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WEDNESDAY, SEPTEMBER 29, 2021
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Miller attorneys ‘agree’ $10m verdict overturn By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net ATTORNEYS for an exCabinet minister last night said they agreed to the overturning of a near-$10m damages award against the Government because both sides are now in settlement talks. Damian Gomez QC, himself a former minister of state for legal affairs, told Tribune Business he and Leslie Miller were “optimistic” they could negotiate an out-of-court resolution with the Government over its alleged breach of multiple lease agreements for public sector agencies to rent space in his client’s Summerwinds Plaza complex.
• ‘Allow’ Court of Appeal to rescind damages • As in settlement negotiations with the Gov’t • Outcome of talks to ‘affect’ BOB and Resolve Justice Cheryl GrantThompson had originally awarded Mr Miller and his companies $9.846m in damages against the Attorney General and Treasurer for breach of contract, but the Court of Appeal on Monday allowed the appeal by the Government defendants and ordered that the case be sent
LESLIE MILLER.
DAMIAN GOMEZ QC.
back to the Supreme Court for a hearing before a different judge. However, Mr Gomez told this newspaper he had agreed with the Government’s attorneys to allow the appeal to succeed because both parties are in negotiations to settle the matter without the need for further legal action. “We agreed to that because we’re in settlement talks right now with the Government,” Mr Gomez explained. Asked how
confident he was that these talks will result in resolution, he replied: “We are optimistic. We’re in settlement talks, and I cannot say any more than that. We are in silence mode.” Mr Gomez declined to go into further detail due to the sensitive nature of the negotiations, and the confidentiality that surrounds them, other than to say the outcome will impact Bank of The Bahamas and its Bahamas Resolve bail-out vehicle which are also parties in the case and/or affected by it. “It affects everybody,” he added of the talks,”but it’s really the Government. Once we’ve agreed that, it affects everybody else. I agreed to it [allowing the appeal] because we’d already spoken to the Government and entered into discussions. We were trying to save on legal costs.” Mr Gomez did not confirm when settlement discussions began. Mr Miller was an ever-present for the Progressive Liberal Party (PLP) on the recent general election campaign trail, appearing in photos alongside multiple New Providence MP candidates as they conducted door-to-door canvassing in the run-up to September 16. The former minister of state for legal affairs spoke after Tribune Business was informed that Justice
• But 133% yearover-year jump based on just 77 sales By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas was yesterday said to have exceeded last year’s electric vehicle sales in the first nine months of 2021, having produced the world’s eighth largest yearover-year increase during COVID-19’s peak. John Bain, managing partner at UHY Bain & Associates, the Bahamian affiliate in the global accounting network that analysed 2020 electric vehicle sales worldwide, told Tribune Business that local market performance had continued to build upon last year’s 133 percent upswing. UHY’s research showed The Bahamas JOHN BAIN enjoyed the eighth largest year-over-year electric vehicle sales increase in the world, bettered only by Vietnam, the global leader, and the likes of Italy, Germany, the UK, Israel, France and Denmark. While acknowledging that The Bahamas was starting from small beginnings, given that just 77 electric vehicles were sold in this nation during 2020 compared to 33 the year before, Mr Bain said momentum had continued to build in the local market throughout 2021.
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Cruise port chief: Extend tourism’s ‘peace of mind’ • ‘Prudent’ to push fully-vaccinated mandate beyond Nov 1 • Says Gov’t must act quickly given industry’s booking cycle • Praises measure as ‘disease mitigator’ on ship and shore By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
book an additional $6.316m in the 2020 financial year. As a result, Bank of The Bahamas swung from a $7.303m net loss the prior year to a $6.419 net profit. “Net credit loss expenses of $7.5m were recorded year-todate compared to $15.3m during the same period of the prior fiscal year, a 51 percent positive variance,” Mr Brathwaite added KENRICK in his message to BRATHWAITE shareholders. “Reversals of provisions for impairment of $5.3m were also recorded during the current year, compared to impairment losses of $6.3m in the prior year, as the expected credit loss estimates and assumptions used on its sovereign and corporate exposures
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Bahamas in BOB targeting ‘real growth, world’s eighth not loan loss management’ largest electric car sale rise BANK of The Bahamas yesterday said it was seeking to drive sustained profitability “from real growth as opposed to managing delinquency provisions” after enjoying a positive $14m bottom line swing. Kenrick Brathwaite, the BISX-listed institution’s managing director, told Tribune Business it had not predicted $6.419m in net income for the financial year to end-June 2021 because it had not anticipated being able to write-back “aggressive” loan loss provisioning taken the prior year. The BISX-listed institution’s performance for the 12-month period was driven almost entirely by reduced loan loss provisions, which fell by 51.4 percent year-over-year from $15.348m to $7.456m. And it received a further boost from being able to reverse some $5.341m worth of previous loan loss impairments after being forced to
NASSAU CRUISE PORT
NASSAU Cruise Port’s chief executive yesterday urged the Government to swiftly extend a cruise passenger COVID-19 vaccination mandate that has brought “peace of mind” to the tourism industry. Michael Maura told Tribune Business it would be “prudent” for the Davis administration to extend the requirement that all passengers aged 12 years and older be fully vaccinated before they embark on a cruise beyond its November 1, 2021, expiration. Arguing that it served as a COVID-19 “mitigator” both on board ships and when passengers are ashore in The Bahamas, he added that time was running out to extend the measure - either via the existing Emergency Orders or some other mechanism - given that there are less than five weeks before it ends. Mr Maura said the urgency to do this was made more pressing by the cruise industry booking cycle, with passengers typically selecting their trips a month in advance, as The Bahamas could not risk causing any sudden last-minute shocks for visitors via a sudden change in health protocols. “This new administration will have to look at extending it or simply adopting something similar to what the US has done,” the Nassau Cruise Port chief said, referring to the Biden administration’s requirement that all adult travellers to the US be fully vaccinated come November. “I think it’s prudent for the administration to extend it. Five weeks is not a long time when you’re dealing with an industry that purchases voyages a month in advance. We don’t want to be surprising customers or passengers a few days before they arrive with new protocols. It’s best to extend
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By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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‘Critical data’: Health travel visa to remain By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE deputy prime minister yesterday said the health travel visa will stay for international travellers as it is producing “data critical to the development and advancement of tourism”. Chester Cooper, speaking before the weekly Cabinet meeting, confirmed that the newly-elected Davis administration will retain the health travel visa for international travel despite pledging to abolish it during the election campaign. It is being eliminated for inter-island travel, while the fees levied on unvaccinated Bahamians and
residents returning home have also been ended. Mr Cooper said: “We’ve made some changes to the travel visa process as you are aware. We’ve streamlined the process with inter-island travel. We are eliminating the fees on the international travel for Bahamians. “At the moment, we are retaining the travel visa for international persons coming to The Bahamas. We are reviewing, and we are going to streamline the processes, as best as possible. The data being received on the international side is critical to the development and advancement of tourism. I anticipate that that will remain for some time.”
