05302019 BUSINESS

business@tribunemedia.net

THURSDAY, MAY 30, 2019

$4.90 ‘Don’t throw away dollars for nickels’: Vacation rentals eyed for $8m-$10m

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE government is “conservatively” estimating it will realise between $8m$10m per year from levying VAT on vacation rentals as it was warned not to “throw away dollars in going for nickels”.

Marlon Johnson, the Ministry of Finance’s acting financial secretary, told Tribune Business that the revenue yield could be considerably higher as it was still “trying to get a feel for the size of the market”.

Describing the $8-$10m as “a fairly conservative estimate”, he added that the government was still in the process of contacting online vacation rental websites and marketplaces to ensure they became VAT registrants so they could collect and remit the 12 percent levy on its behalf.

“We have been engaging marketplaces already, and they’re very familiar with the protocol of taxation and pay taxes around the world,” Mr Johnson said. The VAT Act requires that the tax be paid on all goods used, consumed or benefiting persons in The Bahamas regardless of whether they are supplied from outside.

The long-awaited imposition of taxation on Bahamas-based vacation rentals was confirmed by KP

SEE PAGE 11

THE deputy prime minister yesterday signalled a major shift in Bahamian culture by warning that the system of politically-based favours and patronage must come to an end.

KP Turnquest, unveiling the 2019-2020 budget in the House of Assembly, emphasised the Minnis administration’s determination to “break the cycle of dependence on government” by empowering Bahamians to take control of their own lives and destinies.

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

HE government was yesterday urged not to get carried away over its “lofty” ambition to achieve “the lowest deficit ratio” for almost two decades in the upcoming 2019-2020 fiscal year.

Gowon Bowe, the outgoing Bahamas Institute of Chartered Accountants (BICA) president, told Tribune Business that the long history of missed fiscal targets established by previous administrations meant it needed to be cautious over the projected one percent deficit-to-GDP ratio.

Urging the government to distinguish between the goal and actually achieving it, he said: “What I would caution is the early promise for the lowest budget deficit in the longest period of time. Not to dampen it, but a budget is just that. It’s not reality.

“It’s positive that they’ve crunched the numbers to meet that target, but given our past experience it’s a lofty goal and we should not promote that as the government having achieved it.”

Mr Bowe spoke out after KP Turnquest, the deputy

Describing the government’s economic and fiscal strategies as “a break from the past”, he said the 60-year practice of governments abusing taxpayer funds to award contracts to friends, family, lovers, cronies, constituents and political supporters “is not a formula for success and sustainability” and has to end.

Mr Turnquest also urged Bahamians to break with “conventional thinking” when it came to reliance on government and politicians to provide for their every need. He called

SEE PAGE 7

Civil service salaries in $53m ‘over-budget’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE government’s wage bill for the 2017-2018 fiscal year was over-budgeted by $53m because of non-existent persons on its payroll, the deputy prime minister revealed yesterday.

KP Turnquest, unveiling the 2019-2020 budget in the House of Assembly, disclosed that the government suffers from “a historical pattern” of over-budgeting due to the failure to remove civil servants who either leave the public service or retire from its payroll.

$4.91

Caution warning on ‘lofty’ 1% deficit goal

DPM: The era of ‘political favours’ is now finished

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

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Pointing out that this reduced funding for other public spending priorities, such as the security forces, health, education and social services, Mr Turnquest slammed a “very shallow and superficial budgeting process” that had frequently seen multiple government agencies spend just 60 percent to 70 percent of their annual budget allocations.

Pledging that the Minnis administration will seek to “surgically trim spending and linked inefficiencies, he said the government had

SEE PAGE 10

prime minister, in unveiling the 2019-2020 budget said the forecast GFS deficit of $137m represents the lowest amount of annual “red ink” incurred by the government

over the past ten years.

He added that this sum, which strips out the government’s debt principal repayments to measure only new debt, is equivalent to

Auto industry to ‘pick up steam’ through tax cut

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

one percent of Bahamian economic output, which was hailed as the lowest deficit-to-GDP ratio since 2002-2003. It also meets the deficit target that the government is mandated to hit by law in the shape of the Fiscal Responsibility Act. “This will be the lowest annual fiscal deficit recorded in The Bahamas in ten years. Also, our onepercent deficit-to-GDP ratio target will mean the lowest fiscal deficit ratio in this country in over 17 years. That is right, this will mark the lowest deficit ratio this land has seen in nearly two decades,” Mr Turnquest said yesterday.

To achieve this, the government is pinning its hopes on increased revenue yields through its Revenue Enhancement Unit (REU), which will focus on enforcement and compliance from its formal creation on July 1 to coincide with the new fiscal year’s start.

The Minnis administration

AUTO dealers yesterday said the industry is poised to “pick up steam” as a result of tax cuts that will give Bahamian consumers “more choice and better prices” from July 1.

Fred Albury, the Bahamas Motor Dealers Association’s (BMDA) president, hailed the Government’s decision to expand the number of dealers and vehicles that will benefit from lower excise duty rates as a result of reforms unveiled yesterday with the 2019-2020 budget.

KP Turnquest, deputy prime minister, disclosed that new vehicles valued at $50,000 or less, and with an engine size between 1.5 litres and two litres, will enjoy a 20 percentage point drop in their excise tax rate from the existing 65 percent to 45 percent.

He added that “new vehicles” will be classified as those with less than 200 miles on the odometer, joking that Bahamians would “still be able to drive from Orlando to Miami” and enjoy the benefits of the tax rate reduction.

Praising the government for meeting the auto industry “half way” on its request for further tax relief, Mr Albury said that while yesterday’s rate cut was not as steep as the 40 percentage

SEE PAGE 6

SEE PAGE 12

• Govt budget targets near two-decade low • BICA chief: Past experience calls for care • Deficit elimination slower than projected

K PETER TURNQUEST, deputy prime minister, presents the 2019-2020 fiscal budget report yesterday in Parliament.

Photo: Shawn Hanna/Tribune Staff

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PAGE 2, Thursday, May 30, 2019

THE TRIBUNE

FURNITURE RETAILERS GAIN BUDGET BOOST

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net

A WELL-KNOW furniture and appliance retailer yesterday said duty cuts unveiled in yesterday’s

budget will benefit Bahamian retailers “long term” and make them more price competitive.

Krystynia Leed’Arville, Furniture Plus’s vice-president of sales, marketing and organisational

development, told Tribune Business that the import tariff reductions were welcome even though any savings will not be immediately felt by Bahamian households due to existing inventory

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already carrying higher rates.

K Peter Turnquest, deputy prime minister, unveiled $28m worth of duty reductions in his 2019/2020 budget statement.

Duty on all household furniture will decrease from 45 per cent to 25 per cent with effect from July 1, while home refrigerators of 18 cubic feet or less will become duty-free. Home stoves that are 30 inches wide or smaller will also be duty free.

