11152018 BUSINESS

business@tribunemedia.net

THURSDAY, NOVEMBER 15, 2018

$4.99

‘Way too early to celebrate’ BOB’s 199% profits rise

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A PROMINENT Bank of The Bahamas (BOB) shareholder yesterday warned it was “way too early to celebrate” its 199 percent first quarter profits increase as multiple concerns remain.

Darron Cash, pictured, the former Free National Movement (FNM) chairman, told Tribune Business that “the jury is still out” on whether the BISXlisted institution can sustain a performance that saw net income near-triple to $1.966m for the three months to end-September.

He described BOB’s loan book quality, with 28.92 percent or $101.648m of the net portfolio in default at end-June 2018, as likely “the greatest risk” to achieving consistent profitability.

SEE PAGE 4

THE Ministry of Finance’s top official was yesterday “fairly confident” that the new business licence regulations can be adjusted to achieve the Government’s goals without being “onerous” for business.

Marlon Johnson, speaking to Tribune Business after a grilling from Bahamas Institute of Chartered Accountant (BICA) members over the demand for bank account details to accompany filings by companies generating less than $10m in annual turnover,

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

HE Government was yesterday accused of “disrespecting” the web shop industry by setting an arbitrary end-of-week deadline to resolve their differences over the five percent patron tax.

Wayne Munroe QC, the attorney representing the Island Game and Paradise Games chains, told Tribune Business that the Government seemed determined “not to consult our clients” with the industry yet to receive a response to its recommendations on the draft rules that will govern the stamp duty levy on customer deposits and over-the-counter lottery ticket sales.

He and his fellow attorney, Alfred Sears QC, who is acting for Sebas Bastian’s Island Luck group, both submitted their responses to the Government’s first draft of the rules before end-October but have

said “poor bookkeeping habits” had prompted the Government to take this measure.

Responding to growing private sector concerns that the regulations, enacted on May 30, amount to “overkill” and unnecessary “red tape” given that business licence fees are calculated solely on top-line turnover, Mr Johnson said the imminent publication of guidance notes will help to ease these fears.

“What we have done, and will do very shortly, is to publish the clarifying notes that will outline what

SEE PAGE 7

Bahamas’ WTO membership is ‘no fait accompli’

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE Government’s chief World Trade Organisation (WTO) negotiator yesterday said The Bahamas’ accession was no “fait accompli”, telling accountants: “I’m not tied to any outcome.”

Zhivargo Laing, the former Cabinet Minister, told attendees at the Bahamas Institute of Chartered Accountants (BICA) conference: “It’s either the case that this works to the benefit of The Bahamas or we

$5.05

Web shop QC slams govt for ‘disrespect’

Top official confident of business licence ‘happy medium’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

$5.03

ZHIVARGO LAING decide that we don’t do it; it doesn’t make sense. Why should we do any reform that does not enure to the benefit of this economy?

“It makes no sense just

SEE PAGE 7

* Munroe: AG adopting ‘wrong attitude’ * Sector waits fortnight on ‘patron tax’ reply * ‘Nowhere else’ are gaming houses tax collector

WAYNE MUNROE QC

heard nothing since.

Unable to determine whether there have been any adjustments based on the industry’s recommendations, the two-week silence was broken on Tuesday when Carl Bethel QC, the Attorney General, warned that the legal battle between government and web shop industry would resume unless the two sides

resolved their patron tax differences by week’s end.

Mr Munroe said this showed that the Government was treating one of its largest tax-paying industries in “a very curious way”, and accused Mr Bethel of adopting “the wrong attitude” by setting what amounts to an ultimatum.

He argued that The Bahamas was the only nation

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Top official: Shoddy accounting justifies new licence regime

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

where gaming operators were being transformed into tax collectors on the Government’s behalf, suggesting that “nowhere else in the world” is direct taxation - namely the five percent stamp duty levy - imposed on players and patrons.

Describing the renewed tension as “unfortunate”, Mr Munroe told Tribune Business: “Alfred [Sears] would have sent the attorney general his response on October 26, and I sent him my response after that to the draft rules.

“I pointed out little things: There were references to stamp tax in the rules, when the Act refers to stamp duty. I also pointed out that the proposal for rounding up and down led up to interpretation

THE Ministry of Finance’s top official yesterday defended the new business licence regulations on the basis that too many companies’ financial statements “do not stand up to scrutiny”.

Marlon Johnson, pictured, the financial secretary, said this was the Government’s rationale for requiring businesses earning up to $10m annually to produce a financial statement confirming their top-line turnover together with accompanying certified bank statements.

Mr Johnson’s comments at the Bahamas Institute of Chartered Accountants (BICA) conference were met with strong push back from attendees, who described the bank accounts demand as an “invasion of privacy” and too onerous a demand for Bahamian small

SEE PAGE 5

SEE PAGE 3

THE TRIBUNE

Thursday, November 15, 2018, PAGE 3

TOP OFFICIAL: SHODDY ACCOUNTING JUSTIFIES NEW LICENCE REGIME

FROM PAGE ONE

businesses. Some slammed the government over a lack of consultation on the regulations that were brought into effect on May 30.

To the latter charge, Mr Johnson pled guilty, saying: “I accept the critique that we didn’t engage BICA earlier on that, as we ran with a whole lot of things during the last budget exercise. We have since engaged BICA through BICA’s request, and have made a commitment to work with them to come up with a solution.”

The amended business licence regulations have attracted heightened scrutiny as the 2019 payment deadline approaches. Companies with an annual turnover of $10m or more must provide audited financial statements that will confirm their prior year earnings.

But for those businesses earning between zero to $10m, the regulations stipulate that “a financial statement” confirming their

turnover must be supplied to the Department of Inland Revenue (DIR).

This, though, must also be accompanied by “a certified bank statement” covering each bank account held in the business’s name and any other accounts “that are used in transactions” on its behalf.

Justifying the move, Mr Johnson told attendees: “Too often we have gotten submissions and are concerned by them. When we look behind the actual statements and do our spot audits, too often they do not stand up to scrutiny.

What we have said is if there is a sign off by an accountant, what ought to be the recourse? That is a discussion we are having.

“In too many cases we could not accept those statements as credible. Where we are, and will discuss with BICA, is how do we address scenarios when we do get statements and they are found to be wanting in a material way. What should be the recourse?”

It was suggested to Mr

Johnson that the Government should inform BICA, the industry’s self-regulatory body, on which accountants are signing-off on questionable financial statements so that the necessary disciplinary action can be taken.

Philip Galanis, principal at HLB Galanis & CO, while commending the Government for its efforts in promoting transparency and accountability, raised concerns over the number of foreign consultants conducting audits in The Bahamas.

As for the business license regulations, Mr Galanis warned the Government over unnecessary intrusion. “We are the one’s who drive this economy, not the Government,” he said.

“The economy is driven by the private sector. I ask the Government to be very cautious. For you to ask for bank statements, I think you need to take into account that banks statements don’t tell the whole story.”

But Mr Johnson told accountants: “We cannot

continue the status quo.”

While acknowledging the concerns raised, he said: “We will not go back to the status quo where we create this expectation that a person can have a business and co-mingle funds, not have to prepare proper accounts and keep proper books.”

Mr Johnson stressed that as The Bahamas continues to reform its taxation system it will be “imperative” that businesses keep proper books.

But the Bahamian private sector has slammed the business licence-related demands for their bank account details as “overkill”, and asked: “When’s it going to be easier to do business?”

Michael Maura, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chairman, told Tribune Business that the new business licence regulations had left many businesses “scratching their heads and wondering what’s next” in terms of the “red tape” they must overcome.

Others went further in their

criticism of the bank account information demands. Rick Lowe, an executive with the Nassau Institute thinktank, told Tribune Business: “That’s [bank account details] none of their business. What is this? A police state?

“Come on. They just keep making it more and more difficult by piling on more regulations. If the odd person has committed an offence then punish them, but don’t

make everyone suffer for what they might perceive is happening. There’s enough regulation already.”

Gowon Bowe, BICA’s president, previously told this newspaper that much of the information sought by the new business licence regulations “seems like overkill” given that the fee is based on just one item - a company’s annual turnover or top-line revenue.

BTC union in trade dispute THE trade union representing Bahamas Telecommunications Company (BTC) line staff yesterday filed a dispute over the company’s alleged failure to enter “good faith” talks on a new industrial deal.

The Bahamas Communications and Public Officers Union (BCPOU), in a statement, said it had filed a trade dispute today with the Department of Labour over BTC’s failure to negotiate a new industrial agreement to replace the former deal that expired 20 months ago.

It alleged that the communications provider, controlled by Liberty Latin America (LiLAC) through Cable & Wireless Communications (CWC), is in violation of both the two sides’ collective bargaining agreement and

the Industrial Relations Act’s Chapter 321.

Dino Rolle, the BCPOU’s president, stated: “Enough is enough. The officers of the BCPOU have demonstrated extreme patience with the chief executive and executives of BTC, and we came to the bargaining table in good faith.

“What we’ve received in return are excuses and delays. The livelihood of our members is at stake and we must remain steadfast and ensure that their rights are protected.”

Mr Rolle added that BTC’s industrial agreement proposal were unreasonable in The Bahamas’ current economic climate, and said: “They are expecting to run a corporation by cutting costs at the expense of the staff.”

Besides delays with the renewal of the industrial agreement, Mr Rolle cited a host of issues he said were undermining the morale of BTC staff. These include delayed payments to staff for approved and worked overtime; an increase in the hiring of foreign labour, particularly in the retail, IT and finance areas; and the breach of the sales agreement for BTC’s privatisation

by CWC in 2011 through plans to close the company’s call centre and ship Bahamian jobs overseas.

Mr Rolle argued that BTC must develop and a sound corporate strategy that focused on technology infrastructure investments to grow company revenues. “This thoughtless approach of cutting costs on the backs

of Bahamians to maintain a company is myopic and is not sustainable,” he added.

Ricardo Thompson, president of the Bahamas Communications and Public Managers Union (BCPMU), stated he backed the BCPOU with his union set to soon follow suit.

“The current leadership at BTC must embark on a mission to rebuild the company and create an environment that members would be happy to be a part of while maintaining its profitability,” Mr Thompson said.