Mr Cooper is thus preserving what was left in place by his predecessor, Dionisio D’Aguilar. Although he did not specify the “data” he is referring to, it is likely the home addresses, contact details and other information provided by international travellers
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MUCH RIDES ON ‘NEW DAY’S’ AUTHENTICITY A
LISTENER to a recent radio show texted in to ask: “Can there be a new day without new thinking?” The easy response I gave was “No”. Anyone who truly understands the gravity of the issues faced by The Bahamas, and has taken time to consider them within an accurate and objective historical context, must accept it is beyond time for a “new day”. While this was the Progressive Liberal Party’s (PLP) election slogan, what exactly does this mean? For sure, as the listener suggested, a new day can only be the result of new thinking that comes from a mind-shift. It is my view that, beyond the catchy marketing slogan for the purposes of selling an election value proposition, this is what a “new day” must mean. Now may be The Bahamas’ last chance to start getting it right. However, if the interpretation of “a new day’’ is not consistent with the above thinking, its potency will be lost and the opportunities to create the reforms needed will be missed. For The Bahamas to progress it needs leadership that is transformational, causing change in individuals and systems, while also being resilient. This requires aligning vision and purpose; managing self through uncertainty; building awareness and anticipation; overcoming challenges with tenacity; and adopting a growth mindset.
Herbert Edwards Before the election, I discussed on radio a number of points that I think capture my proposition here. I will describe some, even though a few may have lost currency. The first point was the appointment of a minority Cabinet, thus leaving the House of Assembly with sufficient backbenchers to enable the legislature to check the executive. This did not happen. The Prime Minister justified a large Cabinet via what he described as the amount of “heavy lifting” required. It is an unfortunate but nonfatal outturn. It is permitted under the constitution, and a careful analysis of the demographic of the candidates, the large landslide, the mix of senior politicians and career-sacrificing young professionals who won, suggests there was very little room to do much else, which would make political sense. However, when considered through
the lens of constitutional scholarship, it grates painfully on the Westminster conventions and places tension on the principle of separation of powers. It is now for the Prime Minister, recognising this, to ensure he exerts effective leadership, with accountability and transparency acting as a counterbalance to his large Cabinet. Discipline must be the hallmark of his leadership, demanding high performance and productivity, and showing a willingness to speedily hold all persons accountable. Those who may wish to operate outside the confines of acceptable standards should be extremely uncomfortable under his watch. My next call was to select Cabinet ministers based on experience and best fit. There are certainly a few selections that I think we have to take a ‘wait and see’ approach on, but overall I believe the choices were good. Persons have largely been placed in the most suitable positions. Not only are the placements generally good, but there is also the restructuring of a number of ministries with the obvious goal of broadening their focus. This, I believe, can deliver positive results. Two such ministries are Tourism, Investments and Aviation, and Economic Affairs. These moves hold important strategic value and, with effective execution, the country should benefit. The opportunity to be transformative should see
a willingness to step outside party lines. Selections to the Senate, corporation Boards and committees should be done with the view of leaving yesterday behind and truly ushering in a new day. The opportunity to secure “independent” senators should be effected in earnest. Find individuals who are willing to sensibly challenge and ask questions, and help refine ideas, but do so in the best interests of the country, resisting temptations of grandstanding and non-productive personal or partisan bias. Transformational moves will demand starting governance with an honest and open discussion with the nation, minus the usual political finger-pointing. The Prime Minister’s speeches so far have been very encouraging, but that big conversation is understandably yet to come - the one which will tell the nation exactly where it stands on a multiple issues, most especially the economic ones. A “new day” will signal an overt push for greater inclusiveness, making decisions that are politically risky but in the national interest, and arguing for a system of meritocracy where more individuals believe that with a dream, an idea and hard work they can thrive. I believe that despite any statements made within the context of a competitive election process, the leaders must now cast (or recast) a broad vision for The Bahamas, covering at high levels every aspect of
society and industry. Part of the vision must include the commitment to break any stranglehold that interest groups may have on the economy so that every Bahamian has a fair, equal and equitable chance for creating and growing personal wealth. To be transformative, the leadership must think differently with an eye on the future. Jim Collins writes about the ‘Level 5 leaders’ who “display a powerful mixture of personal humility and indomitable will. They’re incredibly ambitious, but their ambition is first and foremost for the cause, for the organisation and its purpose, not themselves”. Could it be that we have the makings or unveiling of such leaders at this moment? ‘Level 5 leadership’ for The Bahamas will be demonstrated by a revolutionary era of transparency and accountability, and consistently making decisions that will stand up to extreme scrutiny. There must be a demonstration of willingness to “sacrifice” political careers for the well-being of The Bahamas and its citizens. A mindshift leading to a new day will demand a willingness to show a high level of public vulnerability. When we get it wrong, we must be willing to admit and ask for forgiveness,. Giving true meaning to “a new day”, leadership will demonstrate an acute awareness of the need to help realign society’s thinking in many aspects of national life, advocate for
aggressive growth, and push strategies that will lead to significant improvements in how the economy works and broaden the means by which growth can be secured. The leadership will show evidence of radical thinking, eschewing unproductive status quo realities, and attract advisors who cause discomfort, testing ideas and courageously challenging positions. Those who lead the charge must actively embrace divergent views while showing goodwill toward those with whom they disagree. Ultimately, without an evident and fundamental cultural shift in “how we do what we do”, there is no mind-shift and tomorrow will then be the same as yesterday. The PLP’s Blueprint for Change, and its well-documented policy positions and programmes, together with the early commitments of its leaders, set the stage for progress. From the Prime Minister’s inaugural speech at the United Nations (UN), there is evidence of his willingness to single out the big issues and take risks, even geopolitically. Dr Hubert Minnis’ statement makes it reasonable to expect that the administration’s feet will be held firmly to fire. Finally, taking into account the expectations created by the electorate in selecting a new administration, the prospect for a truly “new day” in The Bahamas is heightened with the fate of country highly dependent on its authenticity.
