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THURSDAY, OCTOBER 14, 2021
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‘Prove IMF wrong or Bahamas sinks’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas “must prove the IMF wrong” by soundly beating economic growth forecasts that “cannot work” in sustaining this nation’s spiralling debt, a governance reformer warned yesterday. Robert Myers, the Organisation for Responsible Governance’s (ORG) principal, told Tribune Business that The Bahamas has simply “got to do better” than the 1.5 percent gross domestic product (GDP) expansion the International Monetary Fund (IMF) is predicting for 2026. The Fund, in its latest World Economic Outlook, held firm to its 2 percent and 8 percent GDP expansions in 2021 and 2022, respectively. Mr Myers, though, said that
• Fund’s 1.5% growth forecast for 2026 ‘cannot work’ • Bahamas must ‘get in boat together, and row hard’ • And Gov’t ‘must not drown in public sector red tape’ while the latter figure may look impressive, it really only represents The Bahamas recovering some - though not all - of the tourism output lost to the COVID-19 pandemic and associated restrictions.
Arguing that defying the IMF’s expectations, and surpassing them to consistently achieve 5 percent annual growth rates, will be “the challenge for every Bahamian” as well as the Government, the
ROBERT MYERS ORG chief said all stakeholders have little choice but to “get in the boat together and row hard” to pull the country out of its post-COVID and Dorian doldrums.
SEE PAGE 9
‘Blind attorney’ loses over fresh $30m estate appeal By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A BAHAMIAN attorney who alleged he was “legally blind” has suffered another defeat in his bid to appeal sanctions imposed upon him relating to the management of a $30m estate. Justice Milton Evans, in a unanimous Court of Appeal
verdict, rejected Gregory Cottis’ effort to appeal penalties imposed for “13 breaches” of Supreme Court orders on the basis that there was “every reason” to believe his conduct was “part of an intentional strategy to delay the action from proceeding”. Mr Cottis and his attorney, Damian Gomez QC, former minister of state for legal affairs, had gone directly to the Court of Appeal after
Justice Indra Charles declined to give them “a second bite at the cherry” to challenge her sanctions order. Those penalties were imposed after Mr Cottis failed to comply with Justice Charles’ orders requiring him to turn over all records relating to the late Raymond Adams’ estate to the courtappointed judicial trustee. Attorneys for Robert Adams, Mr Adams’ son and
one of the estate’s beneficiaries, have accused Mr Cottis of deliberately “obstructing” the successor trustee, Ernst & Young (EY) accountant, Igal Wizman, in a bid to coverup his “incompetence.... and hold the estate hostage to his own illegitimate attempts to recover more than his legallyentitled compensation”.
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GB requires ‘critical mass like yesterday’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net GRAND Bahama’s Chamber of Commerce president says the island needs to regain critical mass “like yesterday”, adding: “We desperately need jobs here.” Greg Laroda, speaking after the newly-elected Davis administration pledged to create “a onestop shop” for Bahamian and foreign investors to do business in Grand Bahama, told Tribune Business he also backed its Speech from the Throne promise to extend tax breaks to both East and West End.
GREG LARODA While the incentives for both areas had continued under the former Minnis administration, he added that they “got lost in the
SEE PAGE 7
Entrepreneur relives exporting ‘nightmare’ By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A FREEPORT entrepreneur yesterday branded exporting a “nightmare” due to costs that are more than quadruple product prices and delays encountered in getting sales to customers. Tenisha Carey, owner/ operator of Baha Gala, told Tribune Business: “International sales have slowed a bit only because I had to pause my FC (Fulfilment Centre) Amazon account, and also slowed down my website, because there’s an
issue shipping from The Bahamas. “The only option we have right now is USPS, which is through the postal service, and they can take anywhere from between six to eight weeks - especially from Grand Bahama. And especially for Grand Bahama, the Post Office has been closing at 1pm in the afternoon even before COVID-19, and then when COVID-19 hit everything shut down.” Ms Carey continued: “Even before COVID-19 it was difficult because we had the same issue in Nassau, due to the mould in the old
SEE PAGE 6
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RBC DEPOSIT ACCOUNT NOTICE
Ex-minister: Ditch RBC over zero deposit rates • Bank blames ‘market conditions’ for slash • Loretta advises: ‘Withdraw every penny’ • Bahamians paying RBC to secure savings By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A FORMER Cabinet minister yesterday urged Bahamians to pull their money from Royal Bank of Canada (RBC) after it cut interest rates on savings accounts and term deposits to zero. Loretta Butler-Turner, who temporarily replaced Dr Hubert Minnis as the Opposition’s House of Assembly leader prior to the 2017 general election, told Tribune Business that the Canadian-owned bank’s move would result in depositors/savers losing money as the value of their holdings is eroded by the highest
SEE PAGE 8
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GB’s $5m water plant ‘enters the final stage’ THE Grand Bahama Utility Company (GBUC) yesterday said construction of its $5m reverse osmosis plant has “entered the final stage”, with Dorian losses and costs collectively totalling $9.3m. The water supplier, in a statement, said this involved the arrival and installation of the final
• GB Utility’s Dorian costs/ losses total nearly $9.3m water filtration skid for the three million gallon plant. This will enable testing and commissioning of the
facility, with the first week of November targeted for it becoming fully operational.
