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THURSDAY, OCTOBER 7, 2021
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‘Scared’ by liveable wage uncertainty By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A CHAMBER of Commerce director yesterday questioned how The Bahamas will be able to afford the Government’s planned “livable wage” phase-in and VAT cut, saying: “That scares me.” Peter Goudie, who heads the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) labour division, reiterated his previous pleas for the term ‘livable wage’ to be firmly defined given that Parliament’s opening offered no specific. The Speech from the Throne, which typically only gives the barest outlines of the Government’s policy and legislative direction, stated that the
PETER GOUDIE Government will introduce more consumer protection legislation and “increase the minimum wage and phase in a liveable wage”. No timelines, figures or other details were provided, and Mr Goudie said: “I wish
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A WELL-KNOWN businessman yesterday warned “talk is cheap but money buy land” as he questioned whether the Public Treasury can afford a VAT rate cut given the “dismal” fiscal outlook. Branville McCartney, the former Democratic National Alliance (DNA) leader, told Tribune Business he was unsure whether a rate cut to 10 percent was “practically feasible” at this time although agreeing it would be welcomed by all Bahamians and businesses.
Speaking after the Government effectively doubled-down on its pledge of an “across the board” two percentage point VAT rate cut during yesterday’s Parliament opening, he said: “It sounds good, and I would hope that they are able to implement it. But, practically, where are you going to get the money from? “I think the Prime Minister mentioned a few days ago that our fiscal status is ‘dismal’. I would like to give the Government an opportunity towards implementing what they have promised because
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Bahamas to repay $3.65bn debts to creditors by 2026 By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
‘Talk is cheap, money buy land’ on VAT cut By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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THE Bahamas is due to repay $3.65bn in debt principal by the time the next general election is due in 2026, Moody’s has revealed, leading to calls yesterday for “feverish” government action. The credit rating agency, in its just-published full country analysis on The Bahamas, revealed that this nation is scheduled to make significant principal repayments beyond the $900m that is coming due this year. Close to another $700m is set to mature in 2022,
• PM warns: ‘The day of reckoning is here’ • ‘Never repaid debt since Independence’ • Gov’t urged to ‘be bold, work feverishly’ followed by $400m the following year. Basing its graph and figures on data supplied by the Central Bank, Moody’s added that a further $750m - including a $300m foreign currency bond - is due for redemption in 2024. This will be followed by principal maturities of $400m and $500m, respectively, in 2025 and 2026, the latter year being when
the Davis administration’s term in office will likely end. The total $3.65bn coming due for maturity in that time period thus represents 35.2 percent of the total debt stock. Branville McCartney, the ex-Democratic National
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GOWON BOWE
Realtor to ‘catapult forward ten-fold’ in global brand tie-up By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A BAHAMIAN realtor yesterday said it expects to be “catapulted tenfold from where we are today” after becoming the latest industry player to forge an alliance with a global franchise. Gavin Christie, C.A. Christie Real Estate’s managing partner
and operational head, told Tribune Business the affiliation with Corcoran Group will help drive the company’s expansion into key Family Islands amid the “hottest market” for high-end properties that he has experienced in his 17-year career. Named Corcoran CA Christie Bahamas as of yesterday morning, he said the local firm has already begun receiving client referrals from the global franchise’s network that covers
151 offices in 75 different countries, and includes 5,000 real estate agents. “We have partnered with one of the fastest-growing real estate franchises in the US, and a company known to be a trend-setter,” Mr Christie told this newspaper. “It’s going to benefit us because we will have access to 451 offices globally and over 5,000 different agents.
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PAGE 2, Thursday, October 7, 2021
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ARAWAKX FORGES US PARTNERSHIP ARAWAKX, the Bahamas-based crowdfunding platform, has forged a partnership with a US-based developer of
digital platforms that connect investors and financial communities. John Newtson, Pendry Cannon’s managing director,
in a statement said the tie-up with ArawakX will enable it to expand its business into The Bahamas and wider Caribbean. It described its
mission as “connecting parts of the global financial ecosystem that currently don’t talk”.
“It’s remarkable in 2021 how disconnected global capital markets continue to be,” Mr Newtson added. “Our Cannon Network is an innovative membership network designed to build real crossborder and cross-capital ecosystem executive and investor relationships. This partnership with ArawakX expands our network into the Caribbean. “Our investor, venture and publishing networks are always on the hunt for great companies to invest in. Partnering with ArawakX allows us to uncover new investment opportunities for our network from a region where we currently have little penetration.” Mr Newtson said The Bahamas “is featuring prominently” in Pendry Cannon’s 2022 investor event schedule, hinting that it plans to bring several conferences and events to this nation. “We plan to connect our investor and publishing networks on-site in one of the most beautiful parts of the Caribbean,” he added. The Pendry Cannon chief praised ArawakX for offering the world’s first platform that allows transactions in a Central Bank Digital Currency (CBDC), namely the Sand Dollar. He also hailed ArawakX’s chief executive, D’Arcy Rahming, for his past work with Reuters America on its Globex project – the first global electronic trading system to handle both futures and options. “The ArawakX digital platform allows direct investment in equities,
in debt securities, and in revenue share opportunities. This gives companies maximum flexibility when raising capital and lets investors participate in the fuller capital life cycle of a company. ArawakX provides a virtual introduction platform connecting issuers and investors,” Mr Newtson said. “The platform gives investors access to properly vetted US and Caribbean start-ups across all industries by a robust team of investors, management consultants, financial services executives and veteran entrepreneurs. “This focus on vetting is critical. A lot of platforms online today don’t do much vetting beyond checking whether the company’s cheque cleared. This leaves individual investors with a greater due diligence burden as they try to sort through potential investments.” Mr Newtson added that this “quality over quantity approach to listings is one of the things that attracted” it to ArawakX. “I’ve been very impressed with how focused the ArawakX team is on closing the wealth gap in the Bahamas using a capital markets vehicle,” he continued. “Financial inclusion is just a slogan to many people. It’s clear from all my conversations with Mr Rahming and his team that, at ArawakX, financial inclusion is cooked into their DNA.” Mr Newtson said Pendry Cannon has built digital platforms and communities reaching six million-plus individual retail investors.
