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MONDAY, JANUARY 6, 2020

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$40m roadworks to plug ‘huge hole’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE government must invest $40m in roadworks throughout The Bahamas “just to get through this year”, a Cabinet minister has revealed, as it aims to plug “a huge hole” in deteriorating infrastructure. Desmond Bannister, minister of works, told Tribune Business that sustained investment and capacity building were required to enable his ministry to focus on more than one to two large projects annually after Hurricane Dorian further exacerbated the

Bahamasair probe: ‘chips to fall where they may’ over jets By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMASAIR’S chairman last night said he was investigating the airline’s failure to equip three of its jets in time to continue flying to the US, and said: “The chips will fall where they may.” Tommy Turnquest, pictured, the former Cabinet minister and MP, told Tribune Business that himself and the Board had not been given sufficient warning that the initial supplier hired to outfit Bahamasair’s three 737-500 jets with the tracking and navigation equipment demanded by US

regulators had failed to meet its contractual deadlines. “I’m having an investigation done to find out more,” Mr Turnquest said. “The chair and the board wasn’t advised that the initial supplier was having difficulty in sufficient time. We’re still going through the process of

SEE PAGE 6

DPM: Deals ‘took advantage of the bahamian people’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE deputy prime minister has blasted previous administrations for “taking advantage of the Bahamian people” by entering into contracts “nobody in a commercial sense” would agree to. K Peter Turnquest, pictured, told Tribune Business that “there’s no doubt about that” when asked whether former governments had committed taxpayers to

huge expenditures and liabilities without any idea of how such agreements would be financed. With numerous multimillion dollar disputes between the government and private developers/ investors seemingly headed for Supreme Court resolution, Mr Turnquest said many of the deals inherited by the Minnis administration were “clearly not in the best interest of the Bahamian people long-term”.

SEE PAGE 3

Eleuthera, Grand Bahama and, to some extent, in New Providence the major challenge is the condition of the roads. All those islands we’re looking at what we can do with respect to the roadworks. “Every single one of those islands, including a number of areas in New Providence, require an investment of $5m-$6m in roads. There are very few countries where you

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‘Find fortitude’ to shut Bahamasair DESMOND BANNISTER

• Key infrastructure in ‘deplorable condition’ • $61m Dorian damage to public assets, buildings • Minister concedes: ‘We’ve got our hands full’ “deplorable condition” of many key Bahamian physical infrastructure assets. “Every island I look at, there are major works,” he said of 2020. “I’m thinking of which island does not have these major challenges. The infrastructure has really been left in a condition that is deplorable. We’ve made a start, and need to continue focusing on them. “In Long Island, Exuma,

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find this challenge. It will be $5m-$6m in Eleuthera, $5m-$6m in Eleuthera, and New Providence will probably be twice that. “Long Island is a huge problem, and I didn’t even mention south Andros. The road infrastructure has to be replaced on all these islands. I estimate that we will need just to get through this year $40m on roads.”

SEE PAGE 4

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A MEMBER of the government’s Air Transport Advisory Board says “somebody need to finds the fortitude to shut down” Bahamasair after three of its jets were blocked from flying to the US. Carey Leonard told Tribune Business that the failure to install the required tracking technology, despite having ten years’ advance warning of US regulatory requirements to do so, “proves that we [the government] shouldn’t be in this business”. He argued that “there could be no clearer example” of why Bahamian taxpayers should be relieved

CAREY LEONARD of the burden of annually subsidising the national flag carrier, adding that the episode showed” we still don’t know how to run it after 45 years”. Describing the failure to ensure Bahamasair’s three 737-500 jets complied with US regulations as “absolutely