“The commissioning of the reverse osmosis plant consists of extensive testing, including environmental monitoring and regulatory approval to ensure system integrity ,and guarantees that the system satisfies all requirements to declare potability,” said Remington Wilchcombe,
GB Utility’s operations manager. Regulatory protocols require GB Utility to conduct potability tests and have the results validated by an independent source for a 30-day period before officially declaring potability. The system flushing process will also come under heavy scrutiny. “This systematic procedure will ensure the complete removal of all non-potable water from the piping system to ensure the continuous supply of high-quality potable water,” said Mr Wilchcombe. “During this process, customers are likely to recognise an improvement in the quality of their water. “However, we are mandated by the regulatory authority to show consistent results for 30 days, especially after major storm events like Hurricane Dorian, before we can safely declare full potability. Therefore, during that period, the 25 percent discount currently in place for those customers still without potable water and free water depots will remain in place.” Philcher Grant, GB Utility’s director of operations, said the supplier’s staff together with Bahamas Hot Mix (BHM), partners for the construction and commissioning of the reverse osmosis plant, are working together to complete the facility. She added that its completion represented an investment by GB Utility to ensure that Grand Bahamians will never again be without potable water for a prolonged period, as
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occurred after Hurricane Dorian when storm surges contaminated the wellfields with salt water. “GB Utility has made a significant capital investment to provide resiliency and storm hardening of our systems, efforts that are necessary in light of climate change and the anticipated increase in frequency and strength of future storms,” said Ms Grant. “Hurricane Dorian taught us many lessons, and we have suffered major loss during this time of economic challenges. The reverse osmosis plant will ensure that the island’s fresh water supply will never again be interrupted for a long period due to the effects of a devastating storm. “This has been a costly exercise for GB Utility. Since Hurricane Dorian, the utility has lost over $3.7m in revenue as a result of the 25 percent discount provided to customers, and spent over $569,000 to cover the costs of free water distribution stations located in non-potable areas throughout the island,” Ms Grant added. “On top of that is, of course, our $5m investment in the reverse osmosis facility and the subsequent increased operational costs.” GB Utility confirmed it will continue to offer the current 25 percent discount for customers without potable water until they have received environmental approval for potable declaration. It will also maintain free water sites where potable water has not been restored.
THE BAHAMAS comes sixth position on Airbnb’s top 12 Caribbean and Latin American cities for US travellers.
BAHAMAS SIXTH-BEST FOR US AIRBNB CLIENTS THE Bahamas was yesterday said to have landed at sixth position on Airbnb’s recently-announced top 12 Caribbean and Latin American cities for US travellers. According to data from the vacation rental website, the Caribbean and Latin American region has become increasingly popular with Americans. Based on the number of searches made on the platform, 12 of the most popular Caribbean and Latin America destinations are : 1. San Juan, Puerto Rico 2. Santo Domingo, Dominican Republic 3. Tulum, Mexico 4. Cancun, Mexico 5. Mexico City 6. The Bahamas 7. Playa del Carmen, México 8. Ensenada, Mexico 9. Medellin, Colombia
10. Puerto Penasco, Mexico 11. Aruba 12. Cartagena de Indias, Colombia The region represents an accessible option for US visitors with an average vacation rental cost per night of less than $150. “Not only are US travellers looking for destinations that offer cultural attractions and tropical beach escapes, but many from the Caribbean and Latin community are looking to reconnect with their roots and visit their place of origin to see parents, grandparents and extended family,” said Stephanie Ruiz, director of communication for Latin America. “Airbnb offers the possibility of finding accommodations in both large and small cities in all parts of the region.”
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Thursday, October 14, 2021, PAGE 3
CONCERNS ON FAMILY ISLAND AIRPORT REVIEW By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net
EXUMA’S Chamber of Commerce president yesterday said he and his members were disappointed that the Government has placed the island’s $65m airport upgrade under review. Pedro Rolle told Tribune Business the Chamber has decided to take a “wait and see” position on the situation, given that the Davis administration’s position does not necessarily mean the airport public-private partnership (PPP) and similar models for other Family Island gateways will not proceed. “At the end of the day, it’s still a delay,” Mr Rolle said. “So we’re saying how
long will this last, and how long do you envision this delay would be? How much review do you need, and what do you need to put in place to at least give folks an indication as to what the process will be?” “Generally speaking we continue to go through what we call the stop, review and you would hope that people would who have been placed in a position to have analysed the whole issue of the airport, they would have been professional and just taken a look at it at the very least. “There is a level of disappointment in terms of the airport, but there is a level of optimism, too, and it’s not total frustration because the minister for tourism is the representative for the island and we
hope no decision being made on his watch would hamper the growth of the Exuma,” he continued./ “This is more disappointment than disgust at the moment. So the consensus is we will wait for a little bit and have an opportunity to speak with Mr Cooper, and get further information as to what the process is.” Tribune Business exclusively revealed last week that some $400m worth of proposed airport upgrades had been placed under review by the new administration to ensure the projects met the nation’s best interests and were aligned with its policy direction. Algernon Cargill, director of aviation, told Tribune Business then that he and his officials “will have an
answer soon” from Chester Cooper, deputy prime minister, and his team on whether the Grand Bahama and six Family Island airport PPP bidding processes will launch as envisaged by the former administration. Describing this review as a normal procedure any prudent incoming administration would initiate, given the sums of money involved and importance to Bahamian infrastructure and tourism, Mr Cargill said the issue was “not on the backburner” and officials will “determine the exact course very soon”. Mr Cooper, deputy prime minister and MP for Exuma, subsequently confirmed earlier this week that the Family Island airport projects are “under review”, but no decision on
