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business@tribunemedia.net

TUESDAY, AUGUST 13TH, 2019

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JEFFREY BECKLES

Business ‘baffled’ over insufficient reform progress By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE private sector is “baffled” by the seemingly “insufficient action” to address The Bahamas’ ease of doing business woes, the Chamber of Commerce’s chief executive warned yesterday. Jeffrey Beckles told Tribune Business that the government and private sector needed “to find a way to lessen the anxiety, confusion and frustration” of many Bahamas-based businesses over the absence of any improvements in the economic climate. Suggesting that the Compass Point owner’s threat to close the resort by the next general election was a symptom of such concerns, Mr Beckles said The Bahamas’ sharp decline from 54th to 121st in the World Bank’s ease of doing business rankings represented a “huge fallback” for this nation and its commercial reputation. While The Bahamas subsequently improved to 119th, this two-spot improvement has only occurred through moving up one place in the rankings in each of the past two years. The chamber chief said too many in the private sector “feel the government is not responsive enough”, and that dialogue between the two sides needed to improve to put business more at ease. He noted that while the government-appointed ease of doing business committee was “working hard”, and had submitted multiple recommendations to the government, Lynn Holowesko, its chair, told a recent accountants’ conference that it was disappointed more of its recommendations were not incorporated into the 2018-2019 budget. “What is still baffling a lot of people is there’s not sufficient action on the deficiencies,” Mr Beckles told Tribune Business, referring to the World Bank rankings slump. “One would expect there to be a clear identification of the issues that

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QC: ‘KYC Once’ will stop bank ‘dangling’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

HE government was yesterday urged to develop a “KYC Once Act” to cut through the banking industry red tape that has “left customers dangling in their business and personal lives”. Fred Smith QC, the Callenders & Co attorney and partner, told Tribune Business that such a law would permit the issuance of a Know Your Customer (KYC) certificate confirming that the holder is a legitimate client and has passed all required due diligence checks. Such a certificate would be accepted by all Bahamasbased financial institutions as validating the holder’s credentials, he added, thus eliminating the need to “reinvent the wheel” and undergo the same KYC scrutiny at every bank that a company or individual conducted business with. Mr Smith argued that this would eliminate “a huge unnecessary expense” that has plagued dealings with the

• Smith suggests major due diligence reform • Argues would eliminate costs, bureaucracy • Says Bahamas would be ‘Caribbean leader’

FRED SMITH QC Bahamian banking industry for the past two decades, thereby lowering costs and resulting in a much-needed improvement in the ease of doing business. He also urged that the threshold above which Bahamas-based banks apply anti-money laundering

scrutiny to occasional transactions be increased to $50,000, and suggested that his proposal could make this nation a “Caribbean leader” when it came to the application of anti-financial crime rules. Justifying his call for reform, Mr Smith said his previous warning against

doing business in The Bahamas had resulted in “many, many people reaching out to me to express support for the challenges being faced by everybody in this nation. “It seems to be getting worse,” he told Tribune Business. “Banks are scrutinising the most miniscule transactions for people they already know. There is absolutely no discerning objectivity being applied by the bank and KYC officers, and they are making everybody’s personal life as well as their business life - very challenging. “In addition, it’s impossible to get a clear answer as to what this hold-up may be in any given situation. The human being that interfaces with me at any banks says it’s the compliance officer, the KYC department, the people in Trinidad, the people in Canada....”

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Water Corp: Two-thirds of its debt ‘delinquent’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net MORE than two-thirds of the Water & Sewerage Corporation’s $12.7m debt to its main BISX-listed supplier was “delinquent” at mid-year despite this sum being cut by $5m since 2018 year-end. Consolidated Water, the New Providence reverse osmosis plant operator, revealed in its 2019 second quarter and half-year results that the Water & Sewerage Corporation’s persistent late payments continue to “adversely impact” the liquidity of its Bahamian subsidiary. The build-up of debt, known as “accounts receivables” owed by the government-owned water distributor, has been a persistent problem for Consolidated Water which has forced it to describe it as a “risk factor” in filings with the US Securities

• Still owes $12.7m to BISX-listed supplier • Sum down almost $5m since 2018-end • But increased $1.1m from April position & Exchange Commission (SEC). While it has never been forced to take a provision, or hit, for these sums in its financial statements, the BISX-listed operator of the Blue Hills and Windsor plants has again warned that such extensive debts could mean its Bahamian subsidiary will need shareholder support if it finds itself in a liquidity crunch. “Consolidated Water Bahamas’ accounts receivable balances due from the Water and Sewerage Corporation amounted to $12.7m as of June 30, 2019, and $17.6m as of December 31, 2018,” Consolidated Water’s latest 10-Q filing with the SEC revealed.  “Approximately 68 percent of the June 30, 2019,

accounts receivable balance was delinquent as of that date. The delay in collecting these accounts receivable has adversely impacted the liquidity of this subsidiary.” The filings did not define what “delinquent” means, but this likely refers to payments which are 90 days past due. The details given suggest that more than $8m of the $12.7m balance falls into this category. Adrian Gibson, the Water & Sewerage Corporation’s executive chairman, did not return Tribune Business’s calls and messages seeking comment yesterday. The $12.7m sum owed at midyear 2019 was some $1.1m higher than the $11.6m it had been cut to at end-April 2019.

Still, David Sasnett, Consolidated Water’s chief financial officer, said the parent company had been able to cut its total accounts receivables by more than $4m to $20.19m during the 2019 first half due to payments received from the Water & Sewerage Corporation. The latter, though, still accounts for more than 60 percent of its outstanding receivables. “Historically, Consolidated Water Bahamas has experienced delays in collecting its accounts receivable from the Water and Sewerage Corporation,” the company added. “When these delays occur, we hold discussions and meetings

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$4.83 Regulator ‘won’t be strong armed’ on Sky Bahamas By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net SKY Bahamas’ principal yesterday vowed the airline “will rebound” as he and the aviation regulator again clashed over the airline’s continued inability to fly. Captain Randy Butler, the airline’s president and chief executive, doubled down on claims that his business had been “victimised” and intentionally sabotaged just hours after the Bahamas Civil Aviation Authority’s top executive refuted such allegations. Captain Charles Beneby, its director-general, said Captain Butler’s allegations were threatening the regulator’s reputation and that of its inspectors. He warned that the Bahamas Civil Aviation Authority would not be “strong armed or bullied” into granting Sky Bahamas the Air Operator Certificate (AOC) it needs to offer commercial services to fare-paying passengers. Following the latest inspection by regulators of Sky Bahamas’ facilities, Captain Beneby said around half of the Bahamas Civil Aviation Authority’s six concerns had been addressed. He expressed a willingness to work with the airline to resolve the outstanding issues despite the recent heated public exchanges. Reiterating that Sky Bahamas has “not been singled out”, and refuting Captain Butler’s oft-repeated “sabotage” accusations, Captain Beneby described the saga as “an unusual set of events”. For a renewal of the AOC, he added that the regulator must be satisfied that Sky Bahamas possesses the necessary financial, operational and technical capabilities.​ “This is not a mud raking or mud slinging exercise,” said Captain Beneby. “I was concerned that what was portrayed in the press did not show the Civil Aviation Authority in a good light and, in my mind, it also placed my inspectors - who I consider highly - in a very negative light. My obligation is to protect the reputation of the Authority. “We have an operator that made an application for the renewal of an air operator certificate. The certificate is the approval granted by the Authority to an operator to grant the use of an aircraft for

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BPL’s $95m Wartsila deal hit existing plant By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMAS Power & Light’s (BPL) decision to direct all its financing towards the $95m Wartsila acquisition left it “unable to meet maintenance goals”, a union leader charged yesterday. Paul Maynard, the Bahamas Electrical Workers Union’s (BEWU) president, told Tribune Business that the state-owned utility’s move to focus its entire capital budget on the purchase of 132 megawatts (MW) in new generation capacity meant it was deprived of funding for the upkeep of its existing plant. Arguing that this was directly responsible for the multiple engine failures behind BPL’s daily New Providence load shedding, the outspoken union chief said the energy monopoly’s

