06262018 business

business@tribunemedia.net

TUESDAY, JUNE 26, 2018

$4.80

Graycliff chief hits out over Tobacco Bill * WOULD PUT CIGAR MAKER ‘OUT OF BUSINESS’ * BILL’S PROVISIONS ‘ABSOLUTELY DREADFUL’

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net A PROMINENT Bahamian cigar manufacturer and hotelier yesterday warned that “absolutely dreadful” legislative reforms will “put us out of business” if implemented.

Paolo Garzaroli, Graycliff Cigar Company’s president, hitting out at the Tobacco Control Bill 2017, told Tribune Business: “The law will basically put us out of business if they try and implement it.”

He cited the numerous “absolutely dreadful” restrictions imposed on retailers as outlined in the Bill, and urged the government to reconsider legislative proposals now circulated for stakeholder feedback.

“We can’t do promotional events. The government calls us and says: ‘Hey, why don’t you bring your cigar roller and let people see we make cigars here?’ We can’t do that. Ninety per cent of the stuff that we do we won’t be able to,” said Mr Garzaroli of the Bill’s consequences.

“If someone is in the out islands - it happens all the time - and they say can you send me a box on the boat or the plane, we can’t do that. If they buy them, we can’t ship it to them. They would have to go to a store, pay them, and I would have to ship it to the store.

“It would be illegal.

It’s a $100,000 fine and a year in prison for a firsttime offence, and then $250,000 or five years for a second-time offender and continues to go up. It’s ridiculous. If it was cigarettes I could understand that, but it’s not cigarettes; it’s cigars. Persons would not be allowed to touch a cigar until they pay for it.”

Mr Garzaroli was highlighting a section of the Bill which states that: “A person shall not, for consideration, cause a tobacco product to be delivered or sent by mail unless the

SEE PAGE 4

$4.82

$4.75

Budget’s sacrifices can’t be ‘one-sided’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

HE government must “make the same sacrifices” it is demanding of Bahamian taxpayers, a top accountant yesterday warning that past lax spending habits will no longer be “tolerated”.

Craig “Tony” Gomez, the Baker Tilly Gomez accountant and partner, told Tribune Business that the government needed to show it will match the increased tax burden imposed on the Bahamian people by eliminating wasteful and unnecessary expenditure.

While acknowledging that the budget’s tax hikes were “necessary” to fill a $400m financial hole, Mr Gomez said the government could demonstrate it was fulfilling its side of the bargain in tangible ways such as cutting back on the number of “red-plated” vehicles seen on the roads at the weekend.

He added that the public

* Govt must match VAT hike with waste cut * Accountant points to ‘red plate’ car usage * Public sector can’t be immune from hardship

CRAIG GOMEZ

sector could not continue to be immune from the hardships felt by private sector workers, such as hotel employees already facing reduced work weeks as summer approaches, arguing that “the pain” from the VAT rate increase and other measures needed to be shared equally.

Emphasising that the government now needed to fulfill its pledges of full fiscal transparency and accountability, Mr Gomez said it had to deliver the benefits it promised from its fiscal consolidation plan to Bahamians in ways they can see and feel.

The Baker Tilly partner also warned against using the projected $400m VAT revenue increase to simply increase government spending, as the former Christie administration had done, and echoed other observers in pointing out that The Bahamas cannot tax its way to growth.

Mr Gomez argued that the government needed to lay out a clear, achievable near-term growth plan, adding that any further hike in the VAT rate within the next three years would be unacceptable to Bahamian taxpayers.

Yet he backed assertions

by KP Turnquest, deputy prime minister, that The Bahamas is one major hurricane away from financial disaster, with the government possessing “no wiggle room at all” should a Hurricane Matthew-type event occur.

“With regards to the budget, my own view is that it is necessary,” Mr Gomez told Tribune Business. “Not everyone is going to agree, but if you’re comparing it to a home budget where you’re asking everyone in the home to make a sacrifice, not everyone is going to be happy but it is being done for the good of all.

“The government, by virtue of passing the budget, has taken on the responsibility of carrying it out for the benefit of The Bahamas

SEE PAGE 3

Small businesses urged: delay lay-offs to October

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net SMALL businesses were yesterday urged to delay lay-offs until October, a sector consultant revealing over one-third of his clients are eyeing immediate cutbacks amid VAT-related “panic”.

