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THURSDAY, SEPTEMBER 21, 2017

$4.25 PRIVATE SECTOR DEMANDS: ‘WHAT’S PLAN NOW’ FOR BPL?

By NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net THE private sector yesterday questioned “what’s next” for Bahamas Power and Light (BPL) after it severed its relationship with its management partner, PowerSecure.

Edison Sumner, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chief executive, queried the Government’s and Board’s strategy for BPL going forward, given that the energy monopoly’s problems remained largely the same as those that existed prior to PowerSecure’s March 2016 appointment.

EDISON SUMNER “We still don’t know the terms of the management agreement, nor have we seen the business plan [tabled in the House of Assembly yesterday], something that See PG B4

MINISTER NOT WORRIED BY GB LOSING ‘MAIN FEEDER’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Minister of Tourism yesterday said he was “not concerned at all” about the three-month loss of the Grand Celebration cruise ship, despite fears Freeport has now “hit rock bottom”.

Dionisio D’Aguilar explained his Ministry was optimistic that the business lost from the vessel’s diversion will be offset by increased calls on Freeport from other cruise ships, due to hurricane-related devastation elsewhere in the Caribbean.

Emphasising that the city was already seeing increased cruise ship visits, Mr D’Aguilar told Tribune Business: “We’re not concerned at all, because this is very temporary.

“The ship has been seconded to assist with hurricane relief in the southern See PG B8

Hopes storm diversions offset Celebration Amid fears Freeport has ‘hit rock bottom’ Vessel brought 15-20% of operator’s clients

$4.29

$4.30

$4.30

Doomed to failure

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Christie administration doomed PowerSecure to failure by failing to complete Bahamas Power & Light’s (BPL) $600 million refinancing “within six months” of the management deal.

The BPL ‘business plan’, tabled in Parliament yesterday, openly warned the former government that a combination of political interference and failure to move swiftly on addressing its financial needs would block the much-needed reforms craved by all Bahamians.

In a section entitled ‘Risks to Executing the Business Plan’, which turned out to be spot on, PowerSecure said the $600 million Rate Reduction

BPL reform blocked

by PLP’s $600m refinance failure Solvency ‘impaired’ if political interference warning $140m equity plan for new power plant derailed Bond (RRB) that was critical to refinancing BEC’s legacy liabilities had to be placed within six months of the March 2016 management services agreement (MSA) being signed. It is now September 2017, and neither the RRB nor any other form of refinancing is close to being completed.

And top of the identified ‘risks’ is ‘political risk’, with PowerSecure demanding “strict adherence to disconnection policies” something that is especially ironic given the furore that erupted this week with the revelation of a ‘don’t disconnect’ list for politicians and top public officials.

Realising that itself and BPL would likely be susceptible to political interference, PowerSecure wrote: “Political risk exists as BPL executes on key performance improvement initiatives, including but not limited to, collection

processes including strict adherence to disconnection policies and pre-pay requirements, staffing levels and reduction in workforce initiatives.

“In other words, political interference with the execution of the business plan will impair making BPL a viable and solvent entity.” That warning went unheeded, with the former government both blocking PowerSecure’s bid for a base tariff increase and tying its hands by failing to refinance the utility.

See PG B5

PowerSecure targeted $100m in fuel savings

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

BAHAMAS Power & Light’s (BPL) former manager targeted more than $100 million in fuel savings as key to reducing electricity rates by 50 per cent come 2020.

PowerSecure’s BPL ‘business plan’, tabled in the House of Assembly yesterday, identified numerous

areas of cost savings that, if extracted, could provide the energy cost reduction long sought by Bahamian businesses and households.

Besides fuel costs, the plan revealed that Bahamians were being billed for “as much as $14 million annually” for energy they do not consume, as a result of losses and pilferage from BPL’s system.

These losses were said to be twice the energy industry

average, with BPL’s aged, inefficient and poorly maintained generation assets costing the country millions of dollars each year in unnecessary fuel costs.

PowerSecure also suggested that BPL was over-staffed by about 30 per cent, and recommended that it slash the workforce by nearly 300 persons in a staggered downsizing to save $13 million per year.

See PG B10

Key to 50% electricity rate slash by 2020 Bahamians paying $14m for unused energy BPL 30% over-staffed; delinquencies at 85%

DIONISIO D’AGUILAR

Govt pledges Fiscal Responsibility law ‘before’ next Budget

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government’s target of introducing Fiscal Responsibility legislation before the 2018-2019 fiscal year was yesterday praised by a civil society group, which said: “It’s worth getting it right.”

Matt Aubry, the Organisation for Responsible Governance’s (ORG) executive director, told Tribune Business that the timeline commitment given by the Deputy Prime Minister indicated the Government was “on the right path” with its reforms.

Acknowledging that ORG and many others wanted a Fiscal

Will set deficit, spending and subsidy curbs Governance reformer praises ‘realistic’ goal Backs consultation as ‘worth getting it right’ Responsibility Act passed “as soon as possible”, Mr Aubry conceded that the objectives outlined by K P Turnquest in the House of Assembly yesterday were “realistic”.

See PG B4

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PAGE 2, Thursday, September 21, 2017

THE TRIBUNE

OPPOSITION LEADER ‘UNAWARE’ OF BPL NON-DISCONNECT LIST

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net

THE Opposition’s leader yesterday said he was unaware off a ‘do not disconnect’ list at Bahamas

Power & Light (BPL), saying: “That is not a policy I would have adopted”.

Philip Davis, who had ministerial responsibility for BPL as minister of works under the former Christie administration, said: “I was not aware of

that, and that is not a policy that I would have adopted.

“They [politicians and top officials on that list] would have had to pay. If you receive a service you should pay unless you work out some arrangement with the vendor you owe.”

The Tribune revealed this week the existence of a special “do not disconnect” list for MPs, ministers, top civil servants and churches at BPL. The list, partially obtained by The Tribune, lists the delinquent accounts of six former PLP Cabinet ministers, two former PLP MPs, two private entities, and one sitting Cabinet minister, Renward Wells.

Mr Davis also expressed surprise over the $1.9 million fraudulent cheques scam that was uncovered at BPL, with funds being paid to fictitious vendors in a scheme that started prior to the general election.

