10062017 business

business@tribunemedia.net

FRIDAY, OCTOBER 6, 2017

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Web shops slam ‘out of touch’ Gaming Minister

By NEIL HARTNELL Tribune Business Editor and NATARIO McKENZIE Tribune Business Reporter

DIONISIO D’AGUILAR

WEB shops yesterday slammed the Minister of Tourism’s “reckless” attack on the sector’s taxes and regulation, charging he was “out of touch with the industry he supervises”.

The Gaming House Operators Association, in a statement issued to Tribune Business, argued that the web shop industry already paid a tax rate nearly triple that levied on hotel-based casinos.

Blast: We pay more taxes than casinos 13% rate almost triple, but no return breaks ‘Reckless, chilling’ message ignores facts Arguing that its members “pay more in taxes than Atlantis, Baha Mar and Resorts World Bimini combined”, the Association said that unlike its hotel-based counterparts

the web shops enjoyed “not a penny” in tax breaks and incentives in return.

Responding to Dionisio D’Aguilar’s House of Assembly address, in which he described the eight licensed web shops as “a cartel” due to the 10-year bar on new entrants, the Association suggested the Minister and the Minnis administration could not be trusted to honour previous commitments.

Describing the Minister’s stance as “chilling”, it argued that his comments demonstrated why the Bahamas See PG B4

GOVT NEEDS ‘MORE CREATIVITY’ AML FOODS UNVEILS 5-YEAR GROWTH PLAN WITH PERMANENT RESIDENCY Two more stores for south

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A TOP realtor yesterday urged the Government to be “a little more creative” with permanent residency by using it to stimulate economic activity on depressed Bahamian islands.

George Damianos, Damianos Sotheby’s International Realty’s president, told Tribune Business that the Bahamas should not adopt a ‘one size fits all’ approach in increasing the permanent residency investment threshold from $500,000 to $750,000.

Instead, Mr Damianos suggested that the current $500,000 threshold be reduced for islands such as Grand Bahama that were badly in need of economic stimulus.

He added that the $1.5 million threshold for ‘fast track’ permanent residency processing could also be reduced as a means to incentivise wealthy foreigners to invest throughout the Bahamas, rather than funneling them all to New Providence and locations such as Abaco, Harbour Island and Exuma.

Top realtor: Lower bar for stimulus No ‘broad brush stroke’ for GB, Out Isl Can ‘safely double’ fee, instead of threshold up Mr Damianos added that he would also “have gone the other way” and increased permanent residency fees, rather than the value of the investment or real estate purchase.

He suggested that the Bahamas could “safely double” the permanent residency fee from $10,000 to $20,000, given that this would rate as a mere blip for high net worth foreigners acquiring local properties.

While conceding that the proposed increase to $750,000 was unlikely to have “a great impact” on the second home market, Mr Damianos told Tribune Business: “I do think the Government should be a little more creative in their See PG B2

BDB given 3 years to be ‘self-sufficient’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas Development Bank must become “self-sufficient” by 2020, which is when the Government will cease contributing $3 million annually towards its bond interest payments.

K P Turnquest, the deputy prime minister, told the House of Assembly that “the onus” is on the BDB’s new Board and management to make the organisation financially viable, and fulfill its mandate of financing Bahamian entrepreneurs’ ventures.

He urged delinquent BDB borrowers to agree payment plans with the institution, emphasising that while the Government did not want to close businesses and seize collateral, capital needed to be freed-up to assist new entrepreneurs.

Disclosing that the Government pays $3 million annually to the BDB “in support of its bond interest”, Mr Turnquest revealed: “The bank has been told that within three

$3m annual bond support ends 2020 ‘One or two untouchables’ in BOB loans First BOB ‘bail out’ didn’t go far enough years the Government of the Bahamas will cease that support, and they will have to be self-sufficient.

The onus is on them to perform.”

An extraordinarily high level of loan delinquencies, coupled with a seeming reluctance to secure collateral for these borrowings, has been a key factor behind the BDB’s struggles and strained financial performance.

Its ability to finance, and assist, good quality ventures

by Bahamian entrepreneurs has been substantially diminished, with Mr Turnquest yesterday reiterating that the BDB was “being See PG B4

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

AML Foods is targeting two new stores in southern New Providence within the next five years, while also scouting for a “more modern” location for its Cost Right Nassau outlet.

Franklyn Butler II, the BISXlisted food and franchise group’s chairman, told shareholders in its annual report that it plans to continue rolling-out ‘neighbourhood’ food stores following next month’s planned opening of Solomon’s Yamacraw.

“Our future growth plan has begun to take shape,” he wrote.

“We are expanding our brand of neighbourhood supermarkets, and are looking forward to the opening of Solomon’s Yamacraw in the fall of this year.

“The opening of this new location will allow us to serve the residents of eastern New Providence and enter into a market that we previously had no presence [in]. The next See PG B5

New Providence

Scouting for Cost Right Nassau re-location Investing $3.75m in technology, training

GAVIN WATCHORN

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VAT’S ‘LIMITED ABILITY’ TO FURTHER CUT DEFICIT Best VAT in region at ‘peak efficiency’ IDB: Govt ‘must’ control spending Bahamas needs $265m swing

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net VALUE-Added Tax (VAT) is already operating at “peak efficiency” and has “limited” ability to further narrow the Bahamas’ near-$700 million fiscal deficit without major spending cuts.

The Inter-American Development Bank (IDB), in a paper released yesterday, argued that the Bahamas’ 7.5 per cent VAT has “limited long-term capacity” to increase revenues, meaning the Minnis administration must get spending under control.

While the IDB’s Caribbean Quarterly Bulletin rated the Bahamas as having the most efficient VAT in the Americas, even better than Canada’s, it warned that using this levy to generate more revenues as a percentage of GDP “might be difficult”.

As a result, it warned that the Government “must” continue with reforms to cut spending, zeroing in on the bloated civil service’s costs and the now-$429 million in annual subsidies to state-owned enterprises as areas meriting significant attention.

The IDB paper also reiterated that the Bahamas was squandering the benefits of the Western Hemisphere’s most efficient VAT through ever-increasing spending, which was “outpacing” the rise in revenues.

And with the Deputy Prime Minister yesterday revealing that the projected 2016-2017 fiscal deficit had ballooned to $695 million ‘and counting’, it said the Bahamas needed a 2.6 percentage point adjustment to its primary balance (the difference between revenues and recurrent spending, with interest payments stripped out) to stabilise its debtto-GDP ratio.

Based on the newly-revised GDP data, that implies a $265.72 million ‘swing’ to take the Bahamas’ primary balance from a narrow deficit to more than 2 per cent annual surplus.

See PG B5

PAGE 2, Friday, October 6, 2017

THE TRIBUNE

Be sensitive to millennial needs Current global research indicates that millennials (persons born between 1982 and 1998) will account for 50 per cent of the total global workforce by 2020.

There is no way of avoiding the large number of young people that are flooding into the workplace with great expectations of serving, and to be served.

Leaders representing ‘Generation X’ and the ‘Baby Boomer Generation’ must develop a higher degree of sensitivity to the needs that millennials have. Here are some ideas for engaging millennial workers in more meaningful ways:

message, the more likely they are to relate to, or appreciate, what you say.

1. Keep it brief, but meaningful

Face-to-face meetings and conference calls are not as effective with millennials.

Reach the younger generation where they already spend the most time - on their mobile devices. Try an online team portal for

Millennials have mastered the art of saying something meaningful in 140 characters or less. The more concise your own

2. At the same time, provide detail Just because you are concise does not mean you should skimp on the important information. Most millennials prefer to receive a detailed plan or instruction before jumping into a project. Present everything they need to know to do the job well, but skip flowery prose.