CHAMBER CHIEF HOPEFUL GOV’T EASES ‘PAIN POINTS’ By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Chamber of Commerce’s chairman yesterday voiced optimism that the initiatives outlined during Parliament’s opening will ease “the pain points” for the private sector. Khrystle RutherfordFerguson told Tribune Business: “Over the course of the next few weeks, the Bahamas Chamber of Commerce and Employers Confederation will seek further details on the proposed initiatives by engaging with the Government. “This will give the private sector greater insight into the policies that will be used to implement the initiatives proposed in the Blueprint for Change.” The latter was the Progressive Liberal Party’s (PLP) election manifesto. Mrs Rutherford Ferguson said that among the initiatives the Chamber is
KHRYSTLE RUTHERFORDFERGUSON focused on is “the announcement of the Government’s intention to introduce measures that will bring immediate relief to businesses and the utilisation of Private-Public Partnerships to build new Government infrastructure, such as the hospitals in New Providence and Grand Bahama, and airports throughout the various Family Islands”. This could lead to work for Bahamian construction companies and workers, she added. Mrs
Rutherford-Ferguson continued: “The announcement that legislation will be introduced that will create tax incentives for small and medium-sized enterprises; such an initiative could lead to an increase in new entrepreneurs or the growth of existing businesses. “The commitment to expand the digital footprint of government services, thus improving the ease of doing business in The Bahamas, and the announcement that the Government will introduce measures to encourage renewable energy industries. “The BCCEC is keen to see whether the cost of energy will be reduced, as a result. The BCCEC further acknowledges and welcomes the Government’s commitment to consult and be inclusive in its decisionmaking, and notes that there are matters of great importance outlined in the Blueprint for Change that will require consultation with the private sector to
ensure successful implementation,” she continued. “Execution of these initiatives is key to accelerating economic recovery and growth. It is hoped that the initiatives committed to by the Government will aid in reducing the pain points and challenges that have been endured by the business community, such as the ease of doing business, cost of doing business and the need for tax reform.”
any one project has been taken. Meanwhile, Mr Rolle’s position was echoed by his Chamber of Commerce counterpart on Long Island, who called for that island’s airport redevelopment to continue despite the new administration’s review. Cheryl de Goicoechea told Tribune Business she understands the new administration’s desire to review all contracts before they move forward, but is hoping the $19m Deadman’s Cay airport transformation as well as road improvement projects also underway proceed once this evaluation is completed. She said: “I guess they have to do what they have to do, and maybe they may
not agree with it and they may not move forward, but that would be their decision. I hope they would continue and, if they feel they have to review it, I hope that after reviewing they will decide to move forward and let the project continue. “I hope that when they review them, they decide to continue them, especially the paving of the road at the north end of the island, which you know, has been dug up but only has one tiny little strip of asphalt on it. I hope they will certainly continue with that.” Besides Grand Bahama International Airport, the six Family Island airports included in their own separate PPP package are
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FREEPORT BASED REALTORS LEVERAGE INTERNATIONAL RELATIONSHIPS TO LAND PRIVATE ISLAND SALE
PM TOURING SANDALS MULTI-MILLION PROJECT THE PRIME Minister; Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, Cabinet colleagues and the executive team at the Ministry of Tourism, Investment and Aviation toured Sandals Royal Bahamian’s multimillion dollar development and upgrades yesterday. The site visit was led by Sandals Resorts International chairman, Adam Stewart, and his executive team. Photos:Kemuel Stubbs/BIS
A GRAND Bahama realtor says it has exploited international partnerships to close the $1.4m-plus sale of a prominent property at the Bimini Bay development. “The Bimini Bay private island sale was referred to us by one of our amazing affiliate partners out of Tampa,” said Kiara Jones, team leader at Keys Bahamas Realty. “This was a relationship we had been building for a few years with similar clientele, and so we were really excited to lend our level of expertise and insight to this sale. These clients, in particular, were not strangers to The Bahamas at all but were immediately sold on the Bimini Bay property.” The subject property, a canal front home dubbed ‘Sea Panther’, is situated in North Bimini and boasts five bedrooms and four bathrooms. It stretches over more than 3,000 square feet, and comes with a private dock slip on the canal that can accommodate a vessel up to 90 feet in length. “The Bahamas’ reputation as a destination is unmatched in the global market. We continue to be seen as the place to visit, but a major thrust of what we hope to do moving
SET against the backdrop of the Bimini Bay Resort, the Sea Panther property boasts a private dock slip on the canal that can accommodate a vessel up to 90 feet in length. forward is also market our islands as a place to live,” said Ms Jones. “The idea is not just to provide a boost to the economy from the initial sale of these properties, but also to create an environment where new opportunities can also be created.” Keys Bahamas Realty said that through its induction to the Leading Real Estate Companies of the World, it has joined independent residential brokerages in more than 70 countries. With a global membership that spans six continents, the network connects more than 565 firms and 130,000 sales associates who produce
over 1.1m real estate transactions valued at $372bn annually. “Our membership with Leading Real Estate Companies of the World is a phenomenal opportunity to create opportunities in the industry on both the buyer and seller sides,” Ms Jones said. “We are able to leverage our international relationships to secure the best possible properties for our clients, while also giving local realtors that we know and trust opportunities as well. We’re excited to be in a position to provide that service locally.”
