07162019 BUSINESS

business@tribunemedia.net

TUESDAY, JULY 16, 2019

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Post Office exposure ‘$17m and something’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

HE government’s first Post Office partner yesterday warned that taxpayers may be exposed to a “$17m something claim” after a proposed settlement failed to proceed at the last minute.

Scott Godet, who agreed a public-private partnership (PPP) with the former Christie administration to construct a new main Post Office at the Independence Drive Shopping Plaza, told Tribune Business that the Minnis administration withdrew its offer to purchase the property just three days before the deal was supposed to be finalised.

Revealing that he was told during a meeting at the Attorney General’s Office that the government “didn’t have the money to go through with it”, Mr Godet said he had been left with no choice but to initiate legal action before the Supreme Court using the PPP agreement’s “breach of contract” clause.

He added that this required the government to pay him “the full value of the PPP” if it reneged on their agreement, which he

• First location owner’s liability warning • Says govt pulled out of settlement late • ‘Rolling with punches’ and headed to court

SCOTT GODET yesterday estimated at “$17 something million”, reinforcing arguments that the Post Office saga will cost the government more than the annual $700,000 rent being paid to the Town Centre Mall owners (Brent Symonette and his brother) over the next five years.

“That didn’t happen,” Mr Godet said of the proposed settlement, which would have seen the government acquire the Independence Shopping Centre site from

him. “They changed. They said they didn’t have the money.

“On June 28 they called a meeting at the Attorney General’s Office and said they weren’t able to go through with it. I’d been waiting until July 1 when they said they’d be able to settle the matter.”

Mr Godet said he was unable to recall the purchase price proposed by the government, adding that it was based on a formula

involving his loss of revenue and the price that the property would have been sold at under the PPP contract.

The businessman, who is already a landlord to the government through his leasing of the Public Treasury building over which it has an option to buy, disclosed that he and his attorneys were still calculating the extent of potential losses and damages as they prepare to file the claim with the Supreme Court.

“We’ve lost quite a bit,” Mr Godet told Tribune Business, “not to mention the building has been demolished to the point that new construction has to be put in. For us, we’re going to have to reverse that, the new construction, if we rebuild.”

He revealed last October that the government’s decision not to proceed with the Independence Shopping Centre location had left him with a near-$4m financial exposure through some

SEE PAGE 4

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BOB: $10m claims were ‘abandoned’ by default pursuers

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BANK of The Bahamas has accused companies jointly owned by an ex-Cabinet minister’s family trust of “already abandoning” claims worth $10m in their bid to enforce a default judgment.

Callenders & Co, the BISX-listed institution’s attorneys, are arguing that the “vastly inflated” damages claimed by entities controlled by the family trusts of Damian Gomez, former minister of state for legal affairs, and David Jennette are but one reason to stay their enforcement bid.

Besides “substantial irregularities” associated with the $6m damages calculation by acting deputy registrar, Stephana Saunders, it was alleged on Bank of The Bahamas’ behalf that there were “extensive” and “good” defences to all the claims against it.

Noting that the six companies and persons involved all had liabilities owing to Bahamas Resolve, the vehicle created to facilitate the two Bank of The Bahamas bail-outs, the bank and its attorneys warned it would be “very difficult” to recover any monies paid out if the judgment was enforced as

they would likely be used “to satisfy other creditors.”

However, Mr Jennette argued in a May 27, 2019, affidavit that Bank of The Bahamas’ bid to set aside the default judgment and stay the acting deputy registrar’s damages award was “vexatious, frivolous and an abuse of process”.

Alleging that Bank of The Bahamas’ failure to comply with the March 9, 2019, damages award was the latest phase of failing to follow court orders and instructions, Mr Jennette urged the Supreme Court to impose a Mareva Injunction to freeze the BISX-listed institution’s assets so that they could be used to settle the judgment.

He added that former Philip Galanis, the accountant and former PLP MP; Sir Baltron Bethel, senior policy advisor to former Prime Minister Perry Christie; ex-minister of state for finance, Michael Halkitis; and former Family Guardian president, Patricia Hermanns, had all agreed to act as receivers for Bank of The Bahamas if necessary to help enforce the judgment.

However, Callenders & Co is alleging on Bank of The Bahamas’ behalf that

SEE PAGE 5

Abaco’s main port in ‘closure’ crisis

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net ABACO’S main shipping port faces a “make or break” inspection tomorrow that could result in its closure and derail the island’s economy by halting virtually all cargo trade with the US. Tribune Business can reveal that this blunt warning was delivered by US Coast Guard officials after the government-owned and managed Marsh Harbour port failed its International Ship and Port Security (ISPS) “mock” inspection on June 18, 2019.

Captain Troy Mills, the Abaco port administrator, in a “call to action” wrote that Marsh Harbour will be “closed down unless there are some major improvements” made in time for Wednesday’s follow-up

• US demands ‘major improvements’ in security • ‘Make or break’ inspection set for tomorrow • Failure would ‘discontinue’ cargo shipping inspection by US and ISPS code overseers.