The BCPOU and the BCPMU are the sole bargaining units for line-staff and managers, respectively at BTC.

PUBLIC HOSPITALS AUTHORITY ADVERTISEMENT

VACANCY

SENIOR NETWORK ADMINISTRATOR The Public Hospitals Authority invites applications from suitably qualified persons for the post of Senior Network Administrator in the Information Management System Unit, Corporate Office.

JOB SUMMARY: The Senior Network Administrator is primarily responsible for delivering engineering, integration, maintenance, and 2nd level support services for the PHA IT infrastructure, and changes to this infrastructure encompassing all servers, routers, firewalls, hubs, desktops, telecommunications facilities (VOIP), and all other infrastructure components and related software such as operating systems, system management tools, and security related tools.

KEY ACCOUNTABILITIES FOR THIS ROLE INCLUDE BUT ARE NOT LIMTED TO THE FOLLOWING: 1. Develops technical architecture and security strategies for the Public Hospitals Authority and also the PHA Information Management System Unit’s policies, strategies and plans; 2. Serves as custodian of PHA’s IT Security strategy and coordinates its development and ongoing evolution with other members of the Unit as required; 3. Assesses the impact of proposed new initiatives and changes to existing infrastructure and information management standards; 4. Conducts capacity planning to ensure that the infrastructure remains responsive to needs and identifies any changes that may be required; 5. Researches journals, reports, Internet, and other material to become familiar with current and emerging IT infrastructure related principles, best practices, technologies, and trends; 6. Supervises other technical staff; 7. Collaborates with the Manager, Strategy Planning and Business Operations on the development of the Unit’s IT Policies, strategies and plans, focusing on those aspects that relate to the IT infrastructure; 8. Contributes to the assessment of the impact of proposed new initiatives and changes by analyzing business requirements to determine their impact on the existing infrastructure and identify any requirements for new infrastructure or changes to existing infrastructure; EDUCATIONAL/ COMPETENCY REQUIREMENTS • Bachelor Degree in Computer Science, Information Technology or equivalent; • Certification in Microsoft Certified System Engineer (MCSE) and CCNP • Seven (7) years related work experience and MCSE and CCNP certifications • Citrix and UNIX experience or certification, as well as specialized training in disciplines such as capacity planning, security, project management, are highly desirable; • Excellent knowledge of current IT infrastructure related technologies, principles, best practices and trends; • Excellent knowledge of current principles, best practices and trends guiding the development of technical architectures; • Excellent knowledge of current principles, best practices and trends applicable to the development of infrastructure related processes, policies, strategies and plans; • Demonstrated skills in solving IT infrastructure related problems; • Excellent communication skills (verbally and in writing); The Senior Network Administrator will report to the ICT Operations Consultant/ Infrastructure Development.

Letter of application and curricula vitae should be submitted to the Director of Human Resources, Corporate Office, Public Hospitals Authority, 3rd Terrace West, Centreville; jobs@phabahamas.org or P.O. Box N-8200, Nassau, Bahamas no later than 19th November, 2018.

PAGE 4, Thursday, November 15, 2018

THE TRIBUNE

‘Way too early to celebrate’ BOB’s 199% profits rise FROM PAGE ONE Mr Cash said the Bahamian public, who were responsible for giving the bank a “new lease on life”, still did not know if a third government bail-out will be required, and he criticised successive administrations for doing “a disservice” by not providing greater clarity on why BOB suffered five consecutive annual losses that took its accumulated deficit to more than $140m.

He added that increased depositor and public confidence was now key to completing BOB’s rescue, as this will enable the Government to reduce its support and, ultimately, begin to sell down its majority 82.6 percent stake in the bank.

“It’s important to accentuate the positive, and it is good to see the net income

and comprehensive total income numbers moving in the right direction,” Mr Cash told Tribune Business.

“That’s a positive step that we ought to acknowledge and commend the board and management team for.

“Having said that, it’s way too early to celebrate that the financial results have improved because the jury is still out on whether the results that have been achieved are going to be lasting. A quick look in the annual report highlights the quality of the loan portfolio continues to be one of, if not the greatest, risks in terms of sustained profitability.”

Tribune Business reported last month that more than one-quarter of BOB’s net loan portfolio was delinquent at end-June 2018 despite the prior year’s $167m government bail-out, with the financials unable to

escape a “going concern” warning from external auditors, KPMG. Some 28.92 percent or $101.648m of BOB’s net loan portfolio remains in default. While that represents a significant drop of over $145m from the yearbefore’s 55.11 percent ratio, it is double the 14.3 percent average delinquency ratio for the full Bahamian commercial banking industry.

The bank’s second bail-out largely focused on removing delinquent commercial mortgages, leaving BOB with a stillproblematic residential mortgage portfolio. Some 31.2 percent, or $76.325m, of a $244.481 residential mortgage book remains in default, accounting for around three-quarters of the bank’s remaining troubled loans.

“Shareholders, and by shareholders I mean the

Bahamian people, still don’t know or are in a position to be 100 percent, even 80 percent, satisfied that all the bad news has been revealed,” Mr Cash told Tribune Business.

“That is the great unknown for the longterm viability of the bank...

Clearly, BOB’s auditors recognised that the quality of their loan portfolio continues to put them at great risk and calls into question whether the bank is a going concern.”

BOB’s near-triple first quarter profit surge came despite a slight decline in top-line interest income, with its net loan book shrinking by more than $20m to $331.315m at end-September 2018.

This indicates the BISXlisted commercial bank is struggling to find new credit opportunities, and increase market share, in the very area that represents its core business - lending.

Indeed, most of BOB’s year-over-year first quarter improvement came from reduced operating expenses and loan loss provisions, which together accounted for around $950,000 of the $1.3m bottom line improvement.

And BOB’s just-released 2018 annual report disclosed that net loans and advances to customers for the 12 months to end-June fell by $96.6m or 21.56 percent, down from $448.1m to $351.5m.

“The overall decline in net loans and advances was due to lower gross loans and advances by $173.8m or 29.82 percent year-overyear, partly offset by lower provisions for credit losses, primarily as a result of the Resolve transaction,” BOB

To advertise in The Tribune, contact 502-2394

said. “Provisions for credit losses moved from $142.6m to $65.6m, a decrease of $77m or 53.96 percent.”

Mr Cash said that while BOB’s net interest income appeared to have “stabilised” during the three months to end-September 2018, “the bank has to be focused on growing that number and market share in a meaningful way”.

“Stability is growing but a growth trajectory over the coming quarters would inspire a lot more confidence,” he added. “In my view there’s a legitimate concern about the deposit portfolio. Whether or not that stabilises and continues to grow as an indication of public confidence is to be seen.

“Over the next few quarters we’ll see whether growth in the deposit number becomes evident, and not just from Government-connected corporations but average Bahamians who begin to develop more confidence in the long-term stability of the bank.”

BOB’s 2018 audited financial statements show that the Government continues to prop-up the bank in multiple ways.

Together with its agencies, they accounted for $242.325m or 38.6 percent more than one-third - of the bank’s $628.406m in deposits at end-June 2018.

“There’s one element of BOB that I want to personally highlight,” Mr Cash told Tribune Business. “I want to express my view that the Government has done the Bahamian people a disservice by not revealing in greater detail the underlying reasons why the bank ended up in the position it did.

“The bank has a new lease on life entirely because it was bailed out by the Government and Bahamian people, and anyone who looks at the nearly $140m in accumulated losses and compares that to $167m in special retained

earnings... that reflects the extent to which the Bahamian people stepped in to rescue this bank.

“Anyone who looks at this can see the extent to which the Bahamian people are invested in Bank of The Bahamas’ survival and ultimate future. The Government ought to be a lot more specific on why these losses occurred and what policy changes have been made so they do not happen again.”

Mr Cash continued: “Yes, there’s reason to be encouraged, but they’ve got to demonstrate the ability to manage the existing loan portfolio very well. If they demonstrate the ability to do that, then the fear of the bank going out of business without a government bailout will subside.

“The Government will then be in a position to offload its shares to confident investors who believe the bank does have a future.”

Mike Lightbourn, another of BOB’s 3,000 minority shareholders, told Tribune Business that BOB needed to recover and prosper for the good of both itself and the wider Bahamas.

“Obviously they’re making positive headway, which we’re all happy about, and hopefully they’re going to be less of a drain on the Government,” he said of BOB’s first quarter results.

“It’s a positive outlook and they’re headed in the right direction. We don’t know how long they’re going to take, but for the sake of the bank and the country I hope they achieve their goals quicker than expected.

“I just hope they’ve cut out all the fat and loans to politically exposed persons (PEPS). I think they have by and large; they have to it’s the only way to redeem themselves. We all want them to do well; it’s good for them and the country.”

PUBLIC HOSPITALS AUTHORITY ADVERTISEMENT

VACANCY

NETWORK ADMINISTRATOR 1 The Public Hospitals Authority invites applications from suitably qualified persons for the post of Network Administrator 1in the Information Management System Unit, Corporate Office.

JOB SUMMARY: The Network Administrator 1 is responsible for the daily operations and maintenance of the network operating systems and utilities; provides support for the daily functioning and ongoing management of all related components; Assists with the design and implementation of Local Area Networks (LANs) and Wide Area Networks (WANs); Works closely with the Network Systems Engineer.

KEY ACCOUNTABILITIES FOR THIS ROLE INCLUDE BUT ARE NOT LIMTED TO THE FOLLOWING: 1. Manages different network topologies and multiple platforms; 2. Manages and supports all client access environments, including installation, maintenance and upgrades; install, maintain and troubleshoot Local Area Network (LAN), Wide Area Network (WAN) equipment including CISCO switches, modems, tape drives and servers; 3. Employs security administration which includes planning, implementing and enforcing security policy to ensure protection of data and shared network resources; Configure, implement and maintain host security (including passwords, file permissions and file security, building firewalls, deploying authentication systems, or applying cryptography to network applications); 4. Provides technical leadership and/or supervise other technical staff; 5. Assists in designing and implementing local and wide area networks; 6. Assists with policy development and implementation including disaster recovery plan and backups; 7. Creates and maintains user group profiles and accounts; configures network file systems; 8. Configures and maintains TCP/IP networks, routers and terminal servers; 9. Resolves and recovers crashed systems; ensures regular software updates and anti-virus protection; performs and monitors backup procedures and recovery of data; 10. Monitors and controls resource usage; 11. Provides helpdesk support to end users; 12. Responds to off-hours problems (Linus/Unix background a plus); EDUCATIONAL/ COMPETENCY REQUIREMENTS • Bachelor Degree in Computer Science, Information Technology or equivalent; • Certification in Microsoft Certified System Engineer (MCSE) or Microsoft Certified System Administrator (MCSA) • Seven (7) years’ Experience in installing and maintaining network systems.

