09252018 BUSINESS

business@tribunemedia.net

TUESDAY, SEPTEMBER 25, 2018

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‘Tech hub’ booster expands to Nassau

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE firm that gave the Government’s “technology hub” ambitions a major boost is expanding its Bahamian presence through opening a satellite office in Nassau by early December.

Greg Wood, founder and chief executive of GIBC Digital, told Tribune Business the move came after demand for the company’s services proved “more than expected”. The company expects to hire ten persons for its Nassau office initially, having already employed 35 in Freeport.

Mr Wood said: “We are going to open a satellite office here in Nassau so that we can seamlessly deliver our services to the local community. We will hire about ten people initially and, based on the demand, we may hire more persons in the coming year.

“We will start the process probably in late October, with plans to open the office in early December. We’re looking for people who are smart and motivated. We have to have people on the ground so that we can service our clients here.

Freeport will always be our main office, I think, but we will need to have people on different islands around the country.”

As for GIBC Digital’s Freeport operations, Mr Woods said: “We have hired and are training 35 people thereabout, and plan to hire 50 in Freeport by the end of the year.”

“We will continue to hire people as business demands dictate. We are also looking at ways to use people we hire here in other countries, such as Nigeria, for example. Long-term, we are going to build a data

SEE PAGE 3

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‘Onerous’ law no excuse for Govt

‘Crystal clear’: Minister’s no to longline fishing

* ‘Comprehensive’ reform for Planning Act * Minister expects first report by November * Physical Planning: ‘More posts vacant than full’ * Judge’s order shakes up development

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

HE “onerous” provisions in The Bahamas’ main planning law are “no excuse” for the Government’s failure to uphold it, a cabinet minister admitted yesterday, amid a renewed push for reform.

Desmond Bannister, minister of works, told Tribune Business that the Government had organised a high-level working group to develop “a comprehensive plan” for amending the Planning and Subdivisions Act after the Supreme Court ordered that its provisions be enforced.

Emphasising his and the Government’s intention

to comply with the court’s August 3 decision, Mr Bannister conceded that Justice Rhonda Bain’s order that it prepare a “Land Use Plan” for New Providence by July 1, 2019, had “raised some concerns” within the Ministry of Works.

With Justice Bain’s ruling concentrating minds, and forcing the Government to “focus in a way we have not before”, the Minister said the working group was expected to deliver its first report on any potential changes to the Act by this November.

He revealed that understaffing at the Department of Physical Planning, where there are “more posts vacant than filled”, was a major impediment to the Government’s ability to properly

enforce the Planning and Subdivisions Act. Blaming unattractive salaries for the Government’s difficulties in attracting qualified staff, Mr Bannister said successive governments had failed to properly invest in the Department and make The Bahamas’ planning regulatory regime a priority.

He added that The Bahamas’ economic needs “require we get it right”, given that the absence of a Land Use Plan “and the basics required” made it “very difficult” for developers - both Bahamian and foreign - to comply with the law even when they sought to do so.

“The ruling has raised some concerns in my ministry,” Mr Bannister told

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

Michael Maura, APD’s chief executive, said the anticipated fall-off in Baha Mar-related construction imports produced a 5.5 percent year-over-year decline in twenty-foot equivalent unit (TEU) shipping containers moving through the Arawak Cay-based port.

In the absence of significant construction sector pick-up elsewhere, he revealed that dry bulk aggregate volumes fell by 17.23 percent compared to

A CABINET minister yesterday emphatically denied the Government plans to reverse the ban on longline fishing, telling Tribune Business: “We won’t change now.”

Michael Pintard, minister of agriculture and marine resources, said he had been taken aback by the Bahamas National Trust’s (BNT) unexpected public expression of concern that the Government was about to permit this practice within the waters of the exclusive economic zone (EEZ).

He added that the Minnis administration has “no plans” to reverse course on the prohibition of longline fishing, and said: “The Government’s view on this has not changed for many years and won’t change now. There is no discussion among government officials or the Ministry of Agriculture and Marine Resources with the view to entertaining that.

“I want to make it crystal clear that no such statement was made by my predecessor or myself. The issue that does not arise. The Government’s view on this has not changed for many years and won’t change now,” said Mr Pintard.

His comments came after the BNT released a statement in which it described longline fishing as a destructive practice that could change the Bahamian way of life forever.

