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MONDAY, NOVEMBER 12, 2018
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BAIC tenant neglect to cost $94k By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A $94,000 DAMAGES award against the Bahamas Agricultural and Industrial Corporation (BAIC) has been upheld after its neglect resulted in the violation of a tenant’s lease agreement. The Court of Appeal, in a unanimous verdict, threw out the Government agency’s bid to overturn a verdict in favour of Good Earth Nursery over its claim that BAIC failed to protect its business from the activities of a neighbouring business tenant. BAIC’s defence, that it had no liability because the actions of the other tenant were “unauthorised”, were swiftly dismissed by both the Supreme Court and Court of Appeal, which found the agency in breach of a lease that allowed Good Earth Nursery to “peaceably hold and enjoy” its property. Acting appeal justice Milton Evans, detailing the events that resulted in the dispute, said Good Earth Nursery leased land at BAIC’s 100-acre AgroIndustrial Park on Fire Trail Road on December 1, 1998. The company, headed by William Albury, operated a plant nursery growing crotons, citrus plants and bougainvillea “as his sole means of employment and livelihood” for almost eight years without any problems. Good Earth Nursery’s “statement of claim”, though, alleged that its problems began in June 2006 when a neighbouring tenant, Geneva AlburyBowe and her company, Tradewinds Enterprises, allowed Tony Miller and T&M Trucking to start operating a rock crushing and soil separation business from her property. The dust created by this operation blew on to Good Earth Nursery’s land, and caused “severe damage and loss” of its crops, with the associated noise from the rock crushing machine causing “substantial interference” with its “use and enjoyment” of the property. Despite repeated requests, Good Earth Nursery alleged that neither Mr Miller nor Ms Albury-Bowe discontinued or sought to mitigate any impact from the rock-crushing operation on its property. And BAIC took “no satisfactory action” following the company’s complaint, leading to the claim being filed against it. “The essence of Good Earth’s case in the Supreme Court was that the covenant stated in the said lease agreement to ‘peaceably hold and enjoy the demised premises’ is a covenant for quiet enjoyment,” the Court of Appeal said.
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Waste too ‘entrenched’ for govt NHI savings By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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HE Government cannot finance National Health Insurance (NHI) from internal savings because waste and inefficiency is too “entrenched” in the public sector, a Cabinet minister has admitted. Dr Duane Sands, minister of health, told Tribune Business that it was simply unable to cut “significant waste” in the public healthcare system fast enough to produce savings that could then be reallocated to fund the revised NHI model. Dr Glen Beneby, former chief medical officer, previously estimated this waste was costing Bahamian taxpayers some $100m per
* Minister: Can’t cut inefficiency fast enough * Florida health spend ‘cuts our own throats’ * Health invest produces ‘greater GDP returns’
annum, a sum equivalent to 25 percent of the public healthcare budget, but Dr Sands said the Government was unable to abandon much of this “without penalty”. Suggesting that a substantial proportion was linked to existing contractual obligations, the minister added that NHI faced competition for any savings from the increased compensation demands of doctors and nurses, plus critical infrastructure upgrades at facilities such as the Princess Margaret Hospital (PMH) and South Beach clinic.
DR DUANE SANDS
‘Useless’ BISX claim ‘vehemently rejected’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A BISX-LISTED company has sprung to the stock exchange’s defence by “vehemently rejecting” charges it is “useless”, saying: “We are living proof that the system can work.” Julian Brown, Benchmark (Bahamas) president and chief executive, told Tribune Business that unrealistic expectations, and a misunderstanding of its role, continued to plague perceptions of the Bahamas International Securities Exchange (BISX) both within and outside the capital markets. Arguing that BISX could not be expected to achieve a “level of efficiency” comparable to leading global exchanges within 18 years,
* ‘We are living proof’ exchange can work * Benchmark chief: Use for capital, not trading * Govt can help with ‘sovereign privatise fund’
JULIAN BROWN due to the Bahamian market’s small size, Mr Brown said it is up to participants to drive solutions rather
than simply criticise. He revealed that Benchmark planned to use its newly-acquired broker/ dealer status to help small retail investors enjoy “better execution” of their “buy” and “sell” orders, and was prepared to act as a “market maker” by providing “risk capital” to encourage initial public offering (IPO) and listing activity on BISX. The Benchmark chief also called on the Government to assist through the privatisation of more stateowned entities, suggesting that it create a sovereign wealth fund into which such
THE Government “will not stand by” and allow Nassau’s water supply to be disrupted by debts owed to the Water & Sewerage Corporation’s main supplier, its executive chairman has pledged. Adrian Gibson moved swiftly to reassure New Providence residents and businesses that a payment plan was in place after BISXlisted Consolidated Water warned of potential supply interruptions to thousands of customers unless a $16.1m bill was paid. He added that “the bulk” of the debt owed to Consolidated Water, which supplies virtually all of the
corporation’s New Providence customers from its Blue Hills and Windsor reverse osmosis plants, had been accrued under the former Christie administration and
was a problem inherited by its successor. “Residents of New Providence should know there will be no disruption in water supply,” the Long Island MP
Bahamas gives OECD, EU anti tax evasion bills
told Tribune Business, “and that the Government and corporation will not stand by and allow the water supply to its citizens to be interrupted by anyone. “The Ministry of Finance and Water & Sewerage Corporation have entered into a payment arrangement but, moreover, a lot of that debt - the bulk of that debt - was accrued during the last administration and not during this administration. “The Ministry of Finance has agreed with the Water &
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assets were transferred to ready them for going public by selling shares to Bahamian investors. Mr Brown, rejecting arguments by David Kosoy, Sterling Global Financial’s chairman, that BISX is “useless” in its current form and needs “new life”, said the exchange needs to be used for “gathering capital” to finance companies and entrepreneurs - rather than viewed as a trading platform - at this stage of its evolution. “For the gentleman [Mr Kosoy] who just reached
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* Water Corp chair confirms $16.1m debt plan * Blames Christie govt for ‘bulk’ of red ink * Windsor plant one of ‘world’s most efficient’
ADRIAN GIBSON
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THE Government has presented the European Union (EU) and OECD with the draft Bills designed to address their concerns over The Bahamas’ ability to combat corporate tax evasion. The Ministry of Finance, in a statement yesterday, said KP Turnquest, deputy prime minister, together with Carl Bethel QC, the attorney general, and Brent Symonette, minister of financial services, met senior EU and Organisation for Economic Co-Operation and Development (OECD) officials last week in a bid to ensure The Bahamas avoids any so-called “watch list”. Mr Turnquest, while pledging that The Bahamas will meet the December 31, 2018, deadline to comply with both organisations’ anti-tax evasion demands, called on both the EU and OECD to account for the short timeframe that countries have to implement the necessary reforms. He was also said to have “stressed that the constant threat of black or grey listing is a major constraint to economic development, and has repercussions that are felt well beyond the financial services industry”. The EU and OECD initiatives, which are heavily linked, aim to combat tax evasion and avoidance by multinational corporations that they believe are eroding the tax bases of their members. In particular, The Bahamas’ Commercial Entities (Substance Requirements)
Govt ‘won’t stand by’ on water supply threat By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Acknowledging calls for the Government to finance NHI through internal savings, rather than levying a new tax on Bahamian employers and workers, Dr Sands told Tribune Business: “The rate of reduction of waste and inefficiency is not going at a rate where we will eliminate waste and inefficiency by next month. “I believe there’s still significant waste in the system, but a lot of it is very entrenched. There are system challenges, process challenges, a lot of them that are contractual commitments built in that we cannot just walk away from without penalty. “If we want NHI, and people have said they want it, to the best of my
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LONG ISLAND ‘DEAD IN WATER’ WITHOUT AIRLIFT By NATARIO MCKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net LONG Island will be “dead in the water” if it does not get the necessary airlift, a private sector representative has warned, although there remains reason for optimism over its rebound. Romona Ritchie-Taylor, vice-president of the Long Island Chamber of Commerce, told Tribune Business that despite a “stagnant” economy there were grounds for
hope if several investment projects materialise. “The economy is pretty much stagnant at the moment. If anything does materialise it would be really good for Long Island,” she said. “There is a lot of talk right now about the Port St George project. “If the Port St George project comes along that could be huge for this island’s economy. There are a few other not-so-large projects I’m hearing about. I think Long Island is at a tipping point now. We are on the verge of something.
