08282017 business

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MONDAY, AUGUST 28, 2017

$4.00 GOV’T GAINS $96M IN TAX CHEAT CRACKDOWN

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government netted almost $96 million in the first six months of its crackdown on corporate and high net worth tax cheats, it has been revealed.

Moody’s, in the ‘credit opinion’ that accompanied Friday’s decision not to downgrade the Bahamas’ rating to ‘junk’ status, said the initiative launched in November 2016 under the former Christie administration had generated additional tax revenues equivalent to 1.1 per cent of GDP (gross domestic product).

“On the revenue side, the Government will maintain various revenueenhancement measures that were introduced by the previous administration

Sum equal to 1.1% of GDP in six months DPM pledges to intensify ‘successful’ effort Chamber chief’s concern on tax fraud, VAT in the 2016-2017 first half,” Moody’s confirmed.

“The tax and Customs enforcement unit, which focused on property tax compliance and customs (air and sea freight) fees, is expected to contribute to a significant uplift in revenues. Through the first six months of this process, additional revenues collected by this unit were See PG B4

Chamber chief: Govt 10% spending slash ‘may harm economy’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Chamber of Commerce’s chairman yesterday warned the Bahamas faces “a credibility test”, and expressed fears the Government’s 10 per cent spending cut goal could “harm the economy”.

Michael Maura told Tribune Business this nation needed to prove to Moody’s that it made “the right call” in maintaining the Bahamas’ sovereign ‘investment grade’ rating by executing on the Minnis administration’s fiscal consolidation plan.

While praising the Government’s recentlyannounced fiscal austerity measures as “admirable”, Mr Maura suggested the targeted 10 per cent slash to its $2.67 billion recurrent expenditure Budget could be too deep.

See PG B4

Immediate cuts too deep, ‘not prudent’ Bahamas faces Moody’s ‘credibility test’

$4.29

$4.31

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Moody’s warning on $636m deficit

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Bahamas’ 20162017 fiscal deficit could rise as high as $636 million or 7 per cent of GDP, Moody’s has warned, due to the Christie administration’s pre-election spending binge.

The rating agency, in an August 25 ‘credit opinion’ that accompanied its decision not to downgrade the Bahamas’ to ‘junk’ status, suggested that the ‘red ink’ could amount to $136 million more than the Government’s own $500 million estimate - a difference equivalent to 1.5 percentage points of gross domestic product (GDP).

Moody’s estimate is almost double the former Christie administration’s own $350 million forecast, with the rating agency disclosing that the 20162017 deficit had been inflated by an accounting method switch.

The Deputy Prime Minister defended this move, telling Tribune Business: “The best policy is to be up front and honest.”

K P Turnquest said Moody’s decision to leave the Bahamas’ with

Rating agency forecast $136m higher than Govt As DPM defends deficit accounting method switch Move from cashbased to accrual ‘inflates’ red ink

Sir Franklyn argues ‘deficit never $500m’ Says Govt breached accounting principles ‘Overnight’ change violates ‘consistency’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

DPM PETER TURNQUEST an investment grade credit rating was vindication of the Minnis administration’s sudden switch to accrualbased accounting for the 2016-2017 fiscal year.

See PG B3

MOODY’S has proven that the Government’s 2016-2017 deficit was “never $500 million”, a well-known businessman yesterday arguing: “Let’s not keep beating that narrative.”

Sir Franklyn Wilson, the Sunshine Holdings SIR FRANKLYN WILSON chairman, told Tribune Business that the ratings agency had shown the Minnis administration had violated “a key principle of accounting” in arriving at that estimate.

An accountant by profession himself, Sir Franklyn said consistency in accounting methods was the norm if financial statements and other figures were to be properly compared.

See PG B4

Won’t ‘get another pass’ if no execution

MICHAEL MAURA

Govt’s 12 months to gain $100m savings

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas has 12-18 months to achieve the Government’s targeted $100 million austerity savings and other goals key to “turning around” Moody’s negative outlook on this nation.

K P Turnquest, the deputy prime minister, told Tribune Business that the Government, private sector and residents faced “hard work” and “sacrifice” in executing on the plans that persuaded the credit rating agency not to downgrade the Bahamas to ‘junk’ status.

Emphasising that the Minnis administration

‘Hard work’ to reverse negative outlook DPM: ‘Take our medicine in breathing space’ Fiscal Responsibility law ready by year-end was not yet celebrating, or resting on its laurels, after avoiding the loss of ‘investment grade’ status, Mr Turnquest said it was “unfortunate” that Moody’s had cut its outlook on this See PG B5

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PAGE 2, Monday, August 28, 2017

THE TRIBUNE

ENTREPRENEUR HOPES FUND ‘PAVES’ WAY FOR EXPANSION A BAHAMIAN entrepreneur hopes financing from a Bahamas Striping subsidiary will pave the way for expansion, saying: “When your business isn’t moving forward, then it’s dying.”

Khadaff Whyms launched his paving business with a single shovel, establishing K W Paving company as a 24-year-old in 2010, after years of working with his uncle.

Although his relative’s company eventually

folded, the now-31 year old entrepreneur has not only managed to keep his doors open but wants to grow his home-based business to real office space.

Assisting with the company’s growth and expansion is The Investment Group (TIG), a subsidiary of the Bahamas Striping Group of Companies (BSGC) K W Paving was one of three firms to sign a Memorandum of Understanding (MoU) with The Investment Group (TIG),

a $1 million fund designed to help facilitate small business growth in the Bahamas. It plans to distribute some $1 million among 10 to 15 firms.

Mr Whyms is hoping the economy will grow, releasing the grip it has held on small and medium-sized enterprise expansion in recent years.

“When I first started the only thing I had was a shovel,” the married father of one recalls. “Now I have a fleet of dump

trucks, excavators, backhoes, paving machines, heavy-duty rollers and everything else I would need to complete jobs. That took sacrifice.”

In the five years prior to launching K W Paving, Mr Whyms worked two jobs - a paver by day, and bartender/waiter at a Paradise Island resort at night.

He used income from the hotel job to cover his living expenses, while every dollar of paving revenue went to purchase the equipment necessary to go after better jobs.

“I had to focus in order to even stand a chance against other, more established companies who had been in the business for generations,” said Mr Whyms.

“Starting my business from the ground up has been hard. This is a big boys’ game; you have to be able to make sacrifices to get ahead. I’m not a quitter.

I was always prepared to go the extra mile.”

To build his client base, Mr Whyms priced jobs at a minimum just to get his foot in the door, and showcase his expertise. He says other keys to his success are having an eye for

detail; knowing how to speak to customers; and anticipating their needs.

The two latter attributes use skills honed during his time as a bartender and waiter.

“I’m hands on with every project from start to finish, whether it’s paving roads in Albany to repairing curbs in Bain Town,” said Mr Whyms. “You don’t get that kind of attention from bigger companies.”

K W Paving initially only offered road paving and sidewalks. The business has since expanded into trucking, heavy equipment, demolition, well drilling and trenching. It has grown every year.

The company now has a team of four, full-time employees. Its client mix is 40 per cent government jobs, via the Ministry of Works, and 60 per cent private contracts. That mix is essential to the success of the business. Although government provides a source of fairly large contracts, it processes payments slowly.

Private jobs keep the business running with a positive cash flow.

Pointing to the Government’s commitment to

creating a culture of entrepreneurship to grow the economy, Mr Whyms feels the time is right “to take things to the next level”.

Prime Minister Dr Hubert Minnis has said entrepreneurial empowerment will be a key focus for his administration, saying: “We see this as a means of tackling some of our long entrenched problems in our urban areas, such as unemployment, crime and social anomalies.

“Our economy needs small and medium enterprises to grow and become successful. More often than not, these are the companies that employ those who are marginalised and who may not fit into the conventional mainstream of employable skills.”

Mr Whyms said his longterm goal his goal is to establish an asphaltproducing plant. In the medium-term, he wants to secure jobs on the Family Islands and eventually pursue regional and international paving opportunities.

“At this point in time, we are ready,” he added. “I’m optimistic towards K W Paving’s future.”

SMALL business owner Khadaff Whyms, president of K W Paving, signs a Memorandum of Understanding (MoU) with The Investment Group (TIG), a new $1 million fund designed to help facilitate small business growth in the Bahamas.

THE TRIBUNE

Monday, August 28, 2017, PAGE 3

BAHAMAS ‘CLOSER THAN EVER’ ON PLANE REGISTRY

BAHAMAS JetBoat and Jimmy Buffet’s Margaritaville have teamed up to offer a new boat ride tour and restaurant experience for half a day for their customers. (Photo: Keen i Media Ltd)

JET BOAT PROVIDER TEAMS WITH EATERY A JET boat excursion provider has teamed up with Jimmy Buffet’s Margaritaville to offer a combination half-day tour and restaurant experience for customers.

The tour, dubbed the JetBoat Escape to Margaritaville, begins with a 45-minute to one-hour boat tour on Bahamas JetBoat and ends with a two-hour stop at the Paradise Island restaurant.

“We have had customers inquire about food options with the Bahamas Jet Boat tour,” said Bahamas JetBoat manager Davia Saunders.

“So we are extremely pleased to be able to cater to a wider audience — those who are looking for a half-day tour that has everything included — fun and excitement, food, drinks and a party.”

Bahamas JetBoat is a high-speed water ride that can be enjoyed by individuals and the family. The boat tours depart from Elizabeth on Bay Marketplace & Marina, and visits several spots along the northern shores of New Providence, Athol Island and Paradise Island.

Guests are dropped off at Jimmy Buffet’s

Moody’s warning on $636m deficit From pg B1 This switch away from the Government’s traditional cash-based accounting system resulted in the former Christie government’s pre-election spending commitments - for which funds have yet to be disbursed - being included in the 2016-2017 fiscal year calculations.

These commitments would traditionally have been accounted for in later years when the spending kicked in, but their inclusion in the 20162017 fiscal year helped to produce the dramatic upward deficit revisions by both Moody’s and the Government.

Moody’s cited the accounting switch to explain why the Minnis administration’s 2016-2017 deficit estimate was so radically different from its predecessor’s $350 million estimate.

And, with half of the $400 million in extra borrowing to cover that ‘red ink’ incurred during 2016-2017, Moody’s pegged the Government’s net borrowing for the current 2017-2018 fiscal year at $522 million or 5.6 per cent of GDP. “Upon taking office, the new administration announced a Budget deficit estimate for fiscal year 20162017 of around $500 million (5.5 per cent of GDP), significantly higher than the deficit target of $350 million expected by the outgoing administration, reflecting election-related spending that the PLP’s $350 million target did not recognise,” Moody’s said.

“However, subsequently, the new administration decided to incorporate expenditure items into the fiscal year 2016-2017 Budget that the former administration had committed to pay but for which payments had not yet been disbursed – some of which were related to reconstruction following Hurricane Matthew, while others were linked to further election spending commitments made by the previous administration.”

