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FRIDAY, AUGUST 4, 2017
$4.00 DPM: FIRST BOB RESCUE ‘PROTECTED CERTAIN BORROWERS’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BANK of the Bahamas’ (BOB) losses were exacerbated by the former government protecting “certain borrowers”, the Deputy Prime Minister yesterday describing the new $166 million ‘bail out’ as “the best shot” for recovery. “We’re freeing up the bank of its problem loans,” he said of the latest $166 million ‘rescue’, which was announced at BOB’s shareholders’ meeting on Wednesday night. “The prior government bail-out had basically tried to protect certain borrowers, and resulted in the bank having to carry
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas Public Services Union’s (BPSU) president yesterday suggested the Government’s ‘employee verification’ exercise could slash recurrent spending by around $80 million. John Pinder told Tribune Business he backed the Minnis administration’s efforts to weed out “phantom” workers and other unethical practices in the public sector, listing numerous areas of payroll wastage and “political patronage” that cost Bahamian taxpayers. “That’s the norm. I welcome that,” the BPSU chief said of the upcoming ‘verification’ move. “They ought to do that to ensure persons being paid are, in fact, working for the Government or at least locate them. They just want to See PG B5
By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net BANK of the Bahamas’ (BOB) latest $166 million ‘bail out’ was yesterday described as “the best shot” to rescue it, its newly-appointed chairman revealing the deal will likely be “consummated” on or before August 10. “The Government is preparing to infuse
Govt targets sale, reduction of its BOB stake
Govt can save $80m by ‘verifying’ workers Union chief: Could cut recurrent budget 3%
$4.06
$166m bail-out is BOB’s ‘best shot’
Forced troubled bank into unnecessary provisions
certain provisions it didn’t have to.” Those loan loss provisions will have contributed to the $120 million-plus losses BOB suffered over its past four financial years. Mr Turnquest’s comments are likely to infuriate the bank’s long-suffering minority shareholders, who will likely interpret them See PG B2
$4.18
$4.05
WAYNE ARANHA
$166 million into BOB,” Wayne Aranha told shareholders at the BISX-listed institution’s annual general meeting (AGM) on Wednesday night. “This commitment came since our appointment, and so it’s not a question of the new government honouring a contract given to the old government. This is something entered into recently. It’s so new that we are in See PG B3
Bank to repeat Resolve ‘bail-out’ Gov’t to replace $107m bonds with capital Bank seeks Gov’t ‘cost recovery in Out Isl.
Minister pledges cruise line reset By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Minister of Tourism yesterday said the Bahamas must reset its relationship with the cruise lines, adding: “They make all the money, and we have nothing.” Dionisio D’Aguilar told Tribune Business that this nation needs to “be a little more aggressive”, and
ensure it earns a greater share of the economic activity generated by millions of cruise visitors to its shores annually. In return, he acknowledged that the Bahamas needed to “improve its product” - especially on New Providence - and provide cruise passengers with new, innovative tours and attractions. Mr D’Aguilar said this was essential to increase
per capita spending and yields, suggesting that the Bahamas had to its detriment focused on ‘volumes’ - the number of cruise visitors per annum rather than total economic returns. “We’ve got to be a little more aggressive,” he told Tribune Business. “We have a duty to improve our product, but when we do we want the cruise ship See PG B4
Says: ‘They make the money; we get nothing’ Bahamas needs to improve product in return Low growth rate vs region ‘speaks volumes’
Pinder backs public sector exercise Highlights patronage, waste and flaws
JOHN PINDER
QC urges ‘no carte blanche’ extension of F’port tax breaks By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government was yesterday urged not to grant “a carte blanche” 20-year tax breaks extension for all Freeport businesses, especially the Grand Bahama Port Authority (GBPA) and Hutchison Whampoa entities. Fred Smith QC, the Callenders & Co attorney and partner, warned the Minnis administration to be especially careful about granting such an exemption to Hutchison, Freeport’s largest investor, due to its failure to meet its real
‘Big boys must step up to plate’ Says Hutchison not met obligations Urges Govt to ‘negotiate a miracle’ estate and tourism development commitments. Mr Smith, who was the GBPA’s external counsel, and involved in the deal, said a condition attached to Hutchison’s purchase See PG B4
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PAGE 2, Friday, August 4, 2017
THE TRIBUNE
BAHAMAS REGULATOR HEADS REGIONAL INSURANCE SUMMIT THE Caribbean Association of Insurance Regulators (CAIR), which is headed by the Bahamas’ top insurance supervisor, held its annual conference and general meeting in Kingston, Jamaica, from June 19-21. Under the theme, Enhancing Financial Sector Supervision and Stability: Implementing a Risk-based Capital Regime, representatives from the 20-member body participated in sessions outlining best-practices, shared experiences and various case-studies. The conference was held in conjunction with the Caribbean Regional
Technical Assistance Centre (CARTAC), one of ten IMF regional technical assistance centres. CAIR was formed in 1994 to advocate, encourage and support the development and enforcement of insurance regulation in the Caribbean, based on internationally-accepted standards. Michele Fields, the Insurance Commission of the Bahamas’ superintendent, and CAIR president, said that each year members were able to “develop skills, share experiences and strengthen their knowledge”.
R. Brian Langrin, CARTAC’s resident advisor on financial stability, welcomed the group and expressed his agency’s continued commitment to supporting CAIR’s ongoing initiatives. John Jackson, the Jamaica Deposit Insurance Corporation’s president, delivered the keynote address. CAIR this year awarded its first honorary membership to Leon G. H. Anderson, past deputy executive director of the Financial Services Commission of Jamaica, for his contribution to the Association as past president, a post he held for seven years.
DPM: First BOB rescue ‘protected certain borrowers’ From pg B1
FIRM TRAINS SERIES 7 EXAMINATION GRADUATE A BAHAMIAN company has enabled another person to pass the Series 7 broker/dealer examination. Natalee Dias can now apply to be registered and licensed by the Securities Commission of the Bahamas as a financial adviser and broker/dealer. The Series 7 exam is administered by the New
York Stock Exchange and the National Association of Securities Dealers. The Nastac Group, which stands for National Association of Securities Training and Compliance, trained Ms Dias for the exam. She is pictured here being congratulated by Nastac Group president, Reece Chipman.