3. Choose the best medium for communication

collaboration with a mobile app, or get used to Skype.

own career path within the company.

8. Commit to a social bottom line

4. Understand the 24/7 communication cycle

6. Don’t condescend or make jokes about age

Non-traditional schedules are becoming more common in business, and millennials are prepared to work after they leave the office. Schedule digital communication to keep things moving outside the 9am to 5pm timeframe.

Millennials want and expect, to be taken seriously at work. Respect them, and they will respect you. And forget the: “This is what I was doing when you were born” jokes, which are tiresome and annoying.

Charitable giving and corporate volunteerism are very important to the millennial generation.

Make sure you are communicating your company contribution to the greater good on a regular basis.

5. Communicate the path to career growth

7. Demonstrate fairness in the workplace

According to a Harris Interactive survey for CareerBuilder, 61 per cent of 25-34 year olds surveyed believe they should be promoted within two to three years if they are doing a good job. Communicate performance assessments frequently, and make sure your younger workers understand their

Millennials support equality of all kinds. As such, leaders and coworkers must behave in a way that can never be perceived as prejudicial or biased towards - or against - anyone or any group of people. It is not political correctness as much as it is a genuine concern for equal rights.

9. Most important, nurture their passion This generation, more than any other, wants to feel as though their lives and what they do mean something. Use missiondriven terminology to communicate the overall purpose of your company, and their role in achieving those goals.

• NB: Ian R. Ferguson is a talent management and organisational development consultant,

IAN FERGUSON having completed graduate studies with regional and international universities.

He has served organsations, both locally and globally, providing relevant solutions to their business growth and development issues.

He may be contacted at tcconsultants@ coralwave.com.

Medical centre relaunches with specialist providers THE MedNet Group of Companies, headed by Dr Charles Diggiss, has relaunched the Centreville Medical Centre (CMC) at the corner of Collins Avenue and Sixth Terrace.

Services available include The Women’s Specialist Medical Centre; Ritecare Clinics for primary care and wound care/ treatment centre; Comprehensive Medical Associates, internal medicine specialists; Gastrocare; The Surgicentre for operating theatres; The Surgical Suite, featuring Riteweigh and multiple specialist surgeons; Femina Health; Pediatric Surgery Bahamas; Urology Care Bahamas; Kairos Eagle Clinical Pastoral Counselling; an an executive meeting room and conference facility Dr Diggiss said: “The re-launch is intended to

highlight the return of Centreville Medical Centre as a leading, modern healthcare facility in Nassau. This upgraded centre provides ‘the cutting edge’ of what is available in out-patient specialty care for all who view this location as their choice for quite a scope of healthcare services.”

The re-launch took place on Wednesday, October 4, and Dr Diggiss added: “We are especially proud of the broad scope of highlyregarded specialists whom we have been able to attract to provide their services from CMC.” The specialists include: Dr James Iferenta, Ritecare Clinics; Dr Margo Munroe and Dr Darbrielle HuntBurrows, Comprehensive Medical Associates; Dr Marcus Cooper, Gastrocare Bahamas; Dr Lorne

Charles, The Women’s Specialist Medical Centre.

Other specialist doctors are Dr Theodore Ferguson, Dr Nina Graham; Dr G. Ashaini Knowles; Dr Charles Diggiss; Dr Ross Downes; and Dr Greggory Pinto. Dr Livingston R. Malcolm will provide pastoral counselling.

Dr Diggiss added: “I was delighted to have been a part of the original development of Centreville Medical Centre back in the 1990s, and I now feel that a restored Centreville Medical Centre will be again a major participant in providing healthcare services in our country.”

Centreville Medical Centre will provide a blend of primary care and specialist services, and offer them to patients in both the private and public sector.

DR Ross Downes at The Surgicentre.

THE CENTREVILLE Medical Centre is centrally located and features a unique combination of healthcare services.

Govt needs ‘more creativity’ with permanent residency From pg B1 thinking because there are areas of the Bahamas that are struggling and need a little bit of stimulus.

“You take a place like Grand Bahama that’s in the doldrums, in a recession or depression. We’re thinking of New Providence and Paradise Island when we’re bumping the residency threshold to $750,000, and the ‘fast track’ threshold to $1.5 million.

“If we’re thinking of trying to stimulate Grand Bahama, why not think of a separate programme and lower it [the residency threshold] from $500,000 to $350,000 there, and from $1.5 million to $600,000.

Why not push some of these investors, and people investing for economic residency, to other areas rather than New Providence?”

Brent Symonette, the Cabinet minister with responsibility for Immigration, told the Nassau Conference on Wednesday that the Cabinet had agreed in principle to increase the permanent residency threshold from $500,000 to $750,000.

No indication was given on when this policy will be implemented, but Mr Symonette added that the Minnis administration wanted to reinstate the ‘fast

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track’ where foreigners making real estate investments worth $1.5 million or more have their applications processed within 21 days.

However, Mr Damianos reiterated: “These broad brush strokes saying that $750,000 and $1.5 million are the new marks is not creative thinking. How many people are buying a $1.5 million home in Cat Island to get their residency fast tracked?”

He suggested that a policy of lowering, rather than increasing, the permanent residency qualification could also be applied to struggling Family Island economies, not just Grand Bahama.

Spreading wealthy foreign buyers throughout the Bahamas could also distribute economic activity more evenly, given that the spending generated by their presence will create jobs and boost businesses.

Mr Damianos also argued that the Government should have focused on increasing permanent residency fees, rather than raise the qualification bar.

“I would have gone the other way,” he told Tribune Business. “To increase revenues I would have increased the cost of permanent residency rather than raising the entry threshold.

“I would say the Government could safely double the permanent residency fee from $10,000 to $20,000 for a wealthy person that wants to become a resident.

“I think they’re looking at the wrong fee,” Mr Damianos continued. “Maybe they have some reason for thinking this way, but I would be thinking of generating more revenue for the Immigration Department, the Treasury, and can we get more of these permanent residents that add to our economy. They don’t detract; they take anything from us.

“What is the significant difference for the Government from raising it from $500,000 to $750,000? What does that accomplish for the Government? What does that accomplish for the country? A guy coming here for permanent residency is worth millions.

He’s not scraping by and coming here for a home.”

Mr Damianos conceded that “I may be shooting myself in the foot” through his suggestions, given that Damianos Sotheby’s International Realty does not currently have a significant presence on Grand Bahama. However, he argued that the Bahamas could not afford for that island and its economy to fail.

“A big thrust of our company is New Providence, but I’m a Bahamian and I love the country,” he told Tribune Business. “If the Government can be creative, I would welcome it and be excited to see if they can stimulate Grand Bahama.

“I don’t want to see Grand Bahama bare and go down into a ghost town.”

THE TRIBUNE

Friday, October 6, 2017, PAGE 3

BAHAMAS URGED: SHOW YOU’RE NOT A ‘TAX HAVEN’

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net

THE Bahamas must aggressively demonstrate and market that it is not an ‘offshore tax haven’, a US tax attorney yesterday saying this nation is “fighting perception more often than reality”.

Caroline Ciraolo, a former US Department of Justice Tax Division head, and now partner at Kostelanetz & Fink, told Tribune Business: “I think there is a perception issue. I think

Ex-DOJ attorneys: You’re fighting perception Follow through on money launder prosecutions Warn on captive insurance pursuit that the Bahamas, like the Isle of Man, like the Channel Islands, is painted with a broad brush of ‘tax

haven’, so they are fighting perception more often than reality. We understand the frustration of that.”

