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FRIDAY, SEPTEMBER 21, 2018

$4.90

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$4.86

PM intervenes on Lucayan ‘looting’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

HE Prime Minister “aggressively” intervened to prevent Hutchison Whampoa “looting” the Grand Lucayan on the eve of the Government’s takeover, Tribune Business was told yesterday. Michael Scott, chairman of Lucayan Renewal Holdings, the Governmentowned special purpose vehicle (SPV) that now controls the resort, confirmed to this newspaper that the Grand Lucayan could have been rendered inoperable by the former owner stripping it of key assets. Arguing that Hutchison Whampoa’s actions represented “a fundamental breach of contract”, and could have resulted in a legal battle, Mr Scott

* Forces Hutchison to reverse asset strip * Golf carts, IT moved on takeover eve * Seen as ‘fundamental contract breach’

MICHAEL SCOTT said the Government’s prompt action - led by Dr Minnis - had “avoided that happening”. He added that himself and other Lucayan

PRIME MINISTER HUBERT MINNIS Renewal Holdings directors - through the SPV - was to had been “horrified” when assume operational and tipped-off to what was management control at occurring on the night of Freeport’s anchor property. Among the assets September 10th, just hours before the Government involved were golf carts

‘Act of cruelty’ if govt Grand Lucayan buyer: ‘I ignored Grand Lucayan admit I was asking a lot’ By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net A CABINET Minister yesterday warned it would be “an act of cruelty and neglect” to allow the Grand Lucayan to become another Royal Oasis, with Freeport’s air arrivals down 56 percent in two years. Dionisio D’Aguilar, minister of tourism and aviation, while backing the Government guarantee for the Grand Lucayan’s purchase, said total visitors arrivals to Grand Bahama have seen a “steep dropoff” of just over 36 percent between 2015 and 2017. “From 4,000 rooms in 2002, I’m advised that the island today has an inventory of just 1,678 rooms.

We are talking about a 58 per cent decline in the physical inventory of Grand Bahama. We need more hotel rooms on the island. Grand Bahama needs this government’s intervention and we will not fail Grand Bahama,” said Mr D’Aguilar. “In 2015 the overall visitor arrivals, both air and sea, reached a high of 964,308. Two years later, in 2017, those numbers had declined to 614,570, a steep drop off of almost 350,000 visitors or a staggering 36.3 per cent decline. “If one were to look at just air arrivals in 2015, the island enjoyed air arrivals of almost 160,000. By 2017,

SEE PAGE 4

‘Legality’ cleared up: New web shop taxation in effect By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE web shop industry’s “sliding scale” tax structure took effect on Wednesday following changes to address operator concerns over its legality, a cabinet minister revealed yesterday. Dionisio D’Aguilar, minister of tourism and aviation, told Tribune Business he had been advised by Carl Bethel QC, the attorney general, that the new tax format - bitterly resented by many web shops took effect when he laid in Parliament, and signed off on, the latest changes to the Gaming House Operator Regulations. The Minister, who is responsible for gaming, said the amendments that introduced the “sliding scale” tax structure with May’s budget had used “the wrong terminology” to describe what should be used as the basis for calculating the amount web shops must pay. He explained that the definition previously employed could have been interpreted as meaning that the different sliding scale rates, from 20 percent up to 50 percent, should be applied to “all the money” that patrons pay. Mr D’Aguilar said it should actually be based on that sum minus the winnings paid out by web shops, so the Government has moved swiftly to

DIONISIO D’AGUILAR remove the term “revenue collected” from Regulation 57 and replace it with “all taxable revenue”. Some observers, though, will see this as the Government being forced to address a legal/regulatory loophole “after the fact”, given that the issue is part of the Judicial Review challenges brought against the industry’s new tax structure by the web shop operators. Sebas Bastian, Island Luck’s principal, in an affidavit supporting his firm’s action argued that the “revenue collected” definition was so vague as to make it “unenforceable” and contrary to the Gaming House Operators Regulations. He used it as a minor part of Island Luck’s Judicial Review, urging the Supreme Court to grant “a declaration that Regulation 57 (1) of the Gaming House Operator (Amendment) Act 2018 containing the term ‘revenue

SEE PAGE 6

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Grand Lucayan’s last potential buyer yesterday confirmed he sought a 20 percent electricity rate discount and hundreds of work permits, saying: “I’m not denying I was asking a lot.” Paul Wynn, the Wynn Group’s chief executive, told Tribune Business that any purchaser of the resort would require “hard core” taxpayer subsidies - especially to rebuild airlift - for the first several years after any deal was struck. Describing Grand Bahama’s lack of airlift as “the elephant in the room”, Mr Wynn argued that significant investment incentives/

THE GRAND Lucayan resort. concessions would be required to rebuild the island’s tourism product “from scratch” regardless of which government is in power. He spoke to this newspaper after the prime minister yesterday confirmed that Wynn Group’s escalating demands for taxpayer subsidies peaked at such a level that the Government had no option but to reject its offer and fall back on plans to acquire the Grand Lucayan itself.

and service vehicles, plus a host of IT-related devices such as laptops, ipads and computer monitors, which Hutchison Whampoa intended to redeploy at its other corporate offices in Freeport. Mr Scott, responding after Chester Cooper alluded to the dispute during his House of Assembly, confirmed the Opposition’s deputy leader was “correct” in what he had said about Hutchison Whampoa’s actions. “What they did was they took the view, some lawyer, that the handover was going to occur at midnight on September 10/morning of September 11,” the veteran attorney told Tribune Business. “They were in a hurry to get out on September 11, so we moved to take over management and control.

$4.93 Grand Lucayan’s financing needs may hit $124m

K PETER TURNQUEST By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

Dr Hubert Minnis, addressing the House of Assembly, said the Torontobased developer’s final demands - issued in July 2018 - required the Government to fund any losses it incurred and guarantee it earned a profits return of seven percent. It also wanted the Government “to ensure” it obtained a 20 percent discount to the prevailing

THE Grand Lucayan’s total capital financing needs, inclusive of the $65m purchase price, could almost double to $124m, the deputy prime minister revealed last night. K Peter Turnquest, concluding debate on the guarantee needed to secure $35m in acquisition financing, said the Government would come back to Parliament with a new resolution once the cost estimates were better defined. If the $124m figure proves accurate, it means a further $61m will have to be found. He said: “It is important to point out that the cost related to the acquisition of the property does not represent the sum total of the Government’s commitment to see this project through. We are in the process of finalising what we believe will be the necessary resources in order to ensure the property remains viable; to ensure we undertake the immediate renovations and repairs that may be required; that we provide sufficient marketing and other operational support necessary to secure the onward sale of the property. Current estimates put the total capital financing needs around $124m, including the purchase price.” Mr Turnquest said future resolutions, if needed, “will capture any

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* Wynn agrees sought 20% power discount * But says ‘hard core subsidies’ only solution * Warns airlift must be rebuilt ‘from scratch’

PAGE 2, Friday, September 21, 2018

THE TRIBUNE

ONLY TRIM THE TREE FOR VALID REASONS M

ANY employers struggle over whether or not to terminate employees who have proven themselves liabilities rather than assets. This struggle is perhaps linked to a number of factors, including the size of the talent pool; concern for the individual’s well-being; and the reputation a leader has when they are forced to sever ties with employees. Sometimes you question where you will find a talented employee to replace the one being released. Is the replacement going to be any better? How do you take bread out of that person’s mouth, and leave their families in the lurch, by removing the opportunity to earn an income from someone who just might be the sole provider? Will the person who has to say to the employee: “Your services are no longer required” be

