business@tribunemedia.net
MONDAY, OCTOBER 4, 2021
$5.10 PM urges US judge:
End pursuit of web shop boss By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Prime Minister has urged a US judge to end the federal authorities’ pursuit of Island Luck’s cofounder, writing: “I strongly advocate termination of proceedings against Mr Adrian Fox.” Philip Davis QC, in an August 10, 2021, letter to Judge Denise Cote, hailed Mr Fox’s role as a key player in efforts to legalise the Bahamian web shop sector, which he described as “an industry that long plagued our nation’s underground”. The letter, which was written just over a month
• Urges ‘termination of proceedings’ against Adrian Fox • Island Luck co-founder helped end ‘gaming underground’ • Ex-FBI agents, ministers all sing praises before sentence prior to Mr Davis’ election as Prime Minister, was filed in the southern New York district court on Friday as
one of many character references urging Judge Cote to impose a light, non-custodial sentence upon Mr
PHILIP DAVIS.
ADRIAN FOX. Fox over the role he played in a human smuggling operation more than a decade ago. Mr Fox’s plea deal with US authorities, which omits all mention of the human smuggling offences he was initially charged with, has resulted in him agreeing to plead guilty to one count of
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THE Ministry of Finance’s top official yesterday said The Bahamas’ planned $700m sovereign bond issue “has not stopped” with the Davis administration informed its early placement is “critical”. Simon Wilson, the financial secretary, told Tribune Business the new administration has issued no instructions to halt the foreign currency bond’s placement via the international capital markets.
“It’s there. They’re working on it. The team is working on it. It hasn’t stopped,” he said. “It’s very likely that process will continue. No instructions have been given to stop that work. That work is well advanced.” The bond, which was supposed to be placed by late September/early October 2021, was the centrepiece of the Minnis administration’s borrowing and financing plans. It was to account for 37.8 percent of the Government’s total $1.852bn gross borrowing forecast for the the 2021-2022 fiscal year, and was planned as
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Bahamas must counter punch on offshore leaks By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas was yesterday urged to “look for the positives in a not so positive situation” after this nation was named among the jurisdictions mentioned in the latest offshore finance data leak. Hubert Edwards, principal of Next Level Solutions, a Bahamas-based corporate governance and risk management consultancy, told Tribune Business that this nation must stop allowing critics to “hit us on the back leg all the time” after the International Consortium of Investigative Journalists (ICIJ) and its worldwide media partners published
the so-called “Pandora papers”. While the group alleged that its revelations provided a further insight into how world leaders, public officials, wealthy oligarchs and others exploited international financial centres (IFCs) to avoid taxes and hide ill-gotten gains, Mr Edwards argued that The Bahamas needed to counter-punch by defending its products, structures and presence in the financial services industry. While acknowledging that the “Pandora Papers” disclosure, and the inclusion of The Bahamas, “on the face of it could have some reputational damage”, he argued that the leaks appeared
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$5.01
Waterloo to hire 40 for end-month re-opening By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Gov’ts $700m bond: Early issue ‘critical’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
$5.13
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A POPULAR nightspot yesterday said it plans to hire around 40 people over the next month to facilitate its end-October/ early November re-opening in time for the Christmas season. Kevin Knowles, Club Waterloo’s principal, told Tribune Business that “people are craving to be out and socialising again” as he readies “to hire a whole new team” for the East Bay Street location following the nightly curfew’s push-back to a midnight start. Describing Club Waterloo’s return as “a fight” and “a long road”, Mr Knowles and his business were among the night-time operators frustrated by the former administration’s early curfews and associated COVID-19 measures. After adjusting its traditional nightclub/bar business model to cater to
outdoor dining, with seating for 100 guests, following the economy’s emergence from the first COVID-19 lockdown, Club Waterloo was then unable to obtain an answer from the Prime Minister’s Office on its proposal to cater to private parties featuring resort guests - most of whom were likely to be fully vaccinated. With this business niche the difference between opening and closing, Mr Knowles told this newspaper in June 2021 that Club Waterloo had no choice but to close yet again and furlough its then-50 to 60 staff in order to stem “unsustainable” operating losses. He hit out at the uneven “playing field” that allowed resorts to keep open similar amenities while Bahamianowned firms had to close. Now, with the newly-elected Davis administration narrowing the New Providence curfew to between 12 midnight and 5am as its first act upon
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PAGE 2, Monday, October 4, 2021
THE TRIBUNE
DEVELOPMENT BANK IN 100% ELECTRIC VEHICLE FUNDING OFFER THE Bahamas Development Bank (BDB) says it will provide 100 percent financing at low interest rates to enable businesses to purchase electric vehicles for their fleets. “Our role is to encourage economic diversification, and projects that support climate resilience are very important,” said the bank’s head of strategic development and initiatives, Sumayyah Cargill, while
confirming that the new incentive is now open for applications. “We realise that transitioning from gas to electric will involve capital costs up front but will result in savings to the bottom line over time.” Pia Farmer, managing director of Easy Car Sales , the first 100 percent electric vehicle (EV) dealership in The Bahamas, said of the BDB’s move: “This facility means that businesses who
adopt EVs can realise huge savings in fuel and service costs on day one. “Gas prices are now about $5 per gallon, but the cost of electricity to go the same distance is only $1 per e-gallon; that’s an 80 percent savings. When you are driving all day, every day, offering deliveries or services, that has a major effect on the profitability of your company. And EVs are simpler and cheaper to
maintain because there is no combustion engine, so they stay on the road, not in the garage.” According to a recent report by UHY Bain & Associates, a Bahamian accounting firm affiliated to the global UHY network, The Bahamas was ranked eighth in the world in 2020 for year-over-year electric vehicle sales growth. “The EV revolution is here, and picking up
speed,” said Mrs Farmer. “Financial incentives such as this from the Bahamas Development Bank will ensure continued growth in the market, better profits for our local businesses, and help in the economic recovery of or country, all while reducing harmful CO2 (carbon dioxide) emissions.” The BDB is the Government’s primary provider for industrial, agriculture and
commercial development, facilitating participation in approved enterprises while stimulating and enhancing The Bahamas’ economic development. Application forms are available on the BDB website, www.bdb.gov.bs, and on the Easy Car sales site, www.easy242.com.
