11132019 BUSINESS

business@tribunemedia.net

WEDNESDAY, NOVEMBER 13TH, 2019

$4.52 Local insurers in $85m Dorian loss By YOURI KEMP THE Bahamian insurance industry’s share of Hurricane Dorian losses is a collective net $85m, industry regulators revealed yesterday. Jamel Bodie, the Insurance Commission of The Bahamas (ICB) supervision manager, told the Accountants’ Week conference: “We will go back to insurance companies before the end of the week to get an indication of what their losses look like. But for right now the net losses are sitting around $85m.” While total Dorianrelated claims payouts were last week pegged at between $1.5bn to $2bn, Ms Bodie confirmed that Bahamian property and casualty insurers will absorb a relatively low percentage of this because of the vast quantities of reinsurance cover they purchase annually. As a result, local carriers do not keep or retain a large amount of risk on their books. While Dorian will impact Bahamian insurers’ solvency margins due to these losses and claims payouts, the Insurance Commission official said this would not be to the extent that would see them fall below the regulator’s prescribed capital ratio. Ms Bodie added that Bahamian life and health insurance companies had informed the Insurance Commission that they intend to stick within he guidelines established by the Missing Person’s law, which means that a family member would have to wait seven years before being able to declare a Dorian victim officially dead. Carl Bethel QC, the attorney general, responding to earlier suggestions made by Sir Franklyn Wilson, chairman of Arawak Homes and Sunshine Insurance, that the Missing Person’s law needed to be change following Dorian, told Tribune Business the existing Coroner’s Act enables the process for dealing with missing persons, who are presumed dead, to be speeded up. Ms Bodie, though, said that until the law is changed insurance companies they will stay with the regulations outlined in the Missing Person’s law for “any varying reason”. She then confirmed there will be a “merger” of the domestic Insurance Act and the External Insurance Act next year, explaining that the Insurance Commission wants to focus on the nature of the business rather than whether a firm is active inside or outside The Bahamas. A systemic levy of three percent tax or $20,000, whichever is greater, will be charged across different categories. The Insurance Commission also plans to fully phase-in risk based capital requirements by 2022, even though the regulations

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$4.57

$4.60

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Insolvent adviser meets just 25% of $1m liability

Water Corp supplier fears Dorian blow on $16.2m owing

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

good creditworthiness. “We did have some meetings in New York, and we all felt - and our advisors told us - the meetings seemed to have gone well and were well received,” Mr Andrews said. “We were meeting some of the rating agencies. “This discussions focused not only on BPL but just where The Bahamas stood in general. It’s a real education

THE Water & Sewerage Corporation’s main supplier yesterday voiced concern that Hurricane Dorian has “exacerbated” the Government’s difficulties in paying the $16.2m debt owed to it. BISX-listed Consolidated Water, in its third quarter results filing with the US Securities & Exchange Commission (SEC), revealed that nearly threequarters of that sum - some $11.988m - was “delinquent” or more than 90 days’ owing at September 30, 2019. It repeated previous warnings that the stateowned water utility’s inability to make full and timely payments could result in a liquidity crunch for its Bahamian subsidiary, which would require the Nasdaq-listed parent and other shareholders to inject additional funding. Provisions, and ending recognition of revenues from its local water supply deals, remain other potential consequences, and the cash-strapped Water & Sewerage’s problems in paying its bills as they become due is still flagged as a “risk factor” in Consolidated Water’s financial results. Tribune Business’s records show that the sums owed to Consolidated Water are rising once again. The balance due had dropped to $12.7m at endJune 2019, meaning that it has increased by $3.5m or 27.6 percent over the three months to end-September 2019, with the proportion that is delinquent increasing from 68 percent to 74 percent. “Consolidated Water (Bahamas) accounts receivable balances due from the

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N insolvent Bahamas-based investment advisor has been placed in Supreme Court-supervised liquidation due to its remaining cash balances covering less than 25 percent of its $1m-plus liabilities. Ed Rahming, the newlyappointed liquidator for Pacifico Global Advisors, revealed that the Old Fort Bay-based firm is “unable to pay its debts” given that its last unaudited financials show it possessed just $244,073 in liquid assets. Justice Ian Winder approved the Supreme Court-supervised winding up on November 8, 2019, after the Intelisys managing director and his attorney, Simone Morgan-Gomez of Callenders & Co, warned

• Old Fort Bay company ‘unable to pay its debt’ • Threat of client legal action made wind-up ‘urgent’ • Lease termination sparks $111k row with Mosko

ED RAHMING that such a move was urgent given the threat of legal action from Pacifico’s aggrieved clients. The securities investment adviser’s failure thus represents another potential black eye for The Bahamas as a financial services jurisdiction, given that Pacifico’s customers - most of whom will be high-net worth foreigners

and corporate entities - are unlikely to recover all assets and sums due to them even though the company was holding them on trust. Legal documents obtained by Tribune Business also reveal that Mr Rahming’s decision to terminate Pacifico’s lease at the Offices at Old Fort Bay has provoked a sharp reaction from its landlord, Mosko Realty, whose attorneys described the move as “unilateral and unlawful”. Mr Rahming, though, said the insolvent firm simply could not afford to see out the remaining 11 months of its lease agreement given that this would cost its creditors $111,000 plus a further $3,000 per month on

common area maintenance (CAM) costs. The Bahamian accountant, who was co-liquidator for Baha Mar, disclosed in an affidavit to the Supreme Court that Pacifico’s troubles first emerged when it wrote to the Securities Commission on September 20, 2019, to inform the regulator its shareholders and directors had decided to immediately wind-up the business. Arturo Klein, its chief executive, referring to a September 16 meeting between Pacifico’s chief operating officer, Kareem Kikivarakis, and Christina Rolle, the Securities

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BPL’s $650m bond cost ‘hinges’ on credit rating By NEIL HARTNELL and YOURI KEMP Tribune Business Reporters THE cost of Bahamas Power & Light’s (BPL) $650m refinancing “hinges” on the credit rating it is seeking from international agencies, Tribune Business was told yesterday. Geoff Andrews, chairman of the special purpose vehicle (SPV) that will issue the bonds to restructure BPL’s legacy debt and liabilities, confirmed to Tribune Business that such an assessment was being sought to validate ability of the utility and its customers to repay the debt that will be

• ‘Very confident’ issue fully subscribed • Chairman predicts up to 50% bill reductions • Plans to introduce ‘rolling hedges’

GEOFF ANDREWS

owed to investors. He revealed that himself and Dr Donovan Moxey, BPL’s chairman, had met with the rating agencies the likes of Fitch, Moody’s and Standard & Poor’s (S&P) - last week in New York to make the case as to why the upcoming National Utility Investment Bond issue should receive an “investment grade” rating indicating that the borrower is sufficiently strong with

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Top official forecasting jobless rate over 13% By YOURI KEMP THE Ministry of Finance’s top official yesterday forecast that the national unemployment rate could surge back to over 13 percent next year due to the economy shrinking from Hurricane Dorian. Marlon Johnson, the acting financial secretary, gave the grim prediction as he told the annual Accountants’ Week conference that the estimated total loss inflicted by the category five storm is around $2.5bn - the same estimate provided recently by Central Bank governor, John Rolle. The swift return to double-digit unemployment figures, with the national rate having dropped to 9.5 percent in the last Labour Force Survey from May 2019, is a blow to Bahamian

• Would drive unemployment back over 30,000 • Financial secretary reaffirms $2.5bn Dorian blow • Govt to keep recurrent spending at 20% of GDP

MARLON JOHNSON society but not surprising given that all economic activity in Abaco has ceased while Freeport and Grand Bahama are still recovering. Using data from that last

Department of Statistics survey, which placed the Bahamian workforce at 237,525, a 3.5 percentage point jump in the unemployment rate would take the total number of jobless to 30,878 - an increase of 8,313 upon the May 2019 numbers. Abaco and Grand Bahama had total labour forces of 14,620 and 32,825, respectively, preDorian based on the Labour Force Survey. Mr Johnson, meanwhile, echoed the revised International Monetary Fund (IMF) growth forecast for The Bahamas by projecting that GDP expansion

for 2019 will be halved from near two percent to one percent (the IMF forecast is from 1.8 percent to 0.9 percent). He also projected a contraction in the economy for 2020, with an expected pick up in 2021led by reconstruction activities in Abaco. Reiterating that the fundamentals of the government’s fiscal consolidation strategy remain intact and will post-Dorian, Mr Johnson reaffirmed that the government is looking to borrow close to $500m to plug the deficit gap created by the hurricane. He said: “What we will

have to borrow, to put it in stark terms, is the difference between what we brought to Parliament and have gotten, and what we have gotten and where believe the deficit will end up. “We anticipated that the original deficit projection was at $137m, and that deficit will [now] shoot up over $500m. The only two ways the government can raise revenue is to tax and another is to borrow. The government said that instead of raising taxes it has decided to borrow to meet the debt.” Mr Johnson confirmed the government is looking at a variety of financing sources, including the Inter-American Development Bank (IDB) and domestic commercial