I think we can feel it. I believe that. I think it’s an exciting time to be in Long Island. I’m hopeful, I will put it like that. “We really need a boost for the economy. As it stands now, if something doesn’t change and quickly, you can write us off. You have so many people leaving the island and having to go and look for work.” The Port St George project, which has been stalled for a decade, was recently said to have been given new life. Star Resort Group Inc, in a statement
announcing plans for a five-star hotel and spa, 515 luxury homes and a 640berth marina, described the mixed-use development as the first “eco-engineered luxury waterfront destination” spanning from “coast to coast”, featuring a 100acre protected harbour and an 18-hole golf course. The project was first unveiled back in 2008. Mrs Taylor stressed, though, that the island needs airlift if its economy is to be viable. “If we don’t have an international airport with the airlift, we’re dead in the water,” she said. “The tourists want to come here. I’m in the hospitality industry. I have
cottages and villas that I rent, and one of the things people complain about is getting here. “It’s expensive and sometimes difficult, depending on where you’re coming from. A lot of tourists who travel to the islands don’t like to spend any time in Nassau. They want direct flights. They come from further away, have deeper pockets, stay for longer and put more into the local economy than the average visitor who comes to Nassau for a week.” Mario Cartwright, a director at the Long Island Chamber of Commerce, told Tribune Business that plans to improve the
island’s major airport gateway, as highlighted by its MP, Adrian Gibson, could be major plus. “It’s still the young and old here. Most middleaged working class people have to live in Nassau, Freeport or overseas,” he added. “Hurricane Joaquin three years ago really set us back. I don’t know if people really appreciate the devastation we experienced here. That pushed us back 20 years. “We’re trying to bounce back. There is still a lot to be done. We need to get the infrastructure in place to attract those who left and to bring in new people and new investment.”
PAKESIA ParkerEdgecombe, parliamentary secretary in the Office of the Prime Minister, addresses the ITU council.
Bahamas elected to UN agency’s Council THE Bahamas has succeeded in its first-ever bid to join the International Telecommunications Union’s (ITU) council, gaining
the votes of 162 out of 177 member states. This nation will now be seated as one of 48 council members for a body that is the United Nations (UN) agency on information and communications technologies (ICTs). The Bahamas will represent Region A, the Americas, along with Argentina, Brazil, Canada, Cuba, El Salvador, Mexico, Paraguay and the United States. The Council elections took place during the second week of the ITU’s Plenipotentiary Conference (ITU PP), which is currently underway in Dubai in the United Arab Emirates (UAE). The ITU PP is where its 193 member states meet once every four years to elect top executive officials and the 48 member states that will make up the Council. The Bahamas’ ballot was cast by its delegation, led by parliamentary secretary in the Office of the Prime Minister, Pakesia ParkerEdgecombe. She also presented The Bahamas’ policy statement on ICT during the first week of the conference. Mrs Parker-Edgecombe outlined the Government’s accomplishments in ICTs, and shared its proposed
plans for further development of this sector. She told more than 1,500 delegates that the Government has introduced a Community Development Partnership Initiative, which aims to: • Strengthen the use of smart technology by public institutions through facilitating increased access to broadband. • Develop apps and websites to assist in the dissemination of critical information to the public, such as a national alert messaging system to be used during national disasters. • Facilitate greater public online communication access through the establishment of strategic wi-fi hotspots throughout The Bahamas. The ITU’s goal is to promote innovation, accessibility and inclusion by setting rules and regulations governing international telecommunications. The Bahamas is officially represented at the ITU by the Utilities Regulation and Competition Authority (URCA). URCA delegates will be joined by minister of state for legal affairs, Elsworth Johnson, as the conference moves toward negotiation, agreement and signature of the final acts.
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Monday, November 12, 2018, PAGE 3
BAHAMAS ‘MISSES CHANCE’ ON CANADIAN POT SHORTAGE By NATARIO MCKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net CANADA’S recent legal marijuana shortage has been branded a “missed opportunity” for The Bahamas by a local advocacy group, which has been “unnerved” by the lack of progress.
Terry Miller, the way forward. chairman of the “If we were MEDICAL non-profit Bahain position we legalisation mas Cannabis could make miladvocate ‘unResearch Instilions,” he said. “I tute (BACARI), nerved’ by lack believe Jamaica of progress. told Tribune is in contact with Business that the them [Canada] to situation further undersupply. It’s just another scores the potential of missed opportunity for a Bahamian marijuana us.” Canada is reportindustry, with legislation edly running low on legal and regulation “critical” to marijuana just weeks
after sales for recreational use were authorised, with the shortage sending some frustrated consumers back to the black market. “My concern now is the fact that the Prime Minister came home from CARICOM almost three months go and said he would appoint a task force and report in three months,” Mr Miller said. “By now it
Ministry aims to grow 154 retailer waivers THE Ministry of Finance is turning to technology in a bid to grow the number of footwear and clothing retailers qualifying for Customs duty waivers beyond the 154 already approved. The Ministry of Finance, in a bid to reduce the cost of doing business and lower retail shopping prices at home, is urging merchants to apply for the waiver online at: atlas.revenue.gov.bs, its digital portal for exemption applications. “We want to make the application and approval process as smooth as possible, so we encourage eligible businesses to apply online,” said Marlon Johnson, the Ministry of Finance’s financial secretary. “This waiver will help businesses to reduce their costs of doing business, and help consumers to save. We want to make sure businesses are aware of the opportunity and know how to take advantage of it. We have already granted 154 waivers and we will continue to review any new applications we receive online. “Businesses who are granted waivers are obligated to disclose this to consumers. They must advertise this in their stores and show the mark down in prices that resulted from their waivers. Consumers should therefore look out for these in-store signs to ensure they are the
MARLON JOHNSON
beneficiaries of cost savings,” he continued. “Note also that the Ministry will be doing spot checks on merchants to determine their compliance to the terms of the duty waiver - including reducing their prices and advertising same openly to customers.” The elimination of 20-25 percent Customs
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duty on footwear and apparel was unveiled in the 2018/2019 budget, with the exemption taking effect from the start of the new fiscal year on July 1. Recognising that Bahamian retailers were struggling to compete with online shopping and south Florida merchants, the Government
implemented the Customs duty waiver as part of its package of tax relief measures earlier this year. The decision to reduce duty by about 20 percent helps to make shopping more affordable and local retailers more competitive. Eligible shoe and clothing retailers with a valid business license can apply online for the duty waiver. It covers the import of clothing, footwear and other wearing apparels and accessories, as well as fabric for making apparel, sewing needles, buttons and zippers for clothing, for a period of six months. As part of the application process, businesses must declare both the current pricing of sample items at the time of application and the anticipated new price after the concessions are granted. They also have to commit to advertise their marked down prices in a prominent way. And, to qualify for a renewal, they have to show, using examples, how prices have been marked down and quantify the savings passed on to consumers. They are also subject to inspections and review by the Ministry of Finance.
should have reported, and they haven’t even gotten their mandate yet. I’m feeling unnerved by what’s going on and whether we are serious. “I was hoping that by the beginning of the year we would have had that report in, and that would have gone to Parliament so that we could start discussing legislation and
regulation. That’s going to be the critical part. A lot of talk is going on but, at some point, we’re going to come to it hopefully sooner rather than later.” Mr Miller has previously told Tribune Business the economic benefit of a Bahamian marijuana industry is potentially in the tens of millions of dollars.