Mrs d’Arville told Tribune Business: “We will be immediately running numbers on our existing inventory. We have a 40,000 square foot distribution centre where we house inventory for our three locations as well as customers on other Family Islands that purchase from us. The first thing we are doing is running our inventory on hand to confirm what that means as far as duty payments already outlayed.

although we recognise that it is going to impact our existing inventory and our ability to transfer that to the consumer on an immediate basis will not be possible.”

Mrs d’Arville expressed hope that the government may provide tax credits for inventory already purchased and in stock at the old rates. “We have quite a large amount of products in inventory. Much of our inventory has already been purchased at 45 percent VAT,” she added.

Mrs d’Arville said that over the past three decades nine local furniture stores have gone out of business.

“Those are all business that employed Bahamians,” she added. “We have also struggled with remaining relevant and competitive.

People shop online or go to Florida. All of that is still good. I myself shop in the US and online, but there are things that we can do as a country to keep more money here.”

Cruising permit rise ‘push back’ awaited

By NEIL HARTNELL and NATARIO McKENZIE Tribune Business Staff THE Ministry of Finance’s top official yesterday said the government “feels comfortable” that the boating industry can absorb increased cruising permit rates despite marina concerns.

Marlon Johnson, the acting financial secretary, told Tribune Business that the government had conducted benchmarking studies on similar fees in rival Caribbean jurisdictions before unveiling the

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“On the flip side, these are very large ticket commodity items, and every Bahamian needs a stove and a fridge to cook and keep their perishables.

Everyone needs a sofa to sit on and a bed to sleep in.

We have always said that these are important things the average Bahamian needs regardless of what level of income and economic background you are.

“We also recognise that Bahamians shop abroad.

It’s great news to have reductions because if we can have consumers shop at home that benefits the country. We have been advocating for something like this for quite some time over the last several years of budget changes and tariff reductions,” she added.

“Furniture, appliances and electronics have not seen many reductions other than VCRs, which are really a non-existent player in the world today.

We are happy for this

new structure in yesterday’s 2019-2020 budget.

“We feel comfortable the market can absorb it,” he said. “We anticipate push back from some of the players in the market, but we feel with rates elsewhere in the region the market can absorb the increase.”

KP Turnquest, deputy prime minister, yesterday revealed that “government will increase cruising permit fees from $150 on boats up to 34 feet, and $300 on boats 35 feet and over, to a set of rates based on size and length of stay ranging from $150 per three months to $4,000 per year. These rates will become effective January 1, 2020, so as to allow a transition period for the boating industry”.

THE Association of Bahamas Marinas (ABM) said yesterday that while it supports the government’s need to increase revenue, it remains “deeply concerned” that proposed fee increases on the boating sector are being announced in an environment where there has been no improvement in important aspects of the industry’s infrastructure.

Peter Maury, the association’s president, in a statement said: “The Association of Bahamas Marinas is supportive of the government’s need to increase revenue, and are happy to see the maritime sector play its part.

“The increases presented by the deputy prime minister and minister of finance in today’s budget communication will contribute to this. The proposed increases have yet to be debated. After that takes place, we will immediately inform the industry.”

Mr Maury added: “We warmly welcome the imminent introduction of the ‘single window’ online collection portal for processing marine traffic, but remain deeply concerned that these fees are being announced in an environment in which there has been no improvement in important aspects of the industry’s infrastructure, with aids to navigation being of particular concern. For example, the NW channel light, a light of significant importance, remains non-functional after 28 years.”

THE TRIBUNE

Thursday, May 30, 2019, PAGE 3

DPM PLACES TAX EVADERS ON NOTICE

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE deputy prime minister yesterday warned tax cheats “who have been taking advantage of our inefficiencies” that they are a prime government target in the 2019-2020 fiscal year.

KP Turnquest, pictured, put fraudsters and evaders on notice as he unveiled the government’s ambition to add “as many as 9,000 unregistered properties” to the real property tax roll during the upcoming doorto-door assessment that will begin next month on New Providence.

Pledging a further compliance crackdown to ensure the government maximises its revenue yields, Mr Turnquest said during the budget communication: “It is well known that there is leakage in government tax revenue as a result of inefficiencies, alongside weak controls against fraud and corruption.

“It is our view that everyone should pay their fair share, and that means we are putting taxpayers on notice who have been taking advantage of our inefficiencies to cheat and circumvent the system and avoid paying their fair share.”

He explained that the real property tax initiative represented an effort to “revamp the existing antiquated system” by equipping the government with sufficient data to update the real property tax register.

“The first phase of this project is expected to add as many as 9,000 unregistered properties to the tax roll,” Mr Turnquest added. “It will bring fairness and transparency to the property valuation process by

establishing objective, local and internationally accepted measurements that are critical for property tax assessments.

“Eventually, there will be a public, online database of property values for tax purposes. The net result of this enforcement exercise is an anticipated annual boost of $21m in real property tax collections.”

The deputy prime minister added that the Government’s Revenue Enhancement Unit, which will be fully operational come July 1, had already generated $15m “incremental revenue” by providing “a new set of algorithms to update property values in high valued neighborhoods” and initiating collection activities.

Unveiling other real estate-related initiatives to be implemented in the upcoming fiscal year, Mr Turnquest said the cap on real property tax will be raised from $50,000 to $60,000 for high-end owneroccupied properties from July 1.

And the real estate transaction tax, while retaining the existing 2.5 percent and ten percent rates, will be changed from stamp tax to

VAT from the same date.

He added that the government is also amending the law to “plug the loophole” that allowed previously companies to treat VAT as a business expense and input, and either net it off or claim it back.

This occurred when the real estate transaction tax was split 7.5/2.5 between stamp tax and VAT, and Mr Turnquest said it could not have been the law’s intent for VAT on commercial transactions to be reclaimed when residential deals did not enjoy similar treatment.

The deputy prime minister added that the switch to VAT from stamp duty had also been necessitated by the removal of so-called “ring fencing”, or preferential tax breaks for foreign investors and non-resident entities, in the laws that brought The Bahamas into compliance with European Union (EU) and Organisation for Economic Co-Operation and Development (OECD) demands.

Marlon Johnson, the Ministry of Finance’s acting financial secretary, told Tribune Business that the newly-created “level playing field” for domestic and non-resident entities would have required The Bahamas to levy Stamp Tax on foreign real estate transactions involving Bahamian-domiciled entities.

Explaining that this was not the government’s intent, he said the switch to VAT would eliminate this possibility because the VAT Act stipulates that tax can only be levied on goods and services used, consumed or benefiting somebody in The Bahamas thereby eliminating any extra-territorial effect.

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PAGE 4, Thursday, May 30, 2019

THE TRIBUNE

Interest in Sebas funds ‘exceeds expectations’ SEBAS Bastian’s investment house yesterday said it had received more than 500 inquiries from potential investors within 48 hours of revealing its imminent mutual fund launch.

Investar Securities executives said initial interest in the Titan investment funds, which will be formally launched on June 3, had “exceeded all expectations”.

