousands of rooms and an incredible marketing machine that goes out there and tries to get people to book at their property.

“I guess they are seeing the load factors are what they are, and they are not initially impressed, so they are waiting until their book of business grows and they are in a better position to open and to minimise their losses. They feel that if they open now their losses would be horrendous, so they want to wait until it’s more economically viable for them to open.”

Uncertain of when the tourism industry will rebound, Mr D’Aguilar said: “If I can give it an educated guess I would say 18 months to two years for it to begin to ramp back up, and obviously with all of the social distancing and all the health protocols that are necessary, you can’t have as much business as you used to have and observe the protocols put down by the health department.

“Everybody is actively looking for a cure to this virus. They are trying to restructure their business so they can operate with these new social distancing rules in place.”

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A CABINET minister yesterday said “I don’t like, but understand” the decisions taken by Baha Mar and Sandals to postpone their COVID-19 reopenings beyond July 1 to the fall/winter period.

Dionisio D’Aguilar, minister for tourism and aviation, said: “I think a number of the resorts have looked at what their bookings will be like come July, and they have determined that to open wouldn’t be economically viable. So they have decided to wait until their book of business grows.

“Now that we have our hard opening date for July 1 they can start to get into the market and let people know, determine how it is operating and then plan a more orderly opening of their business. I don’t like it, but I understand it. I think that a number of the smaller hotels that are a lot easier to open will open.

“Those that are bigger, obviously you need a certain amount of scale to make it worthwhile to bring all of those persons back to work and start opening restaurants. If you take

DIONISIO D’AGUILAR an Atlantis or a Baha Mar, those are huge properties, and to commission them and get them open takes an enormous amount of staff and resources. I think what they want to do is ensure they have the visitor load to make it worthwhile. “ Responding to concerns that his ministry’s efforts were wasted in preparing the Tourism Readiness and Recovery Plan, Mr D’Aguilar said: “I wouldn’t say wasted. I think all of the work that has been done has sensitised us to what is necessary to open in this new post-COVID environment.

“We had to go through the process of what the protocols would be, the health steps we would have to understand. So it gives us time to get it right and I think we will be wonderfully

TIME TO GET THE ‘BOOT’ OFF FINANCIAL SERVICES’ NECK FROM PAGE TWO International Securities Exchange (BISX) and related industries (legal, real estate, accounting, maritime), in conjunction with government representative and representatives of all major political parties, should be created and tasked with articulating a clear and sufficient longterm vision for advancing beyond being just an offshore financial centre to one that takes on more characteristics of a full international financial centre (IFC).

The discourse and development should be facilitated by a comprehensive study of economic data and information relative to the industry. The vision should be developed within the context of a national outlook, and should be clear in signalling intent and direction for the benefit of the industry and country. The vision should clearly define the strategic goals. These strategic goals should be based on competitive analyses.

The Bahamas should end up with a clearly-expressed vision for the FSI. • Strategic Goals - Assess and determine the areas in which The Bahamas wishes to focus its competitive

efforts. Once areas are agreed they should be effectively communicated to the industry in very clear, understandable and measurable terms. In developing the strategic objectives, The Bahamas must seek to position itself as a leader in these areas. This is critical, as a perception of being a laggard works adversely with respect to being recognised as a globally competitive financial centre. The Bahamas has significant strength in the areas of private banking, wealth management and trust services. Relative to competitor nations there are weaknesses which should be addressed in setting strategic goals.

For example, certain strategic goals can be articulated as follows: Leader in private banking, wealth management and trust services; expand overall assets under management to $’x’bn in five years; increase hedge fund business by x percent and surpass Cayman as a leader within x years; capture ten percent of the regional insurance and captive insurance market; become the number one city to live within the Caribbean, and Nassau being one of the top five most attractive cities in the Americas; and the top stock exchange in

terms of market capitalisation and diversity of listings within the Caribbean.

• Industry Cluster - The industry cluster shows the core of the industry with supporting segments and institutions. The implementation of a vision to advance beyond being just an offshore financial centre must be approached from the perspective of optimising and enhancement of the industry cluster. Assessment of the industry cluster for The Bahamas financial services industry will highlight various positives and negatives of the industry when looked at in terms of the determinants of competitiveness.

By focusing on these models and seeking to correct weaknesses and enhance strengths, policymakers can influence competitiveness.

The government will play the active role as facilitators of the industry with efforts driven by the private sector/ industry organisations.

