06282021 BUSINESS

business@tribunemedia.net

MONDAY, JUNE 28, 2021

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‘It’s bouncing back with a vengeance’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

OURISM was yesterday said to be “bouncing back with a vengeance” with 13,000 cruise visitors expected in the week before Independence and Nassau’s mega resorts reporting occupancies of up to 90 percent.

Dionisio D’Aguilar, minister of tourism and aviation, told Tribune Business that “we’re bringing tourism back” as the relaxation of international travel restrictions and the continued roll-out of COVID-19 vaccinations - especially in key visitor source markets - gave persons increasing confidence to again vacation abroad.

Describing The Bahamas as “a destination of choice” for Americans who have been emboldened to travel, Mr D’Aguilar revealed he had been

• 13,000 cruise visitors pre-Independence week • Atlantis, Baha Mar at 75-90% occupancy levels • ‘No bubble experience’ for cruise passengers

DIONISIO D’AGUILAR

MICHAEL MAURA

informed by senior executives at the Atlantis and Baha Mar resorts that they had enjoyed weekend occupancy rates of 90 percent and 75 percent, respectively.

While in Atlantis’ case that may have applied only to the portions of the property that are currently open, he added that this represented a further sign that The Bahamas’

largest industry - and its key employment and foreign currency earnings driver - is now “bouncing back” rapidly following last year’s lockdowns and health restrictions.

And he was backed by Michael Maura, Nassau Cruise Port’s chief executive, who told this newspaper that 14 cruise ships carrying a combined

Insurer’s $5m payout to boost equity return

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A BAHAMIAN insurer will “significantly reduce our cost of capital” by redeeming $5m in preference shares as it awaits regulatory approval to acquire an agency owned by one of its main shareholders.

Anton Saunders, RoyalStar Assurance’s managing director, told Tribune Business that replacing its 6.25 percent Series A preference shares with a loan from CIBC FirstCaribbean International Bank (Bahamas) would better position

it to achieve its target 13-15 percent return on equity (ROE) in non-hurricane years.

The redemption of the property and casualty underwriter’s preference shares, which were perpetual in nature, is scheduled to close this September. Mr Saunders described it as “90 percent closed”, and added that “there is no impediment” to the transaction being finalised.

And he confirmed previous Tribune Business revelations that RoyalStar is poised to acquire a majority

SEE PAGE 8

Former health official beats CIBC strike-out

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A FORMER top public health official has seen has six-figure claim against CIBC FirstCaribbean International Bank (Bahamas) survive a strike-out bid by the BISX-listed financial institution.

Dr Glen Beneby, pictured, ex-chief medical officer, and his company, Bentech Ltd, are alleging that the bank has failed to apply repayments towards a loan secured on

a condominium complex he purchased in the mid-1990s at Sunrise Beach Estates in eastern New Providence.

The Baker Tilly Gomez accounting firm, which

SEE PAGE 9

13,000 passengers are expected to call in the Bahamian capital between July 2 and July 10 - a period that covers both US and Bahamian independence days and their respective celebrations.

Disclosing that some vessels will be making multiple calls during that period, Mr Maura said that besides the two home porting vessels - the Crystal Serenity and Royal Caribbean’s Adventure of the Seas - others arriving in Nassau include other Royal Caribbean ships resuming sailing from south Florida as well as two Mediterranean Shipping Company (MSC) vessels.

Revealing that Virgin Cruise Lines has committed

SEE PAGE 9

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Hope Abaco’s port PPP can ‘dodge bullet’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net ABACO stakeholders yesterday voiced hope that the government is not too late to “dodge a bullet” with plans to seek a publicprivate partnership (PPP) for the rebuilding of Marsh Harbour’s sea port.

Ken Hutton, the island’s Chamber of Commerce president, reiterated fears voiced previously to Tribune Business that the PPP proposal may not come in time to sustain the port’s ongoing post-Dorian waiver from having to comply with global maritime security standards implemented after the September 11, 2001, terror attacks.

He disclosed that a US Coast Guard and International Maritime Organisation (IMO) inspection of Marsh Harbour’s port is due next month, with the facility having received little to no repairs since - as the Ministry of Transport acknowledged - it was “completely devastated” by Hurricane Dorian in September 2019.

Adverse inspection findings could potentially result in the present exemption from the International

KEN HUTTON Shipping and Port Security (ISPS) standard being discontinued, which would result in vessels bringing in reconstruction and daily supplies to Abaco being unable to return directly to the US. Such a development would force these cargo vessels to instead offload their goods in Nassau or Freeport rather than Abaco, resulting in increased costs and extra time to get vital products to homeowners and businesses still rebuilding their Dorian-ravaged properties.

Senator Dion Foulkes, minister of transport and local government, revealed the PPP plans during his Budget debate contribution on Thursday - the first sign that the Minnis administration is seeking private capital to redevelop the port, together with an

SEE PAGE 10

PAGE 2, Monday, June 28, 2021

THE TRIBUNE

REALTOR ENJOYS 300% SALES VOLUME GROWTH A PROMINENT Bahamian realtor says sales volumes have increased by 300 percent year-over-year during the 2021 first half, with average sales prices hitting a record $2.7m.

ELISIUM House Ocean Club Estates Bahamas.

Damianos Sotheby’s International Realty, which specialises in high-end real estate sales, in a statement attributed the sales volume quadrupling to a combination of pent-up demand, increased digital marketing

Baha Mar tie-up drives listings volume to $925m efforts and strong customer service.

“At the beginning of 2021, we were hopeful that our market would experience signs of recovery due to the easing of local restrictions and the reopening of international travel,” said Lana Rademaker, Damianos Sotheby’s chief brokerage officer.

“However, the level of activity throughout The Bahamas since January has far exceeded our expectations and has

broken all previous years’ sales records. Inventory is at an historical low and demand remains very strong, especially in the luxury markets.”

The 2021 first half was up against relatively weak comparatives due to COVID-19 lockdowns and restrictions that impacted The Bahamas from late March onwards. Border closures that cut this nation off from international travel, as well as lockdowns and other health restrictions that prevented realtors from holding viewings, resulted in market activity slowing to a trickle for much of the 2020 first half.

However, Ms Radmaker added: “Properties in highest demand have been those located in top tier luxury gated communities like Lyford Cay, Old Fort Bay and Ocean Club Estates. We are also experiencing a surge in condo sales, vacation homes and vacant land investments from both local and international purchasers.

“While Nassau was the first market to feel the turnaround, activity in Abaco, Eleuthera and Exuma soon

followed with sales activity now at unprecedented levels.” The vacation rental market has also seen accelerated growth in 2021.

“Prior to 2020, our rental business was typically seasonal, with the bulk of inquiries coming in during winter and holidays like Spring Break,” Ms Rademaker said. “But we saw virtually no decline in inquiries throughout 2020, and 2021 is looking much the same.

“With the popularity and ease of working and attending school remotely these days, buyers are taking the option to rent for a few months to get a real feel for the communities where they’re considering purchasing.”

Damianos Sotheby’s said it has received a further boost from its exclusive representation of Baha Mar Residences, which features turnkey properties by two hotel brands, Rosewood Hotels & Resorts and SLS Baha Mar. This partnership has driven the realtor’s listings volume to $925m year-to-date.

“Working with Baha Mar has been the most impactful

strategic move we’ve made in the 76-year history of our company, with the exception of becoming a Sotheby’s International Realty franchise in 2005,” Ms Rademaker said. “We cannot be more pleased to have been awarded the honour of exclusively representing these extraordinary residences.

“Despite the challenges and obstacles faced in 2020, our team pivoted and persevered, capitalising on the enduring relationships we’ve cultivated with our clients over many years, and I think this sets a strong foundation for us as we entered 2021.

“Instead of entering the year at a deficit, we simply built on the steady flow of business we maintained throughout 2020. Damianos Sotheby’s International Realty continues to grow in strength and numbers.

Developing, mentoring and nurturing our team members are top priorities for our leadership team, and that’s reflected in our remarkable track record of success.”

THE TRIBUNE

Monday, June 28, 2021, PAGE 3

100% DEBT RATIO WILL ‘ONLY PARTIALLY SUBSIDE’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Central Bank is warning that The Bahamas’ near-100 percent debt-to-GDP ratio will “only partially subside” as the economy begins its recovery from COVID-19’s devastation.

