09142016 business

WEDNESDAY, SEPTEMBER 14, 2016

business@tribunemedia.net

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Court ‘unwitting pawn’ in assisting land frauds

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net An Appeal Court justice yesterday admitted that the Bahamian judicial system is vulnerable to being used as an “unwitting pawn” in the commission of real estate frauds.

Justice Stella Maureen Crane-Scott warned that the Quieting Titles Act was effectively being employed as a tool to steal land, given that “material facts” relating to title applications were often hidden from the courts.

Referring to yesterday’s ruling on a family-related

Judge: ‘Material facts’ being hidden from judiciary Hits at ‘egregious abuses’ of Quieting Titles Act Legislation still being used to steal real estate land dispute in Exuma, Justice Crane-Scott wrote that the case “exemplifies the kinds of egregious abuses ranging from the fraudulent

OECD alters rules for Bahamas ‘half way through game’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A Bahamian QC yesterday accused the OECD of “changing the rules half way through the game” by attempting to force this nation into abandoning its preferred approach for implementing automatic tax information exchange.

Brian Moree, senior partner at the McKinney, Bancroft & Hughes law firm, told Tribune Business that the OECD, the world’s tax information overseer, appeared to have performed a remarkable ‘u-turn’ on the rules it had itself set for global Common Reporting Standard (CRS) implementation.

Having allowed countries to choose whether to implement the worldwide automatic tax information exchange standard on a bilateral or multilateral basis, Mr Moree said the OECD was now telling the Bahamas that it “cannot exercise its sovereign rights” to select the former approach.

See pg b4

QC slams group’s auto tax exchange ‘about turn’ Fears start of campaign to force change by Bahamas And warns that nation being judged prematurely

Brian Moree QC

Bahamas told: Don’t be ‘intimidated’ by new OECD offensive

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A Bahamian financial services provider yesterday demanded “strong leadership” in response to the latest OECD attack, and warned against being “cowed and intimidated”.

Paul Moss, president of Dominion Management Services, told Tribune Business that the Bahamas - and especially the Government - needed to remain firm, and deliver a “strong” response to mitigate any potential reputational damage for the country’s financial services industry.

He argued that the new Organisation for Economic Co-Operation and Development (OECD) offensive, launched via The Economist magazine, seemed designed to further undermine the Bahamas’ competitiveness as an international financial centre (IFC).

“I think these articles are not only designed for the readership, but are also calculated by certain elements of the international industry to stop the progress and growth of other jurisdictions,” Mr Moss told Trib-

Financial provider urges ‘strong leadership’ by Govt Nation ‘well within rights’ to go bilateral

paul Moss une Business.

“It’s to stifle the growth of certain jurisdictions, and is all about competition.”

The Economist, in an article headlined ‘The Holdout’, described the See pg b5

concealment of material facts to the deliberate manipulation of the statutory requirements of the Quieting Titles Act - which can occur in the course of quieting proceedings”.

She warned that the Act’s proper use and operation depended heavily on the judiciary, and attorneys, properly following its procedures so that all competing claims to a real estate parcel were known.

“The Act can only operate optimally, and as Parliament intended, if its procedures are scrupulously followed by bench and Bar alike, and a proper investigation of all possible competing claims is conducted

by the Court,” Justice Crane-Scott said.

“Where material facts, such as the existence of adverse claimants, are deliberately suppressed and concealed, and where additionally, the petitioner knowingly represents to the court - as required in section 5 - that ‘full and fair disclosure’ has been made, the court may nonetheless unwittingly become a pawn in a fraud and deception which only comes to light if (as happened in this case) section 27 is subsequently invoked and the nature and extent of the fraud and deception is established in a court of law.”

See pg b2

Central Bank chief: ‘Ultimate’ goal is to bank web shops

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Central Bank’s governor yesterday said the “ultimate” goal is for the web shop industry to satisfy commercial bank concerns and reach the point where it can be “banked”.

John Rolle told Tribune Business that the first step in achieving this goal was for there to be “direct interaction” between commercial bank compliance staff and the Gaming Board, the web shop regulator, so the former could better understand the industry’s regulatory controls and standards.

This, he emphasised, would both allow the Gaming Board to identify “gaps” in the web shops’ antimoney laundering systems and enable the commercial banks to understand how these procedures were im-

Wants to reach point where bank concerns eased

John Rolle plemented in practice.

Mr Rolle reiterated that the Central Bank’s licensees would not be forced by the regulator to accept web shop deposits, See pg b3

‘GARBAGE’: How The Economist’s ‘tax expert’ described the views of ex-financial services minister, Ryan Pinder.

‘Tax expert’: OECD won’t buy Bahamas tax exchange route

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The ‘tax expert’ quoted in The Economist’s fullscale attack on the Bahamas warned two months ago that the OECD would never accept this nation’s preferred tax information exchange approach, and asked: “What koolaid are you drinking?”

Mark Morris, who describes himself as an adviser to members of the OECD’s Global Forum on tax transparency, told Tribune Business via e-mail that the Bahamas “will be obliged to exchange” tax information via a multilateral approach.

This nation has instead elected to implement the Common Reporting Standard (CRS) for automatic tax information exchange via a bilateral approach, but Mr Morris warned that this meant the Bahamas would now become the “poster” villain of international financial centres (IFCs).

His July 12, 2016, e-mail to Tribune Business criticised comments on the CRS

by Hope Strachan, minister of financial services, and her predecessor, Ryan Pin-

Economist source: ‘What koolaid are you drinking?’

Says Bahamas will be offshore ‘whipping boy’ Slams ministers’ positions as ‘garbage’ der, plus Bahamas Financial Services Board (BFSB) chief executive, Tanya McCartney.

In particular, he described Mr Pinder’s concerns over the multilateral approach to CRS - and whether some countries may compromise the confidentiality of client data - as “garbage”.

