07302018 business

business@tribunemedia.net

MONDAY, JULY 30, 2018

$4.94 Bahamas to miss ‘upward swing’ in GDP on VAT hike

A FORMER finance minister fears The Bahamas may miss out “on a really good upward swing” in GDP growth as a result of the VAT rate hike and other budget measures.

James Smith, pictured, also an ex-Central Bank governor, told Tribune Business that “all the macroeconomic indicators” indicated The Bahamas was poised for a strong economic rebound prior to the latest fiscal consolidation moves.

While acknowledging that it might take until year-end to determine the precise impact of 12 percent VAT, Mr Smith said there was already “anecdotal evidence” that Bahamian companies had decided to hold-off on further investment and expansion “until the dust settles”.

He also echoed warnings that VAT’s initial inflationary impact could be made worse by the so-called “trade wars” between the US and other large economies, particularly China, given that the imposition of tariffs by both sides will drive up prices for the vast majority of goods imported

by The Bahamas.

Mr Smith, who held the finance ministry post between 2002-2007, reiterated that he would have held off increasing the VAT rate by 60 percent to see what impact Baha Mar’s full opening had on the Bahamian economy and government revenues.

“What is really unfortunate is that we were on the verge of a really good turnaround, an upward swing, because all the macroeconomic indicators were looking good,” Mr Smith told Tribune Business. “It’s been detracted from in a way because investors are still waiting for the dust to settle.

“The greatest impact of a tax hike is not sometimes the increase in prices across the board, but the attack on confidence of consumers and businesses. The first reflex action is to stop and see, meaning holding off

SEE PAGE 5

$4.94

Tax hike ‘shockwaves’ hit high-end properties

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

$4.99

F

OREIGN investors were yesterday said to have halted construction projects, with some threatening to sell their highend properties, as the “shockwaves” from budget tax changes hit home.

Robert Myers, the Organisation for Responsible Governance’s (ORG) principal, told Tribune Business that much of The Bahamas’ second home market “is dead” unless the government “clarifies” the real property tax hikes stemming from the changed “owner-occupied property” definition.

He described the Real Property Tax Act

* Investors halt expansions, looking to sell * Second home market ‘dead’ without cap * Gives impression Bahamas ‘radical’ on tax

ROBERT MYERS amendments, which accompanied the budget, as “bad policy” that could undermine GDP growth given its potential impact on high-end communities in

New Providence as well as the Family Islands that are especially reliant on the second home industry.

Many realtors have suggested that the impact from the changes is too early to determine, but Mr Myers, whose construction, landscaping and other businesses draw heavily on a client base provided by western New Providence’s gated communities, said they were already undermining confidence and certainty among many second homeowners.

While acknowledging there was nothing wrong with the government seeking more taxes from the

A CABINET minister yesterday revealed he is pushing for a “threshold mechanism” to address a regulatory “quirk” that aids rogue pilots in the Bahamian aviation industry.

Dionisio D’Aguilar, minister of tourism and aviation, told Tribune Business he was eyeing a system where the number of monthly flights was used to determine whether a pilot was offering commercial services and carrying paying passengers.

DIONISIO D’AGUILAR

By NEIL HARTNELL and NATARIO McKENZIE Tribune Business Reporters

purpose of a flight, describing this as “a problem that needs to be addressed” given that it provides obvious cover for “hackers” and illegal charter operators that lack the necessary licences.

“There is this kind of quirk in the regulations that allows the pilot to determine the purpose of the transport, and if the people they are flying are

SEE PAGE 6

SEE PAGE 8

second home market, the ORG principal warned that the budget-induced changes had effectively crossed a fine line and were threatening to “scare people off”.

He warned that the impact would trickle down to Bahamian businesses and employees reliant on this sector, with the magnitude of the tax hike giving some foreign investors this nation is “radical” when it comes to taxation.

“We must make sure the budget doesn’t create any hurdles when it comes to the ease and cost of doing

SEE PAGE 7

* Minister targets ‘quirk’ that aids hackers * Says: ‘Let’s deal with this once and for all’ * Wants industry ‘legal, not out of business’ Disclosing that he had instructed the Bahamas Civil Aviation Authority (BCAA) to deal with the problems posed by so-called hackers “once and for all”, Mr D’Aguilar said a benchmark related to flight frequency was required to eliminate what he described as a regulatory loophole.

The Minister explained that the pilots themselves are responsible for determining, and declaring, the

Stubborn jobless rate shows ‘growth focus’ need THE Bahamas needs a “more significant focus” on economic growth to further dent a national unemployment rate that remains stubbornly flat - and high at ten percent.

Robert Myers, the Organisation for Responsible Governance’s (ORG) principal, yesterday suggested the May Labour Force survey results show that while the economy is growing fast enough to absorb new workforce entrants, it is not expanding quickly enough to achieve both this and reduce the existing numbers of unemployed.

With one in ten Bahamians seeking work still unable to find it, Mr Myers called for a renewed focus by government on proGDP growth policies that improve the ease, and reduce the cost, of doing business for local firms.

“In my opinion, clearly the focus on growth needs to be more significant,” he told Tribune Business, “and that means focus on the ease and cost of doing business must be more significant.

“It’s an indication that GDP is not growing fast enough. We obviously need to see that [unemployment] number decline. There’s a correlation between employment and GDP, with growth in the latter being a good thing.

“We need GDP growth to be about 5.5 percent, but we’re not going to get there overnight. Ideally, you’d

‘Flights threshold’ to combat rogue pilots

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

$4.94

Oil explorer extends JV talks one month

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net AN OIL explorer has touted the one-month extension of exclusive talks with a “major oil company” over a Bahamian well joint venture as “a clear indication of progress”.

Bahamas Petroleum Company (BPC), in a statement to the markets, said the unnamed oil company had agreed to extend their confidentiality and exclusivity agreement by another month until September

* BPC: ‘Clear indication of progress’ * But no guarantee of deal success * Now have until September’s start 1, 2018. The two parties had signed a three-month deal on May 1, 2018, which was due to expire on Wednesday.

Their agreement allows the two sides to extend the exclusivity period on a month-by-month basis for up to three months.

With the first option exercised, two more potentially

remain over talks on forming a joint venture to spud an exploratory well in Bahamian waters southwest of Andros, close to the maritime boundary with Cuba.

Simon Potter, the Bahamas Petroleum Company’s (BPC) chief executive, did not respond to calls and messages seeking comment

before press time last night. However, he said in a company statement: “The election to extend the period where BPC and the counterparty are to work exclusivity together on technical and commercial matters for a further month is a clear indication of continued progress in our efforts to conclude a transaction covering our highly prospective assets in The Bahamas.”

BPC has already received cash payments totalling $750,000 for the three-month exclusivity

to-date, and is now set to receive a further $250,000 for the additional month’s extension. It’s agreement with the “oil major” requires that it be paid $250,000 per month.

“The terms of the agreement (as extended) require BPC and the counterparty to continue to work exclusively together to finalise a detailed technical evaluation of the company’s licences, and seek to develop a

SEE PAGE 8

PAGE 2, Monday, July 30, 2018

THE TRIBUNE

BAHAMAS UNBLOCKS EDUCATION QUALIFICATIONS WITH BLOCKCHAIN THE BAHAMAS has become the first country in the Caribbean and Latin American region to implement a national credentialing system using blockchain technology.

The government successfully completed a pilot project, Bahamas Blockcerts, which will improve the national system of creating, issuing, viewing and verifying national education qualifications of various types. This could ultimately include training certificates, academic diplomas and degrees, business licenses and tax compliance certificates, and other credentials.

The Bahamas’ National Training Agency (NTA) issued its first Bahamas Blockcert on June 28, 2018, for 78 participants graduating from the “Workforce Preparatory Programme” for training in soft skills and workplace dynamics. This course provides the foundation for participation the National Apprenticeship Programme.

These Bahamas Blockcerts are nationallyaccredited digital certificates that use blockchain technology. The Inter-American

Development Bank (IDB) provided a grant to the government to sponsor the pilot project, which officially began in April 2018.

The technology underpinning the system was developed by the Massachusetts Institute of Technology (MIT). The government engaged Learning Machine, an MIT-based specialist, to supply the technology locally.

In less than three months, the NTA was set up on the government’s new Blockcert platform. Moving forward, the NTA will issue Bahamas Blockcerts for all its workforce readiness and skills training courses, which are provided to hundreds of unemployed Bahamians and those wishing to sharpen their skills.

