09222023 BUSINESS

Bahamian battles FTX chief on $28m aircraft

Aranha and his attorneys are seeking an Order that would enable him to impose liens on both planes such that Mr Ray would be forced to compensate him for both past and future maintenance costs incurred with their upkeep.

Accusing Mr Ray of endangering the planes’ value through the “limbo” he and his team created by their 11th hour claim that FTX Trading owns both aircraft, Mr Aranha’s legal filings provide the first complete glimpse into the extent to which the crypto exchange’s collapse has impacted Bahamian companies that did business with it and/or are still owed money.

Mr Aranha, who founded Trans-Island Airways as a Bahamian charter company, along with Island Air Capital, began his relationship with FTX when he “started flying Sam BankmanFried”, its now-embattled founder, “to and from The Bahamas in 2021” after the crypto exchange relocated to this nation from Hong Kong.

“From approximately October 2021, Trans-Island Airways provided more than $15m worth of private charter and cargo flights, customised plane upgrades and other services to Sam Bankman-Fried and other FTX executives, employees, business associates, guests, family and friends,” the Bahamian entrepreneur’s lawsuit asserted.

“By January 2022, the volume of the Flight Services that Trans-Island Airways was providing to FTX required additional planes. FTX did not wish to own planes, and TransIsland Airways’ business model supported the acquisition of additional aircraft, so FTX agreed with Mr Aranha that he would purchase the planes.

“FTX would finance the purchase of those planes with an unsecured, nointerest loan, to which Sam Bankman-Fried agreed in a handshake deal with Mr Aranha. The latter purchased a Bombardier Global jet for $15.9m, acquiring title to it on March 2, 2022, followed by an Embraer Legacy on August 4, 2022, which cost a further $12.545m. The combined purchase price for both planes, just months before FTX’s collapse, was $28.445m.

Mr Aranha alleged that he obtained prior approval for both purchases from FTX, with the latter wiring the necessary funds from accounts held by Alameda Research, Mr BankmanFried’s private trading arm, and North Dimension, one of its affiliates.

“Mr Aranha was unaware of, and had no reason to suspect, the fraud at FTX, and he had no reason to question the source of funds FTX used to finance the aircraft,” the lawsuit alleged. “FTX requested upgrades to the aircraft, such as stateof-the-art wifi and entirely new interiors.

“Trans-Island Airways arranged for the requested upgrades and other necessary maintenance to be performed at a facility in Florida promptly after Island Air Capital bought the Aircraft. Neither aircraft was ever used for any of the flight services - the aircraft were unavailable during the upgrades, which were still in progress in November 2022 when FTX collapsed. In other words, no one associated with FTX ever flew on the Global or the Legacy.”

Detailing the March 2022 discussions between Mr Aranha and Mr BankmanFried on their business relationship, and how the aircraft deals’ financing would be structured, the lawsuit alleged that the FTX chief suggested the loans be repaid via an account opened in the Trans-Island Airways chief’s name with the crypto exchange.

Besides funds deposited by Mr Aranha personally, FTX would also pay into the account the sums charged by Trans-Island for flight services provided to the crypto exchange. These sums, plus any trading gains, would be applied to pay down the loan. Mr Aranha agreed to the deal, especially since any trading

losses would only extend the time for repayment. While an unorthodox arrangement, Mr Aranha was said to have drawn further confidence after FTX Ventures, one of the crypto exchange’s affiliates, signed a deal committing it to invest $17m in TransIsland Airways for a total 40 percent equity stake in the charter operator. The terms involved an injection of $12m, plus the purchase of $5m of existing TransIsland Airways shares from Mr Aranha, with the business valued at a total $42.5m.

“Thus, at the time of the aircraft loan, Sam Bankman-Fried and FTX were poised to become Mr Aranha’s business partners and joint owners of Trans Island Airways (and thus joint owners of the aircraft),” the legal filings alleged. “The aircraft loan agreement was not documented, but this was not unusual for Mr Aranha, who has financed other aircraft purchases in the past based on oral agreements.

“Sam Bankman-Fried did not ask for interest on the aircraft loan. In exchange, Mr Aranha agreed there would be no changes to FTX Ventures’ prior valuation of Trans-Island Airways.” The FTX Ventures deal was never consummated, and no money changed hands. However, Mr Aranha continued to use the payments for FTX for aircraft services to pay down the loan, with the lawsuit saying he had no reason to suspect the financing may have come from the exchange’s clients.

“In early November 2022, FTX’s financial problems came to light. Mr Aranha was warned to withdraw his funds from FTX, and he had multiple opportunities to do so before FTX suspended activity in his account. He did not because he was committed to repay the aircraft loan to FTX,” the lawsuit asserted.

“As of the petition date, approximately $11m toward repayment of the aircraft loan was on deposit in the customer account. Additionally, as of the petition date, the Debtors owed Trans-Island Airways approximately $2.6m for unpaid flight services, bringing the balance of the aircraft loan to $14.845m, down from $28.445m within only eight months.”

The $11m in the “customer account” was broken down into $6.339m worth of stablecoins; $4.566m in fiat currency; and $83,665 worth of Bitcoin. “Based on information and belief, Mr Aranha is one of the largest Bahamian victims of Sam Bankman-Fried’s crypto currency fraud,” the legal filings alleged.

With the loss of FTX as both client and investor, Mr Aranha was forced to “pivot”. While he returned the Legacy jet to The Bahamas to prepare it for service here, he readied the Global for sale by de-registering it in The Bahamas and reimporting it into the US, with the idea of using the proceeds to pay-off the FTX loan. By early 2023, the Global had attracted “multiple offers” in excess of $15m.

All these plans, and details, were “voluntarily shared” with the Bahamian provisional liquidators who took control of FTX Digital Markets on November 10, 2022. Brian Simms KC, the Lennox Paton senior partner and one of the liquidator trio, allegedly contacted him on December 6, 2022, to say Mr Ray had assigned him to deal with the matter, and Mr Aranha alleged that sought to be “fully transparent” over the planes.

However, just as the $15m offers for the Global started coming in, US marshals seized the plane on March 8, 2023, as part of the US Department of Justice’s forfeiture efforts to obtain compensation for FTX victims in the criminal case against Mr BankmanFried. The seizure has eerie similarities with how the Department of Justice snatched $150m in FTX Digital Markets’ US bank accounts, which the liquidators claim belong to the estate here. In response, Mr Aranha and Trans-Island Airways “voluntarily restrained” the

Legacy from flight operations. They also sought to seek an amicable, consensual resolution to the ownership of both planes and repayment of the FTX loan. The US Department of Justice, though, has yet to file a forfeiture action against the Global aircraft.

“Movants are confident that the ultimate trier of fact will find that they acted in good faith, that they were without reason to know the aircraft were financed with the proceeds of fraud, and that they have a significant equity interest in the aircraft, having repaid more than $11m of the aircraft loan before FTX collapsed,” Mr Aranha and his attorneys alleged. “

“However, in an effort to avoid costly litigation, movants have tried for months to seek a global resolution of competing claims to the assets without success. The debtors [Mr Ray], claiming their hands are tied due to the government’s pending forfeiture action, to date have refused to discuss a resolution.