Mark A Turnquest told Tribune Business that while start-ups needed to make “some serious adjustments to their business model” in response to the imminent VAT rate hike, they should avoid “jumping to conclusions” that downsizing was inevitable.

He revealed that 40 percent of his small business clients were faced with having to absorb the 60 percent rate increase themselves, as they fall below the $100,000 annual turnover threshold that mandates they become VAT registrants.

As non-registrants they are unable to charge VAT to consumers, but are still faced with paying the same levy on their inputs.

This means the VAT rate

$4.91 Govt urged: ‘Stop running aviation industry by crisis’

* Adviser: one-third of clients eye cuts * ‘Panic’ over imminent VAT rate hike * Rise adds to costs, many can’t net-off increase to 12 percent will raise their own costs, and Mr Turnquest said 90 percent of his non-VAT registrant clients were already contemplating layoffs in response.

He disclosed that he had advised against such a knee-jerk response, and instead was urging small businesses to hold off until October to allow time for the VAT rate increase’s impact on consumer spending and the wider economy to work its way through.

“My clients are unhappy with the VAT increase because they said it was too short notice, and for the small business under $100,000 it is an additional business expense for them,” Mr Turnquest told Tribune Business.

“Forty percent of my clients are under $100,000.

It is a major impact. They have to absorb all that 4.5 percentage point extra cost,

and the expense associated with that. Of those, 90 percent of them indicated their staff complement will be reduced. If they can’t see where to make ends meet, MARK A they will have to lay-off TURNQUEST on their beststaff. selling products “I told them: Try not to and services; lay-off people even if you tight inventory managehave to put them on half ment and a focus on buying weeks,” Mr Turnquest con- in bulk to lower costs. tinued. “I also told them “I have spoken to a lot of not to do anything until my clients, and told them October; don’t jump to that they have to make some conclusion. serious adjustments to their “They’re panicking about business model by doing next week [VAT increases their best to reduce costs,” from July 1]. I told them to he revealed. “They have to wait. I have all my clients buy in bulk and, to manage looking to October as a costs, focus on high-flypotential turn to determine ing products and services how we move forward, and they can sell - the frequent looking at the cost structure sellers.

“I told them to minimise of their organisations.”

Mr Turnquest said he had any slow-selling stock, and advised entrepreneurs and they have to manage their small business start-ups to inventory very, very proacmitigate the budget’s VAT tively because of the costs increase in other ways, prinSEE PAGE 4 cipally through focusing

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net A BAHAMIAN aviation executive yesterday questioned the government’s plan for the sector again, and urged: “stop governing by crisis.”

Sky Bahamas chief executive, Randy Butler, pictured, was responding to statements by minister of tourism and aviation, Dionisio D’Aguilar, who confirmed to Tribune Business that Bahamasair’s lenders have again been asked to defer principal repayment on its $120m loan for another year, as there was simply “no headroom” in the 2018-2019 budget to accommodate such outlays.

Mr Butler told Tribune Business: “all this underscores is the fact that there needs to be a national plan for this industry. What is the future of Bahamasair? What is the vision for the airline, and how will the privateowned airlines factor into it all? We have to stop this governing by crisis; reacting when things happen but not having a plan for the industry.”

He recalled statements by then-Deputy Prime Minister Philip Davis, who on the heels of a Bahamasair pilot strike back in December 2014 stated that stakeholders needed to realise the airline was “no longer an essential service”.

Still, the Christie administration authorised the $120m loan in 2016 to reequip Bahamasair’s fleet and refinance its existing debt, replacing its Dash-8 planes with five ATR turbo prop aircraft. Interest (debt servicing) costs on the loan are understood to run close to $10m per annum.

“Is it an essential service?

Bahamasair doesn’t go to most of the Family Islands but is taking Bahamians to Florida every day for shopping trips,” Mr Butler said. “There really should be a master plan for Bahamasair. Right now, they could only operate with subsidies. There has to be a goal and a vision. You have to get people to buy-in, and you have to measure the performance.”

Retailers given until end-august for VAT pricing adjustments

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMIAN retailers have until August 31 to adjust prices for the 12 percent VAT, with top government officials yesterday expressing confidence that the transition will “not disrupt” commerce.

Marlon Johnson, the Ministry of Finance’s acting financial secretary, told Tribune Business that the extra two months was a “reasonable” extension that will allow large retailers with thousands of shelf and inventory items to reprice - more time to meet the budget’s requirements.

