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MONDAY, AUGUST 10, 2020

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Foreign investment flows slump by 33% By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

OREIGN direct investment (FDI) inflows into the Bahamian economy fell by one-third in 2019, it has been revealed, signalling it is unlikely to fill the COVID-19 foreign currency vacuum left by tourism. The just-released World Investment Report 2020 produced by United Nations (UN) agency, UNCTAD, disclosed that FDI inflows to this nation fell by 32.8 percent yearover-year to $637m to reach a level equal to just 20 percent of their peak achieved in 2014 when Baha Mar’s construction was being raced to its completion (unsuccessfully at that time). “FDI inflows to The Bahamas, the largest host economy among small island developing states (SIDS), shrank by a third to $637m, one-fifth

• Bahamas attracted just 20% of recent peak in 2019 • Signals struggle for FDI to replace tourism earnings • Call for investment refocus on digital, ‘value added’

of the peak registered in 2014,” UNCTAD said. “Investment in hotel projects slowed, and construction projects slated to start in 2019 were forced into a delay by Hurricane Dorian.” While acknowledging that data was not available for The Bahamas, UNCTAD warned that this nation was likely to be especially hard hit by COVID-19 given its traditional high dependency - and that of other SIDS on reinvested earnings by overseas investors. “Negative operational results of global multinational enterprises in 2020 will automatically affect FDI in SIDS through reinvested earnings,” UNCTAD added. “Host economies such as Fiji and Solomon Islands, with a high dependency on

Shell urges ‘timely’ power plant closing By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMAS Power & Light’s (BPL) chairman yesterday pledged he is focused on “getting the best possible deal” for its new power plant as its multinational partner called for “the timely closure” of negotiations. Dr Donovan Moxey, pictured, told Tribune Business that BPL’s Board, which he heads, was being “very careful and prudent”

in the long-running talks with Shell North America over the planned multi-fuel power plant for New Providence given that the final agreement would be binding on the Bahamian people for 20-25 years. “This is something we’ve promised to the Bahamian people from day one,” Dr Moxey said. “We’re negotiating a 20-25 year deal that is very important to the Bahamian people and customers of BPL. We’re

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Lockdown ‘seesaw’ simply unsustainable By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net ELEUTHERA’S Chamber of Commerce president has warned the economy “cannot live on the lockdown seesaw for ever”, with The Bahamas now facing a “salvage” as opposed to recovery operation. Thomas Sands, in e-mailed replies to Tribune Business questions just prior to the prime minister’s confirmation yesterday afternoon that Eleuthera has its first

confirmed COVID-19 case, said business confidence had been “shaken” by the latest lockdown and the uncertainty of what will happen once it ends. Calling for a “clearlydefined strategy” to address all COVID-19 eventualities, he added that the primary concern was to ensure that the cycle of “opening up and shutting down” was not repeated since it was simply unsustainable for the private sector and wider economy.

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reinvested earnings, will be hit particularly hard. “The comparable data for The Bahamas and Mauritius were not available for 2019. However, in both SIDS, reinvested earnings constituted an important part of FDI flows in 2018: 34 per cent in The Bahamas and 60 percent in Mauritius.” Jamaica, which suffered a smaller 14.1 percent decline in 2019 FDI inflows, outpaced The Bahamas by attracting some $700m from external sources last year. And UNCTAD warned that Latin American and the Caribbean will likely suffer the world’s greatest post-COVID-19 drop in FDI inflows of between 40 to 55 percent in 2020. “Global FDI flows are forecast to decrease by up to 40 per cent in 2020, from

their 2019 value of $1.54tn. This would bring FDI below $1tn for the first time since 2005. FDI is projected to decrease by a further five to ten percent in 2021 and to initiate a recovery in 2022,” UNCTAD added. All of which creates a picture suggesting that FDI will be unable to sufficiently fill the gap created by the tourism industry shutdown when it comes to attracting enough foreign exchange earnings to support the one:one fixed exchange rate peg with the US dollar. John Rolle, the Central Bank’s governor, last week called for “urgency” in finding an alternative foreign currency earnings source to tourism. In an indication that the Central Bank is concerned about

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Tourism ‘cannot’ return amid surge By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Bahamas “cannot” relaunch its vital tourism industry until the latest COVID-19 outbreak is contained and a “strict 14-day quarantine” regime in place, a Cabinet minister warned yesterday. Dionisio D’Aguilar, minister of tourism and aviation, warned that “you cannot sell the country” as a potential destination until the current surge in COVID-19 infections - another 20 were confirmed yesterday, taking total active cases to 777 - is brought under control. Describing this as merely “the first step” in reviving The Bahamas’ primary foreign exchange earner, Mr D’Aguilar said the country “still has a couple of months in our quiver of arrows” to get its COVID-19 protocols right ahead of the impending peak winter tourism season that traditionally begins with the late November Thanksgiving holiday. However, with tourism’s return in any significant mass now looking increasingly unlikely before 2021, he added that The Bahamas’ immediate focus

DIONISIO D’AGUILAR beyond this outbreak needed to be placed on developing a quarantine regime that was both sufficiently robust to prevent future COVID-19 surges but did not turn-off potential visitors from travelling. Mr D’Aguilar said the “ideal” scenario might be one where Bahamians did not travel abroad, but the borders were opened to allow tourists to come in. However, acknowledging that the government “cannot mandate that”, the minister agreed that Bahamians had already shown their opposition to any solution that was based on “two sets of rules”, and was discriminatory and unconstitutional. “The desire is to get tourism back up and running

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RIMINALS may be locked down, but are we - as risk and compliance professionals - ensuring they are also locked out of our financial systems? While the cycles of lockdowns and curfews continue based on COVID-19’s worldwide impact, one fact is certain – the threat of financial crimes is very real. Financial crime is simply any criminal action related to financial services, such as money laundering, fraud, terrorist financing, information security intrusion, bribery and corruption. Many of these crimes can be stopped or mitigated if financial institutions clearly identify the source of funds and, if needed, source of wealth from clients during the on-boarding process and duration of their relationships. The Wolfsberg Group,in its August 7, 2020, publication of frequently asked questions (FAQ) on sources of wealth and sources of funds pertaining to private banking/wealth management, said: “Sources of wealth and sources of funds are to be considered among the key elements of customer risk assessment and risk management for certain customers, as defined by each financial institution. “A source of wealth assessment seeks to identify how a customer accumulated their wealth, and

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Lock-out criminals by true client verification BY DEREK SMITH sources of funds information provides a financial institution with the understanding of how - and for what purpose - an account is going to be funded. Sources of wealth/sources of funds assessments allow financial institutions to recognise any risks and note any inconsistencies, which should be addressed and either mitigated or escalated for further review.” This clarification between sources of wealth and sources of funds is paramount to having an effective customer due diligence process. It is recommended by both the Financial Action Task Force (FATF) and the Central Bank of The Bahamas’ anti-money laundering/counter terror financing guidelines that supervised

financial institutions should confirm the source of wealth of potential clients once they are deemed to be high risk. It is against this backdrop, and for good governance, that I would suggest you ask yourself: “How strong is our institution’s risk management framework and, in particular, the risk identification and assessment stage?” No standard approach

Scotiabank set to expand new deposit ABM roll-out SCOTIABANK (Bahamas) has confirmed it plans to expand the roll-out of its “smart” or Intelligent Deposit Machine (IDM) network to improve convenience and efficiency for its customers. Roger Archer, Scotiabank (Bahamas) managing director, said six IDMs have already been installed across The Bahamas, with work now ongoing to increase

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that number to eight by the end of 2020. The IDM devices are currently available at Scotiabank branch locations in Freeport, East Bay Street and Paradise Island. However, Mr Archer disclosed that it will be adding two new drive-through locations within the coming months. Scotiabank’s investment in its enhanced deposittaking machines now allows customers to make deposits 24 hours per day. They offer a variety of features including immediate credit on cash deposits, cash denomination options and credit card payments, thereby reducing the number of customers needing to visit a branch. “As the needs of our customers evolve, we are

also seeking to advance the way we serve them while empowering them with the available technology. Our main objective is to make every day banking easier for our customers by using technology to give greater options and convenience,” Mr Archer said. “Our new machines have been critical in helping us to manage risk brought by COVID by minimising inbranch traffic, especially as we aim to comply with the physical distancing requirements set out by the government. “Our staff have been trained and are always available to help to educate persons who are unable, or may find it difficult, to use the ABMs including the elderly.”

