07192018 BUSINESS

business@tribunemedia.net

THURSDAY, JULY 19, 2018

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Top food store’s sales off 10% post-VAT hike

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

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TOP food store chain yesterday revealed sales have fallen ten percent since the VAT rate hike, with this and other uncertainties forcing it to postpone further expansion plans.

Gavin Watchorn, AML Foods’ chief executive, told Tribune Business that a combination of the VAT increase, The Bahamas’ planned accession to full World Trade Organisation (WTO) membership and related taxation reforms,

* AML postpones new store construction plans * Cites tax, WTO and energy ‘uncertainties’ * Sales soared up to 50% prior to VAT rise * $3m buy of ex-City Markets HQ in danger together with rising energy prices had prompted its board of directors to pause construction of new stores.

The BISX-listed food retail and franchise group, which operates the Solomon’s and Cost Right brands, still intends to pursue real estate acquisitions for sites that “make sense” as new stores, but will not “go vertical” until it sees how these

developments impact consumers and the wider economy.

Recalling how groupwide sales plummeted 15 percent in the first four to six weeks after VAT was introduced in 2015, Mr Watchorn estimated it would take between two to three months for consumer spending to “normalise” following the move to a 12 percent rate.

The AML chief added

that while store transaction volumes were unchanged, their value had declined, although he warned against “making rushed decisions” given that the new VAT rate has been in effect for just under three weeks.

“I think Bahamian consumers are going to need some time to adjust,” Mr Watchorn told Tribune Business. “When VAT was introduced in January 2015 we saw about a 15 percent

AML Foods: ‘distractions’ added to 75% profit fall

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

government to ensure the Fair Competition Bill had the necessary compliance “teeth”, and urged it to place sufficient resources behind its implementation so that it did not go the way of previous legislation that is on the statute book but not properly enforced.

“This may be the type of antitrust thing we need,” Captain Butler responded, when informed of the proposed law by Tribune

AML Foods yesterday said its 75 percent fourth quarter profit decline will not become a long-term trend, as “distractions” resulted in margins and shrink heading in the wrong direction.

Gavin Watchorn, the BISX-listed food retail and franchise group’s chief executive, told Tribune Business that it had moved quickly to take “corrective” action and refocus on daily operations following a period when it has been occupied with opening its Solomon’s Yamacraw location.

While admitting it might “take a quarter or two” for the Solomon’s, Cost Right and Domino’s Pizza operator to return its financial performance to levels shareholders have become accustomed to, Mr Watchorn said it was “still confident” it is laying the platform for long-term growth.

He added that AML Foods results for the fullyear, and final quarter, to end-April 2018 “don’t reflect what we’re doing”, as the financials were affected by one-off costs related to the closure of its Carl’s Jr franchise and the pre-opening/start-up impact at Solomon’s Yamacraw.

Mr Watchorn said the negative impact to margins

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GAVIN WATCHORN decrease in sales for maybe the first four to six weeks.

“Before the latest increase we some great weeks. One store was up 50 percent the week before, but they’re [sales] down about ten percent since we went to 12 percent. What we’re not seeing is less transactions but less spend.

What we’re seeing is not what we want to see, but it’s

SEE PAGE 4

Competition Bill ‘answers prayers’ over Bahamasair

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A BAHAMIAN airline principal yesterday pledged to “bring the first case” under proposed competition legislation, branding it: “An answer to my prayers”.

Captain Randy Butler, Sky Bahamas’ chief executive, told Tribune Business that the draft Fair Competition Bill could ensure “the survival of a number of companies” in the airline industry as it seemingly

* SKY BAHAMAS CHIEF PLEDGES TO ‘BRING FIRST CASE’ * CRITICAL FOR JOBS AND ‘SURVIVAL OF PRIVATE AIRLINES’ * CALLS FOR NECESSARY ‘TEETH’, ENFORCING RESOURCES CAPT RANDY BUTLER

Dingman suffers double blow over restaurant failure

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A LYFORD Cay resident has suffered a double blow, after his attorneys withdrew over unpaid legal bills just as the fraud case relating to his collapsed Nassau restaurant empire revives.

Jamie Dingman, son of late world-famous entrepreneur, Michael, was on Monday given 30 days by a New York federal judge to hire new attorneys otherwise a default judgment will be entered against him in favour of two former business partners who invested in his failed Out West Hospitality venture.

The court Order came after Mr Dingman’s previous attorney, Jeffrey Mitchell, said there had been no contact with his client since August 2017.

He told Judge Naomi Buchwald, via a June 21, 2018, letter that the Lyford Cay resident has neither revealed his location or paid past due legal bills.

“We have had limited contact with Dingman (who acts for the corporate defendants), and have not heard from him at all since August 2017,” Mr Mitchell told the judge. “He has not responded to phone

SEE PAGE 5

Contractor chief hails removal of ‘cloak and dagger’

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE Bahamian Contractors Association’s (BCA) president yesterday hailed the new pre-qualification process for removing the “cloak and dagger” secrecy around public project bidding.

Leonard Sands told Tribune Business that the new regime, unveiled by government yesterday, will address the previous lack of transparency as it gives registered companies the opportunity to obtain work on a

LEONARD SANDS competitive level playing field.

He said: “We certainly encourage that. We believe that the minister and the ministry are on the right path by ensuring that all contractors wishing to

SEE PAGE 5

provides a means to confront long-running complaints about Bahamasair’s “predatory pricing”.

A long-standing critic of this alleged tactic, which he says is underwritten by the national flag carrier’s multi-million dollar taxpayer subsidies, Captain Butler said Sky Bahamas and other Bahamian-owned carriers always “have to consider the Treasury” in all commercial decisions they undertake.

He called on the

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THE TRIBUNE

DESIGNING TRAITS FOR CAREER SUCCESS

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ESIDES creativity and passion, what makes a graphic designer great? Some believe creative geniuses are born, while others feel creativity is a learned behaviour. But taking passion and understanding into account, there are many other factors involved in becoming a topnotch graphic designer.

Creative graphic designers are known for their ability to adapt to all kinds of situations, while not allowing criticism or opposition to leave them short. Here are some characteristics that all successful designers need: HIGHLY MOTIVATED Creative graphic designers are motivated by the

task at hand rather than material rewards. They find motivation in the challenge a task presents, rather than allowing the material benefits to dictate what they do.

IMAGINATIVE They stand out from the crowd. The creative graphic designer seeks inspiration in themselves and everyday things.

HONESTY Self-criticism is a quality many people fail to balance.

They either end up being too critical of themselves or become over-confident about being the best.

Being brutally honest with one’s self requires asking the right questions throughout the creative design process, which is one of the leading

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traits of successful designers.

PASSIONATE Passion tends to be the main driving force behind creativity. Unless you are passionate about what you do, you will not completely focus on the task and can easily become bored.

ADORE CHALLENGES Creative graphic designers do not shy away from challenges. They allow their curiosity to get the best of them, enabling them to ask questions and discover things most people overlook. Their curiosity intrigues and challenges them, and they are able to complete their task directly.

MANAGE TIME Time management can become a challenge for

many graphic designers, who commit to multiple projects but fail to deliver on time. A good graphic designer would assess his/ her current workload, and is realistic in their approach so that every project can be given due attention.

BALANCE Creative designers know how to strike a balance between play and organisation. They recognise how to use fun to experiment with various concepts, yet are serious enough to implement them professionally.

Combine carefree fantasy with the right amount of reality-based perspective.

