12042023 BUSINESS

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MONDAY, DECEMBER 4, 2023

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Gov’t loses intervention on Legal dispute erupts on $1.3m $12m cruise ship sale VAT Post Office deal

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Department of Inland Revenue’s bid to intervene in the sale of two cruise ships and secure the $11.636m in VAT it claims to be owed has been dismissed by the Supreme Court.

Justice Petra Hanna-Adderley, in a September 25, 2023, verdict told the Government it must take an alternative legal approach to securing the taxes it claims are due on the collective $128m sale of the Crystal Serenity and Crystal Symphony cruise ships.

She also ruled that the move by the Attorney General’s Office, acting on the tax authority’s behalf, was unnecessary and effectively premature given that sufficient funds have already been set aside in escrow accounts to cover the disputed VAT claim if it is ultimately proven.

Justice Hanna-Adderley’s ruling also confirms that the Department of Inland Revenue faces a battle with DNB Bank, the two cruise ships’

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DNB is asserting the VAT claim is against Lieutenant Commander Berne Wright, the acting Port Department controller, in his capacity as Admiralty Marshall and the person who handled the two vessels’ arrest and subsequent sale.

Yet the bank is also arguing that the Admiralty Marshall does own the $128m sales proceeds, which belong

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

CRYSTAL SYMPHONY to itself and other creditors. And it is warning that “is still contesting the [VAT] assessment on narrow tax law grounds”.

The Department of Inland Revenue’s claim, if it succeeds, would be one of the single-largest VAT generating transactions seen in The Bahamas’ to-date. The Government, given its fiscal pressures and seeming recent cash flow issues, is understandably eager to get its hands on these funds - something that was signalled in its intervention bid.

However, if the Government and its tax authority succeed, it would substantially reduce the recovery for

SEE PAGE B6

Abaco cay warns PM BPL woe ‘unbearable’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net RESIDENTS of an Abaco cay have warned the Prime Minister that “unbearable” electricity woes have become “a significant deterrent” to tourism and are driving second homeowners to invest elsewhere.

The Great Guana Cay community, in a letter sent to Philip Davis KC and Bahamas Power & Light’s (BPL) senior management that was accompanied by a near-100 strong petition, revealed that frequent electricity outages over the past two years - averaging around one every four

days - had seen investors “throw up their hands in frustration” and give up on post-Hurricane Dorian rebuilding.

Acknowledging that the cay’s power was restored some two years after the Category Five storm’s passage, the letter said electricity supply was now being routed through an underwater cable that is “in a continual state of being repaired and patched”.

It contrasted this with a new line, run to the multimillion dollar Baker’s Bay development on Great Guana Cay’s northern end, which it said it not needed “and not being used” despite the rest of the

SEE PAGE B4

$110m marina project in ‘accelerating’ sales

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A $110M southern New Providence marina development says wet and dry slip membership sales “continue to outpace expectations” with construction work having begun ahead of the official ground breaking.

Rodney Chamberlain, vice-president of marina developments for Legendary Blue Water Cay Marina, told Tribune Business via a series of written answers to e-mailed questions that the sales pace is expected to

“accelerate” as the project starts its build-out phase.

“Sales have been strong and accelerating through the initial roll-out. As we move into construction, we envision the sales pace to continue accelerating,” he said.

“Membership sales continue to out pace expectations, as the membership sales programme has brought international interest from America and Europe.

“The dry storage building will have as many as 700 slips, and the wet marina will have as many

SEE PAGE B7

A FLEDGING Bahamian company that won a $1.323m bid to digitise the Post Office’s services has launched legal action over allegations it has been prevented from fulfilling the contract award.

Sunrise Communications, in its formal statement of claim lodged with the Supreme Court on November 23, 2023, is claiming that the Post Office and now-Ministry of Transport and Energy have “failed to perform the requisite steps” under the Public Procurement Act for the contract to be executed and awarded despite it winning two competitive bids.

It is also alleging that the Post Office “has been entertaining bids for the same work to be performed” by other, rival providers despite its tender success, leading it to file a claim for “damages for economic loss”. Sunrise, whose win

was included in the $140m worth of public procurement contracts unveiled in mid-October, also says it has received no formal suspension or cancellation notice as required by law.

Ronnie Ferguson, Sunrise Communications’ principal, told Tribune Business the experience has made him question Prime Minister Philip Davis KC’s assertion that the Government is committed to empowering young, qualified and capable Bahamian entrepreneurs through public procurement.

Disclosing that the affair has left the company “severely out of pocket”, he added that the contract - had it been awarded and proceeded as planned would have digitised the Post Office’s processes to such an extent that it would have been converted “into a courier service” able to compete with established private sector firms, help lower industry prices and

SEE PAGE B2

PAGE 2, Monday, December 4, 2023

THE TRIBUNE

Legal dispute erupts on $1.3m Post Office deal FROM PAGE B1 drive more revenues for the government agency.

Sunrise Communications’ award, for the “digitisation and creation of the Post Office’s website”, was among the 843 contracts whose details were released by the Ministry of Finance.

However, Mr Ferguson said the award has been “stalled” ever since it was made on April 28, 2023, with ministry and Post Office officials only describing it as “under review”.

Jobeth Coleby-Davis, minister of transport and energy, is away at the COP28 climate change conference and could not be reached for comment despite this newspaper messaging her. Ministry officials did not respond to calls and messages, and Mabelene Miller, the current postmistress, was said to be out of office when Tribune Business called on Friday.

“I’m very much disappointed that, as a young Bahamian company, we would have have followed the process laid out under the [first] Public Procurement Act,” he told this newspaper. “We would have done everything required. We entered into a competitive bid. The tender went out twice, and on both occasions Sunrise Communications was selected to perform the work.”