Moody’s continued: “This approach would be similar to accrual accounting and arrears, and would under our estimates take the deficit number closer to 7 per cent of GDP. “While half of the $400 million approved borrowings to cover the larger than expected deficit for fiscal year 2016-2017 was raised during that year, the balance together with the new borrowing needs would be raised in fiscal

year 2017-2018. The net borrowing to be undertaken for fiscal year 2017-2018 is $522 million or 5.6 per cent of GDP.” The latter figure includes both the outstanding $200 million to cover the previous year’s fiscal deficit, and the $322 million worth of ‘red ink’ projected in the 2017-2018 Budget. Moody’s will likely have obtained this information when it asked the Government to explain the discrepancies between its deficit projections and those of its predecessor, even though they came just two months apart.

This was a key factor in prompting Moody’s to place the Bahamas on review for a downgrade which could have cost this nation its ‘investment grade’ rating, and left it at ‘junk’ status with both the major international credit rating agencies.

However, Mr Turnquest defended the Minnis administration’s actions were essential to set out “the truth” and reality of the Bahamas’ stressed fiscal position - both for the Bahamian people and the rating agencies.

He argued that this could only be done by incorporating the Christie administration’s election spending commitments into 2016-2017, when they were incurred, and said the Government’s decision had been rewarded by escaping a potential downgrade.

“When we did our Budget presentation, we would have been aware of [spending] commitments that were past due or imminent. We made a forecast with those things in mind,” Mr Turnquest told Tribune Business.

“The fact we’ve been able to maintain the rating would probably say we did the right thing in being up front and honest with the Bahamian people in the first instance, and the rating agencies in the second instance.

“There’s no point in trying to hide the truth from the public,” Mr Turnquest, who is also Minister of Finance, continued. “The best policy is to be up front and honest.

“Despite what they say about us talking down the economy, this is being honest, frank and up front in addressing the problem.

We have been very frank with Moody’s, and they have agreed with us, in the main, that we are on track in terms of how to address the issues.”

Margaritaville, and transportation is provided back to Bahamas JetBoat after lunch.

“This combination of an exciting JetBoat ride and a fun poolside lunch at Margaritaville is the kind of thing that our visitors and local guests want for an unforgettable three hours,” Mrs Saunders said. “The JetBoat Escape to Margaritaville tour gives a customer everything they need to have an amazing time.”

Tours can be booked online and more information is available at the company’s web site at bahamasjetboat.com.

The Deputy Prime Minister added that the Bahamas’ national accounts, due to be released within the next week or so, “will bear witness to what we have to say”.

Stating that these would provide “an accurate picture” of the Bahamas’ economic and fiscal reality, Mr Turnquest added: “If I’m wrong, at some point you can ask me these questions again.”

The Deputy Prime Minister, in his June 7 Budget presentation, said the Minnis administration had inherited a $292 million payments ‘backlog’ at the Public Treasury. This included some $161.283 million in approved payment requests, which were awaiting funding, and another $130.780 million in spending commitments for which no funding sources had been identified.

Moody’s ‘credit opinion’, though, is likely to trigger another political ‘back and forth’ over the true size of the 2016-2017 deficit and the Government’s financial affairs in general. It also explains why the Central Bank pegged the 10-month deficit through April 2017 at $284.7 million - well short of the administration’s forecast - because it was using the cash-based accounting system.

The Opposition is likely to argue that the accounting method switch was intended to pin the blame for the Bahamas’ fiscal woes squarely on the former Christie administration, which was on target to hit its $350 million postHurricane Matthew deficit target.

It will also probably claim that in announcing a $500 million deficit, the Government created an unnecessary panic and brought the Moody’s downgrade review upon both itself and the country.

Mr Turnquest acknowledged: “I would do the same thing if I were them, but the facts are the facts.”

He and the Minnis administration are likely to further counter that the Government should have switched at an accrual-based accounting system years ago, and that they are now providing the Bahamas and world with this country’s true fiscal position.

Moody’s research note ultimately underscores that the Bahamas desperately needs to shift to an accrual-based method, and modern, transparent methods for managing the public finances. Doing so would also end the finger-pointing every five years when a new administration accuses its predecessor of leaving it with unpaid, previously unknown bills.

THE Bahamas now only needs to sign a global treaty to unlock the “immeasurable long-term economic benefits” of an international aircraft registry, an aviation attorney believes.

“The Bahamas is closer than ever to the establishment of the long sought-after Bahamas International Aircraft Registry,” said Llewellyn Boyer-Cartwright, a partner at the Callenders & Co law firm.

“Last year, the Government passed the Civil Aviation Act, creating for the first time an independent Civil Aviation Authority (BCAA), separating regulation from operations oversight. Now we merely have to sign the Cape Town Convention, which will provide the legal framework to govern and protect the rights of creditors and debtors over airframes, aircraft engines and helicopters (known as ‘aircraft objects’) whether they are leased or mortgaged.”

Mr Boyer-Cartwright, a member of the Air Transport Advisory Board, has been at the forefront of the latest push for an international aircraft registry, which was first proposed by the Bahamas Financial Services Board (BFSB) in the previous century.

The BFSB presented the Government with an aircraft registry study it commissioned as early as 1999. Subsequent research was conducted in 2015-2016, which was to be presented to Cabinet for approval.

However, while the Bahamas has been in the planning stages for nearly 20 years, other jurisdictions have again leapfrogged ahead of it by launching their own registries.

Mr Boyer-Cartwright said Isle of Man began developing its aircraft registry in 2005, finally launching in May, 2007.

He added that within the first two days, it registered 25 per cent of its projected target of 12 aircraft for the first year.

“By the end of the first year they had registered 51 aircraft, four times what they had projected, and another 76 were added the next year,” Mr Boyer-Cartwright said. “Every year since, they have added another 100 aircraft. By the end of 2017, they expect to have their 1,000th registered aircraft.”

Isle of Man is now the sixth largest business aircraft registry in the world, tapping into the same market Mr Boyer-Cartwright thinks the Bahamas can capture. Guernsey, for example, registered $379 million’ worth of aircraft in its first year.

Three more jurisdictions opened global registries after Isle of Man – San Marino, Guernsey and Jersey. And two other major competitors in financial services, Bermuda

LLEWELLYN BOYER-CARTWRIGHT, Callenders & Co partner and a former commercial pilot and Cayman, have well-established and sophisticated registries. In November 2015, the Cape Town Convention was extended to the Cayman Islands and has further enhanced the territory as one of the world’s leading aircraft registries.

Mr Boyer-Cartwright said a Bahamian aircraft registry would provide another ‘value-added’ service to this nation’s high net worth financial services clients, many of whom own planes.

“It is not the fees that make a registry so valuable,” he said. “An international aircraft registry can only further enhance our financial services portfolio, and would allow someone who wants all of their assets to be managed or administered in one jurisdiction to do so in the Bahamas.

“Our competitors, particularly, Cayman and Bermuda, understand this, have enjoyed a sharpened competitive edge against the Bahamas, and have experienced tremendous growth as a result of being able to provide the full range of high level services a high net worth individual requires.”

A Bahamian registry can also generate more entrepreneurial opportunities. “The sky is literally the limit as to what a registry could unleash economically,” said Mr Boyer-Cartwright.

“You could create a business jet hub, making it ideal for leasing and financing.

An international aircraft registry ticks all the boxes, it can only improve our already competitive financial services industry. I remain ever committed to see this come to fruition.”

PAGE 4, Monday, August 28, 2017

Sir Franklyn argues ‘deficit never $500m’ From pg B1 He argued, after being shown Moody’s August 25 ‘credit opinion’ on the Bahamas, that the Government had been less than transparent when it “changed overnight” to accrual-based accounting for the 2016-2017 fiscal year.

“I believe this Moody’s report demonstrates so clearly how this country would benefit if we could get past partisan politics,” Sir Franklyn told Tribune Business. “If we can get past partisan political stuff,

and focus on truth in this country, we agree on so much.

“In this report, for example, it clearly establishes that based on a consistent accounting, with consistent accounting principles, the deficit was not $500 million. Based on consistent accounting principles, it was not.”

The FOCOL and Arawak Homes chairman was speaking out after Moody’s ‘credit opinion’ revealed that the Minnis administration adopted accrual-based accounting methods in respect of the 2016-2017

Gov’t gains $96m in tax cheat crackdown From pg B1 $95.5 million (1.1 per cent of GDP).”

The Deputy Prime Minister hailed the crackdown’s success, and pledged that the Minnis administration would further intensify its efforts to go after businesses and high-end property owners deemed not to be paying their fair share in taxes.

Describing the initiative as “very successful”, K P Turnquest told Tribune Business: “We will look to further enhance and strengthen it to make sure we collect the taxes due to government, without adding new taxes or placing any undue burden on taxpayers.”

The crackdown’s success will likely raise questions as to why the Government is moving Simon Wilson from his post as the Ministry of Finance’s financial secretary, given that he was largely seen as the architect and driver of the effort to target tax cheats.

Tribune Business sources have suggested that Mr Wilson is being moved to the Central Bank of the Bahamas as an economic adviser, a decision that is being questioned by some in the business and financial community who respected his ability to take decisions.

This newspaper had heard suggestions back in April, during the election campaign, that the Free National Movement (FNM) planned to remove Mr Wilson from his post if elected, and replace him with former Bahamas Telecommunications Company (BTC) marketing executive, Marlon Johnson.

Such talk never completely went away, and this newspaper’s contacts confirmed late last week that the Government had made its move with regard to Mr Wilson, who has served both PLP and FNM administrations in senior posts including the Ministry of Finance’s director of economic planning, deputy

Chamber chief: Govt 10% spending slash ‘may harm economy’ From pg B1 Speaking in his individual capacity as Chamber chairman, he suggested that achieving this target in one year “may not be prudent”, and that it will have to be a longer-term goal to prevent any dislocation or economic shocks arising from public sector lay-offs and reduced government spending.

“I believe that Moody’s made the right call by leaving the rating at ‘Baa3’, and I think the Government must now prove to Moody’s and others that leaving the Bahamas at ‘Baa3’ was the right call. We have a credibility test here,” Mr Maura told Tribune Business.

“During Moody’s next visit the credit rating agency will be looking for real brick and mortar evidence that improvements have been made in areas like energy. It is unlikely that they will provide us with another pass.”

In electing not to downgrade the Bahamas to so-called ‘junk’ status, Moody’s has effectively given this country 12-18 months of ‘breathing space’ to assess whether it can deliver on the promised cost savings and fiscal consolidation plans.

In the aftermath of Moody’s visit, Prime Minister Dr Hubert Minnis announced a variety of austerity measures, chief among them a public sector hiring freeze and the 10 per cent cut in budgeted recurrent spending for 2017-2018. It has also released a number of workers on short-term contracts once these expire.

Noting that Moody’s had suggested the Government’s plans “have the potential to stabilise the debt if successfully implemented”, Mr Maura expressed concern that the 10 per cent target could be too deep, too quickly.

“I believe that while the objective to reduce Government expenses by 10 per cent is in itself admirable and necessary, the blanket approach may not be prudent and could in fact harm our economy,” he told Tribune Business.

“I suspect that the objective for an overall 10 per cent reduction may, in fact,

need to be a longer term initiative which will likely include structural changes to the civil service, the outsourcing of key services better performed by the private sector, the shift to PPP (public-private partnerships) with energy and other utilities, and the general review of expenses.

“Today, cutting 10 per cent from each Ministry may not be possible without significantly impacting a service, critical function or maintaining a subsidy to the vulnerable who will be forced to find the support in another means.”