The Network Administrator 1 will report to the Senior Manager, MIS Letter of application and curricula vitae should be submitted to the Director of Human Resources, Corporate Office, Public Hospitals Authority, 3rd Terrace West, Centreville; jobs@phabahamas.org or P.O. Box N-8200, Nassau, Bahamas no later than 19th November, 2018.

THE TRIBUNE

Thursday, November 15, 2018, PAGE 5

Web shop QC slams govt for ‘disrespect’ FROM PAGE ONE

by gaming patrons. I think that we’ll have some further meetings this week and then inconsistencies with the Act. it will either be: We’ll have I’d very much like to hear an agreement, or if not, we’ll how they propose to recon- go to court and we will have cile what they want to do to fight it out.” with the Interpretation and Tribune Business underGeneral Clauses Act. stands that Mr Bethel had “That was two weeks promised to send a revised ago,” the well-known QC draft of the “patron tax” continued. “We haven’t rules to the web shop indusheard from them since, try yesterday, but the sector except on Tuesday, to say had yet to receive anything we have to have a meet- by mid-afternoon. ing within the next four Mr Munroe, though, days. It’s unfortunate if their said a meeting would be position is that... very difficult unless the “We thought we were web shop industry knew going to sit down and have the Government’s position a reasonable discussion on its recommendations over the issue. We thought in advance, and which had our responses would be a been incorporated into the pretext for a meeting, but rules, “outright rejected” to suddenly say we have to or were open for further meet Thursday or Friday, discussion. that’s unreasonable. I don’t Warning that a renewed understand the great rush.” legal battle will be expensive Mr Sears yesterday for all concerned, he said confirmed to Tribune Busi- the Supreme Court itself ness that talks between had urged both sides to try the Government and web and reach a negotiated setshop industry over the five tlement, and added that Mr percent “patron tax” were Bethel’s comments would ongoing, but declined to not intimidate the web shop comment further. “We’re industry given that the two certainly engaged in good sides were already in court. faith negotiations, and will “We were seeking to see if give it our best efforts,” he we could resolve this reasonsaid. ably and move forward,” Mr The delayed implemen- Munroe told Tribune Busitation of the budget’s new ness, explaining that web and increased web shop shops are not “going to willy taxes cost the Government nilly round up, increase the between $8-$12.6m in rev- rate of taxation and some enue for the first quarter of patron sue them”. its 2018-2019 fiscal year, with The potential liability the industry ultimately seek- from “rounding” has been ing legal redress through the one of the web shop indusSupreme Court. try’s primary concerns, as Mr Bethel, though, it could lead to an over or indicated that the Govern- under-payment of the due ment’s patience over efforts stamp tax by patrons. to secure an out-of-court The issues were set out resolution was starting to by Neil Major, Island Luck’s run out. “We are in discus- chief compliance officer, sions with the attorneys for who warned in an August the gaming house opera- 16, 2018, letter: “No guidtors. We don’t accept their ance has been giving on interpretation of the law,” the rounding up or down of the attorney general said fractional cents, or if there outside Cabinet. would be variance based on “We are still seeking to type of transaction. With agree to a framework on the the number of transactions last remaining issue, which occurring, this has an impact Cable Bah 2019 1Q HP Ad-03 11/14/18 12:08 PM Page 1 is the stamp tax on deposits on the financial results.

“Rounding of small amounts: We process tickets as small as $0.10. Rounding here could make this a ten percent stamp tax on some customers.”

Questioning why the Government is treating an important revenue generator in this manner, Mr Munroe said: “We are being made tax collectors.

Nowhere else are gaming operators made to become tax collectors for the Government. We have to get it right. I don’t understand why they seem to have difficulty talking to us to get it right.

“Our clients have a desire to co-operate. They’re businessmen; they don’t want to be in court. As far as possible, they get us to work with the Government to come up with something fair and equitable that works for all.

“They’re really just not prepared to consult our clients. I’m getting the impression there’s a lack of respect driving this inability or refusal to consult properly. It’s unfortunate for a group of taxpayers they say they want to collect so much taxes from.”

Tackling Mr Bethel’s comments directly, Mr Munroe added: “That attitude is just the wrong attitude. I’m told there is no larger tax-paying industry than this industry; that the Government collects no more taxes than it proposes to collect from these taxpayers. For the life of me I don’t understand the disrespect to this group of taxpayers... I live in hope.”

Dionisio D’Aguilar, the Cabinet minister with responsibility for gaming, admitted in the summer that the introduction of the five percent “patron tax” - together with the

increased “sliding scale” rates imposed on the web shops themselves - was “not as easy” as the Government had initially thought.

Implementation was initially delayed because the patron levy’s introduction meant that the web shop industry needed to have all its games tested and recertified by independent laboratories to verifythatthey performed as advertised.

One web shop industry

P O Box CB 13050 | Nassau, N P, The Bahamas T [242] 601 6780 / F [242] 601 8985 E investors@cablebahamas.com www.cablebahamas.com

2019 FIRST QUARTER REPORT CONSOLIDATED STATEMENT of PROFIT or LOSS and OTHER COMPREHENSIVE INCOME

As of September 30, 2018 | (Expressed in B$000, unaudited)

SEP 30, 2018

SEP 30, 2018 $ 44,018 23,155 9,483 13,487 7,127

$ 42,841 23,042 10,201 13,288 7,080

97,270

96,452

REVENUE

$

OPERATING EXPENSES

Depreciation and amortization

59,504

$ 51,785

(46,714)

(45,025)

12,790

6,760

(16,098)

(15,949)

(3,308)

(9,189)

Investment in Dais Property, plant and equipment Goodwill Intangible assets

6,730 442,702 13,074 82,930

6,730 432,025 13,074 96,188

Gain on joint venture

–

22

Gain on disposal of assets

–

13

Interest expense

(4,984)

(2,468)

Total non-current assets

545,436

548,017

Dividends on preferred shares

(3,613)

(3,613)

$ 642,706

$ 644,469

NET AND COMPREHENSIVE LOSS

$ (11,905)

$ (15,235)

Net loss attributable to noncontrolling interests

$

(7,562)

$

(8,107)

Net and comprehensive loss attributable to owners of the parent

$

(4,343)

$

(7,128)

BASIC EARNINGS PER SHARE

$

(0.10)

$

(0.17)

DILUTED EARNINGS PER SHARE

$

(0.10)

$

(0.16)

TOTAL

LIABILITIES AND EQUITY CURRENT LIABILITIES:

Accounts payable & accrued liabilities Deferred income Dividends payable Current portion of other liabilities Current portion of long-term debt Total current liabilities

$ 75,422 3,277 6,308 11,877 2,000

$ 71,538 3,419 2,696 11,844 99,169

98,884

188,666

Subscriber deposits Other liabilities Long-term debt Preferred shares

8,253 39,107 157,086 286,253

8,264 36,370 59,877 286,264

Total non-current liabilities

490,699

390,775

Total liabilities

589,583

579,441

E Q U I TY:

Ordinary share capital Retained earnings Non-controlling interest Total equity TOTAL

CONSOLIDATED STATEMENT of CHANGES in EQUITY

30,367 16,272 6,484

30,367 20,615 14,046

53,123

65,028

$ 642,706

$ 644,469

ORDINARY SHARE CAPITAL

Balance at June 30, 2018 Net loss attributable to owners of the Parent Net loss attributable to non-controlling interest Balance at September 30, 2018

NON RETAINED CONTROLLING EARNINGS INTEREST

TOTAL

$30,367

$20,615

$14,046

$65,028

–

(4,343)

–

(4,343)

– $30,367

– $16,272

(7,562) $6,484

Net loss Adjustments for: Depreciation and amortization Interest expense Dividends on preferred shares Gain on joint venture Gain on disposal of assets Operating cash flow before working capital changes Increase in trade and other receivables, net Decrease in prepaid expenses and deposits (Increase) decrease in inventory Increase (decrease) in accounts payable & accrued liabilities (Decrease) increase in deferred income Decrease in subscriber deposits Net cash from operating activities C A S H F LO W S F R O M INVESTING ACTIVITIES

Additions to investments Additions to property, plant and equipment Additions to intangible assets Net cash used in investing activities

For the period ended September 30, 2018 | (Expressed in B$000, unaudited)

NON-CURRENT LIABILITIES:

SEP 30, 2018

SEP 30, 2017 C A S H F LO W S F R O M O P E R AT I N G A CT I V I T I E S

OPERATING LOSS

NON-CURRENT ASSETS:

THREE MONTHS ENDED

THREE MONTHS ENDED

JUN 30, 2018

ASSETS

Total current assets

CONSOLIDATED STATEMENT of CASH FLOWS

For the period ended September 30, 2018 with comparatives for September 30, 2017 | (Expressed in B$000, unaudited)

For the period ended September 30, 2018 with comparatives for September 30, 2017 | (Expressed in B$000, unaudited)

CURRENT ASSETS:

Cash and cash equivalents Trade receivables, net Prepaid expenses and deposits Inventory Other receivables

best practices.

“A lot of these issues could have been avoided had there been dialogue with the industry, and in the same way the Government has structured dialogue with the banks and other areas of the financial industry.

“Gaming is part of the financial industry, and if we don’t get it right in gaming you leave the entire financial industry exposed.”

To advertise in The Tribune, contact 502-2394

CABLE BAHAMAS LTD.

CONSOLIDATED STATEMENT of FINANCIAL POSITION

source, speaking on condition of anonymity, said all the angst could have been avoided had the Government consulted properly with the web shop industry over its planned tax reforms.