STERLING NAMES MANAGER FOR PI MEGA YACHT MARINA
STERLING HURRICANE HOLE SUPERYACHT MARINA AT PARADISE LANDING, PARADISE ISLAND.
DEMARO DEMERITTE BAHAMIAN Demaro Demeritte has been named as general manager of Sterling Hurricane Hole Superyacht Marina, based at Paradise Landing, Paradise Island. Sterling Global Financial, the Hurricane Hole developer, described Mr Demeritte, 40, as a veteran marina manager with degrees in electrical engineering and office management. “We are excited to announce the appointment of Demaro Demeritte, who will be responsible for the overall management of what will be the most exclusive marina in The Bahamas and the Caribbean. For nearly a decade, Demaro headed up a marina that consistently ranked as number one in customer satisfaction for The Bahamas,” said Khaalis Rolle, president of Sterling Global Advisory Services. “He has the talent and expertise to manage a substantial entity, and the personality to be a people pleaser, an important trait that cannot be overstated when dealing every day with owners and captains of luxury yachts. He’s a great addition to the team.” Construction of the totally revamped Hurricane Hole Superyacht Marina is nearly complete, transforming the location into a centerpiece destination on Paradise Island. Paradise Landing will include luxury marina front residences; restaurants for fine and casual dining; a wine and liquor store with dockside delivery; beauty salon; dry cleaner; professional office suites; and a gourmet grocery store.
Mr Demeritte added: “When I look at the team, when I look at what Sterling stands for, I feel like I was drafted to an all-star team. The company empowers Bahamians, cultivating leaders who I have the privilege to work with.” The new marina will feature slips up to 420 feet in length and include both floating and fixed docks, a 240-foot turning basin, full-service harbourmaster’s office, in-dock fuelling, Customs and Immigration services, 24-hour security and mobile pump-out services. “The Sterling Paradise Landing project, which includes a new Hurricane Hole Marina, was designed around a casual luxury lifestyle,” said Celeste Christie, its marketing manager. “At just 120 steps from the world-renowned Atlantis resort, owners have immediate access to the resort’s 40 restaurants and lounges, luxury shopping, water park and casino. “They’ll also enjoy stateof-the-art fitness facilities, swimming pools, a crew lounge, private meeting spaces and charter management services. Separate pool, lounge and gym facilities dedicated to yacht captains and crew add to the property’s unique appeal.” Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, is set to tour Paradise Landing at Hurricane Hole on October 1 together with a team from the Ministry of Tourism, including director-general, Joy Jibrilu.
DATE-LED DECISIONS VITAL OVER DISASTER RECOVERY By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net BAHAMIANS must employ data-driven decisions to understand how they fit into their own “piece of the pie” when it comes to disaster recovery, an environmental engineer urged yesterday. Carlos Palacious, managing director of BRON Ltd, a subsidiary of Caribbean Coastal Services, told a webinar held to mark World Tourism Day that Bahamians must harness knowledge on how the country “models for climate change adaption”, understand the impact of
cruise ports and “raising” different areas to build infrastructure, and how all this “fits together when we make decisions”. Disclosing that BRON is now building capacity in areas such as hurricane wind adaption, he added: “We can understand when those winds are coming in the next Dorian, because it’s not a matter of if; it’s a matter of when. “How can we better prepare our underground utilities so that, when the surges come, recovery, disconnection and reconnection of certain areas can be more effective. We have to understand how we all fit in the piece of the pie.