Shelley Cant Woodside, the BNT’s director of science and policy, said that while the Trust was open to exploring the possibility of developing sustainable pelagic fisheries for commercial fishermen, it would not support any legislation

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Tribune Business of Justice Bain’s verdict, “and as a result of that we have put together a group to take a serious look at the Act itself and the amendments that may be required, and how this whole issue of Land Use Plans is going to be addressed.”

The working group’s membership includes the heads of all the Government’s planning-related Boards and agencies. They are Diane Holowesko-Dunkley, the Town Planning Committee’s chair; Pericles Maillis, head of the Town Planning Appeals Board; Charles Zonicle, acting director of physical planning; Melanie Roach, director of public

SEE PAGE 4

Arawak port operator to ‘save every penny’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Nassau Container Port’s (NCP) operator is aiming “to save every penny we can” following a financial year where its predictions of a near-$3m profit decline proved spot-on.

Dion Bethell, chief financial officer for BISX-listed Arawak Port Development Company (APD), told Tribune Business yesterday that it “tightened our belt” on cost controls to ensure its bottom line for the year to end-June 2018 came in around $350,000 above expectations.

Although APD’s profits slumped 20.8 percent year-over-year, falling from

* Beats $3m profit fall forecast by $350k * TEU volumes off 5.5% in Baha Mar absense * Expects $100k saving from $3m RBC pay-off

ARAWAK CAY PORT $11.171m to $8.858m, the company had been up against tough prior year comparatives due to a double Baha Mar boost - the resumption

of construction to complete the project, and recovery of $1.1m in rent and storage fees owed when it went into Chapter 11 bankruptcy.

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BPL: ‘Long way to go’ in fighting fuel losses

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMAS Power & Light’s (BPL) chief executive yesterday conceded the utility has “a long way to go” to minimise fuel theft and wastage, as he pledged to protect consumers “at all costs”.

Whitney Heastie told Tribune Business it was “extremely critical” for BPL to ensure all fuel purchased was used for electricity generation otherwise Bahamian businesses and households would feel an extra cost in the fuel charge component of their monthly bills.

While only one suspected fuel theft had been reported since he became BPL’s chief executive earlier this year, Mr Heastie said it was “not an accurate statement” to suggest the state-owned electricity monopoly had

* CEO pledges to protect consumers ‘at all costs’ * More ‘aggressive tightening up’ required * ‘No exception taken’ to regulator’s issues

WHITNEY HEASTIE “tightened up” its controls to the extent necessary.

“With fuel a pass through, obviously good management of that fuel customers

are paying for is extremely critical,” the BPL chief told Tribune Business. “Any time we have theft, wastage or leaks it impacts customers.

“We have to, at all costs, protect that fuel charge to ensure fuel brought in is only used to generate power. We have to work aggressively to make sure these types of losses and theft are not occurring.”

Mr Heastie described the sole fuel theft investigation launched since he took charge at BPL as “still pending”. He added that The Bahamas’ archipelagic nature, with BPL having to ship fuel to generating plants on 17 islands,

added to the difficulty and complexity involved in managing fuel inventories such that losses were reduced to a bare minimum.

“I wouldn’t say we’ve tightened up,” he said. “We have a long ways to go to ensure we are trending properly with fuel. We have the very difficult task of moving fuel to these islands, and have to ensure there are checks and balances to make sure the fuel is only used for power generation.

“We have some work to do there. To say we have tightened up is not an accurate statement. Because of the number of islands

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PAGE 2, Tuesday, September 25, 2018

THE TRIBUNE

BFSB ELECTS NEW BOARD MEMBERS

‘Crystal clear’: Minister’s no to longline fishing FROM PAGE ONE

BFSB Board members for 2018. Pictured front row from left: Niekia Horton; Cheryl Bazard; Aneka Rolle-Beneby; Tiffany JonesWilliams; Keva Ingraham-McPhee; K Peter Turnquest, Deputy Prime Minister and minister of finance; Tanya McCartney; Fareda Sands; Kelli Ingraham; Paul Davis; Yolande Julien; Zelma Wilson; Latonia Symonette-Tinker; Antoinette Russell. Back Row from left: Michelle Neville-Clarke; Kevin Moree; Miles Culmer; Brian Jones; Gowon Bowe; Zelpha Davis; Laverne Thompson.