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BOAT SHOW EXCLUSIVELY MARKETS THE BAHAMAS THE Bahamas was exclusively promoted by organisers of the 60th Fort Lauderdale International Boat Show (FLIBS) in a bid to aid this nation’s recovery from Hurricane Dorian. Dionisio D’Aguilar, minister of tourism and aviation, attended an event that was branded FLIBS-4-Bahamas (#FLIBS4Bahamas) by its organisers, the United States Boat Shows at Informa Markets and the Marine Industries Association of South Florida. They selected The Bahamas as the exclusively featured vacation destination for a show that ran from October 30 through to November 3, 2019. They also organised several fundraising initiatives, where proceeds were earmarked for aid to residents in Abaco impacted by Hurricane Dorian. “We feel it is our duty and a privilege to support our friends and neighbours, and we are committed to Grand Bahama and the Abacos’

full recovery,” said Andrew Doole, president of US Boat Shows at Informa Markets. “In addition to helping raise funds, we endeavour to get the word out that The Bahamas is still open for tourism and business, as there are beautiful and pristine areas not affected and tourism is their number one industry.” The opening ceremony for the world’s largest in-water boat show was conducted in conjunction with The Bahamas’ Miami consul general, Linda Mackey, to symbolise the partnership between the organisers, The Bahamas and Florida. Junkanoo Gawds, a Bahamian group based in Florida, entertained showgoers. Mr D’Aguilar met with the international media and conducted one-on-one interviews with reporters from WSVN Channel 7, WPLG Channel 10, Boating Magazine and N&J Yachting, reinforcing the message that “14 of The Bahamas’ 16 islands are open for business and that the best way to help

DIONISIO D’AGUILAR, minister of tourism, makes his rounds during the boat show.

the people of The Bahamas and its economy is to visit The Bahamas”. He also met with current and potential investors and super yacht owners, plus charter operators and brokers interested in or conducting business in The Bahamas, including Bradford Marine, National Marine Suppliers, United States Super Yacht Association and International Yacht Brokers Association. Among the Bahamian vendors at this year’s show were Bahamasair, Kalik, Bahamas

Maritime, Bahamas National Trust, Palm Cay Marina, Hurricane Hole Marina, Flying Fish Marina, Bay Street Marina, Romora Bay Resort & Marina, Staniel Cay Marina, Cape Eleuthera Resort, Tropic Ocean Air, Valentine’s Resort, The Pointe, the Grand Bahama Island Tourism Board and the Association of Bahamas Marinas. It is estimated that more than 110,000 persons and 1,200 exhibitors from 52 countries attended this year’s Fort Lauderdale International Boat Show.

MINISTER HAILS GB Water Corp supplier fears TOURISM RECOVERY Dorian blow on $16.2m owing FROM PAGE ONE

DIONISIO D’AGUILAR A CABINET minister has hailed the pace at which Grand Bahama’s tourism industry is recovering from Hurricane Dorian as “a testament to the resilience of the Bahamian people”. Dionisio D’Aguilar, minister of tourism and aviation, told the ministry’s recent church service that international flights into Grand Bahama are due to resume by Friday this week even though this newspaper’s onground contacts yesterday expressed scepticism this will occur. “Grand Bahama is already rebounding,’” Mr D’Aguilar said. “The major resorts and attractions are open, ferry service from South Florida is in full operation, and international flights will resume by November 15. The speed at which Grand Bahama island is recovering is truly a testament to the resilience of our country and the Bahamian people.” Magnus Alnebeck, the Pelican Bay’s general manager, previously told Tribune Business that American

Airlines had cancelled all flights and bookings until December 18 for its Miami to Freeport route - the main international connection for the island. Mr D’Aguilar, meanwhile, the Ministry of Tourism & Aviation’s marketing team is working to increase the visibility of The Bahamas in the international travel marketplace. “You’ve no doubt seen the creatives of our dynamic, visually appealing multiphase Bahamas campaign; our ‘14 Islands Welcome You’,” he said. Mr D’Aguilar added that research by ForwardKeys, a travel analytics firm, predicts the Bahamian tourism industry will take less time to recover from Hurricane Dorian than other Caribbean destinations did from previous storms. The initial rebound in post-hurricane visitor arrivals has been stronger than elsewhere in the region, with The Bahamas reaching 80 percent of prehurricane arrivals just one month after Dorian.

Water and Sewerage Corporation of The Bahamas amounted to $16.2m as of September 30, 2019, and $17.6m as of December 31, 2018,” Consolidated Water said in its 10-Q filing with the SEC. “Approximately 74 percent of the September 30, 2019, accounts receivable balance was delinquent as of that date. The delay in collecting these accounts receivable has adversely impacted the liquidity of this subsidiary.” The company, which supplies virtually all of the Water and Sewerage Corporation’s New Providence consumers with water from its Blue Hills and Windsor reverse osmosis plants, added: “Historically, Consolidated Water (Bahamas) has experienced delays in collecting its accounts receivable from the Water and Sewerage Corporation. “When these delays occur, we hold discussions and meetings with representatives of the Water and

Sewerage Corporation and The Bahamas government, and as a result, payment schedules are developed for Water and Sewerage Corporation’s delinquent accounts receivable. All previous delinquent accounts receivable from the Water and Sewerage Corporation were eventually paid in full. “Based upon this payment history, Consolidated Water (Bahamas) has never been required to provide an allowance for doubtful accounts for any of its accounts receivable, despite the periodic accumulation of significant delinquent balances. As of September 30, 2019, we have not provided an allowance for Consolidated Water (Bahamas) accounts receivable from the Water and Sewerage Corporation.” Yet Consolidated Water acknowledged that this situation may have changed in recent months due to the devastating blow inflicted upon Abaco and Grand Bahama by Hurricane Dorian, and the huge

financial demands imposed upon the Government to finance reconstruction worth several hundred million dollars. “We believe the delays we have experienced in collecting Consolidated Water (Bahamas) receivables have been exacerbated by the significant impact of Hurricane Dorian, which devastated the northern Bahamas in September 2019, Consolidated Water added. “If Consolidated Water (Bahamas) continues to be unable to collect a significant portion of its delinquent accounts receivable, one or more of the following events may occur. Consolidated Water (Bahamas) may not have sufficient liquidity to meet its obligations without new funding from its shareholders. “We may be required to cease the recognition of revenue on Consolidated Water (Bahamas) water supply agreements with the Water and Sewerage Corporation, and (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.” Still, Consolidated Water said its overall accounts receivable balance had decreased by $1.3m for the first nine months of 2019 due to reducing the $17.6m sum owed to it at year-end 2018. It added that reduced gross profits in its bulk water operations were attributed partially to depreciation of $222,000 and $638,000 for the September quarter and first nine months, respectively, which has resulted from the refurbishment of its Windsor plant. Rick McTaggart, Consolidated Water’s chief executive, yesterday told financial analysts via a conference call that its Nassau-based Bahamian operations had not been impacted by Dorian. He said: “Our business is running smoothly there and there have been no issues.”

Local insurers in $85m Dorian loss FROM PAGE ONE were passed in 2018. It will be adding an “operational risk charge” in compliance with the International Association of Insurance Supervisors’ ICP-17 guidelines, while for general

insurers the regulator will be doing a second round of quantitative impact studies before year-end. It expects full implementation of riskbased capital standards before the end of 2021. Responding to criticisms that foreign adjusters were

being let in without work permits and proper Immigration clearance vie letters of no-objections to conduct Dorian assessments, and disadvantaging local public adjusters, Ms Bodie said The Bahamas does not have enough professionals in this

field to meet the tremendous demand post-Dorian. She added that there was not sufficient time to have full consultations with the industry to deal with potential conflicts arising from foreign adjusters coming in and displacing domestic public adjusters.

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Wednesday, November 13, 2019, PAGE 3

NIB UPGRADES HAILED AS ‘GIANT STEP FORWARD’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Chamber of Commerce’s chief executive yesterday hailed the National Insurance Board’s (NIB) new employer portal as “a giant step forward that could not be better timed”. Jeffrey Beckles, speaking after NIB presented its new initiative to the private sector at a breakfast meeting, told Tribune Business that it “is probably one of the most innovative announcements we’ve seen in a long time”. Noting that the business community had been “crying” for developments that improved the “the ease of doing business”, he said NIB’s transition from a manual, paper-based contribution system to an online process should create “much greater efficiency all around” for individual companies when it comes to managing and making payments. NIB’s Employer’s SelfService (ESS) portal is an Internet-based solution designed so that Bahamian employers can manage

JEFFREY BECKLES their contribution payments and compliance in a manner that eliminates bureaucracy and red tape, and Mr Beckles described its presentation to Chamber members as akin to “showing us the future”. Some 41 firms were originally involved in the portal’s test phase, and the Chamber chief yesterday said “that number went up by 25 to 30 companies” following the presentation given by Dr Nicola VirgillRolle, NIB’s director, and her team. Pledging the private sector’s backing for the initiative, Mr Beckles said: “In the coming weeks we want to get as many companies involved with the beta

testing phase as possible so they can provide feedback. “It was probably one of the most innovative announcements we’ve seen in a long time. We’ve been crying for so many different initiatives across the landscape, it was almost like showing us the future. It was very encouraging, and even more encouraging to see the number of businesses sign up to participate in bets testing with a view to giving feedback.” The portal is a website where Bahamian employers can log-on from anywhere, and at any time, to manage their NIB accounts. They will be able to submit the “c10” contribution forms; make contribution payments using a debit/credit card (Visa or Mastercard only); and manage their employee register. NIB has touted the reforms as digitising and simplifying the process of submitting c10s and making contribution payments. It added that this will eliminate long lines and unnecessary trips to NIB for employers, while aiding the social security system by eliminating contribution

backlogs since employers can upload information directly into the system. Manual data entry by NIB personnel will also cease, with the portal placing employers in control and simplifying the process. “Our goal is to eliminate contribution backlogs, which is expected to result in a higher level of compliance in the future,” NIB said earlier. “Contributions are at the heart of NIB’s operations, and are used to accurately calculate benefits and determine claim eligibility. In May 2018, the board commenced the ‘v3’ stabilisation project. Since then, some 260,000 c10s was placed in the backlog processing system. “These represent backlogs from April 2016 to October 31, 2018, of which some 245,000 have been digitised and about 188,000 of these have been posted to employer and employee accounts. With the implementation of a special initiative geared toward reducing the accumulation of excess contribution forms, this number was significantly reduced.”