Jay Nanavati, a former US Justice Department tax crimes prosecutor, who now heads Kostelanetz & Fink’s Washington D.C office with Mrs Ciraolo, pointed to the Caribbean Financial Action Task Force (CFATF) report which highlighted that there have not been many money laundering prosecutions in the Bahamas.

The CFATF, in its July 2017 assessment of the Bahamas’ anti-money laundering and counter-terror

financing regime, said there had been no money laundering convictions in the four years prior, and just one case was before the courts.

“If there aren’t problems then there shouldn’t be prosecutions, but to the extent that they are there, there is a lot to be said for the deference value of bringing robust cases sometimes. I know that these types of things can be difficult to do and prove, but I think it’s good for the image of the Bahamas to show that we don’t just say what we are supposed to but we do it,” said Mr Nanavati.

He and Mrs Ciraolo were speaking on the heels of the Association of International Banks and Trust Companies (AIBT) Nassau Conference. They warned the Bahamas to be careful about targeting the captive industry for growth, noting that the US Internal Revenue Service (IRS) has identified captives as a sector for audits and investigations.

“The captive industry is a growing industry. It certainly is something that places like the Bahamas, but BVI for instance, are seeking to attract,” said Mrs Ciraolo. “You have

to be cautious and aware of the global environment, because in January the US Internal Revenue Service identified captives as one of 13 campaigns that they were focused on in terms of audits and investigations.

“That is a very busy area in the US now. A lot of captives are under audit and investigations. It is important that the people involved in attracting those businesses, creating those businesses and driving clients to those businesses understand the landscape and can navigate the minefield.”

chief: ICT can be next BTC to further grow Chamber economic pillar ‘without fail’ franchise network

By NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net THE Bahamas Telecommunications Company (BTC) will continue to expand and strengthening its franchise store network, a senior executive yesterday saying this demonstrated its commitment to small businesses.

Carlyle Roberts, BTC’s vice-president for enterprise and strategic solutions, said the company has rolled out more than 30 franchise stores across the country.

“It is one of the ways in which BTC has been able align our words with our actions,” he said. “In developing the small business sector, I think the partnership with BTC enables persons to open their business alongside a business that is already successful and give them the head start. They get to have the branding, the products and get to be aligned with what we are doing with BTC.”

Mr Roberts added: “We have seen over 30 franchise stores, and we continue to look at how we expand on that model. It is an area that we are strengthening; strengthening our partnerships and looking at how we do business, and how we can make those stores even more successful.

“That is a model I think we will continue to utilise at BTC. It is a model that continues to help small business owners. They have been able to expand what they do. Some of them are in adjacent businesses or have been able to consolidate what they do.”

BTC has partnered with the Bahamas Chamber of Commerce and Employers Confederation (BCCEC) October to host Small Business Month in October. BTC and the BCCEC will look to highlight the country’s small business entrepreneurs by showcasing who they are, and what they are doing to contribute to the economy.

Both will host a number of initiatives, with the first week focused on training sessions to help improve small businesses.

The courses are International Labour Organisation (ILO) certified.

A PRIVATE sector executive yesterday said information and communications technologies (ICT) can become the next pillar of the Bahamian economy “without fail”.

Edison Sumner, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chief executive, said the Bahamas has one of the most robust technological footprints.

“Our fibre optic connectivity is bar none, our geographic location to the Americas is the most ideal,” he argued.

“We are situated where we can service the Caribbean and the Americas.

EDISON SUMNER We have not taken full advantage of that situation, and if we were to get more people involved we can grow the ICT sector.”

Mr Sumner added: “There is a tremendous opportunity for us to grow the ITC industry. I don’t

think we have tapped into the full potential of it yet, and once you promote that properly you can get more business coming in.”

Mr Sumner said the Bahamas can “wave a flag” and announce to the world it is ready for business, leveraging ICT to attract international companies.

“We can say to them that the infrastructure is here, the skills are here, and if they are not we can go through an apprenticeship to train the people that we have,” he added.

“I think that ICT can become the next real pillar of the Bahamian economy without fail. We have have worked tourism and financial services, but neither of those two industries - especially financial services - can work without technology being in place.”

COMMONWEALTH OF THE BAHAMAS IN THE SUPREME COURT

2015 CLE/GEN/01496

Common Law and Equity Division IN THE MATTER of an Indenture of Mortgage made the 15h day of July, A.D., 2009 made between Kieshla J. Goodman and Finance Corporation of Bahamas Limited.

AND IN THE MATTER of the Mortgages Act, Chapter 156 of the Revised Laws BETWEEN FINANCE CORPORATION OF BAHAMAS LIMITED

Plaintiff

AND KIESHLA J. GOODMAN

Defendant

To: Kieshla Goodman TAKE NOTICE that an action has been commenced against you in the Supreme Court of the Commonwealth of The Bahamas by Finance Corporation of Bahamas Limited, Main Branch, 323 Bay Street, Nassau, New Providence, Bahamas, in which the Plaintiff ’s claim is set out in the Originating Summons as renewed filed in this action on the 22nd day of September, A.D., 2015 seeking an Order to direct you to deliver up possession of the Mortgaged Property being Lot Numbered Eight (8) situated on the Eastern Side of Lazaretto Road off Carmichael Road in the Southern District of the Island of New Providence, Bahamas to Finance Corporation of Bahamas Limited within Twenty-eight (28) days of the Order and Judgment for the sum outstanding under the Indenture of Mortgage dated the 15th day of July, A.D., 2009.

And that it has been ordered that the publication of a notice of the entry of the Originating Summons filed on the 22nd day of September, A.D., 2015, Affidavit in support of application filed on the 30th day of December, A.D., 2015, ex parte Summons filed on the 13th day of May, A.D., 2016, Affidavit in support of ex parte Summons filed on the 19th day of July, A.D., 2016 and Order filed on the 22nd day of August, A.D., 2016 in The Tribune Newspaper and the Nassau Guardian Newspaper shall be deemed to be good and sufficient service of the said document upon you.

The Originating Summons will be heard before the Honourable Madam Justice Archer-Minns of the Supreme Court at The Judicial Complex, East Street, Nassau, New Providence, Bahamas on Thursday, the 9th day of November, A.D., 2017 at 9:30 o’clock in the forenoon, on which day you are to appear, and if you do not appear either in person or by your Attorney at the time and place abovementioned, such Order will be made as the Court thinks just.

If you desire to defend the said action, you must within fourteen (14) days from the publication of this advertisement, inclusive of the day of such publication, enter an appearance in person or by an attorney either (1) by handing in the appropriate forms duly completed, at the Registry of the Supreme Court, Ground Floor, BAF Financial Centre, Marlborough Street, Nassau, Bahamas, or (2) by sending them to that office by post.

A copy of the said Originating Summons, ex parte Summons, Affidavit in support of ex parte Summons and Order may be obtained from the Supreme Court Registry, Judicial Complex, East Street North, Nassau, Bahamas, or from the Attorneys for the Plaintiff below mentioned.

Dated the 27th day of September, A.D., 2017 HIGGS & JOHNSON Ocean Centre Montagu Foreshore East Bay Street Nassau, New Providence, Bahamas Attorneys for the Plaintiff

PAGE 4, Friday, October 6, 2017

BDB given 3 years to be ‘self-sufficient’ From pg B1 restructured with the aim of becoming self-sufficient”.

This is also designed to provide new lending capital, and the Deputy Prime Minister said controls and management were being put in place to ensure the BDB “does not become

a burden on the public purse”.