THE Bahamas Financial Services Board (BFSB) elected its board of directors for 2018-2019 at its recent 19th annual general meeting (AGM).

K Peter Turnquest, deputy prime minister and minister of finance, used his keynote address to update the financial services industry on The Bahamas’ progress in addressing the various international tax and regulatory initiatives it faces.

“As part of the extensive political advocacy undertaken to remove The Bahamas from the [European Union] blacklist, the Government of The Bahamas made a commitment to address and resolve the identified COCG (Code of Conduct Group) concerns by the December 31, 2018 deadline,” Mr Turnquest said.

“The Government of The Bahamas has engaged actively and constructively with European authorities with respect to the implementation of measures to address these concerns, in line with the country’s position as a fully cooperative jurisdiction.

“The ministry of finance has also engaged closely with the OECD through the Global Forum on Transparency and Exchange of Information for Tax

Purposes, the Inclusive Framework on BEPS and a specific voluntary group established to advance discussions on the issue of economic substance. This engagement is ongoing.”

Tanya McCartney, the BFSB’S chief executive and executive director, in her report to members provided updates on key priority areas for the board as it celebrates in 20th anniversary this year.

She advised attendees that BFSB has remained true to its mandate of promoting a greater awareness of The Bahamas’ strengths as an international financial centre (IFC). This, coupled with advocacy for the industry on policy matters, has dominated an agenda that focuses on three broad areas - promotion and marketing; international initiatives, policy and legislation; and stakeholder engagement.

Ms McCartney added that “admittedly, after The Bahamas’ listing by the EU, the focus of BFSB’S agenda became heavily policy dominated as it is imperative that we have a positive value proposition to articulate when we market internationally”.

The BFSB’s marketing initiatives for 2018 include: 1. Hosting a webinar for the Brazilian market on

September 25th 2. STEP Latin America, scheduled for October 3-5 in Mexico City 3. The London Landfall, scheduled for November 29 in partnership with global funds media 4. A visit to Switzerland where one-on-one meetings will be held with the Swiss banks and institutions that have a presence in The Bahamas 5. The New York Landfall, which will be held on January 16, 2019 BFSB’s new board of directors include: Anastacia Campbell, Graham, Thompson & Company; Michelle Neville-Clarke, Lennox Paton; Myles Culmer, BDO Advisory Services; Paul Davis, Higgs & Johnson; Zelpha Davis, Higgs & Johnson; Shameka Fernander, Old Fort Financial; Nerissa Greene, Halsbury Chambers; Niekia Horton, Lombard Odier & Cie; Brian Jones, Deltec Fund Services; Yolande Julien, Glinton, Sweeting & O’Brien; John Lawrence, Windermere Corporate Management; Keva Ingraham-McPhee, SIS Solutions; Kevin Moree, McKinney Bancroft & Hughes; Antoinette Russell, Credit Suisse Trust; Fareda Sands, Acetop Global Markets; Andre Souza, Arbitral

Securities; Laverne Thompson, MMG Bank & Trust; Tiffany Jones-Williams, FC Capital; Zelma Wilson, EY; Joneka Wright, The Winterbotham Trust Company.

Representatives for their respective professional industry associations are: Ivan Hooper, Association of International Banks & Trust Companies (AIBT); Cheryl Bazard, Bahamas Association of Compliance Officers (BACO); Kelli Ingraham, the Bahamas Bar Association; Emmanuel Komolafe, Bahamas Insurance Association (BIA); Gowon Bowe, Bahamas Institute of Chartered Accountants (BICA) and the Clearing Banks Association; Anthony Stubbs, Bahamas Investment and Securities Business Association; Christine Wallace-Whitfield, Bahamas Real Estate Association (BREA); Cherise Cox-Nottage, Chartered Institute of Arbitrators; Aneka RolleBowe, CFA Society of the Bahamas; Cecil Ferguson, Society of Trust and Estate Practitioners; and Igal Wizman, Restructuring and Insolvency Specialists Association.

Ms McCartney and Latonia Symonette-Tinker, consultant to the Ministry of Financial Services, serve as permanent directors.

that allowed longline fishing.

This is the use of hook and line gear that can have thousands of baited hooks on lines which extend many kilometres from the vessel.

Longlines can be used to fish Pelagics near the surface using floats, or near the bottom using weights, depending upon the targeted species.