The NIB initiative links directly to the government’s goal of digitising most of the services provided by the public sector to the Bahamian people, along with its objective to improve the “ease of doing business” in The Bahamas. “It’s going to become the norm now as we seek to embrace technology; not only in the public sector but the private sector,” Mr Beckles said yesterday of NIB’s initiative. “That narrative about embracing technology is going to become the norm in this space. “We tip our hat to it, and are going to support initiatives that improve our ease of doing business domestically, and anything that allows the business environment to thrive.... these are things we’ve got to support. It’s a giant step forward. It is going to be a work in progress, but we’re happy to see the effort being made.” Mr Beckles said increased participation by businesses in the beta testing will provide the necessary information that NIB needs to refine the portal and ensure

that it operates with maximum efficiency once it goes fully live. “This is something the business community has been calling for, and now it is here we embrace it, engage with it,” he added. “It allows for greater range at NIB in terms of managing contributions and tracking changes, like employees changing jobs. All that historical data will be there. “This is going to be the norm now. Customs fully rolled-out its Electronic Single Window (ESW) the other day, Road Traffic has been digitising for some time now. This is another step in that direction and the timing couldn’t be better, particularly at a time when businesses are finding it very difficult, challenging and time consuming with all the forms. It’s now technology-based, so it allows for much greater efficiency all around.” Mr Beckles said NIB’s portal roll-out also coincides with the National Digitisation Committee’s launch of the campaign to transform, and digitise, both the private and public sectors.

BAHAMAS’ DIGITAL ‘DARE’ REDRAFTED FOR FRESH LOOK By YOURI KEMP

LEGISLATION to regulate the financial technology (Fintech) and cryptocurrency space is being redrafted and will be released for a second consultation round before year-end, it was revealed yesterday. Christina Rolle, pictured, the Securities Commission’s executive director, told the Accountants’ Week conference that the Digital Assets and Registered Exchanges (DARE) Bill 2019 was being reworked based on industry feedback after the first version was released earlier this year. The so-called DARE Bill 2019, an acronym of its first letters, is designed to protect the integrity and reputation of The Bahamas’ financial services industry as this nation seeks to make inroads into the potential growth opportunities provided by the fast-growing digital economy. The government also views fintech (financial technology) and crypto/digital assets as a key element in its strategy to reposition the financial services sector, and re-establish a competitive advantage, while also linking to its Grand Bahama technology hub ambitions.

Ms Rolle, meanwhile, said a busy year of legislative reform for the Securities Commission will soon be complete, with several initiatives pending further consultation and feedback from the international community. She added that the capital markets and investment funds regulator had hired the KPMG accounting firm to assist with creating a cloud-based platform that will aid its risk-based framework assessments. The platform was rolled out to all registrants under the Securities Industry Act in September to help companies link with the Securities Commission’s internal risk assessment tools. Ms Rolle said the

Financial and Corporate Services Providers Bill, and the general regulation and fees rules, were reissued for consultation this year. Both had been amended to reflect comments received from the industry regarding International Business Companies (IBCs) offering financial and corporate services in The Bahamas. The drafts were also updated to facilitate services such as financial leasing, financial advisory and consultancy services, financial intermediation services, trading in commodities and also digital custody services and wallet services for digital assets. Securities Commission licensees under the Financial and Corporate Service Providers Act and Investment Funds Act will now also be required to access the platform and input their data, having been formally notified of this requirement yesterday. Ms Rolle added that Contract for Difference (CFD) rules are being finalised, while the Securities Commission is also waiting on comments and feedback from the International Organisation of Securities Commissions (IOSCO).

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Insolvent adviser meets just 25% of $1m liability FROM PAGE ONE Commission’s executive director, said in a letter: “The directors and shareholders of Pacifico Global Advisors (PGA) have decided that it would be in the best interest of PGA and its clients to be woundup immediately. “This decision was largely driven by diminishing revenue streams and increasing challenges of doing business in the jurisdiction. The only remaining objective of the company is to return assets held in custody to its clients.” Mr Klein, who resigned with immediate effect, said he was “relinquishing all operational control” and that Pacifico staff would be paid their salaries for September 2019. The Securities Commission’s Ms Rolle, in her October 3 reply, approved the voluntary winding-up provided that it became a Supreme Court-supervised liquidation within 14 days. “On October 3, 2019, my team and I visited the company [Pacifico] and were provided with information including unaudited financial statements showing the balance sheet as at August 31, 2019, a list of payables as at September 30, 2019,

and a statement of assets of the company as at September 30, 2019,” Mr Rahming said in his affidavit. “Based on our review of this information it was apparent that the company is insolvent. The company is unable to pay its debts as they fall due, which meets the definition of insolvency as defined [by] the Act. “The company’s unaudited balance sheet as at August 30, 2019, showed cash of $244,073 and accrued liabilities of $1.015m. The staff members of the company also advised that there was insufficient cash to pay the company’s current liabilities.” Mr Rahming’s attorney, Ms Morgan-Gomez, then petitioned the Supreme Court to rapidly approve the court-supervised nature of Pacifico’s winding-up by filing a “Certificate of Urgency” on October 25, 2019. “I have been informed by the liquidator that various creditors of the company are threatening litigation against the company in attempts to position themselves and their claims ahead of other creditors in the same class,” she warned. “Once the company is put under the supervision such persons would be estopped

NOTICE NOTICE is hereby given that BERGOMA TIDOR of Strachan’s Alley, Nassau, 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 13th day of November, 2019 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

from filing litigation against the company based on section 193 of the Companies (Winding Up Amendment) Act 2011. It would also be a savings for the company if the voluntary liquidator did not have to apply to stay proceedings that may be commenced between the filing date of the petition and the hearing of the petition.” Justice Winder duly granted this request, but Mr Rahming’s efforts to extract Pacifico from its existing lease agreement ran into opposition from the Bahamian realty firm that owns its offices at No.1 Pineapple House on Western Road. “The lease agreement is for a term of two years beginning October 1, 2018,” Mr Rahming alleged. “The lease required a security payment of $27,000 plus VAT (totalling $30,240), monthly rent payments of $9,000 plus VAT ($10,080) and quarterly maintenance fees of $8,000 to $12,000 inclusive of VAT and prorated per rentable square foot (approximately $3,000 per month)/” While Pacifico’s payments were up-to-date through to end-September 2019, the Bahamian accountant informed Mosko Realty, as owner and landlord, on October 25, 2019, that

the company would be vacating the premises and terminating the lease by that month’s end. “The landlord’s attorneys are Maillis & Maillis, who communicated that the landlord is demanding payment of the equivalent of the rent for the unexpired residue of the lease term 11 months under the lease agreement,” Mr Rahming alleged. “This amount is approximately $111,000. While it is my intention to ensure that the legislation is complied with as regards the landlord’s claim at the appropriate time, and I note that the landlord is holding the last month’s rent and security deposit of $18,000, I do not believe that this liquidation can afford to pay monies for the unexpired residue of the lease term. “I also noted that the monthly common area maintenance fees (CAMS), which Pacifico has to pay for the premises, are approximately $3,000 and does not include electricity and cable. Pacifico cannot afford to pay these monies for the balance of the lease. I expect all outstanding CAMS due as to October 31, 2019, to be deducted from the security balance held by the landlord.”

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PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, DONELEE KING of #9 Chipps End in the Eastern District of the Island of New Providence, The Bahamas, intend to change my name to DONNALEE ELOISE KING-BURROWS. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O. Box N-742, Nassau, N.P., Bahamas no later than thirty (30) days after the date of publication of this notice.