REALTOR GETS CREATIVE WITH ART PARTNERSHIP A BAHAMIAN realtor says it is partnering with a Baha Mar-based art gallery to enable new property owners to outfit their purchases with authentic local art work. The initiative, developed by The Current at Baha Mar, aims to launch a service bringing local artists and their work closer to residential and commercial
property owners. John Cox, The Current’s creative art director, said: “The Current’s Black Glove Curatorial Services are built on what Baha Mar taught us about managing art in complex and dynamic spaces. “While curating the resort we worked with over 80 artists, using over 250 reproductions and 600
plus original works, which inspires our ability to execute any project. Whether it is a private home, office or commercial building, The Current team manages the whole curatorial process from consulting, production transport to installation.” Engel & Völkers, the realtor, is supporting the initiative by marketing properties along with
Bahamian art installations. The campaign will feature real estate opportunities along with virtual installations from many of the Bahamas’ top artists. Colin Lightbourn, Engel & Volkers broker, said: “With several hundred new condos coming out of the ground on Nassau and Paradise Island, we recognise that The Current’s
THE CURRENT’S BLACK GLOVE CURATORIAL SERVICE Black Glove Curatorial Service fills a void as most of these units are being sold unfurnished. “This is a first-of-its-kind opportunity for new owners to finish their interiors around the work of these incredible Bahamian art pieces. I expect that many real estate brokerages and developers will take advantage of this creative service for their clients.” The marketing will combine real estate renderings
with virtual art installations, promoting the synergy between real estate, the environment and local art. Works include both original and print works, and offer diverse options for style, price and lifestyle. Depending on whether it is a personal residence or a rental investment, owners can adjust the value and quality of the art they want to use to design their space.
ATLANTIS APPOINTS BAHAMIAN TO HEAD GOVERNMENT AFFAIRS ATLANTIS has named a Bahamian executive with more than 20 years’ financial and tourism industry experience as its senior vice-president of government affairs and special projects. Vaughn Roberts will lead Atlantis’ government affairs initiatives at the strategic and operational level, along with special projects. “We are thrilled to welcome Vaughn,” said Audrey Oswell, Atlantis’ president and managing director. “His depth of knowledge, and strong financial and hospitality background, will support Atlantis as our business develops new strategies to manoeuvre through this current business climate.” “I am excited to join the outstanding team at Atlantis, and to represent a company with such a rich history of remarkable hospitality,” added Mr Roberts. He has led finance and accounting functions, managed cross-functional teams and multi-faceted projects, and advised boards and top executives on complex transaction financing options and various strategic alternatives. Mr Roberts most recently served as the senior vicepresident of finance, administration and capital projects with Ocean Reef Club in Key Largo, Florida. He was primarily
responsible for finance capital investments, information technology, facilities management and strategic planning. He also previously served as senior vice-president of finance and corporate alliances with Baha Mar. At Baha Mar, he led the financial reporting, planning and analysis, treasury and risk functions, and contributed to retail and food and beverage programming, critical path planning, procurement and contract negotiations. Earlier in his professional career, Mr Roberts held investment banking, consulting and accounting positions in the US with KPMG, Lehman Brothers, Bank One and Dresdner Kleinwort. He also led the downtown Nassau revitalisation efforts from 2009 to 2011 as the inaugural managing director of the Downtown Nassau Partnership (DNP). Mr Roberts serves as chairman of the board of Friends of the Arts in The Bahamas. He also serves on the board for The Bahamas Hotel Industry Management Pension Fund, the Charitable Arts Foundation, and the Downtown Nassau Partnership. He previously served as chairman of the National Sports Authority of The Bahamas, and as a member of the AML Foods Board.
VAUGHN ROBERTS SR.
THE TRIBUNE
Monday, October 4, 2021, PAGE 3
TOURISM BACK TO 85% PRE-COVID IN AUGUST By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net AUGUST tourism numbers were down just 15 percent compared to 2019’s pre-COVID levels, the Ministry of Tourism’s director-general said, amid hopes that more investments are in the pipeline. Joy Jibrilu, the Ministry of Tourism’s director-general, told Tribune Business that The Bahamas’ tourism arrivals were “strong” and down just 15 percent from 2019, “way ahead of the regional trend”. “This took everyone by surprise,” she said. “September and October are trending soft, but that’s
anticipated. We know that weather events impact on those months, and therefore people don’t travel as much. But we’re seeing a strong November and December, and that means we’re going to have a much better year than anyone could have ever anticipated.” Mrs Jibrilu did not provide any figures other than the percentage. Meanwhile, Chester Cooper, deputy prime minister and minister for tourism, investments and aviation, said during a tour of Sterling Global’s Hurricane Hole project on Paradise Island: “I’m advised that we have steady forward bookings, and we are optimistic about the next few months and the numbers in terms of
JOY JIBRILU
CHESTER COOPER
stopovers, in particular, that will come. “I think it’s important to acknowledge that we’re still in the middle of the pandemic, and it’s important that we do all we can as individuals, as employees
and as business owners to ensure that we continue to follow the protocols to help to contain COVID.” Signalling “high demand” for The Bahamas as a tourist destination, Mr Cooper added: “The
director general assured me that the trends we are seeing are very positive for the future, and speaking with some hotel properties and owners and managers already, they are likewise optimistic about what they’re seeing over the next few weeks. “I’ve indicated before that our priority is to return the number of tourists to pre-COVID levels. We’re working hand-in-hand with our partners to ensure that we can get there for the betterment of the Bahamian people.” Speaking directly to the August and September months, Mr Cooper said he did not have the data to-hand but information provided by senior
Ministry of Tourism staff indicates arrivals numbers have been “positive yearon-year, and they look even more positive going into the next few weeks.” Mr Cooper added that there are ten investment projects in the pipeline, and said: “These projects take time to get out of the ground, and this is why I’m excited about what I see here today. We want more shovel-ready projects. This is what we need to move our economy along to get the economic growth that we need and to keep our country growing. “Coming out of a very difficult season it’s important that we see more of this, and this is why I’m so happy to be here.”