The BNT statement, which appeared to be a response to Mr Pintard’s previous statement that his ministry and the Department of Marine Resources (DMR) were exploring the expansion of commercial fishing to species such as tuna, warned that long line fishing had devastated stocks around the globe.

“The BNT is aware that many pelagic species are already being fished daily in Bahamian waters and has not taken a position opposing Bahamian fishermen targeting these fish,” the statement read.

“What the BNT has raised with the Minister and DMR officials are concerns regarding the use of unsustainable and destructive methods. The BNT is aware that there are persons advocating for the amendment

of Bahamas fishery legislation to allow for longline fishing. This practice is known around the world to have devastating effects on marine resources.

The statement continued: “The BNT would not necessarily stand in opposition to commercial fishermen exploring the feasibility of developing sustainable pelagic fisheries, but we are emphatically opposed to the establishment of a long-line fishery within the Bahamian Economic Exclusive Zone.”

Mr Pintard yesterday reiterated that the Government is open to discussions with all relevant stakeholders on which pelagic fisheries may be harvested in a sustainable manner.

“We want consultation with stakeholders and see what the science dictates.

The issue of long line fishing doesn’t even arise as no such plans have been articulated or even considered.

We want to look at a variety of pelagic species and give consideration to their economic viability. That, however, will not be without looking at sustainability,” said Mr Pintard, adding that the Government has been firm with respect to unsustainable practices by both Bahamians and foreigners.

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THE TRIBUNE

Tuesday, September 25, 2018, PAGE 3

BPL: ‘Long way to go’ in fighting fuel losses FROM PAGE ONE involved; 17 islands, we have to work out where we want to be in terms of fuel.”

Mr Heastie was speaking after consultations over BPL’s draft consumer protection plan raised fuel theft and wastage as a major concern. Pericles Maillis, the well-known attorney and environmental activist, detailed numerous incidents that had affected his property in the Adelaide Village/ Albany area - including one theft that was only exposed by the thief becoming distracted when having sex in his truck.

Revealing that he had the pictures to prove it, Mr Maillis told the Town Meeting: “The people had actually dug under the road, put in a valve, run a pipe out to the edge of the bush, then run another pipe out to the back. The truck would go out to the back (and) fill up when it wanted.

“According to the New Providence Development Company security guard, it only came to light by accident because the same thief who was stealing the diesel was having sex with a girl in the truck while the truck

‘Tech hub’ booster expands to Nassau FROM PAGE ONE

centre, an artificial intelligence centre, as well as a global training centre.

“I think that will employ a lot of people, and will really establish Freeport, in particular, and The Bahamas in general, as a tech hub. I think it’s going to attract a lot of innovators because

was being loaded, and it started pouring all over the ground. That is how it came to light.

“That is diesel going and going all that time, and we don’t know how long it was going, and we the public are paying for the fuel surcharge. So that one got sealed off with concrete.”

Mr Maillis said such theft was increasing the cost, and amount, of fuel BPL has to purchase to generate electricity at its Clifton Pier and Blue Hills plants. These costs, he argued, were likely being passed on to Bahamian consumers through higher electricity bills.

“While you have been putting up the fuel surcharge, there has been tremendous wastage and stealing of BEC (Bahamas Electricity Corporation) fuel,” Mr Maillis blasted at the Town Meeting.

He described how he, his family and the Bahamian people “are in a state of terror” over the rising costs of BPL’s service, adding: “I don’t believe that our prosperity is going to be sustainable.

“Electricity cost has wrecked the hotel, the chicken farm [Gladstone

Farms]. I’ve watched it ruin small restaurants. As a lawyer I hear and see it all, including very close to me. I would hope that, at the end of the day, the main focus of BPL and URCA and government would be to work, strive to get the cost of electricity and these prices down. The real terror is the fuel surcharge.”

Mr Heastie, meanwhile, yesterday said he and BPL “take no exception” to improvements mandated by regulators in its consumer protection plan. He added that the company shared the Utilities Regulation and Competition Authority’s (URCA) goal for it to become a “best in class” energy provider.

URCA, as reported by Tribune Business, had ordered BPL to improve a consumer protection plan it deemed deficient by including “best practice” reliability standards and improved consumer dispute processes.