Strategies employed by the various companies within the industry will then likely play to industry strengths, furthering the thrust towards the stated vision. This approach ignores individual companies and focuses on broad-based actions designed to achieve a predetermined outcome.

To be continued....

FAMILY Island resorts yesterday voiced fears that the government may halt plans for the tourism industry’s July 1 re-opening as they make preparations to cater to guests from that date.

Krystel Brown, general manager of Rollez Villas Beach Resort on Cat Island, told Tribune Business: “We have a lot of interest domestically from Bahamians and residents here. We have a domestic booking for July 1. For international guests we have a lot of interest right now for July. We have a booking for August, but we have a few people interested in July 1.

“We are a little more cautious about that [re-opening date] given what the minister had recently said about maybe having to rethink the July opening, so we want to give our guests a clear indication that it is going to happen and we don’t want them to re-book. We have been attending the Ministry of Tourism’s readiness programme, and all of our staff are up-to-date with that and will be wearing protective gear.”

Ms Brown’s concerns were echoed by Angela Jackson, general manager of CarriEarl Boutique Hotel in Great Harbour Cay, the Berry Islands, who said: “We will be ready by the end of next week. We will certainly be ready. We are going to open on July 1.

We had to submit our selfassessment to the [Hotel] Licensing Authority, and we have quite a few bookings for July already.

CarriEarl’s first bookings are scheduled for July 6 from private pilots. She added: “Some people are

concerned that the government is going to change their minds about opening on July 1. It is a worry people have had that the prime minister would change his mind, but as far as we are concerned we will be opening on July 1 depending on government policies.”

Ms Jackson said her property will remain open until the end of August, then close in September to coincide with the traditionally slowest part of the tourism season. CarriEarl will not re-open until November.

Ms Brown, meanwhile, said of her property: “We have a few things that we are trying to complete right now. We are trying to install the touch-less sanitisation distributors. We just finished renovating the deck, which is where our guests eat dinner.

“We had long tables, which obviously doesn’t bode well for social distancing, so we cut those tables up and spread them out around the deck so that families can still eat together and still be separated from others at dinner, lunch or breakfast.”

Ms Brown: “We also erected some signs just reminding guests to remember the social distancing guidelines, and to wear masks if they prefer. We got some temperature guns so that once we check people in we can take their temperatures, and we are also going to be using it daily on our staff.

“In terms of rooms, we have villas so it’s not one big structure. All families will be separated anyway, so we didn’t have to do too much with the rooms. We did do some renovations just to upgrade our spaces for when we reopen. We have sanitising stations in the room as well as in all of our public areas and the decks.”

To use Rollez Villas’ kayaks and paddleboards, each guest has to sign the equipment out and, when it is returned, it will be sanitised and cleaned again before it is reissued to another guest.

Betty Francis, proprietor of Exuma’s Palm Bay Beach Club, said: “We’re gearing up for July 1 and we have bookings scheduled for after July 15, but I don’t know if they’re going to cancel and I don’t know what to expect. It’s all dependent on the airlines. It’s definitely going to be new normal; we won’t go back to where we were before.”

Ms Francis added that some mid-July bookings are local, and said Palm Bay has implemented “everything in the clean and pristine safety regulations” that the Ministry of Tourism had asked.

Marsha Bastian, owner of Harbour Inn Guest House on Great Harbour Cay in the Berry islands, said: “We are scheduled to open on July 1, and we’re trying to get everything in place. We have reservations calling in for August. We have no bookings for July as yet, but for August our bookings are international.”

She added that some Bahamians had inquired about availability this month because of a funeral reception, but the booking was not accepted “because there is some stuff the Ministry of Tourism wanted us to do before we really open the hotel”.

Ms Bastian added: “The Ministry of Tourism wanted us to put in place hand sanitizer and we have them on order right now, but we are still waiting on the Ministry to return an e-mail to us what all of the protocols are. I’m working for July 1, but if I can get everything in place before the end of the month then we will try for that.

“It’s just a four-room inn.

We have both international and domestic tourism. We have a lot of tourists come in because we are situated right on the marina, so a lot of boat persons who stay in the marina would want a night rental for two or three nights just to get off of the boats. I saw a few boats out there on the marina now, but I think they were there before the COVID19 emergency lockdown started.”

PAGE 4, Wednesday, June 17, 2020

THE TRIBUNE

Unpaid Lucayan workers ‘authors of own distress’ FROM PAGE ONE (BHMA) president and attorney, accused the Grand Lucayan and the government of “cherry picking” who it will continue to pay amid the COVID-19 pandemic.