NTA participants are now the first Bahamians to acquire their digital portfolios with nationally accredited Bahamas Blockcerts.

These Bahamas Blockcert Portfolios are stored on a free mobile app.

They contain a collection of website links (URLs) that uniquely identify each digital certificate inside the portfolio.

Instead of needing paper

FROM left: Marlon Johnson, acting financial secretary, Ministry of Finance; Cecilia Strachan, permanent secretary, Department of Labour; Dion Foulkes, minister of labour; K Peter Turnquest, Deputy Prime Minister and minister of finance; Michael Nelson, IDB’s acting country representative; Timyka Davis, IDB labour market specialist. certificates, individuals with Bahamas Blockcerts can simply add a list of website links in their resumes that coincide with their various NTA certificates, or they can send the link in an e-mail to an employer or other institution for free viewing and verification. That means no more travelling around to physically pick up and drop off paper certificates, and eliminates having to scan paper documents or fight bureaucracy.

The NTA is currently the only agency able to issue a Blockcert for the Bahamas Blockcert Portfolio.

However, up to 23 national agencies could be integrated into the national platform.

Initial discussions are underway to have the Bahamas Technical and Vocational Institute (BTVI) brought on to the system next. The Ministry of Finance also plans to onboard the Department of Inland Revenue (DIR). In

the future, other agencies such as the University of the Bahamas (UB) and the National Insurance Board (NIB) could be included.

In all cases, instead of paper certificates, a Bahamas Blockcert Portfolio would contain shareable digital certificates that can easily and freely be viewed and verified using secure blockchain technology from anywhere in the world.

Michael Nelson, the IDB’s acting country representative for The Bahamas, said: “A key message here is that the government of The Bahamas has begun taking strong steps to alleviate legacy bureaucratic challenges faced by its citizens by incorporating innovative frontier technologies, such as blockchain-based technology. In doing so, The Bahamas is setting the stage to increase its competitiveness, productivity and economic

growth trajectory.”

“The potential for this technology is truly transformative. We piloted the initiative with the NTA, but the vision is to have Bahamas Blockcerts form a core part of the government’s National Blockchain Strategy. We are talking about using the technology for citizen security, to improve the land registry and a host of other initiatives,” said Dion Foulkes, minister of labour.

“Based on the plan, we will upgrade the government’s digital infrastructure and put the systems in place to bring our vision of a digital government - a digital Bahamas - to life. This is not likely to happen in its entirety within the next year, maybe not even the next two years, but we have started already and The Bahamas is already at the vanguard.

“We are leading this effort in the region, and the NTA pilot is the perfect proof of concept. It demonstrates

how the government can scale the implementation of the blockcert component across other institutions.”

Natalie Smolenski, Learning Machine’s senior vice-president of business development, said: “Our experience working with governments has shown that bringing in Learning Machine means investing in your people.

Not only do citizens receive digital documents that they own for a lifetime, and are interoperable with multiple identity platforms, but Learning Machine puts skin in the game by being on the ground and working with local stakeholders to make every project a success.”

The Ministry of Labour was the executing agency for the pre-pilot. The Ministry of Finance will spearhead the National Blockchain Strategy Committee, and the integration of the Blockcert project with the government’s Ease of Doing Business initiatives. The first meeting of the committee is planned for early September. One of the first objectives is to identify key economic and social performance indicators to document overall strategic success.

“The technology to bring these ideas to life is ready to go. We simply need a plan in place that clearly outlines our desired economic and social outcomes, and all of the steps along the road.

For the Bahamas Blockcerts component we have a road map, but we will expand on that as part of the National Blockchain Strategy,” said K Peter Turnquest, Deputy Prime Minister and minister of finance.

OFFICE MANAGER A vacancy exists in the Company for the position of Officer Manager, Abaco.

The incumbent will achieve Company objectives by: • Monitoring goods and services procurement to ensure value for money; • Developing short and long term objectives and plans; • Maintaining asset register; • Preparing and submitting financial reports to area Managers, Directors and Chief Financial Officer; • Managing the office staff for efficient and effective operation of the Accounts Office; • Reviewing consumer accounts functions; • Investigating consumer grievances; • Reviewing accounts payable and receivable functions; • Performing reconciliation of bank and general ledger accounts; • Monitoring inventory control.

Job requirements include but not limited to: • A Bachelor’s degree in Accounting with CPA certification or equivalent qualifications; • A minimum of 5+ years’ experience; • Management accounting skills; • Good time management skills; • Knowledge of GAAP; • Good analytical and reporting skills; • Good customer relations skills; • Knowledge of accounting software packages and computer accounting systems; • Knowledge of reconciliation process including bank and general ledger.

Interested persons should apply to Afuture@bplco.com on or before: July 31, 2018.

Only candidates meeting the criteria will be contacted.

THE TRIBUNE

GOVT ‘TALKING’ ON NATIONAL LOTTERY * LOOKING AT USING EXISTING MARKET PLAYERS

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE “conversation” has started within government on the creation of a National Lottery, according to the deputy prime minister.

“I want to make millionaires, and we do that by taking risk and being creative. A National Lottery gives the opportunity to make millionaires overnight. Right now that power is in the hands of seven people, and they are making millions every other day,” said KP Turnquest, pictured, during a Friday presentation to the Raotary Club of East Nassau.

“There is such emotive sentiment that goes with this idea of lottery and gaming that governments have been reluctant to a take firm position,” he added. “I can say the conversation has started where we are looking at options to use the existing framework for the government to create its own game, utilising existing infrastructure and existing franchisors in the market. There is thinking that is going behind that subject, but it’s too early to say what that would look like.”

Obie Wilchcombe, former tourism minister, said in a recent interview that a National Lottery could generate $150-200m per annum.

Mr Wilchcombe, who had responsibility for gaming under the former Christie administration, argued that a National Lottery would not only be an attractive sell to Bahamians but could also capture at least a million of the five to six million annual tourists who visit The Bahamas.

He added that the revenue generated could be used to fund educational, healthcare, sports and cultural programmes.

Monday, July 30, 2018, PAGE 3

Grand Lucayan’s fate decided ‘in 30 days’

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net KEY decisions on the Grand Lucayan resort’s future will be made “in 30 days”, the deputy prime minister says, amid growing suggestions the government will be forced to step in and acquire the property.

K Peter Turnquest, speaking at a recent meeting of the Rotary Club of East Nassau, said: “There isn’t much I want to say about that at this time. We have put some timelines on the negotiations with respect to that. I can say with reasonable assurance that 30 days from now you will know exactly what the answer is.

That’s all I can say about that.”

His comments come amid rising talk that the Wynn Group’s $70m deal to purchase Freeport’s anchor resort property will not proceed, leaving the government facing the prospect of having to acquire the hotel itself unless it can

put together a new deal or another buyer suddenly emerges at “the 11th hour”.

The 30-day deadline likely relates to warnings from CK Property Holdings, the entity into which all Hutchison Whampoa’s real estate assets were placed, that it plans to close the one Grand Lucayan property still open by end-September and walk away if no buyer is found.

Mr Turnquest had previously pledged to Tribune Business that “the hotel will not close”.

The government had allocated $25m in the 2018-2019 budget to an equity stake in the Grand Lucayan’s purchase, estimated to be around 20 percent, plus fund the provision of airlift and marketing support.

The strategy for re-opening and revitalising the Grand Lucayan had always seen Wynn solely as the ‘real estate owner’, with a variety of hotel and casino brands operating the property on its behalf as part of the government’s drive to convert the area into a true destination

that is no longer reliant on taxpayer subsidies.

However, well-placed sources previously revealed to Tribune Business that the government was exploring alternative buyers to Wynn amid suspicions its deal as structured “is not going to work” and “doesn’t make sense” - especially given the added pressure from CK Property Holdings warning that it will walk away.

“Wynn is expecting the government to pay for it, and they walk in as owner,”

one contact, speaking on condition of anonymity, told Tribune Business. “I can tell you the government isn’t interested in that, and has no choice but to start to look for another buyer immediately.

“Hutchison [CK Property Holdings] has said that come September that’s it for all of it. Hutchison has confirmed that, in very short order, it will close the entire plant down. The tower and 200 rooms in the Lighthouse Point.