PENDRY Cannon founder John Newtson; D’Arcy Rahming Sr; and D’Arcy Rahming Jr, both of ArawakX, at Pendry Cannon’s recent Content & Capital event in Baltimore.
TOURISM ANNOUNCES NEW DEPUTY DIRECTOR-GENERAL THE Ministry of Tourism, Investments and Aviation has named Latia Duncombe to the post of tourism deputy director-general to replace the recently-retired Ellison “Tommy” Thompson. Joy Jibrilu, the Ministry of Tourism’s director-general, said: “The appointment of Ms Duncombe as deputy director-general of tourism is a great asset to the Ministry’s senior executive team. Ms Duncombe comes to us from the corporate sector. She has had a diverse, impactful career in corporate business leadership. “Her expertise in sales, marketing, branding and public relations, in particular, will be of great benefit to the tourism leadership team as we forge ahead with the task of tourism recovery.” Ms Duncombe has spent 25 years working across multiple industries in The Bahamas, Cayman Islands and Turks & Caicos Islands. She has experience in banking and
LATIA DUNCOMBE finance; wholesale and retail foods; beverage distribution; and, most recently, the petroleum and fuels industry. For the last ten years, Ms Duncombe was employed as a senior executive and head of sales and marketing for Rubis Bahamas and Rubis Turks & Caicos. She was responsible for strategic direction, sales growth, new business development, marketing, branding and public relations in both countries.
THE TRIBUNE
Thursday, October 7, 2021, PAGE 3
CENTRAL BANK GOVERNOR: BAHAMAS WON’T DEFAULT By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Central Bank’s governor yesterday voiced confidence that The Bahamas “has the policy tools” at its disposal to ensure it avoids any default on its $10.356bn national debt. John Rolle said: “I don’t think The Bahamas is going to default. I think The Bahamas has all of the policy tools and levels within its control to continue to manage its debt obligation. It doesn’t undervalue the fact that you’re in the midst of a very difficult fiscal period, and you just have to make the right choices in getting beyond the period and in planning for the longer term.” The national debt stood at $10.356bn at end-June 2021, while the debt-to-GDP ratio stood at 100.4 percent - indicating
JOHN ROLLE that the national debt is now bigger than the size of the Bahamian economy and its annual output. Mr Rolle, addressing The Bahamas’ growth prospects, said: “As to what’s happening in the economy, in some respect this is the recovery path that was expected, and it will take many months for you to be back at the seasonal parity
where you would have been in tourism and that’s what we’re seeing. “We’re also seeing that insofar as the foreign exchange flows coming into the country, 2021 has already taken in more inflows than 2020. So that is a sign that tourism’s contribution is picking up and it has overtaken the total amount that was provided from that sector last year.” Mr Rolle added that Dorian reinsurance inflows largely stopped in 2020, but noted that “it is possible” some may still be coming in. “What we know, based on the amount of work that had come in, was that there’s still some drawdown of those resources that are likely to be drawn down related to rebuilding. So we anticipate, and favourably expect, that people will use those resources for further rebuilding activities,” he said.
Central Bank slashing bank account red tape By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Central Bank is slashing bureaucracy associated with Know Your Customer (KYC) due diligence so that Bahamians can more easily open bank accounts, its governor said yesterday. John Rolle said: “We are focused intensively on continuing to improve the process and the experience of account opening. We’ve stressed that if a resident is going into the banks to open up an account, if they have the passport, that’s the only identification document that they need. “We’ve also stressed that you don’t need to produce
a utility bill. We know that that was something that was relied upon. But the institutions should verify that they have the means of contacting the individual. So it still speaks to having an address for the customer, but using modern means, by which you would contact and verify individuals via mobile, phone or email or those other means. “We have provided that clarity in our guidance and, in the event individuals do not have a passport, they can rely on two combinations of other official identification, so that is very important to stress.” Integrating the Central Bank’s digital currency, the Sand Dollar, with the commercial banking system is happening alongside the
KYC streamlining. Mr Rolle said: “Integration between the Sand Dollar and the commercial banks is something we are actively engaged in. “The most important part of the integration is having the Sand Dollar network connected through the ACH (Automated Clearing House) banking system. So we’re testing, and we’re doing more development to complete that process, which means that the holder of a Sand Dollar wallet or mobile payment account that’s interoperable with the Sand Dollar platform, they’ll be able to send and receive money against their bank account through the infrastructure.”
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The Bahamas has received $246m in special drawing rights (SDRs) from the International Monetary Fund (IMF), and Mr Rolle said: “We have an option if we need to use those SDRs to supplement foreign exchange supplies in the economy if necessary. “At present we’re not yet in a position where we are compelled to do that. But it is a contingency that the country has. Similar to the contingency that we had
in 2009, when we got an allocation of SDRs from the IMF, because countries were undergoing difficulties in the midst of the recession and they needed to have the extra foreign exchange if necessary.” Pivoting to the credit bureau, Mr Rolle said: “The credit bureau operators are making good progress. They are receiving reports from the banks in the first instance, and they are working with the
other financial sector entities that will be reporting on the utility companies so they can progress to a regular reporting state. “So, for all intents and purposes, the bureau is at the point where it can even begin to provide credit reports back to the agencies that have submitted data. Meaning that they’re in a position where they can do analysis on the information and provide insights back to the institution.”