In what at times turned into a three-page rant against the Bahamas, Mr Morris said: “Does everyone in Bahamas mindlessly believe the OECD is going to let the Bahamas undermine the world’s CRS? Are you all drinking the same See pg b3

PAGE 2, Wednesday, September 14, 2016

THE TRIBUNE

Summer school on electricity savings

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In the past, homes and businesses have tried to counter this effect with marginally effective whirly-

Court ‘unwitting pawn’ in assisting land frauds From pg B1 Tribune Business has reported on several Quieting Titles Act abuses in recent years, detailing how the law has been used as a fraudulent tool to commit real estate theft.

A typical abuse is for persons seeking a Certificate of Title from the Supreme Court not to notify others, who may have an interest in the same land, of the court

action and their intentions.

All Quieting Titles Act applications are supposed to be made public, so rival claimants can challenge title applications, but this does not always happen.

And, as Justice CraneScott said, the Supreme Court is often not made aware of the existence of rival “adverse claimants”, with applicants often lying that they have made “full

birds powered by the wind or BEC. Fortunately, there is a better solution.

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Be sure to get warrantied systems that can last you decades. Properly ventilated roofs make an entire home feel cooler and more comfortable. This also means your air conditioner has to work less, saving you money. * Drawn Curtains Where is it easiest for heat to enter the living space? The windows. Windows allow light to enter the room, and with that light often comes heat. As much as 10-20 per cent of your power bill is the result of heat streaming straight through the windows to counteract your costly, cool conditioned air inside. If you draw your curtains at night and wait to open the curtains until late in the day, that leaves fewer daylight hours for heat to pour and frank disclosure”.

Among the most egregious examples of Quieting Titles Act fraud is the three-decade saga impacting a 156-acre tract in the Pinewood Gardens/Nassau Village area, near to Sir Lynden Pindling Estates.

As previously reported by Tribune Business, a group of land speculators, assisted by some unscrupulous attorneys, obtained a Certificate of Title to the land via fraud, as they never notified - or made the Supreme Court aware - that there was an “adverse claimant” in the

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They then promptly sold the land to unsuspecting Bahamians, paving the way for three decades of legal battles that have damaged the lives - and largest investments - that many ordinary persons will make in their homes.

Such actions also undermine Bahamian economic activity by tying up major land tracts in legal disputes for years.

The situation cries out for legislative reform by Parliament, but there has been little appetite for this to-date in a body that is typically dominated by attorneys.

Justice Crane-Scott’s comments came in a Court of Appeal ruling involving a family land dispute in Exuma, where two brothers - Milton and Daniel Strachan - were appealing then-Chief Justice, Sir Michael Barnett’s, verdict that set aside their Certificate of Title on the grounds that it was fraudulently obtained.

The land in question was Lot 3 in the Hooper’s Bay subdivision, and the Strachan brothers made “numerous complaints of bias against the Chief Justice, challenging his findings and making repeated and very serious allegations”.

The Strachan brothers alleged that they had a title to the property than their rival, Harcourt Strachan, and that they had published their Quieting Titles action in both the newspapers and

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a sign on the subject land.

Milton Strachan had claimed in an affidavit to have farmed the property for more than 20 years, and built two rental houses and a pre-school on it, before affirming that all relevant material facts had been disclosed.

However, following legal challenge, Sir Michael noted that Milton and his brother had failed to disclose their dispute with Harcourt Strachan over who owned the land. Nor did they admit that the pre-school had been built by Harcourt and his wife (Milton’s daughter), or that it was the couple - rather than the brothers who had been occupying the school.

Yet Milton and Dwight Strachan had alleged in their original Certificate of Title application that it was they who built the pre-school, and had enjoyed “undisturbed occupation and possession of the property even to the present date”.

Then there was the testimony of Rosanell Thompson-Smith, who was employed at the pre-school for six years by Harcourt Strachan from 2008, becoming his lessee in 2010.

She said no notice of the Quieting action was posted on the property, and she did not become aware of the action until 2013.

As a result, Sir Michael found that the Strachan brothers had obtained their Certificate of Title “by deceit”, as they had not admitted that they were “not in exclusive possession of the land” as originally alleged.

Nor did they admit to the dispute with Harcourt Strachan, which suggested that there was a rival claim that needed to be disclosed to the Supreme Court before a Certificate of Title could be granted. Harcourt Strachan said he was never

informed of the quieting action despite being stationed on Exuma until 2010.

Upholding Sir Michael’s ruling, Justice Crane-Scott said: “In my view, the Chief Justice was completely justified in his findings made in his written ruling that the appellants [the Strachan brothers] had misrepresented the true facts and concealed the material fact that the preschool had been built by the daughter and niece of the first and second appellants at a time when she had been married to the respondent [Harcourt Strachan].

“What is even worse, the Abstract of Title, and the several affidavits which the appellants filed in support of their petition in the quieting action, contain false representations of fact about their being in undisturbed and exclusive possession of the whole of Lot 3 which, in the light of their subsequent testimony during the fraud action in the court below could (as the Chief Justice found) only have amounted to a calculated attempt to deceive the court.

“As a result of the falsehoods which came to light in the fraud action, coupled with the deliberate concealment from the court of material information which would have alerted the court to the identity of other persons who may have had a claim adverse to - or inconsistent - with that claimed by the appellants in respect of that portion of Lot 3 occupied by the school, and with whom the appellants were still in a dispute, the learned Chief Justice was prevented from giving directions.. for the service of notice of the quieting action on the respondent and his lessee, Mrs Thompson-Smith, enabling any claims which they had to have been investigated in the quieting action.”

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PUBLIC NOTICE

TOWN HALL MEETING September 20, 2016 6:30 pm Black Legend Reception Hall Prince Charles Drive Cable Bahamas Limited will be hosting a public town hall meeting for the residents of Camperdown Subdivision and High Vista, to discuss the erection of electronic communications towers at No. #62 Camperdown Drive, and lot P7 on Mango Drive, High Vista . All interested residents are invited to attend.

THE TRIBUNE

Wednesday, September 14, 2016, PAGE 3

‘Tax expert’: OECD won’t buy Bahamas tax exchange route From pg B1 koolaid?

“It’s not exactly rocket science to figure who is next in line for being the poster child to beat on, now that Panama is no longer the main offshore villain.”