“And when you take the slices of the pie and you bring us together, we have the most beautiful meal ever, because the Bahamas is the tourism capital of the Caribbean and there is no reason why we can’t continue to be an example.” Dr Charles Diggiss, Doctors Hospital’s president and majority shareholder, added: “The experience of COVID-19 continues to show us that we remain vulnerable to negative global events, which create a message and the perception that it is unsafe to come to the Bahamas. “This vulnerability makes it even more important that we pay particular attention to, and invest resources
CABLE CHIEF VISITS MINISTER FOR GB GINGER MOXEY, minister for Grand Bahama, yesterday greeted Franklyn Butler (left), Cable Bahamas’ group president and chief executive, during a visit to the Office of the Prime Minister in Freeport. Mr Butler spoke to Mrs Moxey about Cable Bahamas’ plans for Freeport. Accompanying Mrs Moxey during the courtesy call was Harcourt Brown, permanent secretary in the Office of the Prime Minister. Photo:Lisa Davis/ BIS
in, strategies which will mitigate harm to our visitors. At Doctors Hospital, we positioned ourselves as partners with hospitality leaders in tourism. For example, the cruise ships and the major hotels, particularly in the testing space for COVID-19, is quite an impressive story for us to tell. “Over the next few weeks, as we release the data of having completed some 700,000 COVID tests in The Bahamas and what that interpretation is telling us or has told us, and how we’ve used that information to assist in how our key, strong brands have responded to COVID.”
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DOCTORS CHIEF MAKES CALL FOR BETTER HEALTHCARE INTEGRATION By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net DOCTORS Hospital’s chief executive yesterday said COVID-19 has shown that the public and private healthcare systems must be better integrated to enhance medical care for Bahamians. Dr Charles Diggiss, also the BISX-listed healthcare institution’s majority shareholder, told a webinar to mark World Tourism Day: “The first lesson that the pandemic taught us is maybe, because of limited resources nationally, we want to relook at whether this opportunity, this revisiting of our tourism industry, whether this is one of those instances where we look at public and private medicine. “Typically we looked at public or private. The mindset in this particular instance is this opportunity deserves a combination, and concerted efforts, to blend both the public and private sector to look at the network of provision of services, all connected. This is the leverage of technology. “Within this network, the one thing that would make an immediate difference is the placement of midlevel providers in remote locations. We should move away from thinking that it needs a nurse or a doctor, both of whom are relatively expensive, and perhaps we need to consider what has been done.” Dr Diggiss further elaborated on the role physician assistants, who have been in existence since the 1960s. They are especially prominent in pharmacies or large department stores in the US. He added: “Once we’ve networked and connected, and blended both private and public resources, let’s look at the placement of mid-level providers, the physician assistant and the nurse practitioners.” Carlos Palacious, managing director of BRON Ltd, a subsidiary of Caribbean Coastal Services, told the same webinar organised by TCL Ltd: “The amazing thing about technology is it’s a level playing field. “Let’s just look at the habitat mapping and
management. Before, we used to have to get into helicopters and private planes in order to monitor our beach systems. Now, we can put a drone up that cost a few hundred dollars, use satellite imagery and we can map and model all of our coral reef systems, our wetland systems and, of course, our beautiful beaches that our tourists like. Technology allows us to map and model underwater systems, over water systems and above air systems.” Further underscoring that “technology is the way to go”, Mr Palacious added: “Several of our offshoot companies...... Eden Farms, for example. We grow in containers. One 40 foot container grows an equivalent of five acres of land, only using a few gallons of water a day.” He explained that this is how Eden Farms and BRON Ltd are using technology to drive efficiencies in production, and urged attendees to look at the tourism product from that perspective. Shana Lee, managing director of KPMG Bahamas, said: “Professional advisory boards can play a significant role in helping tourism companies and investors to assess and plan for projects in the space. That could be through deal support, due diligence, public-private partnerships, project financing, new technology and digital transformation. The list goes on and on.” Speaking about KPMG’s “true value” initiative, Ms Lee said the accounting firm has created a “new methodology that helps to measure the economic, social and environmental impacts that a company or project has on a society” and how the firm puts a financial value to that impact. “What this means is instead of just establishing the market value of a company or project based on cash flows or what their competitors are doing, we’re taking a broader view and a more holistic view at what a project’s contributions are to a society as well as what its drawbacks are,” she added.
Wednesday, September 29, 2021, PAGE 3
Gov’t ‘finalising’ reforms to boost business ease By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Attorney General yesterday said the Government is “finalising” legal reforms designed to improve the ease of doing business following consultations with several industry groups. Ryan Pinder, speaking before the full Cabinet meeting, said the Philip Davis-led administration is placing a “key focus” on facilitating commerce and reducing bureaucracy to help the economy revive from its COVID-19 induced slump. Disclosing that he has already forwarded recommendations to the Cabinet on what should be included in the Government’s legislative agenda, which is due to be unveiled via the Speech from the Throne during Parliament’s October 6 opening, Mr Pinder said: “Certainly a key focus of our government is going to be to facilitate commerce and business, and to remove impediments and bureaucracies in that fashion. “We have had some consultations with the business community and with industry groups to look to advance that.” Without going revealing any specifics, he added: “I know some of the other ministries within the context of advancing the country, from a commercial point of view,
SENATOR Ryan Pinder sworn in as the Attorney General and Minister of Legal Affairs. Photo: Donavan McIntosh/File have some suggestions on legislative amendments. “I would not want to preempt the Prime Minister, nor the Governor General, on the Speech from the Throne. So we will be finalising that.” Krystelle RutherfordFerguson, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chair, described the administration’s focus on facilitating commerce as “positive” news. She added that the Chamber has already
reached out to Mr Pinder and other Cabinet ministers, and is “anticipating” a meeting with the attorney general soon. Mrs RutherfordFerguson said: “The business community has a lot of issues currently stemming from the impact of COVID-19, such as navigating through the COVID restrictions; disruption in the supply chain; increased costs of shipping; and reduced workforce as a result of workers contracting COVID-19, among
other things. There are key areas of interest which we are planning to address with the new administration.” These issues include the cost of doing business, which ties into the “cost of energy, business license fees, cost of rent and the ever-shifting cost of labour, particularly in light of COVID-19 restrictions”. All have been identified as “fluid” issues hampering commerce. Mrs Rutherford-Ferguson also wants the new administration to focus on the ease of doing business. “The digitisation of government services has had a positive impact on the productivity and efficiencies in government services,” she said. “There are still many government services that have yet to be digitised and processes that can be optimised. It’s not only important that these services be moved to a digital platform. It’s also important that the processes be reviewed and optimised where possible.” She added that tax reform must also be a priority given the global push towards a 15 percent corporate tax rate. Mrs Rutherford-Ferguson said it was “important” for The Bahamas to look at how it can best reform the current tax structure to meet this challenge, and how the Government can simplify the process.