His successor, Desmond Bannister, during a communication to Parliament

concerning the forensic audit conduced on BPL by the Ernst & Young accounting firm, said this arose from concerns held by the former Board.

Mr Bannister said the investigation identified 41 fraudulent cheques paid to 13 fictitious vendors, totalling $1.887 million, and three fraudulent cheques to legitimate vendors totalling $126,779.

“I was not aware of that.

I am surprised that the company would have conducted itself in such a way, but when you talk about fraud it is conducted in such a way that you don’t find out until later,” said Mr Davis.

“When you do find out that is when you act. This

PHILIP ‘BRAVE’ DAVIS is the first time I am hearing the details. I was aware shortly after the election that there was an investigation into over-payments or fictitious payments.”

Productivity council is ‘sorely needed’

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net THE creation of a Bahamian National Productivity Council was yesterday described as “sorely needed” by trade union officials.

A two-day National Tripartite Council Productivity legislation workshop, sponsored by the International Labour Organisation (ILO), was launched yesterday.

Dion Foulkes, minister of labour, said the workshop was designed to give social partners a better understanding of national productivity legislation in the region, and assist in formulating recommendations for the same in the Bahamas.

“The end result is the promulgation and enactment of our own productivity legislation, and the establishment of a Bahamian national productivity council,” said Mr Foulkes.

He added that during the workshop, social partners will evaluate the

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state of productivity in the Bahamas and be given an overview of how productivity councils in Barbados and Jamaica operate.

“In order for the Bahamas to compete in the global arena it is essential that our productivity is increased in both the public and private sectors,” said Mr Foulkes.

Peter Goudie, head of the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) employment and labour division, told Tribune Business: “It is a step forward in making the Bahamas a productive and profitable country to do business, and consequently increase employment numbers, which will assist in reducing crime and poverty in our country.”

He added: “Together with the soon-to-be-launched

apprenticeship programme, we hope the two initiatives will work hand in hand, and also with the Chamber and Government’s plans to assist SMEs. It should also assist in increasing employment and bring much needed investment by both Bahamians and foreigners to our country.”

The National Congress of Trade Unions’ (NCTU) president, Bernard Evans, commended the Minnis administration for committing to establishfa national productivity council.

“We need to boost productivity levels and propel the Bahamas’ economic competitiveness,” said Mr Evans. Trade Union Congress general secretary, Tyrone ‘Rock’ Morris, said a national productivity council is “sorely needed”.

THE TRIBUNE

Thursday, September 21, 2017, PAGE 3

BPL barely avoids Inagua ‘disaster’

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net BAHAMAS Power & Light (BPL) almost ran out of fuel on Inagua last weekend, a Cabinet Minister yesterday revealing that “disaster” was barely avoided.

Desmond Bannister, minister of works, told a Chamber of Commerce breakfast meeting that BPL’s service and operations “leave a lot to be desired”, having suffered from “ad hoc managerial practices and poor financial decisions”.

He revealed on Friday past how he was advised that Inagua was going to run out of fuel for BPL’s generators over the weekend. “Upon inquiring, it appeared that management of BPL were unaware.

The planned supply of fuel would not arrive sufficiently early to help,” Mr Bannister said.

Almost ran out of fuel at weekend Island has just one generation unit Minister slams ‘gross mismanagement’ “Moreover, I was advised the back-up supplier, Morton Salt, would not supply the fuel since BPL owed them money. Fortunately, we were able to avoid disaster. However, it was clear to me that this type of ad-hoc managerial practices and poor financial decisions could not be permitted to continue. Since then, I have seen other incidents that concern me, most notably in Bimini and North Andros.”

Mr Bannister continued: “All of you have now heard of the negligent postMatthew inattention to the

Clifton plant, and so I shall not dwell on it. However, my visit to Inagua exposed the naked truth of how badly our assets are in disrepair. Inagua has three generators. I am told that for years only one of them has been operational.

“That one generator has a hose continually streaming water over it to keep it cool. So energy generation in Inagua has depended on water flowing from a hose to keep the generator cool, and none of our highly-paid executives have done anything about it. Thankfully, that issue is now being dealt with, but the nagging question is: What would have happened had I not fortuitously visited Inagua?”

According to Mr Bannister, these examples illustrate the “basic truth” that BPL/ BEC’s service and operations “leave a lot to be desired”. He added: “By all indications, we have fallen short of the laudable goal of providing efficient and

DAVIS DEFENDS BPL EXECUTIVE SALARIES

By NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net THE Christie administration was unconcerned about the salaries earned

by Bahamas Power & Light’s (BPL) top executives because it was focused on the bigger picture, the Opposition’s leader said yesterday.

Philip Davis, who as minister of works had ministerial responsibility for BPL under the former government, was responding after his successor, Desmond Bannister, slammed the Management Services Agreement (MSA) with PowerSecure for failing to cap salary and benefits payments to executives appointed by the management company.

Mr Bannister said the MSA provided that PowerSecure and its appointees

were to be reimbursed “for all wages, salaries, bonuses and incentive compensation, benefits, pensions and other post-employment benefits, travel and business expenses, executive recruiting fees and other labour and labour costs described in (its) business plan, and reasonably incurred by the service provider in connection with the employment of the executive management”.

“The problem is that the former administration did not put any limits or caps on the salaries that we had to reimburse, so BPL ended up having to reimburse PowerSecure $76,626 for executive recruiting fees, since these persons that they sent to the Bahamas were not necessarily their employees, and BPL has to reimburse huge cumbersome salaries to executives that PowerSecure ostensibly sought out and brought

to the Bahamas,” Mr Bannister said.

“These persons were paid salaries that may have been the norm in their commercial environment, but are certainly not in line with the local standards for financial remuneration.” Mr Bannister said former BPL chief executive, Pam Hill, was paid a salary of $25,000 per month; housing benefits of $6,000 per month, down from $8,719 per month initially; and other monthly benefits of $3,833.33.

“Under the MSA that the former administration kept confidential for so long, these monthly costs of $34,833.33 had to be reimbursed by BPL, which means that the Bahamian people paid for it as well as $27,322.46 in travel costs and $23,637.55 in relocation costs for the chief executive. For quite some See PG B9

affordable electrification to the general public.

“Unfortunately, BPL has been suffering from a severe case of gross mismanagement which has severely hampered its ability to perform efficiently.”