as further evidence that ‘toxic’ loans to so-called politically exposed persons (PEPs) have been a key factor in destroying the value of their investment. It may also trigger renewed political controversy over BOB and its fate, but the Central Bank of the Bahamas confirmed the validity of concerns over delinquent loans to politically-connected persons when it earlier this year urged the bank to be more aggressive in pursuing recovery against such defaulters (see article on Page 3B). Many BOB observers had also long questioned whether the initial ‘bail out’ in October 2014 was adequate, given that just 13 ‘bad borrowers’ - with collective loans worth a ‘book value’ of $45.2 million - were removed from the bank’s balance sheet and transferred to the Bahamas Resolve vehicle. This enabled the writeback of previous loan loss provisions. One former MP told Tribune Business at the time that the 13 appeared to have been “carefully
selected” so as to include a balanced mix of political loyalties, with none linked to then-government ministers and MPs. The October 2014 ‘bail out’ only provided temporarily stability for BOB, as its capital ratios again quickly became non-compliant with Central Bank requirements, while its accumulated deficit again soared as losses continued to mount. Mr Turnquest, meanwhile, said BOB’s new Board - and its recovery plan - “gives us the absolute best opportunity” to restore the BISX-listed institution to sustained profitability. He added that the new $166 million ‘bail out’, which is effectively a repeat of the 2014 Bahamas Resolve transaction, albeit at a much higher value was the least bad option when it came to addressing BOB’s woes. The Deputy Prime Minister emphasised that protecting depositors and staff jobs, in addition to preventing any systemic impact to the wider economy and banking system from a BOB, was
uppermost in the Government’s thinking. He said that once restored to profitability, the Government would rapidly seek to sell its 79 per cent majority equity stake or reduce it to a minority ownership percentage. “We’re convinced the plan the bank has outlined will give us the absolute best opportunity to be successful,” Mr Turnquest told Tribune Business. “From what I know, I believe it will be successful. “We have the best shot. This is the best opportunity, the best shot that’s been presented to us to return shareholder value, protect jobs and the depositors.” Mr Turnquest said the Government was “already in the process of securing” the bail-out financing, which will initially involve the injection of government bonds into BOB’s balance sheet. Some $107 million of these will be redeemed over the course of the 2017-2018 fiscal year as the Government replaces them with equity capital. The Deputy Prime Minister said BOB’s drain on the Bahamian taxpayer was “not necessarily directly tied” to the Government’s recently-announced 10 per cent recurrent spending
cut, as it seeks some $200 million-plus in Budgetary savings. “We are committed to the bank to ensure it has an opportunity to return to profitability,” Mr Turnquest said. “This is just part of the plan. “Clearly, we don’t have very many options, but we believe in the bank and, through the plan put forward, we can return it to profitability and return shareholder value. “We recognise the value of BOB to the Bahamian community. It is the sole bank in some communities, and we recognise the value of the jobs and the effect, as you stated, a failure can have on the overall jurisdiction.” Mr Turnquest confirmed that the Minnis administration had given “a commitment” to the new BOB Board that it will not interfere with itself, or management, in any way. “Our first job is to return to profitability and shareholder value,” he reiterated. “But our position is we want to be out of this bank, or reduce government’s ownership back down to a minority interest, as soon as possible. We recognise that we need to give the professionals an opportunity to do what they need to do.”
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Friday, August 4, 2017, PAGE 3
BOB CHAIR: POLITICAL DELINQUENTS CANNOT EXPECT ANY FAVOURS the Board will not interfere with management. Wayne Aranha, who led discussion on the troubled BISX-listed institution’s fate at Wednesday night’s annual general meeting (AGM), said: “We are going to empower management to run it and expect them to be accountable. “I don’t expect calls coming to me concerning
the affairs of the bank. I do not expect directors to be instructing management to do things. I think there has to be a clear separation between the owners, the Board and management. I have been given assurance that we will be allowed to act as directors.” Controversy has swirled as to whether bad loans to politically exposed
persons (PEPs) played a key role in Bank of the Bahamas’ collapse into the October 2014 taxpayerfinanced ‘bail out’. Mr Aranha told shareholders: “If a PEP is a customer and he is delinquent, he will be treated just as any other customer.” PEPs are persons who hold, or have connections - such as family links - to officials or
politicians holding public office. The former government repeatedly denied that loans to ‘politically exposed persons’ or PEPs were involved in Bank of the Bahamas’ demise. Mr Aranha added that a comprehensive transformation strategy is already underway and, while there is no specific plan yet, the new Board will give the necessary focus to
CONSULTATION STARTS ON BPL CONSUMER PROTECTION PLAN
competition in the sectors within its mandate. “During the consultation period, members of the public are invited to provide feedback regarding BPL’s standards of service, quality and safety, as well as the proposed procedures for receiving and responding to consumers’ complaints regarding billing, power quality and service interruption. “Also open to consumer comment are standards and procedures for terminating and restarting service, including special termination and restarting procedures for vulnerable customers who are unable to pay their electric bills, but satisfy eligibility criteria for assistance.”
The consultation is a part of a larger public education awareness campaign launched in New Providence, with two upcoming Town Hall meetings on August 8 at St. Joseph’s Parish Hall, Boyd Road, and August 15 at Doris Johnson High School. The meetings will start at 6.30pm. Other outreach activities comprise appearances on talk shows and the engagement of civil society. Family Island visits will commence in September and continue through October, covering communities in Bimini, Abaco, Crooked Island, Acklins, Inagua, Eleuthera, Exuma.
New BOB Board boosts shareholder confidence
arrangement. If there is a national desire for a bank to be there, and Bank of the Bahamas is approached about going, I think BOB goes and the appropriate arrangement is made.” BOB already operates locations in Family Islands such as Andros (two), Inagua, San Salvador and Exuma, all of which are likely to produce marginal profitability at best. But BOB shareholder and former FNM senator, Darron Cash, told Tribune Business: “At first look one might get the impression the expansion into a small Family Island community, particularly a full-fledged branch with all operating costs, might not be financially viable. “The argument can be made as to whether it makes financial sense, and whether the level of demand and business is there. The caveat or part of the reality that I think everyone has to acknowledge is that to the degree that BOB will rely on the financial support of the Government and the Bahamian people is the degree we ought to expect the bank to be responsive to the Government’s calls for the bank to be in some communities to satisfy those needs.” Mr Aranha, meanwhile, added that as at June 30, 2017, the bank’s total assets amounted to $757.7 million, with liabilities at $691.2 million and total equity of $66.5 million. “From initial reviews, there is a need to engage a
more aggressive approach to reducing delinquencies. There is room for improving the collection of non-performing loans and procedures (and possibly resource adjustments) will be implemented imminently to ensure improvements are realised,” he said. “Asset realisation will be employed more frequently; the provisions established at 30 June, 2017 reflect a more aggressive approach in this regard. Facilities will be restructured where appropriate; serial restructuring will likely be indicative of a situation where restructuring would be inappropriate.” Acknowledging BOB’s poor efficiency ratio, a function of reduced revenues and higher costs, Mr Aranha said: “Stringent cost control measures will be implemented, consistent with the need to ensure that risks are appropriately managed and customer service is not sacrificed.”
By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net BANK of the Bahamas newly-apointed chairman has assured minority shareholders that politically-connected loan delinquents will be “treated like any other customer”, adding that
REGULATORS have started a public consultation process on Bahamas Power & Light’s (BPL) consumer protection plan (CPP). The Utilities Regulation and Competition Authority (URCA) said the objective of the public consultation is to ensure Bahamians have an opportunity to voice their opinions, objections, pose questions and make further recommendations on any aspect of the proposed plan.
The public consultation mandated by the Electricity Act opened in May, with the posting of BPL’s draft CPP and URCA’s assessment on its website. “The CPP proposes standards intended to govern the manner in which BPL engages and treats its customers,” said URCA. “The public’s input is vital to URCA’s development and institution of effective regulations which govern the quality of service and
$166m bail-out is BOB’s ‘best shot’ From pg B1 the process of trying to consummate the deal on or before August 10.” The new ‘bail out’ is essentially a repeat of the first Bahamas Resolve transaction from October 2014, although the sums involved are much higher. The latest rescue will remove some $166 million worth of ‘toxic’ commercial loans from BOB’s balance sheet and transfer them to the Bahamas Resolve special purpose vehicle (SPV). The loans, which are to be paid for at gross book value, will be exchanged for promissory notes (government IOUs or bonds) that will be provided by Bahamas Resolve. This will fill the hole left on BOB’s balance sheet by the removal of the impaired loans. The transaction effectively represents a significant transfer of liability/ risk from BOB and its shareholders to the Bahamian taxpayer, who is now on the hook for collecting on these ‘bad’ loans and securing their underlying collateral (real estate) via Bahamas Resolve. Given the sheer size of the $166 million ‘bad loan’ portfolio, it appears likely that the taxpayer will be stuck with a ‘bad bank’ in the shape of Bahamas Resolve for decades. The Government is also supposed to redeem $107 million of the promissory notes now held by BOB before the June 30, 2018, end of this current fiscal year.
