Caterpillar dealer’s ‘ nancial ruin’ fear on $1.3m VAT liability tossed
BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
WARNINGS by the Bahamas-based dealer for Caterpillar construction equipment that it faces “fnancial ruin” if forced to immediately pay a $1.276m disputed VAT liability yesterday failed to impress the Supreme Court.
Acting justice Raynard Rigby KC refused to “stay” the Tax Appeal Commission’s December 9, 2025, verdict that Machinery & Energy Ltd, located on College Avenue in the Oakes Field area, must pay these outstanding taxes to the Department of Inland Revenue despite its ongoing bid to overturn this decision on appeal.
He found that the authorised Caterpillar dealer, which supplies vehicles and heavy-duty equipment and machinery to the construction industry, had failed to supply sufcient evidence to justify the Supreme Court temporarily barring payment of the disputed VAT. In particular, acting justice Rigby found the company had provided no fnancial records to justify its “fnancial ruin” and hardship claims if it was forced to pay-up now.
He instead noted that assertions by the VAT comptroller and Department of Inland Revenue, suggesting Machinery & Energy Ltd generated $7.384m in proft for 2025 and could thus easily pay the contested sum, had gone unchallenged by the
Supreme Court refuses to halt DIR pay-up despite appeal
Abillty to raise CIBC guarantee undermines harm claims
And $7.4m pro t calculation ‘appealing’, shows ‘muscle’
company. Acting justice Rigby said this fgure, derived from its VAT returns and other tax flings, “looks appealing” and suggests the Caterpillar dealer has the required “fnancial ‘muscle’” to make payment without causing it undue distress.
Machinery & Energy Ltd, in its Supreme Court submissions, argued that barring payment of the disputed VAT until its challenge to the Tax Appeal Commission verdict is determined was justifed on multiple grounds including that it has “reasonable prospects of success”.
It also asserted that there was “no risk of prejudice” to the VAT comptroller and government revenues because it had secured the “potential liability” by obtaining a December 30, 2025, guarantee from CIBC Caribbean (Bahamas) to cover
‘Bahamians don’t feel what Gov’t is selling’
BY NEIL HARTNELL Tribune Business Editor
nhartnell@tribunemedia.net
THE Opposition’s fnance spokesman yesterday asserted that “what the Government is selling does not match what the Bahamian public are feeling” in relation to the projected $223m Budget surplus for the current 2026-2027 fscal and optimistic economic outlook.
Kwasi Thompson, the east Grand Bahama MP, told Tribune Business that such a positive fscal outlook as set out by the Davis administration in its Budget forecasts and documents should show up - and be felt - by improved public services benefting from increased investment, vendors and suppliers to the Government being paid on time and their arrears wiped out, and civil servants receiving compensation due to them.
However, he argued that none of this is happening based on complaints from Bahamian nurses and teachers, the private sector and taxpayers at-large, which suggests a disconnect for many between what the Government is forecasting on paper and the daily reality they see and feel.
Mr Thompson, responding to the Government’s just-released 2026-2027 annual borrowing plan, told this newspaper that “the central issue” is “whatever the Government is portraying themselves to be doing, it must translate into better for the Bahamian people. It must translate into better lives, better services for the Bahamian public. These are the things the Bahamian public are interested in.
“The challenge the Bahamian public are having is that things are not better. If things are better, as the Government is portraying, then all the vendors providing goods
BY FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
and underwrite the tax payment if it lost.
“ Immediate enforcement of the signifcant VAT assessment and penalties prior to the adjudication of the applicant's appeal would result in serious fnancial harm to the applicant and its operations, as the monies expended to satisfy the assessment are unlikely to be immediately recoverable should the applicant succeed on appeal and, in any event, the fnancial costs of meeting the assessment, which will continue until the recovery of the funds expended to meet the assessment,” Machinery & Energy said.
Antonia Benjamin, the Caterpillar dealership’s fnancial controller, in a January 20, 2026, afdavit doubled down on these fears by alleging the company “will sufer serious and irreparable fnancial prejudice", and that the "assessment sum of $1.276m, together with the penalty of $30,000 and interest, is substantial and would materially impair the applicant's cash fow, business operations and ability to continue trading in the ordinary course".
She also cited delays in the “Government’s payment process” involving VAT refunds as a further concern for Machinery & Energy. She also disclosed the January 14, 2026, letter from CIBC confrming that the $1.276m guarantee to underwrite the tax payment - should the company lose the VAT appeal
Ex-minister: Aviation never ‘cracked the nut’ on pilot hacking
BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A FORMER Bahamian aviation minister yesterday revealed he never felt industry regulators had “cracked the nut” in preventing and deterring unauthorised commercial fights by pilots commonly known as ‘hackers’.
A $500m liquefed natural gas (LNG) regasifcation terminal project was yesterday hailed as the cornerstone of The Bahamas’ energy reforms through its ability to deliver lower costs, improved energy reliability and a cleaner baseload fuel source for New Providence.
BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
BAHAMIAN regulators yesterday declined to state where they stand on the $1,000 one-time “demand” or congestion charge that Elon Musk’s Starlink satellite Internet and communications provider is levying on many New Providence subscribers.
The Utilities Regulation and Competition Authority (URCA) declined to respond to Tribune Business inquiries after several persons asked whether it will move to safeguard and protect consumer interests given that Starlink is one of its regulated licensees.
One source, who reached out to this newspaper, said on condition of anonymity: “A few people have been trying to get on. I recommended it to one of my friends to get Starlink, and they got it but had to pay a
The New Providence Gas terminal, a joint venture involving BISX-listed FOCOL and Shell, the multinational energy giant, will be constructed at Clifton Pier and developed in three phases to supply fuel to existing and future power generation facilities while creating what executives described as The Bahamas’ frst large-scale LNG import and distribution hub.
D’Aguilar: ‘Didn’t feel su cient safety and oversight’
Sought ‘control points’ for illegal commercial charters
Problem still ‘rampant’ but Civil Aviation makes
Mr D’Aguilar told this newspaper these would have acted as “control
Dionisio D’Aguilar, who held ministerial responsibility for the industry under the Minnis administration, told Tribune Business he was never satisfed that the Civil Aviation Authority of The Bahamas (CAAB) had deployed sufcient personnel, technology and other resources to get a grip on the known ‘hacking’ challenges at Lynden Pindling International Airport’s (LPIA) general aviation segment. Besides supplying enough qualifed inspection and other supervisory personnel to verify whether pilots and their aircraft have the necessary licences, and airworthiness certifcates, to enable them to ofer commercial fights, he added that Civil Aviation - during his 2017-2021 term - had also been working to facilitate the electronic fling of fight plans and passenger manifests.