Tribune Business initially ignored Mr Morris’s e-mail, given that it was unsolicited and he never gave any indication of who he was and/ or acting on behalf of - key determinants of credibility.

He also never provided any contact details.

This newspaper is publishing the contents of this e-mail now given that Mr Morris appears to have been the main source for The Economist article that attacked the Bahamas and its approach to the CRS. It is important for the Government, and the financial services sector and associated industries, to understand where the latest assault on this nation is coming from if they are to properly respond to it.

The question for the Bahamas now is whether Mr Morris’s e-mail rant, and The Economist article, represent the official position of the OECD towards this nation and its approach to CRS implementation.

Given that Pascal SaintAmans, the OECD’s tax policy head, was quoted in The Economist article, there is every chance that it does, or at least was en-

dorsed by that organisation.

The magazine article is likely to be the first salvo in a campaign to pressure the Bahamas into abandoning the bilateral approach to CRS implementation, something that would allow this nation to exchange tax information automatically with those that approach it rather than with all-comers.

Given that the OECD’s membership is drawn from the world’s most powerful nations, the Bahamas cannot afford to ignore its position and pressure.

Tribune Business attempted to contact Mr Morris for comment yesterday, but could not reach him via either his listed office in Zurich or mobile numbers.

However, his e-mail, which was entitled ‘Be realistic’, reiterated the position taken two months later in The Economist article, namely: “The Bahamas will be obliged to exchange information with a multilateral convention.”

His description of the Bahamas’ stance as “disingenuous compliant noncompliance” was also quoted in the magazine’s piece, indicating that the e-mail sender and person quoted in the article are one and the same.

Referring to the Bahamas’ “abuse” of the CRS bilateral approach, Mr Morris said: “The Bahamas is using the bilateral route to outfox

Central Bank chief: ‘Ultimate’ goal is to bank web shops From pg B1 but acknowledged that the long-term objective was to bring that industry into the formal financial services economy.

“Ultimately, the expectation is that we would get to the point where whatever satisfaction is needed is there,” the Central Bank governor told Tribune Business.

“It is an activity [web shops] that has been legalised, and we have to make sure it is operating in a fashion that allows it to be banked.”

Bringing web shop gaming into the formal Bahamian economy, and having its deposits accepted by commercial banks, thereby integrating the sector into the financial services system, was one of the Government’s key goals in legalising, regulating and taxing the industry.

This objective, though, has met with minimal success to-date, as only Bank of the Bahamas, which is 65 per cent majority-owned by the Government, has publicly confirmed it is accepting web shop deposits.

Both Commonwealth Bank and Fidelity Bank (Bahamas) have declined to accept this money, while the Canadian-owned banks - Royal Bank of Canada,

Scotiabank and CIBC FirstCaribbean - say they are prevented from doing business with the web shops by their global policies on gaming monies.

This means that a sector where hundreds of millions of dollars are being recycled every year remains largely outside the formal economy and banking system, representing a potential money laundering risk that could attract the attention of international watchdogs.

However, Mr Rolle’s comments are likely to alarm some observers, who will interpret them as Central Bank pressure on its licensees to bow to Government policy and accept web shop monies despite their legitimate reservations about doing so.

Mr Rolle, though, repeated the sentiments contained in his speech to the Grand Bahama Chamber of Commerce last Friday, reiterating that the Central Bank wanted commercial banks to make web shoprelated decisions that were based on fact, rather than perception.

“By promoting direct interaction between the regulators and the [banks’] compliance people, they can ask questions and, if they detect there are any gaps, it’s an opportunity to discuss it

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the OECD’s Common Reporting Standard.

“Their strategy is to commit to the CRS so that it doesn’t incur the OECD’s wrath, but deviously implement the CRS so that it doesn’t exchange info with the authorities of its financial institutions’ clients.

“Exacerbating their intransigence, the Bahamas brazenly market their ‘compliant non-compliance’ strategy to attract the world’s untaxed money looking for refuge from the CRS elsewhere.”

Mr Morris said the Bahamas was “falsely claiming” it could decide which countries to exchange information with under the CRS, and being “delusional” in thinking it could determine the criteria for selecting them.

He also claimed the Bahamas was “fantasising” if it felt it could reject exchanging information with countries because of data security concerns.

“Rejecting automatic exchange not only helps the survivability of its offshore business, but [ability] to attract untaxed money globally,” Mr Morris wrote of the Bahamas.

“The Bahamas, more so than any other tax haven, abuses the bilateral option using subjective, fabricated and fallacious excuses.

“The Bahamas uses phoney data security concerns to protect its existing offshore industry but, more so, it is aggressively attracting untaxed assets from around the world. Egregiously, it one on one with the Gaming Board and other regulators so they can make these tweaks,” Mr Rolle told Tribune Business.

“We do know that the anti-money laundering standards for banks are the same principals that the Gaming Board puts across to its licensees.

“I think that now the wider financial services industry has to get a good understanding of how it [the web shop industry] works in practice with the movement from guidelines and standards to actual operations.”

Reassuring that no commercial bank will be forced to transact business with the web shops, Mr Rolle added that any relationship between the two sides would have to “stand on its own two feet”.

“They will have to satisfy any bank they deal with in terms of controls and systems they have in place,” he told Tribune Business. “It’s a client-by-client type of satisfaction they will have to provide.

“Some of our commercial banks have policies in terms of the client they bank outside of this jurisdiction, and that’s not going to change because of this jurisdiction.”

does this under the guise of being a committed CRS participant,” he added.

“The Bahamas government delegations travel globally, sponsoring seminars, attracting new business by assuring financial industry intermediaries that Bahamas will categorically not undertake exchange of information with many countries, especially Latin America, due to bogus security concerns.”

The language and topics addressed in Mr Morris’s e-mail to Tribune Business bear a striking resemblance to The Economist article’s content and presentation, suggesting that he had a

significant influence over it - and was likely the key source.