IAN FERGUSON BY

viewed as a ruthless leader, or a weak, incompetent manager who feels threatened by the employee and has deficiency in talent management skills. The result, then, is a workplace filled with individuals who are not

performing near standard - and should have been released a long time ago. If you work in the civil service, or in many Bahamian private companies, much of what we are sharing resonates with you. We understand that the business of termination goes both ways. Employees FIRE their employers all the time. They walk off the job, tender their letters of resignation or, in a worst case scenario, they stay on the job physically but check out mentally. While there are some companies who have no issues terminating failing employees, we have seemingly embraced a culture where releasing unproductive employees is unpopular. In fact, there is a popular view that employees who are released for insubordination, lack of productivity, failing work ethics or any other major

infraction are unfairly dismissed, as there are seldom any established standards or clear consequences presented to these wayward workers for blatant disregard of the standards. Economists tell us that frictional unemployment is good for the economy. It celebrates the individual who leaves a job that is not a good fit for their passion and skills. It praises the company who says to an employee that your time in this company has come to an end for these VALID reasons. Releasing an employee who is not thriving allows them to relocate to a company where they are better suited. This is nature’s lesson to us. You trim the struggling tree to ensure its health, you sever the infected limb to save the body, and you remove and discard the rotten apple from the bag to rescue the

bunch. Our conversation today, as uncomfortable as it may be to many, serves to encourage the business community to secure the health of their companies and terminate responsibly. Here are some basic tips: • Ensure that the circumstances surrounding the termination of the employee fall within the confines of the labour laws of the Bahamas • Ensure that the employee leaves with an exit survey or some form of dialogue; a two-way conversation communicating displeasures on both ends • Ensure that every feasible company resource has been exhausted in training, motivating, coaching and developing the team member before the decision to terminate is made • Ensure that you have been able to demonstrate measurably the

inefficiencies and incompetence of the employee. These decisions cannot, and should not, be made subjectively • Get the POLITRICKS, bias and “hear say” out of the equation. Personality must not be the driving force behind these critical decisions. We are all different with different views, but amid our differences we can learn to work together in harmony. That is what makes us a civil, intelligent and progressive society. • NB: Ian R Ferguson is a talent management and organisational development consultant, having completed graduate studies with regional and international universities. He has served organsations, both locally and globally, providing relevant solutions to their business growth and development issues. He may be contacted at iferguson@bahamas.com.

This programme focused on the core competencies of successful practitioners, as well as development including the US-China trade issues; the potential consequences of the UK’s exit from the European Union (EU) via Brexit; and the EU in the new trade regime. The programme looked at the future role and value of the WTO, and discussed current issues that included

technological frontiers in intellectual property rights, biotechnology and genetically modified organisms, and the need to make the system better for economic development. Pictured from left Michael Maura, chairman of the Bahamas Chamber of Commerce, and president and CEO, APD Limited; Harvard Professor Robert Lawrence

- Professor of International Trade and Investment at John F Kennedy School of Government; Ava Rodland - project manager for The Bahamas WTO accession with the Ministry of Financial Services and Trade; Dr Craig VanGrasstek, Harvard adjunct professor of public policy; Anthony Ferguson, Chamber secretary and managing director, CFAL.

Eighth ‘Labour on the Blocks’ set for Saturday CHAMBER, THE Department of Labour is holding its eighth “Labour on the Blocks” job fair tomorrow at CV Bethel High School on East Street South. Staff from the Department and 22 businesses, including cruise ship recruiters and training companies, will be present for an event targeted at the constituencies of Bamboo Town, Pinewood, South Beach, Garden Hills and Nassau Village. There will be a special booth for individuals between ages 16- 29 who are interested in an internship that pays while learning on the job and in a classroom. Businesses present will meet, interview and potentially sign-up and hire attendees at the event that will last from 11am to 3pm.

Patrenda Brice, deputy director of labour, said: “This is an event where we are successfully answering the needs of job seekers as well as employers by effectively connecting eligible candidates with the right jobs.” The Department of Labour encourages all job seekers in The Bahamas or abroad, and employers with vacancies, to register in the Department’s recruitment database: www.jobseekers. bahamas.gov.bs Persons attending the “Labour on the Blocks” job fairs are asked to bring their NIB Smart Card, valid Government-issued identification such as a passport or voters card, and copies of resumes. Registering in the database in advance is recommended.

GOVT FOCUS ON TRADE WITH HARVARD

CHAMBER of Commerce executives and Government officials participated in the Harvard Programme to help prepare for the World Trade Organisation (WTO) accession and other trade issues. They heard from Harvard trade economists and policy experts about important topics, and engaged with trade policy professionals from around the world.

THE TRIBUNE

Friday, September 21, 2018, PAGE 3

OPPOSITION PEGS GRAND LUCAYAN COST AT $100M By NATARIO MCKENZIE

Government has already paid $10m, then $20m, now it will pay another $35m on mortgage, with interest, and that is $65m. Is there stamp tax on this sale? If so, we can assume from the negotiations so far that the Government has graciously relieved Hutchison from paying its fair share of that and so that’s another $6.5m. “Then there’s the interest on the bond; that’s another $2.8m, if we’re being conservative. Then there’s the stamp tax on the mortgage we know the Government has agreed to pay – that’s another $3.5m. Employee obligations that the Government has magnanimously agreed to shoulder the responsibility of are at

least another $8m for back pay and union obligations and severance. Again, I’m being conservative. “The Government will pay another $2m, being extremely conservative, to subsidise Hutchison’s losses until the sale closes. Let’s not forget this resort is losing millions of dollars every month. I will tell you that I think the closing will take longer than anticipated and it’ll end up being over $3m.” Mr Cooper continued: “Since we’ve established that the hotel loses $1.5m per month, let’s multiply that by the six months the Government actually believes it will take to find a buyer for the property, plus another two months to close the deal. That’s another $12m. “That’s assuming that the Government doesn’t feel gracious with the new buyer and cover all the taxes and costs again. Then there’s legal fees. I think we can safely say that Higgs and Johnson is not working on this pro bono. That’s 2.5 percent of the transaction.