Mr Rahming proceeded with the lease termination at end-October to save these costs, and also obtained Supreme Court approval to immediately sell Pacifico’s office equipment and furnitures - assets he valued ay between $10,000-$15,000 - rather than incur $1,000 per month in storage fees. Alexander Maillis II, the attorney representing Mosko Realty, warned Mr Rahming that his client would not agree to a lease termination unless all outstanding utilities and maintenance charges were paid, and a sum equivalent to 11 months’ rent settled. “We can identify no provision in the lease which empowers the tenant to terminate in the manner being proposed by you,” Mr Maillis wrote. “In the circumstances, it is a matter for the discretion of the landlord as to whether and, if so, upon what terms to allow your company to ‘terminate’ the lease. “Your unilateral and unlawful attempt to terminate now exposes the company to the liability to pay the rent for the unexpired residue of the lease - a period of 11 months. There are also outstanding (and continuing) utilities and maintenance fees, all covered by the lease, which are the responsibility of the tenant. Mr Klein, Pacifico’s chief executive who is said to be based in Switzerland, was alleged by Mr Rahming to own 100 percent of Pacifico despite there being two shareholders. While he holds a 25 percent equity stake directly in his own name, the 75 percent balance belongs to an entity called Valora Investments,

which was alleged to be holding its interest on Mr Klein’s behalf. Thomas Coughlin, who resigned as a Pacifico director on May 27, 2019, was supposed to be replaced by Alessandra Irasema Calcagno Jaramillo, but her appointment was never approved by the Securities Commission before the winding-up. Other Pacifico staff included Vanasha Nadia Shearer-Butler, who was the firm’s compliance officer and money laundering reporting officer, plus Daren Charles Seymour, who was listed as a trading and advisory representative, and discretionary management representative. Welwyn Ltd, Pacifico’s corporate secretary, was a nominee company “managed and controlled” by the corporate services arm of the Lennox Paton law firm. And Valora’s signatory appears to have been Peter Fletcher of the Holowesko, Pyfrom, Fletcher law firm. There is nothing to suggest any of those persons or entities named have done anything wrong in relation to Pacifico. Pacifico Global Advisors is seemingly the latest small broker/dealer or investment advisory firm to collapse and be placed under court-supervised liquidation. Tribune Business has extensively reported over the past decade on the failures of companies such as Caledonia Corporate Management, Owen Bethel’s Montaque Capital Partners, and Tillerman Securities, plus the decision by Gibraltar Global Securities to cease operating under pressure from legal actions and probes by US and Canadian regulators. All these companies, as well as Pacifico, appear to share common characteristics in that they were all small, independent firms without a large parent network to provide distribution access to clients. And all seem to have been controlled by a single, or small group of like-minded, shareholders and managers.

FINAL NOTICE Pursuant to the provisions of section 138 (8) of the International Business Companies Act 2000, notice is hereby given that:CATSO Investments Limited has been dissolved and struck off the Register pursuant to Certificate of Dissolution issued by the Registrar General on 25th October, 2019.

Kim D. Thompson Liquidator

LEGAL NOTICE

NOTICE Pursuant to the provisions of Section 138 (4) of the International Business Companies Act, (as amended) NOTICE is hereby given that Buenos Aires Ltd. is in dissolution and the date of commencement of the dissolution is the 8th November, 2019. Lynn Kelly and Tonya Sweeting LIQUIDATORS c/o EFG Bank & Trust (Bahamas) Ltd Goodman’s Bay Corporate Centre 3rd Floor, West Bay Street and Sea View Drive P.O. Box CB 10956 Nassau, Bahamas

THE TRIBUNE

Wednesday, November 13, 2019, PAGE 5

BPL’s $650m bond cost ‘hinges’ on credit rating

FROM PAGE ONE

process to get people to understand that while Dorian did a lot of damage in Grand Bahama and Abaco, the rest of The Bahamas is in pretty good shape and trying to move forward. BPL doesn’t have any operations in Grand Bahama. Of course, they were heavily impacted in Abaco.” Obtaining a strong, “investment grade” type rating for the bond issue is critical for Bahamian households and businesses as this will determine the price (interest rate) that will be attached to these debt securities. Much like how the rating agencies assess The Bahamas’ sovereign creditworthiness, an ‘investment grade’ rating indicates confidence in a borrower’s ability to repay its debt and ensures access to lower-cost debt capital, whereas a socalled “junk” rating - like this nation has now from S&P - will result in having to pay investors higher interest rates to compensate them for the increased risk. This an ‘investment grade’ rating for the BPL bond will result in lower-priced debt that is issued to investors. This, in turn, means that the amount BPL’s Bahamian customers will have to pay to service the debt is less as the bond servicing fees attached to their bills will be lower. However, if the BPL bond can only obtain a ‘junk’ rating this will increase the price demanded by investors, meaning Bahamian

BPL Headquarters

DR DONOVAN MOXEY households and businesses will have to pay higher bond servicing fees. “It hinges on the rating we get,” Mr Andrews confirmed to Tribune Business of the bond’s pricing. His comments also indicate how national developments and events, such as Dorian, can impact credit ratings. Something similar happened to the Nassau

Top official forecasting jobless rate over 13% FROM PAGE ONE banks, to make up the shortfall. He added that the government is aiming to keep recurrent expenditure at 20 percent of GDP without increasing taxes. The Ministry of Finance official said the deficit may grow to more than $650m, but that number will “modulate” as the government “tweaks” its numbers in light of the forthcoming economic impact assessments that have been done post-Dorian. Dr Hubert Minnis said in an address to Parliament that the government is waiting on the impact

assessments conducted by the IDB and United Nations (UN) Economic Commission for Latin America and the Caribbean (ECLAC). Despite the $200m “wipe out” of revenues and unplanned expenditure to deal with Dorian, Mr Johnson said electricity restoration costs for Abaco are estimated at $80m while repairing the Water & Sewerage Corporation’s infrastructure is pegged at $15m, inclusive of expenditures such as shipping persons and material back and forth from Abaco. Mr Johnson said there will be a “radical” increase in spending over the next few years.

Request For Proposals EXTERNAL AUDIT SERVICES YEARS ENDING 30 JUNE 2016, 2017, 2018, 2019 AND 2020 This request for proposal invites proposal from suitably qualified firms to conduct the annual audit of the financial statement of the Straw Market Authority for the years ending 30 June 2016, 2017, 2018, 2019, and 2020. Prospective firms may obtain and review the prior Audited Financial Statements of the Straw Market Authority prior to submitting their proposals. Proposals are to be submitted in a sealed envelope on or before Friday 30 November 2019 to the following address: PROPOSAL FOR AUDIT SERVICES Managing Director Straw Market Authority Woods Rodgers Wharf New Providence Bahamas

Airport Development Company (NAD) in early when it lost the “investment grade” rating with Fitch for its $409.5m borrowings because S&P downgraded this nation’s sovereign debt. Some observers are also likely to query whether the National Utility Investment Bond will attract a strong credit rating given that BPL has yet to implement the necessary reforms to ensure a financial turnaround, but Mr Andrews yesterday voiced optimism that the $650m will be fully subscribed. Confirming that the rating is being sought before potential investors are pitched prior to year-end 2019, the former Deloitte & Touche (Bahamas) accountant and partner, who also chairs the Small Business Development Centre

(SBDC) initiative, said: “At this time we are still confident we will be able to get it fully subscribed. “We are definitely making progress. Clearly, Dorian has set us back a little bit in terms of the timing of it, but we’ve been able to make some real good steps in the last couple of weeks and meeting with the rating agencies was an important part of the process.” Mr Andrews said Bahamians were too focused on the extra bond servicing charge and missing the ‘bigger picture’ that was yesterday outlined by Dr Moxey, who predicted that the combination of BPL’s new 132 megawatt (MW) engines and Shell’s proposed multi-fuel power plant will ultimately lower electricity costs by 50 percent compared to present levels.

Confirming that it was “certainly the plan” that these savings far surpass the debt servicing costs imposed on consumers, Mr Andrews said: “It’s come off as if this was just going to be another fee added to the cost of electricity bills when it’s much more important to come up with a long-term stable supply of electricity at stable, predictable costs. “One of the participants in the seminar said the cost of electricity has been one of the biggest to potential investors in this country for 20 years....As Donovan said in his presentation this is the first time anybody has taken a long-term view to fix the problem instead of putting a band-aid on something that has existed for 20 years.” Dr Moxey, too, was unable to specify how much consumers will pay to service the new $650m debt. He did, though, tell the Accountants Week conference that BPL’s new Wartsila engines could produce a 30 percent reduction in electricity bills by enabling the utility to switch its fuel from more expensive “crude oil” to “heavy oil”. And the BPL chairman added that as Shell’s proposed multi-fuel plant comes on stream and introduces liquefied natural gas (LNG) to the energy mix, consumer bills will be cut by a further 30 percent- making for a 50 percent reduction in total. Dr Moxey said the bond issue will enable to smooth electricity bills for consumers for at least five years, and perhaps even longer, through “rolling hedges” to further keep rates at a flat, low level.

So-called rolling hedges mitigates against market fluctuations caused by unexpected rises in fuel prices, which lead to big swings in customer electricity bills. “What we want to do is create ‘price certainty’ and ‘price stability’,” Dr Moxey added, promising to get rid of BPL’s reliance on Aggreko’s rental generation within 12 to 18 months. Turning to Abaco restoration, he said power has been restored as far as Crown Haven, and from Wilson City down to Sandy Point. The only part of the island not online is Marsh Harbour and some of the surrounding cays. Dr Moxey added: “The total cost to restore and repair Abaco power is estimated to be between $80m and $90m, with about $50m of that just to repair the transmission and distribution system alone.” He said BPL is also looking at providing “microgrids” for locations such as Elbow Cay. Revealing that BPL ultimately wants to exit power generation entirely, Dr Moxey said it will mandate that all generation companies, including Shell North America, will have to use the fuel supply of its choice. The BPL chairman also blamed the utility’s struggles on the 2004 cut to its ‘base’ tariff, which generates its profits and cash flow, adding that this had cost it some $180m over the years. “Previous BPL boards instituted a rate-cut without a rate study that caused the company an average of $15m a year in losses from 2005 up to 2018, causing BPL to incur a $321m debt,” he said.