“I call on delinquent borrowers to go in and make arrangements,” he warned. “We have no interest in forcing people out of business or taking away businesses, but the Government has a wider obligation

Web shops slam ‘out of touch’ Gaming Minister From pg B1 continued to attract little domestic and foreign direct investment (FDI).

Besides taxation, Mr D’Aguilar had also suggested that the web shop sector was endangering the wider financial services industry’s integrity by functioning as unlicensed money transmission services providers without the necessary Know Your Customer (KYC) regime.

The Association yesterday pushed back hard on this angle, arguing that Mr D’Aguilar’s comments did not match “the facts”. It sought to turn the tables on the Minister by arguing that he was the one threatening “considerable harm” to the web shop gaming industry and, by extension, wider Bahamas.

Blasting Mr D’Aguilar’s address as “unfortunate, reckless and factually incorrect”, the Association told this newspaper: “As an industry that currently pays more in taxes than the three major casinos combined, it is unfortunate that the Minister with responsibility for gaming appears out of touch with the industry he presumes to oversee.

“If the Minister would have availed himself of the facts, he would know that the local gaming industry pays more in casino taxes than Resorts World Bimini, Atlantis and Baha Mar combined.

“Additionally, we would like to add that unlike

these casinos we have not received a penny in concessions from the Government. However, unlike those three major casinos, the local gaming operators are forced to pay 13 per cent in taxes, while Baha Mar, Atlantis and Resorts World enjoy a mere 5 per cent fee.”

Gaming house operators are currently required to pay 11 per cent of their taxable revenue or 25 per cent of earnings before interest, taxes, depreciation and amortisation (EBITDA), depending on which one is greater.

Mr D’Aguilar on Wednesday suggested that the Government was examining whether to impose new and/or increased taxes on web shop gaming, given the “eye popping” profits being generated by the eight operators.

“With the gaming houses being so cash rich, and the Government so cash-strapped fulfilling its requests for social services and education, I am sure the Minister of Finance will be looking to enhance his tax revenues from the sector,” the Minister said.

While not denying the “eye popping” profits, the Gaming House Operators Association yesterday expressed concern that the sector was being singled out, and discriminated against, when no other industries were subject to increased taxes solely because of large ‘bottom lines’.

THE TRIBUNE to the Bahamian people to ensure the BDB can fulfill its mandate and remain viable so it can assist other Bahamians.”

Turning to the troubled Bank of the Bahamas, Mr Turnquest criticised the former Christie administration’s October 2014 rescue plan for removing too few toxic loans from the balance sheet, suggesting there may have been “one of two untouchables”.

Referring to the latest $166 million non-performing loan transfer to Bahamas Resolve, the Deputy Prime Minister said: “A lot of those loans should have been transferred in the first rescue plan.

“Having kept them on the books of Bank of the Bahamas, and continuing to be non-performing, dragged down the ratios of

the bank and made for an unsustainable position.

“It was unfortunate the way it appeared to have been done. There may have been one or two untouchables, I don’t know, but it was not operating optimally.

While it [the first rescue] may have helped, it did not address all the issues at the bank.”

Mr Turnquest argued that the latest $166 million toxic loan transfer had better

cleaned up Bank of the Bahamas’ balance sheet, and freed up capital for it to begin lending again.

The Deputy Prime Minister expressed confidence in the ability of the bank’s Board and management to “create value for Bank of the Bahamas shareholders and wider society through innovative and creative financial products to help secure their lives and futures”.

“We find it concerning that the Minister would seek to justify an increase in taxes due to our profitability, when the same rationale is not utilised for the fuel industry, the alcohol industry or any other private entity,” it argued.

The Association also pointed out that web shop operating costs had automatically increased by 7.5 per cent as a result of being treated as ValueAdded Tax (VAT) exempt, meaning they cannot offset tax paid on their ‘inputs’ since it is not levied on customers.

This tax treatment, it added, differed from the hotel casinos who do collect VAT from customers on the Government’s behalf.

The Association then implied that Mr D’Aguilar had undermined the industry’s confidence in his ability to be an impartial regulator by describing it as a ‘cartel’.

“It is unfortunate to have someone presiding over an industry that he clearly does not support, but it leaves little doubt when the Minister refers to the industry as a ‘cartel’,” the Association said.

“This type of inflammatory language is unbecoming of a Minister of the Government, and sends a clear and chilling message that any agreement made with the Government can be changed on a whim. We have already seen this with Baha Mar, and it is no wonder that investors are apprehensive about putting their money in the Bahamas.”

Mr D’Aguilar has long held the position that the 10-year moratorium, which blocks any new operators entering the web shop industry until 2027, is anticompetitive and should never have been permitted.

The eight licensed operators, though, argue that the moratorium is just reward for their efforts, and that new entrants not should reap the benefits of their work in helping to legalise, regulate and tax the web shop sector.

Their stance is that the bar is necessary to prevent the industry from becoming over-saturated, and to allow existing operators to adjust to a regulated environment with higher costs and taxes.

The Association, meanwhile, added that Mr D’Aguilar had failed “to avail himself of the facts” in relation to both the industry’s customer due diligence and role as unlicensed money transmission providers.

“Since the implementation of the Gaming Act 2014, the local gaming operators Association has followed all KYC (Know Your Client) rules, and have all the required documentation on its patrons,” it said.

“Likewise, with respect to comments made by the Minister on money transfer services, that information is readily available but has never been requested by the Minister.”

The Association did not specify what “information” it was referring to, but concluded by warning that Mr D’Aguilar’s remarks “could cause considerable harm to the industry and the country at large”.

Individual web shop operators spoken to by Tribune Business yesterday were equally concerned by the potential fall-out from Mr D’Aguilar’s remarks, one saying of the Government: “I think they want to penalise us”.

In an e-mailed response to this newspaper, the operator agreed that while there was need for additional enforcement reforms, they were vehemently opposed to new or increased taxes.

“There are many things relative to this industry that the current government needs to look at,” they said. “I would not accept that additional taxes is one of them. I can’t say that I agree with that. I think that we are being taxed enough already.

“I have all of these fees that I have to pay, staff to pay, National Insurance

to pay...... I don’t see the need for more taxes, honestly, and I don’t think it’s fair for the Government to be looking to tax Bahamian-owned and operated businesses that employ Bahamians out of business.

“If they want to talk with us about how to improve the industry and that sort of thing, let’s sit down and talk, but this industry can’t be looked at as a cash cow.

I feel like because of all of the stigma surrounding the industry, I think they want to penalise us.”

Another web shop operator told Tribune Business: “Maybe the higher taxes is the Government’s way of restricting the proliferation of local gambling.

I am totally of the belief that the local industry is beyond the capacity of the discretionary income of the population. There are too many gambling outlets for a population of this size.”

His concerns echoed those of FML Group of companies founder, Craig Flowers, who has previously told Tribune Business there are too many “outstanding issues” facing the industry that have yet to be resolved, including the permitted number of web shop locations and locations per operator, plus zoning enforcement.

STCW BASIC SAFETY TRAINING The STCW course commences October 16th, 2017 at 9am at Ship Mate Training Center for persons working in or interested in the maritime industry. The course runs for 5 days, at the end of which an internationally recognized certificate is issued.

COURSE COVERS: 1.

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THE TRIBUNE

Friday, October 6, 2017, PAGE 5

VAT’s ‘limited ability’ to further cut deficit From pg B1 While the IDB paper was written before the recent national accounts data revisions, its conclusions further emphasise that the Minnis administration needs to deliver on its fiscal consolidation plans - especially spending controls and the proposed Fiscal Responsibility legislation.

“Implementation of VAT in 2015 contributed to an improvement in government revenues by some 3 per cent of GDP (from 16 to 19 per cent from fiscal year 2014-2015 to fiscal year 2015-2016,” the IDB’s quarterly bulletin said.