That’s another $1.6m. To exchange the money given to Hutchison to US. currency with the VAT and stamp tax for that – another half a million. “Hutchison also told the Government they can’t have the napkins, or the plates or the cleaning supplies or the toilet paper in the resort that they’re purchasing for $65m. So they’ll need to replenish that. Let’s be conservative again and say that’s another half a million dollars. We’re well above $100m at this point.” The Exuma MP suggested there are “many more creative and less expensive ways for the Government to help the employees of Grand Lucayan, and the vendors around the resort and the people of Grand Bahama”. He added: “Perhaps the Government could have subsidised the losses of the hotel until a buyer could be found. It’s paying nearly $2m to Hutchison to subsidise Lighthouse Pointe now anyway. “Perhaps the Government could have instituted

a social welfare programme tailored to the employees after it forced Hutchison to honour the union’s agreement and pay out severance according to our laws. Perhaps the Government could have insisted that in order for Hutchison to continue to receive the level of concessions it does, then it would have to actively facilitate the sale of this property.” Mr Cooper further queried: “Why didn’t the Government just agree to cover the losses on the property rather than spending $30m cash, without telling the public, and incurring an additional $35m debt that it could least afford? “If this property is to quickly change owners, to do a flip, then why is the Government inserting itself in the middle of what should be a private sector transaction? If there is a buyer to flip the property to then why doesn’t the Government just bring the parties together and facilitate that transaction?”

becoming a “model” of how to reduce economic leakages. “In many ways we cannot compete on volume, and our unit prices will often be a little higher; in some cases much higher than items coming in. We can, however, compete on the value proposition that what we are serving is healthy and fresh, from farm to fork. Abaco has been leading the way in that regard, and Abaco Big Bird is one example,” said Mr Pintard. “I am advised that in the poultry sector, less than 15 per cent of the market is supplied by Bahamian poultry producers. With eggs it’ds even worse. The growth

potential is huge in that sector.” Mr Pintard said tourism on Abaco has the potential to expand into a niche market, using the various farms on the island to display the healthy ways a wide range of products are being produced. “We are making a number of things happen in the area of agriculture. The relationship between tourism and agriculture can be expanded in Abaco, and Abaco can become our model of how we can reduce economic leakage by increasingly satisfying market demand by ramping up our production,” he said. Pointing to the island’s tourism sector, Mr Pintard

added: “In terms of second home ownership, Abaco has been a pacesetter before we knew about Airbnb. Abaco was doing it all along. In tourism I’m advised that Abaco has been doing an exceptional job. “For the first six months of the year you have seen a

16.3 percent increase in air arrivals. Air arrivals account for some 89 percent of revenue generated by visitors. Tourism has an opportunity in Abaco to explode even further by creating linkages between other sectors such as agriculture and marine resources.”

Tribune Business Reporter

nmckenzie@tribunemedia.net THE Opposition’s deputy leader yesterday estimated that the Government’s Grand Lucayan purchase will ultimately cost Bahamian taxpayers “at least $100m”, branding the deal “ill-advised”. Speaking in the House of Assembly yesterday, Chester Cooper, pictured, said the acquisition was effectively a done deal as $30m had already been paid to Hutchison Whampoa, the seller. He argued that the purchase “seems rushed, ill-advised and a slap in the face, and said: “The Government appears to be most disingenuous in how it has framed this deal in trying to explain it to the Bahamian people. I believe this deal will ultimately cost taxpayers at least $100m. “This resolution is also flawed in that it asks the Government to approve funding of $35m. Where is the resolution to approve the $30m already spent, and

the more than $1m already given to Hutchison. Are we going to pretend that is not expenditure? “Will the Government not come clean with the Bahamian people and seek approval for that spending now, or will it neglect its own commitments to transparency and try to bring a supplementary appropriation bill for that money at some future date, hoping the Bahamian people do not notice? Where is the resolution for the stamp tax on the mortgage the Government has agreed to pay in this lopsided deal? That’s another $3.5m.” Breaking down his $100m estimate, Mr Cooper said: “The

MINISTER LAUDS POULTRY’S ‘HUGE’ GROWTH POTENTIAL By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net A CABINET minister yesterday lauded the domestic poultry sector’s growth potential as “huge” given that it currently supplies just 15 percent of the Bahamian market. Michael Pintard, pictured, minister of agriculture and marine resources, addressing the 15th annual Abaco Business Outlook

conference, suggested that the relationship between tourism and agriculture can be expanded with that island

FOR SALE

DPM: ‘REIMAGINE’ THE ECONOMY FROM SCRATCH THE Deputy Prime Minister has urged Bahamian entrepreneurs to “reimagine the economy” and how they would create industries such as tourism “from scratch” today. K Peter Turnquest, speaking at the Millionaire’s Mile Fireside Chat, an event held to mark the Small Business Development Centre’s (SBDC) launch, called on aspiring business owners to view the economy as “a blank canvas” and identify niche markets they could target and win. “Imagine the Commonwealth of The Bahamas as a blank canvas,” he said. “No tourism, no foreign direct investment; a pristine land of opportunity. What would you create? What would you do? “However you answer that question, that is the goal of the reimagined Bahamian economy: The creation of a set of circumstances where, whatever your imagination and creativity, your design

can be put to the test and implemented without barriers. What would you do? How would it work?” Mr Turnquest continued: “What would you do to create a tourism industry from scratch, given the gifts nature and providence have bestowed on The Bahamas?” The deputy prime minister encouraged his audience to be ambitious and think creatively in building a sustainable tourism industry. “According to the Adventure Travel Trade Association, the definition of ‘adventure’ in adventure travel is changing. Risky adrenaline activities are now only about half as popular as ‘experiencing a new culture’ in the definition of adventure travel,” he added. “How many ways can we package and present flora, fauna, food, culture, the architecture, the children’s game of The Bahamas, to the ‘adventure traveler’? What would it mean to Bahamians to be creative

in a whole other way, relying on wit and sustainable resources? “The Bahamas is steeped in history: We are the oldest parliamentary democracy in this region, we have stood at the crossroads of the era of the great pirates and privateers, we have survived and thrived in the time of the rum runners and the wreckers, we have been spongers. Columbus and the Eleutheran Adventurers, some of our most famous or infamous visitors. What about our bush medicine or the industrial potential of our farmland?” Mr Turnquest asked. “The Kingdom of Saudi Arabia’s Vision 2030 highlights one of my foundational propositions. In the area of building a thriving economy with rewarding opportunities, the skills and competencies of our children are one of the most important and cherished assets. To make the most of their potential, we will build a culture that rewards

determination, provides opportunities for all and helps everyone acquire the necessary skills to achieve their personal goals.” Acknowledging the bureaucratic impediments faced by many businesses, Mr Turnquest added: “The reimagined Bahamian economy would be one in which the entrepreneurial fate of the citizen is not determined by his or her ability to access capital, or concessions, or the ability to pick up the phone and call a politician to break the waves for him or her at the regulatory bottleneck. “That bottleneck would not exist, and the access barriers that plague our economy today would be removed. Imagine easy, simple, fair and transparent access to capital; to advice; to concessions and incentives.

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PAGE 4, Friday, September 21, 2018

THE TRIBUNE

Grand Lucayan buyer: ‘I admit I was asking a lot’ FROM PAGE ONE electricity rate - something that may have been difficult to arrange, since the Grand Lucayan is supplied by a privately-owned company in the shape of Grand Bahama Power Company (GBPC). Dr Minnis also revealed that Wynn wanted permission to employ 420 expatriate workers on construction at the Grand Lucayan, plus gain preapproval for the resort’s full-time workforce to be 15 percent non-Bahamian without the need to obtain work permits. Other demands included the Government “committing to buying or building a new airport” for Grand Bahama within two years; a tax-free casino operation; and annual marketing subsidies of $750,000 per year. Wynn and the Grand Lucayan would also not be subject to any tax increases. Wynn’s deal, in its final form, was supposed to be a joint venture with the Government, but the Canadian developer - currently working on its $120m Gold Wynn project at Goodman’s Bay in New Providence - wanted the Minnis administration to fund its 15 percent equity stake “up front instead of over time” as previously agreed. The prime minister yesterday indicated that Wynn sought to change the terms of their deal at the last-minute, just as the need to conclude the Grand Lucayan’s purchase was becoming critical amid Hutchison Whampoa’s repeated threats to close Freeport’s last mega resort property. The type, and extent, of

