11222019 BUSINESS

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FRIDAY, NOVEMBER 22, 2019

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Govt sells PHA short by millions By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

HE government’s failure to fund Cabinetapprovedspending increases has consistently left the public healthcare system facing “significant budget shortfalls� amounting to annual eight-figure sums.

Documents obtained by Tribune Business reveal how the Public Hospitals Authority (PHA), which oversees The Bahamas’ two public hospitals plus the Sandilands Rehabilitation Centre, has

• Approves spending rises without funding them • Operator suffered $28m deficit, sought extra $53m • Got just $10m for $80m in approved capital works frequently been starved of operating funds by as much as $28m.

Catherine Weech, the PHA’s managing director, revealed in an April 16, 2018, letter to acting financial secretary, Marlon Johnson, that much of this shortfall resulted from the government’s failure to provide the extra funds necessary to cover new industrial agreements

and staffing increases in the annual May budget.

While the PHA requested almost $40m in additional funds for the 2018-2019 fiscal period, which would have taken the taxpayer’s subsidy to $253.664m as opposed to the prior year’s $213.843m allocation, subsequent budget records show just $216m was provided.

Besides undermining

care quality and the delivery of healthcare services to the Bahamian people, Mrs Weech’s letter said such under-funding frequently forced the government into having to seek parliamentary approval for additional monies during the budget cycle to cover the difference.

She also told Mr Johnson

SEE PAGE 4

‘Put everything in the mix’ on Dorian fall-out

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Bahamas must explore the removal of protectionist barriers to growth if it is to overcome its bleakest-ever fiscal position, a former finance minister urged yesterday.

James Smith, also an exCentral Bank governor, told Tribune Business this nation needs to “throw everything into the mix� given that Hurricane Dorian’s fallout threatens to impact the government’s finances for the next ten to 15 years.

With the national debt predicted to expand at a faster rate than economic output in the near-term, he argued that The Bahamas may have little choice but to abandon “preconceived notions� that have long outlived their usefulness such as the reservation of certain

• Ex-minister: Bahamas’ fiscal position bleakest ever • Suggest local owner protection end to boost GDP • Calls for debt restucturing ‘while we can do it’

JAMES SMITH industries for local ownership only under the National Investment Policy.

Describing the fiscal challenge created by the category five storm as “unprecedented�, Mr Smith also suggested that the government seek to restructure its debt in such a way as to

reduce debt servicing (interest) costs over the immediate to medium term.

These payments to bondholders and lenders are projected to hit $400.8m in the 2023-2024 fiscal year, and the former finance minister said extending the maturity term on outstanding debt issues would create the necessary “breathing room� for the government to continue funding essential services by lowering these debt servicing costs.

Acknowledging that The Bahamas had previously avoided such debt restructuring for fear that it would send a negative signal to lenders, Mr Smith argued that now

was the time to take such action “before the International Monetary Fund (IMF) does it for us� and while the country still has access to the international capital markets.

While the extent of the financial blow inflicted by Dorian is “no surprise to anybody�, Mr Smith said: “The principal issue is that the increase in the debt, which will be so much higher than the growth in GDP, is simply unsustainable. We have to reduce that gap between the rate of increase of the debt vis a vis the growth of the economy. “The question is that if it’s

SEE PAGE 5

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Lucayan chair ‘assured’ of mid-December sale close

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Grand Lucayan’s chairman yesterday said he had been “assured� the resort’s sale, and associated harbour project, will be sealed by mid-December, adding: “I think we’re finally getting to the end.�

Michael Scott, pictured, told Tribune Business that the $275m development proposed by Royal Caribbean and its joint venture partner, the Mexican-based ITM Group, was “still on track� despite the Hurricane Dorian-related delays and complexities caused by the number of parties involved.

While the Holistica duo are negotiating with the government and Hotel Corporation over the Grand Lucayan’s $65m purchase, they are also talking to Hutchison Whampoa - in its capacity as controlling shareholder of Freeport Harbour Company - over the addition of extra cruise ship piers and that area’s redevelopment into a waterbased adventure theme park for passengers and guests alike.

Tribune Business sources yesterday suggested that the negotiations between Royal Caribbean/ITM and Hutchison had become bogged down, with some blaming the latter while others suggested the cruise line and its partner had demanded “the kitchen sink�.

Mr Scott, though, said he was unaware of any potential obstacles to closing the deal. “They’re still on track,� he told this newspaper of the parallel negotiating processes. “We’ve had delays. It’s one multi-faceted, comprehensive deal. “It will all happen at the same time, but I don’t expect the signing to take place much before mid-December... What I am assured is a deal will

happen, but it’s not likely to happen much before midDecember.� He declined to comment further.

