07042018 business

business@tribunemedia.net

WEDNESDAY, JULY 4, 2018

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DPM: ‘So far, so good’ on 12% VAT transition

Top official’s ‘apology’ on customs tariff woe

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE Deputy Prime Minister yesterday described the transition to 12 percent VAT as “so far, so good”, hinting that further “adjustments” will be made to aid specific industries.

Speaking ahead of yesterday’s Cabinet meeting, KP Turnquest, pictured, said: “So far the experience seems to have been going smoothly, though some hiccups is to be expected with any change. By and large we are fairly pleased. I note the story in the papers with respect to one of our major retailers, and how he has been able to accommodate the adjustment with relative success.

SEE PAGE 5

Bahamas tax structure raises ‘trade war’ threat * LOCAL TARIFFS EXACERBATE ‘COST OF LIVING’ IMPACT * CHAMBER CHAIR BRANDS ‘A SERIOUS CONCERN’ * CENTRAL BANK WARNS AMONG TOP ‘DOWNSIDES’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas’ tax structure threatens to exacerbate any “cost of living increase” from a global trade war, the Chamber of Commerce’s chairman yesterday branding it “a serious concern”.

Michael Maura told Tribune Business that The Bahamas’ regressive, consumption-based tax structure through VAT and customs duties means that Bahamians will be among those hit hardest by tariffinduced price rises in the US and other developed

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HE Ministry of Finance’s top official last night “publicly apologised” for delays impacting cross-border commerce as a result of Customs’ failure to promptly release tariff code changes.

Marlon Johnson, the acting financial secretary, told Tribune Business that the revised tariff codes were now available in hard copy from government publications following 48 hours of “nuisance issues” where brokers and importers struggled to clear goods correctly.

He has also issued “instructions” for the codes to be published online, although he argued there

* Coding changes not released to private sector * But ‘no material impact’ to cross-border commerce * Chamber chief: ‘Resolve it in hours, not days’

MARLON JOHNSON was “no indication of any material impact” on the cross-border trade that the Bahamian economy relies upon so heavily.

Mr Johnson spoke out

EDISON SUMNER after Tribune Business sources, speaking on condition of anonymity, disclosed that the latest bout of bureaucracy and red tape impacting the

clearance of goods at The Bahamas’ borders stemmed from changes mandated by the World Customs Organisation (WCO).

While Bahamas Customs has upgraded its systems to align with the new WCO tariff code headings from July 1, these contacts revealed that the changes were never passed on to Bahamian brokers and importers.

They explained that, as a result, brokers have been unable to submit correct entries for the clearance of imported goods since

THE government’s draft competition legislation appears to “conflict” with long-standing Bahamian agency and distributor relationships, the Chamber of Commerce’s chair warned yesterday.

Michael Maura, pictured, told Tribune Business that legislation released just last week “needs to remain in a draft state” until wide private sector consultation was completed, as there was every likelihood it will generate “plenty” of feedback and concerns.

Having read the proposed bill, Mr Maura said he had cause to question “how it impacts the very transparent relationships” between foreign manufacturers and their local Bahamian agents, wholesalers and distributors.

Warning that The Bahamas could not afford to undermine long-established business practices that are widely used globally, the Chamber chairman added that the draft appeared “a little too heavily weighted” in favour of the proposed Competition Commission - the body that will enforce the law - and against the private sector.

The 57-page bill carries a date of August 1, 2007,

* CHAMBER CHAIR: ‘PLENTY’ FEEDBACK LIKELY * MUST ‘UNDERSTAND WAY WE DO BUSIENSS’ * ‘BALANCE’ FAVOURS COMPETITION COMMISSION indicating that the Minnis administration has dustedoff legislation that is almost 11 years-old as it bids to implement regulations required by rules-based trading regimes such as the World Trade Organisation (WTO).

The Bill, entitled “An

Act to promote, maintain and encourage competition”, was likely first crafted to fulfill The Bahamas’ obligations under the Economic Partnership Agreement (EPA) with the European Union (EU) - the very first trade agreement it signed on to back in 2008.

New transport minister targets boating revenue * HAS ‘IDEAS’ FOR OUT ISLAND MOORING FEES * AND 4% FOREIGN YACHT CHARTER FEE ‘TOO LOW’ * WELLS WANTS CRUISE PERMIT TIGHTENING

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Competition law, and the creation of a related watchdog, was supposed to have occurred some years back, thus putting The Bahamas’ in violation of its EPA commitments although there appear to have been no adverse consequences for this.

Its re-emergence highlights how The Bahamas is being forced to modernise its economy, via new laws, regulations and watchdog bodies (some will argue extra bureaucracy that we must all pay for) as a result of its deepening integration into the world economy.

Calling for “healthy and constant” dialogue between

THE newly-appointed transport minister yesterday said he will look to introduce Family Island mooring fees, while suggesting that the four percent foreign-flagged yacht charter fee is “too low”.

Renward Wells, the former minister of agriculture and marine resources, who has been reassigned as minister of transport and local government, said he already has some ideas on what he would like to see happen in the ministry.

“I have been wrapping my mind around transport and local government,” he added. “I do have some ideas that I would like to see take place within that ministry. Obviously I’m going to sit down with the former minister and speak to him as to the things that he would have wanted to get done in the ministry, and I will seek to build on what he has done.

“There is something that has been near and dear to me, and it is a way to

SEE PAGE 5

SEE PAGE 4

SEE PAGE 4

Competition law’s ‘conflict’ on agent, distributor links

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

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PAGE 2, Wednesday, July 4, 2018

THE TRIBUNE

NEW LOGISTICS COMPANY STRIKES GLOBAL ALLIANCE

BY DENISE MAYCOCK Tribune Freeport Reporter dmaycock@tribunemedia.net

FOWLCO, a newlyformed Freeport logistics company, has struck an alliance with international global logistics provider, Blue Water Shipping.

The new venture, Fowlco Blue Water, will offer “endto-end services” to all

cruise lines and ship owners as part if a one-stop shop solution.

The company’s services include freight pick-up, consolidation, ocean and air freight from around the globe, as well as local customs clearance, cargo handling, storage, on-site logistics management and reverse logistics.

Blue Water Shipping has

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been in operation since 1999, and arranges dry dock facilities and dry dock logistics for various cruise lines.

“With a full order book of new cruise ships and a need to maintain and refurbish the existing fleets, the market for dry dock logistics will continue to grow,” the company said in a statement.