“This is just because we know there are retailers that have hundreds, if not thousands, of items to go

through,” he explained of the August 31 deadline.

“They will be required to put signage throughout their establishments that the correct VAT will be assessed at the counter and on consumers’ receipts.

“That gives them time to make the changes they have to. We have ‘big box’ retailers and supermarkets that have thousands of items to reprice. There’s some who will get it done in time, but we want to be mindful of the necessary changes they have to go through. We felt it would be reasonable to them.”

The VAT transition “guidance notes” were finally released to the Bahamian private sector at the weekend, giving various industries and individual businesses just one week

* TRANSITION GUIDANCE RELEASED WITH WEEK TO GO * TOP FINANCE OFFICIAL CONFIDENT ‘NO DISRUPTION’ * NO REAL ESTATE ESCAPE ON ‘EXEMPT’ STATUS to comply with the “fine details” of the budget’s requirements before the 12 percent VAT rate comes into being on July 1.

Confirming the extra two-month transition granted to Bahamian retailers, the “transition notes” state: “If you conduct business as a retailer there are some challenges that we

MARLON JOHNSON know that you will face in the repricing of items displayed for sale immediately after the coming into effect of the new VAT rates.

“You would be allowed to take any of the following measures until August 31 or otherwise as stated by the [VAT] comptroller. Although we expect you to exert every effort to ensure that your pricing is in keeping with the dictates of the VAT Act 2014 as amended,

SEE PAGE 3

THE TRIBUNE

Tuesday, June 26, 2018, PAGE 3

Retailers given until end-august for VAT pricing adjustments FROM PAGE ONE you will be allowed unchanged price tags and labels through to August 31, 2018, on condition that you display clear signs within your establishment(s) that indicate that the price tags may reflect the pre-July VAT rates, and that any adjustment will happen on the register.”

While retailers are to charge 12 percent VAT from July 1 “without exception”, individual items can be displayed without price tags. “You may display items supported by bin or locator labels, or signs showing the VAT exclusive price, the associated VAT or the fact that the item is zero-rated and the VAT inclusive price immediately adjacent to the goods offered for sale,” the notes add.

Many Bahamian businesses were yesterday grumbling about the late release of the “transition” guidance, several telling Tribune Business this was vital to clearing-up their remaining questions and enabling them to complete

system and business model adjustments prior to July 1.

“My counter to that is it was announced since May 30 that the VAT rate would be changed, and talking to retailers, wholesalers and merchants many of them are advanced in their plans and adjustments,” Mr Johnson told Tribune Business.

“We didn’t anticipate persons would wait to get guidance from us. We feel they’ll make it, especially as they are not having to deal with every single price tag.

Most of those I’ve spoken to have planned or made the necessary changes to be ready.

“In every change there are questions to be answered,” the acting financial secretary continued, “but we anticipate it will go fairly smoothly.

The merchants have been through it before, and have competent IT staff to make the changes to their systems.

“All things considered, we feel reasonably confident that there won’t be any disruption to activity and commerce come July 1.” Mr Johnson also reaffirmed that the VAT “zero rating” of all breadbasket food items and

medicines (prescription and over-the-counter drugs) will take effect from August 1, giving retailers and pharmacies time to adjust for these tax exemptions.

However, the VAT “transition notes” indicate that the government has made no concession to developers over property that remains unsold after June 30, 2018.

Changes to the real estate tax structure mean that all property sales/purchases will now be treated as VAT “exempt”, meaning that developers can no longer recover the tax paid on their “input” costs.

“If you are a developer you may have, or be in the process of, acquiring real property. Transactions involving the sale or purchase of real property are now exempt as of July 1, 2018. Stamp tax is now, however, charged on all such transactions,” the transition notes state.

“All of the VAT you incur in the process of your development is not recoverable, as VAT on any taxable supplies in relation to an exempt supply is not available as an input tax credit deduction.”

Developers had previously

BUDGET’S SACRIFICES CAN’T BE ‘ONE-SIDED’

FROM PAGE ONE

and Bahamians. But this is not to say you can add income where there is no responsibility for accounting.

“It seems we have tolerated that in the past. But The Bahamas is a maturing financial country where things tolerated in the past are not tolerated today. In much the same way we are being asked to make a sacrifice, the government is being asked to do the same thing,” he continued.