HURRICANE HOLE DEVELOPER TARGETS 300 FULL-TIME POSTS By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net HURRICANE Hole’s developer says the Paradise Island-based project is projected to create over 300 permanent jobs when its $250m investment is fully completed. Khaalis Rolle, Sterling Global Advisory Services’ president, said the developer is employing an average of 150 people per day during its construction phase. During a tour of Sterling Commons and Hurricane Hole, Mr Rolle said: “The overall project is a $250m project. It’s a mixed-use development that consists of retail, office and residential, as well as probably the largest super yacht marina in the Caribbean.” Ground was broken on Hurricane Hole’s redevelopment in January 2019 and, despite the COVID-19 pandemic, the developer is eyeing a first-phase opening in early 2022. Mr Rolle sales: “Sales are great. In fact, we are 92 percent leased on the retail and almost completely leased with the office, and we are completely sold out on the residential.” The first phase of the project consists of one and two-bedroom units with a view of the marina. There are 12 of these units in total, with six in each building, and they are all sold out. Chester Cooper, deputy prime minister and minister for tourism, investments
and aviation, added: “I’m happy to be here celebrating this achievement. I know it’s not yet complete, but it’s an achievement. Nonetheless, with the Sterling Group, I think it’s noteworthy that during a difficult pandemic, where almost everything stopped in the country, this project continued and the construction continued. “This is the type of spark that we need to see even more and more in our country. I want to assure the investment community, the business community, that our new government is very business friendly, very investment focused, and we recognise that to build and grow our country we need projects like this one. “So it’s not just the employment. But it’s the spin-off, the economic benefit of a project like this, as well as the enhancement of the product for tourists, for residents and foreign travellers.” Mr Rolle added: “What you are seeing today is the promise we made coming to life, the twin buildings of Sterling Commons with residences, professional office space and retail, and the completion of the infrastructure that will become the premiere superyacht marina in the region. “Thanks to our construction partners, including ISD and to all the hard-working Bahamians who contributed to this effort, we kept that promise. We promised jobs, and we delivered jobs, with as many as 150 men
KHAALIS ROLLE, president of Sterling Advisory Services, leads Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, on a tour of Paradise Landing. Also in attendance was Joy Jibrilu, director-general of tourism; John W Pinder, parliamentary secretary; Reginald Saunders, permanent secretary; and Sterling executives. Photo:Ronnie Archer/DPA and women a day. Some days there were 300 people on-site. We promised Bahamian sourcing and we delivered. We are honoured that the minister of tourism and his colleagues are here to see our progress and our promise.” The expansion, created from underused upland, doubled the size of Hurricane Hole’s marina without extending its footprint into Nassau harbour. When completed, the marina will include 6,100 linear feet of berthing space; 14.5 feet of depth; floating and fixed docks with wide finger piers; a 240 foot turning basin; and concrete docks up to 420 feet in length to accommodate the world’s most luxurious yachts. Residents, yacht owners and guests will have access to on-site restaurants, a gourmet grocery store, liquor store, hair salon, office space, a medical
clinic, pharmacy, swimming pools, private meeting spaces, 24-hour security and onsite concierge services. The largest retail space in Sterling Commons West has been taken by 700 Wines and Spirits, which will become its flagship store, complete with a fine wine collection, wine bar and courtyard gathering space.
Paradise Landing consists of two, three-storey Sterling Commons buildings; a two-storey harbourmaster’s office with crew lounge facilities and other amenities; and a standalone grocery store surrounding the transformed marina. Commercial space at Paradise Landing is 92 percent leased with the first phase of condominiums
sold out. Sterling has begun taking reservations for the second phase of luxury marina residences, which will be launched in the coming weeks. The developer said there is also high demand for the limited dock slips available. Mr Rolle also spoke about Sterling’s Abaco project. “It used to be called Matt Lowe’s Cay, it is now Montage Cay. We have engaged a very successful global brand in Montage Hotels International and the project is going extremely well,” he added. “We’re still finalising all of the planning. Most of the design work has been done, and we’re hoping to begin horizontal construction in the first quarter of next year. So it’s on track and it’s an exciting project. We are very excited about it and we know that the Abacos will benefit greatly from that.”