Blue Water said it

believes Fowlco Blue Water “will be a strong alternative in a market that is dominated by a few players”.

“We know that the market has been looking for other logistical options and a provider who can offer the whole package.

We are confident that the knowledge and local expertise of Fowlco, combined with Blue Water’s global

presence, is something many of our customers will appreciate,” said Kurt Skov, founder and chairman of Blue Water Shipping.

Glennet Fowler, cofounder of Fowlco, and president and co-owner of Fowlco Marine and Logistics Management, said: “I am pleased that we will be going on this journey with Blue Water, as Blue Water

has been known for their good name and service in the cruise industry for many years.”

“The ‘Best in Town’ vision of Blue Water fits very well with the mindset of the Fowlco team. We want to be ‘Best in Town’ in the Bahamas, and be known for our dedication and local knowledge and expertise,” she added.

Resorts World unveils new assistant manager RESORTS World Bimini has named Greg Stubbs to the post of assistant general manager.

A member of the Resorts World Bimini management team since 2013, Mr Stubbs has previously served as its director of food and beverage, and as assistant director of food and beverage. He

will now be responsible for hotel and food and beverage operations, reporting directly to Vince Angelo, the resort’s general manager.

“Greg has proved himself to be a key part of Resorts World Bimini’s continued success over the past five years,” said Missy Lawrence, its

president. “His extensive background in the hospitality industry, and his ongoing support of the organisation’s commitment to employee development, is a determining factor in our ability to deliver memorable experiences to our guests.”

A certified hospitality

trainer, Mr Stubbs has received certificates from the American Hotel and Motel Association; the Ministry of Tourism; and the Bahamas Training College. Prior to joining Resorts World Bimini, he held management positions at Festiva Resorts, Harborside Resort and the One & Only Ocean Club.

PM opens ‘one stop shop’ for employment THE Prime Minister has officially opened the Public Employment Services Unit’s (PES) “One Stop Service Centre” at the Department of Labour.

The centre will be used as the Ministry of Labour’s link between potential employees and employers, and will ensure that job seekers have better access to the necessary tools to enable them to seek and find jobs.

Dr Hubert Minnis said the centre will allow potential employers more options when they are seeking staff.

The Ministry of Labour has upgraded its online portal as a critical element of its One Stop Service Centre, he added.

To prepare for the upgrade, the Department of Labour participated in international training in Mexico, South Korea and South Florida. Dion Foulkes, minister of labour, said: “I strongly believe that this launch is a testimony of the government’s

PHOTO: Raymond A Bethel, Sr/BIS

commitment to assisting Bahamians to find jobs and hence better their lives.”

Dr Minnis is pictured cutting the ribbon to

the entrance of the unit.

Also pictured are, from left: Mr Foulkes; Marvin Dames, minister of national security; Cecilia Strachan,

permanent secretary in the Ministry of Labour; and John Pinder, director of labour in the Ministry of Labour.

THE TRIBUNE

Wednesday, July 4, 2018, PAGE 3

CENTRAL BANK WARNS ON VACATION RENTALS

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Central Bank is warning that the booming vacation rental market could threaten tourism’s foreign exchange earnings without proper quality assurance mechanisms in place.

The regulator, while acknowledging the sector’s importance in its monthly economic report for May, said: “Although the tourism industry continues to benefit from decentralised residential rentals, this could pose heightened downside risks to the foreign exchange earnings potential of the sector unless co-ordinated mechanisms assure product quality and safety.”

The Central Bank’s warning is likely to cause consternation among the many Bahamians and residents whose properties are

* Quality assurance needed to protect foreign exchange * Bahamas Airbnb bookings up 51% for May * Storm could alter monetary policy stance

already registered with the likes of Airbnb and other vacation rental websites, given that the sector is seen as a vital mechanism to boosting local tourism industry ownership and “spreading the wealth” beyond the foreign-owned hotels.

Revealing the sector’s continued strong growth, the Central Bank said data from AirDNA, a company that analyses information provided by Airbnb, suggested there was a 51.3 percent increase in bookings through the latter’s platform in May compared to the prior year, with available listings up 34.3 percent.

“This development reflected higher bookings in four of the largest

markets, Exuma, Abaco, New Providence and Grand Bahama, which rose by 68.3 percent, 47.6 percent, 47.4 percent and 42.9 percent, respectively,” the Central Bank said.

“Similarly, the number of room nights sold advanced by 50.6 percent for hotel comparable bookings - which include studio and one-bedroom entire dwelling rentals - and by 52.1 percent for listings of entire homes.

“In addition, estimates of the average daily room rate (ADR) for the entire Bahamas market firmed by 7.7 percent to $338.40 for entire homes, and by eight percent to $146.57 per night for hotel comparable listings over the prior year.”

Elsewhere, the Central Bank revealed that a major hurricane impacting The Bahamas could result in “a near-term reassessment” of its monetary policy stance. With excess liquid assets in the commercial banking system now exceeding $2bn, it acknowledged that the proposed Credit Bureau was vital to “effectively managing” its drawdown.

“On the domestic front, the adverse effects of a significant weather-related event could lead to a reassessment of the policy stance over the near-term,” the Central Bank revealed, “while the potential for an increase in credit supply, fuelled by the high level of liquidity, will need to be managed effectively

via measures such as the implementation of a Credit Bureau.”

Private sector credit contracted by $15m during May, highlighting continued weakness in the business community, although total commercial bank loan arrears continued to fall to hit $845m at month’s end.

“The corresponding ratio of arrears to total private sector loans fell by 14 basis points to

14.8 percent,” the Central Bank said. “In particular, non-performing loans (NPLs)—arrears over 90 days—contracted by $8.2m (1.4 percent) to $551.5m, resulting in the attendant ratio declining by 12 basis points to 9.7 percent.

“Similarly, short-term (31-90 day) delinquencies declined by $1.8m (0.6 percent) to $293.3m, with the relevant ratio slightly lower by two basis points to 5.1 percent.”

Fiscal deficit down $142m up to April

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A NEAR-50 percent slash to the government’s capital works budget saw its fiscal deficit for the ten months to end-April drop by $141.5m year-overyear, the Central Bank has revealed.

The regulator, in its monthly economic report for May, said a winding down of postHurricane Matthew infrastructure repairs drove the government’s “red ink” for the period down to just below $161m.