Mr Bannister expressed confidence in the new BPL Board, headed by chairperson Darnell Osborne.

“I have every confidence that they will succeed,” he said. “They will improve the satisfaction index of the Bahamian consumer, which has spiralled to all-time lows as a result of the high cost and unreliability of power generation in the Bahamas.”

HON. DESMOND BANNISTER, MP for Carmichael is pictured speaking in the House of Assembly yesterday. Photo/SHAWN HANNA

PAGE 4, Thursday, September 21, 2017

Govt pledges Fiscal Responsibility law ‘before’ next Budget From pg B1 However, he promised that ORG and others would not “let up on the pressure” for the Government to fulfill its pledges of greater transparency and accountability, especially when it comes to its finances.

Mr Aubry was present in the House of Assembly yesterday to hear Mr Turnquest, who is also minister of finance, also promise that there would be extensive public consultation on the legislation before it went to Parliament.

“We expect the draft Fiscal Responsibility legislation will be consulted on and finalised before the next Budget year, when it is scheduled for

implementation,” the Deputy Prime Minister said.

He added that both the International Monetary Fund (IMF) and Moody’s were in favour of such a move, which was perceived as the Government “taking charge of its fiscal house”.

“They see this move as key to the introduction of fiscal discipline,” Mr Turnquest added, “and securing improvements in the overall management of the public finances.”

He reiterated that an IMF technical team was helping to “design the policy and operational framework” for the Fiscal Responsibility legislation, with the Government seeking to balance ‘set-in-stone’

Private sector demands: ‘What’s plan now’ for BPL? From pg B1 we have requested from the beginning,” Mr Sumner said.

“The fact that they made the decision to sever ties, I guess, speaks to the relationship between BPL and PowerSecure. One of our concerns would be over the future of the company? Are they going to revert to the old management, or will there be new executives?

“Are they going to go through a streamlining process to make the company leaner, and are they going to engage the private sector

on renewable energy and promoting solar and LNG facilities?”

Mr Sumner added: “The announcement certainly came as an interesting twist. This is something we certainly are going to be watching. Earlier this week we met with BPL’s Board to discuss ongoing partnerships with BPL and the Chamber, and we are committed to working with management to bring about lower energy costs and improve energy efficiency If this separation will lead to those end gains, then they will have

THE TRIBUNE fiscal rules with the flexibility needed to respond to hurricanes.

A Fiscal Responsibility Act would force the Government to be more accountable and transparent in the management of the public finances, and require it to return to Parliament for approval to raise more money if it had to exceed the limits approved in the annual Budget.

‘Fiscal rules’, which set targets the Government cannot breach, such as maximum debt-to-GDP ratio, go a step further.

The Minnis administration yesterday indicated it is thinking of taking this step via the inclusion of certain restrictions.

Promising that the inclusion of ‘fiscal rules’ would be given “due consideration”, Mr Turnquest said the draft legislation would

seek to achieve a balanced GFS Budget annually. This would mean no new money being added to the $7.2 billion national debt, with any deficits caused solely through the repayment of debt principal.

The Deputy Prime Minister said there would be “limits” on government’s spending on civil service salaries, and associated benefits, and a “ceiling” on government subsidies to state-owned enterprises (SOEs) that this year are costing taxpayers $429 million.

He also took a swipe at the former Christie administration over its preelection spending binge, saying the legislation will “prevent the abuse of the public purse that we saw before May 10, which was nothing more than serving partisan self-interest”.

Mr Aubry yesterday told Tribune Business he was “very optimistic” about the Deputy Prime Minister’s comments, and said ORG, its sub-committees and other civil society organisations were willing to assist the Government’s fiscal responsibility drive.

“In terms of the timeline we’d want it to be as soon as possible,” he said, “but the fact they [the Government] will be open to consultation is exciting, and it is more realistic that it lines up with the next Budget cycle.

“It’s worth it to take the time to do it right. We shouldn’t let up the pressure on it; it should be priority for all groups.”

Mr Aubry said the Fiscal Responsibility move was a key part of the Government’s consolidation programme, which ultimately involves eliminating the annual $300

million-plus fiscal deficits to put the national debt back on a more sustainable footing.

“The mechanism for public consultation remains to be seen,” he cautioned, “and we’re going to advocate that it’s as broad, comprehensive and inclusive as possible.

“Civil society groups will all make sure this thing gets the recognition in terms of how important this is....

From where we’re sitting, this (announcement) was a good indicator of being on the right path.”

Mr Turnquest, meanwhile, admitted it was “never an easy exercise” to cut government spending and implement austerity measures.

But he added: “To regain our credibility as a country, it’s essential to do what we say we’re going to do.”

the support of the business sector at large.”

Gowon Bowe, the Bahamas Institute of Chartered Accountants’s (BICA) president, told Tribune Business: “One of the important elements when you outsource management functions is there has to be clarity what decisions and authority an entity has, and that has to be honoured.

“We saw that there was the inability of PowerSecure to be able to raise rates they had proposed in their own business plan. I think that their ability to ingratiate themselves to the local community was hindered, and while they inherited a bad situation, maybe they should

have been more forceful in stating their case.

“The concern that would remain is what is the transition for management?

Is this going to be a contractual management-type arrangement. Will it be local management, and have they identified those players? We have to take a look at this now and say what did we get out of this arrangement, and what cost - if any - is there to severing the arrangement. If there is a cost that needs to be clearly articulated.”

Desmond Bannister, minister of works, did not indicate to the House of Assembly yesterday whether BPL and the Government would incur any further costs, such as a break-up fee, for severing the management agreement with PowerSecure.

While PowerSecure’s executives will remain in place at BPL until December 31 to facilitate the transition to what the Minister suggested would be an all-Bahamian management team, he gave no further details about the Government’s strategy moving forward.

The Bahamian private sector, in particular, will be especially eager to learn the Government’s plans, given that energy sector reform - with BPL the critical component - is key to boosting

GDP growth and economic competitiveness.

Unless BPL’s annual $20 million-plus losses are reversed, and the cost and reliability of energy transformed, the Bahamas’ ability to grow and create jobs for an expanded population will continue to be impaired. With BPL still plagued by outages, much remains to be fixed in the Bahamas’ national energy infrastructure.