the incentives requested were impossible for the Government to stomach, Dr Minnis said, confirming previous Tribune Business reports that Wynn had wanted Bahamian taxpayers to finance the $65m purchase for it, and cover any losses and construction/repair costs, through the Public Treasury. “We again arrived at a point where we had a draft Heads of Agreement,” the Prime Minister said, recalling developments in July 2018. “However, after we gave Mr Wynn an absolute deadline to complete he presented us with changes to the Heads of Agreement. “The Government made it clear that the requested concessions could not be agreed. The escalated requests for concessions included an excessive number of work permits for both the construction and operating phases of the property, and requests for guaranteed returns on funds invested and requests for guaranteed coverage of any losses. “When the total financial value of the concessions being requested for the initial ten-year period exceeded the acquisition price plus the estimated cost to renovate the property, the Government’s decision on how to proceed on the Grand Lucayan became clearer.” Besides the $65m purchase price, Mr Wynn previously estimated that $45-$55m might be needed for resort renovations, and some $25m for airlift rebuilding/promotions. Based on the Prime Minister’s remarks, it appears that the developer was seeking concessions worth around $150m or more. Wynn’s last-minute

squeeze play seemingly forced the Government into “Plan B”, and a rushed, hasty deal to purchase the Grand Lucayan itself. The sales agreement with Hutchison Whampoa was signed on August 15, 2018, indicating the Minnis administration moved rapidly to finish negotiations amid fears the resort’s remaining Lighthouse Pointe property would be closed. Mr Wynn, when contacted by Tribune Business, said he could not recall asking Bahamian taxpayers (through the Government/ Treasury) to cover his financial losses and guarantee a seven percent return on funds invested. He pointed out, though, that he had never hidden from his position that massive subsidies would be required by any Grand Lucayan buyer - whether himself or someone else - to counter The Bahamas’ high operating costs, rebuild the stopover tourism product and make the deal commercially viable. Confirming the electricity rate and work permit requests, Mr Wynn told Tribune Business: “I was asking a lot. I did say it. I’m not denying it; it’s a fact. “Whatever it was, it was subject to negotiation, but I always said that without the airlift everything is irrelevant. It needs the airlift. I said that if we get the airlift, everything else [the value of other investment incentives] comes down.” Mr Wynn said “you can dress up the hotel all you want”, but without airlift to key North American tourist markets to bring in the necessary stopover visitor volume, the Grand Lucayan and surrounding strip/destination would still

fail to perform. “Really the most important subsidy to us was the subsidy to bring in the airlift,” he added. “There’s not going to be any airlift without some sort of subsidy. There’s nowhere to go. Without airlift it doesn’t matter what hotel is there; it can’t survive. “Nassau has a tremendous, tremendous advantage with the airport it has. Freeport does not have it. You have to build it from scratch. That’s an expensive proposition for whoever’s in power, whoever owns it [the Grand Lucayan]. “It needs some hard core subsidies for the first few years until it levels off. There’s no other option. I don’t care who is in there, AMR or Sunwing, you have to bring it in. It’s the elephant in the room that no one wants to talk about.” Wynn had initially teamed with Sunwing, part of the giant TUI travel group, and its Memories affiliate as hotel operator/ airline partners. Sunwing withdrew prior to Wynn’s pull-out, and Mr Wynn acknowledged that the “substantial amount” of airlift subsidy it had sought would have been difficult for the Government to agree to. The Canadian developer said The Bahamas was caught “between a rock and a hard place” in relation to the Grand Lucayan, since its high operating cost base and high-end tourism “brand” meant it could not compete with lower-priced, mid-market rivals such as Mexico, Jamaica and the Dominican Republic. Mr Wynn cited the $300 per month labour costs; energy priced at 12 cents

per kilowatt hour (KWh); and the ability to source most food and beverage needs at his Dominican Republic resort as examples of why The Bahamas could not reposition the Grand Lucayan to target the mid-priced market. “I admire the Government for what they’re doing. They’re doing it for the right intentions,” he told Tribune Business of its Grand Lucayan purchase. “I can’t comment on how it’s going to work out, as I’m not privy to their business plans. For the sake of Freeport, Grand Bahama and The Bahamas, I sincerely hope it works out.” Mr Wynn had previously told this newspaper he “feels much more comfortable” focusing on his Nassau interests, and up to $200m in investments in the capital, rather than seeking “massive subsidies” to make the Grand Lucayan project work. Speaking in early August, he had conceded that Freeport’s anchor property was “not for me” and he “can’t do it”, given that the potential purchase lacked “economic feasibility”. Substantial taxpayer subsidies for the Grand Lucayan, and Freeport’s stopover tourism industry, are nothing new. These peaked at $29m per year under the last Ingraham administration, with the resort incurring average losses of between $11-$20m per year. Dr Minnis yesterday disclosed that, in order to secure Sunwing and its Memories resort brand, the former Christie administration agreed to pay the Canadian companies and Hutchison Whampoa some $21m per year in subsidies over a seven-year period.

That amounted to $147m in total, and one source told Tribune Business: “The PLP were paying so many subsidies that they could have bought the hotel two times.” Dr Minnis, charting the history of Wynn’s efforts to acquire the Grand Lucayan, said his government met a proposal to pay the Canadian some $17.5m in annual subsidies plus other costs when it took office in May 2017. Wynn had sought an $8m “property subsidy” for the first three years post-acquisition, which would have dropped slightly to $7.2m in years four and five. It also wanted annual subsidies of $7m for airlift and $1.5m for the casino - the latter for a five-year term. The Canadian developer also requested a one-off $2m payment within 60 days of closing the purchase, plus “Most Favoured Nation” status that would have meant no other Bahamas-based project would receive more favourable incentives than itself. Following negotiations with Wynn, the Prime Minister said it again upped its subsidy/incentive demands to an “unacceptable” level of $22.93m per annum for the first five years. While this would have reduced to $9m for the next five, it would have committed the Government to paying $159.65 million in taxpayer monies to private entities over a single decade. These subsidies were broken down into $8.5m as “landlord support” for Wynn; a further $9m for Canadian airlift/resort subsidy to Sunwing; $4m for US airlift; and a further $1.43m to Wynn and its resort operator, AMR.

‘Act of cruelty’ if govt ignored Grand Lucayan FROM PAGE ONE that number had dropped precipitously to 70,692, a

decline by more than half or a whopping 56 percent in two short years.” Mr D’Aguilar said the

decline was directly related to the closure of two of the Grand Lucayan properties, and the drastic decrease in hotel rooms. ‘We simply cannot remain on the sidelines,” he said. “For the first six months of 2018, air arrivals were consistent with 2017 but,

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thankfully, there was a 26,000 or seven percent improvement in cruise passengers mostly due to new and now daily ferry services from South Florida, and the introduction by the Ministry of Tourism of new incentives which now pay the ferry operators based on the number of passengers they bring and rewards them even more if those passengers chose to stop over and spend the night in Freeport. “There is a significant improvement in passengers coming to Freeport, and

we have now focused our incentives in having more of those passengers to get off the ship and spend a few nights in Freeport.” Mr D’Aguilar said that despite the Government’s track record in managing hotel properties, “the situation is so critical that the Government must intervene in the national interest”. “The Grand Lucayan is a case in point. This is not just about a hotel and its employees, nor is it just about an island. This is about the prosperity of an

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entire nation. It would be an act of cruelty and neglect for the Government to stand by and let the Grand Lucayan, a prime hotel property go the way of the Royal Oasis,” he added.s1 That property sustained severe damage in 2004 following Hurricanes Frances and Jeanne. Its subsequent closure resulted in the loss of more than 1,500 jobs in Freeport, and also affected many nearby businesses, including the International Bazaar and the Straw Market.