Sunrise Communications, in its statement of claim, asserts that it “had a legitimate expectation that a formal written contract” would be issued after it was selected as the winning bidder - especially as no cancellation notice was issued, as required by the Public Procurement Act. The contract, according to the Ministry of Finance, was issued via an ‘invitation to tender’ process, and was the only award by the Post Office to be included in the 843-strong list. “As a result of the said legitimate expectation, the claimant complied with the scope of works submitted in the Go Bonfire [procurement] portal and has done the necessary work to supply to the procuring entity the service as outlined in its initial bid.”

The statement of claim adds that, prior to the formal competitive bidding process, Sunrise Communications had “an existing contract” with the Post Office to digitise its processes via a phased approach and bring the services into the 21st century.

However, come October 5, 2022, Sunrise alleged that it was told by the Post Master General that “the overall costs” involved in the digitisation process meant it had to be put out to tender in accordance with the Public Procurement Act. “Despite having an executed contract with the Bahamas Post Office as it relates to phases two through five of the digitisation project of the Bahamas Post Office, the claimant entered the procurement process with other competitive bidders and was awarded the contract pursuant to the provisions of the Act,” Sunrise’s statement of claim alleged.

“That since having successfully bid for the work to perform the digitisation of the Bahamas Post Office, and the same being published by the Government in accordance with the provisions of the Act, the Bahamas Post Office as the procuring entity has failed to perform the requisite steps as outlined in the Act for the formal contract to be issued in breach of the provisions of the Act. “Further, the Bahamas Post Office has been entertaining bids for the same work to be performed by other suppliers.” Sunrise is claiming that officials failed to provide the necessary information to advance a Cabinet paper that was necessary for the contract to be awarded.

Sunrise is alleging that the failure to issue the contract, in line with the award, or a formal cancellation or suspension notice while entertaining rival providers, all represent Public Procurement Act breaches.

Mr Ferguson told Tribune Business that the ministry was totally familiar with Sunrise Communications and its capabilities, having developed its website and that of the Department of

Housing’s - together with their security and digital links - prior to it being splitoff from transport in the last Cabinet reshuffle.

Explaining Sunrise’s involvement with the Post Office’s digitisation, he said it had initially begun work in February 2022 with the first stage configuration of its website including content and security features.

Once that was completed, Mr Ferguson said the company submitted a proposal for what it envisaged would be the second through fifth stages of development.

“Now we were going to make it more advanced; to turn it into a courier service and digitise all the processes related to the postal side,” he added. “Just like Go Postal and Mr Ship It, we were taking it [the Post Office] to that level, providing that level of service to make them premier couriers.

“We were starting with imports and, in the early part of 2024, if everything went right, we would move into being able to process exports - a more affordable, faster way of doing it. That was the plan.”

Mr Ferguson said the proposal was agreed and signed-off by thenpost master general, Jennifer Johnson, but the cost involved exceeded the threshold at which contracts had to be put out to tender - especially since the Ministry of Finance wanted the work done in one go.

The Sunrise chief said the Post Office contract was duly put out to tender, which his company won, only for it to be re-bid after officials “muddied up the whole thing” by suggesting the process was “flawed”.

However, when it went out to tender again, Sunrise duly won again.

Mr Ferguson said that, during both tender processes, Sunrise had continued working on the Post Office’s digitisation under the terms of its initial contract. “At no point in time did anyone from the Post Office or ministry write to Sunrise Communications to say: ‘Hey, guys, you need to stop the work’,” he added.

“There’s a process for that. If there’s any reason

why you want us to cancel or stop the work, put it in writing if there’s justifiable reasons. That’s not happened. They’ve said nothing to us. At this point, or shortly thereafter when we had won the award, was when we ran into all these stall tactics. It got to the point where the ministry just kept saying it’s under review, it’s under review.

“We stopped working in it after the last meeting with the Post Office in July.

I told the team we were not getting any traction. The ministry kept on telling the post master it’s under review. We were awarded the contract, it’s posted online, but they’re not reaching out via e-mail or asking to meet. They’re not engaging at all,” Mr Ferguson added.

“The Prime Minister is saying young Bahamian companies should have the opportunity. Here it is now.

They have this US company coming into to try to do the work without even going through the procurement process.” Mr Ferguson declined to identify the company he was speaking about or say anything further on this.

He added that, after the April 28, 2023, confirmation that Sunrise had won the bid, officials said there may be a slight delay in contract execution given that funding would likely be made available in the new Budget year set to take effect from July, but then there was nothing apart from “radio silence’.

“I had to take legal action. It got to the point where I was severely out of pocket,” Mr Ferguson told Tribune Business. “We had a legitimate expectation.

I went away with the Post Office to meet the logistical firm who may have been the co-ordinator for us. We’re doing these things together, coming together in chat groups back and forth, and now nothing...

“For me, I’m disappointed that we are trying to advance the country in the 21st century. We are trying to offer services that

would be beneficial. We thought this service would add revenue to the country, give the other courier services competition to lower their prices or improve their services in the industry.

“I’m disappointed that we are trying to get our footing, but it’s always the foreign companies that edge out the rest of us or, if you are not in that circle, you are edged out. You have to be in the clique or a foreign entity. It’s not a fair play.”

Sunrise Communications opened in summer 2018, Mr Ferguson said, and now employs around seven to eight persons including technicians and accountants. “I can’t be a cry baby about it and close up shop,” he added of the Post Office affair, confirming that its global communications services platform remains operational and it continues to work on other small projects.

However, Mr Ferguson said its web services arm has been “severely limited” because he is unable to pay the development team until reimbursed for work performed on the Post Office project. “We have other projects lined up, but we are limited in what we can do until we get it sorted out,” he added.