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PAGE 6, Wednesday, November 13, 2019

THE TRIBUNE

Clinton: UK voters must see Russian influence report LONDON Associated Press HILLARY Clinton says she’s “dumbfounded” that the UK government has failed to release a report on Russian influence in British politics before the country holds a national election next month. The former US presidential candidate told British media that the public needs to know what is in the report by Parliament’s Intelligence and Security Committee before voters go to the polls on Dec 12. British Prime Minister Boris Johnson’s government has said it needs more time to review the security implications of the report before it is released. Critics, however, allege the report is being withheld until after the election because it is embarrassing to Johnson’s Conservative Party, which is trying to win a majority

and push through Johnson’s Brexit plan to take Britain out of the European Union. “I’m dumbfounded that this government won’t release the report ... because every person who votes in this country deserves to see that report before your election happens,” Clinton told the BBC yesterday. “There is no doubt ... that Russia in particular is determined to try to shape the politics of Western democracies, not to our benefit but to theirs.” Former Special Counsel Robert Mueller’s investigation into the 2016 US presidential election found that Russia interfered in the vote in a “sweeping and systemic” fashion. US President Donald Trump, who won that vote, has dismissed the Mueller report’s conclusions, but the investigation has put Russia into the crosshairs of a debate on the integrity of elections worldwide. Clinton also spoke about

FORMER US Secretary of State Hillary Clinton speaks at Georgetown Law’s second annual Ruth Bader Ginsburg Lecture, in Washington. Clinton told the BBC yesterday that she’s “dumbfounded” the UK government has failed to release a report on Russian influence in British politics as the country prepares for national elections on Dec 12. Photo: Jacquelyn Martin/AP the British report with the Guardian newspaper as she promoted “The Book of Gutsy Women”, written with her daughter, Chelsea. The former US Secretary of State said she wished she had been more “gutsy” in exposing Russian efforts to influence the 2016 US presidential election. “I am, as a great admirer of Britain, concerned, because I can’t make sense of what is happening,” Clinton told the Guardian. “We have a president who admires dictators and takes their help and does all kinds of crazy stuff. So we need

you to be the sane member of this partnership going forward.” The Intelligence and Security Committee began its investigation following allegations of Russian interference both in the 2016 US election and the British referendum on the country’s EU membership earlier that year. The investigation began in November 2017, but the importance of the probe was highlighted in March 2018, when a former Russian spy and his daughter were poisoned with a chemical nerve agent in the cathedral city of Salisbury in southern England. Britain says Russian agents were behind the near-deadly poisonings, a charge that Russia denies. The intelligence committee sent its report to Johnson for review on Oct 17, saying it expected “to publish the report imminently”. Committee Chairman Dominic Grieve has criticised Johnson’s government for failing to release the document amid media reports it has already been cleared by British security services. Among those who gave evidence to the committee was Bill Browder, founder of Hermitage Capital Management. Browder worked in Russia until 2005 and has campaigned for sanctions against Russian President Vladimir Putin’s government since 2009, when his lawyer died in a Russian prison. He told The Associated Press that by failing to release the Russian influence report, Johnson has made it worse for himself by implying there is something to hide. “Nobody likes a coverup,” Browder said. Lawmakers from a range of parties, including Johnson’s Conservatives, urged the government earlier this month to publish the report during a debate in the

House of Commons. Foreign Office minister Christopher Pincher argued it was “not unusual” for such reviews to “take some time”, but others suggested the reasons are baldly political. The Sunday Times reported that nine Russian businesspeople who have donated money to the Conservatives are named in the report. The Russian report comes amid increasing concerns about the security of an election fought in an increasingly digital world. Britain’s election laws are woefully out of date, written more for a time when leaflets were pushed through mailboxes, not as Facebook and other social media giants publish political ads. Following an 18-month investigation into online privacy and the use of social media to spread disinformation, an parliamentary committee in February urged the British government to urgently approve new laws addressing internet campaign techniques, insisting that democracy itself was under threat. While the government agreed with many of the recommendations made by the Digital, Culture, Media and Sport Committee, it has done little other than circulate its own report for public comment. Former committee chairman Damian Collins said the government had planned to modernise Britain’s electoral laws at the latest by 2022, the original date for the next general election. But Johnson called an early election in response to the political turmoil caused by Britain’s pending departure from the EU, which is scheduled for Jan 31. So now Britain’s 46 million eligible voters will be choosing 650 lawmakers in the House of Commons in the Dec 12 vote. The election campaign

is already being fought online. The Labour Party announced yesterday that it had experienced a “sophisticated and large-scale cyberattack” on its digital platforms. The main opposition party says the attack did not succeed because of “robust security systems” and it had referred the matter to the National Cyber Security Centre. A source at the Centre told Britain’s Press Association that the denialof-service attack was relatively low-level with no evidence of “state-sponsored” activity. Such an attack aims to slow down access and cause websites to crash by flooding them with traffic. Labour leader Jeremy Corbyn, who was campaigning in Blackpool, still expressed dismay. “If this is a sign of things to come in this election, I feel very nervous about it all. Because a cyberattack against a political party in an election is suspicious, something one is very worried about,” he said. Earlier in the campaign, the Conservatives posted an altered video on Twitter and Facebook of a television interview with Keir Starmer, a senior Labour figure, that misleadingly showed him failing to answer a Brexit question when in reality, he did. The chairman of the Conservative Party called the doctored video a lighthearted satire, but it highlights the gray ethical area being exploited by the campaigns. Social media companies have faced global scrutiny worldwide following allegations that political consultant Cambridge Analytica used data from tens of millions of Facebook accounts to profile voters and help Trump’s 2016 election campaign.

THE TRIBUNE

Wednesday, November 13, 2019, PAGE 7

Google’s health care ambitions now involve patient data SAN FRANCISCO Associated Press GOOGLE announced a partnership with a large US health care system aimed at modernising its information system and providing new tools for doctors, in the tech giant’s latest foray into the health industry. Announcement of its arrangement with the Catholic health care system Ascension followed a Wall Street Journal report on Monday that Google had access to thousands of patient health records without doctors’ knowledge.

Both companies stressed that their deal is compliant with federal health-privacy law. Unlike most of the data Google collects on individuals, health data is strictly regulated by the federal government. Google is providing cloud computing services to Ascension, which operates health centres in 21 states, mostly across the South and Midwest. It is also testing the use of artificial intelligence to examine health records and find patterns that Google says might help doctors and other providers. Health care providers are

increasingly interested in using data to help manage care and keep patients healthy. That might mean relatively simple things like tracking whether someone refills a prescription or something more complex like spotting a worsening medical condition and addressing it before the patient winds up in the hospital. Health care systems are allowed to share patient information with business partners so long as the partners agree to safeguard the information and use it only in the way it was intended.

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PAGE 8, Wednesday, November 13, 2019

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Trump claims credit for economy, jobs in New York speech NEW YORK Associated Press DESPITE a slowing economy, President Donald Trump declared yesterday that the United States was enjoying a “boom the likes of which we have never seen before!” Trump told the Economic Club of New York that “we have delivered on our promises — and exceeded our expectations by a very wide margin”. His remarks were delivered to an audience of powerbrokers and affluent business leaders, but his political future may depend on whether voters in the Midwest and Sunbelt believe that he has fought for their own financial well-being. The president faces reelection next year in a relatively healthy economy, yet student debt, high medical costs and rising inequality have given Democrats seeking the presidency inroads to say that only a privileged few have genuinely benefited from the Trump era. “Our democracy has been hijacked by the rich and the powerful. They make it work for themselves, and they leave everyone else behind,” Massachusetts Sen Elizabeth Warren told a major Democratic Party fundraiser and dinner in Iowa earlier this month. Despite his congratulatory rhetoric, Trump has not fulfilled many of his

PRESIDENT Donald Trump addresses the Economic Club of New York yesterday in New York. Photo: Seth Wenig/AP grandiose promises for the economy. Growth in the most recent quarter slowed to an annualised 1.9% — a far cry from the gains of “4%, 5% and even 6%” that Trump said his 2017 tax cuts would make possible. The president has not been able to boost the US steel industry with tariffs, while coal has been supplanted as an energy source by natural gas. Unemployment is near a five-decade low of 3.6%, a point of pride for Trump. The job gains defied the forecasts of many government economists who anticipated less hiring due to an aging population. Yet the falling jobless rate is also a continuation of a trend that started during Barack Obama’s presidency as the economy has been expanding for more than a decade, the longest period of growth in US history. “The economy was growing before he took office,” Andy Green, managing

director of economic policy at the Center for American Progress, a liberal think tank. “It was creating jobs before he took office. It’s been creating fewer jobs since he took office. The stock market has gone gangbusters. What he has done is deliver for the corporate interests that put him in office.” The president took a combative tone at times, dubbing China a cheater on trade even as he seeks an initial settlement to calm an 18-month trade war that has hurt US manufacturing output as tracked by the Federal Reserve and industry groups. The administration has launched tariffs and threated additional import taxes, disrupting supply chains even as the overall US trade deficit has increased 15% during the Trump administration. “I will not say the word ‘cheated,’ but nobody has cheated better than China,” said Trump.

