12172021 BUSINESS

business@tribunemedia.net

FRIDAY, DECEMBER 17, 2021

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MACUSHLA PINDER

ZNS anchor stripped of $27,500 Scotia award

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A ZNS TV anchor has been stripped of the $27,500 damages she won from Scotiabank (Bahamas) after the Court of Appeal found there was “no basis in law” to hold it responsible for her loss.

Sir Michael Barnett, the appeal court’s president, in a unanimous December 15 verdict ruled that Macushla Pinder, who anchors the state-owned broadcaster’s weekday Bahamas Tonight programme at 7pm, was instead responsible for her own misfortune because she failed to monitor her account and “immediately” report the unauthorised withdrawals that were occurring.

Noting that Mrs Pinder’s case was based on Scotiabank having breached both the Personal Financial

SEE PAGE 4

‘Slippery slope’: Don’t exploit private aviation

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas must “nurture rather than exploit” a booming private aviation market that can become increasingly “fickle” if hit with increased taxes, a prominent industry executive is warning.

Rick Gardner, director of CST Flight Services, which provides flight co-ordination and trip support services to the private aviation industry throughout the Caribbean and Latin America, told Tribune Business that The Bahamas is “very well-positioned to benefit” from the sector’s explosive post-COVID growth.

Revealing that his company’s “numbers through the end of September” 2021 show more flights than for the whole of 2019, the last full year before the pandemic, he added that “everything is lining up very nicely for The Bahamas” when it comes to expanding a niche that has been a key driver in the country’s postCOVID rebound.

However, Mr Gardner warned that The Bahamas could find itself on “a slippery slope” if it over-exploits its private aviation success by targeting the industry and its clients as an increased source of taxes and fees for a cashstrapped Public Treasury as well as airport operators.

With the Nassau Airport Development Company (NAD) still planning to tap private aviation clients for a $28 per passenger

Insurers ‘trying to hold line’ on rate increases

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMIAN insurers yesterday warned businesses and homeowners that premium prices are again coming under “upward pressure”, with one pledging: “We’re trying to hold the line.”

Tim Ingraham, Summit Insurance’s president, told Tribune Business an increase in reinsurance costs for 2022 “would not surprise me” due to a reduction in market capacity as several companies pull-out after sustaining multi-billion dollar weather-related catastrophe loss payouts in recent years.

Affirming that he is “not expecting any decrease”, the Summit chief said that

while the magnitude of any reinsurance hike has yet to be determined at least some of this increase may be passed on to businesses and homeowners via higher property insurance premiums next year.

With some $2bn worth of insured risks on their books, but equity capital bases of around $50m or just above, Mr Ingraham said The Bahamas’ property and casualty insurance market was essentially a ‘price taker’ where premium prices are “pretty much out of our control”.

This is because they are driven by reinsurers, and the price they demand for insuring the bulk of this nation’s risk.

“I think it’s fair to say it’s what we refer to as a

SEE PAGE 6

Innovation Centre will benefit 1,500 students

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas’ first and “only” Centre of Entrepreneurship and Innovation will develop a business and technology incubator designed to benefit 1,500 students, it has been revealed.

The Centre, which is being part-financed by a $500,000 Inter-American Development Bank (IDB) grant, is targeting 15 new start-up businesses to be launched by University of The Bahamas (UoB) students and graduates within the first three years as it seeks to position The Bahamas for the digital era.

In addition, the project is also aiming to establish

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“at least five partnerships” for local and international firms, and start-up ventures, in technology and research and development (R&D) with women to be “at least 50 percent” of the 100 students involved.

Dr Ian Strachan, head of UoB’s northern campus, told Tribune Business that the Centre should be set-up and operational come August 2022 with the IDB and university in the final stages of concluding the grant funding. A Memorandum of Understanding (MoU) will also be signed with the Government-supported Small Business Development Centre (SBDC).

An IDB paper, explaining the rationale for the

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• ‘Nurture’ sector instead, urges Flying Ambassador • ‘Fickle’ market faces VAT hit as well as NAD fees • Just as ‘everything lining up nicely’ for Bahamas

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Court backs regulator’s FBI ‘bait’ broker wind-up • Commission right to ‘nip in the bud’ Gentile’s activities • EY accountants appointed as Mintbroker’s liquidators • Regulator chief says verdict not too late; work remains

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

fee to help finance $30m worth of infrastructure improvements, the Government has now removed the industry’s previous ‘zero rating’ status via reforms enacted alongside the VAT 10 percent rate cut.

The Prime Minister, in unveiling the changes to the House of Assembly, said they will mean private aircraft have to pay VAT on their fuel purchases and all other goods and services they access in The Bahamas. The industry is now VAT-able, and subject to paying the 10 percent rate, whereas it previously avoided the levy on both its inputs and outputs.

While some will perceive the private aviation industry’s relatively wealthy clients as being able to easily afford such tax increases, and question why such breaks were afforded in the first place, Mr Gardner warned that the sector can be “fickle” in his experience with just small fee and tax increases deterring some from flying to other destinations on principle.

THE Securities Commission’s intervention to “nip in the bud” conduct by a Bahamian broker/dealer once used as FBI “bait” was yesterday vindicated by a Supreme Court judge.

Justice Diane Stewart ordered that Mintbroker International, the former Swiss America Securities, which was owned and managed by its colourful principal, Guy Gentile, be wound-up under the Supreme Court’s supervision with the EY (Ernst & Young) accounting firm appointed as official liquidators.

Some may view the ruling as too late, given that Mr Gentile closed his Bahamas operations almost two years ago and exited this jurisdiction for Puerto Rico after purportedly returning all client assets to their owners.

He himself, and Mintbroker, alleged that a court-supervised winding-up would be akin to shutting the stable door after the horse has bottled as the broker/dealer “had less than $25,000 in assets” when the Securities Commission first presented its liquidation

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PAGE 2, Friday, December 17, 2021

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CHRISTMAS GIVING DOWN DESPITE HIGHER TARGETS

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Salvation Army yesterday said Christmas fund-raising is lagging slightly behind 2019 levels despite its target having increased by one-third due to the rise in persons needing assistance.

Melanese CoakleyMckenzie, its community relations and development associate, told Tribune Business that the number of persons seeking help has increased “significantly”

post-COVID as the organisation bids to meet its $200,000 Christmas Kettle Bell target.

“I can’t use last year’s comparison to this year because, due to the protocols that were in place, they were restricted in many ways last year,” she said. “What I can tell you is that our goal for this year presently is $200,000, and we are at about 45 percent of that with a week and some to go in terms of the bell ringing “In comparison we are slightly behind, bearing in mind what’s happening not only in The Bahamas

but around the world,” Ms Coakley-Mckenzie said, referring to 2019 donations.

As for corporate donations, Ms CoakleyMcKenzie said: “In that regard, what happens is up until Christmas Eve, we are still receiving donations.

So we have about another ten more days to go; about 45 percent of our Kettle Bell timeframe.

“In terms of corporate support, it is coming in. It’s a little bit different this year, of course. There are different types of organisations that are partnering in terms of making donations. CIBC FirstCaribbean would have

been assisting us to kick off the Kettle Drive for the last three years, which has been quite significant in terms of their commitment to the Salvation Army.”