Prime Minister Philip Davis KC said the project marks "an important milestone" in eforts to overhaul an electricity system that has struggled with ageing infrastructure, rising demand and repeated outages.
He added that the project forms part of the Government's wider strategy to modernise the country's electricity sector after inheriting what he described as an ageing and deteriorating network. "When this administration came into ofce in 2021, we understood the condition of the energy sector we inherited," said Mr Davis.
"Today represents our commitment to build an energy future that is stronger, cleaner and more reliable for our people," said Mr Davis. "Today's introduction of LNG is a major step because it allows us to diversify our fuel supply, strengthen energy security and support a more reliable electricity system."
$1,000 surcharge. If you are on New Providence and go online to sign-up for a Starlink account, it is there.
“If you are geolocated on New Providence, you have to pay a $1,000 surcharge. How does that happen as a regulated entity? Are we protected with a charge, a fee like that by the regulator? An interesting point: If you sign up for a stationary package at $60 per month on New Providence, the surcharge applies. If you sign up for a roaming plan, which provides coverage on New Providence for $175 per month, the $1,000 surcharge does not apply.”
Tribune Business was unable to reach Starlink for comment but, by attempting to apply online for an account with the satellite operator, was able to verify what concerned consumers had said.
“Demand surcharge in your area. A one-time charge applies to activate Starlink service in your
JOBETH COLEBYDAVIS
DIONISIO D’AGUILAR
KWASI THOMPSON
Where does URCA stand on Starlink ‘congestion’ charge?
Dear Editor
STARLINK has been a welcome addition to The Bahamas. It has given many people, especially in the Family Islands, access to Internet service that simply was not available before.
That is why reports of a $1,000 congestion surcharge for customers in New Providence deserve public attention.
Starlink says the surcharge is necessary because
the network is congested. Fair enough. But that immediately raises another question. How do we know the network is congested? Who decides that? Is there an independent assessment, or does Starlink simply make that determination itself? Is there a standard that must be met before a surcharge can be imposed, or is it entirely a matter for the company?
If Starlink decides when congestion exists, decides how much customers must pay because of it, and decides when the surcharge should end, there is very little independent oversight. That should concern consumers. More importantly, what precedent does this set? If one licensed telecommunications provider can impose a $1,000 congestion surcharge, what
New chairman takes helm at Protected Areas Fund
THE Bahamas Protected Areas Fund (BPAF) has announced that Glenn Bannister has stepped down as its chairman to be succeeded by Marcus Cheetham with efect from July 1.
prevents other providers from introducing their own special fees? Could cable companies impose congestion charges in busy neighbourhoods? Could providers charge extra because a customer's home is more expensive to serve or because demand in a particular area is high? Once these types of charges become accepted, where does it end?
Starlink is a licensed telecommunications provider in The Bahamas. The public is entitled to know whether the Utilities Regulation and Competition Authority (URCA) has any oversight of a surcharge like this. Was URCA consulted before it was introduced? Does it have the authority to review the basis for the charge, or is this entirely a commercial decision beyond regulatory scrutiny?
This is not about preventing companies from making a proft. It is about ensuring that consumers are protected, and that clear rules apply equally to every licensed provider. If this surcharge is acceptable today, Bahamians deserve to know what similar charges could become acceptable tomorrow. These are questions that URCA must answer.
The Fund, which was created in 2014 by Parliament and provides sustainable fnancing for conservation eforts across The Bahamas, said in a statement that Mr Bannister has supported initiatives that strengthened the protection of the country’s natural resources for the beneft of present and future generations.
its ‘Protecting the Gold of our natural resources’ campaign, reinforcing the critical role healthy ecosystems play in supporting the Bahamian economy, communities and way of life.
It added that, under his leadership, BPAF advanced
Mr Bannister also guided the Bahamas debt conversion project for marine conservation, which is the
ree-phase transformation for New Providence energy baseload
FUEL - from page B1
“We did not inherit a system that simply needed minor repairs. We inherited a grid that, in parts, was over 50 years-old - infrastructure built for a Bahamas that no longer exists, straining to meet the demands of the one we live in today.”
Dexter Adderley, FOCOL’s president and chief executive, outlined the project’s phased
development, saying construction will begin with supplying LNG to existing electricity turbines at Clifton Pier before expanding to Blue Hills.
“This project is being built in three distinct phases. Phase one, which is targeted for completion in the frst quarter of 2027, will supply LNG to 90 mega watts (MW) of gas turbines at Clifton Pier. Phase two, targeted for the fourth
quarter of next year, will supply LNG for the Blue Hills power plant as well,” said Mr Adderley. He said the fnal stage will include construction of a new combined-cycle generating facility. “Phase three is what I call the icing on the cake. This LNG terminal will supply a new, stateof-the-art, high-efciency combined-cycle power plant at Blue Hills with a total baseload capacity of
more than 170 MW,” Mr Adderley added.
“Once this LNG facility is fully built, it will have the capacity to supply LNG to all LNG projects throughout The Bahamas and the Turks and Caicos.”
Mr Adderley said the total investment represents one of the country’s largest energy infrastructure projects.
“The combined capital investment for the LNGto-power project, which includes the LNG terminal and the new power generation assets, totals in excess of half a billion dollars,” the FOCOL chief said. “This project is estimated to yield signifcant fuel cost savings for many, many years to come.”
He added that the development extends beyond simply changing the fuel source used for electricity generation. “This project expands our energy infrastructure and strengthens our ability to deliver cleaner, more efcient energy solutions in New Providence and beyond. It is an investment in longterm energy resilience and in the economic opportunities that will follow,” Mr Adderley added.
Jobeth Coleby-Davis, energy, utilities and aviation minister, described LNG as a critical transition fuel that will help modernise the country’s electricity sector while reducing emissions.
“LNG is the bridge fuel. It is signifcantly cleaner than the fuels we have relied on for half-a-century,” she said.
“By transitioning to LNG, we are drastically reducing our carbon footprint. We are telling the world that The Bahamas is not just a victim of climate change, but a proactive leader in the global energy transition.”
largest marine conservation fnancing initiative in this nation’s history. The programme established a sustainable $124m funding mechanism that will strengthen marine protection and support local conservation eforts over 15 years.
The Fund said its outgoing chairman was a strong advocate for ensuring the frst marine conservation grants reached Bahamians working closest to the country’s marine and coastal ecosystems. He believes that local communities,
conservation practitioners and environmental organisations are at the forefront of protecting Bahamian natural ecosystems and should be empowered to lead that work.