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MILLER ATTORNEYS ‘AGREE’ $10M VERDICT OVERTURN FROM PAGE ONE Grant-Thompson’s verdict in favour of Mr Miller had been overturned at Monday’s appeal hearing. One well-placed source, speaking on condition of anonymity, told this newspaper: “The appeal was allowed and the judgment overturned. “The Court of Appeal ordered that the matter be remitted back to the Supreme Court before a different judge. The Court of Appeal said this matter has to be tried, and the
judgment cannot stand. The entire judgment was set aside, and the matter is as it was originally - a claim by Leslie Miller and his companies versus the Government and everyone else that was brought into it.” Justice Grant-Thompson’s verdict awarding Mr Miller and his companies almost $10m stemmed from his bid for summary judgment against the attorney general and Treasurer of The Bahamas, on the basis that they had provided “no reasonable defence” to his
claims over the five lease agreement breaches. The former Cabinet minister is also arguing that the failure to follow through on the leases, and make combined rental payments exceeding $4.5m annually, resulted in his companies being unable to repay Bank of The Bahamas loans secured on the Summerwinds Plaza. The BISX-listed institution, which is alleging it is owed more than $30.5m by Mr Miller and his companies, subsequently transferred the delinquent
loans and assets upon which they are secured to the Bahamas Resolve bail-out vehicle. The verdict’s overturning, and the settlement talks with the Government, also coincide with Mr Miller’s ambition to re-open his family’s Mario’s Bowling and Family Entertainment Palace, which is located at the Summerwinds Plaza. However, as revealed by Tribune Business on Monday, this is likely to be frustrated by Bahamas Resolve’s Supreme Courtappointed receivers for the Plaza as they do not want to incur any additional operating expenses and losses that will further undermine the value of the assets they are seeking to recover. Mario’s is among the entities included in the receivership. Justice Grant-Thompson, in her judgment, affirmed that the PLP-controlled House of Assembly passed a resolution in 2014 permitting Mr Miller and his companies to enter into rental contracts to lease space to government agencies.
Two leasehold agreements had already been entered into for the Summerwinds complex in May and June 2013, but “significant renovations and structural work” were required to make the property ready for the Government agencies. To finance these works, Mr Miller and his companies sought further advances from Bank of The Bahamas. A $2.5m “upstamping” of the mortgage that the BISX-listed institution held on the Summerwinds complex occurred, but only $185,000 was advanced to the former Cabinet minister and his companies. The former Christie administration had agreed to provide new lease deals in 2016, shortly before it was voted out of office. Justice Grant-Thompson said that while the Government accepted the “veracity” of these arrangements, it did not agree that it had committed to fund the renovations. The Government cited the Financial Administration and Audit Act as its principal defence,
CRUISE PORT CHIEF: EXTEND TOURISM’S ‘PEACE OF MIND’ FROM PAGE ONE it specifically with the requirement that eligible cruise passengers must be vaccinated. “It’s been effective. It’s materially limited the number of passengers on the ship that become ill. It makes sense that it should be continued and extended... The hope is that the administration will consider extending it for a
period of time. A decision needs to be made.” The newly-elected Davis administration has previously voiced misgivings and scepticism about the COVID Emergency Orders used by its predecessor to regulate Bahamian freedoms and movement during the pandemic, and suggested it will seek to replace them with legislation and other mechanisms. The cruise industry provisions, contained in the Emergency Powers (COVID-19 Pandemic) (Management and Recovery( (No.2) (Amendment) (No.8) Order 2021, which came into effect on August 19, were to last from September 3 to November 1, 2021. These prohibited cruise ships from calling in Nassau, Freeport and other Bahamian islands - including the lines’ private islands - unless all passengers aged 12 years-old and older were fully vaccinated before they embarked the vessel at its original port of departure. Cruise ships also have to submit a health manifest on all passengers and crew before arriving in port, and comply with measures previously agreed with the Government. “That’s the essence of it; everybody aged 12 yearsold and up that is eligible for a vaccine must be fully vaccinated,” Mr Maura told Tribune Business. “It’s effective as a health measure and disease mitigator on the ship. “It reduces the potential for an occurrence where we have a number of passengers becoming seriously ill because they are unvaccinated. It brings peace of mind to the tourism industry to know a large portion
particularly the section that requires companies and individuals seeking to do business with the Government to provide a valid Tax Compliance Certificate (TCC) if the contract’s value is worth $10,000 or more. It alleged that Mr Miller and his companies had not provided the necessary TCCs, which Justice GrantThompson described as “a technical reason to exit the contract” for the five leases. Noting that the Act allows government ministers “discretion” to waive this requirement, she said the Government was using this as an excuse to justify its lease breach. “The Government had to have known that the plaintiff was ‘asset rich/cash poor’ when they entered into these arrangements whereby an important part of the contractual triangle was the delivery up of properly appointed premises and that Bank of The Bahamas was to provide the funds necessary for the renovations, further bolstered by the anticipated rents,” Justice Grant-Thompson ruled. of the cruise industry and our