• Union chief: There were no funds for maintenance • Argues Nassau needs more than Shell’s 222MW • Calls for diesel fuel tax breaks to aid businesses

PAUL MAYNARD management and board had under-estimated the generation capacity required for summer. Whitney Heastie, BPL’s chief executive, admitted on Sunday that the utility had given itself a wafer-thin margin to meet New Providence’s 250 MW peak

summer demand with only 270-280 MW of generation available. While he argued that the extent of the failure at the Blue Hills power plant, which resulted in three generation units being lost simultaneously, could not have been predicted, Mr

Heastie also admitted that some of BPL’s aged infrastructure is 60 years-old - a factor that suggested regular maintenance/repairs would be required. Mr Maynard, meanwhile, suggested that even the proposed 220 MW multi-fuel power plant to be built, operated and owned by Shell North America will be insufficient to meet New Providence’s energy demand given the anticipated growth in the economy and population. He suggested the plant should have a 300 MW capacity to ensure the island’s needs are “taken care of for the next ten to

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PAGE 2, Tuesday, August 13, 2019

THE TRIBUNE

LONG-SERVING TOURISM EXECUTIVE IS REWARDED A MINISTRY of Tourism executive has won the Apex Award presented annually by Black Meetings and Tourism Magazine. Linville Johnson, who is responsible for the Ministry’s multi-cultural market development, joins previous winners such as tourism ministers, governors, chief executives and presidents of major national organisations and associations. He received the award at the recent gala that concluded the National Association of Black Hotel Owners, Operators and Developers (NABHOOD) and the International Multicultural and Heritage Summit and Trade Show. Mr Johnson was rewarded for his Distinguished Service in the tourism industry. His career has spanned more than three decades, starting at

the former Britannia Beach Hotel on Paradise Island. He has managed the Ministry’s tourist offices in major US cities including Los Angeles, Chicago, Detroit, New York and Miami. Mr Johnson was among those who helped spearhead the development of The Bahamas’ religious tourism market and efforts to make inroads into Latin America. He was also responsible for the Ministry’s vertical markets strategy, which started with 12 sectors and was ultimately narrowed to six, including fishing, boating, diving, private flying, religious markets and weddings, and honeymoon. Mr Johnson has worked with US organisations such as The National Urban League, The National Coalition of Black Meeting Planners and the National

LINVILLE JOHNSON, responsible for the multi-cultural department at Ministry of Tourism and Aviation, is pictured with his Apex Award. This was presented by Black Meetings and Tourism Magazine for his outstanding contributions to the hospitality and tourism industry.

FROM left: Linville Johnson, multicultural market, Bahamas Tourist Office (BTO); Janet Johnson, Bahamas Tourism Development Corporation; Anita Johnson-Patty, general manager, communications department, at the Bahamas Tourist Office, and Clay Saunders, Ministry of Tourism and Aviation. Photos: ExclusiveAccess.net

Black Caucus. Ellison “Tommy” Thompson, the Ministry of Tourism’s deputy director-general, said of his contribution: “Linville has indeed provided outstanding service to the development and growth of tourism to The Bahamas

from across the USA. “He has served in numerous capacities with Ministry of Tourism and Aviation in Nassau, and in cities across the US over the past few decades. This award is a great way to recognise his continuous long and dedicated service in our field.”

‘baffled’ over Govt listing to take Business insufficient reform progress BISX close to $9bn FROM PAGE ONE

THE total market value of all securities listed on the Bahamas International Securities Exchange (BISX) will be just short of $9bn once the government completes the listing of its debt. The stock exchange’s 2019 first half report, released yesterday, revealed that the addition of $3.5bn in medium and long-term Bahamas Government Registered Stock bonds will combine with $5.467bn in already listed securities to take total market worth to around $8.967bn. BISX’s market capitalisation at end-June 2019, which includes 19 listed equity stocks worth $4.626bn and 13 preference shares totalling a collective $327.75m, stood at $4.954bn. Adding in some 13 bond issues, valued at a total $513m, took the total worth of listed securities to $5.467bn. The total worth of listed securities, according to data published by BISX, has increased by 12.6 percent over a two-year period, rising from $4.854bn in 2017 to $5.467bn at the 2019 half-year.

BISX, meanwhile, said its All-Share Index, which only measures movements in share prices, had increased by 50.51 or 2.42 percent for the six months to end-June 2019. This compared to a 4.46 percent decline for the same period in 2018, but the market’s appreciation still lagged the performance of international equity indices. The MSCI Emerging Market Index was up 10.38 percent for the half-year, while the S&P 500 and FTSE 100 indices were ahead by 17.2 percent and 10.27 percent, respectively. All had double digit appreciations well in excess of that enjoyed by the BISX All-Share Index. “Trading volume for the six-month period January 2, 2019, to June 28, 2019, was 4.456m shares for a value of $21.869m,” BISX said. “Trading volume for the six-month period January 2, 2018, to June 29, 2018, was 3.868m shares for a value of $22.134m. “Trading volume for the three-month period April 1, 2019, to June 28, 2019, was 2.183m shares for a value of $ 12.081m. Trading volume for the three-month period

April 1, 2018, to June 29, 2018, was 1.217m shares for a value of $ 8.81m. “For the six-month period from January 2, 2019, to June 28, 2019, the average volume per trading day was 36,056 shares for a value of $177,209.17. By comparison, for the sixmonth period from January 2, 2018 to June 28, 2018, the average volume per trading day was 31,478 shares for an average value of $ 178,563.91.” Commonwealth Bank led trading volumes for the six months to end-June 2019, accounting for 34.9 percent of all shares that changed hands. FOCOL Holdings was in second place, accounting for 23.2 percent of shares traded, with AML Foods in third place with a 10.1 percent share of trading volumes. Commonwealth Bank was also the value leader for the same period, its shares accounting for 31.4 percent of the total worth traded over BISX. FOCOL Holdings was again the runner-up, with Fidelity Bank (Bahamas) this time beating out AML Foods for third place.

caused us to lose ground; that’s a huge fallback. “Most businesses are upset as there is no clear identification of what the issues are and no clear plan to mitigate them. That’s not to say there isn’t a plan; it’s businesses saying: ‘We don’t know what’s being done’.” Calling for better communication between the government and private sector over the former’s plans to tackle The Bahamas’ ongoing ease of doing business woes, Mr Beckles added: “We don’t expect to know every detail, but the level of confusion, anxiety and overall dissatisfaction, we have to find a way to bring that down. “There’s dialogue, the identification of areas we need to improve in, and development of a measurable strategy for managing success in these areas. These things work to lessen anxiety, confusion and frustration. These are things we have to give attention to. “If we say these are actions that are good for the country, we have to share information on a regular basis. We have to do more to lower the level of disquiet.” Mr Beckles spoke out after Leigh Rodney, the Compass Point resort owner, warned in a newspaper advertisement last week that he will shutter the resort at the next general election and out 60 Bahamians out of work unless the government delivers on its promised ease of doing business improvements.