“The management there, the senior management, decided that they’re going to cherry pick and pick certain people they’d wish to pay and are paying, and are letting the others go without pay,” Mr Ferguson told Tribune Business.

“Some of them have not been paid since March, and this is a government entity.

It is our understanding that all government employees are to receive their pay until the government gives instructions otherwise. There’s no logical reason for this. We are trying to ascertain on whose authority they’re not making payments to staff.

“I have my vice-president Kirk Russell, a chef. He’s not

been paid, and they’ve been unable to give him any information.” Mr Ferguson said he had corresponded with Dionisio D’Aguilar, minister of tourism and aviation, who told him he was unaware of the issue when they exchanged e-mails on June 2.

Describing the situation as “very serious”, Mr Ferguson added: “The implication is that this can now be the norm at all government and public corporations. It was my understanding that all public sector entities would continue to be paid and, if the government has changed policy, we should know.

“If there’s going to be a change of policy it’s only reasonable to expect to sit with the collective bargaining agent, which is the BHMA, and discuss it. You cannot discontinue the pay of the worker and expect it to go like that. You cannot pay some and not the rest of them. The large majority of them they’ve

decided not to pay.”

Mr Ferguson said he and the union were trying to determine whether the alleged “cherry picking” had been instigated and approved by the government before determining their next course of action.

His assertions, though, were instantly dismissed by Mr Scott who argued that the employees involved had been less than co-operative when the Grand Lucayan was forced to largely shut as a result of COVID-19.

“We had to decide what to do with the remaining staff,” he told Tribune Business.

“We gave them their outstanding vacation pay, there was the emergency welfare fund where we distributed what was due to staff, and assisted them with filing their NIB claim because most of them were furloughed.

“We sat down with them and walked them through the process because that archaic NIB process can be daunting

for people not sophisticated or used to doing it online.

The 40 people he’s [Mr Ferguson] talking about are the 40 who refused to go on the NIB process.

“We had to look out for the public interest. You cannot get blood out of a stone. We had to do the same thing as a lot of other businesses. I am so tired of this. We didn’t cut anybody. We said we cannot do it, like a lot of other businesses. We said we will help you navigate the NIB process and the persons he’s talking about are those who refused to work along with us. In short, they are the authors of their own distress,” Mr Scott continued.

“The staff up there, the first-tier management staff, have bent over backwards to help those people. We did the best we could, and I’m satisfied that the management did an excellent job. This complaint is joke; an utter waste of time.

“I’ve got two competing

interests to balance here; the hotel and the staff, and the overall public interest. I cannot spend tons of public money paying people not to work when others are not working. It makes no sense.

I’m more concerned about the bigger picture, but I can say to you that we’ve not thrown these people to the wolves.”

Arguing that it would be “impossible” for himself and senior Grand Lucayan management to “cherry pick” who they pay or not, Mr Scott suggested that union and political forces were behind the complaints.

He added that, in any case, the resort was working to prepare the final severance/ termination packages for all remaining staff as part of the Grand Lucayan’s sale to ITM/Royal Caribbean’s Holistica joint venture. Such moves are customary when hotel owners change, and they allow the new proprietor to start with a clean slate,

and the QC added that terminations were likely to be “staggered”.

“We’re trying to get the Holistica deal to close within the next month,” Mr Scott revealed to Tribune Business.

“There’s no point to any further extensions. They need to get in place and, when the economy is fully recovered, they should be able to commence construction and get on with it.

“I’m told they’re gradually putting all their ducks in a row. When we coalesce, both sides, on a final date all the other pieces will be worked out. We’re trying to push to get them [Holistica] to get the Hutchison deal concluded. I understand there are one or two minor derivative points to be sorted, but we’re close overall.

“I can’t say definitely when and how, but we’re close to getting this concluded. When I’ve done my duty on the severance, it’s no longer my headache.”

Contractor’s part win over bungled BTC agreement FROM PAGE ONE invested about $60,000 of his own money at this juncture and he had employees to pay,” Justice Winder noted. “Mackey denies ever agreeing to accept the 276 points per day (46 per crew per day) that [BTC] was the correct amount of points.

“He argues that he was merely being understanding of the defendant’s claim that they were waiting for the business to take off in order to provide him with the agreed upon compensation.” KT MacTech was then hit by temporary

labour unrest just prior to Christmas 2016, as some crews - dissatisfied with their bonus - quit and left the firm with just two installation crews, well short of the six mandated by the BTC contract.