“Data on the government’s budgetary operations for the first ten months of fiscal year 2017-2018 revealed a $141.5m (46.8 per cent) reduction in the deficit to $160.6m, when

* ALMOST $150M BELOW FULL-YEAR TARGET TWO MONTHS OUT compared to a year earlier, amid a $119m (6.1 percent) contraction in expenditure to $1.837bn and a $22.5m (1.4 percent) increase in revenue to $1.676bn,” the Central Bank said.

“The contraction in total government expenditure was due primarily to a halving in capital outlays by $130.2m (49.5 percent) to $132.7m, as the winding-down of hurricane rebuilding work led to a $92.6m (45.6 percent) reduction in infrastructure spending.

“In addition, asset acquisitions declined by $37.5m (63 percent), owing mainly to a $25m (74.8 percent)

decrease in the purchase of other ‘miscellaneous’ assets.”

KP Turnquest, deputy prime minister, revealed in his late May budget presentation that the fiscal deficit for the 2017-2018 full-year was now projected to come in at around $310m. With just two months left of the fiscal year, this implies that the government ran a deficit of around $150m during the last two months.

The Central Bank data is likely based on the government’s existing cash-based accounting system, which the Minnis administration wants to transform into an accrual-based accounting system by 2022 on the basis that this will give a much truer, accurate position on its finances by reflecting future spending commitments and assets/liabilities on its balance sheet.

However, the $150m gulf between the tenmonth position shown by the Central Bank and Mr Turnquest’s year-end deficit estimate is likely to raise renewed Opposition charges that the government is switching between cash-based and accrual accounting methods to suit its own interests.

Meanwhile, the Central Bank revealed that the government’s fixed-cost spending was up $11.4m to $1.704bn for the ten months to end-April, “driven by a $22.5m” or 3.9 percent increase in personal emoluments - meaning the civil service wage bill and associated payments.

“Revenue gains were underpinned by a $28.5m (1.9 percent) increase in tax inflows,” the Central Bank added. “Specifically, value

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PAGE 4, Wednesday, July 4, 2018

THE TRIBUNE

Top official’s ‘apology’ on customers tariff woe FROM PAGE ONE the working week began on Monday, as their systems no longer “match” the tariff codes and descriptions now employed by Customs.

“The World Customs Organisation changed a lot of the tariff code headings and descriptions,” one source told Tribune Business. “That created a lot of confusion with people submitting entries to bring goods into the country because Customs has updated their systems but not released the new tariff code schedule to the public.

“I don’t think a broker can submit a correct entry because all the tariff headings have changed. The WCO has changed it all, and while Customs has upgraded their system they’ve not made it

available to the public...

Nobody’s system matches Customs’ system so everyone’s entries are being rejected. Brokers are working on last month’s tariff code and headings.”

The source said Customs was not only being asked to cope with the VAT rate hike, and budget-related adjustments in terms of tariff eliminations/reductions and the “zero rating” of breadbasket foods and medicines, but simultaneously cope with the WCO mandate.

They described this workload as “insanity”, but Mr Johnson last night rejected their suggestion that Customs had not planned to publish the revised tariff code headings until August so it could also incorporate the budget-related changes.

The acting financial secretary, though, conceded that while the WCO-mandated

changes had caused problems for The Bahamas’ cross-border commerce, it had not brought trade to a complete standstill.

“We do have a bit of an issue there,” Mr Johnson admitted. “What seems to have happened there is that to be in compliance with WCO standards some of the tariff headings were changed, so that’s creating a bit of delay.

“I’m advised by Customs that they are assisting brokers in making the corrections, and that there is also a ‘Help Desk’ where they can go. We did have a delay in the publication of the revised tariff headings; they should have been published earlier than that. I’ve now instructed they be published online. We did have a situation there.”

While the new tariff code headings are now available from government

publications, the top Ministry of Finance official conceded: “I certainly do apologise publicly for the delay in getting that situation sorted out. Now we’re aware of it my office is trying to rectify it. It [the tariff headings] was scheduled to be published; there was just a delay in that happening.”

Mr Johnson acknowledged the need to avoid any disruption to normal business processes, but added that the tariff coding confusion had not brought commerce to a grinding halt.

“Obviously we don’t want a scenario where folks have hiccups in transacting business,” he told Tribune Business. “I do want to reiterate that Customs officers are helping brokers to make the corrections, and that we have a Customs Help Desk available.

“It does create some nuisance issues, but there is no indication of a material impact other than a slow down in getting items cleared. It’s slower than necessary, but I don’t have any indication that we have material issues with commerce.”

Edison Sumner, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chief executive, said his understanding of the problem was the same as the explanation provided by Tribune Business’s contacts.

He added that the Chamber had “raised the issue” with both Mr Johnson and Customs as soon as the business community made it aware of what was happening, and urged that the problems be resolved “within hours rather than days”.

“They’ve acknowledged it and are addressing it,” Mr Sumner said. “How soon they make the correction, I don’t know. We’re hoping it happens within hours and not days so we can bring resolution to this issue.”

He added that the response received from the government said the issue related to “the new chart of accounts that became effective” on July 1, with Customs “hoping to have it rectified very shortly”.

Mr Sumner said the tariff coding issue highlighted the Chamber’s previous concerns over whether the government’s systems would be able to handle all the budget-related changes from the get-go.

“We’re hoping to have the coding updates available and accessible, and that they line up with the tariff schedule Customs is working on,” he added.

New transport minister targets boating revenue FROM PAGE ONE generate revenue for the country. In Australia and other countries that have vast oceans, so to speak, they have mooring systems where every boat ties up to a mooring and people pay to do that. We have not done that in The Bahamas. It is a source of great revenue for the country, and I’m going to look at how we can get a mooring authority and set up moorings in the Family Islands.”

According to Mr Wells, the fees derived from such an initiative can be used to assist with funding local government. “We have a lot of boat traffic that goes through the country. We are a maritime nation,” he said. “When you drop an anchor on the coral reef and pull it up, you destroy the coral.

“What countries have done is establish moorings, and every boat has to be tied up to a mooring and you charge the requisite fees. Those fees then go to the consolidated fund or whatever the government of The Bahamas so deems.

I think it is something we ought to be looking into.

I will be seeking to move that forward. That is one just one of many things I think we need to.”

Mr Wells said the government could further increase revenue yields from boaters. “The four per cent cruising fee boats pay, we need to ensure we receive that; I think that is quite low,” he said.