“Paradoxically, the government, citing the debtors’ interest in the aircraft, have said that they cannot resolve movants’ claims without the debtors’ participation, and that any such negotiations must await the conclusion of Sam Bankman-Fried’s

October 2023 criminal trial. In the meantime, the costs of maintaining and preserving the aircraft continue to mount and will thus impact the net proceeds of any sale.”

Eventually, Mr Aranha secured an agreement from the US Department of Justice whereby the latter would return custody of the Global jet to him so that he could market and sell it, with the proceeds - net of costs - deposited with the US marshals until the forfeiture claim was resolved. Trans-Island Airways also obtained an agreement in principle that it could “operate the Legacy without restraint” to offset the maintenance costs.

However, just as the US Justice Department deal was on the point of being finalised, Mr Ray and his team “for the first time” on August 7, 2023, alleged that the planes belonged to FTX Trading’s estate.

“In essence, the debtors have taken the position that while the aircraft belong to them, movants should bear the financial risk and responsibility for all maintenance, storage, insurance and other costs of maintaining the aircraft, as well as all of the considerable expense of preparing and marketing the aircraft for sale,” Mr

Aranha and Trans-Island Airways alleged.

“Obviously, the debtors’ one-sided posture is unreasonable and unfair to movants. As a result of this impasse, the proposed settlement with the Government to sell the Global and operate the Legacy is now on hold.... The consequences of this untenable situation are particularly acute for the Legacy. As of the date of this motion, more than $800,000 in unavoidable expenses are due for that plane.

“The Legacy is currently in the middle of required maintenance, which needs to be finished. Components and finishings removed for that maintenance are in climate-controlled storage that, together with the fuselage, are taking up 3,000 feet of movants’ hangar space,” they continued.

“Movants have other needs for the hangar space that the Legacy is occupying. Even if movants do not operate the Legacy, that aircraft has significant ongoing monthly costs of at least $66,500, and that figure does not even cover scheduled inspections, maintenance of life-limited parts or work needed to preserve the Legacy.”

As for the Global, Mr Aranha and Trans-Island alleged they received an August 21, 2023, e-mail from Rolls Royce threatening to terminate the plane’s engine maintenance unless an unpaid bill of $480,000 is settled immediately. “Cancellation of the Rolls Royce engine programme would result in the reduction of value of the Global to prospective purchasers by many millions of dollars,” they warned.

“The cost to any purchaser of reinstating the engine programme would entail retrospective reenrollment of the engines in a new warranty programme for all of the hours accrued on the engine since its manufacture, regardless of the prior coverage.

“Movants informed the debtors of this urgent situation by e-mail on August 22, 2023. In response, the

debtors only reiterated their assertion of ownership over both aircraft and expressed support for selling the aircraft, but declined to engage with movants on how the ongoing costs of maintaining and preparing the aircraft for sale would be borne. No payment was ever made to Rolls Royce.”

Warning that damage to both planes may become “irreversible” without the Delaware court’s intervention, Mr Aranha and Trans-Island Airways said: “Movants’ business is not limited to owning the aircraft. They own and operate a fleet of eight to ten planes providing superior service to a multitude of clients and passengers travelling to and from The Bahamas. They also manage client-owned aircraft, caring for the managed planes at the highest level of service.

“As such, their reputation as a premier airline and aircraft manager in The Bahamas is critical to the success of their ongoing business. They cannot retain that reputation without properly maintaining their aircraft, including the Global and the Legacy, which means they cannot simply ignore the maintenance schedule and abandon the aircraft to corrosion...

“If the Legacy is the debtors’ property, the debtors owe Movants $2.531m for the Legacy for all of the above-described services since the petition date, and the debtors also owe movants $3.398m for maintaining and preserving the Global since the petition date if the debtors own the Global.”

Mr Ray’s intervention, Mr Aranha and Trans-Island warned, leaves them “without a clear path forward” and a risk that the aircraft will become “worthless”effectively “extinguishing” their ability to repay the FTX loan and costing them their investment.

SAM BANKMAN-FRIED

Stocks drop in an ugly day as allure grows to buy a Treasury bill and chill

By STAN CHOE AP Business Writer

WALL Street fell sharply Thursday in an ugly day for stocks worldwide on expectations that U.S. interest rates will stay high well into next year.

The S&P 500 lost 1.6% for its worst day since March. That followed a drop of 0.9% from Wednesday after the Federal Reserve indicated it may cut interest rates next year by just half of what it had earlier predicted. The Fed has already hiked its main interest rate to levels unseen since 2001, which helps slow inflation but at the cost of hurting investment prices.

High-growth stocks are typically among the hardest hit by high rates, and Big Tech stocks took the brunt of the pain for a second straight day. The Nasdaq composite dropped 1.8% as Amazon fell 4.4%, Nvidia dropped 2.9% and Telsa lost 2.6%. The Dow Jones Industrial Average dropped 370 points, or 1.1%.

Stock prices tend to fall when rates rise because stocks are riskier investments. Why stomach the

chance of their big swings when Treasurys are paying more in interest than before? And they're paying much more.

A 10-year Treasury is offering a yield of 4.48%, up from 4.40% late Wednesday and from only 0.50% three years ago. It's near its highest level since 2007.

The two-year Treasury yield, meanwhile, wavered

IN THE ESTATE of NISHA LASCELLES ARMBRISTER late of #1 Stanford Drive, West Bay Street, Western District, New Providence, one of the Islands of the Commonwealth of The Bahamas, deceased.

Notice is hereby given that all persons having any claim or demands against the above named Estate are required to send their names, addresses and particulars of the same duly certified in writing to the undersigned on or before the 13th day of October A.D., 2023, and if required, prove such debts or claims, or in default be excluded from any distribution; after the above date the assets will be distributed having regard only to the proved debts or claims of which the Administrators 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 aforementioned date.

MICHAEL

A. DEAN & CO.,

Attorneys for the Administrators

Alvernia Court, 49A Dowdeswell Street

P.O. Box N-3114 Nassau, The Bahamas

following some mixed reports on the economy.

It slipped to 5.14% from 5.17% late Wednesday after climbing earlier in the morning.

One report showed fewer U.S. workers applied for unemployment benefits last week than expected. It was the lowest number since January and the latest

signal of a remarkably resilient job market. Such a solid labor market helps calm worries about a possible recession. But it may also give U.S. households fuel to keep spending, which could encourage companies to try to raise prices further and keep upward pressure on inflation. That in turn could give the Fed more reason

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to keep rates higher for longer.

A separate report, meanwhile, suggested manufacturing in the mid-Atlantic region is contracting by much more than economists expected. A third report showed sales of previously occupied U.S. homes were weaker last month than economists expected.

Manufacturing and the housing industry have felt the sting of higher interest rates in particular and have struggled more than the broad job market.