Dionisio D’Aguilar, minister of tourism and aviation, similarly told Tribune Business that the Grand Lucayan talks are “inching closer every day� to a conclusion. He, too, added that the government was unaware of any problems relating to the harbour negotiations given that it was not directly involved in those particular discussions.

One well-placed source, speaking on condition of anonymity, said: “We expected that they were going to sign the harbour deal within 30 days and, right after that, they would sign for the hotel. We thought it could be signed in two weeks; apparently everything was agreed. The lawyers were just settling on the language. Royal Caribbean wanted the kitchen sink but that was settled.�

Another contact, also speaking on condition of anonymity, suggested it was optimistic to believe the deal will be signed before year-end 2019. “I know they’re still going and everybody is working towards getting final things done, but as to timing I have no idea,� they added of negotiations. “I think everyone’s a little ambitious thinking that this will get done by the end of the year but we’ll see. We’re 15 months down the road and these things take time.�

SEE PAGE 4

GB airport re-open awaits US approval By YOURI KEMP Tribune Business Reporter  GRAND Bahama International Airport missed the November 15 target date to re-open to international flights because it is still waiting for US regulatory approval, a Cabinet minister confirmed yesterday.

Senator Kwasi Thompson, minister of state for Grand Bahama, told Tribune Business that the airport needed to obtain the go-ahead from the US Transportation Security Administration (TSA) before such services can resume.

“The airport construction on the temporary facility is proceeding as we speak,� he said. “The team is on the ground now. The Grand Bahama Airport Company has informed us that once the construction is completed the Transportation Security Administration will have to give its approval.

When the TSA gives their approval, then it will be ready to open. “We have been informed

by Bahamasair officials that their facility has been inspected, but they are also

SEE PAGE 7

‘Crashed’ contract provider confuses customer’s identity By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE US company selected to deliver the “crashed� $18m Public Hospitals Authority (PHA) contract yesterday appeared confused about its client’s identity as it defended its performance.

Allscripts, the Nasdaq-listed provider of healthcare software and information technology solutions, referred to the “Public Housing Authority� - not the Public Hospitals Authority - in asserting that it had “fully complied at all times� with the

contract’s provisions.

It also pledged that it “stands ready to complete the implementation� once it receives the word from the government and PHA, even though Dr Duane Sands, minister of health, this week indicated they were “moving forward� in a different direction to obtain an Integrated Healthcare Management System (iHMS) for the public health system.�

An Allscripts spokesperson, responding to Tribune Business inquiries over the contract controversy, merely said: “Allscripts has at all times complied fully with

SEE PAGE 8

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PAGE 2, Friday, November 22, 2019

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ANY employees are making the mistake of taking too long to prepare for retirement. After working diligently for more than 30 years you should set yourself up financially for your “golden years”. The last 12 months before you call an end to your career is especially critical to putting your retirement on a prosperous path. It is time to get your portfolio, healthcare and other finances in order so you can enjoy your new life.

Here is short checklist of what each employee can do to prepare for the inevitable.

Raise cash. Your pay

THE TRIBUNE

A RETIRING STRATEGY YOU CAN BANK ON cheques are about to stop.

Many persons look seriously at moving money otherwise invested into a savings or money market account to fund at least one year of expenses. Retirement time is not the best time to be financially poor and rich in investments. Ensure you have access to a certain amount of cash at all times.

Set a realistic retirement budget. There are a number

of instruments financial planners use to help soonto-be retirees list all of their fixed and discretionary expenses. This tool gives you a clearer understanding of how lavishly you can live for the length of time you expect to live post-retirement given the reduced income streams you will have remaining.

Play out social security scenarios. Bahamians need

to be reminded that National Insurance Board (NIB) benefits are not designed to be the sole survival item in your retirement portfolio.

The small assistance given is designed merely to supplement the four of five other savings and investments that should be working for you even now.

Figure out how you will pay for healthcare. Check if your company offers retirees medical, long-term care and other insurance coverage. Make up your mind regarding how you will maintain your healthcare coverage, which could easily be a sizeable chunk of your retirement budget. Research has proven that the singlemost financially challenging expense for retirees is the cost of healthcare. This must not be taken lightly.

Manage your physical and emotional well-being. Realise that your health status is crucial as you prepare to exit the workplace. The removal from a fast-paced day may require a change in physical and mental

activity. Staying fit, agile and active must become routine for the employee pre and post-retirement.

Create a strong social network. Work becomes more than our careers and earning a salary for many. For it represents the extended family. Separation from people we know, love and have experienced life with can be heartwrenching. It is important that all pre-retirees find themselves in community, church and other civic groupings to rebuild social networks during the retirement transition.

Retirement planning is no longer something we can consider five years before it actually happens. This has, in many companies, become an onboarding orientation conversation. The longer we have to prepare, the larger the net we can build to ensure these years are comfortable and well lived.

