09102020 BUSINESS

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THURSDAY, SEPTEMBER 10, 2020

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make council ‘Serious foreign currency’ Don’t a ‘political football’ needed by 2020 year-end

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

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BAHAMIAN economist yesterday warned that The Bahamas will face “serious concerns” unless it earns “major foreign currency inflows by year-end” as uncertainties over tourism’s return persist.

Rupert Pinder, who also lectures at the University of The Bahamas, told Tribune Business that the domestic economy’s re-opening “cannot sustain” over the longer term without the US dollars provided by the tourism-dependent export sector to finance the country’s import bill.

Speaking after K Peter

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

• Economist: ‘We cannot sustain’ without inflows • External reserves hit $2.1bn as govt borrows • Concern over ‘value-added’ loss from tourism Turnquest, deputy prime minister, told the House of Assembly that The Bahamas’ foreign currency reserves presently stand at $2.1bn or 38 weeks’ worth of import coverage, Mr Pinder said the tourism industry’s re-opening model will seemingly take away the “value-added” benefits the industry has previously brought to the domestic economy.

He added that the “Vacation in Place” strategy, the euphemism for the 14-day quarantine that all visitors must undergo upon arriving in The Bahamas, effectively

transforms the tourism industry into an all-inclusive model where guests stay on property and do not venture out to let the wider community benefit from their spending.

While Mr Turnquest yesterday voiced optimism that domestic economy’s re-opening will be able to “carry” The Bahamas until tourism returns in sufficient strength, Mr Pinder argued that this will not be sufficient to sustain the external reserves and one:one fixed exchange currency peg with the US dollar indefinitely.

“Any reopening of the domestic economy without some serious inflows of foreign exchange cannot sustain,” he told this newspaper. “It’s not sustainable over the long-term. The economy produces very little, so there’s a heavy dependence on foreign exchange. It is what it is. We can talk about the domestic economy opening but we need those foreign reserves....

“If we don’t see some serious inflows by the end of the

SEE PAGE 8

Govt revenues 23% off due to lockdown

By YOURI KEMP and NEIL HARTNELL Tribune Business Reporters

THE deputy prime minister yesterday revealed August’s economic shutdown dropped government revenues 23 percent below projections as he warned the country “cannot afford” further lockdowns.

K Peter Turnquest, pictured, told the House of Assembly that the Public Treasury’s income for the first two months of the 2020-2021 fiscal year was equal to 77 percent of what had been forecast after much of the economy was closed in August in a bid to halt COVID-19’s further spread.

Giving an update on the government’s fiscal and economic plans, he warned that any further pandemicrelated lockdowns would

• DPM: ‘We cannot afford’ further shutdowns • Warns of trouble if no tourism ‘jump start’ • ‘No magic wand’ to marry health, economy

cause “significant and painful adjustments” to the fiscal forecasts.

And he acknowledged that the Ministry of Finance’s planners would face “a more troublesome scenario” come year-end if the tourism industry’s

Bahamas not a ‘fly by night’ borrower

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Ministry of Finance is taking the “if it sounds too good to be true, it probably is” approach to low-cost financing and other “no strings attached” offers, the deputy prime minister said yesterday.

K Peter Turnquest, asked

by Tribune Business to respond to concerns that the government is not taking advantage of attractive debt financing proposals, said The Bahamas as a sovereign

nation cannot afford to act as a “fly-by night” entity in evaluating any proposals that come its way.

He added that the country had to first carry out extensive due diligence to ensure those offering the government financing were credible and operated with integrity, and they have the necessary wherewithal to finance/arrange what they are promoting.

Mr Turnquest said The Bahamas can ill-afford to borrow from institutions

SEE PAGE 5

Regulator dismisses Cable, BTC warnings

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

REGULATORS have dismissed warnings by The Bahamas’ two communications providers that the imposition of preventative wholesale broadband Internet measures will deter future investment.

The Utilities Regulation and Competition Authority (URCA), unveiling its decision on the imposition of price regulation on what Cable Bahamas and the Bahamas

Telecommunications Company (BTC) charge smaller niche operators for bandwidth capacity, said this business only represented a “small share” of their business.

Suggesting that the two companies’ warnings were overblown, URCA said: “Concerning Cable Bahamas (and BTC’s) concerns on the potential adverse impact of the proposed regulation on SMP (significant market power) operators’ investment incentives and

SEE PAGE 9

re-opening from October 15 onwards fails to produce the “jump start” that the industry and wider economy so badly need.

Mr Turnquest promised to give a further update next month when then impact of tourism’s re-opening, and traveller demand for a Bahamian vacation, were clearer. COVID-19 infection rates and trends in this country’s major source markets, as well as in The Bahamas, will also be vital.

And, conceding that there was “no magic wand to reconcile” the sometimes competing health and economic objectives amid the COVID-19 pandemic,

the deputy prime minister urged all Bahamians to play their part in controlling the virus’ spread as “no one wants to live in or travel to a COVID-19 hotspot”.

“Although partial and complete lockdowns and curfews are effective in flattening the curve of the pandemic, and have been a necessary response in the interest of saving lives, early performance indicators for July and August clearly demonstrate their significant dampening effect on revenue receipts,” Mr Turnquest said.

“For the first two months

SEE PAGE 5

A FISCAL Responsibility Council member yesterday urged both the government and opposition not to make the body “a political football” after it became the focus for a House of Assembly confrontation.

Gowon Bowe, who holds the Bahamas Institute of Chartered Accountants (BICA) seat on the council, told Tribune Business that both political factions needed to take “a more mature stance” over the role it will play in validating the government’s fiscal performance and compliance with the Fiscal Responsibility Act. He spoke out after K Peter Turnquest, deputy prime minister, and his opposition shadow, PLP finance spokesman, Chester Cooper, traded blows over the council’s supposed failure to submit its report to the House of Assembly by July 31.

House speaker, Halson Moultrie, who ordered that some comments by Mr Cooper be struck from parliament’s record, ended the row by saying that since the council’s five members were appointed by himself he would write to Kevin Burrows, its chairman, to seek an explanation as to why the report had not been submitted by the deadline set out in the Fiscal Responsibility Act. Mr Turnquest said he previously explained to the House that the council’s report had been delayed as a result of COVID-19 and Hurricane Dorian “throwing everything out of whack” - a situation that still exists today.

Denying that there was any lack of transparency on the government’s part, he said it had also taken time to complete the now-settled

GOWON BOWE Memorandum of Understanding (MoU) with the council that sets out how the latter manages its affairs and interacts with the Ministry of Finance - particularly when it comes to handling sensitive non-public information.

Mr Bowe yesterday confirmed that the council’s long-awaited MoU had been completed bar the signatures as he urged both sides in the House of Assembly not to politicise its role and work.

“I know this is going to become a political football between the government and opposition,” he told this newspaper. “Both sides need a more mature stance.

“The government does not need to be defensive on what’s happening, and equally on the opposition side there’s no need to create conspiracy theories.

The politics of the Fiscal Responsibility Act need to be set aside by both government and opposition.”

Mr Bowe emphasised that the council’s role was “not going to be the protector or arbiter of what fiscal policy should be”, but rather to assess whether the government is in compliance with the Fiscal Responsibility Act and if it has met its fiscal objectives for a particular year.

