10022017 business

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MONDAY, OCTOBER 2, 2017

$4.25 BRAN: BPL, WATER NO DISCONNECT LISTS A ‘DAMN DISGRACE’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Democratic National Alliance’s (DNA) leader has slammed as a “damn disgrace” the ‘do no disconnect’ lists at BPL and the Water & Sewerage Corporation, recalling how one of his businesses was almost cut-off over a $100 balance.

Branville McCartney, praising the Minnis administration for discontinuing the practice, told Tribune Business: “It’s a damn disgrace. You hear people talking about it [the lists], but you refuse to believe it’s true.

“That should not happen.

No one is above the law. No one should get preferential treatment over anyone else.

They [BPL] came to disconnect me for $100 some time back. They came to disconnect me for $100. I mean....

See PG B4

DNA leader recalls cut-off over $100 Says landfill tender coming too late Urges Bahamians to ‘get serious’

A BAHAMAS-based oil explorer’s push for a “faster” conclusion to its joint venture partner search has been boosted by industry developments impacting the Caribbean.

Simon Potter, Bahamas Petroleum Company’s (BPC) chief executive, told Tribune Business that its search for a ‘farm-in’ partner to share the burden of a first exploratory well in Bahamian waters was

$4.41

$4.30

IMF: Bahamas bank fees rise up to 186%

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

BAHAMIAN banks have increased fees for cross-border transactions by as much as 186 per cent over the last five years, due to growing pressure on their international ties.

A recently-published International Monetary Fund (IMF) working paper further exposes the impact correspondent banking ‘de-risking’ is having on Bahamas-based institutions and their clients, with wire

Wire transfer fees grow 20% in 5 years De-risking ‘complicates diversification’ Web shop risk hits correspondent ties transfer fees alone having increased by 20 per cent since 2012.

It reveals how the fee increases, and extra time

spent on compliance and administrative work, have negatively impacted the financial services industry and a wider Bahamian economy that is primarily based on international trade and services exports.

The IMF paper warned that besides further depressing growth and jobs in the financial services industry, ‘de-risking’ was also “complicating efforts to diversify the economy”, with many institutions “vulnerable” to further reductions in the number of relationships they hold with foreign correspondents.

It acknowledged, though, that the decision by some global banks to terminate relationships with their Bahamian counterparts was driven, at least in part, by their “discomfort” in providing services to institutions that do business with the web shops.

Drawing on the Central Bank of the Bahamas’ correspondent ‘de-risking’ survey from August 2016, the IMF paper revealed that fees charged by Bahamian banks to their customers for correspondent banking-related services had See PG B7

General insurers fear Govt ‘over-regulation’ DNA LEADER BRANVILLE MCCARTNEY

Oil explorer’s boost for ‘faster’ farm-in partner conclusion

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

$4.29

Discoveries, price stability aid BPC

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

BAHAMIAN general insurers fear the Government will “over-regulate a risk that doesn’t exist” with proposed changes to anti-money laundering regulations.

Senior executives told Tribune Business they wanted to ensure the

Minnis administration “thinks before it acts” on changes to the Financial Transactions Reporting Act, which for the first time include property and casualty underwriters in the definition of a ‘financial institution’.

Anton Saunders, RoyalStar Assurance’s managing director, questioned how the sector could be exploited by money launderers/terror financiers

given the nature of its business.

“We have gotten from the industry the draft legislation that we will be responding to shortly with our recommendations,” he told Tribune Business.

“Like with everything, no one thinks before they act.

“We have to understand what is the risk for the general insurance industry from money laundering.

See PG B5

Say money laundering risk ‘doesn’t exist’ Sector gains extension on Bill feedback BIA chair acknowledges cost, paperwork impact

Five new groups sign for due diligence JV search ‘dictated’ by market forces “dictated” by market forces “outside our control”.

He added, though, that interest in BPC’s prospects appeared to be heating up, See PG B8

Hotel Corp bids to ‘aggressively sell’ last resort property

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Hotel Corporation is moving “to aggressively sell” its last-remaining resort property, and complete the 25-year process to cease Government ownership in the hotel industry.

Dionisio D’Aguilar, minister of tourism, told Tribune Business that the Government was hoping for “an all-cash deal” for the Lighthouse Yacht Club and Marina, having kick-started a formal sales process for the 20-room Andros resort last week.

Bids are due by October 31, and Mr D’Aguilar said the Minnis administration was seeking offers from groups “with the wherewithal” to develop the 11-acre property rather than ‘buy and hold’.

See PG B4

Seeks Lighthouse Club bids by end-October Chairman seeks ‘economic blessing’ Future is Tourism Development Corp

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PAGE 2, Monday, October 2, 2017

THE TRIBUNE

Irma gives Acklins reform opportunity THERE has been much talk, in the wake of Hurricane Irma’s destruction, about the current state of the southern Family Islands and their future development prospects.

Salina Point in southern Acklins was particularly hard-hit by the storm, with evacuated residents finally allowed to return home last week. The reality, however, is that Acklins’ economy was in a precarious state well before Hurricane Irma made landfall. As the impacted communities rebuild, now is a prudent time to examine what can be done to change course and revive economic activity on Acklins.

Flats Fishing Flats fishing is the lifeblood of Acklins’ economy.

The island, renowned for its high number of unspoiled flats, plentiful bonefish and local expertise, routinely draws visitors from around the world. Its existing lodges and hotels are generally well-reviewed on travel websites, and tend to attract repeat business from visiting anglers. Yet many local accommodations are operating well below occupancy – a poor sign for those interested in bringing more competition to the sector. Why is this the case?

Sadly, efforts by the previous administration to further regulate flats fishing (ostensibly to ‘protect’

Roderick A. Simms, chair of the Chamber of Commerce’s Family Island division, warns that the new flats fishing regulations are hurting Family Island economies local guides) appear to have backfired and driven anglers directly into the arms of some of Acklins’ largest competitors, namely Cuba, Belize and South Florida, where anglers face fewer bureaucratic hurdles.

The regulations, signed into law in January, in part require all visiting anglers to pay for fishing licenses and for the services of a Bahamian guide for all parties of two or more.

Both freelance flats guides and lodge owners have complained of decreased bookings for the upcoming busy season, which lasts from November to May, with some struggling to allay visitor fears about the new regulations.

Acklins is not alone in this respect, with nearby Islands including Crooked Island and Long Island experiencing similar downturns in visitor arrivals, although exact figures for Acklins are currently unavailable.

Nature and Wildlife Tours Acklins is home to more than just bonefish. The

island is home to a host of natural attractions, including blue holes, extensive caves and rare fauna. Birdwatching is also viable in Acklins. The Plana Cays, located off the east coast of Acklins, are a protected nature reserve featuring endangered iguanas and hutias rarely seen outside the island. Younger entrepreneurs could carve out their own niche in nature tours as part of the island’s efforts to diversify its economy, and appeal to wider demographics beyond anglers. Acklins also features several documented Lucayan settlements, offering a unique cultural tourism experience for guests looking for activities beyond fishing.

Airlift and Marketing Lack of airlift is the largest impediment to growth on Acklins once we look beyond the immediate concerns of rebuilding infrastructure damaged

by Hurricane Irma. Bahamasair is currently the only carrier providing routine flights to the island, and even that service is

island

InsightS

By RODERICK A. SIMMS II

limited to two flights per week – Wednesday and Saturday mornings. To make matters more complicated for potential visitors, the current flight times depart long before most international flights arrive in Nassau, making sameday flight connections near impossible. While the existing flights cater to locals coming into Nassau for business, they force visitors to spend at least one night in the capital.