“We are making a contribution, but the contribution is a two-sided event. In much the same way the country is facing financial trouble and challenges, and the sacrifice we are making is for the betterment of all, we expect the government to do likewise.

It is necessary for citizens to see the government making sacrifices.”

VAT is a regressive-based consumption tax and, while all Bahamians and residents will feel the 60 percent hike to 12 percent, those on lower incomes will be hit more than the wealthy because an even greater, higher share of their income is being taken in taxes.

The budget tax increases will reduce consumers’ disposable income and lower living standards, while also raising living costs, but the government argues the hikes are essential if The Bahamas is to put the public finances back on a sustainable footing, eliminate the fiscal deficit by 2020-2021 and pay off $360m in unfunded arrears.

The Minnis administration is also likely to argue that its spending will be constrained by the Fiscal Responsibility Bill, but this legislation has yet to be passed in Parliament. Many observers feel the budget was light on expenditure controls, although the deputy prime minister said half the “line items” were reduced or held constant for 2018-2019.

Mr Gomez yesterday said there were simple, yet tangible, ways for the government

to demonstrate it will share the fiscal consolidation burden by eliminating waste and inefficiency in its spending.

Dr Glen Beneby, the chief medical officer, previously said up to 25 percent of the government’s annual healthcare budget - close to $100m - is squandered on such practices, but the Baker Tilly partner recommended cutting back on the use of “red plated” public vehicles for non-work purposes.

“These are not necessarily the real needs, but they are perceived needs for the government to be perceived as cutting back on waste,” Mr Gomez told Tribune Business. “For example, the cry I often hear is - a lowhanging fruit the government can address - the sight of so many government red-plated cars moving around at nonessential hours, particularly on weekends, where children and family are riding around in these vehicles.

“While there may be a justifiable need for the use of government vehicles on weekends and holidays, Joe Public sees all this. He may be making a sacrifice, having to park his car more because gas has gone up, so why is the government not managing its affairs and budgeting in the same way.”

Mr Gomez said the public sector could no longer be immune from the hardships experienced by their counterparts in the private sector.

Taking the hotel industry as an example, he revealed that the rosy performance and outlook created by Baha Mar’s opening and a strong winter season was not necessarily being felt on the ground.

“If one were to question employees at a couple of these hotels, what is said is that what is being communicated is not necessarily happening at ground level,” he told Tribune Business. “Many employees are working three to four days a week, and with VAT going to 12 percent they are going to be taking on additional responsibilities.

“I have spoken to a number of them, and while their hours and days have been cut back they understand the challenge the country faces. These people want to see the same kind of sacrifice being made at the government level.

“I have spoken to those who run and manage some of the golf courses of the country. The golf market is not robust. Employees are working less hours, and there are less rounds of golf being played. There are sacrifices being made.”

Mr Gomez added that the government also needed to address perceptions surrounding the budget’s “formula”, especially the perception that the 2018-2019 version was making certain Bahamian families wealthier - a notion frequently heard “as you move about town”.

Turning to the budget’s economics, the Baker Tilly partner praised the work done by the deputy prime minister and his Ministry of Finance team, but urged it to avoid the former administration’s pitfall of using the VAT revenues to finance further spending increases.

“The government has to be sure the increase in revenue is not offset by a corresponding increase in expenditure,” Mr Gomez told Tribune Business. “And it has a challenge because the economy must get started outside of tax measures.

“Bahamian citizens want to know where the economic growth of The Bahamas is coming from in the next few years, the short-term. They do not want to see an increase in VAT from 12 percent to 14 percent next year or any time thereafter. They want to know there will be a decrease in the VAT rate because of government’s concerted effort to attract new business to The Bahamas.”

Mr Gomez added that the budget was “extremely tight”, and said: “It has no wiggle room. It has no wiggle room at all in the event of a major hurricane”, echoing concerns expressed by Mr Turnquest.

warned such tax treatment would mean “millions of dollars are on the line” as it would be “impossible” for them to claim back the 12 percent VAT on their input costs.

The former Christie administration changed the ten percent stamp duty levied on real estate sales to accommodate the current VAT rate, splitting this 7.5 percent/2.5 percent between VAT and stamp duty. But the 2018-2019 budget goes back to the ten percent stamp duty on all real estate purchases over $100,000.