And he reiterated that there were provisions in the Fiscal Responsibility Act

SEE PAGE 9

PAGE 2, Thursday, September 10, 2020

THE TRIBUNE

BAHA MAR SPENDS $50M ON SUPPORTING WORKERS

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Bahamas’ two flagship mega resorts yesterday confirmed they are still assessing their possible re-opening timelines even as the government presses ahead with the sector’s October 15 return.

Graemme Davis, Baha Mar’s president, told Tribune Business: “We appreciate the Ministry of Tourism’s efforts and steps to strategically reopen The Bahamas in a way that is safe for associates, community and guests.

“Baha Mar is actively monitoring key indicators on a local and global scale to determine the best date for our reopening. Ease

welcome visitors again, but have to ensure it is done in a secure and economically sustainable way that is conducive to the continued success of

improving associated practices and awareness.

Cyber attacks, and network breaches, are often acts of opportunity. This reality makes it increasingly difficult to manage and mitigate. However, governance, risk and compliance strategies, once carefully crafted, can manage enterprise risk management and compliance with industry regulations. However, these strategies will differ from institution to institution. These differences are based on the risks faced, the data that requires protection and the regulations governing the respective institution.

Institutions normally grapple over whether to adopt an integrated or ‘silo’ approach to governance, risk and compliance (GRC). The design of a company’s GRC framework is critical, as both technical and organisational disciplines must be considered along with their fusion or lack thereof.

The failure of an institution to establish a framework that governs its operations, manages its security risks (cyber or information security), and ensures all actions are compliant with mandatory industry regulations can be a delicate balancing act for many.

John Bandler, founder of the New York-based Bandler law firm, writes: “Realise that cyber security focuses on Internet-based threats that attack digital data, and is part of the broader discipline of ‘information security’, which also includes physical security, environmental controls, business continuity,

disaster recovery and data governance.

“There is no need to spend hours debating the difference between ‘cyber security’ and ‘information security’. Simply address them comprehensively.

Information security contemplates disasters such as floods, earthquakes, fires or even terrorist attacks.

Such planning is not only required by regulation but is what can enable an organisation to survive such events.”

Here are three tips for building a successful GRC framework: 1. Understand the current position of your company.

Complete an assessment of all policies, procedures and regulatory environments to ensure gaps are identified and corrective action plans are created and monitored.

2. Ensure role and responsibilities are clearly defined and assigned 3. Awareness, training and monitoring must be implemented at every level of the company to create an

BAHA MAR RESORT of travel restrictions, the number of COVID-19 cases in our community and international markets, as well as willingness to travel and demand, are all essential

Cyber security must be in tune with governance

BY DEREK SMITH

To advertise in The Tribune, contact 502-2394

factors in our decision on when and how to resume operations. “ Mr Davis added: “We are eager to welcome our associates back to work and

the resort destination.

“Since closure in March, Baha Mar has provided more than $50m in ex-gratia and severance payments, and maintained full medical benefits for all of 3,500 remaining associates,” he said.

He continued: “While operations have been suspended, construction on the resort’s $300m expansion has recommenced.

The property’s Phase II evolution includes the development of Baha Bay, the resort’s luxury, beachfront aqua adventure experience, alongside amenities such as Mini Blue, an 18-hole miniature golf course, new retail stores including Tory Burch, Mont Blanc and Christian Louboutin, as

RISKS are increasing daily across every aspect of business, health, commerce and the country. This has left companies with the daunting task of reviewing their compliance, risk, information security and anti-fraud frameworks, and

well as fan-favourite Sugar Factory and a new dining concept by celebrity Chef Marcus Samuelsson.

“The continuation of this expansion is an investment into the future, a sign of confidence and a promise that Baha Mar is doing everything possible to create the perfect platform for a successful reopening in the future.”

Atlantis said it was “evaluating” its opening timeline, and “an announcement of a specific date will be forthcoming contingent upon definitive protocols and guidelines for all open issues. While we are not going to comment on those open issues today, we can say with confidence that we are working through them”. environment of knowledgebased decisions.

In this two-part series, I will address key aspects of a robust GRC framework and how it interacts with cyber security. The need for synergies is inheren,t although many frameworks overlook the requirement that best practices need GRC to be in sync with cyber security.

NB: Derek Smith Jr is a compliance officer at a leading law firm in The Bahamas, and a former assistant vice-president, compliance and money laundering reporting officer (MLRO), at local private bank. His professional career started at a ‘Big Four’ accounting firm and has spanned over 15 years, including business risk management, compliance, internal audit, external audit and other accounting services. He is also a CAMS member of the Association of Certified Anti-Money Laundering Specialists (ACAMS).

FOUR TOURISM CHIEFS TO OUTLINE RECOVERY PATH

JOY JIBRILU FOUR tourism directorgenerals will address how The Bahamas can rebuild its major industry amid the COVID-19 pandemic on a television broadcast on Wednesday, September 23.

The Financial Voice (FV), which is produced by the TCL Group, will bring together via a virtual forum the Ministry of Tourism’s present director-general, Joy Jibrilu, and previous office holders Sir Baltron Bethel (1978-1992); Vincent Vanderpool-Wallace (1992-2005); and Vernice Walkine (2005-2010).

TCL Group said its Rebuilding Bahamas tourism programme is dedicated to the late David Johnson, a 45-year tourism industry veteran and director-general from 2010-2014, and will also commemorate World Tourism Day on Sunday, September 27. It will also be streamed over the internet.

Joan Albury, the TCL Group’s president, said: “It is projected that there will be a travel surge post-COVID, which makes sense after worldwide lockdowns. It is urgent to discuss this and

VERNICE WALKINE

VINCENT VANPERPOOL-WALLACE

strategise now—hence this latest Financial Voice forum, presented virtually to respect social distancing.

“TCL is most grateful to these four outstanding tourism leaders for agreeing to join us in exploring the critical topic of rebuilding Bahamas tourism. Nothing can be more timely or urgent. The industry is our country’s primary income earner, and exercises a huge multiplier effect on the entire economy. This topic will also be the focus of a number of TCL shows over the next couple of weeks. The matter is that important.

“Each presenter is an accounted expert in the field

SEE PAGE 4

THE TRIBUNE

Thursday, September 10, 2020, PAGE 3

DPM WARNS BUSINESSES TO PASS THROUGH VAT SAVINGS

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE deputy prime minister yesterday urged consumers to alert the tax authorities and take their business elsewhere if retailers failed to pass on savings from the VAT back-toschool holiday.

Speaking during a virtual press conference yesterday, K Peter Turnquest said: “I do note some queries and concerns about some businesses not passing the VAT concession on to customers.

“Let me say that the Order is very clear as to what happens, and those savings are to be passed

$10m to clear small business ‘backlog’

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE deputy prime minister yesterday pledged that a further $10m will be released “very shortly” to clear the backlog of small business applicants seeking COVID-19 funding assistance.

K Peter Turnquest, giving the House of Assembly an update on the Ministry of Finance’s response to the fiscal and economic crisis produced by the pandemic, confirmed that the latest financing round will take the government’s support of entrepreneurs, micro firms and small businesses through the Business Continuity Loan initiative to $49m.

With $39m already distributed to some 545 enterprises, Mr Turnquest said: “We know there are many more in the pipeline that are awaiting their funding. I can say we are in the process of disbursing another $10m through the

on to consumers. I want to say to consumers: Use your purchasing power. If businesses are not passing savings on to you, report it to the Department of Inland Revenue and take your business elsewhere.