SEE PAGE 4

PAGE 2, Monday, January 6, 2020

THE TRIBUNE

Abaco poultry supplier in 30% May production goal By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net AN ABACO-based poultry supplier believes it can hit 30 percent of preDorian production levels by this May with plans to exclusively target its most lucrative market. Lance Pinder, operations manager at Abaco Big Bird Poultry Farm, told Tribune Business it would initially focus on supplying Abaco as Nassau’s “high volume, low profit” model meant it had not been a viable

market for the company pre-Dorian. “We have kind of figured out how to get up and running,” Mr Pinder said. “We think that we may have some production of the chickens by May. But the production will be limited, and maybe about 20 or 30 percent of what we normally would have produced. “We just identified the minimal amount of investment we had to do to get back up and running. We need probably $2.5m to get the farm back to where it was. But we

can’t put the farm back in full capacity to where it was pre-Dorian. You still have to do it in incremental stages and grow as the market in Abaco grows.” Mr Pinder added: “The Nassau market is not viable for our business model to survive as it was. The Nassau market is a high volume and low profit market. What we may do first when we start to get back into Nassau is target our partners like AML [Foods] with some of our products, but as it is right now it is not an option for

us - the Abaco market is our market and where we make the most of our money.” He challenged Michael Pintard, minister for agriculture and marine resources, to fulfill pledges to provide Abaco Big Bird with a Crown Land grant “We have been trying to meet with minister Pintard, but he keeps shuffling us around,” Mr Pinder said. “Every time it’s talk to this person and that person. “We haven’t gotten any solid information on anything. I know instructions have been given to the land

unit in agriculture, and we also had our application in from the last administration back in 2014. But no movement on our crown grant has happened yet. Not even a word.” Mr Pinder added: “Things are still very slow over here. But I did notice half of the people on the plane coming in from West Palm Beach looked like second home owners coming back to Abaco, so that’s a good sign. In South Abaco we have had some people come back already for bone fishing. There are some parts of

Abaco that’s open for business thankfully. “I want the government to do something about the water supply in Cherokee Sound. From what I understand, there is an agreement between the Winding Bay property and the Government for Winding Bay to supply water to South Abaco, but since the storm we have not been getting steady water supply. It is unbearable. Tourists that come into South Abaco don’t even have access to water. Something must be done.”

Bahamas ‘can’t stick head in sand’ on artificial intelligence THE Bahamas has been urged to “get on that crest” of adopting artificial intelligence (AI) for use in business and education, amid warnings that it cannot “stick its head in the sand”. The upcoming Bahamas Business Outlook 2020 conference, scheduled for January 16, will feature a panel discussion about how artificial intelligence impacts various industries in The Bahamas. Dr Charles Diggiss, president of Doctors Hospital, will discuss how information sharing is changing healthcare, while Crachad Laing, head of math and sciences

at Windsor School, will highlight technological advancements in education. Arthur Frisch, chief technology officer and co-founder of Fli Drone, will discuss how emerging technology is shifting transportation and logistics. “The healthcare provider’s role has changed, and the implications for The Bahamas would be to get on that crest,” said Dr Diggiss. “People are entering the connected space, which allows data to move from them into some repository where that data is going to be handled, assimilated, go through deep learning algorithms, results come out

and circumvents the healthcare provider. And you learn a lot of things about yourself without going to the doctor.” Mr Laing added that the efficiency of processing, analysing and producing outcomes from big data is what makes artificial intelligence and machine learning such a critical concept that is causing a major shift in education. He explained: “Artificial intelligence and machine learning has changed how and what we teach. I think, in the near future, subjects like history, social studies, lower level math and general sciences will be cut out

just because it’s not about being able to recollect this information or access it in your memory. “At the end of the day, you can access that information at any time. We have voice recognition software. We have augmented reality goggles where I can ask Google a question and it appears in my line of view as if I am just at a computer desk asking the same thing. So, in education, there is definitely this shift happening where learning is more skills-based and industrybased as opposed to broad and general.” Dr Diggiss said Bahamians cannot simply “stick

our heads in the sand” and ignore emerging technology, especially when these advances are already changing life as we know it. He added that online banking and airport check-in kiosks have forced Bahamians to change in line with new technology. “Your default is going to go,” he added. “And if you’re default is gone then you’re locked into this process that will take you face-to-face, and head-tohead, with the reality of the applications of artificial intelligence. It’s already the background of some many things that we do now.” The Business

Outlook 2020 will take place at Baha Mar on January 16, 2020, under the theme A new era: Resilience in the face of vulnerability. To register, visit www. tclevents.com or contact Margaret Albury: malbury@tclbahamas.com or 242.322.1000.