It will make a $50 million payment on August 30, followed by another $19 million on November 30, 2017. The balance will be paid in further quarterly instalments on February 28, 2018, and May 31, 2018. The Government is making the redemptions on Bahamas Resolve’s behalf, recognising that the SPV has no possibility of doing this by itself. This is because Bahamas Resolve has only managed to sell two of the properties upon which its original October 2014 ‘bad loan’ portfolio was secured. Bahamas Resolve’s recoveries were supposed to finance the bond interest payments to BOB, but the SPV’s inability to rapidly collect on the collateral will likely mean further taxpayer exposure - once the $166 million ‘bail out’ goes through - in terms of having to meet the interest liabilities. Mr Aranha, meanwhile, suggested that BOB would make further demands on the taxpayer by seeking “cost recovery” from the Government if it was asked to provide branches on remote, unprofitable Family Islands. The bank is due to open its Bimini branch on August 21, 2017, replacing the departing Royal Bank of Canada (RBC). Addressing queries over the move at the AGM, Mr Aranha said: “One of the things we had discussed with government was that we can’t be operating branches at a loss. We have to come to some working
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issues such as credit policies, compliance and cost control. “We can’t operate a bank with regulators breathing down our necks. The only way to get regulators to stop is by compliance. We are going to try as quickly as we can to address the various regulations and guidelines,” said Mr Aranha.
By NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net A PROMINENT Bank of the Bahamas (BOB) investor said its new Board had inspired a “fair degree of confidence” over the institution’s future, although he reiterated concerns about its management. Darron Cash, the former FNM chairman and Senator, told Tribune Business there remained a need for leadership changes at the management level. He raised the point during Wednesday night’s annual general meeting (AGM), saying he was “extremely curious” about the composition of the executive management team. Speaking to the new BOB Board, Mr Cash said: “I think that the composition of the Board inspires a fair degree of confidence in the potential future for the bank. There are persons with meaningful banking background, accomplished persons. That is very good in terms of the likelihood that you would have a meaningful impact. “They did not reveal a lot of detail, but I think a lot of people appreciate that they have only been on the job for a matter of weeks. What was clear was that the Board seems to be tackling head on issues of government policies for dealing with the bank, and that provides some hope for the bank’s continued survival. “The second thing is the bank’s relationship with the Central Bank. I applaud the
DARRON CASH chairman for speaking candidly on some of the issues between the bank and the regulator, and the fact that the bank has done some things to lower the temperature between the two and address some concerns with regards to capital adequacy ratios.” Mr Cash added that those two areas are significant issues which impact the long-term survival of the bank. “I think that the information provided at the AGM was encouraging, and the fact that the Board appears to have started to take those matters in hand,” he said. Mr Cash added that BOB’s executive leadership was also an issue of concern for himself and several other shareholders. “In fairness, the chairman was rightfully non-committal to specific action, but forthright on the issue of executive leadership and the fact that it will get crucial attention from the new Board,” he said. “We made no secret of our view that we felt that changes need to be made at the executive level.”
PAGE 4, Friday, August 4, 2017
THE TRIBUNE
QC urges ‘no carte blanche’ extension of F’port tax breaks From pg B1 of key GBPA assets in the mid-1990s was that it would “make a successful go” of developing Freeport’s real estate and the Lucayan strip. He argued that the Hong Kong-headquartered conglomerate, which recently split into different companies, had “failed miserably” to fulfill both obligations, which was why the Minnis administration needed to be smart in developing Freeport’s new investment incentive legislation. Mr Smith was speaking out after the GBPA, in a statement following a meeting with Carl Bethel QC, the attorney general, said it was working with the Government to extend the Hawksbill Creek Agreement’s expired investment incentives to
all its 3,500 licensees for a 20-year period. This would ensure equality for all, rather than the discriminatory treatment introduced by the Christie administration’s Grand Bahama (Port Area) Investment Incentives Act 2016, which only gave the 20-year automatic extension to the GBPA and Hutchison. All other GBPA licensees had to apply to the Government for the renewal of their expired income, capital gains and real property tax exemptions via an uncertain process with no set criteria, and no assurance that they would receive the tax breaks or for how long. While many are likely to welcome the GBPA’s equality announcement, Mr Smith told Tribune
Business: “I don’t think it’s so simple. “I do not think there should be a carte blanche repeal of the Grand Bahama (Port Area) Investment Incentives Act to give the GBPA, Hutchison and all the licensees a 20-year extension.” Explaining his rationale, he added: “As licensees we would all welcome that, but the deal with Hutchison was that it should take over the Port licensees and make a success of it. “Not only does it have the maritime sector, the airport and control of the land, but it was supposed to make a successful go of two things: Development of the land, and development of tourism. “It has failed miserably in both respects, which is why I am very much opposed to the Government buying the Grand Lucayan hotel from Hutchison, as it’s effectively giving Hutchison a ‘get out of jail free’ card. The big boys have to step up to the plate before we give them carte blanche.”
Minister pledges cruise line reset From pg B1 lines to be a little fairer in terms of a little more of the GDP effect coming into the economy. “The situation as it is now is unsustainable with the way it is structured. The cruise ship companies come in now and make all the money, and we have nothing.” Mr D’Aguilar spoke out after Tribune Business reminded him of the concerns frequently expressed to this newspaper by Bahamian-owned shore
excursion, tour and attraction providers about cruise industry practices. These complaints, usually made privately to this newspaper out of fear of losing the cruise lines’ business, frequently revolve around the on-board marketing programmes that direct passengers to patronise certain land-based businesses when the ships arrive in the Bahamas. Another outcry has been that cruise lines sometimes dictate the margins and mark-ups that Bahamianowned businesses can
COMMONWEALTH OF THE BAHAMAS IN THE SUPREME COURT Equity Side
2017/CLE/QUI/00487
BETWEEN IN THE MATTER of all that piece parcel or Lot of land being Lot No. 21 containing 7,000 Sq. Ft situated on the Northern side of Berry Avenue in Yamacraw Beach Estates in the Eastern District of the Island of New Providence one of the Islands of the Commonwealth of the Bahamas bounded on the NORTH by Lot 6 by Land the property of Deborah Bastian, the Petitioner and running thereon Seventy Feet (70.00) and bounded on the EAST by Lot 22 and running thereon One Hundred feet (100.00) and bounded on the SOUTH by a road reservation and running thereon Seventy Feet(70.00) and bounded on the WEST by Lot 20 and running One Hundred Feet (100.00) and which said piece parcel or Lot of Land has such position shape marks boundaries and dimensions as are shown on the diagram or plan filed in this matter being recorded as Lot 7 of Block 4 at the Department of Lands and Surveys. AND IN THE MATTER of the Quieting Title Act, 1959 CH. 393 AND IN THE MATTER of the Petition of Deborah Bastian NOTICE The Petition of Deborah Bastian of Nassau, New Providence Bahamas in respect of all that piece parcel or Lot of land being Lot No. 21 containing 7,000 square feet situated on the Northern side of Berry Avenue in Yamacraw Beach Estates in the Eastern District of the Island of New Providence one of the Islands of the Commonwealth of the Bahamas bounded on the NORTH by Lot No. 6 by land the property of Deborah Bastian, the Petitioner and running thereon Seventy feet (70’) and bounded on the EAST by Lot 22 and running thereon One Hundred feet (100’) and bounded on the SOUTH by a road reservation and running thereon Seventy (70.00’) Feet and bounded on the WEST by Lot 20 and running thereon One Hundred Feet (100.00’) and which said piece parcel or Lot of Land has such position shape marks boundaries and dimensions as are shown on the diagram or plan filed in this matter being recorded as Lot 7 of Block 4 at the Department of Lands and Surveys. Deborah Bastian Claims to be the Owner of the fee simple estate by being in possession of the said land free from encumbrances for over 20 years. And the Petitioner has made application to the Supreme Court of the Commonwealth of the Bahamas under Section 3 of the Quieting Titles Act, 1959 to have her title to the said land investigated and the nature and the extent thereof determined and declared in a Certificate of Title to be granted by the Court in accordance with the provisions of the said Act. Notice is hereby given that any person or persons having an adverse claim shall on or before the 25th day of September, A.D. 2017 file in the Supreme Court and serve on the Petitioner or the undersigned a form verified by an affidavit to be filed therewith. Failure of any such person to file any such claim on or before Monday the 25th day of September, A.D. 2017 shall operate as a bar to such Claim. A copy of the filed plan may be inspected at: 1. The Registry of the Supreme Court, British American Bank Building, Marlborough Street, Nassau, Bahamas; 2. Raymond A. Rolle & Co., No. 39 Kemp Building, East Street, Nassau, Bahamas. Dated the 2nd day of August, A.D. 2017 Raymond A. Rolle & Co. Chambers No. 39 Kemp Building East Street Nassau, Bahamas Attorneys for the Petitioner
DIONISIO D’AGUILAR earn, impacting their ability to generate profits and survive. The cruise industry’s increasing use of Bahamian private islands is also a concern, as the lines typically run and control the attractions there themselves, leaving little opportunity for Bahamian entrepreneurs and creating just a few local jobs. On the flip side, the cruise industry has long complained about the condition of Prince George’s Wharf and the lack of attractions for passengers, while New Providence’s crime issues have also been a sector concern. “That’s got to change,” Mr D’Aguilar said in response. “You’re not going to come to this destination and be greedy, and get it all for yourself. “Once we come up with something new, innovative and different, our people have the right to access these passengers. Give us some hope, as they say.”