Ansel Watson, Investar Securities president and chief executive, said: “We announced the launch of the funds at OWN Talks

ANSEL WATSON on Thursday evening of last week (May 23) after 10 pm, at the end of a very

lengthy programme. With the coverage in the newspapers, on radio and TV, word got out quickly. By the weekend, less than 48 hours later, we had more than 500 inquiries.”

At $5 a share for the Titan Balanced Fund, and $10 a share for the Fixed Income Fund, both funds are designed to appeal to new investors as well as experienced ones. Entry level for the Balanced Fund is 100 shares for $500, whereas for the Fixed

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Income Fund it is 100 shares collectively costing $1,000.

“We want to offer investment opportunities to the every day working individual, including those who thought investment was beyond their reach,” said Mr Watson. “We want to help put wealth within everyone’s reach. It’s all about economic democratisation.”

Part of the initial interest is likely to have been driven by the Titan Balanced Fund’s proposed investment in Playtech Systems, the parent company for Mr Bastian’s Island Luck web shop chain. The fund will hold less than five percent of Island Luck, and is restricted from allocating more than 35 percent of its assets to any one investment.

Mr Watson said Investar Securities will allow more Bahamians to participate in the capital markets and ownership of this economy. The two funds will be denominated in Bahamian dollars, and their portfolios may include stocks in local companies, government treasury bonds, utilities and more.

“We will not know until much later whether the interest that we saw initially will translate into subscription, but it is a good sign and we are hopeful that more people will understand the sense of inclusion these investments offer,” said Mr Watson.

The Titan funds are approved and licensed by the Securities Commission of The Bahamas.

Subscription opens on June 3 at 9am at Investar Securities at Bay and Deveaux Streets; Cash ‘n Go locations on Rosetta Street and on Carmichael Road; Greenleaf Financial Services on Collins Avenue at Fourth Terrace and Colonial House, Thompson Boulevard.

POOR AND FINANCIAL SECTOR LOSE OUT OVER TAX INERTIA THE government has penalised both low income Bahamians and the financial industry’s competitiveness by failing to enact comprehensive tax reform, an opposition party argued yesterday.

Arinthia Komolafe, the Democratic National Alliance’s (DNA) leader, said in a statement that The Bahamas’ ninth-place ranking on a list of jurisdictions deemed to have “corrosive corporate tax policies” had reinforced the urgent need for this nation to “shed the tax haven label”.

Responding to the Corporate Tax Haven Index released by by the Tax Justice Network (TJN), she argued that there was “a direct correlation” between The Bahamas’ struggles to redefine its “value proposition” as an international financial centre (IFC) and the regressive taxation structure that penalises middle and lower class Bahamians.

Mrs Komolafe, noting that the Tax Justice Network’s listing occurred despite the legislative package passed

by The Bahamas last year to address precisely the same corporate tax evasion concerns, said: “We have expended much time and resources on being removed from lists produced by international agencies while increasing the cost of doing business and concurrently reducing our competitiveness.”

Calling for “a more holistic approach” that “redefines the value proposition of The Bahamas as an IFC”, she added: “It is regrettable that our recommendations have fallen on deaf ears by an administration that lacks or has failed to articulate a long-term vision for our country.

“We call on the government once again to wake up from its self-induced slumber and substitute its rose-tinted glasses of

ARINTHIA KOMOLAFE naivety with clear lenses of the new global reality. The goalposts will continue to be moved and the prospect of a real level playing field is wishful thinking. The Bahamas must chart a new course which sheds the tax haven label and reposition itself as an IFC without the baggage associated with perceived inadequate tax practices.”

Mrs Komolafe accused both the Free National Movement (FNM) and Progressive Liberal Party (PLP) of “perpetuating a regressive and oppressive tax system on the backs of the working and middle class, while taxing businesses on turnover rather than revenue”.

“The DNA submits that comprehensive tax reform which prioritises the creation of a progressive and more equitable system of taxation is long overdue,” she added. “There is a direct correlation between the challenges we face as an IFC and the regressive tax system that both political parties have maintained for the benefit of special interest groups.

“The Bahamas is being held back by the complacency and lack of fortitude by a government that governs for a select few. We remind the government that momentum is gathering around global corporate tax reform and they are only delaying the inevitable... The proverbial clock is ticking and the future of our financial services industry hangs in the balance.”

THE TRIBUNE

Thursday, May 30, 2019, PAGE 5

Flexibility for business licences

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE government yesterday inserted flexibility into the Business Licence regime by allowing

companies to pick which quarter they file their returns and pay the fee.

KP Turnquest, deputy prime minister, in unveiling the reform in yesterday’s budget, said it was something the private

sector had been seeking for some time in a bid to better align payment with cash flows and a company’s financial year-end.

Suggesting it would aid the “ease of doing business”, Mr Turnquest said

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BY ELECTIONS COMMISSION

EXECUTIVE MEMBERS: 1. Rosemary E. Burrows 2. Maralyn Genette Burrows 3. William Ingraham 4. Cyril Morris Jr. 5. Wayne Thompson 6. Kameisha Delique Wells 7. Judd T. Williams TRUSTEES: 1. Jacqueline Lorene Mckenzie 2. Bolinder Newbold – Munroe 3. Vernincha Louise Delcine Simmons 4. Lana Monique Williams-Smith 5. Haldane Alfred Stubbs AREA VICE PRESIDENTS: NORTHERN BAHAMAS: 1. Ann Marie Bullard 2. Eldecia Thompson GRAND BAHAMA: 1. Quintin Howard Laroda 2. George Austin Trevor Mills.

NEW PROVIDENCE: 1. Vernon Jemell Rodgers SOUTHERN BAHAMAS: 1. Ann Louise Strachan TREASURER: 1. Lorraine Knowles 2. John Musgrove ASSISTANT TREASURER: 1. Catherine Knowles-Stubbs 2. Katress Wells SECRETARY – GENERAL: 1. Helena Cartwright 2. Dion Damien Johnson 3. Tiffany M. Delancy-Laing ASSISTANT SECRETARY – GENERAL: 1. Juanita T. Gaitor 2. Cedricka Rolle PRESIDENT: 1. Joan Knowles-Turnquest 2. Belinda Wilson VICE PRESIDENT: 1. Tiffany Burrell-Roberts 2. Jason Haley From the desk of John Musgrove Secretary-General The Bahamas Union of Teachers

the changes “will allow for flexible dates for the submission and issuance of business licences”.

He explained: “Thus, as opposed to being restricted to an application deadline of January 31, and a payment deadline of March 31 for renewals and new applications, there will now be four periods in the calendar year when businesses can now select a time designation as their payment date so as to better correspond to their respective fiscal years.

“They can choose either March 31, June 30, September 30, or December 31. This revision is something that the business

community has been requesting for some time, given that their fiscal years do not always coincide with the calendar year.

The amended legislation also makes provision for a transitional phase to allow for the necessary adjustments to be made by the business community.”