The ‘business plan’ left behind by PowerSecure identifies many of BPL’s numerous financial, technical and operational challenges, and provides something of a ‘road map’ on how to solve them. It remains to be seen whether anyone will take this up.

Prior to addressing Parliament, Mr Bannister yesterday confirmed Tribune Business’s exclusive revelation that PowerSecure and BPL had agreed to “amicably” sever their business relationship as of Monday, September 18.

PowerSecure, through its Bahamian attorney, Brian Simms QC, had rejected the Board’s allegations regarding breaches of the Management Services Agreement (MSA) by itself, Mr Bannister said.

The US utility operator had instead “itemised certain alleged breaches

by the Board of BPL, both current and former”, with Mr Bannister saying it had “accepted the repudiation of the MSA”.

Mr Bannister told the Chamber breakfast that BPL had paid a total $9.199 million to PowerSecure, and said: “We shall have much time to reflect on the value of this investment.

“Whilst PowerSecure undoubtedly meant well, there is much to be said for cultural knowledge. Placing an otherwise successful entity in the midst of an alien culture generally operates to the detriment of both. There is also much to be said for familiarity with business norms, and for for immunisation from local political influence.”

Paul Maynard, the Bahamas Electrical Workers Union’s (BEWU) president, told Tribune Business yesterday: “As far as I’m concerned I thought PowerSecure came here and put systems in place. I can’t say anything bad about them.

“Other people will have their opinion. Pam Hill had a lot of respect for the union.

Whatever problems we had, she did her best to solve them the right way. It is what it is. They will do what they have to do. It is what it is.

The Government is going to do what they feel is necessary. They have the mandate to run the country.”

PowerSecure signed a five-year management agreement for BPL in March 2016. It has been in place for a year-and-a-half, with the contract offering PowerSecure a base fee of $2 million per year ($10 million in total), and a potential maximum of $25 million ($5 million per year including a $3 million performance peak).

THE TRIBUNE

Thursday, September 21, 2017, PAGE 5

Doomed to failure From pg B1 It is also unclear whether BPL received $75 million in interim or ‘bridge’ financing that its now-former management partner said was essential “immediately” to begin work on 140 Mega Watts (MW) of new generation capacity.

“If the rate reduction bonds are not underwritten or fully subscribed whereby the BEC debt is paid in full, pension liability is funded and approximately $140 million of equity is funded into BPL within the first six months of the MSA, then BPL will not be able to execute its performance improvement initiatives in a timely manner,” PowerSecure warned.

Acknowledging the difficulties and risks associated with such a major refinancing, the PowerSecure-authored ‘business plan’ suggested several steps that could be taken to ensure the RRB was placed and subscribed for by Bahamian and international investors.

The US utility operator also included what in effect

was a ‘poison pill’ deadline regarding the RRB, adding that it would be entitled to its full $3 million annual performance fee if the bonds were not issued by March 2017.

Arguing that this treatment should extend for every year the RRB was not placed, PowerSecure wrote: “In the event that the rate reduction bonds are not underwritten or fully subscribed within the first year, then PowerSecure should not be held responsible for the impact such delay or failure has on the operational performance initiatives, and be entitled to the entire performance incentive fee for the first year of the MSA. The same arrangement would exist for each subsequent year.”

Many observers are likely to frown at such a ‘penalty clause’, but the BPL business plan reiterates in numerous places how vital the refinancing of the Bahamas Electricity Corporation’s (BEC) legacy debts is to turning the utility monopoly around and reforming the energy sector.

“PowerSecure’s ability to execute the modernisation strategies rests on the ability to raise the financing required to fund more than $450 million of capital investments,” the BPL business plan said.

“Any delays in the interim financing ($75 million) or Rate Reduction Bond issuance will delay the plan as designed, and limit the options available to reduce the cost of service” to Bahamian businesses and households.

The Christie administration is thought to have baulked at placing the RRB because it would likely have resulted in a small increase in Bahamians’ electricity bills, something that was not desirable prior to a general election.

The BPL business plan suggests that the $600 million bond, earmarked for placement in January 2017, would have added a $0.03 (three cent) per kilowatt hour (KWh) charge to consumer bills for the first five years to meet interest payments to investors. This charge would then rise to four cents per KWh for the remaining 20 years of the 25-year bond.

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Another $100 million RRB tranche was planned for January 2018, which would have added a smaller charge to BPL customers’ bills in order to meet the investor repayments.

The former government is also understood to have encountered difficulty in arousing investor interest in the RRB, with institutions viewing the 6.85 per cent interest rate as too low for the risk they were taking, amid calls for BPL to fix its underlying problems before they would invest.

Desmond Bannister, minister of works, previously told Tribune Business that the Christie administration appeared to have abandoned the RRB option.

But, taking a similar stance, he reiterated to this newspaper that the Minnis administration would not support a refinancing

solution that raised electricity costs for Bahamians.

The BPL ‘business plan’ confirmed that the RRB proceeds would be used to pay off BEC’s $315 million in legacy debt, and fill the $110 million ‘hold’ in its employee pension plan.

The remaining $140 million balance would be transferred to BPL, which would use the monies to pay off the initial $75 million in ‘bridge’ financing.

“BPL will use the interim financing ($75 million) to set up the planning, engineering and design of the generation modernisation capital investment at Clifton Pier,” PowerSecure said of its intentions to build a new 140 MW power plant, which were never fulfilled.

This would leave $65 million for “working capital and capital expenditure”,

and the business plan added: “Through the financial modernisation strategies presented above, more than $140 million of capital will be available to support the working capital and modernisation strategies.”

PowerSecure said the $140 million capital contribution from the refinancing would have given BPL $670 million of net equity, adding to $520 million in net assets on an “unencumbered balance sheet” with no liens or security attached.

With $105 million in “positive working capital”, PowerSecure said BPL would have been “on track to generate, or have generated, $70 million of EBITDA” by 2016 through executing the initial components of 60 performance improvement initiatives.

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PAGE 8, Thursday, September 21, 2017

Minister not worried by GB losing ‘main feeder’

From pg B1 Caribbean. They’ve done this before. This is nothing earth-shattering to concern ourselves too much about.”