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‘UNANSWERED QUESTIONS’ ON NEW VAT CUT PLEDGE By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A CHAMBER of Commerce director yesterday urged the Government not to cut the VAT rate to 10 percent and instead implement a corporate income tax. Debbie Deal, head of the Chamber’s energy and environment division, told Tribune Business it was a “nice thought” for the
newly-elected Davis administration to slash VAT to 10 percent but warned it will create more hassle for businesses who will be forced to adjust their pricing and point-of-sale systems. Ms Deal said: “This is really a challenge, because.....now you have to put all of that in again and change it to 10 percent.” She was responding to the Speech from the Throne, read at yesterday’s opening of Parliament, in which
the Government effectively doubled down on its pledge to reduce the VAT rate to 10 percent. It provided no details, though, on when the VAT rate cut will take effect or for how long. The Progressive Liberal Party (PLP) had said the two percentage-point cut would only be for one year when on the election campaign trail. Arguing that it is “not going to be a huge benefit to businesses”, Ms Deal
added: “If it is only going to be for a year and then they’re going to change that again, which probably won’t be 12 percent and more than likely 15 percent, I don’t know why they just don’t go straight to a corporate tax? “If they just implemented a corporate tax, they would be able to do leaps and bounds over just lowering the VAT by 2 percent.” Dwayne Higgs, WHIM Automotive’s general manager, added: “If they feel
that reducing their income is somehow going to somehow solve things then I have my doubts about that.” Voicing scepticism about reducing VAT to 10 percent, he asked: “What will happen after that year? Does it go up to 15 percent?” “There’s a lot of unanswered questions there. So it would be good to see what their long-term plan is if they were to reduce it to 10 percent for a year.
What are they going to do after that? Acknowledging that the strategy may be to reduce VAT to stimulate spending, Mr Higgs added: “I don’t think, with such a small reduction for the average person by two percentage points on whatever we buy, is not as much as when you combine 2 percent of revenue they’re going to lose for the entire country that they’re going to have to try and make back up somewhere else.”
Minimum wage first step towards liveable By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Prime Minister yesterday said the proposed minimum
wage
increase
is just a “component” in
efforts to develop a proper livable wage for Bahamians. Philip Davis QC, speaking after the opening of Parliament, said: “We are of the opinion that it is the responsibility of any government to ensure that the citizens earn a living” that is
appropriate for today’s cost of living. The Speech from the Throne yesterday committed the Davis administration to “phase in a liveable wage”, but did not detail what that meant or give any timelines.
Mr Davis, though, added: “We believe that the minimum wage in itself uses that component on whether what is minimum is sufficient for a person to live, and so we will be undergoing studies to appreciate what it will take for the person or the family to provide food, shelter and education for their children in an attempt to move the minimum wage towards that end.” The current minimum wage is $210 per week, and
the Progressive Liberal Party’s (PLP) election campaign manifesto committed it to increasing this to $250 per week. Mr Davis added: “So we will be moving the minimum wage by increasing that with not just ourselves, but working with other stakeholders to find ways to move towards getting the stakeholders to appreciate and understand what we’re attempting to achieve, and get groups to arrive to that. But that number will be
worked on and worked with the stakeholders.” The University of The Bahamas conducted a living wage study in New Providence and Grand Bahama, and found it to be $2,625 and $3,550 per month, respectively. The Chamber of Commerce’s director for labour affairs, Peter Goudie, subsequently questioned the findings.
PHILIP Davis address the media after the first House of Assembly meeting. Photo:Donavan McIntosh
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Thursday, October 7, 2021, PAGE 5
BAHAMAS TO REPAY $3.65BN DEBTS TO CREDITORS BY 2026 FROM PAGE ONE Alliance (DNA) leader, told Tribune Business that the data published by Moody’s merely “adds to the concerns” surrounding the economic and fiscal crisis. “I will tell you: Let’s watch the grey on Brave Davis’ head because that’s not a good position to be in for any leader,” Mr McCartney said. “I think it’s incumbent on this administration to work feverishly and start immediately, whether they’re successful or not, to try and diversify this economy. “It’s going to take time but we need to start. They’re going to have to be bold in their approach in doing things to generate income for the country.” The figures pulled together by Moody’s show the extent of the task facing the Government to turn the public finances around, as John Rolle, the Central Bank governor, yesterday became the latest senior official to refute fears of a debt default. Mr Davis, though, indicated he is fully aware of the challenge confronting his government during yesterday’s formal opening of Parliament. Asserting that the general election results showed Bahamians wanted new solutions to their problems, he said: “And there’s no time to waste. The day of reckoning is here. Problems that were postponed too long must now be confronted. “Many of the choices which lie ahead will not be easy ones. But if we have the best interests and the dignity of the Bahamian people as our north star, we will rise to the moment.” He added: “Even as we move to stabilize the nation’s finances, we need to invest in new health care capacity, and to get our children back into classrooms that are safe for everyone. “We need to build an economy that is dynamic and exciting enough to answer the doubts of any young Bahamians who wonder if their futures can
be built here. We have a moral imperative to transform opportunities in education and employment and ownership. We have to build for the future even as we confront the present.” That present, as illustrated by a World Bank report released yesterday, shows The Bahamas as having the lowest COVID19 bounce back growth of all countries in the Latin American and Caribbean region at 2 percent for 2021. Only Haiti, Suriname and St Vincent and the Grenadines were shown as having lower growth due to combination of political woes and natural disasters. The report, entitled Recovering Growth, with a focus on post-COVID rebuilding amid ongoing fiscal constraints, also showed that The Bahamas’ 100.4 percent debt-to-GDP ratio is the sixth highest in the region behind Barbados, Suriname, Belize, Dominica, Jamaica and St Vincent and the Grenadines. Gowon Bowe, Fidelity Bank (Bahamas) chief executive, told Tribune Business that The Bahamas has “not actually repaid any debt since Independence” but, instead, merely rolled over or refinanced existing borrowings with new fundraisings to replace older ones as they come due for repayment. That is highlighted by the former Minnis administration’s $1.851bn gross borrowing plan for the 20212022 fiscal year, of which some $951.8m will cover the projected fiscal deficit and represent ‘new’ debt taken on. The remaining $899.7m will be used to refinance and pay off debt principal as it matures. Asserting that the data released by Moody’s was “not surprising”, Mr Bowe added that it was more critical than ever that the Government develop - and publish - a debt management strategy to give lenders, bondholders and creditors confidence that the principal sum they have advanced is secured and will be repaid.