Thankfully, the Bahamas Out Island Promotion Board (BOIPB) is currently in talks with Bahamasair to revise their flight schedules and the aircraft used to the benefit of both Acklins locals and international guests. The BOIPB further plans to assist domestic carriers in meeting safety

audit standards to serve as co-chair partners with Bahamasair, which would bring more frequent and convenient flights to many Family Islands. Doing so would likely address the longstanding issues of accessibility and affordability facing persons interested in exploring Acklins.

Tourism stakeholders hope to revamp airlift into Acklins in time to accommodate guests for the peak fly fishing season starting in November, though it remains to be seen whether Irma’s devastation has pushed back these projections.

However, increased airlift is only part of the solution. Tourism stakeholders will likely expand efforts to modernise standard and package booking processes once airlift has been addressed. The BOIPB additionally hopes to get Acklins-based accommodations listed on global distribution systems, and make local hotel websites mobile-friendly with builtin booking widgets.

Additional Challenges As is often the case across the Bahamas, Acklins currently has room for improvement in customer service. It is difficult to convince some employers on the island to invest in service training when revenue remains relatively low. To address this

Bahamas takes STEP to boost its presence MORE than 25 Bahamians were present at the Society of Trust and Estate Practitioners (STEP) annual Latin America (LATAM) conference last week, which was sponsored by the Ministry of Financial Services and Bahamas Financial Serviced Board (BFSB).

The delegation to the 300-person conference was led by Brent Symonette, minister of financial services, trade and industry and Immigration. He said: “The Bahamas has taken the initiative to rebrand itself as the ‘Clear Choice’ for financial professionals delivering services around

the world to high net worth clients.

“Tailoring products and services to the needs of targeted clients will aid in the deliverance of the best possible result. We are committed to supporting the efforts of the financial services providers in our country. We will provide the platform and

enable the necessary policies, processes, legislation and administrative services to allow these providers to operate more efficiently, and grow the financial services sector.”

Topics discussed at the conference included the Common Reporting Standard (CRS); corruption; Bitcoin; and tax amnesty.

“The Latin American market is a key target for our service providers.

STEP LATAM continues to be a great opportunity for the Bahamas to not only network, but to maintain and make new connections with a market key to our jurisdiction. Moreover, we are able to confidently market the Bahamas as a

issue, the Bahamas Hotel and Tourism Association (BHTA) and the University of the Bahamas (UB) are expected to launch training assistance programmes in the near future. The BOIPB has additionally launched a small-scale consultancy service for Family Island small business owners to identify short-term goals and areas for improvement.

Acklins’ shrinking population is another area of concern, with a stagnant economy and successive hurricanes, most notably Joaquin in 2015, sending many residents to New Providence. Today, fewer than 400 people reside on Acklins compared to 565 as of a 2010 census.

Course Correction Acklins’ remoteness is perhaps its greatest asset, but despite its vast stretches of unspoiled natural beauty, the message is clear: Maintain status quo and the local tourism economy will flounder.

While Hurricane Irma has damaged southern Acklins considerably, it is critical that the Government and other stakeholders use this as an opportunity to revisit the current legislation and policies hindering growth on Acklins and, in the process, halt this negative trend in lodge and tour bookings upon which local businesses depend. compliant jurisdiction of choice in an ever-changing global landscape,” said BFSB’s chief executive, Tanya McCartney.

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THE TRIBUNE

Monday, October 2, 2017, PAGE 3

Revised GDP numbers no cause for rejoicing

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net A TOP accountant yesterday said there was no rejoicing in the Bahamas’ “positive but lacklustre” 0.2 per cent GDP growth in 2016, arguing that 4-5 per cent nominal annual expansion is needed to dent unemployment.

Gowon Bowe, the Bahamas Institute of Chartered Accountant (BICA) president, told Tribune Business: “If you compare the GDP revised for 2015 to GDP revised for 2016, the growth was 0.2 per cent in real terms, which means you take out the impact of inflation.

“The significance of that is that previously we had said that the economy had contracted, and it was a negative growth. Now they have revised these numbers for the period 2012-2016. It is no growth to rejoice over, but where it was previously reported in the Budget contributions and others that the growth rates in the Bahamas was zero and negative, this is now saying that actually when you do it on a revised basis there was positive growth even though it was lacklustre.”

According to the Department of Statistics’ 2016 national accounts report, Bahamian GDP grew marginally by just 0.2 per cent in 2016. The department released revised data for GDP between

2012 through 2016, consistent with a revision of major data sources, the implementation of revised United Nations Systems of National Accounts, and a shift to using the double deflation methodology in the constant price series.

According to the revised figures, real GDP growth was -0.6 per cent in 2013, -1.2 per cent in 2014 and -3.1 percent in 2015, the year Value-Added Tax (VAT) was introduced.

However, in nominal prices that strip out inflation, growth went from a negative -0.4 per cent in 2013 to 1.6 per cent in 2014 and 3.7 per cent in 2015. Officials noted that the GDP level in 2012 was $8.4 billion and now stands at $10.7 billion, a 27.6 per cent increase.

“They have taken the size of GDP from $8 billion to $10 billion. All of our debt-to-GDP ratios, our deficit-to-GDP ratios and all of the other ratios that factored into GDP, would have been improved; not because of an improvement in the debt or the deficit, but because the economy was a bit larger,” Mr Bowe said.

“This has significant implications, and therefore the trustworthiness and the veracity of these numbers are going to be important because they could be seen as sort of positive contributors to some of our metrics, and we want to make sure it is justified.”

Mr Bowe added: “These numbers have to show that

they can withstand any challenge or scrutiny, and if they do withstand that what it does show is that VAT has contributed to better information about the Bahamian economy than we had before, where we were doing far more what I would call guesstimation, whereas we are now doing better estimation.”

Department of Statistics officials said GDP in constant prices for 2016 had a growth in real terms of 0.2 per cent. Industry growth at constant prices was due mainly to increases in the industries of construction, 24 per cent; wholesale/ retail, 7 per cent; and business services of professional and technical nature, 6 per cent.

“The number still isn’t anything to rejoice about,” said Mr Bowe. “In order to have any significant decline in unemployment we need to be growing between 4-5 per cent in nominal terms.

What this actually represents is 0.2 per cent in real terms.

“If we say inflation is about 2 per cent in nominal terms, we probably grew at about 2.2 per cent, and that is still far below where we need to be for making a meaningful dent in unemployment and economic activity. All it says is we weren’t technically in a recession like the previous information indicated, but in reality we are still not going anywhere near the rate we need to be.”

Price Commission sends ‘gouging’ report to the AG

By NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net THE Price Commission has forwarded its report on complaints of pre-Hurricane Irma price gouging ahead to the Attorney General’s Office, its chairman has confirmed.

“We forwarded our findings to the AG’s Office, and we are awaiting a review from them before any statement is made on whether we will take legal action,” said Syndia Dorsett.

“We have to ensure that we are on the right track if that is done so we don’t embarrass ourselves. I have completed my part of the exercise, and we are now just waiting on the AG’s Office to make a determination on whether there is a sufficient case against those persons.”

Prime Minister Dr Hubert Minnis, during an address to Parliament last month, said “several individuals and supermarkets” have been referred to the Attorney

General’s Office over ‘price gouging’ allegations.

The Government had warned ahead of Irma that ‘price gouging’, and similar schemes to spike prices, were considered “criminal offences”. It also advised retailers and wholesalers against “hoarding” items for “speculation” or “profiteering” and marking up.