However, Mr Maura threw his full support behind the Government’s planned hiring freeze. “I support the hiring freeze 1,000 per cent,” he said.

“I have heard from too many civil servants that speak to the number of persons in the civil service that offer no material value to the department they are assigned to. Government may also consider not renewing contracts for civil service pensioners in an effort to make room to new Bahamian talent.”

The latter move is something the Government also appears to be taking, having announced last week that it was preparing to release some 126 pensioners who had been re-hired at senior positions in the civil service.

Mr Maura said fiscal consolidation also needed to be balanced by higher economic growth rates “now”, and he called for the Government to exit the management and ownership of businesses and industries via privatisation/

THE TRIBUNE fiscal year, which elevated the Budget deficit to $500 million (see lead article on Page 1B).

This represented a switch away from the Government’s traditional cash-based accounting system, and had the effect of ensuring that the former Christie administration’s multi-million dollar pre-election spending commitments were captured when they were made - in 2016-2017.

Many observers will argue that Minnis administration was correct in accounting for these liabilities when they were incurred, and that the Government should have switched to accrual-based accounting

full-time decades ago to properly manage the Bahamas’ fiscal affairs.

However, Sir Franklyn countered that the Government could not arbitrarily change its accounting methods to suit its agenda, arguing that this was against best accounting principles.

“Let’s not keep beating that narrative about $500 million,” he told Tribune Business. “What Moody’s underscores is the deficit was not $500 million using a consistent basis of accounting.

“That [accrual-based accounting] ain’t the way the system works. That ain’t right. Cash-based accounting is the way it’s always been done. A principle in

accounting is consistency. If you’re going to be consistent, you have to do it on the same basis.

“The only way to get to $500 million is to change the basis of accounting. If you do that, you have to do it with a much higher degree of consistency other than for Government to decide to change it overnight. You’ve got to be highly transparent about it, and that didn’t happen.”

K P Turnquest, deputy prime minister and minister of finance, argued that the Government’s decision to account for the Christie administration’s spending commitments when they were made had been vindicated by Moody’s decision

not to downgrade the Bahamas’ sovereign credit rating to so-called ‘junk’ status.

He said the Bahamas had been given credit

by Moody’s for its transparency in divulging its true fiscal reality, but Sir Franklyn suggested that the “highly partisan political speech” he gave in late May when unveiling the Budget had sparked the rating agency’s review and threatened downgrade.

“Our cupboard is not bare, and their report points to the fact the cupboard is not bare,” Sir Franklyn told Tribune Business. “Let’s stop talking down the economy. The cupboard is not bare.”

financial secretary and financial secretary.

The $96 million referred to by Moody’s is for the six months to end-April 2017, meaning it is extra revenue collected under the former Christie administration.

That sum is likely to have increased further under the Minnis administration.

Michael Maura, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chairman, yesterday described the tax cheat crackdown as “absolutely necessary”, and urged the Government to complete the Customs Electronic Single Window (ESW) project by March 2018.

“With regard to tax enforcement, yes, this is absolutely necessary and must continue,” he told Tribune Business. “The border, as an example, continues to be plagued by fraud and illegal activity. Here is an area that requires investment if it is to return greater tax income.

“The Government must ensure that the ESW Electronic Single Window project is completed within six months. This ESW

system will significantly improve the risk analysis and fraud detection capability of Bahamas Customs.

This project was to be completed by October 2017, but has been delayed to March 2018.

“The ESW system will not only serve to address fraudulent under-valued import declarations, but also serve to identify potential smugglers of contraband to include illegal drugs and weapons,” added Mr Maura, speaking also in his capacity as Nassau Container Port chief executive.

“The border is also in need of modern container and cargo scanning technology, and a container examinations facility. This will directly assist Customs and law enforcement in screening import and exports while the cargo and containers are still in the port. This will result in greater efficiency to the legitimate trading community,` as they will experience less physical intrusion and delay in their supply chain process.”

Mr Maura also expressed concern that the Bahamas’ Value-Added Tax (VAT) was “not in

line with international best practices”, with the tax’s ‘rules’ not finalised and its application at the border “convoluted”.

“With respect to tax administration, I am concerned that the VAT rules have not been finalised and, in some instances, are not in line with international best practices,” he said.

“My worry is that our current fiscal state has resulted in a current VAT application which is not in line with best practices.

Too many VAT registrants complain of VAT refunds that are over a year old.

And, specific to the port, the application of VAT is convoluted and not in line with best practices.”

The tax crackdown was unveiled in the wake of Hurricane Matthew, which increased the Government’s desperation for every cent of revenue due to it as a result of the fiscal and economic losses created by the Category Three/Four storm.

It has focused on ValueAdded Tax, Business License fees, Customs/ import duties and real property taxes. The Government has been able

to compare the regular VAT filings with Business License fee submissions to detect companies who are under-reporting or evading the full sum due with the latter.

In unveiling its crackdown, the Ministry of Finance said it was targeting the 600 businesses “with the largest apparent discrepancies” between their Business License payments and Value-Added Tax (VAT) filings.

Noting that these represented 5 per cent of all licensed Bahamasbased businesses, the Ministry of Finance also issued demands for extra real property tax payments to 5,000 homeowners in wealthy and upper middle class communities thought to not be “paying their fair share of taxes”.

The Ministry of Finance said then that the compliance/enforcement drive was designed to “level the playing field” for tax compliant businesses, thereby upholding the fairness and equity of the tax system while eliminating any competitive advantage gained by tax delinquents.

outsourcing as a way to boost the balance of payments and local capital markets.

Disclosing that the Government had committed to quarterly fiscal review meetings with the Chamber, with the first set to be held in October, he added: “We expect that these meetings will serve to support responsible fiscal management by the Government and, when appropriate, to hold the Government to its fiscal policy commitments.”

He added that the Chamber was represented on both the Government’s National Economic Advisory Committee and Ease of Doing Business Committee, which have been charged with finding economic growth opportunities and removing obstacles to them.

“As for the mention of deficits attributable to hurricanes, I find little comfort here as we do not have a Government insurance plan to mitigate future financial devastation,” Mr Maura said.

“The Federal Emergency Management Agency (FEMA) has a National Flood Insurance Programme in the United States, which provides coverage to millions of households in flood prone areas.

“We must also make it clear that individuals that either choose to live in low lying areas, close to the sea and choose to forgo insurance are going it alone.

We cannot keep rebuilding homes for free; we simply can’t afford it.

Mr Maura’s “credibility test” concerns were also echoed by Organisation for Responsible Governance (ORG) principal, Robert Myers, who said Moody’s decision to change the Bahamas’ outlook from

‘stable’ to ‘negative’ was “a clear warning” of its scepticism over this nation’s ability to escape its “socioeconomic quagmire”.

While agreeing that the rating agency’s decision to hold-off on a further downgrade likely reflected the Minnis administration’s frankness and plans, Mr Myers told Tribune Business: ““Moody’s outlook change from stable to negative is a definitive and clear warning that they recognise the difficulty that the Government and the nation faces in lifting itself out of the socioeconomic quagmire.”

He described the Bahamas’ problems as “very menacing”, having built

up under successive governments, and reiterated ORG’s prior call for improved governance and education reform.

“A properly educated populous will undoubtedly improve productivity, create greater GDP and improve wage growth. Individual industries and unions must take responsibility and an active role in making this happen,” Mr Myers added.

“Bahamians must understand and accept that the above stated changes are not an option but rather an imperative reality. The failure to act is no doubt a stark reality, and would in itself be a failure on the part of the people and those they elected to govern.

“There is no doubt that the Bahamas is at a pivotal time, and that its future is dependent on a shift in the mentality and culture of its people and governance.

Many countries around the world have suffered similar challenges,” he continued.

“New Zealand and Singapore are good examples of small nations who made the positive shift and are now amongst the most successful nations in the world.

These two countries offer remarkable examples of what is possible when a people, its leadership and the government accept their weaknesses and work together to fix them once and for all.”

Share your news The Tribune wants to hear from people who are making news in their neighbourhoods.

Perhaps you are raising funds for a good cause, campaigning for improvements in the area or have won an award. If so, call us on 322-1986 and share your story.

THE TRIBUNE

Monday, August 28, 2017, PAGE 5

Govt’s 12 months to gain $100m savings the budgeted $2.67 billion recurrent expenditure. nation from ‘stable’ to Acknowledging that ‘negative’. these measures would Still, the rating agency’s reduce the Government’s actions on Friday have role in the economy, Mr effectively given the Gov- Turnquest said: “We recernment ‘breathing space’ ognise that as a result of to execute on its fiscal con- the fiscal constraints we solidation plans, and show had to put in place there it is serious and can deliver will be some effects of that, on promises to turn around in terms of spending and $300 million-plus annual activity from the Governdeficits and a national debt ment side, but if we are that now exceeds $7 billion. to get this situation under “That’s exactly how I control there will be negaread it, which is fair,” Mr tive consequences.

“If we get it right, take Turnquest, who is also the minister of finance, con- our medicine today, we will firmed to Tribune Business. be on a more positive path “We will have to work hard next year and the year after. to turn around the outlook. They’ve [Moody’s] given “We have come through us the breathing space we a very challenging period, need to demonstrate we’re and there are still some serious about our plan and headwinds that we face. to get it done.”

Moody’s, in the ‘credit We have outlined plans to address it, and we now opinion’ that accompanied have to do what we say Friday’s rating action, said we’re going to do and make the Government was seeking $100 million worth of it happen.”

He added that the Gov- cost savings on its budgeted ernment viewed Moody’s spending for the 2017-2018 decision to maintain the fiscal year.

Bahamas’ current ‘Baa3’ “Over the past two bond and issuer rating “as an endorsement of the months, the Bahamian approach we are taking to authorities announced a this situation”, with auster- series of measures to reduce ity measures that include a the deficit,” it said. “On the public sector hiring freeze expenditure side, the Govand a 10 per cent cut to ernment is targeting $100

From pg B1

million (1.1 per cent of GDP) in savings during fiscal year 2017-2018, in part to be achieved by a 10 per cent cut in ministries’ spending and a hiring freeze.”

The $100 million target is some way short of the $267 million that represents 10 per cent of the $2.67 billion recurrent budget, but Mr Turnquest expressed confidence the Government will hit its fiscal goals.

The Minnis administration’s austerity measures were announced in the same week as Moody’s visited the Bahamas, but the Deputy Prime Minister denied that these were promised to induce the rating agency not to follow through with the threatened downgrade.

“You would have taken from our Budget communication that we intended to engage in a serious review of all expenditure, and that we would do our best to rein in expenditure, never mind the Budget levels, to try and bring in a fiscal deficit much lower than projected,” Mr Turnquest told Tribune Business.

He added that the 20172018 Budget was largely inherited from the Christie administration, and added: “It created some things we could not change, but also some areas where we believed we could make some improvements.

“The 10 per cent acrossthe-board is a recognition that we believe there is some fat in the expenditure we can take advantage of.

We want to be very aggressive on that. I believe we’ve identified some significant savings, and it’s a matter of execution.

“Everyone recognises they have to tighten their belts a bit more and better times are ahead of us, but to get there we all have to recognise we have to make sacrifices. We do expect to achieve that 10 per cent, and are being very aggressive about our expenditure.”