He added: “There will be some loss of business,

THE TRIBUNE but I’m hoping that whatever the loss of business is, we will gain by the detour of cruise ships to Freeport from those more southerly Caribbean countries

Employment Opportunity

Merchandiser

Main Duties & Responsibilities •

To ensure that all Coca-Cola Brands are properly displayed and merchandised in the market place.

Duties Include but are not Limited to •

•

•

•

•

•

• • •

To provide scheduled visits to all listed accounts, ensuring that the accounts is properly merchandised and point of sales material is in place.

Monitoring of all coolers, racks and any other point of sales placed by the company.

Assistance with organizing and setting up of all product sampling in the market.

Assistance with market surveys, documentation of findings and report to Sales Manager.

Assistance, where needed, with servicing coolers, racks and displays, ensuring that products are stocked and priced correctly.

Merchandisers are to report to work on time daily as scheduled and in accordance with the company dress code and MUST have employee ID present.

Making up of banners for display.

To perform other duties as requested.

Identify recommendations to contribute to risk reduction and sustainable performance

Qualifications & Experience • •

High School Diploma Valid Driver’s license

Skills/Core Competencies • •

Good communication skills Time management Caribbean Bottling Co. Sir Milo Butler Highway Nassau, The Bahamas vbain@cbcbahamas.com jfountain@cbcbahamas.com

A DYNAMIC LANDSCAPING COMPANY HAS A VACANCY FOR AN

ACCOUNTANT

Summary Individual participates in the preparation of monthly accounts, account payments, receivables, and monthly profit and loss statements. Also includes maintenance of balance sheets, subsidiary ledgers and leading financial projects. Prepares journal entries, monthly closing and accounting analysis and supports management in carrying out responsibilities in the accounts department.

Essential Duties The essential duties and responsibilities are listed below.

• Prepare financial statements and reports including Profit & Loss statement and Balance Sheet • Record financial transactions and maintain accurate financial records • Ensure accurate and appropriate recording and analysis of income and expenses • Input financial data into ledger accounts and reconcile monthly • Prepare monthly management reports and provide analysis and recommendations to management • Compile, enter, and post monthly adjusting journal entries • Compute VAT taxes owed and prepare VAT tax returns, ensuring compliance with payment, reporting and other tax requirements • Review and resolve accounting discrepancies and irregularities • Prepare and analyze budget, and assist other staff with preparation of budgets • Prepare comparative reports of budgeted-to-actual costs • Manage accounts payables; review invoices for accuracy and ensure that bills are paid on time • Manage accounts receivables and ensure bills and statements are sent out to

customers on a timely basis and early follow-up carried out on delinquent accounts • Provide information to auditors and external accountant(s) to enable annual audit and creation of financial statements • Advise staff regarding financial reporting and accounting policies • Oversee, supervise and train direct reports and ensure that work is carried out on a timely basis • Participates in annual performance evaluations of direct reports • Review payroll and ensure that salaried workers are paid on time • Conduct reconciliation of bank account(s) and credit card statement(s) • Implement internal controls to ensure financial security • Maintain paper and electronic filing systems • Responsible for wire transfer transactions • Ensure the security of financial information by completing QuickBooks

backups Make best-practices recommendations to management on financial matters • Make recommendations to improve the financial position including reducing costs and increasing revenue and profit and identifying investment opportunities • Responsible for keeping Management informed about financial legal requirements Qualifications/Skills • Bachelor’s degree in Accounting • 5+ Years of Experience • Proficiency in use of Accounting software e.g. QuickBooks • Attention to detail and accuracy in accounting procedures • Knowledge of Microsoft Office (Word, Excel, PowerPoint, Excel, Outlook) • Ability to devise solutions to complex problems • Industry certifications (CMP, CMT, CLT, FCLC) • Strong communication, planning and organizational skills • Ability to work independently and in team settings

Benefits are commensurate with Job Experience. Please send Resume to hrnassau@gmail.com. Deadline – Friday September 29, 2017.

Only those candidates short-listed will be contacted.

because they can’t be visited due to hurricane damage.”

Mr D’Aguilar said the cruise lines were already diverting vessels to the Bahamas “of their own volition”, and added: “They know we’re here, they have to find itineraries for their ships, and we’re the closest place to Miami and Fort Lauderdale.

“We’re a natural fit. I’m inclined to think we’re a natural fit when they’re looking for ports to visit.

This is what my technical team said, and that’s what we’re thinking. We were already getting detours here anyway.”

Mr D’Aguilar’s comments are unlikely to reassure all Freeport tourism industry participants, especially those in the retail and restaurant sectors, and tour/excursion providers, many of whom have been reeling for months as a result of the Grand Lucayan’s near year-long closure.

Many view the Grand Celebration’s three-month departure until December 23 as merely the latest blow for Grand Bahama, some even going so far as to describe it as “the last nail in the coffin” for Freeport’s tourism.

One Freeport-based attorney, speaking on condition of anonymity, said of the vessel: “That was the last little bit of business Port Lucaya enjoyed.

“We now have no tourism product. I would say that’s the last little piece that was left. That’s all gone, and that’s the only people we had. It’s truly, truly dead now. We could not be worse off. We’ve definitely hit bottom now.”

David Wallace, a principal in the all-Bahamian group that has invested more than $1 million to develop the Pirates Cove Water Theme Park, said the Grand Celebration’s departure would have a material

impact as it accounted for 15-20 per cent of the attraction’s customer base.

Estimating that the cruise vessel brought an average 1,700 persons to Freeport from Florida “every other day”, Mr Wallace said around 150 typically visited Pirates Cove.

However, emphasising that Freeport and its tourism industry “can’t give up”, Mr Wallace echoed Mr D’Aguilar’s belief that cruise ship diversions from the southern Caribbean could offset the Grand Celebration’s three-month absence.

Urging the Ministry of Tourism and Grand Bahama Port Authority (GBPA) “to sell Freeport as a destination”, he told Tribune Business: “What I think might happen, while I’m not able to confirm it yet, is the devastation in some of the southern Caribbean islands will open up Freeport to the cruise lines.

“We believe the port of Nassau is up to capacity.

We think this is a wonderful opportunity for the Ministry of Tourism and Grand Bahama Port Authority to go out and sell Freeport as a destination that survived the hurricane, and is a port to call on.

“We’re hoping that while the restoration process for those islands begins, it gives us an opportunity to be a port that the cruise lines can visit.”