“There’s been a lot of rhetoric about public-private partnerships,” they said, “but certainly in the gaming industry it’s not been the kind of consultation one expected that was consistent with international

C A S H F LO W S F R O M FINANCING ACTIVITIES

SEP 30, 2017

$ (11,905)

$ (15,235)

16,098 4,984 3,613 – –

15,949 2,468 3,613 (22) (13)

12,790

6,760

(160)

(2,279)

718 (199)

1,323 3,772

3,908

(5,295)

(142) (11)

597 (73)

16,904

4,805

–

(350)

(13,409) (104)

(21,195) (71)

(13,513)

(21,616)

Capital lease obligation (net) Interest paid on long-term debt Net cash (used in) from financing activities

2,770 (4,984)

6,034 (2,468)

(2,214)

3,566

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

1,177

(13,245)

(7,562)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

42,841

55,915

$53,123

CASH AND CASH EQUIVALENTS, END OF PERIOD

$ 44,018

$ 42,670

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

These consolidated interim condensed financial statements are prepared in accordance with IAS, Interim Financial Reporting. The accounting policies used in the preparation of these interim financial statements are consistent with those used in the annual financial statements for the year ended June 30, 2018. These statements also follow the guidelines of IFRS 10, Consolidated Financial Statements and incorporate the financial statements of the 48.25% owned subsidiary Be Aliv Limited, which was incorporated July 1, 2016, under the laws of The Commonwealth of The Bahamas for the purpose of providing wireless services throughout The Bahamas. Cable Bahamas Ltd. has board and management control and as such all costs included in Be Aliv Limited financial statements are included in these consolidated interim financial statements and all intercompany transactions and balances are eliminated on consolidation.

PAGE 6, Thursday, November 15, 2018

THE TRIBUNE

GOVT TARGETS IMMIGRATION REVAMP FOR TECH HUB BOOST

By DENISE MAYCOCK Tribune Freeport Reporter dmaycock@tribunemedia.net THE Government is reviewing draft legislation for a visa product aimed at attracting the highly-skilled workers and companies it needs to realise its Grand Bahama technology hub ambitions.

The prime minister, opening the second Grand Bahama Technology Summit yesterday, confirmed that his administration viewed the creation of a “BH1B visa” as critical to revamping Immigration policy so that it was attractive to technology investors.

Dr Hubert Minnis, signalling the Government’s intent to develop a technologysavvy local workforce, also signed a Memorandum of Understanding (MoU) with technology giant, CISCO Systems, to train thousands of Bahamians to staff the fledgling technology hub.

“My government is revamping our Immigration policy and procedures to support our desire to attract new enterprises to our shores,” the prime minister said. “We will make our Immigration policy more attractive for investment. We are now considering draft legislation to create a special BH1B visa in keeping with recommendations made by the Grand Bahama Technology Steering Committee.”

The so-called “BH1B Visa”, taking a similar name to the US H-1B visa, was recommended by the Grand Bahama Technology Steering Committee as a key incentive for enticing technology companies to the island since - when paired with the Commercial Enterprises Act - it would facilitate the entry of the skilled workforce they need.

The committee’s January 2018 report, which set out the broad legislative, infrastructure and enabling environment required to establish Grand Bahama as a potential “technology hub”, identified the BHIB visa’s creation as being among the “immediate opportunities”

PRIME Minister Dr Hubert Minnis addresses the GB Technology Summit yesterday.

for The Bahamas.

It was viewed as a way to target US technology companies that are heavily reliant on the H-1B visa workers impacted by Donald Trump’s recent Immigration crackdown. This has been making it difficult for persons to apply for, or renew, these visas, which facilitate the hiring of specialist foreign workers by US companies, and entry of persons with advanced degrees.

Such workers are in high demand among technology companies, and the Committee’s thinking appears to be that The Bahamas offers a convenient offshore base in close proximity to the US should such firms have to relocate H-1B personnel or themselves.

“The current cap of H1B visas in the US represents an opportunity for The Bahamas to attract skilled workers and the companies that want to hire them. This could be a great opportunity to re-locate company teams/ divisions to the Bahamas who have H-1B visas that are set to expire soon,” the committee’s report enthused.

However, it immediately noted that Immigration and work permit reforms would be required to facilitate such an effort. The committee suggested that H-1B permit holders “be fast-tracked and receive comparable Bahamas work permits”, provided such applications are sponsored by a company domiciled in this nation.

“The Government may want to consider creating a new type of work permit to specifically serve as a fast-track replacement for holders of a current or recently expired (within 12 months, or longer as per Immigration guidelines) of US H1B Visas,” the report suggested.

“The Government will also need to create corresponding spousal/partner and dependents residency permits for holders of H-1B Visas.

Spouses/partners should not get work permit status unless they are also employed by the company in a technical area.”

Speaking to the potential benefits, the committee added: “This would represent an immediate positive

impact to the Grand Bahama economy, and would primarily benefit the local economy with respect to opportunities for temporary and permanent housing, transportation, entertainment, restaurants, retail and education, as well as initially provide opportunities for non-technical jobs. There are hundreds of US companies and thousands of highly skilled workers that can be recruited and re-located in a matter of months”.

Dr Minnis, meanwhile, said an e-government transformation has begun to increase and integrate government online services to provide more efficient and effective service to Bahamians and residents.

“These include providing a single online window facility through which multiple services can be accessed; interoperability for transporting data securely between relevant agencies and clients; data ownership; and retraining for citizens and public officers,” the prime minister explained.

Next year, Dr Minnis said that Dell, one of the most recognised technology leaders in the world, will host one of its technology conferences in New Providence.

“These are the types of relationships, based in technology, that validate our drive and determination to reap multiple benefits. We are embarked on a dynamic new era of innovation and transformation in The Bahamas,” he said.

Dr Minnis assured Bahamians that government is pro-actively embracing the vast benefits of technology to boost growth and productivity, as well as employment and entrepreneurship.

Meanwhile, the MoU with CISCO, according to Dr Minnis, sets in motion the implementation for the provision of a framework for the Office of the Prime Minister, along with the Ministry of Education, for educational opportunities for Bahamians through the Cisco Networking Academy.

Signing on behalf of CISCO was Jeff Campbell, vice president of government affairs at CISCO Systems.

Minister of Education Jeff Lloyd and Harcourt Brown, permanent secretary in the Office of the Prime Minister, signed for the government.

“We welcome Cisco Systems and the Cisco Networking Academy as learning partners,” Dr Minnis told hundreds

gathered for the summit.

“We are pleased to execute a memorandum of understanding with Cisco Systems… to explore the development of educational opportunities for Bahamians,” the prime minister said.

Dr Minnis also repeated earlier pronouncements that starting in September 2019 his administration will make the University of The Bahamas, including its ICT programmes, free of charge to Bahamians who qualify for admission.

He added: “And to show how serious we are about technology, all those coming to UB, in addition to attending the university free of charge, will be given $500 per month in assistance, and that only applies to those from the Family Islands.”

Dr Minnis stressed that under his administration Bahamians who qualify will have an opportunity for free tertiary education, including ICT qualifications. He indicated that the government’s mission is for the country to become a regional leader in information and communication technologies, and noted that at a conference week ago in Dubai, The Bahamas became a member of the International Telecommunications (ITU) Council.

“The ITU falls under the United Nations. It is the world’s highest body with responsibility for policymaking in ICT, covering three main areas: radio communications, standardisation and development,” he said.

“The Bahamas looks forward to membership in the ITU, which we believe will result in furthering our national goals in the ICT sector, while also lending our voice to speak for the region.

We were pleased to have been endorsed by the Caribbean Telecommunications Union in our successful bid.”

He is confident the country’s membership on the council will be beneficial for the region and for The Bahamas as government finds ways to improve the lives of citizens and residents.

PUBLIC HOSPITALS AUTHORITY ADVERTISEMENT

VACANCY

TECHNICAL SERVICES OFFICER 1 CORPORATE OFFICE The Public Hospitals Authority invites applications from suitably qualified Bahamians for the post of Technical Services Officer1 in the Information Communication Technology Operations/Infrastructure Development Unit, Public Hospitals Authority, Corporate Office.

JOB SUMMARY: Provide technical support to end users; trouble-shoot IT problems; repair personal computers and monitor network systems and platforms. Perform routine daily operations and backups independently.

KEY ACCOUNTABILITIES FOR THIS ROLE INCLUDE BUT ARE NOT LIMTED TO THE FOLLOWING: 1. Installing, maintaining and upgrading operating systems and applications; 2. Assisting with planning, managing and coordinating work assignments for technical staff; 3. Performing essential network functions; configures network users, crates and maintains user profiles and other basic functions; 4. Assisting users with AS400 system utilities and maintaining program libraries; 5. Assisting with coordinating and providing end user training; 6. Ensuring compliance with security protocols and integrity of systems; 7. Preparing managerial reports for distribution to functional department; 8. Researching current and new technologies and recommending business enhancing processes and procedures; 9. Maintaining logs and operation procedures manuals (Linus/Unix back ground a plus); EDUCATIONAL/ COMPETENCY REQUIREMENTS • Bachelors degree in Information Technology or equivalent; • Certification in Microsoft Certified System Administrator (MCSA), Certified Cisco Network Associate (CCNA) or A+ Certification or equivalent with five (5) years experience; The Technical Services Officer 1 will report to the Information Communication Technology Operations Consultant/Infrastructure development.

Letter of application and curricula vitae should be submitted to the Director of Human Resources, Corporate Office, Public Hospitals Authority, 3rd Terrace West, Centreville; jobs@phabahamas.org or P.O. Box N-8200, Nassau, Bahamas no later than 19th November, 2018.

THE TRIBUNE

Thursday, November 15, 2018, PAGE 7

TOP OFFICIAL CONFIDENT OF BUSINESS LICENCE ‘HAPPY MEDIUM’

FROM PAGE ONE

exactly is required,” the Financial Secretary told this newspaper. “We’re confident after meeting with BICA last week that we’ll be able to come with some guidelines that will meet our requirements and not be very onerous on businesses that will have to comply with the regulations.”