He called for The Bahamas to adopt a mixture of refinancings and actual return of principal to investors, moving beyond just interest payments to give “actual cash back”. The former Minnis administration moved to achieve the latter by creating so-called “sinking funds”, which at end-June 2021 held a collective $209.4 million to finance three external bond repayments. “The debt management strategy, when I say it’s not to be a theoretical document, it has to have the maturity profiles where we’re able to match cash flows against projected cash outflows,” Mr Bowe added. “It’s more to say we know when debt repayments are coming due, and we’ve set aside cash flow to repay it when they come due or refinance. “Since Independence we have not actually repaid any debt. In practice, since Independence, we have been borrowing to repay borrowing. The better question, though, is whether we have reached the position of culmination in how much we can borrow to refinance legacy payments as opposed to demonstrating the capacity and ability to repay.” Arguing that The Bahamas still has access to traditional financing sources on the international capital market, Mr Bowe said of the country’s lenders: “We have to meet them half-way. All investors want to make sure their investment is secure, and we have to give them confidence that their trust is well-placed. “It has to be a mixture of both. Every lender and investor likes to receive some cash back. That’s why you see dividends. Redeeming one instrument is beneficial for confidence..... We have to become aggressive in demonstrating we have the capacity to pay and build confidence we are continuing to grow and build confidence we are investing the borrowings for future returns.
“That’s most important now; that it’s being spent not on items of current utility but items that will benefit us in the future; making investments in accordance with a long-term plan.” Moody’s revealed, meanwhile, that a further $1.7bn in debt repayments are due between 2027 and 2030, taking the total over the next decade to $5.4bn - more than half of the $10.356bn debt owing at end-June 2021. Mr Davis, though, has said the Government will
seek to restructure and renegotiate its sovereign debt via negotiations with the holders if the need arises. This will likely involve stretching out maturities across more years, and lowering attached interest coupons, so that the debt servicing and repayment burden is lessened for struggling taxpayers. And Moody’s itself was relatively sanguine about the issue given what it termed as The Bahamas’ “favourable debt maturity profile” and consistent access to international capital markets,
although it noted the upward interest rate pressures. “The Bahamas’ liquidity risk is also informed by its high borrowing requirements and a recent increase in reliance on external bonded debt, which carries higher borrowing costs and increased rollover risk,” Moody’s said. “As of March 2021, around 76 percent of total government debt was composed of long-term market debt or multilateral lending. External long-term market debt has an average maturity of nine years, while domestic bonds mature on average in 11 years.”
PREFERRED DIVIDEND PAYMENT FOCOL is pleased to announce a
dividend payment to all holders of CLASS ‘B’ preference shares as of October 15, 2021 payable within ten business days of the record date through THE BAHAMAS CENTRAL SECURITIES DEPOSITORY.
“Fuelling Growth For People”
PAGE 6, Thursday, October 7, 2021
THE TRIBUNE
REALTOR TO ‘CATAPULT FORWARD TEN-FOLD’ IN GLOBAL BRAND TIE-UP FROM PAGE ONE “Now our clients, our listings, are on a global platform, so that’s one of the biggest differences. Now we’re not just advertising and marketing in The Bahamas. We’re in New York, Los Angeles, in Miami. We’re going to get a lot more leads, more ‘eyes’, and a lot more exposure for
our clients. It gives us that global reach.” Besides the greater sales and marketing exposure, and increased client referrals and leads, Mr Christie said the partnership will also give Corcoran CA Christie Bahamas’ access to a global technology and data platform, along with better support and “brand consistency” for clients.