Mr Wallace said that with the Grand Lucayan’s closure taking out 59 per cent of Grand Bahama’s room inventory, the Grand Celebration had been “picking up the slack, and filling the void”, for local businesses and taxi drivers.

“The Celebration will be missed and we look forward to it coming back as soon as possible,” he added. “We recognise they’re doing humanitarian service, but we’re hoping it returns.

CALL 502-2394 TO ADVERTISE TODAY!

“We continue to be challenged, but we can’t give up. We’ve got to keep going back and look for another way.”

Sarah Rolle, principal of Ocean Motion, a Taino Beach-based watersports business, told Tribune Business that the Grand Celebration’s departure had temporarily cost the island its “main feeder” for the tourism industry for the next three months.

With the vessel operator having previously promised to bring a second vessel to Grand Bahama in April 2018, both she and Mr Wallace expressed hope that its deployment could be advanced to compensate for the Grand Celebration’s loss.

“It’s going to impact us tremendously,” Ms Rolle told Tribune Business.

“They really are the main feeder for the island at the moment, both in beds overnight and day trippers.

“What was great about the Celebration is they’re good for the community because the business is spread; everyone is impacted, from the taxi drivers to the maids in the hotel, tour operators and shop owners - everyone gets a piece of the pie. It’s going to be a huge impact on every level.”

Ms Rolle added that the Grand Celebration was also “the main feeder” for the 190 rooms that remain open at the Grand Lucayan’s Lighthouse Pointe property, while providing an alternative means of access to Grand Bahama that countered its high air fares.

“It’s not good news, and the people on the front lines know how serious it is,” she reiterated. “We are waiting to see what else is in the works. We’re hoping we hear something soon, and are also hoping they come back.

“They say they’re coming back on December 23, and were looking at bringing a second ship in April. That was what they’ve put out.

It’s a good product, and we are just hoping we can build back up on that product with our location. It’s a good combination.”

THE TRIBUNE

Thursday, September 21, 2017, PAGE 9

Davis defends BPL executive salaries From pg B3 time we paid travel costs for a chief executive who lived in the Bahamas from Monday to Friday but spent her weekends elsewhere,” said Mr Bannister.

Responding, Mr Davis said: “We [the former government] were not concerned about the salary because we looked at where we wanted to take

BPL. We looked at industry standards worldwide.

“There were several other large companies that participated in the Request for Proposal. Other proposals would have cost the Government much more, and so we settled on PowerSecure. The fees were not based just on absolute terms; it was based on performance. There were some key performance

indicators, and once they achieved those things they would have earned.

“There were certain indicators that were not met, but not because of them but because of decisions being taken by the Government. The question is now what are the conditions under which they will separate.”

Mr Davis, justifying PowerSecure’s selection as BPL’s manager by the former Christie administration, added: “ When you look at the business plan and what they committed

Share your news The Tribune wants to hear from people who are making news in their neighbourhoods. Perhaps you are raising funds for a good cause, campaigning for improvements in the area or have won an award. If so, call us on 3221986 and share your story.

Employment Opportunity

Diesel Mechanic Main Duties & Responsibilities Maintain all company vehicles and ensure that they are working properly Duties Include but are not Limited to • Repair diesel and gasoline engines • Work with minimal or no supervision • Ability to perform repairs in a timely manner • Use pneumatic tools to change tires • Use pressure washer for cleaning of vehicles and engines • Report to work on time, or notify the Supervisor concerning lateness or absence • Perform other duties as requested Qualifications & Experience • High School Diploma • Valid Driver’s license Skills/Core Competencies • Knowledge of diesel and gasoline engine overhaul, repairs and related systems • Ability to troubleshoot and analyze problems associated with diesel and gasoline engines • 3-5 years’ experience in diesel and gasoline engine overhaul and repairs • Ability to manage time wisely • Ability to remain productive without supervision Caribbean Bottling Co. Sir Milo Butler Highway Nassau, The Bahamas vbain@cbcbahamas.com jfountain@cbcbahamas.com

to do, you would find that the right decision was made at the time.”

As for the Minnis administration’s allegations of lack of transparency, Mr Davis said the Christie administration had not released the PowerSecure business plan and MSA because there were still several details being “ironed out”.

“We did not release it because it was a confidential document, and there were a lot of things still being ironed out between BPL and PowerSecure,

and unfortunately time did not permit us to do so,” he added.

“The implementation of various aspects of the plan were still in discussion. For example, he would have indicated the amount of employees they wanted to terminate. The Government was not in favour of letting go. We were not in agreement with that, and were working on how to address that.

“The other issue is that PowerSecure was a publicly traded company on the New York Stock Exchange

and there were certain rules that govern their relationship with others. That was part of the consideration.”

PowerSecure’s termination as BPL’s manager may not go down with the US embassy, or the federal government in Washington D.C.,both of which lobbied hard for the US utility provider to get the contract.

ADVERTISE TODAY! CALL THE TRIBUNE TODAY @ 502-2394

PAGE 10, Thursday, September 21, 2017

THE TRIBUNE

PowerSecure targeted $100m in fuel savings From pg B1 Pointing out that BPL’s bad debt provisions were increasing by around $11 million per year, PowerSecure said this together with an 85 per cent customer delinquency rate indicated a high level of dissatisfaction by Bahamians with the energy monopoly’s service and performance.

While PowerSecure will have produced its BPL ‘business plan’ in 20152016, the contents are just

as relevant today because so little has changed. The US utility operator identified fuel as the most significant savings source open to BPL, due to its ‘high heat’ or burn rate and inefficient management of generation assets.

BPL’s aged generation turbines have to burn considerably more oil than the energy industry average to generate electricity, while the inability of Clifton Pier to meet New Providence’s base load demand - due

to old, poorly maintained equipment - has forced BPL to rely more on the Blue Hills plant and its more expensive fuel.

“Following a downturn in the economy and several other factors, BEC has not been able to maintain and invest in needed upgrades,” the BPL ‘business plan’ said.

“As a result, Blue Hills has been used to supplement generation instead of just providing for peak demand as originally intended.

“This is significant because, at current fuel prices, a kilowatt hour of power produced at Blue Hills costs almost twice as much as a KWh produced

at Clifton Pier. Using Blue Hills is costly and inefficient because its assets run on automotive diesel (ADO), a less efficient, more expensive fuel source.”