Although there has been guidance supplied by regulatory bodies and inter-governmental bodies, based on my research there is no standard worldwide “approach” to the corroboration of sources of wealth and sources of funds. Every client and situation are different. There should be no expectation that fact patterns would be consistent based on the products or services being offered. However, before corroboration can occur, risk and compliance professionals should confirm their policies and procedures surrounding customer identity, and establishing if there are any inherent risks, such as being a politically exposed person (PEP), a sanctioned individual or entity and other risk factors. Checklists should be avoided Historically, many institutions tend to lean on ensuring they have documented the items required by law or guidance. Sources of wealth and sources of funds, in some instances, can be that straightforward and clear. However, in other cases the sources of wealth can be more complex and lack clarity. No matter if the client’s sources of wealth and sources of funds appear opaque or as crystal clear as the waters of our Bahamaland, risk and compliance professionals should be able to form

a reasonable conclusion from the evidence collected and document the rationale. The Wolfsberg group said: “Financial instituitions should consider all evidence collected and determine whether it is sufficient to support the sources of wealth.” Source of wealth validation Although there may be overlap, the sources accepted to validate initial sources of wealth will differ from the sources used to validate this moving forward. Financial institutions during the onboarding stages can consider records of external investment, commercial loan agreements, written confirmations from a qualified party, grant of probate/certified copy of a will, audited financial statements, etc. On the other hand, some acceptable sources for ongoing and sources of wealth may include audited/unaudited financial statements; business bank account statements from regulated financial institutions; pay slips; third-party referrals from regulated financial institutions; annual reports and other sources. When you have doubts, escalate All employees have an obligation to escalate suspicions when there is any uncertainty. Management must take these escalations seriously. Moreover, money

laundering reporting officers (MLRO) have a regulatory duty to review an internal escalation and determine its validity. If valid, in the MLRO’s opinion, a suspicious transaction report must be filed with the Financial Intelligence Unit. Conclusion Throughout my external audit and internal audit journey, along with travelling to conferences and interacting with regional and international risk and compliance professionals, it was made clear that the “one size fits all approach” to sources of wealth would frustrate many stakeholders and, in particular, the client. Criminals may be locked down, and it is the risk and compliance professional’s job to ensure they remain locked out or are made to exit our financial systems. NB: Derek Smith Jr is a compliance officer at a leading law firm in The Bahamas, and a former assistant vicepresident, compliance and money laundering reporting officer (MLRO), at local private bank. His professional career started at a ‘Big Four’ accounting firm and has spanned over 15 years, including business risk management, compliance, internal audit, external audit and other accounting services. He is also a CAMS member of the Association of Certified Anti-Money Laundering Specialists (ACAMS).

Bahamas in $275k TV and film boost THE Bahamas received a $275,000 boost from four film and TV productions that visited this nation following July’s initial postCOVID-19 re-opening, the Bahamas Film & Television Commission revealed. Clarence Rolle, the Film Commission’s general manager, said July’s injection was still below the average monthly spending on screen productions that The Bahamas has traditionally attracted. He nevertheless described it as good rebound, but the other TV and screen productions hoping to access The Bahamas in the near future will now have to wait for the second lockdown to ease.

MIKE Tyson in promo for the Discovery Channel’s Shark Week production on Grand Bahama. “We were not surprised by this because the research shows that film is a very resilient business,” Mr Rolle said, referring to a June 2020 report released by Olsberg SPI, an organisation specialising in entertainment research. “They released a report in June that said that film was going to be one of the first industries to come back after COVID-19. Film is expected to lead the way and help other industries recover.” Mr Rolle added that film

and television productions use many other economic sectors to complete their work. They are known for large expenditures on accommodations, meals, ground transportation and purchasing merchandise that ranges from building supplies to electronics. “We are very encouraged by the business that came in for July,” Mr Rolle said. “Screen productions have provided employment for scores of Bahamians, and many of them were able to get right back to work in July. Also, thousands of dollars were spread through many communities.” The Bahamas Film & Television Commission assisted with the production of Discovery Channel’s Shark Week on Grand Bahama, which brought former world boxing champion, Mike Tyson, there to film. The production, which includes Shaq’s Shark Week Special, left $80,000 on Grand Bahama. Mr Beast, a YouTube channel with more than 30m subscribers, filmed in North Eleuthera and Spanish Wells, contributing $115,000 to the area. Finally, productions entitled Shark Rober and Shark Lair left $40,000 each on Grand Bahama and New Providence, respectively.

Chamber chief hails relaxation for Abaco By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net ABACO’S Chamber of Commerce president yesterday hailed the relaxation of COVID-19 lockdown restrictions on that island as “welcome news” for its post-Dorian reconstruction. Ken Hutton, pictured, told Tribune Business he had been requesting the changes since the 24-hour curfew and lockdown were reintroduced nationwide on August 3. He said: “This is great news. We can finally get back to work. This is something that would be a great help to us over here, and is something we have been lobbying for since the lockdown started.” On Saturday, the Prime Minister’s Office announced that Abaco grocery stores can now open for six days a week; restaurants may now serve curbside and takeaway for five days a week; and gas

stations can open seven days a week. “Over this past weekend, additional unique provisions were announced for Abaco and its Cays, including the addition of days to allow for grocery shopping and restaurant curbside and takeaway services,” Dr Hubert Minnis said in yesterday’s national address. Abaco is still rebuilding from the devastation of Hurricane Dorian. Some residents do not have access to the resources available during normal circumstances. These provisions have been made to accommodate the unique circumstances on the island and its cays created by the ongoing recovery and reconstruction efforts related to Hurricane Dorian.” Asked whether the latest lockdown has held back Hurricane Dorian reconstruction efforts, Mr Hutton said: “Not by much. We are just glad to get things moving again.”

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Monday, August 10, 2020, PAGE 3

Delivery firms argue lockdown ‘too narrow’ By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE delivery firms previously hailed by the prime minister are now pressing for relaxation of the present lockdown restrictions after being hurt by the immediate total shutdown of many business clients. Granville Collie, MUTRU’s managing director, told Tribune Business: “I can’t say that we have picked up a lot of clients since the issuance of the new emergency orders, but with the general COVID-19 emergency orders we did have an increase. “We have seen a trend

upwards in terms of interest, but pretty much all retailers are shut down right now. Definitely people still want to be able to move their products, so there has been an increase in interest, but not necessarily an increase in business - at least not as yet. I expect it to happen, but it hasn’t happened as yet.” Mr Collie added: “The overall closure has hurt me because instantly, overnight half of our customers were closed. Whereas we may have been doing five delivery orders for a clothing company, and five delivery orders for a food company and five delivery orders for a hardware company, the

minute the government gave that order only the hardware companies are left open. “So instead of my 15 orders a day I’m now only having five. It has hurt in terms of that, but in terms of inquiries and people interested in the service, the lockdown has helped with building the interest in it.” The first COVID-19 lockdown was imposed on March 20 by Dr Hubert Minnis, which included a national curfew and the closure of multiple industries. This was subsequently relaxed to the point where The Bahamas opened its borders on July 1, but the emergence of a second virus

Long Island ‘excited’ on lockdown release By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net LONG Island’s Chamber of Commerce president yesterday said she was “very excited” that the island has been released from the nationwide COVID-19 lockdown and can resume commerce from today. However, Cheryl de Goicoechea told Tribune Business that Long Island is going to remain a “sleepy town” until travel from Nassau and elsewhere resumes. “There is no way for tourists to get here because the only way they can get here is through Nassau, and there are no flights between Nassau and the islands. Flights can only travel between the islands that are COVID-19-free and Nassau is not COVID-free. So the only way tourists can get here is if they come by charter,” she said. The prime minister, in a national address on Sunday, said Mayaguana; Inagua; Crooked Island; Acklins; Long Cay; Rum Cay; and Ragged Island will also be able to resume commercial and social activity as normal from today, with parks and beaches also opening, due to the fact they have no COVID-19 cases.