Mr Mackey, though, said he was able to source new employees over the Christmas period and sought training for them from BTC. The carrier was required by the contract to provide this, but it terminated the arrangement with KT MacTech in early January 2017.

BTC’s witnesses all contradicted Mr Mackey’s assertions on the “276

minimum points per crew per day”. Kirkwood Ferguson, a BTC senior manager of field operations with 39 years’ experience, said one fibre-to-the-home installation would take 90 minutes or nine points. As a result, he could only schedule between 42 to 48 points per day to his technicians.

And Edris Elliot, BTC’s director of service delivery and field services, said achieving 276 points per crew per day “would indicate 46 hours of work being performed or performable by each of [KT MacTech’s] crews in a 24-hour time period”. She estimated that each crew was capable of

conducting 7.67 hours of work per day.

Farrell Goff, who served as BTC’s technical manager when the KT MacTech deal was made, said it was “impossible to carry out 27 installs per day”. Their evidence was backed up by former KT MacTech employees and Leonardo Johnson, owner of another BTC contractor, Splice & Connect Company, who said six installations per day was the maximum that could be carried out.

Justice Winder, preferring the evidence from BTC’s witnesses, said Mr Mackey had not convinced him he was approached

To advertise in The Tribune, contact 502-2394 MARKET REPORT www.bisxbahamas.com

(242) 323-2330

TUESDAY, 16 JUNE 2020

(242) 323-2320

ALL SHARE INDEX: CLOSE: 2,138.94 | CHG: 0.07 | %CHG: 0.00 | YTD: -92.66 | YTD%: -4.15 BISX LISTED & TRADED SECURITIES 52WK HI 4.45 22.65 7.00 6.75 2.58 2.00 5.47 12.77 6.16 4.50 10.30 3.64 5.10 10.88 8.44 16.99 9.40 4.25 15.21

52WK LOW 3.35 20.91 5.50 5.39 1.78 0.67 2.00 11.05 5.60 3.62 5.41 2.53 1.85 8.00 7.10 13.04 6.98 3.20 13.90

SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson

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

1000.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Fidelity Bank Class A Focol Class B

CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB

PREFERENCE SHARES

1.00 10.00 1.00

1.00 10.00 0.90

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y

BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

LAST CLOSE 3.55 17.43 6.00 6.75 1.78 1.62 3.00 11.26 6.10 4.00 6.01 3.01 5.10 9.81 8.44 14.50 8.97 4.00 15.20

CLOSE 3.55 17.43 6.00 6.75 1.78 1.62 3.00 11.26 6.10 4.00 6.01 3.03 5.10 9.88 8.44 14.50 8.97 4.00 15.20

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.02 0.00 0.07 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 10.00 0.90

1000.00 1000.00 1000.00 1000.00 1.00 10.00 0.90

0.00 0.00 0.00 0.00 0.00 0.00 0.00

CLOSE 100.00

CHANGE 0.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

VOLUME

90

3,700

VOLUME

EPS$ 0.239 0.932 1.760 0.369 0.070 0.000 -0.438 0.722 0.449 0.184 0.140 0.102 0.467 0.646 0.728 0.816 0.939 0.203 0.631

DIV$ 0.170 1.260 0.000 0.260 0.000 0.020 0.000 0.720 0.220 0.120 0.000 0.434 0.060 0.328 0.240 0.540 0.200 0.120 0.610

P/E 14.9 18.7 N/M 18.3 N/M N/M -6.8 15.6 13.6 21.7 42.9 29.7 10.9 15.3 11.6 17.8 9.6 19.7 24.1

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

YIELD 4.79% 7.23% 0.00% 3.85% 0.00% 1.23% 0.00% 6.39% 3.61% 3.00% 0.00% 14.32% 1.18% 3.32% 2.84% 3.72% 2.23% 3.00% 4.01% 0.00% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%

INTEREST Prime + 1.75%

MATURITY 19-Oct-2022

6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%

20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022

YTD% 12 MTH% 1.04% 3.87% 0.61% 2.93% 0.50% 2.50% -1.34% 2.23% -12.71% -5.79% 0.94% 3.72% -3.46% 2.09% -0.11% 3.43% -3.33% 1.53% -0.32% 10.20% -1.58% 15.37% 0.88% 5.22% -4.91% 10.77% 1.89% 6.75% -1.95% 0.38% N/A N/A -10.90% -4.30% -18.80% -12.00%