Beyond BPAF, Mr Bannister served six terms as president of the Bahamas National Trust (BNT); was the founding chairman of the Inagua Development Association; and serves on the Board of the Bahamas Reef Environmental Educational Foundation (BREEF).
Mrs Coleby-David argued the benefts extend beyond environmental goals and will beneft the wider economy. “But this isn’t just about the environment. It’s about the economy,” she added. “Energy is the lifeblood of a modern society. When energy is expensive, everything is expensive. When energy is unreliable, progress stalls.”
Mrs Coleby-Davis said integrating LNG into The Bahamas’ electricity system will improve both afordability and reliability.
“By integrating LNG into our energy mix, we are stabilising our future. We are creating a system that is resilient, modern and capable of supporting the growing economy that we are building,” she added.
The minister also said the project is expected to create employment opportunities during both construction and operations, while helping attract additional private sector investment.
“In addition to the energy impact of this project, the development of this LNG terminal will also be an engine of growth. As this project moves forward,
scores of jobs will be created through construction and, in the long-term, in engineering and operations,” Mrs Coleby-Davis said,
“When we invest in energy infrastructure, we aren’t just building a terminal; we are building an ecosystem. Reliable, afordable energy attracts other industries. Therefore, we are creating the conditions for additional private investment that will generate a ripple efect of opportunity for generations to come.”
Mr Davis said the LNG investment complements the Government’s wider energy strategy, which includes expanding renewable generation across The Bahamas while strengthening the country’s transmission and generation infrastructure.
“For Bahamians, the expectation is straightforward,” he said. “The power challenges must be addressed. The interruptions must be reduced. The cost of energy must go down. Those expectations are reasonable, and they are expectations we share.”
GLENN BANNISTER
PHILIP BRAVE DAVIS KC
LNG switch key element to slash energy outages
BY FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
FOLLOWING widespread power outages impacting New Providence, the Davis administration yesterday argued that the country's transition to liquefed natural gas (LNG) is a critical step in rebuilding an ageing electricity system that can no longer meet modern demands.
Prime Minister Philip Davis KC and Jobeth Coleby-Davis, energy, utilities and aviation minister, used yesterday's groundbreaking for the New Providence Gas LNG terminal to directly address the electricity interruptions that have afected residents and businesses, maintaining that the project forms part of a wider efort to modernise an electricity network burdened by ageing infrastructure.
Mr Davis acknowledged the disruption experienced by consumers while stressing that the outages highlighted why major investment in the country's energy sector is necessary.
"Over the past few weeks, many Bahamians have experienced the consequences of an unreliable energy system," said Mr Davis. "Families felt the inconvenience, and communities across New Providence saw what happens when systems are interrupted. Your frustration is real and your concerns are valid."
While noting that electricity systems globally have come under increasing pressure from extreme heat, storms and rising demand, Mr Davis said that did not lessen the impact on Bahamian households and businesses.
"This has been one of the hottest summers on record and, across the globe, power grids are straining under the weight of extreme heat, surging demand, storms and infrastructure that was never built for the pressures we face today,” he added. "That tells us this is not a challenge unique to The Bahamas - but it does not make what happened here any easier to accept." Mr Davis said the Government
inherited an electricity system requiring wholesale reconstruction rather than incremental improvements.
"When this administration came into ofce in 2021, we understood the condition of the energy sector we inherited,” he added. "We did not inherit a system that simply needed minor repairs. We inherited a grid that, in parts, was over 50 years old - infrastructure built for a Bahamas that no longer exists, straining to meet the demands of the one we live in today."
Mr Davis said the scale of deterioration extended across both New Providence and the Family Islands. "Sixty percent of generation capacity in New Providence required total replacement. In the Family Islands, that number climbed to 80 percent,” he added. “This was not a system that could be patched. It was a system that had to be rebuilt."
Mr Davis said successive initiatives, including renewable energy projects, utility agreements and now the LNG terminal, formed part
Shell: Bahamas well-placed to extract LNG use bene ts
BY FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
SHELL executives yesterday asserted that The Bahamas is well-positioned to beneft from liquefed natural gas’s (LNG) longterm growth despite recent market volatility because of its proximity to the US, which is rapidly becoming the world's largest exporter.
Tom Summers, executive vice-president for Shell LNG Marketing & Trading, said the company's partnership with FOCOL through New Providence Gas is intended to provide The Bahamas with a practical and scalable energy solution as it seeks to modernise its electricity sector while improving reliability and reducing emissions.
"Of course there's been a bit of volatility this year with LNG, but it has grown signifcantly over the last decade and is anticipated
to grow even more through the end of this decade," said Mr Summers.
"What that means is there is confdence among buyers and investors to build LNG receiving facilities and, particularly here in The Bahamas, with its proximity to the US, which is fast becoming the world's largest LNG exporter, it's a very advantaged location to bring competitive LNG to the nation."
Mr Summers said while visitors are naturally drawn to the country's beaches and tourism product, reliable energy infrastructure is equally essential to supporting economic activity.
"When people think of The Bahamas, they picture the natural beauty, the turquoise waters, the remarkable coastline and the vibrant communities. But what is less visible, yet vitally important for any community or country, is the critical infrastructure and energy supply that
powers those lives and livelihoods,” he added.
Mr Summers said The Bahamas faces many of the same energy challenges confronting island nations around the world, and cautioned that no single investment will resolve every challenge facing the electricity sector.
"Like many island nations, The Bahamas is striving to meet increasing energy demand while modernising its infrastructure, managing costs, increasing resilience and advancing its environmental ambitions,” he added.
"There is no single answer to these challenges. Sustainable, wide-reaching improvements require progress across the entire electricity system - from fuel supply and generation to transmission, distribution and the integration of renewable energy.
"That is why today's ceremony matters. This terminal is an important part of that
of a longer-term strategy to transform the sector. He said consumers ultimately have three expectations.
"The power challenges must be addressed. The interruptions must be reduced. The cost of energy must go down. Those expectations are reasonable, and they are expectations we share,” he added.
Mrs Coleby-Davis also sought to reassure households and businesses frustrated by recent outages and rising electricity costs, saying the Government understood public concerns. "To the general public watching today, we hear you," she said.
"We know the frustrations of a power outage in the heat of the summer. We know the anxiety of opening an electricity bill that consumes a signifcant percentage of your household or business income."
Mrs Coleby-Davis also acknowledged that high energy costs have afected both the economy and consumers for decades.