“The government of The Bahamas is going to have no choice but to step in and quite literally take over operations of that hotel regardless of what the cost may be.”

The Grand Lucayan’s post-Matthew closure has resulted in much of the property being shuttered for 21 months, causing the loss of over 1,000 jobs and 59 percent of Grand Bahama’s hotel room inventory - effectively taking the island off the stopover tourism map.

A Critical Thinker, Analytical, and a Passion for Problem-Solving

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Fidelity Bank invites applications for the position

ASSOCIATE INTERNAL AUDITOR Job Summary: Fidelity Bank is currently recruiting for an Associate Internal Auditor to audit, conduct business process reviews and perform fraud investigations. With functional report to the Manager, Internal Audit, this role includes compliance responsibilities and support for various cross functional partners. This is a high visibility role on a small team, and provides the successful candidate with an opportunity to contribute to the organizations’ control environment and exposure to many business areas.

Main Duties and Responsibilities: • • • • •

Conduct financial and operational audits.

Conduct internal investigations of company violations and other legal matters.

Diagnose operational risks and process improvement opportunities.

Provide recommendations to improve financial and operational controls.

Develop reports and presentations on audit findings, results and recommendations.

Requirements / Qualifications: • • • • • • • •

Bachelor’s Degree in a business-related field Minimum 2 years’ experience in the Financial Services Industry Excellent communication skills (verbal and written) Ability to prioritize, meet tight deadlines and work well under pressure Ability to work flexible hours in a self-motivated environment Independent worker Ability to manage the administration of multiple tasks at one time Highly organized

Please submit before:

HUMAN RESOURCES

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Attn: Associate Internal Auditor HUMAN RESOURCES careers@fidelitybahamas.com

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

PAGE 4, Monday, July 30, 2018

THE TRIBUNE

COMPLIANCE OFFICERS TARGET REGIONAL UNITY THE BAHAMAS Association of Compliance Officers (BACO) newlyinstalled executive team is aiming to foster regional unity to ensure the financial services industry meets global standards.

“Regional cohesion and assisting the financial services sector in ensuring that the business and products produced are resilient, and meet international standards, must be the first order of business,” said attorney

Cheryl Bazard, pictured, who assumed the two-year presidency last month.

Mrs Bazard has effectively come full circle, as she is again taking the helm of an organisation she founded exactly 20 years ago ahead of The Bahamas’ “blacklisting” in 2000 by the Financial Action Task Force (FATF).

That resulted in the Ingraham administration executing a widespread overhaul of the financial services sector’s regulatory

regime, with the introduction of key legislation to enhance supervision and deter money laundering and other criminal abuses.

Two decades later, and The Bahamas yet again the jurisdiction finds itself under fire, this time from the Organisation for Economic Co-Operation and Development (OECD) and the European Union (EU).

The latter placed this nation on a “blacklist” of noncooperative tax jurisdictions before eventually removing it.

“We are quite aware that foreign policy decisions, economic relations, development co-operation and foreign investment inflows are hampered when a nation is deemed non-compliant.

In these scenarios, the downsizing, or loss even, of financialinstitutionsposeareal threat,” said Mrs Bazard.

“However, BACO has always been on the cutting edge, and we are again seeking to take the lead by becoming a self-regulated organisation that grows relationships not only regionally but internationally.”

With the focus on managing regulatory risk expected to increase, compliance officers have a key role to play in ensuring financial institutions are more transparent and able to withstand scrutiny locally and internationally.

BACO’s executive team has an average of 20 years in the compliance field, dealing with areas such as wealth management, private banking, commercial banking, trust and corporate, investment banking, gaming, and money and consultancy services.

“As compliance practitioners it’s imperative that

we safeguard our institutions and, by extension, the industry from the dangers of abuse. For too long we’ve been reactive. It’s time to get proactive,” Mrs Bazard said.

BACO’s newly installed executive team includes: Cheryl Bazard, president; Maria Dorsett, executive vice-president; Endric Deleveaux, vice-president; Esther Johnson, secretary; Todney Marsh, treasurer; Cheryl Fox, assistant treasurer; Denora Marshall-McPhee, education committee chair; Shaniqua Woodside, administration committee chair; Siobhan Lightbourn, membership committee chair; Rayneth Darling, public relations/social committee chair.

Mexico president-elect: $16bn to boost oil output MEXICO CITY Associated Press MEXICO’S presidentelect announced a $16bn

investment plan on Friday to boost flagging oil production, refinery capacity and electrical generation.

Andres Manuel Lopez

NOTICE TO THE GENERAL PUBLIC

This is to advise that the Bahamas Civil Aviation Authority, Corporate Services (Accounts and Human Resources) main line 397-4700 is presently down.

We apologize for any inconvenience caused.

Numbers to contact the Bahamas Civil Aviation Authority in the interim are as follows: 823-5488- Office of the Director General 376-3608- Corporate Services 824-9828- Quality Assurance 376-0830- Safety Oversight Department 427-4963/826-6821- Aviation Security & Facilitation 823-5486 - Manager of State Safety Programme

Obrador said the country must act “urgently” to reverse a decline that saw crude output drop to 1.88 million barrels per day in the first half of 2018, down from 3.4 million barrels per day in 2005.

Lopez Obrador pledged to increase production by 600,000 barrels per day in two years. He said about $9.5bn in investment would be made in 2019, with more in ensuing years to upgrade existing refineries, build a new one, and support oil exploration. He said he will also upgrade hydroelectric and power generation plants.

State-owned oil company Pemex on Friday reported on a 163 billion peso ($8.7bn) net loss for the second-quarter. It attributed the loss to the depreciation of the peso against the dollar.

Lopez Obrador, who will take office on Dec 1, named Octavio Romero, an agronomist, to head the state-owned oil company Petroleos Mexicanos.

In announcing the plan, the president-elect added that the office work he has been doing since his victory in the July 1 elections was not his thing.

He said will be going to the Usumacinta river near the Guatemala border to do “field work” and talk to farmers.

MAP DIRECTIONS

Eastern Road Entrance House on the corner orange and white

PUBLIC AUCTION

LOT 22 BLACKBEARD’S TERRACE SUBDIVISION

EASTERN ROAD

NOTICE

ANY PRICE OR ANY OFFER WILL BE CONSIDERED To be sold by Public Auction pursuant to the Writ of Execution of the Honourable Madam Registrar of the Supreme Court of the Commonwealth of The Bahamas, dated the 22 November 2017 in Supreme Court Action number CLE/gen/00041 of 2017.

Description:- 3-4 Bedrooms 3 Bathroom, Just off Eastern Road, Recently Built Home. (Details without guarantee) The above particulars and any further particulars that may be given with regard to the Property and Home at Lot 22 Blackbeard’s Terrace Subdivision are and will be given in good faith, but no responsibility and/or liability will be accepted for their accuracy. Purchasers must make their own independent enquires.

All Bids may be submitted in a Sealed Envelope by Monday 30 July 2018: To Rolle & Rolle, No 13, Seventh Terrace West, Centreville, Nassau, Bahamas, by hand delivery. (Same Street as Xerox) The winning bidder must present Twenty-five (25%) of the purchase price/deposit at the time of the winning auction. The balance is to be paid within Twenty-one (21) days thereafter. All deposits are nonrefundable. Price analysis for homes in Blackbeard’s Terrace Subdivision can be obtained from reputable Real Estate Agents. The Provost Marshall reserves the right to reject any and all bids.

The sale is made without warranty as to condition or fitness for any purpose; that interested parties should make their own enquiries as to title and satisfy themselves of all rights and liabilities or other burdens which may attach to the land; that the sale is subject to the reserve price; that only unconditional bids will be accepted.

THE TRIBUNE

Monday, July 30, 2018, PAGE 5

BANK AND TRUST SECTOR CONFIRMS BOARD LINE-UP THE Deputy Prime Minister, K P Turnquest, gave the keynote address to the Association of International Banks and Trust Companies in The Bahamas (AIBT) recent Annual General Meeting.

Bruno Roberts of The Private Trust Corporation, and Ivan Hooper of Winterbotham Trust Company, will continue as AIBT co-chairs for another two-year term. Jan Mezulanik, of Pictet Bank & Trust, is deputy chairman, and Jean-Marc Fellay of Gonet Bank & Trust (Bahamas), will be treasurer.

