10072019 BUSINESS

business@tribunemedia.net

MONDAY, OCTOBER 7, 2019

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S&P gives Bahamas major post-Dorian lift

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

S

TANDARD & Poor’s (S&P) has given The Bahamas a muchneeded post-Dorian boost by asserting that this nation is “well-positioned to handle the fall-out” from the category five storm.

The international credit rating agency, in a preliminary assessment that suggested no further downgrade to The Bahamas’ sovereign credit rating is imminent, added that

• Nation ‘well positioned’ to cope • No imminent downgrade threat • Risks tilted towards medium-term the hurricane’s long-term impact “could be limited” despite it devastating islands that account for between 15-20 percent of gross domestic product (GDP).

Echoing sentiments expressed by K Peter Turnquest, deputy prime minister, last week, S&P said the extent of Dorian’s blow for both the economy and Bahamian sovereign creditworthiness will ultimately

Deep Water Cay close, deals east GB harsh blow

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net EAST Grand Bahama’s economy has been dealt a devastating blow after Deep Water Cay yesterday said it had no alternative but to cease operations with Dorian clean-up alone to cost $1m.

The renowned bonefishing lodge, whose owners have invested some $44m in upgrades over the past decade, said in a statement that operations would end immediately.

It explained that the extent of Dorian’s devastation to homes, lodges and

guest facilities had been catastrophic after the category five hurricane stalled over the area for almost 48 hours, and the necessary infrastructure required to begin restoration efforts had also been wiped out.

Since Dorian struck, Deep Water Cay has been providing emergency aid and supplies, raising charitable funds, assessing the damage to its property and liaising with insurance adjusters.

It said yesterday that the clean-up of island homes, lodges, and guest facilities will require barges and

SEE PAGE 4

Sarkis blasts CCA for ‘cherry picking’ legal arguments

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net SARKIS Izmirlian has accused Baha Mar’s main contractor of “cherry picking” and “distorting” legal quotations to underpin its “shareholder oppression” counter-claim against him.

Baha Mar’s original developer, and his BML Properties vehicle, are alleging that China Construction America (CCA) and its affiliates are selectively quoting prior legal rulings to uphold their bid to bring a claim under Bahamian law before the New York State Supreme Court.

SARKIS IZMIRLIAN Mr Izmirlian, in his latest effort to have CCA’s $150m claim against him thrown out, sought to turn the tables on the Chinese contractor’s assertion that a Bahamian ruling cited by his attorneys actually undercut his own case.

SEE PAGE 5

depend on how well the government “responds in a timely manner” to all the challenges created by this natural disaster.

It also agreed with the Central Bank’s forecast that Dorian may not have wiped out all projected Bahamian GDP growth for 2019, given that only two islands were severely impacted and much of the winter tourism season’s gains were

already locked in.

S&P said the timing of Dorian’s arrival, right at the start of the traditional trough or “valley” in Bahamian tourism, was another factor that may prevent the storm causing “a meaningful deterioration in The Bahamas’ economy, fiscal performance and debt burden”.

SEE PAGE 4

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Dorian restoration has ‘nation’s fiscal future in its hands’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

GOVERNMENT officials managing the Hurricane Dorian recovery efforts “have the fiscal success of the country in their hands”, a prominent governance reformer has warned.

Robert Myers, the Organisation for Responsible Governance’s (ORG) principle, told Tribune Business that The Bahamas will face “considerable fiscal problems” if poststorm restoration results in massive cost overruns and waste rather than a “value for money” rebuild.

“What a scary time it is,” he said. “No other way

ROBERT MYERS to put it. It’s a challenging time for The Bahamas and the government, and I just hope we can come out the other side. The people managing this process have to realise they have the whole country at stake.

“The fiscal success of the country is in their hands. If

SEE PAGE 5

PAGE 2, Monday, October 7, 2019

THE TRIBUNE

DISNEY DELIVERS KITS TO VICTIMS OF DORIAN DISNEY Cruise Line members have assembled more than 1,500 Clean the World personal hygiene kits to assist Bahamian victims of Hurricane Dorian.

The Disney Dream delivered the kits to Nassau where they were distributed to shelters for hurricane evacuees from Abaco and Grand Bahama.

“Our Disney team cares deeply about the well-being of our friends and neighbours in The Bahamas,” said Jeff Vahle, president of Disney Cruise Line.

“Our cast members were grateful for the opportunity to roll up their sleeves and come together to pack these much-needed kits and provide support beyond the financial donations. We hope these everyday essentials will make life a little more comfortable for those families living in shelters.”

More than 100 cast members gathered in the lobby of Disney Cruise Line’s office to build Clean the World hygiene kits filled with soap, shampoo, razors, toothpaste, toothbrushes and socks.

The Walt Disney Company, led by Disney Cruise Line, committed $1m to non-profit relief agencies to help hurricane relief and recovery efforts in The Bahamas. The company has donated food, water, medical supplies, cleaning supplies, generators and construction materials, which the Disney Dream and Disney Fantasy have delivered to points in Nassau and the Abacos, and others have helped deliver in Grand Bahama for those most affected by the hurricane.

In addition, Disney Cruise Line is supporting its Bahamian-based crew members who live in impacted areas. So far, Disney has provided an additional $500,000 in supplies for these communities and direct aid to employees.

Clean the World is a global health organisation committed to providing sustainable resources, programming and education focused on water, sanitation and hygiene to those impacted by natural disasters, poverty and homelessness.

LENA BONABY, left, and Sofia Papageorge are appointed partners at Delaney Partners.

Law firm adds two partners DELANEY Partners has announced the appointment of Lena Bonaby and Sofia Papageorge as partners of the law firm with effect from October 2019.

Ms Bonaby is part of the firm’s complex litigation, insolvencies and corporate restructuring team. She has served for more than six years in the firm’s litigation practice.

Ms Bonaby holds both a bachelor and master of laws degree, and is a barrister of the Honourable Society of Lincoln’s Inn for England and Wales. She was admitted to The Bahamas Bar in 2005 and practiced in the city of Freeport before joining the firm.

Ms Papageorge has spent six years in the firm’s corporate law, securities, tax, and immigration practice areas. Admitted to The Bahamas Bar in 2011, she holds both a bachelor and master of laws degree and is a barrister of the Honourable Society of Lincoln’s Inn for England & Wales.