Happy planning.

NB: Ian R Ferguson is a talent management

IAN FERGUSON BY

and organisational development consultant, having completed graduate studies with regional and international universities. He has served organsations, both locally and globally, providing relevant solutions to their business growth and development issues. He may be contacted at tcconsultants@coralwave.com.

BTC IN $100K GRANT FOR VIRTUAL LEARNING THE Bahamas Telecommunications Company (BTC), via its immediate parent’s foundation, has provided a $100,000 grant to help the Ministry of Education develop a virtual learning programme.

The grant, which will be provided through the Cable & Wireless Charitable Foundation (CWCF), will finance an initiative to be rolled-out

by One on One Education Services.

Garfield “Garry” Sinclair, BTC’s chief executive, said: “This is truly a significant day in our history. We are responding to a critical need for over 1,500 students affected by the hurricane as well as assisting the Ministry of Education with its overarching goals to modernise and transform education in the country.”

This initiative is being provided through BTC Study, a website that provides an interactive virtual school experience. This will supplement classroom learning and enable students to catch

JEFFERY LLOYD, centre, with BTC & One on One team members. up on instructional time lost following Hurricane Dorian.

Students will receive extra classes, digital textbooks and other learning resources.

Teachers participating in the programme will record their educational instruction and live stream classes to students.

Impacted students from K3 through to grade 12 will benefit from this initiative.

Jeffery Lloyd, the minister of education, said: “The Ministry of Education is delighted to partner with BTC in the furtherance of its digitisation efforts. The One-on-One Programme will provide a significant thrust in enabling

positive instructional outcomes for students across The Bahamas, especially in an era where individualised and experiential learning has become the focus of today’s student-centered education.”

The Sandals Foundation, a key partner in the effort, funded training for 50 teachers and purchased 500 tablets for students. Heidi Clarke, its executive director, said: “These students have experienced unimaginable challenges and changes. It was important for us to do what we could to ensure their academic progress was not derailed.”

THE TRIBUNE

HOW TO SOLVE GOVTS GB AIRPORT QUANDARY Dear Editor , I imagine the government is in a major quandary over Grand Bahama International Airport. The quandary is not whether the $70m needed for a new terminal has to be spent, but by whom.

As I have explained, Freeport has no viability if a new international airport is not built, and I believe this is a generally accepted premise.

All indications are that the Grand Bahama Port Authority (GBPA) families, as I expected, have turned up their hands and said they have no money, but they are apparently interested in “handing over” their 50 percent interest in the airport for $1, thereby reneging on their responsibility to provide Freeport with an airport compliant with international standards and saving them the significant costs

Friday, November 22, 2019, PAGE 3

Letters to the Editor associated with the rebuild.

I have pointed out that the Haywards and St Georges have significant assets such as the harbour and Grand Bahama Utility Company, which will be severely impacted (as will Freeport itself) if the airport is not redesigned, reengineered and rebuilt.

But I believe they are prepared to take the gamble that the government will fund the construction and do “the right thing.”

In addition, I am told Hutchison Whampoa’s position remains that they do not want to rebuild the airport, but they want to keep the Insurance proceeds (similar to the Grand Lucayan). Their position is essentially the same as the families, except they have their 50 percent interest in the Container Port to safeguard and 50 percent of the harbour. The Grand Bahama Development Company (DevCo) land of 70,000 acres, I daresay, is ultimately worthless at this time but the Port and Hutchison had done nothing to make it valuable before Dorian.

My reason for writing is that neither the Port families nor Hutchison should

Chamber director backs unions groups’ merger

By YOURI KEMP Tribune Business Reporter

A PRIVATE sector labour specialist yesterday backed the proposed merger between The Bahamas’ two trade union bodies on the basis that it will be “better for workers” and end previous in-fighting.

Peter Goudie, The Bahamas Chamber of Commerce and Employers

Confederation’s director responsible for union relations, told Tribune Business it was a “good thing” that the National Congress of Trade Unions (NCTU) and the Trades Union Congress (TUC) are planning to unite into one umbrella union.

“They have tried this before in the past but failed,” Mr Goudie said, speaking after attending yesterday’s National

be allowed to abdicate their responsibilities and “hand over” the airport to the government with the intention of making the latter pay for the reengineered/elevated international airport and terminal (as its Public Duty shall otherwise require), and for them to continue making profits as they enjoy the benefits of this new terminal for years to come without paying the bill for its restoration.

As I have also pointed out, the Port families have a legal and moral duty as the parties to, and benefactors of, the Hawksbill Creek Agreement, and as trustees of Freeport, to make certain the airport is rebuilt and in place.