travel industry are fully vaccinated. “It’s a very responsible step on the part of the cruise industry to require this, and is a responsible step on the part of the Government to demand it. It needs to be continued. It’s due to expire in five weeks, and there is no reason for it not to be extended, especially when you consider the Biden administration has come out with a policy that as of November all foreigners visiting the US eligible for a vaccine must be vaccinated.” The ‘full vaccination’ mandate was introduced as an alternative to requiring cruise passengers to apply for, and submit, a health travel visa and accompanying COVID test to gain access to The Bahamas. Essentially, it was a compromise designed to relieve the logistical burden on the cruise lines and Ministry of Tourism from having to scrutinise, and check, hundreds of health travel visas at a time. Mr Maura had said in June 2021 that “there is an opportunity to create greater efficiencies” with the COVID-19 related health questionnaires and documents that cruise passengers must complete. He argued that The Bahamas’ health travel visa should be incorporated with the cruise lines’ medical forms to ensure passengers do not have to provide the same information twice when visiting this nation for home porting or on transient cruises. “I do believe there is an opportunity to create greater efficiencies in the health documentation,” he explained. “By that I mean when persons have to fill out cruise industry questionnaires they also complete Bahamas health travel visas, so that they only go through that process once and that information is transmitted to the cruise line, Ministry of Tourism and Ministry of Health. “If they have to do it for the cruise lines, incorporate what The Bahamas requires, and if you’re doing it for The Bahamas, incorporate what the cruise lines want so that people are not uploading the same information twice just to take a vacation.” Through such a system, Mr Maura argued that The Bahamas and cruise industry can eliminate waste and duplication on health protocols, and improve consumer convenience. While fully vaccinated persons can still catch COVID-19, evidence in The Bahamas and elsewhere suggests they are largely protected against suffering severe, lifethreatening illnesses that could result in hospitalisation and even death. The vaccines also reduce, but do not eliminate, the ability of fully vaccinated persons to pass COVID-19 on to somebody else.
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Wednesday, September 29, 2021, PAGE 7
BAHAMAS IN WORLD’S EIGHTH LARGEST ELECTRIC CAR SALE RISE FROM PAGE ONE
“Ever since 2020 we’ve gone up on selling vehicles,” he told this newspaper. “We’ve done better this year than last year. Despite the pandemic we’ve done better. We sold 77 cars last year, and this year we have sold over 100 so far and the year is not over.” Mr Bain suggested that the data compiled by his firm likely underestimated the extent to which electric vehicles were present in The Bahamas, as it was based solely on statistics provided by local auto dealers. He added that it did not include electric vehicles imported directly by individuals and companies, “so there are probably a lot more” on local roads. The UHY Bain & Associates chief predicted that electric vehicle sales in The Bahamas will only continue to increase, given Bahamian tendencies to “follow the US, especially Florida”. However, he argued that there were several tax policy changes and other incentives that the Government could use to drive reforms that directly impact this nation’s carbon emissions and efforts to mitigate climate change. “There are several problems with the electric cars in The Bahamas,” Mr
Bain told Tribune Business. “There’s a structural problem in having sufficient places and stations to charge your car. We have to deal with that. “We still have a tax on chargers. When you charge your car they have a high tax on chargers, speed chargers. It’s 45 percent [import duty] on that. The tax on the vehicles is 10 percent. The Government can do a lot by the adjustment of taxation” on critical components that accompany electric autos. Mr Bain also called for the Government to take the lead, and set the example, given that it has the largest vehicle fleet in The Bahamas. Arguing that the Government’s fuel cost savings could be substantial, he said committing to make just a percentage of its vehicle fleet electric powered would show the Prime Minister was serious about the climate change issues identified in his recent United Nations (UN) speech. “We could demonstrate our commitment to that by targeting the low-hanging fruit,” Mr Bain explained. “They switch the Government’s fleet to electric, or just a portion of that - 75 percent of the fleet - and commit some of the public corporations, like Bahamas Power & Light (BPL).
“Imagine someone like BPL, which sells electricity, say they are not using gasoline powered-cars - they are using electric vehicles.” The cost and reliability of electricity supply in The Bahamas, as offered by BPL, is seen as a deterrent by many to greater electric vehicle penetration, but Mr Bain argued that this was not so. “Even with the cost of electricity as it is, it’s estimated that the cost of electricity [for a vehicle] is equivalent to $1 per gallon,” he said. “When you compare it with the cost of gasoline now, over $5, it’s an 80 percent savings.” And there were also electric vehicle chargers that can operate using the 110120 volts of power typically found in homes,” Mr Bain added. He predicted that it will take the better part of two decades for electric vehicles to become established, and start to take significant share, in the Bahamian vehicle market. Mr Bain based this on the fact that “we follow as usual; we’re not leaders”, and that The Bahamas will “have no choice” once the US and UK move ahead. Joe Biden, the US president, signed an executive order requiring half of all new US-made vehicles to
BANK OF THE BAHAMAS TWD HIGHWAY.