Mr Johnson said concerns over the business licence regulations, which were enacted largely unnoticed by the private sector during the 2018-2019 budget, were only brought to the Government’s attention “recently”.

He suggested, though, that sufficient time remained to achieve the “balance” required to ensure the Government collects all due revenues without over-burdening the Bahamian private sector with costly and timeconsuming bureaucracy.

“I feel fairly confident, especially after consultations with BICA, that we have a happy medium for the time being,” Mr Johnson told Tribune Business.

“We will continue to dialogue as we move into the new budget cycle as to how we can enhance and adjust it so that we get sufficient insight into businesses and the returns filed by taxpayers reflect what is happening in their business.

We look forward to working

with BICA to making that happen.”

The Government, in a bid to ensure it collects every due cent in business licence fee revenue, wants companies with an annual turnover of $10m or more to provide audited financial statements that will confirm their prior year earnings.

For those businesses earning between zero to $10m, the regulations stipulate that “a financial statement” confirming their turnover must be supplied to the Department of Inland Revenue (DIR).

This, though, must also be accompanied by “a certified bank statement” covering each bank account held in the business’s name and any other accounts “that are used in transactions” on its behalf.

Mr Johnson yesterday said these extra measures were necessary because accounting systems, technology and processes in many companies - especially small and medium-sized enterprises (SMEs) - had failed to keep pace with The Bahamas’ increasingly modern tax system and VAT-led reforms.

He explained: “What has been the experience is the level of bookkeeping and accounting by persons in the business community has previously not had to comply with taxation standards; it’s all been for their own consumption.

“Once we implemented the various tax reforms that called for more reporting, we didn’t necessarily see the level of accounting required from those businesses that were impacted. They did their own books, and were not engaging accountants.

“That spoke to the quality of the returns we were getting,” Mr Johnson continued, “and when we put you to the test by audit a lot of companies were lacking.

As our tax system evolves, it will be incumbent upon the entire business community to ensure they’re making use of basic software to keep records for the Government and themselves, and invest in ensuring they have the right bookkeeping practices in their business.

That’s going to be even more important as we go forward.”

The top Ministry of Finance official said that while VAT returns provided a useful “cross-check” on business licence filings, the former did not capture transactions such as those involving real estate, meaning this could not be relied upon 100 percent.

“We need, and are encouraging, businesses themselves - small businesses - to get into the habit of keeping proper books, not just for the Government but for themselves, and if they find themselves in the

Bahamas’ WTO membership is ‘no fait accompli’ FROM PAGE ONE to belong.

Belonging should have benefits. That is the job of negotiation; to ensure that whatever we negotiate has meaningful benefit to The Bahamas.

That’s my mindset. I’m not tied to any outcome. I am tied to to ensuring the best negotiations to produce the best outcomes for The Bahamas.”

Mr Laing described this nation’s decision to accede to full WTO membership as one of the “‘most strategic the Government has ever made”.

“Almost every other decision made was because we were asked or forced to do something,” he said. “We started this in 2001. The average journey is nine years.”

The Minnis Cabinet is pushing for The Bahamas to become a full World Trade Organisation (WTO) member by 2019, with the Government set to lose $40m in revenue by eliminating or reducing import tariffs under its present offers.

“I believe we should scrutinise this whole process, get as much information as we can and hold all of us accountable in this process.

I am absolutely committed to going to Geneva to

negotiate agreed positions, meaning that we have all agreed whee the red line is we will not cross,” said Mr Laing.

He added that once The Bahamas joins the WTO,

local industries will have at least a three to five-year adjustment period. The WTO has provisions to allow local businesses to make the necessary price adjustments.

position of being audited they have sufficient information to defend the filing they’ve made,” Mr Johnson told Tribune Business.

Michael Maura, the Bahamas Chamber of Commerce

and Employers Confederation’s (BCCEC) chairman, told Tribune Business on Tuesday that while legitimate businesses appreciated the Government’s efforts to crack down on tax dodgers

and cheats, the enhanced business licence reporting requirements threatened to further over-burden the private sector and Department of Inland Revenue with unnecessary bureaucracy.

PAGE 10, Thursday, November 15, 2018

THE TRIBUNE

POSTAL SERVICE’S RED INK FOR 12TH YEAR AS LETTER MAIL DROPS

Fidelity Bank (Bahamas) Limited

(Incorporated under the laws of the Commonwealth of The Bahamas) Consolidated Statement of Financial Position (Unaudited) As of 30 September 2018 (Expressed in Bahamian dollars)

ASSETS Cash on hand and at banks Investment securities Loans and advances to customers Other assets Investments in joint ventures Property, plant and equipment

2018 $

2017 $

143,084,294 83,056,679 423,805,555 5,315,056 12,902,532 10,729,089

103,858,986 88,496,767 408,644,237 2,599,954 13,247,977 10,922,222

Total assets

678,893,205

627,770,143

LIABILITIES Deposits from customers Accrued expenses and other liabilities Debt securities

549,905,147 1,221,333 34,670,150

493,516,569 1,004,008 43,932,963

Total liabilities

585,796,630

538,453,540

EQUITY Capital – ordinary shares Capital – preference shares Revaluation reserve Reserve for credit losses Retained earnings

20,380,694 15,000,000 299,536 57,416,345

20,363,328 15,000,000 373,659 4,090,372 49,489,244

Total equity

93,096,575

89,316,603

678,893,205

627,770,143

Total liabilities and equity

Consolidated Statement of Comprehensive Income (Unaudited) For the Nine Months Ended 30 September 2018 (Expressed in Bahamian dollars) 9 Months Ended 30 September 30 September 2018 2017 $ $

3 Months Ended 30 September 2018 $ INCOME Interest income Bank deposits, loans and advances Investment securities

16,144,464 900,307

46,965,682 2,681,582

42,886,069 2,619,913

17,044,771

49,647,264

45,505,982

Interest expense

(3,075,416 )

(9,865,973 )

(11,397,556 )

Net interest income

13,969,355

39,781,291

34,108,426

2,127,761 60,469 241,610

2,072,819 60,469 246,519

14,594,259

42,211,131

36,488,233

EXPENSES Salaries and employee benefits General and administrative Provision for loan losses Depreciation and amortisation

3,049,019 2,695,758 1,463,187 360,860

8,621,745 8,580,332 7,318,317 1,095,577

7,285,318 7,598,080 6,060,650 1,078,337

Total expenses

7,568,824

25,615,971

22,022,385

Operating profit

7,025,435

16,595,160

14,465,848

118,944

1,515,751

1,652,224

7,144,379

18,110,911

16,118,072

28,805,104

28,802,999

28,793,927

0.24

0.60

0.56

Fees and commissions Rental income Other income

744,192 20,156 (139,444 )

Total income

Share of profits of joint ventures Net income and total comprehensive income Weighted average number of ordinary shares outstanding Earnings per share

Consolidated Statement of Changes in Equity (Unaudited) For the Nine Months Ended 30 September 2018 (Expressed in Bahamian dollars) Capital – Ordinary Shares $

Capital – Preference Shares $

Revaluation Reserve $

As of 31 December 2017

20,363,328

15,000,000

373,659

-

-

-

20,363,328

15,000,000

373,659

Net income

-

-

Total comprehensive income

-

-

Depreciation transfer

-

-

Appropriation for credit losses

-

-

Total transfers

-

-

17,366

-

-

-

48,563

65,929

-

-

-

-

(483,493)

(483,493 )

Effects of changes in accounting policies As of 1 January 2018

Reserve for Credit Losses $

Retained Earnings $

Total $

4,090,372

49,489,244

89,316,603

(4,090,372)

(2,606,335 )

(6,696,707 )

-

46,882,909

82,619,896

-

-

18,110,911

18,110,911

-

-

18,110,911

18,110,911

-

74,123

-

-

-

-

-

74,123

-

Comprehensive income

Transfers (74,123 ) (74,123 )

Transactions with owners Issuance of ordinary shares Dividends – preference shares Dividends – ordinary shares Total transactions with owners As of 30 September 2018 Dividends per share

-

-

-

-

(7,216,668

(7,216,668

17,366

-

-

-

(7,651,598)

(7,634,232 )

20,380,694

15,000,000

321,187

-

57,416,345

93,096,575

0.25

0.32

Consolidated Statement of Changes in Equity (Unaudited) For the Year Ended 31 December 2017 (Expressed in Bahamian dollars) Capital – Ordinary Shares $

Capital – Preference Shares $

Revaluation Reserve $

Reserve for Credit Losses $

Retained Earnings $

Total $

20,333,243

15,000,000

392,251

3,855,116

43,981,810

83,562,420

Net income

-

-

-

-

21,053,528

21,053,528

Total comprehensive income

-

-

-

-

21,053,528

21,053,528

Depreciation transfer

-

-

Appropriation for credit losses

-

-

Total transfers

-

-

30,085

-

-

-

79,315

109,400

-

-

-

-

(975,410)

(975,410 )

As of 1 January 2017 Comprehensive income

Transfers (18,592 ) (18,592 )

18,592

-

235,256

-

(235,256)

-

235,256

(216,664)

-

Transactions with owners Issuance of ordinary shares Dividends – preference shares Dividends – ordinary shares Total transactions with owners As of 31 December 2017 Dividends per share

-

-

-

-

(14,433,335)

(14,433,335 )

30,085

-

-

-

(15,329,430)

(15,299,345 )

20,363,328

15,000,000

373,659

4,090,372

49,489,244

89,316,603

0.50

0.65

Notes to the Consolidated Financial Statements (Unaudited) For the Nine Months Ended 30 September 2018 (Expressed in Bahamian dollars) Capital Management The objectives of Fidelity Bank (Bahamas) Limited (the Bank) when managing capital, which comprises total equity on the face of the consolidated statement of financial position, are: 

To comply with the capital requirements set by the Central Bank of The Bahamas (the Central Bank).



To safeguard the Bank’s ability to continue as a going concern so that it can continue to provide returns for its shareholders and benefits for other stakeholders; and



To maintain a strong capital base to support the development of its business.

Capital adequacy and the use of regulatory capital are monitored by the Bank’s management, employing techniques designed to ensure compliance with guidelines established by the Central Bank, including quantitative and qualitative measures. The required information is filed with the Central Bank on a quarterly basis.