Dr Minnis had instructed the Price Commission to monitor the tariffs being charged for items such as ‘breadbasket’ foods, medical and prescription drug supplies, and hurricane preparedness items such as plywood and nails.

The Price Commission, the Consumer Protection Commission (CPC) and the Standards Bureau all fall under the Ministry of Labour. Ms Dorsett said all three entities will work together to create synergies and ensure there is no overlap, adding that the Price Commission also plans to undertake a public education campaign to sensitise consumers of their rights.

THE PRICE Commission met to review issues and complaints last Thursday. Board members in attendance were chairman Synida Dorsett, centre, and from left: Huel Robins, deputy chairman Earl Godet, Freddie Munnings and Belinda Wilson. (BIS Photo/Patrick Hanna)

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NOTICE

NOTICE is hereby given that CADADI OBI DECOURCEY ANOAH WILLIS of P.O. Box SS-19850, Clarke Lane off Mackey Street, Nassau, 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 2nd day of October, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

PAGE 4, Monday, October 2, 2017

Hotel Corp bids to ‘aggressively sell’ last resort property From pg B1 “It’s always been on the market,” the Minister said of the Lighthouse Club, “but now the Hotel Corporation is aggressively trying to sell it. It’s the only hotel left.

“It was significantly damaged in Hurricane Matthew, and it’s really not the intention of the Government to be in the business of running hotels. The Government is not the best-suited entity to run that hotel, so we’re opening it up to whoever’s interested in buying it. We’ll consider all bids.”

A successful sale of the Lighthouse Club would seemingly mark the end of a 25-year process, begun under the first Ingraham administration in 1992, with the sales to Sandals and SuperClubs Breezes, to extricate the Government from the business of hotel ownership.

Mr D’Aguilar, though, replied: “I wouldn’t say that too quickly” - seemingly a reference to the fact that the Government may, through the Hotel Corporation, take a partial equity ownership stake in the Grand Lucayan to ensure that property rapidly re-opens for the benefit of Freeport’s economy.

“We want to get it income producing, we want to get it employing people,” the Minister added of the Lighthouse Club. “We just don’t believe the Government should be performing that function.

“We want to sell it as quickly as possible. The quicker it gets sold the people purchasing it can do something with it and get people employed again.

A number of parties had approached us previously, and we would hope for an all-cash deal.

Bran: BPL, Water no disconnect lists a ‘damn disgrace’ From pg B1 “The bottom line is that should not happen. No one should be on a preferential list, not even the Prime Minister. I’m glad it’s been discontinued, and hope that list is torn up.”

Scores of prominent politicians, including former prime minister Perry Christie, and ex-Cabinet ministers were revealed as being included on ‘do not disconnect’ lists at Bahamas Power & Light and the Water & Sewerage Corporation despite owing thousands of dollars.

The existence of such lists provoked an immediate

public backlash, especially since BPL now disconnects ordinary Bahamians for owing as little as $200.

Tribune Business contacts yesterday confirmed that, like its BPL counterpart, the Water & Sewerage Corporation’s ‘do not disconnect’ list has been in existence for decades.

One well-placed source, speaking on condition of anonymity, described it as “a handle with care list”, meaning that persons on it had to be notified to pay up, or agree a payment plan, prior to disconnection efforts.

Mr McCartney, meanwhile, recalled how BPL

THE TRIBUNE “People are interested, wondering what we’re going to do with it, and are interested in acquiring it,” Mr D’Aguilar continued. “We’d like to sell it to someone who’s going to do something with it, and create employment for Andros. The preferred purchaser would be someone with the wherewithal to do something with it, not just buy it and let it sit there.”

Numerous attempts to sell the Fresh Creekbased property, which also includes a 30-slip marina, pool and tennis court on 11 acres of beachfront land, have been made before with little seeming success.

The last Ingraham administration was trying to negotiate a sale to Illinoisbased Scheck Industries when it left office in May 2012, in a bid to end financial bleeding that was costing the Hotel Corporation $500,000 per year.

Under the proposed agreement with the

then-Ingraham administration, land and investment incentives would have been released to Scheck in accordance with “timeframes and milestones for development”.

The company had proposed a $15 million investment in the first phase, and construction and fulltime jobs of 50-plus, but nothing further was heard of Scheck once the Christie administration took office.

Tribune Business then revealed in 2014 that rival Bahamian-led bids with strong Andros connections were battling to acquire the Lighthouse Club. Prescott Smith, owner of Stafford Creek Lodge, confirmed he was heading one group, while Vanlock Fowler, owner of Nassau-based All Purpose Steel Company, confirmed he was part of another.

Again, though, no deal was closed. The property remains shuttered, with the Matthew-related damage

not repaired, resulting in the assets being offered on an ‘as is’ basis.

Rev Frederick McAlpine, the Hotel Corporation’s chairman, told Tribune Business that there was likely “more value in the land” than the buildings at the Lighthouse Club.

“We’re interested in selling it to anyone who wants to do something in Andros that will be an economic blessing for the people of Andros,” he said. “We’re looking for a very quick sale and a reasonable sale.”

Both Mr D’Aguilar and Rev McAlpine said a sale closing would not result in the Hotel Corporation’s winding-up, as its remaining assets include about 3,200 acres of undeveloped land in Eleuthera, in the area of Winding Bay and Half Sound.

They suggested it would instead be “redefined” as a Tourism Development Corporation, something that has been planned since

the 2002-2007 Christie administration.

“We’ve got some other ideas for the Hotel Corporation once we get out of this business,” Mr D’Aguilar told Tribune Business.

“We’re exploring the idea of a Tourism Development Corporation.

“It has to be fleshed out, and we have to see how it will be constituted and what will be its purpose. We have to think about that and come to a conclusion.”

Rev McAlpine added: “I think the future of the Hotel Corporation is to convert ourselves into a Tourism Development Corporation, being able to be a catalyst in the affairs of tourism in the Commonwealth of the Bahamas and trying to bring people to the table and even be a partner in tourism ventures.

“It would also put the Hotel Corporation in a better position to have more teeth to do something and redefine ourselves.”

personnel were dispatched to turn off power to one of his companies after “a mix-up” left an outstanding $100 on the bill.

“These fellas came to cut the thing off, just like that with no warning,” he recalled. “We saw them, said what’s the problem, thinking the payment was made in full, and they said $100 was owing. We said we’d have it down there and paid within the next hour.”

The DNA leader, in a wide-ranging interview, returned to one of his favourite issues, the New Providence landfill, arguing that the Minnis administration was too late in having the management agreement tender ready for issuance before year-end.

Pointing out that it would likely be mid-2018 before a preferred bidder was selected, and contract negotiated, Mr McCartney said: “By the time that happens the fires will come again.

“This thing [the tender] should have been ready to go. There are a number of companies that have been bidding for that dump since I was in Cabinet [in 2007-2010]. There were international companies from around the world wanting to deal with that dump site, and prepared to joint venture with Bahamians.”

The DNA leader then added: “I think we need to get serious as a people.

We accept too many things.

We settle for mediocrity, we accept corruption, we accept the fact there’s

conflicts, and we keep on going back and forth doing the same things.

“When we continue to do that, it continues to happen. I would just hope that what’s been going on, and what’s come to light, would deter public officials from taking that path.

When people see the consequences of their actions, it makes other people think twice. I hope we can start to move in that direction.”

Mr McCartney blamed a failure of leadership by both FNM and PLP leaders for the Bahamas’ current state, arguing that this nation should be “much more advanced” than it currently is.