BOB TARGETING ‘REAL GROWTH, NOT LOAN LOSS MANAGEMENT’ FROM PAGE ONE in the prior year did not materialise.” The Bank of The Bahamas managing director, in a subsequent interview with Tribune Business, added: “We’ve had some adjustments, mainly on the provisioning side of things, but have also had some growth. I think we were aggressive in providing for those loan losses last year. We did not know what it would look like this year. “I believe, even in the hotel sector, employment was a little bit better than thought. A lot more persons went to work. But we’re still working towards sustained profitability through real growth as opposed to managing delinquency provisions.” Mr Brathwaite said Bank of The Bahamas’ financial year to end-June 2021 had to be “cut in half” because there were “two portions” to it. While the institution’s performance from ordinary operations was “pretty close to what we anticipated, we didn’t really anticipate having that kind of adjustment in provisions, so we did not anticipate profitability of over $6m”. The BISX-listed bank, he added, was still in the “phase of building the foundations” according to its three-year strategic plan. That stage should be completed by the time the current financial year closes at end-June 2022, Mr Brathwaite, who acknowledged that the return to sustained profitability via organic growth will be akin to a marathon given the near-$138m in accumulated losses still on its balance sheet at the period start. He likened Bank of The Bahamas’ progress to “crock pot cooking as opposed to the microwave”, but said: “We want to introduce debit cards, grow the credit card portfolio, focus a lot on merchant services, consumer loans.... We want to get the Central Bank to
release the restrictions on us taking commercial loans. “How all this comes together, we would be in a position where we can reach sustained profitability... We’re dealing with these consumer loans, trying to focus on salary deductions and staying away from tourism as much as possible, dealing with the Government and the highend company sector. “There’s still vehicle loans, and we’re still doing lot loans. We’re having some success in this area having introduced the mortgage department last year. That stemmed the loss of mortgages, so we’re gaining in that area.” Bank of The Bahamas grew its consumer loan book by almost $23m yearover-year in the 12 months to end-June 2021, expanding it to $123.732m. Overall, though, non-accrual loans that are 90 days or more past due, accounted for 18.95 percent or $74.16m of its total $391m net loan book at year-end. This was down from 22.65 percent at end-June 2020, while loss provisions as a percentage of the net $391m loans had also fallen from 18.43 percent to 15.67 percent. But, while Bank of The Bahamas’ balance sheet shows net equity of $161m, this is only made possible by the $168.718m “promissory note” or bond injected into the bank’s balance sheet as part of its 2017 taxpayer-funded bail-out. Without that bond, which must be redeemed and paid out to Bank of The Bahamas by the Government in August 2022, the BISXlisted institution would still be suffering from a solvency deficiency with liabilities exceeding assets. Mr Brathwaite, in his message to shareholders, said: “Experience gained in responding to the pandemic will undoubtedly be a catalyst for further change, with an opportunity for a more streamlined and efficient banking model, moving towards a position
of sustainable profitability and growth.... “With the shift to a mostly virtual environment and an adjusted operating model, banking operations were carried out smoothly, technology was deployed, and unprecedented agility and resilience were demonstrated. As a result, customers were served, employees were productive, and regulators were reassured. “However, although we acknowledge continuing challenges before the positive impact of the ongoing vaccination is felt and the economy fully rebounds, we are optimistic of the future.”
be electric by 2030, while the UK is aiming to ban the sale of new cars and vans powered entirely by petrol and diesel by 2030. It will then seek to ban the sale of new hybrid vehicles by 2035, with all new cars and vans sold in the UK to be fully electric from that point on. While praising the Bahamas Development Bank (BDB) for offering loans to finance company purchases of electric cars, Mr Bain said their prices also needed to drop further despite noting the $25,000
price point attached to the Nissan Leaf. Electric vehicles, he added, typically ranged from $40,000 to $70,000/$75,000. And, he noted, the eventual transition to electric vehicles will have “amazing ramifications” for mechanics and radiator shops given that issues with transmissions, overheating, oil changes and grease will start to become a thing of the past. “They will have to change their technology and adapt to new models and cars. It opens up for
specialists and people interested in repairing electric motors as opposed to combustion engines. The cars are smarter, so they operate on computer chips and software,” Mr Bain said. “Electric vehicles have shown a significant yearover-year sales growth in The Bahamas. We support a further investment by the Government of gradually changing its fleet to electric vehicles that will lead to long-term savings over the life of the vehicle, as well as a reduction in the carbon footprint.”
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‘CRITICAL DATA’: HEALTH TRAVEL VISA TO REMAIN FROM PAGE ONE on where they are staying in The Bahamas, for how long and what they intend to do that allows the Ministry of Tourism to better target its marketing. Meanwhile, Mr Cooper said the contract issued to Kanoo, the digital payments provider, to facilitate health travel visa payments is being “reviewed” but he declined to comment further. He added: “Our focus really is restoring tourism. Getting more tourists to
come to our shores. We’ve been doing a lot of work internally; we’re optimistic about the next few months. So that’s our primary focus at the moment.” But Faron Sawyer, president of Cherokee Air, told Tribune Business that the Government should “do away with the travel health visa altogether”. Mr Sawyer added: “This is probably going to keep international travel slowed down a bit. I don’t know why they just don’t get rid
of it as long as people have a negative test.” Hailing the removal of the travel health visa for domestic travel, Mr Sawyer said that despite September being a slow month the move was a good thing. “Usually around September it feels like somebody turns off a light-switch for some reason. September is always like nothing is happening, but I think I can say we are still a little more busy than we normally would be. I think
the minister removing the health visa for Bahamians travelling was a good thing,” he added. “If the Government needs the data then, yeah, I can understand that. But I still would like to see them get rid of that and just let people travel on a negative test. A lot of people are getting vaccinated now, so even with the vaccinated people they could get rid of the travel visa as a way to encourage more people to get vaccinated.”
“Other than that I think the new administration has made some good changes. I just hope they can keep up and don’t let it all go to their heads.” Anthony Hamilton, Southern Air’s director of administration, said he does not see a problem with keeping the health travel visa for international travellers. He added: “The rationale in terms of making a difference between the international traveller and
the domestic traveller, given the consideration for financial revenue generation, I see no challenge with it. “It helps in the domestic environment in that it’s not out of pocket for the domestic traveller, so that’s a relief and we still need to balance that in terms of revenue generation for the external patronage having to pay the fee. I have no challenge with that.”