Anastacia Johnson, AIBT’s executive administrator, continues to serve as Board Secretary. The nominations

of Miles Evans, of Clairmont Trust Company; Fabrizio Tuletta of EFG Bank & Trust (Bahamas); and Rochelle Rolle of Julius Baer Bank & Trust (Bahamas) were also accepted. They will serve as directors for the 2018-2020 term.

The Board was rounded out with the renewal of two-year terms for Shira Newbold of Intertrust (Bahamas); Christine Russell of Corner Bank (Overseas); Antoinette Russell of Credit Suisse Trust; Daniel-Marc Brunner of Syz Bank & Trust; and Bernard Sechaud of UBS (Bahamas).

AIBT said it had maintained its commitment to the growth and development of the financial services industry through ongoing professional

development, industry collaborations and constructive engagement with regulators and policymakers.

Its signature event, the Nassau Conference, held its 12th annual gathering last October with strong support from the corporate community and industry professionals at all levels. The Financial Services Bootcamp, now an annual event held the day before the Nassau Conference, has become a refresher for both longtime professionals and newcomers to the sector.

AIBT also continued its investment in future professionals by placing four additional University of The Bahamas students in six-week summer stays at several member firms, as well as sponsoring two

BAHAMAS TO MISS ‘UPWARD SWING’ IN GDP ON VAT HIKE

because the stuff we import, they consume,” the nowCFAL chairman added, emphasising that The Bahamas “certainly doesn’t need” a strike by a major hurricane while it adjusts to the 20182019 budget measures.

“I have some problems with the timing of it,” Mr Smith told Tribune Business of the VAT increase. “Bear in mind we’ve been looking for five years at the completion of one of the largest resorts in the Caribbean to give us the boost we need coming out of recession.

“That was Baha Mar. We will never be able to measure the real impact of Baha Mar, because as soon as it opened its doors you changed the tax rate... My view was, then and now, even if there was a demonstrated need for a tax increase across-the-board, I would have waited until the major economic correction we were waiting for, and see how it played out for another year.”

Mr Smith said Baha Mar’s economic impact should have been allowed to determine the VAT rate increase’s magnitude and, indeed, whether it was necessary. “That would determine how much more revenue you think you need going forward, which begs the question of whether the VAT increase was to plug a deficit or part of a plan to jump to the WTO down the road,” he added.

The Minnis administration has consistently argued that the VAT hike, and other budget revenue-raising measures, are painful but necessary to stop “kicking the can down the road” on eliminating the annual fiscal deficits that The Bahamas has run since independence.

It was also “caught between a rock and a hard place”, faced with a total of $360m in unfunded bills for which there was no money

to pay them, and the Fiscal Responsibility Bill’s target of reducing the fiscal deficit to maximum 0.5 percent of GDP by 2020-2021.

Mr Smith, though, expressed doubt that the government will see the $400m gross VAT revenue increase it is projecting. “We won’t know with any measure of confidence the intake, whether it is up as high as expected, because when you raise prices it doesn’t yield one:one the amount of revenue you’re thinking,” he explained.

“As the quantity of goods imported shrinks in proportion to the increase in rate, the impact may not be what you’re projecting.”

The former minister also expressed concern that real estate FDI will be negatively impacted by the changed “transfer tax” structure, which has reverted back to ten percent stamp duty and abandoned the previous 7.5 percent VAT/2.5 percent stamp duty split.

This means that real estate sales are now treated as VAT “exempt”, leaving developers unable to recover the levy on their inputs - a development that will likely result in increased taxation and costs being passed on to purchasers.

Mr Smith said real estate investments represent “a substantial part of our FDI”, and added: “I think some of them [developers] will be getting a slight loss on property in the pipeline. When they committed to pre-contracts, their projects would have included 7.5 percent VAT and lower stamp duty, and that’s how they pre-sold units.

“Most FDI going into real estate is for condos pre-sold before they put their first holes in the ground. That is predicated on the tax structure in The Bahamas, but that got changed and I’m sure that left them with a little taste.”

FROM PAGE ONE on this purchase or investment. There’s no doubt about that, if you listen to the number of businesses changing their minds on expansion plans.”

BISX-listed AML Foods, the food retail and franchise group, previously told this newspaper it is deferring vertical construction of any new stores until the business environment becomes more certain, with The Bahamas’ pending accession to full membership in the World Trade Organisation (WTO) also influencing its decision.

Boosted by Baha Mar’s opening, and construction activity related to foreign direct investment (FDI) inflows, the International Monetary Fund (IMF) previously forecast that the Bahamian economy will grow by 2.5 percent this year - its fastest expansion rate in a decade. The momentum was predicted to carry over to 2019 with 2.2 percent GDP growth.

Those projections, made pre-VAT rate increase, will now be subject to doubt.

The government, though, is seemingly banking on a combination of Baha Mar, increased FDI and improved stopover tourism numbers to offset the impact of VAT sucking an extra $400m out of consumers’ disposable income.

Mr Smith, though, said any VAT-induced price rises will ultimately be passed on to The Bahamas’ stopover visitors once the hotel industry’s “transition period” ends and the tax increase works its way through the supply chain.

“It works its way through to them at some point

additional persons for a Spanish Immersion Programme in Mexico City.

AIBT also sponsored, in association CFAL, the Student of the Year Award at the Bahamas Financial Services Board’s 2017 Financial Services Industry Awards. These and several other initiatives represented over $55,000 in sponsorships and financial support this past year, underscoring AIBT’s commitment to the sector’s human capital development.

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PAGE 6, Monday, July 30, 2018

THE TRIBUNE

‘Flights threshold’ to combat rogue pilots FROM PAGE ONE for commercial gain or not,” Mr D’Aguilar told Tribune Business.

“If you are flying for commercial reasons, there is a greater level of regulation.

We want people engaged in that business to be properly licensed and declare them.

The fact the pilot gets to decide if they’re flying for commercial purposes or not is a problem that needs to be addressed.”

Some observers will likely call for the regulations to be changed rather than introducing new systems, but Mr

D’Aguilar continued: “I’ve always said we may need to develop, after consultation with the industry, what is the number of flights that classifies as qualifying as commercial?

“If you fly under ten flights per month, that makes sense, but if you’re flying more than that you qualify as a commercial operator. There’s got to be some sort of mechanism to measure that. Where I think some abuse has occurred is you can make many flights, and unscrupulous hackers say we’re just doing this for friends and family.

“If they decide to be unscrupulous we need to

come up with a mechanism that measures that, and says when you’ve reached a certain threshold you must be classified as commercial; you cannot be making these flights all for non-commercial reasons.”

Mr D’Aguilar spoke out in the wake of Friday’s BCAA press conference, where the aviation sector regulator revealed its plans to crack down on rogue operators within the industry. It has come under increasing pressure to act following January’s fatal plane crash off Mastic Point, Andros, which resulted in the loss of six lives.

The incident highlighted problems relating to a lack of enforcement and oversight within the aviation industry, after it emerged that the pilot involved lacked the necessary licences to offer charter services to paying passengers.

Captain Charles Beneby, the BCAA’S director-general, unveiled a number of planned measures but did not include the “number of flights” benchmark mechanism described by Mr D’Aguilar. He did, though, note the difficulties encountered by the regulator in proving that a pilot was illegally offering commercial flights.

“What makes it challenging is the fact that we are asserting that they are operating, that they are flying for hire,” he said. “The practice is that the operator would frequently say, ‘this is my cousin’, ‘this is my sister’, ‘this is my family’. And then, those persons that are flying with these people, are reluctant to come forward to say ‘I paid’.”

Mr D’Aguilar, though, said the BCAA was “moving slowly to that goal” of a per flights benchmark to determine if a pilot is offering commercial services, while

acknowledging that “collusion” between pilot and passengers often made it difficult to prove law-breaking.

“No matter how much family you have, you’re not going to be flying hundreds of flights per month because you love your family,” he told Tribune Business. “We need to develop a threshold and hold people accountable for this threshold. I have been asking the BCAA, and been constantly harping on this, let’s deal with this problem once and for all.”

Mr D’Aguilar said the BCAA was still in its infancy as a regulator, and was “in a period of transition” following its creation out of the Civil Aviation Department (CAD) in November 2016.

While the BCAA is now “20 months into this journey”, the Minister said its development required the regulator to now focus on and deal with issues such as illegal “hacking”.

