09012017 business

business@tribunemedia.net

FRIDAY, SEPTEMBER 1, 2017

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Sir Franklyn targeting $10m Jack’s Bay raise

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net ROYALFIDELITY has been hired to raise $10 million in financing for Sir Franklyn Wilson’s partnership with Tiger Woods in the Jack’s Bay development, Tribune Business can reveal.

Sir Franklyn confirmed the move to Tribune Business yesterday, adding that the project “represents a new day for Eleuthera” following recent developments that will aid its progress.

The Sunshine Holdings chairman was

May seek more funding via RoyalFidelity

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net MOODY’S yesterday slashed its 2017 economic growth forecast for the Bahamas to “below 1 per cent”, and warned that there was little mediumterm momentum beyond Baha Mar. The credit rating agency, releasing its full Bahamas country analysis, said there were “signs” that this nation had endured a third consecutive year of recession in 2016, following the one-off blow from Hurricane Matthew.

It is projecting that the Bahamas’ real GDP will expand by a modest 0.8 per cent in 2017, following a 0.3 per cent contraction last year, further showing how much work is required to turn this nation’s $8.9 billion economy around.

“Over the coming years we expect that growth will gradually recover. We forecast growth below 1 per cent in 2017,” Moody’s said. “The full operations of Baha Mar will likely provide a short-term boost to economic activity in 2018.

Suggests 2016 third consecutive year of recession ‘Structural rigidities’ hurt medium term prospects “Thereafter, economic growth would return to potential (1-1.5 per cent).

In our view, the Bahamas’ medium-term outlook remains constrained by structural rigidities that include high energy costs and the bureaucratic burden that private sector agents face.”

Moody’s revised 2017 growth forecast is 60 basis points lower than the International Monetary Fund’s (IMF) own predictions, which were cited

by K P Turnquest, deputy prime minister and minister of finance, during the May Budget presentation.

The rating agency’s analysis highlights the need for what Central Bank governor, John Rolle, described as the “planting of seeds” to ensure greater medium-term economic See PG B2

FOCOL’s stock split to ‘spread the wealth’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net FOCOL Holdings’ planned stock split is designed to “spread the wealth” from its increased profitability and growth prospects, its chairman said yesterday.

Sir Franklyn Wilson told Tribune Business that the ‘three-for-one’ split was intended to make the petroleum products provider’s stock more accessible to retail investors, and boost liquidity and trading activity.

He added that the stock price had enjoyed “a remarkable run” in reaching yesterday’s $9.79 close, and suggested there was pent-up demand for FOCOL Holdings’ shares given that there are more outstanding ‘Buy’ than ‘Sell’ orders.

“We’re bullish about the future, and want more and more people to benefit from it,” Sir Franklyn

‘Three for one’ move to boost liquidity, access Chairman: ‘We’ve had remarkable run’ Board believes growth trend ‘sustainable’ told this newspaper. “In terms of what we want to accomplish, we are hoping the three-for-one split will increase liquidity and trading in the stock.

“If you have nine of something, you may be more inclined to sell three rather than if you have three, and may only be inclined to sell one. What has happened is that FOCOL has evolved into a real ‘widows and orphans’ stock.

See PG B5

Bond payout exposure ‘low’ for 3-5 years DPM assessing if Resolve needs full-time staff

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Island in ‘continual decline for 35 years

MOODY’S CUTS BAHAMAS GDP GROWTH ‘BELOW 1%’

BOB’S THREAT TO GOVT ‘CONTAINED FOR NOW’ - MOODY’S

Bail-outs cost Bahamian public over $300m

Tiger partnership ‘new day for Eleuthera’

speaking after he and his fellow investors hosted an event at Jack’s Bay, for which Mr Woods was See PG B4

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SIR Franklyn Wilson with Jack’s Bay developer partner, Beacon Land Development.

Unchecked spending boosted Govt deficit by 3.5% pts of GDP

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net UNCHECKED spending by the Christie administration added a sum equivalent to 3.5 per cent of GDP to the 2016-2017 deficit, Moody’s estimated yesterday, warning that Bahamian fiscal policy credibility has been undermined.

The rating agency, in its annual full country analysis, said constant revisions to fiscal deficits and other targets, coupled with a lack of transparency, had damaged confidence in the Government’s forecasted figures.

“In our assessment, the Government’s small size limits its capacity to formulate and effect fiscal policy, as evidenced by material deviations from fiscal policy targets,” Moody’s said. “Uneven transparency regarding fiscal numbers, particularly with respect

Moody’s slams fiscal transparency woe, target misses Predicts Bahamas’ debt at 80% of GDP this year to arrears, also weighs on fiscal policy credibility.”

It argued that the former Christie administration’s own fiscal consolidation plan, unveiled in 2013, should have provided a ‘road map’ for then-government to achieve its own objectives.

Yet Moody’s added: “The weak state of the economy, expenditure rigidities, and exogenous shocks such as hurricanes have caused deviations from the deficit targets.

We note, too, that fiscal deficit figures have tended to be revised after being presented in mid-year See PG B4

THE Government has “contained for now” the fiscal dangers represented by the $300 million-plus Bank of the Bahamas (BOB) bail-out, Moody’s believes.

The rating agency, in its full Bahamas country analysis, said the risk of the Government having to assume liability for the ‘toxic’ loans transferred from BOB to Bahamas Resolve was “low” for the next three-five years.

Moody’s latest report, released yesterday, warned that the taxpayer could become liable to pay the interest due on BOB’s bonds if Bahamas Resolve is unable to sell or recover the collateral - mostly real estate assets - securing these ‘bad’ loans.

It added that Bahamas Resolve, the special purpose vehicle (SPV) created as a ‘bad bank’ for BOB’s problem loans, was moving to obtain a government-guaranteed loan that will pay out the bonds handed to the bank to fill the ‘hole’ left on its balance sheet. Those bonds start coming due this year.

Moody’s identified the BISX-listed bank, which is 82.6 per cent majority-owned by the Government, as a major credit risk for the Bahamas’ sovereign credit rating along with state-owned enterprises (SOEs).

Its concerns come as K P Turnquest, the deputy prime minister, told Tribune Business that the Government was assessing whether Bahamas Resolve needed a full-time staff to aid what is now an expanded collection effort given that the SPV recently received a further $166 million in ‘toxic’ loans.

“I am looking at that,” he replied, when questioned by this newspaper. “That is a very current and active issue we are giving consideration to. We’ll have to see real soon how we deal with it.

“I know the current arrangement we have has not provided the kind of results we had hoped, and the previous government had See PG B4

PAGE 2, Friday, September 1, 2017

THE TRIBUNE

TEN WAYS TO MOTIVATE CORPORATE EMPLOYEES Every business leader and owner seeks to improve employee productivity and efficiency on a daily basis.

We often fail to realise that the little things make a huge difference in how employees respond to our leadership, clients and our business as a whole.

Today’s discussion focuses attention on 10 actions that business owners and senior executives can take to improve employee relations, and motivate staff towards greater success:

1.

Random acts of kindness

Employees feel appreciated when leaders care enough to speak kind words and give unsolicited tokens.

2.

Sporadic workplace walk-abouts

Without being intrusive, employees are more productive when they know their leaders are visible and the probability of them being checked on is high.

3.

Deliberate, and calculated, employee rewards and recognition Deserving employees should always be highlighted for their efforts. This serves as positive reinforcement to the exceptional employee, and motivation to those less enthused.

4.