Ms Coakley-McKenzie added: “But each Christmas, the donor who may decide to make a donation in terms of the Kettle, it can change based on our appeal and when the information goes out to the public. They change each year according to their corporate policies and stuff.

“So definitely, corporate Bahamas and Bahamians in general, they have all continued to be generous. We

were able to serve through the pandemic and we are still serving today; we just have to get creative in the ways when we receive the donations, how they are distributed.

“It does change according to what we receive, and may not be at the same level of giving in comparison to last year. Families would have maybe received something to the value of $150 per family. This year it maybe will be half of that, being $75 per family, because there again, the need still is there and it is great. So how do you address these issues man,

NAKERA SYMONETTE, Scotiabank’s director of business support (third from right), with the help of other bank volunteers and Hands for Hunger employees helps to transport care packages from the Hands for Hunger food truck to a sheltered portion of Sandilands Primary School for its students.

BTC CHIEF MEETS HEALTH MINISTER

ANDRE FOSTER, the Bahamas Telecommunications Company’s (BTC) chief executive, and Nicole Watkins, the carrier’s director of legal and regulatory affairs, met yesterday with Dr Michael Darville, minister of health and wellness, at his ministry. Pictured at the conference table, from left, clockwise, are Mr Foster; Mrs Watkins; Colin Higgs, the Ministry of Health’s permanent secretary, and Mr Darville.

Photos:Ulric Woodside/BIS

you may have on funding issues in terms of what the person may need,” Ms Coakley-McKenzie added.

“The need has never stopped since the pandemic. A lot of persons, if they are working, they may be only working a few days out of the week. That wouldn’t mean that any of the bills but they weren’t paying prior to returning to work they’re trying to catch up because the need has remained the same, it hasn’t lessened. It seems to have grown.”

SCOTIABANK volunteers fill the 75 care packages for students at Sandilands Primary in Fox Hill on Tuesday, December 7, to mark the bank’s 65th anniversary.

SCOTIABANK PARTNERS TO AID SANDILANDS STUDENTS SCOTIABANK (Bahamas) employees teamed with Hands for Hunger to spread Christmas cheer to students at Sandilands Primary School.

The partnership, which coincided with Scotiabank’s celebration of 65 years in The Bahamas, saw staff members pack and deliver 75 care packages filled with essential food items obtained from the Hands for Hunger pantry on Carmichael Road. The recipients were students at the primary school, which is located in the heart of Fox Hill.

“We are excited to continue our ongoing partnership with Hands for Hunger but, more importantly, to provide joy, cheer and meals to these

deserving children and their families during the Christmas season,” said Nakera Symonette, Scotiabank’s director of business support.

Precious FortuneThompson, Hands for Hunger’s outreach manager, said its pantry - which serves as a mini food store - is available for persons to shop for items that they need at no cost.

“We are so grateful that Scotiabank has continued to financially support us throughout the pandemic, and has also volunteered with us during this busy time of year. They have helped us to increase our impact throughout the community so persons in need can get the assistance,” said Ms Thompson.

Sandilands Primary School principal, Sheanda Maycock, said: “It is a pleasure for us to be here, and to receive the blessings from this organisation and from this partnership.

“We are here with our parents and students, humbled for this gift of love.

All we can say is thank you because, in these trying times, there are still people who remember to share Christ’s love by giving. We wish you a merry Christmas, a prosperous New Year. We are thankful. God bless.”

Since August 2020, Scotiabank Bahamas has provided $40,000 in cash donations to Hands for Hunger.

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Friday, December 17, 2021, PAGE 3

CHRISTMAS TREE VENDORS REPORT STRONG DEMAND

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

ONE Christmas tree vendor yesterday said demand is “busier” than the 2019 pre-pandemic festive season because it is almost sold out.

Brent Burrows Jr, CBS Bahamas (Commonwealth Building Supplies) manager of e-commerce and online shopping, told Tribune

Business that despite only carrying artificial trees demand has help up extremely well.

He added: “We were fully stocked for Christmas, not just decorations, but also small appliances, gifts, things of that sort. We knew that the supply chain was going to be an issue, so we’ve been working on Christmas from very early in the year, making sure we had not only the products but had them locked in at the right prices too.

“We still have a few left.

But we have sold a lot of the ones we brought in.

The decorations are selling quicker as people are preparing for Christmas. But in terms of, like, the gift items, tools, small appliances, things of that sort, we are well stocked. We just had two containers come in today, actually. So we’re looking pretty good through the Christmas season.”

Compared to Christmas 2019, Mr Burrows

said commerce seems to be “busier and more successful”.

Ryan Turnquest, owner/operator of Ryan’s Christmas Trees, added: “Christmas trees are moving this year. The prices are a bit higher but persons are understanding considering the news has been updating everybody on the increase in freight and the shortage of drivers and all that stuff, which obviously is affecting all the pricing.

PAINT SALES HOLD UP AMID SUPPLY WOES

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net PAINT suppliers yesterday said they are experiencing strong sales and have been able to meet customer demand despite the global supply chain bottlenecks.

Christine King, the Paint Place’s general manager, told Tribune Business that Christmas sales are going “pretty good”. She warned, though: “With the supply

chain issues and the shortage on raw materials, we are trying to work around that and do our best. We are supplying the needs and it has been really good, but the shortages have affected us.”

Detailing exactly how the supply chain woes have affected the Paint Place, Ms King added: “From one to ten, with ten being the worst, I would call this a seven-and-a-half out of ten.

I wouldn’t say we are at risk of selling out this year,;I would say we are trying

to improvise to meet the needs of our customers.”

For example, if customers want semi-gloss they may have to sell them the satin finish that is as close to semi-gloss as possible.

Ms King said: “It’s not a flat finish. If you know paint, there is flat, semi-gloss, satin, eggshell and various other finishes. Most persons would prefer semi-gloss as it is easy to wash down and easy to clean.”

The Paint Place will currently take “anything the supplier can send” given the sustained customer rush

to the store for paint supplies. Comparing this year’s sales to 2019, Ms King said they are “running even.

It isn’t like it’s a big loss or anything compared to 2019”.

Nyoka Johnson, the Paint Depot’s general manager, added: “People have been coming in. We do see an influx of local buyers. Compared to 2019 it’s almost on par, but I would say particularly [ever since] Thanksgiving I would say it is about 20 percent to 30 percent more from 2019.”

“But in terms of Christmas, the Christmas spirit is up. Persons are buying early and we’re on our last load of containers right now. Last year people had the spirit but they couldn’t really move about, but this year they are moving about and they are loving it.”

Family Christmas Trees, in a post on their Facebook page, notified customers that they have “completely sold out”. The message said: “You are the very heart and

soul of The Family Christmas Trees.

“We know you have options and we are truly grateful you’ve chosen us.

Loyalty is the very backbone of our business and it is our absolute privilege to share in your holiday magic year after year. Thank you, thank you, thank you to everyone that helped us, supported us, listened to us, showed up, kept us honest and most of all believed in us.”

Ms Johnson attributed this to people not having done any painting last Christmas due to the COVID-19 restrictions.