The various Hutchison entities hold 50 per cent equity stakes in, and have management control of, the Freeport Harbour Company, Grand Bahama International Airport Company, and the Grand Bahama Development Company (DevCo). They also hold a majority stake in the Freeport Container Port. As a result, Mr Smith said the conglomerate controlled all air and sea access, and transportation, to Freeport, and “the most valuable asset, which is all the acreage in all of Lucaya” via DevCo. Many observers believed that the Christie administration gave up much of its leverage over the GBPA and Hutchison by agreeing the ‘blanket’ 20-year renewal of their tax breaks. The threat, or actual imposition, of real property tax on Freeport’s two largest landowners - DevCo and Freeport Commercial & Industrial (the GBPA) - would have introduced significant multi-million dollar annual
‘carrying costs’ that might have forced both to start developing these holdings. The Christie government, though, is thought to have agreed to Hutchison’s 20-year extension as a ‘trade-off’ for agreeing to waive its port exclusivity to facilitate the Carnival project, and as an incentive for the $300 million Container Port expansion. However, Mr Smith argued: “They [Hutchison] have failed miserably to develop the land bank, and made promises to expand the Container Port and Harbour, which we have yet to see. “The international airport’s domestic terminal is operating from an old hangar. It’s a disgrace that the second city’s airport is operating from an old, refurbished hangar. That shows me the disconnect and disrespect that Hutchison and the Port Authority have for licensees and residents in Freeport.” Describing the Grand Bahama (Port Area) Investment Incentives Act
as “an abysmal piece of legislation” that merely removed regulatory authority from the GBPA to the Government, Mr Smith said the Bahamas needed “to carefully consider” what will replace it. He called for negotiations involving the Government, GBPA, Hutchison and licensees to develop a Freeport (Grand Bahama) Recovery Act 2017, adding: “It’s not just happy days for the GBPA and Hutchison. “I will not encourage; in fact, I will discourage, the Government from giving them a carte blanche extension. There is a ready-made formula here for the success of Freeport, and if the Recovery Act is ambitiously and imaginatively crafted, it could be so attractive for the overflow of investors, residents and housing from New Providence. “I hope this administration can somehow negotiate, in an investor friendly way, a miracle for Freeport and, by extension, the Bahamas.”
The Minister, meanwhile, said data showing the Bahamas has endured one of the lowest tourism growth rates in the Caribbean over the past five years “speaks volumes” as to why gross domestic product (GDP) has expanded so little. Central Bank figures showed Cuba enjoyed the strongest 2016 growth with a 13 per cent expansion in arrivals, due largely due to the US easing travel restrictions under the Obama administration. More revealing was the cumulative performance since 2011, the Central Bank saying: “Over the last five years, the growth rates were strongest for Cuba (8.1 per cent), the Dominican Republic (5.1 per cent) and Jamaica (4.6per cent), while for the Bahamas the average was 2.4 per cent.” With its Caribbean counterparts again seemingly expanding faster than the Bahamas in its most important industry, Mr D’Aguilar said: “The report speaks volumes that we are not exciting enough people to come to our destination and to vacation here. “If you drill down deeper into those numbers, the scary thing is stopover visitors are not growing at all. What growth we’re getting is from cruise passengers. “While the number of cruise passengers has increased significantly over the years, giving us this growth, they’re spending less and less, the GDP effect is marginal, and
that’s why the economy is not growing.” The Florida-Caribbean Cruise Association’s (FCCA) last tri-annual survey of the sector’s impact revealed that per capita passenger spending in the Bahamas had actually increased, from $64.81 in 2012 to $82.83 in 2015. But combined passenger expenditure in Nassau and Freeport remained stubbornly flat. Mr D’Aguilar told Tribune Business that while cruise passengers accounted for 75 per cent of the Bahamas’ visitors, they are “only spending 25 per cent of the money”. He added that it was key to grow stopover, or hotelbased, visitors, and improve yields/per capita spending from both these visitors and cruise passengers. “I would challenge anyone to drill down and focus on stopover visitors, as they spend the money in our economy, and whether that’s improving,” he said. “That’s what I’m focused on.” While Baha Mar’s net 2,300 room increase is the hoped-for catalyst to increase stopover visitor numbers, Mr D’Aguilar said the Bahamas needed its private sector to “step up” and provide new experiences for both land-based and cruise passengers. “We’ve got lots and lots of cruise passengers,” he added, “and it’s not important to grow that number. We have to find out ways for them to spend more
money when they come here. That’s the challenge. “We’ve been focused on on growing volumes, and when they come here there’s less and less interesting things for them to do. It’s a product we should not be proud of. “We want Bahamians to come forward. These are entrepreneurial opportunities. We have 4.5 million people dropping into our port, and we have to come forward with creative ideas, and get people engaged and spending money when they come here.” Mr D’Aguilar said per capita cruise passenger spending yields were $100 higher in Aruba when compared to the Bahamas. Issuing a call to action, he added: “Instead of sitting around and waiting for tourists to spend money, we have to find ways to get them to spend money, and that’s where I need the private sector to step up. “This is a people business. We have to engage with the people, and show we’re creating something of value, interest and is experiential. This is a huge opportunity for Bahamians that we’re not tapping into. “Make something interesting, make something fun, and they will spend the money. Let the Ministry assist you in getting the passengers. That’s where we come in. That’s our job.”