“We launched at 10am this [yesterday] morning and the referrals have already started,” he added. “We’ve gotten two referrals today; one out of the south Florida office and one out of New York, and those are individuals interested in purchasing in The Bahamas. “This [affiliation] will have a huge impact and
we are already seeing it from day one with that early request and referrals coming in from key developers in our market and outside our market. We anticipate this will catapult the firm ten-fold from where we are today. Our agents will have access to the best technology in the business, and best education in the business. “It’s the whole works, and education is key. If you are buying or selling a property, you want to be working with an agent that is focused , has tools that are cutting edge technology and is the best service that we are offering your property. This is not their [Corcoran’s] first rodeo. They understand the business and how to be successful in it.” Bahamian realtors are increasingly forging partnerships with global brands, the most recent being LX Bahamas Luxury Realty Group’s tie-up with Berkshire Hathaway HomeServices. The former is now called Berkshire Hathaway HomeServices Bahamas Real Estate. Explaining the mutual benefits for both sides, Mr Christie said: “Big brands are always looking to expand, and looking to expand in key markets. The Bahamas is one of those key markets being on the doorstep of the US. Although we are a small country, we have a very big appeal to global brands. “The Bahamas is considered a luxury destination, and a lot of brands want to get into the market; luxury brands all want to get a foothold in this market. And for a local brand to expand, that is someone
GAVIN CHRISTIE who will help us get to the next level. “We have a great local brand, but if you go to London or New York, a lot of those persons will not know your local brand. By partnering with a global brand it brings comfort and consistency to the consumers.” Mr Christie continued: “The Bahamas market is hot, especially in the luxury space, and in my 17 years of experience I’ve never seen a market like this. I’ve spoken to other brokers who have been in the industry for 20, 30-plus years and they confirm they have never experienced a market like this. “It’s good for The Bahamas. We have a hot market, brands looking to expand and this is one of the key markets that interests them. The Bahamas is a global brand. It attracts the who’s who, the ultra wealthy, but also the big brands to our shores. “We have lofty goals to increase our agent productivity and expand our footprint in The Bahamas, and we cannot wait to get started on bringing our
CENTRAL BANK SLASHING BANK ACCOUNT RED TAPE FROM PAGE THREE The Sand Dollar roll-out is “very important” for the Central Bank, Mr Rolle added, and he said: “This is timed along with other upgrades that are happening to the ACH. We’ve completed the testing fro the ability to send funds from the network into the deposit account. We are working over the remainder of this year to complete the ability of the system to receive funds from banks.” Mr Rolle acknowledged that Sand Dollar usage remains low, which he attributed to ongoing product development among financial institutions and service providers that offer mobile wallets. He added that these mobile wallet providers were busy signing up clients to their
business and name to the next level.” Mr Christie added that the company’s existing ten agents are mainly New Providence-based, and that part of the goal from the Corcoran tie-up is to “expand our footprint in The Bahamas and bring on new luxury specialists in key markets throughout the country”. “That is something we will be looking to do in the short-term, as well as expanding organically, and getting into key markets such as Abaco, Harbour Island, Eleuthera and Eleuthera.” Mr Christie said one reason why C.A. Christie had elected to partner with Corcoran Group was because it has an entire department dedicated to providing sales and marketing solutions for new developers and those about to come to the market. Corcoran Group, in a statement, said C.A. Christie - which was founded in 1973 and currently has 105 exclusive listings marked its third Caribbean affiliate. “I am thrilled to continue such an exciting global trajectory into the Bahamas,” said Pamela Liebman, its president and chief executive. “Not only are we expanding our network in a stunning part of the world, but we’re welcoming a group of incredibly talented real estate professionals in yet another key secondhome market, creating even more opportunity for all of our affiliated agents and clients.” own respective applications, and not focusing on developing Sand Dollar awareness among consumers. The Governor said: “We are at the stage now where we are in co-ordination with all of the participants, and our public education and awareness campaign will begin to ramp up. Once that begins to ramp up it will be the signal to the public that they can become more engaged in this process. “One of the things that we want to stress to individuals is that it’s a payment system that is powered by the Sand Dollar, and it is powered by the Sand Dollar irrespective of who you choose to provide the mobile wallet. “But we are also stressing that if you have a mobile wallet, you should be able to receive monies from anyone else who has a mobile wallet, irrespective of the brand, if they are a part of the network.”
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Thursday, October 7, 2021, PAGE 7
‘TALK IS CHEAP, MONEY BUY LAND’ ON VAT CUT
FROM PAGE ONE ultimately it would be good for the country and, by extension, the Bahamian people. But how it is done practically is a different story. Talk is cheap but money by land.” Mr McCartney said he was “curious” to understand how the VAT rate could be cut in the absence of the newly-elected Davis administration explaining how it would make up the foregone revenues. “A VAT could be welcome, but to make it happen, I don’t know. I can’t see how it will be fiscally practical for the country at this stage looking at it as a whole,” he added. “Nothing has been said or indicated to say how those funds will be replaced. “And if you are going to replace them, you don’t want to replace it with something that is revenue
neutral and keeps you in the place you are in. You need to replace it with something that will generate funds for the country, and exceed what we get with VAT. I want to replace it with increased income and surpass what we are getting with VAT.” The Progressive Liberal Party (PLP), while in Opposition, had argued that the VAT cut would actually increase revenues by stimulating more economic activity and therefore increasing the volume of taxable transactions. However, several observers said this was unlikely to happen due to the unemployment and income reduction stemming from COVID-19. Gowon Bowe, Fidelity Bank (Bahamas) chief executive, yesterday said the Government had given itself flexibility by not setting out a timeline for when the VAT Act will be
amended to facilitate a 10 percent rate. “I think the Government is taking time to understand the consequences and intended objectives behind it to see if it can achieve them,” he explained, noting that both revenue and spending will be impacted. The Speech from the Throne traditionally lays out the barest outlines of the Government’s policy and legislative agenda, while giving few details. It also indicated that, in some areas, the Davis administration has modified or stepped back slightly from the agenda set out on the election campaign trail. For example, its Blueprint for Change manifesto promised to “repeal the Commercial Enterprises Act, and grant work permits where no qualified Bahamian can be found”. However, the Speech from the Throne only talked
US poised to sue contractors who don't report cyber breaches By ERIC TUCKER Associated Press WASHINGTON (AP) — The Justice Department is poised to sue government contractors and other companies who receive U.S. government grants if they fail to report breaches of their computer systems or misrepresent their cybersecurity practices, the department's No. 2 official said Wednesday. Deputy Attorney General Lisa Monaco said the department is prepared to take action under a statute called the False Claims Act that permits the government to file lawsuits over misused federal funds. The Justice Department will
also protect whistleblowers who come forward to report those issues, she said. "For too long, companies have chosen silence under the mistaken belief that it's less risky to hide a breach than to bring it forward and to report it. Well, that changes today," Monaco said. The action, unveiled at the Aspen Cyber Summit, is aimed at contractors who fail to report hacks or who knowingly provide deficient cybersecurity products. It's an outgrowth of an ongoing Justice Department cyber policy review, and is also part of a broader Biden administrative effort to incentivize contractors and private companies to
share information with the government about breaches and to bolster their own cybersecurity defenses. Officials have repeatedly spoken of the need for better private sector engagement as the government confronts a surge in ransomware attacks that in the last year have targeted critical infrastructure and major corporations. The measure underscores the extent to which the government views cyberattacks as not just harmful to an individual company but also to the American public in general, especially given recent attacks against a major fuel pipeline and meat processor.