In a decision BPL must comply with or face a fine up to ten percent of “relevant turnover”, URCA identified nine areas where its consumer protection plan remained deficient

despite revisions that were submitted to the regulator in January 2018.

Mr Heastie told Tribune Business there “are no surprises here” with what URCA is requiring, although he said BPL’s multiple issues raised questions about “how quickly” it could achieve the regulator’s targeted standards for service quality and reliability.

“I think what URCA is trying to achieve is international standard,” he said. “We are certainly in agreement that we need to become up to international standard. We have no issue with any of that.

“What they’re trying to accomplish is move us forward to best utility practices. We would certainly want to to comply to bring us into line with best utility standards. We take no exceptions to anything there.

“All URCA is trying to do is move the utility forward to what is best practice, and we definitely want to be there to change the customer experience.”

URCA found that BPL’s revised consumer protection plan did not include

standards or benchmarks to measure its quality and reliability of service, even though this had been requested by the regulator.

URCA also found BPL guilty of “not providing a detailed process” for how consumer complaints will be resolved, describing its consumer protection plan as seemingly “arbitrary” and “confusing” on this issue. There was also no timeframe provided for addressing billing disputes.

And, while branding BPL’s revisions to its “overall standards” as “acceptable for the moment”, URCA then warned: “URCA considers that BPL needs to work on improving the proposed target for responding to emergencies (24 hours) and for responding to voltage complaints (visit within two days).

“URCA finds these targets compare poorly with other Caribbean utilities’ response times. For example, in Jamaica the target for responding to emergencies is 12 hours, while visits to households with voltage complaints are carried out within 24 hours after the complaint is lodged.”

URCA is also encouraging BPL to shorten the timeframe for reconnection, following a “wrongful disconnection”, to “no more than six hours” rather than the eight hours included in its consumer protection plan on the grounds this would match other Caribbean nations.

Mr Heastie said the two-hour difference was something BPL ought to be able to bridge once it obtained a “better understanding” of URCA’s concerns.

“Given all the things we’re being asked to do, how quickly can we transform the company to get there,” he asked. “The first thing for us is trying to provide a reliable service, and once we get there we look at things beyond reliability; maybe pockets of customers not getting the service they desire.

“URCA’s job is really to move the utility forward, not only in terms of reliability and the frequency and duration of outages. but how to deal with customer complaints and doing so in a timely fashion. I think it’s all fair.”

they will want to come here $50m economic impact by and work with other people 2020. who are doing things that Mr Wood yesterday are cutting edge. Overall, I described his reception as think it’s going to be a great an investor in The Bahathing for The Bahamas.” mas as “outstanding”. “I GIBC Digital, which think there has probably is headquartered in New been more demand than York, also has offices expected for our services,” in Boston, Stamford, he added. “The reception Tampa, London, Hong by the people has been pheKong and Singapore. The nomenal. They have really company markets itself as welcomed us and that’s been a “digital transformation quite helpful. facilitator” with expertise “There is a great infrain data intelligence, cyber structure here. You have security, customer experi- a government actively ence, process engineering trying to encourage invesand automation, as well as tors to come here, and the regulation and compliance. country’s proximity to the In announcing its entrance US is another benefit. We to Freeport earlier this year, think we can outsource GIBC Digital unveiled some technology work ambitions to triple its ini- that would normally go to tial Freeport workforce to India and bring that here.

150 staff within three years, We have found that the pledging to have an annual people are really hungry

for opportunities and they want to be empowered to be a part of the global digital community.”

GIBC Digital was “among the first companies” to apply for, and be approved, under the Government’s new Commercial Enterprises Act, which aims to smooth the path for investment in targeted industries by easing Immigration bureaucracy and “red tape”.

The Act allows approved companies to send key personnel to The Bahamas, and establish operations, without first being in possession of valid work permits. Such permits must be applied for within 30 days of these executives’ arrival in The Bahamas and, should no reply be received from the director of Immigration within 14 days, the permits

are automatically deemed to have been granted.

The Act, together with the Grand Bahama “technology hub” initiative, are major components in the Government’s plan to restructure and reposition the Bahamian economy by diversifying away from its reliance on tourism and financial services.

With liberalisation/deregulation, and full World Trade Organisation (WTO) membership, other important elements, the Minnis administration is focusing on attracting knowledgebased industries with the potential to be major foreign exchange earners and creators of high-paying jobs.