I also submit that Hutchison, as the 50 percent owner of a public service entity for which it also has board and management control, has a duty to reinstate the airport that they seem reluctant to accept.

The Port families should therefore pay, in equal share, either by cash or note, against their interest in the Harbour and/ or Grand Bahama Utility Company, and Hutchison should pay an equal share by handing over to government the insurance proceeds. In any event, government should take the title to the airport to include the Sea/Air Business Centre development site.

It is essential that the new airport be built and in place within the two years it will take the Carnival, Royal Caribbean and medical university investments to be in place and, in that same time, to have the 4,000 homes (15,000 Bahamians) affected by Dorian rebuilt and/or made habitable so that Freeport can come back stronger than it was before. The government already has to find $150m for the home rehabilitation, hospital, schools and Post Office (more on this at another time), so why should it pay for the airport by itself?

In the meantime, we still await with bated breath the delivery of the Port families’ masterplan for the redevelopment of Freeport to be published, and we also await the government’s own such masterplan. Where are they?

Yours sincerely TERENCE R H GAPE Freeport Resident

PS: Freeport Harbour Company There is growing sentiment among Freeport watchers that, given the failure of the Port families and the intransigence of Hutchison, the government should move to compulsorily acquire the Freeport Harbour Company. This would help to quantify and pay the families’ share of the increasing burden being undertaken

Tripartite Council meeting at which members were fully briefed on the unions’ intentions. “But now it seems as if they are really going ahead.

They have set up a working committee and we will see how it will go after that.

They have decided to try again, which is great news.

“The chamber always thought that the two umbrella unions should stop fighting and be on the same page. It is better for the country and better for the workers. At the end of the day the chamber views it as a positive thing for workers.

Having two different voices

to talk to, rather than talking to one voice, was always difficult and hard to handle.

“Just as the chamber stands up for employers and came together, so should the unions. They reported that they have finally decided to come together, and that they seem to be more positive at this time.”

by government in the Port area, and to pay for it over time but, also, would solidify the Royal Caribbean deal and pave the way for a new shipyard and other major Investments presently being planned by international investors who can make no progress so long as the harbour is held by the families and Hutchison.

This public harbour facility is too big to be left in the hands of these two non-players. Moreover,

the Port families’ expenses look likely to keep escalating as there is a major road-building programme that needs to be implemented.

Certainly, I believe this harbour acquisition should be sincerely considered by government if only to get the attention of these two (past) investor groups whose time is up and, of course, cause them to make an urgent deal on the airport.

TG

PAGE 4, Friday, November 22, 2019

Govt sells PHA short by millions FROM PAGE ONE

that the PHA had received zero financing for capital upgrades during the entire five-year term of the former Christie administration, resulting in a battle to prevent its aged facilities at the Princess Margaret Hospital (PMH) and Rand Memorial Hospital from “falling into a state of total disrepair”.

Mrs Weech added that the Minnis administration, during its first fiscal year, had allocated just $10m to the PHA and Department of Public Health (DPH) to cover more than $80m worth of capital works contracts entered into at the government’s behest - leaving a $70m “hole” to be filled.

She warned that the government’s desire to move the PHA to a position where it could recover all costs within three to five years was “extremely ambitious” given that staffing expenses accounted for 74 percent of its budget, thereby highlighting the difficulties it will likely encounter in slashing loans guaranteed on behalf of all state-owned enterprises (SOEs) by $418m.

Referring to the austerity measures set in motion by the government, Mrs

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Weech told the Ministry of Finance’s top official: “While we note the government’s announcement regarding the cutting of existing budgets and appreciate the need for strategies to realign budgets and streamline costs, we in the PHA are unable to accede to this request without the negative consequences of cutting service delivery to the public.

“It is imperative to note that the PHA has had significant budget shortfalls over the years due to Cabinetapproved, contractual and/ or non-discriminatory items not being funded or not included in the approved budget.

“Hence the projected fiscal deficit for this fiscal year is $28m, of which supplementary funding of $11.5m was provided to date for unpaid bills accumulated this fiscal year up to December 2017. A comparable second tranche of supplementary funding will likewise be needed to cover the deficit incurred for the second half of this fiscal year.”

Mrs Weech identified the government’s failure to allocate funding for the increase in Critical Care Block staff and the salary increases in then-new industrial agreement with the Bahamas Doctors Union (BDU) as the major culprits behind the under-funding, even though both moves had been approved by Cabinet.

“Pursuant to the Cabinet approval for the engagement of staffing for the Critical Care Block, in January 2015 the Ministry of Finance provided $2.5m to

cover the new Critical Care Block staffing cost for the remainder of that fiscal year and committed to adjust the PHA’s budget base for the full annual cost,” the PHA managing director wrote.