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MINISTER IN TOUR OF STATISTICAL INSTITUTE MICHAEL HALKITIS, Minister of Economic Affairs, met Bahamas National Statistical Institute staff and toured its Palmdale offices last Wednesday, September 29. Also present was Wayde Watson, parliamentary secretary in the Ministry of Economic Affairs. Photos:Ulric Woodside/BIS
WATERLOO TO HIRE 40 FOR END-MONTH RE-OPENING FROM PAGE ONE taking office, Mr Knowles told this newspaper: “We’re planning to re-open. We have to hire a whole new team and management. I have a manager coming in on the 15th [of September], and we’ll staff it out from there.” Acknowledging that many former Club Waterloo staff will have moved on to jobs elsewhere amid the uncertainty over the venue’s fate, Mr Knowles said he did not blame them and added: “We’re really pushing for the end of October/ first week in November so that we will be running for the season when it comes in. “We want to have the wheels greased by that time, and the staff trained up to par. To make the wheels
turn, we have to start with at least 40. We’re excited about it. I think the market is there. I think Christmas will be good; the season will be good to us. It’s getting the right people in place. “It’s a lot of work. People think you decide to open up, get some drinks and food, and sell it. I think reopening now is going to be quite difficult, but we’ll get it done.” Mr Knowles previously pointed out to Tribune Business that the entire entertainment/nighttime industries sector was impacted by the Minnis administration’s stance, especially their inability to compete against hotel restaurants and bars. “It’s been a long road,” he added yesterday. “I didn’t understand the last administration’s position. They asked us for a
proposal, we sent them a proposal, and were never on an equal footing and didn’t hear back. “We would have installed the same protocols as the hotels; just give us the same leeway and luxuries. The fact Bahamians were going into those places.....” Mr Knowles affirmed that Club Waterloo would implement whatever COVID-19 health and safety measures are required by the Government for its re-opening. “The bills don’t go away,” he added. “I couldn’t even quantify that [the losses] to be honest. I know we have huge operating losses from operating under the curfew and everything like that. It’s been a fight. We were lucky. We were lucky to have the means to get through it. “We’re hopeful we will bring a good programme
back, bring a good platform back, and people will support us. I think people are craving to be out and socialising again.” Mr Knowles estimated reopening costs at “close to $100,000; it won’t be far from that”. He added: “We just had the sound people come in. That was $5,000 to $6,000 for them to come in and go through everything in two days.” When Club Waterloo closed in June, Mr Knowles had urged the government to “even the playing field” by allowing local businesses to follow Bahamian resorts in testing patrons for COVID-19 at the door prior to their entrance. Also urging the government to lift the curfew and
“extend operating hours”, Mr Knowles said at the time: “Our concerns are that it doesn’t seem to be a level playing field. It’s difficult to compete and stay relevant when the rules are applied selectively to different businesses and venues. It’s already a difficult climate for operations such as ours, and to be compounded with an un-level playing field, it became an insurmountable task.” The Club Waterloo principal echoed others who had called on the Government to uniformly apply the COVID-19 restrictions and health measures to all businesses, as well as provide a ‘road map’ towards exiting these rules. There were also
repeated assertions that some of the Minnis administration’s decisions are not justified or backed by the medical science, leading to inconsistent decision-making. Mr Knowles said it was “very concerning” that hotel bars and restaurants were allowed to remain open beyond the then-10pm curfew, with Bahamians allowed to patronise them and enjoy indoor dining with a negative COVID-19 antigen test, yet locally-owned rivals are being subjected to more restrictive measures and tighter rules that prevent them from competing.
THE TRIBUNE
A COLD WINTER RESULTS IN HOT PRIZES
Monday, October 4, 2021, PAGE 5
By CHRIS ILLING
T
he energy crisis has long since arrived in England. Long queues in front of petrol stations are no longer uncommon, and price increases are also imminent in Europe because the gas price is at a record highs. Natural gas prices have doubled this year and are expected to continue to rise, resulting in higher winter heating bills for some consumers and higher costs for electric utilities. In the futures market, the natural gas contract for October rose above $5 per one million British thermal units, or mmBtus, for the first time since February 2014. Besides electricity and heating demand, natural gas is an important feed stock and is used in the processing of chemicals, fertilizers, paper and glass, among other products. The main reason for the enormous gas price is the economy, because after the COVID lockdown it picked up speed again, which led to increasing demand. But the storage facilities in Europe are only half full; usually they would be 70 to 90 percent full at this time of the year. There are currently delivery bottlenecks from Russia. “The Gazprom Group is deliberately holding back deliveries,” some experts say. Most recently, the Russian state-owned company announced it would not deliver any additional gas supplies via Ukraine, and that maintenance work would be carried out on important parts of the pipelines in Belarus and
Poland. With these measures, Russia is deliberately driving up the gas price, according to the experts. All these announcements had a major impact on prices in Europe, the most notable being that Gazprom stopped replenishing underground gas storage facilities in Europe for a while. Shortly before the heating season, that was a negative sign, and now there might not be enough supplies for a cold winter on the continent. There is still no threat of a gas deficit. The storage amounts are sufficient. There is also sufficient capacity to ship liquefied natural gas (LNG) to Europe, for example, from the US. Now the US industry is also suffering from lower production due to Hurricane Ida, with 77.3 percent of Gulf of Mexico production still shut-down. According to the Energy Information Administration, the level of gas in US storage is presently 7.4 percent below the five-year average and 16.8 percent below the level last year. Nevertheless, European heating customers can expect an expensive season. According to the expert, prices will go up for practically all suppliers. The fact is Russia is the most
a crucial part of the supply chain, pipeline companies typically do well when gas prices rise. Aside from providing a good gas price hedge, the piping companies offer some pretty fat dividends. Benchmark important oil supplier for Europe. Some European governments are involved in the Nord Stream 2 pipeline. The last pipes in the pipeline from Russia to Germany were recently laid. The German authorities should approve the commissioning by January. Russia guarantees that more gas can be delivered cheaper through the new pipeline. But the expert disagrees: For the customer, commissioning Nord Stream 2 means nothing because the gas price is not determined by the delivery route, but by the market. Gas-fired power plants are also used to generate electricity. Electricity also went up in wholesale prices, currently by a whopping 130 percent as of August 2021. According to the expert, the solution can be found in the production of synthetic liquid fuels. As a result, oil heating would also have a climate-neutral perspective in the long term. According to experts, climate-friendly heating oil should be on the market in Europe as early as 2030. What does it mean for the savvy investor? Being
ROYAL CARIBBEAN SEEKS LOCAL RECRUITS VIA JOB FAIR ROYAL Caribbean International will host a job fair this Monday to fill several human resources positions and find up to 20 lifeguards for its private island destination, Perfect Day at CocoCay, in the Berry Islands. Cindy Williams-Johnson, Royal Caribbean’s senior manager of talent attraction, said the job fair is part of the cruise line’s commitment to hire Bahamians. Royal Caribbean plans to hire four human resources professionals, including the head of human resources at Perfect Day at CocoCay, who will be responsible for recruitment, employee relations, performance management, organisational development, learning compensation, benefits and human resources systems. Additional open positions include human resources specialist; human resources administrator; and human resources training manager. The cruise line, in a statement, said human resources interviews will be conducted virtually while lifeguard applicants must take a swim test. “We have more than doubled our Bahamian staff numbers in the last few years, despite the pandemic that kept us anchored for months,” said Ms
Williams-Johnson. “With strong bookings for the spring and summer, and our desire to hire even more Bahamians at Perfect Day at CocoCay, we are pulling out all the stops to attract individuals who want a career with a company that offers opportunity and great upward mobility.” Persons interested in the lifeguard positions needs to be prepared to take a practical test on October 4 at the Betty Kelly Kenning National Swim Complex, starting at 9am. Applicants will be asked to swim 100 metres, retrieve a weight from the bottom of the pool and tread water without using their hands for a specified time. “The Bahamian who is a lifeguard near their home in the Berry Islands one season may end up working on a ship, if they choose, probably halfway around the world two seasons later. So, if you are interested, look at the ads in the local papers, our website or 242jobs.com - a partnership with the Bahamas Chamber of Commerce,” said Ms Williams-Johnson. Job applicants can find out more about the positions and qualifications by visiting www.242jobs.com or emailing PerfectDayCocoCay@rccl.com.