Mr Rodney had warned: “If the FNM wins the next election without acting upon the promise they made when they were elected two years ago, the Compass Point owner does not want to continue to do business in this country and will therefore close his business.” Enacting major reforms to facilitate the smooth conduct of commerce by removing unnecessary bureaucracy and “red tape”, thereby improving The Bahamas’ 119th ranking in the annual World Bank standings, was a major thrust of the FNM government’s election campaign and appeal to the private sector. But, while some changes have been implemented, the reform effort drive to have eased in recent months. “No matter what we think of the tactic,” Mr Beckles told this newspaper on Mr Rodney’s advertisement, “if more and more people are expressing frustration that should cause us to ask if the current strategy is working. The truth is businesses are frustrated. If they can’t open a bank account in a reasonable time, that’s a problem.” The government has already touted several achievements, including a reduction in Business Licence processing time to 48 hours and the introduction of provisional licences. The Delivery Unit in the Prime Minister’s Office said the time for approving and renewing business licences has been reduced by 37 percent and 77 percent, respectively. The Unit’s annual report also hailed a 44 percent

reduction in the time taken to register a property conveyance, along with a 12 percent cut to the time taken to obtain construction permits. The latter, though, was challenged by Gustavus Ferguson, the Institute of Bahamian Architects (IBA) president, who said he knew no one who obtained a building permit in less than six months. Mr Beckles, while praising the improvements relating to Business Licences, said more must be done. He pointed to land reform, and land registration and a system of registered land, as key to unlocking domestic investment by Bahamians. “More importantly we have to find ourselves in constant communication,” he added. “The money being invested is taking a risk. If it’s taking a risk it wants to understand what these challenges are and help the government mitigate those challenges. “It’s our reality but we have to find a way to fix it. The chamber is always open to government, and constantly offers our support, but right now the business community feels the government is not responsive enough and that may lie in not enough communication. “There’s great confidence in the ease of doing business committee, there’s some tremendously competent and professional people on it, but when they say the government has not enacted many of their reforms the business community is saying we can’t keep going down that road.”

Employment Opportunity Compliance & MLRO Officer

Financial Institution (FI) seeks qualified candidate to fill the position of Compliance/MLRO Officer. The successful candidate will be appointed as a Compliance/ MLRO Officer for the FI’s compliance with all regulatory and legal requirements.

MLRO/Compliance Duties

• Monitoring changes in AML legislation and updating AML/CFT policies and procedures as necessary; • Conducting AML/ CFT checks and due diligence enquiries in respect to the operations of the FI; • Onboarding of new clients of the FI; • Ensuring compliance with regulations and internal policies; • Arranging for annual and or periodic training of staff; • Liaising with the regulators in regards to their onsite and offsite monitoring of the FI; • Filing STRs as necessary to the Financial Intelligence Unit (FIU).

Selection Criteria

• Possession of a recognized Compliance/AML diploma either the ICA or ACAMS; • Requirements of the successful candidate to become a member of BACO; • In-depth knowledge of the Central Bank of the Bahamas’ regulations and applicable legislation; • Excellent attention to details; • Excellent oral and written communication skills; • Excellent time-management skills; • Proficient in Microsoft Office; • Minimum of three (3) years previous experience

Interested, qualified, candidates should email to: Attention: General Manager to the following address: info@pwccu.com or via P. O. Box N-1986; Nassau, Bahamas; on, or before, August 19th, 2019. No phone calls will be accepted. And, only qualified candidates will be contacted.


THE TRIBUNE

Tuesday, August 13, 2019, PAGE 3

KEY MORTON SALT ISSUES ‘REMAIN OUTSTANDING’ By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE lead negotiator for Morton Salt’s line staff union says that despite “some movement” in talks between the two sides​the key issues of salary increases and medical insurance remain unresolved. Obie Ferguson, who is also the Trades Union Congress (TUC) president, confirmed to Tribune Business that while some issues were worked out at last Thursday’s meeting between the company and Bahamas Industrial, Manufacturers & Allied Workers Union (BIMAWU), the major ones remain outstanding. Negotiations are now scheduled to resume in late September.​ “There has been some movement but the major issues that are still outstanding is the question of salary and insurance,” Mr

OBIE FERGUSON Ferguson said. “There has been some improvement and a tentative agreement on certain aspects of it, but the major issues are salary increase and insurance. “We have another meeting scheduled for September 30. We have to iron those two issues out and come to some arrangement. Once those items would have been resolved we would be ready to have the industrial agreement concluded.” Mr Ferguson had previ-

ously argued that Morton Salt’s proposal was a “deficit industrial agreement”, and called for salary increases that matched the inflation rate.​ Explaining what he meant, the TUC chief said the base salary increases offered to workers over the proposed industrial agreement’s three-year term - 1.5 percent for each of the first two years, and 1.9 percent for the final year - were lower than the current rate of inflation and cost of living increases, which have both been impacted by last year’s VAT rate hike.​ And, Mr Ferguson argued, the increase in staff contributions to their health insurance coverage would more than offset the positive effect from salary increases.​ Dion Foulkes, minister of labour, previously said resolving the Morton Salt dispute was “a top priority for the sake of

all Inagua residents”.​ The battle between Morton Bahamas and the BIMAWU escalated in late June after the company, in a letter exposing its growing exasperation and frustration over the two sides’ “impasse”, accused the line staff union of failing to negotiate “in good faith” and disrupting “the economic viability” of its Bahamian operations.​ Morton Salt executive, Christopher Getaz, told Jennifer Brown, the BIMAWU president, that her members would be locked out of its facilities from July 3 unless the company received a reply indicating the two sides can reach a “happy medium” over a new industrial agreement.​ Noting the union’s possession of a strike certificate, and previous threats of industrial action, Mr Getaz also blamed reduced productivity and

work slowdowns on the BIMAWU’s influence, and suggested that the “lockout” was required to redress the negotiating balance.​ These actions, he alleged, included “an operating deficit in all harvest levels” on a daily, weekly, monthly and year-to-date basis to February 22, 2019; “significantly lower boat loading rates” in February and March; and a “reduction to lowest loading rates”, which caused “significant costs and placed the company at risk of missing the contract for de-icing salt” around early March.​ “The foregoing requires the company to consider whether, in the declared industrial action climate, it is necessary for the company to lock employees out of the plant in furtherance of the company’s bargaining objectives in negotiations for a new industrial agreement,” Mr Getaz told the union.​ “We invite a response

from you within the next 15 days with a view to arriving at a happy medium between the parties. Failing such a response, or the arrival to a happy medium between the parties, the company intends to proceed with its lock-out at the expiry of 15 days from the fate of this letter.”​ Mr Getaz added that the company’s June 13 offer to the union was its “best and final” position, and said: “The company is not in a position to make further offers.”​ The “lock-out” was averted after intervention by the government. In response, the union’s Ms Brown had told this newspaper that Inagua would become “a ghost town” should Morton Salt follow through with its threat. She added that while the BIMAWU wanted an industrial deal it would “not sign for stupidness”.​

BTC VOLUNTARY SEPARATION ROLL-OUT ‘IN COMING DAYS’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Bahamas Telecommunications Company’s (BTC) chief executive has confirmed it will roll-out its latest employee voluntary separation programme (VSEP) “in the coming days”. Garfield “Garry” Sinclair, in a statement, said: “BTC reaffirms our commitment to building a culture of high performance that will ensure that we have the right teams in place to deliver the moments that matter to our customers. “As we continue to compete in the rapidly evolving telecommunications industry, we are enhancing our operating model to ensure that we remain the provider of choice for the Bahamian people. As such, BTC will implement a VSEP in the coming days and will share all relevant details of the offer with colleagues who wish to participate the programme. Colleagues will have the opportunity to indicate their interest

GARFIELD SINCLAIR during a specified period of time.” No further details were provided. Dino Rolle, the Bahamas Communications and Public Officers Union’s (BCPOU) president, could not be reached for comment before press time last night. However, the line staff union has filed a trade dispute with the Department of Labour over the VSEP initiative, alleging that BTC has failed to properly negotiate its terms with the worker representative. John Pinder, director of labour, previously said the union was seeking a VSEP package collectively worth $19m, while the company

said it could only go as high as $11m. Mr Sinclair, in a previous interview with Tribune Business, pledged that the new VSEP packages will be “considerably more” generous than in previous downsizings as BTC bids “to create the impetus for a cultural evolution in the business” to help it cope with ever-increasing competition. Leaders of the two trades unions representing BTC staff, including Mr Rolle, have suggested that the carrier is hoping around 100 staff would accept the packages, although Mr Sinclair said numbers and costs had yet to be determined. He emphasised that it was “voluntary”, with no forced redundancies involved, and said that unlike other VSEP-type exercises at other stateowned enterprises (SOEs) he would not stand in the way of any BTC employee wishing to leave. Other entities, especially Bahamas Power & Light (BPL), rejected numerous VSEP requests on the grounds that the persons

involved had specialist skills for which there were no ready replacements. However, Mr Sinclair pledged this would not occur, saying: “I want people who want to be here.” He told Tribune Business: “I can confirm we are going to engage in another VSEP here. It’s going to be voluntary, and there’s no set number in mind. As part of this thing we have to look at numbers to get a sense of the costs, but the VSEP is going to help us create the impetus for the cultural evolution in the business that’s going to happen as we evolve from this monopoly environment into a competitive environment. “Yes, a VSEP is more than likely going to occur, but it will be voluntary. The package is going to be attractive enough for any colleague who feels they’ve come to the end of the road in this business, don’t like what the leadership is doing with this business, they will be able to put their hands up and say they’d like to avail themselves of this and we will be able to accommodate them.”