The regulator, in its just-released quarterly economic review for the three months to end-March 2021, confirmed that the national debt - which was just $52m shy of the $10bn mark at the quarter’s end - is now almost equal to the size of Bahamian economic output after the pandemic shaved around $2bn off the latter last year.

The government’s direct debt and the national debt, the latter of which includes contingent liabilities such as direct debt guaranteed on behalf of state-owned enterprises (SOEs) such as Bahamasair, were pegged at 92.3 percent and 96.4 percent of Bahamian gross domestic product (GDP) respectively as at endMarch 2021.

FINANCIAL SERVICES SHED NEARLY 160 JOBS IN 2020

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Bahamian financial services industry shed almost 160 jobs in 2020, a Central Bank report has revealed, with the banking sector suffering multi-billion dollar declines in “balance sheet” and “fiduciary” assets.

The regulator, in its annual assessment of the industry’s contribution to Bahamian economic output, acknowledged that the “business footprint of the sector remained structurally challenged” with the challenges posed by the COVID-19 pandemic adding to the ever-escalating regulatory pressures on the international segment.

The survey also noted a significant drop in the number of Bahamians working in the international financial services industry compared to expatriates. Total Bahamian workers declined by 90 in 2020, while the sector’s collective expatriate staff expanded by three, thus dropping the ratio of Bahamian staff to expatriates from 3.8:1 (close to four to one) to 3.2:1 (closer to three to one).

However, despite the fall-off in employment, plus client and balance sheet assets, the Central Bank’s survey findings painted a somewhat mixed picture by noting that the financial services industry’s total spending rose by $9m in 2020 to just under $780m while also generating a 4.4 percent year-over-year increase in government fees and taxes to $164.4m.

“Increased operations efficiency remained a focus, including for supplies of domestic financial services, with gradually reducing levels of employment,” the Central Bank said of 2020.

Bahamas’ debt service ratio jumps four-fold This compares to 56.8 percent for direct government debt, and 62.4 percent for the national debt, ratios as a percentage of GDP as at March 2019. The debt surge over the past two years thus provides further evidence of the scale of the economic and fiscal damage inflicted on The Bahamas by the combination of Hurricane Dorian and COVID-19, and the extent of the hard recovery work that lies ahead.

Detailing the size of the debt blow-out produced chiefly by the pandemic, the Central Bank’s report said: “The direct charge on the government rose by $108.2m (1.1 percent) over the quarter, and by $1.635bn (20.7 percent) on an annual basis to $9.526bn at end-March 2021.

“A disaggregation by component revealed that Bahamian dollar “The annual outcomes nevertheless continue to indicate incremental gains in value-added from expenditures in the economy, given modest increases in taxes and government fees and a firming in other operating costs.

“In 2020, the estimated balance sheet size of financial sector operations reduced, evidenced by a decline in assets holdings within the banking sector.

Specifically, on balance sheet assets contracted by approximately $13.5bn (7.2 percent) to $172.8bn, as the fall-off in international bank assets outweighed the growth in domestic bank assets. With regard to fiduciary assets, a reduction of $39.4bn (15 percent) was registered in 2020 for an end balance of $223.2bn.

“Nevertheless, the sound regulatory regime and pool of professionals supporting the industry continue to promote The Bahamas as a choice jurisdiction, adding value for clients in varied dimensions.”

Confirming the continual attrition, or whittling away, of an industry that provides some of The Bahamas’ most lucrative high-paying jobs and has driven the growth of a Bahamian middle class, the Central Bank report said: “Total employment within banks and trust companies declined by 158 (3.9 percent) to approximately 3,843 in 2020, extending the 1.2 percent decrease in 2019 and an average yearly falloff of 2.2 percent over the past five years.

“An analysis by nationality revealed that both Bahamian and non-Bahamian positions reduced by 155 (4.1 percent) and three (1.2 percent) to 3,599 and 244, respectively. Consequently, the ratio of Bahamians in the banking sector narrowed by ten basis points to 93.7 percent, vis-à-vis the same period in 2019.

“A disaggregation by assigned functions showed that a majority of Bahamians were engaged in local banking sector roles (66.6 percent), followed

debt represented 56 percent of the total, while foreign currency liabilities accounted for the remaining 44 percent. The government’s contingent liabilities contracted by $17.2m (3.9 percent) over the previous quarter, and by $296.1m (41.2 percent) year-on-year to $421.8m.

“As a consequence, the national debt - inclusive of contingent liabilities - expanded by $91m (0.9 percent) over the three-month period, and by $1.339bn (15.5 percent) on an annual basis to $9.948bn,” it added.

“As a ratio to GDP, the Direct Charge rose by an estimated 12.6 percentage points on a yearly basis to 92.3 percent at end-March.

In addition, the national debt-to-GDP ratio firmed to an estimated 96.4 percent compared to 86.9 percent in the same quarter of 2020.

The ratio is expected to subside, though only partially, as the GDP base recovers from the pandemic.”

A further indication of the looming fiscal crisis facing The Bahamas and its government is provided by the near four-fold increase in the latter’s debt service ratio, which jumped from 5.1 percent in 2020 to 21 percent this year.

This measures the amount of money that a country spends to service

interest and principal repayments on its national debt as a percentage of its export earnings, which in The Bahamas’ case come primarily from tourism and financial services.

The lower this ratio is, the healthier a country’s finances are, and most nations have ratios between five percent and 20 percent.

The Bahamas is now outside this relative safety or comfort zone.

“Relative to the same quarter of 2020, total

foreign debt service payments grew by $36m (61.5 percent) to $94.5m.

The outturn was due largely to a $28.1m expansion in the Government’s component to $62.8m, as amortisation payments increased by $23.3m to $38m, while interest charges moved higher by $4.8m to $24.8m,” the Central Bank report said.

“Further, the public corporations’ debt service payments rose by $7.9m to $31.6m, as amortisation

payments advanced by $11.8m to $23.3m, overshadowing the decline in interest charges by $3.9m to $8.4m.

“As a result of these developments - and significantly impacted by revenue contraction - the government’s debt service to revenue ratio stood at 11.3 percent at endMarch, an increase of 6.0 percentage points over the previous year, while the debt service ratio firmed to 21 percent from 5.1 percent in 2020.”

by international banking (13.9 percent), trust administration (11.3 percent) and other wealth management

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PAGE 4, Monday, June 28, 2021

THE TRIBUNE

BTVI PRESIDENT SAYS BAHAMAS ‘MUST DO BETTER’ ON EDUCATION

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Bahamas Technical and Vocational Institute’s (BTVI) president says The Bahamas must produce better-qualified workers as 60 percent of employers are unable to find the staff they need.

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Dr Robert Robertson, speaking at the Maritime Bahamas Conference, referenced the World Economic Forum’s Global Competitive Index in noting that “we need to do a better job in the education sphere”.

He added: “Generally, we have a high school graduation rate which is less than 50 percent. We also have skills gap surveys that have been completed as recently as 2019, which suggest that more than 60 percent of Bahamian employers feel that they do not have - and cannot get - trained, skilled employees in the sectors that they operate in. I’m

talking about a wide range of sectors - from education, from trade. It’s lots of different sectors.”

Noting that the “skills gap is not new”, Dr Robertson said that while it may be significant in The Bahamas, the problem is not unique to this nation.

He added that developed countries such as the US, Canada, UK and Europe all have to grapple with the same challenges.

“There is no more skills gap in Britain; they call it a skills chasm,” Dr Robertson said. “It’s gotten worse, and so IBM is suggesting that most companies recognise there are concerns

of a widening skills gap, but hardly any of the companies are doing anything about it.

“Conflict resolution, strategic planning and environmental scanning” are all needed in addition to academic qualifications, said Dr Robertson. “In addition to the hard skills, there’s a variety of soft skills that people are talking about really being important and not being well handled,” he added.

Referring to a McKinsey & Company survey from 2020, Dr Robertson added: “If you look at the literature these days you would be surprised to find that upskilling is a fairly

common term, and a lot of people need to enhance their skill set. Particularly as we come out of the COVID pandemic, companies will be rehiring.

“The European Commission has conducted a report and survey as well, which said there’s a series of key skills, emotional intelligence, adaptability, etc. Leadership was one of them.