NAV Date 31-Mar-2020 31-Mar-2020 27-Mar-2020 31-Mar-2020 31-Mar-2020 31-Mar-2020 31-Mar-2020 31-Mar-2020 31-Mar-2020 29-Feb-2020 29-Feb-2020 29-Feb-2020 29-Feb-2020 29-Feb-2020 29-Feb-2020

MUTUAL FUNDS 52WK HI 2.31 4.40 2.10 198.39 168.29 1.67 1.85 1.76 1.24 8.34 10.26 7.00 12.15 12.58 10.81 10.00 8.98 11.79

52WK LOW 1.67 3.30 1.68 164.74 116.70 1.61 1.75 1.70 1.14 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund Leno Preferred Income Fund Leno Growth Fund Leno Diversified Fund Leno Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

NAV 2.31 4.39 2.10 192.52 145.55 1.67 1.79 1.75 1.16 8.31 10.07 7.00 11.42 12.58 10.52 N/A 8.31 10.01

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 | COLONIAL 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333

31-Mar-2020 31-Mar-2020 31-Mar-2020

by BTC executives seeking “forbearance” on what was owed. “There is also nothing to suggest [BTC], formally the nation’s only telecommunications provider, was unable to settle its debts as suggested by the plaintiff,” he wrote.

“I am satisfied that the plaintiff’s [KT MacTech] presentation of the invoices in the sum representing the minimum commitment as 276 points per day (as opposed to 276 points per crew per day) on 11 consecutive occasions was no more than a recognition of the fact the parties understood that these were the agreed terms relative to the minimum commitment, notwithstanding the written document...

“It seems unusual that any reasonable businessman or business would leave its money in limbo without an assurance to when it would be paid.

Instead, [KT MacTech] rendered invoices as if the requested sums were complete and ‘identified’ the amount as the minimum commitment. Even if there was to be a forebearance, what was the justification for omitting any indication that a balance was owed.”

Justice Winder said it was hard to accept that KT MacTech would go half the agreement’s life without any idea as to when the

balance owed to it would be paid, while it also failed to raise a word in protest or demand that BTC make it whole. No accumulating arrears were shown on any of its invoices.

He found that KT MacTech was well aware of the contractual error, and “cannot be permitted to take advantage” of this given that it performed half the contract without objection. As a result, Justice Winder rejected the full amount of its damages claim.

However, he also threw out BTC’s breach of contract claim stemming from KT MacTech’s inability to perform its work due to staff shortages. Finding that there was “no fundamental breach”, Justice Winder said two work crews remained and there was no evidence installations were required over the Christmas holiday.

He also found that BTC had failed to train KT MacTech’s new employees as mandated by the contract. As a result, Justice Winder found it could not terminate their agreement for cause and thus BTC owed the 90 days’ notice provided to its former contractor.

BTC was represented by attorney Raynard Rigby, while Wayne Munroe QC acted for KT MacTech.

THE TRIBUNE

Wednesday, June 17, 2020, PAGE 5

Bahamian resorts give mixed relaunch dates FROM PAGE ONE

room has suffered a reduction in seating as tables have been set further apart.

While Breezes’ specialty restaurants will be closed initially, their menu items will be served on different days in the main dining room.

“Bedrooms will undergo even greater cleaning and sanitising, not only prior to the arrival of guests but during their stay,” the resort added. “Frequently handled items, such as television remote controls, telephones, handles, doors etc will be disinfected daily - if the guest requests these housekeeping services.

“Breezes expects occupancy to be low on opening day, so team members will

be recalled to work as occupancy increases. Breezes has 1,000 feet of beach so social distancing on the beach is easy. For groups that visit Breezes, the hotel will have the groups use the eastern beach.”

Jermaine Wright, Comfort Suites general manager, declined to comment on the resort’s planned re-opening when contacted by Tribune Business yesterday. However, a June 9, 2020, letter posted to the resort’s website and signed by himself, addressed to its “travel partners”, sets the re-opening date at July 1.

“The COVID-19 global health pandemic has ushered in an unprecedented environment that has impacted all of us globally,” Mr Wright wrote.

“The Government of The

Bahamas has announced the official re-opening of the borders to commercial flights effective July 1.

“Accordingly, Comfort Suites Paradise Island will resume operations on Wednesday, July 1, 2020.

This date replaces the previously targeted re-opening date of June 29, 2020, as indicated in our temporary operation suspension notice issued on March 25, 2020.”