CHOICE FOR THE FAMILY WWW.FACEBOOK.COM/JOYFM1019

E.C. MOSS GAS CO. LTD.

NOTICE TO OR VALUED CUSTOMERS Please be advised that E.C. Moss Gas Co. Ltd. has no business relationship with any other LP gas distributors in The Bahamas, and therefore no such ‘other’ company is authorized to conduct business on its behalf. If therefore any customer, when receiving a supply of LP gas, has any doubts or questions as to who the actual supplier is, that customer should immediately telephone either Mr. Michael Moss or Mr. Andy Thompson of E.C. Moss Gas Co. Ltd. at 361-1849 before accepting any such supply.

THE TRIBUNE

Friday, September 21, 2018, PAGE 5

Grand Lucayan’s financing needs may hit $124m FROM PAGE ONE

Turnquest said. “None of the borrowing required by the SPV to finance this venture will be directly incurred by the Government. As the name suggests, the special purpose vehicle was set up for the purpose of raising its own capital, holding the assets, and managing the process of resale. “This is a standard vehicle available to the Government to structure its business under special circumstance. Using an SPV in this instance provided the Government with many efficiencies: It allowed the Government to act quickly; to limit its direct debt; and it will ultimately facilitate a faster and smoother sale.” Mr Turnquest added: “Although the Government invested $30m to capitalise the SPV, this money will be repaid to the Government and will have no affect on the Government’s projected deficit for 20182019. The initial payment

further guarantee needed of the Government to secure the full resources for supporting the operation of the property while a new buyer is identified”. He added that the Board of Lucayan Renewal Holdings, the special purpose vehicle (SPV) that was “shepherding” what is intended to be temporary government ownership and the search for a viable buyer, had been given clear instructions to incur costs that are only absolutely necessary to minimise the taxpayer’s exposure. “The Government does not intend to fall into the business of managing this or any other hotel. The SPV is only shepherd to this process, and will have as its focus the packaging and sale of the property to a well-funded visionary investor as soon as possible; certainly within a year,” Mr

To advertise in The Tribune, contact 502-2394

NOTICE TENER INVESTMENTS LIMITED N O T I C E IS HEREBY GIVEN as follows: (a) TENER INVESTMENTS LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. (b) The dissolution of the said company commenced on the 20th September, 2018 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas Dated this 21st day of September, A. D. 2018 _________________________________ Bukit Merah Limited Liquidator

on behalf of the SPV is a financial investment in the SPV, which is regarded as a below-the-line transaction and therefore does not impact the Government’s deficit position. “All we have done is converted one asset, cash, into another asset; an investment into the SPV. Any borrowings undertaken by the SPV will also have no effect on the Government’s direct debt but, because a government guarantee will be required on this borrowing, as indicated by today’s resolution, it will become a contingent liability of the Government.” Mr Turnquest called on Bahamians to step forward as potential buyers of the Grand Lucayan. “This is an opportunity for Bahamian enterprise and ingenuity. For a Bahamian visionary to seize the moment to build a homegrown success story that could inspire a generation of future Bahamians,” he urged.

“The opportunity to control our destiny and reshape the future of Grand Bahama. The SPV is developing an updated prospectus, and commissioning a new appraisal, as they embark on a transparent process to sell the property. “Over the course of this process, they will publish a timeline for investors to submit their proposals, opportunities to view the property, time for due diligence and considerations. The SPV will make its recommendation to the Government at the end of their vetting process.” Mr Turnquest confirmed previous Tribune Business revelations that the costs associated with upgrading and repairing the Grand Lucayan were estimated at around $35m. He said $8m will be necessary to make the Breaker’s Cay property fully operational state, with the former Memories section requiring a $15.5m investment. The Lighthouse Point, the only one still operational, the convention centre, offices and back-of-house operations also need $15.5m. “In the professional opinion of the engineers, Breakers Cay, which is currently closed, could be operational within a six-month period,” Mr Turnquest said. “Lighthouse Point, which is open, has a few repairs that would take up to eight months. It would remain in operation while undergoing the renovations to the roof

NOTICE SHICHI LIMITED

and other refurbishments should the SPV proceed in that direction. The Reef/ Memories would also take up to eight months to complete the renovations required.” Mr Turnquest slammed the “absolutely ridiculous terms”offered by Wynn Group chief executive, Paul Wynn, the last potential private sector purchaser for the Grand Lucayan. “If the Government agreed to the course of action suggested by the Opposition, we would have committed $159m of the people’s money to a private investor without having any ownership in the hotel, and limited power to shape the future for Grand Bahama,” he charged. “We would have been agreeing to excessive work permits, to cover the financial loses of a private company and, on top of that, to guarantee their corporate profits. What Government in their right mind would accept that deal? I can assure you, the purchase agreement we negotiated was not only the more fiscally responsible choice, it was the common sense choice and it was the right choice.” Mr Turnquest said Hutchison Whampoa, the former owner, was set to close the entire Grand Lucayan property “which would have turned Grand Bahama’s deep recession into a situation of economic collapse. Under no circumstances would we let Grand

Bahama crumble that way”. He added: “Hutchison made no secret about their intention to shut down and wait it out. After Wynn, they had no other private buyers in the wings, and they were fully prepared to lock up the island and let the chips fall where they may. If the Government did not act, complete closure was a certainty. “That would have had a disastrous domino effect throughout the length and breadth of the island, spilling over to every sector of the local economy. It would have led to a further reduction of beachfront accommodations, a decrease in consumer demand for the destination, a reduction in airlift and eventually the collapse of the tourism sector in Grand Bahama.” Mr Turnquest continued: “The former owners had a crippling hold on the entire industry because they let the resort sit there doing nothing. They couldn’t care less about the degradation of the island’s hotel industry or the welfare of the people of Grand Bahama. “Instead of negotiating with an unmotivated seller, we are confident potential buyers will find it more attractive to negotiate with the Government as an eager seller with a clear vision for who we want as a partner for Grand Bahama. By removing the threat of closure to Lighthouse Pointe, the Government also eliminated a core uncertainty felt by investors.”

NOTICE MANNIX INVEST & TRADE LTD.

N O T I C E IS HEREBY GIVEN as follows:

(a) SHICHI LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

(a) MANNIX INVEST & TRADE LTD. is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

(b) The dissolution of the said company commenced on the 20th September, 2018 when the Articles of Dissolution were submitted to and registered by the Registrar General.

(c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas

Dated this 21st day of September, A. D. 2018

_________________________________ Bukit Merah Limited Liquidator

NOTICE

KAROLUS INVEST LTD.

COUVEN INVEST LTD.

CIRCLET INVEST LTD.

NOTICE is hereby given as follows:

(a) Karolus Invest Ltd. is in Voluntary Dissolution under the provisions of Section 138(4) of the International Business Companies Act 2000.

(a) Couven Invest Ltd. is in Voluntary Dissolution under the provisions of Section 138(4) of the International Business Companies Act 2000.