GIBC Digital was founded by Mr Wood in 2011 as an enterprise focused on the provision of

operational and information technology (IT) strategy, with a focus on regulatorydriven change. As client demands changed, its business model has evolved into a focus on other sectors, including cyber security and fraud prevention, plus data intelligence.

The company’s website describes it as “having more than 35 people around the world”, indicating that the Freeport expansion may double the existing workforce. Clients are said to have included many of the world’s major financial institutions, including Citibank, JP Morgan, HSBC, UBS, Credit Suisse, Barclays, Deutsche Bank and AIG. Former high-ranking UBS and Citigroup staffers are said to be among its executives.

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CAREER OPPORTUNITIES TECHNICAL / SERVICE MANAGER GENERAL INSURANCE

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Reporting directly to the Head of General Insurance and Managing Director, the successful applicant will be responsible for full integration of the Group’s technical underwriting and business development philosophy and culture, transfer of knowledge with respect to certain lines of business and facilitating a closer integration of the Group’s operational resources on underwriting and business production matters.

Reporting directly to the Senior Vice President – Group Insurance Services, the successful applicant will be responsible for the day-to-day management of the underwriting unit including but not limited to:

REQUIREMENTS • ACII or equivalent; • 15 years’ experience in the insurance industry (Property, Casualty, Motor, Marine and Financial Lines); • Excellent working knowledge of reinsurance treaties, coverage, exclusions and reporting requirements; • Good working knowledge of Microsoft Word, Excel and Outlook; • Positive attitude and excellent verbal and written communication skills; • Must be a team player with strong work ethics; • Strong multi-tasking and organizational skills;

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Evaluation and pricing of group life and health prospects Managing retention of existing books of business All forms of interaction with Brokers, Customers and Service Providers Staff management, training and development, and performance evaluations

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Cayman First is a leader in insurance in the Cayman Islands, and is part of the Bahamas First Group. The Company has been serving the Cayman Islands for over 30 years, and offers a full range of General and Health insurance products directly to the public and through broker intermediaries. Both the Company and the Group carry “A-” Excellent ratings from A.M Best.

Compensation commensurate with relevant experience and qualifications.

Applicants must be willing to relocate to The Cayman Islands Please submit applications to careers@caymanfirst.com Application Deadline October 5, 2018

PAGE 4, Tuesday, September 25, 2018

THE TRIBUNE

‘ONEROUS’ LAW NO EXCUSE FOR GOVT

FROM PAGE ONE

works; and Adelma Roach, the Ministry of Works’ legal counsel.

“The former administration had looked at certain amendments to the Act, but we believe there has to be a comprehensive plan for doing so,” Mr Bannister said.

“All these people are looking at these very critical issue, which has to be addressed comprehensively.

“The judge’s ruling gives us a deadline we have to effect it [New Providence’s Land Use Plan] by. We have to obey the law, we have to obey the ruling of the court, and are going to do our best to do so.”

Justice Bain’s ruling, which came in one of the multiple legal battles involving Nygard Cay, has major implications for all land and real estate-related development on New Providence. It potentially impacts all developers and their financiers,

plus related professions - attorneys, realtors and contractors being the prime ones.

For she ordered the Government to comply with its own law by preparing a Land Use Plan for New Providence, and setting a deadline of July 1 next year for it to be approved. Land Use Plans are a critical element of the Planning and Subdivisions Act, as it sets out “land to be protected from development”.

Land Use Plans are supposed to designate areas identified for residential, commercial, industrial and other purposes, while also segregating areas that should not be developed. The Act also mandates significant public consultation before any Plan is approved.

Fred Smith QC, the Callenders & Co attorney and partner, hailed Justice Bain’s ruling on the basis that it will stop the Government and developers from treating The

Bahamas’ key planning law as “an inconvenient truth” and simply ignoring it.

“It brings the rule of law and regulated development in a real way to The Bahamas,” he argued of the Act and the verdict’s implications. “It’s a very good piece of legislation; one which developers and the executive don’t like because it shackles them to process, thereby depriving both sides of secrecy.

“It would bring transparency. It would bring due process. It would bring protection to environmental issues. It would ensure proper consultation with third parties, and be part of a Land Use Plan governing everybody’s prospective development and investment.”