His letter, which has been obtained by Tribune Business, said: “On June 18, 2019, the ISPS coordinators for the Caribbean along with Lieutenant Commander Justin Matejka of the US coast guard performed a mock inspection of the port facility that resulted in the discovery of a breach in compliance” of both the ISPS code and International Maritime Organisation (IMO) policies.

“As a result of the findings of June 18, 2019, ISPS and US coast guard officers have warned that unless there are some major

improvements before the next inspection that is to take place on July 17, 2019, the port of Marsh Harbour will be closed down and ships transporting cargo between Florida and Marsh Harbour would have to discontinue their services,” Captain Mills warned.

Such an outcome would likely send Abaco’s economy into a tailspin if it were to occur, given that the island - much like the rest of The Bahamas imports most of what it consumes. With its main port of entry closed, cargo freight would likely have to be sent first to Nassau before being transferred to smaller vessels such as mail

boats for onward shipping to Abaco.

This would result in tremendous cost and shipping time increases, with the extra expense passed on to both Abaco businesses and consumers in the absence of direct deliveries, thus undermining one of the most buoyant island economies in The Bahamas.

There is also currently no immediate alternative to Marsh Harbour as a main port of entry with the status of the $40m north Abaco port constructed by China Harbour and Engineering Company (CHEC) uncertain.

SEE PAGE 5

Sarkis urges dismissal of ‘moot’ CCA oppression

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net SARKIS Izmirlian, pictured, yesterday urged that the “shareholder oppression” claim against him by Baha Mar’s main contractor be dismissed because it is “moot” and can only be heard in The Bahamas.

The latest legal filings by Baha Mar’s original developer argued that there were multiple grounds for the New York State Supreme Court to reject this aspect of China Construction America’s (CCA) counterclaim as well as its bid for “punitive damages”.

Alleging that the latter was “impermissible and should be stricken”, Mr Izmirlian and his BML Properties vehicle said CCA and its affiliates were unable to claim “shareholder oppression” because

• Argues claim can only be heard in Bahamas • Impossible to bring as Baha Mar ‘dissolved’ • Original Baha Mar developer in new legal move BAHA MAR RESORT

its investment in the Baha Mar project - some $150m of preference shares - had no voting rights.

While Bahamian law prevented the New York court from hearing such arguments, they also claimed

that CCA’s case was “moot” and had been rendered

SEE PAGE 3

THE TRIBUNE

BAHAMAS SEEKING TOURISM BOOST VIA CANADA AIR DEAL

THE Bahamas is hoping its just-signed air transport agreement with Canada will boost tourist arrivals from that nation by encouraging increased airlift from its major cities.

Dionisio D’Aguilar, minister of tourism and aviation, said the agreement will also allow Bahamian airlines and aviation companies to take advantage of economic opportunities in Canada.

“This agreement solidifies our relationship with Canada as it relates to aviation. And so this agreement sets out the steps by which aviation companies can do business in The Bahamas, and the steps where Bahamian companies can do business in Canada,” Mr

D’Aguilar explained.

Canada is the second largest tourism source market for The Bahamas, generating just over 500,000 visitors each year. Laurie Peters, the Canadian high commissioner, said the aviation agreement further cements the ties between the two countries.

“It is an emblem of the long-standing relationship between the Commonwealth Of The Bahamas and Canada, and also marks a new era of engagement. We have long been people-to-people friends. Many Canadians have flocked to your shores, and I think that this agreement will further strengthen our ties and create more

opportunities,” she said.

“We know that the traditional carriers have low-cost little cousins to expand in the region, and there seems to be no end in sight to the Canadian cold winter.

Hopefully there will be lots of demand that this agreement would allow us to respond with.”

Currently, Air Canada and West Jet are the major airlines that fly into The Bahamas from destinations such as Toronto, Montreal and Cadbury.

Mr D’Aguilar voiced optimism that more Canadian aviation companies will begin flying to The Bahamas from other cities.

“As companies grow and expand, the regulatory

MARITIME AUTHORITY IN BRUSSELS VISIT THE Bahamas Maritime Authority (BMA) Board has visited Brussels to deliver a letter from the Prime Minister to the secretary-general of the African, Caribbean and Pacific group of states (ACP). Pictured from L to R: Captain Dwain Hutchinson, BMA managing director and chief executive; Ambassador Denise Lewis-Johnson,

BMA chair; Dr Patrick Gomes, ACP secretarygeneral; Kerry Bonamy, head of chancery, Bahamas Embassy to Belgium/ permanent mission to EU; Viwanou Gnassounou, ACP assistant secretary-general, sustainable economic development and trade; Peter Goulandris, BMA board deputy chair.

THE BOKA Vanguard acting as floating dry dock for the Carnival Vista cruise ship.

Shipyard receives cruise vessel via floating dock THE BOKA Vanguard, a semi-submersible heavy lift ship that can function as a floating dry dock, delivered the Carnival Vista cruise

ship to the Grand Bahama Shipyard for repairs on Saturday. The cruise ship delivery by floating dry dock was a first of its kind.