“We’re going for full value of everything. We

were prepared to settle for the work done. We gave them a road map for everything that was completed and not completed, and our costs.”

Ashley Williams, the attorney representing Sunrise and Mr Ferguson, said in a statement: “The Prime Minister in my view has stated his government’s policy in relation to the Public Procurement Act, which position is as previously quoted in The Tribune is: ‘It is high time young Bahamians were given equal opportunity to compete for Government contracts’.

“As a young Bahamian myself I concur with the Prime Minister’s policy.

However, what we have in this matter is a young Bahamian who successfully went through the process, but [this] has resulted in him and his business being marginalised in relation to the awarded contract.

“This, in my view, is firmly against the policy as I understand it, which was articulated by the Prime Minister. So, in bringing suit, our aim is for justice for the claimant but also to create a framework so that no other young Bahamian will experience what he has as they attempt to climb the economic ladder in this country.”

THE TRIBUNE

Monday, December 4, 2023, PAGE 3

Gov’t: We won’t add to gasoline pump prices

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A CABINET minister is voicing hope that reductions in global oil prices and energy costs will give Bahamian petroleum retailers some relief outside their long-desired 30 cents per gallon margin increase.

Michael Halkitis, minister of economic affairs, told Tribune Business the Government is still against granting the industry a margin increase for fear it will increase costs at the pump for consumers. His restatement of the Government’s position comes as the Bahamas Petroleum Retailers Association last week argued that the drop in global oil prices means “this is the time” to approve a rise.

“It’s going down, it’s starting to trend down,” Mr Halkitis said of global oil prices. “We have to watch it to see what it does. And, in some forecasts, it will continue to trend down particularly because of slowing of growth in China, which drives a lot of prices. But we have to keep an eye on it.”

Rejecting retailers calls for a margin increase, the minister added: “We continue

our discussions with them.

Again, we recognise the difficulty that they’re in. That is why we brought some temporary relief last year to them. We’re hopeful that we can see soon some reduction in electricity costs, which impacts them..... see that start to level off and trend downwards and then, of course, gas prices affects that as well.

“We explained to them that we don’t want a situation where we’re adding directly to the price. So we’re looking at some different permutations of things that might happen. Some ways you can address it without increasing the price at the pump, and continue to look at that because it’s not an easy situation. So we thank them for their forbearance and we’re committed to work.”

The Government in 2022 sought to give Bahamian petroleum dealers “breathing room” by providing the industry with tax rebates totalling $6m - $5.5m in cash and $500,000 as offsets to some of the taxes owing by operators.

However, Raymond Jones, the Bahamas Petroleum Retailers Association’s (BPRA) president, told Tribune Business that implementing the industry’s margin increase now would

still result in a “net” reduction in gasoline prices for consumers and fulfill the Government’s objective of not imposing further cost hikes on the public.

He added that the previous week’s price drop of around 64 cents per gallon had given the Government sufficient space to implement the margin increase without hurting Bahamian consumers, which would ensure retailers can survive in an environment where their fixed, inflexible margins have been “eaten up” by multiple cost hikes due to the inflation that has dominated the post-COVID economic landscape.

“The current situation is this,” Mr Jones told this newspaper. “The Government has maintained a position that it cannot do anything that drives the price up. In the last week, we had a 64 cent decrease in the price of fuel in one day.

“It’s time to shake the tree a bit. The price has dropped significantly. This is the time to give us an increase of 25 cents. That’s a net, net win.

The consumer will still see a 39 cents drop in the pump price. If you are waiting for it to drop, you got the drop.

We don’t want the increase to take away the drop. We

Bahamian realtor generates $100m sales after rebrand

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A REBRANDED Bahamian real estate firm generated $100m in property sales during its first week of operating under two international industry names.

Scott Durkin, Douglas Elliman’s president and chief executive, told Tribune Business the partnership with Knight Frank - which has led to the formation of the Isles Group - is

already bearing fruit. “Just last week, they did $100m in sales. There were two or three large purchases and it’s really exciting.” he said.

Highlighting the continuing growth potential for the high-end Bahamian real estate market, Mr Durkin pledged that the Isles Group will “continue to put The Bahamas on the world map” as a destination for foreign buyers with a favourable tax regime and proximity to the US. Douglas Elliman brings a focus on the US real

estate market, while Knight Frank takes a more global view. Their tie-up, via the Isles Group, aims to create the largest referral network for Bahamian properties so that clients have maximum international exposure.

Paddy Dring, Knight Frank’s global head of prime sales and joint head of its private office, said: “We’ve never had the opportunity like we now have to offer our clients, both overseas and here in The Bahamas, access to the global markets.”

only want a portion of that so it allows us to survive.

“Retailers are on the verge of closing down. It’s almost impossible to operate with the current margins and current operating cost expenses.

We need relief, and are only asking for 25 cents a gallon. We understand the Government’s position, not wanting to put more cost on the public. We understand that,” he added.

“But as business people we need to be able to maintain our employees, pay our bills and stay in business.”

Mr Jones said the 25 cents increase in the gasoline margin that the Association and its members are now seeking would likely increase the average road user’s weekly fuel bill by less than $5.

“We’re asking the Government to support us, help us out and give us an increase so we can survive,” he pleaded anew. “Many retailers have been talking about throwing away the keys. I said: ‘Hold on. The Government’s got to see a way through to give us an increase so we can survive’,” he added.

“This is the time. If they give a 25 cent per gallon increase the consumer will see a net decrease of 40 cents per gallon. We feel that if they do that the price will

The Bahamas is one of the top markets for Knight Frank’s high net worth clients, and he added: “It doesn’t necessarily suit everybody because of family or business needs, but I think increasingly over the years we’ve seen more and more people considering it as a location in which to live and relax.”