about “amending” the Act “to ensure that when jobs are being filled, Bahamians receive the highest priority”. It could be argued that only the language, and not the objective, has been changed. When in Opposition, the PLP attacked the legislation as “a work permits Bill” and argued it would deny Bahamian entrepreneurs and workers opportunities in their own country. The Act, which was intended to apply to Bahamian and non-Bahamian companies, provides a ‘fast track’ work permit process for companies in select industries that
made a minimum $250,000 investment. The sectors targeted by the Act are niche financial services offerings, including captive Insurance; nanotechnology; computer technology; software design; data storage; maritime trade; aviation registration; wealth management; and select manufacturing enterprises. Elsewhere, the Government pledged to strengthen legislation passed by the former Minnis administration. This included the Public Procurement Act by “strengthening provisions for Bahamian participation in government procurement at all levels,
and changing the Fiscal Responsibility Act to boost the Fiscal Responsibility Council’s independence. Numerous aspects of the PLP Blueprint for Change were included in the Speech from the Throne, including a reaffirmation of renewable energy goals and a focus on the creative industries, plus the orange, blue and green economies. And several initiatives planned by the former Minnis administration have also been retained, such as transforming the Bahamas Investment Authority (BIA) into a proactive investment agency, Invest Bahamas, which is modelled on Jamaica’s Jampro.
PAGE 8, Thursday, October 7, 2021
‘SCARED’ BY LIVEABLE WAGE UNCERTAINTY
FROM PAGE ONE
somebody would explain that [the livable wage] to me because I have no idea what that means. That was
part of the Memorandum of Understanding (MoU) with the trade unions and that scares me. “The whole point of this thing is who’s going to be
COMMONWEALTH OF THE BAHAMAS IN THE SUPREME COURT Common Law and Equity Division
able to pay for it? That’s really what it comes down to, and if nobody knows what it is then they don’t know how to plan for it.” Mr Goudie’s reference to
2020 CLE/Qui/No. 01001
IN THE MATTER OF Mk, PETITON OF TREVOR MANSFORI) SMITH OF MARS BAY SOUTH ANDROS THE BAHAMAS. AND IN THE MATTER OF THE QUIETING TITLES ACT. 1959 STATUTE LAW OF THE BAHAMAS CHAPTER 393
IN THE MATTER OF ALL of that parcel of land containing 1.71 acres being a Portion of Crown Grant F - 71 to Anthony Smith situate on the Eastern Side of the Main Public Road approximately 400 feet Southwards from BTC Tower in Mars Bay South Andros one of the Islands of the Commonwealth of the Bahamas NOTICE OF PETITION The Petition of Trevor Manford Smith of Mars Bay South Andros one of the Islands of the Commonwealth of the Bahamas, in respect of ALL of that parcel of land containing 1.71 acres being a Portion of Crown Grant F - 71 to Anthony Smith situate on the Eastern Side of the Main Public Road approximately 400 feet Southwards from BTC Tower in Mars Bay South Andros one of the Islands of the Commonwealth of the Bahamas. The Petitioner claims to be the equitable owner in fee simple possession of the parcel of land hereinbefore described and has made an application in the Supreme Court of the Commonwealth of the Bahamas under Section three (3) of the Quieting Titles Act 1959 to have his title to the said land investigated and the nature and extent be determined in a Certificate of Title in accordance with the provision of the Act. Copies of the filed Plan may be inspected during normal office hours at: (1)
The Registry of the Supreme Court 1st floor Marlborough House Marlborough Street Nassau N. P. the Bahamas; and
(2)
The Chambers of Sivle Law Chambers # 20 Montrose Avenue New Providence the Bahamas.