A previous Economist article from 2013 described him as “a tax expert with a conscience”, indicating he is something of a ‘go to guy’ for the magazine. Bahamian financial services executives spoken to by Tribune Business say they have never heard of him.

Mr Morris, though, appeared to admit in his email that the Bahamas and other countries can opt to automatically exchange tax information bilaterally, although he argued this route was “not an international legal instrument.”

And the Bahamas has also acknowledged that the OECD has moved to address data security concerns related to information sharing.

Mr Morris, though, queried whether the Bahamas’ approach was designed to obtain a competitive advantage, and whether attracting ‘untaxed’ assets was key to its “survivability” as a financial services centre.

“Only Bahamas is being exposed,” he added.

These themes and words again featured in both the questions submitted to the Government by The Economist, and in its final article.

PAGE 4, Wednesday, September 14, 2016

OECD alters rules for Bahamas ‘half way through game’ From pg B1 The well-known QC added that The Economist article, which portrayed the Bahamas as a non-cooperative and non-compliant jurisdiction in the fight against “global tax dodgers”, was likely only the first salvo in a sustained campaign of pressure against this nation.

While suggesting that it was “a little hyperbolic” to believe this was another step in a wider campaign to drive the Bahamas out of the financial campaign, Mr Moree said it was “unfair and premature” for the OECD to seemingly assume this nation would not fulfill its CRS commit-

ments.

“It seems to me that the persons behind this article are certainly trying to pressure the Bahamas into abandoning the bilateral approach and adopting the multilateral approach,” Mr Moree told Tribune Business of The Economist’s September 10 publication.

“That, to me, seems to be moving the goal posts half way through the game....

This would seem to be an effort by certain parties to change the rules as they apply to the Bahamas, where they are saying we no longer have the option to go bilateral, and we have to go multilateral. That would be in-

consistent with the OECD’s own guidelines.”

The Bahamas and its financial services industry have grown used to sudden rule changes and impositions over the past two decades, as the OECD and its fellow travellers mould the global financial system to their liking, seeking to put international financial centres (IFCs) in their place.

Mr Moree, like many in the financial services industry, indicated that he viewed The Economist article as an OECD ‘plant’ and attempt to ‘bounce’ the Bahamas into adopting the organisation’s preferred method for CRS implementation.

For the magazine described the Bahamas as “chief among the recalcitrants” who had not agreed to the automatic exchange of tax information on a multilateral basis.

Agreeing to this would require the Bahamas to exchange tax information on the financial services industry’s foreign clients with all signatory countries - more than 100 - instantaneously.

Instead, the Bahamas has agreed to implement the CRS on a bilateral basis, meaning it will negotiate agreements one country at a time with nations seeking to automatically exchange tax information with it.

Both the Government and the Bahamas Financial Services Board (BFSB) have argued that the bilateral approach, which has also been selected by the likes of Hong Kong and Singapore, is better suited to this nation’s system of indirect taxation.

However, the Bahamas has now been singled out as the ‘main threat’ to the global tax information exchange and transparency network that the OECD is trying to build.

Mr Moree yesterday said it was hard to understand the basis of the complaints in The Economist article, which appeared to prejudge the situation and automatically assume the Bahamas will fail to meet its CRS commitments.

“The foundation of the complaint seems to be that the Bahamas is using the bilateral approach as a pretext to obfuscate and navigate around the effective implementation of CRS,” the QC told Tribune Business.

He added, though, that there was no information or data - certainly nothing that was presented in The Economist article - “that would justify the assumption that the Bahamas has made a decision to drag its feet or otherwise frustrate the effort to implement CRS”.

Mr Moree said the Government’s own public pro-

nouncements directly contradicted the magazine’s assertions, given that it had repeatedly committed the Bahamas to implementing the CRS by 2018.

He added that the “enabling legislation” to facilitate the automatic exchange of tax information, along with the regulations, guidance notes, guidelines, Competent Authority Agreement (CAA) and agreement (TIEA) templates, were currently being drafted via a public-private sector partnership.

“There appears to be no rational basis for the assumption that the Bahamas is going to miss implementation of CRS, or delay its implementation in this country,” Mr Moree told Tribune Business.

“It is hard to see where that concern is coming from. What makes this even more curious is that the OECD itself has provided alternative approaches to the implementation of CRS, one being a bilateral approach and the other being a multilateral approach.

“I have difficulty in understanding how we can be wrong, or a country can be justifiably criticised for exercising its sovereignty,” Mr Moree added.

“It decides which of the two options it wishes to take, bearing in mind both options have been approved by the OECD itself. We are doing no more or no less that what the OECD has approved. It’s difficult to understand how, in view of that, we can be criticised.

The Bahamas has done nothing that is not in compliance with OECD directives.”

The OECD is a forum through which the world’s major industrialised nations, namely the G-7 and G-20, work to achieve their international tax transpar-

THE TRIBUNE ency and compliance objectives.

The Bahamas has been in its sights since the mid1990s, when it was first developing the concept of ‘harmful tax competition’, an initiative that paved the way for its current automatic information exchange drive.

Given the powerful nature of the OECD’s ‘backers’, and their belief that they are losing hundreds of millions of dollars in tax revenues to international financial centres (IFCs) such as the Bahamas, this nation will not be able to ignore their concerns.

And Mr Moree agreed that further pressure will be brought to bear, both directly on the Government and indirectly via the media, in a bid to force the Bahamas to accept a multilateral CRS implementation.

“I absolutely would expect that there will be further attempts to get the Bahamas to change to the multilateral approach,” the QC told Tribune Business.

“What is uncertain, and what is not clear, is why they seem to have concluded that the bilateral approach is not acceptable for the Bahamas.

“For whatever reason, persons in higher places have now decided they want to get the Bahamas to go multilateral. Now they have commenced a campaign to achieve that objective.”

Mr Moree urged the OECD and other outside observers to “give the Bahamas a chance to deliver on its commitments”, and only criticise and take further action if it missed implementation deadlines and obligations.

JOB OPPORTUNITY: EDUCATION OFFICER

Primary Responsibilities: Support and implement National Park Experience Programmes.