John K F Delaney QC, the firm’s senior partner, said: “These appointments reflect the firm’s commitment to investing in its bright future with talented attorneys capable of ensuring that the firm continues to deliver the high quality client service for which it has become known.”

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Monday, October 7, 2019, PAGE 3

CONSUMERS WARNED ON PLASTIC BAG LEVY CONSUMERS have been reminded that Bahamian businesses will be required to charge them a minimum 25 cents per bag for using single-use plastic bags from January 1, 2020.

The levy is mandatory under Section 8 of the Environmental Protection (Control of Plastic Pollution) Bill 2019. The maximum fee that can be charged is $1, excluding VAT. T The Bill was tabled in the House of Assembly on Thursday, October 2, and was described by Romauld Ferreira, minister of the environment, as being among “the strongest, most robust suite of environmental legislation in Bahamian history.”

“Charging a fee for the

LYNDEE BOWE, left, environmental officer at the Ministry of Environment and Housing, shares a moment with Horace Major, proprietor of Centreville Food Market, during a recent “Plastic Free 242” awareness initiative held at the store. use of single-use plastic bags is one of the boldest ways in which we can help

Bahamians and residents to break the habit of using them,” said Dr Rhianna

Neely, senior environmental officer at the Ministry of Environment and Housing.

“Many countries, including Denmark and Ireland, have seen as much as a 90 percent reduction in plastic bag usage and litter after introducing similar legislation. We can’t project whether or not we’ll see similar numbers but this is a fantastic start to managing our crippling plastic pollution problem.”

The cost of the purchase of each bag will be reflected on a separate receipt that will be provided to the customer at check-out or listed on the customer’s primary receipt as a ‘Checkout bag fee’. The money collected from the sale of these bags will be retained by the company that is selling them.

The implementation of these fees will complement the ban on the importation, distribution, and manufacture of single-use plastic bags, which will also come into effect on January 1, 2020, along with a ban on Styrofoam containers and cups, plastic utensils and plastic straws. The release of balloons into the air will also be made illegal on this date.

Any person who imports, distributes, manufactures, sells, supplies, or uses plastic bags in contravention of the Bill could be fined up to $2,000 in respect of the first offence, and up to $500 per day for each offence that continues thereafter.

These fees will not be charged on bags for pharmaceutical dispensing, dry cleaning bags, bags that

contain ice for retail, and several other types. The list of the types of bags that are excluded from the ban can be found in the Bill, which can be downloaded from the ‘Plastic Free 242’ campaign website at www.plasticfree242.com.

“We’re very excited about this change,” Dr Neely added. “This is a huge step in the global fight against plastic pollution. Hurricane Dorian’s impact on Abaco and Grand Bahama has made the devastating impacts of climate change more apparent than ever before. If there were ever a time for Bahamians to embrace a movement toward reducing plastic use to protect our environment and our way of life, this would be it.”

ANDROS RESORT RATED REGIONAL LEAD AGAIN

DEVELOPMENT BANK MEETS ON NEW BRANDING CAMPAIGN THE Bahamas Development Bank (BDB) has met with Bahamas Information Services to help with its launch of a new branding campaign and expansion of service. BDB and BIS are pictured during the meeting, and at the entrance of Bahamas Information Services.

Pictured standing from

left: Camilla Cheong, BIS/ editorial; Todd Isaacs, BIS/broadcasting; Kevin Harris, BIS director general; Kent Minnis, BIS/ broadcasting; Dave Smith, BDB managing director; Sumayyah Cargill, BDB business analyst; Mark Cunningham, BIS/graphics; Stefanie Edgecombe, BDB support officer;

CONSULTANT RADIOLOGIST NEEDED A well establish local Radiology Center is seeking to fill the position of Consultant Radiologist.

Applicants must have a minimum of seven (7) years experience and possess medical administrative skills.

All resumes can be sent to: info@ftdcimaging.com

PUBLIC NOTICE The public is advertised, that the Nursing Council Commonwealth of The Bahamas and The Hospital & Health Care Licensing Board, have been re-located to Capital House, located on the corner of Augusta and Virginia Streets, East of St. Mary’s Anglican Church.

Telephone Number: Nursing Council : 604-6012 or 604-6015 Healthcare Facilities Licensing Board: 604-6010 or 604-6011 Any inconvenience caused, is regretted.

and Troy Sampson, BDB manager/strategic development and initiatives.

Photo: Letisha Henderson/ BIS

A SHOT of Kamalame Cay’s beach.

KAMALAME Cay, the private island getaway on Andros, has been recognised as the “number one resort in Bermuda, Turks & Caicos Islands and The Bahamas” by Condé Nast Traveler in its 32nd annual

readers’ choice awards.

This marks the fourth consecutive year that Kamalame Cay has been recognised as the regional leader. It comes as 2019 marks the first year of Condé Nast Traveler as a

Photo: Lyndah Wells global brand that combines the annual analysis of both its US and UK editions into a single Readers’ Choice Awards list, vetting millions of reviews and ratings from over 600,000 readers worldwide.

PAGE 4, Monday, October 7, 2019

S&P gives Bahamas major post-Dorian lift FROM PAGE ONE

THE DEEP WATER CAY PROPERTY AFTER HURRICANE DORIAN.

Deep Water Cay close, deals east GB harsh blow FROM PAGE ONE heavy equipment, but the island lost its docks to facilitate this work. The cay is also far from safe or habitable, with only the runway clear of debris for landing aid planes.

“Expected clean-up of the cay is estimated at well over $1m,” said Paul R Vahldiek Jr, Deep Water Cay Holdings president and a major shareholder. “It will take at least six months and require heavy equipment, operators, and proper disposal of many tons of debris to clean the cay.

“With no idea when power will be restored to East End, and no structures that can be connected on the island - no housing, offices, functioning water or sewage treatment plants in place - we have simply been forced by mother nature to close.”

The move will deal a major short-term blow to east Grand Bahama’s economy, given that Deep Water Cay represents the area’s major employer and also provides numerous spinoff entrepreneurial and job opportunities.

“It employed pretty much everyone down there,” one contact, speaking on condition of anonymity, told

Tribune Business. “Nobody wants their place to close but it’s trashed; it’s horrible. They have to wait, look at what they’ve got, clean it up and assess”.