Mr Wright warned potential guests that Comfort Suites has “been mandated to discontinue” its full American buffet breakfast service through September 30, 2020, as a result of the need to implement and enforce COVID-19 health and safety measures.

“The past 12 weeks have certainly been abnormal,” he added. “However, we are

positive that with the launch of our new health and safety initiatives we are ready and eager to welcome our mutual clients back to vacation in paradise.”

Tribune Business understands that Comfort Suites’ fellow Paradise Island resort, the RIU, is also scheduled to re-open on July 1 but this could not be confirmed before press time last night. However, the number of properties following the lead established

by Baha Mar and Sandals Royal Bahamian in electing to delay their re-opening also increased yesterday.

The hotel union’s Mr Woods confirmed that Club Med had informed him that the Columbus Isle resort will not be re-opening until almost Christmas when he spoke to them last week.

“The last thing I heard from them is that this one and Turks & Caicos are going to open on December 12,” he told Tribune Business.

“We’re trying to find out exactly what the details are.

It’s very concerning because Club Med is the major employer on the island with 176 workers or thereabouts.

We’ll have to see exactly what happens, what’s going on.”

Adding that the union is also bracing for job cuts at the Melia Nassau Beach resort, which could impact between 15-20 percent of the workforce like Baha Mar, Mr Woods said the instant re-opening of Bahamian resort properties would signal to the tourism market that this nation has regained its critical mass and provide

confidence to travel.

“Once the travelling public sees that more properties are open, it gives a semblance of normalcy,” the union chief explained.

“I believe the major resorts being open would lend more confidence to the travelling public, and give a more stable look to the economy.

“We were hoping with the re-opening of Atlantis it would have a domino effect in a positive direction, but we have two resorts indicating they are making persons redundant and the Hilton has already done so.

Everything is predicated on tourists being able to travel.

It’s just a very bad scenario and situation. There’s a wave we have to ride out and hope we do not get gobbled up in it.”

‘Too early’ to decide Web shop taxes set to generate 43.5% increase new/increased taxes FROM PAGE ONE

FROM PAGE ONE debt beyond the $10bn mark by June 2022.

Predicted to hit hit $9.5bn, a sum equivalent to 82.6 percent of Bahamian gross domestic product (GDP) this fiscal year, the Budget forecasts project this will steadily rise to $10.32bn in 2021-2022 and $10.614bn in 2022-2023. The debtto-GDP ratio is forecast to peak at 85.6 percent in 2021-2022 before dropping to 83.1 percent the following fiscal year as economic growth returns to a higher level than 2019-2020.

This is forecast to produce a 15.5 percent, or more than $58m, increase

in The Bahamas’ debt servicing (interest) costs over three years. The interest bill just to service the national debt is forecast to rise from $377.052m to $435.498m by the 2022-2023 fiscal year, further cementing its place as the largest and most costly line item in the government’s annual budget.

However, the debt projections in the budget forecast do not contain the guarantees the government has given on behalf of the public corporations (usually around six to seven percent of GDP) or the multi-billion dollar civil service unfunded pension liabilities. As a result, the total national debt is likely much higher.

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LEGAL NOTICE

N O T I C E OMBVEST LIMITED ____________________________________ Pursuant to the Provisions of Section 138 (8) of the International Business Companies Act 2000, notice is hereby given that the above-named Company has been dissolved and struck off the Register pursuant to a Certificate of Dissolution issued by the Registrar General on the 27th day of May, 2020.

Delano Aranha Liquidator of OMBVEST LIMITED

had yet to correct an “embarrassing oversight” in failing to specify when the web shop patron winnings tax takes effect.

The regulations failed to give the date for when the tax would start when they were laid in the House of Assembly last year, and the government had planned to correct this until the pandemic intervened. The date oversight has added further delay to the levy’s imposition, as web shop operators were last year afforded additional time to have their games tested and certified by independent laboratories that the terms and conditions had not

been altered due to the tax’s introduction.

The new winnings tax, when it eventually comes into effect, will see five percent paid on winnings up to $1,000 and 7.5 percent on anything greater than $1,000.