Ms de Goicoechea added: “The fishermen will be happy about it, and of course the stores that are now able to operate on full schedule. I know they will be happy about it. But we still have to be very, very cautious, and still follow all of the safety guidelines because it only takes one case. “We don’t have fish fry, but we have a few roadside bars and I am sure they are going to be happy because the locals are patrons to those places. This time of year for us we don’t have that many tourists anyway. “This is a slow time of the year for tourists on Long Island, but the ones that really want to get here will try to get here by charter. There are a couple of charter operators, and there is one charter operator that operates out of the US here in Long Island,” she continued. “There are other charters in the US that bring people down, and there is a Bahamian charter in Long Island that is authorised to charter back and forth between Long Island and the US., called Island Wings that is operated Marty Fox.” Ms de Goicoechea said: “I’m going to imagine that captain Fox is going to keep busy, and a few

of those charter companies out of Miami and Fort Lauderdale are going to be busy, because there are second home owners that have homes here on the island that may be wanting to come to the islands, so they would have to offer charters. “For the people who want to come on vacation they all have to be offered a charter, too, but I don’t know how they are going to handle this. I would imagine if they are coming to Long Island they would still have to go through the testing. If they are coming through the US they would still have to do the testing and get all of the approvals to come in on a charter. Ms de Goicoechea also called for clarification on whether or not tourists coming in on charters will still have to quarantine for 14 days, and added: “I think they definitely need to be tested, though. I think this lockdown was necessary, because if you listened to the prime minister he said San Salvador is waiting on a swab test,l and that is the reason why they haven’t been allowed to reopen with us. Who knows? Next week it could be Long Island, so I think this lockdown was necessary.”

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wave - stronger than the one before - resulted in the imposition of even more restrictive measures. This has left only food stores, gas stations, water depots and pharmacies operational, with hardware stores reduced to curb side and pick-up only. As a result, the commercial client base available to delivery operators has been much-reduced. “This is a real restriction because the amount of people that are allowed to be open are just categorically too small, it’s really too small,” Mr Collie said. “Food stores and hardware stores are okay, but I am driving vehicles all day and

every day and there are no mechanic shops open so that’s crazy, and no tyre shops either. “Also, all essential services are on the road all of the time, but the fast food places aren’t even open. So if you don’t bring out your own food in the morning, then you are out of luck. This is really too narrow; they have to open it up to more people and more businesses.” Jamial Rolle, Runnah’s chief executive, said: “Things are still steady, but unfortunately with the restaurants it has hurt. But with the custom pick-up feature it has been working out.

“People are wanting more deliveries from our custom pick-up feature. It serves as an errand and courier-type service, so we have had letter deliveries and people buying things from one another and resale items. We have also had a few businesses using it for delivering products to the people.” Mr Rolle added: “We have used our time wisely considering that everything in The Bahamas has shut down, so we refined our services in Atlanta, Georgia, where we just got licensing for our Runnah’s app. So while things in The Bahamas have stopped we have kept it moving.”

WATER SUPPLIERS NOW FACE BOTTLE SHORTAGES

the construction industry open up six days a week, if they can do that for my bottle manufacturers that would be a huge plus for us. We get bottles from two places, one from ARM Supplies and Blanco Bleach. They are closed when we are closed, but if they can be open it would be a plus for us.” Apart from bottle logistics, Mr Clarke added: “It’s looking pretty good. We have a lot of customers coming through for water so I would say it is pretty good. We’re OK and we are able to maintain what we are dealing with; the lockdown is not affecting us that much. “The only thing is that it put a lot of strain on us because we are open and we have a lot of customers, so we have to go service them, but other than that it is not affecting business. The latest COVID-19 lockdown allows water depots and manufacturers to be open on Mondays, Wednesdays and Fridays. Kaye Bastian, Echo Water’s managing director, said: “We’re fine. The thing about us is that we only supply independents who come in, get their bottle and go, so the public doesn’t come into our plant.

We have a different set up from the other companies. Everything is going very well. “With Chelsea’s Choice they have all of those backups because the public goes to their depot. We don’t have a depot as we’re a manufacturing company only. There is a depot outside of our plant, which we provide water to, and he comes in and he gets his water, but the masses do not come into our plant.” Ms Bastian said Echo Water had not experienced any issues with bottle supplies, and added: “We don’t make our bottles. We import bottles, and we have an order in now that’s here and should be cleared by Monday.” A water depot operator, speaking under condition of anonymity, said: “Well, water is hard to get from the companies. Aquapure is blocked up and Chelsea’s Choice, you can’t even get into the door. They are backed up as everybody is trying to get water. “We are a curbside business so we maintain a social distance. Just to clarify, we have been getting service from the water companies, but it is just a hustle and bustle as everyone is trying to get water.

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A WATER provider is urging the government to permit its bottle suppliers to open during the COVID19 lockdown to prevent raw materials shortages that impact customers. Andrew Clarke, owner/ operator of Crystal Select, told Tribune Business: “The only thing that affects us, because we are a smaller company, is we have a supplier we get bottles from. They are the ones that are basically impacted because now when we go to get bottles, and they are shut down, it puts us in a predicament. “For instance, for a day like Friday, we need gallon bottles, but because they sold out on Wednesday and now they have to try and play ‘catch up’ this morning, there is basically none available on Friday.” He added: “If the competent authority [Prime Minister’s Office] would consider, like how they had

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Tourism ‘cannot’ return amid surge FROM PAGE ONE again, but we have to figure out how we do that without surge number three or a new COVID-19 outbreak,” Mr D’Aguilar told this newspaper. “I think the Bahamian people are getting tired of lockdowns, and the effect on the economy is horrendous, but we have to fix what’s causing that before we restart tourism. “The first step is to get this surge under control. You cannot sell your country until you get this surge under control. Everyone complains it’s a nightmare, but we cannot even contemplate tourism until we get this surge under control.” A prolonged tourism shutdown, especially in the absence of alternative sources of foreign currency earnings, could start to impose increasing pressure on the external reserves that are key to supporting the one:one fixed exchange

rate peg with the US dollar going further into 2021. John Rolle, the Central Bank’s governor, hinted at such concerns last week when he called for “urgency” to tap other potential foreign currency sources such as foreign direct investment (FDI) if tourism’s shutdown/recovery looked like extending beyond Thanksgiving and Christmas into the New Year. However, Mr D’Aguilar yesterday dismissed pressure for a rapid restart to the tourism economy, saying: “We’ve still got a couple of months in our quiver of arrows. We still have a couple of months to get it right. We’re in August, and are going through a lockdown now to get surge number two under control. “It’s very painful. We’re going through a two-week lockdown to flatten the curve, and will go from

there. It does not make sense to actively promote tourism yet. We need some time. I won’t put a date on it, but we need time to put our house in order again and think long and hard, if we launch again, about how we do it safely. I don’t see any way around it.” The renewed surge in COVID-19 cases, which has brought to reality the government’s worst fears about an overburdened public health system unable to cope, has cost The Bahamas’ its key selling point of being a relatively virus-free destination - something it was relying on when the borders re-opened on July 1. The outbreak has been blamed on a combination of personal irresponsibility by Bahamians who raced away on non-essential travel to COVID-19 hot spots such as Florida, and who brought the virus back with them, as well as the “loophole” created by the government in allowing persons who went away for 72 hours or less to come back without a negative PCR test and self-quarantine. However, The Bahamas’ reliance on the US for 82 percent of its visitors, and especially the COVID-19