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Govt ‘won’t stand by’ on water supply threat FROM PAGE ONE Sewerage Corporation to implement an arrears reduction plan, but much of this debt was inherited and incurred during the last administration.” Some $7m, or 43.5 percent of the debt owed by the Water & Sewerage Corporation, was incurred during the first nine months of 2018 according to Consolidated Water’s regulatory filings with the US Securities & Exchange Commission (SEC), covering a time when the Minnis administration was clearly in office. Mr Gibson, meanwhile, declined to comment further, but said the Water & Sewerage Corporation planned to release a more detailed response shortly to Consolidated Water’s warning that its Bahamian subsidiary will lack the financing “to
continue normal operations” unless the Government sticks to a proposed payment plan to settle what is owed. The company, in announcing its third quarter results, said the debt had risen by 76.9 percent this year alone compared to the $9.1m that was due at endDecember 2017, and this was already “adversely impacting the liquidity” of Consolidated Water (Bahamas). David Sasnett, Consolidated Water’s chief financial officer, blamed the Water & Sewerage Corporation’s failure to pay its bills for the $12.8m decline in cash and “cash equivalents” on the company’s balance sheet compared to year-end 2017. Besides the $13.7m invested in rehabilitating its Windsor reverse osmosis plant and a similar facility in the Cayman Islands, Mr Sasnett added: “The second
factor affecting our cash position is the increase in accounts receivables balances owed by the Water & Sewerage Corporation in The Bahamas. “It’s important to note that the Windsor plant is completed. Based on recent conversations with the Ministry of Finance, we expect our collection of accounts receivables balances in The Bahamas to increase in the coming quarters.” Rick McTaggart, Consolidated Water’s president and chief executive, told financial analysts on the same conference call that the company’s capital investments had transformed Windsor into “one of the most energyefficient plants in the world for its size”. He added that the dieselpowered pressure pumps produce “higher reliability and better rates” for the Water & Sewerage Corporation and its New Providence customers, with the commercial arrangement between the two sides for a facility producing 2.6m gallons per day lasting through 2033. While conceding that successive governments had always made good on its outstanding bills, which have peaked at similar amounts in the past, Consolidated Water’s latest SEC filing struck a more urgent tone - and effectively amounted to a warning to the Minnis administration.
It added that if the Ministry of Finance “does not adhere” to the proposed payment plan submitted to it, and/or the corporation continues to be “significantly delinquent” in paying its bills, its Bahamian subsidiary would suffer several adverse consequences that could impact water supply to thousands of New Providence homes and businesses. “Consolidated Water (Bahamas) accounts receivable balances due from the Water & Sewerage Corporation amounted to $16.1m as of September 30, 2018, as compared to $9.1m as of December 31, 2017. The increase in these accounts receivables has adversely impacted the liquidity of this subsidiary,” Consolidated Water warned in its SEC filings. “Consolidated Water (Bahamas) has also experienced similar delays in collecting its accounts receivables from the Water & Sewerage Corporation in prior years, and at times has held accounts receivable balances from the Water & Sewerage Corporation in amounts comparable to the September 30, 2018, balance. “During these periods we arranged meetings, and held discussions, with representatives of the Water & Sewerage Corporation and the Bahamas government to formulate a payment schedule for Water & Sewerage
Corporation’s delinquent accounts receivable, and such amounts were subsequently paid in full.” Consolidated Water added: “Based upon this payment history we have never been required to provide an allowance for doubtful accounts for any of Consolidated Water (Bahamas) accounts receivables, even though Consolidated Water (Bahamas) periodically has been owed substantial delinquent balances. “In October 2018, the Ministry of Finance provided CW-Bahamas with a proposed payment schedule to pay Water & Sewerage Corporation’s delinquent accounts receivable balance as of September 30, 2018, in full by June 2019.” Then came the warning: “If the Ministry of Finance does not adhere to this proposed payment schedule, or the Water & Sewerage Corporation continues to be significantly delinquent in paying Consolidated Water (Bahamas) invoices, then in the coming months one or more of the following events may occur. “One, Consolidated Water (Bahamas) may not have sufficient liquidity to continue normal operations. Two, we may be required to cease the recognition of revenues on Consolidated Water (Bahamas) water supply agreements with the Water & Sewerage Corporation, and
three, we may be required to provide an allowance for Consolidated Water (Bahamas) accounts receivable. Any of these events could have a material adverse impact on our results of operations, financial position and cash flows.” It will not only be Water & Sewerage Corporation customers feeling the effects if this worst-case scenario comes to pass. Bahamian shareholders of Consolidated Water, who hold its shares through Bahamian Depository Receipts (BDRs) listed on BISX, may also see an impact on their investment’s earnings and dividends. The Consolidated Water filings may also shed new light on the reasons behind the Water & Sewerage Corporation’s recent mass disconnection exercise across New Providence and the Family Islands, as its bids to recover up to $45m in accounts receivables owed to it by delinquent customers a significant chunk of which will likely have to be writtenoff - to improve its financial position. They also indicate that a further taxpayer “bail out” of the cash-strapped Water & Sewerage Corporation may soon be forthcoming on top of the annual $20-$30m it typically receives in the annual budget, which is a product of operational inefficiencies and the continued selling of water “below cost”.
BAIC tenant neglect to cost $94k FROM PAGE ONE “Further, that the appellant [BAIC], having leased its premises to be used for horticultural purposes, could not permit another lessor to use an adjoining leased property in a manner which substantially interfered with Good Earth’s ability to use its property in the manner which the
appellant had agreed and required that the property should be used. “Finally, that the appellant under its lease with Albury-Bowe had the ability to cause the rock-crushing operations being carried out on its property to stop, and its failure to do so was a breach of its quiet enjoyment covenant with the respondent [Good Earth Nursery].” BAIC, though, argued that “it could not be held liable for the acts complained of due to the fact that the acts, which gave rise to the above mentioned nuisance, were unauthorised by BAIC”. It also alleged that it had “made all reasonable efforts” to resolve Good Earth Nursery’s complaints with Ms Albury-Bowe. Then-chief justice, Sir Michael Barnett, held that BAIC was liable because it was “capable” of preventing
the problems caused by the rock-crushing operation but had failed to do so - even though Ms Albury-Bowe was in breach of her lease. BAIC challenged Sir Michael’s decision to proceed to trial without an attorney representing it, but this cut little ice with the Court of Appeal, which branded its non-appearance as “inexcusable”. It also hit out at the “unfortunate unsubstantiated allegations” made to it by the agency’s new attorney, Kenria Smith. As for the other element of BAIC’s appeal, the Court of Appeal noted: “Mrs Smith submitted that the evidence does not show that the acts complained of were authorised by the appellant [BAIC]... She contends that based on the authorities the landlord is only liable for a breach of the lease for that which he authorises. “In our view, the learned
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chief justice was correct in his findings. As he rightly noted, the respondent’s [Good Earth Nursery] claim against the appellant [BAIC] in the court below was a claim in contract based on the assertion that the appellant was in breach of its covenant for quiet enjoyment contained in its written lease with Good Earth. “It was clear on the evidence that Albury-Bowe was allowing activities on her premises which were creating a severe nuisance for the respondent, and causing damages to its business. It is also clear that the appellant, as landlord, had the ability and the duty under the contract to cause those offending activities to cease. “It is of significance that the rock-crushing business was not the purpose for which the appellant [BAIC] leased the premises to Albury-Bowe. It was an activity which commenced after the respondent [Good Earth] had been granted its lease for its property to carry-out its business, the nature of which was known to the appellants.”