The four percent that Mr Wells mentioned likely refers to the foreign-flagged yacht charter fee. The outgoing Port Controller, Captain Cyril Roker, in a previous interview with Tribune Business said

it was seeking to outsource foreign yacht fee collections, while suggesting that just 15-20 percent of due revenue is currently being obtained.

Mr Wells also called for tightening cruising permit regulation. “Once they would have come through they have 90 days to come back into the country without paying it. I think every time you come into The Bahamas and exit The Bahamas you should pay it. That’s just my belief,” he said.

Currently, boats up to 35 feet in length entering The Bahamas are required to pay an entry fee of $150, while for boats over 35 feet the fee is $300. The fees cover a cruising permit, a fishing permit and departure tax for up to three persons. The fee is good for a second re-entry into the country within a 90-day period.

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THE TRIBUNE

Wednesday, July 4, 2018, PAGE 5

DPM: ‘So far, so good’ on 12% VAT transition FROM PAGE ONE

“There are others that have more long-term implications, and those we have given some consideration to, such as the tourism sector, the insurance sector and contractors who have longer-term contracts. We are making some adjustments to accommodate those issues, but so far so good in terms of the transition.”

Mr Turnquest added: “We are working out some issues with Customs. I am learning that there may be some confusion with respect to the tariff. We are working that out to ensure everyone is on the same page with respect to that.

Hopefully that will all be resolved in the next day or two, and we can go forward smoothly.”

He revealed that he was made aware of one reported case of price gouging, but suggested it did not appear to be intentional. “I was aware of one circumstance that had been reported. The calculation was correct, but the information on the receipt was incorrect and so that was resolved as I understand it. At this point we are not aware of any issues,” Mr Turnquest said.

The VAT rate was increased from 7.5 percent to 12 percent on July 1.

Competition law’s ‘conflict’ on agent, distributor links FROM PAGE ONE the government and private sector on all business and WTO-related issues, Mr Maura said the bill’s release also appeared to coincide with a competition “workshop” that was staged by the Minnis administration last week.

“We appreciate the fact we had a workshop, but we need to make sure there’s significant dialogue on competition legislation, not just one workshop,” he told Tribune Business. “It will take the private sector some time to understand what this legislation means, and for the government to appreciate the impact the legislation in its current state could have on business.

“I have some concerns as I read it. Our businesses, economy depend on agency

Fiscal deficit down $142m up to April FROM PAGE THREE added tax (VAT) receipts firmed by $12.1m (2.2 percent), while departure taxes and motor vehicle collections grew by $8.5m (8.2 percent) and $6.8m (32.8 percent), respectively.

“Several of the other categories recorded increases, as evidenced by the over ten-fold ($44m) rise in the

representation - distributors, agents - and we need to make sure this legislation understands the way we do business in The Bahamas.

“We do business much like the rest of the world, right down to agency representation.

It’s about making sure the actual way we conduct business in The Bahamas is considered in this legislation, and the legislation itself does not conflict with business practices.”

Mr Maura said the draft bill had to be read several times “to understand what it’s saying and not saying”, adding that it needed to be distributed to The Bahamas’ various industry groups -especially the likes of the retail and wholesale sectors.

He emphasised that manufacturers such as Proctor & Gamble and Kimberly Clark, along with high-end

brands such as Gucci, wanted themselves and their products to be represented by particular agents and distributors in The Bahamas for very sound reasons.

These included having representatives with the necessary product knowledge to market and promote their wares, while also possessing the necessary health, safety and compliance awareness.

“We appreciate the intent,” Mr Maura added of the draft Bill. “The intent is competition, and it’s in the interest of everyone that the consumer receives the most value.

“When these manufacturers choose agents they’re looking out for the consumer’s interest as much as their company’s interest, which is why they align themselves with reputable agents and distributors

around the world.

“We need to maintain those relationships. As I read the draft competition legislation, I question how it impacts these very transparent relationships.”

The Chamber chairman continued: “It comes right down to intellectual property rights in terms of making sure brands are protected; that these items are being sold appropriately, and the consumer understands the factors and benefits of line items.

“That’s why manufacturers have to rely on agents, licensees to make sure communications around the product are accurate. As I read the draft, I began to wonder whether this draft legislation was conflicting with these long-standing, widely-established relationships and widely-accepted global business practices.”

The bill also proposals

the creation of a Competition Commission “vested with wide powers”, and Mr Maura suggested these might need to be curbed to redress the balance between regulation and private enterprise.

“I think there needs to be more balance there,” he told Tribune Business. “We need to ensure the commercial business community has rights as well, and that those rights are balanced with the authority of the Competition Commission.

“As I read the draft, it seemed it was a little heavily weighted more to the Commission side, in my opinion. I understand what they’re trying to achieve, but this legislation needs to remain in a draft state until it receives private sector consultation, feedback and recommendations. There will be plenty of them.”

“unclassified” taxes category, while selective taxes on services firmed by $5.8m (26.3 percent).

“In contrast, international trade tax receipts decreased by $17.9m (four percent), owing mainly to a $19m (8.1 percent) decline in import taxes.

Similarly, business and professional fees recorded a reduction of $16.5m (12.4 percent). Nontax revenue also contracted by $6.1m (3.7 percent) to $157.5m, due to a timing-associated decline in income by $15.3m (37.1 percent), which overshadowed the $8.3m (6.8 percent) increase in receipts from fines, forfeits and administrative fees.”

While acknowledging that the government’s

fiscal consolidation plans should result in cuts to the fiscal deficit and near $8bn national debt, the Central Bank said major hurricanes represented a major nearterm risk that could blow its targets off-course.

Yet it is holding to its “modest economic growth projection”, even though

the VAT rate hike is projected to suck an additional $400m out of the economy and consumer spending.

“Expectations are that the domestic economy will continue to grow moderately over the near-term, as the increase in highend room capacity and the opening of new markets

support the improvement in tourism sector activity, while foreign direct investment is likely to remain the predominant driver of construction output,” the Central Bank said. “In this environment, labour market conditions are poised to continue to gradually improve.”

PUBLIC HOSPITALS AUTHORITY ADVERTISEMENT VACANCY ASSISTANT FINANCIAL CONTROLLER GRAND BAHAMA HEALTH SERVICES The Public Hospitals Authority (PHA) invites applications from suitably qualified persons for the post of Assistant Financial Controller, Grand Bahama Health Services.