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Thursday, October 14, 2021, PAGE 5
BTC AND PARENT ROLL-OUT Carnival in return ‘SMALL BUSINESS MONTH’ to its Eleuthera
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Bahamas Telecommunications Company (BTC) yesterday said its immediate parent has designated October as ‘Small Business Month’ across its Caribbean operations. Cable & Wireless (C&W) Communications, which operates the businessfocused brands, Flow Business, BTC Business and C&W Business in select markets, will roll out a series of virtual InKnowVation livestreams that started on Friday, October 8. It said these are aimed at empowering its small and medium business customers, and helping them to grow their businesses in the digital age. The livestreams will be hosted every Friday, and are being called Small Business Fridays. They will feature speakers, hands-on workshops, and a chance for participating small businesses to present their company and ideas to win an opportunity to pitch to an expert panel. Cash and prizes totalling $15,000 will be invested in the successful pitches. BTC’s Small Business Month will feature workshops to give small business owners the technical expertise they need for their business to thrive in the digital age. The workshops include presentations on how to Increase your sales with digital payments by WiPay general manager, Christabelle Brown. Other features will include Selling to UK, US and Canada through an online marketplace by Kadion Preston, chief executive of
CaribShopper; Boost your brand with an impactful website and social content, by Hannah Swift, country manager for Virgin Atlantic; and Marketing on a dime: Creating cost-effective marketing campaigns by Flow Business ambassador, Keron Rose. Small and mediumsized businesses (SMBs) represent a large segment of companies across the Caribbean, and the implementation of Small Business Month is designed to signal to this community that C&W and its affiliates are placing resources behind their commitment to the sector. C&W added that its business brands are going beyond connectivity to help clients navigate the post-COVID world, offering digital tools and ‘smart solutions’ to help small
firms stay productive and transform their operations. As part of its effort, BTC is enabling small businesses to launch a new website in less than seven days, with the carrier covering the design and build costs, as well as providing 24/7 support after launch. Using a model first piloted by BTC, C&W has expanded its small business programme to a full month of activities. C&W’s chief executive, Inge Smidts, said: “Our small businesses are relying on us more than ever as we face these unprecedented challenges. “We all must find ways to navigate the pandemic together, and we are committed to ensuring that small business owners have the tools they need to keep their businesses up and running and to still grow and expand during this period.”
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NOTICE IN THE ESTATE OF KEVIN TOM REIL late of #13 Burgess Way, Brooke, Norfolk, England, of the United Kingdom, and previously of the City of Freeport, on the Island of Grand Bahama, one of the Islands of the Commonwealth of The Bahamas, deceased. NOTICE is hereby given that all persons having any claims or demands against the above-named Estate are requested to send the same duly certified in writing to the undersigned before the 11th day of November A.D., 2021. AND NOTICE is hereby given that at the expiration of the time mentioned above, the Executor will proceed to distribute the assets of the Deceased amongst the persons entitled thereto having regard only to the claims of which the undersigned shall then have notice. GRIFFIN LONGE LAW Attn: Shavanthi K. Griffin-Longe Suite A, Corp Law Court No. 2 Cedar Street P.O. Box F-60095 Freeport, Grand Bahama The Bahamas Attorneys for the Executor
private island A BAHAMIAN private island yesterday received its first cruise ship since the global COVID-19 pandemic began almost 19 months ago. Carnival Cruise Line, in a statement, said its Carnival Magic vessel arrived in Princess Cays off Eleuthera. Carnival Magic’s six-day Eastern Caribbean
cruise departed from Port Canaveral on October 11 with additional stops in Nassau and Amber Cove. “We are delighted to return to the private Bahamian destination of Princess Cays and offer guests an opportunity to experience all of the beauty and charm of the island, while providing a much-needed boost
to the local economy,” said Christine Duffy, Carnival’s president. With more than half of Carnival’s US fleet already in guest operations, additional ships will resume service in the coming weeks and months as Carnival’s successful restart of operations continues.
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ENTREPRENEUR RELIVES EXPORTING ‘NIGHTMARE’
FROM PAGE ONE Post Office, and now we are having the same issue here in Freeport. In fact they are still renovating the Post Office and it has to close at 1pm daily. “Everything was on go slow and it’s really hard. It’s a nightmare, and I seem to be the only person talking about it because I seem to have a volume when it comes to shipping. A lot of other businesses aren’t thinking that way as they are just dealing with
customers in The Bahamas, which is okay, but it’s an issue for me.” With the Post Office rendered inoperable for half the business day due to the pandemic, exporting small parcels out of The Bahamas can become extremely expensive. Ms Carey said: “To send my clients a $50 bracelet may cost an additional $200 if I send it with one of the other couriers. “The other couriers like FedEX, DHL and so forth, they have an issue with shipping jewellery and, if
they do ship it, with even a regular letter it can cost $45, much less anything a little over a pound.” Ms Carey is now planning to open a warehouse in Florida, so she can ship to her North American and international clientele, who have grown significantly since the pandemic because “everyone is home now and all they are doing is ordering items online”. She added: “Small businesses literally cannot always have issues shipping out from The Bahamas
because of the postal service. While it’s inexpensive as it’s only $16, it takes a long time to get there. For example, I had a customer in Canada and it took them three months to get their order. “This can’t help me and it’s not good for the clientele as well. Businesses can tell you it’s just horrible doing any form of shipment from The Bahamas. It just costs too much to ship to Florida, which is just 30 minutes away.”