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THE TRIBUNE

Monday, January 6, 2020, PAGE 3

Bahamas’ location can mitigate US-Iran fall-out ABACO ‘NOT EVEN CLOSE’ TO DORIAN REBUILD WORKFORCE By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Bahamas’ proximity to the US and safe reputation may mitigate any tourism fall-out as a result of heightened Middle East tensions, a Cabinet minister said yesterday. Dionisio D’Aguilar, minister of tourism and aviation, told Tribune Business that past experience had shown American travellers tended to “stay close to home” when they or their country were threatened by geopolitical risks. Speaking as to the likely consequences of the US decision to assassinate a leading Iranian military commander blamed for attacks that have killed hundreds of American troops, Mr D’Aguilar said The Bahamas and wider Caribbean’s reputation as a destination far removed from the threat of Middle Eastern terrorism would stand it in good stead to withstand any future external shocks.

DPM: Deals ‘took advantage of the bahamian people’ FROM PAGE ONE Declining to speak to particular examples, he told this newspaper: “It’s unfortunate that we have not used more discretion, more responsibility, in terms of entering into contracts where there’s absolutely no need for them, in some instances, and the commercial terms - or terms - are not ones you would usually see in a commercial lease. “It’s not just about the government. It’s about taking advantage of the Bahamian people and backing them into a circumstance that’s clearly not in the best interest of the Bahamian people long-term.” Mr Turnquest said several contracts had been entered without funding being allocated to finance them, or any notion as to whether the already-strained taxpayer could take further exposure. While agreeing that the Ministry of Finance’s involvement in such negotiations “would obviously help”, he said it had participated in several of the contracts in question “maybe directed or otherwise”. He added: “Some of them, the conditions that have been agreed, nobody in a commercial or objective sense

“Obviously there is a lot of concern about the state of affairs in the world as it relates to the threats being made by Iran against the US,” Mr D’Aguilar told Tribune Business. “That will have an effect on oil prices and on people’s decisions to travel. “That has yet to be seen, but generally what happens - since 82 percent of our visitors come from the US - the American traveller is not minded to go far from home. And terrorism, when it happens, typically does not happen in our hemisphere. “The Caribbean, and just south of the Caribbean, is perceived as being a safer place to travel to that’s closer to home and has not attracted the attention of terrorists. The Bahamas, and Caribbean in general, become attractive because they’re perceived to be safer. But we have to be vigilant, and everybody will have to up their game, which I think they are.” Iran has repeatedly threatened military

retaliation against the US for last Thursday’s assassination of Qassem Suleimani, the head of its Revolutionary Guard Corps’ Quds force, and architect of much of its Middle East policy. Among the targets vulnerable to such retaliation are the aviation industry, while there are growing fears that Iran might strike at the Middle East’s oil industry. It has been accused of targeting oil tankers and Saudi Arabia’s refining industry, and has the ability to close the Strait of Hormuz - the channel through which 20 percent of the world’s oil is transported - if it chose, potentially sending oil prices skyrocketing. Oil prices, as measured by the Brent crude index, jumped by 3.6 percent on Friday following the assassination to $68.60 per barrel and are projected to increase further this week amid the tit-for-tat threats going back and forth between the US and Iran. The timing, never good,

would ever agree to. We’ll see what happens with all the claims made, and when they are finally resolved we will address it then I suppose.” Tribune Business last week revealed that the Supreme Court gave a preChristmas oral verdict that the government’s lease of the Summerwinds Shopping plaza, owned by former Cabinet minister Leslie Miller and his family, was “valid and binding” on the Crown. This has opened the way, potentially, for a damages claim against the government and Bahamian taxpayer for more than $66m. Mr Miller’s lawsuit, filed in July 2018, and the five leases involved were among the contracts identified by Mr Turnquest during the 2018 mid-year budget debate as “handcuffing” the government’s financial plans. It was one of two cases he cited where the government owed between $13m-$14m for property leases and had “no exit clauses”, even though “not one single government worker has ever set foot in the building”. Tribune Business also reported recently on the other “case”, which involves businessman and accountant Kingman Ingraham, who is asserting a $30m claim against the government based on its alleged breach of an irrevocable lease agreement to rent the former Kelly’s Warehouse on Soldier Road for the Department of Public Health - a situation that has placed his family home in jeopardy. Between his claim and that