“This is a programme to benefit the consumer, not the business, as VAT is a pass-through consumption tax, so business entities themselves are not intended to profit from these concessions.”

The VAT ‘back-toschool’ holiday, which began on August 31, is structured to provide ‘zerorated’ tax treatment. This means retailers and other suppliers pay no VAT on

the school products they purchase, while also not imposing the 12 percent levy on prices they charge consumers.

The initiative was introduced as a way to boost sales for Bahamian retailers by making their prices more competitive against their Florida rivals, thereby encouraging Bahamians to shop at home and reduce foreign exchange outflows at a time when the external reserves are under pressure from the absence of tourism inflows.

Mr Turnquest, who did not give any specific examples of companies failing to pass on the VAT savings, also suggested that

Small Business Development Centre (SBDC) very shortly, and that will help to clear out the backlog of applications in the system awaiting funding.

“This programme has been so inspirational to so many to help them get into business and stay in business during this very critical time, and inspiring the spirit of entrepreneurship we’ve waited for for so long in this country.”

The deputy prime minister further talked up the impact from the Business Continuity Loan initiative by saying it will help undergird a “diverse base of entrepreneurs rather than have wealth concentrated in a minority”.

Tribune Business previously reported that fresh Business Continuity Loan financing was tied-up with the bridge financing anticipated from multilateral lenders such as the InterAmerican Development Bank (IDB) as part of the government’s 2020-2021 budget financing plans.

This has now been received, and will enable the government to fulfill its promise to direct $55m towards small businesses and entrepreneurs in the current fiscal year.

The SBDC said last month it had stopped taking new applicants from June

15, and was concentrates on distributing the $38.264m in loan and grant funding already approved. Some 63 percent of initial applicants had already received their second funding tranche by then.

“As of June 30, however, the government disbursed $39m to SBDC for its business continuity and other programmes,” Mr Turnquest said. “Approximately 545 small businesses and entrepreneurs benefited directly from the SBDC’s COVID-19 business continuity initiative...

“Collectively, these businesses represented 4,304 jobs, which were protected because businesses were able to use the proceeds to support their operations, and to help meet payroll.”

Marlon Johnson, the Ministry of Finance’s acting financial secretary, yesterday said the Business Continuity Loan initiative and tax credit/deferral programme had managed to save a combined 13,308 jobs between them by enabling businesses to stay open and meet payroll costs.

He added that the latter programme, which is set to end in October, has to-date aided some 80 businesses through the provision of $22.9m in tax credits and

SEE PAGE 5

the government may make progress on mortgage and rental relief/assistance for Bahamians genuinely impacted by the COVID19 crisis before year-end or going into the 2020-2021 fiscal year’s second half.

However, no details were provided, and he conceded that “striking a reasonable and fair balance” between the interests of landlords and lenders on one side,

and tenants and homeowners on the other, was “a complicated matter”.

Meanwhile, Marlon Johnson, the acting financial secretary, who also co-chairs the government-appointed Economic Recovery Committee (ERC), said the body was likely to provide recommendations surrounding how a sovereign wealth fund could be structured and deployed in The Bahamas.

Legislation to facilitate the creation of such a fund was passed by the former Christie administration in anticipation of Bahamas Petroleum Company’s (BPC) oil exploration activities generating royalty earnings for this nation - a windfall that has yet to materialise, although the first well is now supposed be drilled by April 2021.

PAGE 4, Thursday, September 10, 2020

FOUR TOURISM CHIEFS TO OUTLINE RECOVERY PATH FROM PAGE TWO

of tourism and rightly so.

Each, during his or her tenure as director-general, has demonstrated amazing skill and fortitude in leading the industry through world crises that have brought about some of the worst economic downturns in our history—the 1990s Gulf War, the global financial meltdown of 2008, Hurricane Dorian and now the COVID-19 pandemic.”

Ms Albury added: “In 2019, the current directorgeneral, Joy Jibrilu, was recognised by Caribbean Travel Awards with the prestigious title of Caribbean Tourism Director of The Year for her ‘expert stewardship and deft handling of the post-Dorian climate in The Bahamas’.

“It is noteworthy, too, that Sir Baltron Bethel, the first title holder, is credited as the father of Bahamas tourism’s modernisation.

He also served for a time as chairman of the Caribbean Tourism Organisation.

Vernice Walkine, the first woman to be appointed director-general, is now continuing her contributions to the field of travel and tourism as president and chief executive of Nassau Airport Development.

“Vincent Vanderpool-Wallace is principal partner of the Bedford Baker Group, which provides services in travel, tourism and hospitality. He

has served as co-president of Resorts International, then the largest private company in The Bahamas, as director-general of tourism, as secretary-general and chief executive of the Caribbean Tourism Organisation, and most recently as minister of tourism of The Bahamas. He has also served as chairman of the Hotel Corporation of The Bahamas.”

Detailing the inspiration for the upcoming forum, Mrs Albury added: “Back in April we were very much impressed by a comment Mr Vanderpool-Wallace made on the current tourism crisis.

Contributing to the InterAmerican Development Bank discussion on the Caribbean and coronavirus, he said: ‘If we want to get back into business we have to pivot and find a way to move very rapidly from predicting rain to building arks. We have to begin to look at ways to get tourism to come back sooner rather than later’.

“There are questions we need to ask now and widely— not only of government, but everyone. Every economic sector, every Bahamian must take responsibility if we are to be successful in reviving tourism. How can Bahamas tourism position itself to be a primary benefactor of any upturn in international travel? Innovation and fast, well-targeted action is what we at TCL believe.

“Consequently, the centre point of the upcoming forum

THE TRIBUNE will be innovation. How do we ensure consistent high quality service to our guests?

What do we change, what do we keep? Should we develop new niche markets, or do we pay more attention to growing and refining proven niche markets, such as fly fishing, sailing, nature and heritage tourism? Do we, as Sir Baltron Bethel noted a few years ago, put great emphasis on ‘the type of resort where you can just get away from it all and focus on nature’?” she continued.

“How do we extend Family Island tourism in a way that increases revenue while protecting and preserving heritage and environment? How do we ensure that more Bahamians benefit from tourism and attain real ownership in the industry?

How do we increase linkages between local agriculture and manufacturing to keep more dollars in The Bahamas?

“Tourism is of vital importance to The Bahamas. As the Bahamas Investment Authority notes: “Tourism is big business in The Bahamas, and a mainstay of the economy, contributing nearly 40 percent to the country’s total gross domestic product.

“An estimated $1.3bn is spent annually by more than 3.2m visitors, which supports roughly half the labour force and produces 70 percent of the government’s tax revenue…Based on its growing capacity to create jobs, earn foreign exchange and generate income, tourism is expected to remain the dominant industry of The Bahamas for the foreseeable future’.”

TOUR PROVIDERS IN ‘TOUGH SPOT’ DESPITE REOPENING

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

TOUR and excursion providers yesterday said they remain “in a hard spot” and are not upbeat about their proposed November 1 re-opening given the numerous uncertainties that tourism faces.

Nicholas Pinder, general manager of Born Free Fishing Charters, told Tribune Business: “I don’t know if it’s a matter of how much longer you could take; it kind of depends on if we can get the assistance from the government.