“However, further reforms might be required.

The current VAT structure appears to have reached peak efficiency, and garnering additional revenue relative to GDP might be difficult. This will probably require either increasing

rates (politically unfeasible) or improving efforts to collect current taxes through more efficient measures.”

Highlighting the need for Fiscal Responsibility legislation, and so-called ‘fiscal rules’ that would commit the Government to achieving specific ratios and targets, the IDB paper added: “In terms of expenditure, the only plan at present is the medium term fiscal plan, which recommends (but does not mandate) maintaining expenditures at 23 per cent of GDP. “The Government of the Bahamas must continue current expenditure reforms to reduce the burden on debt levels. Long-term reforms are needed for state-owned enterprises, which account for [subsidies worth] more than 7 per cent of GDP annually. It is estimated that pension liabilities, under their current structure, will rise to more than 200 per

AML Foods unveils 5-year growth plan From pg B1 step from this is to open new stores in both the south-west and south of New Providence. We also have plans to relocate Cost Right Nassau to a better, more modern facility.”

Gavin Watchorn, AML Foods’ chief executive, confirmed the company’s five-year growth strategy and plans to relocate Cost Right from its current location at Town Centre Mall when its lease expires in early 2020.

The group has acquired a 4.506 acre site on Charles Saunders Highway, between Seabreeze Estates and Pinewood Gardens, as the potential site for another ‘neighbourhood’ supermarket.

“We have also purchased property on Charles Saunders Highway in southern New Providence, another area that we do not currently serve and that we look forward to establishing our presence in,” Mr Watchorn told shareholders.

“Earlier this year, we earnestly begun searching for property in New Providence to relocate Cost Right Nassau. Our existing location is far from ideal in many respects, and we are excited about being able to offer

small business owners and consumers a true warehouse club experience.

“We have targeted two more geographic areas for growth of our Solomon’s brand, and hope to complete this phase of our expansion within five years. These acquisitions are key steps of our strategic plans for growth, but represent only the first of four areas that we have identified as critical to achieving our long-term vision and purpose.”

AML Foods’ annual report for the 12 months to end-April 2017 disclosed that the Cost Right relocation will also involve finding a new home for its corporate head office, which is also located at the Town Centre Mall.

“At the new location, the company hopes to replicate Cost Right Freeport’s floor plan, which accommodates the entire store (grocery and general merchandise) on one level, which is more in keeping with the club format,” AML Foods said.

“The company anticipates being able to realise significant operational efficiencies with this change.”

Cost Right Nassau currently occupies two floors at the Town Centre Mall, and the BISX-listed group is focused on the relocation

cent of GDP over the next few decades and be fiscally unsustainable.”

That refers to the unfunded, ‘pay-as-yougo’, civil service pension liabilities that the KPMG accounting firm previously estimated at around $1.5 billion. These liabilities are set to increase to $2.5 billion by 2022, and $4.1 billion by 2032, unless reforms are enacted.

The IDB paper, meanwhile, credited VAT’s introduction in 2015 for “stabilising” the Government’s revenue base, and reducing reliance on import and trade-related taxes that were vulnerable to fluctuations in global economic conditions.

It described the Bahamas’ VAT as “one of the most efficient and least distortionary” VATs in the world, due to its low rate/broad base model with few exemptions.

However, the IDB paper made clear that the Government cannot rely on VAT alone to cure its fiscal ills, eliminate the $300 million-plus annual deficits and

stabilise the $7.2 billion-plus national debt.

“VAT reforms in 2015 have increased tax revenues in recent years and reduced the Budget deficit in the short-term, but the VAT provides limited long-term capacity to continue increasing revenues to meet rising expenditures,” the IDB paper warned.

“Mitigating fiscal challenges requires controlling public sector expenditures.

The path of expenditures in the Bahamas is on an upward trajectory and is currently outpacing revenue gains from implementation of the VAT reforms.

“If this trend continues, declining fiscal space and rising debt levels will limit the Government’s ability to direct scarce resources to other pro-growth areas such as vital infrastructure development,” it continued.

“Successful reforms of expenditures must include plans to restructure the administration of ministries and state-owned enterprises to provide more efficient service with fewer

resources, and to channel any savings to partially fund infrastructure maintenance and growth-driven infrastructure development.”

The IDB noted the Government’s efforts at tax administration reform, and drive to consolidate more than 30 different taxes and revenues streams under the Central Revenue Agency.

This process is due for completion in 2019, but the paper urged the Minnis administration to make the tax-paying process more user-friendly, given that the time involved had quadrupled.

“Currently, there is a lack of online services and e-filing/e-payment options, and few public-facing offices, all of which contributes to long wait times,” the IDB paper said. “This has been exacerbated by the complexity of the VAT, despite an online payment system.

“One result has been that the ranking of the Bahamas on the ‘ease of paying taxes’ indicator in the World’s Bank’s Doing

Business Index has plummeted from 24th to 95th, and the approximate time to pay has increased from 58 to 233 hours.”

While government spending has averaged 23 per cent over the past five years, the IDB paper said it accounted for just 6 per cent of gross value-added in the economy. The recurrent budget, accounting for 90 per cent of government spending, is averaging 21 per cent of GDP. “Wages and salaries, and subsidies and transfers (primarily to state-owned enterprises), account for about a third of the expenditures, or over 7 per cent of GDP each,” the IDB paper said. “The remainder of expenditures is for goods and services (3.6 per cent of GDP) and interest payments (3 per cent of GDP).

“As wages and salaries, and subsidies to state-owned enterprises, constitute most of the Bahamian budget, they are the best places to consider improving the efficiency of government expenditures.”

simultaneously with its growth plans.

Mr Watchorn added that AML Foods was also targeting technology upgrades and staff development as priorities, along with a renewed focus on “not only meeting but exceeding customer expectations.”

“The second area of focus will be the use of technology to drive our decision-making and improve our performance,” he told shareholders. “We will invest $3 million over the next 36 months to greatly enhance our technology capabilities, installing a modern, stateof-the-art operating system for our food distribution division. This will eliminate manual processes and integrate our systems into a single platform.

“The third area of focus will be the training and development of our team.

The prior levels of investment in training were well below what was required, and we now find ourselves having to catch up. We will invest $750,000 in 2018 to establish training centres of excellence in New Providence and Grand Bahama.”

Mr Watchorn then conceded: “Underlying all of these key steps is our commitment to creating a culture within AML Foods that is focused not only on achievement but also on our people.

“We took a hard look at ourselves and realised that in our drive for improved

performance we have not invested enough in our people. I have committed to our leaders and team that we will make this right – we cannot move our company forward if our people do not come along with us.”

Looking ahead to its current financial year, AML Foods reiterated its concerns about the impact Grand Bahama’s economic woes may have on its various Freeport-based formats.

“Even though the overall economic outlook for Freeport remains sluggish, the

company is still very pleased with the overall performance of its three stores in that market,”the group said.

“The closure of major hotels in Grand Bahama has caused a decrease in wholesale sales, but retail sales remains strong. Like other stores in the Port Lucaya Marketplace, sales at the company’s pizza store (Domino’s) at this location have been severely affected.”

AML Foods added that “competition from unconventional vendors has increased” as a result of

hotel closures and continued high unemployment, but indicated that it was anticipating an economic boost from Baha Mar’s full opening in March/April 2018.

“During periods of high unemployment or underemployment, the risk of shrink and loss and damage increases,” the group said.

“In order to mitigate this risk, the company has allocated additional human resources to supplement physical inventory counts.”