hot spot of Florida, represented another potential danger. The US has now reported over 5m COVID19 cases, making it the world leader, with more than 500,000 detected in Florida. “One of the issues we’re seeking to fix is the oversight of quarantine,” Mr D’Aguilar said. “What we saw in surge number two, when we allowed persons to travel to the country, is we also allowed our citizens to travel. When they travelled, they travelled to COVID-19 hot spots and came back. We have to fix that. “You can travel, and if you don’t come home and don’t quarantine, you’re going to create community spread. If those people had sat in their rooms for 14 days, we would not have community spread. We need to fix that problem of people not adhering to it, so we must put in place an oversight regime that is quite robust and imposes significant penalties if you don’t follow the protocols.” Pointing to the quarantines mandated by the likes of Canada, New York and Europe, Mr D’Aguilar said that without the imposition and enforcement of such a regime locally The Bahamas

could “quickly go to surge number three”. He acknowledged, though, that just the mention of a mandatory “14-day quarantine” was enough to deter many tourists from visiting The Bahamas. “Bahamians are very adamant that it’s one rule for all,” Mr D’Aguilar told Tribune Business of COVID-19 travel protocols. “Obviously is is very difficult for leisure tourism and quarantines to mutually exist. “The conundrum is how to attract persons to visit your country when you apply these rules..... It’s very hard to sell your country as a place to visit with a 14-day quarantine, but if you don’t have a 14-day quarantine apply to your citizens you’re going to have another outbreak. “That’s a difficult nut to crack when you need foreign tourists to come in, you need foreign exchange to come in. But if there’s no quarantine we won’t get this virus under control. You have to go down for 14 days, no exceptions. The COVID-19 test on the way in mitigates some of the risk, but quarantine mitigates all the risk, and we’re into mitigating all

the risk now.” Mr D’Aguilar said requiring Bahamians travelling abroad to specify where they will quarantine upon their return might be one way to avoid COVID-19 spread without burdening the taxpayer with the cost of a government-run facility. He also acknowledged that the requirement to produce a negative COVID-19 test and government-approved health visa were further deterrents to potential tourists. However, the minister said The Bahamas needed to get the message out that “14-day quarantine” meant visitors were restricted to their hotels, and that they did not have to stay for that full two-week period. Mr D’Aguilar said Jamaica had benefited from the all-inclusive nature of its resort industry to restart its tourism product. With all amenities present onsite, visitors were confined to their properties but still enjoyed their experience. However, he conceded that a mandatory 14-day quarantine would likely close down the vacation rental market as no guest would want to stay in a property for two weeks.

Foreign investment flows slump by 33% FROM PAGE ONE

LEGAL NOTICE

NOTICE

Flor Da Mata Ltd. (In Voluntary Liquidation)

Notice is hereby given that the above-named Company is in dissolution, commencing on the 7th day of August, 2020. Articles of Dissolution have been duly registered by the Registrar. The liquidator is AMICORP BAHAMAS MANAGEMENT LIMITED, of Nassau, Bahamas. Dated this 10th day of August, 2020

AMICORP BAHAMAS MANAGEMENT LIMITED

LIQUIDATOR

the external reserves, and exchange rate peg, if the tourism industry does not produce an adequate recovery in 2021, Mr Rolle pointed to FDI as an alternative. The Bahamas is not short of FDI-financed projects, with Sterling Global Financial’s Hurricane Hole redevelopment and the GoldWynn project at Goodman’s Bay both proceeding. The Prime Minister last month also confirmed that Sterling, which is chaired by David Kosoy, had received preliminary approval to proceed with its $352.2m joint venture with Montage at Matt Lowe’s Cay in the Abacos. That project is billed as creating 250 full-time jobs and 2,970 posts across the life of the project’s construction. And elsewhere, the Central Bank’s June economic development report detailed the $200m Venetian Village Hotel and Residential Resort on New Providence. While no details were provided about the

developer and their financing, the Central Bank said the project will feature a 150-room condo hotel together with restaurants, commercial office space and medical offices. A 6,000 square foot gaming house is also in the plans for a project that is billed as creating 600 construction and 500 full-time jobs. The Central Bank also provided details on the $250m TRLU Hills project, which was described as a mixed-use real estate project featuring residential units, a clubhouse, marina, restaurant and retail offerings. Some 250 persons were “expected” to be employed in the construction phase, which includes an international airport on 35 acres of crown land said to be valued at $75,000 per acre. Meanwhile, Rupert Pinder, a University of The Bahamas (UoB) economics lecturer, yesterday told Tribune Business that this nation needed to exploit the COVID-19 pandemic to reform what he described as too often a “lazy” approach to foreign direct investment

that failed to attract sufficient “value added” for the Bahamian economy. “In terms of where we’re at with this over-reliance on FDI, we take a very lazy approach when it comes to putting in place structures to really benefit the domestic economy,” he explained. “In a lot of cases, we invite the foreign investor in and have to play catch-up with policies, structures and infrastructure. “The investor takes a very myopic view of his project because he’s looking to maximise his return, and he’s not looking at how it impacts the wider economy. All of these things COVID-19 should help us take a look at, including the plan with respect to FDI. The foreign exchange element is one aspect, but there’s a real need to look at the whole value-added proposition.” Acknowledging that foreign currency earnings are “the lifeblood of the economy”, and “the fuel that gets things moving” on the domestic side, Mr Pinder said The Bahamas needed to look seriously at the

value added by FDI especially given the increasing digitisation that has only been accelerated by the COVID-19 pandemic. “There’s a whole separate industry created by valueadded,” he argued, “and we have to look at digital and see how we can create value added and new industries.... What we’ve done in a lot of cases is invite the foreign investor but not been able to maximise the value added because we did not put in place the policies and infrastructure to ensure that. “We want to attract the investor, give them the keys to the city, the edifice goes up, the hiring is done, and our work is done. We have to ask ourselves how do we maximise the benefits for the economy of this pandemic. “We have to be selective in the type of investments we attract; it has to be aligned with the environment and sustainable development. We have to look long-term and attract the type of investment we see as necessary for the digital economy.”

GB companies exploit lockdown to restructure By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net SOME Grand Bahama businesses say they are using the latest COVID-19 lockdown to complete internal projects and restructuring that would have been difficult had they remained open. James Rolle, Dolly Madison’s general manager, said: “What we’re doing is that we are capitalising on this lockdown. We are not doing any curbside service or anything because that is kind of difficult for a hardware

store. People say they want something, and you show them one thing and they say, no, they want something else. “Hardware stores are difficult for curbside, because with curbside you place your order before it’s ready and you come to pick up and you pay. With a hardware store, customers really need to see what they want, even if it is something they do not want or they think they would need. When they get into the store they realise it is something they really did not need, but rather something else.