“We’re unable to work.

We cater to tourists, and until you get tourists here, you can’t work. The risk of bringing the tourists is you are going to bring the disease, so we are in a hard spot either way.”

Asked whether his employees had received benefits from the National

Insurance Board (NIB) and the government, Mr Pinder said: “All of our guys are self-employed. It’s a struggle, it’s rough and the small business man needs assistance to stay open so that when the borders open we will be in business and able to operate, so we don’t have that risk of having to start up again.

“The thing is if you close down it is going to be twice as hard to reopen, and most of the companies that I know and myself are trying to stay open. But to maintain a company to stay open, for us, we have 14 boats. You have dockage, you have insurance that has to be paid and we have zero revenue.

“The way the orders are written you can’t even really cater to Bahamians.

A family of four can’t go on a fishing charter the way the orders are written. We can’t take them to a beach the way the orders are written.

They are very unclear.”

Dionisio D’Aguilar, minister of tourism and aviation, said on Monday that his ministry was recommending an October 15 re-opening for hotels and their beaches, with tour, excursion and attraction

providers to follow on November 1.

However, multiple uncertainties remain, not least whether sufficient numbers of travellers will want to come to The Bahamas given the mandatory 14-day requirement to quarantine or ‘vacation in place’ and not go off-property.

That stipulation also means reduced business for many independent, nonhotel tourism providers.

And, while there are signs that infections are either “flattening” or declining in The Bahamas’ major US source markets, the growing number of cases in this nation hardly presents the picture of a nation that is COVID-19 free.

Another tour operator, speaking on condition of anonymity, said: “To be honest with you, I have checked out. That is the simplest way I can put it. NIB is still holding up and my guys are still getting that, whatever the trickle is for them, but I have checked out of it. I don’t have any hopes or expectations or anything on this. That’s where I am.

“If it opens back up then you can give me a call back and talk about it, but I have totally checked out.”

THE TRIBUNE

Thursday, September 10, 2020, PAGE 5

Govt revenues 23% off due to lockdown

FROM PAGE ONE

of the fiscal year, total revenue came in at approximately 77 percent of the budget projection for the related period, largely reflecting the slowdown in economic activity in August, as a result of the lockdown.”

He added that government spending was also slightly higher than forecast as the full range of government welfare initiatives kicked-in, including unemployment benefits, food assistance and business support.

All this adds up to a higher than-projected fiscal deficit for the first two months of the 20202021 fiscal year, but Marlon Johnson, the Ministry of Finance’s acting financial secretary, told Tribune Business that no dollar figures are being provided because the government’s cash-based accounting means reconciliations are still being carried.

Mr Turnquest, meanwhile, said the 2020-2021 budget has always been based on expectations that there would been little to no activity during the 2020-2021 fiscal year’s first quarter, with then industry only seeing signs of life in October/November - a scenario that now appears to be playing out.

“The necessary but protracted shutdown in August had a significant impact on the business community and has caused some deviation to our initial revenue forecasts for that month.

Further, a failure to jump start tourism before the end of the year would likely result in a more troublesome scenario,” he added.

Voicing hope that tourism will be able to re-open safely, and that there is “pent-up demand”, Mr Turnquest conceded: “There is no denying, however, that what happens in the global and domestic economy over the next few months will have a significant impact on the

way forward and on the possible adjustments the government may have to contemplate.....

“As a country, we cannot readily afford more protracted lockdowns without significant and painful adjustments to the government’s fiscal plan..... Public anxiety about the economic crisis is real and valid; however, if lives are at stake, public health priorities must take precedence.

“If our cases continue to increase that, too, will dampen consumer demand, participation in the economy and curtail any visitor arrivals. No one wants to live in or travel to a COVID-19 hotspot, particularly one that is offshore with medical facilities that are already taxed by local demand,” he reiterated.

“Unfortunately, there is no magic wand to reconcile the public health and the economic welfare objectives amid a global pandemic.

We must tackle and achieve success on both fronts by working together.”

Mr Turnquest’s address yesterday contained little that was new, and represented more a summary of the Ministry of Finance’s progress to-date, something that was not lost on his opposition shadow.

Chester Cooper, the Progressive Liberal Party’s (PLP) deputy leader and finance spokesman, said: “The minister of finance’s report to the House of Assembly on the country’s fiscal affairs today provided no new information.

“As governmental social assistance programmes have weeks left before they run out, and people are anxious about losing that little help, the minister says he’ll maybe say something about this at a later date.

As small and medium-sized business owners who were forced to shut down in July and August are still reeling, there was not much additional hope offered for them either.”

Bahamas not a ‘fly by night’ borrower FROM PAGE ONE that are “not financially sound”, and which would seek to call-in the loan if they ran into difficulties - something that could place this nation in dire fiscal straits.

“We review these offers of financing and debt write-offs, and paying our debt with no strings attached, all the time,” Mr Turnquest said. “The old adage applies: ‘If it’s too good to be true it probably is’.

“As a sovereign nation, we are not a fly-by night small entity that can allow itself to be held at the mercy of any kind of these institutions. We have a very sophisticated debt management unit, staffed by competent professionals,

that evaluates each and every offer.”

He spoke out amid suggestions that the government may be ignoring low interest rate offers to finance its $1.3bn deficit for the 2020-2021 fiscal year. One offer seen by Tribune Business involves the a $750m foreign currency bond, priced at 3.87 percent interest, that is placed “with a major international bank” and funded by the global capital markets.

The offer, which was conveyed to Mr Turnquest on September 3, 2020, and copied to the Ministry of Finance’s acting financial secretary, Marlon Johnson, and ex-Central Bank governor, Wendy Craigg, came from Public Resources International, a

US-based debt advisory firm that has worked on restructurings and other matters with governments before.

“PRI has been engaged by the World Bank/IMF to implement debt settlements for seven countries, including Bolivia and Honduras in Latin America,” the company said of its credentials. “PRI has also carried out important financial assignments for Antigua and Barbuda, Grenada (including funding for a desalination plant through US Export-Import Bank), St Kitts and Nevis, and St Vincent and the Grenadines.”

However, the proposed bond would carry a “floating” rather than fixed interest coupon. Yet PRI argued that this still produced a 3.5 percentage point savings rate for The Bahamas compared to the likely 7.5 percent fixed rate such a bond would attract, thereby cutting the interest bill for Bahamian taxpayers.

It added that The Bahamas would be able to refinance the

bond “without penalty” after three years, and said: “There is no floating rate risk for at least three years as the floating rate would have to increase 3.5 percentage points before fixed rate at 7.5 percent [making it] more advantageous than floating rate. No reputable economist considers this to be likely.”

Mr Turnquest confirmed that the PRI offer was one being evaluated by the Ministry of Finance. And Mr Johnson added: “The government gets any number of offers from people wanting to lend them money. We literally get dozens per year.”

Meanwhile, the fate of the government’s COVID-19 individual and business assistance initiatives that are due to expire at end-September will depend on the resources left and how many persons go back to work as a result of tourism’s planned re-opening, the deputy prime minister said yesterday.

$10m to clear small business ‘backlog’ FROM PAGE THREE deferrals to enable them to finance payroll and keep some 9,004 workers employed.

The tax deferrals and credits are split 50/50, meaning that $11.45m worth of deferred tax payments will have to be paid back by those 80 companies in 2021 via a 12-month payment plan to be agreed with the government.