“I’m pushing for there to be a regime in place that does two things,” Mr D’Aguilar told Tribune Business. “One, it really disincentivises people from hacking, but two, it provides a system for them to regularise themselves in an efficient and timely manner.

“People don’t regularise for two reasons. One, because no one is forcing them to do so, and two, when they attempt to do so it’s too bureaucratic and too slow.”

He added that this has to be addressed through a combination of enforcement and efficient licensing.

Emphasising that he wanted to “speed up” the process for persons seeking to obtain the necessary pilot and aircraft licences, Mr D’Aguilar added: “It’s not my intention to drive people out of business; it’s my intention to drive them to operate within the confines of the law.”

The BCAA on Friday unveiled initiatives requiring Bahamian pilots holding foreign licences to apply for Bahamian licences; a public education air safety campaign; and the creation of a multi-agency law enforcement task force.

“We are amending the regulations to require all Bahamian citizens holding foreign-issued licences to apply to the Authority to have those licences converted to a Bahamian licence,” Captain Beneby said. “The benefit of that is to ensure that they come under our scrutiny.”

He added that the regulations are being amended to require all foreign-registered aircraft in The Bahamas to be registered with the Authority “if those aircraft are in the country for more than a specified period of time”.

“That information would reflect ownership of the aircraft, airworthiness of aircraft, information about the pilots and the operator of that aircraft,” Mr Beneby said. “Unfortunately… a number of flights are being performed with foreign aircraft that ordinarily we would not scrutinise.”

The success of the BCAA’s efforts, as ever, is likely to boil down to its will to enforce the laws and regulations, and whether it has sufficient manpower and expertise to do so across 28 airports spread the length and breadth of The Bahamas.

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THE TRIBUNE

Monday, July 30, 2018, PAGE 7

Tax hike ‘shockwaves’ hit high-end properties FROM PAGE ONE business,” Mr Myers told Tribune Business, “of which one is the change to owneroccupied status.

“We need clarity on that. That’s an example of bad policy that negatively impacts GDP growth, and services businesses and goods. That needs to be clarified as quickly as humanly possible. We know of people that have said they will sell if that is the case, and know of several construction projects already stopped until such time as clarification is made.”

While Mr Myers’ comments echo previous warnings by realtors and developers, they provide the first tangible evidence about the impact the change in the Real Property Tax’s definition of “owner-occupied” property may be having on investment decisions.

The concerns stem from the term “owneroccupied property” being altered to remove the phrase “or seasonal basis”, instead inserting a requirement that an owner must reside in their property for at least six months annually to qualify under this definition.

The Bahamas’ second homeowner community, many of whom are in this nation for just a few months per year, will now fall out of the “owner-occupier” category and lower tax rates that were reduced in 2016.

And, besides the higher tax rate, which has doubled

from one percent to two percent on the property value above $500,000, they will also lose the $50,000 “cap” that set the ceiling, or limit, on how much they pay annually to the Public Treasury Beginning January 1, 2019, an owner that resides in their property for less than six months in any given year will be required to pay real property taxes at the rate of 0.75 percent on that part of the market value which does not exceed $500,000, and two percent on that part of the market value which exceeds $500,000.

One attorney, speaking on condition of anonymity, previously told Tribune Business that a $2 million vacation home would see its tax bill jump from around $18,000 to $33,000 - a $15,000 or 83.3 per cent increase.

But they suggested the impact was even more startling for a $10m home, which currently pays $50,000 based on the real property tax “cap”. With this removed, the attorney calculated that the tax bill will rise to around $193,000 - a $143,000 or 286 percent increase.

“The second home market is dead if they don’t put the cap back in,” Mr Myers told Tribune Business. “These are the things that are important, because if you don’t correct them it stifles growth, you can create hysteria in the market and lack of confidence builds in the government.

“Foreign direct investment begins to distrust The Bahamas overall as it’s seen as inconsistent or radical in its tax tendencies. That can be a real problem as it sends shockwaves through the system.”

He continued: “We have to be careful that the right message is being sent; that we’re pro-investment; pro-growth; pro-FDI, prosecond home. If we want to squeeze a little more tax out of non-domiciles, OK, but don’t scare these people off as there’s a huge impact; a huge impact to the services sector, the food sector. It sends shockwaves through the second home market, and property values plummet.”

Mr Myers’ comments echo warnings given by the likes of John Christie, director and vice-president of HG Christie, who recently told Tribune Business that the high-end second home market was in “a state of shock” and “panic” over fears of “exorbitant” real property tax hikes.

He described the rate increase and cap removal as a “double whammy” for the market, and added: “People are in a state of shock in the luxury high-end market.

There is a lot of talk in New York and other places like that. People are afraid they can’t sell their homes. In some cases you’re talking about going from $50,000 a year in property tax to $200,000 a year in property tax.

“There are a lot people upset up about this. There are a lot of people who want

to buy and move forward, but are now saying let me wait and see what happens here.”

KP Turnquest, deputy prime minister, previously told this newspaper that changes to the definition of “owner-occupied” property were designed to eliminate “loopholes” that had allowed mainly foreign homeowners to escape with a lower tax rate.

“One of the issues is that these homes were claiming

owner-occupied status, and some are not being used in any significant way,” the deputy prime minister told Tribune Business.

“The benefit is intended for Bahamians owning their own homes. It’s a bit of a loophole we sought to close. It’s also a reality that some of those homes were being used as vacation rentals rather than owner-occupied, so we’re seeking to close the loophole.”

When asked whether the change was also designed to prod wealthy foreign investors and second homeowners to choose The Bahamas as their primary domicile, Mr Turnquest replied: “That would be an added benefit.

“It’s just a matter of tightening up the holes. In any tax administration, there’s always areas that are grey that need to be tightened up as you go along, and this is one of those.”

PAGE 8, Monday, July 30, 2018

Oil explorer extends JV talks one month FROM PAGE ONE commercial framework for a potential transaction,” BPC said.

“The work undertaken to-date between both parties will therefore continue during the term of the current extension. Further, unless and until agreed otherwise, or a definitive commercial arrangement is agreed between both parties, the identity of the counterparty will continue to remain confidential.”

BPC acknowledged that the one-month extension provides no certainty that a joint venture deal will ultimately agreed, with the company having spent more than a decade conducting seismic testing and underwater evaluations to determine whether commercial quantities of extractable oil lie beneath Bahamian waters.

The amount of time that has passed has led to growing scepticism, but BPC’s rate of progress has heated up rapidly in late April, with the company submitting its “Environmental Authorisation” application for the necessary permits to the government.

The search for a joint venture partner, who will share the financial and technical burden of drilling its first exploratory well, is the second “parallel path” that BPC has been working

on for several years, and it still appears to be moving forward on both fronts.

Mr Potter, in a previous interview with Tribune Business, said recent global oil price increases had boosted BPC’s long-running joint venture partner search, with the increased margins and profits whetting the industry’s appetite for offshore exploration.

“You and I have been talking about the interest a third party may or may not have in this project for quite some time now,” he told Tribune Business.

“It’s [the exclusivity agreement] a huge step forward for the project, especially in the context of improving global oil prices and the thawing of the industry’s attitude with respect to offshore oil exploration.”

Mr Potter said the decline in oil prices over the past few years had driven the industry to focus on onshore oil exploration/production assets, which were closer to delivering success and cheaper to acquire.

The speed at which renewed interest in BPC’s Bahamian licences had materialised into something tangible, he suggested, showed the company’s prospects of success - and the potential quantity of commercially extractable oil - were among the industry’s best.

Mr Potter added that The Bahamas would not

have to wait for actual production to feel the economic impact of oil exploration within its territorial waters.

“The exploration [on the first well] will last for 90 days and cost up to $100m, a considerable proportion of which will be spent locally in-country. That’s an immediate benefit,” the BPC chief executive pledged.

“I’ve been here seven years this year with a technical commitment to the project. It’s a project of scale and meaningful exploration. It’s a technical project as well as a potential game changer for The Bahamas.

“There are parts of the project we’re very comfortable with progressing ourselves; the technical aspects of the project, the environmental and safety aspects of the project with the government,” Mr Potter continued.

“We’re very happy to push that forward. But certainly a company with much greater resources than ours will provide greater assurance to the government in terms of delivery of the project.

“From a technical point of view, a large company with more resources enhances our chances of success. We benefit, the project benefits, and the government gets greater assurance from their participation.”