“I was a bit surprised by that, because leadership is a core skill. It’s been around as a requirement for many, many years. But what they’re talking about here is kind of the new leadership; leadership that’s more

of a servant leader, more of a leader who’s able to work with people, not a command and control leader basically.”

Dr Robertson added: “This European Commission report was also important because it also emphasises the fact that this leadership now has to be someone who is more adept with technology, and able to manage a remote workforce.

“The remaining four skill sets of the post-COVID skill sets from the European economy include technology skills, data literacy, creativity, and innovation and critical thinking.”

MORTGAGE FACILITATOR’S INSURANCE EXPANSION A MORTGAGE facilitator has expanded its product offering through the acquisition of an established insurance agency.

Robert Pantry, pictured, Simplified Lending’s founder and chief executive, confirmed the purchase of Affinity Insurance Agency, saying: “Despite the fallout from COVID 19, we continue to be extremely optimistic about the future of The Bahamas.

“Our acquisition strategy is to focus on the future with a growth and expansion mindset. Core to our growth strategy is to look for ways to add value to our clients as our aim is to be the go-to boutique financial services group centred around personalised service.”

Affinity’s insurance products will include homeowners’ coverage; car and truck; marine and dock; public liability; directors’ liability; contractors all-risk; fleet; hotel and hospitality; and cyber security insurance in addition to life insurance and group and individual health insurance.

Mr Pantry said discussions to acquire Affinity began in early 2021. Negotiations and regulatory approvals, together with leasing and upgrading space in Sandyport Plaza plus administration offices in Simplified’s new 3,000 square foot headquarters in RND Plaza on Thompson Boulevard, progressed amid COVID-19 lockdowns and health restrictions.

“Over the past two years, even right through the pandemic, we listened to the concerns of clients in businesses of every size about the rising cost of insurance, increasing requirements for

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coverage and, at the same time, a fear of more exemptions,” said Mr Pantry.

“We heard what those clients and colleagues said and asked ourselves: ‘If we were able to bring innovation to residential and commercial mortgages and financing, why can’t we look at insurance with a view of how best to meet changing needs with a continued dedication to that personal service that helped us grow to where we are today?’”

Founded in 2019 by Pantry with a staff of four, including himself, and an ambition to make mortgages easier to acquire and more competitive on interest rates by representing the client and letting lenders bid to provide the financing, Simplified Lending has grown to a 25-strong workforce and handled millions of dollars in transactions.

Affinity Insurance’s managing director, 25-year industry veteran Patrice Rolle, said of the acquisition: “I am excited about this new approach, looking at every case from a personal perspective as if we were standing in the shoes of the insured.

“Hurricane Dorian and COVID-19 have put a spotlight on the importance of having a back-up plan in the event the worst-case scenario occurs. We believe insurance is the best risk mitigation strategy to deal with life’s uncertainties.”

Mr Pantry said insurance provides a sense of security without which business would not be able to operate, and said the acquisition of the insurance agency has created extra jobs.

“The stronger you are, the more you can contribute to the economic pie,” said Mr Pantry, who spent nearly 20 years in commercial banking prior to launching Simplified Lending. “We demonstrated that in our hiring in recent months and we will soon start a recruitment drive to hire more individuals.”

THE TRIBUNE

Monday, June 28, 2021, PAGE 5

The Federal Reserve hawkish pivot ACTIVTRADES WEEKLY

By RICARDO EVANGELISTA www.activtrades.bs

it. June 16 offered a classic example of the latter.

Faced with the dilemma of needing to tighten policies to contain the threat of inflation, a move that entails the risk of damaging the economic recovery and wreaking havoc in the financial markets, the Fed gave the world a nudge, a sign of readiness, without actually doing anything.

O

N Wednesday June 16 the United States Federal Reserve stunned observers, announcing the intention to start rising interest rates at some point in 2023, bringing the dot plot forward by a full year.

Prior to June 16, central bank officials’ spent months dismissing inflationary fears, insisting spikes in consumer prices were to be expected in a post-lockdown scenario of booming economic activity, highlighting the transitory nature of the phenomena and insisting on the importance of maintaining monetary stimulus in place, in order to support the economic recovery.

So, the announcement took the financial markets by surprise, with investors - who had bought heavily into growth stocks - left fearing the end of the reflationary trade cycle.

After 14 months of growth, the sudden change in investors’ sentiment triggered an increase in market volatility, as many panicked and tried to close positions, causing losses of several percentage points in major stock indices around the world, with risk aversion suddenly taking over.

Meanwhile, the US dollar

JEROME POWELL, chairman, The Federal Reserve. index, which measures the performance of the greenback versus a basket of six other major currencies, gained more than one percent within a few hours of the announcement. This dollar rally continued over the days that followed, climbing another full percentage point before the markets closed for the week on Friday.

However, despite the shock to outsiders, the timing of this announcement appears to have been carefully plotted, with the aim of minimising the potential negative impact over the financial markets; no less than 11 public appearances by Fed officials were scheduled for the week that followed the pivot, including the chairman’s testimony to congress.

Several Fed policy makers have since used

public appearances to insist that although they are now thinking about considering raising rates, such move is still over the horizon, dismissing the idea of preemptive action being taken in order to contain potential inflationary risks, committing to only act should those risks materialise.

The Federal Reserve did what it would have to do at some point: Start the conversation on bringing forward the timing of the tapering, as it is undeniable that inflationary risks are growing, with the price of housing and commodities, such as oil, contributing significantly to exacerbate rising core prices.

Central banks have two ways to influence the behaviour of economic agents: Do something, ie actually increasing interest rates; or, talk about doing

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Since June 16, market volatility fizzled out and stock indexes reached new all-time highs. It may still be too soon for a final

analysis of this episode, but early evidence points at a master class in central bank communication by the Federal Reserve.

PAGE 6, Monday, June 28, 2021

THE TRIBUNE

Bahamas First sees top ratings affirmed BAHAMAS First’s “favourable operating performance” amid COVID-19’s economic stresses saw its credit and financial strength rankings upheld by the top global insurance rating agency.

AM Best affirmed both the financial strength rating of “A-” (Excellent), and long-term issuer credit ratings of “a-”, for the Bahamian property and casualty underwriter’s operating subsidiaries, Bahamas First General Insurance Company (BFG) and Cayman First Insurance Company (CFI). The outlook for both these ratings is stable.

“The affirmation of our A- rating and stable outlook is an important recognition of our consistent financial performance even during these uncertain economic times,” said Patrick G Ward, Bahamas First Holdings’ group president and chief executive.

“AM Best’s continued positive assessment of our financial strength attests that the Bahamas First group is well-capitalised with a promising outlook for growth and success well into the future, and gives policy owners and shareholders the assurance that we will continue to be here for them to deliver on the promises we’ve made.”

AM Best’s ratings were based on an analysis of the group’s consolidated balance sheet strength, which AM Best described as “strongest”, as well as the its operating performance, business profile and enterprise risk management.

“The group’s operating performance in 2020 was favourable despite

PATRICK WARD an economic shutdown in The Bahamas and Cayman Islands from the COVID19 pandemic,” AM Best found. “Overall earnings are primarily driven by the property and motor lines of business in The Bahamas, and the health and motor lines of business in the Cayman Islands.

“The motor lines of business in both operating territories benefited significantly from lower motor claims as a result of government restrictions due to the pandemic. In non-catastrophe years, the group has a history of solid earnings supported by underwriting gains and investment income, resulting in solid profitability metrics as evidenced by its five-year average return metrics.”

Turning to the balance sheet, AM Best said Bahamas First’s underwriting gains in 2020 were partially offset by unrealised losses caused by a reduction in the value of its Commonwealth Bank holdings due to the decline in the latter’s share price.

“The balance sheet strength is derived from the group’s risk-adjusted capitalisation being at the strongest level, as measured

by Best’s Capital Adequacy

Ratio (BCAR). This assessment is partially offset by high reinsurance dependence to protect surplus and earnings in the event of major catastrophic events,” AM Best added of Bahamas First.

“During 2020, continued surplus growth was primarily driven by underwriting gains at Bahamas First General and Cayman First, partially offset by unrealised losses on the Commonwealth Bank equity holdings.