The Business Continuity Loan initiative and tax credit/deferral programme have to-date cost the government a combined $61.9m, notwithstanding that the $11.45m worth of

deferred taxes will have to be paid during the next calendar year.

Mr Johnson, meanwhile, said a significant portion of the new $55m targeted at small businesses will “ensure that as the economy opens up they can open”.

He also promised that there will be “a lot more activity around digital government.

“You’ll start to see a lot more government agencies where people are able to access and do what they need to do online or digitally,” he added. “Citizens will be able to engage the government in a more efficient way and it sets up the country to recover in a much more efficient way.”

PAGE 8, Thursday, September 10, 2020

THE TRIBUNE

‘Serious foreign currency’ needed by 2020 year-end FROM PAGE ONE year, in my view there will be cause for serious concern. I really think you’re banking on tourism opening up in a significant way by October/ November this year to get some of these inflows, but in the absence of that, by the end of the year we will have some problems.”

Dionisio D’Aguilar, minister of tourism and aviation, and his ministry team said on Monday that tourism will likely enjoy a “slow rampup” once hotels re-open on October 15, with much of the rest of the industry following on November 1, even though market research suggests there is strong pent-up

demand for a Bahamas vacation.

The strength and timing of any tourism rebound remains key to the Bahamian economy’s near-term fate given that the industry remains the country’s prime source of foreign exchange, jobs and economic growth, with diversification and the development of new sector a medium to long-term goal.

However, much depends on the willingness of potential travellers to come to The Bahamas given the 14-day “vacation in place” requirement, multiple health protocols that must be cleared and the continued growth in COVID-19 infections here.

Mr Pinder, meanwhile,

Position Available An established company is presently considering applications for a Diesel Mechanic.

The position is open to candidates who possess the following qualifications:

Education and Experience

argued that re-opening the domestic economy will also impose more pressure on the external reserves as this activity leaks out in the form of new inventory purchases.

And, while the government’s planned foreign currency borrowing will help to shore up the reserves short-term, increased US dollar debt will act as a longer term drain as more reserves are required to service interest.

Acknowledging that The Bahamas and its government are in a very difficult situation, he said tourism’s re-opening model was likely to concentrate the benefits in the hands of hotels and other facilities suitable for “vacation in place”.

“It sounds good,” he added of the strategy, “but the reality of tourism’s impact on the domestic economy comes by way of people’s ability to move around. What is the impact to the domestic economy, you tell me, if I have to vacation in place for 14 days?

“Maybe there’s some employment and benefit for the resorts, but the minus comes by way of valueadded. That’s the way the domestic economic benefits;

moving around to dine and shop. That’s where the valueadded really comes in, and I don’t see where this really creates the value-added.

The impact on the domestic economy is quite limited.”

K Peter Turnquest, deputy prime minister, yesterday acknowledged concerns that tourism’s return might be “slower than expected”, and the impact this could have for the government’s economic and fiscal forecasting.

He also acknowledged that economic diversification would take some time to achieve and, with no shortterm alternative to tourism, cautioned Bahamians about “swinging for the fences” and ignoring the domestic economy.

“We’ve been making investments in small and medium-sized enterprises to ensure that if all else fails we will have a strong and robust domestic economy that’s going to protect jobs, is going to protect income for persons taking advantage of all these opportunities that we expect,” Mr Turnquest said.

“If tourism is going to be down, there’s going to be more demand for domestic products. People are going to have to buy at home, shop at home, go to restaurants etc. As we anticipate tourism not producing as much, we’ll look to the domestic economy to receive a boost

Minimum of 5 years professional experience.

Must be computer literate.

Must be knowledgeable about repairing Caterpillar, Mack, Sterling engines etc.

Job Description

Correct equipment deficiencies.

NOTICE is hereby given that JELIANIE TOUSSAINT, Queen’s Highway, Palmetto Point, Eleuthera, 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 10th day of September 2020 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

Make adjustments and alignments.

Perform record keeping.

Personal Attributes Must have ability to identify priorities, meet deadlines in a timely manner.

Able to collaborate with other team members.

Must possess good communication skills.

Must be able to multi-task.

Qualified Applicant may send resume to nassaurecruitment@gmail.com

NOTICE

MARKET REPORT www.bisxbahamas.com

(242) 323-2330

WEDNESDAY, 9 SEPTEMBER 2020

(242) 323-2320

ALL SHARE INDEX: CLOSE: 2,087.42 | CHG: 0.57 | %CHG: 0.03 | YTD: -144.18 | YTD%: -6.46 BISX LISTED & TRADED SECURITIES 52WK LOW 3.13 20.91 0.67 1.75 1.67 5.40 5.39 2.00 5.05 3.62 5.60 11.05 2.71 2.64 9.60 7.10 13.04 3.20 8.00 13.90

PREFERENCE SHARES 1.00

1.00

1000.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

1.00 10.00 1.00

1.00 10.00 0.90

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

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

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

BFHP CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB

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

52WK LOW 100.00 100.00

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

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

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

SYMBOL FBB22 BFHB

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

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

LAST CLOSE 3.51 17.43 1.62 1.75 1.67 5.40 6.75 2.99 5.10 3.73 6.10 11.26 2.31 5.30 10.02 8.44 14.30 3.96 8.97 15.20

CLOSE 3.51 17.43 1.62 1.75 1.67 5.40 6.75 2.99 5.10 3.73 6.10 11.26 2.23 5.30 10.21 8.44 14.30 3.97 8.97 15.20

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.08 0.00 0.19 0.00 0.00 0.01 0.00 0.00

1.00 1000.00 1000.00 1000.00 1000.00 1.00 10.00 0.90

1.00 1000.00 1000.00 1000.00 1000.00 1.00 10.00 0.95

LAST SALE 100.00 100.00

CLOSE 100.00 100.00

CHANGE 0.00 0.00

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

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

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

VOLUME

18,624

3,000

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.05

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

VOLUME

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

P/E 14.7 18.7 N/M N/M N/M N/M 18.3 -6.8 36.4 20.3 13.6 15.6 21.9 11.3 15.8 11.6 17.5 19.6 9.6 24.1

YIELD 4.84% 7.23% 1.23% 0.00% 0.00% 0.00% 3.85% 0.00% 0.00% 3.22% 3.61% 6.39% 19.46% 1.13% 3.21% 2.84% 3.78% 3.02% 2.23% 4.01%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

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

INTEREST Prime + 1.75% 6.25%

19-Oct-2022 30-Sep-2025

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

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

MATURITY

MUTUAL FUNDS 52WK HI 2.34 4.41 2.12 198.39 168.29 1.69 1.85 1.77 1.24 8.34 10.26 7.08 12.15 12.71 10.81 10.00 8.98 11.79

52WK LOW 2.11 3.30 1.68 164.74 116.70 1.64 1.79 1.73 1.06 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

Canadian-owned banks, coupled with the block on foreign portfolio investments by Bahamians, was likely to conserve up to a further $180m. However, Mr Pinder described this as “holding back the tide” as such repatriations and investments will ultimately be made and act as a claim against the external reserves.

Another boost is likely to have been provided by the government’s foreign currency borrowings. Besides the $252m International Monetary Fund (IMF) loan, Mr Turnquest yesterday said the government had already accessed $248m as part of a bridge financing deal before concluding further borrowings of $200m with the Inter-American Development Bank (IDB) and $40m with the Caribbean Development Bank (CDB).