Exports has never historically been a focus for many Bahamian businesses. Small and medium-sized enterprises (SMEs), with shipments that can range from a five-pound package to a 100-pound consignment, face significant barriers to exporting their goods. Ms Carey added: “I think a lot of businesses in The Bahamas haven’t arrived as yet to the export market. They don’t realise the world is their oyster and we just can’t focus on how good
THE TRIBUNE our business is here in The Bahamas. “We are fortunate to have the internet so we can sell via online. Social media is worth 80 percent of my business, so I need to be able to ship, and for the fact that I have to basically stop certain advertisements and shut down certain portals, that really hurt my business. “I can tell you if I did have my stuff in the US during the lockdown I would have been a very happy camper right now because persons were just sitting down ordering stuff. That’s why Amazon made so much money.”
‘BLIND ATTORNEY’ LOSES OVER FRESH $30M ESTATE APPEAL FROM PAGE ONE However, Mr Gomez argued before the Court of Appeal that Mr Cottis’ case “has a real prospect of success”, while it “also raised a point of public interest” concerning access to the judicial system at the height
of the COVID-19 pandemic and associated Supreme Court rules. Legal filings show that Mr Cottis has gone through several high-profile attorneys to defend his action prior to Mr Gomez. These include now-chief justice,
Sir Brian Moree, who was the first attorney, involved, and subsequently Loren Klein, now also a Supreme Court justice, who was acting when Mr Cottis was said to have become incapacitated and “legally
blind” due to “detached retinas”. However, Chris Jenkins, of Lennox Paton, who was acting for Robert Adams, argued that Mr Cottis’ proposed appeal was “hopeless” and sought to introduce documents that were never placed before the Supreme Court when it heard the bid for sanctions relief. Appeal Justice Evans, in his written verdict, added there was sufficient evidence upon which Justice Charles could rule that
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“Mr Cottis has had a long and blemished history of non-compliance with court orders, as well as non-cooperation with the judicial trustee”. And, while Mr Gomez had argued that Justice Charles did not sufficiently consider the COVID-19 emergency, and the restrictions this placed on litigants and attorneys, Appeal Justice Evans said this was not argued before the Supreme Court. “I have carefully reviewed the learned judge’s reasons for dismissing the intended appellant’s [Mr Cottis] action,” he ruled. “These reasons have been set out fully in her judgment and are, in my
view clearly reasoned and disclose no error of law. “The essence of her finding was that the intended appellant has had a long and blemished history of non-compliance with court orders, as well as non-cooperation with the judicial trustee. Further, that there is no reason to suppose that this conduct may change and every reason to surmise that this conduct is part of an intentional strategy to delay the action from proceeding.” Appeal Justice Evans found that Mr Cottis’ action had “no realistic prospects of success”, with the grounds of appeal raising no issues in the public interest or a point of law that needs clarifying.
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Thursday, October 14, 2021, PAGE 7
GB REQUIRES ‘CRITICAL MASS LIKE YESTERDAY’
FROM PAGE ONE mix” of post-Dorian recovery efforts that saw the island become a Economic Recovery Zone (ERZ) or tax-free zone. “I think the new administration, they’re probably talking about focusing attention on concessions to encourage investment outside the Hawksbill Creek Agreement covered area,” Mr Laroda told this newspaper. “If persons can take advantage of that, we’ll see development across the whole island as opposed to the central Freeport area. “We need not just local businesses but foreign direct investment because we desperately need jobs in Grand Bahama. The way we get those jobs is by engaging investors to come in and start up businesses. To the extent we can do
that island-wide, we will get to recovery sooner rather than later.” Ministers in the former administration have sought to defend its investment track record on Grand Bahama, pointing out that the Western Atlantic University Medical School is already under construction, while the Carnival cruise port and ITM/Royal Caribbean deal for the Grand Lucayan also remain on the drawing board (although maybe barely in the latter’s case). Others, though, believe the Minnis administration failed to do enough in Grand Bahama despite the island providing the Free National Movement (FNM) with three seats in the recent election. The newly-elected Davis administration, meanwhile, has also promised to “capitalise
on the ongoing successes of the industrial sector on Grand Bahama”. Mr Laroda said he believes the latter comment refers to the fact that Freeport’s industrial concerns were able to continue production, and keep hundreds of workers employed, at the height of the COVID-19 pandemic when “everything was shut down in Nassau”. “On Grand Bahama we were able to survive the negative effects of COVID19 a little bit better than folks in Nassau,” he told this newspaper. “What that showed is in The Bahamas we rely to much on tourism and, looking at the industrial sector, how can it encourage those investments that keep going when tourism cannot. “I would agree with increasing investment over the whole island and city.
If an investor is seeking to do business in Grand Bahama, and he is seeking to do business in the Freeport area, then he has to meet the requirements of both the Port Authority and the Government, and sometimes that can be complicated. “For the investor there may be a lot of red tape that he does not want to go through. If you are looking to do business outside Freeport, there is only the Government you have to deal with, making it easier to get answers.” Mr Laroda backed placing a “one-stop shop” investment approvals arm within the Ministry of Grand Bahama, arguing that it would be easier for investors to obtain answers to their questions on-island. “The focus really needs to be on getting the Grand
Bahama economy jumpstarted,” he told Tribune Business, “and getting back from being a burden on the Government in terms of tax concessions to being an asset and putting money back into the Treasury. “The way to do that is through investment. The investment will bring jobs, bring more people back to the island, which will help businesses.... We need to bring critical mass back to Grand Bahama like yesterday, and the way to do that is through investment and jobs. “We’ll see how it pans out. The area covered by the Hawksbill Creek Agreement was designed to hold more than the entire population of The Bahamas, and I don’t think we have more than 40,000 people here now because of Dorian and COVID-19. People had
to move to support their families and stuff like that. We need to do something to revive the economy of Grand Bahama.” The Chamber chief added that restoring Grand Bahama International Airport, and developing the island’s new hospital “need to start in a year, not year two, year three or year four”. “The Speech from the Throne is a mainly a blueprint, a high-level approach as to what the Government will do, and the separate ministries will be responsible for the things we see - the targets, the timelines and the funding,” Mr Laroda added. “I would expect before the end of the year we will start to have some timelines as to when we will see something going at the airport, hospital and the like.”