Furthermore, capital growth continues to be constrained because of the operating companies’ continuing obligation to pay dividends to Bahamas First Holding to service its outstanding debt.”

Bahamas First geographical and product diversification has also enabled it to mitigate the annual threat to earnings posed by major hurricanes, AM Best said, describing the company’s business profile as neutral.

“The group maintains leading market positions and operations in The Bahamas and Cayman Islands, and benefits from product and geographic diversification, which has helped to stabilise earnings through market cycles and reduce the impact of catastrophic events,” AM Best said.

“Although somewhat volatile due to catastrophes, AM Best anticipates that the group will continue to produce favourable earnings in non-catastrophe years, and that its risk management capabilities and comprehensive reinsurance programme will continue to keep its balance sheet strength at the strongest level.”

THE TRIBUNE

Monday, June 28, 2021, PAGE 7

Following the crowd fails your business

BY DEREK SMITH RISK management is a topic that has increasingly made headlines around the globe due to the COVID-19 pandemic. Locally, after the release earlier this month of my first article in this two-part series on why businesses fail, I have had multiple conversations with colleagues about risk management. What was evident is that views are split about whether proactive risk management or reactive risk management should be deployed by companies.

Assessing a company’s situation or processes to determine potential threats is proactive risk management, which aims at reducing the chances of an accident or malicious cyber attack occurring in the future. Conversely, a reactive risk strategy is based on past incident evaluations and audit-based findings, and focuses exclusively on responses to past incidents.

An investigation of the incident occurs, and measures are implemented to prevent similar incidents happening in the future.

Sherwen.com wrote: “There are many valid cases for utilising one or the other, but if the two are successfully merged together, not only does it minimise risk but it can identify inconsistencies in a company that will advance the business once they’re patched.”

I now wish to address the final two of five areas that

TRUMP’S COMPANY COULD FACE CRIMINAL CHARGES IN NEW YORK CITY NEW YORK Associated Press

MANHATTAN prosecutors are considering filing criminal charges soon against Donald Trump’s company, stemming from a long-running investigation into the former president’s business dealings.

The New York Times, citing sources familiar with the matter, reported that charges could be filed against the Trump Organization as early as next week related to fringe benefits the company gave to top executives, such as use of apartments, cars and school tuition.

Trump Organization

executive leaders must keep an eye on. Companies are at risk of zero and negative growth, reduced competitive advantage and human capital flight if management refuses to understand, or are unaware of, key risks.

Unchecked risk taking Relying on talented people for risk management is crucial. However, without checks and balances, limits, independent monitoring and reporting, both opportunities and pitfalls will be missed. The absence of robust enterprise risk management, and independent review and assurance, or a combination of both, will be a huge mistake.

Herd mentality Despite constantlychanging market conditions and operating environments, a company’s management continues to use the same strategy and business model. Directors and senior management often make the mistake of copying key competitors or deploying aged approaches when lawyer Ron Fischetti said he met virtually with prosecutors on Thursday for around 1 1/2 hours to try and persuade them not to seek a criminal indictment against the company, but that the charges would not be unexpected.

“The charges are absolutely outrageous and unprecedented, if indeed the charges are filed. This is just to get back at Donald Trump,” he told The Associated Press on Friday. “We’re going to plead not guilty and we’ll make a motion to dismiss.”

The Manhattan district attorney’s office declined to comment.

No charges have been filed thus far in the long-running probe. Prosecutors have been scrutinising Trump’s tax records, subpoenaing documents and interviewing witnesses, including Trump insiders and

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presented with a crisis.

Some of their decisions are based on emotional reactions and instincts, rather than on thoughtful analyses.

Social media and digital marketing have subtly fuelled the ‘herd mentality’, and this has seeped into business decisions.

For example, when making a decision on engaging a particular vendor, companies may heavily rely on positive online review sites or ‘likes’. However, these reviews or ‘likes’ on a social media page may be fake or generated by a bot, and companies could be misled.

Research has proven the above is true, especially within small and mediumsized enterprises (SMEs).

Conclusion Success in business today requires agility and the ability to constantly re-think, reinvigorate, react and reinvent. Boards of directors and executives are responsible for setting the tone at the top, evaluating company culture, managing identified risks and preventing so-called herd mentality.

NB: Derek Smith Jr is a compliance officer at a leading law firm in The Bahamas, and a former assistant vice-president, compliance and money laundering reporting officer (MLRO), at a local private bank. His professional career started at a ‘Big Four’ accounting firm and has spanned more than 15 years, including business risk management, compliance, internal audit, external audit and other accounting services. He is also a CAMS member of the Association of Certified Anti-Money Laundering Specialists (ACAMS). company executives.

Law enforcement officials familiar with the matter say the investigation has reached a critical point. A grand jury was recently empaneled to weigh evidence and New York Attorney General Letitia James said she was assigning two of her lawyers to work with Vance on the criminal probe while she continues a civil investigation of Trump.

In addition to fringe benefits, prosecutors have looked into whether the Trump Organization lied about the value of real estate holdings to lower taxes or to obtain bank loans or insurance policies on favorable terms.

They have also looked into the company’s role in paying hush money to two women who say Trump had affairs with them, accusations Trump has denied.

PAGE 8, Monday, June 28, 2021

THE TRIBUNE

FINANCIAL SERVICES SHED NEARLY 160 JOBS IN 2020 FROM PAGE 3

related activities (8.2 percent).”

Breaking this down between the domestic (commercial banks) and international financial services, the Central Bank report found: “During the year, total employment in the domestic banking sector decreased by 71 (2.2 percent) to 3,124, a turnaround from a 0.4 percent increase in 2019 and an average yearly reduction of 0.4 percent between 2015 and 2019.

“Similarly, international sector employees contracted by 87 (10.8 percent) to 719, extending the seven percent fall-off in the year prior and an average yearly contraction of 7.8 percent over the past five years. In terms of the composition, the total number of Bahamians within the domestic banking sector fell by 65 (2.1 percent) to 3,051, after remaining unchanged during the previous year.

“In addition, total nonBahamian employees declined by six (7.6 percent) to 73, contrasting with a 19.7 percent growth in 2019. As a result, the ratio of Bahamian to non-Bahamian employees firmed to 41:1 from 39:1 in the prior year,” the report added.

“In the international sector, total Bahamian staff lessened by 90 (14.1 percent) to 548, compared to a 6.7 percent fall-off in 2019. However, the number of non-Bahamians rose slightly by three (1.8 percent) to 171, vis-à-vis an 8.2 percent decline last year.

Consequently, the ratio of Bahamian to non-Bahamian employees narrowed to 3.2:1 from 3.8:1 a year earlier.”

The Central Bank report noted that “significant severance payouts” were made by the financial services industry in 2020, and that the reduction in staffing numbers was offset by gains in earnings and general salaries.

“Average compensation in the international sector grew by $10,807 (9.6 percent) to $123,227 per annum. In addition,

the average salary for the domestic banks rose by $3,703 (6.6 percent) to $59,411 per annum,” the survey added.

The total number of licensed banks and trust companies in The Bahamas declined by four to 217 in 2020, after a tenstrong decrease the prior year. “Total domestic assets within the banking sector grew by two percent to $10.9bn in 2020, albeit lower than the 7.4 percent growth in 2019, and average annual growth of 2.1 percent over the past five years, largely explained by an expansion in credit to the government,” the Central Bank report said.

“In contrast, total assets of the international banking sector contracted by 8.7 percent to $153.3bn, a reversal from a 1.1 percent gain in the previous year. This, however, continued an average annual decrease of 4.9 percent over the last five years.”

Turning to bank spending, the report added: “During 2020, total expenditure in the banking sector grew by $9m (1.2 percent) to $779.8m, just below the 1.4 percent increase a year earlier, and average annual spending gains of 1.5 percent over the last five years.

“Contributing to this outturn, total operational costs - representing 97.8 percent of expenditure - increased by $10.4m (1.4 percent) to $762.7m, although below the 2.4 percent growth last year. In terms of the components, salaries were higher by $4.4m (1.4 percent) at $319.5m, a turnaround from a 4.4 percent reduction in 2019.

“This reflected a 2.1 percent gain in base salaries, which offset the 2.6 percent decline in bonuses.