Many in the private sector would have been hoping for more fundamental, farreaching reforms to a business licence structure that is based upon gross turnover and creates several potential distortions for Bahamian businesses.

Mr Turnquest, though, lauded other reforms that

have cut the time for processing business licence renewals from three weeks to 48 hours, with the Department of Inland Revenue (DIR) ultimately aiming to shrink this further to 24 hours.

The government also unveiled legislative changes making it mandatory for companies to register with Customs’ Electronic Single Window (ESW) clearance platform, while is also plans to consolidate the various taxation appeal boards into one Tax Commission that will be staffed by the current VAT Commissioners.

PAGE 6, Thursday, May 30, 2019

THE TRIBUNE

Caution warning on ‘lofty’ 1% deficit goal FROM PAGE ONE previously estimated the unit’s work could yield an extra $80m-$100m annually for the Treasury.

This is forecast to combine with a full year of 12 percent VAT, after the hotel and construction industry transition periods ended in early 2019, and the settlement agreed with (some) web shops, to drive a $215m revenue rise year-overyear to $2.628bn in fiscal 2019-2020.

Mr Turnquest yesterday

said this would increase revenue yields from 18.8 percent of GDP in the current fiscal year to 19.8 percent in 2019-2020, but the missed targets for 2018-2019 will likely fuel scepticism that over-aggressive goals could result in the deficit target being missed especially since he admitted that Bahamian economy is not recovering “at the pace previously projected” due to slowing global growth The deputy prime minister confirmed that revenues for the 2018-2019 full-year are now projected to come

in some $238m, or nine percent, lower than budgeted at $2.413bn due to the areas that the government now hopes will drive its income in the upcoming fiscal year.

There are long-standing concerns that the government’s revenue and GDP growth projections have been too optimistic across successive administrations, with these frequently-missed targets contributing to widening nine-figure deficits until the Minnis administration reduced spending to match its income.

Mr Turnquest said total

spending for the 2018-2019 fiscal year is also projected to be $259.1m or nine percent down on original estimates, and will finish the year at around $2.642bn for recurrent and capital expenditure combined.

By reining in spending to compensate for the revenue miss, the deputy prime minister said the 2018-2019 fiscal deficit is forecast to beat the $237.6m projection by some $8.6m. It is now anticipated to finish the year at $229m, Mr Turnquest said, and is again in line with the Fiscal Responsibility Act’s 1.8 percent of GDP target.

“These developments clearly signal that this government is focused on more than merely talking about our plan to govern this country in the right manner, but also on action,” he added.

“Bringing our plans to fruition and realising the goals that we set forth for fiscal reform are critical priorities for us, as they underpin and, in time, will incubate our broader economic objectives of inclusive growth, a sustainable and resilient economy, and increased productivity. The outcome is a sustainable improvement in the well-being of all Bahamian citizens.”

Comparing the government’s budget projections to the prior year shows it believes it will take longer than previously estimated to eliminate the fiscal deficit.

The Minnis administration had last year forecast it would run a $10m GFS surplus by 2020-2021, but yesterday’s revised estimated project modest deficits of $73m and $19m for that year and 2021-2022 respectively.

An $85m deficit, rather than yesterday’s $137m, had also been projected for the upcoming 2019-2020 fiscal year. The projections indicate the government is making slower progress than desired on eliminating the deficit, but it is nevertheless heading in the right direction.

Mr Turnquest said recurrent spending for 2019-2020 is set at $2.53bn, equivalent to 19 percent of GDP and some $95m higher than the prior year. He added that some $100.4m will be allocated to pay-off the $360m in arrears the government said it had inherited from previous administrations, in addition to the $172m due to be paid in the current fiscal year.

However, he warned that one obligation not currently included in the $360m pile is the unfunded deficit in the Bahamas Telecommunications Company’s (BTC) legacy defined benefit pension plan. The Ingraham administration committed to inject $39m into a feeder trust to cover the deficit as part of BTC’s sale to Cable & Wireless Communications (CWC) in 2011, but this sum was never paid.

Former prime minister, Perry Christie, said this obligation had ballooned to $62m and $99m in 2014 and 2016, respectively. Mr Turnquest yesterday said the government has allocated $3m in the 2019-2020 budget to start dealing with this as it works on a “multiyear” strategy to cover the balance.

Acknowledging that 2018-2019’s capital spending budget “needs to be higher” than the $235m or

1.8 percent of GDP allocated, the deputy prime minister said it was still $28m higher than the $207m allocated for this fiscal year.

Pledging that the government wanted to be “a better partner to the Bahamian people, he added: “It’s about citizen empowerment, making government work for Bahamians instead of making citizens feel they’re working for the government...

“For too long, the government has used taxpayers’ money to feed a culture of political largesse and government inefficiency; to put band-aids over structural problems that undermine the government’s ability to play its true role. Structural reform certainly does not sound very relatable, but just think about what it is like to live in a house that needs to be renovated; to work in an environment that is falling apart. It blocks your hustle; it cramps your style; it saps your creativity; it makes you physically sick.

“The reality is, the Bahamian government is like a house that needs repairs.

In some areas, the walls need to be gutted and the roof needs to be completely rebuilt. In other parts, new electrical wires need to be installed, along with new pipes and fixtures.

“The government is not supposed to be a barrier to progress. Citizens are not supposed to feel constrained in the pursuit of their dreams by a government that does not have its house in order. The Bahamas has reached adulthood, and it is time the government acts like it.”

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THE TRIBUNE

Thursday, May 30, 2019, PAGE 7

DPM: The era of ‘political favours’ is now finished FROM PAGE ONE for an end to the notion that problems are solved simply by throwing more money at them, or that the government will be able to address The Bahamas’ multi-billion “infrastructure deficit” by itself.

Highlighting the Small Business Development Centre’s (SBDC) creation as a key element in the government’s business empowerment strategy, Mr Turnquest said its processes and structure had been deliberately designed to remove any possibility for political interference and favours.

Besides boosting job creation and economic growth, the deputy prime minister added of the SBDC’s purpose: “Central to our economic philosophy is breaking the cycle of dependence on Government, which requires us to empower our citizens and facilitate growth and expansion, particularly in the small business sector...”

He added that the 13 entrepreneurs who have successfully accessed financing to-date went through the SBDC’s “rigorous” scrutiny of their business plans, “and

no politician had any say or hand in the outcomes”.

“I’m proud of that,” Mr Turnquest said. “No politician, none, had any hand in the training, approval and funding of these businesses. This is exactly what was intended in setting up this programme, and I’m so happy to see this coming to fruition and benefiting all Bahamians.

“The system was designed to be independent and merit-based to remove any need or opportunity for these entrepreneurs to knock on a politician’s door.

Their only qualification is that they were Bahamian, and that is how it will continue to be.

“No Bahamian need come to a politician to get a fair shake in their own country,” he continued.

“The systems we put in place should work for the Bahamian people, and the SBDC is a clear example of this principle operating in practice.