“Both sides of the political divide have got us messed right up,” he told Tribune Business. “We’ve

lost our standing in tourism, crime is out of control, we’ve lost our financial standing in the financial services sector.

“We’ve certainly failed to diversify our economy, failed to educate our people, kept them at a ‘D’ average, and failed to invest in our people. That’s why we are where we are today.

We should be moving to first world, but have not recovered from the recession.

“We continue to destroy our environment with the way we produce energy, we are not self-sufficient in food, we have no food security, none. We have failed to take advantage of our location. We have a dirty country. Nassau smells bad.”

TILLERSON SAYS US HAS DIRECT CHANNELS TO TALK TO NORTH KOREA

By CHRISTOPHER BODEEN AND MATTHEW PENNINGTON Associated Press BEIJING (AP) — U.S. Secretary of State Rex Tillerson acknowledged on Saturday that the United State is maintaining direct channels of communications with North Korea even as tensions rise over the North’s nuclear and missile programs and the countries’ leaders spar through bellicose name-calling.

Tillerson said the U.S. was probing North Korea’s willingness to talk, and called for a calming of the situation on the Korean Peninsula, adding it was incumbent on the North to halt the missile launches.

“We have lines of communication to Pyongyang.

We’re not in a dark situation, a blackout,” Tillerson told reporters during a visit to China. “We have a couple ... three channels open to Pyongyang. We can talk to them, we do talk to them.”

No elaboration about those channels or the substance of any discussions came from Tillerson, who met with Chinese President Xi Jinping and other top officials in Beijing.

While Tillerson affirmed that the U.S. would not recognize North Korea as a nuclear power, he also said the Trump administration had no intention of trying to oust Kim. “Despite assurances that the United States is not interested in promoting the collapse of the

current regime, pursuing regime change, accelerating reunification of the peninsula or mobilizing forces north of the DMZ, North Korean officials have shown no indication that they are interested in or are ready for talks regarding denuclearization,” U.S. State Department spokeswoman Heather Nauert said in a statement.

The Korean Peninsula remains in a technical state of war, and the Demilitarized Zone divides North and South Korea.

Since President Donald Trump took office in January, the U.S. has restored a diplomatic back-channel between the State Department and North Korea’s mission at the United Nations.

THE TRIBUNE

Monday, October 2, 2017, PAGE 5

General insurers fear Govt ‘over-regulation’ From pg B1 There is no big risk in general insurance from money laundering. We have to make sure they don’t overregulate a risk that doesn’t exist. That’s the problem.”

While criminal and terror-related proceeds could conceivably be laundered through insurance premiums on luxury real estate, automobiles and other assets, these funds could only be recovered if the underlying assets are damaged or writtenoff - something that would produce no gain for those behind such schemes.

Patrick Ward, Bahamas First’s president and chief executive, declined to detail his company’s concerns because the draft Financial Transactions Reporting Bill was still being reviewed internally.

However, he acknowledged that the legislation as crafted would impact Bahamas First’s customer due diligence processes and “the amount of reporting that has to be done”.

“There are several people that need to review it because of the operational impact,” Mr Ward said of the Bill. “It will definitely be a change and something we have to be aware of in terms of the operational impact.”

He and Mr Saunders were speaking out after Carl Bethel, the attorney general, confirmed to Tribune Business last week that the general insurance industry would be among those impacted by the Government’s planned legislative response to the deficiencies identified by the Caribbean Financial Action Task Force’s (CFATF) July 2017 report.

The CFATF, in its report, focused on the anti-money laundering inspections conducted by industry regulator, the Insurance Commission of the Bahamas (ICB), in 2012-2014.

Out of the 10 companies inspected in 2012 and 2013, two were found to be ‘poor’, and another two ‘very poor’, in terms of compliance with regulatory requirements.

“In 2014, seven insurers were considered to be ‘good’ or ‘acceptable’, one ‘poor’ and one ‘very poor’,” the CFATF report said.

“However, these ratings were seemingly contradicted by the fact that the ICB informed the assessment team that no anti-money laundering/ counter terrorism financing breaches were detected in the period 2012-2015.”

Mr Bethel, singling out property and casualty insurance in particular, said: “There are changes foreshadowed that might affect portions of industries that, prior to this, have not had a high focus for anti-money laundering and counter-terrorism financing.

“These areas have not been focused on,” the Attorney General continued, “but internationally you block one area, someone goes to another and, more and more, general insurance is thought of as a venue for hiding or a bellwether area.

“If John, who works on the dock, goes to an insurer seeking to insure his home in the name of a company for $10 million, the insurance company being asked to provide that coverage will say: ‘Something is not quite right here. I know

John; he works at a conch shack on the dock. Where did he get $10 million to buy a house?’ Even in the general insurance industry there are instances of money laundering and questionable cash flows.”

Mr Bethel, though, conceded that the proposed Financial Transactions Reporting Bill was “very much up for discussion right now” via consultation with the insurance industry and other sectors set to be impacted by the amendments.

“It’s an element of good governance,” he added of the consultation. “It’s bad policy to legislate without consulting the affected parties.”

The fear among Bahamian property and casualty insurers, though, is that the proposed increase in compliance costs and paperwork is not justified by the ‘low’ risk they present in terms of vulnerability to abuse by money launderers and terror financiers.

By defining the sector as ‘financial institutions’ under the Bill, the subsequent increase in bureaucracy and ‘red tape’ will increase administrative time and expenses, the latter of which will inevitably be passed on to consumers through increases in already-high premiums.

This is a scenario familiar to many other Bahamian financial services sectors since 2000, when the Financial Transactions Reporting Act was first introduced as part of the legislative package to escape the ‘blacklisting’ by the CFATF’s parent, the Financial Action Task Force (FATF).

Emmanuel Komolafe, the Bahamas Insurance Association’s (BIA) chairman, told Tribune Business the industry had been informed that the proposed

legal changes were sparked by the CFATF’s report.

He added that the BIA, which received the draft Financial Transactions Reporting Bill from the Insurance Commission of the Bahamas (ICB) on September 19, had initially been given until today just two weeks - to provide feedback and content.

The Association subsequently requested an extension to end-October given “the notable impact” the changes will have for general insurers, with the ICB subsequently agreeing to a revised October 20 deadline.

“One thing is certain: It will impact the compliance costs for general insurers because you have a number of things you have to do,” Mr Komolafe told Tribune Business.

“At a minimum you will have to have a qualified compliance officer and money laundering reporting officer. You will also have to have a risk-rated anti-money laundering and counter terror financing regime.

“This will impact the way general insurers onboard

clients, ‎conduct KYC (Know Your Customer), ongoing monitoring and, by extension, their operations as a whole.”

Mr Komolafe said the legislation, if enacted as is, will require property and casualty insurers to establish risk profiles for their clients based on type of product, their home address and previous history.

“They’ll have to put all that in place and have transaction monitoring,” he added. “These are not new for the insurance industry, but for general insurers this is a new paradigm from a compliance perspective.”

Mr Komolafe said general insurance industry players would already have some of these elements in place, and added: “There seems to be a consensus in the industry that it....will have cost implications for general insurers. There is also a need for standardisation and a proper transition period.