Further, other administrative costs advanced by $11.1m (3.1 percent) to $364m, albeit lower than the 7.2 percent growth last year, attributed to a rise in local banking merchant fees,” the Central Bank added.

“In contrast, government fees reduced by $3.7m (4.6 percent) to $78m, a reversal from a 12 percent increase in 2019, underpinned by decreases for work permits and stamp duty. In addition, spending on staff training lessened by $1.4m (53.2 percent) to $1.2m, extending the 13.8 percent fall-off in 2019.”

Insurer’s $5m payout to boost equity return FROM PAGE ONE 80 percent ownership interest in Star General Insurance Agents & Brokers by yearend, in a move that secures a key distribution channel presently owned by one of its major shareholders.

Star General is the minority partner in SunStar Ensure Ltd, the vehicle that collectively owns a majority 53.05 percent controlling stake in RoyalStar Holdings. SunStar is in turn majority-owned

by Sir Franklyn’s Sunshine Holdings, with Star General’s stake in that entity thought to translate into just over 20 percent of RoyalStar Holdings.

Selling the insurance agency business effectively represents estate planning for Star Group’s principals, chairman James (JM) Pinder, and Herbert Thompson, although Mr Saunders confirmed that the duo are not exiting their RoyalStar shareholding. Rather, they are only selling majority interest in their insurance agency.

The RoyalStar chief, explaining the rationale for the preference share redemption, said the insurer’s Board of Directors had elected to reduce its net equity to $50m in the belief they did not need the present $55m.

To achieve this goal, they opted to redeem $5m worth of preference shares using cheaper bank debt rather than financing the investor payout from cash flow. “We negotiated with FirstCaribbean where we were able to reduce our cost of capital significantly, and decided to replace the preference shares with a long-term loan for $5m paid back within six years at lower cost,” Mr

Saunders explained.

“It is beneficial to the company and its shareholders.

The benefit was to sustain our cash flow because our cost of capital is reduced significantly. Replacing the preference shares with longterm bank debt gives us the flexibility of cash flow for that period. The transaction is 90 percent closed. There is no impediment to closing.”

Mr Saunders declined to say by how much RoyalStar’s capital costs have been reduced, but added that the underwriter felt it would be better able to achieve the target 13-15 percent return on equity it “shoots for” in non-hurricane years from a $50m capital base as opposed to $55m.

Confirming the Star General transaction, the RoyalStar chief said it had been concluded between the parties and now just awaited the completion of regulatory scrutiny and approval by the Insurance Commission of The Bahamas.

“The investment climate is such that there are not many opportunities in The Bahamas to generate the return on equity we want,” Mr Saunders said. “The Star General principals, at their age, wanted to monetise some of their investments, and for us Star General is an integral part of RoyalStar.

“So it was better for us to secure a distribution channel outside the group than have to compensate for the portion of business they wrote for us.

It’s one of our major agents who happens to be among our major shareholders. It does not change the beneficial ownership of RoyalStar.

It changes the beneficial ownership of the agency, but they will not be exclusive agents for RoyalStar.”

THE TRIBUNE

‘It’s bouncing back with a vengeance’ FROM PAGE ONE to starting calls on Nassau towards the end of the 2021 third quarter, while Disney and Norwegian Cruise Line (NCL) are due to return in August and September respectively, the Nassau Cruise Port chief also revealed that cruise passengers disembarking next week will not be restricted to a “bubble experience” while in Nassau.

It had been anticipated that, on the cruise industry’s return, passengers would be restricted to rigidly-controlled tours and activities where every aspect of the guest experience would be managed as a means to prevent COVID-19 infections and spread.

However, Mr Maura said passengers will now be free to roam and explore at will. And he disclosed that Nassau Cruise Port had agreed with tour operators that, once their excursions were completed, passengers will be dropped off in Rawson Square rather than taken directly back to the boat - so that they can sample Bay Street and benefit local merchants and vendors.

“We see things really ramping up this Friday, July 2,” Mr Maura told this newspaper. “Between July 2 and July 10, which includes US independence day on July 4 and Bahamian independence, we will have 14 cruise ships come in with well over 13,000 cruise passengers.”

Besides the two home porting vessels, he added that other ships scheduled to call in Nassau during this period include the Celebrity Edge, Freedom of the Seas, Oasis of the Seas, MSC Armonia and MSC Divina.

“It’s huge,” said Mr Maura. “A number of these ships like the Celebrity Edge and Freedom of the Seas will be making multiple calls and sailings.

The other thing that we’ve done is we’ve had a series of meetings with local tour operators in Nassau in terms of the guests that will be taking tours.

“While they will purchase the tour transfer from the cruise lines, those tour buses will be dropping them off in Rawson Square, so that after they’ve done the tour for the day they will be coming back to Bay Street. Those passengers will be dropped in the economic hub of Bay Street, so that when they come back

Former health official beats CIBC strike-out

FROM PAGE ONE

was hired Mr Beneby to support his case, found that $167,000 in loan repayments could “not be accounted for” and that the outstanding loan balance with CIBC FirstCaribbean International Bank (Bahamas) should have been $541,285 - not the $847,696 claimed by the bank.

The BISX-listed lender slammed Baker Tilly Gomez’s findings as “incomprehensible and inconclusive”, and sought to have Dr Beneby’s action struck out on the basis “that it discloses no reasonable cause of action, is frivolous and vexatious, and is otherwise an abuse of process of the court”.

However, Justice Indra Charles declined to do so in a June 23, 2021, ruling, although she ordered that the former official and his attorney, ex-Cabinet minister V. Alfred Gray, submit an improved “statement of claim” to CIBC FirstCaribbean International Bank (Bahamas) by tomorrow because the initial version was “woefully vague”.

Justice Charles, in her ruling, noted that the initial mortgage secured on Dr Beneby’s condo complex was valued at $600,000 and came from Barclays, which was subsequently merged into CIBC FirstCaribbean International Bank (Bahamas) in 2002.

Further charges were secured on the property up until 2011, when Dr Beneby needed an additional $250,000 loan

BAHA MAR they will shop and be on the door step of Bay Street merchants and vendors.

“The Bahamas does not require a bubble experience. We’ll have guests purchasing directly from the cruise lines, and they will be stopping in Bay Street and Rawson Square to let them off, but we’ll also have independent guests who are free to disembark, shop, wander Bay Street and do whatever they want to do.”

Urging downtown Nassau and all sectors that rely on the cruise industry for their livelihoods to “get ready” for its imminent return from south Florida, Mr Maura described forward berth bookings at the Nassau Cruise Port as “solid”.

He added: “We’re well on our way now. We’re seeing a return. They’re all coming back. We have Virgin committed to calls at the end of the third quarter going into the fourth quarter, Disney coming back in August and Norwegian Cruise Line coming back in September.

“Everything is coming back with a vengeance. The Bahamas, given our geography, we are the partner of choice, especially given our proximity to south Florida.”

As for The Bahamas’ stopover business, Mr D’Aguilar said: “Tourism is doing very well. Baha Mar was running at 75 percent occupancy this weekend, and Atlantis was running occupancies in excess of 90 percent.

“Tourism is bouncing back, and more and more people are being called back to work, and more and more people are earning tips and gratuities.” While everything is relative, and The Bahamas has some way to go to match 2019’s record tourism numbers, the strength and speed of the industry’s recovery will determine how rapidly the economy recovers from the COVID-19 pandemic’s ravages.

The Bahamas’ mass market tourism, and especially its mega resorts, have been the slowest segment to recover from COVID-19, for renovations.

The existing loans were consolidated into a single $1.233m facility, which covered the previously extended $983,000 credit and provided $25,000 for renovations. A second $37,000 loan was to finance insurance coverage.

“In or about 2018, Dr Beneby believed that monies which he was paying towards the loan were not being applied. On the advice of his counsel, he engaged Baker Tilly Gomez to commission an audit of the account. Their findings were that $167,000 was not accounted for.”

CIBC FirstCaribbean International Bank (Bahamas) provided Bentech with the loan payment history from July 2011 to August 2017, but Dr Beneby argued this was incomplete as it did not cover the initial loans taken out from 1994. The bank, though, said it was not obliged to provide these records, and that there was no need to retain them due to the new consolidated loan.