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Monday, November 12, 2018, PAGE 5
‘Useless’ BISX claim ‘vehemently rejected’ FROM PAGE ONE
on Friday to say that it’s useless, give me a break. Where was he 18 years ago? Certainly not in The Bahamas. If he wants to do something I agree that it needs to be changed, but it ain’t useless,” Mr Brown told Tribune Business. “We would be the first to agree that there are issues for the exchange to solve. However, we would also defend its purpose and vehemently reject the notion or view ‘that right now it is useless’. We [Benchmark] are living proof that the exchange does work. It just needs to have the support and for people to be able to understand the process.” Mr Brown pointed to Benchmark’s own IPO, which coincided with BISX’s launch in 2000, as evidence that the Bahamian capital markets can work as a finance-raising mechanism even though the benefits had taken some time to materialise for company and investors. “Eighteen years ago my father and I did an IPO and listed the company on BISX (one of the first 18) at that time ,” he recalled. “We were able to raise through The Bahamas capital market $2.7m to capitalise the company at $4.959m. Today, the capital of the company is $13m. “We had our share of challenges as we emerged, which we worked through, but the moral of the story is that we fully appreciated and understood the value of the capital market and used it to our advantage. Are we happy with the pricing mechanism on the exchange? No. Does it concern us? Yes, to some degree. “However, we believe that over the long-term these limitations will naturally correct themselves so long as we consistently do a good job of managing and growing the company. Our objective when doing the IPO was not for the trading opportunity, but rather for the capital raising ability as well as to add value to the company and the Bahamian economy. We believe there are more Benchmarks waiting for the same opportunity; they just need to be encouraged, supported and guided.” Mr Brown’s reference to the “pricing mechanism” alludes to restrictions that limit daily movement in a BISX-listed stock to ten percent either side of the previous day’s closing price, although the exchange has recently moved to be “more proactive” in stimulating the market for specific stocks by expanding their trading “bands” beyond these limits.
“I don’t think you can use the structure of the exchange in the way it presently functions as a rationale for saying it’s useless,” he told Tribune Business. “It’s a function of those on the exchange. The exchange is really a platform for everybody to have a central meeting place to transact. It’s just a common ground. “Yes, the pricing mechanism can be better, but when the news is good the sellers go away, and when it is bad, the buyer goes away. We don’t have a trading exchange, but that’s a mechanism of your intellect and the people who use the exchange. “The exchange is only a mechanism where people know they can come in and acquire a particular public company’s stock whose shares are listed on the exchange, and place an order to sell. It’s a platform of functionality. You have to grow with it.” Mr Brown said BISX was currently operating as an “execution”, rather than “trading” platform, due to the relatively illiquid market with few buyers and sellers willing to transact. As a result, broker/dealers were currently organising trades and then bringing them to the exchange to execute, something he described as “a fact of life” and not a criticism of participants. “In a market where less than one percent of the population directly own shares, it [the exchange] shouldn’t be for trading; it’s the gathering of capital for funding ideas,” the Benchmark chief said. “In its infancy, that’s what it should be for. “We believe that it is unfair for anyone to expect that an economy such as The Bahamas, which is still emerging, could have a capital market functioning with new issues regularly, and trading activity that causes the exchange to price and trade securities listed on the exchange effectively. “Emerging capital markets in economies like The Bahamas don’t evolve in 18 years to that level of efficiency; it takes a lot more time and a collective community effort. After 18 years of operation the authorised broker/dealers on the exchange still don’t provide risk capital for the exchangewhich would allow them, through the exchange, to actively make a market for any stocks listed on the exchange,” Mr Brown continued. “The reason being that they don’t have that level of risk capital, and the market does not offer liquidity which would give them the comfort to do so. Entrepreneurs with striving businesses are reluctant
to bring their companies to the market because they believe it is t oo complicated and problematic to maintain, while new companies are subject to stiff regulations which stunt their opportunity. Therefore, in recent times the only issues to come to the exchange as initial public offering are those that the Government encourages based on circumstances.” The last two Bahamian IPOs were Commonwealth Brewery in 2010 and Arawak Port Development Company (APD) in 2012, both of which were driven by the Government. The former was a tradeoff in return for approving Heineken’s buy-out of the Finlayson family, while the Government’s 40 percent equity stake gave it significant influence over the latter. Mr Brown, meanwhile, signalled Benchmark’s willingness to help solve some of BISX’s problems after it became the exchange’s latest broker/dealer member. “We have a strategy to assist the smaller investors trading on the exchange with receiving better execution of their orders,” he explained. “We can certainly assist the smaller guy once we’re fully functional on the exchange. Why should it take two to three weeks to get 200 shares sold? “We also have a strategy to provide some level of risk capital to The Bahamas capital market, which we believe will improve the frequency of new issues of IPOs and listing on the exchange. Hopefully our efforts will be followed by others in the economy and market.” Mr Brown also urged the Government to do its part by establishing a national privatisation policy for government agencies, possibly through an Act of Parliament, and creating a sovereign fund that would hold these assets and ready them for sale to Bahamian investors. “BTC should have been privatised through the exchange rather than having the shares held in trust for the benefit of the Bahamian people,” he said, with NewCO - the entity that currently holds the Government’s 51.75 percent equity stake in Aliv, the second mobile operator, the next candidate for privatisation via IPO. “This sovereign fund should be a public /private relationship. Such a development will give the Government the muchneeded cash for the Public Treasury and assist with the reduction of the national deficit and the potential drag these enterprises have on the international credit
rating of the country. “A sovereign capital fund would be properly capitalised, and can be registered as a broker/dealer on BISX to provide the necessary liquidity for the exchange as well as capital for new business opportunities such as IPOs, crowd funding and venture capital investments.” Mr Brown’s comments echo a core element of BISX’s founding strategy, which saw the exchange ramp up its business in anticipation of receiving government bond and debt listings, plus the fruits of BTC’s privatisation. None of this materialised, helping to plunge the exchange into heavy losses which resulted in its government-aided bail-out after just three to four years. “We believe that BISX did not do a good job at its inception of properly defining and marketing its mission and purpose, which in our view has caused the exchange to come under continuous criticism,” the Benchmark chief added. He called on the exchange to relaunch “with a clearly defined mission statement which, in our opinion, is to assist entrepreneurs with funding their capital needs via IPO or crowd funding. The mission statement must clearly give the entrepreneur a high level of comfort and support to appreciate that the exchange is there to offer assistance and guidance during and after its IPO or crowd funding”. Mr Brown also recommended upgrades to BISX’s technology platform, saying: “The Bahamas suffers from a transitional challenge in that our economic infrastructure is superior to the average Bahamian’s ability to comprehend. This creates pockets of stress in our communities as our country continues to struggle to grasp all the opportunities that this 21 century offers. “Not until we advance more of the populous into the 21st century, its technology and mode of doing business will BISX function to its optimum potential. Until then those of us who are in the lead must do all we can to ensure that none of us get left behind.”