Sarkis urges dismissal of ‘moot’ CCA oppression FROM PAGE ONE irrelevant because the entity in which it had held preference shares - Baha Mar Ltd - no longer exists following its winding-up and dissolution in January 2019.

Mr Izmirlian’s argument was backed by an affidavit sworn by Oscar Johnson, managing partner and head of litigation at Higgs & Johnson, who alleged that CCA’s “shareholder oppression” claim was flawed from the outset because it was based on Bahamian law.

He argued that a claim grounded in the Companies Act’s section 280 can only “be validly made” before the Bahamian Supreme Court and no other - not even the New York State Supreme Court or any other in the US federal or state system. Otherwise this “would constitute an abuse of process under Bahamian law”.

“I believe that such application can only validly be made to the Supreme Court of The Bahamas,” Mr Johnson said. “I do not believe the section 280 protections to be intended for inclusion (as a cause of action) in proceedings relating to a now-dissolved company.”

He added that the Companies Act’s “shareholder oppression” remedy dealt with ongoing or present conduct, rather than what

happened in the past, creating a “fatal flaw” in CCA’s case.

“For an application to ‘bite’ present oppression is needed as the target,” Mr Johnson added, otherwise the Supreme Court can grant no relief. He further pointed out that Baha Mar Ltd’s dissolution on January 28, 2019, meant the company had “ceased to exist” before CCA brought its counterclaim and that the Chinese state-owned contractor was no longer a shareholder.

Tribune Business questioned at the time the counterclaim was made how CCA and its affiliates can bring a “shareholder oppression” action based on Bahamian law - namely section 280 of the Companies Act - before a New York court.

This newspaper also pointed out that CCA is likely to have been more than adequately compensated for the “wipe out” of its $150m Baha Mar investment in any event. Besides being reimbursed for the sums said to be owed to it

by Baha Mar at the time of the Chapter 11 filing, it was also the recipient of a $600$700m contract to complete the mega resort once Mr Izmirlian had been removed from the project.

Mr Izmirlian’s challenge

SEE PAGE 5

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framework is in place,” he added. “It is the fastestgrowing segment coming to The Bahamas. So whatever we can do to keep that ball rolling and keep the commerce between our two countries…it’s important that we take steps such as this, and we are grateful to the people and the government of Canada for agreeing to do this and we are happy that it is finally done.”

This is the latest in a series of air service agreements The Bahamas has signed.

Late last year it signed aviation agreements with The Netherlands, Turkey, Saudi Arabia and a number of African and European countries.

Tuesday, July 16, 2019, PAGE 3

HIGH Commissioner to Canada Laurie Peters, right, and Minister of Tourism and Aviation Dionisio D’Aguilar signed a bilateral Air Transport Agreement between The Bahamas and Canada.

Photo: Kemuel Stubbs/BIS

PAGE 4, Tuesday, July 16, 2019

THE TRIBUNE

Post Office exposure ‘$17m and something’ FROM PAGE ONE

$3m already spent on construction activities plus the loss of $800,000 in rental income from previous tenants who had been given notice to move.

The site was once home to a City Markets food store plus other retail tenants, and Mr Godet will effectively have to redevelop or reconstruct the property twice to make it useable once again as a result of the government’s decision not to go through with the PPP. Expenses related to mortgages and real property taxes continue to be incurred.

“We’re basically going to resort to the legal remedies and take it to court,” he said yesterday. “Our agreement had a breach of contract clause in it that’s very clear and that’s the direction we’re going in now. I can only trust that the courts will be fair.

“At this point I think that’s the only way it can go; to court. I can’t wait for them to mess me around any more. We’re just going to court and let the court settle it. It’s a setback, but I’m just rolling with the punches. It’s a business transaction that went bad, and we’ll find a remedy through the courts if they don’t come to us with a sensible solution.”

Mr Godet agreed that finding a new home for the Post Office was threatening to become “a very expensive” exercise for the Bahamian taxpayer, reiterating that the “breach of

AN ENTRY point at the Town Centre Mall where the Post Office is now located. contract clause” in the PPP required the government to pay him “the full value of $17m something”.

Tribune Business reported last year that Mr Godet and his team ran into several unexpected obstacles. The Post Office PPP was initially placed on hold during the final months of the former Christie administration after residents in the adjacent Garden Hills community complained that

the increased traffic flow generated by the facility’s presence would disrupt the area’s quality of life.

Mr Godet, though, suggested the complaints may have had more to do with construction work cutting off a short-cut that residents were taking through the Independence Drive Shopping Plaza to reach Blue Hill Road.

Then came the FNM’s general election victory, and the new government’s

decision to place all PPPs entered into by its predecessor on hold pending a review. Mr Godet’s was the only one which, at that stage, had already incurred significant expenditure and seen work performed.

Meanwhile, Tribune Business sources yesterday revealed that the Government had never specified the price it would purchase the former Phil’s Food Services building on Gladstone Road for when it examined

it as a potential Post Office location.