GOOD COMMUNICATOR Being a good communicator plays a major role in the success of any designer. Prompt interaction with the client, and keeping them informed regarding developments and new ideas, is critical to a project’s success. Doing so will help strengthen your designer-client relationship.

PROFESSIONAL ATTITUDE Good graphic designers know there is a fine line between being confident and arrogant.

CRITICISM Criticism is just another person’s opinion. Learn to take criticism positively, as it contributes towards growth and understanding - a part of the learning process not to be taken personally.

LEARNING Designing is actually a lifelong process, and not something learnt in a few months. As the industry continues to evolve, only the ones who keep up with developments can stay relevant. When you decide to quit learning is when you sign up for failure.

PUSH THEIR LIMITS Pushing your boundaries, thinking outside the box and allowing yourself to experiment are all part of the learning experience.

All these traits are part of a successful graphic designer’s personality, and play a critical role in transforming an individual into a highquality professional.

Finally, let us not forget to place intuition in this list. It is a prominent trait among designers, since design should always fill a need. Most designers trust their feelings, and can sense their clients’ needs in most situations. Always be tenacious and persistent in your

The Art of Graphix

BY DEIDRE M BASTIAN

pursuit, and never forget to enjoy the journey. Until we meet again, fill your life with memories rather than regrets. Enjoy life and stay on top of your game.

NB: Columnist welcomes feedback at deedee21bastian@gmail.com ABOUT COLUMNIST: Deidre Bastian is a professionally-trained graphic designer/ marketing co-ordinator with qualifications of M.Sc., B.Sc., A.Sc. She has trained at institutions such as: Miami Lakes Technical Centre, Success Training College, College of the Bahamas, Nova Southeastern University, Learning Tree International, Langevine International and Synergy Bahamas.

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THE TRIBUNE

Thursday, July 19, 2018, PAGE 3

BAHAMIAN ADVISER LISTS FUND ON BISX A BAHAMIAN investment adviser has listed its first international investment fund on the Bahamas International Securities Exchange (BISX).

BISX yesterday announced that is pleased to announce that Class A shares in the Leno International Income Fund, part of the Leno International Investment Fund, have completed its mutual fund listing process and been added to its roster of funds.

Keith Davies, pictured, BISX’s chief executive, said: “It’s always a good thing when one of our members takes advantage of the opportunities made available through

their affiliation with the exchange, and today is no exception.

“We are pleased that Leno has entered the international mutual fund listing arena, which was made possible through the Exchange Control Liberalization Programme set by the Central Bank for use by members of BISX. BISX’s mutual fund listing sector continues to grow, and we have to thank our sponsor members, like Leno, who bring these funds

to us.

“We look forward to the future growth of this sector of BISX, and we are also considering approaching the Central Bank to increase the total sum of monies available annually to the liberalisation programme to facilitate its expansion.”

Sean K Longley, Leno’s president, added: “Following up on becoming a BISX sponsor member last year, Leno is pleased to list its first fund on the exchange.

“Leno sought an investment solution that provided steady returns and diversified holdings of high-quality global fixed income instruments. This fund will provide an easy and convenient way for Bahamian investors to invest their savings in the global markets”.

Leno Corporate Services served as the BISX sponsor member that brought the fund to the exchange.

Leno Corporate Services

has been appointed as the fund’s administrator, and Leno Corporate Services acts in the capacity of investment manager.

Leno International Investment Fund, SAC is an open-ended mutual fund. It is incorporated as an International Business Company under Bahamian law, and is registered as a Segregated Accounts Company under the Segregated Accounts Companies Act 2000.

FROM left: BISX chief operating officer, Holland Grant; Leno president, Sean Longley; BISX chief executive, Keith Davies.

Business License ‘a very damaging tax’

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE Bahamian Contractors Association’s (BCA) president yesterday branded the business license fee a “very damaging tax” that often left the industry “paying on losses”.

Leonard Sands, revealing that the BCA met with Deloitte & Touche’s UK arm, the consultants developing and evaluating options for replacing the business licence fee and wider tax reform, said: “Business license taxes on gross revenue in the construction sector is actually a very damaging tax.

“Even if your project was completed at a loss and you pay a gross revenue tax on that, you are paying a tax on the loss you already incurred.

Where are you going to find money to actually pay the business license fee at two percent or 2.5 per cent on a $1m contract. That’s a lot of money coming out-of-pocket to pay again, even though you have lost money.”

Mr Sands pushed back against the assumption that contractors “make a lot of money”. “That’s not the reality in construction,” he added. “It’s not every contract where you earn money.

Some contracts don’t go as intended, and you actually lose and still have to pay business license on money you already lost.”

The Deloitte & Touche are examining whether the existing business licence fee could be replaced by a profit-based fee or corporate tax.

The business licence fee’s calculation on gross turnover is viewed as penalising high turnover, low margin businesses while favouring low turnover businesses that are more profitable. Tribune Business has received complaints from numerous companies that they pay more in annual business licence fees than they do in profits, and/or that the fees push them into losses.

Michael Maura, the Chamber of Commerce’s chairman, told Tribune Business before the 2018-2019 budget that “a real hard look” was needed at reforms to the business licence fee structure, although nothing was announced then.

The government appears to considering change in the context of wider potential tax reform, with Deloitte & Touche’s work also focusing on the implications of impending World Trade Organisation (WTO) membership and the pressures on the financial services industry.

KP Turnquest, deputy prime minister, told Tribune Business in a recent interview that the government is aware of the business licence fee’s “unfairness” - especially where high turnover, low margin businesses such as food stores and gas stations were concerned.

Emphasising that the government remains committed to addressing this, Mr Turnquest also acknowledged the need for certainty and predictability with a Bahamian tax system that is frequently tinkered with in the annual budget.

“We’re very cognisant, if you will, of the unfairness of the tax,” he said of the business licence. “This is one of the reasons we are having the study done to see how we can make the tax more progressive.

“It is an important consideration for us. This was one of the things we promised in our campaign; to look at the fairness of the business licence fee, particularly as it relates to high turnover, low margin businesses.

“We believe, fundamentally, that no tax should be so burdensome that it creates a negative cash flow and puts businesses into a loss. Whatever changes we make have to be incremental and be well thought-out.”

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PAGE 4, Thursday, July 19, 2018

THE TRIBUNE

Top food store’s sales off 10% post-VAT hike FROM PAGE ONE

‘zero rating’ of breadbasket items that will provide some relief to consumers. not unexpected.”

We have to wait a couple of Based on AML Foods’ months before it levels out annual sales of $163.057m and we see what the norfor the year to end-April malised level of consumer 2018, the post-VAT hike’s spending will be. ten percent sales decline “We’ve got to see what stands to cost the BISX- it levels out at. We don’t listed group some $16.3m want to want to be making annually on its top-line. rushed decisions in the first Yet it is unclear with this weeks, especially as the last trend, and the magnitude week in June was so strong. of the fall, will hold for the We have to be lean as long-term. always, so we’re looking at Mr Watchorn said the where we can reduce costs sales peak immediately and save money. It will be prior to the 12 percent VAT three months, maybe a little rate’s implementation, as more, before we see how Bahamians stocked up on consumer spending fares.” groceries and other prodAML Foods’ data ucts to beat the increase, provides one of the meant it was hard to deter- first insights into the VAT mine when - and where hike’s impact on the Baha- consumer spending will mian retail sector and level off or “bottom out”. consumer demand. It will “It will take some time,” likely fuel existing concerns he emphasised. “We have to about the increased taxasee what happens with the tion’s impact on jobs and

the wider economy, given that the government is forecasting the rate increase will suck an extra $400m from consumers’ pockets this fiscal year.