Applicants must possess the following qualifications: • Professional qualification from a recognized accounting body, namely, The American Institute of Certified Public Accountants, designation CPA; The Association of Chartered Certified Accountants designation (ACCA), or The Institutes of Chartered Accountants, U.K. or Canada,designation CA or The Certified General Accountants Association of Canada, designation CGA ; OR a minimum of eight (8) years relevant post professional qualifications OR professional qualifications and at least (2) years experience as Finance & Accounting Officer 1; OR CIA with at least four (4) years experience as Finance & Accounting Officer 1; OR MBA, MA with at least five (5) years experience as Finance & Accounting Officer 1; OR BSc, BA, BBA with at least six (6) years as Finance & Accounting Officer 1; • Excellent leadership, organizational and interpersonal skills; • Excellent communication skills (oral and written); • Excellent analytical and conceptual thinking skills; • Excellent computer skills; The Assistant Financial Controller will report to the Financial Controller of the Grand Bahama Health Services .

JOB SUMMARY: The Assistant Financial Controller will work in collaboration with the Financial Controller for determining and allocating functional resources, researching and developing systems and controls based on function requirements and contributing information, analysis and recommendations to the Executive Management Committee.

DUTIES: 1.

BY: • • •

Excellent Administrative And Interpersonal Skills, Ability To Prioritize And Meet Deadlines, Analytical With Keen Attention To Detail If You Possess These Attributes, We Invite You To Apply For The Position Of:

SOFTWARE DEVELOPER JOB SUMMARY: • Responsible for analyzing, resolving and testing custom built applications.

MAIN DUTIES AND RESPONSIBILITIES: • Manage and implement technical aspects of IT related projects.

• Work with application vendors to test and implement application fixes and business enhancements.

• Work with our standard suit of development tools, Visual Basic, SQL Server, etc. to develop stored procedures and custom applications as required.

• Evaluate, troubleshoot, document, upgrade and build up maintenance procedures for Applications.

SUPPORTS FINANCIAL MANAGEMENT OPERATIONAL STRATEGIES

• Prepare references for users by writing operating process mappings.

Evaluating existing systems and controls; Preparing critical performance measurements; Analyzing information trends;

• Work as on-call support for non-business hours and weekends.

2.

BY: • • •

PROVIDES CRITICAL INFORMATION

REQUIREMENTS/QUALIFICATIONS:

Preparing reports of function accomplishments, performance and status; Coordinating financial plans and actions with departments; Examining and resolving discrepancies and anomalies;

• Must have excellent communication skills (verbal and written).

3.

BY: •

MANAGES FUNCTIONAL FINANCIAL MANAGEMENT ACTIONS

• Ability debug and code in C, Java and VB.

• • •

Supervising payroll function including ensuring accuracy of information and ensuring compliance with the Public Hospitals Authority’s policies and procedures; Supervising accounts payable function, ensuring accuracy of processing as regards amount, supplier and terms of payment: Ensure that all invoices and payments are processed and coded according to the Public Hospitals Authority’s Financial rules and regulations; Monitoring business office activities including accurate recording, invoicing and collection of revenues;

4.

BY: •

MANAGES WORKLOAD AND RESOURCES TO ACHIEVE DESIRED OUTCOMES

•

Assisting the Financial Controller with the IT Program implementations, recruitment, selection, orientation, training, coaching, counseling, disciplinary, and communication programs;

Planning, monitoring, appraising, and reviewing accomplishment of job results using required reports and submission schedules, including annual job plans, time allocation reports and results-oriented task lists;

Letters of application and curriculum vitae should be submitted to the Director of Human Resources, Corporate Office, Public Hospitals Authority, Third and West Terraces, Centreville; or P.O. Box N-8200, Nassau, Bahamas no later than 13th July, 2018

• Be primary support for IPBS application and working with the vendor to resolve issues on a timely basis.

• Ability to work in a self-motivated environment with little supervision.

• Minimum of a Bachelor’s degree in Information Technology/Computer Science or equivalent.

• Advanced SQL DB Management Skills, with experience in a clustering environment.

• Knowledge of SQL Core Banking systems, specific knowledge of Phoenix and/or IPBS a plus.

• Experience in creating reporting using Crystal and SQL Reporting Services.

• Web Application debugging and testing experience is a must.

PLEASE SUBMIT BEFORE July 6st, 2018 to:

HUMAN RESOURCES Re: Software Developer careers@fidelitybahamas.com

ABSOLUTELY NO PHONE CALLS

A competitive compensation package (including base salary and commissions) will be commensurate with relevant experience and qualification.

PAGE 6, Wednesday, July 4, 2018

THE TRIBUNE

Bahamas tax structure raises ‘trade war’ threat FROM PAGE ONE economies.

As tensions and threats between the US and its major trading partners continue to escalate, and the tit-for-tat imposition of retaliatory tariffs shows no sign of abating, Mr Maura said The Bahamas’ reliance on imports for virtually everything it consumes could cause a local impact that is “that much greater” than in other nations.

Perfectly positioned to observe the impact as chief executive of Arawak Port Development Company (APD), the operator of New Providence’s sole commercial shipping port, he added that The Bahamas was particularly exposed due to its dependence

on major economies at the heart of the growing dispute.

And Mr Maura’s warning was echoed by the Central Bank in its May economic report, with the monetary policy regulator warning that the rise in global protectionism was among the biggest short-term risks to the Bahamian economy.

“The risks to the economy remain tilted to the downside, as the unfolding international trade disputes could negatively impact global growth, with spillover effects to the local market,” the Central Bank warned.

Mr Maura, for his part, said: “I’m very concerned about it because our reality is that if I look at the share that the US and Canada have of our imports coming

across the bulkhead, it’s about 75 percent.

“Of the other 25 percent, a large portion is coming out of China. Conservatively, 80 percent of what we’re buying is coming out of the US market, the Canadian market and the Chinese market.”

He added: “If there is a trade war going on among those economies, and they’re beginning to see prices on products increase, those increases are going to be passed on to us. The degree of the increase is going to be that much greater as a result of our own tariffs and duties.

“It is a major concern, a serious concern I have, and all of us in the private sector and the government need to sit and watch this carefully. If we don’t see a return to free trade among these significant economies, The Bahamas and Caribbean countries are going to find their cost of living increasing.”

The Donald Trumpinspired “trade wars” are especially ill-timed for Bahamians, who are already facing “cost of living” increases due to the VAT rate increasing to 12 percent and the $25 per barrel rise in global oil prices to $73. That represents a 52 percent year-over-year increase.