The property, which was developed by contractor Edward Penn, was leased by the food retail business until its 2015 closure. It is now controlled by Bahamas Resolve, the special purpose vehicle (SPV) created to facilitate the Bank of The Bahamas bail-out, as it is security for delinquent loans transferred out of the BISX-listed institution.

However, the same contacts backed the Minnis administration’s decision to ultimately relocate the Post Office to the Town Centre Mall despite the “conflict of interest” allegations on the basis that it was a less costly solution than upgrading the Phil’s Food Services site.

“The condition inside that building was worse than the government anticipated; it didn’t make sense,” one well-placed contact, speaking on condition of anonymity, said.

“The cost would have been a real burden on the government’s purse.

“When they got inside and made an assessment of what it would take to rehabilitate the building and put it in condition compared to the Town Centre Mall, the latter was a better deal in terms of cost outlay.

The landlord at Town Centre Mall was also offering a turnkey solution.”

They added that the likely increase in the $3.5m-$4m improvements budget, together with the purchase price, represented “the Achilles heel” for the government when it came to the Gladstone Road site as a potential Post Office location.

Tribune Business understands that near $2m worth of improvements were supposed to have been made to the Phil’s Food Services building between 2015 and 2016, with the bulk of the money spent on upgrading what was considered to be a “sub-standard floor” that was then “in pretty bad condition”.

THE TRIBUNE

Tuesday, July 16, 2019, PAGE 5

Abaco’s main port in ‘closure’ crisis FROM PAGE ONE The ISPS is a worldwide protocol that was implemented in the wake of the September 11 terror attacks. Designed to prevent a repeat of such atrocities, it mandated that every country upgrade security infrastructure and procedures around its major shipping ports and the vessels that use them.

Non-compliance with the code raises an immediate “red flag” that threatens loss of both commercial shipping traffic as well as other forms of business, such as cruise ships, for ports that fall into this category.

One shipping industry veteran, speaking on condition of anonymity, confirmed that the loss of ISPS status would be a blow resulting in increased shipping costs, delays and supply chain inefficiency.

“I’d heard that Marsh Harbour had failed its ISPS inspection. That creates a whole lot of problems for foreign carriers departing your port back to the US. There is an increase in security protocols if you have left a port that is not ISPS certified,” they said.

“The US coastguard

Sarkis urges dismissal of ‘moot’ CCA oppression FROM PAGE THREE to the “shareholder oppression” counterclaim is merely the latest in a series of preliminary legal skirmishes as the two sides gear up for the substantive hearing of the original Baha Mar developer’s case against his former contractor partner.

Even if Mr Izmirlian’s latest legal initiative proves successful CCA still has two other elements to its counterclaim that have yet to be challenged, and both parties appear equipped for a long, costly fight that will take years and plenty money to resolve.

Taking their cue from Mr Johnson’s legal testimony, Mr Izmirlian and BML Properties argued that CCA’s affiliate “purports to predicate its counterclaim on Bahamian law” but this did not apply to the two sides’ investors agreement which the New York court has already found governed the relationship between the two parties.

And, with all Baha Mar’s assets sold to the China Export-Import Bank’s Perfect Luck vehicle prior to the purchase by Chow Tai Fook Enterprises (CTFE), the original developer added: “Baha Mar Ltd is no more, and for this and other reasons set forth herein no ‘oppression’ claim in connection with that entity lies against plaintiff.”

Mr Izmirlian argued that CCA’s “punitive damages” claim should also be dismissed on the basis that these are not recoverable in breach of contract cases, which is exactly what the Chinese state-owned contractor’s remaining counterclaims are based on.

and US ports will be on notice, and the US port will increase its protocols around that arriving vessel.

It creates a lot of expense.

It introduces inefficiency to the supply chain, impacts exports and imports in terms of the speed at which cargo is moving, and doesn’t help the local economy. If a port fails its inspection, it’s going to impact trade.”

The shipping industry executive added that US coast guard officials often worked alongside the government’s Port Department, which is The Bahamas’ ISPS coordinator, to ensure that local ports of entry were in compliance with the worldwide standard.

“ISPS certification is certainly something not to be taken lightly,” they said.

“It happens when people get lazy, and when funding is not available to support an ISPS focus, such as the fixing of fences, lighting and manpower.”

Abaconians yesterday expressed mixed views on whether Marsh Harbour is ready to pass Wednesday’s inspection following an intensive effort by the private sector and local government officials, together with Captain Mills and his staff, to address the

weaknesses identified one month ago Ken Hutton, the Abaco Chamber of Commerce’s president, told Tribune Business that there was “no chance of losing ISPS certification” based on the work stakeholders had put in.

While acknowledging the “detrimental” impact to the Abaco economy and the cost of living if the Marsh Harbour port was to again fail, Mr Hutton said the deficiencies included “nothing fatal” and had been greater in number than severity.

“Loss of ISPS certification would definitely cause problems here,” he added.

“We are, and remain, very concerned. It would definitely have a detrimental effect on economic activity here, and certainly have an effect on the cost of living.

Then, striking a more positive tone, Mr Hutton added: “In terms of the inspection on the 17th, there was a punch list of items to fix, and it’s looking pretty good. Pretty well all the issues have been addressed, and I don’t think there will be any problem with the final inspection.