“We can’t have customers in the store, so it is too much complications. What we are doing is that we are using this time to transition from one area to another, and we are basically moving into the old Rooms to Go area. We are at about 70 percent relocated,” Mr Rolle added. “Hopefully when this lockdown is over we will not be back in that upper warehouse any more, but we will be opening up in the new area in the old Rooms to Go shopping area.” Mr Rolle said where Dolly Madison is moving from was only a temporary location due to Hurricane Dorian displacing the firm from its main storefront. “We actually had to clear out the entire Rooms to Go section because that is where we had all of the furniture,” he said. “We are using about 50 percent of our staff to get this done. We have about 25 staff members, with 14 of them working in the store and the rest are clerical and administrative staff. Some of our office staff are working remotely. We have already set up our shelves, and have up labelling and pricing. We are labelling and reassigning locations for different products and all of that.” Greg Langstaff, the Grand Bahama Brewing Company’s proprietor, said

SEE PAGE 6

THE TRIBUNE

Monday, August 10, 2020, PAGE 5

Lessons to learn from the Swedes softlysoftly approach ACTIVTRADES WEEKLY By RICARDO EVANGELISTA www.activtrades.bs WHILE most countries around the world reacted to the COVID pandemic by imposing strict social distancing measures, often requiring the shutting down of large sectors of their economies, one nation stands out, having decided to take an alternative approach. I am of course referring to Sweden. Authorities in Stockholm kept businesses, schools and borders open throughout the peak of the crisis, while recommending social distancing as well as working from home whenever possible, relying on citizens’ civic conscience rather than using draconian legislation to contain the spreading of the disease. Did this light touch approach work?

The Swedish economy has a smaller dependence on tourism, in the order of 2.6 percent, than many other countries... While still raging through most of the Americas, the worst of the pandemic has, for now, passed in Europe, with numbers of new infections and fatalities considerably down from where they were during April and May. Meanwhile, statistics related to the second quarter economic performance have been published. The numbers are staggering: The US economy shrank 32.9 percent during April, May and June, comparatively with the same period in 2019. In the European Union, the average contraction was in the order of 12 percent, with Spain, the worst performer, seeing its economy shrink by 18 percent. Interestingly, Sweden’s gross domestic product fell by “only” 8.6 percent during the second quarter; comparatively better than

the United States or the European Union averages, but roughly in line with its formally locked-down Scandinavian neighbours. On a first analysis it may appear the Swedes got it right, as their economy decline was less pronounced than that of the US and most European countries. However, the numbers may hide several interesting nuances. With a second wave of the pandemic being increasingly likely, potentially creating the need for new lockdowns, uncovering such facts will helps us to frame the economic and human outcomes of the alternative stance chosen by the Nordic state. The Swedish economy has a smaller dependence on tourism, in the order of 2.6 percent, than many other countries; leisure and travelling are among the sectors more affected by the pandemic, which to a large extent explains the more pronounced contractions verified in economies where tourism’s significance is greater. On the other hand, Sweden is one of the most advanced digital economies in Europe, home to global tech businesses such as Ericsson and Spotify; the

PICTURED: Social distancing at Stortorget Square, in the heart of Stockholm. fact that tech is one of the sectors less exposed to the pandemic fallout could also help explaining the country’s comparatively milder recession. In Sweden, 40 percent of households have single occupancy, which represents a form of social distancing already in place, in contrast to Southern Europe where the cohabitation of several generations of the same family is common. However, despite this head start, the country endedup with one of the highest COVID-related death rates in the world, at 565 fatalities per million, roughly 20 times that of its neighbours Norway, Finland and Denmark who, incidentally, are all expected to deliver a second quarter GDP performance similar to Sweden’s. For now, it appears that authorities in Stockholm ended up paying an unnecessarily high human cost for some economic gains that may have been achieved anyway, given the idiosyncrasies of its economy.

PAGE 6, Monday, August 10, 2020

GB companies Shell urges ‘timely’ exploit lockdown power plant closing to restructure FROM PAGE ONE

FROM PAGE FOUR of the latest lockdown: “They closed the liquor stores, and every country has considered them essential services. Our infection rate is skyrocketing and hopefully they can get it under control. “The massive differences around the world are that countries that opened up too early are failing, like the United States, as they are failing at their job of saving people and controlling the virus. The US has failed because of their policies. “Germany, on the other hand, fully opened and they are told to take social distancing and they do. Germans obey rules, but that is not The Bahamas. I just found out that Canada has just closed their borders between Quebec and Ontario, much like the same thing they have done here between islands.” Mr Langstaff continued: “They are allowing some manufacturing companies to operate in Grand Bahama. Sands is back in operation, but people need to have jobs in order to buy

product. Sands is allowed to operate for manufacturing beer, but you can’t have a liquor store open, so what’s the point? “I think it was necessary to shut it down, but if you can get people on-board and maintain control of it it’s going to be alright. Otherwise there are going to be deaths and people ill. Ill people just don’t get over it as many of them are having long-term health side effects, which will cost the society a lot.” Mr Langstaff also recalled how a mother and daughter failed to quarantine after returning to Grand Bahama from the US, and became responsible for infecting eight other person on the island. He added: “I don’t believe they charged them and I am really disappointed in that. They have the legislation for imposing fines and prison terms, and I think people like that and that mindset are responsible for this lockdown and the state of the economy right now. They should be prosecuted, and if you don’t set an example then there is no example set.”

being very careful and prudent in how we move this arrangement forward. “At the end of the day, whatever it is we agree with Shell, the Bahamian people are going to have to live with it for the next 20-25 years. Whatever we’re negotiating, our position is that it must benefit the Bahamian people in the short and long-term. It may be a great deal today, but will it be a great deal in five years’ time, ten years’ time, 20 years’ time?” Dr Moxey declined to detail which issues have yet to be resolved by the government/BPL and Shell, or comment on the current status of the talks and when they are likely to be completed. He merely reiterated: “As a board we have to make sure we exercise a fiduciary responsibility to get the best possible deal for all Bahamians. “We will not conclude any negotiations with Shell until we as a board believe we have got the best possible agreement. That’s all we’re focused on: Providing the best possible deal for the Bahamian people, and whatever it takes for us to do that, that’s what we’ll do.” The BPL chairman spoke out after Shell released an opinion piece written by

its lead negotiator, Markus Hector, Shell LNG marketing and trading’s general manager for market development, to the Bahamian media for publication in today’s newspapers. The article, which contained little that was not already known in terms of details on the proposed power plant, did indicate, though, that Shell appears to be becoming frustrated and losing patience over the inability to conclude negotiations that kicked-off after it signed a Memorandum of Understanding (MoU) with BPL in December 2018 having previously been selected as the preferred bidder. “Our ability to invest in the construction of an affordable liquefied natural gas (LNG) terminal, and our purchase of the new power plants, remains dependent on the timely closure of current negotiations with BPL and the government,” Mr Hector wrote. “As currently designed using industry standards, this project will produce the majority of power generation for the entire island of New Providence for decades to come. It will be made up of two joint ventures – the ‘Terminal Company’ to operate the LNG terminal, receiving, storing, and re-gasifying the LNG, and the ‘Power Company’ to

THE TRIBUNE generate electricity, which will be sold to BPL for transmission and distribution. Both Power Co and Terminal Co are expected to be majority owned by Shell; current plans include the balance of the former held by BPL, and the latter by other Bahamian investors.” While Mr Hector’s article indicated that BPL will hold the minority equity stake in the power plant, Dr Moxey yesterday reiterated that the government still planned to make shares in the power plant available to Bahamian investors at some stage via an initial public offering (IPO). Shell’s move in going public will again raise questions over whether negotiations with BPL and the government have reached an impasse, and if a project billed as vital to improving economic competitiveness and household welfare through lower cost, more reliable and cleaner energy supply is in jeopardy. The key documents will be the power purchase agreement (PPA), setting out the price at which BPL will buy electricity from Shell, and the asset purchase agreement detailing the price and mechanism by which the energy giant will acquire the power plant that the state-owned energy monopoly is currently building on its behalf. The deal is still being structured in a manner that would see BPL finance construction completion of the new power plant at Clifton Pier, with Shell then purchasing a substantial ownership interest in

the facility “at fair market price” from BPL. This raised eyebrows when it was announced earlier this year, given that the original plan had been for Shell to construct, finance, own and operate the 220 megawatt (MW) plant as an independent power producer (IPP) that would enable BPL to exit the generation business and focus on transmission and distribution (T&D). One source, speaking to Tribune Business on condition of anonymity, said the government’s attention had been distracted from the proposed power plant deal by the financial fall-out from Hurricane Dorian and COVID-19. They added that the delay to BPL’s $535m rate reduction bond (RRB) refinancing had also impacted the talks with Shell. The multinational energy giant, they suggested, was concerned that the delayed bond refinancing coupled with the inability of many BPL customers to pay their bills could impact the stateowned utility’s ability to pay it for the energy supplied. The government, though, was unlikely to provide a guarantee, creating a potential impasse. Tribune Business was also told that entities such as BISX-listed FOCOL Holdings and The Source River, the group formed by late Cabinet minister Tennyson Wells to acquire the former Bacardi plant, may be given an interest in the LNG terminal in exchange for some of their land holdings being used for its infrastructure.