“The BIA (and the insurance industry ‎as a whole) is committed to ensuring that the Bahamas remains a competitive and wellregulated international

NOTICE

NOTICE is hereby given that CAVALL OBILE DANIEL ANTON WATSON of P.O. Box SS-19850, Clarke Lane off Mackey Street, Nassau, 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 2nd day of October, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that TINA SHAE ANTONEA HERON-WATSON of P.O. Box SS-19850, Faith Gardens and Collins Drive, Nassau, 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 2nd day of October, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

financial centre (IFC). We will be working with the ICB and Government in the days ahead for the best interest of our industry and nation.”

The Financial Transactions Reporting Act already treats life insurers as ‘financial institutions’, given that the long-term nature of their business - and especially annuity products - is considered susceptible to money laundering. The threshold triggering Know Your Customer (KYC) due diligence is currently $2,500 in annual aggregate premiums.

However, Mr Komolafe said the new Bill appeared to contain “new requirements for the entire industry relating to the risk assessments, due diligence on beneficiaries and internal controls in a group of entities which have been incorporated into law”.

He called for the Insurance Commission (ICB0

to provide guidelines on how the changes will work in practice, adding that “certain details have to be worked out”.

“In the absence of the accompanying regulations and proposed amendments to the ICB’s anti-money laundering/counter terror financing guidelines, it is difficult to fully comment on the Bill or assess its full impact,” the BIA chairman said.

“The devil is in the details, and we will have to review these documents to determine exactly how this will be implemented or work in reality.”

Mr Komolafe said the BIA’s legislation committee was reviewing the Bill and compiling feedback, and he called for the Government and financial services regulators to also issue the 2000 legislation so the industry could compare the provisions in each and identify “gaps”.

NOTICE 2017 ANNUAL GENERAL MEETING OF SHAREHOLDERS OF COLINA REAL ESTATE FUND LIMITED NOTICE IS HEREBY GIVEN that the annual general meeting of shareholders of Colina Real Estate Fund Limited will be held at the J. W. Pinder Building, Colina Insurance Limited, 21 Collins Avenue, Nassau, Bahamas on Wednesday, the 4th day of October, 2017 at 5:30 p.m.

The Company’s 2016 Annual Report may be viewed online at: www.colinarealestatefund.com

PAGE 6, Monday, October 2, 2017

THE TRIBUNE

Trump’s health secretary resigns in travel flap www.ub.edu.bs

VACANCIES Suitably qualified candidates are invited to submit applications for the following positions at University of The Bahamas.

MIDDLE MANAGEMENT Executive Director, Small Business Development Centre responsible for implementing a Small Business Development Centre Model in The Bahamas based on a Memorandum of Understanding signed between the Government of The Bahamas through the Ministry of Finance and the Organization of American States.

The Executive Director will provide strategic and operational leadership; design, promote and deliver training, outreach programmes and support for small and medium-sized business owners; liaise with UB internal and external stakeholders; plan and develop budgets, monitor expenditures and operations and provide oversight for the UB Oakes Field Campus and UB-North Small Business Development Centres.

The preferred applicant will possess an earned Ph.D. in business from an accredited academic institution with two to three years teaching and relevant industry experience in the small to medium sized business sector. The minimum education and experience requirements are a Master’s degree in business or a related field with five to ten years’ strong administrative experience providing support and training for small and medium-sized businesses. Previous business ownership is desirable.

Materials should be submitted electronically to the attention of the Office of the Provost, University of The Bahamas via e-mail at facultyapply@ub.edu.bs.

Forward all documents together, including: 1) cover letter describing philosophy and vision; 2) curriculum vitae; 3) official copy of all academic records; 4) three letters of recommendation; and 5) a UB application form accessible at: http://www.ub.edu.bs/wp-content/uploads/2016/10/UB-Application-forEmployment-Faculty.pdf .

Application deadline: Monday, 16th October 2017.

Clinical Psychologist responsible for the psychological assessment, diagnosis, counselling, individual and group therapy, case management services, referral, testing and evaluation of students and maintaining a warm, friendly and supportive environment for students, staff and faculty. Further duties and responsibilities include: developing, implementing, and monitoring psychological services; conducting interviews, psychological assessments and observations of individuals and groups; liaising with other health and social services personnel, from a range of agencies, in the care provided to clients and planning and undertaking clinical audits, service evaluations or practice-based research, using appropriate methodology and statistical procedures as appropriate.

Applicants must possess a doctorate in Clinical Psychology or Educational Psychology.

Possession of Psychologist license is preferred or meets licensure requirements.

Application deadline: Friday, 13th October 2017.

Assistant Director, Residential Life & Student Advocacy Services UB-North (in Grand Bahama) responsible for the management and coordination of the new residential facility towards creating a highly effective and engaging residence hall environment. The Assistant Director will also be responsible for developing and administering programmes and services to support the personal, social, and emotional well-being of students as they progress towards attaining their education at UB-North. Among the duties are: supervising and developing the Resident Assistants programme including selection, recruitment and training; serving as student conduct administrator, conflict mediator and providing intervention counseling to campus residents; assessing University housing occupancy, retention, and projection trends and developing a comprehensive programme that supports the social and emotional well-being of students. Applicants must have a Master’s degree in higher education administration, counseling, physical education, or a related field; supplemented with five (5) years of related experience in increasingly advanced supervisory roles in student leadership and youth programming and development AND must have or be able to attain AED, CPR and First-Aid certifications through a nationally recognized organization.

Application deadline: Friday, 13th October 2017. responsible for creating and Disabilities and Compliance Officer maintaining a safe, inclusive and supportive environment for all students with disabilities; providing leadership and administrative management to the Students with Disabilities Unit and advocating for students with disabilities to ensure that they have equal access to all programmes, services and activities that the University provides. Further duties and responsibilities include: ensuring compliance with University policies on disabilities; liaising with the business community, government ministries, boards and agencies on matters pertaining to students with disabilities; developing policies and procedures that promote disability inclusion and universal design in programmes, services and facilities and writing grant proposals to receive funding for initiatives that support the creation of more usable, inclusive and sustainable learning environments for students with disabilities.

Applicants with a Master’s degree from an accredited university in Rehabilitation Counselling, Special Education or related field, or Bachelor’s Degree in Management, Public Administration, Rehabilitation or related field WITH a minimum of 2 years’ experience and/or training in disability studies, disability policies and services, disability compliance or closely related fields.

Application deadline: Friday, 13th October 2017.

STAFF Administrative Assistant II, Student Affairs UB-North (in Grand Bahama) responsible for providing administrative support for the Division of Student Affairs’ administration team. The Administrative Assistant will play a key role in supporting the pioneering work of developing the division of Student Affairs at UB-North and will provide direct support to the Dean of Students and Student Affairs personnel.

Duties include: managing the Dean of Students’ calendar and schedule, prioritizing appointments and proactively resolving conflicts; assisting with the general oversight and management of all division budgets in collaboration with department heads and in preparation for annual budget proposals; completing special projects and other duties as assigned and reviewing all incoming and outgoing documents for the Dean of Students’ signature to ensure compliance with divisional and university guidelines.

Applicants must possess a Bachelor’s degree in Business Administration or the equivalent, AND at least four (4) years’ post-qualification work experience.

Application deadline: Friday, 13th October 2017.

Administrative Assistant I responsible for assisting the Director of Student Leadership with the overall day-to-day management of the office and campus relations. Duties include: assisting with the planning of Student Leadership events; attending meetings and taking notes of discussions held and decisions made for distribution to relevant persons; undertaking research and/or follow-up activities, providing administrative support related to special projects; maintaining an accurate filing system and assisting in the coordination of fundraising activities.

A Bachelor’s Degree or the equivalent with no work experience, or an Associate Degree in relevant area with ten (10) years’ work experience is required.