“It’s safe. It’s easy access for many parts of the world.

It has a history and reputation that is very strong and very known globally.” The Isles Group is headed by its chairman, David Dingman, and managing partner, James Mosko. It was originally founded in 2015 as Cross and Mosko before adopting its new name this year.

still go down significantly.

This is the time to give us a margin increase so we have hope of staying in business.

“At the end of the day, petroleum retailers are very, very frustrated at not being able to make money and are simply spinning the wheels, paying the cost of electricity, paying the cost of operations. People are so frustrated. They want to stop all gas and diesel sales and close up. That’s not good for the economy as there will not be enough service stations

to meet demand,” Mr Jones said.

“Twenty-five cents would be a small increase to keep these retailers and entrepreneurs in business. It’s been 12 years since the last margin increase, and look at all the costs that have gone up in that time. It’s absolutely ridiculous we’re at this point.

We’ve been talking to this administration for the last two years for 25 cents per gallon. Something needs to change.”

PAGE 4, Monday, December 4, 2023

THE TRIBUNE

Abaco cay warns PM BPL woe ‘unbearable’ FROM PAGE B1 island’s plight. And, while BPL has installed a generator on the cay, residents and second homeowners argued it is insufficient to meet energy demand while no technicians are present to address problems when they arise.

Warning that the absence of consistent electricity supply “has had a profound and dramatic effect”, the letter added that many Great Guana

Cay businesses “are struggling to stay afloat” as a result while residents have “lost countless” air conditioning units and appliances to power fluctuations and surges varying from 50 volts to 150 volts.

And community members also slammed “unaffordable” BPL bills stemming from the utility’s ‘glide path’ strategy to reclaim at least $90m in unrecovered fuel costs.

The letter asserted that one second homeowner, who

was not present on Great Guana Cay at all during the three months involved, still received “nonsensical” bills of $1,200, $900 and $830, respectively, despite no electricity being used.

Many other Bahamian islands and communities will doubtless sympathise with Great Guana Cay’s plight, since the story outlined in the letter is a familiar one that has been repeated numerous times.

A BPL spokesperson, confirming that the utility has

received the letter, blamed boats and vessels making “contact with” the underwater cable for the frequent power disruption.

While not defining this contact, which presumably results from vessels dropping or dragging their anchors, the spokesperson added that BPL is looking to the “possible upgrade” of Great Guana Cay’s current rental generation unit so that it is in position to take over when the underwater cable hits trouble.

They also disclosed that, long-term, BPL is seeking to build-in redundancy for all the Abaco cays by linking them all to an underwater power cable system. However, the spokesperson was unable to provide a timeline for the project given that it will cost the state-owned utility “several million dollars”.

“BPL is aware of the complaints from Guana Cay residents regarding their electricity supply.

Extensive work has been done rebuilding our network following Hurricane Dorian and the pandemic.

We have restored power to all communities in Abaco, including Guana Cay,” the BPL spokesperson said in response to Tribune Business inquiries.

“Presently, Guana Cay is receiving supplies from an underwater cable from mainland Abaco.

The island also has a standalone backup rental unit that is being maintained at a significant cost to the company.

Further, the underwater cable is the primary feeder for the island and most of the challenges with the underwater cable occur when there is some contact with motor vessels in the area.

“BPL also has a longterm strategy to address this. The Abaco Ring is an underwater cable system that loops all of the cays creating a back feed that serves as redundancy in the event a primary feeder is lost. At present, we do not have a timeline for this project as it is anticipated to cost several million dollars,” the spokesperson added.

“We do understand the frustration of our Guana Cay customers and are looking at interim measures to improve the supply of electricity to the island.

This includes the possible upgrade of the current rental unit to meet the island’s power needs if there is a fault on the underwater cable.

“Overall, our priorities are to adequately maintain

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our current generation and transmission and distribution systems, as well as ensure sufficient capacity to meet Abaco’s growing demand from major projects like Montage Cay.” Solutions likely cannot come soon enough for Great Guana Cay residents.

“We are writing to bring to your attention a pressing issue that has been plaguing the residents of Great Guana Cay in the Abacos and is threatening the economic and social well-being of the community,” the letter to Mr Davis stated.

“The situation has become unbearable, and it is our earnest hope that you, as the Prime Minister, can address this matter urgently. We understand the challenges that face the nation, but we kindly request your support and intervention in securing the necessary resources and attention to restore and improve the power infrastructure on Great Guana Cay. “The restoration of consistent power will not only relieve the burdens faced by residents, second homeowners and local businesses, but will also encourage tourism to thrive once again, providing a much-needed boost to our local economy.”

The letter, which was also copied to John Pinder, the central and south Abaco MP, and Jeremy Sweeting, Hope Town District Council chief, affirmed that Hurricane Dorian’s devastation had left Great Guana Cay “in disarray” with extensive infrastructure damage including to the BPL grid.

While power was restored in 2021, around two years after the Category Five storm’s passage, “It is being run through the original underwater marine line to Guana Cay, which is in a continual state of being repaired and patched, resulting in an extremely inconsistent power supply with approximately 182 days of outages over the last two years”.

The letter added: “While the community is left with the old marine line that is constantly being damaged, there is a new existing line that runs to Baker’s Bay on the north end of the island that is not being utilised.

“As you can imagine, the residents, second homeowners and businesses of Guana Cay are asking why a new line was run to Baker’s Bay when it wasn’t even needed and is not being used, yet the community finds itself left at the mercy of a worn out and deteriorating underwater line that seems to break every other week.

“And while BPL has placed a generator on the island, technicians are

not allowed to stay on the island to monitor the generator and address problems when they occur. Without a technician we experience even more time without power as technicians often cannot arrive until the next day.”