“By letter dated 16 April, 2018, counsel for Bentech presented Baker Tilly’s findings to the bank (which found that $167,000 could not be accounted for). The bank responded stating that the findings were incomprehensible and inconclusive,” Justice Charles said.

“Based on the information provided to Baker Tilly, the accountants reported that there were discrepancies with Bentech’s account and that about $306,000 was not posted, thus posting a balance of $847,696 when it ought to have been $541,285.”

as Mr D’Aguilar acknowledged. “Our larger hotel properties are, of course, the slower component of the tourism sector to bounce back,” he said.

“It’s good to see Americans feel comfortable enough to travel. I’m advised that at one hotel the levels of vaccination are in excess of 70 percent of visitors coming into the hotel.

All of the food and beverage facilities are getting very buzzy, the nightlife is getting buzzy. I think we’re handling this very well.”

Anticipating that tourist purchases of Bahamian travel visas in June will exceed the 110,000 recorded for last month, Mr D’Aguilar said: “With these kinds of reports coming out of our larger facilities, I’m very optimistic and upbeat, and as they look forward they’re seeing more and more growth.

“People are telling me they’ve never seen a summer so busy, but it may be because last summer was awful. We’ll see what the final statistics look like, but Americans are becoming emboldened to travel and are picking The Bahamas as a destination of choice.”

Monday, June 28, 2021, PAGE 9

PAGE 10, Monday, June 28, 2021

THE TRIBUNE

Hope Abaco’s port PPP can ‘dodge bullet’

FROM PAGE ONE

Bahamas breaks aviation Frontier FRONTIER Airlines made its first flight to Nassau on Friday, becoming the first ultra-low fare carrier to enter the Caribbean market with multiple travel days per week. Frontier will operate direct flights from Miami International Airport to Lynden Pindling International Airport (LPIA) four times a week with effect from next month.

On hand for the opening ceremony were Dionisio D’Aguilar, minister of tourism and aviation; Joy Jibrilu, Ministry of Tourism director-general; Vernice Walkine, Nassau Airport Development Company’s (NAD) president and chief executive; Ricardo Rolle, general manager, Nassau Flight Services; and other officials.

Photos: Kemuel Stubbs/ BIS

operator to manage it under what would likely be a lease arrangement similar to the Arawak Port Development Company (APD) deal in Nassau.

“The ministry, being cognisant that as a consequence of the devastating impact of Hurricane Dorian in 2019, the Marsh Harbour port in Abaco was completely destroyed and, too, in an effort to provide a secure and efficient port, wishes to advise that the government is considering a PublicPrivate Partnership (PPP) to effect the rebuilding and management of this port,” the Ministry of Transport said.

“The Ministry of Transport and Local Government, in conjunction with the Disaster Reconstruction Authority (DRA), has formed a joint committee which is in the process of formulating plans for the issuance of a PublicPrivate Partnership for the re-building of the Marsh Harbour port; the details of which will be forthcoming.”

Mr Hutton said the sea port was a more critical issue than Marsh Harbour’s airport, which is part of a separate PPP arrangement which is more advanced.

“I’m happy they’re dealing with the airport. It is needed,” he told Tribune Business.

“I’m more concerned about the sea port. If all is said and done, Abaco can survive without the airport.

It cannot survive without the sea port. Of the two, the

more critical piece of infrastructure is the sea port.

Hopefully, that’s on the agenda soon.”

Mr Hutton backed the proposed PPP as “the right direction” to go, given that the government’s financial resources are “stretched to the limit” while the private sector’s role is “to maximise the return on assets and look at the best way to use capital so they don’t waste money”.

However, he argued that the committee put together to develop the PPP needed to include port stakeholders and representatives from the wider Abaco community as “it’s not a government project” and should not be limited to representatives from the ministry and DRA. Reiterating concerns previously voiced over the precariousness of the Marsh Harbour port’s ISPS waiver, Mr Hutton told this newspaper: “Without that, foreign vessels cannot come into Abaco and return to the US. That would certainly limit our ability to maintain our supply chain, which is critical at this point not only to the rebuilding but day-today supply of food.

“There is an IMO inspection and coastguard inspection next month. I have been concerned about this since this time last year. I have been screaming about this for over a year.

We could have avoided this. If shipments have to come into Nassau or Grand Bahama instead, does it have to clear there or can it come in under bond? Does there have to be a transire to come here?

“It opens up a whole can of shipping worms. Hopefully we’ll be able to dodge this bullet, although we should have been looking to dodge this bullet a year ago.”

Mr Hutton reiterated that loss of the ISPS waiver would result in increased shipping costs and delays, leading to a reduction in living standards and higher prices.

Mr Foulkes did not respond to Tribune Business calls and messages seeking comment before press time last night. However, Roscoe Thompson, chief councillor of the Marsh Harbour, Spring City and Dundas Town town council, said yesterday it was vital the Marsh Harbour port both be restored and maintain its current status since “it’s the heart of where everything comes in”.

“It’s vital they get it up and running,” he added. “I’m surprised it’s taken them [the government] coming up on two years. As far as I know they don’t have a temporary building or office. Customs is still in trailers. It’s not any better.

“They always had infractions. The security cameras did not work before the hurricane, the fence had holes on it. You could get on to that port pretty easily enough, even today.” The port indeed came close to losing its ISPS status just prior to Dorian in summer 2019.

Mr Thompson revealed that the township had been talking to Mr Hutton and a non-profit about forming a partnership to obtain three acres from the site that was formerly the Mud and Pigeon Pea shanty towns, and use it for offices and warehousing space for the Marsh Harbour port so that it would have “room to grow”.

However, he backed the concept of a PPP in principle, as it would take the port “out of the government’s hands and we will have a company running it how it should be run”.

THE TRIBUNE

Monday, June 28, 2021, PAGE 11

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that we, CARLENE MOLO of Foxdale Tiger Drive, New Providence, The Bahamas.

Parent of KAYLENE GRACIANA MOLO A minor intend to change my child’s name to KAYLENE GRACIANA DESILIEN If there are any objections to this change of name by Deed Poll, you may write such objections to the Deputy Chief Passport Officer, P.O. Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

NOTICE

NOTICE is hereby given that CLIFTON OMAR WALKER, of Millennium Gardens, P.O. Box SB51709 Nassau, The Bahamas 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 21th day of June 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

LEGAL NOTICE INTERNATIONAL BUSINESS COMPANIES ACT, 2000

VALLE NEVADO INC Voluntary Liquidation Notice is hereby given that in accordance with Section 138(8) of the International Business Companies Act, 2000, the dissolution of VALLE NEVADO INC., was completed, a Certificate of dissolution has been issued and the Company has therefore been struck off the Register. The date of completion of the dissolution was 16th March, 2021

Amicorp Bahamas Management Limited Bahamas Financial Centre, 3rd Floor, Shirley & Charlotte Street, P.O. Box N-4865 Nassau, Bahamas

NOTICE

NOTICE is hereby given that RENE RICOLETTE LATOYA DAWKINS of #12 Sea View Drive of West Bay Street, 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 twenty-eight days from the 21st day of June, 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that PEKITO BASTIEN, of Marsh Harbour, The Bahamas 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 25th day of June 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that TAMEKA RASHEDA WALKER, of Millennium Gardens, P.O. Box SB51709 Nassau, The Bahamas 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 21th day of June 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

MARKET REPORT www.bisxbahamas.com

FRIDAY, 25 JUNE 2021

BISX ALL SHARE INDEX:

CLOSE

CHANGE

1973.99

3.75

%CHANGE

YTD

YTD%

0.19 -118.47

-5.66

(242) 323-2330 (242) 323-2320

BISX LISTED & TRADED SECURITIES 52WK HI 6.45 33.95 1.62 2.90 1.78 6.00 6.96 3.60 5.90 3.98 6.16 12.00 2.75 7.75 10.71 9.01 14.44 4.10 8.97 16.00