“You had people that are saying that they didn’t get a chance to paint in 2019, and they were anticipating painting in 2020, but we all knew what happened in 2020,” she added.

“So everyone is now at a comfortable position.

Everybody is doing a lot more painting and that’s great for us.” The supply chain shortages, though, are also taking a toll on the Paint Depot. Ms Johnson said: “We are experiencing heavy, heavy challenges with that.

“The issue we are facing now is that we can meet our demand, and we are doing our best, but we’re still suffering because in the US they’re having raw materials issues as well as production scheduling issues. So when they do get the raw material you’re in the queue for production, and then you go into shipping. There is a backlog of shipping.

“So we are really experiencing heavy challenges with that. For example, we placed an order for February for raw materials that we had scheduled to come in for September so we could prepare, and we’re still waiting on that order.”

‘SLIPPERY SLOPE’: DON’T EXPLOIT PRIVATE AVIATION FROM PAGE ONE And he warned that private aviation was becoming an increasingly competitive business, with other countries in the Latin American and Caribbean taking note of how The Bahamas and others have benefited from the industry post-COVID to help rebound their economies faster.

“It’s a great story to tell,” said Mr Gardner, a member of The Bahamas Civil Aviation Council as well as a Bahamas Flying Ambassador. “It’s an easy story to tell, and The Bahamas is perfectly positioned.

The market is looking very attractive in terms of the dynamics; the demand for private planes and its growth.

“You put all those things together, and The Bahamas is very well-positioned to benefit. The only thing I see looming on the horizon is this new COVID variant; we’ll have to work our way through that. Other than that, I’d say everything is lining up quite nicely

for The Bahamas and we should focus on ensuring that continues rather than exploiting that something because once we start that we will go down a slippery slope.

“You’ll reap the rewards if you look at it as something to nurture rather than something to exploit.

The message is: ‘Keep doing what you’ve been doing, keep investing in it, it will pay back’.” Mr Gardner reiterated that his “loyalties” remain with The Bahamas even though he has been asked to examine the private aviation potential of other countries.

“The Bahamas has something that is unique that people want to pay for but, like everything else in life, the question is: Where is the bar?,” he added. “I understand that between COVID and everything that has transpired that the Government is looking for money, and they’ve got to do what they’ve got to do.

“And private aviation, if it is within their grasp, will keep coming, and if not

they will look somewhere else. If you raise prices there will be less demand, but the Government has to do what is necessary to raise funds.”

Mr Gardner said the private aviation market has “grown tremendously” since the COVID pandemic really took hold in the western hemisphere in March 2020, driven by high net worth individuals who are increasingly turning to charter flights because of perceived health safety as well as purchasing their own planes.

“I can also say there’s been an increase in interest by many countries in private aviation, as they see that as an attractive market compared to mass tourism,” he added. “It’s not gone unnoticed that The Bahamas has found success as a destination because of

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its proximity, it’s history, it’s people and because the Government has made it very simple and economic for people to travel there.

“The Government has done a lot of great things;

not just good things, but great things, over the years and set The Bahamas apart as a very desirable, attractive destination....

It’s unfortunate if the Government has to raise fees,

but it has to do what it has to do, and we’ll do our best to communicate that, understand it and hopefully people will continue to travel.”

PAGE 4, Friday, December 17, 2021

ZNS ANCHOR STRIPPED OF $27,500 SCOTIA AWARD FROM PAGE ONE Services and cardholders’ agreements with her, Sir Michael determined that she had failed to provide any details explaining how either was violated by the Canadian-owned bank. It was “surprising”, he said, that Scotiabank itself did not demand further specifics on her claim.

And the Court of Appeal also blasted now-retired Supreme Court justice, Keith Thompson, who originally heard the dispute for the “inexcusable” near twoyear delay between the trial and providing his written judgment.

Describing the delay as “simply unacceptable”, Sir Michael said judges simply cannot afford to risk breaching a party’s “right to a fair

hearing” by taking so long to deliver judgments critical to upholding freedoms and rights guaranteed by the Bahamian constitution.

“The evidence was taken over two days in July 2019.

The judge reserved his decision. Almost two years later, in April 2021, the judge delivered his judgment. In his judgment he does not apologise for the delay nor does he proffer any

Shell Western Supply and Trading Limited

Regional Team Leader – LATAM (Latin America) The RTL LATAM (Latin America) Crude Trading and Supply in SWEST (Shell Western Supply and Trading) offers a unique opportunity to apply in parallel the strong commercial and trading skills set developed during the incumbent previous trader’s experience whilst developing strong leadership attribute.

As a leader the RTL will be managing a diverse and highly competent staff in Front Line Trading (Traders and analysts) . The incumbent will have an active role in the SWEST LT (Shell Western Supply and Trading) and therefore will have to manage his/her time effectively to be able to handle the new level of responsibility and exposure inherent to the role. The successful candidate will sit on the Board of Directors of SWEST (Shell Western Trading and Supply).

This position will be responsible for leading a trading to deliver on of the highest NIBIATs for T&S Crude Trading, stemming from some of the most complex (high risk region), multi-stakeholder (internal and external), and resource intense (structured trade finance) deals in the Trading & Supply network.

Additionally, the incumbent will have to demonstrate his/her ability to work collaboratively an act as a role model with all support functions within Trading and Supply.

The job will require significant travel especially to some of the high-risk countries due to overarching geographical remit.

RESPONSIBILITIES  • Delivery of value through trading strategies (on Business Development, front line trading and analytical capacity) in excess of USD 500m NIBIAT per year.

• Lead a team of traders and analysts.

• Provide support and coaching whilst leading by example. Engage profoundly in the development of trading talents for the future generation for Trading & Supply Crude through the sponsorship of the Trader Development Program (TDP) process but also by being on the look-out for new talents internally as well as externally.

• Lead, develop, enhance, and maintain outstanding internal and external relationships at business levels. In developing such relationships fulfil the most trusted partner ambition. Developing and managing third party relationships effectively in a highly fragmented, competitive and diverse region will be of paramount importance to sustain and grow the business.

• Be a role model within T&S for Compliance and Safety, particularly considering the complexities and sensitivity due to known high risks of the region. • Instill a very strong culture of controls (no late deal entry, deal rationale, 100% compliance training, CLEs, etc) both in front line trading as well as in Business Development (global funnel, communication between teams, etc).

• Work in close collaboration with the Business Development teams to deliver the deals of tomorrow. Always entice the team of trader to openly engage with their peers in that team.

• Identify, promote, create and instill a culture of profound creativity aiming at continuously reinventing the crude trading business whilst finding profitable solutions to meet customer’s needs.

• In a professional and respectful manner, aim at elimination any inefficiencies which get in the way of achieving the best outcome for RDS. Seek and ask the relevant support in doing so • Understand and manage professionally and soundly all risks associated with the LATAM Crude book (credit, compliance, HSSE, price, pricing…).

• Provide pro-active input and take ownership of all the NBPs/GIPs which relate to the LATAM crude business.

EXPERIENCE AND QUALIFICATIONS: • Minimum requirement of a bachelor’s degree in a related field such as Finance, Economics or Engineering.

• At least three years of frontline trading or chartering experience required for this role.