COMMONWEALTH BREWERY LIMITED

COMMONWEALTH BREWERY LIMITED

Management comments on Interim Consolidated Financial Statements (Unaudited)

Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income (Unaudited)

Nine months ended September 30, 2019

For the nine months ended September 30, 2019, with corresponding figures for the nine months ended September 30, 2018 (Expressed in Bahamian dollars)

Financial Performance The net revenue increase for the third quarter out-paced declines in the first half of the year and ended slightly behind the comparative period in 2018 by 0.5% despite operating interruptions due to hurricane Dorian. The third quarter 2019, yielded a continued positive trend in which net revenue grew 2.9% comparatively. Hurricane Dorian destroyed one of Commonwealth Brewery Limited’s eight retail outlets and Distribution Centre, in Freeport, as well as the Company’s three retail outlets and the Distribution Centre in Abaco. By the end of September, however, we had reorganized our route to market and resumed distribution on both islands. Operating expenses year to date September reduced by 0.9%, supported by a continued decline of 3.9% during the quarter, principally driven by the cost alignment measures reported on earlier in the year. Net Income for the year to September was $4,981,847, compared to $5,482,757 in 2018, reflecting the one-off restructuring costs, and stronger revenue performance since the second quarter 2019. Notably net profit for the three-month period ended September 2019, grew $1,684,583 from a loss position for the comparative period of 2018. Results this year are continually encouraging and as stated in the quarter two interim accounts, indicate that our cost realignment, infrastructural and work force improvements, together with our continued commercial focus, are producing the desired results. We are cautiously optimistic on our short-term outlook post-Dorian and will continue to adapted or strategy to enhance value to shareholders.

COMMONWEALTH BREWERY LIMITED

September 2019

Income: Revenue Excise Net revenue

$

Operating expenses: Raw materials, consumables and services Personnel costs Depreciation Amortisation Total operating expenses Other income/ (expense), net Results from operating activities Finance expenses

200,068

(510,141)

4,981,847

5,482,757

443,335

121,304

Basic and diluted earnings per share

$

0.15

0.18

Interim Consolidated Statement of Changes in Equity (Unaudited)

Balance at December 31, 2018

Share capital 150,000

Share premium 12,377,952

Contributed surplus 16,351,369

Revaluation surplus 12,473,768

Retained earnings 15,139,196

Total equity 56,492,285

Share based compensation Comprehensive income Balance at September 30, 2019

– – 150,000

– – 12,377,952

16,351,369

12,473,768

23,738 4,538,512 19,701,446

23,738 4,538,512 61,054,535

September 2019 December 2018

Assets

6,028,615 6,374,035 5,196,438 29,568,539 47,167,627

9,090,464 4,108,750 3,620,446 34,160,888 50,980,548

48,940,430 4,255,986 4,487,242 1,581,034 59,264,692 106,432,319

49,170,094 4,487,242 153,431 53,810,767 104,791,315

$

32,507,083 1,860,670 8,539,993 42,907,746

23,974,037 8,325,000 15,999,993 48,299,030

Non-current liabilities: Long-term lease liability Total liabilities

2,470,038 45,377,784

48,299,030

Equity: Share capital Share premium Contributed surplus Revaluation surplus Retained earnings Total equity

150,000 12,377,952 16,351,369 12,473,768 19,701,446 61,054,535

150,000 12,377,952 16,351,369 12,473,768 15,139,196 56,492,285

106,432,319

104,791,315

2

$

Liabilities and equity

$

COMMONWEALTH BREWERY LIMITED Consolidated Statement of Cash Flows (Unaudited)

For the nine months ended September 30 2019, with corresponding figures for the nine months ended September 30, 2018 (Expressed in Bahamian dollars)

Cash flows from operating activities $

$

COMMONWEALTH BREWERY LIMITED

Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income (Unaudited) For the three months ended September 30, 2019, 3 with corresponding figures for the three months ended September 30, 2018 (Expressed in Bahamian dollars) September 2019

Income: Revenue Excise Net revenue

65,166,533 15,977,642 1,969,669 21,731 83,135,575

5,361,453

For the nine months ended September 30, 2019 (Expressed in Bahamian dollars)

Total liabilities and equity

62,400,186 17,433,700 3,995,816 68,333 83,898,035

4,538,512

September 30, 2019, with corresponding figures for December 31, 2018 (Expressed in Bahamian dollars)

Current liabilities: Accounts payable and accrued expenses Short-term lease liability Dividends payable Loans and borrowings Total current liabilities

98,517,520 (9,389,047) 89,128,473

$

COMMONWEALTH BREWERY LIMITED

Non-current assets: Property, plant and equipment Right of use asset Goodwill Other intangible assets Total non-current assets Total assets

98,220,427 (9,540,613) 88,679,814

Total comprehensive income

Consolidated Statement of Financial Position (Unaudited)

Current assets: Cash and cash equivalents Trade receivables, net Prepaid expenses and other assets Inventories Total current assets

September 2018

$

Operating expenses: Raw materials, consumables and services Personnel costs Depreciation Amortisation Total operating expenses Other income/ (expense), net

30,997,816 (3,154,221) 27,843,595

30,043,634 (2,973,885) 27,069,749

19,042,510 5,468,759 1,397,600 19,465 25,928,334

21,210,969 5,220,274 571,838 (11,645) 26,991,436

(70,069)

Results from operating activities Finance expenses

September 2018

(35,517)

1,845,192

42,796

164,184

46,370

Total comprehensive income/ (loss)

$

1,681,008

(3,574)

Basic and diluted earnings per share

$

0.06

0.00

2019

2018

4,538,512

5,361,453

3,995,816 68,333 3,381 (7,360) 443,335 9,042,017

1,969,669 21,731 246,677 (34,100) 121,304 7,686,734

9,379,197

1,833,789

18,421,214

9,520,523

5

Net income Adjustments for: Depreciation Amortisation 6 Impairment loss recognized on trade receivables (Gain)/Loss on disposal of property, plant and equipment Finance expense Net cash from operation activities

$

Changes in non-cash working capital Net cash from operations before changes in working capital Cash flows from financing activities Interest paid Dividends paid Repayment of loans and borrowings Proceeds from loans and borrowings Net cash used in financing activities

(443,335) (8,325,000) (7,460,000) (16,228,335)

(136,603) (8,400,000) 1,530,301 (7,006,302)

(2,601,237) (1,495,936) (1,164,915)

(3,872,425) -

7,360 (5,254,728)

202,483 (3,669,942)

(3,061,849)

(1,155,721)

Cash flows from investing activities Additions to property, plant and equipment Additions to intangible assets Repayment of lease liabilities Proceeds from sale of property, plant and equipment Net cash used in investing activities Net increase/ (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year

$

9,090,464

2,617,430

6,028,615

1,461,709

1. Accounting Policies These interim financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”) for interim financial information. Accordingly, they do not include all of the information and footnotes7 required by IFRS for consolidated financial statements. In the opinion of management, these unaudited consolidated financial statements reflect all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the Company’s financial position and results of operations as at the end of and for the periods presented. All significant intercompany accounts and transactions have been eliminated from these unaudited consolidated financial statements.

THE TRIBUNE

Wednesday, November 13, 2019, PAGE 9

US stock indexes turn mixed after early rally loses momentum By ALEX VEIGA Associated Press STOCKS on Wall Street closed with modest gains yesterday after an early rally lost momentum toward the end of the day. The Nasdaq composite still finished with its second record high in three days, while the Dow Jones Industrial Average ended unchanged from the alltime high it set a day earlier. The S&P 500 crossed above the 3,100 level for the first time, placing the index on track for its own milestone finish, but the gains didn’t hold. Still, the benchmark index rebounded nearly all the way back from a loss on Monday that ended a three-day winning streak. “There was some excitement on breaking 3,100, that perhaps we could continue higher on the S&P,” said JJ Kinahan, chief market strategist at TD Ameritrade. “But we’ve had such an amazing two weeks that without any blockbuster news it was going to be difficult for us to continue higher.” President Donald Trump gave an update yesterday afternoon on trade negotiations with China, saying both sides are close to a “phase-one” deal. The markets didn’t have much of a reaction to the remarks, however. The S&P 500 rose 4.83 points, or 0.2%, to 3,091.84. The index, which set a record high on Friday, has notched gains the past five weeks in a row. The Dow Jones Industrial Average closed unchanged at 27,691.49. The Nasdaq gained 21.81, or 0.3%, to 8,486.09, a record. The Russell 2000 index of smaller companies added 0.35 points, or less than 0.1%, to 1,595.12. Stock indexes in Europe finished broadly higher. Momentum for the market has been mostly upward for more than five weeks as worries about the US-China trade war have eased, among other factors. Yesterday, President Trump gave markets more reason for optimism on trade during a midday speech at the Economic Club of New York. Trump said the two sides are “close”, and that a