“To date, our budget base has not been adjusted to cover this amount. As a result the PHA had to divert funding from other critical services to the detriment of their operations to cover this shortfall. Additionally, the Critical Care Block still has not been fully staffed as intended while some staffing coverage is provided on an overtime basis and critical intensive care unit (ICU) beds have been shut down.”

The same occurred after the government approved a new industrial agreement with the Bahamas Doctors Union in May 2017, around the time of the general election. This deal, made retroactive to July 2015, again failed to result in an adjustment of the PHA’s annual budget to incorporate some $2.6m in collective salary increases and $1.3m in greater allowances.

“Such funding shortfalls have contributed to the projected deficit of $28m for this fiscal year,” Mrs Weech wrote, noting that negotiations with other staff unions for new industrial agreements were either ongoing or upcoming.

As a result, the PHA requested over $18m extra to cover the increased staffing costs and “unfunded industrial agreement increases” in its 2018-2019 budget request.

The increase in doctors

salaries also caused the Authority to seek a further $2.595m to meet the resulting rise in National Insurance Board (NIB) contributions and doctors’ “on call” allowance.

The PHA also sought an extra $3.705m to tackle the “significant deficit in the nursing ranks”, and attempt to improve patient care and reduce overtime costs, via an intern and graduate nurses’ programme. Finally, the explosion of chronic non-communicable diseases (NCDs) meant another $13.716m was needed to buy drugs, medical equipment and surgical supplies.

“If these critical items are not funded, the PHA will be forced to ration services there, resulting in increased morbidity and mortality rates,” Mrs Weech warned.

However, little of the $39.82m in extra taxpayer subsidies was seemingly provided based on Budget data.

It was a similar story with capital spending, where the PHA requested some $23.533m in 2018-2019 Budget funding for “priority capital construction projects” that were supported

by Dr Duane Sands, minister of health.

“It should be noted that prior to 2017-2018, the PHA had not received any capital funding for five years,” Mrs Weech wrote. “This has had a significant impact on the quality and timely delivery of services. Furthermore, the maintenance costs incurred continued to rose as we endeavoured to prevent our aged facilities from falling into a state of total disrepair.

“Also, due to inadequate funding for our preventative maintenance programme, we are unable to repair critical equipment in a timely manner and, as a direct result, patients are either unable to receive care or they had to be referred to the private sector where the cost of care is significantly higher and the PHA has had to eventually fund these costs.”

She continued: “Additionally, it should be noted that while $10m was allocated to PHA and Department of Public Health capital works under the Ministry of Finance head for the current 20172018 fiscal year, the balance on capital contracts entered into at the direction of the government exceeded $80m...

“The country’s premier urgent care facility (PMH) has long outgrown its current capacity and continues to be overcrowded and the environments of care are substandard. Other areas require major capital infusion such as our IT infrastructure in order to prevent catastrophic system failure and data loss.”

Noting the government’s goal of moving the PHA and all state-owned enterprises (SOEs) to a position where they will be generating sufficient to cover all their costs within three to five years, Mrs Weech described this as “extremely ambitious” given its legacy staffing costs and the need for improvements in service standards and “crumbling infrastructure”.

THE TRIBUNE

LUCAYAN CHAIR ‘ASSURED’ OF MID-DECEMBER SALE CLOSE FROM PAGE ONE The Royal Caribbean/ITM project, which involves the creation of some 2,000 jobs via a $195m first phase investment that includes the resort purchase price, is among the projects the government is banking on to revive the Bahamian economy post-Dorian.

“The project is poised to act as an economic stimulus to Grand Bahama, bringing approximately two million passengers annually to make use of the associated facilities which will include a five-star hotel property, water-based family entertainment, as well as dining, gaming and other entertainment options,” the government’s just-released Fiscal Strategy Report said.

“The additional cruise passengers will also present an opportunity for local vendors, taxi drivers, arts and crafts artisans and other souvenir businesses to benefit from increased sales. Negotiations to finalise this sale are expected to be completed by end-2019.”

The government is also likely to be extremely eager to exit the resort ownership business, and get the Grand Lucayan off its books, given the $43m that it pumped into the hotel.

Selling it will also reduce its contingent liabilities by some $35m. While the $65m purchase price may not recover the government’s entire Grand Lucayan outlay upfront, it will be hoping that the increased economic activity and extra employment created by the Royal Caribbean/ITM project will more than offset this on the back end.

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Friday, November 22, 2019, PAGE 5

‘Put everything in the mix’ on Dorian fall-out

FROM PAGE ONE

very difficult not to increase the debt because of circumstances that are real, due to the reconstruction and social services demanding more, we have to find ways to grow the economy.

“I know it’s easy to say, but it may mean stepping aside and identify obstacles to growth.