Lockdown ‘seesaw’ simply unsustainable FROM PAGE ONE “Eleuthera’s economy is being devastated just as much as other islands in The Bahamas, including New Providence. The night that the lockdown was announced I got a text message from an Eleuthera business owner who put it best, and I quote: ‘This lockdown is going to totally destroy what little economy

we had mustered up’,” Mr Sands told this newspaper. “She is expressing the sentiment of most business owners here who are fighting to survive. We felt that we were on the rebound. This will certainly set us back and, without a clear idea of what’s going to take place once we reopen, it has shaken the confidence of business owners throughout the island...... “I think job losses and

MARKET REPORT www.bisxbahamas.com

(242) 323-2330

FRIDAY, 7 AUGUST 2020

(242) 323-2320

ALL SHARE INDEX: CLOSE: 2,096.57 | CHG: 0.00 | %CHG: 0.00 | YTD: -135.03 | YTD%: -6.05 BISX LISTED & TRADED SECURITIES 52WK HI 4.10 22.65 2.00 1.79 2.50 6.00 6.75 5.47 8.59 4.50 6.16 12.77 3.64 5.49 10.88 8.44 16.99 4.25 9.40 15.21

52WK LOW 3.13 20.91 0.67 1.79 1.67 5.40 5.39 2.00 5.05 3.62 5.60 11.05 2.71 2.64 9.60 7.10 13.04 3.20 8.00 13.90

PREFERENCE SHARES 1.00

1.00

1000.00 1000.00 1000.00 1000.00

1.00 10.00 1.00

1.00 10.00 0.90

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

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

LAST CLOSE 3.35 17.43 1.62 1.79 1.67 6.00 6.75 2.99 5.10 3.79 6.10 11.26 2.51 5.30 9.99 8.44 14.30 3.99 8.97 15.20

CLOSE 3.35 17.43 1.62 1.79 1.67 6.00 6.75 2.99 5.10 3.79 6.10 11.26 2.54 5.30 9.95 8.44 14.30 3.99 8.97 15.20

1.00 1000.00 1000.00 1000.00 1000.00 1.00 10.00 0.90

SYMBOL FBB22 BFHB

LAST SALE 100.00 100.00

CLOSE 100.00 100.00

CHANGE 0.00 0.00

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

BFHP CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB

CORPORATE DEBT - (percentage pricing)

SECURITY Fidelity Bank Note 22 (Series B) + Bahamas First Holdings Limited

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.03 0.00 -0.04 0.00 0.00 0.00 0.00 0.00

52WK LOW 100.00 100.00

104.00

BGRS FL BSBGRS710237

BSBGRS710237

100.90

104.00

3.10

115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 102.00

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

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: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-7Y

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

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

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

52WK HI 2.34 4.41 2.11 198.39 168.29 1.69 1.85 1.77 1.24 8.34 10.26 7.08 12.15 12.71 10.81 10.00 8.98 11.79

52WK LOW 2.11 3.30 1.68 164.74 116.70 1.64 1.77 1.72 1.07 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

MUTUAL FUNDS

MARKET TERMS

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund Leno Preferred Income Fund Leno Growth Fund Leno Diversified Fund Leno Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

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

14,000

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

52WK HI 100.00 100.00

BAHAMAS GOVERNMENT REGISTERED STOCK - (percentage pricing)

VOLUME

1,000

NAV 2.34 4.41 2.11 196.40 163.60 1.69 1.81 1.77 1.07 8.30 9.90 7.08 11.27 12.71 10.23 N/A 8.93 11.27

EPS$ 0.239 0.932 0.000 0.000 0.070 1.760 0.369 -0.438 0.140 0.184 0.449 0.722 0.102 0.467 0.646 0.728 0.816 0.203 0.939 0.631 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

DIV$ 0.170 1.260 0.020 0.000 0.000 0.000 0.260 0.000 0.000 0.120 0.220 0.720 0.434 0.060 0.328 0.240 0.540 0.120 0.200 0.610 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

INTEREST Prime + 1.75% 6.25%

P/E 14.0 18.7 N/M N/M N/M N/M 18.3 -6.8 36.4 20.6 13.6 15.6 24.9 11.3 15.4 11.6 17.5 19.7 9.6 24.1

YIELD 5.07% 7.23% 1.23% 0.00% 0.00% 0.00% 3.85% 0.00% 0.00% 3.17% 3.61% 6.39% 17.09% 1.13% 3.30% 2.84% 3.78% 3.01% 2.23% 4.01%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

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

MATURITY

19-Oct-2022 30-Sep-2025

4.53%

22-Oct-2023

6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.50% 6.25% 3.50% 4.25%

20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2022

YTD% 12 MTH% 2.13% 4.00% 0.91% 2.59% 1.04% 2.39% 0.65% 2.50% -1.88% 3.33% 1.88% 3.90% -2.26% 2.49% 0.76% 3.56% -11.03% -8.03% -0.45% 8.36% -3.20% 11.46% 2.10% 5.15% -6.17% 3.54% 2.92% 5.55% -4.66% -3.81% N/A N/A -4.20% 0.20% -8.60% -2.90%

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

NAV Date

30-Jun-2020 30-Jun-2020 26-Jun-2020 30-Jun-2020 30-Jun-2020 31-May-2020 31-May-2020 31-May-2020 31-May-2020 31-May-2020 31-May-2020 31-May-2020 31-May-2020 31-May-2020 31-May-2020 30-Jun-2020 30-Jun-2020 30-Jun-2020

business closures are inevitable. Small businesses are being the hardest hit. Restaurants that were allowed during previous lockdowns to offer take-out or curbside service have had to close their doors for two weeks, maybe longer. They will not likely survive if this carries on beyond the two weeks. Those business owners and their workers are now worse off than before.” Mr Sands added: “We cannot deny that our nation is facing skyrocketing positive COVID cases, and our Government feels that their only means of addressing this is by locking down the country. For me it’s not so much about how we address this current situation but how do we ensure that this doesn’t continue. “The reality is that we cannot live on this seesaw forever. Opening up and shutting down is not sustainable. What businesses here need is a clearly-defined strategy that outlines how we will operate in a COVID environment. “It seems clear that, as a country that relies heavily on tourism, we will not be able to completely eradicate it without a vaccine. What we need to understand is how to live with it. We need protocols that will ensure that the economy stays open despite COVID cases. And we need these protocols to be strictly enforced.” Reiterating that constant lockdowns to control COVID-19 represented “an unsustainable strategy” for any country,” Mr Sands said: “We are counting on our Government to implement policies that can safeguard our people and economy. It can no longer be eitheror but both are required in order to ensure that we all don’t end up in economic ruin. “That means we have to quickly identify ways to drive the economy. We would ask the Bahamas government to consider Instead of locking down businesses, let’s allow businesses to continue to operate Monday to Friday 6am 6pm and institute a 7pm to 5am curfew, seven days per week. “I agree with the 14-day quarantine for all persons entering the country until a more fool-proof way of confirming COVID-19 status is