“phase-one” deal on trade “could happen soon”. Trump’s latest update on trade followed conflicting signals from US and Chinese officials last week on whether the two sides have agreed to any tariff rollbacks as part of the tentative trade agreement they’re negotiating. Besides expectations for a stopgap deal on the trade war, stocks have jumped recently due to interestrate cuts by the Federal Reserve, data showing the economy is still growingly solidly and corporate earnings reports for the summer that weren’t as weak as expected. The rising confidence in markets has meant fewer buyers piling into the safety of gold, which dropped yesterday to its lowest price in more than three months. Treasury yields fell slightly after trading resumed following on Monday’s holiday in observance of Veterans Day. The yield on the ten-year Treasury note slipped to 1.92% from 1.93% late on Friday. It was below 1.50% in early September and has been rallying with confidence in the economy’s strength. Reports have shown that the job market is still growing, which should help households keep spending at a strong clip. Such spending makes up the bulk of the economy, and the expectation is that it can more than make up for the weakness in manufacturing that the trade war is causing. “That’s the next thing we look for,” Kinahan said, noting that Black Friday, traditionally one of the busiest shopping days of the year, is only a couple weeks away. “Expectations are really high for spending. So, does the consumer live up to it?” Health care, technology and communication services stocks led the gainers yesterday, outweighing losses in energy companies and elsewhere. Disney rose 1.3% on the day that its highly anticipated streaming video service, Disney Plus, launched. The service had some technical difficulties early in the morning, an indication that demand may have been higher than expected. Rockwell Automation

HUAWEI GIVING EMPLOYEES BONUS FOR COPING WITH US SANCTIONS BEIJING Associated Press HUAWEI is paying its employees bonuses totaling more than $285m as thanks for helping the Chinese tech giant cope with US sanctions that threaten its smartphone and other businesses. Huawei scrambled to remove US components from its products following curbs announced in May on access to American technology after Washington accused the company of being a security risk. It has unveiled a smartphone operating system it says can replace Google’s Android if necessary. Some 90,000 employees will share a two billion yuan ($285m) bonus, or about 22,000 yuan ($3,100) each, according to a company announcement circulated yesterday on social media. In addition, Huawei’s full 180,000-member workforce will receive an additional month’s salary. Huawei Technologies Ltd confirmed in a written statement the document was genuine but said it had no comment. The bonuses are to “thank you for your efforts” since the announcement of US sanctions, the announcement said. Huawei, China’s first global tech brand, is the biggest global maker of network gear for phone and

internet companies and the number two smartphone brand. The company denies US accusations it is a security risk and might facilitate Chinese spying. Washington has postponed enforcement of the curbs and US officials say some sales will be permitted. But suppliers of processor chips and other vendors that depend on Huawei for billions of dollars in annual revenue still are waiting for licenses. The larger bonus to 90,000 employees goes to people who work in chip production, research and development and manufacturing-related jobs. Those units have been most affected by efforts to overhaul Huawei’s products. Huawei can keep using Android in its smartphones but will lose access to Google’s music, maps and other services. Huawei said its sales rose 24.4% over a year earlier in the first nine months of 2019 to 610.8 billion yuan ($86bn). However, chairman Liang Hua warned in July the company will “face difficulties” in the second half. US security warnings focus on Huawei’s network gear. The company is a leader in next-generation network technology meant to support self-driving cars and other new applications. Its increased reach makes that more politically sensitive.

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jumped 10.5% for one of the biggest gains in the S&P 500 after reporting earnings that were better than analysts were expecting. Across the S&P 500, companies are on track to report a drop of 2.4% in third-quarter earnings per share from a year before. That’s not as bad as the 4% decline analysts initially expected, according to FactSet. Just over 90% of the companies in the S&P 500 have reported their results for the summer. Not all companies are delivering solid quarterly results. Advance Auto Parts skidded 7.5% Tuesday after the auto parts retailer cut its full-year estimates for sales and income. It’s a busy week for economic data. The US Labor Department will give updates on consumer and wholesale inflation. Economists expect a government report to show that retail sales returned to growth in October. And Federal Reserve Chairman Jerome Powell is due to give testimony to Congress today about the US economy. Most investors expect the Fed to keep interest rates on hold for now after cutting them three times since the summer. Benchmark crude oil fell six cents to settle at $56.80 a barrel. Brent crude oil, the international standard, fell 12 cents to $62.06 a barrel. Wholesale gasoline was little changed at $1.61 a gallon. Heating oil fell one cent to $1.90 per gallon. Natural gas fell two cents to $2.62 per 1,000 cubic feet. Gold fell $3.40 to $1,451.10 per ounce, silver fell nine cents to $16.68 per ounce and copper fell two cents to $2.64 per pound. The dollar fell to 108.94 Japanese yen from 109.04 yen on Monday. The euro strengthened to $1.1011 from $1.1034.

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TUESDAY, 12 NOVEMBER 2019

(242) 323-2320

ALL SHARE INDEX: CLOSE: 2,200.15 | CHG: -0.21 | %CHG: -0.01 | YTD: 90.70 | YTD%: 4.30 BISX LISTED & TRADED SECURITIES 52WK HI 4.45 22.65 7.00 6.10 2.60 2.00 5.47 11.75 6.17 4.64 12.40 2.81 3.85 10.21 7.51 16.90 9.40 3.63 14.20

52WK LOW 3.65 20.91 4.90 4.46 1.01 0.22 2.00 9.30 6.15 3.95 6.75 2.35 1.76 7.51 6.10 12.10 6.41 3.01 13.01

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

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

1000.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

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

CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB

PREFERENCE SHARES

1.00 10.00 1.00

1.00 10.00 1.00

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

52WK HI 2.27 4.31 2.07 194.86 158.57 1.65 1.82 1.74 1.21 8.01 9.60 6.83 11.39 12.30 10.68 10.00 8.69 11.79

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.58 1.69 1.66 1.09 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

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

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

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

MUTUAL FUNDS

MARKET TERMS

LAST CLOSE 3.68 17.43 6.00 6.10 2.46 1.80 4.70 11.06 6.16 4.12 8.55 3.43 3.85 9.60 7.51 16.90 9.33 3.20 14.00

CLOSE 3.68 17.43 6.00 6.10 2.46 1.80 4.70 11.06 6.16 4.12 8.55 3.19 3.85 9.61 7.51 16.90 9.33 3.20 14.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.24 0.00 0.01 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00

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

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

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

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

VOLUME

VOLUME

NAV 2.27 4.30 2.07 193.72 158.42 1.65 1.82 1.74 1.19 8.23 10.10 6.85 11.24 12.28 10.74 9.92 8.68 11.38

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

DIV$ 0.170 1.260 0.000 0.260 0.000 0.020 0.000 0.720 0.220 0.120 0.000 0.434 0.060 0.328 0.240 0.540 0.200 0.120 0.610

0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000

P/E 15.4 18.7 N/M 16.5 N/M N/M -10.7 15.3 13.7 22.4 61.1 31.3 8.2 14.9 10.3 20.7 9.9 15.8 22.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0

YIELD 4.62% 7.23% 0.00% 4.26% 0.00% 1.11% 0.00% 6.51% 3.57% 2.91% 0.00% 13.61% 1.56% 3.41% 3.20% 3.20% 2.14% 3.75% 4.36% 0.00% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%

INTEREST Prime + 1.75%

MATURITY 19-Oct-2022

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

20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022

YTD% 12 MTH% 2.77% 3.84% 1.38% 3.46% 2.03% 2.76% 4.99% 6.20% 7.18% -0.08% 2.88% 3.80% 4.56% 6.50% 3.35% 4.17% 5.77% 7.89% 7.17% 8.76% 11.07% 12.58% 3.50% 4.96% 8.92% -0.97% 5.22% 5.44% 2.95% 2.64% -0.71% 0.16% 7.40% 2.70% 10.20% 1.30%

NAV Date 30-Sep-2019 30-Sep-2019 27-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Mar-2019 30-Mar-2019 30-Mar-2019

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

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

PAGE 10, Wednesday, November 13, 2019

THE TRIBUNE

CAN MAKE A DIFFERENCE IN THE LIVES OF THE CHILDREN AT RANFURLY

T

he Ranfurly Homes for Children has been a safe haven for thousands of Bahamian children since 1956. The Home provides a safe, structured environment for children who have been orphaned, abused, neglected or abandoned. YOU can make a difference in the lives of the children at Ranfurly. With your support children can have nutritious food, warm beds and a safe environment where they can discover the joy of being children. For years the children living and learning at Ranfurly have made great social and academic strides. Their further development requires additional support in the form of a Transitional Home, planned for construction on the Ranfurly property. This residence will cater to teenagers and young adults who are beyond school age, but need accommodation while they find work and gain independence from the Home. We look forward to your continued support in this worthwhile endeavour.