Application deadline: Friday, 13th October 2017.

For more information on each position announcement visit: https://www.ub.edu.bs/about-us/career-opportunities/ .

Persons interested in any of these positions should submit to the attention of the Vice President, Human Resources, University of The Bahamas, via email the following documents: • A completed University of The Bahamas Application for Employment; • A cover letter of interest highlighting work experience and accomplishments relevant to the position; • Current Curriculum Vitae or Resume; • Copies of Relevant Qualifications and Certificates; • Copy of the relevant pages of a valid passport showing passport number, photo identification and expiration date; • Copy of N.I.B Card; • One passport photo; • Copy of official transcript • At least three, written professional references

By RICARDO ALONSOZALDIVAR AND JONATHAN LEMIRE Associated Press WASHINGTON (AP) — President Donald Trump’s health secretary resigned Friday, after his costly travel triggered investigations that overshadowed the administration’s agenda and angered his boss. Tom Price’s regrets and partial repayment couldn’t save his job.

The Health and Human Services secretary became the first member of the president’s Cabinet to be pushed out in a turbulent young administration that has seen several highranking White House aides ousted. A former GOP congressman from the Atlanta suburbs, Price served less than eight months.

Publicly, Trump had said he was “not happy” with Price for repeatedly using private charter aircraft for

official trips on the taxpayer’s dime, when cheaper commercial flights would have done in many cases.

Privately, Trump has been telling associates in recent days that his health chief had become a distraction. Trump felt that Price was overshadowing his tax overhaul agenda and undermining his campaign promise to “drain the swamp” of corruption, according to three people familiar with the discussions who spoke on condition of anonymity.

On Friday the president called Price a “very fine person,” but added, “I certainly don’t like the optics.”

Price said in his resignation letter that he regretted that “recent events have created a distraction.”

The flap prompted scrutiny of other Cabinet members’ travel, as the House Oversight and Government Reform committee launched a governmentwide investigation

of top political appointees.

Other department heads have been scrambling to explain their own travel.

Price’s repayment of $51,887.31 for his own travel costs did not placate the White House. The total travel cost, including the secretary’s entourage, was unclear. It could amount to several hundred thousand dollars.

An orthopedic surgeon turned politician, Price rose to Budget Committee chairman in the House, where he was known as a fiscal conservative. When Price joined the administration, Trump touted him as a conservative policy expert who could write a new health care bill to replace the Obama-era Affordable Care Act. But Price became more of a supporting player in the GOP’s futile health care campaign, while Vice President Mike Pence took the lead, particularly with the Senate.

THE TRIBUNE

Monday, October 2, 2017, PAGE 7

IMF: Bahamas bank fees rise up to 186% From pg B1 increased by between 8 per cent to 186 per cent over the last five years.

This represents the highest increase in the Caribbean, although both the IMF and Central Bank rated the ‘de-risking’ impact on the Bahamas to-date as ‘low’ when compared to other nations in the region.

“Based on a recent survey by the Central Bank of the Bahamas, a total of 14 institutions (about 25 per cent of survey respondents), comprising three domestic commercial banks, one money transmission service provider, and 10 international banks, have been affected or impacted by the withdrawal of correspondent banking relationships,” the IMF paper said.

“Thus far, there is no evidence of significant impact on the domestic financial system as a whole, or on financial intermediation in the domestic economy.

This reflects the dominant role of Canadian-owned banks, which hold almost 70 per cent of total banking system assets and have not lost any correspondent banking relationships.

Financial institutions that were not able to replace lost correspondent banking relationships, continued to rely on existing correspondent banking relationships or their parent companies for correspondent banking services.”

Instead, the IMF paper said the private sector and individual Bahamians had felt the impact in higher transaction fees, with banks incurring increased time and compliance costs

in a bid to maintain their relationships with US and other industrialised-world institutions.

“Banks report higher investment and staffing costs stemming from additional reporting requirements and scrutiny; disruptions in services to money service providers; impact on cheque clearing, trade finance, international wire transfers, and cash management transactions; as well as sometimes sizeable increases in customer fees,” the IMF paper said.

“Fees for wire transfers have increased about 20 per cent on average over the last five years. A majority of financial institutions rely on few (one to four) correspondent banking relationships, suggesting vulnerability to further losses.”

Banking fees, and real or perceived increases in them, are an especially sore and sensitive issue for many Bahamians. A senior Royal Bank of Canada (RBC) executive said last week that fees had increased in line with the drop in loan interest income, as banks bid to cover their costs in a depressed economic environment.

International pressures, though, are clearly another factor.

Correspondent banks are those that allow Bahamian financial institutions to provide services in their home countries, using their physical and electronic banking infrastructure. They give Bahamian banks, and their clients, access to the international capital markets and financial system, enabling transactions to clear and be settled on a timely

basis, and foreign currency deposits to be taken.

Banks in major industrialised countries have embarked on an increasing trend of severing correspondent relationships with foreign banks, and the Caribbean region is among those that have been most heavily impacted.

The move is being driven by the ‘risk/reward’ analysis, with developed country banks perceiving correspondent relationships with their Caribbean counterparts as too ‘high risk’ when measured by the financial rewards.

They are particularly concerned that Caribbean banks are susceptible to financial abuses, such as money laundering and terror financing, which could lead to financial sanctions being imposed on themselves by home country regulators.

Correspondent bank ‘de-risking’ has potentially major ramifications for the wider Bahamian economy, given that this nation’s model is that of an international business and financial services provider, which also imports the majority of what it consumes.

Bahamian banks rely on foreign correspondents to clear foreign currency transactions and payments on behalf of their clients, and increased de-risking threatens to cut off local businesses from international finance, trade and commerce, undermining the economy’s very existence.

The Bahamas’ ‘trade openness’ was said to be equivalent to 100 per cent of GDP between 2011 and 2015, due largely to tourism receipts standing at 27 per

cent of economic output - the highest in the Caribbean. Net foreign direct investment inflows averaged around 11 per cent of GDP over the same period, the third highest in the Caribbean.

While the value of Bahamian bank cross-border operations had dropped by between 25-30 per cent between 2011 and 2015, the third-highest drop in the Caribbean, the volume had increased by 28 per cent the second biggest jump.

This, the IMF paper said, implied a near-50 per cent drop in average transaction value.

The IMF paper said “the largest fallout” from correspondent banking ‘de-risking’ had been felt in the Bahamas’ international financial services sector, which “has been shrinking” due to uncertainty associated with global regulatory initiatives and decline in clients’ risk appetite.

“Global trends of withdrawal of correspondent banking have led to even more scrutiny, further reducing the sector’s contribution to growth and employment, and thus complicating efforts to diversify the economy,” it warned.

Foreign banks’ risk perceptions were identified as a major factor behind Bahamian banks losing correspondent relationships. The IMF paper adds: “Anecdotal evidence suggests that international correspondent banks are uncomfortable providing services to domestic banks that do business with either money transmission businesses (MTBs) or online gaming operators (so called web shops), which are perceived as a higher

anti-money laundering/ counter terror financing risk.

“Smaller, standalone financial institutions with fewer international transactions, in both domestic and international sectors, have been more vulnerable. The general view is that in several cases the costs of anti-money laundering/counter terror financing compliance outweigh the profits generated by correspondent banking services, making it particularly difficult for smaller local institutions with fewer international transactions to maintain their correspondent banking relationships.”

YOUR

To tackle the problem, the IMF paper urged the Bahamas to swiftly tackle deficiencies in its antimoney laundering/counter terror financing regime that were identified in the July 2017 Caribbean Financial Action Task Force (CFATF) report.