This prompted warnings of increased real estate costs for both Bahamian and international buyers. Developers currently “net off” the VAT they pay on construction materials, and the likes of contractor, engineer and architect bills, against the “output” tax whenever a property is sold.

But the budget’s altered tax structure, by eliminating VAT, robs developers of the ability to claim back alreadypaid input tax, thus saddling them with a multi-million dollar increase in development costs that will likely be

passed on to buyers.

Edison Sumner, pictured, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chief executive, told Tribune Business that queries had already been raised by the private sector in relation to how the “transition guidance” deals with real estate transactions.

“We received the transition notes from the government over the weekend, and immediately distributed them to the private sector,” he said. “We’ve already got some questions back asking for clarity on some components of the rules, the treatment of real estate transactions, for example. That’s one of the ones that has come back to us so far.”

With less than a week left before the 12 percent VAT rate’s implementation, Mr Sumner said the Chamber was seeking urgent feedback from its members and the wider business community so that any final queries could rapidly be passed to the government for a response.

“As the business sector goes through the transition

notes and questions arise on areas that are unclear and uncertain, we’re asking them to write back to us so we can compile them and put them to the government,” Mr Sumner added.

“Since we are pressed for time with less than a week before the implementation, it’s important for everyone to have a level of comfort knowing they’re operating on an extremely tight timeline.”

Mr Sumner said the private sector had already expressed its concerns over the limited time allowed to adjust for the new VAT rate and exemptions, but conceded that the government had given key sectors - such as the retail, hotel and construction industries - “breathing room” in implementing the changes.

COMMONWEALTH OF THE BAHAMAS

1967

IN THE SUPREME COURT

No.61

Equity Side IN THE MATTER of ALL THAT tract of land containing 3.618 Acres square feet situate on the Northwestern side of Fox Hill Road and approximately 595 ft Northeasterly of the Fox Hill Road, Prince Charles Avenue Junction in the Eastern District of the Island of New Providence one of the Islands of the Commonwealth of the Bahamas bounded NORTHWARDLY by land now or formerly the property of Thomas Knowles and running thereon Six hundred and Twenty-three point fortytwo (623.42) feet EASTWARDLY by Public Road called and known as Fox Hill Road and running thereon Two hundred and Twenty-three point ninety-four (223.94) feet SOUTHWARDLY by land now or formerly the property of Prince Bodie and running thereon Six hundred and Fiftyfour point ninety-six (654.96) feet and WESTWARDLY by land now or formerly the property of Eastern Close Subdivision and running thereon Two hundred and Fifty-seven point eighty (257.80) feet which said tract of land has such position, boundaries, shape, marks and dimensions as are more particularly delineated on the subdivision plan filed with the Department of Lands and Surveys being Plan No.2641 N.P. and the plan filed in this action.

AND IN THE MATTER of The Quieting Titles Act, 1959 AND IN THE MATTER of the Petition of Building Heritage Limited.

NOTICE OF PETITION NOTICE is hereby given that BUILDING HERITAGE LIMITED of the Southern District of the Island of New Providence one of the Islands of the Commonwealth of The Bahamas (hereinafter called “the Petitioner”) claims to be the owner of the unencumbered fee simple in possession of the land hereinafter described, that is to say: ALL THAT tract of land containing 3.618 Acres square feet situate on the Northwestern side of Fox Hill Road and approximately 595 ft Northeasterly of the Fox Hill Road, Prince Charles Avenue Junction in the Eastern District of the Island of New Providence one of the Islands of the Commonwealth of the Bahamas and has made application to the Supreme Court in the Commonwealth of The Bahamas aforesaid under Section Three (3) of the Quieting Titles Act, 1959 to have its title to the said land investigated and the nature and extent thereof determined and declared in a Certificate of Title to be granted by the Court in accordance with the provisions of the said Act. A Plan of the said land may be inspected during normal office hours in the following places:(a) The Registry of the Supreme Court, Marlborough House, Marlborough Street North, Nassau, The Bahamas; (b) Shadrach A. Morris, Jr. & Co., Chambers, ShaRon House, 235 Baillou Hill Road, New Providence, The Bahamas.