“We do not care if a person is PLP, DNA, FNM or has no party affiliation. We care about citizen empowerment, particularly as it relates to supporting entrepreneurs and facilitating an expansion of jobs and

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economic growth.”

Mr Turnquest added that the government’s drive to reform the “ease of doing business” in The Bahamas is also intended to improve governance and transparency in the private sector’s interaction with the public sector by removing political meddling from the process.

“Bahamians have wasted too much time and money being reliant on the good favour of a politician or public official to get simple things done,” he blasted in a budget presentation that contained multiple signals of an ambition to transform Bahamian governance and bring it into the 21st century.

Reiterating such themes at the end of his budget presentation, Mr Turnquest said the awarding of contracts to party supporters of whoever holds office “is not a formula for success and sustainability”.

“We’re about creating the empowered and independent Bahamian who never again will have to beg favours from a politician to get their rightful opportunity to benefit themselves,” he added.

Achieving this will not be easy, as the Minnis administration is battling

a deeply-entrenched culture that took root and flourished under, first, the United Bahamian Party (UBP), and then the Pindling administration.

Supporters of both major political parties have grown accustomed to receiving public contracts and other taxpayer largesse when their favourites hold the government, but Mr Turnquest yesterday suggested that what may have passed for good governance in the 1960s to 1980s is not fit for purpose given the demands of the 21st century’s globalised, digitised economy.

Such a patronage culture undermines the concept of a meritocracy; results in poor taxpayer value for money and contributes to widening fiscal deficits and national debt; creates opportunities for corruption; and results in inefficiencies that threaten the overall competitiveness of the Bahamian economy and well-being of its people.

In a similar vein, Mr Turnquest also called on Bahamians to shed the belief that the government will be able to take care of their every need.

“We have to break out of the thinking that we need to spend more money to

do more. To the contrary, we have an opportunity to spend the money we have more wisely and even deliver more benefits with increased efficiency and productivity,” he said during the budget presentation.

The deputy prime minister said the same was required when it came to involving the private sector with public infrastructure projects through privatepublic partnerships (PPPs).

“This embrace of the PPP approach will require us to think about old challenges in new ways, and to foster a different kind of thinking about how public goods should be delivered,” Mr Turnquest charged. ““We must obviously ensure that we create scenarios where the private

partner and the Bahamian public both benefit, but at the same time we cannot have a knee jerk negative reaction to anything that represents a departure from the old ways of doing things.

“We must ask: How can we create PPPs for constructing new roads and highways? Can there be a PPP for a school or hospital? Can private operators do car licensing or vehicle inspections? Can we use Bahamian entrepreneurs to deliver social services?

Until we challenge our conventional thinking, we will not be able to unleash our full communal energies and talents to overcome our most daunting administrative and infrastructural challenges.”

PAGE 10, Thursday, May 30, 2019

Civil service salaries in $53m ‘over-budget’ FROM PAGE ONE for too long relied on an unscientific budgeting process where ministries, departments and agencies simply based next year’s expenditure on their current budget and added “a few dollars” for new project proposals.

Focusing on the government’s wage bill, Mr Turnquest said the overbudgeting problems had been exposed by an internal government review “ministry-by-ministry, line item by line item”, that compared actual spending to budgeted allocations.

He added that civil service wages and benefits had “tapered” by $28.9m, or 4.8 percent, to $576.9m for the first ten months of the 20182019 fiscal year as a result

of “more precise budgeting, as opposed to a decrease in the total headcount”.

“To elaborate, in fiscal year 2017-2018, $790.4m was budgeted for employee compensation, though only $737.5m was spent, representing 93.3 percent of the budgeted amount. At the tenmonth mark last year, only 76.6 percent of the budgeted amount had been spent.,” Mr Turnquest said.

“Thus, in an effort to apply more prudent and accurate budgeting, in fiscal year 2018-2019 expenditure in this area was constrained to meet its historical trends, as it usually comes in lower than budgeted.”

Referring to the review he flagged earlier, the deputy prime minister added: “We found an historical pattern of over-budgeting. In the category of personal emoluments, for example, we found that

THE TRIBUNE the budget included allocations for salaries that were no longer being paid.

“How is this possible? You have situations where the employment register is outdated and does not reflect some of the employees who retire, leave the public service and move into pensioner status. Although these individuals are not being paid, their salaries are still being budgeted for.”

With civil service wages, salaries and benefits typically accounting for 30 percent of government spending, Mr Turnquest said over-budgeting in this area drained much-needed and scarce resources from other priority expenditure areas.

He added that the consequences of the government’s review will be “a reduction in the budgeted amount for salaries”, along with cuts in various expenditure items in

every single ministry. “This budget cut does not mean a cut in the actual headcount, or in actual programmes. It simply means we are budgeting properly to account for the actual commitments of the government,” he added.

While proper budgeting and spending cuts will likely thrill fiscal hawks who have long called for a reduction in the size of government, arguing that its bloated size imposes too heavy a burden on taxpayers, the 2019-2020 budget data still shows a rise in the public sector’s payroll over the next three fiscal years.

Total wages and salaries due to the public service in 2018-2919 were budgeted at $696.568m, a figure that does not include benefits. This compares to a $638.535m wage bill for the prior fiscal period, and some $456.794m of the current year’s allocation - equivalent to 65.6 percent of the total - had been spent during the first nine months.

The Minnis administration is now projecting that its wage bill will decline slightly to $671.507m for the upcoming 2019-2020 fiscal year that begins on July 1, before rising to $688.657m in 2020-2021 and $720.24m in 2021-2022.

Turning to the government’s wider budgeting process, Mr Turnquest said yesterday: “Time after time, in area after area, we have found cases where agencies did not spend all of their allocations. In fact, when the assessments were conducted, on average, most agencies spent roughly 60 to 70 percent of their budgets.

“As a result of our in-depth review, we identified opportunities to surgically trim the budget, decrease fiscal inefficiencies and reverse the historical pattern of improper planning resulting in over budgeting with little outcomes. This, Mr Speaker, is responsible, effective fiscal management.

“In the past, the budget exercise often involved

agencies looking at their previous budget and adding on a few dollars for their new proposals. This legacy approach turned into a very shallow and superficial process of budgeting. We have turned that practice on its head and approached the budget process in a surgical manner. Our work is far from over as we work to continue to improve our budgeting process, but you will see the results of our efforts, so far, reflected in various line item reductions in the new budget.”

Pledging to deliver value for money for Bahamian taxpayers, Mr Turnquest added: “It is important to remember that when we allocate money in the budget and Parliament approves that spending, we are not talking about an abstract exercise.

“Those numbers represent obligations we are imposing on hard-earned taxpayers’ money. Taxpayers have sent us here to spend their money wisely and not waste it.”

THE TRIBUNE

Thursday, May 30, 2019, PAGE 11

‘Don’t throw away dollars for nickels’: Vacation rentals eyed for $8m-$10m FROM PAGE ONE Turnquest, deputy prime minister, when he unveiled the 2019-2020 budget in the House of Assembly.