Freeport law firm invites applications for the following position:
Associate Attorney – Litigation The successful candidate will be required to perform a full range of litigation tasks from case inception through discovery process, trial, post-trial proceedings and case closure; ability to draft pleadings and motions and research case law; support supervising attorney in the preparation of legal arguments; minimum of 5 years’ experience required. Applicants must be able to work independently, possess exceptional organizational and communication skills and have a thorough working knowledge and technical competence in the particular area. Computer literacy, including advanced proficiency in the use of Microsoft applications required. Compensation: commensurate with qualifications and experience, attractive benefits. Only short-listed applicants will be contacted. Reply in confidence to: freeportvacancies@gmail.com
Growing wholesale and retail company seeks to employ: GENERAL MANAGER WAREHOUSE MANAGER MECHANIC SHIFT MANAGERS Send resume to resume@acgbahamas.com
THE TRIBUNE
Friday, August 4, 2017, PAGE 5
Govt can save $80m by ‘verifying’ workers From pg B1 make sure that you are in the public service.” Highlighting areas where taxpayers lost money, Mr Pinder said “there have been incidents” where civil servants were still being paid their regular salary despite having been convicted and incarcerated in Fox Hill prison. He added that families had continued to receive the salaries of civil service relatives who were long deceased, while there was a pressing need for the Government to ensure it could locate persons on paid administrative leave - some who had been in that position “for many years”. “They have persons on the Government’s pay sheet that they can’t locate,” Mr Pinder told Tribune Business. He added while such problems were “not too widespread, they’re sufficient that they need to be addressed”. Asked how much the Government could potentially save from this effort, he replied: “They may be able to save as much
as 3 per cent of recurrent expenditure.” Based on the $2.67 billion recurrent (fixed cost) Budget for 2017-2018, a 3 per cent saving translates into an $80.1 million spending cut. Should this be achieved, it would leave the Minnis administration almost one-third of the way along the road to its main goal of a 10 per cent cut in total spending. Mr Pinder suggested there was further room to cut beyond the Government’s ‘employee verification exercise’, identifying several areas he believed were afflicted by excessive salaries, unnecessary hiring and contract excesses. “I think there are a number of persons that have been re-engaged by the public service that do not have the ability,” the BPSU president told Tribune Business. “It’s more political patronage, finding a small project they can work on and keeping them there for three years, but it only takes six months.”
Mr Pinder said the Government would also enjoy “a big saving” by allowing persons on short-term contracts to leave once these deals expired, especially if there is little to nothing for them to do. He also criticised the frequent practice of reengaging former civil servants, who had retired, at vastly superior salaries to those previously enjoyed. Mr Pinder said this was against General Orders, which govern the public service’s conduct. “Look at the salaries offered to people who retire and come back; these are much higher than the ones they left on,” he added. “If you retire and come back, General Orders says you should come back at least two levels below where you were when you left. The Government needs to put more emphasis on succession training, so these persons nearing retirement age can pass over to an understudy when they leave.” Mr Pinder said the Government could also save taxpayer monies by properly using public sector maintenance staff, and ensure they were provided
with the right equipment, as opposed to outsourcing such contracts to the private sector. “There’s a lot of work being contracted out to the private sector that can be done in the public service,” he told Tribune Business. “The Government has an entire maintenance team in the Ministry of Works that’s not being fully utilised.” The BPSU chief said that properly using these workers would enable ongoing maintenance of government buildings, potentially reducing the annual summer spend on school repair contracts and such like. “They also need to invest in some modern equipment that can help the staff with workload,” Mr Pinder said. “There’s a lot of work being outsourced to the private sector because they have better equipment.” K P Turnquest, the deputy prime minister, confirmed on Wednesday that the employee verification exercise, announced by the Public Treasury Department on July 31, was designed to “clean up” the Government’s $650 million-plus annual wage bill.
He added that it was also designed to improve public sector efficiency and maximise the Government’s resources, matching public service skills to appropriate positions. “That’s exactly right,” Mr Turnquest responded, when asked if the “verification exercise” was intended to eliminate corrupt workplace practices, such as employee “double dipping’’ and pay cheques being issued to non-existent staffers. “We’re just verifying that we’re not paying phantoms,” he told Tribune Business. “We want to do our best with this verification exercise so that we can clean up the payroll, and know who we’re dealing with and where they are. “We need to determine what we have in the public service, both in terms of who’s available, what skills they have, where they are located, and whether they exist or whether there is any duplication or phantoms in the system. “This will help identify employees, and make sure they are deployed appropriately. We will go through the process and see what it determines.”
All civil servants, whether employed monthly or weekly, have to present themselves and their identification to “designated verification centres” during working hours between 9am and 4pm. The exercise, which is to last from August 8 to August 31, also applies to Ministry of Foreign Affairs and Ministry of Tourism personnel deployed overseas. “Persons who fail to present themselves to be verified will have their salary interrupted from September 2017 until such time as they comply with the verification and reinstatement process,” the Public Treasury’s circular warns. “It is imperative that you inform all of your officers immediately, wherever they are assigned overseas and in the Bahamas, to present themselves to the designated verification centres within the above time period.” The Government’s move sends another signal of its intent to “drain the swamp” and impose discipline on the public sector’s spending/costs -- an action prompted by the Bahamas’ continuing fiscal crisis.
Bank of England cuts growth forecasts, keeps rates low By DANICA KIRKA Associated Press LONDON (AP) — The Bank of England kept interest rates on hold Thursday as it cut growth forecasts for this year and next, saying that it expects the economy to remain “sluggish” as household incomes are squeezed by inflation that followed the Brexit vote. The bank’s Monetary Policy Committee voted 6-2 to keep rates at a record-low 0.25 percent amid uncertainty about Britain’s economic prospects when it leaves the European Union in 2019. The central bank cut its estimate for economic growth this year to 1.7 percent from the previous estimate of 1.9 percent, and to 1.6 percent in 2018 from 1.7 percent. Bank Governor Mark Carney said companies are reining in spending because the details of Britain’s
future relationship with the EU are still unclear, even as consumers tighten their belts because the pound’s weakness has made many imported goods more expensive. Negotiations between the two sides are in their early stages, with differences over immigration and financial obligations threatening Britain’s goal of retaining access to the European single market. Brexit uncertainty “weighs on the decisions of businesses and households and holds down both demand and supply,” Carney told reporters after the bank released its quarterly review of economic trends. The pound fell 0.7 percent to $1.3132 in early afternoon trading as the prospect of slower economic growth damped expectations for a rate increase in the next few months. The currency had risen to an 11-month high
after the MPC’s previous meeting, when three policymakers voted to raise rates. Some economists had called for a rate increase after inflation accelerated to 2.9 percent in May, well above the bank’s target of 2 percent. But the rate dipped to 2.6 percent in June, easing pressure for a rise. While rates are on hold for now, the bank warned they may eventually rise more quickly than markets seem to expect. For example, Howard Archer, chief economist of the EY ITEM Club, has predicted rates will rise to 0.50 percent by the third quarter of 2018. “If the economy follows a path broadly consistent with its central projection, then monetary policy could need to be tightened by a somewhat greater extent over the forecast horizon than the very gently rising path implied by the market
BANK of England Governor Mark Carney addresses the media during a press conference to deliver the quarterly inflation report in London yesterday. (AP Photo/Frank Augstein, Pool)
yield curve at the time of the forecast,” Carney said. But as with many things in Britain these days, the specter of Brexit overshadowed everything. The bank’s outlook for growth, inflation and consumer
borrowing are all contingent on the government’s ability to negotiate a divorce settlement that minimizes any disruption to trade and investment. “Strong words from Mr. Carney,” said Aberdeen
Asset Management Chief Economist Lucy O’Carroll. “His main message is that interest rates will have to rise in the next two years because of the damage Brexit is already doing to the economy.”
A Critical Thinker, Analytical, and a Passion for Problem-Solving We are growing! Fidelity Bank invites applications for the position of:
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 & 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.