THE TRIBUNE

Stubborn jobless rate shows ‘growth focus’ need FROM PAGE ONE like to see 2-3 percent to get the economy really moving.”

While 4,525 more Bahamians had found employment between November 2017 and May 2018, the Department of Statistics data showed this was barely keeping up with the eligible labour force’s 4,765 expansion over the same period. In other words, the new jobs created were still not sufficient to satisfy everyone coming into the labour force.

The ten percent national unemployment rate was flat with both November 2017’s 10.1 percent rate, and last May’s 9.9 per cent, showing the level of joblessness has stubbornly refused to budge under the Minnis administration to-date.

A decline in New Providence’s unemployment rate, from 10.6 percent in November 2017 to ten percent in May 2018, drove the slight improvement in the national figures. However, the rates fro Grand Bahama and Abaco rose over that same period from 12.1 percent to 12.4 per cent, and from 8.6 percent to 10.7 percent, respectively.

Dion Foulkes, minister of labour, said the results were not surprising, with the New Providence improvement likely associated with hirings at Baha Mar as it opened both the SLS and Rosewood properties. However, he expressed serious concern over the rise in youth unemployment and discouraged workers.

“I think that based on what happened at Baha Mar, we sort of had a good idea that the unemployment rate in New Providence would have

decreased significantly,” Mr Foulkes said. “We are concerned about youth unemployment and the amount of discouraged workers.

“The $50m programme we have initiated in conjunction with the InterAmerican Development Bank (IDB) to embark on a comprehensive skills programme will go a long way to equipping young people to qualify for the skills in the market place.”

The youth unemployment rate, encompassing persons aged between 15 to 24 years-old, rose over the six-month period from 22.1 percent to 24.1 percent. In this age bracket, which typically exhibits the highest jobless rate, more than one in five Bahamians looking for work cannot find it.

Discouraged workers, meaning persons who have stopped seeking work because they believe none is available, increased by 6.9 percent to 2,175. New Providence and Grand Bahama saw increases of 7.3 percent and 2.5 percent, respectively, while Abaco’s numbers dropped by 2.5 percent.

The May figures do not account for the several thousand school leavers who typically swell the workforce’s ranks when they leave high school, and return from college, every year. Nor does it include the impact of the late May budget, and its VAT hike and other tax changes, which are likely to impact economic activity and the willingness of Bahamian companies to hire new workers.

For those reasons, Mr Myers suggested the November 2018 and May 2019 surveys will provide a better picture of unemployment in The Bahamas as more - and better - data will likely be available.

An entrepreneurial spirit, Attention to Detail and a passion to succeed. If you have it, we want you

Fidelity invites applications for the position of:

COMPLIANCE ANALYST Job Summary: In this highly visible position, the successful candidate will co-ordinate, implement and administer the anti-money laundering (AML) program and procedures to combat the financing of terrorism (CFT) of Fidelity Bank (Bahamas) Limited and its subsidiaries domiciled in The Bahamas. This position is also responsible for performing certain AML/CFT compliance responsibilities as specified by the outsourcing agreement with these entities and the Bank.

Main Duties and Responsibilities: • To assist with the administration of the AML/CFT compliance program for the Bank.

• To perform AML/ CFT due diligence and enhanced due diligence functions, including the detection and reporting of suspicious transactions and activities.

• To develop and promote risk-based tools/monitoring systems and maintain the anti-money laundering related database for the Bank.

• Be aware of changes in laws, regulations and trends and shares information with the Chief Compliance & Control Officer with a view to establishing enhanced controls to mitigate AML/CFT risk for the Bank.

• Assisting in the implementation of the AML/CFT training program for all staff.

• To assist in handling enquiries from the law enforcement or regulatory authorities.

Requirements / Qualifications: • Bachelor’s Degree in a business related field • Minimum three years’ experience in the Financial Services Industry • EBasic knowledge of U.S. Foreign Accounts Tax Compliance Act (“US FATCA”) and Common Reporting Standards (“CRS”) • Ability to work independently with minimal day-to-day oversight • Ability to meet deadlines and produce work that is at a professional level • Strong communication skills (written & verbal) with the ability to analyze operational functions • Excellent problem solving and interpersonal skills • Adherence to the highest professional standards and strict confidentiality

Please submit before:

HUMAN RESOURCES

July 30th, 2018

Attn: COMPLIANCE ANALYST HUMAN RESOURCES careers@fidelitybahamas.com

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

To advertise in The Tribune, contact 502-2394

He attributed the increase in youth unemployment and discouraged workers to a “massive skills gap” between what employers are looking for and what high school leavers are equipped with.

Calling for a renewed focus on vocational training and apprenticeship programmes, Mr Myers said ORG was working with the Department of Labour to conduct a “skills gap needs analysis before the end of the year”.

Meanwhile, the Labour Force Survey showed vulnerable employment declining by ten percent from 16,370 to 14,740. The rate now stands at 7.1 percent of total employment.

These workers as defined by the International Labour Organisation as less likely to have formal worker arrangements, and more likely to lack decent working conditions characterised by inadequate earnings and benefits.

The Opposition’s deputy leader, Chester Cooper, said the survey revealed troubling indicators demonstrating that the Minnis administration’s “reckless policies are coming home to roost”.

“While the level of employed persons is up as a result of Baha Mar, the level of unemployed is a reflection of the FNM doing everything in its power to depress the workforce and the overall economy. Whilst unemployment overall didn’t move significantly in any direction, unemployment on Grand Bahama and Abaco is up. Unemployment among youths is also up,” said Mr Cooper.

“This is most disturbing given that thousands of young Bahamians graduated high school and college just after the date of this report.”

Mr Cooper added: “Perhaps most concerning is that discouraged workers have increased across the board, and are pessimistic about the prospect of finding work. The FNM can take credit for embedding a sense of hopelessness in the country.

“So much so that many people no longer feel there is work to be had. Had these discouraged workers been counted among the unemployed, the unemployment rate would have been much higher.”

A Small Company is looking for a

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THE TRIBUNE

Monday, July 30, 2018, PAGE 9

Times publisher asks Trump to reconsider anti-media rhetoric

BRIDGEWATER, NJ Associated Press THE PUBLISHER of The New York Times said yesterday he “implored” President Donald Trump at a private White House meeting this month to reconsider his broad attacks on journalists, calling the president’s anti-press rhetoric “not just divisive but increasingly dangerous”.

In a statement, AG Sulzberger said he decided to comment publicly after Trump revealed their offthe-record meeting to his more than 53 million Twitter followers on Sunday.

Trump’s aides had requested that the July 20 meeting not be made public, Sulzberger said.

“Had a very good and interesting meeting at the White House with AG Sulzberger, Publisher of the New York Times. Spent much time talking about the vast amounts of Fake News being put out by the media & how that Fake News has morphed into phrase, “Enemy of the People.”

Sad!” Trump wrote.

Hours after that exchange, Trump resumed his broadside against the media in a series of tweets that included a pledge not to let the country “be sold out by anti-Trump haters in the ... dying newspaper industry”.

Sulzberger, who succeeded his father as publisher on Jan 1, said his main purpose for accepting the meeting was to “raise concerns about the president’s deeply troubling anti-press rhetoric”.

“I told the president directly that I thought that his language was not just divisive but increasingly dangerous,” he said.

Sulzberger said he told Trump that while the phrase “fake news” is untrue and harmful, “I am far more concerned about his labeling journalists ‘the enemy of the people.’ I warned that this inflammatory language is contributing to a rise in threats against journalists and will lead to violence.”

Sulzberger, who attended the meeting with James Bennet, the Times’ editorial page editor, said he stressed that leaders outside the US are already using Trump’s rhetoric to justify cracking down on journalists.

AG SULZBERGER “I warned that it was putting lives at risk, that it was undermining the democratic ideals of our nation, and that it was eroding one of our country’s greatest exports: a commitment to free speech and a free press,” the publisher said.

Sulzberger added that he made clear that he was not asking Trump to soften his attacks against the Times if he thinks the newspaper’s coverage is unfair. “Instead, I implored him to reconsider his broader attacks on journalism, which I believe are dangerous and harmful to our country,” he said.

Trump reads the Times and gives interviews to its reporters. But the president — who, like all politicians, is concerned about his image — also regularly derides the newspaper as the “failing New York Times”. However, the Times’ ownership company in May reported a 3.8 percent increase in firstquarter revenue compared to the same period in 2017.