of Mr Miller, the government - meaning the Bahamian taxpayer - could be facing a near-$100m payout liability if both their claims are upheld and they obtain the damages sought. There is also the litigation launched by Scott Godet, developer of the initial Post Office private-public partnership (PPP), after the government ended his $17.43m project. Tribune Business knows of other potential multi-million dollar claims against the government by investors and companies who believe it has breached binding, legally enforceable contracts they have with it. This suggests the $186m figure quoted by former MP and Cabinet minister, Pierre Dupuch, as to the total liabilities faced by the taxpayer may not be completely far-fetched. Mr Turnquest’s words will be of little comfort to these investors, who will argue that the proper course is simply for the government to negotiate a financial settlement with them or pay them what is due under the deal’s terms rather than seek to wear them down by dragging the case out through the court system. The cash-strapped Treasury, though, may provide one explanation for the government. And Mr Turnquest told Tribune Business that it had “to be mindful of these issues” when doing its annual budgeting, since “unanticipated” claims “much more than you imagined” had a habit of emerging during the year.

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is especially bad for a Bahamian economy still struggling to recover from Hurricane Dorian. It could also dash Bahamas Power & Light’s (BPL) pledge to reduce power costs for Bahamian consumers through its new, more efficient Wartsila engines, and again exposes this nation’s energy security vulnerability and total reliance on imported fossil fuels in the absence of any hedging strategies. Oil price increases will impact every corner of the Bahamian economy, raising energy and transportation costs; increasing airline ticket prices for tourists as a result of higher fuel prices; and spiking the cost of multiple products including asphalt used for road surfaces. K Peter Turnquest, deputy prime minister, told Tribune Business: “For us locally it translates into higher transportation costs as well as higher energy costs. Any increase in that has a negative effect that can impact the economy.

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net ABACO is “not even close” to the manpower levels required for post-Dorian reconstruction, the island’s Chamber of Commerce has confirmed, while asserting that all workers must be here “legally”. Ken Hutton, responding to assertions by former finance minister, James Smith, that the speed of the island’s postDorian rebuilding could be undermined by the government deporting much of the necessary workforce back to Haiti, said any foreign labour that is required needed to possess a work permit and the necessary permissions to enter The Bahamas. Asked whether Abaco has sufficient labour to handle the island-wide recovery, Mr Hutton said: “Not even close. I think who is working in this country should be here working legally. If they are going to work here they have to be processed properly like everyone else.

“I think that we need more workers there. We need to fill that gap, and if we need to bring foreigners then we have to, but anyone who wants to work here must got through the process legally.” Quentin Knowles, the Bahamas Society of Engineers (BSE) president, conceded that the construction industry “heavily depends on Haitian labour” to perform tasks for which Bahamians are unavailable or unwilling to do the work. While suggesting that there was sufficient manpower in The Bahamas to meet Abaco’s post-Dorian needs, he added that finding suitable available accommodation to house such a workforce will prove challenging given the extent of damage to the island’s housing stock. “As a contractor, I think one of the biggest constraints will be housing for construction workers,” he said. “In order to make construction happen you need people to do the work, and they need somewhere to live - at least a bed and somewhere to eat. “

PAGE 4, Monday, January 6, 2020

‘Find fortitude’ to shut Bahamasair FROM PAGE ONE

outrageous”, Mr Leonard said annual taxpayer subsidies enabled the national flag carrier to both distort the domestic aviation sector and deprive the local economy of much-needed consumer spending. He argued that privatelyowned Bahamian airlines are unable to properly develop with Bahamasair able to use its subsidy to undercut them on ticket prices, while

the taxpayer-funded Florida “discounts” helped suck spending away from local retailers. Bahamasair said over the weekend that its flight schedule remains unchanged, having switched its 737-500 fleet to service domestic and non-US international routes. Arguing that the situation is far from the disaster some are portraying it to be, the national flag carrier said the three impacted jets have simply swapped roles with