Other sources said Deep Water Cay had been seeking additional investors prior to Dorian’s arrival, and an injection of new capital may now be required more than ever. One added that Deep Water Cay’s fate illustrated what the storm had inflicted on virtually all businesses “east of the bridge” in East Grand Bahama.

“All the little restaurants, tourist hideaways, ‘Mom and Pop’ places are all gone,” they said. “It was like going to Abaco or some of the cays. It was very beautiful and homey, and now it’s gone.”

Tribune Business sources have suggested the property employed around 62 persons, although that could not be confirmed last night.

Deep Water Cay said yesterday that all staff and management positions at the property were made redundant last week.

It added that all employees will receive distributions via a GOFUNDME Charitable Corporation account (gofundme.com/f/deepwater-cay-family) set up

by the company’s USbased team. The combined GOFUNDME account and other donations via cheques deposited into the Florida Charitable Corporation account should hold close to $500,000 by next week’s end, said Mr Vahldiek.

“We hope that the GOFUNDME distributions will at least help get folks started down the road to recovery,” said Mr Vahldiek. “We are also working with a placement company to try and help some of our employees with work in other locations for this upcoming season.

“Additionally, we have been in contact with Matt Wideman at the Love and Light Foundation out of Orlando to provide temporary shelter.”

Deep Water Cay is also engaging with Community Organised Relief Effort (CORE) – actor Sean Penn’s charitable organisation – to provide sustainable longterm on-the-ground support and building in the communities of Sweetings Cay, McLean’s Town and Pelican Point.

While Deep Water Cay may have ceased operations for now, its owners yesterday indicated their determination to eventually re-open. Their statement said Mr Vahldiek will continue to work daily on matters relative to the restoration of Deep Water Cay and jobs for these communities.

While that is likely to be just what Mr Turnquest and the Ministry of Finance want to hear, S&P joined fellow rating agency, Moody’s, in noting that The Bahamas’ high exposure to natural disasters and global warming has likely contributed to this nation’s below par economic growth over the past decade.

S&P, in its October 3 “bulletin”, said it continued to examine Dorian’s short and medium-term impact on its rating of The Bahamas, which currently stands at (BB+/Stable/B). This is one notch below so-called “investment grade”, reflecting the so-called “junk” downgrade this nation suffered at S&P’s hands just before Christmas 2016.

However, there was no mention of any further potential downgrade in the immediate term, although S&P warned that such a move might occur if the government’s financial position deteriorated below the agency’s medium-term expectations.

“We will continue to follow the developments and pace of recovery efforts, including the government’s ability to respond effectively to the many challenges of recovery,” S&P confirmed.

“We will focus particularly on the implications for long-term economic growth, government finances, debt burden and the country’s external position. We could lower the rating if we come to expect that public finances deteriorate compared with medium-term expectations, either because of the fiscal impact of the hurricane or weakened political commitment to fiscal sustainability.”

Still, S&P struck a noticeably upbeat tone on the government’s ability to manage the fiscal and economic fall-out from Dorian such that this nation’s prospects will not be derailed long-term. It suggested that “early signs” were promising.

“Preliminary information

available to us suggests that the long-term effects of the hurricane on credit quality could be limited, provided that the government is able to respond in a timely manner to the various challenges posed by the natural disaster,” S&P analysts asserted.

“The hurricane severely damaged Abaco and, to a lesser extent, Grand Bahama. While the damage has been confined to those two islands, they represent about 15 percent to 20 percent of Bahamian GDP. Despite the significant damage to Abaco and Grand Bahama, several factors suggest that the longterm effects of the hurricane on The Bahamas’ credit quality could be limited.”

Explaining its rationale, S&P said: “The hurricane struck outside of peak tourist season, and the physical damage was concentrated on two islands that together attract only about 20 percent of tourists. Other destinations within the country, including Nassau, the capital and economic centre, were unaffected.

“Furthermore, before the hurricane, the country had been on track to achieve good GDP growth in 2019, slightly exceeding our forecast. The government also recently reported a relatively strong fiscal performance in 2019 (year ended June 30).

“Based on the information currently available, the timing and location of the hurricane’s impact, and the country’s relatively strong economic and fiscal performance year-to-date, it is possible that Dorian may not lead to a meaningful deterioration in The Bahamas’ economy, fiscal performance, debt burden and external assessment.”

The economic analysis matches that by the Central Bank of The Bahamas, which last week predicted that the economy will “resume healthy economic growth” in 2021 following a potential Dorian-induced contraction next year as rebuilding

THE TRIBUNE gathers pace.

And - in-line with S&P it suggested that this nation’s gross domestic product (GDP) would still expand in 2019, albeit at a much lower pace than the projected 1.8 percent, as winter season tourism gains had already been locked-in prior to the category five storm’s arrival.

However, S&P argued that Bahamian economic growth and fiscal discipline have become extremely vulnerable to weather-related disasters such as Dorian.

“This event highlights the importance of considering environmental factors in our analysis of The Bahamas, given its location in the Atlantic hurricane belt, and the large geographic dispersion of its 700 islands over almost 14,000 square kilometers,” the rating agency added.

“In the past five years, The Bahamas has been affected by at least four other serious hurricanes.

We believe this elevated environmental risk has contributed to below-average growth for The Bahamas, when compared with peers with similar GDP per capita.

“The Bahamas has taken steps to mitigate the risks related to increasingly frequent climate disasters by strengthening its public finances, planning for these events, and obtaining insurance. Despite these efforts, vulnerability to natural disasters continues to affect the country’s creditworthiness.”

S&P’s analysis comes less than a week after Mr Turnquest said The Bahamas’ ability to attract high-quality investment and manage restoration costs following Dorian will be critical to avoiding a sovereign credit rating downgrade.

While conceding that the government was “obviously concerned” about such an outcome, he said both S&P and Moody’s had so far shown “understanding” about The Bahamas’ plight.

The former rating agency’s assessment confirms his analysis was correct.

