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Volume:114 No.158, JULY 11TH, 2017
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‘Blame PLP over new junk threat’ THE Minister of Finance has blamed the Christie administration’s efforts “to hide the true extent” of the Bahamas’ fiscal crisis for Moody’s threat to downgrade this nation to ‘junk’ status. K Peter Turnquest told Tribune Business he had no regrets about his frank 2017-2018 Budget statement, which revealed that the newly-elected Minnis administration was seeking to borrow $722m - the majority of which is to cover the $500m deficit it inherited from the previous fiscal year. Moody’s last week cited
By KHRISNA VIRGIL Deputy Chief Reporter kvirgil@tribunemedia.net
POLICE shot a man after he allegedly attempted to attack officers with a box cutter during routine patrol on Marcus Bethel Way over the weekend. According to authorities, when officers attempted to arrest the man for an outstanding criminal warrant, SEE PAGE THREE
FACES OF THE FUTURE
Moody’s warns of downgrade risk By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
POLICE OPEN FIRE AS MAN ATTACKS OFFICERS WITH KNIFE
these revelations, together with poorer fiscal consolidation prospects, as the key factors behind its decision to place The Bahamas’ sovereign creditworthiness on review for another potential downgrade. The move comes as little surprise, given that the rating agency had indicated in a previous June 5 statement that it had been spooked by the Budget’s nine-figure revisions to estimates made just two months earlier. Should Moody’s act, The Bahamas will have lost its ‘investment grade’ credit rating - and been downgraded to ‘junk’ status’ - by both major rating agencies within a seven to eightmonth period. FULL STORY - SEE BUSINESS
DOING BUSINESS WILL COST US MORE AND SCARE OFF INVESTORS By RASHAD ROLLE Tribune Staff Reporter rrolle@tribunemedia.net
AS Moody’s prepares to review the Bahamas’ creditworthiness following the Minnis administration’s revelations about the country’s fiscal condition, former Central Bank Governor James Smith warned that a downgrade to ‘junk’ status would raise the cost of borrowing, increase the current costs of debt servicing and potentially scare off investors. Meanwhile when questioned about the looming
review and possible downgrade yesterday, Prime Minister Dr Hubert Minnis would only say the government “must exercise fiscal prudence” in the way it runs the country’s affairs. Moody’s, which declined to downgrade this country’s bond and issuer ratings earlier this year even though Standard & Poor’s did so in late 2016, said in a statement last week its decision to review this country’s Baa3 rating was prompted by official remarks that the country’s “fiscal position SEE PAGE SIX
YOUNGSTERS join the crowds at Clifford Park on Sunday to watch the cultural show in celebration of the Bahamas’ 44th year of Independence. See pages eight to 11 for more pictures. Photos: Shawn Hanna/Tribune Staff
SIMPLE STEPS TO BRING BILLS DOWN By NICO SCAVELLA Tribune Staff Reporter nscavella@tribunemedia.net
FORMER Bahamas Electricity Corporation Executive Chairman Leslie Miller on Friday regretted the recent spike in electricity costs, calling on the Minnis administration to “do what is necessary” to lower the price of power. Mr Miller told The Tribune the government should “stop reinventing the wheel” on the matter, claiming that the best course of action would be
to consult its predecessors, himself included, on how to arrest the situation rather than continuing to “burden the Bahamian people with these outrageous damn BEC bills”. Mr Miller’s comments came a day after Works Minister Desmond Bannister said that while it is unfortunate that consumers have seen a significant increase in their Bahamas Power and Light (BPL) bills, the government cannot continue to absorb the utility provider’s expenses.
Mr Bannister told The Tribune that BPL has a “huge legacy debt” and unfortunately the cost will have to be passed on to the public “directly or indirectly”. Mr Bannister’s statements came after the Central Bank of The Bahamas revealed that BPL’s fuel charge increased by 8.3 per cent to 13.7 cents per kilowatt hour (kWh) on a monthly basis, and by 49.7 per cent when compared to May 2016. SEE PAGE SIX
GOVT RAISES STATUS FOR NOTTAGE FUNERAL By RASHAD ROLLE Tribune Staff Reporter rrolle@tribunemedia.net
THE Minnis administration has increased the government’s budget for the official funeral for Dr Bernard Nottage from $10,000 to $50,000, the Cabinet Of-
fice announced yesterday, while explaining why the former member of Parliament will not be given a state funeral. The official funeral will be held at St Agnes Anglican Church at 11am on Friday. In a statement released
Monday evening, seemingly in response to criticism that Dr Nottage was not afforded a state funeral, the Cabinet Office explained that state funerals are reserved for governors general and prime ministers, serving or
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SEE PAGE 12
CAMPAIGN PLEDGE STAYS OFF AGENDA By KHRISNA VIRGIL Deputy Chief Reporter kvirgil@tribunemedia.net
DESPITE announcing intentions to seek the public’s consent through a referendum on instituting term limits for the prime minister, a recall system for non-performing members of Parliament and an independent Constituencies Commission and Electoral Commission, the Minnis administration has not decided on a timeline for this exercise, how it will be executed or what it might cost taxpayers. According to Prime Minister Dr Hubert Minnis yesterday, Cabinet has not yet discussed this aspect of the Free National Movement’s (FNM) plans. The prime minister said he was unable to say at this time when this SEE PAGE FIVE