• Previous experience in a trading or supply organization is required for this role • The candidate should ideally be fluent in Spanish.

• A profound understanding of Crude Trading and Supply business is critical for success.

• Actual experience in LATAM Trading is a must due to the complexity of the crude book and the many exposure it does generate.

• Sign of strong leadership potential is important as this position will lead a team of 6 experienced, highly skilled and divers in profile traders.

• Very strong interpersonal skills. Ability and experience in liaising with a variety of stakeholders both internally and externally is crucial.

Well established external relationships will be necessary to sustain and further grow the business.

• Some countries within the LATAM jurisdiction are deemed to be of very high risk from a compliance and HSSE perspective. It is therefore very desirable to have had proven experience, and extreme diligence, in managing business in the region. Apart from commercial expertise, understanding of governance and legal framework knowledge, and cultural awareness of the region is important to be able to steer growth strategy and at the same time mitigate risks.

• Responsible directly for a bottom line of NIBIAT USD 500m+ per year for Crude Trading and Supply as well as co-managing (together with Finance) the existing debt (structure financing deals) To submit application for this role please send a CV to the following email: HR-Advice-Bahamas@shell.com on or before Thursday 23, December 2021.

explanation for the delay.

This is inexcusable,” the Court of Appeal president found.

Referring to both the constitution and prior court rulings, which all uphold the right “to a fair hearing within a reasonable time”, Sir Michael continued: “Judges cannot continue to ignore these admonitions as to what constitutes a reasonable time for the delivery of judgments.

“Judges are the guardians of the fundamental rights and freedoms guaranteed by the constitution.

Judges cannot by inordinate and inexcusable delays in delivering their judgments themselves breach a litigant’s right to a fair hearing within a reasonable time.

“Whilst we appreciate the heavy workload that judges carry, it is imperative that they manage their workload in a manner that does not cause these inordinate delays. Two years to deliver judgment after a two-day trial is simply unacceptable.”

Sir Michael’s verdict echoes a ruling he have last month in an employment dispute involving Freeport-based manufacturer, Polymers International, where he lambasted another Supreme Court judge - this time Petra Hanna-Adderley - for taking almost five years to deliver a judgment. He said that “borders on judicial misconduct”.

With Supreme Court justices who fail to deliver timely judgments clearly in his crosshairs, Sir Michael returned to the dispute between the ZNS anchor and Scotiabank (Bahamas) over “unauthorised transactions” involving her bank account which she sought to blame on the latter.

Mrs Pinder, who opened her Scotiabank account in 2009, was at the same time provided with an ATM (Automatic Teller Machine) card enabling her to conduct cash withdrawals and other transactions such as monitoring her account.

She was the only person who knew the card’s Personal Identification Number (PIN), and was also issued a pass book for updating the account.

However, Mrs Pinder alleged she was first alerted to problems with her account when she visited Scotiabank’s Palmdale branch in February 2016 to report the ATM card lost.

The balance was “lower than I expected it to be” and, after requesting a

statement for 2015, identified 18 debits - worth a collective $17,500 - that she claimed never to have made.

On two days, the ZNS anchor alleged, two debits of $1,000 each occurred even though the maximum daily withdrawal limit was capped at $1,000. The statement showed a net credit of $14,850, and net debit of $91,979, had been made to Mrs Pinder’s bank account without any explanation as to what they were for.

“I was perplexed by the 2015 statement given the fact that I never used an ATM machine to withdraw monies off of the account,” she alleged. She also claimed that several Christmas 2015 withdrawals occurred when she was with her family on holiday in New York, and had the card in her possession.

Many of the ‘suspect’ withdrawals were made at the Rubis service station on Wulff Road, but Mrs Pinder said she was unable to identify the persons responsible despite being shown their photographs by Scotiabank’s investigator, Edward Smith.

Denying that she had given her ATM card to anyone else to use, or disclosed its PIN number, the ZNS anchor alleged that the unauthorised transactions on her account continued even after the original was destroyed and replaced.

After calling for a police investigation, she met with assistant superintendent Barrett who said “there is a possibility that my card had been skimmed; that a group of men had recently been taken into custody for a similar crime and that hopefully one of the suspects would be responsible for my matter”.

That was the last Mrs Pinder heard from the police, and she initiated legal action against Scotiabank (Bahamas) after it refused to reimburse her for the $27,500 lost. She claimed its systems failed to detect that “an unauthorised ATM card” was being used to access her account and exceed the daily withdrawal limit, while the bank also did not carry out a proper investigation.

Scotiabank (Bahamas), though, argued that Mrs Pinder’s “loss, costs and expense were caused or contributed to by her own negligence”.

It alleged she had failed to properly monitor her bank account’s activity; safeguard her ATM

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card; and notify itself and the police of the problems in a timely manner.

Sir Michael, in overturning Justice Thompson’s ruling, agreed with Scotiabank (Bahamas) that Mrs Pinder had failed to provide sufficient proof to back up her allegations. “The only evidence in support of that claim was the evidence of the respondent that she did not use her card and that she never used her card to withdraw monies from an ATM machine,” he ruled.

“She said that she never gave her card to anyone nor did she give her PIN number to anyone. However, the evidence also is that she had lost or misplaced her card for periods of time. The evidence is also consistent with the fact that someone else may have used her card and pin number to withdraw monies.”

Sir Michael also found there was “no evidence” that Mrs Pinder’s card had been skimmed, which is a technique used by criminals where they run a bank card through a device that captures all the information contained on its magnetic strip. They are then able to “clone” the card, and start using it to withdraw funds from the victim’s account.

The Court of Appeal president described this as speculation on the ZNS anchor’s part, and added that the Christmas 2015 withdrawals were consistent with use of the ATM card on the days she left for - and arrived from - New York.

Agreeing that Mrs Pinder did not alert Scotiabank “that any withdrawals were improperly made until well after” they occurred, Sir Michael also dismissed her argument blaming this on the bank ceasing to update her pass book from 2016.

He added that she had the ability, and obligation, to perform checks via ATM machines, but did not do so.

“In the absence of any evidence that there was skimming or another card being issued by the bank, there is in my judgment simply no basis in law in holding the bank liable for the loss,” Sir Michael concluded.

“In her agreement with the bank, the respondent accepted a responsibility to regularly monitor her account and to immediately report any improper transaction on her account.

She had the ability to do so but did not do so. It was that failure which caused the loss. There was simply no evidential basis for the judge to find liability on the part of the bank on the respondent’s pleaded case.”

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Friday, December 17, 2021, PAGE 5

COURT BACKS REGULATOR’S FBI ‘BAIT’ BROKER WIND-UP FROM PAGE ONE

However, Christina Rolle, the Securities Commission’s executive director, told Tribune Business that there still remains work for EY accountants, Igal Wizman and Eleanor Fisher, to perform. Besides safeguarding any remaining assets, they will also have to assess whether Mintbroker accurately and fairly returned client assets it was holding in escrow to their owners.

“The judge ruled in our favour over the winding-up petition,” Ms Rolle confirmed. “She ruled that Swiss America Securities (Mintbroker) is to be wound-up and EY appointed as official liquidators.”