Key Qualifications & Experience: • Bachelor’s Degree in a business-related field • Minimum 2 years’ experience in the Financial Services Industry or Hospitality Industry • Excellent communication skills (verbal and written) • Ability to prioritize, meet tight deadlines and work well under pressure • Limited travel may be required • 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 August 11th, 2017 to:
HUMAN RESOURCES Re: Associate Internal Auditor careers@fidelitybahamas.com
ABSOLUTELY NO PHONE CALLS
A competitive compensation package will be commensurate with relevant experience and qualification.
PAGE 6, Friday, August 4, 2017
THE TRIBUNE
Global stocks mixed after Dow record, pound falls By YURI KAGEYAMA Associated Press
TOKYO (AP) — Global stocks were mixed on Thursday as investors looked to see whether the Dow Jones industrial might add to its record close from the day before. The pound slumped after the Bank of England kept its key interest rate at a record low. KEEPING SCORE: France’s CAC 40 rose 0.4 percent to 5,126 while Germany’s DAX was down 0.2 percent at 12,155. Britain’s FTSE 100 gained 0.5 percent to 7,447. U.S. shares were set to drift lower with Dow and S&P 500 futures both down 0.1 percent. UPBEAT COMPANIES: Upbeat earnings from Apple pushed U.S. markets higher the day before, with the Dow closing above 22,000 for the first time. Investors appear wary of any further major gains and are keeping an eye on more earnings reports for clues. In Europe, profits at industrial giant Siemens and carmaker BMW rose more than expected. BRITISH CAUTION: The Bank
of England left its key rate at a record low and cut its growth forecasts for Britain. The pound fell as a result, as the decision indicated the central bank is unlikely to raise rates any time soon. The British currency was down 0.7 percent at $1.3127. ASIA’S DAY: Japan’s benchmark Nikkei 225 lost 0.3 percent to finish at 20,029.26. Australia’s S&P/ASX 200 slipped 0.2 percent to 5,735.10. South Korea’s Kospi sank 1.7 percent to 2,386.85. Hong Kong’s Hang Seng shed 0.3 percent to 27,531.01, while the Shanghai Composite skidded 0.4 percent to 3,272.93. India’s Sensex fell 0.5 percent to 32,310.37 and markets in Southeast Asia also dropped. ENERGY: Benchmark U.S. crude rose 17 cents to $49.76 a barrel in electronic trading on the New York Mercantile Exchange. It added 43 cents to $49.59 overnight. Brent crude, the international standard, added 19 cents to $52.55 a barrel in London. CURRENCIES: The dollar was down to 110.38 yen from 110.69 yen the day before, while the euro fell to $1.1852 from $1.1856.
A MAN stands in front of an electronic stock board of a securities firm in Tokyo yesterday. Asian markets mostly fell Thursday as the rally from news of Apple’s strong earnings that spurred record highs for the Dow Jones industrial average faded. Myriad worries over China’s rising debt, weaker commodity prices and possible rising tensions between Beijing and Washington overshadowed regional markets. (AP Photo/Sherry Zheng)
EPA chief backtracks on delaying rules reducing emissions By MICHAEL BIESECKER Associated Press WASHINGTON (AP) — One day after 15 states sued him, Environmental Protection Agency chief Scott Pruitt backtracked on delaying Obama-era rules intended to reduce emissions of smog-causing air pollutants. Pruitt contended his agency was being more responsive than past adminis-
trations to states’ needs. He made no mention Wednesday of the legal challenges to his earlier stand. At issue is an Oct. 1 deadline for states to begin meeting standards for ground-level ozone. Pruitt announced in June that he would hold off compliance by one year so the EPA had more time to study the plan and avoid “interfering with local decisions or impeding economic growth.”
NOTICE
NOTICE is hereby given that JACKSON DESIR of Stranchan’s Alley, Kemp Rd., 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 28th day of July, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
In addition to the suit by a group of states led by New York, Pruitt was sued last month by a dozen public health and environmental groups, including the American Lung Association, Physicians for Social Responsibility and the Sierra Club. The EPA was required to file a response in that case by Thursday. Pruitt, who previously was Oklahoma’s attorney general, has long opposed stricter environmental rules. At the EPA, he repeatedly has acted to block or delay regulations opposed by the chemical and fossil-fuel industries. Wednesday’s reversal was the latest legal setback for his agenda. Last month, a federal appeals court in Washington ruled that Pruitt overstepped his authority in trying to stall an Obama administration rule that oil and gas companies
monitor and reduce methane leaks. In a statement, Pruitt suggested his about-face on ozone standards simply reinforced the EPA’s commitment to helping states through the complex process of meeting the new standards on time. “Under previous administrations, EPA would often fail to meet designation deadlines, and then wait to be sued by activist groups and others, agreeing in a settlement to set schedules for designation,” said Pruitt, who sued EPA more than a dozen times as a state official. “We do not believe in regulation through litigation, and we take deadlines seriously. We also take the statute and the authority it gives us seriously.” The EPA’s statement said Pruitt may at some point use his “delay authority and all other authority legally
t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com
BISX ALL SHARE INDEX: CLOSE 1,856.08 | CHG -1.46 | %CHG -0.08 | YTD -82.13 | YTD% -4.24 BISX LISTED & TRADED SECURITIES 52WK HI 4.38 19.17 9.09 3.60 2.41 0.13 6.50 8.60 6.00 10.60 14.49 2.52 1.60 6.00 10.00 11.00 10.00 7.25 12.51 11.00
52WK LOW 4.01 17.43 8.19 3.50 1.47 0.12 3.80 8.40 5.83 9.46 10.00 2.18 1.50 5.80 8.75 7.01 8.00 6.60 11.93 10.00
1000.00 1000.00 1000.00 1000.00
900.00 1000.00 1000.00 1000.00
PREFERENCE SHARES
1.00 106.00 100.00 106.00 105.00 105.00 100.00 10.00 1.01
1.00 100.00 100.00 100.00 105.00 100.00 100.00 10.00 1.01
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 Famguard Fidelity Bank Finco Focol ICD Utilities J. S. Johnson Premier Real Estate Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B
CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00 100.00
52WK LOW 100.00 100.00 100.00
SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS FAM FBB FIN FCL ICD JSJ PRE CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB
SECURITY Fidelity Bank Note 17 (Series A) + Fidelity Bank Note 18 (Series E) + Fidelity Bank Note 22 (Series B) +
SYMBOL FBB17 FBB18 FBB22
Bahamas Note 6.95 (2029) BGS: 2014-12-3Y 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 BG0103 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407
BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
MUTUAL FUNDS 52WK HI 2.07 3.95 1.96 170.77 146.34 1.50 1.67 1.58 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 1.44 1.63 1.55 1.04 6.41 7.62 5.66 8.65 10.54 9.57
LAST CLOSE 4.27 17.43 9.09 3.60 1.47 0.12 4.00 8.60 6.00 10.45 10.01 2.54 1.55 6.00 9.75 7.01 10.00 7.01 12.50 10.00 1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.01 LAST SALE 100.00 100.00 100.00 108.43 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
CLOSE 4.27 17.43 9.09 3.60 1.47 0.12 3.92 8.60 6.00 10.43 10.01 2.54 1.55 6.00 9.75 7.01 10.00 7.01 12.50 10.00
CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 -0.08 0.00 0.00 -0.02 0.00 0.00 0.00 0.00 0.00 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 1.01
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
CLOSE 100.00 100.00 100.00
CHANGE 0.00 0.00 0.00
108.30 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
-0.13 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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
37,250 45,000 1,000 19,450
2,803
VOLUME
NAV 2.07 3.95 1.96 174.30 146.25 1.50 1.63 1.58 1.08 6.92 8.03 6.15 10.52 11.46 10.01
EPS$ 0.444 0.932 -0.510 0.383 -0.340 0.000 -0.760 0.587 0.190 0.540 0.570 0.102 0.455 0.753 0.763 0.330 0.830 0.600 0.697 0.000
DIV$ 0.080 1.000 0.000 0.210 0.000 0.000 0.000 0.300 0.220 0.360 0.570 0.060 0.060 0.290 0.450 0.000 0.340 0.140 0.620 0.000
P/E 9.6 18.7 N/M 9.4 N/M N/M -5.2 14.7 31.6 19.3 17.6 24.9 3.4 8.0 12.8 21.2 12.0 11.7 17.9 0.0
YIELD 1.87% 5.74% 0.00% 5.83% 0.00% 0.00% 0.00% 3.49% 3.67% 3.45% 5.69% 2.36% 3.87% 4.83% 4.62% 0.00% 3.40% 2.00% 4.96% 0.00%
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 7.00% 6.00% Prime + 1.75%
MATURITY 19-Oct-2017 31-May-2018 19-Oct-2022
6.95% 4.00% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%
20-Nov-2029 15-Dec-2017 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022
YTD% 12 MTH% 2.34% 4.55% 0.90% 1.64% 1.21% 2.55% 3.48% 4.01% 3.17% 7.00% 2.15% 4.22% -1.93% -1.89% 0.81% 2.21% 2.28% 1.30% -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-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 31-May-2017 30-May-2017 30-May-2017 30-May-2017 30-May-2017 30-May-2017
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
setts, Minnesota, New Mexico, Oregon, Pennsylvania, Rhode Island, Vermont and Washington, and the District of Columbia. Ground-level ozone is created when common pollutants emitted by cars, power plants, oil refineries, chemical plants and other sources react in the atmosphere to sunlight. The resulting smog can cause serious breathing problems among sensitive groups of people, contributing to thousands of premature deaths each year. “These safeguards are essential because smog pollution can trigger asthma attacks, cause irreversible lung damage or even death,” said Mary Anne Hitt of the Sierra Club. “However, with an administration that prizes corporate polluters and its own extreme agenda more than the health of the public, we can’t let up on our fight to protect our families.”