Acknowledging that vacation rentals provided an opportunity for Bahamians to obtain an ownership stake in the tourism industry, and spread the wealth among entrepreneurs and communities that traditionally have had little contact with tourists, Mr Turnquest nevertheless said the sector needed to pay its fair share to maintain services and infrastructure.

“We are mindful of the uneven playing field that this has created concerning hotels and have moved to level the playing field,” he said. “As such, all online marketplaces that advertise and facilitate vacation rentals in The Bahamas will now be required to pay VAT on their rental and related sales in The Bahamas.

“Thus companies such as Airbnb, HomeAway, VRBO and all such marketplaces with short-term rentals in The Bahamas will be required to pay VAT. I can advise today that some of these online marketplaces have already become VAT registrants and have been paying VAT, and we are in the process of ensuring that the outstanding e-commerce service providers are made compliant.”

Bruce Raine, International Private Banking Systems’ (IPBS) principal and a prominent vacation rental owner, yesterday told Tribune Business that Airbnb had been levying VAT on the $20-$30 it charges Bahamian homeowners to promote their properties since May. “If you look at the database of VAT payers on the government’s website, their supposed to list their settlement or city, but for Airbnb it’s blank,” he said.

“It’s ridiculous. They’re always jumping ahead of the legislation.

“I don’t think the Airbnb guest is going to automatically say they don’t mind paying 12 percent extra. They’ll look for somewhere else. What happens if you want to keep the business? The

MATT AUBRY poor Bahamian is just going to have to drop their price again. It’s all dropped on the small man. That’s the government’s position: take it off the small guy.

“The government wants to take more from the little bit they earn. If they get $10,000, $15,000 a year with Airbnb that’s a lot of money and the government wants to dip their hand in it.”

Mr Turnquest yesterday said vacation rental owners and their operations will not be impacted by the government’s taxation plans, as all the work - administration, collection and remittance - will be done by the website operators.

However, Mr Raine voiced fears that VAT’s imposition could make Bahamas-based vacation rentals uncompetitive on price with those in rival nations, resulting in a loss of business that could stunt development of a sector that has been growing rapidly.

“Our competitors in the Cayman Islands, Jamaica, BVI; they’re all over the world, even in Florida.

Are they paying VAT?” he asked. “We’ve got to remain competitive with the world. They want to talk about this WTO stuff, but they’re going to wipe us out before they get there. I have to keep my prices competitive.

“It’s going to kill the people, and the people in it are not wealthy people.

They’re poor Bahamians renting a room out in their homes. There’s a lot of other ways to find money out there... There’s a lot of business that comes with Airbnb guests; they’re in the grocery stores, liquor

stores and rental cars. It will kill a lot more than just owners.”

Matt Aubry, executive director of the Organisation for Responsible Governance (ORG), which commissioned an Oxford Economics report that identified vacation rentals as a sector that offered possibilities to grow and diversify the economy while creating Bahamian ownership, urged the government to ensure its tax plans do not “throw the baby out with the bath water”.

Acknowledging its interest in ensuring a taxation “level playing field” with the hotel industry, he added that the government also needed to examine how it could incentivise vacation rentals and their links to other Bahamian sectors such as light industries and agriculture - especially in the Family Islands.

“We have to make sure we’re not going for nickels while throwing away dollars,” Mr Aubry told Tribune Business, adding that vacation rentals needed to be viewed “as a really important opportunity for the Bahamian economy, as it opens the door for Bahamian ownership in tourism and we should look at ways to grow and incentivise this market.

“Along with a tax what kind of incentives are we going to put together? We don’t want to see it as a short-term gain. We want to see this as something that leads to growth that is sustainable and facilitates local economic development. We can’t see this as a way to fill gaps in this budget cycle.”

PAGE 12, Thursday, May 30, 2019

Auto industry to ‘pick up steam’ through tax cut FROM PAGE ONE drop afforded to vehicles with an engine size of 1.5 litres in last year’s budget, it still represented a win-win for consumers, dealers and the Public Treasury.

“Any move from where it was is positive, and I think it will help the industry to pick up some steam,” he told Tribune Business. “It’s going to help the government’s revenue compared to what they’re getting from these cheap, disposable used cars, which is a pittance, compared to what they will get from something of this nature.

“If it increases turnover by ten percent it will help them, and it helps us out as well. The government is

going to get more revenue if we sell more vehicles, and consumers are going to benefit. It’s going to bring down prices on a wide range of products for different brands. Consumers have more choice and better prices going as of July 1.”

Mr Albury said yesterday’s move by the government, which was again designed to make smaller, environmentally friendly, and more fuel efficient vehicles more affordable, will also spread the excise tax relief more equitably. Many auto dealers missed out on the benefits from last year’s cut because their product is in the 1.6 litre to two litre range that was addressed yesterday.

“Now all of the dealers will have some vehicles at reduced rates to be offered to consumers,” the BMDA chief added. “There’s a lot of product in the range of 1.6 to two litres and, as manufacturers make a big

THE TRIBUNE shift where they’re downsizing engines for everything, there’s going to be more and more product becoming available at two litres and less.

“Ford has a lot of product at 1.5 to two litres only...

Tyreflex/Star Motors, some of their Subaru product is at 1.7 to 1.8 litres, and a few of their Mercedes Benz can be here with two litre engines.

All of the dealers now have a horse in the race.”

Mr Albury said the government’s approval of bonded facilities, where excise tax only becomes payable once a vehicle is removed, would likely ensure dealers do not experience the problems associated with last year’s reduction this time around.

With no such facilities or transition period, dealers were forced to “eat” the 65 percent excise tax paid on vehicles with engines of 1.5 litres or less that were already in

stock once the rate dropped to 25 percent. This represented a six-figure write-off for some companies.

“I would like to think that the dealers that have purchased at these engine sizes (1.5 litres to two litres) had those in bond in anticipation of something happening out there,” Mr Albury added.

“We did and prepared for it. I cannot speak for everybody but, like the Boy Scouts said: ‘Be prepared’.

We sort of anticipated it.”

Mr Turnquest yesterday also announced that the government will “harmonise” the tax rates for all hybrid and electrical vehicles valued at up to $50,000 at ten percent. However, he added that this rate will “sunset” in five years’ time, with the hybrid and electrical car rates moving “closer” to those for other small cars.

Mr Albury described the five years as “a very reasonable period of time”,

adding that other countries had inserted similar “sunset clauses” when dealing with hybrid and electrical vehicles.

“By then hybrids would be mass produced, and the cost of production would have been reduced,” he added. “There’s new technology coming on stream all the time now, so in five years from now - by 2025 - if you watch what’s happening and the markets in Europe, there’s going to be a lot of change in the automotive industry with new products, new technology.

“It’s a new industrial age out there. Toyota, Honda have a fuel cell vehicle that runs on hydrogen. As these technologies come on stream, and once we have the refuelling infrastructure in place, we’ll have real zero emission vehicles out there.