Brent crude oil now trades above $79 a barrel, or more than 45 percent above where it started the year, and analysts warn that a tightening oil market could prompt further gains.
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GOV’TS $700M BOND: EARLY ISSUE ‘CRITICAL’ FROM PAGE ONE
the single biggest one-time capital raise during the period. It was unclear, though, whether the Davis administration would proceed with its predecessor’s borrowing strategy as is or adjust it to better reflect The Bahamas’ fiscal woes or its own spending priorities. And some sources had suggested that the $700m bond might be tweaked or adjusted, with the Government reducing the amount of foreign currency sought in favour of cheaper Bahamian-dollar debt.
“The new government is looking at it, and they’re going to change it,” one well-placed contact, speaking on condition of anonymity, said. “They’re not going to borrow that much in US dollars no more. I understand they’re going to change the mix. Before the last downgrade, it was 9 percent to borrow, and Bahamian dollars were at 4-5 percent.” While the yields on external Bahamian government debt soared to 9 percent and over when COVID19 hit, a chart produced by Moody’s shows that by August 2021 these had
dropped to between 5-8 percent with the longer the maturity, the greater the return sought by international investors. Mr Wilson, though, said it was unlikely that the $700m bond can be adjusted as the source suggests. “I don’t know if that can happen with the proposed structure,” he said. “Tweaking has its challenges. The lawyers will have already done a lot of work. To put a different currency in that arrangement means more lawyers and more fees.” With the offering memorandum for the $700m bond issue still being worked
on, Mr Wilson added: “The process is in train. The competent staff in the Ministry of Finance are handling that.” He said Marlon Johnson, acting financial secretary, and Wendy Craigg, the former Central Bank governor who acts as an advisor to the Ministry, had both told the new administration that “it’s critical it happens early” in terms of the bond’s placement. James Smith, an exfinance minister and Central Bank governor, yesterday told Tribune Business it was “best not to alter” financing measures that had been left in place by a previous administration unless there was an exceptionally good reason to do so. Describing the proposed $700m bond as akin to “a baton in a relay”, he explained that the Davis administration has to “finish the race” and cannot afford “to drop the baton”. While the new administration may have to explain why it is following the plans left by its predecessor, Mr Smith said: “A
THE TRIBUNE new administration coming in and meeting financial arrangements already in place, it’s best for them not to alter them. “First, if you do, there could be a huge penalty charge. The second thing is the amount to be funded is earmarked for some very serious stuff already in play. The Government is under contract for payment for services already, or a supplier is waiting for final payment before a shipment comes in. “It would be very unwise to interfere with transactions in the pipeline unless there is something nefarious with them or they are clearly out of order. I would recommend that you go along with it and continue those arrangements until. Governments are not dishonest. You may have dishonest people in them, but when the Government is making commitments at that level you can be assured from an accounting point of view that funding is earmarked for them in the Budget approved by Parliament.” Tribune Business understands that the Prime Minister has been briefed on the $700m bond. While there are thought to be different opinions about
the need for, and timing, of the bond’s issuance, not proceeding could cost The Bahamas the $200m guarantee from the InterAmerican Development Bank (IDB) that will underwrite the placement. Such a guarantee from a multilateral institution gives potential investors confidence, and can help lower the price (interest rate) The Bahamas must pay. “They’ll have to make a determination fairly quickly because the ball has started down the hill with Goldman Sachs,” one contact said of the Government in relation to the placement agents. The Davis administration will also have to hit the ground running from a fiscal transparency perspective. The Government’s debt management plan, and 2021-2022 first quarter fiscal “snapshot”, are due for publication by the end of this month, while the annual Fiscal Strategy Report will be unveiled in November. The latter will be especially key in setting out to the public, investors and rating agencies how it plans to tackle the national debt and deficit blow-out produced by COVID-19 and Hurricane Dorian.
BAHAMAS MUST COUNTER PUNCH ON OFFSHORE LEAKS FROM PAGE ONE to be co-ordinated and designed to create “instability” in IFCs and discourage clients and their advisers from using them. “The most important question I ask is: Are they legal? These are truly legal structures designed for tax planning,” Mr Edwards said of The Bahamas’ financial services industry’s products and structures. “In more ways than one, when we eliminate the excitement and sensationalism that comes out of this, it’s further evidence that The Bahamas offers legal, legitimate structures for tax planning. “For The Bahamas, we need to stay focused on the fact that what is being revealed are tax efficiencies and structures that are being used by persons. This is our value proposition to the world... I’m saying that these leaks are going to happen over and repeatedly, but at some point in time we need to say these structures are legitimate, they are not illegal, and we should be
mounting a defense that we are using legitimate structures anyone in the world can use. “We are not doing anything wrong. We are providing services that are part of the whole financial system. At some point we have to stop letting these people hit us on the back leg. It means looking for positives in a not so positive situation.” While the full ICIJ leak has yet to be published, The Bahamas was thus far mentioned in relation to the former Dominican Republic vice-president, Carlos Morales Troncoso, and his family who were said to have shifted their assets from this nation to South Dakota in the US after the Register of Beneficial Ownership Act was created in 2018. That Act forced all financial services providers, registered agents and those entities without a registered office to supply beneficial ownership information on every Bahamas corporate vehicle to a central
government database that is off-Internet. Only law enforcement agencies and regulators will have access to the information. The “Pandora Papers” expose the role of US states such as Delaware, Nevada, Wyoming and South Dakota in international finance. Paul Moss, Dominion Management Services’ president, yesterday said the leaks confirmed his concerns that the Register of Beneficial Ownership Act could drive The Bahamas’ business to these US states. Among the 14 providers said to have contributed to the “Pandora Papers” leak was Trident Trust Company, which has a unit in The Bahamas called Trident Corporate Services. Three other providers named in connection to The Bahamas appear to have no physical presence here. The ICIJ yesterday said the 2.9 terabyte leak contained 11.9m files, including more than six million documents.