52WK LOW 3.13 22.65 1.46 1.62 1.44 5.00 6.00 2.70 4.25 2.75 5.00 9.75 2.10 4.90 9.50 8.00 13.00 3.42 8.00 15.20

PREFERENCE SHARES 1.00

1.00

1000.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

1.00 10.00 1.00

1.00 10.00 0.90

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

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

LAST CLOSE 6.36 39.95 1.60 2.61 1.44 6.00 6.96 3.53 4.25 2.85 5.95 9.98 2.47 7.75 11.23 9.01 13.99 3.75 8.19 15.50

CLOSE 6.44 39.95 1.60 2.61 1.44 6.00 6.96 3.53 4.50 2.85 5.95 9.98 2.52 7.75 11.26 9.01 13.99 3.75 8.19 15.50

1.00 1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

1.00 1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

SYMBOL FBB22 BFHB

LAST SALE 100.00 100.00

CLOSE 100.00 100.00

CHANGE 0.00 0.00

BAH29 BG0107 BG0207 BG0130 BG0230 BG0307 BG0330 BG0407 BSBGR1210255 BSBGRS880378 BSBGRS900283 BSBGR1322498 BSBGR1341506

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 102.22 100.00 100.14 100.98 100.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 102.22 100.00 100.14 100.98 100.00

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

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

BFHP CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00

52WK LOW 100.00 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 102.00 101.08 100.49 100.74 100.98 100.00

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 101.08 100.00 100.14 100.00 100.00

52WK HI 2.43 4.47 2.17 202.18 190.86 1.69 1.81 1.78 1.12 8.58 10.26 7.35 14.59 12.84 10.31 10.00 10.43 14.89

52WK LOW 2.11 3.30 1.68 164.74 116.70 1.67 1.73 1.75 1.03 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

SECURITY Fidelity Bank (Note 22 Series B+) Bahamas First Holdings Limited

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

MUTUAL FUNDS

MARKET TERMS

Bahamas Note 6.95 (2029) BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-7Y BGRS FX BGR121025 BGRS FL BGRS88037 BGRS FL BGRS90028 BGRS FX BGR132249 BGRS FX BGR134150

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund Leno Financial Conservative Fund Leno Financial Aggressive Fund Leno Financial Balanced Fund Leno Financial Global 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

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

CHANGE 0.08 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.25 0.00 0.00 0.00 0.05 0.00 0.03 0.00 0.00 0.00 0.00 0.00

VOLUME 7,000

2,000

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

EPS$ 0.239 0.932 0.000 0.110 0.070 1.760 0.369 -0.438 0.140 0.184 0.449 0.722 0.102 0.467 0.646 0.728 0.816 0.203 0.939 0.631 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

VOLUME

NAV 2.43 4.47 2.17 202.18 190.86 1.69 1.75 1.76 1.03 8.58 10.14 7.35 14.59 12.64 9.99 N/A 10.43 14.89

DIV$ 0.170 1.260 0.020 0.030 0.000 0.000 0.260 0.000 0.000 0.120 0.220 0.720 0.434 0.060 0.328 0.240 0.540 0.120 0.200 0.610 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

P/E 26.9 42.9 N/M N/M N/M N/M 18.9 -8.1 32.1 15.5 13.3 13.8 24.7 16.6 17.4 12.4 17.1 18.5 8.7 24.6

YIELD 2.64% 3.15% 1.25% 1.15% 0.00% 0.00% 3.74% 0.00% 0.00% 4.21% 3.70% 7.21% 17.22% 0.77% 2.91% 2.66% 3.86% 3.20% 2.44% 3.94%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

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

INTEREST Prime + 1.75% 6.25%

19-Oct-2022 30-Sep-2025

6.95% 4.50% 4.50% 6.25% 6.25% 4.50% 6.25% 4.25% 4.13% 4.43% 4.39% 5.65% 5.69%

20-Nov-2029 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2022 26-Jun-2045 15-Oct-2022 23-Feb-2025 26-Jul-2037 10-Dec-2028 15-Oct-2049 17-Jan-1950

YTD% 12 MTH% 1.85% 4.26% 0.77% 1.44% 1.14% 2.84% 0.14% 5.02% 3.25% 31.13% 1.04% 0.20% -2.27% -3.15% -0.08% -0.57% -1.94% -3.33% 1.14% 4.22% 1.09% 3.04% 1.01% 4.65% 4.93% 42.27% -1.56% 0.80% -0.60% -4.90% N/A N/A 3.00% 25.60% 7.90% 48.70%

MATURITY

NAV Date

31-May-2021 31-May-2021 28-May-2021 31-Mar-2021 31-Mar-2021 31-May-2021 31-May-2021 31-May-2021 31-May-2021 28-Mar-2021 28-Mar-2021 28-Mar-2021 28-Mar-2021 28-Mar-2021 28-Mar-2021 31-Mar-2021 31-Mar-2021 31-Mar-2021

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

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THE TRIBUNE

Monday, June 28, 2021, PAGE 17

1ST POST-PANDEMIC CRUISE SHIP FROM US SAILS AWAY

FORT LAUDERDALE Associated Press

THE first cruise ship to leave a US port since the coronavirus pandemic brought the industry to a 15-month standstill sailed away on Saturday with nearly all vaccinated passengers on board.

Celebrity Edge departed Fort Lauderdale, Florida, at 6pm with the number of passengers limited to about 40% capacity, and with nearly all 1,100 passengers vaccinated against COVID19.

Celebrity Cruises, one of Royal Caribbean

Cruise’s brands, says 99% of the passengers are vaccinated, well over the 95% requirement imposed by the Centers for Disease Control and Prevention.

A giant greeting was projected on a wall of one of the port buildings: “Someday is here. Welcome back.”

Passengers arrived with matching T-shirts that read phrases such as “straight outta vaccination” and “vaccinated and ready to cruise”.

“Words can’t describe how excited we are to be a part of this historic sailing today,” said Elizabeth

Rosner, 28, who moved from Michigan to Orlando, Florida, in December 2019 with her fiancé just to be close to the cruise industry’s hub.

To comply with both the CDC’s requirement and a new Florida law banning businesses from requiring customers to show proof of vaccination, Celebrity Cruises asked guests if they would like to share their vaccination status. Those who did not show or say they are vaccinated face additional restrictions.

Saturday’s sailing kicks off the cruise lines’ return to business with Carnival

vessels already scheduled to depart from other ports next month.

“This is an emotional day for me. When I stepped on board the ship, I was proud.

It’s a beautiful ship,” said Royal Caribbean Cruises’ CEO Richard Fain, after expressing condolences to the victims of the Surfside building collapse, less than 15 miles south of the port.

Celebrity Cruises had unveiled the $1bn boat in December 2018 — betting on luxury cruising, offering a giant spa and multifloor suites.

The seven-night cruise will sail for three days in the

Western Caribbean waters before making stops in Costa Maya, Cozumel and Nassau.

The ship is led by Capt Kate McCue, the first American woman to captain a cruise ship, who has more than one million followers on TikTok. “You can truly feel the palpable sense of excitement and energy amongst the group as we prepare for our welcoming of our first guests,” McCue said.

“I’ve never honestly seen a group so excited to get back to work.”

Industry officials are hoping all goes smooth to

THE WEATHER REPORT

5-Day Forecast

TODAY

ORLANDO

High: 90° F/32° C Low: 74° F/23° C

TAMPA

WEDNESDAY

THURSDAY

FRIDAY

A passing shower in the morning

Mostly cloudy with a brief shower

A couple of thunderstorms

Showers around in the a.m.; cloudy

Times of clouds and sun

A thunderstorm in the afternoon

High: 89°

Low: 79°

High: 88° Low: 78°

High: 88° Low: 78°

High: 88° Low: 79°

High: 89° Low: 78°

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

98° F

85° F

99°-85° F

98°-83° F

99°-85° F

100°-86° F

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.

almanac

E

W

ABACO

S

N

High: 86° F/30° C Low: 80° F/27° C

7-14 knots

S

High: 88° F/31° C Low: 79° F/26° C

7-14 knots

FT. LAUDERDALE

FREEPORT

High: 87° F/31° C Low: 79° F/26° C

E S

E

W

WEST PALM BEACH

W

uV inDex toDay

TUESDAY

N

N

| Go to AccuWeather.com

TONIGHT

High: 93° F/34° C Low: 77° F/25° C

High: 87° F/31° C Low: 78° F/26° C

MIAMI

High: 89° F/32° C Low: 79° F/26° C

8-16 knots

KEY WEST

High: 87° F/31° C Low: 81° F/27° C

Statistics are for Nassau through 2 p.m. yesterday Temperature High ................................................... 86° F/30° C Low .................................................... 77° F/25° C Normal high ....................................... 87° F/31° C Normal low ........................................ 74° F/24° C Last year’s high ................................. 91° F/33° C Last year’s low ................................... 80° F/27° C Precipitation As of 2 p.m. yesterday ................................. 0.16” Year to date ................................................. 7.65” Normal year to date ................................... 13.10”

ELEUTHERA

NASSAU

High: 89° F/32° C Low: 79° F/26° C

Forecasts and graphics provided by AccuWeather, Inc. ©2021

High: 86° F/30° C Low: 80° F/27° C

N

tiDes For nassau High

S

E

W

7-14 knots

S

8-16 knots

Ht.(ft.)