CONCERNS ON FAMILY ISLAND AIRPORT REVIEW FROM PAGE THREE Exuma, North Eleuthera, Abaco, Long Island, San Salvador and Great Harbour Cay. Construction work on Exuma’s $65m transformation has already begun, while the $15m worth of upgrades to Great Harbour Cay are almost finished. A recommendation had been supplied to the Minnis Cabinet as to the winning contractor for the $15m Deadman’s Cay revamp. And the Government was said to have been “in
the negotiating stage” with RF Bank & Trust over the $140m financing line it will provide for the airport upgrades. Jim Lew, managing director of LeighFisher, the aviation consultants hired by the Government to develop the PPP process for outsourcing the airports to private developers/managers, previously said the financing for the six Family Island airports will be separate from that for Grand Bahama International Airport.
With the North Eleuthera and Exuma airport revamps estimated to involve $65m each, the $10m price tags for San Salvador and Abaco, as well as $18m for Long Island and $15m for Great Harbour Cay, take total projected capital investment costs to $183m - well above the $140m-$150m to be raised by RF Bank & Trust. As for Grand Bahama, Mr Lew said “significant investment” is required by the successful bidder on both “the ground side and the air side” to not only
rebuild Grand Bahama International Airport but make it sufficiently resilient to withstand future natural disasters. He added that “around $200m” is needed to “replace the facilities and ground infrastructure to capture the growth sorely
needed at this site”. This was reiterated in the accompanying project information memorandum, which added: “The airport suffered extensive damage during Hurricane Dorian in 2019. “An FBO (fixed base operation) building was
repurposed as a temporary terminal. A comprehensive site-wide redevelopment solution (around $200m) is required to replace damaged facilities, unlock commercial potential, and operate the airport as a profit centre.”
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Chief Accountant COMMONWEALTH OF THE BAHAMAS IN THE SUPREME COURT Common Law and Equity Division
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
The successful applicant must possess a high-level of accounting and analytical skills and will be responsible for overseeing the proper execution of the day-to-day operations of the accounting department. Applicant must have a minimum of five (5) years finance or accounting work experience at a supervisory or management level, with a sound understanding of financial accounting and familiarity with Financial Reporting Standards. Must possess a bachelor’s degree in Accounting or finance. CPA/CA would be a plus. Suitably qualified individuals should fax, email or post their resumes to: The Manager Baker Tilly P.O. Box N-1991 Nassau, The Bahamas Fax: 242-356-4125 Email: info@bakertilly.bs Deadline for submission is October 31, 2021. Email: info@bakertilly.bs The Deanery 28 Cumberland Street P.O. Box N-1991 Nassau, The Bahamas
Tel: (242) 356-4114 Fax: (2420 356-4125 Email: info@bakertilly.bs Website: www.bakertilly.bs
PAGE 8, Thursday, October 14, 2021
THE TRIBUNE
EX-MINISTER: DITCH RBC OVER ZERO DEPOSIT RATES FROM PAGE ONE inflation rate The Bahamas has seen since 2013. With the International Monetary Fund (IMF) projecting a 5 percent rise in consumer prices this year, she argued that RBC’s decision to eliminate any return individuals and companies can earn on their deposits was a further sign that the bank needed “to close down and push put”. RBC, in a statement issued to Tribune Business, justified the October 1, 2021, move as “a response to local market and economic conditions” impacting its business and the interest rates offered to depositors with savings accounts and term deposits. It did not define or explain these “conditions”, although it argued that the move was taken amid “historically low interest rates”. However, it is likely to have been influenced by the continued build-up of surplus liquidity in the overall Bahamian commercial banking system, which hit $2.443bn at end-August having expanded by some $213.5m during the first eight months of 2021. The former figure represents money available to RBC and the other commercial banks for onward lending as mortgages, personal and consumer loans, but for which they are unable to find qualified buyers to extend it to. “They’ve got too much money sitting around idle,” one source said. This problem, already significant prior to COVID19, has been worsened by the pandemic’s devastating
economic fall-out for households and businesses. Unable to gain a return on these funds, several sources yesterday suggested RBC’s decision to go to 0 percent interest rates was actually a bid to shed deposits that it did not want. That, though, could not be confirmed. RBC said: “Like all financial institutions, RBC Royal Bank periodically makes amendments to the products we offer and adjusts them according to various internal and external factors. “On October 1, we changed our interest rates on savings accounts and term deposits to 0 percent until further notice. This is happening in a period of historically low interest rates. RBC implemented this change in response to local market and economic conditions that effect our business and our approach to the interest rates we offer clients. “For more than 100 years we have provided dedicated service to the country and have been a good corporate citizen through our charitable donations and community programmes. RBC values the business of all our clients here in The Bahamas and around the world. We remain committed to working with our clients to provide them with the products and solutions to meet their needs.” RBC, in announcing the move to clients via notices posted at its branches, said: “Please be advised that effective October 1, 2021, interest rates on our Bahamian dollar deposit accounts will be adjusted.