The president, who lashes out over media coverage of him and the administration that he deems unfair, has broadly labeled the news media the “enemy of the people” and regularly accuses reporters of spreading “fake news” — the term he often uses for stories he dislikes.

Hours after his tweet about the Sulzberger meeting, Trump renewed his criticism of the media in a series of posts in which he accused reporters of disclosing “internal deliberations of government” and said that can endanger “the lives of many”. He did not cite examples but wrote “Very unpatriotic!” and

NOTICE NOTICE is hereby given that MAGALAIE OSCAR of #1 Mangrove Lane, Sea Breeze, P.O. Box N-783, 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 30th day of July, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

said freedom of the press “comes with a responsibility

to report the news ... accurately”, a sentiment that journalists share.

Trump also claimed that 90 percent of the coverage of his administration is negative, leading to an “all time low” in public confidence in the media. He cited the Times and The Washington Post, two favorite targets, and claimed, “They will never change!”

Last week, Trump told hundreds of people attending the annual Veterans of Foreign Wars convention in Kansas City, Missouri: “Don’t believe the crap you see from these people, the fake news,” as he gestured toward journalists at the back of the room.

He also told them to remember “what you’re

seeing and what you’re reading is not what’s happening”.

Sulzberger said he accepted the meeting because Times publishers have a history of meeting with presidential administrations and other public figures who have concerns with the publication’s coverage of them.

After Sulzberger took charge, Trump tweeted that his ascension gave the paper a “last chance” to fulfill its founder’s vision of impartiality.

In the January tweet, Trump urged the new publisher to “Get impartial journalists of a much higher standard, lose all of your phony and non-existent ‘sources,’ and treat the President of the United States

FAIRLY, so that the next time I (and the people) win, you won’t have to write an apology to your readers for a job poorly done!”

Tension between the administration and the news media was put on display last week after the White House told a CNN correspondent that she could not attend a Rose Garden event that was open to all credentialed media.

The correspondent, Kaitlan Collins, said she was barred because she asked Trump questions he did not like at a press event in the Oval Office earlier that day.

The White House said Collins was barred because she refused to leave the Oval Office after being repeatedly asked to do so.

PAGE 10, Monday, July 30, 2018

THE TRIBUNE

Death of Fiat Chrysler chief focuses spotlight on CEO health MILAN Associated Press FIAT Chrysler’s late founding CEO Sergio Marchionne was a notorious workaholic who regularly slept on a corporate jet while landing in the headlines for his shrewd deal-making. Despite his very public profile, he kept a secret even from his board: he’d been seriously ill for more than a year.

Following his sudden death last week at 66, the revelation that Marchionne had kept his illness from his company and closest executives for so long has rekindled a debate over what information top executives should share about their personal life with their companies and shareholders.

Most experts believe CEOs have a right to privacy, especially where their health is concerned. But some say that coming forward would help break taboos on workplace

FIAT Chrysler’s late founding CEO Sergio Marchionne was a notorious workaholic who regularly slept on a corporate jet all the while landing in headlines for his shrewd deal-making. Despite his public profile, he kept a secret even from his board: he’d been seriously ill for more than a year.

Photo: Paul Sancya/AP illness for other executives and workers. Top executives also need to take into account their role as a corporate officer when weighing what personal information they divulge

— first to their boards, then to their workers and the wider investing community.

“I think it is classic stuff really. When you are a senior person, to be ill, there is a stigma to it,” said Cary

Cooper, an expert in organisational psychology and health at the Manchester Business School in Britain.

“In this case, he might have thought it would adversely affect the company, or that

NOTICE

NOTICE

TOP VICTORY HOLDINGS LIMITED

HEROIC TIME GLOBAL INVESTMENTS LIMITED

N O T I C E IS HEREBY GIVEN as follows:

N O T I C E IS HEREBY GIVEN as follows:

(a) TOP VICTORY HOLDINGS LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

(a) HEROIC TIME GLOBAL INVESTMENTS LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

(b) The dissolution of the said company commenced on the 26th July, 2018 when the Articles of Dissolution were submitted to and registered by the Registrar General.

(b) The dissolution of the said company commenced on the 26th July, 2018 when the Articles of Dissolution were submitted to and registered by the Registrar General.

(c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas

(c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas

Dated this 30th day of July, A. D. 2018

Dated this 30th day of July, A. D. 2018 _________________________________ Bukit Merah Limited Liquidator

_________________________________ Bukit Merah Limited Liquidator

MARKET REPORT THURSDAY, 26 JULY 2018

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

BISX ALL SHARE INDEX: CLOSE 1,974.46 | CHG 0.30 | %CHG 0.02 | YTD -89.11 | YTD% -4.32 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 19.17 7.50 4.02 1.39 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 19.17 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

LAST CLOSE 4.45 17.43 9.09 4.02 1.01 0.18 3.00 9.13 6.15 4.00 11.40 2.76 1.75 7.94 6.10 11.25 6.35 3.69 13.00

CLOSE 4.45 17.43 9.09 4.02 1.01 0.18 3.00 9.13 6.15 4.00 11.42 2.79 1.75 7.95 6.10 11.25 6.35 3.69 13.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.02 0.03 0.00 0.01 0.00 0.00 0.00 0.00 0.00

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

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

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

LAST SALE 100.00

CLOSE 100.00

CHANGE 0.00

108.38 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.19 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

108.19 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

VOLUME 50 1,200

3,300 3,900 1,500 35,000

10

VOLUME

10

EPS$ 0.268 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 0.719 0.277 0.631

DIV$ 0.100 1.130 0.000 0.230 0.000 0.010 0.000 0.710 0.220 0.120 0.620 0.060 0.070 0.084 0.320 0.500 0.200 0.120 0.580

P/E 16.6 18.7 N/M 14.2 N/M N/M -3.0 14.3 10.7 23.4 18.2 27.4 7.6 N/M 11.2 16.6 8.8 13.3 20.6

YIELD 2.25% 6.48% 0.00% 5.72% 0.00% 5.56% 0.00% 7.78% 3.58% 3.00% 5.43% 2.15% 4.00% 1.06% 5.25% 4.44% 3.15% 3.25% 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%

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

MUTUAL FUNDS 52WK HI 2.16 4.16 2.00 180.30 157.58 1.56 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 1.50 1.62 1.58 1.08 6.41 7.62 5.66 8.65 10.54 9.57

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

NAV 2.16 4.12 2.00 180.30 155.10 1.56 1.70 1.65 1.09 7.24 8.28 6.46 11.16 11.65 10.26

YTD% 12 MTH% 1.87% 3.98% -0.44% 4.28% 1.05% 2.26% 0.90% 3.44% 1.11% 6.05% 2.14% 4.33% 0.17% 4.01% 1.67% 4.18% -0.96% 0.73% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69%

NAV Date 30-Jun-2018 30-Jun-2018 29-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-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

he wouldn’t be allowed to carry on.”

Cooper noted that the CEO of Lloyd’s Bank, Antonio Horta-Osorio, had disclosed his struggle with depression, helping to open up a discussion about mental health. At the same time, many captains of industry are not willing to show their physical limits and see illness as just another obstacle to overcome.

“The kind of people who get to the top are pretty resilient people, and they think they are going to overcome it anyway,” Cooper said.

Marchionne’s case was unique because he was singularly identified with the automaker he created from two failing companies. Financial analysts, considering his plans to step down in the spring of 2019, had already expressed concern about whether any successor would be able to demonstrate his level of creativity and flexibility, most recently when Marchionne last month laid out the carmaker’s five-year plan.

Jason Schloetzer, a business administration professor at Georgetown University, said he does not believe CEOs are under any legal obligation to disclose their health issues. But he added: “It would be nice for there to be an internal process through which not just the CEO, but any key member of the operating team can feel comfortable sharing personal issues that may be a risk factor to company performance.”

While the FCA board acted swiftly to replace Marchionne as CEO on July 21 after being told by his family that he could not return to work due to complications after shoulder surgery, the Swiss hospital where he died on Wednesday later disclosed that he had been receiving cuttingedge treatment there for a serious illness for more than a year.

Fiat Chrysler reacted to the disclosure with a statement saying the company had been unaware of the longer-standing state of Marchionne’s health, having only been informed of the shoulder surgery last month.