“There were a number of items that had to be fixed and nothing fatal. It was the sheer scale of items to

be addressed, and they’ve done a tremendous job dealing with them. I don’t think there’s any chance of a loss of ISPS certification.

“I’ve been in the shipping business before, and there is nothing onerous outstanding that would cause them to lose it... I think the port is going to be fine.”

However, Mr Hutton’s optimism was not shared to the same extent by Roscoe Thompson, chairman of the Marsh Harbour/Spring City town council, who suggested the outcome of Wednesday’s inspection is a much closer call.

He told Tribune Business that the upgrades made by the private sector and local government had given the port a fighting “chance” of at least winning an “extension” and remaining open, as he blamed the threat to Marsh Harbour’s ISPS status on inaction by successive PLP and FNM administrations even though they knew of the looming problem.

Mr Thompson argued that an inspection conducted two years ago around the time of the general election had flagged up numerous failings related to security, lighting and fire alarms, yet repairs had again been left until

the last minute.

He said many Abaconians were “annoyed” that local government and the private sector had been forced to “bail-out” the central government by financing, and overseeing, critical repairs to the Marsh Harbour port.

Mr Thompson said the Marsh Harbour/Spring City council had arranged for locksmiths, lighting and CCTV specialists to examine why these systems were not working in the month since the June 18 inspection, while the Abaco-based Port Department had sought and obtained quotes for the repair work.

“All the major shipping companies, organisations and brokers had to come together to spend money out of their own pocket to clean the port up and make it presentable for inspection on Wednesday,” he told Tribune Business.

“Everybody that had something to with the port, bringing freight.. Fast Ferries committed to fixing part of the fence. If it was not for the business owners, shipping companies and local government that port would probably be shut down on Wednesday. Now at least we have a change to get an extension.

“I don’t understand how you let a port in any island get to the state where it does not meet an inspection in three years. I still don’t think all the criteria have been met. The CCTV system is down, the alarm is inoperable. None of the inefficiencies have been fixed. They wait until the last week.”

Mr Thompson said Renward Wells, minister of transport and local government, who has portfolio responsibility for the Marsh Harbour port had “dropped the ball on this”. He said the same applied to Abaco’s two MPs, Darren Henfield, minister of foreign affairs, and James Albury, parliamentary secretary in the Prime Minister’s Office, who he had informed of the looming crisis when they took office two years ago.

Mr Thompson said neither Mr Wells nor Mr Henfield had replied to his recent messages, although a response was obtained from Mr Albury. The latter told Tribune Business he was unable “to speak on the phone at this moment” and would have to call back. No reply was received before press time.

BOB: $10m claims were ‘abandoned’ by default pursuers FROM PAGE ONE many of the claims made are “unmeritorious and are unlikely to be successful at trial”, adding that Messrs Gomez and Jennette’s family trusts and companies “appear to have accepted” this several times.

“Whereas the plaintiffs included claims for $14.086m in the statement of claim, at the assessment of damages hearing counsel for the plaintiffs stated that ‘there were numbers there that we could not claim as right’ and that ‘there was a legitimate claim for some $4m plus’,” the bank’s legal arguments alleged.

“By the bank’s calculation the total sum of the claims pursued at the assessment of damages hearing was in fact $3.741m. The plaintiffs have therefore already abandoned claims with a value of over $10m. It is of concern that the plaintiffs were willing to claim from the bank an amount which they must accept were vastly inflated.”

Arguing that “there is a real prospect” that Bank of The Bahamas will not be held liable for many of the sums claimed, even if the default judgment was enforced, the bank’s legal filings attacked the deputy registrar’s $6m damages calculation and alleged it would likely “be substantially reduced”.

Callenders & Co said that $6m had been awarded even though just $3.741m in damages was pursued, alleging that $3.339m was granted to one company even though the claim had been dropped.

DAMIAN GOMEZ

“The bank does know that the plaintiffs have liabilities to Bahamas Resolve,” the legal filings added. “In the circumstances, there is good reason to believe that any monies paid to the plaintiffs by the bank will be used to satisfy other creditors or paid to third parties by the plaintiffs. This will make it very difficult for the bank to recover money from the plaintiffs in the event that the default judgment is set aside.”

The $6m default judgment obtained by Mr Gomez and Mr Jennette on behalf of their family interests, and efforts to enforce it, plunged Bank of The Bahamas back into multimillion dollar losses and halted its financial recovery efforts.

The BISX-listed bank, which had been inching towards consistent profitability following five successive years of heavy losses prior to 2018, unveiled a $4.039m net loss for the three months to end-March 2019.

The “red ink”, which wiped out first-half profits worth more than $3.5m,

drove Bank of The Bahamas into a $209,604 loss for the first nine months of a financial year that ends on June 30 - resulting in what management described as a 119.52 percent “decrease” in net income compared to the $1.074m earnings for the same period in 2018.

Kenrick Braithwaite, Bank of The Bahamas’ managing director, blamed the hike in operating expenses - and the institution’s return to making heavy losses - on provisions taken after the third quarter’s end for potential losses relating to the $6m default judgment.