Show value to the work that employees produce When employees produce work assignments and complete deadlines (big or small), give feedback and

Moody’s cuts Bahamas GDP growth ‘below 1%’ From pg B1 growth, given that Baha Mar’s impact has already been accounted for in Moody’s estimates.

Mr Rolle pointed to Fiscal Responsibility legislation and reforms to public sector financial management as changes that were needed on the Government side, but the Moody’s report focused on energy reform and improvements to the ‘ease of doing business’ as developments that were also essential.

It hinted strongly that reform efforts should be led, and guided, by the National Development Plan, adding that this “could serve as a platform to develop structural reforms that foster higher economic growth”.

“The Bahamian economy has underperformed since 2013, with signs the economy contracted for a third consecutive year in 2016,” Moody’s said.

“The Bahamas lags ‘Baa’ rated peers in terms of its growth performance, being the only economy estimated to have averaged negative growth in the 2013-17 period.

“The economy’s weak performance in recent years has continued to reflect some of the lasting effects of the shock caused by the global financial crisis, which itself contributed to a recession in The Bahamas in 2008-2009 “One such effect was the impact of the crisis on inbound tourism flows from the US, which declined for the Bahamas since 2005, and have yet to return to their pre-crisis levels. In terms of domestic demand, private consumption has also been very volatile, affected by high rates of unemployment (averaging over 14 per cent in recent years) and the debt overhang of households,” it added.

let them know that their efforts are appreciated.

5.

Celebrate employee success in their personal and professional lives Taking an interest in employees, their families, personal pursuits and goals goes a long way in creating strong relationships between employer and employee.

6.

Correct errors with tact

Employers who learn to correct and discipline their employees with respect are valued highly. The goal of correction must always be developmental.

7.

Use all avenues of communication and keep them informed

Employees who are kept ‘in the loop’ and receive information from their employers are typically more engaged. Talk often and allow employees to engage as well. An ‘open door policy’ must be more than talk.

8.

Provide career development consistently

Employees are more likely to remain engaged and motivated when they know their work has meaning, and contributes greatly to the CORE of the business.

10.

Review and increase the compensation package

9.

As the business grows and opportunities arise to provide additional benefits to employees, employers must seize those opportunities.

Give the employee a sense of worth and make them feel as if their role has meaning each day. Make this the mantra of every leader, and Corporate Bahamas changes forever.

Dumping meaningless assignments on subordinates is sometimes common practice in leadership.

• NB: Ian R. Ferguson is a talent management and organisational development consultant, having completed graduate

Conversations about employee advancement, promotions and professional development must be frequent between the employer and employee.

Delegate meaningful responsibilities

“As a consequence, non-performing loans rose significantly, particularly affecting mortgage credit.

Loan growth has decreased significantly as demand from qualified borrowers has fallen and banks have tightened their lending policies. This, in turn, has also negatively affected residential construction.”

Moody’s said the Bahamian economy’s performance had been boosted

by Baha Mar’s construction during 2011-2012, but its poor performance since 2013 to-date reflect both the $4.2 billion project’s delayed opening and the impacts of Hurricanes Joaquin and Matthew.

Hurricane Irma’s churning in the Atlantic, and forecasts that it will head in this general direction, are likely to revive unhappy recent memories for many Bahamians. “The Bahamas’ exposure to climate-related events, in the form of hurricanes, is a structural feature of the credit which we consider manifests itself through low growth and growth volatility,” Moody’s added.

YOUR

IAN FERGUSON studies with regional and international universities.

He has served organsations, both locally and globally, providing relevant solutions to their business growth and development issues.

He may be contacted at tcconsultants@ coralwave.com.

CHOICE FOR THE FAMILY @JOYFMBAHAMAS WWW.FACEBOOK.COM/JOYFM1019

EXCITING AND CHALLENGING OPPORTUNITY FOR YOUNG BAHAMIANS

Can you imagine a career which will take you to the world’s most fascinating ports and far flung destinations?

A Maritime career could take you there.

Do you have 5 BGCSE passes, including Math, Physics or Chemistry, and English Language at Grade ‘C’ or above?

Have you obtained a combined SAT score of at least 1500?

Are you physically fit?

Are you between the age of 16 and 20 years?

If you have answered YES to the above questions, then please read on.

The Bahamas Maritime Authority is once again offering a scholarship to a young Bahamian, who is keen to train for an exciting and challenging career in the Maritime Industry.

The scholarship is inclusive of tuition, course materials, accommodation and travel. Commencing September 2018, the successful candidate will follow a 4-year degree programme at the State University New York Maritime College, New York, USA. Upon completion of the degree, the qualified officer will be expected to serve on board a Bahamian flagged vessel for at least 2 years.

Further information and application forms can be obtained from: Mrs. Katie Clarke, Assistant Director, Bahamas Maritime Authority, Shirlaw House, #226 Shirley Street, P. O. Box N-4679, Nassau, Bahamas; Website: www.bahamasmaritime.com OR Email: scholarship@bahamasmaritime.com Tel: +1-(242)-356-5772 Fax: +1-(242)-356-5889 Completed applications must be submitted in person or by post, with copies of academic certificates/transcripts and proof of Bahamian citizenship, no later than Friday, 29th September 2017. Qualified applicants will be contacted for interviews.

THE TRIBUNE

Friday, September 1, 2017, PAGE 3

Bahamian Brewery in 10th anniversary

BTC customers take advantage of services offered at its latest franchise, located in Hope Town, Abaco. The new location is one of seven franchise stores in Abaco.

Photograph Courtesy of BTC FOR BAREFOOT MARKETING

BTC EXPANDS ABACO FRANCHISES TO SEVEN THE Bahamas Telecommunications Company (BTC) has expanded its franchise retail network on Abaco to seven outlets, with the opening of its Hope Town store.

“We pride ourselves on being able to provide the best quality, products and services to our customers no matter where they live in the country” explained BTC’s northern vice-president, Eldri Ferguson-Mackey.

“That means residents in Abaco can have the same level of service as those on Grand Bahama and New Providence as well”.

BTC’s retail expansion has sought to empower Bahamian entrepreneurs through the introduction of franchise locations around the Bahamas.

Farren Newbold has become the latest to exploit this opportunity. His store, located in Hope Town, has been servicing customers for several weeks.

“I really wanted to fill a need,” said Mr Newbold.

“Some residents have had difficulties paying their bills on time or even just getting access to some BTC products and devices, so for me it was about being able to provide that access for the people here.”

“In the Abacos there are currently seven franchise locations servicing various communities,” said Ms Ferguson-Mackey, “and we work closely with our franchise owners to ensure that they have everything they need to manage customer needs.

“This truly is BTC country, and so we are extremely committed to the success of entrepreneurs. We work hand in hand with them to help provide a limitless experience for all BTC customers.”

BTC has created similar opportunities in Grand Bahama, with six franchises now operational there.

BAHAMIAN Brewery & Beverage Company’s premium stout beverage, Strong Back, was the recipient of the Grand Gold Award in the World Selection 2010.

THE Bahamian Brewery & Beverage Company is celebrating its 10th anniversary, having grown to a 125-strong staff and more than doubled its size in a decade.

Opened in 2007, the then40,000 square foot brewery started with just 14 employees. It has steadily expanded from an initial focus on Sands Beer, its core brand, to a 100,000 square foot brewery that produce eight beer varieties and one malt. It also has eight liquor stores spread across Nassau, Grand Bahama, Abaco and Eluethera.

With his family history rooted in the liquor and beverage business, founder James ‘Jimmy’ Sands had always dreamt of owning and operating his own brewery.

