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Chinese fraud suit alleges Bahamas bank ‘conflicted’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A Bahamian bank has now become embroiled as a “third-party defendant” in a lawsuit that alleges it may have had a ‘conflict of interest’ in its dealings over a purported Chinese real estate investment fraud. Investment promoter, Benny Ping Wing Leung, and his company, First Toronto Realty, are effectively claiming that EFG Bank & Trust (Bahamas) acted for ‘both sides’ over a collective $3.75 million investment in a 36-storey Chinese office and retail tower, called Project Ningbo. Besides acting as “invest-
EFG named ‘third party defendant’ in $3.75m dispute ‘Advised’ investors, but also ‘placement agent’ Bank slams ‘preposterous’ claim against it ment adviser and negotiator” for other EFG clients who ultimately invested in Project Ningbo, the bank also allegedly served as “placement agent” for
Sir Franklyn ‘shock’ at gas pump rip-off claim By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Sir Franklyn Wilson yesterday said he was “shocked” and “amazed” by assertions from a Government regulator that consumers are being short-changed at 50 per cent of the Bahamas’ gasoline pumps. The FOCOL Holdings chairman said he was unaware of the Bahamas Bureau of Standards and Quality (BBSQ) findings, but emphasised that neither his firm - nor any other oil industry player - would seek to deliberately cheat the Bahamian public. “I’ve never heard that before. I’m shocked,” Sir Franklyn told Tribune Business of findings that were revealed by the Bureau’s director, Dr Renae Ferguson-Bufford, at last week’s Chamber-organised energy conference. “What can I say. I’m amazed,” added the chairman of the Bahamas’ shell distributor. “I’m positive that we have no policy to cheat the public, and I don’t think any other company would have that policy. “I can’t tell you more than that. Whatever it is, there’s no intent. I’m positive that would be the view of anyone in the industry. No one intends to cheat the public.” Sir Franklyn said he was unable to say more, given that he had “no idea what research” the Standards Bureau had conducted, and how it had arrived at its findings and conclusions. “I couldn’t agree more;
FOCOL chair: ‘No intent’ to shortchange public ‘Amazed’ at Standards Bureau’s ‘50% faulty’ finding Fully agrees motorists should ‘get what they pay for’
Sir Franklyn Wilson you should get what you pay for. There’s certainly no intent from us other than for people to get what they paid for,” he told Tribune Business. “No reputable company, as a matter of corporate policy, seeks to rob the public. It’s not they way.” Dr Ferguson-Bufford gave little insight into her findings at last week’s conference other than the headline ‘50 per cent’ figure, and See pg b6
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Cathexis Holding (Cayman), the company that issued the notes to investors. Cathexis and Sirius V Asia Partners, both of which Leung admitted he was “affiliated” with, already enjoyed a “business relationship” with EFG, which held their deposits prior to the 2009-2010 deal over Project Ningbo. “At various times, officers of EFG, who managed EFG’s relationship with Cathexis and Sirius, advised Leung as an officer of Cathexis and Sirius that other, high net worth customers of EFG had an appetite for high yield investment opportunities and invited Leung, Cathexis and Sirius to bring to EFG’s at-
tention such opportunities,” Leung alleged. Such an opportunity emerged via Project Ningbo in June 2009, and Leung further claimed: “EFG proposed to act in dual capacities as the investment advisor and negotiator for its other customers, and as placement agent for Cathexis.” The promoter said he did not know the precise relationship between EFG and the investment entities that are suing him and First Toronto in the southern New York federal courts in a bid to recover their investments. The investors include former EFG Bank & Trust See pg b7
Bran: Baha Mar deal to stay secret if PLP re-elected By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Government’s agreement with the China Export-Import Bank for Baha Mar’s construction completion is likely to remain ‘sealed’ by the Supreme Court if the Christie administration retains power, the DNA’s leader said yesterday. Branville McCartney said that only a change of government would ensure that deal “sees the light of day”, promising that a Democratic National Alliance (DNA) administration would move to have the agreement ‘unsealed’. Warning that the agreement had to be “in the best interests of the Bahamian people”, Mr McCartney blasted that if it were otherwise “dog will eat the Chinese lunch”. Some observers will
Says DNA will ensure deal with bank ‘sees the light’ Warns: ‘Better be in best interests of Bahamians’ likely question Mr McCartney’s prospects for becoming elected to office in the upcoming 2017 general election, but the newly-appointed Opposition leader in the Senate blasted: “The Bahamian people have a right to know what is going on with Baha Mar.” Arguing that the country was unlikely to discover the full details if the Christie administration retained power, Mr McCartney said: “It will see the light of day with a new administration. See pg b6
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Fiscal woe ‘daunting task’ for next Govt By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Democratic National Alliance’s (DNA) leader yesterday warned that the next government faces “a daunting task” to arrest the Bahamas’ fiscal decline, suggesting it start with reforming the Finance Ministry and associated agencies. See pg b4
Bran: Finance systems, personnel must be reformed ‘Can’t be business as usual’ in revenue agencies DNA chief ‘very afraid’ of dollar devalue if no change
GB Power: Hurricane recovery plan ‘won’t ‘compromise’ utility By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Grand Bahama Power Company (GBPC) last night said it was confident it can recover its $27.5 million storm restoration costs “without compromising” any aspect of its business, provided there is not another Matthew-type hit before 2022. The energy utility, in response to Tribune Business’s questions, said it was still recovering the $27.5 million from its customers - but doing so in a way that will not increase electricity prices beyond their currently level for the next five
Consumers to pay without increase in energy rates Company to ‘mine savings’ in fuel, operations’ Confident if no Matthew-type hit before 2022 years. GB Power explained that, instead, it will “mine savings” from its fuel and operating costs to recover the See pg b8