Mr Turnquest told Tribune Business that the Government expected to produce “robust” Fiscal Responsibility legislation, which would target that attaining of an annual GFS balanced budget deficit to stabilise the Bahamas’ debt ratios, by year-end.

He added that it was working with the International Monetary Fund (IMF) to develop the legislation, but the process had not yet reached the stage where drafts could be issued for consultation locally.

“We are well on our way in respect of that,” the Deputy Prime Minister said of Fiscal Responsibility legislation, “and we expect to have a robust piece of legislation before the end of the year.”

A GFS balanced budget would strip out debt principal repayments, but ensure the Government is not adding any new money to the $7 billion-plus national debt.

The Government’s 20172018 Budget targets a $323 million GFS deficit, equivalent to 3.5 per cent of GDP, but Moody’s believes the Minnis administration can slash this to 2.8 per cent.

“Despite the significant deterioration in the Government’s fiscal strength

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stemming from the large size of the 2016-17 deficit, it is important to note that the widening of the deficit was mainly caused by oneoffs (impact of hurricane and election spending),” Moody’s said.

“Consequently, while the drop from a deficit of 7 per cent of GDP in fiscal year 2016-2017 to 2.3 per cent in FY2017-2018 (as expected by the Government) may appear steep, the actual adjustment on the expenditure side will be done from a ‘lower’ starting point.

“We estimate the fiscal deficit will therefore narrow this year to a more conservative 2.8 per cent of GDP. We further forecast that the primary balance will return to surplus some time in 2018-2019.” The latter measure is calculated by measuring the Government’s revenues against recurrent spending, minus interest payments on its debt.

Mr Turnquest said Moody’s ‘negative’ outlook on the Bahamas recognised “the short-term risks” created by the Bahamas’ austerity measure and cut backs, but he argued that this nation’s fiscal woes would only mount if it continues to ‘kick the can down the road’.

“By the same token, they recognise that being disciplined and staying the course is essential to recognise the results we expect and really need to get the country back on track,” Mr Turnquest told Tribune Business.

“No matter what breathing room we have, if we don’t fix the structural problems we have, they will only grow worse. We don’t live in a bubble, and to get our situation fixed we will all have to take a sacrifice.”

Mr Turnquest, though, expressed hope that Moody’s decision to maintain the Bahamas’ investment grade rating would boost investor, private sector and consumer confidence, thereby spurring economic growth.

“It’s critical for us to maintain the rating; everything hinges on that in terms of ability to borrow at reasonable rates and access to capital,” he said.

“It affects a number of non-government ratings and credit issues.

“This will also only give that much more confidence for investors, local and international, that this is a place to do business, and that the Commonwealth of the Bahamas has a good plan to stabilise and grow the economy.”

Moody’s made clear on Friday that it had, for the moment, decided to hold off on following Standard & Poor’s (S&P) in downgrading the Bahamas to ‘junk’ status based on a combination of factors.

These included the Government’s fiscal consolidation plan; prospects for higher economic growth via Baha Mar; upward revisions to the Bahamas’ GDP numbers; and a favourable debt profile, with much of the Government’s bonds held by Bahamian investors and institutions. The debt’s profile is also favourably spread out.

However, in a warning of what will happen if the Bahamas fails to execute, Moody’s said: “Moody’s would downgrade the rating if over the next 12-18 months we observe that fiscal consolidation efforts are unlikely to reduce deficits to levels that would reverse the trend of rising debt ratios and lead to a stabilisation of government debt metrics.

“Downward ratings pressure would also emerge if economic growth were to underperform relative to government expectations, negatively impacting revenues and overall fiscal metrics.

“We would also consider a downgrade if contingent liabilities stemming from Bank of the Bahamas – or other state-owned enterprises – materialise on to the sovereign’s balance sheet, leading to a material worsening of government debt metrics.”

PAGE 6, Monday, August 28, 2017

THE TRIBUNE

Stocks climb; S&P 500 on pace to snap twoweek losing streak

By STAN CHOE Associated Press NEW YORK (AP) — U.S. stocks ticked higher on Friday, and the Standard & Poor’s 500 index was on pace for its first winning week in the last three.

It’s been a relatively quiet week so far, with a calendar light on marketmoving events and fewer shares trading hands than is typical. Investors had been waiting to hear from the heads of two of the world’s most influential central banks, who are speaking at a symposium today, though many analysts expect minimal reaction from the market.

The Standard & Poor’s 500 index didn’t move much after Federal Reserve Chair Janet Yellen began her speech in the morning, though the dollar’s value dipped against other currencies.

KEEPING SCORE: The S&P 500 was up 9 points, or 0.4 percent, to 2,447, as of noon Eastern time. The

gains were widespread, and all 11 sectors that make up the index moved higher.

The Dow Jones industrial average rose 73 points, or 0.3 percent, to 21,857, the Nasdaq composite slipped 4, or 0.1 percent, to 6,274 and the Russell 2000 index of small-cap stocks rose 4 points, or 0.4 percent, to 1,378.

CENTRAL BANK WATCH: Economists and central bankers from around the world have gathered in Wyoming for a symposium that has previously been the source of fireworks for markets. Central banks have used the forum to signal big changes in policy, but most economists are expecting no big surprises this year.

Up first was the Fed’s Yellen. In her speech, which began at 10 a.m.

Eastern time, she focused on regulation of the financial industry and gave no indication of changes to interest-rate policy.

The European Central Bank’s head, Mario Draghi,

will speak at 3 p.m. Eastern time. Europe’s economy has been improving, and investors are waiting to hear if Draghi will give any hint about when his central bank may turn the spigot on its stimulus.

IN THE DRIVER’S SEAT: Autodesk, which makes design software, jumped to one of the biggest gains in the S&P 500 after reporting stronger revenue and a milder loss for the latest quarter than analysts expected. It rose $4.22, or 3.8 percent, to $114.83.

MARKETS OVERSEAS: Japan’s Nikkei 225 index picked up 0.5 percent, the Hang Seng in Hong Kong jumped 1.2 percent and South Korea’s Kospi edged up by 0.1 percent. European markets were mixed. The CAC 40 in France fell 0.1 percent, the German DAX was close to flat and the FTSE 100 in London rose 0.1 percent.

MEANDERING WAYS: The stock market has been winding up and down since the S&P 500 set a record earlier this month.

Stronger-than-expected

THE NEW York Stock Exchange. Stocks are opening higher, Friday, Aug. 25, 2017, with technology companies, banks and industrial companies making some of the largest gains. (AP Photo/Mark Lennihan, File) earnings reports from big U.S. companies have helped to support the market, while worries about politics have intermittently chipped away at confidence.

The S&P 500 is on pace for a 0.8 percent rise this week, following losses of 0.6 percent and 1.4 percent the last two weeks.

President Donald Trump plans to make a push next week to overhaul the tax system, with a stop in Springfield, Missouri. Tax reform was one of the big pro-business policies that investors were banking on early this year after

Republicans swept control of Washington, though expectations have dimmed in recent months.

YIELDS: The yield on the 10-year Treasury fell to 2.17 percent from 2.20 percent late Thursday. The two-year yield held steady at 1.33 percent, and the 30-year yield slipped to 2.76 percent from 2.77 percent.

CURRENCIES: The dollar slipped to 109.26 Japanese yen from 109.51 yen late Thursday. The euro rose to $1.1874 from $1.1806, and the British pound rose to $1.2876 from $1.2802.

COMMODITIES: Benchmark U.S. crude added 44 cents to settle at $47.87 per barrel. Brent crude, the international standard, gained 37 cents to $52.41 per barrel.

Wholesale gasoline was little changed at $1.66 per gallon, heating oil was virtually unchanged at $1.62 per gallon and natural gas fell 6 cents to $2.89 per 1,000 cubic feet.

Gold rose $5.90 to $1,297.90 per ounce, silver rose 9 cents to $17.05 per ounce and copper was little changed at $3.03 per pound.

Authorities say Apple shuts down Iranian apps

By AMIR VAHDAT Associated Press

TEHRAN, Iran (AP) — Apple Inc. has removed all Iranian mobile apps from its App Store, authorities said Friday.

Ali Maleki, who works for Iran’s biggest e-commerce site Digikala, said the apps were shut down around 10 days ago. He said Digikala’s app was removed “based on the new type of sanctions which were imposed against Iran.”

In reaction to Apple’s decision, Telecommunication Minister Mohammad Javad Azari Jahromi said

Apple should respect its Iranian consumers.

Apple, based in Cupertino, California, did not immediately respond to a request for comment.

Jahromi tweeted: “11% of Iran’s mobile phone market share is owned by Apple. Giving respect to consumer rights is a principle today which Apple has not followed. We will follow up the cutting of the apps legally.”

The move comes two years after the historic nuclear deal between Iran and world powers, in which Iran accepted curbs on its contested nuclear program

MARKET REPORT FRIDAY, 25 AUGUST 2017

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

BISX ALL SHARE INDEX: CLOSE 1,834.23 | CHG -0.10 | %CHG -0.01 | YTD -103.98 | YTD% -5.36 BISX LISTED & TRADED SECURITIES 52WK HI 4.38 19.17 9.09 3.70 2.41 0.13 6.47 8.60 6.30 10.60 14.49 2.52 1.60 6.00 10.00 11.00 10.10 7.25 12.51 11.00

52WK LOW 4.05 17.43 8.19 3.50 1.39 0.12 3.80 8.40 5.83 9.46 10.00 2.18 1.50 5.80 8.75 7.01 8.10 6.60 11.93 10.00

1000.00 1000.00 1000.00 1000.00

900.00 1000.00 1000.00 1000.00

PREFERENCE SHARES

1.00 106.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 105.00 100.00 100.00 10.00 1.01

SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Famguard Fidelity Bank Finco Focol ICD Utilities J. S. Johnson Premier Real Estate Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00 100.00

52WK LOW 100.00 100.00 100.00

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS FAM FBB FIN FCL ICD JSJ PRE CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

SECURITY Fidelity Bank Note 17 (Series A) + Fidelity Bank Note 18 (Series E) + Fidelity Bank Note 22 (Series B) +

SYMBOL FBB17 FBB18 FBB22

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

BAH29 BG0103 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407

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

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

MUTUAL FUNDS 52WK HI 2.07 3.95 1.96 170.77 146.34 1.50 1.67 1.58 1.10 6.99 8.54 6.15 10.52 11.46 10.46

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.44 1.63 1.55 1.04 6.41 7.62 5.66 8.65 10.54 9.57

LAST CLOSE 4.28 17.43 9.09 3.70 1.47 0.12 3.92 8.60 6.10 9.98 10.01 2.47 1.55 6.00 9.75 7.01 9.75 7.01 12.50 10.00 1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.01 LAST SALE 100.00 100.00 100.00 108.45 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

CLOSE 4.28 17.43 9.09 3.70 1.47 0.12 3.92 8.60 6.10 9.98 10.01 2.36 1.55 6.00 9.75 7.01 9.75 7.01 12.50 10.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.11 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.01

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

CLOSE 100.00 100.00 100.00

CHANGE 0.00 0.00 0.00

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

0.17 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

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

VOLUME

10,000

725

VOLUME

NAV 2.07 3.95 1.96 174.30 146.25 1.50 1.63 1.58 1.08 6.92 8.03 6.15 10.52 11.46 10.01

EPS$ 0.467 0.932 -0.230 0.540 -0.340 0.000 -0.857 0.574 0.681 0.540 0.559 0.102 0.455 1.212 0.768 0.575 0.929 -0.602 0.697 0.000

DIV$ 0.080 1.000 0.000 0.210 0.000 0.000 0.000 0.300 0.220 0.360 0.570 0.060 0.060 0.290 0.450 0.000 0.340 0.140 0.620 0.000

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

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

P/E 9.2 18.7 N/M 6.9 N/M N/M -4.6 15.0 9.0 18.5 17.9 23.1 3.4 5.0 12.7 12.2 10.5 -11.6 17.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

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

INTEREST 7.00% 6.00% Prime + 1.75%

MATURITY 19-Oct-2017 31-May-2018 19-Oct-2022

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

20-Nov-2029 15-Dec-2017 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022

YTD% 12 MTH% 2.34% 4.55% 0.90% 1.64% 1.21% 2.55% 3.48% 4.01% 3.17% 7.00% 2.15% 4.22% -1.93% -1.89% 0.81% 2.21% 2.28% 1.30% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69%

NAV Date 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 31-May-2017 30-May-2017 30-May-2017 30-May-2017 30-May-2017 30-May-2017

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

YIELD 1.87% 5.74% 0.00% 5.68% 0.00% 0.00% 0.00% 3.49% 3.61% 3.61% 5.69% 2.54% 3.87% 4.83% 4.62% 0.00% 3.49% 2.00% 4.96% 0.00%

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

in return for lifting sanctions.