THE TRIBUNE its turbo prop places, which will take their place on the Florida routes. The national flag carrier added that it would “wet lease” jet aircraft to handle flights into Miami, Fort Lauderdale and Orlando should the smaller ATR turbo props be unable to meet passenger demand at certain times, as occurred over the weekend. Mr Leonard, though, argued that “wet leasing” where Bahamasair rents a plane complete with its crew, maintenance and insurance - was “horrendously” expensive for an airline that is due to receive a $22.4m annual taxpayer subsidy this year. He added that using jets on short-haul routes between Nassau and domestic destinations such as Exuma,

Eleuthera and Freeport would be highly inefficient, especially when measured against indicators such as fuel economy, and result in increased “wear and tear” and associated maintenance costs. This, though, was denied by Bahamasair’s present chairman (see other article on Page 1B). “Somebody in government needs to find the fortitude to shut it down,” Mr Leonard blasted of Bahamasair. “The cost of running a jet with a few passengers to Exuma, Eleuthera, Abaco and Freeport is just outrageous. You’re going to send them on a 15 to 30-minute flight. It’s crazy; it’s absolutely crazy. “This is a good example of why this airline should be

shut down. Unless I’m much mistaken this airline has cost us more than Bahamas Power & Light. The cost of wet leasing is horrendous. This whole thing makes no sense. If ever the government is going to get to grips with balancing the budget and the money it loses, get rid of Bahamasair.” Mr Leonard added that the less than 200-mile trips between Nassau and Miami were themselves only profitable with high passenger load factors of at least 80-90 percent, and said: “I’m just absolutely astounded that this airline has been in existence for 45 years and has not figured out how to comply with the rules when it’s had ten years to do it. “It goes to prove the fact that we shouldn’t be in the business at all because we don’t know how to do it. We’ve been in it for 45 years, and still don’t know how to do it, so we should get out of the business and shut it down. You couldn’t have clearer example of why Bahamasair shouldn’t be in existence.” The airline’s latest controversy stems from the inability of its three older 737-500 jets to fly to the US as of January 1, 2020, because they have not been fitted with the necessary flight tracking technology required by industry regulator, the Federal Aviation Administration (FAA). The FAA’s requirements have been known of by the global aviation industry since 2010, leading many observers - including Mr Leonard - to question why Bahamasair seemingly left the upgrades until the last minute. ADS-B (Automatic dependent surveillance - broadcast) equipment needs to be installed, costing $195,000 per plane. This was supposed to have been completed through one aircraft being outfitted every month between September and November last year. However, Bahamasair is alleging that the initial supplier, to which it paid a $200,000 deposit, was unable to deliver and only informed it of this after the third aircraft deadline was missed. This prompted a scramble to locate another supplier, which has promised to source the necessary equipment and complete the

installations by end-January. Tommy Turnquest, Bahamasair’s current chairman, explained that the installations had been awaiting a decision on whether Bahamasair will keep its aging 737-500 fleet or upgrade via purchases of new aircraft. This was also the rationale given by opposition leader, Philip Davis, on Friday for why the upgrades did not take place under the former Christie administration during its five years in office. Mr Leonard, though, argued that there were other sound reasons for why Bahamasair should cease to be owned and supported by the Bahamian taxpayer. “Because we subsidise this airline to compete against the private companies, it stymies any form of aviation sector development in The Bahamas,” he told Tribune Business. “It’s holding Bahamians back from developing real airlines. The poor private airline trying to get going is paying taxes that help Bahamasair to put it out of business. The whole thing is outrageous.” Pointing out that Bahamasair did not play a prominent role in bringing tourists to the country, Mr Leonard added: “All it does is offer discounted prices to Bahamians to shop away using business licences and other taxes to put Bahamian airlines out of business and, quite frankly, Bahamian shops as well. “They’re subsidising these cheap tickets so people can shop in Florida and come back. If we want to fix the economy, shutting this airline would go a long way to doing that.” Bahamasair has cost Bahamian taxpayers more than $500m, or half a billion dollars, in subsidies to cover its annual eight-figure losses since being launched in 1973. Given that its most recent financial statements have yet to be released, that figure is likely to be approaching somewhere in the $600m-$700m range. However, given that the overstaffed carrier employs between 600 to 700 persons, the government is unlikely to desire Bahamasair’s sudden, complete closure because of the impact on employees and their families, and the knockon effect for general election votes.