Duties: • Serve as Project Manager and implementer on various projects as assigned by Director of Education • Assist with development of various reports.

• Assist with the BNT Resource Library • Serve as a representative of the Education Dept in the promotion of education

programmes at various public outreach initiatives.

• Participate in Annual Work Plan of the Dept.

Qualifications/ Required Skills: • BS in Environmental Education, Marine Biology, or similar major • Experience with diving and snorkeling • Experience with facilitation and leading trips Key personality traits (to include but not limited to): • ability to work lift 45lbs, • flexible, adaptable, responsible and safety conscientious, • relatable and personable with students/group/leaders/visitors/local, • A team player with a good work ethic.

• A natural public speaker with ability to connect easily with audiences of all ages but

especially with young people.

Apply by sending cover letter and CV to: hr242bahamas@gmail.com on or before September 16, 2016

THE TRIBUNE

Wednesday, September 14, 2016, PAGE 5

China vows to cut aluminum output, but producers plan growth

BEIJING (AP) — China’s leaders are promising to rein in aluminum production that is flooding global markets and threatening jobs in the United States and Europe, but its producers have ambitious plans to expand.

The glut has cut costs for Western buyers of aluminum used to make lighter cars and aircraft.

Prices have fallen so low, though, that U.S. and European smelters are closing, prompting demands for trade penalties.

An array of Chinese industries from aluminum, steel and coal to makers of solar panels and glass mushroomed over the past decade until supply vastly exceeded demand. The surplus has widened as China’s economy cooled.

The Communist leadership has been promising since 2009 to cut overca-

pacity and reduce reliance on energy-guzzling heavy industry. But they face resistance from local officials who are reluctant to lose jobs and tax revenue.

Plans issued in February call for shrinking the steel and coal industries at a loss of 1.8 million jobs.

The Cabinet says it plans to close 45 million tons of steel production this year and has done about onethird of that so far.

Beijing agreed at the Group of 20 meeting of major economies this month to cooperate more closely on steel by forming a global forum to exchange information on the status of efforts to shrink its industry.

But it avoided any binding commitments.

Beijing has yet to issue plans for other industries but affirmed its pledge to reduce excess capacity at an earlier G20 meeting in July.

Despite that, Chinese

smelters that make more than half the world’s aluminum are adding millions of tons of capacity, supported by what Western competitors complain are improper subsidies including low-cost power. Output in June hit a monthly record of 2.7 million tons, according to the Aluminum Institute in London.

“The industry overcapacity situation is more severe,” said the newspaper National Business Daily this month.

Chinese producers dispute that.

“We believe that if there is an overcapacity in the aluminum industry, then it must be temporary,” said Mo Xinda, a researcher for the aluminum branch of the China Nonferrous Metals Industry Association.

Aluminum gets less public attention than Chinese steel exports, on which Washington imposed anti-

workers remove air ducts made from aluminum sheet metal in Beijing, China. China’s leaders are promising to rein in aluminum production that is flooding global markets and threatening jobs in the United States and Europe, but its producers have ambitious plans to expand. (AP Photo)

Bahamas told: Don’t be ‘intimidated’ by new OECD offensive From pg B1 Bahamas as singlehandedly undermining the global fight against “tax dodgers”, saying it was “cocking a snook” at the rest of the world.

This nation was portrayed as non-compliant and non-cooperative, with the suggestion that its chosen bilateral approach to implementing the standard for automatic tax information exchange - known as the Common Reporting Standard (CRS) - was a “foot dragging” measure intended to ‘fake’ compliance.

Mr Moss, though, emphasised that the Bahamas was “well within its rights” to follow the likes of Hong Kong and Singapore - which were not singled out by The

Economist for criticism - in adopting the bilateral approach to compliance.

He added that it was vital that the Bahamas stuck to its bilateral CRS compliance approach, and not “acquiesce” to the OECD’s demands, as doing so would undermine confidence in the financial services industry and among its clients.

Another concern for the Bahamas is the impact that The Economist may have on head office perceptions of this jurisdiction, given that most of the banks and trust companies based here are foreign owned.

“We need leadership that is strong, direct and can defend the financial services industry,” Mr Moss told Tribune Business.

“We need to defend it very

strongly, but because many politicians don’t understand it, they don’t defend it very well.

“In my view, the response should be strong and effective from Government leadership, saying who we are, what we are, that we have been in this business for a very long time, and that we have laws that, when benchmarked, are compliant with the highest international best practices and standards.

“We’ll not be cowed and intimidated into doing away with what the OECD itself has said is a legitimate approach.”

Emphasising that the Bahamas was an independent, sovereign nation unlike many of its international financial centre (IFC) rivals, Mr Moss said US states such as Delaware were able to establish corporate entities “with half the information” required by this nation.

“This is competition,” he reiterated.

NOTICE

This Public Notice is issued by the Utilities Regulation and Competition Authority (URCA) in exercise of its powers under section 38(3)(c) of the Electricity Act, 2015 (EA).

URCA hereby notifies the public that ALL persons, licensees or franchise holders in the Electricity Sector (ES) in The Bahamas, or those involved in the generation, transmission, distribution, importation or exportation of electricity are required to obtain a licence from URCA unless exempt under the EA. Under section 22 of the EA, URCA was established as the independent regulator for the ES in The Bahamas and has the regulatory responsibility to grant a licence with terms and conditions consistent with the national energy and electricity sector policies, as URCA considers appropriate.

URCA requests that ALL persons, licensees or franchise holders in the ES, and those involved in the generation, transmission, distribution, importation or exportation of electricity in The Bahamas to contact URCA at its office either at telephone number (242) 396-5211 or email info@urcabahamas.bs or visit its offices situated at Frederick House, Frederick Street, New Providence no later than September 30, 2016 to the end of becoming duly licensed under the EA. URCA hereby advises that, pursuant to section 44(2) of the EA, any person who engages in the generation, transmission, distribution, importation or exportation of electricity without a licence granted by URCA commits an offence and is liable on conviction to a fine not exceeding Five Hundred Thousand Dollars ($500,000.00).

dumping tariffs in July. But pressure for official action is rising: The Aluminum Association, a U.S. industry group, appealed to regulators in April to investigate Chinese producers.