PowerSecure planned to construct a new 140 Mega Watt power plant at Clifton Pier as the centrepiece of efforts to address these issues, adding: “A new, high efficiency power plant at Clifton Pier anchors the PowerSecure plan. Adding 140 MW there provides the leverage to minimise costly operations at Blue Hills.”

PowerSecure will now never have the chance to execute on this plan, which had the new generation

capacity coming on line by 2018. Explaining its $462 million capital investment plan for the five-year management agreement term that has now ended, the operator said up-front expenditure would enable BPL to operate more efficiently with less fuel.

“New assets are essential to modernisation, along with upgrades to existing assets and improved operations and maintenance practices,” PowerSecure wrote in the ‘business plan’.

“By making an upfront capital investment in new assets, an estimate of 2015 budgeted fuel costs shows that more than $100 million can be saved in fuel costs. The plan attempts to reduce approximately $5 in fuel expenses for every $1 in depreciation expense on an annual basis.”

With fuel accounting for 62 per cent of BPL customers’ bills, reducing costs in this segment is critical if the utility - without PowerSecure - is to reduce all-in electricity costs to $0.214 per kilowatt hour (KWh) in 2020, a 50 per cent reduction from $0.44 per KWh in 2012.

Focusing on other potential cost savings, PowerSecure’s plan focused on achieving loss reduction and boosting revenues. “In some parts of the system, our due diligence revealed that more than 15 per cent of energy produced is either lost in delivery or is not accounted for in revenue,” the BPL business plan said.

“Either way, it is material.

We expect that reducing unaccounted billings to a normal industry benchmark can reclaim approximately $10 million per year for the business.”

PowerSecure said the 15 per cent loss rate was well above industry standards of 4-7 per cent, and added: “This is a costly performance shortfall at current rates, burdening customers with as much as $14 million annually for energy they do not consume.”

It added that line losses in the Family Islands were as high as 20 per cent, with these locations also consuming 35 per cent of BPL’s more expensive ADO fuel.

“A number of recurring expenses can be

more effectively procured and managed to reduce non-fuel operations and maintenance by 10 per cent to 15 per cent, including debt reduction,” PowerSecure suggested. “Staffing levels are high by about 30 per cent, creating an opportunity to save about $20 million.”

Desmond Bannister, minister of works, yesterday said the Government would not agree to such a BPL downsizing, even though PowerSecure argued that it “has become a business necessity to reduce the size of the workforce” and bring it into line “with the outer limits of affordability”.

PowerSecure had planned to reduce the BPL workforce by 35 come October 2016, using voluntary separation packages, with 233 redundancies targeted for August 2017.

This strategy delayed the payment of $9.5 million in severance costs, with the collective 268 headcount reduction - from 1,061 to 793 - saving $15.8 million in annual salaries.

With BPL’s wage bill reduced from $63.4 million to $47.7 million, PowerSecure estimated this would shave almost three cents per KWH of customer bills.

“An examination of BEC’s budget reveals several areas of potential cost reductions, including customer bad debt, excess inventory and lube oil,” PowerSecure said.

“For example, lube oil alone can be more effectively procured and managed to reduce non-fuel operations and maintenance by $6 million compared to the 2015-2016 budget. Also, the bad debt provision is over $90 million and is increasing by roughly $11 million per year, which underscores why improving customer operations is a plan priority.

“Today, customers apparently do not see the value, as indicated by more than $10 million in annual bad debt expense. Customers do not experience consistent, accurate, reliable interactions with the utility, which has led to a customer delinquency rate of 85 per cent.”

NOTICE

MARKET REPORT WEDNESDAY, 20 SEPTEMBER 2017

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

BISX ALL SHARE INDEX: CLOSE 1,863.18 | CHG -0.03 | %CHG 0.00 | YTD -75.03 | YTD% -3.87 BISX LISTED & TRADED SECURITIES 52WK HI 4.38 19.17 9.09 3.70 1.96 0.15 6.47 8.60 6.30 10.60 14.49 2.52 1.60 6.00 10.00 11.00 3.42 7.25 12.51 11.00

52WK LOW 4.05 17.43 8.19 3.50 1.26 0.12 3.80 8.40 5.83 9.46 10.00 2.18 1.50 5.80 8.75 7.01 3.41 6.60 11.93 10.00

1000.00 1000.00 1000.00 1000.00

900.00 1000.00 1000.00 1000.00

PREFERENCE SHARES

1.00 105.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 105.00 100.00 100.00 10.00 1.01

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

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

E J K L M N

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

52WK LOW 100.00 100.00 100.00

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

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

SYMBOL FBB17 FBB18 FBB22

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

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

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

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

MUTUAL FUNDS 52WK HI 2.08 3.96 1.96 170.77 146.34 1.50 1.67 1.58 1.10 6.99 8.54 6.15 10.52 11.46 10.46

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

LAST CLOSE 4.28 17.43 9.09 3.65 1.39 0.14 3.92 8.60 6.10 10.48 10.01 2.52 1.55 6.00 9.75 7.08 3.42 7.01 12.50 10.00 1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.01 LAST SALE 100.00 100.00 100.00 109.55 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

CLOSE 4.28 17.43 9.09 3.65 1.39 0.14 3.92 8.60 6.10 10.48 10.01 2.49 1.55 6.00 9.75 7.08 3.42 7.01 12.50 10.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

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

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

CLOSE 100.00 100.00 100.00

CHANGE 0.00 0.00 0.00

109.64 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.09 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

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

VOLUME

3,334

VOLUME

NAV 2.08 3.96 1.96 174.30 146.25 1.50 1.63 1.58 1.08 6.92 8.03 6.15 10.52 11.46 10.01

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

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

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

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

P/E 9.2 18.7 N/M 6.8 N/M N/M -4.6 15.0 9.0 19.4 17.9 24.4 3.4 5.0 12.7 12.3 3.7 -11.6 17.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

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

INTEREST 7.00% 6.00% Prime + 1.75%

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

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

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

YTD% 12 MTH% 2.55% 4.51% 1.07% 1.53% 1.38% 2.48% 3.48% 4.01% 3.17% 7.00% 2.15% 4.22% -1.93% -1.89% 0.81% 2.21% 2.28% 1.30% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69%

NAV Date 31-Jul-2017 31-Jul-2017 28-Jul-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 31-May-2017 30-May-2017 30-May-2017 30-May-2017 30-May-2017 30-May-2017

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

YIELD 1.87% 5.74% 0.00% 5.75% 0.00% 0.00% 0.00% 3.49% 3.61% 3.44% 5.69% 2.41% 3.87% 4.83% 4.62% 0.00% 9.94% 2.00% 4.96% 0.00%

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

IN THE ESTATE OF VANCE MAJOR a.k.a VANCE WADSWORTH HUNT MAJOR late of Sky End Road, Eastern Estates in the Eastern District of the Island of New Providence one of the Islands of the Commonwealth of The Bahamas, deceased.