The Central Bank, the Bank’s principal regulator, requires that the Bank maintains a ratio of total regulatory capital to risk-weighted assets at or above a minimum of 14.00%. For the nine months ended 30 September 2018 and the year ended 31 December 2017, the Bank complied with all of the externally imposed capital requirements to which it is subject.

WASHINGTON Associated Press THE US Postal Service yesterday reported a financial loss for the 12th straight year, citing declines in mail volume and the costs of its pension and health care obligations, as the agency braces for an upcoming report ordered by President Donald Trump to address its “unsustainable financial path”.

Postal officials said they expected next year’s finances to be helped by a strong holiday season of package deliveries and a just-approved increase to the price of its first-class stamp, from 50 cents to 55 cents. It takes effect in January.

But they pleaded anew for help from Congress to relieve the Postal Service of onerous health and pension prepayments and for help from regulators to grant the agency more flexibility to increase prices so it can return to profitability.

“Absent legislative and regulatory change, we cannot generate enough revenue or cut enough costs to pay off our bills,” said Postmaster General and CEO Megan J Brennan. “The flawed business model imposed by law continues to be the root cause of our financial instability.”

The Postal Service reported a loss of $3.9bn for the budget year that ended Sept 30, compared with a $2.7bn loss the year before.

A nearly seven percent increase in package delivery was unable to offset drop-offs in letter mail, which makes up more than 70 percent of total revenue.

First-class mail volume fell by roughly 2.1 billion pieces, or 3.6 percent, as people in the digital age rely more on email for online bill payments.

Revenue was $70.7bn, compared with $69.6bn last year, but there were higher transportation and labour costs from delivering more packages.

Trump in recent months has asserted without evidence that the Postal Service is “losing a fortune” and reporting annual losses because it is not charging higher shipping rates for online retailers such as Amazon, whose founder, Jeff Bezos, owns The Washington Post. In April, Trump issued an executive order demanding a review of the Postal Service’s finances. That report, led by the Treasury Department and originally due in August, was expected to be released in the coming weeks.

Trump has often labeled the Post “fake news” after the newspaper reported unfavourable developments during his campaign and presidency and highlighted the Bezos connection by calling it the “Amazon Washington Post”. On Sunday, Rep Adam Schiff, D-Calif, the expected next chairman of the House intelligence committee, told Axios that Democrats will seek to

investigate whether Trump sought to punish Bezos by pressuring the Postal Service to raise Amazon’s rates.

Package delivery has been a bright spot although its growth is slowing, and regulators have found its contract with Amazon to be profitable.

The Postal Service, an independent agency, is trying to stay financially afloat as it seeks to invest billions in new delivery trucks to get packages more nimbly to American homes.

Regulators this week approved the Postal Service’s request to increase the price of its first-class stamp by five cents. The ten percent increase to the cost of mailing a 1-ounce letter is the biggest since 1991. The price of each additional ounce will drop from 21 cents to 15 cents.

The rate increase takes effect on Jan 27.

To become financially stable, the Postal Service has been urging Congress to provide it relief from the mandate to prefund retiree health benefits. Legislation in 2006 required the Postal Service to fund 75 years’ worth of retiree health benefits, something that neither the government nor private companies are required to do. It is also seeking flexibility from regulators to increase stamp rates above the rate of inflation.

To avert bankruptcy, the post office has defaulted on the multibillion-dollar health prepayments each year since 2012.

THE TRIBUNE

Thursday, November 15, 2018, PAGE 11

Macy’s charges into the holiday shopping season like a boss NEW YORK Associated Press MACY’S is heading into the crucial holiday season firing on all cylinders, logging its fourth consecutive quarter of sales growth at existing locations and getting strong reactions from customers both online and in its stores.

The company also lifted its expectations for annual earnings yesterday.

Department stores like Macy’s are under intense pressure to reinvent themselves with so many shoppers migrating online or just spending money elsewhere, choosing to be pampered at a spa or traveling.

Fortunately, Macy’s and other retailers are doing so in the midst of a strong job market and robust economy, giving them more breathing room with shoppers feeling confident about splurging once in a while.

Macy’s, along with other stores, also have benefited from the misfortunes of others. Toys R Us and BonTon have liquidated. Sears Holdings Corp, which operates Sears and Kmart stores, filed Chapter 11 bankruptcy last month. And JC Penney is floundering. Macy’s says it’s seeing increased business in the Midwest where

Bon-Ton used to operate and it’s aggressively courting its customers.

But Macy’s focus is solidly on Macy’s. It’s been expanding its store label brands to differentiate itself from rivals. It’s also adding more of its off-price Backstage stores and putting into place technology that allows customers to skip the line at the register.

It’s rolling out multiple layers of technology to offer people something they can’t get online, such as the use of virtual reality in its furniture and cosmetics sections.

The company’s revamped loyalty card program has helped keep its best customers engaged.

And it’s trying to become more nimble.

Macy’s acquired Story, a concept store, which rotates themes and what it sells every few months. It brought Story

founder Rachel Shechtman aboard to help create a more vibrant shopping experience at Macy’s.

And in a more radical manoeuvre, the company is shrinking in order to grow.

After closing more than 100 stores over the past several years, it’s going to see how cluster of smaller stores work with today’s customers.

The company released details of the new footprint to the Wall Street Journal earlier this week.

CEO Jeff Gennette told industry analysts Wednesday that it’s testing four different models for the new “neighbourhood stores” format and promised to share details early next year.

“Macy’s recipe for success is e-commerce, healthy stores and a great mobile experience that ties it all together,” Gennette said, noting that the department

store will hit a billion dollars in mobile sales this year.

It’s still early, but industry watchers believe Macy’s is on the right track in this altered retail landscape.

Neil Saunders, managing director of GlobalData Retail, said consumer tracking data supports the story of an ongoing recovery.

At this time last year, 59 percent of Macy’s customers rated their shopping

experience as good or very good, Saunders said, based on its research. This year that figure has risen to 67 percent, Saunders said. He wrote that his data also show that for the first time in over eight years, the number of people saying they will visit Macy’s to do holiday shopping has risen.

“Along with the good sales numbers, these pieces of evidence underline that Macy’s

is succeeding in creating a stronger appeal,” he wrote.

Macy’s Inc reported thirdquarter profits of $62m, or 20 cents per share. Per-share earnings adjusted for onetime gains and losses were 27 cents, or 13 cents better than industry analyst expected, according to a survey by Zacks Investment Research.

The Cincinnati chain’s revenue of $5.4bn also beat expectations.

THIRD QUARTER INTERIM FINANCIAL REPORT FamGuard Corporation Limited Consolidated Statement of Financial Position As at 30 September 2018 Unaudited

(Expressed in BSD) 30 September 2018

31 December 2017

$

$

ASSETS Fair value through profit or loss

$12,336,624

$13,141,670

Available-for-sale

12,394,845

14,661,520

Held-to-maturity

181,038,918

176,196,403

Loans Total financial investment assets Cash and bank balances

85,526,297

80,030,193

291,296,684

284,029,786

12,719,240

16,881,642

Reinsurance assets

7,088,883

6,520,948

Reinsurance recoveries

6,796,499

7,251,681

Premiums receivable, net

6,671,205

5,561,421

Receivables and other assets, net

6,478,042

4,825,917

Intangible assets, net

25,000

100,000

37,338,612

36,803,313

$368,414,166

$361,974,707

$213,662,092

$207,261,508

19,099,637

18,072,481 225,333,989

Property, plant and equipment, net TOTAL ASSETS LIABILITIES AND EQUITY LIABILITIES: Reserves for future policyholders' benefits Other policyholders' funds Policy liabilities

232,761,729

Payables and accruals

13,980,161

12,983,280

Total liabilities

246,741,890

238,317,269

EQUITY: Preference shares

5,000,000

10,000,000

Ordinary shares

2,000,000

2,000,000

Share premium

10,801,080

10,801,080

Revaluation reserve

17,735,860

19,191,952

Retained earnings

46,518,613

43,083,348

Equity attributable to owners of the Parent

82,055,553

85,076,380

Non-controlling interests

39,616,723

38,581,058

Total equity

121,672,276

123,657,438

$368,414,166

$361,974,707

TOTAL LIABILITIES AND EQUITY

FamGuard Corporation Limited Consolidated Statement of Profit or Loss For the nine months ended 30 September 2018 Unaudited

(Expressed in BSD) 9 MONTHS to 30 September 2018 $ INCOME

$ $73,752,594

Net premium income Annuity & Other deposits Net premium income and annuity deposits Investment income Other operating income Total income BENEFITS AND EXPENSES Net Policyholders' benefits Operating expenses Commissions Total benefits and expenses PROFIT PROFIT ATTRIBUTABLE TO: Ordinary shareholders Preference shareholders Non-controlling interests Earnings per ordinary share

9 MONTHS to 30 September 2017

$68,988,861

10,998,677

5,481,383

84,751,271

74,470,244

11,135,721

10,338,455

1,699,365

1,266,156

97,586,357

86,074,855

61,572,714

52,054,173

19,004,662

18,180,395

10,354,927 90,932,303

8,765,308 78,999,876

6,654,054

7,074,979

$5,635,263

$6,296,695

319,007

312,500

699,784

465,784

$6,654,054 $0.57

$7,074,979 $0.63

The complete set of unaudited interim consolidated financial statements is available on the Company’s website at: www.famguardbahamas.com FamGuard Corporation Limited is the parent holding company of: Family Guardian Insurance Company Limited; BahamaHealth Insurance Brokers Limited; FG Insurance Agents & Brokers Limited; FG Capital Markets Limited; FG Financial Limited

PAGE 12, Thursday, November 15, 2018

THE TRIBUNE

MAY WINS CABINET BACKING FOR BREXIT DEAL BUT PITFALLS REMAIN LONDON Associated Press IN A HARD-WON victory, British Prime Minister Theresa May persuaded her fractious Cabinet to back a draft divorce agreement with the European Union today, a decision that triggers the final steps on the long and rocky road to Brexit.