The United States has five aluminum smelters left, down from 14 a decade ago, according to the association. It says the number of American jobs in alumina refining and primary aluminum production has

fallen to 5,000 from 12,000 in 2013.

Aluminum producers in Europe say its industry is being driven out of business by subsidized Chinese exports.

The global price of aluminum has fallen by 40 percent since 2011 and sits at about $1,600 per ton after dipping below $1,500 last year. That is far below the $2,200 level most Western smelters need to be finan-

cially viable, according to analyst Lloyd O’Carroll of CRU Group, a research firm.

Chinese output grew by 1,000 percent from 2.8 million metric tons in 2000 to 31.7 million metric tons last year, according to the International Aluminum Institute. At the same time, annual production outside China rose 19 percent to about 25 million metric tons.

PAGE 6, Wednesday, September 14, 2016

THE TRIBUNE

House conservatives offer resolution to impeach IRS chief

Internal Revenue Service (IRS) Commissioner John Koskinen testifies on Capitol Hill in Washington.

Conservatives are pushing to force an election-season House vote on impeaching IRS chief John Koskinen, despite misgivings by many Republicans and solid Democratic opposition that means Congress lacks the votes to ultimately remove him from office.

(AP Photo)

WASHINGTON (AP) — Two Republican congressmen formally offered a campaign-season resolution Tuesday to impeach IRS chief John Koskinen, setting the House on course for showdown votes over an effort that rouses conservatives but has no chance of ousting the commissioner from office.

The proposal by conservative Reps. John Fleming, R-La., and Tim Huelskamp, R-Kan., is expected to face votes Thursday in which its fate is unclear. With solid opposition from Democrats and resistance from many Republicans who consider it excessive and politically damaging, the measure might end up being killed and replaced by a censure motion that would scold Koskinen but leave him in his job.

NOTICE

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

NOTICE is hereby given that DON DARBEAU of 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 14th day of September, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

The Public is hereby advised that I, DE’ANN M. AGARO (nee FORBES) of Freeport Grand Bahama, Bahamas intend to change my daughter’s name from DESTINEY ELIZABETH AGARO to DESTINEY ELIZABETH COLEBY. 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 Sequoia Invest & Trade Ltd. In Voluntary Liquidation

NOTICE TILLOT COMMERCIAL INC. In Voluntary Liquidation

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, TILLOT COMMERCIAL INC. is in dissolution as of September 9th, 2016.

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, Sequoia Invest & Trade Ltd. is in dissolution as of September 9th, 2016.

International Liquidator Services Inc. situated at 3rd Floor Withfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

International Liquidator Services Inc. situated at 3rd Floor Withfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

LIQUIDATOR ______________________

LIQUIDATOR ______________________

The House Oversight and Government Reform Committee voted along party lines in June to censure Koskinen.

“Censure does nothing,” Fleming, who is running for the Senate, told reporters Tuesday. “Impeachment makes a much stronger statement than censure. It says in the opinion of the House, John Koskinen should lose his job.”

Because the issue has so divided Republicans, GOP lawmakers will meet privately Thursday to discuss how to handle it.

Even if the House musters a majority to impeach Koskinen — the equivalent of indicting him — Republicans would have no chance of winning the twothirds majority required to convict him in the Senate.

The GOP has just 54 of that chamber’s 100 seats.

In a formality, Fleming read the four-page resolution on the House floor, accusing him of committing “high crimes and misdemeanors,” the constitutional standard for impeachment. The move is certain to draw attention to Fleming, among 24 candidates running for the Senate in his state.

House Minority Whip Steny Hoyer, D-Md., called the impeachment drive “totally unjustified” and said Democrats will oppose it unanimously.

The effort, backed by the roughly 40-member-strong House Freedom Caucus, underscores that conservative group’s willingness to make life difficult for House Speaker Paul Ryan, R-Wis., who has taken a

neutral stance.

With presidential and congressional elections less than two months away, top Republicans have shown no enthusiasm for putting Congress through a partisan, time-consuming impeachment process for a little-known bureaucrat.

Only once in U.S. history has the House impeached a Cabinet-level official, the secretary of war, in 1876.

At the same time, Republican leaders are reluctant to dismiss the effort and rile conservative voters who have long loathed the IRS. That revulsion only intensified in 2013, when the agency conceded it had unfairly targeted tea party groups seeking tax exemptions for rigorous examinations in previous years.

Fleming and Huelskamp, who recently lost the GOP nomination for his House seat and will leave Congress, are Freedom Caucus members. The group issued a supportive statement saying that unless Congress acts, Koskinen “will be able to get away with abuse of his office.”

Many Republicans have felt the IRS’ actions were politically motivated, though investigators have found no evidence of that.

Koskinen did not join the IRS until late 2013. But the impeachment resolution accuses him of thwarting their investigation of the agency’s actions by not providing emails subpoenaed by Congress, lying about the IRS’ destruction of emails and making little effort to recover the lost documents.

Koskinen and Democrats say he’s cooperated with

MARKET REPORT TUESDAY, 13 SEPTEMBER 2016

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

BISX ALL SHARE INDEX: CLOSE 1,944.61 | CHG 4.19 | %CHG 0.22 | YTD 120.66 | YTD% 6.62 BISX LISTED & TRADED SECURITIES 52WK HI 4.05 17.43 9.09 3.50 4.70 0.18 8.34 8.50 6.10 10.60 15.50 2.72 1.60 5.80 9.00 11.00 8.25 6.90 12.25 11.00

52WK LOW 2.47 17.43 9.09 3.15 1.77 0.12 6.09 7.25 5.50 7.00 13.99 2.25 1.27 5.55 6.00 9.85 6.12 5.75 11.80 10.00

PREFERENCE SHARES 1000.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

1.00 106.00 100.00 106.00 100.00 105.00 100.00 10.00 1.01

1.00 105.50 100.00 100.00 100.00 100.00 100.00 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