"I acknowledge that, for too long, the cost of doing
broader transformation. It represents progress. It represents partnership. And it represents confdence in the future of this country."
Mr Summers said the project combines FOCOL's decades of experience in the Bahamian market with Shell's global LNG expertise. "FOCOL brings deep local knowledge, strong roots and decades of experience serving customers and communities across this country,” he added.
"At Shell, we bring global LNG capabilities, supply
business and the cost of living in The Bahamas have been infated by an energy sector that was stuck in the 20th century,” she said, adding that the Government's objective remains focused on two priorities.
"As minister with responsibility for the energy sector, I want to assure you that the Government's goal is singular and unwavering: Reliability and afordability." Mrs Coleby-Davis argued the LNG terminal represents one of the key investments needed to improve service reliability while lowering fuel costs over time.
"This LNG terminal will help us ensure that, when we fip a switch, the light comes on every time. It will ensure that our hotels, our hospitals and our schools can operate without fear of interruption,” she added.
Mrs Coleby-Davis also reiterated the Government's expectation that switching from heavy fuel oil to natural gas will eventually reduce electricity costs. "More importantly, by moving to a more efcient, stable fuel source like LNG, we are creating the pathway to lower electricity bills. This is not a maybe. This is the plan,” she added.
"We are decoupling our fate from the wild swings of the global energy market and anchoring it in stable, modern infrastructure. We are putting money back into
experience and a long history of working with customers and partners here in The Bahamas. We bring our expertise in small-scale LNG operations, LNG bunkering and a growing regional network to deliver a viable small-scale LNG solution for The Bahamas. "Together, through New Providence Gas, our organisations are combining Bahamian expertise with Shell's leading position as an LNG supplier to support the country's national ambitions."
the pockets of the Bahamian people."
Dexter Adderley, FOCOL president and chief executive, said yesterday's groundbreaking refected the urgency of addressing long-standing weaknesses in the country's electricity infrastructure.
"Ladies and gentlemen, I believe it is safe to say that we all understand the urgent need for reliability and infrastructure, and today's groundbreaking is evidence that we are tackling these issues head-on," he said.
Mr Adderley added that the LNG project represents an investment not only in cleaner energy but in strengthening the country's long-term electricity system.
"This project expands our energy infrastructure and strengthens our ability to deliver cleaner, more efcient energy solutions in New Providence and beyond. It is an investment in long-term energy resilience and in the economic opportunities that will follow,” he said.
The LNG terminal will be developed in phases beginning with supplying natural gas to Clifton Pier before expanding to Blue Hills, forming part of the Government's broader $1.14bn energy transformation programme announced last year.
Mr Summers said every country's energy transition must refect its own circumstances rather than following a one-size-fts-all approach. "Each country's energy circumstances and energy requirements are unique. But if there is one factor in common, it is that successful transitions must be practical, carefully sequenced and responsive to the communities they serve,” he added.
SUPPLY - See Page B4
Tax consultant alleges DIR not asked on payment plan
CHALLENGE - from page B1
- would remain in place for one year until December 31, 2026. This, though, was countered by James Rhodes, a tax dispute resolution attorney and consultant to the Department of Inland Revenue, who “attacks the grounds of appeal”, raised issues with the guarantee and asserted that the Caterpillar dealer never contacted the tax authority to discuss a payment plan that “would take into account the applicant’s cash fow, business operations and ability to continue trading in the ordinary course”.
Mr Rhodes also alleged: “On the basis that the VAT collected on the applicant’s sales represents 10 percent of the applicant’s gross revenues from sales, and the VAT paid on the applicant’s expenses represents 10 percent of the applicant’s expenses, the VAT payable would be an approximation of the applicant’s proft for
the period of time from January 1, 2025, to December 31, 2025. That proft would be $7.384m “Without any information being provided by the applicant to explain its cash fow, business operations, or cash needs for trading in the ordinary course of its business, the assessment sum represents approximately 18 percent of its profts from the 2025 calendar year.”
Based on acting justice Rigby’s verdict, the VAT dispute appears to be centred on Machinery & Energy Ltd’s assertion that the tax is not payable by itself because “the goods were assessed to its clients”. Its appeal claims the Tax Appeal Commission was mistaken in “fnding that assessing VAT on the accommodation invoices did not amount to impermissible double taxation within the meaning of the VAT Act 2024” and that it had to prove appropriate tax was paid at the border.
“The Applicant also submitted that without a stay
it would have to settle all future flings of the Department of Inland Revenue, and that the respondent would sufer no prejudice by a stay based on the terms of the letter of guarantee issued by CIBC,” acting justice Rigby said of Machinery & Energy’s arguments.
“The respondent attacked the stay application by focusing on the merits of the decision of the Commission, and argues that section 56 and regulation 34 of the VAT Act alleviate any double taxation. It also suggested that the applicant’s ‘argument has no reasonable prospects of success’ because whether tax is paid on the import of the taxable supplies is not relevant for the appeal.
“The respondent also challenged the premise that the applicant will sufer prejudice if a stay is not granted. It drew attention to the fact that the letter of guarantee will expire on December 31, 2026.” Acting justice Rigby also noted this
Regulator employs education as opposed to ‘beating with a stick’
points” to combat so-called ‘hacking’. Aviation industry sources, speaking on condition of anonymity, yesterday confrmed the ability to fle electronic fight plans exists and they would be “surprised” if any operators are still relying on manual paperwork and faxes to the control.
And they added that Civil Aviation has, within the last two years, intensifed eforts to tackle unauthorised commercial fights and those that operate them via an education-type campaign designed to bring the latter into the fold as opposed to “beating them with a stick”. However, they conceded that hacking remains “rampant” within the Bahamian aviation industry.
Mr D’Aguilar spoke out in the wake of Friday’s fatal Andros crash that killed all ten persons aboard a Flamingo Air plane, acknowledged the gaps in aviation regulation and oversight during his
four-and-a-half years as aviation minister. There is nothing yet to suggest that the downed aircraft was engaged in hacking or an unauthorised commercial fight.
“I must say I wasn’t happy. I didn’t feel that, in Civil Aviation, we had cracked the nut of allowing hacking to continue,” he told Tribune Business. “I didn’t feel there was suffcient safety and oversight on fights going out of general aviation. I’m not sure what has transpired since I left ofce, but there was clearly a problem. Pilots were getting around the regulations by saying they were not transporting passengers for commercial purposes; that it was friends and family members.