THE TRIBUNE
PM URGES US JUDGE: END PURSUIT OF WEB SHOP BOSS
FROM PAGE ONE helping to operate a vessel in US waters “in a grossly negligent manner”. He is due to be sentenced on October 15 and, in a bid to persuade Judge Cote to impose just a fine, probation and 100 hours of community service to be performed in The Bahamas, Mr Fox’s US attorneys have turned to the ‘great and good’ of Nassau’s society to drive home the community benefits gained from their client’s charitable and philanthropic needs. Besides Mr Davis, character references were also supplied by two of his newly-elected Cabinet ministers, Jomo Campbell, minister of state for legal affairs, and Alfred Sears, minister of works and utilities. Both men and their law firms provided legal services to Mr Fox and his companies prior to their election as MPs and Cabinet ministers, and their letters were also written in August 2021. Two ex-Cabinet ministers also vouched on Mr Fox’s behalf, Shane Gibson and Leslie Miller. And further character references were submitted by Mr Miller’s daughter, Leslia Miller-Brice, the newlyelected Seabreeze MP, and her husband Leander, who operates the Asure Win web shop chain and is the Island Luck co-founder’s nephew. Testimonies from two ex-FBI agents; multiple Bahamian clergymen; two UK expatriates who are neighbours of Mr Fox in Ocean Club Estates on Paradise Island; and other attorneys, business partners and persons aided by Mr Fox’s generosity rounded out the character references. Intriguingly, no references were supplied by former prime minister Perry Christie, under whose watch web shop gaming was legalised, or Sebas Bastian, his business partner and fellow co-founder of the Island Luck web shop chain, which is widely regarded as the industry leader with the biggest market share. There can be little doubt that Mr Fox’s Fox Foundation, and charitable and philanthropic deeds, including the scholarships provided to young people, have benefited hundreds of underprivileged persons living in depressed communities of New Providence and elsewhere in The Bahamas. And his assistance during Hurricane Dorian and COVID-19 was equally valuable. However, several sources said the names of those providing character references, and the nature of what they have written, provides further evidence of the depth - and breadth - of the web shop gaming industry’s
reach and influence throughout Bahamian society - especially among politicians and the clergy. Web shop gaming was legalised, regulated and taxed under the former Christie administration, in which Mr Davis held the post of deputy prime minister. No recognisable Free National Movement (FNM) figures provided character references on Mr Fox’s behalf; just persons associated with the Progressive Liberal Party (PLP). Mr Davis, in his letter, made clear that he was writing as Mr Fox’s friend, and his views could not be attributed to the office he then-held, Leader of the Opposition, or the Progressive Liberal Party (PLP). The same will doubtless apply both to his new post, as Prime Minister, and the Government. He also disclosed that the letter was written at Mr Fox’s request. Revealing that he first met Mr Fox in the mid-1990s, when the latter approached Mr Davis’s law firm, Davis & Co, to handle legal matters for him, Mr Davis wrote: “Since that time, we developed a friendship that I cherish. From him, I have learned the true value of a second chance........... “It has been a very satisfying experience to watch him reorder his life to become a contributing member of society... For the most part, it was upon his tenacity, insistence and positive actions that The Bahamas regularised the gaming industry in The Bahamas - an industry that long-plagued our nation’s underground.” After detailing Mr Fox’s tough upbringing “in one of the most socially and economically depressed areas of New Providence”, and his commitment to family and the church, Mr Davis reiterated: “Adrian is my friend - an exemplary citizen. Friends have obligations one to another to ensure the welfare of each other. “He personally walks the beat to say to young men that they should remain on the ‘straight and narrow’ path. Today, he is the poster boy for reform.” Noting that the US charges have been hanging over Mr Fox for almost a decade, having first been filed in 2012, Mr Davis argued that it was time to bring the judicial proceedings to an end. He urged Judge Cote: “In view of the foregoing, and given this circumstance that has been his constant shadow of uncertainty and anxiety for an inordinate period of years, I strongly advocate termination of proceedings against Mr Adrian Fox.” Jerry Forrester, the former supervising FBI
agent for the northern Caribbean, including The Bahamas, said he was first introduced to Mr Fox in 2011 by Mr Davis, acting as his attorney. “Mr Davis advised me of Mr Fox’s indictment in the southern district of New York, which I understood related to the smuggling of Chinese immigrants into the United States,” Mr Forrester wrote. This sounds like Mr Davis made an approach to seek Mr Forrester’s assistance to see if he could alleviate Mr Fox’s predicament. However, that could not be confirmed, because the rest of Mr Forrester’s letter is blacked out, until he says of Island Luck’s cofounder: “In my estimation he deserves a medal, not a prison sentence... “What started as a business relationship has turned into a friendship, and I am proud to be a friend of Adrian Fox.” Another retired FBI special agent, Anthony Velazquez, praised Mr Fox in equally glowing terms. Similar testimony was provided by Mr Campbell, now-minister of state for legal affairs, in an August 19, 2021, letter where he described Mr Fox as “a firm believer that everyone should be treated equally regardless of their race, sex, religion or socioeconomic background, he is unresolved in his pursuit for fairness in the gaming industry”. And Mr Gibson said he never hesitated in referring many of his needy Golden Gates constituents to Mr Fox when he was MP for the constituency between 2002 and 2017. “I referred many of my constituents in Golden Gates, who were in need of assistance, to Mr Fox,” he told Judge Cote. “Without a second thought he assisted complete strangers, including a student who needed funds to pay tuition for her last semester in college. Another constituent of mine was diagnosed with cancer but had no medical insurance to fund his treatment. Mr Fox stepped in and assisted with medical bills. “I also introduced Mr Fox to a woman who was about lose the home she had lived in for 20 years after she lost her job and defaulted on her mortgage payments. Thanks to his kindness, she kept her home.” A business partner, Amit Mor, said Mr Fox’s investment has enabled him to fulfill his life’s dream by establishing a retail store in downtown Nassau. Using corporate names such as NWL Group, Caribbean Sea Minerals and Natures Well Ltd, the letterhead shows it operates from a base at the
Monday, October 4, 2021, PAGE 7 corner of Bay Street and Charlotte Street. “We have invested all our life savings in a dream and opened a retail store at the downtown area,” Mr Mor wrote. “It took about six months until we understood that opening a business in a foreign country is not a walk in the park. A family friend of my wife said he knows a guy that might be able to help us out.” That “guy” happened to be Mr Fox, and Mr Mor wrote: “We had nothing interesting to offer Mr Fox besides our dreams and hard work. Luckily for us, Mr Fox decided to invest in our dream and partner up with us. “Today, after five years of great business relations and a lot of hard work, the good deeds of Mr Fox created a business in The Bahamas that employees over 70 Bahamians, each one feeding a family. “In my belief, only a pure intention to help can result in such a great outcome. Through the past year, as the pandemic affected the Bahamas and our retail business, Adrian and his family supported us not only financially but have been there for us as family.”