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

LAST CLOSE 4.05 15.85 9.09 3.50 1.96 0.12 6.47 8.50 5.83 10.27 14.00 2.40 1.55 5.80 8.77 10.95 8.25 6.60 11.93 10.00

CLOSE 4.05 15.85 9.09 3.50 1.96 0.12 6.47 8.50 5.83 10.37 14.00 2.32 1.55 5.80 8.77 10.95 8.25 6.60 11.93 10.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.10 0.00 -0.08 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

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

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 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

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

SYMBOL FBB17 FBB18 FBB22

LAST SALE 100.00 100.00 100.00

CLOSE 100.00 100.00 100.00

CHANGE 0.00 0.00 0.00

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

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

114.85 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

115.36 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.51 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

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

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

113.70 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

VOLUME 400 200

10,000

200

VOLUME

EPS$ 0.304 1.351 1.086 0.220 -1.134 0.000 0.185 0.551 0.508 0.541 0.528 0.094 0.166 0.510 0.612 0.960 0.650 0.703 0.756 0.000

DIV$ 0.090 1.000 0.000 0.160 0.000 0.000 0.187 0.260 0.200 0.360 0.610 0.060 0.040 0.240 0.275 0.000 0.280 0.120 0.640 0.000

P/E 13.3 11.7 8.4 15.9 N/M N/M 35.0 15.4 11.5 19.2 26.5 24.7 9.3 11.4 14.3 11.4 12.7 9.4 15.8 0.0

YIELD 2.22% 6.31% 0.00% 4.57% 0.00% 0.00% 2.89% 3.06% 3.43% 3.47% 4.36% 2.59% 2.58% 4.14% 3.14% 0.00% 3.39% 1.82% 5.36% 0.00%

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

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

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

INTEREST 7.00% 6.00% Prime + 1.75%

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

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

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

MUTUAL FUNDS 52WK HI 1.99 3.90 1.92 167.58 138.35 1.44 1.67 1.55 1.08 6.94 8.65 5.92 9.94 11.15 10.46

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.39 1.67 1.48 1.03 6.41 7.62 5.66 8.65 10.54 9.57

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

NAV 1.99 3.90 1.92 167.58 136.68 1.44 1.67 1.55 1.08 6.94 8.65 5.92 9.59 11.15 9.57

YTD% 12 MTH% 2.33% 4.05% 3.34% 6.09% 1.63% 2.99% 3.41% 5.18% 2.95% -0.58% 2.19% 3.91% 2.46% 8.70% 1.94% 5.28% 4.11% 1.26% 4.05% 8.28% 5.93% 13.53% 2.73% 4.73% 3.97% -3.53% 2.96% 4.33% -4.26% -6.22%

NAV Date 31-Jul-2016 31-Jul-2016 27-Jul-2016 30-Jun-2016 30-Jun-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016

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

YIELD - 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

NOTICE is hereby given that MANOUSHKA CASTER of Carmichael Road, 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 14th day of September, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that ELIPHETE NICKENSON ORNIS of Marsh Harbour, Abaco, 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 7th day of September, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that CHRISTINE CLAUDIA NELSON SWANN of Violet Ave., Garden Hills, 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 7th day of September, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that KERBY FREDERIC of Faith Avenue North,P.O.Box N-4681, 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 14th day of September, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

THE TRIBUNE

Oil prices hit by downward revision to global oil demand LONDON (AP) — Oil prices took a pounding Tuesday after a leading industry group said global oil demand growth is slowing by more than previously thought, largely because of a more pronounced economic slowdown during the third quarter of the year.

In its September oil mar-

ket report, the Paris-based International Energy Agency reduced its forecast for global demand growth to 1.3 million barrels a day in 2016 — 100,000 below the previous forecast.

And it also anticipates a further slowdown next year, down to 1.2 million barrels a day “as underlying macroeconomic conditions re-

main uncertain.”

The organization, which represents 29 major oilimporting nations including the U.S., also noted that supplies from the OPEC oil cartel are running at nearrecord levels as Kuwait and the United Arab Emirates pump at their highest levels ever. It added that nonOPEC supply is expected to

return to growth next year.

All in all, the alteration in the demand-supply balance anticipated by the IEA has weighed on oil prices.

U.S. crude fell $1.39, or 3 percent, to $44.90 a barrel in New York on Tuesday.

Brent crude, the international standard, fell $1.22, or 2.5 percent, to $47.10 a barrel in London.

Wednesday, September 14, 2016, PAGE 7 The renewed pressure on prices follows a period when oil prices have recovered from multiyear lows and subsequently broadly stabilized. Last week’s revelation that the world’s two largest oil producers, Russia and Saudi Arabia, have agreed to act together to stabilize global oil output helped shore up prices though it remains unclear what the two have in mind.

“News last week may have helped lift oil prices back towards the August highs but this data once again adds to the bearish case for oil, regardless of

any ‘cooperation’ between Saudi Arabia and Russia,” said Craig Erlam, senior market analyst at OANDA. Oil prices shot up to more than $100 a barrel in mid2014 before a long slide sent them crashing below $30 at the start of the year. A number of factors hit prices including worries over the scale of the economic slowdown in China and high supply levels from OPEC countries, notably Saudi Arabia, as they seemingly strove to drive U.S. shale gas producers out of business.

QUARTER ENDED JULY 31, 2016

Dear Shareholder, On behalf of the Board of Directors of Doctors Hospital Health System, I report on your company’s financial results for the six months ended July 31, 2016.

Consolidated net profit for the six months was 1,639,894 or $0.16 cents per share compared to $1,208,791 or $0.12 cents per share for the same period last year. Doctors Hospital (Bahamas) Limited’s profit was $2,292,555 compared with $1,705,820 and Bahamas Medical Center’s loss was $(652,661) compared with $(497,029).

Consolidated net patient revenue increased $1,478,325 or 5.9%. Total inpatient days for the six months are up 3% primarily in the critical care areas. Second quarter patient days were up over last year by 5.8% compared to the first quarter which was up by 0.5%.