NOTICE
MARKET REPORT THURSDAY, 3 AUGUST 2017
available” to ensure regulations “are founded on sound policy and the best available information.” Republicans in Congress are pushing for a broader rewrite of the ozone rules. A House bill approved last month seeks to delay the 2015 rules at least eight years. The Senate has not voted yet. New York’s attorney general, Eric Schneiderman, said the states intend to keep up the pressure. “The EPA’s reversal — following our lawsuits — is an important win for the health and safety of those 6.7 million New Yorkers, and the over 115 million Americans directly impacted by smog pouring into their communities,” Schneiderman said. New York was joined in the case by California, Connecticut, Delaware, Illinois, Iowa, Maine, Massachu-
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
NOTICE is hereby given that FELICIA L. ALLEYNE of 5 Vignette Street, off Soldier Rd., 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 28th day of July, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE Brightwaters Consulting S.A. (In Voluntary Liquidation) Notice is hereby given that, in accordance with Section 138 (4) of The International Business Companies Act 2000 the abovenamed Company is in dissolution, which commenced on the 1st, day of August 2017. The Liquidator is Kim Thompson of Nassau Bahamas.
Kim Thompson (Liquidator) LEGAL NOTICE NOTICE INTERNATIONAL BUSINESS COMPANIES ACT (No.45 of 2000) In Voluntary Liquidation
Notice is hereby given that, in accordance with Section 138 (4) of the International Business Companies Act, (No.45 of 2000), AZ INVESTMENT FUND LTD. (the “Company”) is in dissolution. The date of commencement of the dissolution is August 03, 2017. Alan Zelazo is the Liquidator and can be contacted at Rua Coronel Artur de Paula Ferreira, 227 – Apt. 41, Vila Nova Conceicao, CEP 04511-060, São Paulo – SP, Brazil. All persons having claims against the above named Company are required to send their names, addresses and particulars of their debts or claims to the Liquidator before September 04, 2017.
Alan Zelazo Liquidator
THE TRIBUNE
Friday, August 4, 2017, PAGE 7
SENATE PASSES LEGISLATION TO ENSURE NO HALT IN FDA REVIEWS By KEVIN FREKING Associated Press WASHINGTON (AP) — Drug and medical device makers would pay higher user fees under legislation the Senate approved and sent to the president on Thursday. The revenue raised would help pay for the government reviews required to bring their products to the market. Senate Majority Leader Mitch McConnell, R-Ky., said the bill’s passage will ensure the review of medical devices and medicine won’t come to a screeching halt in a few weeks. The current law governing these fees expires Sept. 30. The legislation cleared the Senate on a vote of 941. The bill also includes measures to help an array of patient groups around the country such as children with cancer and people with hearing problems. The legislation rejects the Trump administration’s recommendation to fund FDA reviews entirely through user fees. Doing so would have upended several months’ worth of negotiations over the fees, which will generate between $8 billion and $9 billion over five years. The administration had argued that “in an era of renewed fiscal restraint, industries that benefit directly from FDA’s work should pay for it.” The House approved the bill last month. It is one of the final measures the Senate planned to consider before lawmakers leave Washington for their August recess. The legislation covers much more than user fees. In a bid to improve treatment options for children in cancer, the bill requires companies developing can-
cer drugs for adults to also study their suitability for children when there is an indication it could help kids as well. Patient groups say there is little market incentive for the pharmaceutical industry to develop pediatric oncology drugs because the population is small compared to the adult population. Most drugs used for pediatric cancer were specifically approved for adults, and the advocacy group Kids v Cancer reports that there are almost 900 drugs in the adult cancer pipeline, but only a handful in development for children. The bill also instructs the FDA to revise its regulations to establish a category of hearing aids that could be sold without a prescription. The idea behind the change is to give people with mild to moderate hearing loss greater access to hearing aids in the same way that people can buy reading glasses. Supporters said the measure will drive down the cost of hearing aids. The lone “no” vote came from Vermont Sen. Bernie Sanders. Sen. Ron Johnson, RWisc., lifted objections to taking up the bill after securing a vote for separate legislation aimed at allowing terminally ill patients to get investigational medical treatments where no alternative exists. Johnson’s legislation also passed the Senate on Thursday. While the FDA user fee bill had widespread support, the Project on Government Oversight, a watchdog group, said Congress should rethink a system that leaves the FDA so beholden to industry for funding and the terms of the funding.
US stocks slip, with bigger losses for smaller companies By MARLEY JAY Associated Press NEW YORK (AP) — Losses for energy and technology companies left most U.S. stocks lower on Thursday. Smaller companies fared worse as the dollar remained at 15-month lows. Energy companies weakened as the price of oil turned lower, and technology companies declined as Apple gave up a piece of its big gain from the day before. Investors bought government bonds after some shaky economic news in the U.S. and the U.K. That sent bond yields down, which hurt financial companies. Industrial companies like 3M did well, and so did large drugmakers like Pfizer. Small companies, which surged in November and December, have slumped this week. Firearms maker Sturm Ruger tumbled Thursday after it said sales fell in the second quarter, and sporting goods companies like Big 5 and Vista Outdoor also sank. Smaller banks fared worse than larger ones. Julian Emanuel, an equity strategist for UBS, said that as the dollar continues to lose strength, investors are selling smaller and more domestically-focused companies and buying more international businesses, as the weaker dollar will help their profits and sales outside the U.S. “Most people didn’t expect the degree of dollar weakness that we’re seeing,” he said. The ICE U.S. Dollar Index is down 9 percent this year and hasn’t been this low in about 15 months. The Standard & Poor’s 500 index shed 5.41 points, or 0.2 percent, to 2,472.16. The Dow Jones industrial average notched its eighth
THE NEW York Stock Exchange at sunset, in lower Manhattan. U.S. stocks are skidding early yesterday, as banks, technology and health companies all start the day lower. Prescription drug distributor AmerisourceBergen and women’s health diagnostic company Hologic tumbled, while a solid quarter from cereal maker Kellogg helped makers of food and household move higher. (AP Photo/Mary Altaffer, File) gain in a row and added 9.86 points, or less than 0.1 percent, to 22,026.10. The Nasdaq composite lost 22.30 points, or 0.4 percent, to 6,340.34. The Russell 2000 index of smaller companies sank 7.67 points, or 0.5 percent, to 1,405.23 after a sharp loss a day ago. Near the close of trading, stocks turned a bit lower after the Wall Street Journal reported that Special Coun-
sel Robert Mueller has impaneled a grand jury in his investigation of Russia’s interference in the 2016 presidential election. Companies have reported strong second-quarter results lately as corporate earnings continue to grow, But with stocks at record highs, the market hasn’t reacted very much: the S&P 500 flat over the last two weeks.