achieved. Ideally, it would be great if persons travelling could take a COVID test at the airport, and their status be confirmed before boarding the flight. I realise that we are not there yet, but that would be an ideal scenario. Ultimately we need to find that balance. We are not finding it through lockdowns.” The Eleuthera chamber chief warned Bahamians that “we must now think in terms of salvaging versus recovery of the economy, and we invite The Bahamas government to consider creating an environment which will propel economic activity as quickly as possible”. He urged the Minnis administration to move all investment projects in the approvals pipeline quickly through to the construction phase, while also providing a significant incentives/tax breaks package for Bahamian investors in the Family Islands and concessions for all real estate transactions that can be closed within 12 months. Mr Sands said families who had lost jobs and incomes were especially grateful for the food assistance being provided by the government and partners such as the One Eleuthera Foundation, which the prime minister yesterday said is currently supporting some 27,705 families - or more than 110,000 persons - nationwide. That means more than one in four Bahamians and residents are currently receiving food assistance, and the Eleuthera Chamber of Commerce chief voiced concern as to how long the government’s own financial resources would enable it to keep providing $1m per week for food assistance given its projected $1.3bn fiscal deficit for this year. “We know that our country cannot afford to keep this up forever,” Mr Sands said. “I think the more important question is how will the government pay for the huge amount of debt it is now incurring. Will we see higher taxes? Will VAT increase? Alongside the much-needed assistance we also need clarity on the government’s plan to manage the country’s debt, which we are all on the hook for.”

To advertise in The Tribune, contact 502-2394 TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | COLONIAL 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333

THE TRIBUNE

Monday, August 10, 2020, PAGE 7

To advertise in The Tribune, contact 502-2394

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

PAGE 8, Monday, August 10, 2020

THE TRIBUNE

Monday, August 10, 2020, PAGE 9

THE TRIBUNE

Monday, August 10, 2020, PAGE 11

Postal Service emerges as flash point heading into election WASHINGTON Associated Press MAIL piling up. Constant attacks from the president. Cuts to overtime as record numbers of ballots are expected to pass through post offices this fall. The success of the 2020 presidential election could hinge on a most unlikely government agency: the US Postal Service. Current signs are not promising. The Postal Service already was facing questions over how it would handle the expected spike of mail-in ballots due to the coronavirus pandemic, but several operational changes

imposed by its new leader have led to mail backlogs across the United States as rumors of additional cutbacks swirl, fueling worries about the November vote. “It seems like they’re just trying to turn customers away from the post office,” said Jim Sizemore, president of the American Postal Workers Union chapter in the Cincinnati region. He said his offices are behind on deliveries because of new rules specifying when mail can go out. The pandemic has forced states to expand voting by mail as a safe alternative to in-person polling places. Some states are opting to send ballots to voters or

allowing people to use fear of the virus as a reason to cast an absentee ballot. That’s led to predictions of an an unprecedented amount of mail voting in the presidential election. Trailing in the polls, President Donald Trump has been sowing public distrust in the Postal Service’s ability to adequately deliver ballots and has, without evidence, said allowing more people to vote by mail will result in rampant corruption. The agency’s new leader, Postmaster General Louis DeJoy, a former supplychain CEO and a major donor to Trump and other Republicans, has pushed cost-cutting measures to

eliminate overtime pay and hold mail until the next day if postal distribution centers are running late. DeJoy, 63, of North Carolina, was tapped to head the service by a Trump-appointed board of governors and started in June. He is the first postmaster general in nearly two decades who is not a career postal employee. DeJoy has said repeatedly that the Postal Service is in a financially untenable position and needs to rein in expenses. This past week, it reported $2.2bn in losses during the three months that ended in June. Postal leaders want at least a $10bn infusion from

Congress as well as regulatory changes that would end a costly mandate that they fund in advance billions of dollars in retiree health benefits. “Without dramatic change, there is no end in sight, and we face an impending liquidity crisis,” DeJoy told the Postal Service’s governing board on Friday. Memos from post office leadership, obtained by The Associated Press, detailed an elimination of overtime and a halting of late delivery trips that are sometimes needed to make sure deliveries arrive on time. One document said if distribution centres are running

THE WEATHER REPORT

5-Day Forecast

TODAY

TUESDAY

WEDNESDAY

THURSDAY

FRIDAY

Mostly sunny

Mainly clear

Some sun with a t‑storm in spots

Mostly sunny and pleasant

Clouds and sun with a thunderstorm

Partly sunny and pleasant

High: 89°

Low: 78°

High: 88° Low: 78°

High: 89° Low: 78°

AccuWeather RealFeel

100° F

88° F

100°-84° F

100°-85° F

99°-85° F

100°-86° F

ORLANDO

TAMPA

High: 92° F/33° C Low: 80° F/27° C

The exclusive AccuWeather RealFeel Temperature® is an index that combines the effects of temperature, wind, humidity, sunshine intensity, cloudiness, precipitation, pressure and elevation on the human body—everything that affects how warm or cold a person feels. Temperatures reflect the high and the low for the day.

almanac

ABACO

High: 86° F/30° C Low: 81° F/27° C

4‑8 knots

High: 90° F/32° C Low: 78° F/26° C

2‑4 knots

FT. LAUDERDALE

FREEPORT

High: 90° F/32° C Low: 80° F/27° C

W S

WEST PALM BEACH

uV inDex toDay

TONIGHT

High: 92° F/33° C Low: 76° F/24° C

High: 90° F/32° C Low: 79° F/26° C

MIAMI

High: 92° F/33° C Low: 79° F/26° C

3‑6 knots

KEY WEST

High: 91° F/33° C Low: 84° F/29° C

High: 89° F/32° C Low: 78° F/25° C

High: 86° F/30° C Low: 81° F/27° C

The higher the AccuWeather UV IndexTM number, the greater the need for eye and skin protection.

tiDes For nassau Low

Ht.(ft.)

Today

12:45 a.m. 1:22 p.m.

High

Ht.(ft.) 2.6 2.7

7:05 a.m. 7:38 p.m.

0.8 1.2

Tuesday

1:31 a.m. 2:12 p.m.

2.5 2.7

7:48 a.m. 8:33 p.m.

0.9 1.3

Wednesday 2:21 a.m. 3:06 p.m.

2.3 2.7

8:37 a.m. 9:33 p.m.

0.9 1.3

Thursday

3:17 a.m. 4:02 p.m.

2.3 2.8

9:29 a.m. 0.9 10:32 p.m. 1.2

Friday

4:14 a.m. 4:57 p.m.

2.3 3.0

10:24 a.m. 0.8 11:28 p.m. 1.1

Saturday

5:11 a.m. 5:50 p.m.

2.4 3.2

11:18 a.m. 0.7 ‑‑‑‑‑ ‑‑‑‑‑

Sunday

6:04 a.m. 6:39 p.m.

2.6 3.4

12:20 a.m. 0.9 12:11 p.m. 0.5

sun anD moon Sunrise Sunset

6:42 a.m. 7:48 p.m.

Moonrise Moonset

none 12:36 p.m.

Last

New

First

Full

Aug. 11

Aug. 18

Aug. 25

Sep. 2

CAT ISLAND

High: 86° F/30° C Low: 80° F/27° C

6‑12 knots

7‑14 knots Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

Statistics are for Nassau through 2 p.m. yesterday Temperature High ................................................... 90° F/32° C Low .................................................... 79° F/26° C Normal high ....................................... 89° F/32° C Normal low ........................................ 76° F/24° C Last year’s high ................................. 92° F/33° C Last year’s low ................................... 81° F/27° C Precipitation As of 2 p.m. yesterday .................................. trace Year to date ............................................... 35.05” Normal year to date ................................... 21.44”

ELEUTHERA

NASSAU

behind, “they will keep the mail for the next day.” Another said: “One aspect of these changes that may be difficult for employees is that — temporarily — we may see mail left behind or mail on the workroom floor or docks.” Additional records obtained by AP outline upcoming reductions of hours at post offices, including closures during lunch and on Saturdays. Rumors have also circulated about the potential for entire offices to shutter, after the Postal Service told Sen Joe Manchin, D-WVa, that regional managers there have identified 12 offices for “feasibility studies”.