Marlon Johnson, the Ministry of Finance’s acting financial secretary, yesterday said the government’s foreign currency borrowing strategy was working “to script” in boosting the external reserves. “So far that is holding as far as projections by the Central Bank,” he told Tribune Business.

“We have indicated and maintained we will see some fall-off over time, but are hopeful with the mitigation efforts from opening up and external borrowings we won’t see the decline projected. I think we’re satisfied that we have not seen any pronounced deterioration in foreign reserve holdings, and we hope that remains.”

NOTICE

Maintains diesel equipment operation by completing inspections and preventive maintenance.

52WK HI 4.10 22.65 2.00 1.79 2.46 6.00 6.75 5.47 8.59 4.50 6.16 12.77 3.64 5.49 10.88 8.44 16.99 4.25 9.40 15.21

and hopefully that will carry us through this period....

“I want to caution Bahamians as we think about the future that we don’t swing for the fences, the home run all the time. There’s value in getting on base. We have to be realistic about our prospects in the short and medium-term.”

Several observers yesterday privately voiced surprise that the external reserves are now at $2.1bn, an increase on the $1.982bn unveiled by the Central Bank at-end July. The rise comes despite the fact that tourism-related foreign currency inflows have almost completely dried up for six months, yet The Bahamas still has to finance an expensive import bill including food and oilrelated products.

John Rolle, the Central Bank’s governor, could not be reached for comment yesterday, but several offsetting factors will have helped reduce imports and conserve the external reserves.

These include the drop-off in tourism-related imports, as well as the Central Bankimposed restrictions on outflows that Mr Rolle said in August have helped to conserve $200m to-date.

While the regulator has predicted that the external reserves will fall to $1bn by 2020 year-end, the Governor said the National Insurance Board’s (NIB) liquidation of its overseas investment holdings, and their repatriation, had brought “in excess of $100m” in foreign currency back to The Bahamas.

And the bar on dividend/ profit repatriation by the

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

NAV 2.34 4.41 2.12 196.40 163.60 1.68 1.81 1.76 1.07 8.30 9.90 7.08 11.27 12.71 10.23 N/A 8.93 11.27

YTD% 12 MTH% 2.54% 4.13% 1.12% 2.44% 1.38% 2.55% 0.65% 2.50% -1.88% 3.33% 1.10% 2.34% -2.43% 1.49% 0.34% 2.43% -11.07% -9.92% -0.45% 8.36% -3.20% 11.46% 2.10% 5.15% -6.17% 3.54% 2.92% 5.55% -4.66% -3.81% N/A N/A -4.20% 0.20% -8.60% -2.90%

MARKET TERMS

BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00

YIELD - last 12 month dividends divided by closing price

52wk-Hi - Highest closing price in last 52 weeks

Bid $ - Buying price of Colina and Fidelity

52wk-Low - Lowest closing price in last 52 weeks

Ask $ - Selling price of Colina and fidelity

Previous Close - Previous day's weighted price for daily volume

Last Price - Last traded over-the-counter price

Today's Close - Current day's weighted price for daily volume

Weekly Vol. - Trading volume of the prior week

Change - Change in closing price from day to day

EPS $ - A company's reported earnings per share for the last 12 mths

Daily Vol. - Number of total shares traded today

NAV - Net Asset Value

DIV $ - Dividends per share paid in the last 12 months

N/M - Not Meaningful

P/E - Closing price divided by the last 12 month earnings

NOTICE is hereby given that NATASHA TELSON, East Street, P.O.Box N-10326 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 10th day of September 2020 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE NOTICE is hereby given that ENRICO DARSHAN JOSEPH. Marsh Harbour, Abaco 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 9th day of September 2020 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NAV Date

31-Jul-2020 31-Jul-2020 31-Jul-2020 30-Jun-2020 30-Jun-2020 31-Jul-2020 31-Jul-2020 31-Jul-2020 31-Jul-2020 31-May-2020 31-May-2020 31-May-2020 31-May-2020 31-May-2020 31-May-2020 30-Jun-2020 30-Jun-2020 30-Jun-2020

INTERNATIONAL BUSINESS COMPANIES ACT, 2000

LEGAL NOTICE

AMALUR LTD. (In Voluntary Liquidation)

TAKE NOTICE is hereby given that by a resolution passed on the 16th day of July, 2020 the above-named Company was put into voluntary liquidation.

AND FURTHER TAKE NOTICE that Raynard Rigby of BCS Corporate Group Ltd., Cumberland House, 15 Cumberland & Duke Streets, P.O. Box SS-6836, Nassau, Bahamas was appointed voluntary liquidator of the Company.

AND TAKE NOTICE that any creditors having debts or claims against the Company are required to send particulars to the Liquidator of the said Company and in default thereof they will be excluded from the benefit of any distribution made by the Liquidator.

Dated this 8th day of September, 2020

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | COLONIAL 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333

Raynard Rigby BCS Corporate Group Ltd. Liquidator

THE TRIBUNE

Regulator dismisses Cable, BTC warnings FROM PAGE ONE the wider economy, URCA considers it unlikely that this would be the case.

“In particular, revenues from wholesale Direct Internet Access (DIA) services constitute only a small share of the SMP operators’ total revenues. As such, any change in the charges for point-of-place-based wholesale DIA services is unlikely to fundamentally change the SMP operators’ financial position and investment decisions.

“This is particularly the case for the latter given the SMP operators’ networks are largely used to support their own downstream retail services, as they selfsupply their own wholesale inputs, which means that investment decisions are unlikely to hinge on the prices SMP operators are able to charge other licensed operators for wholesale DIA services (and any associated revenues/returns from these services). More importantly, in line with common practice, any regulated charges should be set at a level to allow SMP operators to earn a reasonable return on capital efficiently employed.”

URCA hit back in response to dire warnings from the two major communications players.

BISX-listed Cable Bahamas, in particular, had warned in its push back to URCA’s proposals that the consultation process and findings were “exceptional and therefore well outside the international mainstream”.

Describing the new regulatory measures as “too onerous and heavy handed”, the BISX-listed communications provider warned darkly that URCA’s plans would place its future and present network investment plans “at risk”.

“The impact of such extravagant measures is untested, and URCA itself has not even bothered to carry out an impact analysis. Had it done so, it would have realised that its proposal comes at a potentially high cost to the Bahamian economy and, more specifically, Cable Bahamas’ investment plans,” Cable Bahamas warned.

It added that URCA had failed to properly segment the wholesale broadband Internet market into two.

The dominant sector player said there were two types of DIAs - input DIAs for the delivery of services by other ISPs, and “simple resale DIA” which was sold on to clients.

Cable Bahamas argued that treating resale DIA in the manner proposed

by URCA is “internationally unheard of” and poses a “substantial risk factor” for its investment strategy.

“Regulating resale DIA in the proposed manner is entirely unjustifiable, and a strong push back from Cable Bahamas should be expected. It would also put Cable Bahamas’ current and future investment plans at risk,” the company reiterated.

Undeterred, URCA is now pushing ahead with measures to regulate the wholesale broadband Internet market, which is where smaller Bahamas-based ISPs buy capacity or bandwidth on the two dominant players’ networks so that they can deliver services to their clients.