The Central Bank confirmed that both developments will increase

To advertise in The Tribune, contact 502-2394

Bahamian inflation, saying: “Given the context of elevated energy prices, along with potential price gains following the increase in the VAT rate in July, domestic inflation should accelerate over the near-term, albeit from a low base.”

The US president initiated what many fear will become a full-blown “trade war” via the imposition of 25 percent and ten percent tariffs on imported steel and aluminium, respectively, from major trading partners such as China, Mexico and the European Union (EU).

Mr Trump argues that past trade deals have been “unfair” to the US, and says he wants to slash the multibillion dollar trade deficits that have resulted with major trading partners.

His actions are also seen as an attempt to shore up an uncompetitive US manufacturing base and play to voters in states that were key in swinging the 2016 US presidential election his way.

The flamboyant businessman is also targeting what the US perceives as China’s theft of US “intellectual property” and technology, and its denial of market access to American companies by mandating that they joint venture with Chinese companies.

The EU, Canada and China have all imposed billions of dollars in tariffs on US imports, targeting products such as motorbikes, agricultural products, Levi’s jeans and bourbon whiskey.

Neither of the sides show any sign of backing down, with all issuing threats of further tariffs and retaliatory measures.

PUBLIC NOTICE

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

INTENT TO CHANGE NAME BY DEED POLL

The public is hereby advised that I, ASANETH DECARNA ROLLE intend to change my name to DECARNA ASANETH ROLLE. If there are any objections to this change of name by deed poll, you may write such objections to the Chief Passport Officer, P. O. Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of the publication of this notice.

The public is hereby advised that I, ALADINA D. SOMMONS aka ALADINA DARNETTE OLIVER of Culbert Hill, P.O.Box EE16748 intend to change my name to ALLADINA DANETTE OLIVER. If there are any objections to this change of name by deed poll, you may write such objections to the Chief Passport Officer, P. O. Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of the publication of this notice.

MARKET REPORT TUESDAY, 3 JULY 2018

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

BISX ALL SHARE INDEX: CLOSE 1,982.27 | CHG 0.05 | %CHG 0.00 | YTD -81.30 | YTD% -3.94 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 19.17 7.50 4.00 1.48 0.19 4.00 9.10 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 3.00 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

1.00 100.00 100.00 100.00 100.00 100.00 100.00 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 2.15 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 3.00 9.10 6.14 4.20 10.90 2.55 1.70 7.93 6.10 11.20 6.32 3.55 12.51

CLOSE 4.40 17.43 9.09 4.00 1.01 0.18 3.00 9.10 6.14 4.20 10.90 2.57 1.70 7.96 6.10 11.20 6.32 3.55 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 0.00 0.03 0.00 0.00 0.00 0.00 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

107.20 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

107.20 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

63

13 5 15,000

VOLUME

10

10 NAV 2.15 4.12 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

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 -3.0 14.3 10.7 24.6 17.4 25.2 7.4 N/M 11.2 16.5 10.4 12.8 19.8

YIELD 1.82% 6.48% 0.00% 5.75% 0.00% 5.56% 0.00% 3.52% 3.58% 2.86% 5.69% 2.33% 4.12% 1.06% 5.25% 4.46% 3.16% 3.38% 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% YTD% 12 MTH% 1.55% 4.09% -0.45% 4.34% 0.84% 2.31% 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-May-2018 31-May-2018 31-May-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

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

Auto sales rise in 1st half, but analysts warn of turbulence

DETROIT Associated Press NEITHER higher gas prices nor rising interest rates could put a damper on US auto sales during the first half of the year.

Sales rose 1.8 percent during the first half of the year, while June sales were up about five percent compared with a year ago, according to Edmunds.com.

Analysts said the boost was fueled by strong consumer confidence and low unemployment.

But analysts at Cox Automotive, which includes Kelley Blue Book, issued a cautionary note on the numbers, saying that much of the increase was due to low-profit sales to fleet buyers such as rental car companies, and retail sales to individual buyers were propped up by rising incentives such as rebates and subsidised leases.

Sales are “defying gravity” said Jonathan Smoke, chief economist for Cox. “Retail sales have been flat, and even those sales have been supported by incentives being up six percent.”

Cox analysts also said rising interest rates and a possible trade war due to tariff threats from President Donald Trump could raise new-vehicle prices and payments and cut into auto sales in the second half. Still, given the fact that automakers are willing to spend to keep their share of the market, Cox analysts raised their full-year forecast by 100,000 vehicles to 16.8 million vehicles.

Trucks and SUVs

accounted for 68 percent of the market in June, a record high as car sales continued to fade, Edmunds said.

The Federal Reserve in mid-June raised its benchmark interest rate for the second time and signaled that it may step up the pace of rate increases. The central bank raised its key short-term rate by a modest quarter-point to a still-low range of 1.75 percent to two percent. It means that consumers and businesses will face higher loan rates over time.

But Cox analysts said auto interest rates held steady in June, although they expect them to rise.

Bankrate.com said on its website new-auto loans are now around 4.75 percent.

Gas prices rose 63 cents per gallon over a year ago to an average price for regular of $2.86, according to AAA, taking a bigger bite out of household budgets.

Here’s how major automakers fared for the first six months of the year, according to Edmunds, which regularly provides content, including automotive tips and reviews, for distribution by The Associated Press: • General Motors, up 4.2 percent.

• Ford, down 1.8 percent.

• Toyota, up 3.0 percent.

• Fiat Chrysler, up 4.5 percent.

• Honda, down 0.5 percent.

• Nissan, down 4.8 percent.

• Hyundai, down 3.3 percent.

• Volkswagen, up 7.2 percent.

NOTICE

NOTICE is hereby given that LUBIN LOUIS of Pinedale off Wulff Road, 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 4th day of July, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The public is hereby advised that I, SHARISE CAndy.

MARSHALL of Great Harbour Dr., Great Harbour Cay, Berry Island, Bahamas intend to change my name to SHARECE CAndy MARSHALL. If there are any objections to this change of name by deed poll, you may write such objections to the Chief Passport Officer, P. O. Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of the publication of this notice.

NOTICE

NOTICE is hereby given that SAINTILFORT EVAN of Soldier Road, 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 27th day of June, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that ZIELA PIERRE of Governors Harbour, Eleuthera, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 27th day of June, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

THE TRIBUNE

Wednesday, July 4, 2018, PAGE 7

Former Malaysian leader arrested over state fund, to be charged with graft KUALA LUMPUR Associated Press FORMER Malaysian Prime Minister Najib Razak was arrested yesterday by anti-graft investigators and will be charged over his alleged role in the multibillion-dollar looting of a state investment fund, officials said.