NOTICE is hereby given that all persons having any claim or demand against the above Estate are required to send the same duly certified in writing to the Undersigned on or before the 27th day of October, A.D. 2017, after which date the Executrix will proceed to distribute the assets having regard only to the claims to which she shall then have had notice.

AND NOTICE is hereby given that all persons indebted to the said Estate are requested to make full settlement on or before the date hereinbefore mentioned.

MERIDIAN LAW CHAMBERS Attorneys for the Executrix Chambers, P.O. Box N-168, East Bay Shopping Center, East Bay Street, Nassau, Bahamas. www.meridianlawchambers.com LEGAL NOTICE BAGNON WEALTH MANAGEMENT LTD. (In Voluntary Liquidation) Notice is hereby given in pursuance of Section 138 of The International Business Companies Act, 2000 (as amended) that the Shareholder of the above-named company by Resolution passed on the 19th day of September 2017 resolved that the company be wound up voluntarily forthwith and that the Liquidator is Mr. Bennet R. Atkinson of Ronald Atkinson & Co., Chartered Accountants, Marron House, Virginia and Augusta Streets, P.O. Box N-8326, Nassau, Bahamas.

All persons having claims against the above-named company are requested to submit particulars of such claims and proofs thereof in writing to the Liquidator, Mr. Bennet R. Atkinson, Marron House, Virginia and Augusta Streets, P.O. Box N-8326, Nassau, Bahamas, not later than the 19th day of October 2017, after which date the books will be closed and the assets of the company distributed.

Dated the 19th day of September 2017.

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

Bennet R. Atkinson Liquidator

PAGE 12, Thursday, September 21, 2017

THE TRIBUNE

FED ANNOUNCES A START TO MODESTLY REDUCING ITS BOND HOLDINGS

By MARTIN CRUTSINGER Associated Press WASHINGTON (AP) — The Federal Reserve will begin shrinking the enormous portfolio of bonds that it amassed after the 2008 financial crisis to try to

sustain a frail economy. The move reflects a strengthened economy and could mean higher rates on mortgages and other loans over time.

The Fed announced Wednesday that it will let a small portion of its $4.5 trillion balance sheet mature

without being replaced, starting in October with reductions of $10 billion a month and gradually rising over the next year to $50 billion a month.

The central bank left its key short-term rate unchanged but hinted at one more hike this year

— most likely in December. The Fed policymakers’ updated economic forecasts show an expectation for three more rate increases in 2018.

The Fed’s policymaking committee approved its action on a 9-0 vote after ending its latest meeting.

Stocks turned lower after the announcement before finishing mixed. Bond yields rose, reflecting expectations of higher rates.

John Silvia, chief economist at Wells Fargo, said some investors appeared surprised that the Fed still expects to raise rates

by December. With Hurricanes Harvey and Irma clouding some economic data — temporarily raising gas prices, likely restraining hiring and potentially depressing growth in the July-September quarter — some analysts assumed the Fed wouldn’t have enough information by December to assess whether the economy had rebounded from the storms.

“A lot of people were thinking (the Fed) would pass in December,” Silvia said.

At a news conference, Chair Janet Yellen said the Fed’s two rate hikes this year and its decision to begin reducing its bond holdings were signs of a solid economy and job market.

“The basic message here is U.S. economic performance has been good,” Yellen told reporters.

Yellen also said the Fed still believes that

persistently low inflation — below the Fed’s 2 percent target rate for four years — is temporary. She said several factors have held inflation down: A job market still healing from the Great Recession, lower energy prices and a strong dollar, which has reduced the costs of imports.

She said the Fed would adjust its policymaking if it thought the causes of low inflation had become permanent.

Hurricane Devastation In its policy statement, the Fed took note of Harvey, Irma and Hurricane Maria, which it said had devastated many communities. But it said history suggests that the storms were unlikely to affect the national economy over the long run.

Under the plan the Fed announced, it will start to allow a slight $10 billion in holdings to roll off the balance sheet each month — $6 billion in Treasurys and $4 billion in mortgage bonds. That figure would inch up by $10 billion each quarter until it reaches $50 billion in monthly reductions in October 2018. After that, the monthly reductions will remain steady.

The Fed has telegraphed its move for months, and investors are thought to be prepared for it. Still, no one is sure how the financial markets will respond over the long run. The risk exists that investors could become spooked by the

rising number of bonds being transferred back into private hands. If that were to happen, long-term rates might surge undesirably high, which could weigh on the economy.

To avoid spooking investors, the Fed’s plan for shrinking its balance sheet is so gradual that the total would remain above $3 trillion until late 2019. Some economists say they think the figure could end up around $2.5 trillion, still far above the $900 billion the Fed held in its portfolio in pre-crisis days.

The question of when and how the Fed will manipulate its main policy lever — its target for short-term rates — in coming months is less clear. After leaving its benchmark rate at a record low for seven years after the 2008 crisis, the Fed has modestly raised the rate four times since December 2015 to a still-low range of 1 percent to 1.25 percent.

The Fed did lower its projection for its so-called neutral rate. That’s the point at which its benchmark rate is considered to be neither stimulating economic growth nor restraining it. That neutral rate dropped to 2.9 percent in the new forecast, down from 3 percent in the Fed’s June forecast.

The Fed has felt confident to raise rates because it appears to have met one of its key mandates: Maximizing employment. The unemployment rate is just 4.4 percent, near a 16-year low.

FEDERAL Reserve Chair Janet Yellen speaks at a news conference following the Federal Open Market Committee meeting in Washington, yesterday. (AP Photo/Pablo Martinez Monsivais)

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