JAPAN’S NEXT PM MUST WORK QUICKLY ON VIRUS, ECONOMY, CHINA By MARI YAMAGUCHI Associated Press TOKYO (AP) — The stakes are high as Japanese governing party members vote Wednesday for four candidates seeking to replace Yoshihide Suga as prime minister. The next leader must address a pandemic-battered economy, a newly empowered military operating in a dangerous neighborhood, crucial ties with an inward-focused ally, Washington, and tense
security standoffs with an emboldened China and its ally North Korea. For the long-governing Liberal Democratic Party that often chooses its leaders in backroom negotiations, this election promises to be wide open. Because of the party’s control of parliament, its leader will become prime minister. Whoever wins, the party desperately needs new ideas to quickly turn around plunging public support ahead of lower house
elections coming within two months, observers say. Unusually, two women — conservative Sanae Takaichi and more liberal Seiko Noda — are competing against front-running Taro Kono, the vaccinations minister, and former Foreign Minister Fumio Kishida. Takaichi, with the crucial backing of Suga’s predecessor, former Prime Minister Shinzo Abe, whose conservative vision and revisionist stance she supports, has risen fast, while Noda’s chances are fading. Abe’s backing of Takaichi may be an attempt to improve the party’s sexist image and divert votes from Kono, considered
something of a maverick and a reformist, political watchers say. Little change is expected in key diplomatic and security policies under the new leader, said Yu Uchiyama, a political science professor at the University of Tokyo. All of the candidates support close Japan-U.S. security ties and partnerships with other like-minded democracies in Asia and Europe, in part as a way to counter China’s growing influence. Kono and Kishida are former top diplomats. They and Noda have stressed the need for dialogue with China as an important neighbor and trade partner. All four candidates support
NOTICE NOTICE is hereby given that SHENEKA DORVILUS of #219 Marshall Road, Nassau, P.O. Box SB-52221 The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 29th day of September, 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
IN this Sept. 18, 2021, file photo, Taro Kono, left, the cabinet minister in charge of vaccinations, and Fumio Kishida, former foreign minister, two of the four candidates for the presidential election of the ruling Liberal Democratic Party, pose with papers with their signs and words prior to a debate session hosted by the Japan National Press Club in Tokyo. Photo:Eugene Hoshiko/AP maintaining close “practical ties” with Taiwan, the self-governing island that China claims as its own, and its intention of joining the Trans-Pacific Partnership trade bloc and other international organizations. At a series of policy debates, the four candidates discussed diplomacy, the economy, energy and defense issues, but also gender equality and sexual diversity, which the maledominated conservative party has rarely discussed in the past. Inclusion of gender and diversity signals that the
party knows it cannot keep neglecting the issues, said Ryosuke Nishida, a sociology and public policy professor at the Tokyo Institute of Technology. Takaichi alone opposes changing a law that forces married couples to use only one surname — almost always the husband’s. She also has vowed to make official visits to Yasukuni Shrine, which honors World War II dead, including war criminals, and is considered by many in China and the Koreas as proof of Japan’s lack of remorse over its wartime actions.
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SPIKE IN BOND YIELDS SPOOKS INVESTORS, DEFLATES TECH STOCKS DAMIAN J. TROISE AND ALEX VEIGA AP Business Writers TECHNOLOGY companies led a broad slide in stocks on Wall Street Tuesday, deepening the market’s September swoon. The S&P 500 fell 2%, its worst drop since May. The tech-heavy Nasdaq dropped 2.8%, its biggest drop since March. Decliners outnumbered advancers on the New York Stock Exchange 4 to 1. The benchmark S&P 500 is down 3.8% so far this month and on pace for its first monthly loss since January. The September slump has been an exception to
a mostly steady stream of gains so far this year that has brought the S&P 500 up 15.9% since the beginning of 2021. The selling came as a swift rise in Treasury yields forces investors to reassess whether prices have run too high for stocks, particularly the most popular ones. The yield on the 10-year Treasury note, a benchmark for many kinds of loans including mortgages, jumped to 1.54%. That’s its highest level since late June and up from 1.32% a week ago. Bond yields started rising last week after the Federal Reserve sent the clearest signals yet that
the central bank is moving closer to begin withdrawing the unprecedented support it has provided for the economy throughout the pandemic. The Fed indicated it may start raising its benchmark interest rate sometime next year and will likely begin cutting back the pace of its monthly bond purchases before the end of this year. “All of that is taking one of the weights that had been holding yields low and removing it,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute. “That clearly has a big impact on larger cap, higher
growth, higher multiple stocks.” A rise in yields means Treasurys are paying more in interest, and that gives investors less incentive to pay high prices for stocks and other things that are riskier bets than super-safe U.S. government bonds. The recent upturn in rates has hit tech stocks particularly hard because their prices look more expensive than much of the rest of the market, relative to how much profit they’re making. Many tech stocks also got bid up recently on expectations for big profit growth far in the future. When interest rates are low, an
investor isn’t losing out on much by paying high prices for the stock and waiting years for the growth to happen. But when Treasurys are paying more in the meantime, investors are less willing. The S&P 500 fell 90.48 points to 4,352.63. The Dow Jones Industrial Average fell 569.38 points, or 1.6%, to 34,299.99. The blue-chip index briefly fell 614 points. Small company stocks also lost ground. The Russell 2000 index dropped 51.23 points, or 2.2%, to 2,229.78. This week’s swoon for the market is reminiscent of an episode early this year when
expectations for rising inflation and a stronger economy sent Treasury yields climbing sharply. The 10-year yield jumped to nearly 1.75% in March after starting the year around 0.90%. Tech stocks also took the brunt of that downturn. Chipmaker Nvidia fell 4.4%, Apple slid 2.4% and Microsoft fell 3.6%. The broader technology sector has also been contending with a global chip and parts shortage because of the virus pandemic and that could get more severe as a power crunch in some parts of China shuts down factories.