U.S. legislation passed earlier this month imposed mandatory penalties on people involved in Iran’s ballistic missile program and anyone who does business with them.

Apple does not officially do business in Iran or any other Gulf countries, but many Iranians purchase its products from stores inside Iran.

Many Iranians using social media criticized the Apple decision and have created #StopRemovingIranianApps to show their anger over the move.

Twitter user Mohammad Rasul who is a tech enthusiast tweeted: “All

the apps deleted from the App Store, does not have any relation to Iranian government! US Sanctions targeting people.”

Jamal Abdi, policy director of the National Iranian American Council based in Washington, said in a statement that Apple’s move has the effect of punishing the Iranian people, not Iran’s government.

“We trust that Apple shares our interest in encouraging young Iranian tech entrepreneurs and promoting internet freedom around the world,” he said. “We hope they will respond and look forward to discussing these matters with them.”

CALL 502-2394 TO ADVERTISE TODAY! PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, NATASHA JEUNESGENS of New Providence, Bahamas intend to change my child’s name from PRINCETON LOGAN JEUNESGENS to PRINCETON LOGAN YOUNG. If there are any objections to this change of name by Deed Poll, you may write such objections to the Deputy Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, DEVINE SKYLAR LIGHTBOURNE of #3 Paradise Lane, Freeport, Bahamas, intend to change my name to DEVINE SKYLAR MCINTOSH. If there are any objections to this change of name by Deed Poll, you may write such objections to the Deputy Chief Passport Officer, P.O.Box F-43536, Grand Bahama, no later than thirty (30) days after the date of publication of this notice.

NOTICE

NOTICE is hereby given that NANOTTE SAINT-ANGE of

#15 Churchill Lane, South Bahamia, Freeport, Grand Bahama,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 21st day of August, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that EDELINE CHERISME of Dolphin Road, Blair, P.O. Box SS-6242, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 25th day of August, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147,Nassau, Bahamas.

THE TRIBUNE

FOXCONN’S WISCONSIN PLANT RAISES ENVIRONMENTAL WORRIES

By IVAN MORENO Associated Press MILWAUKEE (AP) — Foxconn Technology Group is being enticed to come to Wisconsin with numerous regulatory waivers, raising concerns from environmentalists who are wary of the company’s reputation in China, where it has been accused of polluting rivers.

The Taiwan-based company best known for manufacturing Apple products insists that its new plant won’t damage the environment. Regulators say they’re simply streamlining the process for the company to set up shop, while still policing its activities.

But this being Foxconn’s first plant in the U.S., the assurances from the company and its supporters have done little to quell worries about the long-term impacts to wetlands and the state’s waterways. Foxconn would be producing liquid crystal display panels, or LCDs, for

computers, televisions and other devices.

Making LCDs requires heavy metals such as mercury, cadmium, chromium, zinc and copper, said Peter Adriaens, professor of environmental engineering at the University of Michigan. But companies in China don’t have the same disclosure requirements as companies in the U.S. for the materials they use, Adriaens said.

“We know that outside manufacturing plants of Foxconn, rivers are very polluted,” he said. Less stringent oversight in China makes it difficult to know for certain if Foxconn is responsible, but, he added: “The correlation is very strong, let’s put it that way.”

Foxconn told The Associated Press that it is committed to “minimizing the negative impact of our operations on the environment.”

“In line with this, we will be implementing measures for our Wisconsin campus in areas, including

Monday, August 28, 2017, PAGE 7 environmentally friendly product design, carbon emission reduction, process management, energy efficiency and resource management, and supply chain management, among others,” the company said in a statement.

The company also said it has “a very good environmental record in China and in all other locations where we do business” and that “as part of our effort to create a sustainable business, we invest in improving our capabilities in processing waste, wastewater, and emissions.”

With the help of President Donald Trump, Republican Gov. Scott Walker was instrumental in persuading Foxconn to pick Wisconsin for its plant over several other states. The project, which still needs legislative approval, could have a huge economic impact: Foxconn said it may spend up to $10 billion and eventually hire 13,000 people in exchange for $3 billion in tax credits.

Along with financial incentives, Wisconsin lawmakers are considering allowing Foxconn to discharge materials into wetlands, fill lakebeds to create more land and reroute streams during construction and operation without obtaining permits from state regulators. Under the legislation,

In the Estate of SIMONE CLAUDINE OUTTEN late No. 10 Contential Avenue, Twynam Heights in the Eastern District of the Island of New Providence one of the Islands of The Commonwealth of The Bahamas, deceased.

NOTICE NOTICE is hereby given that all persons having any claim or demand against the said estate are required to send the same duly certified in writing to the undersigned on or before the 28th day of October, A.D. 2017, after which date the Executors will proceed to distribute the estate having regard only to the claims of which they shall have had notice.

AND notice is hereby given that all persons indebted to the estate are required to make full settlement on or before the date hereinabove mentioned.

CEDRIC L. PARKER & CO. Attorneys for the Executor 9 Harcourt (Rusty) Bethel Drive Nassau, Bahamas

Foxconn also wouldn’t have to provide an environmental impact statement for the 20 million-square-foot (1.86 million-square-meter) campus it plans to build in southeastern Wisconsin.

Walker’s administration has said the waivers would ensure that construction begins in 2020 but that the company would still have to abide by the usual state and federal environmental standards. And for every 1 acre

(0.4 hectare) of wetlands that is lost, the legislation would require Foxconn to restore 2 acres (0.8 hectare) of wetlands — more than current law, which stipulates 1.2 acres (0.5 hectare) restored for every acre lost.

PAGE 8, Monday, August 28, 2017

THE TRIBUNE

ROW ESCALATES BETWEEN FRANCE, POLAND OVER EU LABOR REFORMS

By ALISON MUTLER AND MONIKA SCISLOWSKA Associated Press

VARNA, Bulgaria (AP) — A bitter exchange of words erupted between France and Poland on Friday after French President Emmanuel Macron sharply criticized Poland’s opposition to plans to change European Union rules on “posted workers” — the cheap labor from eastern countries sent to more prosperous EU nations.

On a trip Friday to Bulgaria, Macron said the Polish reluctance to reform the bloc’s labor rules is “an illustration of the mistakes made by this government.”

His comments came on the final leg of a threeday visit to Central and Eastern Europe that has included meetings with Austrian, Czech, Slovak and Romanian leaders but not with Polish officials.

“Poland has decided to isolate itself from Europe and its refusal to revise this directive doesn’t change my confidence in (getting) a positive outcome” on the rules change, Macron said,

UK REGULATOR SUBMITS NEW REPORT ON FOX-SKY BID TO GOVERNMENT LONDON (AP) — Britain’s culture and media ministry says it has received a new report from the broadcast regulator about a takeover bid by TwentyFirst Century Fox Inc. for satellite broadcaster Sky. The ministry said Friday that regulator Ofcom had responded to its request for “advice and clarification.”

Rupert Murdoch’s media group is trying to buy the 61 percent of Sky it doesn’t already own. Ofcom has previously said the takeover could give the Murdoch family too much influence over Britain’s media.

Murdoch’s critics have been emboldened by allegations that Fox News ran a story containing fabricated quotes.

Culture Secretary Karen Bradley has said she is inclined to send the deal to Britain’s competition regulator for further review. The ministry says Bradley will make a decision “as soon as is reasonably practicable.”

FRENCH President Emmanuel Macron gestures during a press conference with his Bulgarian counterpart Rumen Radev at the Euxinograd residence outside Varna, Bulgaria, Friday, Aug. 25, 2017. Macron arrived Friday at a Frenchstyle palace on the Black Sea coast for talks with Bulgarian leaders on the final leg of his three-day tour to central and eastern Europe. (AP Photo/Vadim Ghirda) adding Poles “deserved better.”

“The (Polish) prime minister will have difficulty explaining why it’s good to pay the Poles badly,” Macron said.

Poland is the largest source of posted workers, about 300,000 to 400,000 a year. Critics say having posted workers leads to lower wages and fewer jobs for workers from wealthy nations and reduces the taxes coming in to fund social programs in wealthy nations.

Polish Prime Minister Beata Szydlo hit back, calling the French leader’s criticism “arrogant,” advising him to “mind the business of his own country.” She also accused France of trying to “take apart one of the pillars of the EU” — the free movement of workers among the bloc’s 28 nations.

“The future of Europe will not be decided by the president of France, or by any other individual leader, but jointly, by all

the member states,” she said.

Later Friday, Poland’s deputy foreign minister urgently summoned a French diplomat to express his “indignation” over Macron’s criticism of the Polish government.

On Thursday, Szydlo vowed to defend “Poland’s interests and Poland’s workers,” but added that “all member states are putting their heads together” over the issue.

Posted workers, while abroad, continue to pay

into the tax and social security systems of their home countries, allowing their employers to hire them for less than workers in Western countries where government taxes are generally higher. The largest number work in construction, but many also work caring for the elderly.

Macron, said Poland “cannot be the country that gives Europe its direction.”

Bulgarian President Rumen Radev said it was important not to violate the EU’s basic principle of free movement when it considers changes to rules on posted workers. He said new rules should seek a balance between the older and newer EU members, such as Poland, Bulgaria and Romania.

Radev said he shared Macron’s “anguish about social dumping.”

“Bulgaria is against all social security fraud,” he said.

Bulgaria’s prime minister said he regretted divisions that have emerged in the EU over the issue.

“Poland and Hungary are our friends and it is fatal that there is such confrontation in the European

Union,” said Prime Minister Boyko Borisov Friday after talks with Macron.

Borisov said officials would discuss the issue with Szydlo when she visits Bulgaria in September. He said Bulgaria wanted a solution on posted workers before it takes over the rotating presidency of the EU on Jan. 1, 2018.

An estimated few thousand Bulgarian workers have relocated to other EU states working in construction, trucking and shipbuilding.