“Subsequent to March 31, 2019, the bank was made aware of a judgment in default against the bank for approximately $6m plus interest and cost,” Mr Braithwaite wrote. “The bank has filed the applications to set aside the default judgment and the said damages, and also to stay or, in certain circumstances, strike out enforcement proceedings.

Adequate provision has been made in the financial statements for any loss that might ultimately be determined.”

PAGE 6, Tuesday, July 16, 2019

THE TRIBUNE

Treasury chief: Facebook currency plan ripe for illicit use WASHINGTON Associated Press THE Trump administration came out strongly yesterday against Facebook’s ambitious plan to create a new digital currency, as the Treasury chief warned it could be used for illicit activity such as money laundering, human trafficking and financing terrorism.

Treasury Secretary Steven Mnuchin expressed “very serious concerns” about the currency proposed by the social network giant, to be called Libra. “This is indeed a national security issue,” Mnuchin told reporters at the White House.

His comments came a few days after President Donald Trump tweeted that Libra “will have little standing or dependability”.

Trump, fresh off a “social media summit” he led at the White House that gathered conservative critics of Big Tech, tweeted last week: “I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behaviour, including drug trade and other illegal activity.”

If they want to get into the financial business, Facebook and its dozens of partner companies in the venture will have to accept the kind of tight regulation that banks are under, the president said.

The Treasury chief’s comments went further, though, tying Libra directly to concerns over potential use for money laundering, drug and human trafficking, tax evasion and other crimes.

The Treasury Department has “very serious concerns that Libra could be misused by money launderers and terrorist financers,” he said.

Facebook has “a lot of work to do before we get to the point where we’re

EU WORKS TO SAVE UNRAVELING NUCLEAR AGREEMENT WITH IRAN BRUSSELS Associated Press

TREASURY Secretary Steve Mnuchin speaks during a news briefing at the White House, in Washington yesterday.

Photo: Carolyn Kaster/AP comfortable with it,” Mnuchin said.

Today, Congress begins two days of hearings on Facebook’s Libra plan. The head of the Federal Reserve also raised an alarm about the plan last week.

Facebook’s plan “raises a lot of serious concerns, and those would include around privacy, money laundering, consumer protection, financial stability,” Fed Chairman Jerome Powell said in congressional testimony. “Those are going to need to be thoroughly and publicly assessed and evaluated before this proceeds.”

Unlike Mnuchin, Powell — as head of the central bank — is an independent regulator who is separate from the administration and political influence.

Already under intense scrutiny from regulators and Congress over privacy and market dominance, Facebook stirred anger on

Capitol Hill last month with the unveiling of its plan to create a new financial ecosystem based on a digital currency. Senate and House hearings went on the calendar, and the Democratic head of the House Financial Services Committee called on Facebook to suspend the plan until Congress and regulators can review it.

Rep Maxine Waters, D-Calif, said that Facebook, with some two billion users around the world, “is continuing its unchecked expansion and extending its reach into the lives of its users”. She called Libra “a new Swiss-based financial system” that potentially is too big to fail and could require a taxpayer bailout.

David Marcus, the Facebook executive leading the project, says in his testimony prepared for today’s hearing by the Financial Services panel that Libra “is about developing a safe,

secure and low-cost way for people to move money efficiently around the world.

We believe that Libra can make real progress toward building a more inclusive financial infrastructure”.

Facebook agrees with Powell’s view that the government’s review of Libra must be “patient and thorough, rather than a sprint to implementation,” Marcus’ statement says. “The time between now and launch is designed to be an open process and subject to regulatory oversight and review.

In fact, I expect that this will be the broadest, most extensive and most careful pre-launch oversight by regulators and central banks in FinTech’s history. We know we need to take the time to get this right.”

The planned digital currency is billed as a “stablecoin” backed by deposits in sovereign currencies such as the dollar, euro and

Japanese yen — unlike bitcoin, ether or other digital currencies. Promising low fees, it could open online commerce to millions of people around the world who lack access to bank accounts and make it cheaper to send money across borders. But it also raises concerns over the privacy of users’ data and the potential for criminals to use it for money laundering and fraud.

To address privacy concerns, Facebook created a nonprofit oversight association, with dozens of partners including PayPal, Uber, Spotify, Visa and MasterCard to govern Libra. As one among many in the association, Facebook says it won’t have any special rights or privileges. It also created a “digital wallet” subsidiary, Calibra, to work on the technology, separately from its main social media business. While Facebook owns and controls Calibra, it won’t see financial data from Calibra, the company says.

EUROPEAN Union nations threw their diplomatic weight behind the unraveling Iran nuclear deal yesterday, trying to rescue the pact from collapsing under US pressure.

The 28 EU foreign ministers insisted that recent Iranian actions surpassing uranium enrichment thresholds set by the 2015 deal did not necessarily condemn the whole agreement.

“We note that technically all the steps that have been taken — and that we regret have been taken — are reversible. So we hope and we invite Iran to reverse the steps,” said EU foreign policy chief Federica Mogherini.