He saw the timing of the Bahamian Brewery & Beverage Company’s launch as critical to reducing the risk of the liquor industry being dominated by a foreign entity.

Grand Bahama was chosen as its location because of the favourable tax structure that would enable the infant brewery to compete, and prevent what Mr Sands saw as an emerging liquor monopoly.

As he prepared to open the company, he held a ‘Name That Beer’ competition to give Grand Bahama residents the opportunity to name what would become the brewery’s signature product.

“From the very beginning we knew that we wanted the Bahamian people to play a major role in how we branded our business.

Because we are a ‘Truly Bahamian’ company, it made sense for our customers to have the chance to participate in that way,” said Mr Sands.

The Brewery has since added product offerings such as the Sands Pink Radler; the low-calorie Sands Light; the ‘Kickin’ Chicken; Bush Crack Beer in two flavours; Strong Back Stout; and the High

Rock Lager named for the settlement in east Grand Bahama.

“We have fans of our products all over the world, and we are very grateful for that kind of support,” said Wellington Seymour, the brewery’s executive sales and marketing manager.

“Even more important to us is the sense of pride that all Bahamians can have knowing that one of their own is putting the Bahamas on the map in this way.”

To mark its 10-year anniversary, Bahamian Brewery & Beverage Company will give its fans and customers the opportunity to scratch and win over $10,000 in cash and prizes. The promotion, which launched this week at all Jimmy’s Wines & Spirits locations, will offer two chances to win for each scratch card - first a chance to scratch and win instant prizes, and then a chance to enter them for a $500 cash prize at the end of the month.

“This is a great opportunity for us to say ‘thanks’ to our local clients,” added Mr Seymour. “In addition to the daily chances to win, each person who buys a six pack of Sands, Sands Light and Sands Pink Radler will also be entered to win the grand prize - a free trip to Grand Bahama Island and VIP treatment at the concert of the year.”

“I’m very proud of what we have accomplished,” said Mr Sands. “The Bahamian Brewery and Beverage company continues to personify what it means to be a “Truly Bahamian” entity, and is proof of what can happen with Bahamians at the helm.”

BAHAMIAN Brewery & Beverage Company’s High Rock Lager was the 2010 recipient of the Monde Selection Gold Quality Award.

Photos courtesy of KEEN-I-MEDIA FOR BAREFOOT MARKETING

PAGE 4, Friday, September 1, 2017

Sir Franklyn targeting $10m Jack’s Bay raise From pg B1 present, on Wednesday.

Guests included Bahamas residents, including capital markets players, and persons from abroad.

He added that the project would “not be interested in raising less” than $10 million via RoyalFidelity, and suggested that Jack’s Bay might seek more depending on market appetite.

“I can confirm that we have retained a corporate finance house to provide investment banking services for us,” Sir Franklyn told Tribune Business.

“They have reported to us a degree of confidence that the offering, when made, will probably be well received.

“That was before some more recent developments that the public will learn about very shortly, and which we firmly believe represent a new day for Eleuthera. We are very optimistic. We believe the best days of Eleuthera are ahead of it.”

Tribune Business contacted Sir Franklyn after learning he had been pitching Bahamas-based finance

houses and investment banks with his plans for the Jack’s Bay project, seeking to raise capital in the local markets.

Suggesting that he would be seeking more than $10 million, he added: “We’d not be interested in less.

We may do more, but won’t be interested in less. We’ll see what plays out.”

Representatives from Bahamian investment banks and money managers were among those invited to Jack’s Bay on Wednesday, and Sir Franklyn confirmed: “We did have the privilege of hosting a good number of people from here and abroad.

“Some were from the capital markets, and others were international related to the development. The country will have specifics very shortly, and it’s because of that I say we’re very optimistic.”

The partnership with Tiger Woods golf course design firm, TGR Design, to develop a private club at Jack’s Bay - part of the Cotton Bay development, located at Rock Sound - was unveiled in March 2017.

BOB’s threat to Govt ‘contained for now’ - Moody’s From pg B1 hoped, I guess. Having said that, there were some issues affecting their ability to do the job they need to do, and we’ll see - as we do an assessment and take on those additional loans - what the best course of action is - whether we take on a full-time staff, or continue with the current arrangement.”

When Bahamas Resolve was created in October 2014 by the former Christie administration, it was given a government-appointed Board. However, its day-today running and operations were passed to the Deloitte & Touche accounting firm.

James Smith, Bahamas Resolve’s former chairman, argued that a full-time staff was not necessary as Deloitte had done “a lot of the heavy lifting”. He conceded that the accounting firm was “high priced”, but

suggested less work would be done if the Government tried to cut its fees.

Bahamas Resolve has been able to make the interest payments on the BOB bonds to-date, due to the proceeds from selling properties that secured the initial $45.2 million in net ‘toxic’ loans taken on in the first bail-out.

However, Mr Smith said efforts to obtain more asset realisations had been thwarted by a combination of a sluggish real estate market, difficulties in finding all supporting legal documentation, and the lack of co-operation from some delinquent borrowers.

He warned that the Government may have to step in and take over interest payments to BOB unless Bahamas Resolve enjoyed more success, something that has been picked up by Moody’s.

Unchecked spending boosted Govt deficit by 3.5% pts of GDP From pg B1 Budget updates or Budget speeches. This points to issues regarding fiscal data transparency and quality.”

Noting that the Christie administration had sought (and failed) to achieve a primary Budget surplus and reduce the deficit to a level that would ensure debt sustainability, Moody’s said Value-Added Tax’s (VAT) introduction had helped to raise revenues by 3 per cent of GDP in one year.

“Despite this strong contribution, fiscal deficits tended to be revised upwards relative to targets as revenues were overestimated and expenditures underestimated – the latter in part due to differences in terms of accounting for arrears,” Moody’s said.

The report confirms that the Minnis administration has much work ahead of it to restore the Bahamas’ fiscal credibility, and that doing so will be key to warding off a further ‘junk’ downgrade of the sovereign

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, JUSTINE VALDEZ HIGGS of Dunmore Town, Harbour Island, intend to change my name to JUSTIN VALDEZ HIGGS. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

NOTICE CJM BASSETT INVESTMENTS LIMITED (in Voluntary Liquidation) Notice is hereby given that the above-named Company is in dissolution, commencing on 28th day of August, 2017. Articles of Dissolution have been duly registered by the Registrar. The Liquidator is Bridgewater & Co., P.O. Box F-41572, Freeport, Grand Bahama.

All person having claims against the above-named Company are required on or before 28th day of September, 2017 to send their names and addresses and particulars of their debts or claims to the Liquidator of the Company or, in default thereof, they may be excluded from the benefit or any distribution made before such debts are proved.

Dated this 28th day of August, 2017 Bridgewater & Co. Liquidator

THE TRIBUNE Besides Mr Woods’ company, the other major international developer partner is US-based Beacon Land Development. Jack’s Bay Developers, the entity Sir Franklyn heads, is effectively a subsidiary of Eleuthera Properties Ltd, the company formed to develop the nearby Seashells at Cotton Bay development.

While the Sunshine Holdings group is Eleuthera Properties’ largest shareholder, its other investors include the likes of Colina, BAF Financial, the John Bull Group of Companies and Royal Bank of Canada (RBC).

Besides the corporate investors, the Anglican Church has been “gifted” shares in Eleuthera Properties Ltd, while the estates of the late John Morley and Billy Lowe were also among the shareholders.

Eleuthera links to the investors are through the estates of the late Albert Sands and Whitfield Kemp.