But she faces a backlash from her many political opponents and a fierce battle to get the deal through Parliament as she tries to orchestrate the UK’s orderly exit from the EU. May hailed the Cabinet decision as a “decisive step” toward finalising the exit deal with the EU within days. It sets in motion an elaborate diplomatic choreography of statements and meetings.

EU chief negotiator Michel Barnier declared

BRITISH Prime Minister Theresa May leaves 10 Downing Street heading to Parliament for Prime Minister’s questions in London, yesterday. May had to persuade her divided Cabinet that they have a choice between backing a draft Brexit deal with the European Union or plunging the UK into political and economic uncertainty.

Photo: Matt Dunha/AP

there had been “decisive progress” — the key phrase signaling EU leaders can convene a summit to approve the deal, probably later his month.

Crucially, Barnier said that “we have now found a solution together with the UK to avoid a hard border on the island of Ireland.”

But the agreement, hammered out between UK and EU negotiators after 17 months of what Barnier called “very intensive” talks, infuriated pro-Brexit lawmakers in May’s Conservative Party, who said it would leave Britain a vassal state, bound to EU rules that it has no say in making.

Those “hard Brexit” voices include several ministers in May’s Cabinet. Emerging from the five-hour meeting at 10 Downing St, May said the Cabinet talks had been “long, detailed and impassioned”. She said there had been a “collective decision”

NOTICE IN THE ESTATE of KENNETH JOSHUA ROLLE late of the Southern District of the Island of New Providence, one of the Islands of The Commonwealth of The Bahamas, deceased.

Notice is hereby given that all persons having any claim or demands against the above named Estate are required to send their names, addresses and particulars of the same duly certified in writing to the undersigned on or before the 6th day of December A.D., 2018, and if required, prove such debts or claims, or in default be excluded from any distribution; after the above date the assets will be distributed having regard only to the proved debts or claims of which the Administrator shall then have had Notice.

And Notice is hereby given that all persons indebted to the said Estate are requested to make full settlement on or before the aforementioned date.

MICHAEL A. DEAN & CO., Attorneys for the Executors Alvernia Court, 49A Dowdeswell Street P.O. Box N-3114 Nassau, The Bahamas

to back the deal, though she did not say whether it was unanimous.

“I firmly believe, with my head and my heart, that this is a decision which is in the best interests of the United Kingdom,” she said.

In a warning to her opponents, May said the choice was between her deal, “or leave with no deal; or no Brexit at all”.

If the EU backs the deal, as it likely will, it must be approved by Britain’s Parliament. That could be a challenge, since pro-Brexit and pro-EU legislators alike are threatening to oppose it.

Pro-Brexit lawmakers say the agreement will leave Britain tethered to the EU after it departs and unable to forge an independent trade policy.

On the other side of the argument, pro-EU legislators say May’s deal is worse than the status quo and the British public should get a new vote on whether to leave or to stay.

In between those two camps are May’s supporters, who argue that the deal is the best on offer, and the alternatives are a chaotic “no-deal” Brexit that would cause huge disruption to people and businesses, or an election that could see the Conservative government replaced by the left-of-centre Labour Party.

Failure to secure Cabinet backing would have left May’s leadership in doubt and the Brexit process in chaos, with exit day just over four months away, on March 29.

She still faces the threat of a coup attempt from her own party.

Under Conservative rules, a no-confidence vote in the leader is triggered if 15 percent of party lawmakers write letters requesting one. The required number currently stands at 48 lawmakers; only the lawmaker who collects the letters knows for sure how many have been submitted.

Pro-Brexit Conservative lawmaker Conor Burns said he wanted a change of policy rather than a new leader, but added: “There comes a point where if the PM is insistent that she will not change the policy, then the only way to change

the policy is to change the personnel.”

The main obstacle to a withdrawal agreement has long been how to ensure there are no customs posts or other checks along the border between the UK’s Northern Ireland and EU member Ireland after Brexit. Britain and the EU agree that there must be no barriers that could disrupt businesses and residents on either side of the border and undermine Northern Ireland’s hard-won peace process.

The solution in the agreement involves a “single EU-UK customs territory”, to eliminate the need for border checks.

As part of the agreement, the UK will agree to follow EU rules in areas like animal welfare, environmental standards and workplace protections — another source of anger for Brexiteers, who say Britain should be free to set its own rules.

The solution is intended to be temporary — superseded by a permanent trade deal. But pro-Brexit politicians in Britain fear it may become permanent, hampering Britain’s ability to strike new trade deals around the world.

Leading Euroskeptic Conservative legislator Jacob Rees-Mogg urged his colleagues to vote against the deal, saying it “will lock us into an EU customs union and EU laws. This will prevent us pursuing a UK trade policy based around our priorities and economy”.

The draft agreement also mentions potential “Northern Ireland-specific regulatory alignment” to avoid a hard border.

Northern Ireland’s Democratic Unionist Party, which props up May’s minority government, insists it will oppose any deal that leaves Northern Ireland subject to different rules to the rest of the UK after Brexit.

“We could not as unionists support a deal that broke up the United Kingdom,” DUP leader Arlene Foster said.

NOTICE To Beneficiaries and Owners of Canada life Assurance Company, Universal Life Insurance Policies (ULP) written

by Canada Life, before 31 December 2003 and whose policies may have lapsed and death benefit not paid since 27th February 2004 under a new administrator.

Your savings in the Investment Account Value (IAV) may have disappeared or has been declared to be zero dollar balance, and you may have never received a Statement of Investment Value (SIAV) or Monthly statement declaring minimum 3-6% rate of interest paid. You may be currently paying increased premiums, your IAV may have no savings because of the new unilateral Mortality charges and maybe overdrawn.

Contact support group: Tele 457-4379 or e-mail dorcmcphee@hotmail.com.

THE TRIBUNE

Thursday, November 15, 2018, PAGE 13

Next generation of biotech food heading for grocery stores WASHINGTON Associated Press THE NEXT generation of biotech food is headed for the grocery aisles, and first up may be salad dressings or granola bars made with soybean oil genetically tweaked to be good for your heart.

By early next year, the first foods from plants or animals that had their DNA “edited” are expected to begin selling. It’s a different technology than today’s controversial “genetically modified” foods, more like faster breeding that promises to boost nutrition, spur crop growth, and make farm animals hardier and fruits and vegetables last longer.

The US National Academy of Sciences has declared

gene editing one of the breakthroughs needed to improve food production so the world can feed billions more people amid a changing climate. Yet governments are wrestling with how to regulate this powerful new tool. And after years of confusion and rancor, will shoppers accept geneedited foods or view them as GMOs in disguise?

“If the consumer sees the benefit, I think they’ll embrace the products and worry less about the technology,” said Dan Voytas, a University of Minnesota professor and chief science officer for Calyxt Inc, which edited soybeans to make the oil heart-healthy.

Researchers are pursuing more ambitious changes: Wheat with triple the usual

(An International Business Company)

LIQUIDATOR’ S NOTICE

COMPLETION OF WINDING-UP I, Tess Bruning Liquidator of NEMIRA INVESTMENTS LIMITED, hereby nolify you that pursuant to Section 138 (6) of the International Business Companies Act, 2000, the winding up of the Company have been compleled.

Daled under Our Hand and the Seal of the Company this 14th day of November 2018.

LEGAL NOTICE INTERNATIONAL BUSINESS COMPANIES, ACT 2000 NOTICE IS HEREBY GIVEN in accordance with Section 138 (4) of the International Business Companies Act, 2000 as follows:a) GADI GLOBAL LTD. is in dissolution under the provisions of the International Business Companies Act, 2000. b) The dissolution of the said Company commenced on 11th October 2018 when its Articles of Dissolution were submitted to and registered by the Registrar General. c) The Liquidator of the said Company is Amicorp Bahamas Management Limited, whose address is 3rd Floor, Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-4865, Nassau, Bahamas.

AMICORP BAHAMAS MANAGEMENT LIMITED Bahamas Financial Centre, 3rd Floor Shirley & Charlotte Streets P.O. Box N-4865 Nassau, Bahamas

NOTICE Notice is hereby given that JEFF SCHUYLER HONORE of #47 Guild Crest Ave., Carmichael Road, Nassau, The Bahamas is applying to the Minister responsible for nationality and Citizenship, for Registration/ Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written signed statement of the facts within twenty-eight days from the 8th November, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147 Nassau, The Bahamas.

fiber, or that’s low in gluten.

Mushrooms that don’t brown, and better-producing tomatoes. Drought-tolerant corn, and rice that no longer absorbs soil pollution as it grows. Dairy cows that don’t need to undergo painful dehorning, and pigs immune to a dangerous virus that can sweep through herds.

Scientists even hope gene editing eventually could save species from being wiped out by devastating diseases like citrus greening, a so far unstoppable infection that’s destroying Florida’s famed oranges.

First they must find genes that could make a new generation of trees immune.

“If we can go in and edit the gene, change the DNA sequence ever so slightly by one or two letters, potentially we’d have a way to defeat this disease,” said Fred Gmitter, a geneticist at the University of Florida Citrus Research and Education Center, as he examined diseased trees in a grove near Fort Meade.

GENETICALLY MODIFIED OR EDITED, WHAT’S THE DIFFERENCE? Farmers have long genetically manipulated crops and animals by selectively breeding to get offspring with certain traits. It’s time-consuming and can bring trade-offs. Modern tomatoes, for example, are larger than their pea-sized wild ancestor, but the generations of cross-breeding made them more fragile and altered their nutrients.

GMOs, or genetically modified organisms, are plants or animals that were mixed with another species’ DNA to introduce a specific trait — meaning they’re “transgenic”. Best known are corn and soybeans mixed with bacterial genes for built-in resistance to pests or weed killers.

Despite international scientific consensus that GMOs

are safe to eat, some people remain wary and there is concern they could spur herbicide-resistant weeds.

Now gene-editing tools, with names like CRISPR and TALENs, promise to alter foods more precisely, and at less cost, without necessarily adding foreign DNA. Instead, they act like molecular scissors to alter the letters of an organism’s own genetic alphabet.

The technology can insert new DNA, but most products in development so far switch off a gene, according to University of Missouri professor Nicholas Kalaitzandonakes.

Those new Calyxt soybeans?