In the meantime, Mr Watchorn said AML Foods had decided to slow down its store expansion strategy given that it - and the wider business community - needed to “digest” how VAT will impact consumer spending and a WTO accession “coming towards us next year”.

“We are going to continue to look for sites, and if a site makes sense and ideal real estate location, we will look at that,” he told Tribune Business. “But in terms of converting ‘green field’ into new stores, as a Board we have decided to wait until we see the impact of all these things.

“We have some active discussions going on with

parties on different sites.

To buy it is one thing, and you’re buying for the longterm, but there’s too much uncertainty for us to be making a commitment to build large stores right now.”

Besides the VAT increase and WTO accession, Mr Watchorn cited rising energy prices as another issue that had given AML Foods pause for thought.

Besides global oil prices, he cited the additional charge that will ultimately be added to consumers’ electricity bills to finance Bahamas Power & Light’s (BPL) rate reduction bond restructuring, adding: “Someone has to pay for the debt on the books at BPL as a result of gross mismanagement.”

The AML Foods chief also said there was “a little bit of uncertainty” over how the government plans to replace revenue that will be lost as a result of having to eliminate, or substantially reduce, many import tariff lines as a result of joining the WTO. The Minnis administration has said it will likely

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have to replace between $100-$200m in lost revenue, but is currently unable to give a precise figure because the terms of The Bahamas’ accession have yet to be negotiated.

Mr Watchorn questioned whether the chosen replacement would be a “consumer tax” or “business tax”, and how it would be collected. He added that he did not “see the benefit to consumers” from joining the WTO if the government eliminated import tariffs on one hand, only to levy new or increased taxation on the other.

His comments indicate AML Foods is going to be far less aggressive with the expansion strategy it unveiled in its 2017 annual report, which aimed to add two new stores in southern New Providence over the next five years.

It had planned to continue rolling out its “neighbourhood” food stores based on the model established by the recently-opened Solomon’s Yamacraw outlet, having already acquired a 4.506 acre site on Charles Saunders Highway, between Seabreeze Estates and Pinewood Gardens, as one such location. Another site was being sought in southwestern New Providence.

Meanwhile, Mr Watchorn said AML Foods had this week opened a new staff training centre in Freeport, adding: “We’re quite excited about the benefits it will bring to us up there over the medium to long-term.”

The BISX-listed group is now planning to construct and open a similar 4,000 square foot training centre, adjacent to its Solomon’s

Yamacraw store, before the 2018 calendar year-end.

“We will be breaking ground shortly, and it will be operational before the end of this year,” Mr Watchorn said. “It’s kind of a win-win for us.”

Tribune Business sources yesterday suggested AML Foods had originally planned to base its Nassau training centre, and relocate its head office, at the former City Markets headquarters building and warehouse on the East-West Highway.

However, its $3m purchase of the site has become bogged down in the ongoing litigation involving the property’s owner, the City Markets employee pension fund, and Tribune Business understands that AML Foods is close to walking away from the deal unless it can close quickly.

Mr Watchorn declined to comment, citing the ongoing litigation, but a source familiar with developments, speaking on condition of anonymity, said: “AML is prepared to walk away from this if it is not resolved quickly. It cannot let its strategy be held up because of issues with the property.”

The City Markets employee pension fund trustees are currently embroiled in a legal challenge over whether they have the right, and ability, to sell the former head office and warehouse building as revealed by Tribune Business earlier this year.

AML Foods has two years left on its existing lease at the Town Centre Mall, and is searching for a new location for its Cost Right brand as well as a new headquarters site.

THE TRIBUNE

Thursday, July 19, 2018, PAGE 5

Dingman suffers double blow over restaurant failure FROM PAGE ONE calls, letters or e-mails sent to the one e-mail address that we have on file for him.

He has refused to disclose to us his whereabouts or to pay outstanding bills.

“We notified Dingman in July 2017 that we would no longer represent him but, unfortunately, because he failed to retain new counsel we felt our professional obligations compelled us to file a brief in the appeal on defendants’ behalf, as there was insufficient time to withdraw from the appeal without comprising defendants’ position.”

Mr Mitchell added that attorneys who initially represented Mr Dingman in a related case, this one filed in the New York Supreme Court, had also withdrawn after “encountering the same problems we have encountered”.

Mr Dingman’s legal woes appear especially illtimed because a US federal appeals court, on June 19, overturned Judge Buchwald’s original verdict and reinstated the lawsuit initiated against him by former business partners, Erik Gordon and Ryan Giunta.

They had alleged that Mr Dingman breached agreements to provide them with an equity interest in Out West Hospitality, the holding company for a planned Nassau restaurant conglomerate that included the iconic Traveller’s Restaurant and several other properties, but which fell apart and collapsed in 2014.

Gordon alleged that the

$250,000 he paid to Mr Dingman in exchange for a 50 percent equity stake in Out West Hospitality was a transaction which, under US law, the latter had to complete.

He argued that the Out West Hospitality share deal was governed by US securities laws, given that the negotiations and communications between himself and Mr Dingman occurred in New York.

Yet the southern New York court disagreed, finding that Bahamian law trumped the US version as the Out West Hospitality share transaction needed regulatory approvals in this nation before it could close.

Judge Buchwald ruled that the need to obtain Investment Board and Central Bank approval, given Gordon’s status as a nonBahamian, was “a condition precedent” that had to be completed before the purchase closed.

Given that these approvals were never obtained, Judge Buchwald found that Gordon’s claim of “irrevocable liability” on Mr Dingman’s part in relation to the deal had not been met. As a result, the whole case was undermined.

Those findings, though, have been rejected by the US Court of Appeals for the second circuit, which found that the agreement between Mr Dingman and Gordon was not “so predominantly foreign” as to mean US securities laws did not apply.

“We are not persuaded that the foreign components present in this dispute

render the claims impermissibly extraterritorial,” the Appeals Court ruled, given that the discussions over Gordon’s Out West Hospitality investment largely occurred in New York.

“The agreement was entered into in New York; Dingman continued to press Gordon for further investments in New York; Dingman and Gordon were both US citizens; the wire transfers originated from New York; and the confirmation letters were sent to New York,” the US Appeals Court found.

“The only foreign component present in the formation of the agreement was the eventual registration of the shares ‘with the appropriate Bahamian authorities’, an act that Dingman agreed to undertake per the agreement.”

Mr Dingman had argued that The Bahamas was the most appropriate legal jurisdiction to resolve the dispute, given that he is a permanent resident and all the companies, entities and related accounting records are based here. As a result, he claimed US securities laws were not applicable.

Having rejected this, the US Appeals Court also found that the deal between Mr Dingman and Gordon “was a contract” that committed them to the transaction when they were in the US - even though it was subject to Bahamian regulatory approvals.

“Dingman counters that the agreement was not a binding contract because the agreement specified that he would refund Gordon’s

investment if they could not agree to ‘a written document memorializing the terms of Gordon’s investment’,” the verdict recorded.

“He contends that this illustrates that the parties did ‘not intend to be bound until their agreement [was] reduced to writing’, and thus, the agreement was not binding.

“Gordon and Dingman’s subsequent conduct belies this argument. Gordon would not have wired $100,000, and Dingman would not have confirmed it as an investment, unless both understood the agreement to be a binding investment contract.”