NOTICE IS HEREBY GIVEN that any person having a dower or a right to a dower or an adverse claim or a claim not recognized in the Petition shall on or before the expiration of thirty (30) days after the final publication of these presents file in the Supreme Court and serve on the Petitioner or the undersigned Law Firm a statement of his or her claim in the prescribed form verified by an Affidavit. Failure of any such persons to file and serve a statement of his or her claim on or before the final publication of these presents will operate as a bar for such claim. Dated this 10th day of August 2021 SIVLE LAW CHAMBERS # 20 Montrose Avenue New Providence The Bahamas The Attorney for the Petitioner
an MoU is the agreement that the Progressive Liberal Party (PLP) signed with the trade unions during the election campaign, promising a labour-friendly agenda if voted in to office. “They can say all they want,” he added of the Government, “but if they’re not giving any details then we don’t know what they’re talking about. I just don’t know. I don’t know what they think a livable wage is and where the money is coming from to pay for it.” University of The Bahamas (UoB) researchers, in a study produced earlier this year, pegged Nassau’s monthly living wage at $2,625 while the equivalent for Grand Bahama was $3,550 per month. The authors, Lesvie Archer, Olivia Saunders, Bridget Hogg, Vijaya Permual and Brittney Johnson, wrote: “Our gross living wage estimate for New Providence is 26 percent lower than the Grand Bahama living wage estimate, nearly 200 percent higher than the national minimum wage, 127 percent higher than 2013 poverty line and nearly 75 percent higher than the minimum wage hike proposed by a local union. “Our living wage estimate for Grand Bahama is nearly 300 percent higher than the living wage, 200 percent higher than the 2013 poverty line and 140 percent higher than the minimum wage hike proposed by a
local union.” The Bahamas’ private sector minimum wage, last increased following VAT’s introduction in 2015, is currently $210 a week.” The minimum wage, though, is defined differently from the “livable wage” measure employed by the UoB study. It based its work on a model employed by Richard Anker, the International Labour Organisation’s (ILO) living wage specialist, who defined a livable wage as one that can sustain a person’s “physical, emotional, social and cultural needs and that of their family beyond mere subsistence”. Food and housing costs, based on a “nutritious diet” and “decent housing”, were factored into the calculations together with other daily living costs, while the research also drew on data from sources such as the 2019 Labour Market Information Newsletter; 2017 Labour Force Report; and 2016 Government of the Bahamas salary book. The Government had proposed increasing the minimum wage to $250 per week when in Opposition, but Mr Goudie yesterday said such a rise would have to go through and be approved by the National Tripartite Council, which includes representatives from the private sector, trade unions and the Government.
THE TRIBUNE
The Chamber’s labour division head also warned that any talk of a “livable wage” could “scare away foreign direct investment” that The Bahamas needs to revive its economy post-COVID. Pointing to already-high business costs, and multiple impediments to the ease of doing business, Mr Goudie added: “They will look at the cost of doing business, and you want to increase wages? Then we have a problem. “Who’s going to come here if it’s too costly to do business? That’s the issue. It is so expensive to do business in The Bahamas now, and you want to keep adjusting and increasing wages? It’s going to be difficult.” The Government also doubled down on its pledge to slash the VAT rate to 10 percent “across the board”, which prompted Mr Goudie to question whether the country could afford it given its dire fiscal position and if other revenue sources have been identified. “I don’t know how they’re going to be able to afford to do that,” he added. “It will be interesting to know how they can afford to do that. You can’t cut things and not know where you’re going to get your money from. I don’t know, I really don’t know.”
THE TRIBUNE
Thursday, October 7, 2021, PAGE 9
STOCKS EDGE HIGHER AS WALL STREET SHAKES OFF VOLATILITY By DAMIAN J. TROISE AND ALEX VEIGA AP Business Writers STOCKS recovered from an early slide on Wall Street to close with modest gains Wednesday as investors held out hope that Congress may yet be able to temporarily extend the federal government’s debt ceiling and buy lawmakers time to reach a more permanent resolution. The market rallied back from a morning loss shortly after Senate Republican leader Mitch McConnell offered Democrats an emergency short-term extension to the federal debt ceiling into December. Financial markets have mostly taken the debtceiling drama in stride, expecting yet another 11th hour solution, but some voices on Wall Street have warned investors recently to make preparations for a default, even if it is unlikely, given how extremely damaging it would be to the economy and markets. “People were nervous about the debt ceiling,” said Jay Hatfield, CEO of Infrastructure Capital Advisors. The S&P 500 rose 17.83 points, or 0.4%, to 4,363.55. The benchmark index had been down 1.3% earlier. Gains in technology stocks, makers of household goods and communication companies helped offset losses
in energy and other sectors. About 57% of stocks in the index rose. The S&P 500 had risen or fallen more than 1% on each of the past four days. The Dow Jones Industrial Average rose 102.32 points, or 0.3%, to 34,416.99. The blue-chip index had been down more than 450 points in the early going. The Nasdaq gained 68.08, or 0.5%, to 14,501.91. The tech-heavy index had been down 1.2% before the afternoon rally. Small-company stocks, a gauge of confidence in economic growth, fell: The Russell 2000 index gave up 13.40 points, or 0.6%, to 2,214.96. If the nation’s debt ceiling, which caps the amount of money the federal government can borrow, isn’t raised by Oct. 18, the country “would likely face a financial crisis and economic recession,” Treasury Secretary Janet Yellen told Congress last week. During a meeting Wednesday with bank executives, President Biden stressed the importance of Congress raising the debt limit. “We haven’t failed to do that since our inception as a country. We need to act. These leaders know the need to act.” The Senate went into recess late Wednesday so lawmakers could discuss
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, CLINTON BERNARD DORSETT of #4 Anguilla Road, P.O. Box F-43838, Nassau, The Bahamas, intend to change my name to CLINTON BERNARD DORSETT GRAY. 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, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.