BTC currently has some 700 employees, of whom 520 are full-time staff. The remainder are contract workers, and Mr Sinclair said he was unsure “what the contention” of BTC’s two unions, the Bahamas Communications and Public Officers Union (BCPOU) and the Bahamas Communications and Public Managers Union (BCPMU), would be in relation to the likely VSEP exercise because it was voluntary as opposed to being forced. He added that their opposition was another example of the unions’ tendencies “to find a dark cloud behind every silver lining, which they need to resist if we are not going to become extinct”. Yet within an hour of his interview with Tribune Business on Friday, both unions were demanding Mr Sinclair’s resignation and alleging VSEP negotiations had failed. However, the BTC chief told Tribune Business: “We’re definitely in the planning phase. We want to execute it properly and sensitively, and create as soft a

landing as possible for colleagues that put their hands up, and mare sure we’re prepared for what the business and operating model will look like afterwards. “My belief is if people put up their hands and say they want to go, we’re going to have to restructure this business in a way that allows us to deliver a solid customer experience, products and services without them.... I want people who want to be here. “All I can say is that the packages we are planning for, and contemplating, are going to cost considerably more than last year for the same number of people for planning purposes. When you go from being a $330m revenue business to a $220m business you have to change the operating model; you can’t stay the same.” Mr Sinclair said BTC, which two decades ago had around 2,000 employees, had always used voluntary separation exercises to reduce the size of its workforce. Historically there have been no forced mass redundancy exercises.


PAGE 4, Tuesday, August 13, 2019

THE TRIBUNE

QC: ‘KYC Once’ will stop bank ‘dangling’ FROM PAGE ONE “People are left dangling in their personal and business lives. When people have to pay their electricity bills, lend money to each other or have money deposited to their account in the region of $5,000, $10,000, $25,000, it’s almost impossible,” Mr Smith blasted. “Sometimes you have to go back and cut the cheque in half, have a witness to the transaction or have someone else go and cash it, all without explanation for people who have been doing business with the bank for decades.” Tribune Business reported last month how several businesses, set up by legitimate persons who already own and manage companies, had to endure a six-month wait

to open a Bahamian bank account for a new commercial venture. This impeded their ability to start conducting business, and Mr Smith revealed he was a party to transactions “as low as $1,200” that were being held up in the commercial banking system. “There does not appear to be any sensible, reasonable threshold” for applying KYC scrutiny to occasional transactions, he told this newspaper, echoing a frequent complaint of Bahamians every since the 2000 “blacklisting” laws were passed to enable The Bahamas to escape the Financial Action Task Force’s (FATF) list. To remedy the problem, Mr Smith urged the government to increase the threshold above which occasional transactions are scrutinised to

$50,000. Sums below this level would be exempt from KYC due diligence unless financial institutions saw a pattern of transactions such that it aroused their anti-money laundering suspicions. Pointing out that money laundering typically involved the movement of large sums of money in a bid to conceal its source, and “wash” it through the financial system so that it appeared legitimate and became clean, the QC added: “They shouldn’t scrutinise every single miniscule transaction. “Everyone has been presumed guilty as opposed to having the benefit of the doubt. The presumption of innocence that underpins Western civilisation in common law jurisdictions no longer seems to exist, even for The Bahamas.”

Calling for the provisions of the Financial Transactions Reporting Act and Register of Beneficial Ownership Act to be eased, Mr Smith urged the government to pass legislation that he branded as a “KYC Once Act”. Besides specifying the due diligence requirements for individuals and different types of businesses, Mr Smith said this would allow private companies - licensed by the Central Bank or other regulators - to conduct client scrutiny on behalf of local financial institutions rather than the latter continuing to perform this task. Those clients who passed would then receive a KYC certificate, attesting to their legitimacy, that would be valid at any Bahamas-based financial institution. Mr Smith argued this would eliminate

“a huge unnecessary expense” and the need for individuals and companies to keep providing “the same information again and again and again around KYC”. “That will position The Bahamas as a leader in the ease of doing business,” he told Tribune Business. “Once a KYC certificate is issued it will be accepted by any government agency and financial institution. “Whether you are already doing business here, want to do business here or are an ordinary citizen that means your existence won’t be bedeviled by a mass of minutiae. It eases the bureaucratic and administrative burden for government regulators. Why do we have to keep reinventing the wheel? “Doing business and living in The Bahamas could

become so simple again. For a person with five, ten and 15 companies in their organisation, having to produce all the documents to the bank every single year drives up the cost of doing business and the difficulty of doing business.” Mr Smith added that his “KYC Once Act” proposal could also make The Bahamas “a leader in the financial world in the Caribbean”, and a regional “clearing house” when it came to due diligence matters. “Maybe we can become a central KYC exchange for the rest of the Caribbean,” he mused, “a KYC clearing house. Maybe like the banks moved back offices to Trinidad this is an opportunity for The Bahamas to create jobs by becoming a KYC clearing house for the jurisdiction.”

BPL’s $95m Wartsila deal hit existing plant FROM PAGE ONE 15 years”, adding that BPL would have to keep at least 60 MW - or around half - the Aggreko rental generation units on-island next summer to avoid a repeat of this year’s catastrophe. The BEWU president then warned against “giving Bahamians false hope”. While the new Wartsila engines may be installed by December 15, Mr Maynard expressed scepticism as to whether they would be fully operational and connected to the BPL grid by that date.

BPL HEADQUARTERS

Legal Notice

NOTICE NOTICE IS HEREBY GIVEN to the public that Zeneta Archer-Deveaux, the heiress-at-law of the estate of the late Pearl Tucker, who died on the 20th day of September, 1980, is the legal fee simple owner of the property described herein. Any person or persons claiming any right, benefit or interest in the same, must present his or her claim, in writing, along with the appropriate documentation, to the aforementioned Zeneta Archer-Deveaux, within twenty-one(21)days of the publication of this notice at the expiration of which time, no further claim will be entertained. The plot referred to comprise sis thousand six hundred and eight(6,608.00)square feet on the southern side of Laird Street two hundred and sixty seven feet east of Blue Hill Road in the southern district of New Providence bounded on the north by Laird Street and running thereon fifty two and thirty three(52.33)hundredths feet on the south by property of various owners and running thereon fifty-eight and sixty nine hundredths(58.69)feet, on the east by property of Sadie Curtis and running thereon one hundred and eighteen and twenty seven hundredths(118.27)feet, and on the west by property of one Dorsette and running thereon one hundred and twenty and forty four(120.44)hundredths feet. ZENETA ARCHER-DEVEAUX Phone No.242-818-7911