Dionisio D’Aguilar, minister of tourism and aviation, told the House of Assembly earlier this year that just 45 percent of web shop gaming activities will attract the new patron “winnings” tax with online casino spins remaining untouched “for now”. He added that the government had decided to focus this levy solely on lottery/numbers operations because it was too “complicated” to

To advertise in The Tribune, contact 502-2394

NOTICE NOTICE is hereby given that CLAUDIA DECIUS, Garden Hills #2, New Providence, The 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 Wednesday 17th day of June 2020 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE NOTICE is hereby given that JEFFNEY FERDIN, St. Augustine Road, New Providence, The 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 Wednesday 17th day of June 2020 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

calculate the winnings from online casino spinning.

Mr D’Aguilar said this “small tax on winnings” was projected to yield between $10m-$15m annually for the Public Treasury and help take the government closer to the $50m total web shop revenue target it had envisioned under the initial tax structure for the industry.

He indicated that Bahamian gamblers had got off relatively lightly, as the comparable winnings tax rates in Jamaica and Barbados are 15 percent and 20 percent, respectively. In the US, he added that the federal tax rate was 25 percent, with state and local taxes on top of that.

NOTICE NOTICE is hereby given that MICHELLA MARIA MARSHALL, Millers Height, Nassau, New Providence, The 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 Wednesday 17th day of June 2020 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE IN THE ESTATE OF RONALD ANTHONY ROBERTS late of the Settlement of Spanish Wells, St. George’s Cay in the Commonwealth of The Bahamas, Deceased IT IS HEREBY NOTIFIED, for the information of those it may concern, that all persons having any claim or demand against the above Estate are required to send the same to the undersigned on or before the 1st day of July, A.D. 2020 and if so required by notice in writing from the undersigned to come in and prove such demand or claim or in default thereof be excluded from the benefit of any distribution made before such debts are proved; AND NOTICE is hereby given that all persons indebted to the said Estate are requested to settle their respective debts at the Chambers of the undersigned on or before the date hereinbefore mentioned.

Dated the 10th day of June, A.D. 2020 CALLENDERS & CO. Chambers, One Millars Court, P.O. Box N-7117, Nassau, The Bahamas

Attorneys for the Personal Representative

PAGE 8, Wednesday, June 17, 2020

THE TRIBUNE

THE WEATHER REPORT

5-Day Forecast

TODAY

ORLANDO

High: 90° F/32° C Low: 71° F/22° C

TAMPA

THURSDAY

FRIDAY

SATURDAY

SUNDAY

Mostly cloudy; show‑ ers, t‑storm

Mostly cloudy; shower or t‑storm

A couple of showers and a t‑storm

A shower and thun‑ derstorm around

Partly sunny with a stray t‑storm

Clouds and sun, a t‑storm in spots

High: 85°

Low: 78°

High: 86° Low: 79°

High: 88° Low: 76°

High: 87° Low: 76°

High: 87° Low: 77°

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

95° F

84° F

95°-83° F

98°-83° F

98°-82° F

99°-82° F

High: 91° F/33° C Low: 74° F/23° C

The exclusive AccuWeather RealFeel Temperature® is an index that combines the effects of temperature, wind, humidity, sunshine intensity, cloudiness, precipitation, pressure and elevation on the human body—everything that affects how warm or cold a person feels. Temperatures reflect the high and the low for the day.

N

almanac

E

W

ABACO

S

N

High: 82° F/28° C Low: 78° F/26° C

7‑14 knots

S

High: 86° F/30° C Low: 74° F/23° C

6‑12 knots

FT. LAUDERDALE

FREEPORT

High: 87° F/31° C Low: 74° F/23° C

N E S

E

W

WEST PALM BEACH

W

uV inDex toDay

TONIGHT

High: 87° F/31° C Low: 76° F/24° C

MIAMI

High: 87° F/31° C Low: 77° F/25° C

6‑12 knots

Statistics are for Nassau through 2 p.m. yesterday Temperature High ................................................... 84° F/29° C Low .................................................... 75° F/24° C Normal high ....................................... 87° F/31° C Normal low ........................................ 74° F/23° C Last year’s high ................................. 88° F/31° C Last year’s low ................................... 77° F/25° C Precipitation As of 2 p.m. yesterday .................................. trace Year to date ............................................... 23.26” Normal year to date ................................... 11.42”

ELEUTHERA

NASSAU

High: 85° F/29° C Low: 78° F/26° C

Forecasts and graphics provided by AccuWeather, Inc. ©2020

High: 82° F/28° C Low: 79° F/26° C

N

KEY WEST

High: 87° F/31° C Low: 80° F/27° C

High: 85° F/29° C Low: 81° F/27° C

N

S

E

W

6‑12 knots

S

6‑12 knots Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

High

Ht.(ft.)