Companies that didn’t live up to investors’ expectations took losses. Security software maker Symantec announced disappointing first-quarter sales, and its forecasts for the rest of the year weren’t as good as analysts had hoped. The company also agreed to sell its website security business to DigiCert for $950 million in cash and a 30 percent stake in DigiCert.
PAGE 8, Friday, August 4, 2017
THE TRIBUNE
PUERTO RICO GOV VOWS TO FIGHT POSSIBLE FURLOUGHS AMID CRISIS By DANICA COTO Associated Press SAN JUAN, Puerto Rico (AP) — Puerto Rico’s governor made a last-ditch effort Thursday to persuade a federal control board that furloughing tens of thousands of government workers would be an unnecessary blow to the U.S. territory’s struggling economy. Gov. Ricardo Rossello spoke at a news conference looking ahead to a Friday meeting at which the board that oversees the
island’s finances is scheduled to vote on whether to order furloughs and other measures to rein in spending by the debt-laden government, whose revenues have been strained by a 10-year recession. Rossello said the Puerto Rico administration has nearly $1.8 billion in cash, which he says is far more than what the board has required to avoid furloughs. The governor has vowed to go to court to fight any furloughs, which he said Thursday would have a
$600 million negative economic impact. “We will defend the people of Puerto Rico in any forum,” he said. “This measure is unnecessary and foolish.” The board has not publicly said whether it will vote in favor of furloughs or take other actions during its meeting Friday. Board members did not immediately reply to a request for comment. In setting up the board last year, Congress gave the board wide-ranging
power to oversee the island government’s finances, but Rossello said he is ready to fight it. “The one who decides public policy here is Puerto Rico’s government,” he said. The board earlier this year proposed furloughs of two days a month for teachers and four days a month for other government workers as a way to cut government spending by up to $40 million a month. In addition, all Christmas bonuses could
be eliminated by fiscal year 2018. The board also is expected to talk on Friday about ways to reform the public pension system, which faces nearly $50 billion in liabilities. More than a dozen municipalities across Puerto Rico already have implemented their own furloughs in recent months as they struggle with shrinking budgets. Some have eliminated up to 20 hours a week, which means a salary cut of up to $500 a month for some workers.
Overall, Puerto Ricans have been hit with new taxes, higher utility rates and other austerity measures as the government seeks to restructure a portion of its more than $70 billion public debt through a lengthy, bankruptcy-like process that recently began in federal court. The U.S. territory has defaulted on millions of dollars’ worth of government bonds in recent years, angering creditors seeking to recuperate a portion of their investments via lawsuits.
HOW REALISTIC ARE PLANS TO BAN NEW GAS AND DIESEL CARS? By DAVID MCHUGH Associated Press FRANKFURT, Germany (AP) — Ban the sale of gasoline and diesel cars by a deadline — 2040, 2030, even 2025. More and more governments are proposing just that. But how seriously can such deadlines be taken? The issue of how to phase out polluting traditional engines has been pushed to the forefront by scandals and crises. First Volkswagen’s admission to cheating on U.S. diesel emissions tests, and more recently a push by cities in Germany and elsewhere to ban diesels to make the air cleaner. The political desire to switch to get rid of traditional engines, however, runs into a number hurdles in the real world. More recharging stations need to be set up globally, at a potentially high cost. And millions of jobs depend on the production of internal combustion engines, making the decision politically difficult in many places. “I think there’s a majority, especially in cities, who say ‘we need change,’” says Dieter Janecek, a member
of Germany’s Green party who is campaigning for reelection in the national poll Sept. 24 on his party’s official call for an end to new gas and diesel sales by 2030. He is running not just from anywhere but from Bavaria, home to auto giant BMW. Yet he thinks the call to phase out traditional engines is a winner. Janecek, 41, says that many people are “skeptical of the internal combustion engine, because they have to live with the consequences and the emissions.” That’s particularly true of urbanites — more than half the residents of Munich’s innermost neighborhoods don’t even own a car. And it is in cities where the pollution issue is most pressing. A lot would have to happen before such a big move happens, however. There aren’t enough public fast-charging stations that can enable longer trips with all-electric cars. Janecek loves his electric Renault Zoe, which has enough range to make campaign trips and then get back home to recharge overnight. But for longer trips, he and his wife rely on her conventional Toyota Yaris, a com-
mon compromise arrangement among early adopters. Experts say electrics could start to beat gas and diesel on cost and convenience by the mid-2020s as battery range and infrastructure improve. Janecek concedes that “yes, it’s very ambitious. On the other hand, there are countries like Norway that want to move ahead faster. I am convinced it will happen.” And then there is the impact on those who make gas and diesel engines. Banning internal combustion engines from 2030 would affect more than 600,000 jobs in Germany directly or indirectly, or 10 percent of the nation’s workforce, according to a study commissioned by the German Association of the Automotive Industry. That may be why the dates touted by governments to end the sale of traditional engines look more like soft targets than drop-dead dates. Norway has aggressively promoted electrics, but even there the proposed elimination of gas and diesel except for hybrids by 2025 is a goal to be achieved, not a fixed date for a ban. France and
FROM right to left : Harald Krueger, CEO of German car maker BMW, Dieter Zetsche, chairman of German car maker Daimler AG and head of Mercedes-Benz cars and Matthias Mueller, CEO of German car maker Volkswagen have taken seat to attend a so-called diesel summit on Wednesday, Aug. 2, 2017 in Berlin. German government officials and automakers meet to discuss the future of diesel vehicles, after a nearly two-year saga of scandal spread from Volkswagen to others in the sector. (Axel Schmidt/Pool Photo via AP) Britain are looking at 2040 — so far ahead that the politicians involved will no longer be around and technology will have changed in ways that are hard to predict. The former Netherlands cabinet proposed all electrics by 2035, but a new government will have to take the final decision. Carmaker Volvo said in July that all its models will have an electric motor from 2019 onwards. However, many of those cars will
be hybrids, which also have an internal combustion engine and are regarded as a halfway house to emissionsfree driving. In California, the powerful Air Resources Board is pushing manufacturers to include more zero-emission vehicles in their lineups, without calling for a ban by a specific date. China is heavily incentivizing electrics. Still, soft goals can have serious impact; Norway
reached its target of 50,000 electrics in 2015, three years ahead of schedule. “It’s an easy thing to say, especially since some of those politicians will not be around in 2040,” said Brett Smith, assistant director of the manufacturing, engineering and technology group at the Center for Automotive Research in Ann Arbor, Michigan. “The practicality of it is another matter.”