Another Eleuthera shareholder is businessman Lawrence Griffin from Governor’s Harbour, while Sir Orville Turnquest, the former governor-general, and his family are also invested.

Sir Franklyn yesterday told Tribune Business that Jack’s Bay would ensure south Eleuthera’s economic future will be brighter “than it has been in the last 35 years”.

Having been personally involved with efforts to redevelop and re-open Cotton Bay since 1985, the Sunshine Holdings chairman said the lessons learned across the administrations of four different prime ministers will stand Jack’s Bay in good stead.

“We are very optimistic that the future of south Eleuthera will be a lot better than it has been in the last 35 years,” Sir Franklyn told this newspaper. “The economy of south Eleuthera has really been in a state of continual decline for 35 years; that’s the reality.

“I’ve worked very, very hard for over 30 years to try and change that. During that period of time, we’ve learnt a great deal about why the Family Islands have not developed, and the challenges that cause the continued migration of people from those Family Islands to New Providence.”

Asked to explain these challenges, he added: “Doing business in the

islands is inherently more difficult than doing business in New Providence.

It’s substantially more costly, and raising financing has historically been nearly impossible. It’s just very, very difficult.”

Sir Franklyn said his Cotton Bay efforts covered the administrations of Sir Lynden Pindling, Hubert Ingraham, Perry Christie and, now, Dr Hubert Minnis. “All have tried to do something and it hasn’t worked because the problems are so intractable,” he added.

“I’m confident that the lessons we have learned have put us in good stead.”

Jack’s Bay is being designed as a private members’ club, and the location for the Caribbean’s first Tiger Woods-designed golf course.

Amenities will include features such as The Pink House, Pink Sand Bar, The Playgrounds and 10-hole, short golf course, designed

by TGR Design. Further facilities involve residential resort features such as oceanfront suites, cottages and villas.

Renderings of Jack’s Bay show it is intended to feature a beach club; five founders’ lots; 42 beach club suites; 46 cottages of

between 1,20-2,500 square feet; 47 estate lots with room for more later; a golf practice facility; and amenities for riding, hiking, biking and fishing.

One source familiar with the Jack’s Bay plans, speaking on condition of anonymity, told Tribune Business: “I think he [Sir Franklyn] has a more sustainable formula for developing it now, and I think they’re going to do it in modules.

“Some people are going to get houses going, and rather than spend $50 million to develop the whole project, they will spend $5 million on amenities, paving the roads, a spa and activities centre.”

The source added: “The principle of it is fine. It is part of Cotton Bay. It’s a beautiful piece of land; drop dead gorgeous.”

They questioned, though, whether there would be sufficient “appetite” for the RoyalFidelity-managed placement among longterm capital managers, such as pension funds and insurance companies, given that resort-based projects are typically viewed as a private equity or venture capital-type deal.

“While the assets transferred to Resolve have turned out to be worth less than the original $100 million valuation, the SPV has so far been able to generate funds to pay the bulk of interest on the promissory notes held by BOB,” the rating agency said.

“However, because proceeds from the asset sales have been lower than originally envisioned, Resolve is currently in the process of securing a government guaranteed long-term loan in order to retire the promissory notes, which start coming due this year.

This also allows Resolve additional time to sell the distressed assets.”

Moody’s confirmed that Bahamian taxpayers, via the Government, have todate spent more than $300 million on bailing out BOB, thus preventing its collapse. Apart from the $100 million and $166 million promissory note injections, in 2014 and 2017, respectively, the Public Treasury also injected a further $50 million in the past year by

taking up its full $40 million rights issue and adding $10 million via a convertible bond.

“To date, the Government has incurred minimal fiscal costs related to BOB,” Moody’s said. “If the transferred assets prove unsellable and/or Resolve is unable to secure other funding to pay BOB, the residual cost could migrate on to the sovereign’s balance sheet.

“However, in the near term (next three to five years) we view the likelihood of contingent liabilities from Resolve crystallising on the Government’s balance sheet as low. Moreover, we note that the Government is today the major shareholder for BOB, holding 58.6 per cent of the bank’s shares; the National Insurance Board owns another 24 per cent.

“Upon the latest transfer to Resolve, the bank should be well positioned to again make profits. Dividends, buybacks or other forms of profit-sharing with

shareholders would go into government coffers. These funds would help to offset fiscal costs to the Government were contingent liabilities from the Resolve SPV to materialise.”

The Government is supposed to redeem $107 million of the promissory notes now held by BOB before the June 30, 2018, end of this current fiscal year.

It was supposed to make a $50 million payment on August 30, followed by another $19 million on November 30, 2017. The balance will be paid in further quarterly instalments on February 28, 2018, and May 31, 2018.

The Government is making the redemptions on Bahamas Resolve’s behalf, recognising that the SPV has no possibility of doing this by itself because it has only managed to sell two properties.

Meanwhile, Moody’s also expressed fears that the debts owed by public corporations and agencies could impact the Bahamas’

fiscal position regardless of whether the Government had guaranteed them.

“A potential rising risk to the Government’s fiscal strength is the increase in the debt burden of stateowned enterprises (SOEs), which reached 17.5 per cent of GDP as of March 2017,” Moody’s warned.

“Although less than half of it is fully guaranteed by the central government, should these contingent liabilities materialise it would have an important negative effect on the Government’s balance sheet.

“Potential reforms to SOEs would be key to ensure that their finances improve, both to reduce the necessity of sovereign support and to decrease the current transfers the central government makes every year that impact its own fiscal deficit.”

The total debt owned by state-owned enterprises (SOEs) has nearly doubled in a decade, having risen from a sum equivalent to 9.2 per cent of GDP in 2007-2008.

credit rating when Moody’s revisits this nation in 12-18 months’ time.

K P Turnquest, deputy prime minister and minister of finance, argued earlier this week that it was “better to be honest and up front” with Moody’s and others over the Bahamas’ true fiscal condition. This, and the Government’s fiscal consolidation plan, appear to have provided the ‘breathing space’ necessary to determine whether this nation can now execute.

Meanwhile, Moody’s explained just why it believes the 2016-2017 deficit could be as high as 7 per cent of GDP or $636

million, compared to the Government’s own $500 million or 5.5 per cent.

With the Christie administration having forecast a deficit equivalent to 1.1 per cent of GDP or $100 million, Moody’s estimated that revenues lost to Hurricane Matthew and other issues had added a further 2.4 per cent or $213.6 million in ‘red ink’.

And ‘additional’ recurrent expenditure and capital spending had added a further 2 per cent and 1.5 per cent of GDP, respectively, or $178 million and $133.5 million. While the latter may have been influenced by Hurricane

Matthew repairs, the $178 million in extra recurrent spending is a little harder to explain away just through the storm.

Moody’s estimated that the Bahamas’ total debt-toGDP ratio will “stabilise” or peak this fiscal year at 80 per cent, up from 67.4 per cent as recently as 2015-2016.

“The deterioration in the Bahamas’ debt metrics has positioned the sovereign as one of the weakest in terms of fiscal strength within the ‘Baa’ category,” the rating agency added. “We estimate that its debt-to-GDP ratios will stabilise around 80 per cent in 2017-2018.

“The larger deficit will have a significant negative effect on government debt ratios in 2016-2017 and 2017-2018 due to the larger borrowing needs – the debtto-GDP ratio will rise close to 80 per cent from 67.4 per cent in fiscal 2015-2016.

“Following the onset of the global financial crisis, the Government of the Bahamas began posting large fiscal deficits that contributed to a significant accumulation of debt.