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THE TRIBUNE
Waste too ‘entrenched’ for govt NHI savings FROM PAGE ONE
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N O T I C E APPOINTMENT BROCKFIELD ASSETS LIMITED (In Voluntary Liquidation) Company Number: 1829637 Notice is hereby given pursuant to Section 204(1)(b) of the BVI Business Companies Act, 2004 that the Company is in voluntary liquidation. The voluntary liquidation commenced on 15th October, 2018. The Liquidator is Krizia Archer-Pratt of c/o Lyford Cay House, 6th Floor, Western Road, P.O. Box N-7776 (Slot 193), N.P. The Bahamas. 15th October, 2018 Sgd.
Krizia Archer-Pratt Liquidator
PKF BAHAMAS
QUALIFIED ACCOUNTANTS
REQUIRED
PKF Bahamas, an International Accounting Firm, seeks to recruit senior professional qualified persons with recognized accounting qualifications, and trainee accountants. Qualified persons must be eligible for membership in The Bahamas Institute of Chartered Accountants and must have at least two (2) or three (3) years post qualification experience. Only Bahamians need apply. Preference will be given to applicants with proven audit and assurance experience. Salary and benefits subject to negotiation. Please apply in writing to: Human Resources Partner PKF Bahamas P. O. Box N-8335, Nassau, Bahamas.
understanding with what exists right now it’s going to require different things, and the savings and re-purposing of funds will have to go to renegotiating contracts with doctors, improved terms for nurses, repairs at PMH and South Beach,” Dr Sands added. “Some of the funds that are in the system that could be repurposed for NHI are being hypothecated to other things.” The “wasted” $100m previously identified by Dr Beneby equals Dr Sands’ recent estimate for how much the revised NHI scheme will cost. Besides the proposed levy on employers and employees, mirroring the National Insurance Board (NIB) payroll tax contributions, other financing options include between $4-$10m from a “sugary drinks tax” and a reallocation of VAT levied on health insurance premiums. The minister, meanwhile, said the Government’s revised scheme was a marked departure from the “something for nothing” promises of the former Christie administration. “That’s not what I’m promising,” Dr Sands told Tribune Business. “I’m promising Bahamians honesty, transparency and value, and showing you how we got from this to that. Either
people say they want this, and are willing to pay for it, or they say no. “The argument I’m hearing is that we want it, but take the money from somebody else. Or we don’t believe these added services should involve an additional cost on people making less than $20,000, $15,000, $10,000 a year. “There’s merit to a progressive system of charging and taxing,” the minister continued. “The question is: At what point is it good enough for any particular individual. Some might say that $42 a month for an individual making $25,000 a year is pretty good. “I’m hearing arguments from some quarters that people making less than $25,000 a year shouldn’t pay any premium. This is the nature of politics, and you look at the dialogue and find the morsels that are tasty, the bits that are useful for advancing and progressing, but some of it you dismiss because it is not helpful.” The NHI Authority’s proposed taxation/contribution structure already has progressive elements, with workers earning just $5,000 a year expected to contribute just $8 per month towards the Standard Health Benefit (SHB) - the scheme’s minimum level of coverage - with employers picking up the $75 balance of the $83 monthly payment. Employees earnings $10,000, $15,000 and $20,000
per annum will be required to pay monthly premiums of $17, $25 and $33, respectively, with only workers earning $25,000 - The Bahamas median income - and over contributing $42 or half the monthly amount. Dr Sands, meanwhile, said numerous studies worldwide had shown that Universal Healthcare Coverage (UHC) schemes, such as the one that The Bahamas proposes to finance via NHI, generate more in GDP growth and productivity than what a country spends on them. Besides slashing the money families have to fund to care for those who have pre-existing illnesses, or are uninsurable, the Minister suggested NHI would strengthen the healthcare system’s overall infrastructure by reducing the amount Bahamians spend on healthcare in south Florida and elsewhere in the US. “It further strengthens the capacity of The Bahamas to repatriate some of the funds spent elsewhere,” he told Tribune Business. “The 800-900 pound gorilla in the room is Bahamians spend $200-$300m a year in south Florida on healthcare, and we cut our own throats in terms of taking care of our own. “We make it very difficult to invest in technology, certain levels of professionals to improve healthcare locally. If we change the model a bit and shift patients from the public system, we have an opportunity to grow our healthcare system to standards that exist elsewhere or better.” Dr Sands continued: “The return on investment is very
NOTICE
Faircraft Investments Ltd. NOTICE IS HEREBY GIVEN as follows: (a) Faircraft Investments Ltd. is in dissolution under the provisions of the International Business Companies Act 2000. (b) The dissolution of the said Company commenced on the 7th day of November, 2018 when its Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said Company is Mr. Alessandro Conelli of Rue Verdaine 1, 1204 Geneve, Switzerland. H & J CORPORATE SERVICES LTD. Registered Agent for the above-named Company
NOTICE
TEVIN INVESTMENT MANAGEMENT INC.
In Voluntary Liquidation
Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, TEVIN INVESTMENT MANAGEMENT INC. is in dissolution as of October 30, 2018 International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator. LIQUIDATOR ______________________
YOUR
clear. I can cite countless studies that investment in UHC more than returns in GDP the amount spent. An investment in healthcare brings more than the dollar amount in return or growth in GDP. “That’s proven over and over. It gets down fundamentally to the question: Do we believe in insurance, yes or no? Most of us have a problem with insurance until we need it. The language, and I’m not going to quibble over it, is really intended to evoke an emotional response to it. Most of the media is calling it a two percent tax. OK.” Dr Marcus Cooper, the Medical Association of The Bahamas (MAB) president, told Tribune Business last week that the body was still assessing the revised NHI model, although he hinted at unhappiness that neither it nor its members had been consulted by the Government to-date. He said: “We’ve not had any meaningful consultation withe the NHI Authority or Dr Sands. We’d been hoping that would be done by now. We hope to have some definitive answers to questions we have.” Rick Lowe, an executive with the Nassau Institute think-tank, echoed concerns that the revised NHI scheme’s launch is especially ill-timed following the recent VAT rate increase. “It’s just another nail in the coffin to slow things down again. The evidence is in study after study. The more you raise taxes, the more you slow the economy and it takes a while to adjust,” he said.