And Dirk Simmons, Island Luck’s chief financial officer, added that Mr Fox’s property development companies employ more than 500 full-time Bahamian workers, plus part-timers and independent contractors. He added that they had participated in developing four major residential real estate projects, introducing 300 new homes to the market. Neither the companies nor projects were named. The Bahamian clergymen offering testimonies were Father Reginald Demeritte, pastor of St Theresa’s Catholic Church; retired archdeacon James Palacious; and Pastor Raymond Wells of Living Waters Kingdom Ministries. Mr Fox’s US attorneys, in their sentencing proposals, sought to further minimise and downplay their client’s role in human trafficking. They argued that he had played “a limited role”, and had “voluntarily withdrawn from the conspiracy years before it was ‘taken down’ by law enforcement”. “He deeply regrets the decision he made 13 years ago to commit this offense, and he has tried ever since to make amends,” the US
attorneys argued. “Mr Fox’s crime of conviction – aiding and abetting the grossly negligent operation of a vessel – accurately describes his limited role in a much larger operation that resulted in criminal charges against him and many others. “Other participants in the operation arranged for undocumented immigrants to travel from China to New York City. Mr Fox’s role was to help house the immigrants at one way-stop (The Bahamas) and then bring them to the boat that would take them to another waystop (Miami). “During those boat trips, which lasted two to three hours, there were sometimes too few life preservers and too little food and water for the number of people on the boat, making the boat’s operation grossly negligent. This is a misdemeanor, for which defendants routinely receive non-incarceration sentences.” Mr Fox’s attorneys argued that “the seriousness of his conduct” was brought home to their client when The Bahamas enacted the Trafficking in Persons (Prevention and Suppression) Act in December 2008.
PAGE 8, Monday, October 4, 2021
THE TRIBUNE
Leaked records open a “Pandora” box of financial secrets By MICHAEL LIEDTKE AND JONATHAN MATTISE Associated Press HUNDREDS of world leaders, powerful politicians, billionaires, celebrities, religious leaders and drug dealers have been hiding their investments in mansions, exclusive beachfront property, yachts and other assets for the past quarter-century, according to a review of nearly 12 million files obtained from 14 firms located around the world. The report released Sunday by the International Consortium of Investigative Journalists involved 600 journalists from 150 media outlets in117 countries. It’s being dubbed the “Pandora Papers” because the findings shed light on the previously hidden dealings of the elite and the corrupt, and how they have used offshore accounts to shield assets collectively worth trillions of dollars. The more than 330 current and former politicians
identified as beneficiaries of the secret accounts include Jordan’s King Abdullah II, former U.K. Prime Minister Tony Blair, Czech Republic Prime Minister Andrej Babis, Kenyan President Uhuru Kenyatta, Ecuador’s President Guillermo Lasso, and associates of both Pakistani Prime Minister Imran Khan and Russian President Vladimir Putin. The billionaires called out in the report include Turkish construction mogul Erman Ilicak and Robert T. Brockman, the former CEO of software maker Reynolds & Reynolds. Many of the accounts were designed to evade taxes and conceal assets for other shady reasons, according to the report. “The new data leak must be a wake-up call,” said Sven Giegold, a Green party lawmaker in the European Parliament. “Global tax evasion fuels global inequality. We need to expand and sharpen the countermeasures now.” Oxfam International, a British consortium of
charities, applauded the Pandora Papers for exposing brazen examples of greed that deprived countries of tax revenue that could be used to finance programs and projects for the greater good. “This is where our missing hospitals are,” Oxfam said in a statement. “This is where the pay-packets sit of all the extra teachers and firefighters and public servants we need. Whenever a politician or business leader claims there is ‘no money’ to pay for climate damage and innovation, for more and better jobs, for a fair post-COVID recovery, for more overseas aid, they know where to look.” The Pandora Papers are a follow to a similar project released in 2016 called the “Panama Papers” compiled by the same journalistic group. The latest bombshell is even more expansive, porting through nearly 3 terabytes of data — the equivalent of roughly 750,000 photos on a smartphone — leaked from 14 different service providers doing business in 38 different jurisdictions in the world. The records date back to the 1970s, but most of the files span from 1996 to 2020. In contrast, the Panama Papers culled through 2.6 terabytes of data leaked by one now-defunct law firm called Mossack Fonseca that was located in the country that inspired that project’s nickname. The latest investigation dug into accounts registered in familiar offshore havens, including the British Virgin Islands, Seychelles, Hong Kong, and Belize. But some of the secret accounts were also scattered around in trusts set up in the U.S., including 81 in South Dakota and 37 in Florida. Some of the initial findings released Sunday painted a sordid picture