With the exception of fiscal 2010-2011, when [BTC] privatisation proceeds were used to pay down debt and finance part of the deficit, the fiscal shortfalls have exceeded 4 per cent of GDP. “Compounded with low economic growth, which led to falling revenue, an increase in government expenditure contributed to the deterioration of the fiscal accounts.”

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NOTICE

NOTICE is hereby given that JOSE NEIL ETIENNE of

Lewis St., Bain and Grants Town, New Providence, 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.

NOTICE

NOTICE is hereby given that SIMABON GEORGES of #10 Nassau Village, New Providence, 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 twentyeight days from the 25th day of August, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

JILIN Investment Group S.A. Company No. 1025491 (In Voluntary Liquidation) NOTICE is hereby given pursuant to Section 204 (1)(b) of the BVI Business Companies Act, 2004 that JILIN Investment Group S.A. is in voluntary liquidation. The voluntary liquidation commenced on 29th August, 2017 and Querube C. De Nuñez of MMG Tower, Ave. Paseo del Mar, Costa del Este, Panama City, Panama, has been appointed as the Sole Liquidator.

Dated this 29th day of August, 2017 Sgd. Querube C. De Nuñez Voluntary Liquidator

THE TRIBUNE

Friday, September 1, 2017, PAGE 5

FOCOL’s stock split to ‘spread the wealth’ From pg B1 “What I mean by that is there appears to be real demand for it. We’re trying to do all we can just to increase it.”

The ‘three-for-one’ stock split will mean that every existing FOCOL Holdings shareholder, as at record date September 7, 2017, will be entitled to another two ordinary shares for each one they currently hold.

Confirmation of the extra shares’ issuance will

be mailed to shareholders on September 14, which is when trading at the new, post-split price is expected to begin on BISX. FOCOL has yet to provide any details on the post-split price, although it is likely to be around onethird of the present $9.76.

Its authorised ordinary shares will increase from 160 million to 480 million, while those that are issued and in the hands of shareholders will rise from 33,893,153 to 101,679,459.

The company’s stock price has steadily increased to its current level, and Sir Franklyn added: “The company has enjoyed a pretty remarkable run in terms of increased profitability.

“We’ve gone from $6 to nearly $10 in a pretty remarkable period of time.

FOCOL is in a position where the capital markets think sufficiently of the company to drive the stock up significantly, and more people beyond the capital markets realise its impact upon the country.

“We’re trying to spread the increase in the company’s profitability and growth

prospects, and believe this is one way to do it.”

Stock splits are nothing new to the Bahamian capital markets, with Commonwealth Bank and Cable Bahamas two BISX-listed companies to previously implement this process the latter two years ago with the same ‘three-forone’ split.

They are typically done to make a stock in demand more affordable to investors, as well as broadening liquidity, boosting trading volumes and expanding the investor base.

Sir Franklyn yesterday said “companies that perform well” tended to carry

out stock splits, unlike poorer performers. “The company has had a good run, and we believe that run is sustainable,” he told Tribune Business.

“More people have shown increasing interest in the stock. If you go on BISX’s website, there are more people who want to buy the stock than want to sell it. There are more ‘Buy’ orders than ‘Sell’ orders, and no one wants to sell at less than the market price.

“That is a sound indication there is pressure for the stock price to go even higher. If no one wants to sell at the trading price, that’s a reasonable basis to

assume your stock price will go up rather than down.”

Sir Franklyn suggested that Bahamian interest in FOCOL Holdings as an investment had been raised by the company’s post-Hurricane Matthew performance, dealing with the short-lived panic over rumoured fuel shortages and the damage to Clifton Pier’s jetty.

“FOCOL played a very significant role in ending the pandemonium that reflected itself in the long lines at the gas stations.

FOCOL’s performance did not go unnoticed,” he said.

TAX OVERHAUL FACES RESISTANCE FROM FANS OF SOME DEDUCTIONS

By MARCY GORDON Associated Press

WASHINGTON (AP) — President Donald Trump and congressional Republicans have pledged to overhaul the nation’s complex tax code. To slash taxes, they say they’ll curb a web of expensive deductions and credits to allow more revenue to flow to the government.

Problem is, they’re likely to run into a wall of resistance from people and groups drawn together by a singular warning: Don’t touch my deduction.

Major cherished tax breaks — from deductions for mortgage interest and charitable donations to incentives for 401(k) contributions — have deeppocketed supporters and lobbyists who are sure to fight to preserve those benefits. They add up to hundreds of billions of dollars in lost potential revenue that could otherwise go to rebuilding roads and bridges or social programs or even to help finance broader

tax cuts for people and companies.

“On every single item, there’s a group out there ready to battle,” says Thomas Cooke, a professor and tax expert at Georgetown University.

This makes the outlook thorny for a tax rewrite effort this fall, a Trump priority that Republicans consider a political imperative looking ahead to next year’s midterm elections.

The collapse of GOP health care legislation raises the stakes for taxes, with Trump’s team offering an ambitious timetable.

“We’re on track to get this done by the end of the year,” Treasury Secretary Steve Mnuchin said Thursday in an interview with CNBC. The president and the GOP agree on the broad goals: Simplifying the tax code, lowering the rate for corporations from the current 15-35 percent range, and bringing relief for the middle class. But details have to be filled in.

“First, we need a tax code that is simple, fair and easy to understand,” Trump said Wednesday at a rally in Missouri. “That means getting rid of the loopholes and complexity that primarily benefit the wealthiest Americans and special interests.”

Among the seemingly unassailable benefits, the most cherished may well be the deduction of interest paid on mortgages. Touted as a pillar in the promotion of homeownership, the benefit cost the government an estimated $77 billion in the budget year that ended last Sept. 30, according to Congress’ Joint Committee on Taxation.

The benefit allows homeowners to deduct up to $1 million in interest payments on a primary (and a secondary) residence. It is fiercely defended by the National Association of Realtors, which spent $64.8 million on lobbying on various issues last year including the mortgage deduction, according to the Center for Responsive Politics.

Roughly 28 million Americans deduct mortgage interest from their income taxes, with the biggest concentrations in the high housing-cost states of California, New York, New Jersey, Virginia and Maryland, according to the Tax Policy Center, a joint venture of the Urban Institute and the Brookings Institution.

House Republicans say they’ve got a more efficient way to encourage home buying. Under their plan, the standard deduction would be increased from the current $12,600 for married couples filing jointly, for example, to $24,000.

They argue that a majority of homeowners would no longer choose to itemize deductions and claim the mortgage-interest benefit. They’d be better off using the bigger standard deduction.

Another possibility is halving the mortgage deduction to $500,000. That would surely set up a pitched battle.

IMPACT OF HOUSTON’S ECONOMY IS FELT WELL BEYOND ITS AREA

COMMONWEALTH OF THE BAHAMAS IN THE SUPREME COURT Common Law and Equity Division

By PAUL WISEMAN Associated Press

AND IN THE MATTER of The Mortgages Act, Chapter 156 of the Revised Laws of the Commonwealth of The Bahamas

THE Houston that was battered by Hurricane Harvey is an economic powerhouse whose influence reaches far beyond its region, leading many to worry about when its economy be able to stand up again.

Houston produces the plastic used in everything from sports cars to baby bottles and is part of a low-lying coastal region that supplies nearly a third of U.S. oilrefining capacity. As the fourth-largest U.S. city, with 2.3 million people, it is also headquarters for 20 Fortune 500 companies.