Asked whether this was too late, given that Mr Gentile voluntarily surrendered Mintbroker’s licence and exited The Bahamas as far back as December 2019, she replied: “That will be for the official liquidators to determine.

“Obviously they will have to look at whatever assets are remaining in the company, and to really look at whether the transfers made out to the clients were thorough and proportionate. It will be for the official liquidators to determine.”

Mr Gentile previously bought time to voluntarily wind-up Mintbroker International by filing a Judicial Review challenge to the Securities Commission’s enforcement actions on September 23, 2019, which resulted in Supreme Court justice, Ruth Bowe-Darville, “vacating” all the regulator’s orders and directives.

That move “fully disabled the Commission from further investigation into” Mintbroker’s activities, Ms Rolle admitted.

The attorney representing Mintbroker and Mr Gentile in that Judicial Review challenge was now-prime minister Philip Davis QC. And Philip McKenzie and Glenda Roker, both of Davis & Company, represented them in the winding-up petition hearing.

Justice Stewart’s judgment recalled how the Securities Commission previously fined Mintbroker $120,000 as a result of regulatory breaches discovered from various examinations over the period 2016-2018, having increased scrutiny after becoming aware that Mr Gentile and his firm were being investigated by both the US Justice Department and the Securities & Exchange Commission (SEC).

“In 2019, the Commission conducted an investigation and discovered that Mr Gentile had incorporated unregulated entities bearing the names Swiss America Custody Ltd and Mintbroker International Ltd in various jurisdictions in including Canada and the

United Kingdom,” Justice Stewart recorded.

“They were used to accept the company’s client funds instead of being remitted to an account in the company’s name which would be subject to the supervision of the Commission. The funds were transferred to the company’s operational account at Deltec Bank & Trust and resulted in the lack of segregation of clients’ funds contrary to statute.”

Ms Rolle and the Securities Commission feared this “comingling of funds” would mix client assets and those owned by Mintbroker itself, and which it used to fund its operations. Justice Stewart added: “The transfers also raised the concern as to whether the company was conducting fraudulent activities.”

Further concerns were raised during a September 12, 2019, meeting between the Securities Commission and Mr Gentile. The regulator said it was “informed of even more irregularities”, including that Mintbroker was in a “short” position relative to its clients who did not own the securities they believed they had purchased. Other issues were also raised.

“The company’s operational structure meant that not actual trading was done in the market based on client orders,” Justice Stewart said of the Securities Commission’s concerns.

“The company did not own shares in its inventory even though they [clients] were of the belief it did, which was unacceptable to the Commission and contrary to industry practice.

“Efforts were then made to halt the company’s operations and to prevent exposure to clients due to the company’s improper trading practices.” The Securities Commission, on September 18, 2019, ordered Mintbroker to suspend its operations for five days so it could investigate further without disrupting its operations.

James Gomez, then of the Baker, Tilly Gomez accounting firm, was appointed to audit the financial transactions conducted by Mr Gentile’s firm and Securities Commission staff entered the company’s premises on September 19, 20 and 23, 2019.

However, its enforcement efforts were halted

by Mr Gentile’s Judicial Review application and subsequent obtaining of a temporary injunction. Prior to its overturning, Mintbroker wrote to the Securities Commission on December 3, 2019, informing it that would voluntarily wind-up its Bahamas operations and return all client assets to their owners.

Such a move required the regulator’s approval, and Mr Gentile and Mintbroker failed to comply with the terms and conditions it set out. As a result, the Securities Commission on February 4, 2020, warned it would suspend the registration for the broker/ dealer, which was based in Bay Street’s Elizabeth on Bay plaza, and seek a courtsupervised liquidation.

“Ms Rolle averred that it was paramount that the Commission protect the welfare of investors and/

or clients as well as maintain the integrity of The Bahamas’ securities and investments market,” Justice Stewart noted.

“As a result, it sought the requested orders in order to prevent any further or potential harm to the company’s clients. She added that it was in the public interest for a courtsupervised winding-up to be ordered.”

Mr Gentile countered by saying the uncertainty caused by the five-day suspension, as well as Mintbroker’s Judicial Review challenge, meant it was impossible to continue operations. Its clearing house, Interactive Brokers, terminated their relationship with 30 days’ notice and finding a replacement proved fruitless.

Voicing surprise that the Securities Commission had never voiced objection to Mintbroker’s business model during its seven previous years in operation, Mr Gentile said it “liquidated all of its client accounts and client relationships” while informing the Bahamian regulator of its actions.

“The company had no ability to operate and its customers obviously wanted their money back so they could not wait for the Commission,” Justice Stewart said of Mr Gentile’s position. “The company felt pressured by the Commission’s request for it to surrender its licence.”

EY were appointed as joint provisional liquidators on March 17, 2020, but Ms Rolle alleged that Mr Gentile’s actions “were at best unhelpful and, at worst,

calculated to obfuscate and stymie” the accounting firm’s work.

Taking all these into consideration, Justice Stewart said the Securities Commission had been correct to seek the Supreme Court’s help to “nip in the bud” Mintbroker’s breaches of Bahamian law. “The statutory provisions are not whimsical or arbitrary. They are there for a reason,” she found. “The purpose for the requirements is clear to protect investors and the reputation of the industry.”

The failure to obtain the Securities Commission’s approval for the voluntary winding-up, and non-cooperation with EY when it was provisional liquidator, were also cited by Justice Stewart as justifying the compulsory liquidation.

Mr Gentile enjoyed a somewhat colourful stay in the Bahamas, with Tribune Business reporting in 2016 how he and his broker/ dealer, based in the Elizabeth on Bay Plaza on Bay Street, were allegedly used

as “bait” by the Federal Bureau of Investigations (FBI) to help snare numerous international securities fraudsters.

Mr Gentile claimed that he and his Bahamian businesses were “forced” to play key roles in undercover ‘sting’ operations targeting criminals earning millions of dollars from market manipulation scams.

Their participation even extended to the ‘bugging’, both by video and sound, of Swiss-America’s Bahamian head office in a successful bid to gain evidence against a Canadian fraudster who subsequently pleaded guilty to the charges against him.

He also attracted international media coverage after his Russian-born, model girlfriend, Kristina Kuchma, 24, in a fit of rage drove his Mercedes S400 hybrid into the pool at his Ocean Club home after he ended their 18-month relationship by text and allegedly reneged on a promise to provide $50,000 for one of her business ventures.

LEGAL NOTICE

NOTICE GLOBAL ASSET DEVELOPMENT LTD. In Voluntary Liquidation Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, GLOBAL ASSET DEVELOPMENT LTD. is in dissolution as of December 13, 2021. International Liquidator Services Limited situated at 3rd Floor Withfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

LI Q U I DATO R ______________________

LEGAL NOTICE

NOTICE JEDO Advisory Ltd. In Voluntary Liquidation Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, JEDO Advisory Ltd. is in dissolution as of December 13.2021 Lighthouse Corporate Services Ltd., office situated at Old Fort, Building 2, Suite A, Lyford Cay, Nassau, Bahamas is the Liquidator.