Pointing out that the generator, even when operational, cannot meet Great Guana Cay’s energy demands such that there are still residents “who are not receiving power”, the letter added: “The inability to provide consistent power has had a profound and dramatic effect on the homeowners, local businesses and second homeowners.

“Many second homeowners who attempted to invest, rebuild and come back to the island have thrown up their hands in frustration and have decided to move to other locations to invest their time and money. Furthermore, it has become a significant deterrent to tourism, which is not crucial not only for the local economy of the Abacos but The Bahamas in general.”

Besides undermining residents’ efforts “to maintain a reasonable standard of living”, the Great Guana Cay community said the frequent BPL outages are forcing them to incur “financial hardship” through the added cost of having to operate generators and source associated fuel. And he use of generators is also increasing the release of contaminants and pollutants.

“Local businesses, which largely depend on tourism, are struggling to stay afloat due to the lack of a reliable power supply,” the letter added. “The fluctuating power hampers the operation of restaurants, bars, dive shops and other tourist-related services, creating a negative image and discouraging visitors, and resulting in second homeowners looking elsewhere to build.

“Further, residents and second homeowners have lost countless air conditioning units and other small and large appliances due to voltage as low as 50 volts and surges as high as 150 volts..... Further, many residents with medical issues requiring CPAP machines and other medical devices that rely on power are at a significant risk due to the inconsistent, and often nonexistent, power supply.”

Pedro Rolle, BPL’s chairman; Shevonn Cambridge, the utility’s chief executive; and Toni Seymour, its chief operating officer, were all copied on the letter along with the media.

THE TRIBUNE

Monday, December 4, 2023, PAGE 5

Higher for longer

By CHRIS ILLING CCO ActivTrades Corp

H

opes remain for a continuation of the year-end rally on the equity markets. After the recent price gains, investors are hoping for such an outcome. In the coming week, economic data and signals from central banks are likely to dominate events.

While it was relatively quiet on the international stock markets during the latest Thanksgiving holiday, we can expect more impulses from the US and European indices again this week.

On the stock market, there has recently been a clearly recognisable trend towards more “security”.

Companies of a certain size, which are less dependent on external capital, are particularly in demand.

This is one of the reasons why large and mega caps have risen sharply recently compared to small capitalisation stocks.

Some interesting data from the US and Europe will be published, which could help breathe new life into currently somewhat dormant share prices. And one or the other major central bank chiefs could come into focus with news.

Today, the president of the European Central Bank (ECB), Christine Lagarde, will give a speech, and on Friday, the chair of the Federal Reserve, Jerome Powell, will follow with his statements.

In view of the gains in the S&P 500 of around 8 percent since the beginning of November 2023, however,

the air for an upside is getting thinner. In addition, the leading index has still not managed to sustainably overcome 4,600 points.

Over the course of the week, investors will focus primarily on the growth momentum in the US. After all, the strength of consumption and the economic vitality of the world’s largest economy are central factors that will have a significant influence on the Federal Reserve’s interest rate meeting in mid-December.

On Thursday, therefore, attention will be on the personal income and spending of US citizens, as well as the US Federal Reserve’s preferred inflation indicator, PCE (private consumption expenditure). The core rate of private final consumption

expenditure excludes volatile prices for food and energy.

Presently, the market does not expect further interest rate hikes in the US. After all, key interest rates have been raised by more than five percentage points since March 2022.

The slogan “higher for longer” is currently making the rounds. It describes the prospect that higher interest rates will probably persist for a longer period of time.

In the euro region, the focus will be on the inflation data in November.

They will be published on Wednesday and Thursday.

After inflation fell significantly in October, experts expect a slight decline in November.

PAGE 6, Monday, December 4, 2023

THE TRIBUNE

Gov’t loses intervention on $12m cruise ship sale VAT FROM PAGE B1 price generated from disposing of the two ships and, indeed, if it succeeds.

“If they start doing this, no one will sell ships in The Bahamas or arrest ships in The Bahamas,” they said.

“If there’s a chance they could incur VAT, they’re not going to arrest it. That’s problematic because we’re a major maritime country and have hundreds of ships on the registry. This is going to have effects long-term that we’re going to have to navigate. Whatever determination is made will be problematic for sure.”

The $128m proceeds from the June 2022 sale of the two former Crystal Cruises ships currently lie in escrow accounts amid ongoing efforts to determine the order in which creditors get paid and how much. The Attorney General’s Office, though, made its bid to intervene on the Department of Inland Revenue’s behalf on May 30, 2023, with further legal filings taking place in June this year.

Dexter Fernander, a senior tax manager in the Department of Inland Revenue’s VAT department, affirmed that on October 20, 2022, the tax authority assessed $11.636m “as due on the sale of the vessels which was served on the Admiralty Marshall the same day. The Admiralty Marshall accepted that the sales were subject to VAT and requested that the assessed tax be paid out of the joint accounts”.

The Attorney General’s Office, in its arguments, asserted that “the result of these proceedings will have a material impact upon the VAT Department collecting VAT due and owing”.

As a result, it argued that the Department of Inland Revenue “has a material interest in being involved at every juncture of these proceedings”.

This, though, was disputed by DNB Bank which argued that the Government has no interest in the cruise ships or sales proceeds.

“While the comptroller has assessed the [Admiralty]

Marshall for VAT on the court sales, the marshall does not own the sales proceeds,” it alleged, arguing that the $128m represent the fruits of a judgment it has obtained.

“The comptroller’s claim is.... against the marshall and, as such, the issue is between the claimant and the marshall as to whether the VAT could be a marshall’s expense. If the bank is unsuccessful in its application against the marshall’s expenses, then will the marshall potentially have a claim against the proceeds, and the bank is still contesting the assessment on narrow tax law grounds.”