The Appeals Court verdict recalled how Gordon was unable to obtain Out West Hospitality’s accounts despite repeated requests, only for Mr Dingman to inform all investors on September 9, 2014, that the business and all restaurant formats were closed.

“The letter also stated that Dingman was doing a capital call to raise additional funds that would dilute existing shares if the shareholders failed to invest more. The existence of other equity holders came as a surprise to Gordon, given Dingman’s previous representations that Dingman and Gordon shared in 50/50 equity of OWH,” the court noted.

“In the following weeks, Dingman ignored Gordon’s phone calls and e-mails requesting operating and financial information and refused to return Gordon’s investment.”

Contractor chief hails removal of ‘cloak and dagger’ FROM PAGE ONE engage in bidding on government work pre-qualify and be a part of the system.

“We recognise that means the Ministry will definitely know who the contractors are ahead of time. What has been the challenge always is that sometimes contracts were awarded to persons who no-one knew beforehand. The questions would be: Well, where did the contact come from, and who was the contractor? I believe this process removes all of that cloak and dagger.

“Registered companies will have an opportunity to engage in work offered by the government. There have been abuses of the process in the past, which has not only affected the ministry but the country’s finances, with

contracts ending up short and the government having to pay out more money to complete the work.”

Desmond Bannister, minister of works, told Parliament yesterday that his ministry is in the process of updating its contractor database, and the tendering and payment certificate processes.

“To this end my ministry has developed a new prequalification process and documentation, which will enable all qualified contractors to be eligible to participate in development projects,” he said. “Through the completion of the prequalification document, contractors will be granted the opportunity to prequalify to be placed in the Ministry of Public Works’ database of contractors.”

“This database will inform the ministry’s project officers of which contractors are prequalified for various types of capital works. To ensure the quality of contractors, the valuation is done through a pre-qualification analysis of the submitted document.

“The pre-qualification document is designed to assist the contractor in providing information in support of their selection.

The document allows them to demonstrate that they have suitable experience, capacity, financial standing and are aware of health and safety procedures, to properly execute the works.”

Mr Bannister added that once contractors are prequalified in particular categories, they will have the opportunity to be invited to bid on a rotational basis.

“Further, contractors may be deleted from the list if the quality of performance falls below acceptable levels.

Conversely, they maybe elevated to higher categories, when ability to advance has been demonstrated,” he said.

Mr Dingman’s efforts to build a Nassau-based restaurant and hospitality business included taking over Traveller’s Rest in western New Providence via a lease arrangement.

That venture failed and the property shut again, until members of the Bain family, its owners, re-opened it again.

He also leased two units in the Klonaris brothers’ Elizabeth on Bay plaza on Bay Street for two other restaurant formats, both of which have also closed.

Tribune Business also revealed how Mr Dingman leased the Beach Club Cafe from Sandyport’s developers, viewing this as his “signature property”. The venture never opened, and the lease was pulled.

The initial action against Mr Dingman included numerous Bahamian plaintiffs, such as the well-known Wulff Road-based building

materials suppliers, FYP and Tile King, the People First (Bahamas) employment agency, IDNet, and Young Digerati (YNG).

Individual Bahamians also suing Mr Dingman included Jason Rolle, his former general manager, who claimed to be owed $46,113 in unpaid salary and benefits, plus Tyrone Adderley, a contractor seeking more than $2,000 for work on the Beach Club Cafe at Sandyport.

However, all the Bahamian plaintiffs “voluntarily” withdrew their claims for thousands of dollars in damages against Mr Dingman, leaving the action to Messrs Gordon and Giunta. Their action was likely due to Mr Dingman’s efforts to dismiss the case on jurisdictional grounds, with the argument that The Bahamas was the proper forum to hear the matter.

PAGE 6, Thursday, July 19, 2018

THE TRIBUNE

Competition Bill ‘answers prayers’ over Bahamasair

FROM PAGE ONE Business. “Bahamasair will be the first case, where they

are doing predatory pricing against the privately-owned carriers.

“I’d probably be the first case to come. I would do

that to save the domestic airlines and the jobs of our people. It’s obvious; you can see it from Bahamasair’s advertising.”

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Captain Butler has long complained of Bahamasair’s alleged “predatory pricing” tactics, where it undercuts rival carriers by selling ticket prices below cost, with the shortfall covered by an annual taxpayer subsidy that is pegged at $13.365m in the 2018-2019 budget.

The SkyBahamas chief argues that this forces his airline, and other privatelyowned Bahamian carriers, to also sell tickets below cost to enable them to compete with Bahamasair. But, without the same subsidy support, this forces them into a loss and having to abandon certain routes.

Such market distortion and tactics will likely be frowned on by a Fair Competition Act, with the draft legislation setting out in some detail the procedures that have to be followed in investigating complaints of anti-competitive behaviour; the hearing of such cases; the rendering of decisions; and imposition of any fines and penalties.

It is unclear, though, whether the law would apply to state-owned enterprises (SOEs) that compete with the private sector, Bahamasair being the most obvious example. And there are several other existing regulatory regimes/agreements that would likely run afoul of any competition legislation.

One is the ten-year moratorium that bars new operators from entering the domestic gaming, or web shop, industry. Other private sector sources have pointed to the government’s previous granting of monopolies, such as those in the port industry relating to both Nassau’s commercial shipping port and Hutchison Whampoa’s former exclusivity in Grand Bahama, as arrangements that might conflict with the new law.

Sources have also queried whether the draft Fair Competition Bill as is deals adequately with crosssubsidisation, or situations where companies are able to use their “super profits” from one industry to enter other markets and under-cut

rivals, driving them out of business and financing such losses elsewhere.

Captain Butler, meanwhile, suggested that the bill was one of three desperately-needed laws - a Freedom of Information Act and Fiscal Responsibility Act being the other two - necessary “to fix a number of the crazy issues going on in the country”.

“For airlines it’s exciting, and it’s the answer to my prayers,” the Sky Bahamas chief told Tribune Business.

“I would say it’s very, very important, so much so that I think we in the private sector will help the government with whatever they need to put this in place because it’s going to mean the survival of a number of companies.

“It’s our number one issue. Anything we do we have to consider Bahamasair and the Treasury at this time. When you come into the airline business and operate against them, this is what happens.

“No one, the chairman, the Minister, apologises for what they’re doing, and from the outside it looks like their intent is to close the private enterprises so no one can compete.”

Captain Butler added that the Fair Competition Bill will also enable small and medium-sized businesses “to exist”, and said: “You have to have this, otherwise big companies will eat them up.” He suggested it would also prevent price fixing and other forms of collusion that can harm the interests of Bahamian consumers and rival companies.

“Who’s going to be the ones implementing that,” the Sky Bahamas principal asked. “That’s always the challenge, and the penalties will be fundamental in making the difference.

Without the teeth it’s useless and we need to see the government put resources behind it.”

The Fair Competition Bill is among a slew of legislation being drafted, and issued for consultation, as part of The Bahamas’ accession to full World Trade Organisation (WTO) membership by year-end 2019. It is also to fulfill this nation’s obligations under the Economic Partnership Agreement (EPA) signed

with the European Union (EU) in 2008.

The bill, which proposes the creation of a Fair Trading Commission to act as The Bahamas’ competition watchdog, is designed to protect Bahamians by guarding against abuses and distortionary practices from rogue businesses that undermine consumer welfare.