COMMONWEALTH OF THE BAHAMAS IN THE SUPREME COURT Common Law & Equity Division Between RBC ROYAL BANK BAHAMAS LIMITED (Formerly Royal Bank of Canada) AND SHERIA B. J. FRAZER

2016 CLE/GEN/00836

Plaintiff` Defendant

To: Sheria Frazer TAKE NOTICE that an action has been commenced against you in the Supreme Court of the Commonwealth of The Bahamas by Finance Corporation of Bahamas Limited, Main Branch, 323 Bay Street, Nassau, New Providence, Bahamas, in which the Plaintiff ’s claim is set out in the Writ of Summons as renewed filed in this action on the 8th day of June, A.D., 2016 seeking Judgment for the sum outstanding under the Indenture of Chattel Mortgage dated the 6th day of November, A.D., 2013.

And that it has been ordered that the publication of a notice of the entry of the Writ of Summons as renewed filed on the 8th day of June, A.D., 2016, ex parte summons filed 23rd May, 2017; Supporting Affidavit in support of the ex parte summons filed on 30th June, 2017; and Order dated the 28th day of September, A.D., 2017 in The Tribune Newspaper and the Nassau Guardian Newspaper shall be deemed to be good and sufficient service of the said document upon you.

If you desire to defend the said action, you must within fourteen (14) days from the publication of this advertisement, inclusive of the day of such publication, enter an appearance in person or by an attorney either (1) by handing in the appropriate forms duly completed, at the Registry of the Supreme Court, Ground Floor, BAF Financial Centre, Marlborough Street, Nassau, Bahamas, or (2) by sending them to that office by post.

A copy of the said Writ of Summons, ex parte summons, Affidavit in support of ex parte summons and Order may be obtained from the Supreme Court Registry, Judicial Complex, East Street North, Nassau, Bahamas, or from the Attorneys for the Plaintiff below mentioned.

Dated the 2nd day of October, A.D., 2017 HIGGS & JOHNSON Ocean Centre Montagu Foreshore East Bay Street Nassau, New Providence, Bahamas Attorneys for the Plaintiff

COMMONWEALTH OF THE BAHAMAS IN THE SUPREME COURT

2015 CLE/GEN/00880

Common Law and Equity Division IN THE MATTER of an Indenture of Mortgage made the 22nd day of December, A.D., 2008 between Camille Y. Munroe and Finance Corporation of Bahamas Limited.

AND IN THE MATTER of the Mortgages Act, Chapter 156 of the Revised Laws BETWEEN FINANCE CORPORATION OF BAHAMAS LIMITED AND CAMILLE Y. MUNROE

Plaintiff

Defendant

To: Camille Munroe TAKE NOTICE that an action has been commenced against you in the Supreme Court of the Commonwealth of The Bahamas by Finance Corporation of Bahamas Limited, Main Branch, 323 Bay Street, Nassau, New Providence, Bahamas, in which the Plaintiff ’s claim is set out in the Originating Summons as renewed filed in this action on the 23rd day of June, A.D., 2015 seeking an Order to direct you to deliver up possession of the Mortgaged Properties being:- (i) Lot numbered Thirteen (13) of the Subdivision known as “Carmichael Meadows Subdivision” in the Western District of the Island of New Providence and (ii) Unit numbered Two (2) in the Condominiums called and known as “Dreamquest Condominiums”, New Providence, Bahamas to Finance Corporation of Bahamas Limited within Twenty-eight (28) days of the Order and Judgment for the sum outstanding under the Indenture of Mortgage dated the 22nd day of December, A.D., 2008.

And that it has been ordered that the publication of a notice of the entry of the Originating Summons as renewed filed on the 23rd day of June, A.D., 2015, Affidavit in support of application filed on the 4th day of September, A.D., 2015, ex parte Summons for substituted service filed 25th July. 2016; Supporting Affidavit in support of the ex parte summons filed on 25th July, 2016; and Order filed on the 28th day of September, A.D., 2017 in The Tribune Newspaper and the Nassau Guardian Newspaper shall be deemed to be good and sufficient service of the said document upon you.

If you desire to defend the said action, you must within fourteen (14) days from the publication of this advertisement, inclusive of the day of such publication, enter an appearance in person or by an attorney either (1) by handing in the appropriate forms duly completed, at the Registry of the Supreme Court, Ground Floor, BAF Financial Centre, Marlborough Street, Nassau, Bahamas, or (2) by sending them to that office by post.

A copy of the said Originating Summons, ex parte Summons, Affidavit in support of ex parte Summons and Order may be obtained from the Supreme Court Registry, Judicial Complex, East Street North, Nassau, Bahamas, or from the Attorneys for the Plaintiff below mentioned.

Dated the 2nd day of October, A.D., 2017 HIGGS & JOHNSON Ocean Centre Montagu Foreshore East Bay Street Nassau, New Providence, Bahamas Attorneys for the Plaintiff

PAGE 6, Friday, October 6, 2017

THE TRIBUNE

STOCKS RISE; S&P 500 MATCHES LONGEST WINNING RUN IN 4 YEARS

By STAN CHOE Associated Press

THE NASDAQ logo displayed in the electronic stock trading company’s Times Square location in New York. U.S. stock indexes peeked higher in morning trading on Thursday, Oct. 5, 2017, and if the Standard & Poor’s 500 maintains its slight gain, it would mark the longest winning streak for the index in four years. (AP Photo/ Mark Lennihan) helping stocks, and on Thursday they included a stronger-than-expected rebound in U.S. factory orders during August and a drop in the number of workers applying for unemployment benefits last week.

Friday’s report from the Labor Department on monthly job growth will likely show momentum in the opposite direction, with most economists forecasting a drop-off in hiring. But that’s mostly because of damage caused by recent hurricanes, which hopefully will be only temporary.

With the economy and corporate earnings seemingly solid, TD Ameritrade’s Kinahan said if there is a trigger for a downturn in stocks, it would likely be either a new flash in political tensions with North Korea or somewhere else in the world, or a stumble in Washington’s progress to reform the tax system.

Netflix jumped to the biggest gain in the S&P 500 Thursday after it raised the price on its most popular U.S. video streaming plan by 10 percent. Shares rose $9.94, or 5.4 percent, to $194.39.

Constellation Brands was close behind after it reported stronger earnings for the latest quarter and raised its forecast for upcoming profit. The company has been focusing on the higher end of the beer, wine and spirits markets. Its stock rose $8.07, or 4 percent, to $209.25.

On the losing end was student-loan servicing company Navient, which fell $2.09, or 14.3 percent, to $12.61. It said it was buying Earnest, a lender, for $155 million and would suspend its stock buyback program through 2018. Pennsylvania’s attorney general also alleged in a lawsuit filed Thursday that Navient improperly added billions of dollars in costs to borrowers.

The yield on the 10-year Treasury note climbed to 2.34 percent from 2.32 percent late Wednesday.

Higher interest rates tend to help financial stocks on the expectation that banks will make bigger profits from lending, and financials in the S&P 500 rose 1 percent.

Stock markets overseas were generally quiet, as

AS TAX OVERHAUL UNFOLDS, SOME INVESTING ANGLES TO CONSIDER

highest tax rate and the lowest is at a 30-year high, according to Deutsche Bank.

“The last time we had that gap being so high, we got tax reform in 1986,” says Thatte.

“Following the tax reform in 1986, the high-tax paying companies at that time did outperform the low-tax paying ones for the next two years or so.”

Thatte recommends that investors looking to bet on the tax reform favor companies in the Russell 2000 index of small-cap stocks over S&P 500 companies.