$40m roadworks to plug ‘huge hole’

time... Many of them have been groomed and are taking on large projects from the outset.” The Ministry of Works is now focusing on recruiting architects and engineers to head-up its operations on islands other than New Providence, having already hired an American and Canadian engineer, respectively, to lead it on Eleuthera and Abaco. Meanwhile, identifying other infrastructure priorities, Mr Bannister said the rebuilding of the Little Abaco Bridge that provides the link with Great Abaco is “moving ahead” following its destruction in Hurricane Dorian. Government documents seen by Tribune Business peg total Dorian-related damages to roads, bridges, airports and seaports at $51m, with a further $10.6m worth of destruction inflicted on public buildings. Out of this $61.6m, four bridge and seawall projects alone are estimated at $32.71m, of which the Little Abaco Bridge accounts for $6m. “The Little Abaco Causeway was built in the 1960s to connect Little Abaco Island to Great Abaco Island. Construction of the causeway effectively cut off the migration route for marine life to the south side of the islands, which has shallow waters and vast mangroves ideal for spawning. Additionally, it prevented access to small boat traffic through the underlying channel,” one report said. “In 2016, a culvert system was constructed to allow for the water flow under the road. During the passage of Hurricane Dorian, the culvert structure suffered severe damage from storm surge. Consequently, it has been recommended that a bridge be constructed to replace the causeway.” Other projects identified include a $1.21m overhaul for Fishing Hold Road Bridge on Grand Bahama; the $24m repair and construction of new seawalls on Grand Bahama; and $1.5m worth of repairs and upgrades to Marsh Harbour’s Bayshore Road including the construction of a new seawall.

FROM PAGE ONE Asked whether the Ministry of Works has the necessary financing in its budget to proceed with such extensive upgrades, Mr Bannister replied: “We’re going to ask [the Ministry of] Finance to ensure we have the requisite funding to move ahead... Pray we get the money.” New Providence residents and motorists have been increasingly complaining about the condition of the island’s roads in recent months, identifying problem areas such as the Village Road/Shirley Street junction that need urgent attention to prevent accidents and damage to vehicles. There are numerous locations such as that where the utility companies appear to have dug up the roads and failed to properly resurface them. “There’s a huge hole that we have to fill,” Mr Bannister told Tribune Business of The Bahamas’ infrastructure challenges. “We just have to keep plugging away. Every day when I look and see the amount of work that they [Ministry of Works staff] do I’m just completely dumbfounded because they do so much. “It’s continuing to buildup. We have to start looking ahead at the type of capacity building that allows us to move ahead and focus on any number of large projects as opposed to one or two every year.” Mr Bannister added that the 23 architects, engineers and draftsmen recruited by the Ministry of Works in 2019 represented its largest-ever annual intake of professionals, and he said: “The good thing is that they have been young Bahamians attracted to the ministry for the first

PAGE 6, Monday, January 6, 2020

THE TRIBUNE

Bahamasair probe: ‘chips to fall where they may’ over jets

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FROM PAGE ONE

MARKET REPORT www.bisxbahamas.com

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FRIDAY, 3 JANUARY 2020

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ALL SHARE INDEX: CLOSE: 2,232.21 | CHG: 0.71 | %CHG: 0.03 | YTD: 0.61 | YTD%: 0.03 BISX LISTED & TRADED SECURITIES 52WK HI 4.45 22.65 7.00 6.10 2.60 2.00 5.47 11.75 6.17 4.50 11.01 2.81 4.60 10.21 7.90 16.99 9.40 3.63 14.20