“Looking forward, authorities should ensure strong compliance and take a proactive approach to strengthening implementation,” the IMF paper said.

“Continued evaluation of the supervisory and regulatory framework for both banks and non-banks to proactively identify and address risks in a timely and assertive manner is critical.”

CHOICE FOR THE FAMILY @JOYFMBAHAMAS WWW.FACEBOOK.COM/JOYFM1019

EMPLOYMENT OPPORTUNITY FOR

NOTICE

MARINA MANAGEMENT

TALINA POINT LTD.

A major New Providence marina is seeking a General Manager and Assistant Manager.

NOTICE is hereby given that in accordance with the relevant provisions of the International Business Companies Act, 2000, Talina Point Ltd. has been dissolved and struck off the Register according to the Certificate of Dissolution issued by the Registrar General on the 5th day of September, A.D., 2017.

Dated the 28th day of September, A.D., 2017.

Beatus Limited Liquidator

NOTICE LABRANYA INVEST LTD. NOTICE is hereby given that in accordance with the relevant provisions of the International Business Companies Act, 2000, Labranya Invest Ltd. has been dissolved and struck off the Register according to the Certificate of Dissolution issued by the Registrar General on the 5th day of September, A.D., 2017.

Dated the 28th day of September, A.D., 2017.

Beatus Limited Liquidator NOTICE ZAKI INVEST LTD. NOTICE is hereby given that in accordance with the relevant provisions of the International Business Companies Act, 2000, Zaki Invest Ltd. has been dissolved and struck off the Register according to the Certificate of Dissolution issued by the Registrar General on the 5th day of September, A.D., 2017.

Dated the 28th day of September, A.D., 2017.

Beatus Limited Liquidator

Qualified applicants require: -Minimum 5 years’ experience managing marinas -Experience managing fuel dock operations -Budgeting and reporting experience -Excellent leadership skills Compensation will be commensurate with experience.

All interested parties must email CV to marinamanager@hotmail.com

PAGE 8, Monday, October 2, 2017

THE TRIBUNE

Oil explorer’s boost for ‘faster’ farm-in partner conclusion From pg B1 with five groups having completed or scheduled visits to conduct due diligence on its database during the 2017 second half.

With the global oil industry having seemingly accepted $50 per barrel as the ‘new norm’, Mr Potter said the renewed interest

in BPC’s Bahamian licenses had been given further impetus by a recent oil discovery off Guyana and a successful offshore licensing round for acreage off Mexico’s Gulf coast.

“There’s a broad kind of interest in the prospects in our region, so things are progressing,” the BPC chief told Tribune Business

of the farm-in partner search. “This review process [by potential partners] takes quite a long time, and with the oil price stabilised at $50, it’s obviously a bit lower than it used to be at $100 per barrel.

“Companies are a lot more careful, and there’s a lot more due diligence and governance rules in the process. We’d like it faster, but it is what it is. It’s a market. We don’t dictate it; it’s dictated to us, but we’re progressing.”

The 12-month extension granted to BPC’s license last March gave the company until April 2018 to spud, or drill, its first exploratory well in waters south-west of Andros near the maritime border with Cuba.

The oil exploration firm has always wanted to secure a joint venture partner to share the financial, and technical, burden of that first exploratory well, with the search now lasting several years.

With the April 2018 deadline fast approaching, and now just seven months away, Mr Potter refused to be drawn on whether BPC would seek another license extension should it be unable to seal a joint venture partnership in time.

He reaffirmed, though, that BPC was determined to fulfill its obligations to both the Bahamas and its shareholders.

“We clearly, on behalf of the shareholders, want to see a well as soon as possible,” Mr Potter told Tribune Business. “That has always been a target, and will always be a target.

The timing of that we don’t control ourselves.”

BPC, in unveiling its 2017 half-year results on Friday, said many potential joint venture partners had “undertaken substantial technical and commercial due diligence” on seismic and other seabed data indicating the likelihood of finding commercial quantities of oil in Bahamian waters.

“We have continued to progress our efforts to secure a partner, despite the European summer holidays in August and the considerable disruptions to regional business activity caused by Hurricanes Harvey (which largely affected Houston) and Irma (affecting most of the Caribbean),” BPC told shareholders.

“This has included executing several new NonDisclosure Agreements with parties interested in reviewing the investment

ADVERTISE TODAY! CALL THE TRIBUNE TODAY @ 502-2394

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

BISX ALL SHARE INDEX: CLOSE 1,865.88 | CHG -0.03 | %CHG 0.00 | YTD -72.33 | YTD% -3.73 BISX LISTED & TRADED SECURITIES 52WK HI 4.38 19.17 9.09 3.70 1.96 0.15 6.47 8.60 6.30 10.61 14.49 2.52 1.60 6.00 10.00 11.00 3.45 7.25 12.51 11.00

52WK LOW 4.05 17.43 8.19 3.50 1.26 0.12 3.80 8.40 5.83 9.46 10.00 2.18 1.50 5.80 8.75 7.01 3.35 6.61 11.93 10.00

1000.00 1000.00 1000.00 1000.00

900.00 1000.00 1000.00 1000.00

PREFERENCE SHARES

1.00 105.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 105.00 100.00 100.00 10.00 1.00

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 Famguard Fidelity Bank Finco Focol ICD Utilities J. S. Johnson Premier Real Estate Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B

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

52WK LOW 100.00 100.00 100.00

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

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

SYMBOL FBB17 FBB18 FBB22

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

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

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

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

MUTUAL FUNDS 52WK HI 2.09 3.96 1.97 170.77 146.34 1.50 1.67 1.58 1.10 6.99 8.54 6.15 10.52 11.46 10.46

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

LAST CLOSE 4.28 17.43 9.09 3.65 1.39 0.15 3.92 8.60 6.10 10.51 10.01 2.59 1.55 6.00 9.75 7.08 3.45 7.01 12.50 10.00 1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00 LAST SALE 100.00 100.00 100.00 108.84 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

CLOSE 4.28 17.43 9.09 3.65 1.39 0.15 3.92 8.60 6.10 10.51 10.01 2.56 1.55 6.00 9.75 7.08 3.45 7.01 12.50 10.00

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

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

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 100.00 100.00 100.00

CHANGE 0.00 0.00 0.00

108.89 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

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

VOLUME

2,000

VOLUME

NAV 2.09 3.95 1.97 174.30 146.25 1.50 1.63 1.58 1.08 6.92 8.03 6.15 10.52 11.46 10.01

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

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

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

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

P/E 9.2 18.7 N/M 6.8 N/M N/M -4.6 15.0 9.0 19.5 17.9 25.1 3.4 5.0 12.7 12.3 3.7 -11.6 17.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

YIELD 1.87% 5.74% 0.00% 5.75% 0.00% 0.00% 0.00% 3.49% 3.61% 3.43% 5.69% 2.34% 3.87% 4.83% 4.62% 0.00% 9.86% 2.00% 4.96% 0.00% 0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%

INTEREST 7.00% 6.00% Prime + 1.75%

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

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

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

YTD% 12 MTH% 2.92% 4.43% 0.98% 1.19% 1.54% 2.45% 3.48% 4.01% 3.17% 7.00% 2.15% 4.22% -1.93% -1.89% 0.81% 2.21% 2.28% 1.30% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69%

NAV Date 31-Aug-2017 31-Aug-2017 25-Aug-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 31-May-2017 30-May-2017 30-May-2017 30-May-2017 30-May-2017 30-May-2017

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

agencies); increasing levels of wealth inequality; ballooning fuel prices; and the exposure of infrastructure to weather damage, as highlighted recently by the devastating impact of hurricane Irma across the Caribbean.