LI Q U I DATO R ______________________

PAGE 6, Friday, December 17, 2021

THE TRIBUNE

INSURERS ‘TRYING TO HOLD LINE’ ON RATE INCREASES FROM PAGE ONE

hard market,” he told this newspaper of ongoing negotiations with reinsurers over 2022 treaties. “We’ve seen a number of reinsurance companies withdraw from providing catastrophe insurance, not just because of what’s happening in this region with Dorian in 2019, and Harvey, Irma and Maria in 2017-2018, which were ground-breaking storms, but we’ve seen the US coast get hit quite a few times by storms.”

Pointing to this year’s flooding disasters in Belgium and Germany, Mr Ingraham added: “There’s a number of reinsurers where Boards have said: ‘We’d like you to reduce your exposure to this type

of business’. When you get that pull back, you have supply and demand issues, where those supplying can demand a bit more for it.

It’s something we grapple with as an industry.”

While the magnitude of any impact to Bahamian premiums from rising reinsurance rates has yet to be determined, he said of the latter: “I certainly don’t expect any decrease. We’re still in the middle of negotiations, but it would not surprise me to see upward pressure on rates.

“I’m sure my colleagues are doing the same thing, pushing back and saying we’ve had a rate increase since Hurricane Dorian and hoping we can pacify reinsurers with some of that.

But it’s very much a seller’s

market, and we have to negotiate based on relationships built up over the last 20 years to come through for us.

“That’s not to say we won’t get an increase, but it might help to temper the magnitude. We won’t know the outcome until all is said and done, and all of the treaties are signed and sealed. It’s still a bit early; in the next week or two we may know a bit more, but it would not surprise me if reinsurance rates trend up a bit from where they are at the moment.”

Mr Ingraham said any reinsurance cost increase “usually means” a rise in Bahamian property and casualty premiums, as local underwriters with their relatively thin capital bases

usually have no choice but to pass at least a portion of this on to their customers.

“It is very much out of the control of local insurance companies,” he reiterated.

“We’re negotiating with reinsurers now, and it’s very much up to them what rates we end up with. We can negotiate as much as we can, but it’s pretty much out of our control.

“When you look at the amount of reinsurance each company purchases, we rely heavily on our reinsurance partners and that gives them significant control over what happens with industry’s position with clients. We cannot go without it. It’s impossible to do business without it.

“If you do business in this area, and have $2.5bn

in sums insured on your books and have $50m in net capital, you can see the potential problem here. A loss affecting 10 percent of your business can potentially impact you beyond your equity capacity.”

Anton Saunders, RoyalStar Assurance’s managing director, told Tribune Business that reinsurance negotiations were “progressing a little slower than in prior years” due to a combination of COVID19 and the US market only starting its own discussions now. Insurers there typically go out ahead of Latin America and Caribbean, but both areas are now talking to reinsurers at the same time.

“Let’s put it this way,” he said. “We have always

INNOVATION CENTRE WILL BENEFIT 1,500 STUDENTS FROM PAGE ONE project, said: “The Bahamas has experienced two major external shocks over the last 12 [sic; 28] months, Hurricane Dorian in 2019 and the COVID-19 pandemic.

This, and an insufficient innovative capability among Bahamian firms and its high unemployment rate presents, a particularly difficult environment for entrepreneurs and job seekers.

“The main reasons for this are a lack of digital talent, scientific and technological knowledge/research, and access to programmes for training and limited connections between the entrepreneurial ecosystems. This project will aim

to solve this problem by fostering entrepreneurship through the creation of a Centre of Entrepreneurship and Innovation (The Centre) at UoB’s North campus.

“This Centre aims to apply disruptive technologies and incubate entrepreneurs in the digital technology space. The Centre will mainly focus on developing digital knowledge through training, boot camps and certificate programmes to provide the technological skills needed to increase innovation and competitiveness among small and medium-sized enterprises in The Bahamas,” it added.

“Furthermore, the project will provide strategic programming and advisory services for the implementation of an oncampus business incubator in partnership with the Small Business Development Centre, the local (Grand Bahama) Chamber of Commerce, and the Ministry of Grand Bahama.”

With UoB identified as the executing agency, the IDB paper said: “As the project evolves it will seek to address the needs not only of Grand Bahama but the entire archipelago, as it will be the only Centre of Entrepreneurship and Innovation in the country.

“Linkages will be pursued with other regional incubators and innovation centres as well with the network of higher education entrepreneurship centres throughout the Caribbean and the Americas. The aim is for the Centre to provide a model for similar centres in other parts of the country and region.

“The main beneficiaries of the project are 500 students and graduates of the entrepreneurship boot camp programme, of which at least 50 percent are women,” the document added.

“In addition, 1,000 enrolled students and graduates of newly-created

certification programmes will benefit and at least five partnerships will be created for local or international firms and high growth startups to host internships in specific applied R&D,

said that, for The Bahamas market, the rates are technically where they are supposed to be and hopefully we will not have increased rates in The Bahamas next year. That is all subject to final negotiations with our reinsurance partners.

“We are trying to hold the line on rates in The Bahamas because we think the rates are very stable, and I think reinsurers appreciate that for The Bahamas they are technically where they should be. We hope and pray there is no increase in rates, certainly that which we have to pass on. If it’s a small increase in reinsurance costs we’ll absorb it as best we can.” technology and innovation fields for a minimum of 100 students (at least 50 percent will be women).

“Additionally, the project will aim for at least 15 new start-ups to be launched by university students or graduates over the three-year duration of the project.”

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NOTICE

Chester Blue Limited (In Voluntary Liquidation)

Notice is hereby given that the above-named Company is in dissolution, commencing on the 15th day of December 2021. Articles of Dissolution have been duly registered by the Registrar. The liquidator is (Amicorp Bahamas Management Limited, whose address is Bahamas Financial Centre, 3rd Floor, Shirley & Charlotte Street, P.O. Box N-4865, Nassau, Bahamas).

Dated this 15th day of December 2021 (AMICORP BAHAMAS MANAGEMENT LIMITED) LIQUIDATOR

THE TRIBUNE

Friday, December 17, 2021, PAGE 7

BIDEN ACKNOWLEDGES $2T BILL STALLED, BUT VOWS IT MUST PASS

By ALAN FRAM AND LISA MASCARO Associated Press WASHINGTON (AP) — President Joe Biden on Thursday all but acknowledged negotiations over his sweeping domestic policy package will likely push into the new year, as he does not yet have the votes in the Senate to push the roughly $2 trillion bill to passage.

Biden issued a statement as it became increasingly apparently the Democratic senators would not meet their Christmas deadline, in large part because of unyielding opposition from one holdout: Sen. Joe Manchin of West Virginia.

The president said that in their recent discussions West Virginia senator reiterated his support for the framework he and the president had agreed to on the flagship bill. Biden said he also briefed House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer about the most recent round of talks with Manchin.

“I believe that we will bridge our differences and advance the Build Back Better plan, even in the face of fierce Republican opposition,” Biden said in the statement.

Biden said Schumer was prepared to push it to the Senate floor for votes as soon as possible.

“We will — we must — get Build Back Better passed,” Biden said.

Biden’s statement was a much-needed intervention, allowing Senate Democrats an off-ramp to what has been months of tangled negotiations that appear nowhere near resolved as time runs out ahead of the Christmas holiday.