The tone, and content, in the assessments from both credit rating agencies indicate they are giving The Bahamas a break and breathing room in which to find itself and deal with the challenges posed by Dorian.

www.ub.edu.bs

CAREER OPPORTUNITIES Suitably qualified candidates are invited to apply for the following career opportunities at University of The Bahamas: Accounts Receivables Clerk II, Business Office (Oakes Field Campus), responsible for providing support to the Receivables Unit in the Business Office and processing all internal and external payments. The Accounts Receivable Clerk serves as a cashier, collecting and processing all incoming funds related to tuition, fees and other receipts in the form of cash, checks, credit card and online payments; processes all retiree medical payments and donations; balances/reconciles cash receipts and prepares deposits for submission to the bank. Other duties and responsibilities include, but are not limited to, conducting end of day processing for credit and debit transactions; maintaining a log of bank deposits; daily issuance of student bills and assisting with wire transfer payments for scholarships.

Computer Technician II (University of The Bahamas-North Campus, Grand Bahama), responsible for maintenance of all University computer systems, desktops and peripherals including installing, diagnosing, repairing, maintaining and upgrading all hardware and equipment while ensuring optimal workstation performance. Duties and responsibilities include, but are not limited to, configuring and upgrading operating systems, applications and utilities, using standard business and administrative practices; installing and deployment of all University hardware and accessories, performing troubleshooting and upgrades at the University and Satellite locations; updating tickets in the Help Desk ticketing system; recording new, relocated or decommissioned hardware/ devices and liaising with external vendors. The Computer Technician II may be required to travel to satellite campuses and centres.

Detailed position announcements are accessible online at: http://www.ub.edu.bs/aboutus/career-opportunities/.

Interested applicants should submit the following to the Human Resources Department via hrapply@ub.edu.bs (Attn: Vice President, Human Resources, Subject: Accounts Clerk II) by Friday, 11th October 2019: · A cover letter of interest highlighting work experience and accomplishments relevant to the position; · Completed UB Employment Application Form (www.ub.edu.bs/wpcontent/uploads/2017/01/Application-for-Employment-Staff.pdf)

· Current curriculum vitae or resume; · Copies of relevant qualifications and certificates; · Copy of the relevant pages of a valid passport showing passport number, photo identification and expiration date; · Copy of N.I.B. Card; · At least three (3) written, professional references.

THE TRIBUNE

Monday, October 7, 2019, PAGE 5

BAHA MAR

Sarkis blasts CCA for ‘cherry picking’ legal arguments FROM PAGE ONE He alleged that CCA’s legal team had quoted one sentence favourable to their case in papers filed with the court, but then ignored the next ten sentences that backed the original Baha Mar developer’s contention that a section 280 claim under the Bahamian Companies Act can only be brought if the shareholder oppression is ongoing.

“Yet as [CCA] has continuously done, it cherry picks, thus distorts quotations, neglecting to provide the immediately following language,” Mr Izmirlian and his attorneys said in late September legal filings with the New York State Supreme Court.

“Immediately after [CCA’s] intentionally truncated quotation, the court explains that Section 280 can only be used when there is a present interest being oppressed.” This has not been the case for four years, Mr Izmirlian and BML Properties are arguing, because they lost control of the $4.2bn Baha Mar development when it was placed into provisional liquidation, then receivership, in late 2015.

“Baha Mar was in provisional liquidation and receivership since July 2015,” Mr Izmirlian’s legal filings reiterated. “Therefore, BML Properties long ceased control over Baha Mar when this action was commenced in 2017; indeed for more than two years prior to the time this action was commenced. As a matter of law, BML Properties has long been incapable - and is incapable - of engaging in any

such conduct, so the Section 280 claim is plainly moot.”

This directly attacks the arguments of CCA’s attorneys, including Wayne Munroe QC, who previously rejected arguments that so-called “shareholder oppression” needed to be present or ongoing for his client’s claim to have merit.

However, Mr Izmirlian and his attorneys reiterated: “The corporation [Baha Mar] no longer exists and [CCA] never held voting shares. The provision of Bahamian law that [CCA] wishes to rely upon not only requires that its action be brought before the Bahamian courts, but that it seek relief that is not available here.

“Just as [CCA] should not be allowed to ignore the Investors Agreement, it too should not be allowed to ignore the very elements of the Bahamian law it purports to rely upon.” They also argued there was legal precedent as to why the New York court should not hear arguments based on Bahamian companies law.

CCA’s “shareholder oppression” claim alleges that Mr Izmirlian’s decision to seek Chapter 11 bankruptcy protection for the $4.2bn project was a key factor that cost them their $150m preference share investment in the mega resort development.

As a result, the Chinese state-owned construction company claimed in papers filed with the New York State Supreme Court that it should be “compensated for the loss of benefits” associated with its investment in accordance with The Bahamas’ Companies Act. Mr Izmirlian and his BML Properties vehicle held 100 percent of Baha Mar’s equity, and controlled four of five Baha Mar Board seats compared to CCA’s one, leading the Chinese contractor and its affiliates to allege that the resort’s original developer exploited this to his advantage and its detriment.

DORIAN RESTORATION HAS ‘NATION’S FISCAL FUTURE IN ITS HANDS’ FROM PAGE ONE

they don’t manage this properly we’re going to have considerable fiscal problems.

The management of this process, and the rebuild and relief, I just hope we have the right people with the right expertise to do this. If we get it wrong, we’re in big, big trouble.”

Mr Myers nevertheless praised the government for unveiling its three-year Economic Recovery Zone package for east Grand Bahama and Abaco and the surrounding cays, effectively turning them into tax-free zones modelled on Freeport’s “bonded” goods regime. The Zones were subsequently extended to the rest of Grand Bahama, albeit for one year.

The ORG chief told Tribune Business that the government had made the correct decision to take a short-term fiscal hit, losing revenues through all the tax incentives provided as well as facing increased spending, and kickstarting the rebuilding rather than absorbing a long-term drop in economic growth.

“I think the incentives programme is excellent, and their willingness and courage to do that is very commendable,” Mr Myers said. “Those two places are a massive part of our economy, and to get that done quickly and provide this encouragement for people who have lost everything is great.

“That makes sense because you’re either going to take the short-term hit or have a very long-term loss of gross domestic product (GDP) and income. I think it’s a very sensible and rationale position. You’ve got to get those economies stimulated; it’s a massive part of The Bahamas’ livelihood.

I’m impressed; they really pulled out all the stops. I think that’s going to have a big impact, sending the message out internationally.”

The government, as part of the Economic Recovery Zones, is also proposing a $10m equity and grant/ loan financing facility to help small businesses and entrepreneurs devastated by Dorian to rebuild.