The regulator moved in response to complaints from smaller operators, who argued that BTC and Cable Bahamas had the ability to make the uncompetitive via excessive pricing and margin squeezes, as well as denying them access.

One niche provider previously said wholesale direct Internet access rates charged by The Bahamas’ two telecommunications

giants were “in excess of 150 times” greater than comparable US prices and squeezing out competition.

Theofanis Cochinamogulos, chief executive of Wicom Bahamas, in a May 27, 2020, letter to sector regulators argued that there was “little rationale for these elevated costs” from Cable Bahamas and BTC. Arguing that these prices had not reduced for ten to 15 years, Mr Cochinamogulos called on URCA to set a fixed rate “at no more than ten times’ the cost” so that niche Internet Service Providers (ISPs) such as himself can compete in the resell market with their larger rivals.

“As a small start-up ISP, monthly recurring costs dictate the success and failure of the business month-to-month,” he wrote. “Because of that fact, early on we sought out DIA pricing locally, regionally and internationally. That research led us to confirm that the cost of purchasing DIA between New York and Japan, some 5,600 miles away, is less costly by ten times in comparison to purchasing DIA for resale in the Bahamas.

“Furthermore, the cost of purchasing DIA from the Network Access Point of the Americas (NAPS) in Miami varies between $0.22 per Mbps (megabits per second) for a 10,000 Mbps (10 gigabits) and $0.30 per Mbps for a 1000 Mbps (1 gigabit) link.

“Currently, Cable Bahamas and BTC’s DIA internet rates stand at a whopping $52 per Mbps and $48.50 per Mbps, which is in excess of 150 times the cost provided to us from providers at the NAPS and other Data Centre Interconnect Facilities in Florida.

With these facts in mind, there is little rationale for these elevated costs even when subsea fibre operations, and maintenance are considered.”

To advertise in The Tribune, contact 502-2394

Thursday, September 10, 2020, PAGE 9

Don’t make council a ‘political football’ FROM PAGE ONE

that allow the government to to adjust its fiscal forecast when faced with a Dorian or COVID-19 type event, and present a revised forecast and strategy - including how they plan to get back on the path to the Act’s deficit and debt reduction targets - to Parliament.

“Our role is to say to the public there has been an independent validation and assessment of the government’s plans and performance against what they committed to do, and the report will say what they did and did not do,” Mr Bowe told Tribune Business.

“It’s not for us to craft a new strategy or say what’s

appropriate for the government. That’s the legislature’s responsibility, and the opposition has a role to play in that.”

Mr Bowe added that the MoU dealt with how the council will manage its affairs, and issues of who controls its budget and whether it has its own office space. He said the sharing of confidential information by the Ministry of Finance and other government agencies “in a secure manner”, and how the council interacts with and gains access to public officials is also dealt with.

THE TRIBUNE

Thursday, September 10, 2020, PAGE 11

Companies pledge to add at least one Black director to board NEW YORK Associated Press MORE than a dozen companies, including Zillow and MMLaFleur, are promising to add at least one Black director to their boards within the next year, as businesses across America slowly get their leadership to look more like the customers they serve.

The companies all made the pledge as part of the launch of an initiative by The Board Challenge, which is pushing to get more diversity into boardrooms. The Board Challenge’s co-founders will check in with each of

them after six months and again at 12 months to monitor their progress, while also helping them to find candidates.

“America has been reminded again in tragic fashion that we must redouble our efforts to build a more inclusive society,” Brad Gerstner, CEO of Altimeter Capital and a co-founder of The Board Challenge, said in a statement. “Business leaders can’t let this moment pass us by without playing our part and taking this tangible step to build a more diverse boardroom.”

Companies have been making slow progress in

getting people who aren’t white men into leadership positions. Across the big companies in the S&P 500 index, more than a third did not have a single Black director in 2019, according to Black Enterprise.

The rate of 37% was down slightly from 39% a year before.

In many cases, forces outside the companies are pushing for better representation in the board room and in senior executive ranks.

Shareholders, governments and other proponents say it makes business sense for companies’ leadership to reflect the customers they serve and the workforces

they oversee. It can get a more diverse set of opinions and experiences into the decision-making process.

In recent years, shareholders and governments have been putting heavier pressure on companies to add women in particular to their boards. California, for example, requires companies that are headquartered in the state and whose stock is publicly held to have at least one woman on their board.

One reason is that investors and others say it’s easier to track the numbers on gender diversity than on racial or ethnic diversity. But The Board Challenge is the

latest example of the pressure moving toward better representation for racial minorities as well.

State Street Global Advisors, which is a major shareholder in more than 10,000 companies around the world through its funds, late last month sent a letter to companies asking them to offer details about the racial diversity in their boardrooms and workforces, for example.

State Street is the company that commissioned the “Fearless Girl” statue that faced down Wall Street’s famous “Charging Bull” statue.

Shareholders have been increasing pressure on businesses to improve their

THE WEATHER REPORT

5-Day Forecast

TODAY

ORLANDO

High: 91° F/33° C Low: 75° F/24° C

TAMPA

FRIDAY

SATURDAY

SUNDAY

MONDAY

Some sun with a thunderstorm around

Partly cloudy with a thunderstorm

Partly sunny with a thunderstorm

Some sun with a couple of showers

Partly sunny

Sun followed by clouds

High: 89°

Low: 78°

High: 88° Low: 78°

High: 88° Low: 79°

High: 90° Low: 79°

High: 90° Low: 78°

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

100° F

89° F

100°-85° F

99°-85° F

101°-88° F

101°-87° F

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

N

almanac

E

W

ABACO

S

N

High: 87° F/31° C Low: 82° F/28° C

6-12 knots

S

High: 89° F/32° C Low: 78° F/26° C

7-14 knots

FT. LAUDERDALE

FREEPORT

High: 89° F/32° C Low: 79° F/26° C

N E S

E

W

WEST PALM BEACH

W

uV inDex toDay

TONIGHT

High: 90° F/32° C Low: 76° F/24° C

High: 90° F/32° C Low: 79° F/26° C

MIAMI

High: 89° F/32° C Low: 79° F/26° C

4-8 knots

Statistics are for Nassau through 2 p.m. yesterday Temperature High ................................................... 86° F/30° C Low .................................................... 75° F/24° C Normal high ....................................... 88° F/31° C Normal low ........................................ 75° F/24° C Last year’s high ................................. 92° F/33° C Last year’s low ................................... 82° F/28° C Precipitation As of 2 p.m. yesterday ................................. 0.20” Year to date ............................................... 40.31” Normal year to date ................................... 26.24”

ELEUTHERA

NASSAU

High: 89° F/32° C Low: 78° F/26° C

Forecasts and graphics provided by AccuWeather, Inc. ©2020

High: 87° F/31° C Low: 81° F/27° C

N

KEY WEST

High: 89° F/32° C Low: 82° F/28° C

High: 86° F/30° C Low: 81° F/27° C

N

S

E

W

7-14 knots

S

8-16 knots Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

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

tiDes For nassau Low

Ht.(ft.)

Today

1:38 a.m.

2:19 p.m.

High

Ht.(ft.)

2.4 2.9

7:48 a.m.

8:51 p.m.

1.1 1.4

Friday

2:36 a.m.

3:19 p.m.