All Bahamian dollar savings accounts are now non-interest bearing until further notice.” As for term deposits, which are more geared to wealthier individuals and corporate clients, RBC added that it will honour existing interest rates until the contractual term expires. Once this happens they, too, will earn no return on their deposits. “New Bahamian dollar term deposits will be offered at a rate of 0 percent until further notice,” RBC added. “For existing clients with a Bahamian dollar term deposit, the term deposit will be allowed to run at its contractual interest rate until maturity. Renewal/roll overs of existing Bahamian dollar term deposits will be at a rate of 0 percent.” This drew a blistering response from Mrs ButlerTurner, who wrote on social media: “Firstly I would advise any Bahamian or resident of The Bahamas who has any money in this bank to withdraw any penny... without hesitancy.” While acknowledging that the Bahamian penny is no longer legal tender, she added: “According to this notice, your money gets absolutely nothing; zilch; nada. For depositing your money in their bank, essentially the value of your money is devalued. Yes, devalued, because of the various fees charged. You are paying them to keep your hard-earned money. “Even if you put your money in a rock hole or under a mattress it is more valuable than keeping it in
RBC. Flipside, your money is used for loans and they incur interest, plus collateral from the borrower. On top of this, each month your reward for putting your money in their bank is taxed with service fees and all manner of other fees.” With inflation projected at 5 percent, this means that the value of deposits/ savings with RBC will be eroded as customers are earning no returns on these funds. And, given that virtually all banks were offering low deposit rates anyway, often a small percentage of 1 percent, depositors at all banks are likely to lose out as consumer prices suffer the highest increase since 2013. Mrs Butler-Turner, noting that RBC was embroiled in other recent controversy over its decision to stop dispensing $20 notes from its Automated Teller Machines (ATMs), added: “Seriously, they really need to close down and push pat. And to think that they extract such huge returns from our Bahamas government. This is utterly unfathomable, unbelievable and unconscionable.” In a subsequent interview with Tribune Business, Mrs Butler-Turner said RBC had “been quite egregious in several things they’ve done” and “it seems as if they’re slashing everything”. She added that “the saddest thing about this is that this is the Government’s primary bank”, with RBC often leading syndicated financing for The Bahamas at both local and international level, as well as
providing successive administrations with significant overdrafts. And, arguing that numerous Bahamian staff have been laid-off amid branch closures and RBC’s digital drive, Mrs Butler-Turner said: “Their customer service leaves a lot to be desired.... To my way of thinking, it’s totally illogical that you are cutting the human resources factor and cutting out what little incentive existed for savers. “What really, really bothers is this is the bank my grandfather, Sir Milo Butler, fought for Bahamians to work in during the 1960s. As a child this was the only bank we went to, the main branch in Bay Street. It has featured significantly, been there for eons of years, and he agitated for it to be Bahamianised. “RBC has been with us for over 100 years since 1908, and is historically the bank that Bahamians went to. They’ve done well in The Bahamas, and to turn around and withdraw any type of incentive for savers is a real slap in the face. It’s not even a percentage of a percent.” Banking and financial services industry reaction was mixed, with some suggesting RBC’s move was another step in a long-term strategy to exit The Bahamas and other Caribbean territories that it remains in. Others, speaking on condition of anonymity, pointed out that if RBC was charging service fees without paying any interest then effectively “you’re charging depositors/savers to take their money. And,
LEGAL NOTICE NOTICE
ZIRCO INTERNATIONAL LIMITED Reg. No. 170602 B
LOHENGRIN FUND LTD.
NOTICE OF DISSOLUTION Notice is hereby given, in accordance with Section 138(4) of the International Business Companies Act of 2000, that the above-named Company commenced dissolution procedures on the 23rd day of August 2021 and that Sterling (Bahamas) Limited of Suite 205A, Saffrey Square, Bank Lane & Bay Street, P.O. Box N-9934, Nassau, Bahamas has been appointed voluntary Liquidator of the Company. Notice is also hereby given that any person having a claim against the Company is required, within 14 days of the date of this Notice, to send their names, addresses and particulars of their debts or claims to Sterling (Bahamas) Limited, the Liquidator of the Company, or in default thereof they will be excluded from the benefit of any distribution made before such debts or claims are proved. Dated this 27th day of September 2021 Sterling (Bahamas) Limited Liquidator
while questioning whether the other Canadian banks, CIBC and Scotiabank, will follow suit, they added that not all depositors will get 0 percent. “Philosophically, the Canadian banks have been 80 percent of the profit from 20 percent of the customers, let’s cater to that 20 percent,” one banker speculated. “I believe they will have a dual rate system where regular customers get regular rates. That’s the business you don’t want.” Suggesting that none of the Bahamian-owned banks, namely Commonwealth Bank, Bank of The Bahamas and Fidelity Bank (Bahamas), will follow RBC’s lead, the banker said the trio had started to see an increase in business from customers switching from the Canadian-owned banks. Gowon Bowe, Fidelity Bank (Bahamas) chief executive, said the BISX-listed institution had kept deposit rates at 2 percent and was offering higher for persons willing to place their money for the long-term. He added that RBC’s decision could not be divorced from the low interest, difficult to find qualified borrowers environment, while pointing out that US rates were equally low. RBC’s move to lower deposit rates from a percentage of 1 percent to zero is thus not a massive leap. However, it may provide ammunition for the newly-elected Davis administration’s bid to licence as many as three Bahamianowned commercial banks as pledged in its election manifesto.