Macron and Borisov also discussed business, investment and Europe’s passport-free Schengen travel zone, which Bulgaria wants to join. Bulgaria also wants to join the Parisbased Organization for Economic Co-operation and Development, an international organization representing many of the globe’s advanced economies.

The leaders discussed defense issues and Bulgaria’s plans to upgrade its military, spending 1.8 billion euros ($2.12 billion) on new hardware between 2017 and 2029.

VW engineer gets prison, $200,000 fine in diesel scandal DETROIT (AP) — A Volkswagen engineer who had a key role in the company’s diesel emissions scandal was sentenced Friday to more than three years in prison and a $200,000 fine, a steeper punishment than prosecutors requested.

James Robert Liang, 63, knew the German automaker was cheating and worked to cover it up, U.S. District Court Judge Sean Cox said during the sentencing hearing in Detroit. The judge imposed a 40-month prison sentence.

“The conspiracy perpetrated a massive ... and stunning fraud on the American consumer that attacked and destroyed the very foundation of our economic system,” Cox said.

Liang, who faces deportation to Germany upon his release from prison, declined to speak on his own behalf Friday. Prosecutors had requested a 36-month prison term and a $20,000 fine.

Prosecutors said Liang was aware that VW used software to cheat U.S. emission rules on nearly 600,000 diesel vehicles. His lawyer said he’s not “greedy or immoral” but followed

orders to keep his job and support his family.

“What occurred here was wrong,” defense attorney Daniel Nixon said. “But he wasn’t the mastermind.

He was not motivated by greed.”

Liang pleaded guilty last year to one count of conspiracy to defraud the government and agreed to cooperate with investigators.

Liang had asked the judge to consider a sentence of probation and 1,500 hours of community service.

He is one of two VW employees to plead guilty, although others charged in the case are in Germany and out of reach.

Volkswagen and U.S. environmental regulators announced agreement last month on a plan for the automaker to fix most of the diesel cars involved in the emissions cheating scandal.

Volkswagen has admitted that the cars were sold with illegal software programmed to turn on emissions controls during government lab tests and turn them off while on the road. Investigators determined that the cars emitted more than 40 times the legal limit of nitrogen oxide, which can cause respiratory problems in humans.

VOLKSWAGEN engineer James Robert Liang, left, leaves court, in Detroit, after pleading guilty to one count of conspiracy in the company’s emissions cheating scandal. U.S. prosecutors are seeking a three-year prison sentence for a Volkswagen engineer who had a key role in the company’s diesel emissions scandal. Liang is scheduled to be sentenced Friday, Aug. 25, 2017, in Detroit federal court. (Virginia Lozano/Detroit News via AP, File)

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Monday, August 28, 2017, PAGE 9

GAS PRICES RISE, FLIGHTS STALL AS HURRICANE HARVEY NEARS

By DAVID KOENIG Associated Press

could rise by up to 25 cents a gallon but an increase of 5 cents to 15 cents is more likely, assuming that the hurricane doesn’t cause lasting damage to refineries.

Andy Lipow, president of consultant Lipow Oil Associates, expects prices to rise 10 cents a gallon for motorists east of the Rockies.

Flooding and power outages caused by a storm surge are considered the biggest risk.

“The biggest issue is whether Harvey causes major flooding in the Houston area and that shuts down another 13 percent of the nation’s refining capacity, which could lead to an additional price spike,” Lipow said. He said Houston-area refineries wouldn’t decide whether to shut down until the weekend.

The prospect of supply interruptions sent gasoline futures to $1.74 a gallon, their highest level since April, before retreating to around $1.67 by Friday afternoon.

— OIL AND GAS: Companies have been evacuating workers from oil-producing platforms in the Gulf of Mexico, and that is crimping the flow of oil and gas.

As of midday Friday, the U.S. Bureau of Safety and Environmental Enforcement said workers had been removed from 86 of the 737 manned platforms used

DALLAS (AP) — Refinery operators along the Texas Gulf Coast are hunkering down for Hurricane Harvey, while motorists far from the storm’s path are also feeling the effects as gasoline prices rise.

Nearly one-third of the nation’s refining capacity sits in low-lying areas along the coast from Corpus Christi, Texas, to Lake Charles, Louisiana.

Several refineries at greatest risk of suffering a direct strike from high winds have already shut down, but it is the potential for flooding in the Houston and Beaumont, Texas, areas that could really pinch gasoline supplies.

Other industries from shipping to air travel are also seeing the impact of the first major hurricane to hit the refinery-rich Texas coast in nearly a decade.

Here’s how Harvey is likely to affect energy, travel, shipping and other industries.

— REFINERIES: The hurricane is expected to make landfall Friday night or early Saturday, but Flint Hills Resources already announced that it would shutter a refinery and Valero Energy Corp. said it was closing two facilities in Corpus Christi.

Tom Kloza, an analyst for the Oil Price Information Service, predicts that prices

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to pump oil and gas from beneath the Gulf.

The agency estimated that platforms accounting for about 22 percent of oil production and 23 percent of natural gas output in the Gulf had been shut down.

“We could see more production be taken offline in the Gulf of Mexico” if the path of the storm wanders farther east, said Jenna Delaney, an oil analyst for PIRA Energy. But,

she noted, oil companies announced fewer platform shutdowns on Friday than they had on Thursday, an encouraging sign.

Exxon Mobil closed two of its platforms and was evacuating all personnel in the expected path of the storm, said spokeswoman Suann Guthrie. Shell halted operations on a big floating oil-production platform, and Anadarko evacuated workers and shut down four

facilities in the western Gulf while continuing to operate those east of the storm’s predicted path.

On shore, ConcoPhillips stopped all operations in the Eagle Ford shale formation, which lies across a swath of South Texas inland from the Gulf. A company spokeswoman cited safety and potential disruptions in getting oil and gas from the wells to market during the storm.

— SHIPPING: Shipping terminals along the Texas coast shut down as the storm approached. Port operations in Corpus Christi and Galveston closed, and the port of Houston said container terminals and general cargo facilities were closing around midday.

Rates for carrying freight between the Gulf of Mexico and the U.S. East Coast rose.

PAGE 10, Monday, August 28, 2017

THE TRIBUNE

A FIRST: DRUG LOWERS HEART RISKS BY CURBING INFLAMMATION

By MARILYNN MARCHIONE Associated Press FOR the first time, a drug has helped prevent heart attacks by curbing inflammation, a new and very different approach than lowering cholesterol, the focus for many years.

People on the drug also had surprisingly lower cancer death rates, especially from lung cancer. An anti-tumor effect is an exciting possibility, but it needs much more study because the heart experiment wasn’t intended to test that.

Doctors say the results on the drug, canakinumab (can-uh-KIN-yoo-mab), open a new frontier. Many heart attacks occur in people whose cholesterol is normal and whose main risk is chronic inflammation that can lead to clogged arteries.

“We suddenly know we can address the inflammation itself, the same way we learned almost 25 years ago that we could address cholesterol. It’s very exciting,” said the study’s leader, Dr. Paul Ridker of Brigham and Women’s Hospital in Boston.

Results were published Sunday by the New England Journal of Medicine

THE LOGO of Swiss pharmaceutical company Novartis AG on one of their buildings in Basel, Switzerland.

According to results published Sunday, Aug. 27, 2017, for the first time, a drug has helped prevent heart attacks by curbing inflammation, a new and very different approach than lowering cholesterol, which has been the main focus for decades. Canakinumab’s maker, Novartis, sponsored the study.

(Georgios Kefalas/ Keystone via AP, File)

and Lancet, and presented at the European Society of Cardiology conference in Barcelona, Spain. The drug’s maker, Novartis, sponsored the study and Ridker consults for the company.

Why Inflammation?

Statins such as Lipitor lower LDL or bad

cholesterol and have been the cornerstone of preventing heart attacks along with not smoking, blood pressure control and a healthy lifestyle.

Yet one quarter of people who suffer a heart attack will have another one within five years, and inflammation is a culprit in half of those cases.

Inflammation happens after a joint is injured and swells, but similar chemical responses can occur over time throughout the body with unhealthy habits. That chronic, unseen inflammation can damage arteries and set the stage for clots.

Twenty years ago, Ridker helped clarify its role and patented a cheap blood test for a sign of inflammation called high-sensitivity C-reactive protein, or CRP.

The Study Canakinumab lowers CRP and is sold now under the brand name Ilaris for some rare inherited diseases.

The study tested it in 10,000 heart attack survivors with low cholesterol but high CRP. They got the usual heart medicines including statins and were given one of three different doses of canakinumab or a placebo as a shot every three months.

Those on the medium dose had a 15 percent lower chance of another heart attack, a stroke or a heartrelated death over the next four years compared to people given dummy shots.

About 33 people would have to be treated for five years to prevent one of these problems — a ratio that outside experts called very good.

The highest dose also lowered risk but not by enough to say the drug was the reason. The lowest dose had no effect.

What Experts Say Canakinumab’s benefit was comparable to Repatha, a powerful new type of cholesterol-lowering drug called a PCSK9 inhibitor.

It came out two years ago and has had tepid sales, partly because many doctors hoped it would help more and due to its price — $14,000 a year.

It’s hard to get big reductions in risk by adding a new drug like canakinumab if people already are taking optimal medicines, said Dr. Mark Creager, director of the Dartmouth-Hitchkock heart and vascular center and past president of the American Heart Association.

But even a small improvement makes a huge difference considering how common heart attacks are, he said. “That’s going to save a lot of people.”

The best part is having a new way to help patients, said the Cleveland Clinic’s heart chief, Dr. Steven Nissen, who has consulted for Novartis without fee.

“For the first time we have this new target — inflammation,” Nissen said.

“It’s sort of the dawning of a new era. I really think it’s that big.”

The cancer results were unexpected and intriguing, but not consistent across all types of tumors, said Dr. Barnett Kramer, prevention chief at the National Cancer Institute. He called the lower risk for lung cancer “a promising lead” for future research, but said it comes with concern about the drug’s side effects.

The Bad News Canakinumab raised the risk of fatal infections — about 1 of every 1,000 patients treated. Older people and diabetics were most vulnerable.

The drug had no effect on death rates once cancer, infection and heart risks were balanced out.

“The fatal infections are something to be concerned about” but overall trends are in a good direction, said Dr. David Goff of the National Heart, Lung and Blood Institute.

The federal agency had no role in the heart attack study but sponsors one underway now testing methotrexate, a pill long used to treat cancer and rheumatoid arthritis. It may give a relatively cheap way to prevent heart attacks if it works, because canakinumab is a biotech drug that’s likely to be expensive, Goff said.

Novartis said it’s premature to discuss price for any use as a heart medicine. It costs as much as $200,000 now for rare diseases, and would have to prove cost-effective to justify its relatively modest benefits and risks for heart disease prevention, Dr. Robert Harrington, chairman of the department of medicine at Stanford University, wrote in a commentary in

“We suddenly know we can address the inflammation itself, the same way we learned almost 25 years ago that we could address cholesterol. It’s very exciting” – Dr. Paul Ridker An Anti-Cancer Effect?

Inflammation also affects how cancers grow and spread. The cancer death rate was only half as large among those getting canakinumab, and death rates for lung cancer were lower in people getting the top two doses.