“I wasn’t 100 percent sure that nut had been cracked. What was required in my opinion, and I felt Civil Aviation should have done this, was to set up people at general aviation to verify that the pilots transporting people have the necessary licences, and the aircraft has
the necessary paperwork and certifcates to make those fights.
“Some of these hackers were taking the mickey. They were making hundreds of fights per year and, in every instance, were getting away with it by saying they were taking just their family, just their friends. We could also have controlled these folks by making them fle a fight plan. That would have been another control point. If that aircraft and pilot did not have sufcient paperwork to allow them to conduct commercial fights, there’d be a control point at the tower.”
But aviation industry contacts, while confrming that the electronic submission of fight plans is now mandatory, yesterday told this newspaper that Civil Aviation under its current director-general, Chequita Johnson, has done more in the past two years than it ever has previously to address hacking - albeit through “conformity” rather than a crackdown.
point in the VAT comptroller’s favour, suggesting that the fact the CIBC guarantee expires after a year suggests the Caterpillar dealer saw an indefnite undertaking was “was not feasible or commercially reasonable.
“It does appear to me that a guarantee of limited duration provides no material comfort to the respondent [VAT comptroller], who has the obligation to recoup the tax liability,” he added. “I also note that the applicant, while suggesting fnancial ruin if the tax liability is paid, elected not to disclose any fnancial statements or fnancial records to support its contention.
“The respondent challenged the applicant’s bald statement of fnancial ruin and advanced the view that the 2025 profits for the applicant were in the region of $7.384m, making it possible for the tax liability to be paid and showing some fnancial ‘muscle’ in the applicant’s resources. This proposition advanced by the respondent
“Under the new director-general, she’s the frst one I’ve ever seen take a human approach, which is what they need to make changes,” one source said. “She’s done it through community outreach and education. They have been doing things and there has been progress there, but it’s not straightforward as ultimately you have to stop people fying and you have to police it.
“If you ask me whether there have been moves taken to reduce hacking in The Bahamas, I would say yes, but this has been done in efect through conformity rather than a crackdown.”
The source said Ms Johnson and other Civil Aviation ofcials have met with pilots operating from general aviation to “get them to understand” what licences and authorisations they require to ofer legitimate commercial fights, the airworthiness standards their planes must meet, and “get them into the fold”.
“Is hacking still rampant? Yes,” the source conceded. “They are making an efort. It’s defnitely a challenge because there’s going to be political interference, but over the last year there’s been the greatest efort
went unanswered by the applicant. “In my mind, the respondent’s suggestion of the probability of the applicant achieving a proft in the region of $7.384m looks appealing on the basis of the tax returns fled with the Department [of Inland Revenue] by the applicant. While I am unable to irrefutably conclude that the applicant’s proftability was as suggested by the respondent, I am however unable to agree with the applicant’s argument that without a stay it will sufer serious and irreparable fnancial prejudice.”
Acting justice Rigby continued: “There is no suggestion in the applicant’s evidence that its cash position will be severely depleted if the tax liability is paid. Its ability to obtain the letter of guarantee suggests that it has funding and can meet the tax liability. The evidence therefore seems to be contradictory that if the tax liability is
and most impactful efort that I’ve seen them doing. Rather than beat them with a stick, she’s trying to bring them into the fold.”
Another aviation contact conceded that it is difcult to catch, and prove, unauthorised charters because the passengers themselves will deny paying for a fight thus limiting any evidence of a commercial fight. They added Civil Aviation has also secured an ofce around 1,000 feet from general aviation and has inspectors posted at LPIA.
Mr D’Aguilar, meanwhile, said there were multiple questions surrounding the Independence Day crash including whether the plane was leased by Flamingo Air to someone else. If it was, he added that the type of lease involved could afect who was responsible for the aircraft’s maintenance, while Civil Aviation should have been provided with details on this arrangement if it existed.
“Civil Aviation is not there to check every single fight,” he added. “There’s a responsibility on the airline companies to abide by the rules. Did they abide by the rules?” The former minister also questioned, given Flamingo Air’s history of safety incidents, if Civil Aviation already possessed sufcient evidence to suspend its air operator certifcate (AOC) prior to Friday’s eventswhich also included a fight to Mayaguana returning to LPIA - or if that provided “the tipping point”.
Mr D’Aguilar said that, given the complexities and
paid pending the appeal, the applicant will be ruined.
“The applicant’s decision to place no fnancial information before the court to support its position of fnancial hardship or ruin, and to show that it lacks the resources to pay the tax liability, gave me no basis to assess and determine the substance of their submissions.” Acting justice Rigby said Machinery & Energy’s ability to enter into a payment plan with the Department of Inland Revenue “is contrary to any possibility of fnancial ruin” and ease any fears it would cease business if forced to pay now.
The judge also found there was no evidence to support the Caterpillar dealer’s concerns about late government payments. Machinery & Energy Ltd was represented by John Wilson KC of McKinney, Bancroft & Hughes, while Kirkland Mackey and Renee Charles acted for the tax authorities.
safety issues bound-up with aviation regulation, he allowed the ofcials working under him on the various regulatory bodies to do their jobs without hindrance when minister.
“As much as you have politicians sitting over this area, you cannot take away from the fact civil servants who run these departments are trained in these areas and better capable of providing oversight,” he added.
“I’m a laundromat operator. I don’t have the foggiest idea how to provide oversight. While people rise up and want to beat up on politicians, the solution in this sector must come from the professionals. They lead it. Where they may complain is political interference, with the politicians saying they are killing the sector and causing the professionals to step back from what they feel is the necessary solution, but when I was minister I stepped back and let the professionals do what they needed to do.”
As an example, Mr D’Aguilar cited Civil Aviation’s decision to stop Sky Bahamas from operating under his watch even though “there was a lot of pressure on me” to intervene. The former minister said he also oversaw a package of aviation legislative reforms that split the Aircraft Accident Investigation Authority (AAIA) from Civil Aviation to eliminate the potential “confict” caused by both reporting to the same minister when the former’s probes may be critical of the latter.
Energy woes not solved by just one improvement
SUPPLY
- from page B3
He described LNG as an important complement to renewable energy rather than a replacement for it.
“Natural gas is a fexible, versatile energy source. It can support more efcient power generation. It can complement renewable energy when renewable generation is intermittent or unavailable. And when used in place of fuel oil and diesel for power generation, as we see here at Clifton, it can provide lower emissions,” Mr Summers said.
“For New Providence, the terminal being developed here will enable LNG to be received, stored and converted back into natural gas for power generation.” Mr Summers stressed that improving The Bahamas’ electricity supply will require continued investment beyond the LNG terminal itself.