Registration No. 161433 B
NOTICE IS HEREBY GIVEN as follows: (a)
That the Fund is Licensed as a Smart Fund Model SFM002 with the Securities Commission of The Bahamas
(b)
That the Fund has two Classes of Shares Class “C “and “D” Shares.
(c)
That both Classes of Shares are fully redeemed.
(d)
That the Company’s name was struck from the Registrar of Companies. Dated this 5th day of October 2021 ____________________________ Sterling (Bahamas) Limited Fund Administrator
THE TRIBUNE
‘PROVE IMF WRONG OR BAHAMAS SINKS’
FROM PAGE ONE
“If you were down 15 percent, and you’re coming up 8 percent, it’s no big shocker. It’s no big story,” Mr Myers said over the economy’s 2020 shrinkage, and anticipated 2022 rebound. “You’re not back to normal, back to zero or back to the baseline of preCOVID 2019.” When this newspaper pointed out the IMF’s 1.5 percent growth forecast for 2026, he replied: “That cannot be. The Government and the Bahamian people have to push hard to get GDP growth up. If we don’t get at least 5 percent GDP growth, that’s the rising tide that floats all boats. “We’ve got to do better than that. It doesn’t work. Let’s prove the IMF wrong because that cannot work. We cannot sustain the Government’s debt, the deficit and job creation and everything else at 1.5 percent growth. That doesn’t cut it. “We’ve got to consistently be better than that. That will be the Government’s and every Bahamian’s challenge. We cannot raise taxes; we have to get GDP up. We have to get in the boat together, row hard and if we have to change laws and policies to create greater efficient and effectiveness, we’ve got to do whatever we need to do. It’s sink or swim, and we need to swim.” The former Minnis administration’s Fiscal Strategy Report projected that the $1.348bn and $951.5m deficits, incurred in 2020-2021 and projected for this fiscal year, respectively, will start to taper off and lessen from 20222023 onwards as tourism rebounds and the economy reflates along with government revenues. It remains to be seen whether the newly-elected Davis administration agrees with this glide path, timelines and projections regarding the Government’s fiscal affairs, with the former government also forecasting that the $10.356bn national debt’s growth rate will also lessen - albeit it is still forecast to continue rising past the $11bn mark. Mr Myers, meanwhile, renewed his call for The Bahamas to “get the economy moving”. He added: “It’s only us screwing it up.
There’s plenty of opportunities. We’ve got to start with the ease of doing business and the cost of doing business, making it less expensive and removing the bureaucracy and making things happen. “That has to be the challenge, has to be the focus. Keeping the politicians focused on that is critical. We can’t let them drown in the public sector bureaucracy. We’ve got to keep them focused.” Matt Aubry, ORG’s executive director, backed Mr Myers in agreeing that The Bahamas needs to consistently generate annual 5 percent GDP growth if it is to haul the economy out of a post-COVID slump. While the IMF did not provide any growth forecasts for the intervening years, he agreed that the outlook for 2026 is “somewhat pessimistic” and the economy’s wheels “all need to be hitting the ground and going in a straight direction” to avoid this scenario. “I think that sound generally realistic for this year,” Mr Aubry said of the IMF’s 2 percent forecast for 2021, “but somewhat pessimistic for the future going to 2026. What we know is that for a number of years our economy has been relatively stagnant, and then we had the impact of the twin crisis of Dorian and COVID-19. “It knocked us down significantly. The kind of growth we need to stimulate, and how we get there, is more in the area of 5 percent per annum.” He pointed out that the Government’s debt management strategy, due to be released later this month, is critical to managing the nation’s liabilities while it seeks to stimulate the economy. The ORG executive director added that it has “never been more important to facilitate” Bahamian businesses and make this process “as streamlined as possible”, ensuring they gain access to capital, licences/registrations and approvals in the quickest possible time. While the former Minnis administration had appeared to recognise this, and the newly-elected government’s rhetoric suggesting much the same, Mr Aubry argued that The Bahamas “needs to see
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NOTICE NOTICE is hereby given that ROBERTSON ROMAGE of #233 Jansel Court Condominiums, Freeport, Grand Bahama, 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 14th day of October, 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
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.
tangible policies as soon as possible”. Making sure government procurement opportunities are available to Bahamian entrepreneurs “in an open space” was also identified by the ORG executive director, while infrastructure private-public partnerships (PPPs) needed to be similarly “competitive”. Mr Aubry suggested turning to The Bahamas’ diplomatic corps and diaspora to find suitable foreign joint venture partners for local firms on these PPPs. “We have to make sure we don’t sacrifice local opportunities while becoming a competitive space for foreign direct investment,” he added. “With that level of growth the IMF has been talking about, we can look forward to some challenging times. I think we need to take it as an indicator that all wheels need to be hitting the ground and going in a straight direction with all sectors working collectively. The time for politics is really over.” Mr Aubry also said there was “little to be done to avoid” the IMF’s 5 percent inflation projection for 2021, adding that this was largely an imported phenomenon due to global supply chain bottlenecks. He argued that the best defence was for Bahamians to spend more money in the local economy, with domestic merchants and producers, and said: “We have to protect ourselves to get through this period as painlessly as possible. “There’s a certain level of inflation that’s inevitable, but if we drive economic opportunities from the local environment we will be in a better position to manage through that. It’s also a significant reminder that we need to be making sure the Government is spending monies as efficiently and effectively as possible.”
Thursday, October 14, 2021, PAGE 9