I would like to thank our shareholders,

DOCTORS HOSPITAL HEALTH SYSTEM LIMITED

Associates, physicians and volunteers for their loyalty and dedication to Doctors Hospital.

JOSEPH KRUKOWSKI CHAIRMAN August 31, 2016 DOCTORS HOSPITAL HEALTH SYSTEM LIMITED

Consolidated Balance Sheet

July 31, 2016 with comparative figures at January 31, 2016 (Expressed in thousands of Bahamian dollars)

July 31, 2016

Consolidated Statement of Revenue and Expenses

Six months ended July 31, 2016 with comparative figures for the six months ended July 31, 2015 (Expressed in thousands of Bahamian dollars)

January 31, 2016

Revenues Patient service revenue, net Other Total revenues

Expenses Salaries and benefits Medical supplies Medical services Depreciation and amortization Other operating Bad debt expense, net of recoveries Utilities Government taxes and fees Insurance Outside services Repairs and maintenance Dietary expenses Rent Legal expenses

Assets

Current assets: Cash and cash equivalents Accounts receivable—patients, net (note 2) Accounts receivable—third party payors, net (note 2) Inventories Other assets

Non-­‐current assets: Investments Goodwill, net Other intangible assets Property, plant and equipment

$

$

Total assets

5,607 402 5,953 2,212 1,272 15,446

5,353 933 4,842 1,934 1,079 14,141

30 431 456 16,753 17,670

30 431 492 15,922 16,875

33,116

31,016

Liabilities and Shareholders’ Equity

Current liabilities: Accounts payable and other liabilities $ 4,353 3,694 Total liabilities $ 4,353 3,694

Shareholders’ equity: Share capital: Authorized 12,500,000 common shares at par value of B$0.04 each (July 31, 2015 – 12,500, 000 shares) Issued and fully paid 9,971,634 shares (July 31, 2016– 9,971,634 shares) Contributed surplus Retained earnings

Total liabilities and shareholders’ equity

Total expenses

Net Loss/Income for the period

399 12,358 16,006 28,763 33,116

$

399 12,358 14,565 27,322 31,016

(Unaudited) DOCTORS HOSPITAL HEALTH SYSTEM LIMITED

Consolidated Statement of Revenue and Expenses

July 31, 2016

$

Total expenses

Net income for the period

$

Earnings per common share (expressed in Bahamian dollars): Basic and fully diluted $

(Unaudited) DOCTORS HOSPITAL HEALTH SYSTEM LIMITED

Consolidated Statement of Changes in Equity

July 31, 2015

13,440 440 13,880

12,382 434 12,816

5,933 1,862 1,662 659 628 361 429 348 245 291 232 80 151 35

5,572 1,874 1,558 788 500 442 256 283 208 236 206 91 142 43

12,916

12,199

964

617

.10

.06

Number of shares 9,971,634 -­‐

9,971,634

Share capital $

399

$

-­‐

399

25,050 870 25,920

11,637 3,809 3,380 1,396 1,249 931 658 716 519 554 456 260 163 80

11,064 3,732 3,300 1,606 1,033 671 850 598 459 473 378 288 179 80

25,808

24,711

1,640

1,209

0.16

0.12

Consolidated Statement of Cash Flows (Unaudited)

months ended July 31, 2016 with comparative figures for the six months ended July 31, 2015 Six (Expressed in thousands of Bahamian dollars)

July 31, 2016

Cash flows from operating activities income $ 1,640 Net Adjustments to reconcile net income to net cash provided by operating activities: and amortization 1,396 Depreciation Provision for doubtful accounts 931 Loss on disposal of property, plant and equipment -­‐ 3,967

Changes in operating assets and liabilities: Increase in accounts receivable (1,511) (278) Increase in inventories (193) Increase in prepaid expenses and other assets Increase in accounts payable and other liabilities 658 Cash provided by operating activities 2,643

Cash flows from investing activities Purchase of property, plant and equipment (2,171) Purchase of intangible assets (19) Proceeds from disposal of property, plant and equipment -­‐ Cash used in investing activities (2,190)

Cash flows from financing activities Dividends paid to shareholders (199) Cash used in financing activities (199)

Increase (decrease) in cash and cash equivalents 254

Cash and cash equivalents at beginning of period 5,353 Cash and cash equivalents at end of period $ 5,607

July 31, 2015

1,209

1,606 671 -­‐ 3,486 (292) (138) (21) 581 3,616

(1,250) (24) -­‐ (1,274)

-­‐ -­‐ 2,342 4,525 6,867

Cash and cash equivalents comprise cash at bank and in hand, short-­‐term deposits with an original maturity of six months or less.

DOCTORS HOSPITAL HEALTH SYSTEM LIMITED

Contributed surplus

Retained earnings

$ 12,358

$

14,565

1,640

-­‐

$ 12,358

(199)

$ 16,006

1. Significant accounting policies These interim financial statements have been prepared in accordance with International Accounting Standard No. 34, Interim Financial Reporting, using the same accounting policies applied in the January 31, 2016 audited consolidated financial statements.

2. Accounts receivable Accounts receivable are stated net of provisions for doubtful accounts of $6.8 million

(Unaudited)

$

Earnings per common share (expressed in Bahamian dollars): Basic and fully diluted $

DOCTORS HOSPITAL HEALTH SYSTEM LIMITED

26,528 920 27,448

(Unaudited) Notes to Interim Consolidated Financial Statements

Six months ended July 31, 2016

Six months ended July 31, 2016 (Expressed in thousands of Bahamian dollars)

Balance at January 31, 2016

Net income for the period

Dividends

Balance at July 31, 2016

$

July 31, 2015

Three months ended July 31, 2016 with comparative figures for the three months ended July 31, 2015 (Expressed in thousands of Bahamian dollars)

Revenues Patient service revenue, net Other Total revenues

Expenses Salaries and benefits Medical supplies Medical services Depreciation and amortization Other operating Utilities Bad debt expense, net of recoveries Government taxes and fees Insurance Outside services Repairs and maintenance Rent Dietary expenses Legal expenses

July 31, 2016