“The deviations are not significant enough to think that Iran has definitively broken the agreement,” said Spanish Foreign Minister Josep Borrell, who is in line to succeed Mogherini this fall.

The EU currently has few direct measures for offsetting US economic sanctions against Tehran that have crippled the country’s economy, and the bloc faces US threats to target any EU companies that attempt to trade with Iran.

Noting that Iran was “still a good year away” from potentially developing a nuclear bomb, British Foreign Secretary Jeremy Hunt said there was still a “small window to keep the deal alive”.

Even if Britain, France, Germany and the rest of the EU held out a helping hand to Iran, the diplomatic puzzle was made more difficult yesterday when France’s foreign ministry said a researcher with dual French-Iranian nationality had been arrested in Iran.

It said the French government was seeking information about Fariba Adelkhah and consular access to her “without delay” but added there has been “no satisfactory response to its demands as of today”.

NOTICE

NOTICE is hereby given that GODWYN SYLVESTER SCOTT of #335 Jansel Court, Freeport, Grand Bahama, 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 16th day of July, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that ANGELA ESTIME of South Beach Nassau, 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 16th day of July, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that ANNAKAY GEORGEMIA SCULLY of 10 Kings Court, Hanna Road P.O.Box CR56226 Nassau ,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 16th day of July, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

THE TRIBUNE

Tuesday, July 16, 2019, PAGE 7

TRUMP SIGNS ORDER TO MAKE AMERICAN-MADE GOODS MORE AMERICAN

To advertise in The Tribune, contact 502-2394

WASHINGTON Associated Press PRESIDENT Donald Trump, pictured, signed an executive order yesterday that will require federal agencies to purchase products using more American components.

The order strengthens the standards that federal agencies must follow under the Buy American Act, which creates a preference for American-made goods.

Trump said his order will gradually boost the percentage of US components for qualifying American-made products from 50 percent to 75 percent. He said the threshold would increase to 95 percent for iron and steel products.

“The philosophy of my administration is simple.

If we can build it, grow it or make it in the United States, we will,” Trump said.

A trade group representing the steel industry called Trump’s action “another positive step” in ensuring the industry remains competitive.

“Strong domestic procurement preferences for federally funded infrastructure projects are vital to the health of the domestic steel industry,” said Thomas J Gibson, president and CEO of the American Iron and Steel Institute.

Analysts said the executive order will require the federal government to pay more for many products.

“While it might be a good headline for the administration, it’s taxpayers that will end up paying for this policy,” said Bryan Riley, director of the conservative National Taxpayers Union’s Free Trade Initiative.

“When we artificially reduce the pool of qualified suppliers or the variety of eligible supplies that can satisfy procurement requirements, projects cost more, take longer to complete, and suffer from lower quality,” said Dan Ikenson, director of trade studies at the libertarian Cato Institute.

The president signed the order during an annual White House “Made in America” showcase. Manufacturers from all 50 states were represented.

Trump has made it a priority to boost US manufacturing. Even so, the nation’s trade deficit has continued to grow under his watch, widening to a decade-long high of $621bn in 2018.

Trump said foreign countries have been allowed to “steal our jobs and plunder our wealth” in previous administrations. He also used the event to highlight tariffs he’s imposed on China, saying China has paid a big price economically as a result.

Dave Drabkin, former chairman of a federal panel that recommended improvements to the defense acquisition system, said it would likely take a minimum of nine months to complete the rule necessary to enact Trump’s directive.

NOTICE NOTICE is hereby given that NYAIMA SHAINIKA PIERRE, of Wilson Tract, 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 16th day of July, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

Legal Notice

NOTICE PROFICIENT FINACELL LTD. NOTICE IS HEREBY GIVEN as follows:

(a)

PROFICIENT FINACELL LTD., 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 12th July, 2019 when its Articles of Dissolution were submitted to and registered by the Registrar General.

(c)

The Liquidator of the said Company is Shareece E. Scott of Deltec Bank & Trust Limited, Deltec House, Lyford Cay, P.O. Box N-3229, Nassau, Bahamas.

Dated this 16th day of July, A.D. 2019

Shareece E. Scott Liquidator

NOTICE ANDOR LIMITED In Voluntary Liquidation Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, ANDOR LIMITED is in dissolution as of July 11, 2019 That International Liquidator Services Inc. ,situated at 3rd Floor Withfield Tower, 4792 Drive, Belize City, Belize is the Liquidator.