At the same time, Democrats were rushing to show progress on another

tangled priority: voting rights legislation that, Biden acknowledged, also faces hurdles. “We must also press forward on voting rights legislation, and make progress on this as quickly as possible,” Biden said.

Schumer, D-N.Y., had set Senate passage before Christmas as his goal, but disputes with Manchin and other Democrats remain. It had become clear that the party was seeking explicit intervention from Biden in hopes he would cut a deal with Manchin, or urge lawmakers to delay action until January.

Biden “wants to get this done as soon as possible,” White House spokesperson Karine Jean-Pierre told reporters, She added, “But we understand it’s going to take time and we’re going to continue to do the work.”

Schumer barely mentioned the legislation as the day’s business began.

Instead, he described Democrats’ efforts to break a logjam on voting rights legislation and a pile of nominations the Senate will consider “as we continue working to bring the Senate to a position where we can move forward” on the social and environment bill.

Using his sway in a 50-50 Senate where Democrats need unanimity to prevail, Manchin has continued his drive to force his party to cut the bill’s cost and eliminate programs he opposes. All Republicans oppose the package, arguing the measure carrying many of Biden’s paramount domestic priorities is too expensive and would worsen inflation.

“The best Christmas gift Washington could give working families would be putting this bad bill on ice,” said Senate Minority Leader Mitch McConnell, R-Ky.

NOTICE NOTICE is hereby given that DAPHNE JULES of Key West Street, Wulff Road, 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 17th day of December, 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE Ivory Bright Investment Limited NOTICE IS HEREBY GIVEN in accordance with Section 138(4) of the International Business Companies Act, (no. 45 of 2000) as follows: (a) Ivory Bright Investment Limited (the “Company”) is in dissolution under the provisions of the International Business Companies Act, 2000. (b) The dissolution of the said Company commenced on the 15th day of December, 2021 when its Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said Company is Ms. Jonell Rolle.

Dated the 16th day of December, 2021.

H&J CORPORATE SERVICES LTD. Registered Agent for the above-named Company

NOTICE Crystal Heights Ltd.

NOTICE IS HEREBY GIVEN in accordance with Section 138(4) of the International Business Companies Act, (no. 45 of 2000) as follows: (a) Crystal Heights Ltd. (the “Company”) is in dissolution under the provisions of the International Business Companies Act, 2000. (b) The dissolution of the said Company commenced on the 15th day of December, 2021 when its Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said Company is Ms. Jonell Rolle.

Dated the 16th day of December, 2021.

H&J CORPORATE SERVICES LTD. Registered Agent for the above-named Company

SEN. JOE MANCHIN, D-W.Va., leaves a lengthy Democratic Caucus meeting as the Senate continues to grapple with end-of-year tasks at the Capitol in Washington, Thursday, Dec. 16, 2021. President Joe Biden’s vast social and environment package is in limbo and party leaders’ hopes of resolving holdout Sen. Joe Manchin’s demands and considering the bill in this year’s waning days seem all but dead.

Photo:J. Scott Applewhite/AP A person who was unauthorized to discuss the rocky status of the BidenManchin talks and spoke only on condition of anonymity said Wednesday that Manchin was pushing to eliminate the bill’s renewal of expanded benefits under the child tax credit, a keystone of Democratic efforts to reduce child poverty.

Manchin told reporters Wednesday that assertions he wants to strip the child tax credit improvements were “a lot of bad rumors.”

Asked if he backed eliminating one of the bill’s child tax credit improvements — monthly checks sent to millions of families — he said, “I’m not negotiating with any of you.”

Adding further doubt about quick Senate action this year, Biden suggested Democrats should instead prioritize voting rights legislation, a primary party goal that Republicans have long stymied. Democrats face an uphill fight on the voting measure, but focusing on it would let them wage a battle that energizes

the party’s voters while lawmakers work behind the scenes on the social and environment bill.

Asked whether Congress should quickly consider the voting legislation and delay the $2 trillion bill to next year, Biden told reporters, “If we can get the congressional voting rights done, we should do it.” He added, “There’s nothing domestically more important than voting rights.” Biden spoke Wednesday as he toured tornado damage in Dawson Springs, Kentucky.

Letting the social and environment legislation slip into next year, when congressional elections will be held, would be ominous for the bill’s ultimate prospects.

With Democrats having blown past previous selfimposed deadlines on the push, another delay would fuel Republican accusations that they are incompetently running a government they control. Democrats are bracing for November elections when the GOP has a real chance of winning

control of the House and Senate.

Word of Manchin’s stance prompted a backlash from colleagues, whom he’s frustrated for months with constant demands to cut the bill’s size and scope. The measure also has money for health care, universal prekindergarten and climate change programs, largely paid for with tax boosts on big corporations and the rich.

The second-ranking Democrat, Sen. Dick Durbin of Illinois, said “the level of emotion” among Democrats over the child tax credit “is very high,” and said he was “stunned” when he heard about Manchin’s demands.

Manchin has wanted the overall bill’s 10-year price tag to fall below $2 trillion. He also wants all its programs to last the full decade.

The current bill would extend the enhanced child tax credit for just one year, a device to contain the bill’s cost. Renewing the improved benefits for

10 years would increase its current one-year cost of around $100 billion to over $1 trillion, and doing that while cutting the overall bill’s size would wreak havoc on Democrats’ other priorities in the bill.

The Treasury Department says the expanded tax credit has helped the families of 61 million children.

Manchin’s other demands have included removing a new requirement for paid family leave. Disputes among other lawmakers include how to increase federal tax deductions for state and local taxes.

Another impediment to Democrats is a timeconsuming review by the Senate parliamentarian, Elizabeth MacDonough, about whether many of the bill’s provisions violate the chamber’s rules and should be dropped. MacDonough said Thursday that a provision letting many migrants remain temporarily in the U.S. should be removed.

The House approved its version of the legislation in November.

THE TRIBUNE

Friday, December 17, 2021, PAGE 9

BIG TECH COMPANIES SINK, PUSHING NASDAQ COMPOSITE DOWN 2.5%

By DAMIAN J. TROISE AND ALEX VEIGA AP Business Writers TECHNOLOGY companies led stocks lower on Wall Street Thursday as investors weighed the implications of higher interest rates on the market. The declines came a day after the Federal Reserve said it’s preparing to begin raising rates next year to fight inflation.

The S&P 500 fell 0.9%, erasing about half of its gains from the day before.

The Nasdaq slid 2.5%, its biggest drop since September, as Big Tech

heavyweights like Apple and Microsoft fell. The Dow Jones Industrial Average slipped 0.1% The sell-off, which gained momentum as the day went on, was a reversal from a day before, when technology sector stocks led a market rally following the Fed’s latest interest rate and economic policy update.

The central bank signaled plans to speed up its reduction in monthly bond purchases that have helped maintain interest rates low.

The shift in policy sets the stage for the Fed to begin raising rates sometime next year.

Large technology companies often have lofty valuations based on assumptions about their profitability going far into the future. Investors tend to accept those higher valuations more easily when interest rates are extremely low, giving them fewer alternatives for returns.