Mr Myers, though, suggested that the banks and private sector should take the lead in this area especially where Abaco’s vacation rental and second home market were concerned.

Proposing that interest rates also be lowered to stimulate rebuilding, he argued that the government should not be in the lending business.

Arguing that the government’s proposed $10m was “the reality we’re in” and “commensurate” with its fiscal position, despite calls from Philip Davis, leader of the opposition, for it to offer $100m. Instead, Mr Myers said the private sector and

banks needed to step and do their jobs.

“There’s a lot of equity left in many of those properties, even if some are semi-destroyed,” he said of vacation home and rental properties. “If there’s no to little debt, as big as the banks are - and as long as they don’t gauge - it would be a wonderful approach to go in and make loans for renovation.

“There’s a stack of money in the banks; they should be at the forefront of trying to make that happen, as the success of the economy is to their benefit. These were performing properties that have done well year in, year out, in the second home rental market.

“This is a good area. This was a thriving economy that’s just had the wind taken out of its sails. The government shouldn’t be in that position. The government

can provide some additional stimulus, but the government and the taxpayer don’t have that money. Where are you going to get that $100m from? The banks are in that business,” Mr Myers continued.

“The government shouldn’t be in the lending business; let the banks do it. Those were performing properties with a thriving model. We know if we rebuild it it can come back. The government’s $10m maybe not enough for some people, but the banking industry ought to kick in and not put taxpayers’ money at risk.

“The government has enough borrowing to do to rebuild our infrastructure.

Let the banking industry do what they do, and lowering interest rates might be a start. The government need not get into the lending business.”

PAGE 6, Monday, October 7, 2019

THE TRIBUNE

FED CHAIRMAN SAYS GOAL IS TO KEEP ECONOMY IN ‘GOOD PLACE’ WASHINGTON Associated Press FEDERAL Reserve Chairman Jerome Powell said on Friday that the US economy is facing some risks at the moment, but overall it is in a “good place” and the Fed’s main job is to “keep it there as long as possible”.

Powell noted that unemployment is at a half-century low and inflation is running close to the Fed’s 2% target.

While Fed officials believe they have the correct strategy and tools to extend the current record-long expansion, it is important to examine whether any changes could improve the Fed’s handling

of the economy, Powell said.

In his brief remarks, Powell gave no hint on whether the Fed will cut interest rates for a third time this year when it meets later this month. Many investors are hoping for another quarter-point rate cut at the October meeting.

Among the changes the Fed has been considering at a series of town hall meeting this year is a modification of its current inflation target.

The central bank seeks to manage interest-rate policies to achieve annual price increases of 2%.

However, hasn’t hit that target in years. Some economists have been arguing for the Fed to use a broader band for inflation that would tolerate higher

inflation for a time to compensate for periods when inflation is running below target.

In his remarks on Friday, Powell said low inflation can be good, but when inflation and interest rates are too low, “the Fed and other central banks have less room to cut rates to support the economy during downturns”.

Powell said that modifying the Fed’s current inflation target could help keep inflation expectations among consumers, businesses and investors from slipping too low “as they appear to have done in several advanced economies”.

Japan has been struggling with chronically low inflation for decades, and

JUDGE DECLINES TO BLOCK FAKEMEAT LAW; APPEAL IS FILED JEFFERSON CITY Associated Press

FEDERAL Reserve Chairman Jerome Powell attends a panel at the Federal Reserve Board Building on Friday in Washington.

Photo: Jacquelyn Martin/AP Europe now faces similar issues.

Powell’s comments came at the Fed’s 12th listening session. Two more are scheduled later this month in Kansas City and Chicago.

Powell said the central bank’s main policy committee has been discussing its finding from the events since July and plans to continue those discussions at the last two meetings of this year in October and December.

He said the goal was to issue a report with conclusions during the first half of next year.

A FEDERAL judge has declined to block a Missouri law that bans companies from labeling plant-based meat products or meat substitutes as meat.

US District Judge Fernando Gaitan Jr said last week that he wouldn’t issue a preliminary injunction to stop Missouri agriculture officials from enforcing the law, which says a product cannot be marketed as meat unless it comes from an animal with two or four feet, The St Louis Post-Dispatch reported .

Turtle Island Foods, which produces Tofurky products, the American Civil Liberties Union and the Good Food Institute appealed the decision on Wednesday. They argue the law violates their freespeech rights.

The law, which was approved by the Legislature in 2018, gives the Missouri Department of Agriculture the power to investigate and refer potential labeling violations to the Attorney General’s office or a county prosecutor.

Supporters contend they are trying to protect the

products raised by ranchers, pork producers and chicken and turkey farmers during a time when plant-based products are increasing in popularity.

Gaitan wrote in his opinion that Tofurky would not be affected by the law because its labels disclose that its products are plantbased or grown in labs.

“Thus, plaintiffs have not shown that they are at any risk of either prosecution for violating the statute or that there is any need to change their labels or advocacy efforts,” the judge said.

Jessica Almy, director of policy for the Good Food Institute, said in a statement Friday the plaintiffs believe the appeals court will see that the law is “unconstitutional censorship”.

“Missouri passed this law to protect established agriculture interests from competitive pressures, not to protect consumers,” said Almy, who is also an attorney in the case. “Our case is ultimately about the First Amendment’s protection of truthful speech. No government — including the state of Missouri — should be allowed to get away with using censorship to pick winners and losers in the marketplace.”

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Monday, October 7, 2019, PAGE 7

Crusading tech mogul aims to prove CEOs can be activists too SAN FRANCISCO Associated Press SALESFORCE founder Marc Benioff oversees a $130bn software empire from a 62-story skyscraper that towers above everything else in San Francisco.

But he sits uneasily in his lofty perch because of a worsening economic divide on the streets down below, where the lavish pay doled out to tech workers like his are pricing many people out of affordable housing.

So he’s urging fellow CEOs to help fix a “train wreck” of inequality his industry helped create. He wants them to take a stand on homelessness, along with other polarising issues such as gay rights, climate change and gun control, to fill what he considers a leadership void that is paralysing government in times of crisis.

In a forthcoming book, “Trailblazer”, due out Oct 15, Benioff calls on activist CEOs to lead a revolution that puts the welfare of people and the planet ahead of profits.