Interest rates may stay high if the Federal Reserve follows through on the latest forecasts from its policy-making officials.

Policy makers have indicated they could raise the federal funds rate one more time this year, and then cut it by only half a percentage point from there through 2024. Three months ago, Fed officials were forecasting a full percentage point of cuts could be the most likely path. They want to ensure inflation gets back down to the Fed's target of 2%.

Wednesday's projections may be an indication that "raises the bar for rate cuts next year," according to Goldman Sachs economist David Mericle. He pushed out his forecast for the first cut in interest rates to the final three months of 2024, after earlier thinking it could happen during the spring.

He sees the Fed on a path where it can "simply wait until something goes wrong and then deliver either small cuts in response to a smaller growth threat, similar to the insurance cuts of 2019, or substantial cuts

in response to a full recession," he wrote in a report.

During 2019, the Fed cut interest rates amid fears that high rates could help send the economy into a recession as trade tensions flared around the world. High rates slow the economy by design and raise the pressure across the financial world. Earlier this spring, they helped lead to three high-profile collapses of U.S. banks. They also hurt prices for all kinds of investments. The hardest hit tend to be those bid up on hopes for big growth far out in the future. That's why tech stocks often swing in particular with expectations for rates.

Cisco Systems also took a hit after it said it would buy Splunk, a cybersecurity company, for roughly $28 billion in cash. Cisco fell 3.9%, while Splunk jumped 20.8%.

On the winning side of Wall Street, FedEx rose 4.5% after it reported stronger profit for the latest quarter than analysts expected.

All told, the S&P 500 fell 72.20 points to 4,330.00 and is back to where it was in June. The Dow dropped 370.46 to 34,070.42, and the Nasdaq lost 245.14 to 13,223.98.

London's FTSE 100 slipped 0.7% after the Bank of England left interest rates steady. The expectation had been for another rate hike, but a surprising report this week showed a drop in U.K. inflation. Stock markets elsewhere around the world were much weaker.

Japan's Nikkei 225 fell 1.4%, South Korea's Kospi dropped 1.7% and France's CAC 40 lost 1.6%.

NOTICE

NOTICE is hereby given that IFAUCA GUSTAVE DORVILUS, of P.O. Box EL-27675 Leo Pinder Street, Spanish Wells, Eleuthera, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 15th day of September, 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that JAMES FAUSTIN, of Hope Town, Abaco, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 22nd day of September 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

A PRESS conference by Federal Reserve chairman Jerome Powell is displayed on the floor at the New York Stock Exchange in New York, Wednesday, Sept. 20, 2023. The Federal Reserve left its key interest rate unchanged for the second time in its past three meetings, a sign that it’s moderating its fight against inflation as price pressures have eased. Photo:Seth Wenig/AP

Aviation chief: ‘Put money where mouth is’ on climate

Dr Romer said. “We need to look at green energy, we need to look at green airfields, we need to look at reducing the size of our physical infrastructure, while taking advantage of the kinds of assistance the international community can give us when we model what sustainable airports look like in the region.”

Dr Rafael Echevarne, Airports Council International director for Latin America and the Caribbean, said there is an

opportunity for the region to lead the way in sustainable and climate resilient airports.

“There are a lot of things that airports can do to reduce their impact on the environment in relation to the emission of carbon dioxide,” Dr Echevarne said.

“One of the great opportunities, from my point of view, is that the smaller airports in the Caribbean have a huge opportunity to generate electricity with solar.

“There are many airports, which we know, that can be self-sustainable

when it comes to power being generated from solar. It’s a question of just doing the studies and allowing these airports to not only install solar, but sell the excess power to the grid. That is actually in the works for several airports within the region already.

“The airports in the Caribbean can be the pioneers in this aspect. If there is something we are sure of in the Caribbean, there is sun and wind. There are definitely huge opportunities. Right now, the cost of installing solar panels has

come down dramatically and considering the cost of energy, I don’t think it’s a difficult decision to make.”

Leveraging private capital via blue/green bond issues in island economies, and using technology to maximise the functionality, were also topics of discussion.

Filipe Pereira dos Reis, regional director of Airport Passenger, Cargo and Security of the Americas, said there must be short and long-term plans for the airports and projects to

adequately address sustainable infrastructure.

“The challenge with short-term and long-term is that governments typically have a mandate of four to six years, depending on their term,” he said. “But we have to realise that our business [aviation] is a longterm business. So, it’s an infrastructural investment business which typically gets depreciated in 30, 40, 50 years. So there needs to be a balance.

“We understand the needs of the government in looking for funding in

the short-term, but at the same time we would wish that governments would look into the longer term. Why? Because we are a firm believer that the spinoff effects, economically speaking, of the businesses that we have, pay way more than looking at the short-term.”

CIBC FirstCaribbean International Bank and KPMG served as the title sponsors for New Energy’s CARIF 2023 conference.

TECH COMPANIES TRY TO TAKE AI IMAGE GENERATORS MAINSTREAM WITH BETTER PROTECTIONS AGAINST MISUSE

By MATT O'BRIEN AP Technology Writer

ARTIFICIAL intelli-

gence tools that can conjure whimsical artwork or realistic-looking images from written commands started wowing the public last year. But most people don't actually use them at work or home.

That could change as leading tech companies are competing to take text-to-image generators mainstream by integrating them into Adobe Photoshop, YouTube and other familiar tools.

But first, they're trying to convince users and regulators that they've tamed some of the Wild West nature of early AI imagegenerators with stronger safeguards against copyright theft and troubling content.

A year ago, a relatively small group of early adopters and hobbyists began playing with cutting-edge image generators such as Stable Diffusion, Midjourney and OpenAI's DALL-E.

"The previous ones were an interesting curiosity," but businesses were wary, said David Truog, an analyst at market research group Forrester.

A backlash followed, including copyright lawsuits from artists and photo stock company Getty, and calls for new laws to rein in generative AI technology's misuse to create deceptive political ads or abusive sexual imagery.

Those problems aren't yet solved. But a proliferation of new image generators say they're business-ready this time.

"Alexa, create an image of cherry blossoms in the snow," is the kind of prompt that Amazon says U.S. customers will be able to speak later this year to generate a personalized display on their Fire TV screen.

Adobe, known for the Photoshop graphics editor it introduced more than three decades ago, was the first this year to release an AI generator designed to avoid legal and ethical problems created by competitors who trained their AI models on huge troves of images pulled off the internet.

"When we talk to customers about generative technology, mostly what we hear is a lot of the technology is really cool, but they don't feel like they can use it because of these questions," said Adobe's chief technology officer for its digital media business, Ely Greenfield.

That's why Adobe's product, called Firefly, was built on its own Adobe Stock image collection, as well as content it has licensed. Stock contributors also are

getting some compensation out of the arrangement, Greenfield said.

"Adobe Firefly is clean legally, whereas the others are not," said Forrester's Truog. "You don't really care about that if you're just some dude having fun with generative AI."