Doctors don’t think the drug prevents new cancers from developing, but that it might slow the growth of any tumors that had already started, based on other research.

the New England journal.

The company said it would discuss the new results with regulators and pursue further studies on the lung cancer possibilities.

What About Other Inflammation Drugs?

Drugs called NSAIDs, such as ibuprofen, fight inflammation and pain, but they can raise heart risks, which may seem confusing in light of this study. But they work in a different way, do not reduce CRP, and can affect blood clot formation.

THE TRIBUNE

Venezuela’s Maduro vows to punish opponents for US sanctions

By FABIOLA SANCHEZ AND JOSHUA GOODMAN Associated Press

CARACAS, Venezuela (AP) — Venezuelan President Nicolas Maduro vowed Friday to prosecute for treason opponents he accused of being behind sweeping U.S. financial sanctions that will strain relations between the countries and make it harder for the socialist leader to raise badly needed cash.

Maduro accused President Donald Trump of trampling on international law and relations with Latin America by taking actions that he said would cause “great damage” to the Venezuelan oil economy as well as American investors who own the country’s bonds.

He singled out the president of Venezuela’s congress, Julio Borges, as being the “mastermind” of the financial and economic “blockade” and called on the government-stacked supreme court and a new, all-powerful constitutional assembly to initiate proceedings against opponents who have lobbied in favor of the sanctions.

“You’ve got to be a big traitor to your country to ask for sanctions against Venezuela,” Maduro said in a televised appearance.

The sanctions, which Trump signed by executive order, prohibit American financial institutions from providing new money to

the government or the state oil company, PDVSA. They also ban trading in two bonds the government recently issued to circumvent its increasing isolation from Western financial markets.

They also restrict the Venezuelan oil giant’s U.S. subsidiary, Citgo, from sending dividends back to Venezuela — a move that Maduro said would lead to the “virtual closure” of a company responsible for thousands of American jobs.

“They’re committing robbery, fraud,” Maduro said, adding that Venezuela would reach out to its U.S. partners to make sure decades of business relationships aren’t broken. If necessary the government would find new markets for the roughly 700,000 barrels of oil it sends daily to the U.S., he said.

Trump officials stressed that by leaving untouched crude shipments between the United States and Venezuela the sanctions were targeting Maduro and his allies, not the Venezuelan people.

“Maduro may no longer take advantage of the American financial system to facilitate the wholesale looting of the Venezuelan economy at the expense of the Venezuelan people,” Treasury Secretary Steven Mnuchin said at the White House. “These measures will undermine Maduro’s

ability to pay off political cronies, and regime supporters, and increase pressure on the regime to abandon it’s disastrous path.”

A senior Trump administration official said additional sanctions would be imposed if Maduro doesn’t reverse course and meet opposition demands that he roll back plans to rewrite the constitution, free dozens of political prisoners, and hold fair and transparent elections.

In a conference call to brief reporters on the measures, the official said the United States has significant influence over Venezuela’s economy but does not want to wield it in an irresponsible manner that could further burden the already struggling Venezuelan people. The official spoke on condition of anonymity to discuss the measures in greater detail.

Reflecting those concerns and a strong lobby effort by the U.S. oil industry, Friday’s action stopped short of cutting off U.S. imports of Venezuelan oil that are crucial both to both Venezuela’s economy and to Gulf refiners. The executive order also allows debt financing for exports of food, medicine and other humanitarian goods.

The sanctions follow through on Trump’s threat last month that he would take strong economic actions if Maduro’s increasingly

authoritarian government went ahead with plans to create a constitutional assembly that is made up wholly of government loyalists. The opposition boycotted the vote to elect the body’s 545 delegates.

Since the assembly was seated, it has voted by acclamation to oust the nation’s outspoken chief prosecutor, take lawmaking powers from the opposition-controlled congress and create a “truth commission” that many fear will be used to silence the government’s political opponents.

Several prominent opposition mayors have also been removed or ordered arrested by the governmentstacked supreme court.

The constitutional assembly announced Friday on Twitter that the “truth commission” had initiated an investigation to determine who was behind the sanctions. Assembly president Delcy Rodriguez said the “unpatriotic right” would “respond before the people.”

The commission wields unusual authority to subpoena and prosecute those suspected of wrongdoing.

The sanctions are bound to worsen a crisis that has already seen Venezuela’s oil-dependent economy shrink by about 35 percent since 2014 — more than the U.S. economy did during the Great Depression. But it’s unclear how quickly the

Monday, August 28, 2017, PAGE 11

A MILITIA members shouts slogans during a speech by Gen. Carlos Leal Telleria, Commander of the Venezuelan Bolivarian Militia, in Fort Tiuna, Caracas, Venezuela, Friday, Aug. 25, 2017.

President Nicolas Maduro ordered military exercises in response to President Donald Trump’s warning of possible military action to resolve the country’s crisis. (AP Photo/Ricardo Mazalan) impact on the streets will be felt.

Maduro, who is among some 30 senior officials already barred from the United States, has been warning for weeks that the Trump administration was readying a “commercial, oil and financial blockade” in the mold of the one that has punished Cuba for decades.

He found an opportunity to argue his case that he’s being unfairly targeted after Trump said earlier this month that he wouldn’t rule out a “military option” to resolve Venezuela’s crisis

— comments that were roundly rejected throughout Latin America, even by some of Maduro’s toughest critics.

On Friday, journalists were invited to a shooting range at Caracas’ main military base to watch as troops taught a handful of civilian government supporters how to fire assault weapons. The event, attended by military officials from China, Belarus and Russia, was a prelude to military exercises Maduro called for this weekend as a deterrent to any U.S. military intervention.

Union in strife as Disney and Teamsters prepare for talks

By MIKE SCHNEIDER Associated Press ORLANDO, Fla. (AP) — As negotiations start this month over wage increases at Walt Disney World, rebellion is brewing in one of the six unions that advocate for the resort’s 70,000 workers.

Many of the performers who entertain guests as Mickey Mouse, the Seven Dwarves and other costumed characters are Teamsters, and some are fed up with how their union is being run. For the first time in recent memory, they’re putting together a slate of opposition candidates, promising to make this fall’s vote for the leadership of Teamsters Local 385 anything but a heigh-ho-hum affair.

“It’s a rat’s nest down there,” said John “Spike” Coskey, who served on the local’s executive committee until he was fired after arguing with a former president.

The 9,000 members of Local 385 have key roles in central Florida’s tourism and transportation industries. About half are Disney workers; the rest include UPS drivers, hotel employees, food service workers, rental car employees and

other drivers across 20 Florida counties.

Local 385 member Ralph Singer said national Teamsters leaders have ignored his complaints because the local is flush with cash.

Records filed with the U.S. Department of Labor shows Local 385 collected almost $3.6 million in dues and fees last year — an average of $400 per member — and had $2.3 million in net assets.

“Because they’ve got plenty of money, nobody cares,” said Singer, a truck driver at Disney who plans to run on the opposition slate. “It’s a cash cow.

Nobody cares.”

The unhappiness in Local 385 comes as Walt Disney World management opens talks with the six-union council, which represents about half the theme park resort’s workforce. New employees start at $10 an hour, and a council statement said negotiators will push for “significant increases to lift Cast Members out of poverty.”

Disney World is the only unionized theme park in Orlando, but given the vast size of its workforce, wages there have a big impact on what other hospitality workers earn in the area. And

compared to other major tourist destinations, they’re not doing very well: Among the nation’s 25 largest metro areas in 2015, Orlando had the third-lowest median household income, at $51,077. One reason: Florida’s “right-to-work” law depresses union membership by requiring it to be voluntary, and not a condition of employment.

In recent weeks, both Singer and Coskey filed complaints with a review board that was created decades ago to root out corruption in the Teamsters and is still overseen by a federal judge in New York.

They accuse the local’s president, Clay Jeffries, of giving himself a $400 a week raise without executive committee approval, and say he won’t let members see the local’s finances.

Jeffries didn’t return repeated phone calls and emails for this story.

Teamsters’ spokesman Galen Munroe said International Brotherhood of Teamsters officials in Washington are aware that the review board has been investigating these new allegations, but said he couldn’t comment beyond that. Robert Callus, a review

board investigator, said the board doesn’t confirm or deny open investigations.

In the mid-1990s, Larry Parker was barred from the union after he allegedly took kickbacks as the local’s president from members wanting to work on films in Florida. Twentyyears before that, his father

Paul Parker, also the local’s president, was sentenced to 10 years in prison for aiding and abetting others to damage a building with explosives. Paul Parker also pleaded guilty to obstructing a criminal probe, embezzling funds and falsifying union records.

Jeffries assumed the top post a year ago. In March, the National Labor Relations Board determined he engaged in unfair labor practices before that, when as secretary-treasurer, he was accused of ignoring the requests of eight members who wanted to quit and stop paying their dues.

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NOTICE NOTICE is hereby given that all persons having any claim or demand against the said estate are required to send the same duly certified in writing to the undersigned on or before the 30th day of October, A.D. 2017, after which date the Executrix will proceed to distribute the estate having regard only to the claims of which she shall have had notice.

AND notice is hereby given that all persons indebted to the estate are required to make full settlement on or before the date hereinabove mentioned.

CEDRIC L. PARKER & CO. Attorneys for the Executor 9 Harcourt (Rusty) Bethel Drive Nassau, Bahamas

JOB VACANCY EXECUTIVE SECRETARY The Council of Legal Education is seeking a suitable candidate to fill the post of Executive Secretary for the Eugene Dupuch Law School. This position will offer administrative support to the Law School.

Suitable candidates should have: • An Associate’s degree or better; • A good working knowledge of the Microsoft Suite of products – Microsoft Word, Excel, Publisher and Power Point; • At least five (5) years working experience at the secretarial level or higher; • Strong oral and written communication skills; and • Excellent interpersonal skills.

For further information, see the Eugene Dupuch Law School’s website: http://eugenedupuchlaw.edu.bs/jobvacancysecretary Deadline for applications Tuesday, September 5, 2017

PAGE 12, Monday, August 28, 2017

FBI: CHINESE MAN SUPPLIED RARE, MALICIOUS MALWARE

By MICHAEL BALSAMO Associated Press LOS ANGELES (AP) — A Chinese man has been charged in California with distributing a type of computer malware that has been

linked to attacks on U.S. businesses and to the theft of personnel records of millions of U.S. government employees, authorities said.

Defendant Yu Pingan, 36, knew the rare malware known as “Sakula” would be used to hack U.S.

companies, the FBI said in court documents obtained Friday.

The malware has also been linked to hacks at the U.S. Office of Personnel Management in 2014 and 2015, when hackers accessed massive amounts

of information from security clearance forms of federal workers and contractors.

The court filing against Yu does not specifically mention those hacks.

U.S. officials have said the Chinese government

THE TRIBUNE is responsible for those breaches.

Asked about the arrest of Yu, Hua Chunying, a Chinese foreign ministry spokeswoman in Beijing, said at a regular briefing that she was unaware of the situation.

But, she added, “China has a clear and consistent position in fighting against all kinds of cybercrimes.

Also, we will proactively protect the legitimate rights and interest of overseas Chinese nationals.”

Yu worked with unidentified co-conspirators in China to “acquire and use malicious software tools, some of which were rare variants previously unidentified by the FBI and information security community,’” the criminal complaint said.