“We are at a point where CEOs recognise that they just can’t be for their shareholders,” Benioff said in an interview. “They have to be for all their stakeholders, whether it’s for their schools, whether it’s for the environment, whether it’s for the fundamental equality for every human being.”

Yet Benioff’s crusade raises a nagging question: Should a billionaire who rode technology to wealth and fame be trusted to help fix the problems his industry has exacerbated?

Critics contend that’s a bad idea, particularly as CEOs become ever more isolated economically from the rest of society. Even at a booming tech company such as Salesforce, a worker making the average annual income of $152,000 would need nearly two centuries to match Benioff’s $28.4m pay package last year. His fortune is estimated at $6bn.

Relying on the privileged classes to set the social agenda during divisive times harkens back to the colonialism that the US revolted against in 1776, said Chiara Cordelli, a political science professor at the University of Chicago.

“Even if they are very

CEO, said Justin Danhof of the Free Enterprise Project, a shareholder activist group with a conservative bent.

“He is using the economic power of Salesforce to advance his cultural position and advance his world view with impunity,” Danhof said.

“If you are looking at it as an investor, he is literally giving away money to advance his social agenda.”

Yet there are signs CEOs are expected to extend their

MARC BENIOFF well intentioned, they are so powerful it becomes a question of whether they should have this kind of voice,” Cordelli said.

Benioff’s fans insist he genuinely wants to steer CEOs in a new direction.

“Marc’s heart leads his head,” said California Gov Gavin Newsom, who befriended Benioff about 15 years ago while Newsom was San Francisco’s mayor.

“You could almost anticipate he’ll be the first on an issue.”

After making his first few million dollars as a rising star at the software company Oracle, Benioff felt unfulfilled and took a sabbatical. That led him on a spiritual journey to India in 1996.

Benioff’s experience there left such a deep impression that when he started Salesforce in 1999, he took the then-unheard of step of earmarking 1% of the company’s products, stock and labor for charity.

It wasn’t until 2015, though, that Benioff stepped beyond

philanthropy into social activism. He led a charge against then-Indiana Gov Mike Pence over a law that allowed businesses to cite religion as a legal defense against LGBT discrimination claims. As other companies and groups joined Benioff’s threats to curb operations and travel in the state, Pence and Indiana’s legislature softened the law.

“I had a lot of fear before I took that action in Indiana,” Benioff said. “CEOs can get frozen in fear. We are no different from anybody else. But you have to find the courage of your convictions.”

Feeling emboldened, Benioff has lashed out at technology’s intrusions into people’s privacy and successfully campaigned for a payroll tax on San Francisco companies to help finance homeless programs, even though it cost Salesforce the most as the city’s biggest employer.

That’s the kind of financial sacrifice that Benioff shouldn’t be making as

focus beyond corporate profits and stock prices.

The Business Roundtable, a group representing corporate America’s CEOs, recently released principles emphasizing the need to start thinking about society at large. And 145 CEOs, including the leaders of Twitter and Yelp, called on Congress to pass tougher background checks on gun purchases and enable courts to remove firearms from

people flagged as potential threats.

Although Benioff named a co-CEO last year to free up time to do even more outside Salesforce, Benioff insists on pushing for change as a CEO activist rather than running for political office.

“It’s a huge platform to inspire people to do the right thing,” Benioff said. “That is all we can do, while also enjoying every moment of life.”

PAGE 8, Monday, October 7, 2019

THE TRIBUNE

US stocks notch solid gains as job report allays worries

By STAN CHOE AND ALEX VEIGA Associated Press WALL Street ended a choppy week of trading with a broad rally that drove the Dow Jones Industrial Average more than 370 points higher.

The gains on Friday also gave the S&P 500 index its best day in seven weeks, though the benchmark index still finished with its third straight weekly loss.

Technology, health care and financial stocks powered much of the rally, which was spurred by mixed job market data for September. The report showed that employers are still adding jobs at a healthy clip, albeit more slowly, and that the national unemployment

rate dropped to a five-decade low.

The jobs report punctuated a rough week dominated by surprisingly weak numbers in surveys of manufacturing and service industries, which raised recession worries and sent the S&P 500 to its first back-to-back losses of 1% this year.

“There’s probably some relief this morning that the labor report didn’t confirm or enhance the weakness that we saw out of the two (economic) surveys,” said Bill Northey, senior investment director at US Bank Wealth Management.

The S&P 500 rose 41.38 points, or 1.4%, to 2,952.01.

The index finished the week with a 0.3% loss.

The Dow climbed

372.68 points, or 1.4%, to 26,573.72. The Nasdaq composite gained 110.21 points, also 1.4%, to 7,982.47.

The Russell 2000 index of smaller company stocks rose 14.36 points, or 1%, to 1,500.70.

Stock markets around the world rose and gold dipped following the release of the US jobs data as investors felt less need for safety.

The Labor Department said employers added 136,000 jobs last month, slightly less than the 145,000 that economists were expecting and below the 168,000 pace from August.

Worker’s wages were also weaker than expected, with zero growth from a month before.

On the encouraging side, the government said

hiring in prior months was stronger than earlier estimated, and the unemployment rate dropped to 3.5% from 3.7%.

“While the bears may take this as a further confirmation of a slower economy, it is actually a pretty strong read, especially when you factor in previous revisions” said Mike Loewengart, vice president of investment strategy at ETrade Financial.

If the job market can remain strong, it would allow US households to keep spending. And that spending strength has been the hero for the economy recently, propping it up when slowing growth abroad poses a threat and President Donald Trump’s

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ALL SHARE INDEX: CLOSE: 2,172.43 | CHG: -0.87 | %CHG: -0.04 | YTD: 62.98 | YTD%: 2.99 BISX LISTED & TRADED SECURITIES 52WK HI 4.45 20.91 7.00 5.92 2.60 2.00 5.47 11.75 6.17 4.64 12.40 2.81 3.50 10.18 7.35 16.50 9.30 3.64 14.20

52WK LOW 3.50 19.17 4.90 4.46 1.01 0.22 2.00 9.22 6.15 3.60 6.75 2.35 1.76 7.51 6.10 12.10 6.20 3.01 13.00

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

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Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Fidelity Bank Class A Focol Class B

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1.00 10.00 1.00

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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

52WK HI 2.26 4.31 2.07 191.61 158.55 1.63 1.77 1.71 1.17 8.01 9.60 6.83 11.39 12.30 10.68 10.00 8.69 11.79

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.56 1.68 1.65 1.09 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

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

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

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

MUTUAL FUNDS

MARKET TERMS

LAST CLOSE 4.10 17.43 6.00 5.92 2.46 1.80 4.80 11.06 6.16 4.00 7.26 3.23 3.50 10.62 7.00 16.50 9.27 3.47 14.20

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CHANGE 0.00

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107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

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

Technology, health care, financial and communication services stocks accounted for much of the market’s gains on Friday.