But if you're a business or a creative professional thinking about using images on your website, apps, or in print layouts, advertising or email marketing campaigns, "it's kind of a big deal," Truog said. "You don't want to be getting into trouble."

Some competitors are taking note. ChatGPTmaker OpenAI unveiled its third-generation image generator DALL-E 3 on Wednesday, emphasizing its impressive capabilities and future integration with ChatGPT along with new safeguards to decline requests that ask for an image in the style of a living artist. Creators can also opt to exclude their images from training future models, though Truog notes that OpenAI hasn't said anything "about compensating authors whose work they use for training, even with permission."

In separate New York City showcase events Thursday, both Microsoft and Google-owned YouTube also unveiled new products infused with AI image generation.

Microsoft, a major investor in OpenAI, showed how it is already starting to bake DALL-E 3 into its graphics design tools, mostly for background editing, as well as its Bing search engine and chatbot. YouTube revealed a new Dream Screen for short YouTube videos that enables creators to compose a new background of their choosing.

Earlier this month, both Adobe and Stability AI, maker of Stable Diffusion, joined a larger group of major AI providers including Amazon, Google, Microsoft and OpenAI that agreed to voluntary safeguards set by President Joe Biden's administration.

One safeguard requires companies to develop methods such as digital watermarking to help people know if images and other content were AI-generated.

Microsoft executives said the company has built filters to determine what kinds of imagery can be generated from text prompts in Bing, citing those made with top political figures as content to monitor.

The goal is "to make sure it's not producing types of content we would never want to produce, like hateful content," said Sarah Bird, Microsoft's global head for responsible AI.

JARED ANDERSEN, Director of Product Marketing for Bing Chat at Microsoft, shows a new artificial intelligence tool for generating images on Microsoft’s Bing Chat Enterprise at a company event in New York, on Thursday, Sept. 21, 2023.

Photo:Cora Lewis/AP

RBC chief pledges company count opening upgrades

be assured that we are reviewing our processes in this area, and we are going to work on the identification of opportunities we have for simplifying and streamlining that process to make it smoother for our Family Island clients.”

Mrs Missick, meanwhile, said RBC had reduced its physical Family Island branch network in common with rival commercial banks simply because the extra expense incurred in operating them cannot be justified by the return on investment. “We’ve seen in the last few years that many commercial banks have closed branches on the Family Islands,” she added.

“The reality is that it’s extremely expensive to operate a full service bricks and mortar branch on the Family Islands. However, I remain upbeat that with advancements in digital technology and the emerging Fintech (financial

technology) industry in

The Bahamas, solutions are developing to make it easier for banks to distribute services to the Family Islands beyond the traditional bricks and mortar branches.”

The RBC chief said the COVID-19 pandemic had accelerated, and driven a faster adoption rate for digital and electronic banking services. “For example, across the collective of RBC in The Bahamas, more than 51 percent of customers use digital banking options on a monthly basis. In Abaco, it’s 80 percent,” Mrs Missick said.

“The global financial crisis was a turning point for many financial institutions and forced us to evolve, not with a fear of change, but with a vision of sustainable growth. So we evolved our business model, and the evolution was a blend of bricks and mortar branches but also with digital solutions. It was an undertaking that

unfortunately necessitated consolidation of some of our branches.”

Mrs Missick said RBC was working with the Government and others on improving “financial inclusion” in the Family Islands, while acknowledging that the Sand Dollar “has the potential to efficiently bridge the gap as an affordable payment option in the digital payments ecosystem”. RBC has now enabled its clients to top up their Sand Dollar wallets via its digital payments platform.

Meanwhile, Daphne DeGregory-Miaoulis, Abaco’s Chamber of Commerce president, said the island is “back in business” with a surplus of job opportunities. She said: “We have zero unemployment. In fact, we have more jobs than people. We’re actually giving away our jobs. We actually need more Abaconians to come back home. Economically we were the greatest generator outside

Total visitor arrivals up 30% though stopovers still trail

remains below the 1.27m that visited in 2019. However, when cruise arrivals are factored in, total visitor numbers for the seven months to end-July stood at 5.8m, representing a 59 percent increase over 2022 and a 30 percent surge over 2019 numbers.

Mrs Duncombe added that Abaco received the

second highest number of visitors behind New Providence for the period, with 35 percent arriving via private plane. Total air and sea arrivals for the seven months through to end-July stood at 280,000, some 45.1 percent up on 2022 figures and “within 1.5 percent of 2019 numbers”.

Meanwhile, Samantha Lookie, Bahamasair’s director of commercial sales and marketing, told the same conference that the national flag carrier enjoyed an 80 percent load factor on its domestic flights to Abaco in July which meant the island surpassed Freeport as its “number one” local destination.

As for international routes, that same month the Marsh Harbour to West

Palm Beach service produced a 90 percent paying passenger load factor.

“For Bahamasair, anything over 40 percent we consider a good load factor,” Ms Lookie said by way of comparison.

“To see 80 percent and 90 percent, you’re definitely on your way to a big come back. For August, it was 79 percent for domestic and 86 percent for international, not too bad, and you’re on the way. There were 10,663 passengers between Palm Beach and Marsh Harbour, as opposed to 8,889 in 2022. That’s a 20 percent increase in 12 months. You’ve got something right in Abaco because people are coming.”

of New Providence, economically, and we’re getting back there.” She explained that labour and housing shortages remain Abaco’s “greatest challenges” with many properties being used as vacation rentals instead of long-term housing options for locals. She petitioned for the Government to consider some concessions for rentals constructed strictly for long-term tenants. She said: “Two of Abaco’s greatest challenges today are housing and labour. We would urge our government to come up with an incentive to attract Bahamians to build specifically in a residential capacity, offering VAT and duty-free concessions to build local residences… one, two and three bedroom units and not used for Airbnb needs. That’s been a part of the problem. Everything that could be rented has gone into an Airbnb rental.

“We have two new developments coming in South

Abaco, we’re told, and Montage Cay…is expecting to open their doors in summer. These are all great but what about personnel? Where are they coming from?

“We need to grow our population. We need more people, we need more bodies. New developments are going to need more labour, and we need more consumers with all these new businesses. You know, every day we’ve got two businesses that are opening up here. Abaco is an opportunity wide open. There’s so many different types of businesses, but we need a population that will support that growth and we need more houses.”

Mrs Degregory-Miaoulis also called for an extension to the concessions available on building supplies to aid locals in their rebuilding efforts. She explained that during the lockdowns associated with the COVID-19 pandemic, rebuilding efforts were halted and

‘Security underpins economic growth’

within this capital development plan we see for Abaco, the divisional headquarters will be substantial.

“The importance of that is that security underpins economic growth. You can be as industrious as you like. If crime is out of control, if the fear of crime grips, you will not achieve the economic progress that you wish.”

Mr Munroe explained that the capital development plan will see renovations made to many police stations. He added that new-build police

stations will be placed on many Family Islands, with renovations needed in every police station in the country except Cable Beach. He said: “We’re currently undertaking the creation of a capital development plan for the Royal Bahamas Police Force and Royal Bahamas Defence Force. It is driven at an evaluation of all of the existing stations to determine the need for renovation.