It is typically intended to prevent, and punish, practices such as collusion by firms that results in price-fixing or restricting the availability of particular products and services.

Abuse of a dominant market position, and mergers and acquisitions that may be against the public interest, are also covered by this legislation.

“Examples of the types of agreements that restrict or distort trade typically include: Price fixing agreements, production quota agreements, geographic market divisions, bid-rigging agreements, tied selling and collective arrangements among suppliers to directly or indirectly fix the resale price of a good or service,” the bill’s footnotes state.

Mergers/acquisitions that result in the combined entity obtaining “at least 40 percent share of any market, or such other amount of the market as the Minister, acting in consultation with the commission, may prescribe” is one of the criteria that will result in the deal being referred to the Fair Trading Commission for further scrutiny, according to the bill.

The legislation, according to the footnotes, will also apply to foreign mergers and acquisitions that affect the supply of goods into The Bahamas. “The conduct of multinational corporations-where those corporations sell goods in or into The Bahamas, is covered under this Act,” the footnotes state.

“For example, if GLAXO-SMITH KLINE is merging with a North American company, and that company sells pharmaceuticals, for example, in or into The Bahamas, then that merger may be subject to the merger review and control procedures under this Act.”

LANDSCAPE CREW LEADER WANTED:

- Fluent in English - Minimum 5 years’ experience in landscaping - Experience in Supervisory position - Valid Driver’s Licence - Knowledge of insecticides, herbicides, landscape maintenance and irrigation Email: landscapebahamas242@gmail.com

Broughton Cartwright

Office clOsure

To our valued clients please be advised that our office will be Closed on Friday, July 20th, 2018 Will Re-open Monday, July 23rd 2018 We apologize for the inconvenience caused

THE TRIBUNE

Thursday, July 19, 2018, PAGE 7

AML Foods: ‘distractions’ added to 75% profit fall FROM PAGE ONE and shrink, the latter measuring inventory lost to theft, damage and spoilage, was “enough that we felt it”.

Yet he pointed to progress in AML Foods minimising energy costs, which have fallen by “ten to 15 percent on average”.

And Mr Watchorn said full-year profitability would have exceeded 2017 comparatives had it not been for the one-off costs, although he conceded this will be little comfort to investors.

“Our fourth quarter and year-to-date numbers were disappointing and don’t reflect what we are doing; the effort we’re putting in,” he told Tribune Business. “One or two pockets are underperforming, but a lot of units are performing quite well.

“There were quite a lot of one-charges, and the focus on Yamacraw kind of distracted us from our existing business. We saw the impact on margins and shrinkage.

In the last couple of months we’ve refocused and are correcting those things.

“While we’ve had some setbacks, we’re not concerned this is a long-term change in our results,” Mr Watchorn continued.

“We’re still pretty confident we’re laying down the platform we need for growth.

Long-term, we’re still pretty

confident we’re making the right decisions.

“It may take us a quarter or two to get back, but we’re confident it’s only a short-term impact for us.”

AML Foods’ profit for the three months to end-April fell by almost three-quarters year-over-year, dropping from $1.853m to $467,000 as costs rose amid the wait for Solomon’s Yamacraw to hit profitability.

The full-year results also reflected some $424,000 in pre-opening costs related to that store, more than five times’ the $81,000 incurred in the prior year. AML Foods also suffered a $174,000 goodwill impairment, an accounting treatment, associated with write-downs to the Carl’s Jr hamburger franchise business that it closed.

The BISX-listed food retail and franchise group’s full-year profits fell by 41.2 percent, dropping from $6.586m to $4.034m, and Mr Watchorn said: “When you pull-out those one-off numbers our profits would have been higher than last year.

“There’s ups and downs.

As long as you’re moving the needle in the right direction it’s how you react to these things. We’ve been making the adjustments and going on. It’s behind us, and everyone’s focus is on how we get better.

“It’s all about

controllables. That’s the message we’ve been saying to our folks. Control what we can control.”

Declining to give the precise impact on margins and shrinkage, Mr Watchorn added: “It was enough that it was noticed. The management of those things requires everyday focus, and when we shifted our focus to the store it wasn’t there in those areas.

It was big enough impact that we felt it. It’s something we control, and will get back under control in short order.”

The AML Foods chief also lamented the government’s continued insistence on VAT-inclusive pricing, arguing that this had forced retailers, in particular, to incur extra costs and redeploy resources that could be used more productively elsewhere to change prices to the new 12 percent rate.

“It’s just unfortunate that we have a pricing structure that causes us to do so much work when we change the VAT rate,” Mr Watchorn told Tribune Business. “If we have exclusive pricing, where the tax is added at the register, which every Bahamian is used to in Florida, it’s a computer change that can be done overnight.

“Taking down labelling and pricing, it’s an expense we can do without right now.

We have to take items back down, print them, put them

www.ub.edu.bs

CAREER OPPORTUNITY SENIOR MANAGEMENT Suitably qualified candidates are invited to submit applications for the following position available at University of The Bahamas:Vice President for Advancement and Alumni Affairs will be responsible for designing and implementing comprehensive institutional advancement programmes and recruiting and developing talented team members focused toward the ultimate goal of significantly increasing constituent involvement and fundraising outcomes. The advancement function includes responsibility for annual fund, corporate and foundation relations, major gifts and gift planning, endowment, capital campaigns, and alumni and constituent relations efforts, stewardship, and other advancement services; namely, Office of University Relations.

Among the duties and responsibilities are: • Advance the mission, vision, and short- and long-term goals of the University in concert with the University President and Senior Administrative Colleagues; • Work closely with the President in all phases of his advancement and campaign leadership activities; • Serve as a member of the University Leadership Team and maintain close working relationships with members of the Board of Trustees and key alumni/parents/friends; • Maintain a dynamic portfolio of high net worth individuals and secure major, capital, and planned gifts, as well as advance annual gifts and endowment support; • Participate in strategic discussions and develop programs to strengthen the financial resources of the University and all University Centres of Excellence; • Create and execute fundraising plans that utilize best practices in annual, major, and planned gift programs to meet fundraising goals; • Ensure dynamic processes in all phases of donor qualification, cultivation, solicitation, and stewardship; • Prepare for the upcoming campaign through comprehensive and effective campaign planning and execution; • Hire, train, inspire and guide direct reports and the entire advancement team toward accountable, goal-oriented outcomes; • Develop annual plans and budgets for Alumni and Parent Relations, Annual Fund, Gift Planning, Comprehensive Campaigns, Major Gifts, Grants Development, Stewardship and Advancement Services; • Engage University faculties, colleges, schools, programmes, and centres of excellence, and enhance the culture of philanthropy. Maintain cooperative working relationships with faculty, coaches, and campus departments whose cooperation is essential to effective outreach and fundraising.

Qualifications The successful candidate must have a minimum of ten years of managerial experience as a fundraising and/or advancement executive and a Masters Degree.

A detailed position announcement is available online at: http://www.ub.edu.bs/about-us/career-opportunities/ Applicants should electronically submit via hrapply@ub.edu.bs, to the attention of the Vice President, Human Resources the following documents: • A cover letter of interest highlighting work experience and accomplishments relevant to the position; • A completed UB Employment Application Form http://www.ub.edu.bs/wp-content/uploads/2017/01/Application-for-Employment-Staff.pdf;

• Current Curriculum Vitae or Resume; • Copy of the relevant pages of a valid passport showing passport number, photo identification and expiration date; • The names and contact information of three professional references.