A government task force probing alleged theft and money laundering at the 1MDB state investment fund said Najib’s arrest was linked to the suspicious transfer of 42m ringgit ($10.6m) into his bank account from SRC International, a former 1MDB unit, using multiple intermediary companies.

It said in a brief statement that Najib will be brought to court on today to be charged, but didn’t give details of the charges against him.

Najib’s arrest comes nearly two months after his coalition’s stunning rejection by voters in a May 9 general election.

In a pre-recorded video posted on social media hours after his arrest, Najib apologised to Malaysians but remained defiant.

“I have done my best, but I realised it is not enough. I admit there are many weaknesses... as a normal human being, I am not perfect but believe me, that the accusations against me and my family are not all true,” he said. “I will face it with perseverance. Truly, Allah knows.”

The new government has reopened investigations into 1MDB that were stifled under Najib’s rule. Najib and his wife, who have been questioned over the SRC issue by the anti-graft agency, have been barred from leaving the country.

Police have also seized jewelry and valuables valued at more than 1.1bn ringgit ($272m) from properties linked to Najib, who has denied any wrongdoing.

Najib is expected to face more than ten counts of committing criminal breach of trust linked to SRC International, Malaysia’s Bernama news agency reported. It said Malaysia’s new attorney general, Tommy Thomas, will head the prosecution in the case.

“This was the inevitable outcome when Najib lost the election and lost his

IN this photo taken Thursday, May 24, 2018, former Malaysian Prime Minister Najib Razak, centre, speaks to media as he leaves the Malaysian Anti-Corruption Commission (MACC) Office in Putrajaya in Kuala Lumpur.

Photo: Vincent Thian/AP political immunity,” Bridget Welsh, a political science professor at John Cabot University in Rome, said in an email. “It shows the resolve of the new government to address previous abuses of power. It has been done judiciously so far and speaks to a needed reckoning for Malaysia and a key step toward a cleaner governance.”

Najib’s daughter, Nooryana Najwa, praised her father as “kind, loving and gentle” and said he was emotionally and mentally strong.

“Even in the face of adversary today, he smiled, laughed and gave us all a hug ... worried more for the family than himself,” she wrote on Instagram. “You can paint a man black but Allah knows. Allah is not sleeping.”

A statement by a spokesman for Najib, sent to the media and posted on social media, said his arrest was expected as the new government had “delivered the guilty verdict” against him in public. It slammed the charges to be made against Najib as “politically motivated and the result of political vengeance” by new Prime Minister

Mahathir Mohamad.

Mahathir, who was premier for 22 years until 2003, was spurred out of retirement by the 1MDB saga.

Earlier Tuesday, the anti-corruption agency questioned Riza Aziz, Najib’s stepson and a Hollywood film producer, as it stepped up its probe on 1MDB. Riza was solemn as

he arrived at the anti-graft office and didn’t speak to reporters.

US investigators say Riza’s company, Red Granite Pictures Inc, used money stolen from 1MDB to finance Hollywood films including the Martin Scorsese-directed “The Wolf of Wall Street”. Red Granite in March agreed

to pay the US government $60m to settle claims that it benefited from the 1MDB scandal.

The civil suit against Red Granite was part of an effort to recover some of the $4.5bn that US prosecutors say was stolen from 1MDB. They say hundreds of millions from 1MDB landed in

Najib’s bank accounts.

The 1MDB government task force this week said 408 bank accounts involving funds of nearly 1.1bn ringgit had been frozen. It said the accounts, belonging to 81 people and 55 companies, are thought to have received funds from 1MDB between 2011 and 2015.

NOTICE

NOTICE

International Business Companies Act (No. 46 of 2000)

International Business Companies Act (No. 46 of 2000)

Hidden Ridge Holdings, Ltd.

Clare Bahamas Ltd.

Registration Number: 167826 B (In Voluntary Liquidation)

Registration Number: 167084 B (In Voluntary Liquidation)

Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act (No. 46 of 2000) Hidden Ridge Holdings, Ltd., commenced voluntary liquidation on 26th day of June, 2018.

Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act (No. 46 of 2000) Clare Bahamas Ltd., commenced voluntary liquidation on 26th day of June, 2018.

Any person having any claim against Hidden Ridge Holdings, Ltd., is required on or before the 26th day of July, 2018 to send their name, address and particulars of the debt or claim to the Liquidator of the company, or in default thereof they may have excluded from the benefit of any distribution made before such claim is approved.

Any person having any claim against Clare Bahamas Ltd., is required on or before the 26th day of July, 2018 to send their name, address and particulars of the debt or claim to the Liquidator of the company, or in default thereof they may have excluded from the benefit of any distribution made before such claim is approved.

GSO Corporate Services Ltd., of 303 Shirley Street, Nassau, The Bahamas is the Liquidator of Hidden Ridge Holdings, Ltd.

GSO Corporate Services Ltd., of 303 Shirley Street, Nassau, The Bahamas is the Liquidator of Clare Bahamas Ltd.

GSO Corporate Services Ltd. Liquidator

GSO Corporate Services Ltd. Liquidator

NOTICE

NOTICE

NOTICE

ADVERTISING CORP.

BEAZUL CORP.

LORMAL LIMITED

N O T I C E IS HEREBY GIVEN as follows:a) ADVERTISING CORP. is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. b) The dissolution of the said company commenced on the 26th June, 2018 when the Articles of Dissolution were submitted to and registered by the Registrar General.

N O T I C E IS HEREBY GIVEN as follows:a) BEAZUL CORP. is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. b) The dissolution of the said company commenced on the 27th June, 2018 when the Articles of Dissolution were submitted to and registered by the Registrar General.

c) The Liquidator of the said company is Octagon Management Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, Nassau, Bahamas.

c) The Liquidator of the said company is Octagon Management Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, Nassau, Bahamas.

Dated this 4th day of July, A. D. 2018

Dated this 4th day of July, A. D. 2018

_________________________________ Octagon Management Limited Liquidator

_________________________________ Octagon Management Limited Liquidator

N O T I C E IS HEREBY GIVEN as follows:a) LORMAL LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. b) The dissolution of the said company commenced on the 26th June, 2018 when the Articles of Dissolution were submitted to and registered by the Registrar General. c) The Liquidator of the said company is Octagon Management Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, Nassau, Bahamas.