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THE TRIBUNE
Monday, November 12, 2018, PAGE 7
Bahamas gives OECD, EU anti tax evasion bills FROM PAGE ONE Bill is designed to address the EU’s demand for all nations to impose “economic substance” regimes that effectively require companies to have a physical presence - and do “real business” - in a jurisdiction. It wants corporate profits, revenues and assets to be taxed in the jurisdictions where they are generated. They are thus aiming to prevent companies, especially multinational corporations, from exploiting gaps in tax types, rates and rules to artificially shift profits from jurisdictions where they are generated to low or “no tax” jurisdictions, thus lowering their tax bill. The EU’s offensive is directly tied to the OECD’s Base Erosion and Profit Shifting (BEPS) initiative. The Bahamas has already agreed to comply with the BEPS minimum standards, which seek to achieve the same anti-tax evasion goals as the EU. The 29-nation EU, though, is going further than the OECD by demanding the elimination of “ring fencing”, or preferential tax regimes for non-resident entities and foreign investors, which are not offered to their Bahamian counterparts. A particular concern for The Bahamas is the preferential stamp tax regime for International Business Companies (IBCs) already in existence, and which investors have a legitimate expectation of enjoying, along with the flat $300 business licence fee for non-resident entities. Many in the financial services industry have called
MINISTERS meet with EU and OECD to discuss ending tax watchlists for The Bahamas.
for the Removal of Preferential Exemptions Bill, which is designed to address the EU’s “ring fencing” concerns, to “grandfather” in any changes for investors and Bahamian-domiciled entities already enjoying these benefits. Other draft Bills produced for the EU and OECD’s review include the the Register of Beneficial Ownership Bill and the Non-Profit Organisations
Bill, with the Ministry of Finance yesterday confirming all four pieces of legislation will be enacted by month’s end. Mr Turnquest said in a statement: “The meetings were very productive, and we feel that the Europeans now have a greater understanding that The Bahamas has always been focused, at the highest political level, on protecting the integrity of the Bahamian financial
system from abuse. “Our approach has been to take a holistic view of the challenges that confront us
and, pragmatically, do what promotes the long-term viability of our financial services industry.”
Mr Turnquest could not be reached for further comment, and it is unclear whether the Government delegation addressed the OECD’s listing of The Bahamas’ economic permanent residency regime among investment incentives that threatened the integrity of its automatic tax information benchmark, the Common Reporting Standard (CRS). That was not mentioned in the Ministry of Finance’s statement, even though it referred to meetings with the OECD’s deputy secretary-general; the deputy director of the OECD Centre for Tax Policy and Administration; and the head of the secretariat of the Global Forum on Transparency and Exchange of Information for Tax Purposes. As for the EU, the Government team met with the Code of Conduct Group, the directorategeneral for taxation and Customs Unions and other representatives of the European Commission. The EU “blacklisted” The Bahamas earlier this year for being non-cooperative in the fight against corporate tax evasion, although a swift government response resulted in this nation’s rapid removal.
PAGE 8, Monday, November 12, 2018 FORT LAUDERDALE Associated Press MISHAPS, protests and litigation dominated Florida’s first day of recounting the vote for pivotal races for governor and Senate, bringing back memories of the 2000 presidential fiasco. Much of the drama yesterday centred on Broward and Palm Beach counties, home to large concentrations of Democratic voters. In Broward County, the recount was delayed for several hours yesterday morning because of a problem with one of the tabulation machines. That prompted the Republican Party to slam Broward’s supervisor of elections, Brenda Snipes, for “incompetence and gross mismanagement”. Broward officials faced further headaches after they acknowledged the county mistakenly counted 22 absentee ballots that had been rejected. The problem seemed impossible to fix because the dismissed ballots were mixed in with 205 legal ballots and Snipes said it would be unfair to throw out all of those votes. By the end of the day, Gov Rick Scott, the Republican candidate for Senate, filed suit against Snipes in a circuit court. He sought a judge’s order that law enforcement agents impound and secure all voting machines, tallying devices and ballots “when not in use until such time as any recounts”. The lawsuit accused Snipes of repeatedly failing to account for the number of ballots left to be counted and failing to report
FLORIDA ELECTION RECOUNT CONTINUES AMID TENSIONS, LITIGATION CROWD of protestors gather outside the Broward County of Supervisor of Elections Office as the statewide election recount is underway while ballots for governor, Senate, Agricultural Commission were run through scanning machines in Broward for a second time under the watchful eye of representatives of both parties and the campaigns yesterday. Photo: Carl Juste/AP
results regularly as required by law. Juan Penalosa, the executive director of the Florida Democratic Party, accused Scott of “using his position
to consolidate power by cutting at the very core of our democracy”. Meanwhile, in Palm Beach County, the supervisor of elections said she doesn’t
believe her department will be able to meet the state’s Thursday deadline to complete the recount, throwing into question what would happen to votes there. The developments added up to a tumultuous day in America’s premier political battleground state. More than half of Florida’s 67 counties began a recount process that’s unprecedented even in a state notorious for settling elections by razorthin margins. State officials said they weren’t aware of any other time a race for governor or US Senate required a recount, let alone both in the same election. The recount in other major population centers, including Miami-Dade and Pinellas and Hillsborough counties in the Tampa Bay area, was ongoing without incident yesterday. Smaller counties are expected to begin their reviews in coming days. Unofficial results showed Republican former US Rep Ron DeSantis led Democratic Tallahassee Mayor Andrew Gillum by 0.41 percentage points in the election for governor. In the Senate race, Scott’s lead over Democratic incumbent Bill Nelson was 0.14 percentage points. State law requires a machine recount in races where the margin is less than 0.5 percentage points. Once completed, if the differences in any of the races are 0.25 percentage points
or below, a hand recount will be ordered. As the recount unfolded, Republicans urged their Democratic opponents to give up and let the state to move on. Scott said yesterday that Nelson wants fraudulent ballots and those cast by noncitizens to count, pointing to a Nelson lawyer objecting to Palm Beach County’s rejection of one provisional ballot because it was cast by a noncitizen. “He is trying to commit fraud to win this election,” Scott told Fox News. “Bill Nelson’s a sore loser. He’s been in politics way too long.” Nelson’s campaign issued a statement yesterday saying their lawyer wasn’t authorised to object to the ballot’s rejection as “Non-citizens cannot vote in US elections”. In Fort Lauderdale, Gillum appeared at a predominantly AfricanAmerican church yesterday evening, telling an overflow crowd that voter disenfranchisement isn’t just about being blocked from the polling booth. He said it also includes absentee ballots not being counted and ballots where “the ‘w’ in their signature may look different today than the ‘w’ in their signature yesterday, that a volunteer may have the option of looking at that ballot and deciding that vote is null and void.” The fact that Trump and Scott “are fighting like you know what to stop the vote
THE TRIBUNE count, that ought to tell you something,” Gillum said. “They don’t get to shut down the process because they’re not winning.” Gillum and Nelson have argued each vote should be counted and the process should take its course. Both the state elections division, which Scott runs, and the Florida Department of Law Enforcement have said they have found no evidence of voter fraud. That didn’t stop protests outside Snipes’ office, where a crowd of mostly Republicans gathered, holding signs, listening to country music and occasionally chanting “lock her up”, referring to Snipes. A massive Trump 2020 flag flew over the parking lot and many members of a Bikers For Trump group wore matching shirts and carried flags, mingling among a crowd that included a protester wearing a Hillary Clinton mask. Registered independent Russell Liddick, a 38-yearold retail worker from Pompano Beach, carried a sign reading, “I’m not here for Trump! I’m here for fair elections! Fire Snipes!” He said the office’s problems “don’t make me feel very much like my vote counted.” Florida is also conducting a recount in a third statewide race. Democrat Nikki Fried had a 0.07 percentage point lead over Republican state Rep Matt Caldwell in the race for agriculture commissioner, one of Florida’s three Cabinet seats. The recounts might dredge up memories of the 2000 presidential recount, when it took more than five weeks for Florida to declare George W Bush the victor over Vice President Al Gore by 537 votes, thus giving Bush the presidency. But much has changed since. In 2000, each county had its own voting system. Many used punch cards — voters poked out chads, leaving tiny holes in their ballots representing their candidates. Some voters, however, didn’t fully punch out the presidential chad or gave it just a little push. Those hanging and dimpled chads had to be examined by the canvassing boards, a lengthy, tiresome and often subjective process that became fodder for late-night comedians. Now the state requires all Florida counties use ballots where voters use a pen to mark their candidate’s name, much like a student does when taking a multiplechoice test. And how counts proceed is now clearly spelled out. Those ballots are now being run through scanning machines in each county for a second time under the watchful eye of representatives of both parties and the campaigns. Any ballot that cannot be read for any of the recounted races will be put aside.