And he added that Mr Heastie’s confirmation that BPL will not compensate customers for the frequent power outages, which often last for three to four hours at a time, would not be well-received by the majority of frustrated Bahamian households and businesses. He suggested compensating companies, especially large hotels and commercial customers requested to run their generators to alleviate the load on BPL, by granting then border tax breaks - Excise Tax, Stamp Duty and VAT relief - on diesel fuel imported for these assets. “It’s because they took the $100m out of the company’s budget to buy the engines from Wartsila that we are unable to meet our target goals to get everything ready,” Mr Maynard blasted to Tribune Business. “They took a lot of money out of the company’s budget, and that’s why we were unable to meet maintenance goals as we didn’t have any money. They should have known that would happen. Murphy’s law is always a curse.” The union chief alleged that by placing all its financial ‘eggs in one basket’ BPL had left itself with insufficient funding to maintain its existing, aged generation fleet that has constantly suffered from poor upkeep during a summer when there was virtually no margin for break down. He added that BPL should have passed its summer generation problems over to Shell, whose financial resources “can move mountains”, to deal

with rather than attempt to tackle them itself knowing how cast-strapped it is. The $95m Wartsila deal is effectively the same as the proposal that caused one of the rifts on the Darnell Osborne-led Board. Mr Heastie and Patrick Rollins, BPL’s executive director, had sought to use a portion of the $100m short-term financing facility raised last year to purchase new generation engines to fill the gap between now and the Shell power plant’s start. That was blocked by Mrs Osborne and the thenBoard’s finance committee, which argued this was contrary to how BPL had told the lenders their money would be used. They had been informed that the funds would go towards the [staff] VSEP settlement, Advanced Metering Infrastructure (AMI) initiative, and many capital projects that had been starved of financing. Mr Maynard, meanwhile, argued that the Wartsila engines “are not the saviour” they are being made out to be because BPL is effectively adding new generation capacity that is 12 MW more than what is currently rented from Aggreko. With New Providence’s peak demand some 118 MW higher than the Wartsila generation capacity, the union leader added: “We can’t send those rental units back. They’ll have to keep at least 60 here. Otherwise next summer we will be back in this quagmire again.” Shell’s new power plant, which will incorporate the Wartsila units, will add another 90 MW of generation, but Mr Maynard said at least another 60 MW in generation capacity was needed “on top” of that. “Ultimately it would be better for New Providence to have a 300 MW plant looking into the future,” he told Tribune Business. “There’s no point doing this and not getting what we want for the next ten years. “The government has to decide whether it is going to be serious about this or not. We need a 300 MW plant for New Providence. We have 132 MW coming now, and need to figure out how to get another 170

MW. If they’re serious we can have our needs taken care of for the next ten to 15 years. “We need to retire these old units, start afresh and start a new plant. Then we will not have to do anything for the next ten to 15 years, can pay the loans and run a proper company.” BPL is hoping that Wartsila’s new engines can bridge the gap to the new Shell power plant by providing New Providence residents with reliable, consistent and lower cost energy in what is a multiphase turnaround initiative for the state-owned utility. The next stage revolves around construction of the new power plant and its associated liquefied natural gas (LNG) infrastructure, both of which are due to be completed by end-2021, just in time for the next general election. Mr Maynard, though, expressed scepticism that the new Wartsila engines will be operational by September, adding: “Seeing is believing. It’s not going to happen. Stop giving people false hope.” He said BPL should have been more creative in trying to alleviate the suffering, cost and frustration imposed by its constant load shedding, and warned: “Playing the blame game did not go over well with the public. “Facebook ate him [Mr Heastie] alive. People want to hear what you’re going to do to alleviate the problem. It’s not good enough not to compensate people.” Pointing out that BPL is paying between $2.50 to $3 per gallon for its diesel fuel, Mr Maynard suggested that the government grant businesses with generators tax breaks on their fuel so they could purchase it at the same cost. Inquiries with gas stations established that their current per gallon diesel price is around $4.32. “It’s extenuating circumstances, and what you could do is extend this price to all the business people as it may be significant savings for them,” Mr Maynard said. “Not to mention that they have to do maintenance because they’re running them all the time. It’s costing them, and there’s a lot of things they can do.”

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THE TRIBUNE

Tuesday, August 13, 2019, PAGE 5

Regulator ‘won’t be strong armed’ on Sky Bahamas FROM PAGE ONE commercial purposes. This requires the operator to have personnel, assets and systems in place to ensure the safety of the public and the operator’s employees. “Our function is to foster and facilitate an environment in which air commerce can take place with the overriding mandate being the preservation and protection to the extent possible, as well as the safety of the flying public.” Captain Beneby said “there have been issues in the past; a number of them” with Sky Bahamas, but added that “we were able to work through those issues and they were able to continue”. He disclosed that further issues were discovered with the airline during

a recent inspection, and said: “We embarked on an exercise which would have given them the opportunity to have those matters addressed in a timely manner, and to ensure safety to the flying public. Sky Bahamas is not being singled out; this is not an act of sabotage. There is no political consideration, certainly not on the part of the Authority.”​ Captain Beneby said a court injunction had resulted in the closure of Sky Bahamas’ operations at Lynden Pindling International Airport (LPIA) and forced it to vacate its premises there. That is understood to relate to a dispute between the airline and Nassau Airport Development Company (NAD), the airport operator, over alleged unpaid fees owed to the latter. It emerged last year that the airline owed NAD

some $454,000 in passenger facility and security fees it collects from ticket prices on the airport operator’s behalf, but Captain Butler said Sky Bahamas had been making inroads into this sum as well as paying what was due currently. At the time he branded NAD’s threat to terminate Sky Bahamas’ airport operating licence as “a nonissue”, adding that the debt owed had been reduced and that such a situation was not uncommon with other airlines. “I will not speak to Sky Bahamas’s financial position. The claim that the Authority somehow shut Sky Bahamas down and prevented them from continuing their operations is unfounded,” Captain Beneby said yesterday.. “The authority is not going to be bullied, coerced or strong-armed into

Russia, Iran, others debate how to split Caspian oil riches TURKMENBASHI Associated Press FIVE countries bordering the energy-rich Caspian Sea met yesterday at an economic forum hosted by Turkmenistan in a bid to agree on how to divide the region’s oil wealth. Last year, the leaders of Russia, Iran, Azerbaijan, Turkmenistan and Kazakhstan signed a convention aimed at ending decades-long uncertainty over exploitation of its resources. The agreement establishes rules for declaring each country’s territorial waters and fishing zones, but the issue of dividing seabed that contains rich oil and gas fields is subject to further negotiations. Russia and Iran are yet to ratify last year’s agreement. Russia’s Prime Minister Dmitry Medvedev, who attended yesterday’s forum in Turkmenistan, said that the ratification is expected “in the near future”. Iranian Vice President Eshaq Jahangiri was noncommittal, making no commitments in his speech at the forum. Jahangiri argued that nonCaspian nations shouldn’t meddle in the region’s affairs and charged that the United States’ unilateralist policies and its emphasis on sanctions threaten stability of the region. Turkmenistan’s President Gurbanguly Berdymukhamedov, who has wielded all-encompassing power since taking office in 2006, styling himself as the former Soviet republic’s Arkadag (protector), told the forum that the Caspian energy riches should provide a powerful incentive for the region’s development. Turkmenistan and Azerbaijan have yet to agree on how to share the reserves under the seabed. That has impeded progress of the

granting a certificate unless it is satisfied that an operator possesses the necessary capabilities.” Captain Beneby yesterday said “some progress” has been made despite Sky Bahamas’s refusal to allow inspectors on-site. “After finally being granted permission to access, of the six findings still outstanding we were able to resolve about half of them​,” he added. He said one issue involved a pilot not having a valid medical certificate, while another involved the need to fill the position of manager responsible for safety systems.​ Addressing concerns raised by Captain Butler over an inspector being biased against Sky Bahamas, he said any official with such a potential conflict of interest would not conduct the inspection.