NOTICE is hereby given that any person having dower or rights of dower or an adverse claim or a claim not recognized in the Petition shall on or before the expiration of Thirty (30) days of the last publication file in the Supreme Court and serve on the Petitioner and the undersigned a statement of his or her claim in the prescribed form, verified by an affidavit to be filed therewith. Failure of any such person to file and serve a statement of his or her claim on or before the Thirty (30) days after the last publication will operate as a bar to such claim.

DATED the 21st day of June A.D., 2018

SHADRACH A. MORRIS, JR. & CO.,

Chambers, ShaRon House, 235 Baillou Hill Road, P.O. Box N-4421 N.P., The Bahamas, Attorneys for Building Heritage Limited, the Petitioner herein

PAGE 4, Tuesday, June 26, 2018

THE TRIBUNE

Small businesses urged: delay lay-offs to october FROM PAGE ONE per unit associated with storage. They need to make an adjustment to all their business models. I’m meeting with them, and looking at all their models to determine how to streamline costs.”

Mr Turnquest added that the VAT rate increase was a potential deterrent to new Bahamian entrepreneurs and start-ups because it threatens to increase their operating costs while also depressing consumer demand and spending.

“The 12 percent VAT is a barrier for them to start,” he told Tribune Business.

“It tells them it’s more costly to start a business now, and because they are new they are uncertain.

“You can’t be making money at more expense. It doesn’t make good business sense. But a 12 percent VAT is a reality, and we have to face reality. The 12 percent is going to affect everybody.

Even with my business I have to do a lot of work to

make myself relevant, and make my cost structure efficient and effective, in order to to put my house in order and stay open.”

Mr Turnquest said small businesses needed to continue investing in marketing and advertising, but “do more with less” by focusing on their best and most loyal customers.

And he renewed his call for the government to pass the long-awaited Small and Medium-Sized Business Development Bill, an initiative now into its fourth administration, arguing that it would give Bahamian entrepreneurs hope amid further increases in the taxation burden.

“They’re still awaiting the Act,” he said of small businesses. “They really need to see the net benefits of all the incentives focused on small businesses, and want these initiatives to come together in an aligned and cohesive strategy.

“I told the government that if they have the Small Business Act it would bring all the initiatives under one

roof... They can’t run away from the Small Business Act. It was in the FNM’s manifesto. It’s still relevant and everyone’s asking for it. There’s no cohesive type of plan, and there’s a lot of uncertainty in reference to strategy.”

The government has committed to making $25m in funding available to small businesses over the next five years, and views the proposed Small Business Development Centre - an initiative where it is partnering with the University of The Bahamas and Bahamas Chamber of Commerce - as key to fostering an improved entrepreneurial climate.

Mr Turnquest, though, has consistently argued that the proposed legislation will give the government’s efforts “more teeth” and bring together initiatives such as the over-the-hill revitalisation with what the government is doing to aid small businesses in the Family Islands.

Graycliff chief hits out over Tobacco Bill FROM PAGE ONE delivery is between manufacturers or retailers; and a person shall not advertise an offer to deliver or mail a tobacco product anywhere within The Bahamas.”

His concerns echo those voiced by the Bahamas Premium Cigar Association (BPCA), which last week hit out at what it described as the government’s efforts to impose an additional “sin tax” on high-end, premium cigars through the planned Bill.

MARKET REPORT MONDAY, 25 JUNE 2018

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

BISX ALL SHARE INDEX: CLOSE 1,963.99 | CHG -1.24 | %CHG -0.06 | YTD -99.58 | YTD% -4.83 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 19.17 7.50 4.00 1.48 0.19 4.00 8.90 6.60 5.30 11.00 2.71 1.77 8.21 6.10 11.48 7.29 13.67 12.51

52WK LOW 3.50 17.43 7.50 3.32 0.90 0.12 3.10 8.50 6.00 3.15 9.00 2.30 1.40 7.25 6.00 9.50 5.67 3.25 12.50

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

1050.00 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 Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Fidelity Bank Class A Focol Class B

PREFERENCE SHARES

1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 105.00 100.00 100.00 10.00 1.00

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

E J K L M N

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

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

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) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

MUTUAL FUNDS 52WK HI 2.14 4.16 2.00 179.39 157.58 1.55 1.70 1.64 1.10 6.99 8.54 6.15 10.52 11.46 10.46

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.49 1.62 1.58 1.07 6.41 7.62 5.66 8.65 10.54 9.57