“You would be amazed at the very poor conditions that our police officers discharge their duties in and from. We

supplies became hard to access. She argued that the concessions are still needed as many persons have still not acquired the means to rebuild and are living in trailers.

The Chamber chief said: “COVID really put the screeching brakes on everything. We just had our momentum going, everything was cranked up and then, all of a sudden, stop. Those who came to help us had to leave. With the lock downs and the supply chain not being available, you know, it took the wind right out of our sails.

“Originally we were granted three-year [concessions]. As we continue to point out we really only had a bit over a year-and-a-half. The Abaco Chamber is still advocating for extension considerations because so many people are still without homes, so many people still need to rebuild. It’s still warranted. We still have civil servants living in trailers. It’s been four years.”

made a determination that we have to renovate, and I do not exaggerate when I say just about every one of them other than perhaps Cable Beach, as that was recently built when it was relocated.

“So currently that’s an exercise of evaluating the renovation work needed and the new build needed. Most of the new build will be in the Family Islands, unsurprisingly, although there are substantial buildings on New Providence.”

‘DEBUNK

THE MYTH’ SAYING TECHNICAL WORKERS INFERIOR

FROM PAGE A22

following the devastating Hurricane Dorian.

“We hope that that will be an impetus, and a source of hope, for you in Abaco. We are pleased to aid in the recovery of this island and its people through the provision of technical and vocational education and training.”

Dr Davis explained that BTVI is expanding across

The Bahamas, with a new campus scheduled to open in Eleuthera in partnership with Disney Cruise Line. A campus is also planned for Exuma, along with $1.6m in renovations to the existing campus in Grand Bahama. She said: “We are on the cusp of a transformative growth across the islands of The Bahamas. BTVI is weaving a network of satellite campuses across the chain of the Bahama

Islands, including right here in Abaco.

“We have a campus renovation in Greencastle Eleuthera, a new site on the horizon for Exuma. In Grand Bahama, just last week, we signed a $1.6m contract with Patrick McDonald Construction for a renovation of the main site in Grand Bahama.

“The renovations will be completed in six months, and will make a difference not only in Grand Bahama, but Grand Bahama has responsibility for Abaco and the Family Islands, so be excited about the possibility that represents.”

WAYNE MUNROE

Pintard to PM: Probe Gov’t ‘late payments’

Kimsley Ferguson, the Bahamas Public Services Union’s (BPSU) president, appeared to corroborate Mr Pintard’s assertions earlier this week when he alleged that dues and premiums for persons who are members of the union’s medical plan have been late around three times. “We are satisfied through information received that the Treasury is making selective payments to particular entities, and so it suggests to us that there is indeed a cash flow problem in our country,” he added.

Mr Halkitis, though, said Mr Ferguson’s concerns had not come to the Government’s attention. He added that it was paying all its bills in the ordinary course of business as soon as it could

verify that the goods and services that are the subject of invoices have been provided as required.

Mr Pintard, though, last night reiterated that the Opposition is not referring to what he called “ordinary delays” in the Government paying its bills as a result of having to undertake such verification exercises.

“What he failed to do is address whether there are any unusual delays,” the Opposition leader said of Mr Halkitis’ response.

“He should say definitively whether there are any unusual delays.

Asked what examples he had referred to in his letter to Mr Davis, Mr Pintard replied: “We cited a public sector credit union that has had several months of delay, which is adversely affecting customers. It puts its

members in a very adverse position given the penchant for companies to sometimes cancel or lapse a person’s pension or insurance.

“They’re concerned about the accrual of interest with late payments and arrears. These are things we are concerned about.”

Mr Pintard did not confirm whether he was referring to the same situation as Mr Ferguson, the BPSU president.

However, he said he had also cited to Mr Davis alleged delays in payments to contractors and skilled tradespersons participating in the Urban Renewal Home Repair programme in Grand Bahama, some of whom have been waiting for monies purportedly since July. And he also referred to late payments to the Family Island offices

BPL: 8% ‘crazy growth’ in New Providence demand

FROM PAGE A24

forms of renewable energy and other generation sources they wish to see embraced in The Bahamas’ energy mix.

This, Mr Pratt added, will be used to inform a forthcoming Request for Proposal (RFP) that will be “rolled out in the coming weeks” as the Government and BPL seek bids on renewable energy, clean fuels (liquefied natural gas) and other forms of generation.

“We’re seeking to move towards ultimately about 60 MW of solar in New Providence and, in the Family Islands, about 35 MW of additional solar,” he said.

“What we are trying to do is march towards the National Energy Policy goal of 30 percent renewable generation by 2030.”

Mr Pratt, though, was unable to escape a grilling on BPL’s soaring energy bills and why they have gone so high. One student, who did not give their name, said BPL’s costs had gone from $100 to $500 this summer. “I just want BPL to quantify and qualify this drastic increase over a short period of time,” they said. “For the most part, electricity has been off so frequently. We don’t see any give back. BPL needs to tell us how light bills got so high in such a short period of time.”

After initially referring to other BPL staff members present, only to be told he “sounds just like a politician”, Mr Pratt then referred to the utility’s fuel charge “glide path” strategy that is designed to recoup costs that were previously “under-recovered” by not being passed on to

consumers. However, he did not explain why the “glide path” became necessary, and then sought to blame the hikes on a combination of increased consumption and higher global oil prices.

“The base rate has not changed since 2010,” Mr Pratt said of BPL’s tariff structure. “Last year, we released what we call a fuel ‘glide path’. It spoke to the fact we had under-recovered a quantity of fuel. The ‘glide path’ is set to recover that money so we can pay the bills from the fuel supplier and cover ongoing fuel [costs] as we go through.”

The BPL executive then sought to shift the conversation to increased consumption by the utility’s 113,000-plus customers, acknowledging that his bill - which he said was around $75 in prior years - had gone up because he was

using more AC to cope with the extra hot summer.

This, though, did not pacify the student, who said: “I really don’t see any justification, truly. I know it can go up slightly, but I really don’t see justification for the light bill going up about 100 percent.” Asked by Mr Pratt with his electricity usage had increased, the student replied: “It has not gone up at all. If it went up, it’s not astronomical enough to make it go up like this at all.”

Mr Pratt then switched to the rise in global oil prices, which spiked in 2022 in the aftermath of Russia’s Ukraine invasion and the demand surge caused by the world economy’s postglobal reflating. “If you remember, about two years ago we held the fuel charge at 10.5 cents per kilowatt hour (KWh),” he added.

of government agencies and ministries, which has delayed their ability to meet their obligations to residents.

Referring to the Home Repair initiative, the Opposition leader said: “These are not large contractors. They’re paying in bits and pieces. We have numerous small contractors who are complaining. There are also persons who get assistance from social services. Some funds come quarterly, some come monthly, and sometimes they’re told by staff members that money has not arrived so they cannot settle certain matters.”