with representatives of the Water and Sewerage Corporation and The Bahamas government and, as a result, payment schedules are developed for Water and Sewerage Corporation’s delinquent accounts receivable. “All previous delinquent accounts receivable from the Water and Sewerage Corporation were eventually paid in full. Based upon this payment history, Consolidated Water Bahamas has never been required to provide an allowance for doubtful accounts for any of its accounts receivable despite the periodic accumulation of significant delinquent balances. As of June 30, 2019, we have not provided an allowance for Consolidated Water Bahamas’ accounts receivable from the Water and Sewerage Corporation.” Yet Consolidated Water then warned: “If Consolidated Water Bahamas continues to be unable to collect a significant portion of its delinquent accounts receivable, one or more of the following events may occur. “Consolidated Water Bahamas may not have sufficient liquidity to meet its obligations without new funding from its shareholders. We

RUSSIAN Prime Minister Dmitry Medvedev, left, and Turkmenistan’s President Gurbanguly Berdymukhamedov speak, prior to a session of the First Caspian Economic Forum in Turkmenbashi, Turkmenistan yesterday. Trans-Caspian natural gas Iran has argued for energy pipeline that would carry shipments from the Caspian Turkmen gas across the sea to cross its territory, arguing to Azerbaijan and further that trans-Caspian routes are too costly and unsafe. on to Western markets. “Iran is against any trans“It’s a very sensitive issue,” said Bahram Caspian pipelines,” said Huseynov, a vice president Behruz Namdari of Iran’s of Azerbaijan’s state oil National Gas Company. company SOCAR. “No “The construction of a transconcrete steps have been Caspian pipeline could made yet and it’s too early inflict a serious damage to the environment.” to discuss specifics.” Huseynov added that demilitarisation of the sea LEGAL NOTICE border between Azerbaijan NOTICE and Turkmenistan could facilitate the talks on dividing the energy riches. International Business Companies Act The West has long No. 45 of 2000 encouraged prospective trans-Caspian pipelines as MIPRELA SERVICES LTD. part of its efforts to diver(the “Company”) sify sources of energy, while Russia and Iran have watched the plans with Notice is hereby given that, in accordance with unease. More energy exports Section 138 (8) of the International Business from the Caspian would Companies Act, No. 45 of 2000, the Dissolution of MIPRELA compete with energy shipSERVICES LTD. has been completed. a Certificate of ments from Russia, which Dissolution has been issued and the Company has has sought to expand the therefore been struck off the Register. The date of sales of its oil and gas to completion of the dissolution was the 26th day of July, 2019 European markets.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, ARDISA FELISHA HUYLER,Soldier Road,P.O.Box CB13513 New Providence, Bahamas intend to change my name to ARDISA FELISHA HANNA. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, New Providence, Bahamas no later than thirty (30) days after the date of publication of this notice.

“We have not received the majority of that because the people who flew those times, most of those people did not pay any money in taxes or fees. We are talking over $300,000. That money has been owed for over 18 months for trips done in 2016 and 2017, and we did not collect the fees and the taxes.” Captain Butler continued: “This is all a farce. Sky Bahamas is dedicated to serving the Bahamian people. We have been doing this for 11 years. We have suffered great financial loss and great loss to our reputation. We are just thankful that we have a number of supporters that continue to encourage us. We look forward to sorting out all these matters and getting back and running.”​ The airline has been grounded since July 8.

Water Corp: Two-thirds of its debt ‘delinquent’ FROM PAGE ONE

The Public is hereby advised that I, VALENCIA SHARON GIBSON of No. 8 Tobago Crest, Elizabeth Estates intend to change my name to SHERON VALENCIA McKENZIE. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O. Box N-742, Nassau, New Providence, The Bahamas no later than thirty (30) days after the date of the publication of this notice.

“There has been a relationship between Sky Bahamas and one of my inspectors in the past. I think that matter is being litigated,” said Captain Beneby, who declined to say more. Captain Butler, though, hit back by saying: “​ I think this was all about trying to embarrass Sky Bahamas and Captain Randy Butler about the court matter. I think the purpose of that press conference was, again, because of the total victimisation and the kind of sabotage these people are doing. “The court matter is about a disputed issue and nothing to do with the air operator certificate. We have said that in terms of paying for the rent and that sort of thing those are paid up and current. You are talking about facility charges and taxes.

NOTICE

NOTICE is hereby given that TARYN SORIYA MARIA NURSE of P.O. Box N-3940, 60 Kildeer Drive, New Providence, The 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 13th day of August, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

may be required to cease the recognition of revenues on Consolidated Water Bahamas’ water supply agreements with the Water and Sewerage Corporation, and we may be required to provide an allowance for Consolidated Water Bahamas’ accounts receivable. Any of these events could have a material adverse impact on our results of operations, financial position and cash flows.” The reason for the Water and Sewerage Corporation’s inability to make timely, infull payments to its main water supplier is set out in a recent Inter-American Development Bank (IDB) report that confirms the state-owned utility is selling water massively below cost to its customers - resulting in the Public Treasury/taxpayers having to subsidise it. “The country’s national agency, Water and Sewerage

Corporation (WSC), supplies less than 50 percent of overall potable water demand in The Bahamas. Currently, only 14 percent of the population has access to improved sewerage and sanitation facilities,” the IDB report said. “No tariff adjustments have been granted for several years, and current tariffs presently represent about 60 percent of the cost of service in New Providence, and only 30 percent in the Family Islands (where the cost of service provision is higher and the tariff lower than in New Providence).” As a result, the IDB warns that the benefits from reducing water leaks and losses from the Water & Sewerage Corporation’s system by 60 percent could be lost if there is no tariff rebalancing.

LEGAL NOTICE

NOTICE International Business Companies Act No. 45 of 2000 Intercorp International Group Ltd. (the “Company”) Notice is hereby given that, in accordance with Section 138 (8) of the International Business Companies Act, No. 45 of 2000, the Dissolution of Intercorp International GroupLtd. has been completed. a Certificateof Dissolution has been issued and the Company has therefore been struck off the Register. The date of completion of the dissolution was the 21st day of June, 2019


PAGE 6, Tuesday, August 13, 2019

THE TRIBUNE

DOW SLUMPS NEARLY Hong Kong airport 400 POINTS AS TRADE protest shutdown WAR ANXIETY LINGERS tarnishes business image By ALEX VEIGA Associated Press

AUSTRALIAN PENNY TILLEY, centre, reacts next to stranded travellers at the closed check-in counters at the Hong Kong International Airport yesterday. One of the world’s busiest airports cancelled all flights after thousands of Hong Kong pro-democracy protesters crowded into the main terminal yesterday afternoon.  Photo: Kin Cheung/AP By KELVIN CHAN Associated Press MASS flight cancellations at Hong Kong’s airport disrupted one of the world’s busiest air-transport hubs yesterday, causing chaos for tourists and business travelers and playing havoc with global airlines’ flight schedules— a fresh escalation of the city’s protest movement that threatens the Asian city’s business-friendly image. Thousands of supporters of the largely leaderless pro-democracy protest movement descended on the terminal in an effort to get the message out to the world about their struggle and the harsh tactics used by police. Many wore eyepatches to show their solidarity with a female protester who reportedly was hit in the eye by a projectile fired by police. The protests, which have seen both sides adopt increasingly extreme tactics, had until yesterday

been mostly confined to neighbourhoods across the former British colony. But the airport protest, which caused the cancellation of more than 150 flights, was a rare case of the movement having a direct impact on business travel and tourism — mainstays of the Asian business centre’s economy. Analysts said it could make foreign investors think twice about setting up shop in Hong Kong, which has long prided itself as being Asia’s leading business city with convenient air links for executives traveling across the region. “The level of political risk associated with operating in Hong Kong is unprecedently high and the situation isn’t simply a flash in the pan,” said Hugo Brennan, principal Asia analyst at global risk consultancy Veritas Maplecroft. “Those investors that haven’t already done so are beginning to question the utility of being based in the territory. Others have already begun the search for more politically stable