(a) Circlet Invest Ltd. is in Voluntary Dissolution under the provisions of Section 138(4) of the International Business Companies Act 2000.

(b) The Dissolution of the said Company commenced when the Articles of Dissolution were submitted to and registered by the Registrar General of the Commonwealth of The Bahamas.

Dated this 19th day of September, 2018

Dated this 19th September, 2018

Beatus Limited Liquidator

CHAILEY INTERNATIONAL LTD. Company No. 1952750 (In Voluntary Liquidation)

NOTICE

TIERPARK INVEST LTD.

VIERTEL INVEST LTD.

NOTICE is hereby given pursuant to Section 204 (1) (b) of the BVI Business Companies Act, 2004 that CHAILEY INTERNATIONAL LTD. is in voluntary liquidation. The voluntary liquidation commenced on 22nd August, 2018 and Mrs NADJA ENGLER at Talstrasse 83, 8001 Zurich, Switzerland, has been appointed as Voluntary Liquidator. Dated 22nd August, 2018

(Sgd.) Nadja Engler Voluntary Liquidator

NOTICE is hereby given as follows:

(a) Tierpark Invest Ltd. is in Voluntary Dissolution under the provisions of Section 138(4) of the International Business Companies Act 2000.

(a) Viertel Invest Ltd. is in Voluntary Dissolution under the provisions of Section 138(4) of the International Business Companies Act 2000.

(b) The Dissolution of the said Company commenced when the Articles of Dissolution were submitted to and registered by the Registrar General of the Commonwealth of The Bahamas.

Dated this 19th day of September, 2018

Beatus Limited Liquidator

PAGE 6, Friday, September 21, 2018

THE TRIBUNE

PM intervenes on Lucayan ‘looting’ FROM PAGE ONE “The way in which they interpreted the [sales] agreement was they could take out whatever they wanted. In the evening they proceeded to de-camp with the golf carts, the service vehicles that you run linen, towels and dry cleaning around in, certain other service vehicles, ipads, laptops, cell phones and monitors for desktop computers, and relocate them for use in other businesses and offices established in Freeport.” Asked whether Hutchison Whampoa’s actions could have potentially crippled the Grand Lucayan’s operations on the first day of government control, Mr Scott replied: “How does a golf course function without golf carts? Let’s start with that.”

The Lucayan Renewal Holdings chairman said himself and another director, Willie Moss, analysed the sales agreement “very carefully” once alerted to what was happening to determine whether it permitted Hutchison Whampoa to remove these assets. “We were horrified when tipped off about it,” he told Tribune Business. “We looked at the agreement, identified the paragraphs which said where they couldn’t do that. It was a breach of contract. “We notified the Attorney General and the Attorney General’s Office, they met with the Prime Minister, and he had a conference call with Hong Kong on the morning of September 11. The Prime Minister spoke to Raymond Chow [a senior Hutchison

Whampoa executive], said they were dealing with a sovereign state and that their behaviour was unbecoming of negotiations between Hutchison and a sovereign state. He undertook to put the property back, which they did.” Mr Scott continued: “When I got up there on the 12th, I called in and spoke to Graham Torode, who is Hutchison’s local representative in Freeport, and formally complained on behalf of the board and Government of The Bahamas. I got his undertaking that everything taken had been replaced.” The Lucayan Renewal Holdings chairman said the prime minister’s involvement, and decisive action, had resolved the matter and prevented an alreadystrained relationship with

Hutchison Whampoa from deteriorating further. “To be very clear about this so there is no question, no ambiguity and no doubt, the prime minister was advised by the board that they were about to loot the property, and he acted immediately and aggressively to avoid that happening and head it off,” Mr Scott told Tribune Business. “It was addressed and resolved very quickly. Had they done it, we would have had to commence legal proceedings for a fundamental breach of contract. It was my responsibility, and I was not going to permit that to happen.” The episode, though, is unlikely to endear Hutchison Whampoa to many Bahamians, especially those on Grand Bahama, given the favourable sales terms

it appears to have obtained from the Government. Besides not sharing the burden, and being relieved of having to pay $3.25m in stamp duty on the real estate sale, the Hong Kong-headquartered conglomerate has been allowed to keep the $80$85m in insurance proceeds received on its Hurricane Matthew claim. This is despite its decision not to invest a cent in repairs estimated at $35m. Hutchison Whampoa is also receiving $2m from the Government in return for not shutting the 196-room Lighthouse Pointe property down from August 1, in addition to interest at 4 percent on the seven $5m bond tranches that will repay the $35m it is providing in vendor funding to finance the purchase.

Mr Scott, meanwhile, said the formal sales prospectus that will be issued to potential Grand Lucayan buyers remains “in train”. He added: “We have to agree on who’s going to do the appraisal, who’s going to do the marketing. I’m not at liberty to name names.” The attorney also described voluntary separation packages for Grand Lucayan staff as “a work in progress”, with all workers receiving their due salary payments in full today. “We’ve just had our first payroll since takeover,” Mr Scott said. “The best news I can give you is it passed uneventfully, which means everybody got paid. I gave my personal undertaking it would happen, and it’s happened.”

‘LEGALITY’ CLEARED UP: NEW WEB SHOP TAXATION IN EFFECT FROM PAGE ONE collected’ is vague and therefore unenforceable”. Mr Bastian had earlier alleged: “The Gaming Operator (Amendment) Regulation 2018 provides that the purported sliding scale gaming tax on gaming house operators from 20 percent to 50 percent shall be assessed on the ‘revenue collected’. ‘Revenue Collected’ is not defined in the Gaming Act or the Gaming House

Operator Regulations. “In fact, Regulation 57 the Gaming House Operator Regulations 2014 assesses tax on the basis of, and percentage of, ‘taxable revenue’ or a percentage of earnings before interest, taxes, depreciation and amortisation generated by the operations of the licensee. This term appears, I am advised by counsel, to be vague and ultra vires the Gaming House Operators Regulations 2014.” This issue has now seemingly been addressed

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

The public is hereby advised that I, CLINT CLARKE of Nassau Street, P.O.Box GT2393, New Providence, Bahamas, intend to change my name to CLINT EDGECOMBE. 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.

SEBAS BASTIAN

by the new Gaming Operator (Amendment) Regulation 2018 tabled in Parliament by Mr D’Aguilar on Wednesday.