“It is across the board at so many different agencies with sub-contractors, vendors who provide goods to government ministries, various islands that wait for government payments

in tranches, so persons are unable to get assistance from government agencies on this island,” Mr Pintard told Tribune Business.

“This appears to be out of the ordinary.

“We need the Prime Minister to answer specifically on those particular areas we identified for him... We want him to investigate the reason for the delays, then to fix whatever the challenges are and if there’s a need to have a substantial conversation with the public on the challenges the Government is facing. We certainly need his intervention. It is too widespread for him to ignore...

“I think they’re having some shortfalls, and the Prime Minister may be able to explain it, but don’t deny the reality when persons are unable to be paid and

are not being paid on time.”

Mr Pintard said he had been informed by one institution that it has sufficient reserves to apply to customer accounts, and avoid them incurring any late fees or policy cancellations, while the salary deductions are awaited from the Government.

The Opposition leader, though, questioned how others not enjoying the same robust financial position are able to cope while they await payment from the Public Treasury. “Not every organisation has an overdraft or reserves they can turn to, so there’s a domino or ripple effect on persons expecting to get money in the normal course of business for the Government,” Mr Pintard said.

cost on to its consumers. These sums are now what is being reclaimed by the sky-high fuel charge so that BPL can settle outstanding debts its fuel supplier, Shell, and repay the Government for its previous loan support.

“All the way back a few years ago, fuel went down to $45 per barrel.

“Over the last year, it spiked to $117 a barrel and that’s what caused the fuel charge to change. Fuel has gone up significantly.” Mr Pratt did not mention that the fuel “glide path” strategy became necessary because the Davis administration decided not to execute the trades that could have secured extra cut-price fuel to support BPL’s hedge.

The impact of this was then compounded by the further decision to hold BPL’s fuel charge at 10.5 cents per KWh for a further year, even though the utility’s fuel costs were soaring much higher because it was having to purchase at ‘spot’ market prices that were ultimately sent to new heights after the Ukraine invasion.

This is what resulted in the fuel “under recovery” referred to be Mr Pratt, as BPL did not pass the full

Mr Pratt, meanwhile, disclosed that BPL now has some 113,689 customers spread across all the islands it serves with total power demand standing at 1.7m Mega Watt hours per year. Abaco’s customer base is slowly recovering from Hurricane Dorian’s ravages, now standing at 7,497 compared to a pre-storm 9,165, resulting in the island reclaiming its status as BPL’s second-largest island. Peak load has recovered from 14 MW in Dorian’s aftermath to 21 MW, with the island’s all-time high standing at 27 MW. Mr Pratt said BPL has been adding an average 107 customers per month to its Abaco grid over the last six months.

BAHAMAS POWER & LIGHT (BPL)

‘DEBUNK THE MYTH’ SAYING TECHNICAL WORKERS INFERIOR

THE BAHAMAS “must debunk the myth” that workers with technical and vocational skills are “inferior” to their ‘white collar’ counterparts, a leading education executive said yesterday.

Dr Linda Davis, the Bahamas Technical and Vocational Institute’s (BTVI) president, told yesterday’s Abaco Business Outlook conference that

there must be a change in Bahamian society’s perception towards workers who are skilled with their hands. She argued that stigma and misconceptions surrounding persons employed in technical fields, suggesting they are inferior or lack intelligence, has led to a huge skills gap and shortage of specialised labour. She said: “The fact of the matter is manual labour has been devalued in favor of white collar work. There’s a belief, including by some parents and even those in the educational system,

and perhaps even some of us in this room, that those who go into the white collar roots are of superior intellect.

“This perception has trickled down to students who, in turn, leave the system with a belief that vocational education and technical work is somehow inferior. We have to debunk that myth.” Dr Davis added that investing in technical, vocational education and training (TVET) can equip persons with the skills needed to help build the

Gov't to ‘enforce’ Bahamian understudy for expat hires

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

A CABINET minister yesterday confirmed the Government will now “enforce” requirements for employers to identify a Bahamian understudy before labour certificates permitting the

hiring of expatriate workers are approved.

Pia Glover-Rolle, minister of labour and the public service, told the Office of the Prime Minister’s weekly media briefing that the Davis administration will be creating a “new task force” to oversee policies requiring companies to identify a Bahamian understudy to expatriate employees so

they can replace them when work permits expire.

She pledged that her ministry and the Department of Labour are ready to “take on the big challenges to drive progress, and to improve the lives of Bahamians, which is always a priority.

“I’m proud to announce that we are planning the formation of a new unit, just a few days into my new

economy and “transform” the labour market. She said: “We’re talking about developing skills for individuals to learn work and live, developing skills for sustainable economies and developing skills for inclusive and peaceful societies. This renewed ambition for TVET to build a common vision for transforming labour markets, economies and societies is what the BTVI wants to do in partnership, particularly with industry.”

Dr Davis also disclosed that BTVI is set to open

portfolio, that will enforce the law of The Bahamas as it relates to our notice of vacancy process and understudy policies,” Mrs Glover-Rolle said.

“Employers are advised that all applications for labour certificates will be carefully reviewed to ensure that, where applicable, a Bahamian understudy must be identified before that application is processed. So this new task force will be following up to ensure that the identified Bahamian is receiving the training that they were promised, so they can eventually assimilate into the role. You can

a new campus in Abaco

next year as part of a strategy to expand its physical presence throughout The Bahamas. She said:

“The former Dundas and Murphy Town primary school site is springing up to become BTVI Abaco. We will be offering courses in construction, cosmetology and business trades to begin with.

“We’re open for business for spring 2024, but we’re going to start in Abaco earlier. Once we get the site up the contractor has promised we will be ready.

expect to see this unit fully come into force within the next six months or so.”

An employer must advertise a vacant post in a daily newspaper for at least three days before it can apply to the Department of Labour for a labour certificate - a mandatory stem that must be fulfilled before a work permit application can be submitted to the Department of Immigration for an expatriate hire. If the labour certificate application is approved, the employer is required to present a copy of the receipt so it can be issued.

There is nothing in the Employment Act or the Immigration Act that requires an employer to have an under study identified as a pre-requisite before applying for a labour certificate. However, the minister does have the authority to make policy in this regard as they see fit.

Mrs Glover-Rolle said:

“The current notice of vacancy process calls for you to require an applicant, who was a foreign applicant, to identify, or for the company to identify, an understudy. That is a component that is critical.

We will indeed be ready to start classes; perhaps as early at the new site as next month.”

Dr Davis said she hopes the campus will aid Abaco’s post-Hurricane Dorian recovery by providing technical and vocational training to residents. She added: “I would be remiss if I would not just say that BTVI is pleased that our campus here in Abaco will be a part of the rebuilding of the Abaco economy

“We will now be putting in place an enforcement policy, which speaks to ensuring that the understudy is identified is an actual understudy; is able to engage in training; the period that is noted on the application; and that there is an actual course of action. So that, at the end of the period where the foreign worker would have been allowed, the Bahamian understudy is able to successfully assimilate into the role.”