Voytas’ team inactivated two genes so the beans produce oil with no heart-damaging trans fat and that shares the famed health profile of olive oil without its distinct taste.

The hornless calves? Most dairy Holsteins grow horns that are removed for the safety of farmers and other cows. Recombinetics Inc. swapped part of the gene that makes dairy cows grow horns with the DNA instructions from naturally hornless Angus beef cattle.

“Precision breeding”, is how animal geneticist Alison Van Eenennaam of the University of California, Davis, explains it. “This isn’t going to replace traditional breeding”, but make it easier to add one more trait.

RULES AREN’T CLEAR The Agriculture Department says extra rules aren’t needed for “plants that could otherwise have been developed through traditional breeding”, clearing the way for development of about two dozen geneedited crops so far.

In contrast, the Food and Drug Administration in 2017 proposed tighter, drug-like restrictions on gene-edited animals. It promises guidance sometime next year on exactly how it will proceed.

Because of trade, international regulations are “the most important factor in whether genome editing technologies are commercialized”, USDA’s Paul Spencer told a meeting of agriculture economists.

Europe’s highest court ruled last summer that existing European curbs on the sale of transgenic GMOs should apply to gene-edited foods, too.

But at the World Trade Organization this month, the US joined 12 nations including Australia, Canada, Argentina and Brazil in urging other countries to adopt internationally consistent, science-based rules for gene-edited agriculture.

ARE THESE FOODS SAFE? The biggest concern is what are called off-target edits, unintended changes to DNA that could affect a crop’s nutritional value or an animal’s health, said Jennifer Kuzma of the Genetic Engineering and Society Center at North Carolina State University.

Scientists are looking for any signs of problems. Take the hornless calves munching in a UC-Davis field. One is female and once it begins producing milk, Van Eenennaam will test how similar that milk’s fat and protein composition is to milk from unaltered cows.

“We’re kind of being overly cautious,” she said, noting that if eating beef from naturally hornless Angus cattle is fine, milk from edited Holsteins should be, too.

But to Kuzma, companies will have to be up-front about how these new foods were made and the evidence that they’re healthy. She wants regulators to decide case-by-case which changes are no big deal, and which might need more scrutiny.

“Most gene-edited plants and animals are probably going to be just fine to eat.

But you’re only going to do yourself a disservice in the long run if you hide behind the terminology,” Kuzma said.

AVOIDING A BACKLASH Uncertainty about regulatory and consumer reaction is creating some strange bedfellows. An industry-backed group of food makers and farmers asked university researchers and consumer advocates to help craft guidelines for “responsible use” of gene editing in the food supply.

“Clearly this coalition is in existence because of some of the battle scars from the GMO debates, there’s no question about that,” said Greg Jaffe of the food-safety watchdog Center for Science in the Public Interest, who agreed to join the Center for Food Integrity’s guidelines group. “There’s clearly going to be questions raised about this technology.”

SUSTAINABILITY OR HYPE? Gene-editing can’t do everything, cautioned Calyxt’s Voytas. There are limitations to how much foods could be changed. Sure, scientists made wheat containing less gluten, but it’s unlikely to ever be totally gluten-free for people who can’t digest that protein, for example — or to make, say, allergy-free peanuts.

Nor is it clear how easily companies will be able to edit different kinds of food, key to their profit.

Despite her concerns about adequate regulation, Kuzma expects about 20 gene-edited crops to hit the US market over five years — and she notes that scientists also are exploring changes to crops, like cassava, that are important in the poorest countries.

“We think it’s going to really revolutionise the industry,” she said.

MARKET REPORT WEDNESDAY, 14 NOVEMBER 2018

t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com

BISX ALL SHARE INDEX: CLOSE 2,006.24 | CHG 0.06 | %CHG 0.00 | YTD -57.33 | YTD% -2.78 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 20.91 7.50 4.46 1.22 0.52 3.92 9.30 6.60 4.97 12.50 2.74 1.78 8.21 6.30 13.20 6.79 4.49 13.50

52WK LOW 3.50 19.17 7.50 3.32 0.90 0.16 2.25 8.60 6.10 3.54 9.00 2.30 1.50 7.25 6.00 10.10 5.67 3.25 12.50

1050.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

PREFERENCE SHARES

1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00

SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 ##########

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

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

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

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

LAST CLOSE 4.45 17.43 9.09 4.46 1.01 0.52 2.30 9.30 6.16 4.00 12.42 2.64 1.78 7.99 6.30 12.98 6.41 3.62 13.01

CLOSE 4.45 17.43 9.09 4.46 1.01 0.52 2.30 9.30 6.16 4.00 12.42 2.62 1.78 8.08 6.30 12.98 6.41 3.62 13.01

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.02 0.00 0.09 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

CLOSE 100.00

CHANGE 0.00

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

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

VOLUME

VOLUME

EPS$ 0.214 0.932 -0.306 0.317 0.059 0.000 -0.588 0.700 0.441 0.154 0.627 0.102 0.209 0.000 0.670 0.701 0.578 0.277 0.631

DIV$ 0.100 1.260 0.000 0.240 0.000 0.010 0.000 0.710 0.220 0.120 0.620 0.060 0.060 0.084 0.280 0.500 0.150 0.130 0.600

P/E 20.8 18.7 N/M 14.1 N/M N/M -3.9 13.3 14.0 26.0 19.8 25.7 8.5 N/M 9.4 18.5 11.1 13.1 20.6

YIELD 2.25% 7.23% 0.00% 5.38% 0.00% 1.92% 0.00% 7.63% 3.57% 3.00% 4.99% 2.29% 3.37% 1.04% 4.44% 3.85% 2.34% 3.59% 4.61%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%

INTEREST Prime + 1.75% 6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%

MATURITY 19-Oct-2022 ############### 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022

MUTUAL FUNDS 52WK HI 2.18 4.16 2.02 182.41 158.55 1.58 1.70 1.66 1.10 6.99 8.54 6.15 10.52 11.46 10.46 10.00 8.45 11.20

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.52 1.68 1.61 1.08 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

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

NAV 2.18 4.16 2.02 182.41 158.55 1.58 1.69 1.66 1.09 7.36 8.47 6.53 11.32 11.67 10.54 9.93 8.45 11.20

YTD% 12 MTH% 2.90% 4.07% 0.44% 4.38% 1.70% 2.35% 2.08% 3.47% 3.35% 5.94% 3.22% 4.22% -0.38% 3.34% 2.39% 4.01% -0.38% 0.53% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69% -0.61% 0.75% 1.13% N/A 2.95% N/A

NAV Date 30-Sep-2018 30-Sep-2018 28-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018

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

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

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225

PAGE 14, Thursday, November 15, 2018

THE TRIBUNE

Stung by Amazon’s rejection, cities look on the bright side

By MIKE CATALINI Associated Press SOMETIMES losing is winning.

Or at least that’s what some of the 18 North American cities passed up by Amazon for its new headquarters are telling themselves.

After 14 agonizing months of wooing and then waiting for the online retail giant to make up its mind, the finalists learned that instead of Amazon picking one location for its new offices, it would split them between Long Island City in Queens, New York, and Arlington, Virginia, in suburban Washington, sending an estimated 25,000 jobs to each.

The places that didn’t make the cut are bearing the rejection with a mixture of reflection, disappointment and some optimism. But while they’re missing out on the economic boost — for now — they’ve also dodged having to give away billions

A PART of the skyline in Newark, NJ. For more than a year, cities around the country waited in suspense over whether they’d be chosen as Amazon’s second home. The prospect of new jobs and the cachet that comes with a tech behemoth like Amazon led many cities to come up with aggressive tax incentive packages worth billions of dollars, among other enticements. Newark, for instance, proposed $2bn in tax incentives along with a potential $5bn put up by the state.

Photo: Seth Wenig/AP of dollars in tax incentives.

Amazon’s search for a new home resulted in some 238 suitors from across the continent that the company in January whittled down to 20, stretching from Toronto to Miami in the east

to Denver and Los Angeles out west.

The prospect of new jobs and the cachet that comes with a tech behemoth like Amazon led many cities to pull together aggressive tax incentive packages worth

billions of dollars, among other enticements.

Newark, New Jersey, for instance, proposed $2bn in tax incentives along with a potential $5bn put up by the state.

“I think considering the size of the tax package we were offering, I think a lot of taxpayers are taking a sigh of relief,” said Brandon McKoy, who heads government and public affairs at the progressive think tank New Jersey Policy Perspective. “It was very exorbitant.”

The other finalists were: Atlanta; Austin; Boston; Chicago; Dallas; Denver; Indianapolis; Montgomery County, Maryland; Nashville; Pittsburgh; Raleigh, North Carolina; and Washington.

Some economic development experts argue that giving up billions in tax revenue through incentive programs was a flawed mindset from the start.

Richard Florida, an urban development expert at the

University of Toronto, cast Amazon’s search in stark terms, suggesting the company “played” cities against each other to get the best deal, while also scoping out potential future locations for business hubs.

He compared the selection process to the televised talent competition, “American Idol”.

“We can get back to doing economic development the right way, not through these Amazon Idol competitions,” he said.

New York offered Amazon more than $1.5bn in tax credits and other incentives while Virginia and Arlington ponied up about $573m.

But the tax incentives were not the only factor for Amazon. Indeed, the chosen sites had offered less than other places. Amazon has said it picked locations best suited to attract the highskilled workers it’s seeking.

That’s small consolation to places left to soul-search what they could

have done differently.

“We competed hard, we competed well, but we did not succeed,” said Dallas Mayor Mike Rawlings, whose city was a contender.

“It calls upon us, as leaders in this city, to look hard at ourselves and say, ‘Why can we not beat New York City and Washington, DC?” Others cast the loss in a positive light.

“It put Philadelphia in the national (and international) spotlight — increasing our visibility to other companies and showing our viability for other large-scale projects,” said Philadelphia Mayor Jim Kenney in a statement.

For all the time and energy expended on the process, there’s also a sense of relief to finally be done with it, even if the outcome for most wasn’t as hoped.

“I’m glad it’s over,” said Newark Mayor Ras Baraka.

“It’s just a lot of anxiety, a lot of waiting.”