Justice Hanna-Adderley, noting that the Department of Inland Revenue intervention was based on the argument that “VAT is to be applied on the sale of the vessels, and that following the assessment of the same ought to be paid”, recalled that sufficient funds have already been set aside in escrow to cover the potential $11.636m VAT liability.

Acting justice Ntshonda Tynes, on December 19, 2022, ordered that $9.364m and $2.273m of the sales proceeds from the Crystal Serenity and Crystal Symphony, respectively, be placed in escrow to cover the potential tax payout.

The Government had failed to show how its interests would be “injuriously affected” as a result.

Justice Hanna-Adderley, noting that the VAT dispute has yet to be resolved and remains live, effectively told the Attorney General’s Office to employ an alternative route to advance its claim and that it had acted prematurely.

“Obviously the Attorney General’s Office’s application to intervene is to ensure the VAT Department receives the totality of sums on what they assert is the VAT applied on the sale of the vessels and prevent the payout by the Admiralty Marshall to the claimant bank as such a payment can only be made to a judgment holder or by consent,” she wrote.

“By then Justice Tynes’ orders provisions have been made for the setting aside of the sums the Attorney General’s Office asserts are owed to the Department of Inland Revenue as the VAT levied on the sales of the vessels.

“It is for this reason that I am of the view that, at this juncture in this action, it would not be necessary for the intervention of the VAT comptroller. There is, of course, no bar to the comptroller of VAT commencing an action against the owners of the vessels as I fully expect other creditors to do.” In dismissing the application, the Supreme Court

ordered that the Department of Inland Revenue pay legal costs.

Financial strife at its immediate parent caused Crystal Cruises, which pioneered home porting in The Bahamas alongside Royal Caribbean, to initially suspend operations in early 2022 with the hope they could be restarted in April. This was to allow management to assess the company’s business, and determine its future options, as the parent was set to run out of cash by end-January 2022, but all rescue efforts proved futile and the cruise line was wound up.

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Monday, December 4, 2023, PAGE 7

$110m marina project in ‘accelerating’ sales FROM PAGE B1 as 120 slips.” Mr Chamberlain added that Legendary Marina believes its dry boat storage facility, which will be constructed to ensure it can withstand Category Five strength hurricanes, can give it a competitive advantage over all rival Bahamas-based marinas.

“Legendary Marina at Blue Water Cay will be the first world-class dry boat storage facility in The Bahamas. The dry storage building will provide hurricane-rated protection against winds up to 185 miles per hour, giving our members worry-free boat storage,” he added. “This is a welcome development as it will satisfy the hurricane plan requirements for most boat insurance carriers.

“Legendary Marina will provide concierge services which will allow members to request their boat to be launched days, weeks or months in advance, with additional provisions such as fuel, water, ice and the boat will be ready and waiting in the water when the member arrives.

Hotels, beachfront villas, restaurant, tiki bar, retail shopping will all combine to make this marina stand-out in The Bahamas.”

Tribune Business understands that Legendary Marina, which will be located almost due south of the Freedom Farm baseball field and can presently be reached by driving due south past Checkers’ Fox

Hill outlet, is due to hold its official ground-breaking this week with Prime Minister Philip Davis KC likely to attend.

The developer, in a just released sales brochure, says it obtained all the necessary planning and environmental approvals earlier this year, with the Certificate of Environmental Clearance (CEC) arriving in May 2023. The project’s first phase is now expected to open in spring or summer 2025, with membership pricing ranging from $330,750 to $1.35m Explaining the project’s rationale, the developer added: “Several challenges have kept most boaters from making the journey across the Gulfstream to the islands on their boat, whether it’s the distance, concern for the weather or the seas, or not having a marine service centre in case of a mechanical problem, many boaters have opted to instead visit The Bahamas on a cruise, by plane...... or not at all.”

Pledging to solve these challenges, it added: “This was the vision of the founding partners of Legendary Marina Resort at Blue Water Cay, William Pizzorni and Peter Bos..... The idea to create such a destination - truly the first of its kind in The Bahamas – was the result of a fortuitous meeting in March 2021.

“Realising how impactful a dry stack marina would be to the boating market in The Bahamas, a

partnership was created to boldly attempt what had never been done before.

After the technical aspects like creating a partnership and closing on the land was completed, the real work began in land planning this ambitious project.

“After meeting with several ministries and regulatory agencies, the Legendary team realized this would be a unique entitlement process....

Step one was introducing the Legendary family to the decision makers and explain how the project that we envisioned could truly change boating in The Bahamas,” the Legendary sales brochure said.

“By allowing the new and current boaters to experience so much more of The Bahamas, including the Out Islands, more boaters will discover the unique charm and the virtually unlimited water and beach experiences that were previously only available to a few or the experiences of others....

“As the project was introduced to the various ministries, government officials commented on the need to demonstrate how this project will benefit the Out Islands.... When it was explained how Legendary Marina Resort will bring tourism to the outer islands through our centralised location and proximity to Lynden Pindling Airport, officials and residents alike began to really understand the rationale and support the project.”

LEGENDARY BLUE WATER CAY MARINA Legendary Marina, in previous submissions to government agencies, pledged to transform “a hazardous location” blighted by trash dumps and stolen boats via a project that will create 220 permanent jobs at full build-out.

It is forecasting that its 20-acre site will attract 16,500 extra annual visitors to The Bahamas once the phased nine-and-a-half year construction process is completed.