The Minister told Tribune Business yesterday that this has now permitted the “sliding scale” structure to take effect from

MARKET REPORT THURSDAY, 20 SEPTEMBER 2018

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

BISX ALL SHARE INDEX: CLOSE 1,948.90 | CHG -4.41 | %CHG -0.23 | YTD -114.67 | YTD% -5.56 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 19.17 7.50 4.46 1.26 0.19 3.92 9.22 6.60 5.30 12.50 2.71 1.77 8.21 6.21 13.20 7.00 4.50 13.50

52WK LOW 3.50 19.17 7.50 3.32 0.90 0.15 2.30 8.55 6.09 3.49 9.00 2.30 1.40 7.25 6.00 9.50 5.67 3.25 12.50

1050.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

PREFERENCE SHARES

1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00

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 Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson 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

52WK LOW 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 ##########

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

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

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

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

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

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

LAST CLOSE 4.01 17.43 9.09 4.45 1.01 0.18 2.55 9.22 6.15 3.60 12.42 2.76 1.75 7.71 6.21 13.06 6.31 3.65 13.01

CLOSE 4.01 17.43 9.09 4.46 1.01 0.19 2.30 9.22 6.15 3.60 12.42 2.86 1.75 7.66 6.21 13.06 6.31 3.65 13.01

CHANGE 0.00 0.00 0.00 0.01 0.00 0.01 -0.25 0.00 0.00 0.00 0.00 0.10 0.00 -0.05 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 1.00

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

CLOSE 100.00

CHANGE 0.00

107.55 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

-0.01 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 0.00

LAST SALE 100.00 107.56 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

VOLUME

1,000 2,000 1,500

VOLUME

EPS$ 0.268 0.932 -0.306 0.317 0.059 0.000 -0.996 0.700 0.441 0.154 0.627 0.102 0.231 0.000 0.670 0.701 0.719 0.277 0.631

DIV$ 0.100 1.130 0.000 0.230 0.000 0.010 0.000 0.710 0.220 0.120 0.620 0.060 0.070 0.084 0.280 0.500 0.200 0.120 0.590

P/E 15.0 18.7 N/M 14.1 N/M N/M -2.3 13.2 13.9 23.4 19.8 28.0 7.6 N/M 9.3 18.6 8.8 13.2 20.6

YIELD 2.49% 6.48% 0.00% 5.16% 0.00% 5.26% 0.00% 7.70% 3.58% 3.33% 4.99% 2.10% 4.00% 1.10% 4.51% 3.83% 3.17% 3.29% 4.53%

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 Prime + 1.75% 6.95% 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%

MATURITY 19-Oct-2022 ############### 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

MUTUAL FUNDS 52WK HI 2.17 4.16 2.01 180.30 157.58 1.57 1.70 1.65 1.10 6.99 8.54 6.15 10.52 11.46 10.46 10.00 8.45 11.20

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.51 1.62 1.59 1.08 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

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 Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

NAV 2.17 4.14 2.01 180.30 155.10 1.57 1.68 1.65 1.09 7.36 8.53 6.50 11.41 11.66 10.41 9.93 8.45 11.20

YTD% 12 MTH% 2.24% 4.15% 0.03% 4.59% 1.23% 2.26% 0.90% 3.44% 1.11% 6.05% 2.50% 4.38% -0.75% 3.51% 1.75% 4.07% -0.52% 1.03% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69% -0.61% 0.75% 1.13% N/A 2.95% N/A

NAV Date 31-Jul-2018 31-Jul-2018 27-Jul-2018 30-Jun-2018 30-Jun-2018 31-Jul-2018 31-Jul-2018 31-Jul-2018 31-Jul-2018 31-Aug-2018 31-Aug-2018 31-Aug-2018 31-Aug-2018 31-Aug-2018 31-Aug-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018

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

Wednesday, although it is unclear whether this is currently blocked by the industry’s ongoing Judicial Review challenges that are set to resume on October 5. Explaining the latest changes, Mr D’Aguilar told Tribune Business: “I’m advised that when they introduced the sliding scale taxes, the regulations used the wrong terminology to describe what was to be taxed. “It was confusing in the sense that one could have ascertained that what we intended to apply the tax to was the gross gaming revenue; all the money taken in from the patrons. It should have been all the money taken in from the betters minus what was paid out in winnings, which would have left the revenue to which the sliding scale of tax was to be applied.” Mr D’Aguilar blamed the incorrect language on a “communication breakdown” where the regulations’ drafters received the wrong instructions about the wording needed to define what should be taxed.

“The wrong definition ended up in the Act,” he added. “What this amendment intends is there’s no such thing as ‘revenue collected’; the only thing defined is ‘taxable revenue’. Taxable revenue is defined as all revenue received from gamers minus winnings paid out. The one with revenue collected was irrelevant.” The minister said he had been advised by the attorney general that the “sliding scale” tax structure, whose implementation had been delayed since the intended July 1 launch, was now in effect as of Wednesday. It has finally replaced the old structure, which required web shops to pay the greater of 11 percent of taxable revenue or 25 percent of earnings before interest, taxation, depreciation and amortisation (EBITDA). Mr D’Aguilar added that the “guidance notes”, long demanded by the web shop industry to advise them on how to adapt their games/ platforms to accommodate the five percent “patron tax”, were “now ready to go”.

NOTICE Notice is hereby given that RICHARDSON LUBIN of Sandilands Village, New Providence, The 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 signed statement of the facts within twentyeight days from the 21st September, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147, Nassau, The Bahamas.

NOTICE Notice is hereby given that CLODER ST. FLEUR of Central Pines, Dundas Town, Abaco,The 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 signed statement of the facts within twentyeight days from the 21st September, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147, Nassau, The Bahamas.

NOTICE Notice is hereby given that ARODE MONPREVILLE of Alexandria Road off, Carmichael Road, Nassau, The 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 signed statement of the facts within twenty-eight days from the 21st September, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147, Nassau, The Bahamas.

THE TRIBUNE

Friday, September 21, 2018, PAGE 7

Japan’s Abe re-elected as party head, to stay on as PM TOKYO Associated Press JAPANESE Prime Minister Shinzo Abe was reelected as head of his ruling Liberal Democratic Party in a landslide yesterday, paving the way for up to three more years as the nation’s leader and a push toward a constitutional revision. The decisive victory may embolden Abe to pursue his long-sought amendment to Japan’s US-drafted pacifist constitution, although the hurdles remain high and doing so would carry political risks. “It’s time to tackle a constitutional revision,” Abe said in a victory speech. Abe said he’s determined to use his last term to pursue his policy goals to “sum up” Japan’s postwar diplomacy to ensure peace in the country. “Let’s work together to make a new Japan,” he said. Abe, who has been prime minister since December 2012, has cemented control of his party and is poised to become Japan’s longestserving leader in August 2021. He has several policy challenges, including dealing with Japan’s aging and declining population, a royal succession in the spring, and a consumption tax hike to ten percent he has already delayed twice. Amid international effort to denuclearise North Korea, Abe seeks to meet with Kim Jong Un to resolve their disputes, including the decades-old problem of Japanese citizens abducted to the North. He faces China’s increasingly assertive activity in the region, and intensifying trade friction with the

Article 9, which bans the use of force in settling international disputes, to explicitly permit the existence of Japan’s military, now called the Self-Defense Force. Abe has survived a series

LIBERAL Democratic Party President Shinzo Abe receives applause from the LDP lawmakers shortly after his name was called as the winner of the ruling party presidential elections at its headquarters in Tokyo, yesterday. Prime Minister Abe was re-elected yesterday to a third term as leader of the ruling party, paving the way for him to serve as prime minister for up to three more years. Photo: Koji Sasahara/AP US that could shake his friendly relations with President Donald Trump. Abe said he will meet with Trump next week in New York, where they attend the annual UN assembly, to discuss bilateral trade and “the roles Japan and America should play in establishing global trade rules”. Abe renewed his commitment yesterday to push for a revision to the USdrafted 1947 constitution, a decades-old pledge of the Liberal Democratic Party since its foundation in 1955 and a goal that none of Abe’s predecessors has been able to achieve. Many conservatives see the constitution as a humiliation imposed on Japan following its World War II defeat. Among them was Abe’s grandfather, Nobusuke Kishi, who served as prime minister 1957-1960. Kishi was imprisoned as a suspected war criminal

during the US occupation. Constitutional revision is divisive and it’s unclear whether Abe could get enough votes for passage. For the public, the constitution is a lesser concern than issues such as pay, education and the high cost of child care, surveys show. If a revision is rejected in a national referendum, Abe would likely have to step down. “It’s a goal that would be difficult to achieve,” Abe told a news conference later yesterday. “We’ll have to walk on a thorny path.” Abe and his party want to rush a revision while their ruling coalition still holds two-thirds super majority in both houses — a requirement to propose a revision. The next parliamentary election is due next summer. Abe seeks to submit a draft constitution revision to a parliamentary session later this year. He is proposing to add a clause to

of scandals, including cronyism allegations against him and his wife. Despite attacks from opposition parties and criticism in the media, he has seen his support ratings bounce back to about

40 percent, considered high for a Japanese leader after nearly six years in office. An extended term for Abe is generally seen as good news for stability and continuity.