The hybrids and electrical vehicles are stepping stones to get to zero emission vehicles.”

Rick Lowe, the BMDA’s secretary, told Tribune Business that the government had likely inserted the five-year “sunset clause” to protect its revenue earnings, having realised that they would decline as hybrid and electrical vehicle sales increased.

He added that the Excise Tax rate cut for vehicles with engine sizes between 1.5 to two litres would “help tremendously”, and added: “I think it’s going to have a positive impact, both for the Treasury and industry.

Hopefully we’ll be able to improve sales so that their [the government’s] revenue increases.”

Mr Albury, meanwhile, said: “I think the big concern going forward in the auto industry now will be our accession to the WTO, and how we transition now from where we are with the import taxes to lower taxes on spare parts.”

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, MARKELL MELISSA MCKENZIE of Clive Ave, Freeport, Bahamas intends to change her name to MARKELL MELISSA JOHNSON. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O. Box N-792, Nassau, New Providence, The Bahamas no later than thirty (30) days after the date of the publication of this notice.

IF YOU HAVE A PASSION TO SERVE AND WANT TO BE A PART OF THE AVERY’S TEAM...

Avery’s is a new Four Star, a la carte restaurant within the Adelaide Village, that will include a separate cigar lounge as well as a sports bar. You can enjoy up to a seven course Bahamian meal or just relax out on the deck with drinks and appetizers while absorbing the breathtaking view of the ocean. We plate our dishes with the freshest local ingredients and our menus reflect regional flavors from throughout the Bahamas. The location will take you back to life “island style,” while enjoying decadent island cuisines, among the company of good friends.

WE ARE IN SEARCH OF YOU TO FILL THE FOLLOWING POSITIONS; BARTENDERS BAR BACKS SERVERS BUS PERSONS PREP COOKS COOKS GENERAL REQUIREMENTS; Certificates/Diploma in areas of Hospitality a plus.

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Interested candidates must submit their CV to; averysrestaurant@gmail.com Applications will not be accepted on site.

THE TRIBUNE

Thursday, May 30, 2019, PAGE 13

CHINA DANGLES A POTENTIALLY HARMFUL NEW THREAT IN TRADE WAR

WASHINGTON Associated Press FACING new trade sanctions and a US clampdown on its top telecommunications company, China issued a pointed reminder yesterday that it has yet to unleash all its weapons in its trade war with the Trump administration.

Chinese state media warned that Beijing could cut America off from exotic minerals that are widely used in electric cars and mobile phones. The threat

to use China’s rich supply of so-called rare earths as leverage in the conflict has contributed to sharp losses in US stocks and sliding long-term bond yields.

For months, the world’s two biggest economies have been locked in a standoff over allegations that China deploys predatory tactics — including stealing trade secrets and forcing foreign companies to hand over technology — in a drive to supplant US technological dominance.

The Trump administration

has imposed 25% tariffs on $250bn in Chinese imports and is planning to tax the $300bn in imports that have so far been spared. And it escalated the stakes this month by putting the Chinese telecom giant Huawei on a blacklist that effectively bars US companies from supplying it with computer chips, software and other components without government approval.

The US claims Huawei is legally beholden to China’s ruling Communist Party, which could order it to spy

on their behalf. Washington has offered no evidence that the Huawei has done that, however.

Huawei is trying to beat back one punitive US measure in federal court. In a motion filed late on Tuesday in eastern Texas, the company argued that a 2018 law that bars it from selling telecom gear to US government agencies and contractors should be struck down as unconstitutional. The move for summary judgment in a case filed against the US government in March says

the law violates a constitutional prohibition against “trial by legislature” of individual entities. Congress thus acted unconstitutionally when it “adjudicated Huawei’s guilt and blacklisted it,” the motion argues.

An attorney representing Huawei in the US case, Glen Nager of Jones Day, asserts that Congress alone cannot constitutionally impose punishment on an individual company — which the punitive law does in singling out Huawei by name.

The law “is intended to

drive Huawei out of the US — ie, to banish it,” Nager argued.

It “stigmatises Huawei as a tool of the Chinese government” with no right to a fair hearing, he added.

Steven Schwinn, a professor at John Marshall Law School in Chicago, suggested that Huawei’s arguments fall short constitutionally, and “given that this relates to national security, we can expect the courts to be fairly deferential to the government”.

LEGAL NOTICE COMMONWEALTH OF THE BAHAMAS

2017/CLE/Qui/01427

IN THE SUPREME COURT Common Law & Equity Division IN THE MATTER OF ALL THAT piece parcel or lot of land containing 9,600 square feet being Lot Number 506 situate Southwest of Beauford Road in the Subdivision called and known as “Stapledon Gardens” in the Western District of the Island of New Providence, one of the Islands of the Commonwealth of The Bahamas.

AND IN THE MATTER OF the Quieting Titles Act 1959 AND IN THE MATTER OF the Petition of Michael T. Braynen NOTICE THE PETITION of MICHAEL BRAYNEN of Settlement of Deep Creek in the Island of Andros, one of the Islands of The Commonwealth of The Bahamas in respect of: ALL THAT piece parcel or tract of land containing Nine Thousand Six Hundred square feet (9,600) Lot Number Five Hundred and Six (506) situate of Beauford Road in the Subdivision called and known as “Stapeldon Gardens” in the Western District of the Island of New Providence, one of the Islands of The Commonwealth of The Bahamas MICHAEL BRAYNEN claims to be the beneficial owner in fee simple in possession of the parcel of land hereinbefore described and such ownership arises by virtue of possession of the said land.

Copies of the filed plan may be inspected during normal office hours at: 1.

2.

3.

The Registry of the Supreme Court, Ansbacher House, East Street North, Nassau, N.P., The Bahamas; The Chambers of Aksum Law Chambers, Aksum House, Okra Hill Road, Nassau, N.P., The Bahamas; -2- East Bay Street, Nassau, N.P., The Bahamas The Department of Lands & Surveys,

th dayor recognized in the Petition on or beforehaving the 30dower June,toA.D., file in the Supreme Court NOTICE is given shall that any person dower2019 or adverse claim or a claim notand -2- of right

serve on the Petitioner or theshall undersigned a statement of such claimA.D., in the prescribed verified by an recognized in the Petition on or before the 30th day of June, 2019 file in theform, Supreme Court and Affidavit to the be filed therewith. serve on Petitioner or the undersigned a statement of such claim in the prescribed form, verified by an Failure any person to file and service a statement of such claim on or before the 30th day of Affidavit to be by filed therewith.

June , A.D., 2019 by willany operate astoa file bar and to such claim.

Failure person service a statement of such claim on or before the 30th day of June , A.D., 2019 will operate as a bar to such claim.