LAST CLOSE 4.40 17.43 9.09 4.00 1.01 0.18 3.10 8.89 6.12 4.20 10.90 2.59 1.70 7.86 6.10 11.00 6.32 3.44 12.51

CLOSE 4.40 17.43 9.09 4.00 1.01 0.18 3.10 8.89 6.12 4.20 10.90 2.61 1.72 7.87 6.10 11.00 6.32 3.41 12.51

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.02 0.02 0.01 0.00 0.00 0.00 -0.03 0.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

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

LAST SALE 100.00

CLOSE 100.00

CHANGE 0.00

106.57 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

106.57 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund

VOLUME

2,500

18,170

VOLUME

EPS$ 0.361 0.932 -0.306 0.283 -0.973 0.000 -0.996 0.638 0.573 0.171 0.627 0.102 0.231 0.000 0.545 0.679 0.610 0.277 0.631

DIV$ 0.080 1.130 0.000 0.230 0.000 0.010 0.000 0.320 0.220 0.120 0.620 0.060 0.070 0.084 0.320 0.500 0.200 0.120 0.580

P/E 12.2 18.7 N/M 14.1 N/M N/M -3.1 13.9 10.7 24.6 17.4 25.6 7.4 N/M 11.2 16.2 10.4 12.3 19.8

YIELD 1.82% 6.48% 0.00% 5.75% 0.00% 5.56% 0.00% 3.60% 3.59% 2.86% 5.69% 2.30% 4.07% 1.07% 5.25% 4.55% 3.16% 3.52% 4.64%

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

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

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%

INTEREST Prime + 1.75% 6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%

NAV 2.14 4.13 2.00 179.39 153.02 1.55 1.69 1.64 1.09 7.15 8.14 6.41 11.26 11.68 10.24

YTD% 12 MTH% 0.93% 4.18% -0.07% 5.20% 0.56% 2.38% 0.39% 5.05% -0.25% 4.57% 1.29% 4.18% -0.61% 2.84% 1.02% 3.84% -0.87% 1.82% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69%

MATURITY 19-Oct-2022 20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022 NAV Date 31-Mar-2018 31-Mar-2018 30-Mar-2018 31-Mar-2018 31-Mar-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018

Describing the existing 220 percent taxation rate as “stifling” for a niche that is popular with high-end tourists, Michael Maragh, the Association’s president, said “this already oppressed retail industry would effectively be killed off” should the government seek to extract further revenue.

He argued that there was no need for heavy-handed regulation or extra taxation on cigars, as studies had shown they carried “nowhere near the same level of risk” to health as other tobacco products.

However, Dr Duane Sands, minister of health, told Tribune Business that fears of a further hike in the 220 percent tobacco tax rate were premature as the Bill was “not yet ready for prime time”.

He conceded that the draft Tobacco Control Bill was “awfully draconian” and needs further work, with “absolutely no decision” taken over any taxation increase.

Dr Sands confirmed to Tribune Business that his Ministry had begun consultations over the draft Bill, which has been in the planning stages for at least three years as part of the Bahamas’ efforts to meet its World Health Organisation (WHO) obligations.

His predecessor, Dr Perry Gomez, referred to the Tobacco Control Bill during the 2015 mid-year budget communication, and Dr Sands yesterday revealed that the deadline The Bahamas had given for passing this legislation was now “fast approaching”.

Emphasising that key policy decisions in relation to the Bill have yet to be taken, Dr Sands suggested the Association’s fears were premature and an effort “to piggyback on some of the public opinion about gaming” and so-called “sin taxes”. He urged it to address its concerns to the government.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, MARTHA TIMOTHY of #14 Hollyburn Circle Sunrise Subdivision, Freeport, Bahamas, intend to change my name to MAHOGANY MARTHA TIMOTHY. 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 F-43536, Grand Bahama, no later than thirty (30) days after the date of publication of this notice.

NOTICE

NOTICE is hereby given that FERNANDER PIERRE BULLARD of Cotton St., Pinewood Garden, New Providence, 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 twentyeight days from the 26th day of June, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE TROMET INC. In Voluntary Liquidation Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, TROMET INC. is in dissolution as of June 22ND, 2018.

MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings

YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225

GESTAM ADMINISTRATION LTD situated at Suite 102, Saffrey Square, Bank Lane and Bay Street, Nassau, The Bahamas, is the Liquidator.

LIQUIDATOR ______________________