2.4 2.9

8:45 a.m.

9:53 p.m.

1.1 1.4

Saturday

3:39 a.m.

4:19 p.m.

2.4 3.1

9:47 a.m. 1.1 10:52 p.m. 1.2

Sunday

4:40 a.m.

5:16 p.m.

2.6 3.3

10:48 a.m. 0.9 11:46 p.m. 1.0

Monday

5:37 a.m.

6:09 p.m.

2.8 3.5

11:46 a.m. 0.6 ---------

Tuesday

6:30 a.m.

6:59 p.m.

3.1 3.6

12:35 a.m. 0.7 12:41 p.m. 0.4

Wednesday 7:21 a.m.

7:47 p.m.

3.3 3.7

1:22 a.m.

1:34 p.m.

0.4 0.1

sun anD moon Sunrise Sunset

6:54 a.m.

7:19 p.m.

Moonrise Moonset

12:05 a.m.

2:01 p.m.

Last

New

First

Full

Sep. 10

Sep. 17

Sep. 23

Oct. 1

CAT ISLAND

E

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diversity, an effort that may have reached a tipping point this year, according to analysts at Morgan Stanley. They found that 20% of diversityrelated proposals at annual shareholder meetings passed this year, as of early August.

That’s up from zero just two years ago.

The 17 companies that pledged to add a Black director in the next 12 months are Accolade, Altimeter Growth, Amperity, Bolster, Gusto, Heritage-Crystal Clean., Heritage Environmental Services, HopSkipDrive, Kin, M.M.LaFleur, Nextdoor, PagerDuty, RealSelf, Ripple, Senreve, Vinyl Me, Please and Zillow.

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

CROOKED ISLAND / ACKLINS RAGGED ISLAND High: 86° F/30° C Low: 80° F/27° C

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

Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday:

WINDS E at 7-14 Knots E at 7-14 Knots SE at 7-14 Knots ESE at 4-8 Knots ESE at 7-14 Knots ESE at 7-14 Knots ESE at 8-16 Knots E at 6-12 Knots E at 7-14 Knots SE at 6-12 Knots E at 7-14 Knots E at 6-12 Knots E at 8-16 Knots ESE at 6-12 Knots SE at 7-14 Knots ENE at 6-12 Knots ESE at 7-14 Knots ESE at 6-12 Knots SE at 7-14 Knots ESE at 8-16 Knots E at 8-16 Knots ESE at 6-12 Knots SE at 7-14 Knots ESE at 6-12 Knots E at 7-14 Knots ESE at 4-8 Knots

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VISIBILITY 10 Miles 10 Miles 6 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 6 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 6 Miles 10 Miles 6 Miles 5 Miles 10 Miles 10 Miles 10 Miles 10 Miles

WATER TEMPS. 84° F 84° F 85° F 85° F 84° F 84° F 84° F 84° F 84° F 84° F 84° F 84° F 85° F 85° F 84° F 84° F 85° F 85° F 84° F 84° F 85° F 85° F 85° F 85° F 85° F 85° F

PAGE 12, Thursday, September 10, 2020

THE TRIBUNE

PEOPLE wearing masks pass the Charging Bull statue in New York’s financial district. Wall Street is steadied itself yesterday following its first three-day losing streak in nearly three months, as the bloodletting for big technology stocks comes to at least a temporary halt. Photo: Mark Lennihan/AP

Stocks bounce back on Wall Street as tech bloodletting halts NEW YORK Associated Press WALL Street snapped back to life yesterday, recovering from its worst stretch of losses in months, as the bloodletting for big technology stocks came to at least a temporary halt.

Apple, Amazon and other tech companies that suddenly lost their momentum late last week on worries their stocks soared too high all regained some ground. They helped the S&P 500 rally 67.12, or 2%, to 3,398.96. It was the best day in three months for the index, which recovered a little more than a quarter of its losses from the prior three days.

The Dow Jones Industrial Average climbed 439.58, or 1.6%, to 27,940.47. The Nasdaq composite, which includes many tech stocks, rose 293.87, or 2.7%, to 11,141.56. It had dropped 10% over the previous three days.

Tesla, which has made some of the wildest moves in recent months, rose 10.9%. A day earlier, it plunged 21.1% for its worst day since its shares began trading a decade ago. In August, it surged 74.1%.

Selling over the last week in the market had focused on such tech superstars, which earlier zoomed through the pandemic amid expectations that they would benefit from the new stay-at-home economy.

Blockbuster spring profit reports from many of them emboldened investors, who bid their stock prices up to levels that critics called too expensive, even after accounting for their powerful growth.

A flurry of buying of stock options for big tech stocks may have helped further goose the gains, analysts say.

That helped the S&P 500 and Nasdaq push repeatedly to record highs as recently as last week, even though the economy is still struggling with the coronavirus pandemic. But the fever broke on Thursday, with the S&P 500 dropping 7% in three days, its steepest loss over such a timeframe in nearly three months.

“The fact is that there was a broad consensus that it was overbought, and the rally was overextended and due for some sort of pullback,” said Quincy Krosby, chief market strategist at Prudential Financial.

Still to be determined is whether the sell-off was just a blowing-off of some steam for tech stocks that had gotten overheated — or whether it was the beginning of a more widespread downturn.

It doesn’t help that September is traditionally a weak month for stocks, Krosby said. “Is this the pause, or are we due for more selling?”

Other sectors didn’t get as expensive as technology during the recent run-up. Banks and other financial stocks in the S&P 500 are still down more than 19% for 2020 so far, for example. But challenges continue to loom over the entire market, including uncertainty about how the pandemic will progress.

Trade issues remain a worry for markets, and the souring US-China relationship gets the brightest spotlight. But that’s not the only potential hot spot.

Tiffany lost 6.4% after European luxury giant LVMH ended its $14.5bn takeover deal for the jewelry retailer. LVMH said it made the move in part because the French government requested a delay due to the threat of proposed US tariffs on French products.

Investors are also waiting for Congress to deliver more aid to the economy after unemployment benefits and other stimulus that it approved earlier ran out.

Investors say it’s critical that the economy get such stimulus, but partisan disagreements have Congress at an apparent impasse.

A Senate vote this week on a trimmed-down relief package proposed by Republicans has only a slim chance of passage as Democrats insist on more sweeping aid.

The stock market’s rally started in late March following massive amounts of aid from the Federal Reserve and Congress. It accelerated as the economy showed signs of improvement. Corporate profit reports for the spring that weren’t as disastrous as expected also helped lift the market.

Late on Tuesday, Slack Technologies also reported what analysts called a good quarter, with revenue topping expectations. But the company reported billings that were weaker than expected, and its stock tumbled 13.9%.

Hopes for a potential COVID-19 vaccine also helped the S&P 500 erase all of its nearly 34% loss from earlier in the pandemic. US-listed shares of AstraZeneca slipped 2% yesterday, though, after it put late-stage studies of its vaccine candidate on temporary hold while it investigates whether a recipient’s illness is a side effect of the shot.

Treasury yields ticked higher, with the ten-year yield rising to 0.69% from 0.68% late on Tuesday.

Crude oil clawed back some of its slide from the prior day. Benchmark US crude rose $1.29 to settle at $38.05 per barrel. Brent crude, the international standard, added $1.01 to $40.79 per barrel.

European stocks closed higher, while Asian markets fell.

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