THE TRIBUNE
Monday, November 12, 2018, PAGE 9
France seizes jet at takeoff after Ryanair doesn’t pay bill
A RYANAIR plane sits on the tarmac at the Bordeaux-Merignac airport in southwestern France, after being impounded by French authorities on Friday. PARIS Associated Press STORMS, strikes, computer failures — you can now add “your plane has been seized by the government” to the list of things that can delay your flight. In France, 149 passengers were preparing to take off for London late Thursday when French authorities ordered their Ryanair Boeing 737 impounded. The budget carrier owed money and it was “regrettable that the state was forced” to evacuate the plane, the civil aviation authority said. The passengers had gone through passport control and security and were about to walk on the tarmac to board the plane when airport authorities told them to turn around, passenger Boris Hejblum said. “The airport staff told us there was an issue with the plane,” he told The Associated Press in an email. No Ryanair staff members were available, and the only communication from the airline was two text messages saying simply that the departure was delayed, and a 5-euro ($5.75) voucher for food — “less than what a sandwich cost at the
airport café,” the 30-year-old Frenchman said. “I found it strange that the police were the only ones giving us information,” he said. The passengers were put on another flight that finally brought them to London’s Stansted airport — five hours late. The multi-million dollar jet, meanwhile, was released only on Friday after Ryanair paid a bill of 525,000 euros ($610,000). The scene unfolded at the Bordeaux-Merignac airport in western France, where authorities say the airline was ordered to pay back funds that the European Union had declared to be illegal subsidies. Ryanair did not publicly comment on the seizure. French aviation agency spokesman Eric Heraud said regional authorities who originally gave the subsidies had been trying since 2014 to recover the money, and sent its final legal warning in May. After six months without a response from Ryanair, it decided to act on Friday. The standoff with French authorities will not help Ryanair, which more than most carriers, has come to symbolise budget airlines’ relentless focus on the bottom line at the cost of customer service.
Ryanair has become Europe’s largest airline by number of passengers by persistently offering some of the cheapest fares available. That ensures its planes are packed. It then makes extra money with add-on fares. Besides charging for seating choice and food — now standard practice on budget flights the world over — it also has travelers pay for any carry-on bag that’s larger than a purse. It manages to keep its costs down by flying to out of the way airports at odd hours to get cheaper airport slots. Its CEO, Michael O’Leary, personifies the airline’s brash approach, sparring with unions and EU authorities. And despite conceding in 2013 that “we should try to eliminate things that unnecessarily piss people off”, the airline retains its reputation as something to be endured for the sake of flying cheaply around Europe. “I would say we just took it as another Ryanair problem, having no information from them,” Hejblum said of Thursday’s incident. “When we found out about the seizure, I would say the general sentiment was to blame Ryanair for not complying with the law.”
NOTICE In the Estate of RODNEY WILBERT BRAYNEN late of 26 Halifax Road, Stapledon Gardens in the Western District of the Island of New Providence one of the Islands of The Commonwealth of The Bahamas, deceased. NOTICE is hereby given that all persons having any claim or demand against the above Estate are required to send the same duly certified in writing to the undersigned on or before the 10th day of December, 2018, after which date the Administratrix will proceed to distribute the assets having regard only to the claims of which she shall then have had notice. AND NOTICE is hereby also given that all persons indebted to the said Estate are requested to make full settlement on or before the date hereinbefore mentioned. HIGGS & JOHNSON Chambers Ocean Centre Montagu Foreshore East Bay Street P. O. Box N-3247 Nassau, Bahamas. Attorneys for the Estate of Rodney Wilbert Braynen
PAGE 10, Monday, November 12, 2018
THE TRIBUNE
With Uber Eats’ fast growth comes potential for profit
SHANGHAI Associated Press
SAN FRANCISCO Associated Press IN THREE years, the Uber Eats restaurant food delivery service has grown from an experiment to serving much of the US and major cities worldwide. By year’s end, the ridehailing company says it will cover 70 percent of the US population and be in 243 metro areas, mainly by expanding into smaller cities. It’s already in over 300 cities in 36 countries with many international deliveries done by bicycle. Jason Droege, an Uber vice president who leads Uber Everything, the unit that explores how to build new businesses off the Uber network, says Eats is growing as fast as the ride-hailing service did in its early days. He talks about the future of the service and demand for getting food delivered to your home. Questions and answers have been edited for length and clarity. Q: Is there a particular demographic group that uses Uber Eats? A: Certainly younger generations use it more. It’s more like how they eat. I think there’s a convenience premium for people who are coming of age now versus people who already have their habits set. If you look back, fast casual was something that was just getting going when I was ten, 11 years old. My generation is very used to going to a restaurant and doing take out, versus maybe the previous generation might have been used to ‘hey, let’s go get groceries’. Take out has been on the rise ever since the mid to late 80s. Now you have a generation who wants the additional convenience. Maybe they want to stay home and watch Netflix, or use social media, or they want the access to hundreds of restaurants. Q: What kind of range do you serve from a customer’s home?
JASON DROEGE, an Uber vice president who leads Uber Everything, the unit that explores how to build new businesses off the Uber network. Droege says Uber Eats is growing as fast as the ridehailing service did in its early days. Photo: Uber Inc Technologies/AP A: We want to make sure that the food arrives hot and delicious. If the food is in the car too long, that’s bad. It’s more about the time than it is about the business because we want that experience to be high quality. Uber has always believed that the faster you can get your ride, or your food, changes how consumers think about the level of convenience. So we’ve been focused from the beginning on getting food delivery from 40 to 45 minutes (from the order time) down to, I think our global average is now 31 minutes. Usually when people are ordering they’re hungry. So we see that people use the product more when it’s delivered faster, so we focus a lot on speed.
Q: How did you know that people would want more than pizza delivered to their home, was it testing? A: Sometimes we do tests and they work, sometimes we do tests and they didn’t work. Uber historically has done stunts. Uber ice cream, where we delivered ice cream on demand for a few years, or there was Uber puppies and Uber kittens, where a car would roll up and you’d play with some kittens in the back. We did those actually very locally. One common thread you saw is when a city, like the city of Fresno put on the local barbecue spot that was hard to get to, had really long lines, you saw a lot of demand. From the early days, we noticed
that when we put popular restaurants on Uber and delivered them on demand, those are some of our most consistently successful stunts. Even in our marketing promotions we saw food and Uber had some connectivity. So we had some signal, but experimentation is what really pushed us there. Q: Is Eats a profit-making entity? A: We’re focused on growth now, so we’re investing aggressively. We feel really good about the economics of the business. Before we went into expansion, we actually got to a point where we saw the path to profitability, which is why we decided to invest aggressively.