Dated this 4th day of July, A. D. 2018 _________________________________ Octagon Management Limited Liquidator

PAGE 8, Wednesday, July 4, 2018

THE TRIBUNE

US-China tariffs: What’s behind them, who stands to be hurt?

WASHINGTON Associated Press PRESIDENT Donald Trump has boldly declared that trade wars are easy to win. He’s about to find out.

Barring a last-minute breakthrough, the Trump administration on Friday will start imposing tariffs on $34bn in Chinese imports.

And China will promptly strike back with tariffs on an equal amount of US exports.

And just like that, a highrisk trade war between the world’s two biggest economies will begin — one that could quickly escalate.

“I see us running into a full collision course in a few days,” said Ashley Craig, a trade lawyer at Venable LLP. “It seems as if both sides are fairly dug in.”

Here’s a look at what’s happening this week and its likely impact.

WHAT IS THE US DOING? The White House last month announced plans to slap 25 percent tariffs on roughly 1,100 goods imported from China, worth $50bn a year. It had originally proposed the tariffs in April, starting with 1,333 Chinese products.

After receiving public feedback, the administration cut 515 imports from the blacklist and added 284 others.

Starting Friday, the US will tax 818 Chinese products, worth $34bn a year, from the original list. It won’t target the 284 additions, worth $16bn, until it gathers further public comments.

HOW IS CHINA RESPONDING? China has warned that it won’t yield to Trump’s

cyber-theft. The US also asserts that Beijing uses state money to buy American technology at prices unaffordable for private companies.

In May, the White House had said it would announce curbs on Chinese investment in US technology by June 30 and impose those restrictions shortly thereafter. But last week, it dropped that plan.

WHAT HAPPENED TO THE INVESTMENT RESTRICTIONS? PRESIDENT DONALD TRUMP, right, with vice president, Mike Pence. pressure. If the US starts taxing Chinese imports Friday, Beijing plans to impose 25 percent tariffs on 545 US products worth $34bn a year — from soybeans and lobsters to sport-utility vehicles and whiskey. China is considering a follow-up tariff on an additional 114 US goods, worth $16bn a year.

Beijing’s target list of US goods to penalise is heavy on agriculture. That’s hardly a coincidence. Its tariffs are meant to deliver pain to American farmers, who overwhelmingly backed Trump in the 2016 election and whose interests are represented by powerful lobbyists and members of Congress.

In the meantime, Trump has told his US trade representative, Robert Lighthizer, to identify an additional $200bn in Chinese goods for ten percent tariffs. These penalties would take effect, Trump has said, if Beijing fails to reform its trade practices and proceeds with retaliatory tariffs.

The stakes could rise further yet: Trump has

threatened tariffs on still another $200bn in Chinese products if Beijing continues to retaliate.

WHAT’S BEHIND THE US-CHINA RIFT? The Trump administration has accused China of using predatory tactics in a lawless drive to overtake America’s technological supremacy. US officials point to Beijing’s long-range development plan, “Made in China 2025,” which calls for creating powerful Chinese entities in such areas as information technology, robotics, aerospace equipment, electric vehicles and biopharmaceuticals.

Foreign business groups argue that “Made in China 2025” is unfairly forcing them to the sidelines in those industries. The Office of the US Trade Representative concluded after an investigation that China’s tactics range from requiring US and other foreign companies to hand over technology in return for access to the vast Chinese market to outright

The administration settled last week on a less draconian plan: It would back an effort in Congress to strengthen reviews of foreign investment under the existing Committee on Foreign Investment in the United States, or CFIUS. This committee, led by the Treasury secretary, considers whether a foreign investment poses a risk to America’s national security.

These reviews apply to all countries — not just China — and are conducted on a case-by-case basis.

The House has approved a bill to strengthen the CFIUS law, and the bill will likely be considered by a House-Senate conference committee for a Senateapproved defense measure.

WHAT’S THE LIKELY IMPACT FROM A USCHINA TRADE WAR? The initial fusillade of tariffs will likely do little damage to the United States, China or the global economy. But if they escalate, the pain will deepen and spread.

Economists at Bank of America Merrill Lynch have warned that a full-fledged trade war, especially one that lasts more

than a year, would slow the US economy. By disrupting supply chains, eroding business confidence and heightening uncertainty, a trade war, they say, could “push the economy toward full-blown recession” and jeopardise America’s economic expansion — the second-longest on record.

Many individual businesses could soon endure hardship, too. Consider American soybean farmers, who send about 60 percent of their exports to China.

Their shipments will now be subject to a 25 percent tariff, which will instantly make their crops far costlier in China.

What’s more, the US tariffs on imported Chinese products could end up hurting American manufacturers. The Peterson Institute for International Economics calculates that 85 percent of the Chinese products to be hit by the initial Trump tariffs are machinery and components used in finished goods made in the United States. A result is that US manufacturers will have to pay more for parts and equipment, thereby putting them at a competitive disadvantage to foreign rivals.

ISN’T THE U.S. ALSO SPARRING WITH OTHER TRADING PARTNERS? Yes. Trump is battling in just about every direction. He has slapped tariffs on imported steel and aluminum — action that has drawn retaliatory tariffs from US allies like Canada, Mexico and the European Union. The president is also threatening to impose tariffs on imported vehicles and auto parts on the grounds that they pose a threat to America’s national security.

And he is pressuring Canada and Mexico to agree to rewrite the North American Free Trade Agreement to shift more auto production to the United States and encourage companies to move investment from Mexico to the United States.

By brawling with America’s friends, critics say, Trump has squandered an opportunity to build a united front against China.

After all, Europe, Japan and other rich countries have the same complaints about Chinese trade practices that America does.

IS THERE ANY REASON TO EXPECT A RESOLUTION? Maybe. For a time, it looked as though peace might be at hand. In May, Treasury Secretary Steven Mnuchin declared the trade war “on hold”. The Trump administration suspended its tariffs after Beijing agreed to increase its purchases of US goods, especially in agriculture and energy. The idea was that China’s additional purchases would shrink its trade surplus with the United States. Yet the cease-fire was short-lived.

Critics dismissed Beijing’s commitments as vague, and Trump decided to proceed with the tariffs after all.

The top White House economic adviser, Larry Kudlow, has said the two countries are “in communication” — although there’s been no word of any formal negotiations. Trump himself told Fox News Channel’s “Sunday Morning Futures With Maria Bartiromo” that “China wants to make a deal, and so do I, but it’s got to be a fair deal for this country.”