PAGE 8, Friday, September 21, 2018

WILL AMERICAN AIRLINES BAR CUSTOMERS FROM CHANGING A TICKET? FORT WORTH, TEXAS Associated Press AMERICAN Airlines is threatening to prohibit customers from making changes to nonrefundable tickets if Congress makes good on a proposal to crack down on unreasonable airline fees. American CEO Doug Parker says his airline would be acting just like many other businesses when customers want to swap their ticket for a different flight or for another day. “We — like the baseball team, like the opera — would say, ‘We’re sorry, it was nonrefundable,’” Parker said this week. Parker made the comments as the airline industry’s main trade group mobilises to defeat a proposal in Congress to limit airline fees. Changing a domestic ticket on the largest airlines typically costs $200. Last year, US carriers collected nearly $2.9bn in change fees. American led the pack with $878m — a big chunk of its $1.9bn 2017 profit. The Senate has voted to tell the Transportation Department to make sure that various fees — including ticket-change and baggage charges — reflect the airline’s actual cost for providing the extra service. The House has not yet gone along, and the fate of the Senate provision, contained in a bill governing the Federal Aviation Administration, is unclear, especially with Congress rushing toward adjournment before the November mid-term elections. The Trump administration opposes the fees provision. In May, the Transportation Department said it would be a step back toward re-regulating airline pricing, which largely ended in 1978.

It’s high times for soaring marijuana stocks on Wall Street

NEW YORK Associated Press REEFER Madness has gripped Wall Street. Investors are craving marijuana stocks as Canada prepares to legalise pot next month, leading to giant gains for Canada-based companies listed on US exchanges. Some experts are concerned that the ending will be a buzzkill. Billions of dollars have poured into the stocks in the last few months, and investors smell green (money, not leaves) in the air as they consider the opportunities these companies might have as the marijuana market in Canada grows, along with the possibility that the US and other countries could follow suit. The value of one company, British Columbia-based Tilray, has jumped tenfold since its initial public offering just two months ago. The company had $20m in sales in 2017, but it’s now worth considerably more than Macy’s or Hasbro. With those huge gains have come extreme swings. Wednesday was a trip for Tilray stock: after closing at $154 the previous day, it opened at $233 a share, soared to $300, and then plunged to $151 before rallying to close at $214. Trading was halted several times because of that volatility. For some people on Wall Street, it’s bringing back unpleasant memories. “We just went through this eight months ago with cryptocurrencies,” says investor Ken Mahoney, CEO of New York based Mahoney Asset Management. He said the investors buying these stocks at their current prices are already betting on enormous successes, but even if legal marijuana takes off, some

THE TRIBUNE

STATE-BACKED HACKERS TARGET GMAIL OF US SENATORS, AIDES By FRANK BAJAK AND RAPHAEL SATTER Associated Press

BRENDAN KENNEDY, third from right in front, CEO and founder of British Columbia-based Tilray Inc, a major Canadian marijuana grower, leads cheers as confetti falls to celebrate his company’s IPO (TLRY) at Nasdaq in New York. Investors are craving marijuana stocks as Canada prepares to legalise pot next month, leading to giant gains for Canada-based companies listed on US exchanges. Photo: Bebeto Matthews/AP of the companies will fail. said the government will consumable forms of the It’s easy to see why inves- allow it to import capsules drug will be legal in 2019. tors are so optimistic. This containing cannabis com- Marijuana remains illegal in week, Coca-Cola acknowl- pounds from Tilray so the the US at the federal level, edged it could one day offer center can study their effec- but it’s legal for recreational cannabis-infused drinks. tiveness in treating tremors. use in nine states and WashThat came after reports “The total global (can- ington, DC, and for medical Coke was in talks with nabis) category could reach use in 31 states, according Aurora Cannabis about upwards of $200bn, as sug- to the National Conference drinks containing canna- gested by Constellation of State Legislatures. bidiol, or CBD, a marijuana Brands,” said Stifel analyst Growe noted that govcomponent that isn’t psy- Christopher Growe. ernments considering choactive. Aurora stock, Canopy Growth has more marijuana legalisation or which is listed in Canada, than doubled in value this similar policies are likely surged. year, and another rival trad- to move very slowly. And That would be a sort of ing in the US, Cronos Group Mahoney said if there is return to Coca-Cola’s roots, has jumped 78 percent. a bubble, larger investors as the drink contained KushCo Holdings has surged will protect themselves and some cocaine when it was 36 percent and GW Phar- won’t overinvest in single invented. maceuticals, which recently companies, but smaller In August, Molson Coors received government investors who see a chance said it will team up with approval for a cannabis- to get rich quickly could Hydropothecary Corp derived drug used to treat suffer painful losses. to sell marijuana-infused seizures, is up 29 percent. “The small investors drinks, and Canopy Growth Growe said the value always end up with the announced a $4bn invest- of the 22 largest mari- short end of the stick,” he ment from Constellation juana companies trading in said. “They don’t have the Brands, the company that Canada has more than dou- insight, they don’t have the makes Corona beer. bled since Aug 15, when the experience.” The stocks jumped on Canopy-Constellation deal An investor who bought Tuesday when the Center was announced. Tilray stock on Wednesday for Medicinal Cannabis Recreational marijuana might have agreed, as the Research at the University will become legal across shares fell 18 percent to of California San Diego Canada on Oct 17, and finish at $176.

STATE-backed hackers are still trying to break into the personal email accounts of US senators and their aides — and a lawmaker focused on cybersecurity says the Senate’s security office should stop refusing to help defend them. Sen Ron Wyden, an Oregon Democrat, said in a Wednesday letter to Senate leaders that his office discovered that “at least one major technology company” has warned an unspecified number of senators and aides that their personal email accounts were “targeted by foreign government hackers”. Yesterday, Google spokesman Aaron Stein confirmed that his company had notified the Senate targets. Neither Stein nor Wyden provided any indication as to who might be behind the attempted break-ins, whether they targeted lawmakers from both political parties or their timing, though a Senate staffer said they occurred “in the last few weeks or months.” The aide spoke on condition of anonymity because he was not authorised to discuss the issue publicly. Email theft is favored by hackers the world over, including the Russian military agents accused of leaking the content of Democrats’ inboxes ahead of the 2016 elections, and personal accounts have proven to be the easiest targets. Wyden noted that the Office of the Sergeant at Arms, which oversees Senate security, had informed legislators and staffers that it has no authority to help secure personal, rather than official, accounts.

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