Developers, though, have been calling for changes to the Planning and Subdivisions Act for years on the grounds that its provisions are too onerous and the

Government lacks the necessary resources to properly implement it.

Sir Franklyn Wilson, Arawak Homes’ chairman, in a 2014 interview with Tribune Business urged the Government to fix the Act “sooner rather than later” otherwise all development projects would become bogged down in “never ending Judicial Review” actions.

He argued that the Government “absolutely cannot” enforce and implement the statutory processes in the Planning and Subdivisions Act 2010 due to a lack of expertise, resources and manpower.

Acknowledging developers’ concerns, Mr Bannister told Tribune Business yesterday that the Government could not use the Act’s “onerous” provisions as an excuse for its failure to follow and uphold a law passed by Parliament.

“We believe there are

many provisions in the Act that are unrealistic and have to be considered for amendment,” he said. “The committee is looking at them and is going to make their first report to me in early November.

“While it is onerous for these reasons, that is not an excuse we can use for not complying with the law.

There are two things we are looking at. We’re looking at the law to see how we can comply, we’re looking at amending the law where there are challenges, and we looking at staffing issues to be able to ensure that staff at the Ministry of Public Works are able to fulfill the mandate the law requires whatever the law may be.”

Mr Bannister said the Department of Physical Planning, the Government’s main planning agency, was “clearly under-staffed” and struggling to attract the necessary skills to enable it to properly enforce the Act.

“If you look at the organisational chart, there are more posts vacant than filled,” he told Tribune Business.

“Many of these posts require specialist skills, and the salaries paid for these posts are not commensurate with the skills required.

“We’re looking at the organisational chart to see how we deal with that and staff issues. It’s a challenge because through the years the investment that ought to have been made in the Department of Physical Planning has not been made.”

Despite these challenges, Mr Bannister reiterated: “I intend to comply with the law and the judge’s ruling, and we’re going to our best to ensure we’re in compliance. It’s caused us to focus in a way we have not focused before. It’s going to take quite a lot to do what we have to do, but it’s certainly going to cause us to improve the way we do things.”

Arawak port operator to ‘save every penny’ FROM PAGE ONE 2017, although continued Bahamian demand for used vehicles saw import levels in this category grow 4.3 percent year-over-year.

With revenues for the 2018 financial year down by just over $1m, or 3.1 percent, Mr Bethell said APD’s cost management focus had resulted in it electing to pay-off its $3mplus Royal Bank of Canada (RBC) loan early to save around $100,000 in debt servicing (interest) costs.

And, while he and Mr Maura both forecast a 2019 financial performance that will be flat compared to last year on revenue and profits, APD has gently increased staff numbers in preparation for what both believe will be improved economic growth thereafter.

“We were just about $350,000 over what we budgeted in terms of net earnings,” Mr Bethell told Tribune Business of the 2018 financial performance. “While we had been slightly under-budget in our volumes, we concentrated on reduced costs to right-size given the circumstances we found ourselves in.

“We had to tighten our belt to manage costs as best we could, notwithstanding utility costs were relatively high.

We’re looking at the entire operation closely to make sure we save every penny where we can.”

APD’s total costs jumped by 9.6 percent or just over $1.5m year-over-year, with the major increases coming in the categories of employee salaries/benefits; utilities; and maintenance.

Mr Bethell explained that staffing costs rose as a result of increased hiring, as APD expanded its workforce back to “slightly over 100 employees” - a number consistent with 2015 levels - ahead of an anticipated economic rebound post-2019.

“We are expecting a rebound in our economy, and this is just in preparation for an expansion in the economy in the years ahead,” he added, explaining that the $350,000 year-over-year spike in employee costs also related to increased participation in APD’s health insurance and company pension programmes.

Mr Maura, meanwhile, said maintenance associated with the “overhaul” of APD’s cranes added another $300,000 in extra costs during the company’s 2018 financial year. Utilities expenses also rose, by 34 percent to $1.153m, which Mr Bethell attributed to one-off “water

leaks” that will not recur and APD having to increasingly burn fuel to run its generators amid BPL outages.

He added that the benefits from installation of energysaving LED lights and solar panels were expected to materialise during APD’s current financial year, reversing the rise in utilities costs.

As for APD’s income streams, Mr Maura told Tribune Business: “Our TEU volumes were down 5.5 percent against prior year. We continue to see a positive trend on vehicle imports, which climbed 4.3 percent but, again, because we experienced a relatively soft construction sector we saw dry bulk aggregate volumes falling by 17 percent.”