JORDAN’s King Abdullah II speaks during a media conference prior to a meeting with NATO Secretary General Jens Stoltenberg at NATO headquarters in Brussels, in this Wednesday, May 5, 2021, file photo. Hundreds of world leaders, powerful politicians, billionaires, celebrities, religious leaders and drug dealers have been stashing away their investments in mansions, exclusive beachfront property, yachts and other assets for the past quarter century, according to a review of nearly 12 million files obtained from 14 different firms located around the world. The report released Sunday, Oct. 3, 2021, by the International Consortium of Investigative Journalists involved 600 journalists from 150 media outlets in 117 countries. Jordan’s King Abdullah II is one of 330 current and former politicians identified as beneficiaries of the secret accounts. Photo:Johanna Geron/AP of the prominent people involved. For instance, the investigation found advisers helped King Abdullah II of Jordan set up at least three dozen shell companies from 1995 to 2017, helping the monarch buy 14 homes worth more than $106 million in the U.S. and the U.K. One was a $23 million California ocean-view property bought in 2017 through a British Virgin Islands company. The advisers were identified as an English accountant in Switzerland and lawyers in the British Virgin Islands. There was no immediate comment from Jordan’s Royal Palace. The details are an embarrassing blow to Abdullah, whose government was engulfed in scandal this year when his half brother, former Crown Prince
Hamzah, accused the “ruling system” of corruption and incompetence. The king claimed he was the victim of a “malicious plot,” placed his half brother under house arrest and put two former close aides on trial. Abdullah took power in 1999 after the death of his father, King Hussein. U.K attorneys for Abdullah said he isn’t required to pay taxes under his country’s law and hasn’t misused public funds, adding that there are security and privacy reasons for him to have holdings through offshore companies, according to the report. The attorneys also said most of the companies and properties are not connected to the king or no longer exist, though they declined to provide details. Blair, U.K prime minister from 1997 to 2007, became the owner of an $8.8 million Victorian building in 2017 by buying a British Virgin Islands company that held the property, and the building now hosts the law firm of his wife, Cherie Blair, according to the the investigation. The two bought the company from the family of Bahrain’s industry and tourism minister, Zayed bin Rashid al-Zayani. Buying
the company shares instead of the London building saved the Blairs more than $400,000 in property taxes, the investigation found. The Blairs and the alZayanis both said they didn’t initially know the other party was involved in the deal, the probe found. Cherie Blair said her husband wasn’t involved in the purchase, which she said was meant to bring “the company and the building back into the U.K. tax and regulatory regime.” She also said she did not want to own a British Virgin Islands company and that the “seller for their own purposes only wanted to sell the company,” which is now closed. A lawyer for the alZayanis said they complied with U.K. laws. In 2009, Czech Prime Minister Andrej Babis put $22 million into shell companies to buy a chateau property in a hilltop village in Mougins, France, near Cannes, the investigation found. The shell companies and the chateau were not disclosed in Babis’ required asset declarations, according to documents obtained by the journalism group’s Czech partner, Investigace. cz.
LEGAL NOTICE
NOTICE SAAY INVESTMENTS LIMITED N O T I C E IS HEREBY GIVEN as follows: (a)
SAY INVESTMENTS LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.
(b)
The dissolution of the said company commenced on the 1st October, 2021 when the Articles of Dissolution were submitted to and registered by the Registrar General.
(c)
The Liquidator of the said company is Leeward Nominees Limited, Vistra Corporate Services Centre, Wickhams Cay 11, Road Town, Tortola, British Virgin Islands.
Dated this 4th day of October, A. D. 2021 _________________________________ Leeward Nominees Limited Liquidator LEGAL NOTICE
NOTICE BOYSENBERRY LIMITED N O T I C E IS HEREBY GIVEN as follows: (a)
BOYSENBERRY LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.
(b) The dissolution of the said company commenced on the 1st October, 2021 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c)
The Liquidator of the said company is Leeward Nominees Limited, Vistra Corporate Services Centre, Wickhams Cay 11, Road Town, Tortola, British Virgin Islands.
Dated this 4th day of October, A. D. 2021 _________________________________ Leeward Nominees Limited Liquidator
THE TRIBUNE
Monday, October 4, 2021, PAGE 11
TESLA REPORTS STRONGER-THAN-EXPECTED Q3 SALES PALO ALTO, Calif. (AP) — Tesla says it delivered 241,300 electric vehicles in the third quarter even as it wrestled with a global shortage of computer chips that has hit the entire auto industry. The Palo Alto, California, company’s sales from July through September beat Wall Street estimates of 227,000 sales worldwide, according to data provider FactSet. Third-quarter sales rose 72% over the 140,000 deliveries Tesla made for the same period a year ago. So far this year, Tesla has sold around 627,300
vehicles. That puts it on pace to soundly beat last year’s total of 499,550. Wedbush analyst Daniel Ives wrote in a note to investors that the pace of electric vehicle deliveries in the U.S. and China has been strong for the past month or so. That means an “eye-popping growth trajectory heading into 4Q and 2022 for (CEO Elon) Musk & Co.” Still, Ives estimated that the chip shortage will knock 40,000 vehicles from Tesla’s annual delivery number. He estimates the deliveries to be at least 865,000 vehicles,
with a bull case of around 900,000. “In a nutshell, with chip shortage headwinds, China demand still recovering from earlier this year, and EV competition coming from all angles, Tesla’s ability to navigate these challenges this quarter have been very impressive,” he wrote. In the third quarter, the smaller Model 3 sedan and Y SUV led the way with 232,025 sales, followed by the larger Models S and X at 9,275. Tesla said it produced 237,823 vehicles for the quarter.
THIS Feb. 9, 2019, file photo shows a sign bearing the company logo outside a Tesla store in Cherry Creek Mall in Denver. Tesla says it delivered 241,300 electric vehicles in the third quarter in 2021, even as it wrestled with a global shortage of computer chips that has hit the entire auto industry. Photo:David Zalubowski/AP