“There’s nothing being sold, nothing being manufactured and nothing being shipped in a city with a $500 billion economy,” says Patrick Jankowski, an economist with the Greater Houston Partnership, which promotes regional economic development.

“Nothing is happening in Houston except rescues and people watching people get rescued.”

“Greater Houston is a major engine of the U.S. economy,” IHS Markit says.

Its port is the second-busiest

in the United States. Its two airports handle 26 million passengers a year. And its world-class cancer center processes 13,000 cases a week, many of them booked by patients flying in from abroad.

If it were an independent country, Houston would boast the world’s 23rd-biggest economy, just below Sweden and just above Poland.

Forecasters aren’t yet sure exactly how high the economic damage will go, how far it will spread or how long it will last. The more than 50 inches of rain that flooded Houston left much of the city underwater and its manufacturing base all but immobilized.

Transportation — for residents, employees and businesses — is snarled.

Houstonians are trapped in their homes or in shelters, unable to get around because the roads are flooded. The Port of Houston is closed, and flights are still limited at Houston’s George Bush Intercontinental Airport.

Macroeconomic Advisers, a forecasting firm, calculates that economic damage from Hurricane Harvey could shave between 0.3 and 1.2

percentage points off the nation’s economic growth in the July-September quarter. Before the storm, the economy had been expected to grow at an annual rate of about 3 percent from July through September.

“The nation is going to find out how important Houston is to the rest of the economy,” Jankowski says “The dashboard in a Ford manufactured in Michigan or the plastic valve made in Indiana or the piece of costume jewelry in Rhode Island or a case for your computer in California — if it has plastic in it, it’s highly likely the plastic originated in Houston.”

Still, analysts note that the economic losses inflicted

by Harvey are likely to be recouped once Houston’s rebuilding begins. And some sectors of the area’s economic base may have been less damaged that initially feared.

Robert Gilmer, director of the University of Houston’s Institute for Regional Forecasting, notes, for example, that the area’s refineries and petrochemical plants mostly escaped serious damage and are likely to be running again within weeks.

2017 CLE/GEN/00278

IN THE MATTER of an Indenture of Mortgage made the 25th day of November, A.D. 2008 between Darren Darling and Shemeka Darling and Royal Bank of Canada

BETWEEN RBC ROYAL BANK (BAHAMAS) LIMITED (formerly “Royal Bank of Canada”) AND DARREN DARLING and SHEMEKA DARLING TO:

Darren Darling Shemeka Darling

Plaintiff

First Defendant

Second Defendant

TAKE NOTICE that an action has been commenced against you in the Supreme Court of the Commonwealth of The Bahamas by RBC Royal Bank (Bahamas) Limited (formerly “Royal Bank of Canada”), Nassau, New Providence, Bahamas, in which the Plaintiff ’s claim is set out in the Originating Summons filed in this action on the 7th day of March, A.D. 2017 seeking, inter alia, an order to direct you to deliver up possession of Mortgaged Property being ALL THAT piece parcel or lot of land on the Island of Great Exuma one of the Islands of the Commonwealth of The Bahamas and situate near and in the vicinity of the Settlement of George Town which said piece parcel or lot of land has such position shape boundaries marks and dimensions as are delineated on the plan attached to an Indenture of Conveyance dated the 8th day of January, A.D. 1971 made between Bahamas Acres Limited of the one part and CarlGustaf Knut Cederlund and Monica Cederlund of the other part and recorded in the Registry of Records in the City of Nassau on the Island of New Providence another of the Islands of the Commonwealth of The Bahamas in Volume 1753 at pages 337 to 343 and which said piece parcel or lot of land are Numbered Nine Thousand Nine Hundred and Seventy-eight (9978) in the Subdivision called and known as “Bahama Sound of Exuma Number Nine (9)” and is thereon coloured PINK to the Plaintiff within Twenty-Eight (28) days of the order and judgment for the sums outstanding under the Indenture of Mortgage dated the 25th day of November, A.D. 2008 AND THAT it has been ordered that service of the said Originating Summons filed herein be effected on you by way of this advertisement.

If you desire to defend the said action, you must within fourteen (14) days from the publication of this advertisement, inclusive of the day of such publication, enter an appearance in person or by an attorney either (1) by handing in the appropriate forms duly completed, at the Registry of the Supreme Court, Ground Floor, BAF Financial Centre, Marlborough Street, Nassau, Bahamas, or (2) by sending them to that office by post.

A copy of the said Originating Summons and Order of the Court may be obtained from the Supreme Court Registry, Ground Floor, BAF Financial Centre, Marlborough Street, Nassau, Bahamas, or from the Attorneys of the Plaintiff below mentioned.

Dated the 1st day of September, A.D. 2017 HIGGS & JOHNSON Ocean Centre Montagu Foreshore East Bay Street Nassau, New Providence, The Bahamas Attorneys for the Plaintiff

PAGE 6, Friday, September 1, 2017

THE TRIBUNE

US STOCKS JUMP AFTER REPORT OF STRONGER CONSUMER SPENDING

By MARLEY JAY Associated Press NEW YORK (AP) — U.S. stocks rose again Thursday as investors were pleased with a report that showed spending by U.S. consumers grew in July, along with wages and salaries. Health care and technology companies lead the way and the Nasdaq composite closed at a record high.

The Commerce Department said consumer spending grew at its fastest pace in three months.

Companies that sell everything from cosmetics to toys to shoes advanced as investors bet Americans would shop more. Biotech drug companies, drug distributors, and scientific equipment companies made some of the biggest gains in health care. Technology companies advanced for the fourth day in a row and closed at record highs. Gasoline futures continued to spike as Tropical Storm Harvey left large parts of oil drilling and refining and pipelines out of commission.

The Commerce Department said consumer spending rose 0.3 percent in July, the best showing in three months, as wages and salaries increased. Stocks climbed a day ago after the government raised its estimate of second-quarter economic growth. On Friday investors will look at the government’s monthly jobs report for data on employment as well as wages.

“The economy is gaining traction, and inflation at this stage is still modest,” said Quincy Krosby, chief market strategist at Prudential Financial. That’s been good for stocks, as low inflation and low interest rates make stocks

THE TEXAS state flag, right, flies outside the New York Stock Exchange, which has committed more than $1 million for Harvey relief efforts. U.S. stocks are rising in early trading, Thursday, Aug. 31, led by retailers and health care companies, after the Commerce Department said spending by consumers picked up in July. (AP Photo Peter Morgan, File) more appealing and securities like bonds less appealing.

Krosby added that other news, including a manufacturing survey from China, “helped underpin the notion that it is a global recovery in the economy.”

The Standard & Poor’s 500 index climbed 14.06 points, or 0.6 percent, to 2,471.65, its highest close in three weeks. That allowed the index to finish August with a tiny gain. The Dow Jones industrial average added 55.67 points,

or 0.3 percent, to 21,948.10. The Nasdaq composite gained 60.35 points, or 1 percent, to 6,428.66, above the record high it set in late July. The Russell 2000 index of smaller-company stocks picked up 13.95 points, or 1 percent, to 1,405.28.

Drugmaker Biogen gained $12.83, or 4.2 percent, to a twoyear high of $316.58 and Gilead Sciences rose to its highest price in more than a year as it moved up $2.51, or 3.1 percent, to $83.74.

Technology companies, which are trading at record highs, rose for the fourth day in a row. Alphabet, Google’s parent company, gained $11.61, or 1.2 percent, to $955.24 and Microsoft picked up 76 cents, or 1 percent, to $74.77.