NOTICE NOTICE is hereby given that DEON THOMAS of Rosalind Street, Nassau, The Bahamas P.O. Box N112, 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 7th day of October, 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
A WALL Street sign is seen next to surveillance equipment outside the New York Stock Exchange, Tuesday, Oct. 5, 2021, in New York. Stocks fell in morning trading Wednesday, Oct. 6, 2021 as Wall Street undergoes a bout of volatility, driven in part by big swings in technology companies. The S&P 500 fell 0.8%. The benchmark index has risen or fallen by more than 1% the past four days. The Dow Jones Industrial Average slipped 1% and the Nasdaq fell 0.6%. International markets also sold off, with exchanges in Japan, South Korea, Germany and France all dropping more than 1%. Photo:Mary Altaffer/AP McConnell’s proposal, delaying a procedural vote on a House-passed bill to suspend the debt cap. The latest bout of market volatility comes as investors question the economy’s path forward, amid rising
inflation and the ongoing impact from the virus pandemic. Bond yields have remained relatively stable since a sharp jump late last month that signaled concern that high inflation could linger longer than
economists and investors had initially anticipated. The yield on the 10-year Treasury held steady at 1.53%. It was as low as 1.32% a little more than two weeks ago.
Energy prices retreated from a recent rally that contributed to inflation fears. U.S. crude oil fell 1.9% and natural gas plunged 10.1%. The drop weighed on energy companies. Exxon Mobil fell 1.8%. International markets also sold off, with exchanges in Japan, South Korea, Germany and France all dropping more than 1%. Investors are grappling with a long list of uncertainties, and that could mean a more durable pullback in stocks than Wall Street has experienced so far this year, said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute. High on Wall Street’s list of concerns is the Federal Reserve’s timetable for raising interest rates. The Fed’s policymaking committee recently signaled the central bank could start raising rates late next year. Analysts have said that the Fed could act sooner than expected if high inflation persists. “The investment case for those looking for further gains, at least this year, was the expectation that rates would stay at fairly low levels,” Samana said.
LEGAL NOTICE
LEGAL NOTICE
LIQUIDATOR’S NOTICE
LIQUIDATOR’S NOTICE
PURSUANT TO SECTION 138 (6) OF THE INTERNATIONAL BUSINESS COMPANIES ACT
PURSUANT TO SECTION 138 (6) OF THE INTERNATIONAL BUSINESS COMPANIES ACT
We, Sterling (Bahamas) Limited, Liquidator of VACATION TIMESHARE TRAVEL INC., hereby certify that the winding up and dissolution of VACATION TIMESHARE TRAVEL INC., has been completed in accordance with the Articles of Dissolution.
We, Sterling (Bahamas) Limited, Liquidator of EAST COAST CAPITAL LTD., hereby certify that the winding up and dissolution of EAST COAST CAPITAL LTD., has been completed in accordance with the Articles of Dissolution.
Dated the 9th day of September, 2021.
Dated the 20th day of September, 2021.
Sterling (Bahamas) Limited Liquidator
Sterling (Bahamas) Limited Liquidator
THE TRIBUNE
Thursday, October 7, 2021, PAGE 11
GOOGLE: FLIGHT SEARCH TOOL CAN HELP YOU FLY ‘GREENER’ By MATT OTT AP Business Writer SILVER SPRING, Md. (AP) — Searching for flights on Google just got “greener.” A new search feature rolled out Wednesday tells users which flights have lower carbon emissions, giving them the ability to choose flights based on carbon emissions just as they would price or the number of layovers. A basic search for flights will give an estimate of how many kilograms of carbon dioxide the flight will spew from start to finish. Users
can prioritize their search by emissions, much like they can by price, if desired. Flights with emissions below the median get highlighted in green. Google said the estimates are a combination of data from the European Environmental Agency and flight-specific information it gets from airlines and other providers. That data could include an aircraft’s age, model and configuration, the speed and altitude it flies at and the distance between the flight’s origin and destination. Some flights may not have estimates because of
a lack of data on certain aircraft or other missing information, Google said. The company added that the estimates don’t yet take into account what direction the plane is heading — a potentially significant factor if flying into or with the jet stream, or whether or not the flight is using biofuels or other alternatives. Using the new tool, the least polluting flights from the Washington, D.C., area to Chicago are all United flights using Boeing 737s. The 128 kilograms of carbon dioxide falls 21% below the median. An American Airlines flight on
another Boeing 737 from San Francisco to New York with a stop in Dallas emits 535 kilograms of carbon dioxide, 9% less than the median for that route. Multiple stops can often result in an increase in emissions, but it’s not always the case. Non-stop flights aren’t always less polluting, particularly on longer routes. Google says that a more fuel-efficient plane can emit less on a multiple-stop journey than an older plane on a non-stop route. Airplanes account for a small portion of emissions that cause climate change — about 2% to 3% — but
their share has been growing rapidly and is expected to roughly triple by midcentury with the global growth in travel. The airline trade group Airlines for America says U.S. carriers have more than doubled the fuel efficiency of their fleets since 1978 and plan further reductions in carbon emissions. But the independent International Council on Clean Transportation says passenger traffic is growing nearly four times faster than fuel efficiency, leading to a 33% increase in emissions between 2013 and 2019.
The new emissions tool follows Google’s introduction last month of a way for people to find “ecocertified” hotels. Also on Wednesday, Google introduced technology that allows drivers to find more fuel-efficient routes on Google Maps and from Google’s Nest thermostat, upgrades that will help people find energy from the power grid during times of day when its sources are cleaner, such as from wind and solar. The new features are part of a sustainability initiative Google CEO Sundar Pichai highlighted Wednesday.
PAGE 12, Thursday, October 7, 2021
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