Looking beyond The Bahamas, Mr Summers said the project could also serve as a model for other island states seeking to modernise their energy sectors. “Many islands, nations and remote markets face similar challenges. They need energy solutions that are practical, scalable and suited to their individual circumstances,” he added.
“The model being demonstrated here shows how governments, local companies and global energy partners can work together to create scalable solutions tailored for local needs.”
“Lasting improvements in reliability will depend on continued investment and co-ordinated progress across the whole power system, including generation, transmission and distribution,” he said. “Let us remember that this project is an important building block within a much larger national efort.”
Fears fee paves way for other operators to follow
area,” the message read, identifying the $1,000 onetime fee.
This newspaper was told the fee has been in place for several months, and that Starlink shows no sign of dropping it. One consumer, in a letter published on Page 2B in Tribune Business today, acknowledged that Starlink has been a major boost in providing connectivity and competition to remote Family Island communities that cable providers struggle to reach.
However, they argued that the satellite provider’s “demand surcharge” or congestion charge potentially opens the door for the likes of Cable Bahamas and the Bahamas Telecommunications Company (BTC) to follow suit if regulators fail to pay attention.
“Starlink says the surcharge is necessary because the network is congested. Fair enough. But that immediately raises another question. How do we know
the network is congested?” they wrote.
“If Starlink decides when congestion exists, decides how much customers must pay because of it, and decides when the surcharge should end, there is very little independent oversight. That should concern consumers. More importantly, what precedent does this set?
“If one licensed telecommunications provider can impose a $1,000 congestion surcharge, what prevents other providers from introducing their own special fees? Could cable companies impose congestion charges in busy neighbourhoods?
Could providers charge extra because a customer’s home is more expensive to serve or because demand in a particular area is high?
Once these types of charges become accepted, where does it end?”
Tribune Business reported last week how Starlink had led eforts that persuaded Bahamian regulators to slash the original 5 percent turnover-based fee they planned to levy on the satellite
industry because it was too onerous.
URCA, unveiling the results of its public consultation on the proposed satellite communications regulatory regime it plans to implement for The Bahamas, revealed that it has cut this fee - to be applied to all turnover earned above $500,000 annually - to 3 percent following push back from Mr Musk’s Starlink and others.
URCA, which conceded that the consultation document included a drafting error creating confusion as to whether the planned turnover rate was 3 percent or 5 percent, nevertheless stuck to its goals and rejected the satellite industry’s arguments that the turnover-based fee be eliminated completely on the grounds that it would impose a “materially higher burden” than in other jurisdictions.
“Responses to the proposed hybrid fee structure, comprising a $40,000 fat base authorisation fee and a turnover-linked component of 5 percent of relevant turnover where annual revenues exceed $500,000
Improved public nances must lead to better services, salaries
REALITY
- from page B1
and services to the Government should be paid. All public servants - police, teachers and nurses - their increments, back pay and salary increases ought to be paid.”
Mr Thompson, referring to the planned recruitment of 300 Ghanaian teachers to cover shortfalls in the country’s education system, said that - while he backed the move given the importance of education for Bahamian children - it is also “a slap in the face” for local educators still waiting to be paid what they have been promised.
The east Grand Bahama MP contrasted the Government’s ability to fnd funding for the recruitment of expatriate teachers with a seeming inability to pay its domestic educators. “The public are interested in, if you are saying things are fscally better and have a $223m surplus, ensure all the vendors are paid, all the teachers are paid, all the
nurses are paid, all the police are paid,” he argued.
“The Bahamian public must feel it. What the Government is selling does not match what the Bahamian public is feeling. I don’t think I can put it any better than that.”
Mr Thompson conceded that the annual borrowing plan shows The Bahamas’ public fnances are improving, but reiterated his challenge over whether this is creating “meaningful improvements in the lives of the Bahamian people”.
“Fiscal discipline is not an end in itself. Its purpose must be to improve the lives of Bahamians,” he argued in a subsequent statement.
“As the country’s fnances improve, the Government should ensure that its priorities refect the needs of the Bahamian people.
“That means honouring its obligations to those who have already provided goods and services to the Government by paying outstanding amounts owed to small businesses and vendors. It means providing targeted cost of living relief to families who
continue to struggle with rising prices. And it means settling outstanding increments, back pay and other commitments owed to teachers and public servants.
“Today, our teachers and many other public servants continue to wait for outstanding increments and back pay, fair salary adjustments, better working conditions and the recognition they have earned through years of dedicated service. At the same time, the Government has announced plans to recruit approximately 300 teachers from overseas to help address shortages in our classrooms.”
While conceding that all Bahamian children need a qualifed teacher in their classrooms, Mr Thompson asserted: “We are not properly prioritising our public fnances. Shouldn’t our frst priority be retaining experienced Bahamian teachers, recruiting more Bahamian graduates into the profession and ensuring that teaching remains an attractive career for future generations?
were mixed,” the Bahamian communications regulator conceded.
“The majority of satellite operators and industry associations opposed the inclusion of a turnover-linked component. These respondents argued that satellite spectrum is internationally co-ordinated, shared and non-exclusive in nature, and that revenue-based fees are structurally inappropriate for spectrum that carries low scarcity value and minimal opportunity cost.
“Concerns were raised that turnover-linked fees would create barriers to market entry, discourage investment, penalise subscriber growth and ultimately increase costs for end users, particularly in underserved areas. Several respondents also noted the practical challenge of attributing relevant turnover to a single jurisdiction in the context of multi- jurisdictional satellite operations.”
URCA added that the satellite industry’s “preferred alternative.. was a simplifed fat fee calibrated to recover” the regulator’s “actual administrative and spectrum
“If the Government has the resources to strengthen its fscal position, it should also have a plan to strengthen the people who provide our essential public services. The same principle applies to our nurses, police ofcers and other essential public servants. Retaining experienced Bahamian professionals should always be the frst priority.
“Strong public fnances should strengthen our classrooms. They should strengthen our hospitals. They should strengthen our small businesses. They should strengthen the people who dedicate their lives to serving the Bahamian people,” he added.
“The true measure of fscal success is whether stronger public fnances produce stronger public services, stronger businesses and greater opportunities for the Bahamian people.”
Tribune Business reported previously how a “cash bufer framework” has been developed to ease the Government’s cash fow and liquidity pressures during the weaker frst half of its fscal year amid plans to refnance near-$3.4bn in total public debt during the 2026-2027 Budget period.