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hubs in the Asia-Pacific,” he said. Adding to the protesters’ anger, Hong Kong’s Cathay Pacific Airways told employees in a memo that the carrier has a “zero tolerance” for employees joining “illegal protests” and warned disciplinary consequences could include being fired. A Cathay Pacific pilot was charged with rioting and two ground staff fired for misconduct, the airline said by email yesterday. The moves came after the Chinese government warned Cathay Pacific, one of Hong Kong’s best-known international brands, to bar its staff from participating in the protests — an escalation into the territory’s business affairs. Hong Kong officials warned that yesterday’s protest risked hurting the city’s reputation as a travel and transport centre. “There is a serious impact on the operation of the airport,” said Hong’ Kong’s second-highest ranking government official, Chief Secretary Matthew Cheung. “We are an international airport hub and it is also the trunk of Hong Kong’s business.” There were already signs business travellers were looking elsewhere. “Some customers have shown a decline in travel bookings to Hong Kong in June and July, as a number of countries have issued safety advisories urging travelers to exercise caution,” said Julian Walker, a spokesman for travel management platform CWT, formerly known as Carlson Wagonlit. It was too early to know how yesterday’s shutdown had affected bookings, he said. Hong Kong’s international airport was built on land reclaimed from the sea and opened in 1998, replacing an aging airstrip in the middle of the crowded, mountainous city.

The city’s foreign investment promotion agency, InvestHK, boasts that Asia’s key markets are “less than four hours away”, a big selling point for the 8,000 international companies that have set up sales, operations and research and development centers in Hong Kong. More than 100 airlines allow “easy and efficient travel” to 190 locations, the agency says. The airport handled 75.3 million passengers in 2018, making it the world’s second-busiest international airport after Dubai, according to preliminary data from Airports Council International . It’s also the world’s busiest air cargo hub, driven partly by demand from wealthy countries for Asian exports. More than five million metric tons of air freight passed through the airport last year, the council said. “The situation in Hong Kong has now become risky in terms of potential consequences, but also threatens the reputation of the city as a safe and stable business hub served by a world class airport,” said Loizos Heracleous, a professor of strategy at Britain’s Warwick University. The shutdown left thousands of business travellers stranded. Joydeep Chakravarti, a software engineer whose connecting flight to San Francisco was canceled during a layover in Hong Kong, was on his way back from a weeklong work trip to India. “I just want to get home,” said Chakravarti, adding that he was reluctant to leave the airport because he wasn’t prepared and had only his carry-on bag with laptop, charger and extra shirt. “I have informed my boss about this,” he said. “I have informed them I will probably not show up on time for work.”

STOCKS fell sharply on Wall Street yesterday, knocking nearly 400 points off the Dow Jones Industrial Average. The benchmark S&P 500 had its worst day in a week as the sell-off put the market deeper into the red for August. The selling was widespread, with technology companies and banks accounting for a big share of the decline. Investors sought safety in US government bonds, sending their yields tumbling. The price for gold, another traditional safehaven asset, closed higher. The costly trade war between the US and China has rattled markets this month. An escalation in tensions between the world’s largest economies has stoked worries that the long-running trade conflict will undercut an already slowing global economy. “Trade and the concern that as this escalates it continues to wear on confidence to a point that this actually causes a recession, that’s what people are wrestling with,” said Ben Phillips, chief investment officer at EventShares. The latest wave of anxious selling left the S&P 500 index down 35.95 points, or 1.2%, at 2,882.70. The Dow fell 391 points, or 1.5%, to 25,896.44. The average was briefly down 462 points. The Nasdaq composite dropped 95.73, or 1.2%, to 7,863.41. The Russell 2000 index of smaller company stocks lost 18.58 points, or 1.2%, to 1,494.46. The major indexes are down more than 3% for August. Even after this month’s stumble, they are up solidly this year, led by the Nasdaq with a gain of 18.5%. The S&P 500 is up nearly 15%, though it’s down 4.7% from its all-time high set at the end of July. Anxiety and fear over the US-China trade war continues to hover over the market and has taken stocks on a wild ride in August. The S&P 500 index zoomed up and down last week, ending with its second straight weekly loss. The wild swings follow President Donald Trump’s threat to impose more tariffs on Chinese goods, followed by China’s move to allow its currency to weaken. Trump has promised 10% tariffs on some $300bn in Chinese imports that haven’t already been hit with tariffs of 25%. The new tariff would go into effect Sept 1 and more directly affect US consumers. Last week, Trump said he’d be “fine” if the US and China don’t go ahead with a meeting next month, dampening investors’ hopes for a path to resolving the economically damaging trade war. The longer the trade conflict drags on, the more it has the potential to threaten the weakening global economy by discouraging trade and causing businesses to pull capital spending plans on hold. The International Monetary Fund expects world trade to slow in 2019 for a second straight year.

“We’re hearing from management teams that there’s just caution on investing, especially globally,” Phillips said. “Multinationals are being very cautious. ... Their view is if the rest of the world slows down, the US won’t be insulated from that.” Traders continued to shift money into bonds yesterday, sending bond prices sharply higher. That pulled down the yield on the tenyear Treasury to 1.64% from 1.73% late on Friday, a big move. The yield is used as a benchmark for interest rates on mortgages and other consumer loans. The drop in bond yields weighed on financial sector stocks. Bank of America fell 2.4% and Citigroup gave up 2.7%. Credit card issuer Synchrony Financial slid 3.9% and Capital One Financial dropped 2.3%. Technology, health care and consumer discretionary sector stocks accounted for much of the market’s decline. Symantec dropped 5.7%, Nektar Therapeutics slumped 11.2% and Tractor Supply fell 4.7%. Real estate and utilities stocks posted the smallest declines. Traders usually seek the shelter of utilities and bonds when they want a more secure place to put their money because of concerns over economic growth. Sysco rose 3.1% after the food distributor beat Wall Street’s fiscal fourth quarter profit forecasts. The company’s revenue edged higher on growth from its US operations. Shares in Viacom and CBS fell amid published reports suggesting the entertainment companies are close to a merger deal. Viacom slid 4.9% and CBS lost 1.8%. Major stock markets outside the US were mixed yesterday, with indexes in Europe closed broadly lower while those in Asia ended broadly higher. Hong Kong’s Hang Seng lagged and shed 0.4% as that city continues to deal with increased tensions from pro-democracy protests. The Hong Kong airport shut down yesterday when thousands of demonstrators occupied its main terminal. Stocks in Argentina plummeted and the Argentinian peso fell sharply following a primary victory for a populist ticket in the nation’s presidential elections. The nation is in a deep economic crisis and the potential for a drastic change in leadership is rattling investors there. Matías Carugati, chief economist for Management & Fit, said the victory of the populist Alberto Fernández team would put “sustained” pressure on the exchange rate and stocks due to the prospect that the nation could shift course to a more state-interventionist course for the economy. Investors are facing a relatively slow week as far as economic reports and corporate earnings. The Labour Department will release its consumer price index for July today and Commerce Department will release last month’s retail sales results on Thursday.