The Russell has gained about 1.6 percent since the plan was unveiled, compared to a 1.2 percent gain in the S&P 500 index.

Should tax reform pass, it’s also a good bet that interest rates will move higher, which will benefit banks and other financial companies, Thatte adds.

He also favors value stocks over growth-oriented stocks.

“We are looking for that envelope kind of strategy that does well, even if tax reform does not happen,” Thatte says. “But if tax reform does happen, they get an even larger boost.”

Among top 50 Russell 2000 companies that stand to benefit the most from a tax cut are Skywest, Vectrus and KapStone Paper and Packaging, according to Deutsche Bank. Some S&P 500 companies that are paying higher average tax rates, and would benefit from a tax cut, are Hilton Worldwide Holdings, Charter Communications and Dollar Tree.

The White House’s tax reform proposal also includes a provision to encourage multinational companies to bring back, or repatriate, cash that they’ve kept overseas. All told,

NEW YORK (AP) — The last time the stock market had this long a winning streak, Twitter shares weren’t even a part of it yet.

Yet another gain for stocks on Thursday sent the Standard & Poor’s 500 index higher for an eighth straight day, its longest winning streak since July 2013, which was months before Twitter shares started trading publicly. It’s the latest step higher for a market that’s methodically climbed to record after record for much of this year as both the economy and corporate profits have improved.

The S&P 500 rose 14.33 points, or 0.6 percent, to 2,552.07. The Dow Jones industrial average gained 113.75, or 0.5 percent, to 22,775.39 and the Nasdaq composite rose 50.73, or 0.8 percent, to 6,585.36. All three indexes added to their records set a day earlier, again.

All those moves higher actually have some professional investors a bit

By ALEX VEIGA Associated Press THE Trump administration’s plans to slash corporate taxes and make other business-friendly changes to the nation’s tax laws have helped lift U.S. stocks in recent weeks.

And depending on which changes, if any, ultimately end up in signed into law, more companies could see bigger gains.

“The market is still not pricing in a lot for tax reform, and for good reason,” says Parag Thatte, a market strategist at Deutsche Bank.

Even with a ways to go to a final tax package,

nervous, because even the healthiest markets tend to have some sharp sell-offs from time to time. The last time the S&P 500 had a pullback of just 5 percent was more than a year ago.

“What’s really troubling most people more than anything is that we just go straight up,” said JJ Kinahan, chief strategist at TD Ameritrade. “There hasn’t been a pullback. That’s what most on Wall Street are trying to come to grips with.”

Encouraging reports on the economy have been

strategists and fund managers have identified some investment angles for investors looking to trade on the prospect of a more business-friendly tax policy: Tax reform should benefit many smaller companies, as well as multinationals with a lot of profits parked overseas. Interest rates could rise, favoring financial institutions.

Under the administration’s tax plan, the first major overhaul of the tax code in three decades, corporations would see their top tax rate cut from 35 percent to 20 percent. For a period of five years, companies could further reduce how much they pay by immediately writing

off their investments. The plan also would impose a new, lower tax on overseas corporate profits and create a new tax structure for overseas business operations of U.S. companies.

Given those details, some companies are likely to reap bigger benefits should the proposal become law. Smallcap companies, for example, are expected to get a healthier boost from the proposed cut to the corporate tax rate than most large-cap companies. That’s because small-cap companies tend to pay a higher tax rate now than large-cap firms.

Consider that the gap between the tax rates paid by the companies with the

MARKET REPORT THURSDAY, 5 OCTOBER 2017

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

BISX ALL SHARE INDEX: CLOSE 1,912.98 | CHG 16.94 | %CHG 0.89 | YTD -25.23 | YTD% -1.30 BISX LISTED & TRADED SECURITIES 52WK HI 4.38 19.17 9.09 3.70 1.96 0.15 5.83 8.60 6.30 11.50 14.49 2.52 1.60 6.00 10.00 11.00 3.59 7.25 12.51 11.00

52WK LOW 4.06 17.43 8.19 3.50 1.26 0.12 3.80 8.40 5.83 9.46 10.00 2.18 1.40 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 1.26 0.15 3.92 8.60 6.10 11.25 10.01 2.59 1.40 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 100.00 100.00 100.00 109.36 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

CLOSE 4.28 17.43 9.09 3.65 1.26 0.15 3.92 8.60 6.10 11.50 10.01 2.59 1.40 6.00 9.75 7.08 3.59 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 0.25 0.00 0.00 0.00 0.00 0.00 0.00 0.14 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

109.53 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.17 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 2,085 100

1,000

3,000

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$ 0.444 0.932 -0.223 0.540 -1.373 0.000 -0.857 0.611 0.574 0.562 0.582 0.102 0.392 1.217 0.743 0.575 0.310 -0.668 0.543 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 0.050 0.290 0.450 0.000 0.113 0.140 0.600 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 9.6 18.7 N/M 6.8 N/M N/M -4.6 14.1 10.6 20.5 17.2 25.4 3.6 4.9 13.1 12.3 11.6 -10.5 23.0 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 0.0

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

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

there’s more than $1 trillion in cash held abroad by S&P 500 companies, according to Deutsche Bank.

The last time the government did this, in 2004, companies were given a tax “holiday” on overseas profits that let them bring money back into the U.S. at a discount to the 35 percent tax rate. Most of the $300 billion that companies repatriated went toward share buybacks.

What does that mean for investors? It could mean some multinational companies that elect to bring back cash held overseas could use some of it for buybacks or increase their dividends to investors.

In a research note published last week, Goldman Sachs projects that S&P 500 companies will bring back $250 billion of their total untaxed overseas cash next year.

NOTICE

NOTICE is hereby given that DEVINSON CADET of Carmichael Rd., New Providence, 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 6th day of October, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

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%

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

YIELD 1.87% 5.74% 0.00% 5.75% 0.00% 0.00% 0.00% 3.49% 3.61% 3.13% 5.69% 2.32% 3.57% 4.83% 4.62% 0.00% 3.15% 2.00% 4.80% 0.00%

exchanges in several of Asia’s biggest exchanges were closed for holidays.

Japan’s Nikkei 225 index was virtually flat, France’s CAC 40 rose 0.3 percent, Germany’s DAX was close to flat and the FTSE 100 in London rose 0.5 percent.

The dollar fell to 112.85 Japanese yen from 112.98 yen late Wednesday. The euro dipped to $1.1708 from $1.1764, and the British pound slipped to $1.3116 from $1.3250.

In the commodities markets, benchmark U.S. crude rose 81 cents, or 1.6 percent, to settle at $50.79 per barrel. Brent crude, the standard for international oil prices, rose $1.20 to $57 per barrel.

In other energy trading, heating oil rose 1 cent to $1.79 a gallon, wholesale gasoline rose 3 cents to $1.61 a gallon and natural gas fell 2 cents to $2.92 per 1,000 cubic feet.

The price of gold fell $3.60 to $1,273.20 an ounce, silver edged up 1 cent to $16.64 an ounce and copper jumped 9 cents to $3.05 a pound.

NOTICE PRIME GAINS LIMITED N O T I C E IS HEREBY GIVEN as follows: (a) PRIME GAINS 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 5th October, 2017 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas Dated this 6th day of October, A. D. 2017

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

_________________________________ Bukit Merah Limited Liquidator

THE TRIBUNE

Friday, October 6, 2017, PAGE 7

HOUSE PASSES GOP BUDGET IN KEY STEP FOR UPCOMING TAX DEBATE

By ANDREW TAYLOR Associated Press WASHINGTON (AP) — The House on Thursday passed a $4.1 trillion budget plan that promises deep cuts to social programs while paving the way for Republicans to rewrite the tax code later this year.