52WK LOW 3.35 20.91 5.50 5.38 1.47 0.22 2.00 9.50 5.60 3.95 6.75 2.35 1.76 8.00 6.25 12.15 6.80 3.01 13.01

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

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1000.00 1000.00 1000.00 1000.00

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

CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB

PREFERENCE SHARES

1.00 10.00 1.00

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

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 3.59 17.43 6.00 6.10 2.35 1.80 4.40 11.06 6.16 4.50 8.01 3.21 4.35 10.43 7.60 15.05 9.33 3.54 14.00

CLOSE 3.59 17.43 6.00 6.10 2.35 1.80 4.40 11.06 6.16 4.49 8.01 3.20 4.60 10.45 7.60 15.05 9.33 3.56 14.00

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1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00

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 900 2,000

7,945 7,000

10,000

VOLUME

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

0.000 0.000 0.000 0.000 0.000 0.000 0.000

P/E 15.0 18.7 N/M 16.5 N/M N/M -10.0 15.3 13.7 24.4 57.2 31.4 9.9 16.2 10.4 18.4 9.9 17.5 22.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0

YIELD 4.74% 7.23% 0.00% 4.26% 0.00% 1.11% 0.00% 6.51% 3.57% 2.67% 0.00% 13.56% 1.30% 3.14% 3.16% 3.59% 2.14% 3.37% 4.36% 0.00% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%

INTEREST Prime + 1.75%

MATURITY 19-Oct-2022

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

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

YTD% 12 MTH% 3.06% 3.81% 1.91% 3.39% 2.23% 2.75% 4.99% 6.20% 7.18% -0.08% 2.88% 3.80% 4.56% 6.50% 3.35% 4.17% 5.77% 7.89% 10.91% 11.57% 17.57% 18.60% 4.72% 5.08% 13.44% 13.49% 5.38% 5.44% 3.28% 3.80% N/A N/A 10.80% 2.60% 10.40% -4.00%

NAV Date 31-Oct-2019 31-Oct-2019 25-Oct-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Nov-2019 30-Nov-2019 30-Nov-2019 30-Nov-2019 30-Nov-2019 30-Nov-2019

MUTUAL FUNDS 52WK HI 2.27 4.32 2.08 194.86 158.57 1.65 1.82 1.74 1.21 8.31 10.26 6.91 11.76 12.32 10.74 10.00 8.98 11.79

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

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

NAV 2.27 4.32 2.08 193.72 158.42 1.65 1.82 1.74 1.19 8.29 10.16 6.91 11.76 12.32 10.72 N/A 8.98 11.40

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 | COLONIAL 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333

30-Sep-2019 30-Sep-2019 30-Sep-2019

getting more information, and the chips will fall where they may. “I accept responsibility. I’m the chairman. The lot is under me to make sure there’s a full review of the whole process, and we’ll deal with it.” Bahamasair’s latest controversy stems from the inability of its three older 737-500 jets to fly to the US from January 1, 2020, because they have not been fitted with the necessary flight tracking technology required by the Federal Aviation Administration (FAA). The FAA’s requirements have been known by the global aviation industry since 2010. All planes flying to the US need to be fitted with ADS-B (Automatic dependent surveillance - broadcast) equipment, which will cost Bahamasair $195,000 per plane for each of its three 737-500 jets. The three installations were supposed to have been completed through one aircraft being outfitted every month between September and November last year. However, Bahamasair is alleging that the initial supplier, Fokker, to which it paid a $200,000 deposit, was unable to deliver and only informed it of this after the third aircraft deadline was missed. This prompted a scramble to locate another supplier, which has promised to source the necessary equipment and complete the installations by end-January, Mr Turnquest confirmed yesterday. He pledged that “every effort will be made to recoup” the $200,000 deposit paid to Fokker, and “instructions” had already been given to obtain its return. Bahamasair’s position, he added, is that Fokker has failed to meet its contractual obligations, and it now wants to switch the funds to paying the new supplier, Janzair. Mr Turnquest said he had been informed Bahamasair “didn’t know” Janzair was in a position to supply and install the tracking/navigation equipment until it was told about the company by Swift Air, from whom it has leased planes before. Bahamasair’s three 737500 jets have swapped roles with the national flag carrier’s ATR turbo prop fleet until the installations are complete, meaning they are servicing domestic and non-US international routes to the likes of Cuba, Haiti and Turks & Caicos, while the latter are taking the burden of the Miami, Fort Lauderdale and Orlando routes. Mr Turnquest denied that the switch would further increase Bahamasair’s losses, or negatively impact its fuel costs and maintenance. “There’s no difference between that and going into Florida,” he said of the routes now being flown by the 737-500s. “These are old aircraft. It’s roughly the same distance and same amount of usage. That’s a non-issue in my view.” Asked whether the carrier’s financial situation would also take a hit, Mr Turnquest said: “We’ll do a full analysis but, in my view, no.” Bahamasair’s 50 and 70-seat ATR turbo prop fleet are unable to match the passenger-carrying capacity of the 120-seat 737-500s, but Mr Turnquest said they were a better fit for current demand as “US travel drops off significantly at the beginning of the year. The load factors are very low”. The national flag carrier added that it would “wet