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Monday, August 28, 2017, PAGE 13

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Overseas Offices Overseas Offices Ministry of Foreign Affairs, Overseas Missions - Verification Centers Overseas Offices Ministry of Foreign Affairs, Overseas Missions - Verification Centers Ministry Tourism Offices Overseas - Verification Centers Centers Ministry of Foreign Affairs, Overseas Missions - Verification Ministry Tourism Offices Overseas - Verification Centers Ministry Tourism Offices Overseas - Verification Centers

New Providence New New Providence Providence Thomas A. Robinson Stadium Thomas A. Robinson Thomas A. Robinson Stadium Stadium

Group 1 Group 1 Office1of the Attorney-General & Ministry of Legal Affairs Group Office of the Attorney-General & Ministry of Legal Affairs Parliamentary Registration Department Office of the Attorney-General & Ministry of Legal Affairs Parliamentary Registration Department Ministry of Foreign Affairs Parliamentary Registration Department Ministry of Foreign Affairs Office of of theForeign Prime Minister Ministry Affairs Office of the Prime Minister Ministry of Finance Office of the Prime Minister Ministry of Finance Customs Department Ministry of Finance Customs Department Department Of Inland Revenue Customs Department Department Of Inland Revenue Royal Bahamas Defence Force Department Of Inland Revenue Royal Bahamas Defence Force Ministry of Social ServicesForce Royal Bahamas Defence Ministry of Social Services Ministry of Youth, Sports and Culture Ministry of Social Services Ministry of Youth, Sports and Culture Department of Road Traffic Ministry of Youth, Sports and Culture Department of Road Traffic Department of Meteorology Department of Road Traffic Department of Meteorology Ministry of Tourism and Civil Aviation Staff Department of Meteorology Ministry of Tourism and Civil Aviation Staff Department of Information Ministry of Tourism and CivilTechnology Aviation Staff Department of Information Technology Department of of Information Physical Planning Department Technology Department of Physical Planning Department of Physical Planning

Group 2 Group 2 of Public Works Ministry Group 2 Ministry of Public Works

Department of Public Works Ministry of Public Works Department of Public Works Royal Bahamas Police Works Force Department of Public Royal Bahamas Police Force Ministry of Financial Services Royal Bahamas Police Force Ministry of Financial Services Department of Environmental Ministry of Financial Services Health Services Department of Environmental Health Services Ministry of Environment and Housing Department of Environmental Health Services Ministry of Environment and Housing Ministry of Environment and Housing

Group 3 Group 3 of Education Ministry Group 3 Ministry of Education

Department of Education Ministry of Education Department of Education Department Department of of Archives Education Department of Archives Department of Archives

Group 4 Group 4 General and Staff Governor Group 4 Governor General and Staff

The SenateGeneral and Staff Governor The Senate House of Assembly The Senate House of Assembly Department of the Auditor-General House of Assembly Department of the Auditor-General Ministry of Public Department of theService Auditor-General Ministry of Public Service Cabinet Office Ministry of Public Service Cabinet Office Office the Judicial (Magistrate & Supreme Courts) CabinetofOffice Office of the Judicial (Magistrate & Supreme Courts) Court Office of of Appeal the Judicial (Magistrate & Supreme Courts) Court of Appeal Registrar General's Department Court of Appeal Registrar General's Department Treasury Department Registrar General's Department Treasury Department Ministry of National Security Treasury Department Ministry of National Security Port Department Ministry of National Security Port Department Port Department

Freeport District Ministry For Grand Bahama -Verification Center Public Treasury Department Department of Education Bahamas Customs Department Royal Bahamas Police Force Immigration Department

Public Treasury Freeport - Verification Center Ministry for Grand Bahama Attorney General's Office Department of Road Traffic Ministry of Public Works Department of Local Government Department of Labour Department of Marine Resource Department of Agriculture Department of Environmental Health Services Department of Housing Ministry of Foreign Affairs Department of Statistics Ministry of Youth, Sports and Culture Royal Bahamas Defence Force Port Department Registrar General Department Social Services Rehabilitative/Welfare VAT/Inland Revenue Consumer Affairs Department of Public Service Auditor's General Department Department of Information Technology Department of Meteorology Office of Judicial (Magistrate & Supreme Courts & Industrial Tribunal) Parliamentary Registration Civil Aviation Department Parliamentary Registration National Emergency Management Bahamas Information Services (BIS)Agency(MEMA) Parliamentary Registration National Emergency Management Agency(MEMA) Bahamas Agricultural & Industrial Corporation Post Office Department National of Emergency Management Agency(MEMA) Bahamas Agricultural & Industrial Corporation Ministry Health Parliamentary Registration Bahamas Agricultural & Industrial Corporation Ministry of Health of Assembly The Senate/House National Emergency Management Agency(MEMA) Ministry of Health The Senate/House Tourismof Assembly Bahamas Agricultural & Industrial Corporation The Senate/House Ministry of Tourismof Assembly Ministry of Health Ministry of Tourism The Senate/House of Assembly Ministry of Tourism East Grand Bahama

East Bahama Office - Verification Center FamilyGrand Island Administrator's East Grand Bahama Office - Verification Center Family Island Administrator's Family Island Administrator's East Grand Bahama Office - Verification Center West Grand Bahama Family Island Administrator's - Verification Center West Grand Bahama Office Family Island Administrator's Office - Verification Center West Grand Bahama Office - Verification Center Family Island Administrator's Family Administrator's West Island Grand Bahama Office - Verification Center Abaco Family Island Administrator's Office - Verification Center Abaco Public Treasury - Central Abaco - Verification Center Abaco Public - Central Abaco - Verification Center- Verification FamilyTreasury Island Administrator's Office - North Abaco Public Treasury Central Abaco Verification Center- Verification Family AbacoIsland Administrator's Office - North Abaco Center

Family Island Office --North CenterTreasury Family IslandAdministrator's Administrator's Office SouthAbaco Abaco Verification Public - Central Abaco - Verification Center--Verification Center Family Island Administrator's Office South Abaco Verification Center Family Island Administrator's Office - North Abaco - Verification Family Center Center Island Administrator's Office - South Abaco - Verification Center Family Island Administrator's Office - South Abaco - Verification All Other Islands Center All Other Family IslandIslands Administrator's Office - Verification Center All Other Family IslandIslands Administrator's Office - Verification Center Family IslandIslands Administrator's Office - Verification Center All Other

PAGE 14, Monday, August 28, 2017

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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

THE TRIBUNE

Monday, August 28, 2017, PAGE 15

Trump adviser says he nearly quit over president’s remarks

By JONATHAN LEMIRE AND CATHERINE LUCEY Associated Press WASHINGTON (AP) — The top economic adviser to President Donald Trump says he came close to quitting over the president’s response to the violence in Charlottesville, Virginia.

The director of the National Economic Council, Gary Cohn, tells the

Financial Times that he decided to stay because he feels a duty to the American people.

In the interview, Cohn issued an extraordinary rebuke of the president for a senior adviser. He said, “Citizens standing up for equality and freedom can never be equated with white supremacists, neoNazis and the KKK.”

Describing himself as a Jewish American, Cohn also said the Trump administration “can and must do better in consistently and unequivocally condemning these groups.”

Trump sparked controversy when he said that “many sides” were to blame and that both sides had “very fine people.”

NATIONAL Economic Director Gary Cohn speaks in the briefing room of the White House, in Washington. Cohn says he’s under “enormous pressure” both to quit and remain in the White House and says the administration “must do better” in condemning hate groups after the violence at a white nationalist rally in Charlottesville, Virginia. (AP Photo/Carolyn Kaster)

Yellen defends bank regulations passed after 2008 crisis

By MARTIN CRUTSINGER Associated Press JACKSON HOLE, Wyoming (AP) — Federal Reserve Chair Janet Yellen on Friday emphatically defended the web of regulations the Fed helped enact after the 2008 financial crisis, saying it helped restore the banking system’s health and disputing criticism that the rules have hurt lending.

Yellen said the Fed is prepared to adjust the regulations as needed to help financial institutions. But in a speech to an annual conference of central bankers in Jackson Hole, she implicitly rejected efforts by Republicans, including President Donald Trump, to scrap the 2010 Dodd-Frank law as a threat to the economy.

The Fed chair refrained from remarking on the state of the economy or on the possible future course of interest rates. Investors had been awaiting her speech for any signals about what

the Fed might do when it meets next month. The central bank has been gradually raising its benchmark short-term rate, but most Fed watchers expect no rate hike before December at the earliest.

Overhanging Yellen’s speech was the possibility that it marks her final appearance in Jackson Hole as Fed chair. Her term as chair will end in February, and Trump has made clear he is considering replacing her. One candidate he has mentioned is Gary Cohn, a former Goldman Sachs senior executive who leads Trump’s National Economic Council.

Some saw Yellen’s forceful defense Friday of the regulatory structure imposed on banks since the 2008 crisis as further lessening the likelihood that Trump will reappoint her.

Sal Guatieri, senior economist at BMO Capital Markets, said Yellen’s speech “puts her at odds with Trump’s deregulation

mandate, which could weigh against her remaining as chair when her term expires early next year.”

Paul Ashworth, chief U.S. economist at Capital Economics, said that “Yellen’s passionate defense of the post-crisis tightening of financial regulation isn’t going to go down particularly well at the White House” and that it probably makes it less likely that Trump will re-nominate her.

At the same time, tensions might be arising between Cohn and Trump. In an interview published Friday in the Financial Times, Cohn said he considered quitting the White House over the president’s widely condemned response to violence at a white nationalist rally in Charlottesville, Virginia. Cohn said he ultimately chose not to leave because of the duty he feels to his job.

A few hours after Yellen’s speech Friday, Mario Draghi, president of the European Central Bank,

FEDERAL Reserve Chair Janet Yellen, talks with Mario Draghi, head of the European Central Bank, and Haruhiko Kuroda, head of the Bank of Japan, during a break at the central bankers conference at Jackson Hole, Wyo., Friday, Aug. 25, 2017.

The conference, in its 41st year, is sponsored by the Federal Reserve Bank of Kansas City. (AP Photo/ Martin Crutsinger)

told the Jackson Hole conference that the global economy is strengthening but warned that countries must work together to resist a growing backlash against open trade. He said multilateral cooperation is crucial to reassuring workers who worry that free trade puts their jobs at risk.

Draghi didn’t address the financial health of the eurozone, which includes the 19 nations that share the euro currency. Some investors had expected him to send some signal about when the

ECB will begin slowing its monthly bond purchases, which have been intended to keep borrowing rates low but are less needed now that the European economy is improving. The ECB is expected to take up the issue next month.

In her speech, Yellen noted that the U.S. and global financial systems were “in a dangerous place 10 years ago,” with severe strains that led to the collapse of investment bank Lehman Brothers, the government takeover of

mortgage giants Fannie Mae and Freddie Mac and the requirement that taxpayers bail out the largest banks.

The Fed chair pointed out that despite all the government support to banks, the downturn devolved into the Great Recession, with the loss of 9 million U.S. jobs and millions of Americans losing homes to foreclosures. She said that the resulting recovery has been painfully slow and that policymakers have had to devise ways to prevent another financial crisis.

PAGE 16, Monday, August 28, 2017

THE TRIBUNE