In the week from news

of Marchionne’s illness to his death, Fiat Chrysler shed nearly 11 percent on the Milan Stock Exchange amid volatile trading. The stock lost nine percent in the same period the New York Stock Exchange.

As far as Italy’s market regulator, Consob, is concerned, the FCA board acted properly by replacing Marchionne as soon as it had word. He was also replaced that day as CEO of Ferrari and as chairman of CNH Industrial.

Peter Henning, a former lawyer for the US Securities and Exchange Commission, said SEC action is unlikely, as there’s no clear rule about what a company is supposed to disclose about a CEO’s health.

“It’s an interesting question, about where do you draw the line between public disclosure and an individual’s privacy? And the SEC has not weighed in on this, unless there is a misleading disclosure. Otherwise, the SEC is going to defer to the company,” Henning said.

At the same time, Jeffrey Sonnenfeld, senior associate dean for leadership studies at Yale School of Management, said CEOs have “a moral, ethical and legal responsibility ... as an officer of the company to consider the material adverse consequences of this very important information. As an officer, you surrender some degree of privacy.”

Sonnenfeld said that includes not only disclosing who you do business and meet with but also health issues. He said it’s up to corporate boards to have rules in place about health disclosures.

He cited JP Morgan CEO Jamie Dimon and Goldman Sachs CEO Lloyd Blankfein — both of whom informed their boards and employees of their cancer diagnosis, continuing full duties after treatment — as two good models. Apple, on the other hand, knew about Steve Jobs’ illness “but put out misinformation” when the founding CEO failed to show up at MacWorld in 2008, Sonnenfeld said.

“That was worse than spins. It was falsehoods,” he said.

NOTICE

FDR LIMITED N O T I C E IS HEREBY GIVEN as follows: (a) FDR LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. (b) The dissolution of the said company commenced on the 26th July, 2018 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas Dated this 30th day of July, A. D. 2018 _________________________________ Bukit Merah Limited Liquidator

NOTICE

HERO PAVILION LIMITED N O T I C E IS HEREBY GIVEN as follows: (a) HERO PAVILION LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. (b) The dissolution of the said company commenced on the 26th July, 2018 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas Dated this 30th day of July, A. D. 2018

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

_________________________________ Bukit Merah Limited Liquidator

THE TRIBUNE

Monday, July 30, 2018, PAGE 11

ON TRADE POLICY, TRUMP IS TURNING GOP ORTHODOXY ON ITS HEAD WASHINGTON Associated Press PRESIDENT Donald Trump’s trade policies are turning long-established Republican orthodoxy on its head, marked by tariff fights and now $12bn in farm aid that represents the type of government intervention GOP voters railed against a decade ago.

President George W Bush increased the number of countries partnering with the United States on free trade agreements from three to 16.

President Ronald Reagan signed a landmark trade deal with Canada that was later transformed into the North American Free Trade Agreement (NAFTA) and expanded to include Mexico.

Both those Republican presidents also enacted tariffs, but their comments on trade were overwhelmingly positive.

“We should beware of the demagogues who are ready to declare a trade war against our friends, weakening our economy, our national security and the entire free world, all while cynically waiving the American flag,” Reagan said in a 1988 radio address.

Trump, by comparison, has called NAFTA “the worst trade deal maybe ever signed anywhere”, and his administration has opted to use tariffs as a tool intended to leverage more favourable agreements with virtually every major US trading partner. He shredded the trade agreement the Obama administration tried to work out with Pacific Rim nations that had strong backing from farm groups and chief executives from major US corporations.

Republicans also have altered the priority of tackling the national debt, an issue the GOP hammered President Barack Obama on as the country struggled to recover from the 2008 economic crisis. “Our

PRESIDENT Donald Trump acknowledges the audience after speaking at the United States Steel Granite City Works plant in Granite City, Ill. Trump’s trade policies are turning long-established Republican orthodoxy on its head. There are tariff fights, and there’s now $12bn in farm aid that represents the type of government intervention GOP voters railed against a decade ago.

Photo: Jeff Roberson/AP nation is approaching a tipping point,” GOP Rep Paul Ryan of Wisconsin, now the House speaker, said in January 2011 when the national debt hit $14tn.

Today, the Congressional Budget Office projects the $21tn debt will rise to more than $33tn in ten years. That estimate notes that the tax cut lawmakers passed in December would increase economic output but add $1.8tn to the deficit over the coming decade.

The GOP’s evolving priorities are not lost on some in the party. Rep Mark Sanford, R-SC, who lost a close primary election this year after butting heads with Trump on some issues, said he finds it “perplexingly destructive” for the GOP brand.

“It takes a long while to build a brand, but brands can be diminished or destroyed in relatively short order, and I think the administration is destroying bedrock cornerstones to what the party has historically stood for,” Sanford said. “There is no conversation on the debt, deficit and government spending these days. That has been a cornerstone.”

Sanford made headlines as South Carolina governor

when he said he would reject stimulus money approved during the financial crisis because he did not think the country should go into debt to fund recovery efforts.

“Here we are now with a hypothetical $12bn bailout package and you don’t hear a word,” Sanford said. “That is quite a transition in not so many years from decrying what the Obama administration had done with bailouts to now endorsing the idea of bailouts.”

Trump, in a Friday interview on Fox News’ Sean Hannity’s radio show, said the strong economy would help the US reduce the deficit. “The economy, we can go a lot higher. ... We have $21tn in debt. When this really kicks in we’ll start paying off that debt like water. We’ll start paying that debt down.”

The administration’s plan on the bailout announced last week would borrow money from the Treasury to pay producers of soybeans, sorghum, corn, wheat, cotton, dairy and hogs.

Many farmers have criticised Trump’s tariffs and the damage done to commodity prices and markets.

PAGE 12, Monday, July 30, 2018

THE TRIBUNE

Exxon profit surges, just not enough DALLAS Associated Press RISING oil prices pushed second-quarter profit at Exxon Mobil Corp up 18 percent to $3.95bn, but the results on Friday fell short

of Wall Street expectations, and the shares fell nearly three percent.

The price of benchmark international crude is up more than 50 percent from a year ago. But Exxon’s production of oil and natural gas slid seven percent, so it

didn’t fully take advantage of the higher prices.

Rival Chevron Corp, by contrast, boosted production two percent and more than doubled its secondquarter profit from a year ago.

“The second quarter

results were well below market expectations,” Neil Hansen, Exxon’s vice president of investor relations, acknowledged at the start of a call with analysts.

He said the company was making progress with key investments that will pay off

in the long term.

Exxon boosted its capital spending sharply — a reversal from the cutting that Exxon and other major oil companies did after the price collapse that started in 2014. It has major projects underway off the coast of South America, in Africa and Papua New Guinea.

Neil Chapman, a senior vice president who oversees Exxon’s exploration and production business, said the second quarter was the low point and production will increase over the rest of the year.

Exxon, however, now expects to fall short of a forecast Chapman made in March — that 2018 production would match last year. Exxon predicted on Friday that it will produce the equivalent of 3.8 million barrels a day including natural gas, down from four million barrels a day in 2017.

Among the reasons Chapman gave for the miss were an earthquake that interrupted operations in Papua New Guinea and the company’s retreat on natural gas in the US because of relatively low prices. He said the company would focus on the most profitable production.

Exxon’s oil production has fallen three straight quarters and five of the last seven quarters, compared with results from a year earlier. Until mid-2016, the

company regularly boosted output.

Exxon’s second-quarter profit worked out to 92 cents per share. Analysts were looking for $1.26 per share, according to a survey by Zacks Investment Research.

Exxon does not adjust results based on one-time events such as asset sales, which totaled $307m in the quarter.

Revenue jumped 27 percent to $73.50bn, despite the decline in oil and gas output.

The bright spots in Exxon’s portfolio included the Permian Basin of Texas and the Bakken field in North Dakota, where production rose 30 percent.

Capital spending climbed 69 percent to $6.63bn, with exploration and drilling rising notably in Brazil, the Permian Basin and Indonesia.

The Irving, Texas-based company spent most of its profit on shareholder dividends — $3.5bn. The value of Exxon shares, however, has gained only a few dollars since a low point in September 2015 even though crude has risen more than 50 percent since then.

Exxon shares dropped $2.32, or 2.8 percent, to $81.92. That left the shares down 2.1 percent so far this year — they began the day up less than one percent in 2018.

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