We have identified one of them, the ease of doing business, and we may have to look at a combination of foreign and domestic investment, and how we can provide incentives for them to flow and a faster rate.”

Warning that this may involve giving up protections long cherished by some, the ex-finance minister told Tribune Business: “We have some preconceived notions about investment flows; where they can go, and which sectors they can go in. We may have to step back and look at all of them.

“We can’t deny investment and the creation of jobs because we want to protect a certain segment of the economy for a select group. That may have been relevant a decade or two ago when the numbers were better.

“It’s a tough position, I recognise that, and it’s going to be tough not only for this government but successive governments for the next ten to 15 years. Now might be the time to revisit these policies to stimulate growth and national development, and which ones continue and which are to be discarded. You throw everything into the mix. You’re dealing with an extraordinary challenge, one I think is unprecedented.”

Mr Smith said a “game changer” for the Bahamian

economy “wherever it comes from” is now sorely needed, adding: “We need a shot in the arm that provides increased revenue flows to the government to pay back or retire some of the debt.” While environmentalists will not like to hear it, the only possibility in this area presently appears to be Bahamas Petroleum Company’s (BPC) oil exploration activities.

The government’s justreleased Fiscal Strategy Report exposes the extent to which Dorian has blown the government off its key deficit and debt ratio reduction targets by between five to ten years depending on the indicator.

It is now forecasting that nine-figure deficits will persist for the next five years post-Dorian and only come back into line with the Fiscal Responsibility Act’s 0.5 percent of GDP target by 2024-2025.

The report also shows that the sustained “red ink”, caused by the Government having to borrow to cover the gap created by its spending exceeding income, is projected to drive its direct debt from $8.205bn this fiscal year to almost $9.5bn over the same period.

This represents a $1.3bn debt surge that will keep the government far away from achieving the Fiscal Responsibility Act target of a 50 percent debt-to-GDP (gross domestic product) ratio. That is projected to still be at 62.9 percent in 2024-2025, and the debt-toGDP ratio is projected to only resume its decline towards 50 percent come 2028-2029.

The government will only start “returning to compliance” with the Act’s debt and deficit reduction goals by 2024-2025, some two years

after the next general election has to be called, while the current fiscal year’s deficit is now forecast to increase by a further $104m from the immediate post-Dorian estimate of $573.4m to $677.5m.

That sum, equivalent to 5.3 percent of Bahamian GDP, will require the government to seek Parliament’s approval to borrow $507.9m to cover the difference between the original budget estimate of a $137m deficit.

With Dorian restoration continuing to serve as the chief drain on the Public Treasury, the Fiscal Strategy Report outlines a painfully slow reduction in the fiscal deficit to $498.9m in 2020-2021 and $301.2m the following year. Deficits of $238.6m and $122.6m are forecast for 2022-2023 and 2023-2024, respectively, with the 0.5 percent of GDP goal finally reached the following year at $82m.

Mr Smith yesterday argued that The Bahamas should take a proactive stance by moving to restructure its existing debt now, rather than wait for the IMF and other multilateral agencies to do this for it.

Arguing that minimising debt servicing costs is key, he called on the government to stretch out the maturity terms on existing issues to achieve this objective.

The Fiscal Strategy Report indicates that the government has begun to do this, as it revealed: “Recently, the government took advantage of a discretionary option to convert several US LIBORbased rate loans with the Inter-American Development Bank (IDB) to US fixed rates.

“The recent decline in US LIBOR rates presented a unique and attractive opportunity for the government to lock in competitive fixed interest rates over the remaining life of the disbursed amounts of ten eligible loans, which totalled $159.77m at the time of conversion on

August 8, 2019, and bearing maturities ranging from 2021 through 2041.”

Advocating such a strategy yesterday, Mr Smith told Tribune Business: “We piled on a lot of debt over the last four to five years from the international agencies and local bond markets. The time may have come to do a first major restructuring of the debt.

“I think we’ve stayed away from that because of the signals it may send, but because of Dorian this is the time to take hitherto scary measures

in terms of repositioning some of the loans where you change the tenor from ten to 15 years and stretch them out.

“You concentrate more on debt servicing costs as a percentage of the total budget, revenue and expenditure.

The reason for that is as we work out of this and have to pile on the debt, you have to borrow,” Mr Smith continued.

“While the debt goes up you want to be paying the same service charge on the principal so that it gives you enough room not to restrict

spending on other items like health, education, welfare and national security.”

Arguing that the time was now to take such restructuring action, Mr Smith said: “More than anything else I think there’s still a confidence level in The Bahamas by the international agencies and international banks, and if we can prevent ourselves reaching the thresholds that would be of concern to them in the next year or two, we might be able to weather the storm.