The April 2022 economic impact assessment for Legendary Marina Resort, prepared by Tourism Economics (Oxford Economics), calculates the project will have a total $789m economic impact and boost annual Bahamian gross domestic product (GDP) by $483m over a

25-year period. This translates to an average total annual impact of $31.56m, and GDP effect of $19.32m, over that period.

The assessment also predicted that the marina, and associated amenities including hotel, condominiums, mixed-use retail/office facility, boat storage, fuel and Customs/Immigration post, will boost Bahamian worker income by a cumulative $154m over that same 25-year period and create “an average of 375 additional full-time equivalent jobs” both directly and indirectly. When the 25-year average is calculated, the wage impact is a more modest $6.16m per year.

“Government revenues from the additional economic activity would total

$158m (in 2022 figures) and would outweigh proposed concessions by a factor of 2.4,” Tourism Economics calculated.

The study showed that, over Legendary Marina’s first 25 years, the developer estimates that it will receive tax breaks totalling some $66.3m, consisting of $38.2m in waived real property tax payments and $28.1m in foregone VAT and import duties on construction materials.

It then argues, though, that this will be more than offset by increased revenues elsewhere that the Government will not otherwise gain, including $47.8m worth of VAT and some $74m in Stamp duties.

PAGE 8, Monday, December 4, 2023

THE TRIBUNE

PM’s challenge over climate loss funding

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Prime Minister has challenged the world’s largest economies to deliver on their pledges to provide sufficient financing to help The Bahamas and

others recover from climate change-linked disasters.

Philip Davis KC, addressing the United Nations (UN) climate change (COP28) conference, voiced scepticism that wealthy countries will show enough “urgency” in capitalising the long-proposed

‘loss and damage’ fund given that “time is a luxury we do not have”.

A deal to establish such a fund, which would provide financing to poor, small and vulnerable countries to enable them to recover from natural disasters such as hurricanes, was announced on the COP28 summit’s first day.

But Mr Davis, while giving a cautious welcome to this development, questioned both whether the promised financing will be

enough and if it has come in time. “We welcome the pledges made in the past two days at this COP to the ‘loss and damage fund’,” he said. “Surely this puts beyond doubt and debate that the principle has now been settled: ‘The polluter pays’.

“But it has taken 30 years to agree that there should be a fund for ‘loss and damage’. And in 13 years we have not yet hit the original pledge goal of $100bn per year. How long must we

now wait to have this new fund capitalised? And how long must we wait before we can access the funds?

Time is a luxury we do not have.

“And so we are left wondering how we should interpret the pledges of this COP. So little pledged, given what is needed. So late in the day, given what is forecast. Is the effort here more to reduce the ‘noise pollution’ generated by our advocacy, rather than to address the ‘carbon reduction’ and ‘climate financing’ so urgently needed?” he added.

“Are we expected to remain quietly grateful? Frankly, we do not understand why everyone does not share our sense of urgency. Doing what is needed to help us, also helps you. Will you not act urgently to save yourselves?”

The ‘loss and damage’ fund’s initial financing was said by international media to be close to $429m. Some $245m will come from the European Union (EU), including $100m from Germany. There is also $75m from the UK, $24.5m from the US and $10m from Japan.

However, the resolution creating the fund did not mention scale or how often it will be replenished as financing is used up. This raises questions about the fund’s long-term sustainability, and given that climate change ‘loss and damage’ is estimated to be around $400bn annually already, there are also doubts as to whether the monies pledged to-date are even close to being adequate.

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PHILIP DAVIS KC Suggesting the international community needs to review its priorities, Mr Davis said: “We still live in a world where financing always seems immediately available for the bullets and the bombs. This is a choice.

We still live in a world where narrow economic interests continue to drive an increase in the burning of fossil fuels. This is also a choice.

“But we have no choice.

Our plight is not seen in the images of women and children bleeding in the streets.

Our plight is mostly invisible: The slowly-warming seawater, slowly rising up through our porous limestone islands. The slowly dying coral, no longer able to support the slowly-dying fish.

“By the time our plight is made visible for all to see, our luck will have run out. It will be too late. The storm will have passed. We can only pray that there is something left to see.

Friends: we simply want to live.”

Avi Persaud, an adviser to Mia Mottley, the prime minister of Barbados, said: “This is a hard-fought historic agreement. It shows recognition that loss and damage is not a distant risk but part of the lived reality of almost half the world’s populations and that money is needed to reconstruct and rehabilitate if we are not to let the climate crisis reverse decades of development in moments.”

THE TRIBUNE

Monday, December 4, 2023, PAGE 9

NOTICE NOTICE is hereby given that SHANICE PALMER, Caravel Beach, Grand Bahama, Bahamas 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 4th day of December 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE NOTICE is hereby given that MARCSENE PASCALE of Lincoln Boulevard, New Providence, 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 27th day of November, 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

PAGE 10, Monday, December 4, 2023

THE TRIBUNE

NOTICE NOTICE is hereby given that KADRICK RAQUAN WALTERS, Shrimp Road off Carmichael, Nassau, The Bahamas, Bahamas 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 4th day of December 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE NOTICE is hereby given that ASHLEY PAGE TOMLINSON, Caves Village, Nassau, The Bahamas, Bahamas 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 24th day of November 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

PAGE 12, Monday, December 4, 2023

THE TRIBUNE

PHARMACISTS URGE FOCUS ON MEDICAL GRADE MARIJUANA

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Bahamas Pharmaceutical Association’s (BPA) president says the industry want medicalgrade cannabis only and is opposed to wholesale plant distribution as part of the

Government’s legalisation process.

Marvin Smith told Trib une Business that while the debate over medical marijuana is not new, the BPA and wider industry must clarify its position given that the Government is poised to make marijuana legal for medicinal purposes and use pharmacies as dispensaries.