She implied that there has been no enforcement and accountability in the labour certificate process, which is why the new policy is being implemented to ensure the Department of Labour is protecting Bahamian workers.

‘Security underpins economic growth’

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net

A CABINET minister yesterday said the Government plans to construct a new divisional police headquarters in Abaco via a public-private partnership (PPP), adding:

“Security underpins economic growth.”

Wayne Munroe, minister of national security, told the Abaco Business Outlook conference that the PPP provider for the proposed Marsh Harbour development has been identified.

He said: “A plan has been advanced to the Commissioner of Police that has been approved and, subject to the agreement of a PPP, the construction on the new divisional headquarters to be based in Marsh Harbour should begin hopefully within the calendar year from now before the next Budget.

“A plan has been approved, the PPP provider has been identified, the

Commissioner of Police is happy with the plans, which include provision for expansion to include a low-facility detention centre at a later point, and we very near to executing on that. And this being the third driver of our economy, it makes a good case for a station that is forward looking. “ The previous police headquarters was destroyed during Hurricane Dorian four years ago, along with many other structures and infrastructure on Abaco. Mr Munroe added that major foreign direct investment (FDI) projects in the pipeline for Abaco, including the $352m Montage Cay project, increased police manpower and infrastructure will be required.

He said: “We have these big plans for Abaco, and with big plans will come the need for policing and, with the need for policing, will come the need for infrastructure and manpower. And since we have to be proactive, one would expect

SEE PAGE A20

Requirments are as follows:-

• Minimum 3 years experience In Diamonds

• Minimum 3 years experience In Retail

• Identify sales opportunities by attending

events & demonstrating

features

• Maintain familiarity with the products,

to customers’ inquiries and

strategizing showroom displays

monitor sales reports

• Brand representative must have excellent

of marketing disciplines and

and exceptional communication

to attract clients on purchasing

that would generate revenues

• Performs other ad hoc duties as required by

Supervisor and Department Head

PIA GLOVER ROLLE

Tyrannical leadership drives bad outcomes

There is a prevailing management model that convinces corporate chiefs to employ autocratic and authoritarian-style supervision as a means of securing profits and efficiency. Oftentimes, this template precludes employee harmony and our ability to develop balance between a relaxed and productive workplace. Far too often we see the adverse effects of tyrants in the workplace. They are supported by senior leaders who seem to look only at the financial benefits and improved bottom line, while neglecting the fact that staff turnover has

increased and employees are miserable. This week, we focus on identifying those management behaviours that result in a motivated and highly productive team.

1: Give people meaningful work to do. Do not become the leader who takes the fun, important and impactful assignments, while leaving the drudgeries to the rest of the staff. When employees find joy in their work, they are far more inclined to show up and deliver high quality work.

2: Avoid making clones. Secure leaders encourage diversity in the workplace.

When the standards and workplace culture are firmly established, people should be allowed to express their individuality in how they get their tasks completed.

3: Maintain strong communication ties. When senior leadership opens the doors of communication without intimidation, there is a more relaxed and productive workplace that is created. Bullying tactics must be avoided. It is quite possible to hold people accountable while maintaining a great working relationship. Responsible leaders seek this balance.

4: Listen to the team and respond to concerns.

Doctors secures RBC's $25m for GB hospital

ROYAL Bank of Canada (RBC) has committed to provide up to $25m Doctors Hospital Health Systems (DHHS) for financing construction of its 30-bed Grand Bahama hospital.

"RBC remains Doctors Hospital's preferred financing partner given the depth of their experience in corporate banking, the unmatched flexibility in structuring deals and their deep sector knowledge in healthcare," said Dennis Deveaux, Doctors Hospital's chief financial officer.

"Our expansion in The Bahamas is anchored in the financing capacity RBC presents, based on Doctors Hospital Health Systems'

balance sheet strength and the viability of our investment model. RBC, then, is a core partner in our growth."

“We are proud to partner with Doctors Hospital Health Systems on this important endeavour, and to contribute to the improvement of healthcare in The Bahamas, specifically in Grand Bahama,” said Brian Knowles, RBC's vice-president of corporate banking. “By providing the necessary funding for the construction of this modern hospital, we aim to enhance the lives of residents by ensuring they have access to world-class medical services in their local community."

“This collaboration showcases RBC’s unwavering support in revolutionising healthcare services on the island and improving access to quality medical care for residents,” said LaSonya Missick, RBC’s managing director for The Bahamas and Turks & Caicos. “It is through such partnerships that we can make a meaningful impact and drive positive change in the communities we serve.”

Construction of Doctors Hospital's Grand Bahama hospital is set to be completed in the fall of 2024, and is designed to improve access to quality medical care for residents on the island.

When employees raise their voice to identify a pain point, senior leadership must listen. When employees think they have no recourse, they check out and become emotionally detached from the workplace. Request feedback and ensure that employees feel safe addressing concerns.

5: Fight the micromanagement culture. Perhaps the greatest challenge destroying high employee engagement is the narcissistic mindset that results in micro-management. When a leader is drunk on their own juice of prowess, this usually

leaves the staff out of the loop and they eventually become disinterested in high performance. Some never re-engage and merely become warm bodies.

• NB: Ian R Ferguson is a talent management and organisational development consultant, having completed graduate studies with regional and international universities. He has served organisations, both locally and globally, providing relevant solutions to their business growth and development issues. He may be contacted at tcconsultants@ coralwave.com

DOCTORS Hospital’s chief financial officer Dennis Deveaux (second from left) shakes hands with Royal Bank of Canada’s (RBC) vice-president of corporate banking, Brian Knowles (second from right), after securing financing to construct a new hospital in Grand Bahama. Also pictured are Doctors Hospital’s president and chief executive, Dr Charles Diggiss (far left), and RBC’s managing director for The Bahamas and Turks & Caicos, LaSonya Missick (far right).

The facility will offer a range of specialist services, supporting local physicians and as a partner to the Rand Memorial Hospital. Doctors Hospital is also considering the specific impacts of its strategic relationship with the Cleveland Clinic in quality benchmarking and long-range planning for service delivery in Grand Bahama.

“Doctors Hospital Health Systems is demonstrating our ongoing commitment to the return of trust and confidence in the capabilities and capacity of the scope of healthcare services provided via the private sector in Grand Bahama," said its president and chief executive, Dr Charles Diggiss.

"The Rockwell Hospital will be an in-patient acute

care hospital (Freeport) and is intended to become the signature Doctors Hospital Health Systems facility going into 2025 as we continue to partner with the other providers in the Grand Bahama community - public and private - to meet the healthcare needs and exceed the patient care expectations."

Aviation

chief: ‘Put money where mouth is’ on climate

THE Bahamas' aviation director highlighted this nation's drive to construct climate resilient and environmentally-sustainable airports during a recent Caribbean infrastructure summit.