MARKET REPORT www.bisxbahamas.com

(242) 323-2330

MONDAY, 15 JULY 2019

(242) 323-2320

ALL SHARE INDEX: CLOSE: 2,174.92 | CHG: -0.19 | %CHG: -0.01 | YTD: 65.47 | YTD%: 3.10 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 20.91 7.00 5.60 2.60 2.00 3.04 11.05 6.17 4.64 12.50 2.74 2.20 9.51 7.01 15.60 8.00 3.75 14.00

52WK LOW 3.50 19.17 4.90 4.02 1.00 0.19 2.00 9.11 6.13 3.54 8.59 2.35 1.75 7.50 6.10 11.25 6.20 3.01 12.51

PREFERENCE SHARES 1000.00 1000.00 1000.00 1000.00

1.00 103.00 100.00 100.00 105.00 103.00 100.00 10.00 1.00

1000.00 1000.00 1000.00 1000.00

1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00

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 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

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

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

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)

LAST CLOSE 4.24 17.43 6.00 5.39 2.51 1.95 2.18 11.05 6.16 4.49 9.02 2.80 2.20 10.12 7.00 15.45 7.98 3.41 14.00

CLOSE 4.24 17.43 6.00 5.39 2.51 1.95 2.18 11.05 6.16 4.49 9.02 2.81 2.20 10.17 7.00 15.45 7.98 3.41 14.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.05 0.00 0.00 0.00 0.00 0.00

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

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 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

CLOSE 100.00

CHANGE 0.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

LAST SALE 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

VOLUME 115 542

625

VOLUME

EPS$ 0.240 0.932 1.760 0.323 0.098 0.000 -0.438 0.708 0.480 0.184 0.627 0.102 0.467 0.000 0.611 0.743 0.939 0.203 0.631

DIV$ 0.160 1.260 0.000 0.250 0.000 0.020 0.000 0.720 0.220 0.120 0.000 0.068 0.060 0.328 0.240 0.540 0.200 0.120 0.600

P/E 17.7 18.7 N/M 16.7 N/M N/M -5.0 15.6 12.8 24.4 14.4 27.5 4.7 N/M 11.5 20.8 8.5 16.8 22.2

YIELD 3.77% 7.23% 0.00% 4.64% 0.00% 1.03% 0.00% 6.52% 3.57% 2.67% 0.00% 2.42% 2.73% 3.23% 3.43% 3.50% 2.51% 3.52% 4.29%

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%

MATURITY 19-Oct-2022

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%

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

YTD%12 MTH% 1.55% 3.97% 1.18% 4.17% 1.11% 2.71% 2.06% 4.97% 4.52% 0.96% 1.57% 4.58% 0.99% 4.25% 1.32% 4.12% 3.22% 5.64% 2.50% 6.46% 2.79% 8.14% 2.12% 4.69% 5.00% -3.39% 3.04% 3.32% 2.48% 3.55% -0.71% 0.16% 7.40% 2.70% 10.20% 1.30%

NAV Date 31-May-2019 31-May-2019 31-May-2019 31-Mar-2019 31-Mar-2019 30-Apr-2019 30-Apr-2019 30-Apr-2019 30-Apr-2019 31-May-2019 31-May-2019 31-May-2019 31-May-2019 31-May-2019 31-May-2019 30-Mar-2019 30-Mar-2019 30-Mar-2019

MUTUAL FUNDS 52WK HI 2.24 4.29 2.06 188.32 158.55 1.62 1.76 1.70 1.15 7.66 8.96 6.74 11.83 12.04 10.63 10.00 8.69 11.79

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.56 1.68 1.64 1.08 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

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 Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

NAV 2.24 4.29 2.06 188.32 154.49 1.62 1.76 1.70 1.15 7.66 8.89 6.74 10.89 12.04 10.63 9.92 8.68 11.38

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

LIQUIDATOR ______________________ 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 | BENCHMARK 242-326-7333

PAGE 8, Tuesday, July 16, 2019

THE TRIBUNE

CAN MAKE A DIFFERENCE IN THE LIVES OF THE CHILDREN AT RANFURLY

T

he Ranfurly Homes for Children has been a safe haven for thousands of Bahamian children since 1956. The Home provides a safe, structured environment for children who have been orphaned, abused, neglected or abandoned.

YOU can make a difference in the lives of the children at Ranfurly. With your support children can have nutritious food, warm beds and a safe environment where they can discover the joy of being children. For years the children living and learning at Ranfurly have made great social and academic strides.

Their further development requires additional support in the form of a Transitional Home, planned for construction on the Ranfurly property.

This residence will cater to teenagers and young adults who are beyond school age, but need accommodation while they find work and gain independence from the Home.

We look forward to your continued support in this worthwhile endeavour.

MEMBERSHIP PACKAGES Individuals, Families & Corporate Sponsors Children Helping Children - $5 (Individual children from ages 6 - 18) Individuals Helping Children - $50 (Individual adults 18 years and over) Families Helping Children - $100

CIRCLE of FRIENDS Silver: $1,500 - $2,499 Gold: $2,500 - $4,999 Platinum: $5,000 plus

OPPORTUNITIES • • • •

Invitations to Ranfurly events Assist with fundraising events Involvement with special activities Adults are eligible to join the Board after three months • Stay in touch with Ranfurly through website and newsletters

BENEFITS

• Personal fulfillment in knowing you are impacting lives • Ranfurly children’s appreciation and positive response • Continued support provides stability and constant care

For more information visit: www.ranfurlyhome.org Please “Like” us on Facebook Ranfurly Home for Children, Mackey Street P.O. Box 1413 Nassau, Bahamas 242-393-3115