With interest rates poised to rise, investors are rethinking the high valuations they put on tech giants.

“Today it’s almost like you’re getting the reaction that everyone was expecting a day earlier,” said Ross Mayfield, investment strategist at Baird. The S&P 500

fell 41.18 points to 4,668.67.

The benchmark index is within 1% of the all-time high it set last Friday, The Dow slipped 29.79 points to 35,897.64. The Nasdaq’s losses wiped out its gains from a day before.

It ended down 385.15 points to 15,180.43.

Small company stocks also took heavy losses. The Russell 2000 index gave up 42.75 points, or 2%, to 2,152.46. All the major indexes are on pace for a weekly loss.

Bond yields fell. The yield on the 10-year Treasury fell to 1.43% from 1.46% late Wednesday.

Stocks have been choppy in recent weeks as investors waited for more guidance from the Federal Reserve amid signs of growing inflation in the economy and worries over the rise of the omicron variant of COVID0-19.

Inflation has been a growing concern throughout 2021. Higher raw materials costs and supply chain problems have been raising overall costs for businesses, which have raised prices on goods to offset the impact. Consumers have so far absorbed those price increases, but they are facing persistent pressure

from rising prices and that could eventually prompt a pullback in spending.

Any pullback in spending could then crimp economic growth.

On Wednesday, the Federal Reserve announced an acceleration of its pullback of economic stimulus as it pivots to fighting inflation.

The central bank plans to shrink its monthly bond purchases at twice the pace it previously announced as unemployment falls and inflation nears a 40-year high. The accelerated timetable puts the Fed on a path to start raising rates as early as the first half of next year.

PAGE 10, Friday, December 17, 2021

CONGRESS APPROVES IMPORT BAN TARGETING FORCED LABOR IN CHINA

By ELLEN KNICKMEYER AND AAMER MADHANI Associated Press WASHINGTON (AP) — Senators gave final congressional approval Thursday to a bill barring imports from China’s Xinjiang region unless businesses can prove they were produced without forced labor, overcoming initial hesitation from the White House and what supporters said was opposition from corporations.

The measure is the latest in a series intensifying U.S. penalties over China’s alleged systemic and widespread abuse of ethnic and religious minorities in the western region, especially Xinjiang’s predominantly Muslim Uyghurs.

The Biden administration also announced new sanctions Thursday targeting several Chinese biotech and surveillance companies, a leading drone manufacturer and government entities for their actions in Xinjiang.

The Senate vote sends the bill to President Joe Biden.

Press secretary Jen Psaki said this week that Biden supported the measure, after months of the White House declining to take a public stand on an earlier version of the legislation.

The United States says China is committing genocide in its treatment of the Uyghurs. That includes widespread reports by rights groups and journalists of forced sterilization and large detention camps where many Uyghurs allegedly are compelled to work in factories.

China denies any abuses.

It says the steps it has taken are necessary to combat terrorism and a separatist movement.

The U.S. cites raw cotton, gloves, tomato products, silicon and viscose, fishing gear and a range of components in solar energy as among goods alleged to have been produced with the help of the forced labor.

Xinjiang is a resourcerich mining region, important for agricultural production, and home to a booming industrial sector.

Detainees also are moved outside Xinjiang and put to work in factories, including those in the apparel and textiles, electronics, solar energy and automotive sectors, the U.S. says.

“Many companies have already taken steps to clean up their supply chains. And, frankly, they should have no concerns about this law,” Sen. Marco Rubio, the Florida Republican who introduced the earlier version of the legislation with Oregon Democratic Sen. Jeff Merkley, said in a statement.

“For those who have not done that, they’ll no longer be able to continue to make Americans — every one of us, frankly — unwitting accomplices in the atrocities, in the genocide,” Rubio said.

As in the House earlier this week, the compromise version passed the Senate with overwhelming approval from Democrats and Republicans. The swift passage came after what supporters said was offstage opposition from corporations with manufacturing links to China, although there was little to no overt opposition.

Apple’s lobbying firm lobbied on Apple’s behalf, a federal disclosure form shows. Apple, like Nike and other corporations with work done in China, says it has found no sign of forced

PRESIDENT Joe Biden listens as he meets virtually with Chinese President Xi Jinping from the Roosevelt Room of the White House in Washington,Nov. 15, 2021. The Biden administration announced on Thursday that it is levying new sanctions against several Chinese biotech and surveillance companies operating out of Xinjiang province, casting another shot at Beijing over human rights abuses against Uyghurs in western China.

Photo:Susan Walsh/AP labor from Xinjiang in its manufacturing or supply chain.

Some Uyghur rights advocates and others said they had also feared private opposition from within the Biden administration as it sought cooperation from the Chinese on climate change and other issues.

Psaki, in her statement Tuesday night, noted export controls and import restrictions, sanctions, diplomatic initiatives and other measures the Biden administration had already taken targeting forced labor from Xinjiang.

The Senate also approved Biden’s nominee for ambassador to China, veteran diplomat Nicholas Burns, on a 75-18 vote Thursday.

Advocates credited unrelenting support from

rights groups and lawmakers, including statements from House Speaker Nancy Pelosi, with helping the bill prevail.

With the legislation, sanctions and months of other new measures, “the United States is way ahead” of the international community on confronting China on abuses of Uyghurs, said Nury Turkel, a senior fellow at the Hudson Institute and vice chair of the U.S. Commission on International Religious Freedom.

How can anyone get China to change “without going after the most important thing to the Chinese government, which is their economic interest?” asked Turkel, who praised Congress — but not the administration — for what

he called coherent messaging on the matter.

The legislation requires government agencies to expand their monitoring of the use of forced labor

by China’s ethnic minorities. Crucially, it creates a presumption that goods coming from Xinjiang are made with forced labor.

Businesses will have to prove that forced labor, including by workers transferred from Xinjiang, played no part in a product to bring it into the United States.

Meanwhile, the Commerce Department announced new penalties targeting China’s Academy of Military Medical Sciences and its 11 research institutes that focus on using biotechnology to support the Chinese military.

THE TRIBUNE

The move bars American companies from selling goods and technologies to the entities without a license.

China “is choosing to use these technologies to pursue control over its people and its repression of members of ethnic and religious minority groups,” Commerce Secretary Gina Raimondo said in a statement.

Separately, the Treasury Department announced it was placing DJI, the world’s largest drone manufacturer, and seven other Chinese companies on an investment blacklist over their alleged involvement in biometric surveillance and tracking of Uyghurs.

The measure means individuals in the U.S. will be prohibited from purchasing or selling publicly traded securities connected with the companies.

DJI dominates the global market for the small, lowaltitude drones used by hobbyists, photographers and many businesses and governments.

Other companies added to the Treasury blacklist are image-recognition software firm Megvii, supercomputer manufacturer Dawning Information Industry, facial recognition specialist CloudWalk Technology, cybersecurity group Xiamen Meiya Pico, artificial intelligence company Yitu Technology and cloud computing firms Leon Technology and NetPosa Technologies.

U.S. intelligence has established that Beijing has set up a high-tech surveillance system across Xinjiang that uses biometric facial recognition and has collected DNA samples from all residents, ages 12 to 65, as part of a systematic