Dr Kenneth Romer, deputy director-general in the Ministry of Tourism, Investments & Aviation, told the

Caribbean Infrastructure Forum: “Environmental concerns top our list at the moment, as it relates to the intensity of hurricanes and natural disasters and the threat they pose.

“But, I think, we have an opportunity to demonstrate to the rest of the region how serious and committed we are to supporting the message of sustainability

that our prime minister has really been taking around the world. So, it’s time to put our money and our plans where our mouth is.”

Grand Bahama and its international airport sustained major damage during Hurricane Dorian's passage in September 2019.

Dr Romer called the experience an “opportunity” to change they way airports are built throughout The Bahamas, with the nation becoming a "green" airport pioneer.

“We need to look at solar power for our airports,”

SEE PAGE A19

DR KENNETH ROMER FILIPE PEREIRA DOS REIS RAFAEL ECHEVARNE

SEPTEMBER 22, 2023

$6.10 $6.11 $6.12 $6.17

Bahamian battles FTX chief on $28m aircraft

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A BAHAMIAN aviation entrepreneur yesterday launched legal action against FTX’s US chief to safeguard his ownership interest in two aircraft valued at a combined $28m

Paul Aranha, founder of Trans-Island Airways, and who described himself as “one of the largest Bahamian victims” of the crypto exchange’s implosion, accused John Ray of exploiting his efforts to amicably resolve the fate of planes acquired with financing from FTX by forcing him to “shoulder all of the risk and expense” associated with maintaining them.

The aviation proprietor charged that Mr Ray, who controls the 134 FTX entities currently in Chapter 11 bankruptcy protection, of a last-minute intervention that

• Accuses Ray of leaving DOJ resolution in ‘limbo’

• And forcing Trans-Island to ‘shoulder’ $6m upkeep

• SBF ‘hand shake’ loan; gave $15m services to FTX

thwarted his proposed settlement with the US Justice Department to resolve both planes’ fate after he had incurred $5.93m in expenses to ensure their upkeep over the past two years.

With his bid to either sell or operate the aircraft frustrated, and costs continuing to mount, Mr Aranha and his attorneys have moved to counter Mr Ray by seeking multiple forms of relief from the Delaware Bankruptcy

Court. Their first, and likely preferred outcome, is for Judge John Dorsey to find that the two planes are owned by the Trans-Island Airways chief - not Mr Ray and FTX Trading’s estate - and order that the Chapter 11 asset freeze does not apply to them.

This would enable Mr Aranha to either sell or operate the planes, while also resolving any sums still owed to Mr Ray and FTX’s creditors/investors. Alternatively,

Pintard to PM: Probe Gov’t ‘late payments’

• Asserts that delays ‘out of the ordinary’

• Cites salary deductions, Home Repair

• Writes to PM with ‘concrete examples’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

should Judge Dorsey not issue such an Order, the Bahamian aviation entrepreneur is asking the Delaware Bankruptcy Court to still lift the Chapter 11 freeze so he can “use, operate, preserve and maintain” both planes or sell them should he so choose.

And, in a third and final option should Judge Dorsey not go for either at the upcoming October 19 hearing, Mr

SEE PAGE A17

BPL: 8% ‘crazy growth’ in New Providence demand

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A SENIOR Bahamas

Power & Light (BPL) executive yesterday said the utility had seen “crazy growth” in customer demand over the summer with New Providence’s peak load increasing by 8 percent year-over-year.

Ian Pratt, BPL’s chief administrative officer, told the Abaco Business Outlook conference that the state-owned utility had seen similar energy demand increases on other islands, including Exuma, as the extra hot summer resulted in households and businesses consuming more air conditioning (AC) to stay cool.

“We’ve seen it in Abaco, we’ve seen it everywhere,”

he said. “In New Providence, our load went up 8 percent this summer compared to last year. We hit 280 Mega Watts (MW) for the summer. Growth in the peak in New Providence was 20 MW. It went from 260 MW to 280 MW. In the space of one year, that’s crazy growth. We usually see 1.5 to 2 percent or so growth. Everybody knows the summer was less cool.”

As a result, Mr Pratt said BPL needs to expand its generation capacity throughout The Bahamas - both conventional and solar - “to stay ahead” of the demand and “meet our customers’ needs”. He revealed that the Government had recently issued a request for information seeking feedback from the public and private sector on what

SEE PAGE A21

RBC chief pledges company count opening upgrades

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

ROYAL Bank of Canada’s (RBC) top Bahamas executive yesterday pledged to address the challenges encountered by Family Island business clients when it comes to opening corporate bank accounts.

LaSonya Missick, the Canadian-owned bank’s managing director for The Bahamas and Turks & Caicos Islands, admitted to the Abaco Business Outlook Conference that “we will not say banking is perfect” given complaints voiced directly to her about the difficulties encountered in opening business bank

accounts outside of New Providence and Grand Bahama.

While not detailing these “challenges”, she promised that RBC will review its processes to ensure such accounts are opened efficiently to facilitate an improved ease of doing business. “We know there are some challenges that our clients face,” Mrs Missick said. “One in particular that stands out is the opening of business accounts in the Family Islands, and how efficiently that process is happening or not happening.

“I can say that I have seen some concerns raised directly with me.... Please

SEE PAGE A20

Total visitor arrivals up 30% though stopovers still trail

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Ministry of Tourism’s top official yesterday said total visitor arrivals to The Bahamas are 30 percent ahead of their pre-COVID record through to end-July although stopover visitors are still trailing slightly.

Latia Duncombe, the ministry’s director-general, told the Abaco Business Outlook conference that while year-over-year recovery post-COVID has been “encouraging” the pace of stopover visitor arrivals is still forecast to be slightly down on the 1.27m who came to these shores in the

last pre-pandemic year of 2019.

While stopover numbers are projected to finish ahead of 2022, standing at 1.18m for the 2023 full-year as opposed to 902,000 last time, the former figure still

THE OPPOSITION’S leader last night called for the Prime Minister to investigate as he doubled down on accusations that public servants, government contractors/vendors and the Family Islands are suffering “out of the ordinary” payment delays.

Michael Pintard told Tribune Business that the volume, and breadth, of complaints and concerns being voiced to himself and other Opposition members is “too widespread for him [Philip Davis KC] to ignore” despite denials from a Cabinet minister that the Government is facing cash flow challenges.

Michael Halkitis, minister of economic affairs, could not be reached for further comment last night, and did not respond to this newspaper’s messages before press time last night, but in speaking to other media he refuted all claims of a government cash crunch and accused the Opposition of “preaching gloom and doom” for political purposes. He also asserted that the Government is meeting all its obligations, and is not broke.

However, Mr Pintard last night refused to back down as he told this newspaper he had written to Mr Davis on the matter requesting that he investigate the Government’s payment delays. The Free National Movement (FNM) leader asserted that he had given the Prime Minister “very concrete examples” to back-up his concerns, including late salary deductions being paid on civil servants’ behalf to financial institutions to service loan, insurance and pension obligations.

JOHN RAY

MICHAEL PINTARD