MARKET REPORT THURSDAY, 8 NOVEMBER 2018
t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com
BISX ALL SHARE INDEX: CLOSE 2,005.85 | CHG -4.13 | %CHG -0.21 | YTD -57.72 | YTD% -2.80 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 20.91 7.50 4.46 1.22 0.44 3.92 9.30 6.60 4.97 12.50 2.74 1.78 8.21 6.30 13.20 6.79 4.50 13.50
52WK LOW 3.50 19.17 7.50 3.32 0.90 0.16 2.25 8.60 6.09 3.54 9.00 2.30 1.50 7.25 6.00 10.10 5.67 3.25 12.50
1050.00 1000.00 1000.00 1000.00
1000.00 1000.00 1000.00 1000.00
PREFERENCE SHARES
1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01
1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00
SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B
CORPORATE DEBT - (percentage pricing) 52WK HI 100.00
52WK LOW 100.00
115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 ##########
104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB
SECURITY Fidelity Bank Note 22 (Series B) +
SYMBOL FBB22
Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y
BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407
BAHAMAS GOVERNMENT STOCK - (percentage pricing)
LAST CLOSE 4.45 17.43 9.09 4.46 1.01 0.44 2.30 9.30 6.15 4.00 12.42 2.38 1.78 7.65 6.30 12.99 6.75 3.63 13.01
CLOSE 4.45 17.43 9.09 4.46 1.01 0.44 2.30 9.30 6.15 4.00 12.42 2.45 1.78 7.57 6.30 12.98 6.41 3.63 13.01
CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.07 0.00 -0.08 0.00 -0.01 -0.34 0.00 0.00
1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00
1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
CLOSE 100.00
CHANGE 0.00
107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
LAST SALE 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
VOLUME
776
2,100 1,650 4,955
VOLUME
EPS$ 0.214 0.932 -0.306 0.317 0.059 0.000 -0.588 0.700 0.441 0.154 0.627 0.102 0.209 0.000 0.670 0.701 0.578 0.277 0.631
DIV$ 0.100 1.130 0.000 0.240 0.000 0.010 0.000 0.710 0.220 0.120 0.620 0.060 0.060 0.084 0.280 0.500 0.150 0.130 0.590
P/E 20.8 18.7 N/M 14.1 N/M N/M -3.9 13.3 13.9 26.0 19.8 24.0 8.5 N/M 9.4 18.5 11.1 13.1 20.6
YIELD 2.25% 6.48% 0.00% 5.38% 0.00% 2.27% 0.00% 7.63% 3.58% 3.00% 4.99% 2.45% 3.37% 1.11% 4.44% 3.85% 2.34% 3.58% 4.53%
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%
INTEREST Prime + 1.75% 6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%
MATURITY 19-Oct-2022 ############### 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022
MUTUAL FUNDS 52WK HI 2.18 4.16 2.02 182.41 158.55 1.58 1.70 1.66 1.10 6.99 8.54 6.15 10.52 11.46 10.46 10.00 8.45 11.20
52WK LOW 1.67 3.04 1.68 164.74 116.70 1.52 1.68 1.61 1.08 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20
China’s annual shopping frenzy shatters records again
FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F
NAV 2.18 4.16 2.02 182.41 158.55 1.58 1.69 1.66 1.09 7.36 8.47 6.53 11.32 11.67 10.54 9.93 8.45 11.20
YTD% 12 MTH% 2.90% 4.07% 0.44% 4.38% 1.70% 2.35% 2.08% 3.47% 3.35% 5.94% 3.22% 4.22% -0.38% 3.34% 2.39% 4.01% -0.38% 0.53% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69% -0.61% 0.75% 1.13% N/A 2.95% N/A
NAV Date 30-Sep-2018 30-Sep-2018 28-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018
MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings
YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful
TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225
ONLINE shoppers in China have shattered last year’s record of $24bn in sales on the country’s annual buying frenzy yesterday, as the tradition marked its 10th year. The spending binge has for years eclipsed Cyber Monday in the US for online purchases made on a single day. This year’s tally breaks from gloomy forecasts about the world’s second-largest economy, which is struggling with a tariff war with the US, a stock market slump and slowing overall growth. Known as Singles Day, the clamour for deals and discounts was heralded with characteristic fanfare by Chinese e-commerce giant Alibaba, which has turned an unofficial holiday for people without romantic partners into a yearly windfall for digital retailers. A massive screen at Alibaba’s gala in Shanghai showed the surging sales numbers in real time: At two minutes and five seconds after midnight on Saturday, ten billion yuan ($1.43bn) in purchases had already been made on Alibaba’s platforms. By the one hour and 47 minute mark, that number had increased tenfold. Just before 4pm yesterday, the sales reached 168.2 billion yuan ($24.2bn) — surpassing the total purchases from last year’s Singles Day, according to figures posted online by Alibaba Group. Singles Day began as a spoof event celebrated by unattached Chinese university students in the 1990s. In Chinese, it’s called “Double 11”, after the numbers in the month and date. The improvised holiday was co-opted by e-retailers in 2009 and transformed into China’s version of Cyber Monday, as the Monday after Thanksgiving is known. Nearly $6.6bn in sales were made on Cyber Monday in 2017, up about 17 percent from the previous year, according to Adobe Analytics. Ren Xiaotong, a 27-yearold accountant in Beijing, said she suspected online stores jacked up their prices
in the lead-up to Singles Day so they could declare that items were discounted. But in the end, her skepticism didn’t stop her from partaking. “Singles Day is different now — it has more tricks than before,” Ren said. “You only save a few dozens of yuan at the end. That being said, I still bought a pair of shoes, simply to celebrate the festival.” The Twitter-like Weibo platform was blanketed with Singles Day-related posts yesterday, from users proudly proclaiming that they had resisted the shopping urge this year to those who cheerfully listed an array of mundane purchases. Alibaba founder Jack Ma, who will step down as chairman in less than a year, attended the start of the gala in Shanghai and appeared in a video message in which he wrapped up live hair crabs, a popular online purchase. Singles Day “is not a day of discounts, but rather a day of gratitude,” Ma said in the video. “It’s when retailers use the best products and best prices to show their gratitude to our consumers.” Chinese e-commerce platforms have come under fire in the past for peddling low-quality and counterfeit items. Hong Tao, an economics professor at Beijing Technology and Business University, said Singles Day encourages shoppers to prioritize cheap prices over high quality, causing them to purchase items they don’t need. “People are swept up in the festivities,” Hong said in a phone interview. “This burst of consumption, confined to just one day, can be exhausting for both buyers and sellers.” The occasion also has big environmental implications. While both Alibaba and competitor JD.com have pledged to use biodegradable packaging to cut down on waste, research conducted this month by Greenpeace East Asia said many plastics marked “biodegradable” and used by Chinese e-retailers can break down only under high temperatures in facilities that are limited in number across the country.
NOTICE Notice is hereby given that DIEUPSON NORE of Fire Trail Rd., New Providence The Bahamas is applying to the Minister responsible for nationality and Citizenship, for Registration/Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written signed statement of the facts within twenty-eight days from the 5th November, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147, Nassau, The Bahamas.
NOTICE Notice is hereby given that DeANGELO ALBURY LIGHTBOURNE of Holmes Rock, P.O. Box F-40191, Grand Bahama The Bahamas is applying to the Minister responsible for nationality and Citizenship, for Registration/ Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written signed statement of the facts within twenty-eight days from the 12th November, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147 Nassau, The Bahamas
NOTICE NOTICE is hereby given that NAJAE O. HENRY, of Johnson Road, Nassau, New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 5th day of November, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Povidence, The Bahamas.