E-mail: hrapply@ub.edu.bs Attention: President and C.E.O. - University of The Bahamas DEADLINE TO APPLY: 25TH JULY 2018

back up and take resources away from more productive work.” He estimated at around 15,000-20,000 items per store, on average, have to be re-priced for the increased VAT rate.

However, Mr Watchorn said AML Foods’ investments in energy efficiency were paying dividends.

“Over the last couple of years we’ve reduced energy by between ten to 15 percent overall on average,” he told Tribune Business.

“For the amount of energy we use that’s a big number. We’re pleased with what we’ve done, but there’s always room for improvement and we’re always advancing in terms of minimising energy use.

It’s something we stay on top of.”

POSITIONS AVAILABLE The beautiful luxury 5 star cove resort in Gregory Town, Eleuthera is presently looking for two professional trained and experienced male or female butlers to commence work immediately.

Also positions available:

General Manager Sous Chef Spa Therapist Food and Beverage Manager

Living accomodations ,three meals per day, free wifi and a attractive compensation packages is available to the suitable candidates Please contact the human resources department at telephone number 242-335-5141/3, or send resume to email address rdean@thecoveeleuthera.com

PAGE 10, Thursday, July 19, 2018

THE TRIBUNE

AmEx 2Q profit rises, but there are worry spots on lending NEW YORK Associated Press AMERICAN said yesterday

Express that its

second-quarter profit rose 21 percent from a year ago, as the credit card giant saw more customers spending on its namesake cards and a much lower tax rate.

But it had to set aside more money to cover potential bad loans, and saw its delinquency rate rise noticeably. It’s a potential sign that some of American Express’

customers — typically the most creditworthy in the industry — are struggling to pay their bills.

Shares of American Express fell three percent in after-market trading.

The New York-based company said it had secondquarter profit of $1.62bn, or $1.84 a share, up from $1.34bn, or $1.47 a share, in the same period a year earlier. AmEx’s results beat, albeit barely, expectations of industry analysts who were looking for AmEx to earn $1.83 a share on average, according to survey by FactSet. AmEx’s results reflected the company’s usual strengths in recent quarters.

It added more customers — 2.9 million new cards were issued compared to a year ago — and spending by its card holders was up ten percent from a year earlier.

There were some figures in AmEx’s results that gave investors pause, however.

AmEx’s charge off rate — the percentage of loans that the company has classified as unrecoverable — stood at 1.8 percent in the quarter.

While that’s still among the lowest in the industry, it is up from 1.5 percent a year earlier. AmEx said it set aside $806m, up 38 percent from a year earlier, to cover for potentially bad loans.

For decades, American Express was a company whose primary business was to issue charge cards, which

AMERICAN Express credit cards. don’t revolve a balance and had to be paid off at the end of each month. But recently, in a move to boost revenue and diversify its revenue streams, AmEx has been promoting to its customers the ability revolve a balance, even on its traditional products like the Platinum Card.

Total loans carried by AmEx card customers stood at $75.4bn last quarter, the company said, up from $67.9bn a year earlier.

In previous quarters, AmEx executives have said they expected delinquencies to rise as the company expands its lending business. In a conference call with investors, AmEx financial chief Jeffrey Campbell said “we don’t see anything in the performance” of the credit cards that would suggest some more

substantial change in customer behaviour.

While AmEx can earn interest on those revolving balances, there’s a risk that its customers may run up higher balances and struggle to repay. That appears to be happening. The company’s worldwide write off rate for loans was 2.1 percent in the quarter, up from 1.8 percent a year earlier.

Last quarter American Express won a major antitrust lawsuit that went all the way to the Supreme Court.

In a 5-4 vote, the Supreme Court ruled that AmEx did not violate antitrust laws by requiring merchants not to steer potential customers to other forms of payments.

AmEx is typically the most expensive form of payment for a merchant to accept.

To advertise in The Tribune, contact 502-2394

www.ub.edu.bs

CAREER OPPORTUNITY Suitably qualified candidates are invited to submit applications for the following position available at University of The Bahamas:Recruitment Officer I will assist and provide general support to the Recruitment & Admissions Office related to local and international recruitment for prospective students at University of The Bahamas (UB).

Among the duties and responsibilities are: • Assist with attending and/or presenting at educational fairs, exhibitions, on and off-site recruitment events and activities. This may include visitation to junior high schools, secondary high schools, businesses and civic groups locally and internationally; • Create a pleasant relationship with all New Providence, as well as, Family Island schools’ guidance counselors and principals; • Assist with generating and maintaining a database for each high school that should be updated annually and, in some cases, at the beginning of each new school term; • Contribute innovative ideas and strategies as it relates to the recruitment of new applicants; • Assist with budget analysis and the development of recruitment strategies; • Submit required weekly, annual or other reports in a timely manner; • Create reports or database on actual student programme interest and enrollment of all new students; • Assist with follow-up analysis of students’ enrollment and college experience; • Assist with reporting of all new programmes that are not currently offered at UB for the overall curriculum programme planning process; • Must uphold UB policies and procedures with regard to student privacy and confidentiality regulations.

Qualifications Bachelor’s Degree in Business Administration (BBA), Marketing or Media Journalism, with at least 2-3 years of work experience in the work related environment.

A detailed position announcement is available online at: http://www.ub.edu.bs/about-us/career-opportunities/ Applicants should electronically submit via hrapply@ub.edu.bs, to the attention of the Vice President, Human Resources the following documents: • A cover letter of interest highlighting work experience and accomplishments relevant to the position; • A completed UB Employment Application Form http://www.ub.edu.bs/wp-content/uploads/2017/01/Application-for-Employment-Staff.pdf;

• Current Curriculum Vitae or Resume; • Copy of the relevant pages of a valid passport showing passport number, photo identification and expiration date; • The names and contact information of three professional references.

E-mail: hrapply@ub.edu.bs Attention: Vice President, Human Resources - University of The Bahamas DEADLINE TO APPLY: 25TH JULY 2018

Dependable, Highly Organized, Multi-Tasker, Attention to Detail.

Do you have at least 5 years’ experience in the Financial Service Industry? Do you have excellent communication skills (verbal and written)?

If you possess these qualities, we invite you to apply for the position of:

Senior Customer Service Officer Job Summary: Fidelity Bank (Bahamas) Limited, is seeking proficient, service-oriented Senior Customer Service Officer to join our team. This position requires a great attitude, professional out-going personality, with a high degree of precision and competence in customer service administration and sales support.

Main Duties and Responsibilities: • Day to day management of sales and account opening personnel support team, including maintenance of premises, security, compliance, oversight of sales support staff (non- sales functions)and execution of customer service requirements (including Quarterly Prudential Returns- QPS) • Account Opening (including Online Banking) and related activities • Non-credit banking services for clients of the Financial Centre • Implement and maintain Minimum Service Standards • Banking products (savings accounts, fixed deposits, debit cards, and all other non-credit products and services branded under the Financial Centre) • Relationship management for non-credit clients • Presentations at events, seminars, etc on non-credit products and services • Follow up with prospective non-credit clients after inquiries, seminars and other presentations • Training, coaching and assessment of Sales Support Staff • Resolve and document customer complaints • Accurate and timely processing of all banking fees & service charges • Ensure all relevant documentation/entries are scanned in FIS and Direct Branch Requirements / Qualifications: • High school diploma or equivalent vocational training • Minimum 5 years experience in the Financial Services Industry • Must have excellent communication skills (verbal and written) • Proficient at Microsoft Office Suite programs • Ability to work in a self motivated environment with little supervision • Ability to manage the administration of multiple tasks at one time Salary range: CI$33,750.00 – CI$46,000.00 Please submit before:

HUMAN RESOURCES

July 27th, 2018

Attn: Manager, Electronic Financial Services HUMAN RESOURCES careers@fidelitycayman.com

Competitive compensation package will be commensurate with relevant those applications short listed will be contacted.