Visa rose 1.8%, UnitedHealth Group gained 2.1%, Citigroup added 2.2% and Google parent Alphabet picked up 1.8%.

Apple helped drive the market higher, rising 2.8%. A Japanese newspaper, Nikkei, said that the company asked suppliers to ramp up production of its iPhone 11. Moves in Apple’s stock have an outsized effect on the S&P 500 because it’s the second-largest constituent in the index by market size.

HP slumped 9.6% after the maker of personal computers and printers announced jobs cuts of up to 16% of the company’s payroll.

Crude oil recovered from an early slide to close with a modest gain. Still, it ended the week with a loss of 5.3%, reflecting worries about weakening demand and growing supplies.

Benchmark US crude rose 36 cents to settle at $52.81 per barrel. It started the week at $55.91. Brent crude, the international standard, gained 66 cents to close at $58.37 per barrel.

Wholesale gasoline rose one cent to $1.57 per gallon.

Heating oil climbed one cent to $1.89 per gallon.

Natural gas rose two cents to $2.35 per 1,000 cubic feet.

Gold fell 90 cents to $1,506.20 per ounce, silver fell five cents to $17.54 per ounce and copper rose one cent to $2.56 per pound.

The dollar was unchanged at 106.87 Japanese yen from the yen on Thursday.

The euro strengthened to $1.0984 from $1.0973.

Major European stock indexes finished higher.

PUBLIC NOTICE

MARKET REPORT THURSDAY, 3 OCTOBER 2019

trade war with China saps exports and manufacturing.

Anticipation built through the week for the jobs report as a parade of weak data on the economy shook markets around the world. Manufacturing contracted last month at its sharpest pace in a decade, and growth in the nation’s services sector slowed.

Friday’s mixed report shows a jobs market that is slowing but still growing, and economists said it could signal that a rate cut at the Fed’s meeting later this month is no longer a slam dunk. The central bank has already cut rates twice this year to shield the economy from the effects of slowing growth abroad and the USChina trade war.

The yield on the tenyear Treasury held steady at 1.53%. The two-year yield, which moves more on expectations about what the Fed will do, rose to 1.40% from 1.37%.

The world’s two largest economies are set to talk again next week about trade. Markets have been quick to swing on any hint of movement in their dispute, which has dragged on manufacturing around the world and pushed CEOs to delay investments given all the uncertainty.

“What market participants will be looking for is really what is the next trajectory?” Northey said.

“Is it getting worse? Is it getting better? Is it status quo?”

The odds of Washington and Beijing hammering out a substantive deal in the near term are very low, he added.

“An agreement to continue to negotiate toward a mutually acceptable future endpoint is really what would be viewed as a success,” Northey said.

VOLUME

2,000

500 96 10,000

12,450

VOLUME

NAV 2.26 4.29 2.07 191.61 158.33 1.63 1.77 1.71 1.17 8.01 9.60 6.83 11.30 12.30 10.68 9.92 8.68 11.38

EPS$ 0.239 0.932 1.760 0.369 0.070 0.000 -0.438 0.722 0.449 0.184 0.140 0.102 0.467 0.646 0.728 0.816 0.939 0.203 0.631

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0.000 0.000 0.000 0.000 0.000 0.000 0.000

P/E 17.2 18.7 N/M 16.0 N/M N/M -11.0 15.3 13.7 21.7 51.9 31.4 7.5 16.5 9.6 20.2 9.9 17.1 22.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0

YIELD 3.90% 7.23% 0.00% 4.22% 0.00% 1.11% 0.00% 6.51% 3.57% 3.01% 0.00% 13.56% 1.71% 3.08% 3.43% 3.27% 2.16% 3.45% 4.30% 0.00% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%

INTEREST Prime + 1.75%

MATURITY 19-Oct-2022

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

20-Nov-2029 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% 2.46% 3.85% 1.61% 3.28% 1.78% 2.75% 3.85% 6.28% 7.12% 2.08% 1.91% 4.55% 1.45% 4.30% 1.67% 4.21% 4.75% 7.44% 7.17% 8.76% 11.07% 12.58% 3.50% 4.96% 8.92% -0.97% 5.22% 5.44% 2.95% 2.64% -0.71% 0.16% 7.40% 2.70% 10.20% 1.30%

NAV Date 31-Aug-2019 31-Aug-2019 30-Aug-2019 30-Jun-2019 30-Jun-2019 31-May-2019 31-May-2019 31-May-2019 31-May-2019 31-Aug-2019 31-Aug-2019 31-Aug-2019 31-Aug-2019 31-Aug-2019 31-Aug-2019 30-Mar-2019 30-Mar-2019 30-Mar-2019

YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | COLONIAL 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333

The Public is hereby advised that I, DEREK GEORGE HANNA, of New Providence, Bahamas intend to change my name to DEREK GEORGE OLIVER. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, New Providence, Bahamas no later than thirty (30) days after the date of publication of this notice.

LEGAL NOTICE

Notice of Voluntary Winding Up

Pacifico Global Advisors Ltd. (in Voluntary Liquidation) Registration No. 60146 C

TAKE NOTICE that the above-named Company was put into liquidation on 2 October 2019, by a Resolution of Members passed on the 2nd day of October 2019.

AND FURTHER TAKE NOTICE THAT Edmund L. Rahming of Intelisys Ltd, Caves Village, Unit 2, Blake Road and West Bay Street, P. O. Box SP-64064, Nassau, Bahamas has been appointed Voluntary Liquidator of the Company.

Dated this 7th day of October 2019.