“Clearly, as pharmacists, this is a medicine and can’t be advocated for recreational use. You cannot recreationally use medicine. We’re not advocating for a physician to write and say you can smoke a joint three times a day, because no physician in their right mind would do that,” Mr Smith explained.

“Because when they prescribe something, they have to prescribe things based on potency, formulation, dosing and those types of things. Nobody knows the potency of a joint.”

The BPA president pointed to a paper produced by Dr Marcus Cooper on behalf of the Medical Association of the Bahamas (MAB), which

advocated that if marijuana is legalised for medicinal purposes it should be made medical grade and pharmaceutical grade so consumers know the potency of each dose.

“In every dose you should know what the potency is. We should know how many tablets, inhalers or whatever else that we have to use per patient. Those sorts of things are critical because you’re dealing with trying to treat a disease,”Mr Smith said.

“While there are a lot more dosing guidelines for CBD (Cannabidiol) by itself, there aren’t a lot of guidelines for cannabis.

And because it’s an emerging science, we agreed with the Government that they should open up the medical market for cannabis. And in doing so, if it’s a medicine, it should be treated as a medicine, which means that we’re not talking about whole plant marijuana.

“We’re not talking about come into my smoke shop and smoke up and all that stuff. We’re talking about pharmacy grade-products that have been manufactured, have quality assessment and quality analysis done so we know exactly what’s in something.”

Bahamas re-elect to the IMO’s council THE Bahamas was last week re-elected to the council of the body that oversees the global maritime industry and its regulation.

This nation, which boasts the world’s eighth largest ship registry featuring more than 1,400 vessels, was re-elected to serve another two-year term on the International Maritime Organisation’s (IMO) council during the body’s general assembly held in London.

The Council is the IMO’s executive arm and is responsible, under the Assembly, for supervising its work. The Bahamas is one of 40 IMO member states elected by the Assembly to the Council.

These countries are ten split into three groups, with ten making up Category A council members; another ten in Category B; and the final 20 in Category C. The Bahamian delegation to the IMO general assembly was headed by Zane Lightbourne, minister of state for the environment and natural resources, along with Paul Rolle, who serves as The Bahamas’ ambassador and permanent representative to the IMO in London.

The Ministry of Foreign Affairs, in a statement, said The Bahamas has “consistently been one of the highest-ranked flags with a low-risk factor in the regional port-state Memorandum of Understandings (MoUs” as well as meeting US Coast Guard regulatory standards.

“The Bahamas is a strong supporter of the role of the IMO as the global maritime regulator,” the Ministry added. “The Bahamas consulted and collaborated with all member states leading up to and including Maritime Environment Protection Committee 80 in July 2023 to adopt the IMO Revised Strategy on the Reduction of Green House Gases from international shipping.”

The Bahamas was also said to have submitted discussion papers on issues such as the safety of watermist fire-fighting systems; the maintenance and safety of lifeboat launching systems; passenger safety; MARPOL record books to prevent pollution by ships; and the regulation of ventilation systems for enclosed lifeboats.

UN ATOMIC CHIEF BACKS NUCLEAR POWER AT COP28 AS WORLD RECKONS WITH PROLIFERATION

By JON GAMBRELL Associated Press THE world wants more nuclear energy as a means to fight climate change and supply an ever-growing demand for electricity, part of a generational shift in thinking on atomic power, the head of the United Nations nuclear watchdog said Thursday.

Rafael Mariano Grossi, the director-general of the International Atomic Energy Agency, made the comments in an interview with The Associated Press at the COP28 climate talks. He called the inclusion of nuclear power at the summit, where he said a major nuclear agreement was likely, showed just how far the formerly “taboo” subject had come decades after the disasters at Three Mile Island and Chernobyl.

However, he acknowledged the challenge still posed for his agency in monitoring nuclear programs in countries, particularly in Iran after the collapse of its 2015 nuclear deal with world powers.

“This used to be easier when this international consensus was there and so Iran could see that this was not about political pressure, but a widespread approach that was to see a Middle East, one of the — if not the most — volatile region in the world, not to add to the mix the possibility of a country getting nuclear weapons,” Grossi said.

Grossi said more countries getting nuclear weapons could create a “domino effect.”

“So it’s a very, very complicated and potentially dangerous trend,” he said.

Grossi, who had just arrived in Dubai from Paris, said he spoke with French President Emmanuel Macron about the likely nuclear announcement that will include “a

public commitment in favor of nuclear energy, which in a way that we have never seen before.” He said such an arrangement with the backing of world powers could see nuclear energy become attainable by more nations.

Nuclear power does not produce greenhouse gas emissions, a plus as the world works to reduce emissions. Still, nuclear is sharply opposed by many environmentalists because of its waste.

Macron is expected to speak Saturday at the COP — or Conference of Parties.

The talks are taking place just across the Persian Gulf from Iran.

Iranian President Ebrahim Raisi, who had been scheduled to take part in the summit, now will not attend the talks over it including Israeli officials, the state-run IRNA news agency reported late Thursday. Iran’s energy minister will attend instead, with Iran’s foreign minister calling the Emirates complain over Israel’s inclusion during its war in the Gaza Strip against Hamas after the militants’ Oct. 7 attack.

In Iran since the collapse of the deal, the IAEA’s access to the country’s program has been restricted, to the point that inspectors haven’t been inside its centrifuge manufacturing plant since February 2021.

Asked if it was possible centrifuges could have been diverted elsewhere by Iran outside of the IAEA’s watch, Grossi said: “We don’t know — and our estimation is that production is continuing.”

Meanwhile, Iran has begun pulling permission from veteran IAEA inspectors, further hampering its ability to monitor Tehran’s program as it now has enough enriched uranium to potential build several atomic bombs if it chose.