Among retailers, Amazon gained $13.01, or 1.3 percent, to $980.60. Jewelry seller Tiffany added $3.75, or 4.3 percent, to $91.40. Tool maker Stanley Black & Decker picked up $4.22, or 3 percent, to $144.

After three days of losses linked to Tropical Storm Harvey, benchmark U.S. crude jumped $1.27, or 2.8 percent, to $47.23 a barrel in New York as the rains hitting the Gulf Coast began to abate. Brent crude, used to price international oils, added $1.52, or 3 percent, to $52.38 a barrel in London.

Already at two-year highs, wholesale gasoline prices climbed at an even faster pace as some refining operations and pipelines around the Gulf Coast region remained offline. The price of wholesale gasoline surged 26 cents, or 13.5 percent, to $2.14 a gallon.

Heating oil rose 8 cents, or 5 percent, to $1.76 a gallon and natural gas gained 10 cents, or 3.4 percent, to $3.04 per 1,000 cubic feet.

Campbell Soup skidded to a two-year low after the company said it expects sales to keep falling over the next year as consumers prefer fresh foods over its canned soups and bottled juices.

The company forecast a smallerthan-expected annual profit after it reported a weak fourth quarter that included disappointing sales of snack food. Its stock lost $4.05, or 8.1 percent, to $46.20.

Competitor Mondelez dropped 97 cents, or 2.3 percent, to $40.66 and Kraft Heinz gave up $1.18, or 1.4 percent, to $80.75. All of those companies have seen their stocks tumble this year.

Discount retailer Dollar General reported a bigger profit and better sales than Wall Street expected, but it said discounts hurt its profit margins. The stock had rallied since early July, but on Thursday it lost $4.17, or 5.4 percent, to $72.56.

Ex-DeVry dean to probe for-profit colleges; critics pounce

By MARIA DANILOVA Associated Press WASHINGTON (AP) — Education Secretary Betsy DeVos on Thursday picked a former official at an embattled for-profit university to head the agency’s unit investigating fraud at for-profit colleges, prompting criticism that the Trump administration was promoting industry interests.

Since taking office six months ago, DeVos has

moved to rescind two key Obama-era regulations that sought to deter for-profit colleges from misrepresenting its programs to students and failing to provide the education they need to get jobs after graduation. The department also has halted student-loan forgiveness in cases of possible fraud, causing a backlog of some 65,000 pending claims.

Announcing the appointment of Julian Schmoke Jr., a former associate dean at

DeVry University, as head of agency’s enforcement unit, the department cited his experience in higher education and said “he ensured the delivery of a quality education to students” at DeVry. Democrats said the decision underscores the administration’s close ties to the for-profit sector, pointing to Trump University, President Donald Trump’s for-profit school which was sued for fraud.

“This is a joke, right?” tweeted Senator Chris Murphy, a Connecticut Democrat. “Basically akin to nominating influenza to be the Surgeon General.”

Murphy weighed in Tuesday after the story was first reported by Politico.

The department defended its decision, saying in a statement to The Associated Press that Schmoke served only in an academic capacity at DeVry and was not involved in

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

BISX ALL SHARE INDEX: CLOSE 1,834.33 | CHG 0.57 | %CHG 0.03 | YTD -103.88 | 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 8.17 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 1.39 0.13 3.92 8.60 6.10 9.98 10.01 2.42 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 100.00 100.00 100.00 108.65 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

CLOSE 4.28 17.43 9.09 3.70 1.39 0.13 3.92 8.60 6.10 9.98 10.01 2.39 1.55 6.00 9.75 7.01 9.79 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 -0.03 0.00 0.00 0.00 0.00 0.04 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

108.93 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.28 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

67,925 220

2,400

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 23.4 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

YIELD 1.87% 5.74% 0.00% 5.68% 0.00% 0.00% 0.00% 3.49% 3.61% 3.61% 5.69% 2.51% 3.87% 4.83% 4.62% 0.00% 3.47% 2.00% 4.96% 0.00% 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

record as a dean at DeVry University speaks for itself.”

“Schmoke’s appointment gives us no confidence that the enforcement unit will fulfill its purpose in aiding defrauded students,” Abrams said.

Barmak Nassirian, an expert with the American Association of State Colleges and Universities, said the Trump administration has been very receptive to the needs of the industry.

NOTICE

MARKET REPORT THURSDAY, 31 AUGUST 2017

admissions, recruitment, or corporate administrative activities.

“Dr. Schmoke neither had any knowledge of or involvement in the settlement agreement between the university and the U.S. Department of Education,” the agency said.

Natalia Abrams, executive director of advocacy group Student Debt Crisis said that Schmoke lacks experience in regulation enforcement and “his track

YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225

NOTICE is hereby given that SIDNEY FRANCOIS of #54 Nassau Village, New Providence, 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

Friday, September 1, 2017, PAGE 7

TRUMP ADMINISTRATION SLASHES FUNDS FOR HEALTH CARE SIGN-UPS

By RICARDO ALONSOZALDIVAR Associated Press WASHINGTON (AP) — Affirming its disdain for “Obamacare,” the Trump administration on Thursday announced sharp cuts in programs promoting health care enrollment under the Affordable Care Act for next year.

Advertising will be cut from $100 million spent on 2017 sign-ups to $10 million, said Health and Human Services officials.

Funding for consumer helpers called “navigators” will also be cut about 40 percent, from $62.5 million for 2017, to $36.8 million for next year. That change reflects a new performancebased ethic that penalizes navigator programs failing to meet their sign-up targets, administration officials said.

About 12.2 million people signed up for subsidized private health insurance under Barack Obama’s signature law this year, many in states that President Donald Trump carried in November. Current enrollment is estimated to be around 10 million, due to attrition also seen in prior years.

Top Democrats accused the administration of malice.

House Minority Leader Nancy Pelosi of California said the administration is waging a “cynical effort to lower enrollment” that would “create chaos” and increase premiums.

Her Senate counterpart, Chuck Schumer of New York, said the administration “is deliberately attempting to sabotage our health care system,” adding that “the American people will know who’s to blame.”

It was unclear how Trump’s latest move might affect a planned effort in the Senate to craft bipartisan legislation that would stabilize insurance markets.

Trump and congressional Republicans have been unable to deliver on their vow to “repeal and replace” the 2010 health care law, but the president has repeatedly pronounced the program on the verge of collapse.

On Twitter and in interviews, Trump has threatened to give “Obamacare” a nudge by cutting off payments to insurers that help reduce consumers’ copays and deductibles.

Still, his administration has continued making payments month to month.

PRESIDENT Donald Trump walks from Marine One across the South Lawn to the White House in Washington. Affirming its disdain for “Obamacare,” the Trump administration on Thursday, Aug. 31, announced sharp cuts in programs promoting health care enrollment under the Affordable Care Act for next year. (AP Photo/Carolyn Kaster, File) Independent observers say the ACA’s insurance markets have problems, but are not about to implode.

For next year all U.S. counties will have at least one participating insurer, although consumers in close to half of counties will only have a single carrier serving them. Some major insurers

have left the program after taking deep financial losses.

HHS officials announced the promotional cutbacks in a conference call with reporters. The three officials who described the details of the cuts refused to be identified by name.

The administration says the government hasn’t

gotten much bang for its buck as far as ACA advertising and the navigator program, with some enrollment centers signing up very few customers.

By comparison, HHS said the combined advertising budget for Medicare Advantage and Medicare prescription drug plans is $9.7 million.

HHS officials said the 98 navigator programs funded by the ACA enrolled fewer than 82,000 people, or less than 1 percent of the total.