Edmund L Rahming Voluntary Liquidator LEGAL NOTICE

NOTICE

LMJ Investment Ltd. In Voluntary Liquidation

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, LMJ Investment Ltd. is in dissolution as of September 26, 2019 International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

LIQUIDATOR _____________________

THE TRIBUNE

Monday, October 7, 2019, PAGE 11

THE NATURAL gas refineries at the South Pars gas field on the northern coast of the Persian Gulf, in Asaluyeh, Iran. China’s state oil company has pulled out of a $5bn deal to develop a portion of Iran’s massive offshore natural gas field, the Islamic Republic’s oil minister said yesterday, an agreement from which France’s Total SA earlier withdrew over US sanctions.

Iran says Chinese state oil firm withdraws from $5B deal TEHRAN Associated Press CHINA’S state oil company has pulled out of a $5bn deal to develop a portion of Iran’s massive offshore natural gas field, the Islamic Republic’s oil minister said yesterday, an agreement from which France’s Total SA earlier withdrew over US sanctions.

The South Pars field deal, struck in the wake of Iran’s 2015 nuclear deal with world powers, appears to be just the latest business casualty of America’s pressure campaign on Tehran following President Donald Trump’s unilateral withdrawal of the US from the deal.

It also comes as China and the US engage in their own trade war, as Beijing and Washington levy billions of dollars of tariffs on each other’s goods.

Oil Minister Bijan Zangeneh, quoted by the ministry’s SHANA news agency, said yesterday that the China National Petroleum Corp was “no longer in the project”. He did not elaborate or give any reason for the withdrawal, though SHANA said the company “had pulled out of a contract” to develop the field.

Officials in Beijing didn’t immediately acknowledge their decision. Phone calls to the CNPC rang unanswered yesterday and its website bore no mention of the withdrawal.

However, Iranian Foreign Minister Mohammad Javad Zarif separately complained yesterday about the US campaign against Tehran and its impact on foreign investments.

“We have been facing plenty of problems in the field of investment because of the US maximum pressure policy,” Zarif told a parliamentary committee, according to the semi-official Tasnim news agency.

“We are trying to remove the problems.”

Tehran-based political analyst Saeed Leilaz said he believes that despite China’s departure from the project, “China will remain Iran’s main trade partner.”

Leilaz said that’s because a large portion of past oil revenue from China has remained in the country, enabling Tehran to buy goods it needs from China without transferring money

from Iran, thereby evading US sanctions on Iran’s banking system.

Iran holds the world’s second-largest known reserves of natural gas and the world’s fourth-largest oil reserves.

Much of its natural gas comes from its massive South Pars field, which it shares with Qatar. The initial plan for the development of South Pars involved building 20 wells and two wellhead platforms, a project that would have a capacity of two billion cubic feet of natural gas a day.

Under terms of the initial deal, Total was to have a 50.1% stake, with CNPC getting 30% and the Iranian firm Petropars getting 19.9%. With Total’s withdrawal, CNPC had taken over the French firm’s stake. Now Petropars will develop the field alone, Zangeneh said.

Total first pulled out of Iran in 2006 as United Nations sanctions first took hold over fears Iran’s atomic programme would be used to build nuclear weapons. Tehran has maintained its programme is only for peaceful purposes.

Iran cancelled another CNPC contract in 2012 amid increasing international sanctions which led to the 2015 nuclear deal.

After withdrawing from the nuclear deal with Tehran over a year ago, the US imposed sanctions on Iran that have kept it from selling its oil abroad and have crippled its economy.

Iran has since begun breaking terms of the nuclear deal. In late September, the US sanctioned Chinese shipping firms it said were ferrying Iranian crude oil.

There also have been a series of attacks across the Middle East that the US blames on Iran. Tensions reached their height on Sept 14, with a missile and drone attack on the world’s largest oil processor in Saudi Arabia and an oil field, which caused oil prices to spike by the biggest percentage since the 1991 Gulf War. While Yemen’s Iranian-allied Houthi rebels claimed the assault, Saudi Arabia says it was “unquestionably sponsored

by Iran”.

Iran denies being responsible and has warned any retaliatory attack targeting it will result in an “all-out war”.

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PAGE 12, Monday, October 7, 2019

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THE TRIBUNE

PayPal drops out of Libra, Facebook’s payments project

EXTERIOR of the PayPal offices in San Jose, California.

NEW YORK Associated Press PAYPAL has pulled out of Facebook’s digital currency project, known as Libra, a blow to the social media company that has faced stronger-than-expected scrutiny over its proposed creation of an alternative payments system.

The digital payments company said on Friday it is withdrawing from the Libra Association so it can focus on its existing businesses.

“Facebook has been a longstanding and valued strategic partner to PayPal, and we will continue to partner with and support Facebook in various capacities,” PayPal said.

Facebook has presented Libra as a currency that could be used for digital payments, particularly outside the US. It would be backed by real currency, unlike other digital currencies like Bitcoin or Etherium.

The Libra Association, based in Switzerland, was supposed to give the currency project a comfortable arm’s length distance from Facebook, which wouldn’t own Libra.

Despite Facebook’s efforts, financial regulators as well as members of Congress have questioned the company’s motives for creating a new digital currency, particularly in light of criticisms that Facebook’s business model is too invasive of its users’ privacy.

Rep Maxine Waters, the chairwoman of the House Financial Services Committee, has demanded Facebook founder Mark

Zuckerberg testify in front of her committee before Libra is rolled out. Along with privacy concerns, Waters’ has cited the potential for Libra to be used in money laundering and other financial crimes.

Republicans and Democrats and even President Donald Trump have called for in various degrees for Facebook to be subject to US banking laws — an arduous, complicated prospect — if the social media company does move forward with the Libra project.

In response, Facebook has reportedly hired several prominent Washington lobbyists to convince politicians to give their approval to Libra.

PayPal Holdings Inc, which is based in San Jose, California, is the first company to publicly end its partnership with Libra, but other companies have been reportedly having second thoughts. The Wall Street Journal reported this week that Mastercard and Visa, the world’s largest payment providers, were considering ending their Libra relationships.

The Libra Association said it plans to continue to move forward with the project without PayPal. “Building (Libra) is a journey, not a destination ... each organisation that started this journey will have to make its own assessment of risks and rewards of being committed to seeing through the change that Libra promises,” said Dante Disparte, head of policy and communications for the Libra Association.