NOTICE
NOTICE
NOTICE is hereby given that I Martine Louissaint of ,East Street, New Providence, 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 7th day of July, 2026 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that STEVENSON AIMABLE of #30 Constitution Drive, New Providence, 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 7th day of July, 2026 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE is hereby given that I WILFRED BONENFANT of Robinson Road, New Providence, 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 14th day of July, 2026 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that I GABRIELLA SAINVIL of Hawkins Hill, New Providence, 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 twentyeight days from the 7th day of July, 2026 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
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 7th day of July, 2026 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
management costs”. Mr Musk’s Starlink was seemingly especially vocal about the cost burden this threatened to impose.
“A further concern raised within this group was that the proposed fee, when added to the existing annual URCA fee and the Communications Licence fee, would result in a cumulative revenue-linked regulatory burden materially higher than comparable international benchmarks for satellite markets of similar scale,” URCA said of the feedback it received.
“Starlink submitted a specifc calculation indicating that the combined regulatory fee obligation, incorporating the existing URCA fee of 1.448 percent of relevant turnover, the Communications Licence fee of 3 percent, and the proposed turnover-linked spectrum component of 5 percent, would produce a total revenue-linked charge of approximately 9.448 percent where an operator’s relevant turnover equals or exceeds $500,000 in a given licence year.
The Davis administration, in unveiling its annual borrowing plan for the new fscal year, disclosed that the Government has worked jointly with the Central Bank to develop a mechanism to relieve any pressures that may result from the traditionally-lower revenue infows during the six months to end-December plus investors’ aversion to 10 and 20-year bonds.
“Given the concentration of revenue receipts in the second half of the fscal year, along with investor concentration at the short end of the yield curve, the Central Bank and the Ministry of Finance have jointly developed a cash bufer framework to manage in-year gross fnancing needs,” the Plan reveals.
“This arrangement helps reduce liquidity risks associated with government securities auctions, provides greater scope to manage borrowing costs and, together with the active use of Treasury Bills, strengthens co-ordination between cash and debt management.”
No other details were provided on “the bufer”, especially what it involves and how it will work. However, fnancial sources consulted by Tribune Business suggested the likeliest
“Starlink characterised this as unusually high by international standards, and as directly undermining afordability and service expansion objectives, particularly in respect of Family Island connectivity,” the regulator added.
“As an alternative, Starlink proposed that URCA not adopt any additional spectrum usage fee in shared frequency bands, submitting that such an approach would align spectrum charges with the non-scarcity and shared nature of satellite spectrum, avoid duplication of existing regulatory cost recovery mechanisms, support afordable access and service expansion across all islands, and encourage continued investment in satellite broadband infrastructure.
“Starlink acknowledged that the hybrid framework represents a signifcant structural improvement over the previous per-terminal fee approach, but maintained that a turnover-linked spectrum fee remains economically distortive and inconsistent with the stated policy goals of the electronic communications framework.”
explanation is that the Government will rely heavily on Central Bank advances to plug any revenue gaps, and make up funding shortfalls, during the fscal year’s frsthalf and then pay these down during the tax and fee-rich six months to end-June.
Several sources, though, yesterday challenged how this will work when set against recently-enacted reforms to the Central Bank Act that tightened the conditions surrounding the regulator’s lending to the Government. These cut the lending limits “from 30 percent to 15.5 percent of the average revenue of the Government or the estimated ordinary revenue of the Government, whichever is less”, although Treasury bills and other securities are excluded from this calculation.
The Central Bank’s last two annual reports, for 2024 and 2025, as well as the International Monetary Fund’s (IMF) Article IV consultation, disclose that the Davis administration efectively ‘maxed out’ these short-term advances during the fscal year’s frst half. It increased these from $192.046m at the start of 2024 to $332.811m at year-end, representing a $140m or 72 percent jump.
NOTICE
NOTICE is hereby given that I BRIGGETTE SAINT-LOUIS of Bedrock, Bacardi Road, New Providence, 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 14th day of July, 2026 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that I RIDLEY JOEL ST. LUC of Bacardi Road, New Providence, 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 7th day of July, 2026 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
Massive AI buildout poses latest in ation threat as consumers pay more for laptops and electricity
By CHRISTOPHER RUGABER AP Economics Writer
AMERICAN consumers
— and the Federal Reserve — are being hit with another high-cost headache.
The gusher of investment in data centers — likely topping $700 billion this year — to power artifcial intelligence has made memory chips, computer processors and other equipment, as well as electricity, more expensive. Economists expect it will continue to push up infation at least through the end of this year.
While it won’t be as large a spike as occurred in 20212023, when infation peaked at 9.1%, massive AI spending is likely to keep prices rising more quickly than the Federal Reserve would like. Such increases could lead the central bank to lift its key interest rate later this year to cool spending and bring down infation. Higher rates from the Fed often boost borrowing costs for auto loans, mortgages, and business loans.
Fed ofcials will closely watch June’s infation report, to be released Tuesday, for further signs of AI’s
impact on prices. Infation last month likely cooled as gasoline prices have fallen after a ceasefre was reached between the U.S. and Iran, though whether that trend continues is now unclear as the U.S. and Iran have resumed fghting.
AI spending is lifting prices for consumer electronics
Just four large tech companies — Google parent Alphabet, Amazon, Meta Platforms, and Microsoft — are expected to invest $720 billion this year, mostly on data centers. Those data centers use a lot of semiconductors, and chip supplies have run low. As a result, economists at JPMorgan Chase estimate that the cost of some computer memory chips will have soared by as much as 400% between 2024 and the end of this year. Americans are already seeing higher prices for a range of consumer electronics, including laptops, smartphones, video game consoles, and computers. Electricity prices are also jumping as data centers
absorb a growing share of new electrical capacity.
In a high-profle announcement last month, Apple announced it was boosting prices for laptops and iPads by about 15% to 25%. A topline MacBook will now cost $1,999, up from $1,699.
Many analysts expect price hikes will come for iPhones next.
“The rapid expansion of AI data centers has created an extraordinary surge in demand for memory and storage,” Apple said in a statement. “We have never seen a component price increase this much, this quickly.”
On the same day, Microsoft announced that the price of its Xbox video game console will increase $100 by Aug. 1, citing higher prices for memory chips. Sony is also charging more for the PlayStation, while Dell Computer and HP have raised prices for their laptops.
A “wave of AI-related cost pressures spilling over into consumer prices is still in the early stages of building,” analysts at investment
Judge says Trump IRS lawsuit was led for ‘improper purpose,’ refers lawyer for possible discipline
By ERIC TUCKER and ALANNA
DURKIN RICHER Associated Press
PRESIDENT Donald Trump’s lawsuit against the Internal Revenue Service over his leaked tax returns was fled for an “improper purpose,” a judge said
Monday as she referred one of his lawyers for potential disciplinary action and characterized the $10 billion complaint as an exercise in self-dealing.