THE TRIBUNE

Thursday, July 19, 2018, PAGE 11

EU fines Google a record $5bn over mobile practices BRUSSELS Associated Press EUROPEAN regulators came down hard on another US tech giant yesterday, fining Google a record $5bn for forcing cellphone makers that use the company’s Android operating system to install Google search and browser apps.

The European Union said Google’s practices restrict competition and reduce choices for consumers.

While Google can easily afford the fine, the ruling could undermine the company’s business model, which relies on giving away its operating system in return for opportunities to sell ads and other products.

Google immediately said it will appeal, arguing that its free operating system has led to lower-price phones and created competition with its chief rival, Apple.

Android has “created more choice for everyone, not less,” Google CEO Sundar Pichai tweeted.

The fine, which caps a three-year investigation, is the biggest ever imposed on a company by the EU for anticompetitive behavior.

It is likely to stoke tensions between Europe and the US, which regulates the tech industry with a lighter hand and has complained that the EU is singling out American companies for punishment.

Still, some US politicians welcomed the ruling.

Democratic Sen Richard Blumenthal of Connecticut tweeted that the fine should “be a wake-up call” to the Federal Trade Commission and “should lead US enforcers to protect consumers”.

Blumenthal previously called on regulators to investigate how Google tracks users of Android phones.

In its ruling, the EU said Google broke the rules by requiring cellphone makers to take a bundle of Google apps if they wanted any at all.

The bundle contains 11 apps, including YouTube, Maps and Gmail, but regulators focused on three that had the biggest market share: Google Search, Chrome and the company’s app store, called Play Store.

The EU gave Google 90 days to come up with remedies that could allow rival

search apps and browsers onto more phones. Failure to comply risks a further penalty of up to $15m a day.

The EU also took issue with Google’s payments to wireless carriers and phone makers to exclusively preinstall the Google Search app.

It ruled, too, that Google broke the law by forcing manufacturers that took its apps to commit to not selling devices that use altered versions of Android.

EU Competition Commissioner Margrethe Vestager said that given the size of the company, the 4.34bn euro fine is not disproportionate.

The penalty is on top of a 2.42bn euro fine ($2.8bn) that regulators imposed on Google a year ago for favoring its shopping listings in search results.

Google’s parent company, Alphabet, made $9.4bn in profit in the first three months of the year and has over $100bn in cash reserves.

“The important thing is not to be distracted by the size of the fine. What is important is that Google has to change its abusive behavior,” said Rich Stables, CEO of the rival search engine Kelkoo.

Android is an opensource operating system that Google lets cellphone makers use for free. As a result, it is the most widely used system, beating Apple’s iOS. The EU wants to ensure that phone makers are free to pre-install apps of their choosing. It also wants cellphone makers to be able to more easily use altered versions of Android, like Amazon’s Fire OS. Google argues that letting phone makers choose their apps could hurt the company’s main means of making money through Android — advertising and the sale of content and apps. Apple, in contrast, makes most of its money from the sale of devices.

Giving phone makers more freedom to use altered versions of Android could also hurt Google. Samsung, a hugely popular maker of Android phones, could, for example, break off and take much of the Android system with it. Samsung had no immediate comment.

Daniel Castro, vice

president of the Information Technology and Innovation Foundation, a think tank in Washington, said the ruling “is a blow to innovative, open-source business models”.

The main complainant

against Google was FairSearch, a Brussels-based lobbying group that has been backed by Oracle, TripAdvisor and Nokia. It called the ruling “an important step in disciplining Google’s abusive behaviour”.

European regulators have set the pace in shaping rules for the tech industry.

The EU has clashed repeatedly with Microsoft over the years, fining it over its bundling practices and its promotion of its Internet

Explorer browser.

In 2016, the EU ruled that Apple was getting preferential treatment from the Irish government and demanded it pay $15bn in back taxes.

The EU has also tangled with Amazon and Intel.

PAGE 14, Thursday, July 19, 2018

THE TRIBUNE

US coal ash pollution rules eased after industry balks

THE RICHMOND city skyline can be seen on the horizon behind the coal ash ponds along the James River near Dominion Energy’s Chesterfield Power Station in Chester, Va. (AP) DENVER Associated Press THE Trump administration on yesterday eased rules for handling toxic coal ash from more than 400 US coal-fired power plants after utilities pushed back against regulations adopted under former President Barack Obama.

Environmental Protection Agency acting Administrator Andrew Wheeler said the changes would save utilities roughly $30m annually.

The move represents the latest action by Trump’s EPA to boost the struggling coal industry by rolling back environmental and public

MARKET REPORT WEDNESDAY, 18 JULY 2018

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

BISX ALL SHARE INDEX: CLOSE 1,983.94 | CHG -8.46 | %CHG -0.42 | YTD -79.63 | YTD% -3.86 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 19.17 7.50 4.00 1.48 0.19 4.00 9.16 6.60 5.30 11.93 2.71 1.77 8.21 6.21 11.50 7.29 13.67 13.00

52WK LOW 3.50 17.43 7.50 3.32 0.90 0.12 3.00 8.50 6.00 3.15 9.00 2.30 1.40 7.25 6.00 9.50 5.67 3.25 12.50

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

1050.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

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

PREFERENCE SHARES

1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00

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

E J K L M N

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y

BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407

BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

MUTUAL FUNDS 52WK HI 2.15 4.16 2.00 179.39 157.58 1.55 1.70 1.64 1.10 6.99 8.54 6.15 10.52 11.46 10.46

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.49 1.62 1.58 1.07 6.41 7.62 5.66 8.65 10.54 9.57

LAST CLOSE 4.45 17.43 9.09 4.00 1.01 0.18 3.00 9.13 6.14 4.13 11.40 2.87 1.75 7.91 6.10 11.50 6.32 3.65 13.00

CLOSE 4.45 17.43 9.09 4.00 1.01 0.18 3.00 9.13 6.14 4.09 11.40 2.87 1.75 7.80 6.10 11.25 6.32 3.65 13.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.04 0.00 0.00 0.00 -0.11 0.00 -0.25 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00

CLOSE 100.00

CHANGE 0.00

108.53 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

-0.09 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

108.62 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund

VOLUME

8,150

2,000

VOLUME

EPS$ 0.361 0.932 -0.306 0.283 -0.973 0.000 -0.996 0.638 0.573 0.171 0.627 0.102 0.231 0.000 0.545 0.679 0.610 0.277 0.631

DIV$ 0.100 1.130 0.000 0.230 0.000 0.010 0.000 0.320 0.220 0.120 0.620 0.060 0.070 0.084 0.320 0.500 0.200 0.120 0.580

P/E 12.3 18.7 N/M 14.1 N/M N/M -3.0 14.3 10.7 23.9 18.2 28.1 7.6 N/M 11.2 16.6 10.4 13.2 20.6

YIELD 2.25% 6.48% 0.00% 5.75% 0.00% 5.56% 0.00% 3.50% 3.58% 2.93% 5.44% 2.09% 4.00% 1.08% 5.25% 4.44% 3.16% 3.29% 4.46%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

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

INTEREST Prime + 1.75% 6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%

NAV 2.15 4.12 2.00 179.39 153.02 1.55 1.69 1.64 1.09 7.24 8.28 6.46 11.16 11.65 10.26

YTD% 12 MTH% 1.55% 4.09% -0.45% 4.34% 0.84% 2.31% 0.39% 5.05% -0.25% 4.57% 1.29% 4.18% -0.61% 2.84% 1.02% 3.84% -0.87% 1.82% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69%

MATURITY 19-Oct-2022 20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022 NAV Date 31-May-2018 31-May-2018 31-May-2018 31-Mar-2018 31-Mar-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018

MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings

YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225

health protections enacted under his predecessor.