The 2018 House GOP budget reprises a controversial plan to turn Medicare into a voucher-like program for future retirees as well as the party’s efforts to repeal the “Obamacare” health law. Republicans controlling Congress have no plans to actually implement those cuts while they pursue their tax overhaul.

That’s especially so in the Senate, where the Budget Committee on Thursday gave party-line approval to a companion plan.

Instead, the nonbinding budget’s chief purpose is to set the stage for a tax overhaul plan that is the party’s top political priority as well as a longtime policy dream of key leaders like Speaker Paul Ryan.

The White House issued a statement saying the House plan is a key step toward “Making America Great Again.”

The House measure, passed by a near partyline vote of 219-206, calls for more than $5 trillion in spending cuts over the coming decade, promising to slash Medicaid by about $1 trillion over the next 10 years, cutting other health care costs, and forcing huge cuts to domestic programs funded in future years by Congress.

“It’s a budget that will help grow our economy, and it’s a budget that will

help rein in our debt,” said Ryan, R-Wis. “It reforms Medicaid. It strengthens Medicare.”

But Republicans are not actually planning to impose any of those cuts with follow-up legislation that would be required under Washington’s Byzantine budget rules. Instead, those GOP proposals for spending cuts are limited to nonbinding promises, and even a token 10-year, $200 billion spending cut package demanded by tea party House Republicans appears likely to be scrapped in upcoming talks with the Senate.

Instead, the motivating force behind the budget measures is the Republicans’ party-defining drive to cut corporate and individual tax rates and rid the tax code of loopholes. They promise this tax “reform” measure will put the economy in overdrive, driving economic growth to the 3 percent range, and adding a surge of new tax revenues.

“In order to pay for these huge tax breaks for millionaires and billionaires, this Republican budget makes savage cuts to the life and death programs that mean so much to ordinary Americans,” said Sen. Bernie Sanders, I-Vt. Passing the measure in the House and Senate would provide key procedural help for the tax measure because it sets the stage for follow-on legislation that can’t be filibustered by Senate Democrats.

Republicans used the same so-called reconciliation procedure in their failed attempt to kill “Obamacare,” including its tax surcharges on wealthy people.

“Through reconciliation, our budget specifically paves the way for progrowth tax reform that will reduce taxes for middleclass Americans and free up American businesses to grow and hire,” said Rep. Diane Black, R-Tenn., who chairs the House Budget Committee.

Eighteen Republicans opposed the measure, including several from high-tax states like New York and New Jersey who are concerned that the upcoming tax effort would repeal the deductions for state and local taxes.

Democrats blasted the sweeping spending cuts proposed by Republicans — more than $5 trillion over 10 years in the House plan and somewhat less in the Senate GOP measure — as an assault on middleclass families and the poor.

“Is it a statement of our values to take a halftrillion dollars out of Medicare to give a tax cut to the wealthiest people in our country?” said House Minority Leader Nancy Pelosi, D-Calif.

The Senate Budget Committee’s companion plan approved Thursday differs in key details — but would still result in a deficit of $424 billion in 2027, according to the Congressional Budget Office.

The House measure assumes the upcoming tax bill won’t add to the deficit; the Senate version, however, would permit the measure to add $1.5 trillion to the $20 trillionplus national debt over the coming 10 years. The final version is likely to stick closely to the Senate measure in key respects. A final House-Senate agreement

SEN. BERNIE SANDERS, I-Vt., the ranking member of the Senate Budget Committee, is joined at right by Chairman Mike Enzi, R-Wyo., as members vote on amendments during the markup of Senate’s fiscal year 2018 budget resolution, on Capitol Hillyesterday.

SENATE Minority Leader Chuck Schumer, D-N.Y., uses charts to contest the Republican version of tax reform, during a news conference. (AP Photos/J. Scott Applewhite) won’t come until November, Black said, but she anticipated conflict over the Senate plans.

“That is certainly going to be a very lively discussion,” Black said of House-Senate talks. “Our members are concerned about (budget)

balance and they’re also concerned about the debt and deficits.”

The real-world trajectory of Washington, however, is for higher deficits as Republicans focus on tax cuts, a huge hike in the defense budget, and a

growing disaster aid tally that is about to hit $45 billion.

“The train’s left the station, and if you’re a budget hawk, you were left at the station,” said Rep. Mark Sanford, R-S.C.

PAGE 8, Friday, October 6, 2017

THE TRIBUNE CIVIL rights leader Rep. John Lewis, D-Ga., speaking, joined by, from left, former Rep. Gabby Giffords of Arizona, and Rep. Mike Thompson, D-Calif., call for action on gun safety legislation with fellow Democrats on the House steps Wednesday morning after the deadly mass shooting in Las Vegas this week.

Giffords survived an assassination attempt in 2011 while speaking to constituents in Tucson.

WHITE HOUSE, NRA, CONGRESS AGREE ON REGULATING BUMP STOCKS

By ERICA WERNER Associated Press WASHINGTON (AP) — The National Rifle Association announced its support Thursday for regulating “bump stocks,” devices that can effectively convert semi-automatic rifles into fully automated weapons and that were apparently used in the Las Vegas massacre to lethal effect. It was a surprising shift for the leading gun industry group, which in recent years has resolutely opposed any gun regulations. Immediately afterward the White House, too, said it was open to such a change.

The NRA announcement followed comments from leading congressional Republicans including House Speaker Paul Ryan that Congress should take a look at the devices, which were little-known even to gun enthusiasts prior to Sunday’s bloodbath. A gunman pumped bullets from a casino high-rise into a crowd of concertgoers below, killing 59 and wounding hundreds, apparently using legal “bump

stocks” to increase firing speed from his semi-automatic weapons.

“The National Rifle Association is calling on the Bureau of Alcohol, Tobacco, Firearms and Explosives (BATFE) to immediately review whether these devices comply with federal law,” the NRA said in a statement. “The NRA believes that devices designed to allow semi-automatic rifles to function like fullyautomatic rifles should be subject to additional regulations.”

White House spokeswoman Sarah Huckabee Sanders said in response, “We welcome that and a conversation on that. ... It’s something we’re very open to. It’s something we want to be part of the conversation on going forward.”

President Donald Trump had discussed the issue with lawmakers on the way back from visiting Las Vegas on Wednesday, according to Rep. Mark Amodei, R-Nevada, who traveled with the president aboard Air Force One. “Bump stocks” originally were intended to help people with limited hand

mobility fire a semi-automatic without the individual trigger pulls required. They can fit over the rear shoulder-stock assembly on a semi-automatic rifle and with applied pressure cause the weapon to fire continuously, increasing the rate from between 45 and 60 rounds per minute to between 400 and 800 rounds per minute, according to the office of Sen. Dianne Feinstein, D-Calif., who introduced legislation this week to ban them.

The government gave its seal of approval to selling the devices in 2010 after concluding that they did not violate federal law.

The endorsement from the NRA and congressional Republicans for a change in law or policy to regulate guns, however narrow, marked a shift. Inaction has been the norm following other mass shootings, including the Sandy Hook, Connecticut, massacre of schoolchildren five years ago, last year’s bloodbath at the Pulse nightclub in Florida, and a baseball field shooting this year in which House Majority Whip Steve Scalise came close to death.

FORMER Rep. Gabby Giffords of Arizona who survived an assassination attempt in 2011, flanked

by Rep. Mike Thompson, D-Calif., left, and Rep. John Lewis, D-Ga., right, joins House Democrats in a call for action on gun safety legislation on the House steps Wednesday morning after the deadly mass shooting in Las Vegas. (AP Photos/J. Scott Applewhite)