FORM B Notice of Intended Marriage (Section 7(3))

Sally Ann Pratt Registrar of Marriages

FORM B Notice of Intended Marriage (Section 7(3))

FORM B Notice of Intended Marriage (Section 7(3))

Sally Ann Pratt

Sally Ann Pratt

Registrar of Marriages

Registrar of Marriages

FORM B Notice of Intended Marriage (Section 7(3))

FORM B Notice of Intended Marriage (Section 7(3))

Sally Ann Pratt

Sally Ann Pratt

Registrar of Marriages

Registrar of Marriages

PAGE 6, Friday, November 22, 2019

THE TRIBUNE

PUBLIC NOTICE

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, CURRY AUGUSTIN MERIZIER of Palm Breeze Drive off Carmichael Road intend to change my name to CURRY AUGUSTIN. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

The Public is hereby advised that I, DENISE DILLETTE of William Street, Nassau Village intend to change my name to SHARIECE DENISE WRIGHT. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

MARKET REPORT www.bisxbahamas.com

(242) 323-2330

THURSDAY, 21 NOVEMBER 2019

(242) 323-2320

ALL SHARE INDEX: CLOSE: 2,202.07 | CHG: 2.66 | %CHG: 0.12 | YTD: 92.62 | YTD%: 4.39 BISX LISTED & TRADED SECURITIES 52WK HI 4.45 22.65 7.00 6.10 2.60 2.00 5.47 11.75 6.17 4.64 11.25 2.81 3.85 10.21 7.60 16.90 9.40 3.63 14.20

52WK LOW 3.52 20.91 4.90 4.46 1.01 0.22 2.00 9.30 6.15 3.95 6.75 2.35 1.76 7.51 6.10 12.10 6.41 3.01 13.01

SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson

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

1000.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

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

CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB

PREFERENCE SHARES

1.00 10.00 1.00

1.00 10.00 1.00

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

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

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

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

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

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

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

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

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

MUTUAL FUNDS

MARKET TERMS

LAST CLOSE 3.64 17.43 6.00 6.10 2.46 1.80 4.36 11.06 6.16 4.10 8.06 3.23 3.85 10.11 7.60 16.90 9.33 3.51 14.00

CLOSE 3.64 17.43 6.00 6.10 2.46 1.80 4.36 11.06 6.16 4.12 8.06 3.21 3.85 10.14 7.60 16.90 9.33 3.51 14.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.02 0.00 -0.02 0.00 0.03 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00

CLOSE 100.00

CHANGE 0.00

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

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

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

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

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

VOLUME

26,000

10

VOLUME

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

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

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

0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000

P/E 15.2 18.7 N/M 16.5 N/M N/M -10.0 15.3 13.7 22.4 57.6 31.5 8.2 15.7 10.4 20.7 9.9 17.3 22.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0

YIELD 4.67% 7.23% 0.00% 4.26% 0.00% 1.11% 0.00% 6.51% 3.57% 2.91% 0.00% 13.52% 1.56% 3.23% 3.16% 3.20% 2.14% 3.42% 4.36% 0.00% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%

INTEREST Prime + 1.75%

MATURITY 19-Oct-2022

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

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

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

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

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

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

NOTICE NOTICE is hereby given that STANLY FRANCOIS of Chippingham, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 15th day of November, 2019 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE NOTICE is hereby given that WILLY VIL of Davis Street, Fox Hill, Nassau, New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 19th day of November, 2019 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

To advertise in The Tribune, contact 502-2394

THE TRIBUNE

GB airport re-open awaits US approval

FROM PAGE ONE

waiting on TSA approval.

Once Bahamasair gets the approval then they will start their international flights to Florida.

“They are still completing their renovations and the TSA will give their inspections. We have been reliably told that Bahamasair, Silver Airways and American Airlines will commence once

the TSA has completed its inspection.

The restoration of international airlift is vital to restoring Grand Bahama’s economy to some semblance of health, both its tourism industry as well as the industrials sector and other businesses. The latest airport delays came as the Grand Bahama Chamber of Commerce’s president, Gregory LaRoda, agreed

Friday, November 22, 2019, PAGE 7 that the government should “do what’s necessary” to buy the facility.

He told Tribune Business: “They are still working on the airport. I was at a National Emergency Management Agency (NEMA) meeting yesterday morning and was told that everything is supposed to ready for yesterday for the airport being ready to accept international flights, but when will those flights be scheduled is another thing.”

The Grand Bahama Port Authority GBPA, the airport’s 50 percent owner, had previously set November 15 as the date for the airport to be ready to accept

international flights, but that has been missed.

Tribune Business was previously told by Pelican Bay’s general manager, Magnus Alnebeck, that American Airlines had cancelled all flights to Grand Bahama from its Miami hub until December 18, but Mr Laroda was unable to confirm this.