Over the last few months the company has met with representatives of the new administration, our goal being to ensure that the company’s activities - and the significant potential economic and social benefits the company’s project offers to the Bahamas are fully understood and supported.

Developing a successful oil and gas industry remains a tenet of energy policy for the new government, and we believe that the positive economic impact our project could have is well appreciated.”

Mr Potter reiterated to Tribune Business: “In the event of success, we could make a considerable difference to the economy of the Bahamas.” He added that BPC was “encouraged by the nature of the talks” held with the Minnis administration to-date.

BPC has been speaking to specialist investment banks to broaden the range of potential joint venture partners, as well as engaged external expects to perform an audit of its data to verify - and add credibility to - its estimates of recoverable commercial oil quantities in the Bahamas.

The company raised an additional $3.5 million in cash, via a share placement, in June-July 2017 to ensure it has the necessary financial resources to cover operations for the next 12 months.

“The operating loss for the period to 30 June, 2017, was down 23 per cent on the comparative six-month period, and 14 per cent on the prior year result (on an annualised basis),” BPC said.

“This result, combined with the 16 per cent reduction in employee benefit expense compared with the prior interim period, demonstrates the effects of continued cost restraint at all levels of the business.”

NOTICE

MARKET REPORT FRIDAY, 29 SEPTEMBER 2017

opportunity, five new parties undertaking or scheduling due diligence visits to assess the company’s technical database, and commencement of dialogue with various industry intermediaries to broaden the scope and reach of the company’s efforts.”

BPC continued: “At the same time, discussions have continued with those parties that had already undertaken substantial technical and commercial due diligence......, our hope being to progress one or more party to the next stage of the process (nonbinding term sheets) in the next couple of months.”

Securing a joint venture partner is now critical to BPC’s efforts to move its exploration efforts forward, and Mr Potter told Tribune Business that recent industry developments - globally and regionally - had provided new hope.

Apart from global oil prices stabilising at a level the industry has become accustomed to, Mr Potter said there had also been exploration success via recent discoveries in Guyana and West Africa.

He added that this, together with recent successful exploration licensing rounds, especially in the Mexican Gulf, had renewed exploration enthusiasm worldwide and, particularly, in the Caribbean.

“What it’s done is create quite an interest around the broader Caribbean region, so certainly that broader region of which we’re part is quite buoyant from an exploration standpoint,” Mr Potter said.

BPC’s half-year results statement was not slow to emphasise the potential benefits of a successful oil discovery to the Bahamian government’s fiscal position, given the potential royalties and other payments that would become due.

“The immediate focus of the new government is to address a number of urgent issues facing the nation,” BPC said. “A current year fiscal deficit of over $600 million; $7 billion in existing government debt (rated at junk level by two out of the three major rating

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

NOTICE is hereby given that CAVILLE OBILLE DUNIEL AMTON WATSON of P.O. Box SS-19850, Faith Gardens and Collins Drive, Nassau, 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 2nd day of October, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

PAGE 10, Monday, October 2, 2017

Trump advisers insist tax cut proposal won’t favour rich

By JILL COLVIN Associated Press BEDMINSTER, New Jersey (AP) — President Donald Trump’s top advisers said Sunday his proposed tax plan would not cut taxes disproportionately for the rich — despite an early non-partisan analysis that says it will.

The White House and congressional Republicans released the broad strokes of a plan last week that would dramatically cut corporate tax rates from 35 percent to 20 percent, reduce the number of personal income tax brackets and boost the standard deduction.

The Tax Policy Center of the Urban Institute and Brookings Institution released an analysis Friday that found the plan would deliver 50 percent of its total tax benefit to taxpayers in the top 1 percent, those with incomes above $730,000 a year.

But White House budget director Mick Mulvaney told CNN’s “State of the Union” it was too early for analysts to gauge that figure because the plan leaves

PRESIDENT Donald Trump puts his hand on the shoulder of Treasury Secretary Steve Mnuchin as he is greeted by people as he steps off Air Force One, Wednesday, Sept. 27, 2017, in Indianapolis.

(AP Photo/Alex Brandon)

out for now many crucial details, such as which income levels the new tax brackets would apply to.

“In fact, I don’t think anybody can. And anybody who says they can is simply lying to you,” Mulvaney said. “It is impossible to sit down and say, this will be the impact on this wage earner or this family at this particular time.”

Still, that didn’t stop Trump from doing just that during a speech in Indiana last week pitching the

plan. In his remarks, Trump pointed to a number of locals, including Jonathan Blanton, an industrial janitor from Greentown, who earns a combined $90,000 a year with his wife.

“Under our tax plan they would have saved more than $1,000, and it could be substantially more,” Trump told the crowd. “And that’s just on federal taxes.”

Trump has also insisted that the plan wouldn’t reduce his personal tax bills, telling supporters: “It’s not good for me. Believe me.”

The plan includes a number of provisions that favor the rich, including cutting the top income tax rate, getting rid of the alternative minimum tax, and eliminating the federal estate tax. Under current law, the first $11 million of an estate is exempt for a married couple, meaning only the wealthiest Americans pay it.

But Treasury Secretary Steve Mnuchin told NBC’s “Meet the Press” that Trump’s goal is to boost jobs

and lower the tax burden for the middle class.

“The president has been very clear. And I’ve been clear from the beginning. Our objective is not to create tax cuts for the wealthy. Our objective is about creating middleincome tax cuts,” he said.

In a separate appearance on ABC’s “This Week,” Mnuchin was asked whether he could guarantee Trump would not get a tax cut under his plan.

“Again, as I’ve said all along, the objective of the president is that rich people don’t get tax cuts. And we’re perfectly comfortable, as we go through this process, we’ll explain to the American public how that works,” Mnuchin said.

The Tax Policy Center and Brookings found that, under the plan, the after-tax incomes of the wealthiest Americans would increase 8.5 percent next year.

For other taxpayers, though, the benefits are far more modest or nonexistent, the report finds.

Taxpayers in the bottom 95 percent would see tax cuts averaging 1.2 percent of after-tax income or less next year.

THE TRIBUNE

OFFICIAL SURVEY: CHINA FACTORY ACTIVITY RISES TO 5-YEAR HIGH

By KELVIN CHAN Associated Press HONG KONG (AP) — An official survey released Saturday said that China’s factory activity expanded last month at the fastest pace in five years, as the country’s vital manufacturing sector stepped up production to meet strong demand.

The official manufacturing purchasing managers’ index rose to 52.4 in September, up from 51.7 in the previous month and the highest level since April 2012.

The report by the Federation of Logistics & Purchasing said production, new export orders and overall new orders grew at a faster pace for the month.

“The manufacturing sector continues to maintain a steady development trend and the pace is accelerating,” said Zhao Qinghe, senior statistician at the National Bureau of Statistics, which released the data. Zhao noted that the report found both domestic and global demand have improved.

However, in a separate report, the private Caixin/ Markit manufacturing PMI slipped to 51.0 from 51.6, as factories reported that production and new orders expanded at slower rates last month.

Both indexes are based on a 100-point scale with 50 dividing expansion from contraction. But the federation’s report is focused more on large, state-owned enterprises while the Caixin survey is weighted to smaller, private companies.

Another official index covering non-manufacturing activity rebounded after two months of contraction, rising to 55.4 last month from 53.4 in August.