LEGAL NOTICE

NOTICE International Business Companies Act No. 45 of 2000 Sulla Trade Ltd. (the “Company”) Notice is hereby given that, in accordance with Section 138 (8) of the International Business Companies Act, No. 45 of 2000, the Dissolution of Sulla Trade Ltd. has been completed. a Certificate of Dissolution has been issued and the Company has therefore been struck off the Register. The date of completion of the dissolution was the 26th day of June, 2019


THE TRIBUNE

Turmoil calms as Puerto Rico governor turns to policy SAN JUAN Associated Press PUERTO Rico’s political turmoil seemed to be at least

Tuesday, August 13, 2019, PAGE 7 temporarily easing yesterday with attention shifting from protests to policy following the replacement governor’s move to suspend a hurricane recovery contract. In one of her first moves as governor, Wanda Vázquez announced late on Sunday that she was scrutinising a pending $450,000 contract that is part of the programme to rebuild and strengthen the island’s power grid, which was destroyed by Hurricane Maria nearly two years ago. “There is no room in this administration for unreasonable expenses,” said Vázquez, who on Wednesday became Puerto Rico’s third governor in a week following massive protests that resulted in political turmoil. Immediate pressure on the

new governor appeared to be easing somewhat. There have been no large protests since she was sworn in and none appeared to be on the horizon. Yesterday, Vázquez asked people to give her an opportunity. “The people of Puerto Rico know I’m here because the constitution dictated it,” she said, adding that she has spent 32 years in public service, including as a district attorney and justice secretary. “Throughout my trajectory, I was able to see the need, the poverty, the desperation, the helplessness and also the will of the people to keep moving forward ... I want to keep using those experiences for the benefit of the people.”

Vázquez said one of her priorities is to evaluate all government contracts. Anger still simmers across the US territory over corruption and mismanagement of public funds led to the recent ouster of the island’s former leader. Yesterday, a federal control board overseeing Puerto

Rico’s finances requested copy of all contracts that former Gov Ricardo Rosselló signed in the last two weeks before he stepped down, noting that media reports said he signed more than 200 contracts worth some $80m. The board said in its letter to Chief Financial Officer Omar Marrero

that it has to approve any contracts worth $10m or more. The contract that Vázquez called into question was one that Puerto Rico’s Electric Power Authority, which is more than $9bn in debt, had been expected to sign the contract with Stantec, a consulting firm based in Canada.

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CAREER OPPORTUNITY Suitably qualified persons are invited to apply for the position of:

Executive Director of Corporate and Foundation Relations in the

Division of Institutional Advancement responsible for managing a portfolio of prospects and working in close partnership with university leadership, academic units and programme leaders to develop and implement strategies to secure funding in alignment with the University’s strategic plan. The duties of this portfolio comprise engaging corporate and foundation funders, fundraising and grant proposal management; coordinating corporate sponsorship strategies in collaboration with academic units and leaders; and stewardship responsibilities. Among other duties, the Executive Director of Corporate and Foundation Relations will maintain a portfolio of 75-150 corporate and foundation prospects; oversee a new Office of Grants (Non-Research Corporate and Foundation Grant Activity); collaborate with University and U.S./Canadian/Bahamian Foundation board members to strategize on corporate and foundation prospects; lead the University’s Corporate Outreach Strategic Task Force (C.O.S.T.); oversee key corporate special events and ensure that reporting requirements are met to sustain successful partnerships and sustained and ongoing support from corporate and foundation funders. A detailed position announcement is accessible at: http://www.ub.edu.bs/about-us/career-opportunities/administration/ Required qualifications include a Bachelor’s degree; a minimum of 10 years’ experience in a higher education setting; experience securing grants and/or fundraising for a non-profit; and demonstrated skills at building collaborative relationships with internal and external constituents. Interested applicants should submit electronically to the Vice President, Human Resources via hrapply@ub.edu.bs the following documents: • A cover letter of interest highlighting work experience and accomplishments relevant to the position; • Completed Employment Application Form (www.ub.edu.bs/wp-content/uploads/2017/01/Application-forEmployment-Staff.pdf) • Current Curriculum Vitae or Resume; • Copies of any relevant qualifications and/or Certificates; • Copy of the relevant pages of a valid passport showing passport number, photo identification and expiration date; • Copy of N.I.B. Card; • Copy of Voter’s Card; • At least three (3) written, professional references. The deadline for submissions is Friday, 23rd August 2019.

MARKET REPORT www.bisxbahamas.com

(242) 323-2330

MONDAY, 12 AUGUST 2019

(242) 323-2320

ALL SHARE INDEX: CLOSE: 2,158.20 | CHG: 35.81 | %CHG: 1.69 | YTD: 48.75 | YTD%: 2.31 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 20.91 7.00 5.92 2.60 2.00 3.00 11.75 6.17 4.64 12.50 2.74 2.41 10.00 7.10 15.60 9.00 3.75 14.00

52WK LOW 3.50 19.17 4.90 4.02 1.00 0.19 2.00 9.17 6.13 3.54 8.53 2.35 1.75 7.51 6.10 11.25 6.20 3.01 13.00

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

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

1000.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

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

CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB

PREFERENCE SHARES

1.00 10.00 1.00

1.00 10.00 1.00

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

52WK HI 2.25 4.29 2.06 191.61 158.55 1.62 1.76 1.70 1.15 7.72 8.97 6.77 11.25 12.14 10.63 10.00 8.69 11.79

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

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

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

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

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

To advertise in The Tribune, contact 502-2394

MUTUAL FUNDS

MARKET TERMS

LAST CLOSE 4.19 17.43 6.00 5.92 2.46 1.80 2.18 11.05 6.16 4.03 9.02 2.82 2.40 10.28 7.00 15.45 9.00 3.30 14.00

CLOSE 4.19 17.43 6.00 5.92 2.46 1.80 2.18 11.05 6.16 4.30 9.02 2.83 2.40 10.33 7.00 15.45 9.00 3.30 14.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.27 0.00 0.01 0.00 0.05 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00

CLOSE 100.00

CHANGE 0.00

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

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

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

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

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

VOLUME

5,000

VOLUME

NAV 2.25 4.29 2.06 191.61 158.33 1.62 1.76 1.70 1.15 7.72 8.97 6.77 11.25 12.14 10.57 9.92 8.68 11.38

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

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

P/E 17.5 18.7 N/M 18.3 N/M N/M -5.0 15.6 12.8 23.4 14.4 27.7 5.1 N/M 11.5 20.8 9.6 16.3 22.2

YIELD 3.82% 7.23% 0.00% 4.22% 0.00% 1.11% 0.00% 6.52% 3.57% 2.79% 0.00% 2.40% 2.50% 3.18% 3.43% 3.50% 2.22% 3.64% 4.29%

0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.0 0.0 0.0 0.0 0.0 0.0 0.0

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

INTEREST Prime + 1.75%

MATURITY 19-Oct-2022

6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%

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

YTD%12 1.86% 1.25% 1.35% 3.85% 7.12% 1.57% 0.99% 1.32% 3.22% 3.25% 3.82% 2.59% 8.44% 3.87% 1.84% -0.71% 7.40% 10.20%

MTH% 3.97% 4.23% 2.73% 6.28% 2.08% 4.58% 4.25% 4.12% 5.64% 6.65% 8.36% 4.81% 0.78% 4.17% 2.29% 0.16% 2.70% 1.30%

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 | BENCHMARK 242-326-7333

NAV Date 30-Jun-2019 30-Jun-2019 28-Jun-2019 30-Jun-2019 30-Jun-2019 30-Apr-2019 30-Apr-2019 30-Apr-2019 30-Apr-2019 30-Jun-2019 30-Jun-2019 30-Jun-2019 30-Jun-2019 30-Jun-2019 30-Jun-2019 30-Mar-2019 30-Mar-2019 30-Mar-2019


PAGE 8, Tuesday, August 13, 2019

THE TRIBUNE

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

T

he Ranfurly Homes for Children has been a safe haven for thousands of Bahamian children since 1956. The Home provides a safe, structured environment for children who have been orphaned, abused, neglected or abandoned. YOU can make a difference in the lives of the children at Ranfurly. With your support children can have nutritious food, warm beds and a safe environment where they can discover the joy of being children. For years the children living and learning at Ranfurly have made great social and academic strides. Their further development requires additional support in the form of a Transitional Home, planned for construction on the Ranfurly property. This residence will cater to teenagers and young adults who are beyond school age, but need accommodation while they find work and gain independence from the Home. We look forward to your continued support in this worthwhile endeavour.

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

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

OPPORTUNITIES • • • •

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

BENEFITS

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

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

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