Mr Thompson, meanwhile, conceded: “We are also hearing American

Airlines have pushed their flights back into December, but what date I cannot say definitively. We are doing all we can, and that is Bahamasair, the airport company along with the government, to bring on international flights to Grand Bahama.

We know how important it is for international flights to commence.”

Mr LaRoda added: “What I would say now is that, in terms of the

chamber’s position, from as far back as a year ago we felt that the government should do what is necessary to acquire the airport. The airport should not be privately run.

“We feel the government should have discussions with the airport’s owners with a goal to acquire the airport and operate the airport on behalf of the Bahamian people. We need to control our economy.

The Companies (Winding Up Amendment) Act, 2011 PACIFICO GLOBAL ADVISORS LTD. (In Official Liquidation) Reg. No. 60146 C Supreme Court Cause No. COM/bnk/00077 OF 2019 NOTICE is hereby given to any and all creditors having debts or claims against the above named Company, whose liquidation is under the supervision of the Supreme Court of The Bahamas (“the Company”), that they are required to submit to Mr. Edmund L. Rahming, the Official Liquidator, (“Official Liquidator”) proof(s) of the particulars of their respective debts or claims against the Company (“Proof”) along with the names and addresses of their attorneys (if any). Such proofs are to be sent to the Official Liquidator on or before December 23, 2019.

Any creditors who do not submit their Proofs will be excluded from the benefit of any liquidation dividend distribution made before the submission of such Proofs.

Such Proof(s) may be in the form prescribed at Form 24 of the Companies Liquidation Rules, 2012 stating the creditor’s name, address, particulars of debt(s) or claims(s), any entitlement to priority and providing documentation to prove the debt(s) or claims(s). Any creditor wishing to be provided by the Official Liquidator with a form may visit the liquidation website at www. pga-liquidation.com or contact the Official Liquidator’s office at No. 2 Caves Professional Centre, Caves Village, West Bay Street and Blake Road, P.O. Box SP-64064, Nassau, The Bahamas, telephone (242) 327 4001/3 or email: ksherman@intelisysltd. com, requesting the same.

Dated this 22nd day of November 2019.

Edmund L Rahming Official Liquidator No. 2 Caves Professional Centre, Caves Village West Bay Street and Blake Road Nassau, The Bahamas

PAGE 8, Friday, November 22, 2019

THE TRIBUNE

‘Crashed’ contract provider confuses customer’s identity FROM PAGE ONE the terms of the contract we executed with the Bahamian Ministry of Health and the Public Housing (Hospitals) Authority.

“Allscripts stands ready to complete the implementation of our best-in-class solutions, which are used by many of the leading health systems across the world and will enable caregivers to improve outcomes across The Bahamas.”

Some observers may argue that the reference to a “Public Housing Authority” perfectly sums up the controversy surrounding a contract that was intended to totally transform

healthcare delivery in The Bahamas through the use of electronic records that followed patients wherever they went to access services.

This would have given providers instant access to a person’s health history, enabling them to better and more quickly diagnose any cause of distress, and thus provide an improved quality of care and treatment options for Bahamians.

The system was also designed to improve patient billing and cut revenue leakages, thereby helping the Princess Margaret Hospital to reduce the $88m gap between its income and annual operating expenses.

Dr Sands, though, told

RESPONSE by an Allscripts spokesperson to Tribune Business.

Tribune Business earlier this week that Bahamian taxpayers had spent $7-$8m on a venture that had todate delivered zero value for patients, with not a single line of coding to be found anywhere on the PHA’s computers.

“Suffice it to say that the roll-out of this project more than stalled; it’s crashed,” Dr Sands conceded to Tribune Business, “and the

PHA has been attempting to find a way to manage its affairs because this was an essential component of modernisation.

“This would have brought the health system into the 21st century and allow us to function in a datadriven manner. It would also go a very long way to structure proper billing, revenue enhancement and clinical care. Having

a patient’s records, a lot of the challenges - the current hassles, the delays with care now - could be avoided.”

He continued: “As a matter of fact, it is likely going to be a matter that comes to legal action. Let’s just say that many years later, and many millions of dollars later, we have no functioning integrated healthcare management system.

“There was tremendous

anticipation about the benefits that this process, this agreement would bring to the health system. Despite the millions of dollars invested we are still using a pretty much manual health records system, and there is very little tie-in with laboratory or imaging or pharmacy or any of the business billing information with any particular patient’s record, and so it’s been a bust.”

FORM B Notice of Intended Marriage (Section 7(3))

FORM B Notice of Intended Marriage (Section 7(3))

Sally Ann Pratt

Sally Ann Pratt

Registrar of Marriages

Registrar of Marriages