2.6 3.2

5:37 a.m. -0.1 5:37 p.m. 0.0

Tuesday

12:29 p.m.

-----

2.6 -----

6:28 a.m.

6:34 p.m.

0.0 0.3

Wednesday 12:48 a.m.

1:26 p.m.

2.9 2.5

7:19 a.m.

7:32 p.m.

0.1 0.5

Thursday

1:40 a.m.

2:22 p.m.

2.7 2.5

8:09 a.m.

8:32 p.m.

0.3 0.7

Friday

2:33 a.m.

3:18 p.m.

2.5 2.5

8:58 a.m.

9:33 p.m.

0.4 0.8

Saturday

3:26 a.m.

4:11 p.m.

2.3 2.6

9:46 a.m. 0.4 10:31 p.m. 0.9

Sunday

4:18 a.m.

5:01 p.m.

2.2 2.7

10:33 a.m. 0.4 11:25 p.m. 0.8

sun anD moon Sunrise Sunset

6:23 a.m.

8:04 p.m.

Moonrise Moonset

11:46 p.m.

10:18 a.m.

Last

New

First

Full

Jul. 1

Jul. 9

Jul. 17

Jul. 23

ANDROS

SAN SALVADOR

GREAT EXUMA

High: 86° F/30° C Low: 80° F/27° C

High: 85° F/29° C Low: 81° F/27° C

N E

W S

LONG ISLAND

tracking map

High: 86° F/30° C Low: 80° F/27° C

L

Low

11:33 a.m.

11:57 p.m.

High: 87° F/31° C Low: 80° F/27° C

H

Ht.(ft.)

Today

High: 86° F/30° C Low: 79° F/26° C

N

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

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

CAT ISLAND

E

W

move past a chapter last year of deadly outbreaks on cruise ships that prompted ships to be rejected at ports and passengers to be forced into quarantine. Some passengers died of COVID-19 at sea while others fell so ill they had to be carried out of the vessels on stretchers.

The CDC extended no-sail orders repeatedly last year as the pandemic raged, and came up with strict requirements for the industry that have already been contested in court by the state of Florida. Florida Gov Ron DeSantis says the industry generates billions for the state’s economy.

8-16 knots

MAYAGUANA High: 86° F/30° C Low: 80° F/27° C

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

CROOKED ISLAND / ACKLINS RAGGED ISLAND High: 85° F/29° C Low: 79° F/26° C

High: 86° F/30° C Low: 79° F/26° C

GREAT INAGUA High: 87° F/31° C Low: 80° F/27° C

N

E

W

E

W

N

S

S

8-16 knots

10-20 knots

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

Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday:

WINDS SE at 7-14 Knots ESE at 8-16 Knots SE at 7-14 Knots ESE at 8-16 Knots ESE at 8-16 Knots ESE at 10-20 Knots ESE at 10-20 Knots E at 12-25 Knots ESE at 8-16 Knots ESE at 10-20 Knots ESE at 6-12 Knots ESE at 8-16 Knots SE at 8-16 Knots ESE at 10-20 Knots SE at 10-20 Knots E at 12-25 Knots ESE at 10-20 Knots E at 12-25 Knots ESE at 10-20 Knots E at 10-20 Knots ESE at 8-16 Knots ESE at 10-20 Knots SE at 8-16 Knots E at 12-25 Knots SE at 8-16 Knots ESE at 10-20 Knots

WAVES 3-6 Feet 3-5 Feet 1-2 Feet 1-2 Feet 3-5 Feet 3-5 Feet 3-5 Feet 3-5 Feet 3-5 Feet 3-6 Feet 1-3 Feet 1-3 Feet 1-2 Feet 1-2 Feet 1-3 Feet 3-5 Feet 2-4 Feet 3-5 Feet 4-7 Feet 3-6 Feet 1-2 Feet 1-3 Feet 1-3 Feet 3-5 Feet 1-2 Feet 1-3 Feet

VISIBILITY 10 Miles 10 Miles 10 Miles 5 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 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 83° F 85° F 85° F 84° F 84° F 84° F 84° F 83° F 83° F 84° F 85° F 85° F 86° F 84° F 84° F 85° F 84° F 84° F 83° F 83° F 84° F 84° F 84° F 86° F 86° F

PAGE 18, Monday, June 28, 2021

THE TRIBUNE

UK GOVERNMENT ACCUSED OF HYPOCRISY AS HEALTH MINISTER QUITS LONDON Associated Press

BRITAIN’S health secretary has resigned after a tabloid splashed photos and videos of him kissing an aide in his office — breaking the same coronavirus social distancing rules he imposed on the nation.

While Matt Hancock was swiftly replaced, the scandal was another blow to Prime Minister Boris Johnson and his Conservative government, which has repeatedly come under criticism for incompetence and hypocrisy in its handling of the pandemic over the

past year.

“People have made huge sacrifices to beat the pandemic and what riles them is the whiff of hypocrisy that people make the rules and don’t stick to them themselves,” Conservative lawmaker Andrew Bridgen told the BBC yesterday.

Hancock announced his resignation Saturday, a day after apologizing for breaching social distancing rules after the Sun tabloid published images showing him and senior aide Gina Coladangelo embracing and kissing in his office. The Sun said the images were taken on May 6, before lockdown rules were eased to allow hugs and

physical contact with people not in one’s own household.

Hancock, who is married, wasn’t the first senior British politician caught red-handed for breaking the government’s own COVID-19 rules.

Johnson’s former top aide, Dominic Cummings, was accused of undermining the government’s “stay home” message during Britain’s first lockdown in 2020 when he broke a travel ban and drove across England to his parents’ home. The breach caused a furor and was widely seen to erode public trust in Johnson’s government.

And Neil Ferguson, a leading government scientific adviser who advocated for

strict lockdown rules, quit his position in May 2020 after it emerged he didn’t practice what he preached and allowed his girlfriend to visit him at home. At the time, Hancock remarked that the social distancing rules in place “are there for everyone” and are “deadly serious”.

Yesterday, many questioned why Johnson publicly stood by Hancock after evidence of the latest rule breach emerged. Johnson had expressed confidence in the health minister, and his office said he had considered the matter closed after Hancock’s apology, despite widespread calls to fire him.

“Boris Johnson should have had the guts, the spine, the awareness, the judgment, to sack him on Friday,” said Jonathan Ashworth, the opposition Labour Party’s health spokesman.

Hancock had come under

fire for his leadership in the government’s response to the pandemic long before the publishing of the intimate photos.

He was accused of cronyism for hiring his friend, businesswoman Dido Harding, to run the much-criticised national test and trace system.

Questions were also raised after the government awarded a lucrative coronavirus testing contract to a company run by a pub landlord near Hancock’s former constituency home. Hancock has denied involvement in the contract.

Some are now also asking how Coladangelo, a close friend of Hancock’s from university, landed her job as a non-executive director at the Department of Health.

The scandal came on the back of wider accusations from the opposition about “sleaze” in the Conservative

party. Last month, former Prime Minister David Cameron was called before lawmakers to answer questions about lobbying work he did to win government funds for a now-bankrupt financial services company.

Lucy Powell, a Labour lawmaker, said the fact that Hancock wasn’t fired reflected poorly on Johnson’s judgment.

“I’m afraid it feels to me that the prime minister has a very dangerous blind spot when it comes to issues of integrity and conduct in public life,” she told Sky News. “That’s a really big problem and it’s an even bigger problem when you’re in the middle of a pandemic and you’re asking the public to also have integrity and conduct in the way that they go about with their own lives.”