ANDROS

SAN SALVADOR

GREAT EXUMA

High: 86° F/30° C Low: 80° F/27° C

High: 86° F/30° C Low: 81° F/27° C

High: 88° F/31° C Low: 81° F/27° C

W S

LONG ISLAND

tracking map

High: 86° F/30° C Low: 81° F/27° C

7‑14 knots

MAYAGUANA High: 87° F/31° C Low: 81° F/27° C

Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

CROOKED ISLAND / ACKLINS RAGGED ISLAND High: 86° F/30° C Low: 81° F/27° C

High: 86° F/30° C Low: 81° F/27° C

GREAT INAGUA High: 89° F/32° C Low: 81° F/27° C

N E

10‑20 knots

marine Forecast ABACO ANDROS CAT ISLAND CROOKED ISLAND ELEUTHERA FREEPORT GREAT EXUMA GREAT INAGUA LONG ISLAND MAYAGUANA NASSAU RAGGED ISLAND SAN SALVADOR

Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday:

WINDS S at 2‑4 Knots SSE at 3‑6 Knots NE at 6‑12 Knots ESE at 7‑14 Knots ESE at 7‑14 Knots E at 8‑16 Knots E at 10‑20 Knots E at 10‑20 Knots E at 7‑14 Knots ESE at 7‑14 Knots E at 4‑8 Knots SSE at 3‑6 Knots E at 7‑14 Knots E at 8‑16 Knots E at 10‑20 Knots E at 10‑20 Knots E at 8‑16 Knots E at 8‑16 Knots E at 10‑20 Knots E at 10‑20 Knots ENE at 7‑14 Knots ESE at 7‑14 Knots E at 10‑20 Knots E at 10‑20 Knots E at 7‑14 Knots E at 7‑14 Knots

WAVES 1‑3 Feet 1‑3 Feet 1‑2 Feet 1‑2 Feet 1‑3 Feet 1‑3 Feet 2‑4 Feet 2‑4 Feet 1‑3 Feet 1‑3 Feet 0‑1 Feet 0‑1 Feet 1‑2 Feet 1‑2 Feet 2‑4 Feet 2‑4 Feet 1‑3 Feet 1‑3 Feet 3‑5 Feet 3‑5 Feet 1‑2 Feet 1‑2 Feet 2‑4 Feet 2‑4 Feet 1‑2 Feet 1‑2 Feet

VISIBILITY 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 7 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles

WATER TEMPS. 86° F 87° F 88° F 88° F 86° F 86° F 85° F 85° F 87° F 87° F 88° F 89° F 87° F 87° F 85° F 85° F 85° F 85° F 86° F 85° F 87° F 87° F 85° F 85° F 86° F 86° F

PAGE 12, Monday, August 10, 2020

THE TRIBUNE

Trump end run around Congress raises questions on his claims BRIDGEWATER, NJ Associated Press PRESIDENT Donald Trump’s end run around Congress on coronavirus relief is raising questions about whether it would give Americans the economic lifeline he claims and appears certain to face legal challenges. Democrats called it a pre-election ploy that would burden cashstrapped states. “When you look at those executive orders ... the kindest thing I could say is he doesn’t know what he’s talking about or something’s wrong there,” House Speaker Nancy Pelosi said. “To characterise them as even accomplishing what they set out to do, as something that will take the place of an agreement, is just not so.” After negotiations with lawmakers on the next package of pandemic economic assistance hit a wall, Trump used what he said were the inherent powers of the presidency to forge ahead on tax and spending policy that Congress says it is granted by the Constitution. Trump asserted he had the authority to defer payroll taxes and extend an expired unemployment benefit, although at a lower amount than what the jobless had been getting during the crisis. His reelection chances imperiled by the pandemic, the president contended his orders “will take care of pretty much this entire situation, as we know it.” But the orders appeared to carry less weight than Trump promoted and cut federal relief spending by shifting more onto the shoulders of struggling states. Critics said the

PRESIDENT Donald Trump prepares to sign four executive orders during a news conference at the Trump National Golf Club in Bedminster, NJ, on Saturday. Seizing the power of his podium and his pen, Trump on Saturday moved to bypass the nation’s elected lawmakers as he claimed the authority to defer payroll taxes and extend an expired unemployment benefit after negotiations with Congress on a new coronavirus rescue package collapsed. Photo: Susan Walsh/AP actions crossed a legal line and fell well short of what is needed to help right the fragile economy. “Paltry,” said Senate Democratic leader Chuck Schumer of New York, given the scope of the economic and health crises. Though certain to further strain relations with Congress, the moves were framed by the White House as the president breaking through the Washington gridlock in order to directly distribute aid. Advisers hope it will sustain an economic recovery that Trump likely needs to defeat Democrat Joe Biden in November. With an eye on reversing his slide in the polls, Trump took full credit for the measures, which he signed at his New Jersey golf club

on Saturday after congressional talks broke down this past week. Democrats initially sought a $3.4tn package, but said they lowered their demand to $2tn. Republicans had proposed a $1tn plan. Trump accused Democrats of trying to spend more than was needed and adding money for priorities unrelated to the pandemic. He said local aid amounted to “bailout money” for states and cities “badly run by Democrats for many years. ... And we’re not willing to do that”. The president wants to continue paying a supplemental federal unemployment benefit for millions of Americans put out of work during the outbreak. But his order called for up to $400 payments

each week, compared with the $600 that people had been receiving. Trump also said states would cover 25 percent of this money even as many are dealing with major budget shortfalls. The federal contribution would be redirected from disaster relief money at the Federal Emergency Management Agency — dollars not likely to last more than two months. Shifting FEMA disaster funds also would occur as the peak of hurricane season looms and the National Oceanic and Atmospheric Administration warns of an “extremely active” season already underway. Trump’s top economic adviser, Larry Kudlow, struggled during a television interview yesterday to

clearly explain the specifics of his boss’s order on unemployment aid. Treasury Secretary Steven Mnuchin said the $100 share from states would come from from an earlier pool of federal money and that Trump may waive the requirement about how it can be used. “Look, that would cost us about $500m between now and the end of the year,” said Connecticut Gov Ned Lamont, a Democrat. “I could take that money from testing. I don’t think that’s a great idea. I could take that money from, you know, mass disinfecting for our schools. I don’t think that’s a great idea. In fact, I think the president’s plan is not a great idea.” Pelosi, D-Calif, criticised Trump for not doing anything to help schools trying

to reopen and she said the orders were “unconstitutional slop”. Trump also acted to defer payment of the payroll tax, a long-pushed goal that had little support from either party on Capitol Hill, and federal student loans. His order on housing is not a guarantee against eviction, as he claimed, but instead directs the departments of the Treasury and Housing and Urban Development to identify money that could help those struggling to pay their monthly rent. Trump said the employee portion of the payroll tax would be deferred from Aug 1 through the end of the year, and he raised the possibility of making it permanent, though experts said he lacked that authority. The temporary deferral would not directly aid unemployed workers, who do not pay the tax when they are jobless. Employees would need to repay the federal government eventually without an act of Congress. The president was silent on how he would fund Medicare and Social Security benefits that the 7% tax on employee income covers. Democrats seized on the possible threat to Social Security as a signal that Trump wanted to cut the social safety net. His team pushed back. “If the Democrats want to challenge us in court and hold up unemployment benefits to those hardworking Americans who are out of a job because of COVID, they’re going to have a lot of explaining to do,” Mnuchin said. Both the White House and congressional Democrats indicated yesterday they wanted to resume negotiations, but no talks were scheduled.