The APD chief executive added that the TEU dropoff translated into a 3,879 container “shortfall” yearover-year, but vehicle imports were up by 732 at around the 17,600 mark.

Mr Bethel said the shipping companies using the Nassau Container Port had become much more efficient in “turning” and managing their empty containers, leaving fewer on Arawak Cay and for shorter periods. As a result, APD’s storage income stream came in “$450,000 under” during the 2018 financial year.

The APD financial chief then revealed that, following the 2018 year-end, the port operator elected to payoff the RBC loan - due for repayment at the close of the calendar year - some six months early to reduce interest costs.

“We had a long-term debt with RBC and, post yearend, paid the principal,” Mr Bethell said. “That was $3m and change paid on July 1, and it’s to better manage our financing costs. We paid off RBC given that we had the cash to manage the financing costs. We probably saved around $100,000 by paying that off early.”

That has been replaced by a $3m Inter-American Development Bank (IDB) loan to finance APD’s installation of energy efficient lighting and renewable energy systems, some $1.5m or 50 percent of which has now been drawn down.

Looking ahead to the current financial year, Mr Bethell said APD expected container throughput volumes and revenues to be flat against 2018. He added that a slight increase in “anticipated” vehicle imports was anticipated to be offset by increased costs associated with cost of living rises.

Mr Maura said APD’s

“conservative budget” had also been influenced by the VAT rate increase to 12 percent, with a number of businesses - including major importers - informing the port that trading conditions had been slow since the hike’s introduction.

And, while construction activities were ongoing at The Pointe, Albany and Atlantis’s renovations, with Sterling’s Hurricane Hole redevelopment yet to start, Mr Maura said there was nothing in the immediate term to replace

the scale of Baha Mar’s completion.

He suggested the “two big projects” on the drawing board for New Providence are Shell North America’s proposed power plant at Clifton Pier and the redevelopment of Nassau’s cruise port at Prince George Wharf, neither of which may come to fruition this financial year.

“Once these projects get going we will see some benefits from those, but I don’t expect that to happen this financial year,” Mr Maura said.

NOTICE Notice is hereby given that JUNIOR LAGUERRE of Lewis Yard, Freeport, Grand Bahama, 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 18th September, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147, Nassau, The Bahamas.

MARKET REPORT MONDAY, 24 SEPTEMBER 2018

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

BISX ALL SHARE INDEX: CLOSE 1,951.84 | CHG 3.92 | %CHG 0.20 | YTD -111.73 | YTD% -5.41 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

PREFERENCE SHARES 1050.00 1000.00 1000.00 1000.00

1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01

1000.00 1000.00 1000.00 1000.00

1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00

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 Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Fidelity Bank Class A Focol Class B

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

E J K L M N

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

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 4.46 1.00 0.19 2.30 9.22 6.15 3.60 12.42 2.92 1.75 7.64 6.21 13.06 6.34 3.65 13.01

CLOSE 4.01 17.43 9.09 4.46 1.01 0.19 2.30 9.22 6.15 3.63 12.42 2.89 1.75 7.61 6.21 13.06 6.34 3.65 13.01

CHANGE 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.00 0.00 0.03 0.00 -0.03 0.00 -0.03 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

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

107.56 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

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 230 1,000 10,014 3,462 25,840

33

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 23.6 19.8 28.3 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% 3.31% 4.99% 2.08% 4.00% 1.10% 4.51% 3.83% 3.15% 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

0.000 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

Major firm in the financial and legal services industry invites applicants for the function of:

Corporate Administrator

Successful candidate will: •

•

have responsibility for preparation of incorporation documentation, filings with the Registrar of Companies, maintaining corporate records, preparation of directors and shareholders’ resolutions and other related documentation prepare all post incorporation documentation: o Minutes, Notices, share transfers and share certificates, bank opening forms, etc. o updating and maintaining the corporate system in relation to companies to which the firm provides registered offices o general secretarial duties

Good typing and organization skills required.

Ability to work independently is essential. Proficiency in Microsoft Office Suite is required. Minimum 3 years’ experience preferred.

Salary commensurate with experience and qualifications Only short-listed applicants will be contacted Reply in confidence to:

corpvacancy@gmail.com