Navigator staffers are supposed to guide consumers through the sometimes complicated enrollment process, which involves estimating income for the coming year, proving citizenship or legal residence, and sorting through various health plan options.

For next year, officials said navigator funding will reflect each sign-up center’s prior performance. For example, if a navigator program met 70 percent of its enrollment target, it will get 70 percent of its previous funding. If it only enrolled 30 percent, its funding will be cut to 30 percent. However, every center will get some money from the government, even if it’s only a few thousand dollars.

“Judging effectiveness by the amount of money spent, and not the results achieved, is irresponsible and unhelpful to the American people,” HHS spokeswoman Caitlin Oakley said in a statement.

“During the upcoming enrollment period, navigators will be funded in proportion to their performance.”

HHS said only 1 in 5 navigators met their own performance goals. Officials said 17 programs enrolled fewer than 100 people each, although they did not identify whether those programs were in urban areas or less populated rural zones. One program got $200,000 and signed up one person, HHS said.

Adding to sign-up challenges, the ACA enrollment season will be considerably shorter for 2018, running from Nov. 1-Dec. 15.

Soon after taking office, the Trump administration pulled back some advertising for the 2017 sign-up season, angering Democrats, who requested an investigation by the HHS inspector general.

That probe has not yet been completed.

Apple expected to unveil next iPhones at Sept. 12 showcase SAN FRANCISCO (AP) — Apple’s faithful fans and investors won’t have to wait much longer to see what the iPhone maker has in store next.

The company sent out invitations Thursday to set Sept. 12 as the date for an annual post-Labor Day showcase.

As usual, the famously secretive Apple didn’t say what’s on tap, but this is typically when the

company unveils new iPhones.

Much of the anticipation is swirling around whether Apple will show off a dramatically different type of iPhone with a sleeker and even bigger screen to celebrate the device’s 10th anniversary.

Even if a fancier version is unveiled, Apple will also likely announce upgrades to last year’s iPhone 7 and iPhone 7 Plus.

It’s Apple’s first event at the Steve Jobs Theater at its new headquarters in Cupertino, California.

Apple’s invitation seemed to hint that something colorful is in store as it presented a multi-hued depiction of the company’s famous logo. That choice will likely spur speculation that Apple’s new phone will feature a screen with organic lightemitting diode, or OLED,

which will display more vivid colors than previous models. Rival phones from Samsung already use OLED. There have also been reports that the company intends to show off an upgrade to its Apple TV streaming box that will be capable of handling ultrahigh definition, or 4K, video.

THE APPLE logo at a store in Miami Beach, Fla. Apple has set Sept. 12, 2017, as the date for an annual post-Labor Day showcase. (AP Photo/Alan Diaz)

PAGE 8, Friday, September 1, 2017

THE TRIBUNE

EXPLOSIONS ROCK FLOOD-CRIPPLED CHEMICAL PLANT NEAR HOUSTON

By FRANK BAJAK AND REESE DUNKLIN Associated Press HOUSTON (AP) — At least 2 tons of highly volatile chemicals used in such products as plastics and paint exploded and burned at a flood-crippled plant near Houston early Thursday, sending up a plume of acrid black smoke that stung the eyes and lungs.

The blaze at the Arkema Inc. chemical plant burned out around midday, but emergency crews continued to hold back because of the danger that eight other trailers containing the same compound could blow, too.

No serious injuries were reported. But the blast added a new hazard to Hurricane Harvey’s aftermath and raised questions about the adequacy of the company’s master plan to protect the public in the event of an emergency in

THE ARKEMA Inc. chemical plant is flooded from Tropical Storm Harvey, Wednesday, Aug. 30, 2017, in Crosby, Texas. The plant, about 25 miles (40.23 kilometers) northeast of Houston, lost power and its backup generators amid Harvey’s dayslong deluge, leaving it without refrigeration for chemicals that become volatile as the temperature rises. (Godofredo A. Vasquez/ Houston Chronicle via AP)

floodwaters engulfed the backup generators and knocked out the refrigeration necessary to keep the compounds from degrading and catching fire.

All employees had been pulled from the plant before the blast, and up to 5,000 people living within 1½ miles had been warned to evacuate on Tuesday.

Two explosions in the middle of the night blew open a trailer containing the chemicals, lighting up the night sky with 30- to 40-foot (9- to 12-meter) flames in the small farm and ranching community of Crosby, 25 miles (40 kilometers) from the nation’s fourth-largest city, authorities said. Aerial footage showed a trailer carcass, its sides melted, burning in a flooded lot.

The Texas environmental agency called the smoke “especially acrid and irritating” and said it can impair

“This should be a wake-up call (for) all kinds of plants that are storing and converting reactive chemicals in areas which have high population densities”

HARVEY EXPLOSIONS 083017: Map locates Crosby, Texas; 1c x 2 1/4 inches; with BC-US--Harvey and related stories 7 a.m. Editor’s Note: It is mandatory to include all sources that accompany this graphic when repurposing or editing it for publication

the flood-prone Houston metropolitan area of 5.6 million people.

“This should be a wakeup call (for) all kinds of plants that are storing and converting reactive chemicals in areas which have high population densities,” said Nicholas Ashford, a Massachusetts Institute of Technology expert.

The Environmental Protection Agency and Texas environmental regulators called the health risks minimal in Crosby but urged residents downwind to stay indoors with windows closed to avoid inhaling the smoke.

Arkeda had warned earlier in the week that an explosion of organic peroxides stored at the plant was imminent because Harvey’s

Texas A&M chemical safety expert Sam Mannan said the risk management plan that Arkema was required by state and federal law to develop did not address how it would deal with power and refrigeration failures or flooding.

A 2016 analysis he did with university colleagues ranked the Crosby plant among the 70 or so facilities with the biggest potential to cause harm in greater Houston, based on such factors as the type and amount of chemicals and the population density.

Arkema, which is headquartered in France, did not immediately return calls on the plant’s contingency planning.

Rachel Moreno, a spokeswoman for the fire marshal

breathing and inflame the eyes, nose and throat.

Fifteen sheriff’s deputies complained of respiratory irritation. They were examined at a hospital and released.

The U.S. Chemical Safety Board, an independent federal agency, launched an investigation into the accident.

The plant is along a corridor near Houston that contains one of the biggest concentrations of refineries, pipelines and chemical plants in the country.

Andrea Morrow, a spokeswoman for the Texas Commission on Environmental Quality, said the agency had not received any reports of trouble at other chemical plants in the hurricane-stricken zone.

of Harris County, which encompasses Houston, would not discuss details of the risk management plan, such as how high the plant’s backup generators were placed.

Arkema officials did not directly notify local emergency managers of the generator failure, Moreno said. It came, instead, by way of the plant’s workers, who told the Crosby Volunteer Fire Department about it when they were rescued during the hurricane, she said.

On Thursday, Rich Rennard, an executive at Arkema, said the chemical compounds were transferred to refrigerated containers after power was lost. But he said those containers failed too, causing the chemicals in one unit to burn. Rennard said more explosions were expected from the remaining containers.

In February, the U.S. Occupational Safety and Health Administration fined Arkema nearly $110,000 — later reduced to just over $90,000 — over 10 serious safety violations found during an inspection at the Crosby plant, according to agency records.

Records obtained by AP show that Arkema had kept using some equipment even when safety systems weren’t working properly, and didn’t inspect or test it as recommended. In one unit, the company also didn’t ensure equipment there was safe or keep employees up to date on their training.