U.S. District Judge Kathleen Williams accused Trump and his lawyers in a scathing ruling of having
manipulated the court system when he sued a federal agency under his control, bypassing a requirement that parties in a lawsuit must have adverse interests. The lawsuit ended in a settlement that granted the president immunity from tax audits and
bank Evercore ISI recently wrote.
It’s the latest in a series of waves that have boosted infation
The impact on broader measures of infation may be relatively modest, with many economists forecasting that AI investment will boost core consumer prices, which exclude food and energy, by roughly a half-percentage point by the end of this year.
Still, that could be enough to ofset declining prices elsewhere, as the impact of President Donald Trump’s tarifs continues to fade and as rental costs cool. Core infation, according to the Fed’s preferred measure, was 3.4% in May and some economists now expect it may decline only slightly by the end of the year, remaining well above the Fed’s 2% target.
The boost from AI may prove temporary, but it follows previous waves of higher prices stemming from tarifs and the gas price spike resulting from the Iran war. The Fed typically “looks through,” or ignores, temporary price increases, rather than boosting rates
established a $1.776 billion fund to compensate Trump allies who believe they have been unjustly persecuted.
The judge stopped short of explicitly voiding the deal shielding Trump from tax scrutiny but said the government cannot claim in ofcial proceedings that the agreement was the result of a legitimate legal process.
“Whether Executive Branch actors can privately agree to give themselves and their former clients blanket immunities and billions of dollars in tax monies for legally undefned grievances
to fght them, but an ongoing series of temporary price shocks could threaten to create more sustained infation, which has already been above the Fed’s target for more than fve years.
“In isolation one or two such shocks is perhaps transitory, something they’re willing to live with,” said Abiel Reinhart, an economist at J.P. Morgan. “A sustained series of shocks, or a wider range of shocks, becomes more concerning to them.”
Federal Reserve ofcials have increasingly focused on AI Fed policymakers are increasingly focused on AI’s infationary impact. Kevin Warsh, who took over as chair May 22, has said he believes that over time AI will make the U.S. economy more efcient, which should reduce infation even as growth accelerates.
He acknowledged in remarks July 1, however, that AI investment is now boosting demand, but declined to speculate on how infationary the impact would be.
was never an issue advanced to this Court,” said Williams, an appointee of President Barack Obama. “The question is whether the Parties could do so by claiming to be adverse and engaging the legitimacy of a court proceeding. The answer is a resounding ‘no.’”
The ruling comes just ahead of a key confrmation hearing
Though the practical impacts of the ruling may be limited since the lawsuit was voluntarily dismissed months ago and the administration has already abandoned the $1.776 billion “Anti-Weaponization Fund” that came out of it, the order nonetheless amounts to a scathing rebuke and tees up a politically uncomfortable line of questioning for Acting Attorney General Todd Blanche as he faces the Senate Judiciary Committee for his confrmation hearing on Wednesday.
“The nature of the suit itself and the conduct of the Parties and counsel from its fling make plain that this was an attempt to use the Court to provide some legitimacy to an agreement to confer immunity to people and entities afliated with the President and to earmark billions of dollars from American taxpayers to redress grievances not defned in the law,” Williams wrote in her ruling. She added: “Ensuring that our courts are used only for the express purpose created by the Constitution is the obligation of every judge and an obligation that this Court must discharge in light of the matter before it.”
The $10 billion suit against the IRS and Treasury Department in January accused the agencies of a failure to prevent a leak of the president’s tax information to news outlets between 2018 and 2020.
In May, however, the administration announced that it was settling the case and creating a fund to compensate people who believe
Yet many Fed ofcials worry that demand for AI-related gear will continue to outstrip available supply, a recipe for persistent price increases.
“If this creates a sustained impulse to demand relative to supply in infation, I do think that’s the kind of situation where you don’t look through this,” John Williams, president of the Federal Reserve Bank of New York, said Thursday. Williams is also vice chair of the Fed’s rate-setting committee. Williams has supported keeping rates unchanged, but his comment suggests that under some scenarios he could support a hike. According to the minutes of the Fed’s June 16-17 policy meeting, released Wednesday, many other ofcials share Williams’ concerns. Another channel through which AI could raise infation is through its huge demand for electricity, which has caused many utilities to raise prices. Power companies throughout the U.S. are adding more capacity, an expensive step that can also boost electricity costs.
they’ve been mistreated by the criminal justice system. The fund was quickly shelved amid bipartisan backlash, though the Trump administration has said it intends to proceed with a separate element of the deal afording Trump and family members protection from tax audits.
From the start, the judge had appeared skeptical of the complaint and assigned a group of attorneys to determine whether there was a confict in the case since, as sitting president, Trump was suing “entities whose decisions are subject to his direction.” Even after the settlement was revealed, she directed Trump attorneys to lay out their positions on whether the parties in the case were truly adverse to each other, whether the dismissal of the lawsuit was premised on deception and whether the case should be reopened. She made clear in her ruling that she was not satisfed by the lawyers’ answers.
“After a review of the record, and the Parties’ statements, the Court declines to adopt or accept the credulous exercise of divorcing President Trump’s current job title from an understanding of what happened here,” she wrote.
LTD.
Incorporated under the International Business Companies Act, 2000 of the Commonwealth of The Bahamas. Registration number 205253 B (In Voluntary Liquidation)
Notice is hereby given that the above-named Company is in dissolution, commencing on the 13th day of July A.D. 2026.
Articles of Dissolution have been duly registered by the Registrar. The Liquidator is MRS. VALERIA MARTIN DE SANCTIS MAIA whose address is Rua Dias Leme, 123 APT 234, CEP: 03118-040, Sao Paulo, SP, Brazil. Any Persons having a Claim against the above-named Company are required on or before the 12th day of August, 2026 to send their names, addresses and particulars of their debts or claims to the Liquidator of the Company, or in default thereof they may be excluded from the benefit of any distribution made before such claim is proved.
Dated this 13th day of July A.D. 2026.
VALERIA MARTIN DE SANCTIS MAIA LIQUIDATOR
PRESIDENT Donald Trump speaks on West Executive Drive at the White House during a showcase for the upcoming Freedom 250 Grand Prix auto race, Monday, July 13, 2026, in Washington. Photo:Alex Brandon/AP