It pushes back the deadline to close problematic ash dumps and gives state regulators flexibility in how they deal with the massive waste piles that result from burning coal for electricity.

Environmentalists argued the administration is endangering the health of people living near power plants and ash storage sites, while industry representatives welcomed the announcement.

US coal plants produce about 100 million tons annually of ash and other waste, much of which ends up in unlined disposal ponds prone to leak.

Some have been in use for decades.

Data released by utilities in March under an EPA mandate showed widespread evidence of groundwater contamination at coal plants. Heightened levels of pollutants — including arsenic and radium in some cases — were documented at plants in numerous states, from Virginia to Alaska.

EPA documents show most savings for utilities from the new rules will come from extending by 18 months the deadline to close ash dumps that don’t meet water protection standards. The new deadline is Oct 31, 2020.

The utility industry said the changes give “regulatory certainty” for ash dump operators. That’s in part because it aligns the closure requirements with upcoming guidelines

limiting the levels of toxic metals in wastewater discharged from power plants.

The changes also give state regulators the power to suspend monitoring requirements for dumps that don’t meet water quality standards.

“It’s not like EPA has granted us free pass here.

It just gives us additional time to operate those facilities and better synch them up” with the upcoming wastewater guidelines, said James Roewer, executive director of the Utility Solid Waste Advisory Group, an industry organisation that had pushed for the changes.

The original, Obamaera rule, adopted in 2015, came in response to a massive 2008 coal ash spill in Kingston, Tennessee. A containment dike burst at a Tennessee Valley Authority power plant and released 5.4 million cubic yards of ash.

The accident dumped waste into two nearby rivers, destroyed homes and brought national attention to the issue.

Attorney Larissa Liebmann with the Waterkeeper Alliance said the costs saved by utilities won’t simply go away. Instead, she said, they’ll be borne by communities that are forced to deal with contaminated water.

“We think it’s fundamentally unfair, Liebmann said.

“The rules that were created in 2015 were already very much to the bare minimum.”

NOTICE

NOTICE is hereby given that ST. GILBERT BLANC of Bailey Town, Bimini, 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 12th day of July, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

THE TRIBUNE

Thursday, July 19, 2018, PAGE 15

Auto industry cries foul as Trump moves toward car tariffs

WASHINGTON Associated Press HAVING started a trade war with China and enraged US allies with steel tariffs, President Donald Trump is primed for his next fight. He is targeting a product at the heart of the American experience: cars.

Trump’s latest plan is to consider slapping tariffs on imported autos and auto parts — a move he says would aid American workers but that could inflate car prices, make US manufacturers less competitive and draw retaliation from other nations.

The action has also begun to provoke a backlash among member of Congress, who have so far been reluctant to challenge Trump policies that are upending decades of US policies.

Today, manufacturers, suppliers, car dealers and foreign diplomats will line up to testify at a Washington hearing to try to head off auto tariffs. After the hearing, the Commerce Department will decide whether to label imported vehicles and auto parts a threat to America’s national security and whether to recommend tariffs to the president.

In announcing the auto investigation in May, Commerce Secretary Wilbur Ross had said, “There is evidence that, for decades, imports from abroad have

PRESIDENT DONALD TRUMP eroded our domestic auto industry.”

Yet even General Motors, which ostensibly would benefit from a tax on its foreign competition, is opposed to Trump’s plan.

And even considering the administration’s trade war with China over Beijing’s predatory practices in hightech industries and even after imposing tariffs on steel and aluminum imports from America’s closest allies, Trump’s auto tariffs raise the ante substantially: The US last year imported $192bn in vehicles and $143bn in auto parts — figures that dwarf the $29bn in steel and $23bn in aluminum imports and the $34bn in Chinese goods the administration has so far hit with tariffs.

“This is really taking it up one gigantic notch,” said Mary Lovely, a Syracuse University economist who studies trade. “I do think it may be a bridge too far.”

In the Senate, Democrat

Doug Jones of Alabama and Republican Lamar Alexander of Tennessee have announced plans to introduce legislation opposing Trump’s proposed 25 percent auto tariffs. Both warned that the tariffs threaten tens of thousands of jobs in their states.

“Foreign automobiles and auto parts are not a threat to our national security,” Jones said. “But you know what is a threat? A 25 percent tax on the price of these imported goods.”

Nor is America’s auto industry itself crying for help against foreign competition. US auto sales reached 17.2 million last year — the fourth-best haul on record.

Since the end of the Great Recession in 2009, US automakers and parts suppliers have added 343,000 jobs.

Despite Trump’s threat, the auto trade war might not happen anytime soon, if at all. The president might be angling to use the tariffs

to pressure the European Union to lower its own auto tariffs or prod Mexico to agree to a rewrite of the North American Free Trade Agreement more favorable to the United States.

“I’m hoping it’s just bluster,” said Paul Ritchie, owner of Honda and Kia dealerships in Maryland and Pennsylvania. “I understand where the administration is coming from. Our trade imbalances should be corrected. I’m not sure you can take 25-30 years of neglect on trade imbalances and try to fix it in six months.”

Even if the auto tariffs aren’t just a negotiating ploy, it could take time before they kick in: It took ten months for the steel and aluminum tariffs — also justified on national security grounds — to go from proposal to reality.

In targeting steel, aluminum and perhaps autos, the administration has weaponized an obscure provision of trade policy: The Trade Expansion Act of 1962 empowers a president to impose unlimited tariffs on particular imports if the Commerce Department finds that those imports threaten national security.

The administration has defined national security broadly, suggesting that anything that hurts US economic competitiveness damages national security — “an argument you can apply to any industry you want”, noted Philip Levy, senior

NOTICE EXXONMOBIL NEW ZEALAND (OFFSHORE BASINS) LIMITED Pursuant to the provisions of Section 138 (8) of the International Business Companies Act 2000, notice is hereby given that the above-named Company has been dissolved and struck off the Register pursuant to a Certificate of Dissolution issued by The Registrar General on the 5th day of July, 2018 Dated the 19th day of July, A.D., 2018.

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Lynn Kelly and Halson Ferguson LIQUIDATORS c/o EFG Bank & Trust (Bahamas) Ltd Goodman’s Bay Corporate Centre, 3rd Floor West Bay Street and Sea View Drive P.O. Box CB 10956

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fellow at the Chicago Council on Global Affairs and a former White House trade adviser.

Automakers, in the meantime, have warned that tariffs would raise their costs — and their customers’. In

comments filed with the government, GM warned that that “increased import tariffs could lead to a smaller GM, a reduced presence at home and abroad for this iconic American company, and risk less —not more — US jobs”.