Low

Ht.(ft.)

Today

5:39 a.m.

6:14 p.m.

2.2 2.7

11:50 a.m. 0.2 ‑‑‑‑‑ ‑‑‑‑‑

Thursday

6:24 a.m.

6:56 p.m.

2.2 2.9

12:40 a.m. 0.4 12:31 p.m. 0.1

Friday

7:08 a.m.

7:38 p.m.

2.2 3.0

1:24 a.m.

1:12 p.m.

0.3 0.0

Saturday

7:51 a.m.

8:19 p.m.

2.3 3.1

2:07 a.m.

1:53 p.m.

0.2 0.0

Sunday

8:34 a.m.

9:00 p.m.

2.3 3.2

2:49 a.m. 0.1 2:34 p.m. ‑0.1

Monday

9:17 a.m.

9:43 p.m.

2.4 3.2

3:31 a.m. 0.1 3:17 p.m. ‑0.1

Tuesday

10:02 a.m.

10:27 p.m.

2.4 3.2

4:15 a.m.

4:03 p.m.

0.0 0.0

sun anD moon Sunrise Sunset

6:20 a.m.

8:02 p.m.

Moonrise Moonset

3:44 a.m.

4:55 p.m.

New

First

Full

Last

Jun. 21

Jun. 28

Jul. 5

Jul. 12

ANDROS

SAN SALVADOR

GREAT EXUMA

High: 85° F/29° C Low: 80° F/27° C

High: 85° F/29° C Low: 81° F/27° C

N

High: 84° F/29° C Low: 80° F/27° C

E

W S

LONG ISLAND

tracking map

High: 86° F/30° C Low: 80° F/27° C

L

tiDes For nassau

CAT ISLAND

E

W

The higher the AccuWeather UV IndexTM number, the greater the need for eye and skin protection.

6‑12 knots

MAYAGUANA High: 87° F/31° C Low: 81° F/27° C

Shown is today’s weather. Temperatures are today’s highs and

CROOKED ISLAND / ACKLINS

tonight’s lows.

RAGGED ISLAND High: 85° F/29° C Low: 81° F/27° C

High: 86° F/30° C Low: 81° F/27° C

GREAT INAGUA High: 88° F/31° C Low: 81° F/27° C

N W

N E

W

E S

S

7‑14 knots

7‑14 knots

marine Forecast ABACO ANDROS CAT ISLAND CROOKED ISLAND ELEUTHERA FREEPORT GREAT EXUMA GREAT INAGUA LONG ISLAND MAYAGUANA NASSAU RAGGED ISLAND SAN SALVADOR

Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday:

WINDS NE at 6‑12 Knots E at 6‑12 Knots NE at 6‑12 Knots ESE at 7‑14 Knots E at 6‑12 Knots ESE at 7‑14 Knots E at 7‑14 Knots E at 8‑16 Knots ENE at 4‑8 Knots ESE at 7‑14 Knots ENE at 6‑12 Knots ESE at 6‑12 Knots NE at 6‑12 Knots ESE at 7‑14 Knots E at 7‑14 Knots E at 8‑16 Knots E at 7‑14 Knots E at 8‑16 Knots ESE at 8‑16 Knots E at 8‑16 Knots E at 6‑12 Knots ESE at 7‑14 Knots E at 7‑14 Knots E at 8‑16 Knots NE at 6‑12 Knots ESE at 7‑14 Knots

WAVES 2‑4 Feet 2‑4 Feet 1‑2 Feet 1‑3 Feet 1‑3 Feet 2‑4 Feet 3‑5 Feet 3‑6 Feet 1‑3 Feet 2‑4 Feet 1‑3 Feet 1‑3 Feet 1‑2 Feet 1‑3 Feet 2‑4 Feet 3‑6 Feet 1‑3 Feet 2‑4 Feet 3‑5 Feet 3‑6 Feet 1‑2 Feet 1‑3 Feet 1‑3 Feet 3‑5 Feet 1‑2 Feet 1‑3 Feet

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502-2394

VISIBILITY 10 Miles 10 Miles 10 Miles 6 Miles 10 Miles 10 Miles 10 Miles 10 Miles 3 Miles 6 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles

WATER TEMPS. 83° F 82° F 85° F 85° F 84° F 83° F 84° F 84° F 83° F 82° F 84° F 84° F 85° F 85° F 84° F 84° F 84° F 84° F 83° F 83° F 83° F 83° F 84° F 84° F 84° F 83° F