MEMBERSHIP PACKAGES Individuals, Families & Corporate Sponsors Children Helping Children - $5 (Individual children from ages 6 - 18) Individuals Helping Children - $50 (Individual adults 18 years and over) Families Helping Children - $100

CIRCLE of FRIENDS Silver: $1,500 - $2,499 Gold: $2,500 - $4,999 Platinum: $5,000 plus

OPPORTUNITIES • • • •

Invitations to Ranfurly events Assist with fundraising events Involvement with special activities Adults are eligible to join the Board after three months • Stay in touch with Ranfurly through website and newsletters

BENEFITS

• Personal fulfillment in knowing you are impacting lives • Ranfurly children’s appreciation and positive response • Continued support provides stability and constant care

For more information visit: www.ranfurlyhome.org Please “Like” us on Facebook Ranfurly Home for Children, Mackey Street P.O. Box 1413 Nassau, Bahamas 242-393-3115

THE TRIBUNE

Wednesday, November 13, 2019, PAGE 11

BOEING ORDERS, DELIVERIES CONTINUE TO SAG WITH MAX GROUNDING

A WORKER walks past a Boeing 737 MAX 8 airplane being built for Oman Air at Boeing’s assembly facility in Renton, Wash. Orders and deliveries of new Boeing planes remain depressed eight months into the grounding of the company’s 737 Max, Boeing said yesterday. Photo: Ted S Warren/AP By DAVID KOENIG Associated Press ORDERS and deliveries of new Boeing planes remain depressed eight months into the grounding of the company’s 737 Max, leaving Boeing far behind Airbus, its chief competitor. Boeing says that no customers have canceled orders because of the two deadly crashes involving the Max, but some orders have been switched to other Boeing models or lost because of airline bankruptcies. Boeing said yesterday that Air Lease Corp, which leases planes to airlines, replaced an order for 15 Max jets with an order for five 787s, a larger plane used mostly on international routes. An unidentified customer dropped an order for three Max planes after ordering a larger Boeing 777 earlier this year, Boeing said. Chicago-based Boeing said it took ten new orders in October, down from 24 in the same month last year, which included 14 Max jets. The company delivered 20 commercial planes last month, including 12 for the 787, which Boeing calls the Dreamliner. That is down from 57 a year earlier. Boeing’s European rival, Airbus, said Tuesday that it took 415 orders in October, with 300 coming in one deal with IndiGo. The Indian discount carrier ordered

planes in the Airbus A320neo family, planes that compete with the Max. Airbus said it delivered 77 airliners last month, including 56 in the neo category. The decline in deliveries is hurting Boeing’s cash flow because customers pay much of the purchase price on delivery. In the third quarter, Boeing burned through $2.9bn in cash, compared with generating $4.1bn in free cash flow a year earlier, and it took on $5.5bn in new debt. Cai von Rumohr, an analyst with financial-services firm Cowen, said Boeing’s deliveries were better than expected but orders were “lackluster”. He said investors are more focused on when the Max will return to service and on the outlook for growth in global air traffic. Boeing’s shares ended Tuesday down $4.08, or 1.1%, to $362.88. The Max has been grounded since March after two accidents killed 346 people. On Monday, Boeing said it hopes to resume deliveries of the Max in December and win Federal Aviation Administration approval of changes to the plane and a pilottraining course in January, clearing the way for the plane to return to service in the United States. Regulators in other countries are expected to take longer.

To advertise in The Tribune, contact 502-2394

PAGE 12, Wednesday, November 13, 2019

THE TRIBUNE

Morales’ exit stymies comeback for Latin America’s left By JOSHUA GOODMAN Associated Press THE sudden resignation of Bolivia’s Evo Morales sent shockwaves throughout Latin America, where the indigenous leader had been the last survivor among a wave of leftist leaders swept to power two decades ago as commodity prices soared. But the upheaval that has recently rocked the region, threatening Trump allies and anti-imperialist governments alike, defies easy categorisation. From Honduras to Chile, popular frustration with anemic economic growth, entrenched corruption and gaping inequality is driving the region’s middle classes to rebel against incumbents of all ideological bents in what has been dubbed the Latin American Spring. “Latin America has been the frog in the boiling pot for a long time,” said Marie Arana, the Peruvian-American author of a new book, “Silver, Sword & Stone,” exploring five centuries of abuse and economic exploitation of the region’s masses. “It’s gotten to the point where it’s less about ideology and more about practical matters as people for themselves see the rampant physical evidence that things are going wrong.” The angst is greatest among the region’s newly empowered middle class and the traditionally disenfranchised groups that made great strides when the

POLICE patrol on the sidelines of a march by supporters of former President Evo Morales, arriving from El Alto and entering La Paz, Bolivia yesterday. Former President Evo Morales, who transformed Bolivia as its first indigenous president, flew to exile in Mexico yesterday after weeks of violent protests, leaving behind a confused power vacuum in the Andean nation. Photo: Natacha Pisarenko/AP left came to power at the end of the 1990s with the election of Hugo Chavez in Venezuela and Luiz Inácio Lula da Silva in Brazil. Around 90 million people entered the middle class in Latin America between 2000 and 2012, according to the United Nations, a feat that tracked with a boom in prices for the region’s copper, soy and oil exports.

But as commodity prices have fallen, and leftist leaders once lionised for crusading against corruption are engulfed in scandals themselves, families earning enough for the first time in generations to pay taxes and send their kids to college are demanding higher-quality public services. “The left had a very long stretch but it’s unlikely to

be repeated,” said Michael Shifter, president of the Inter-American Dialogue. “Going forward, political cycles will be shorter, because governing is so much harder and expectations greater than ever.” Prior to Morales’ resignation, the left had been hoping for a comeback following the 2017 election last year of far-right populist Jair Bolsonaro in Brazil.

In the past month alone, it has been re-energised by an uprising against fuel hikes in Ecuador, mass protests against right-wing leaders in Honduras and Chile, the release from prison of Lula in Brazil, a first-round win of the governing leftist coalition in Uruguay, and the resurgence of the Peronist party in October elections in Argentina following the spectacular failure of free market reforms there. Even embattled Venezuelan leader Nicolas Maduro has managed to outmaneuver his rivals to stay in power amid crippling US sanctions and a cratering economy. The raging discontent has been hailed on social media as the Latin American Spring — a reference to the tumult that, starting in 2011, toppled entrenched leaders in the Arab world. The left’s resilience has been cheered on by Mexican President Manuel Lopez Obrador, who gave Morales asylum and whose pivotal win 16 months ago was seen as a bulwark against a rise of conservative, pro-US leadership in the region, including President Ivan Duque in Colombia and Bolsonaro in Brazil. Still, many expect the turbulence to continue, with attention now turning to the leftist governments in Nicaragua and Venezuela, which have been rocked by major upheaval of their own in the past year. On Monday, President Donald Trump singled them out, saying Morales’ departure sends a “strong signal to the illegitimate regimes in Venezuela and Nicaragua

that democracy and the will of the people will always prevail.” Even some on the left acknowledge that, as expectations have risen in recent years, leaders haven’t done enough to strengthen institutions and meet demands for better health care, schooling and wages. “People have risen out of poverty, but the left’s rhetoric hasn’t changed much from when it came into power,” said Amauri Chamorro, a BrazilianEcuadorean analyst who has advised many leftist political parties throughout the region. Still, Chamorro says the biggest obstacle facing Latin America’s left has been the fraud allegations that have left them open to campaigns by their conservative adversaries who, struggling to defeat them at the ballot box, have slapped them with corruption charges. These include Lula in Brazil, who was leading in the polls before he was jailed, as well as former Ecuadorean President Rafael Correa and Cristina Fernandez de Kirchner, who is preparing to return to power as Argentina’s vice president-elect. In many ways Morales makes for an odd victim, however. Unlike his fellow anti-US allies, he has governed since 2006 as a pragmatist, delivering some of the fastest economic growth in the world by cutting deals with major international energy firms and ushering in a period of economic stability unseen in generations. The former coca farmer also tore down decades of ethnic discrimination against his fellow indigenous Bolivians who had long been denied political power. His downfall came as he clung to power, refusing to recognise the results of a referendum that would have banned him from seeking a fourth consecutive term. A mission by the Organization of American States sent to audit the results of the Oct 20 presidential vote found a slew of irregularities, including the use of hidden servers to tabulate results and false signatures on tally sheets. Morales contends he was forced out by a coup. “The left was attractive for a very long time and justifiably so because it spoke for the people when nobody else did,” said Arana. “But hopefully we’ve reached the point, with so much corruption and turmoil, that people realize the concept of a democratically elected dictator isn’t working, just like the right-wing military dictatorships that preceded them didn’t work.”

ITALIAN INSURER GENERALI SEEKS ART MARKET LEADERSHIP MILAN Associated Press ITALIAN insurer Generali launched a new business yesterday to cover art works, engaging as a poster boy the contemporary artist Maurizio Cattelan, whose gold-covered statute valued at 2.4 million euros ($2.6m) was stolen last year from an English castle. Cattelan declined to discuss the theft of the sculpture titled “America”, but he did appear on promotional material for the new business, Arte Generali, with only a copy of the original gold-covered toilet for cover. Generali CEO Philippe Donnet wants to take on his former company, AXA, which is the leader in the art market, leveraging on Italian art expertise and Generali’s history of engaging with art and culture. “To be fully transparent, when I joined Generali Italia six years ago as the regional manager for Italy, I was very surprised we were not doing this kind of business in Italy,” Donnet

said. “I didn’t know I would have the opportunity as group CEO, but I think it is absolutely necessary for Generali to enter this business.” Generali is aiming 50 million euros ($55m) in revenues in five years in a sector that is forecast to grow $2.3bn in 2022, from $1.7bn five years earlier. The global art value in the period is forecast to grow by 20% to $4.3tn. The head of the new division, Jean Gazancon, said Generali aims to be a “partner for life” for art collectors, going beyond insurance to offer digital platforms for appraisals from experts as well as solutions for storage, transport and restoration. Beyond art, it will also deal with valuable collectibles, high-end musical instruments and jewelry for a value of up to 150 million euros ($164m). The business will launch first in Europe, where the Generali name is known, before expanding to Dubai in the Middle East. “We want to become the leader in this world,” Donnet said.