AKSUM LAW CHAMBERS, Aksum House, Okra Hill Road, AKSUM LAW CHAMBERS, Nassau, The Bahamas Aksum N.P., House, Attorneys for the Petitioner Okra Hill Road, Nassau, N.P., The Bahamas Attorneys for the Petitioner

PAGE 14, Thursday, May 30, 2019

THE TRIBUNE

NOTICE

Legal Notice

ESTATE OF EZRA HELME HALL

NOTICE is hereby given that PERRY ATTFIELD of Lazy Shore Rd., Rainbow Bay, Eleuthera, 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 30th day of May, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

TAKE NOTICE that anyone having a claim against the Estate of EZRA HELME HALL late of Rosebud Street off Farrington Road, Nassau, Bahamas, who died on 20th July, 2018, may submit such claim in writing to the law firm of MAILLIS & MAILLIS, Chambers, Fort Nassau House, Marlborough Street, Nassau, Bahamas, tel: (242) 322-4292/3, fax: (242) 323-2334 ON OR BEFORE the 31st July, A.D., 2019.

NOTICE

NOTICE

NOTICE is hereby given that YAKUHU LOUIS of Bacardi Road, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twentyeight days from the 30th day of May, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE is hereby given that DARIO JOSEPH of Carmicheal Road Mckinney Drive, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 23rd day of May, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

LEGAL NOTICE

LEGAL NOTICE

INTERNATIONAL BUSINESS COMPANIES ACT (No. 45 of 2000)

NOTICE

In Voluntary Liquidation Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act, (No.45 of 2000), WHINCROFT LIMITED(the “Company”) is in dissolution. The date of commencement of the dissolution is 20th day of May, 2019. Luca Castellazzi is the Liquidator and can be contacted at Giacbachstrasse 51, 8044 Zurich, Switzerland. All persons having claims against the above-named company are required to send their names, addresses and particulars of their debts or claims to the Liquidator before the 18th day of June 2019.

“Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act (No. 45 of 2000). ALKING LIMITED, is in Dissolution.”

The date of commencement of dissolution is the 24th day of May, 2019.

Dr. Pierre-André Morand, Rue de l’Athénée 4, P.O. Box 330 1211 Geneva 12 Liquidator

MARKET REPORT www.bisxbahamas.com

(242) 323-2330

WEDNESDAY, 29 MAY 2019

(242) 323-2320

ALL SHARE INDEX: CLOSE: 2,169.89 | CHG: 0.43 | %CHG: 0.02 | YTD: 60.44 | YTD%: 2.84 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 20.91 7.00 5.50 2.60 2.00 3.25 11.05 6.17 4.64 12.50 2.74 1.96 9.32 7.00 15.60 7.50 3.95 14.00

52WK LOW 3.50 19.17 4.90 3.50 1.00 0.19 2.00 8.89 6.13 3.54 10.00 2.35 1.60 7.50 6.10 11.00 6.20 3.01 12.51

PREFERENCE SHARES 1000.00 1000.00 1000.00 1000.00

1.00 103.00 100.00 100.00 105.00 103.00 100.00 10.00 1.01

1000.00 1000.00 1000.00 1000.00

1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00

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

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

E J K L M N

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

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

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

CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

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

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

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

LAST CLOSE 4.18 17.43 6.00 5.40 2.50 1.95 2.21 11.05 6.16 4.48 10.00 2.73 1.85 9.38 7.00 14.45 7.50 3.48 14.00

CLOSE 4.18 17.43 6.00 5.40 2.58 1.95 2.21 11.05 6.16 4.48 10.00 2.62 1.85 9.35 7.00 14.45 7.50 3.48 14.00

CHANGE 0.00 0.00 0.00 0.00 0.08 0.00 0.00 0.00 0.00 0.00 0.00 -0.11 0.00 -0.03 0.00 0.00 0.00 0.00 0.00

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

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

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

CLOSE 100.00

CHANGE 0.00

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

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

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

VOLUME

1,000 1,000 2,500

20

VOLUME

EPS$ 0.167 0.932 -0.306 0.323 0.098 0.000 -0.431 0.708 0.480 0.154 0.627 0.102 0.209 0.000 0.636 0.834 0.950 0.205 0.631

DIV$ 0.130 1.260 0.000 0.250 0.000 0.020 0.000 0.710 0.220 0.120 0.620 0.068 0.060 0.328 0.240 0.500 0.200 0.090 0.600

P/E 25.0 18.7 N/M 16.7 N/M N/M -5.1 15.6 12.8 29.1 15.9 25.7 8.9 N/M 11.0 17.3 7.9 17.0 22.2

YIELD 3.11% 7.23% 0.00% 4.63% 0.00% 1.03% 0.00% 6.43% 3.57% 2.68% 6.20% 2.60% 3.24% 3.51% 3.43% 3.46% 2.67% 2.59% 4.29%

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

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

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

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

INTEREST Prime + 1.75%

MATURITY 19-Oct-2022

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

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

YTD%12 MTH% 0.32% 3.95% 0.62% 3.20% 0.69% 2.56% 2.06% 4.97% 4.52% 0.96% 1.57% 4.58% 0.99% 4.25% 1.32% 4.12% 3.22% 5.64% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69% -0.71% 0.16% 7.40% 2.70% 10.20% 1.30%

NAV Date 31-Mar-2019 31-Mar-2019 29-Mar-2019 31-Mar-2019 31-Mar-2019 30-Apr-2019 30-Apr-2019 30-Apr-2019 30-Apr-2019 28-Feb-2019 28-Feb-2019 28-Feb-2019 28-Feb-2019 28-Feb-2019 28-Feb-2019 30-Mar-2019 30-Mar-2019 30-Mar-2019

MUTUAL FUNDS 52WK HI 2.22 4.27 2.05 188.32 158.55 1.62 1.76 1.70 1.15 6.99 8.54 6.15 10.52 11.46 10.46 10.00 8.69 11.79

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.56 1.68 1.64 1.08 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

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

NAV 2.22 4.27 2.05 188.32 154.49 1.62 1.76 1.70 1.15 7.54 8.73 6.65 10.66 11.79 10.48 9.92 8.68 11.38

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

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

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, BRENDALEE SWAINMEJIAS and PEDRO MEJIAS, of Bimini Avenue, off Market Street Nassau, Bahamas, parents of FAITH BELOVED MEJIAS, a minor, intends to change his name to FAITH BELOVED MEJIAS MITCHELL. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas, no later than thirty (30) days after the date of publication of this notice.

NOTICE

NOTICE is hereby given that CHRISTINA PRIDORME of Dundas Town, Abaco, 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 30th day of May, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

Legal Notice Estate of Marcia Sandra Moss (deceased).

International Business Companies Act (No. 45 of 2000)

ALKING LIMITED In Voluntary liquidation

PUBLIC NOTICE

TAKE NOTICE that DESIREE RODRIQUES contact the law firm of Michael W. Horton, Counsel and Attorney and Notaries Public.

Chambers Arianna House Dowdeswell St. & Dunmore Ln. Nassau, Bahamas Telephone: (242) 325-1877