lease” jet aircraft to handle flights into Miami, Fort Lauderdale and Orlando should the smaller ATR turbo props be unable to meet passenger demand at certain times, as occurred over the weekend. Some observers fear “wet leasing” - where Bahamasair rents a plane complete with its crew, maintenance and insurance - was “horrendously” expensive for an airline that is due to receive a $22.4m annual taxpayer subsidy this year. Mr Turnquest, though, denied this, adding that the weekend’s “wet lease” had likely produced a small profit for Bahamasair. He added that in using the jets on the Florida routes “you’re not making the maximum use of your resources”. “Bahamians like the jets because they can carry the bags and so on,” he told Tribune Business, “but Bahamasair has to be financially prudent in the use of its resources. We wet leased yesterday [Saturday]. One round-trio into Fort Lauderdale and back yesterday morning, and it came back and did Nassau to Orlando and back. “The good thing about that is while we have 120 seats, with the wet lease we were able to use a 157-seat plane. Not only did we cover the cost of the wet lease but we put some money to the bottom line through the greater load factor. We made some money on the lease.” Dionisio D’Aguilar, minister of tourism and aviation, yesterday told Tribune Business he was only informed of the situation “three business days” prior to the January 1, 2020, deadline to comply with the FAA’s demands. He said Bahamasair had been justified in waiting to outfit the 737-500s, which are 25 year-old aircraft, until it knew it was keeping them in its fleet, but suggested the airline may have made a mistake in allowing Fokker to miss all three installation deadlines before it went to “Plan B”. “I don’t anticipate any big hiccup,” Mr D’Aguilar told Tribune Business. “At the end of the day we’ve swooped in with a mitigation plan. There probably will be some hiccups; there always are with Bahamasair, but we’re entering into January which is traditionally extremely slow. “Certainly, Bahamasair has got you covered. That’s what most Bahamians will be asking, and yes, they have. Management has assured me that they have got this covered. It’s not like they haven’t had a wet lease before. It may cost a bit more to operate these jets, but we’re not perfect in business. Business people make mistakes every day. “We can all Monday morning quarterback on this. With hindsight one might say when they [Fokker] missed the first and second deadline, they should have ratcheted it up at that stage rather than wait for them to miss the third deadline and only then give a warning. They were probably not minded to do that as they’d paid a $200,000 deposit.” Mr D’Aguilar said the funding and authorisation for the equipment installations had already been approved, adding that it was an execution issue for Bahamasair’s Board and management rather than himself or the Cabinet. “The PLP are creating political mischief out of this, and there’s really none to be had,” he added.

NOTICE NOTICE is hereby given that SUZETTE ANGELLA WALLACE of 69L Frobisher Circle Freeport, Grand Bahama 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 6th day of January 2020 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

THE TRIBUNE

Monday, January 6, 2020, PAGE 7

Oil prices surge, stocks fall after US kills Iranian general By ALEX VEIGA Associated Press STOCKS fell broadly on Wall Street and oil prices surged on Friday after a US strike killed a top Iranian general in Iraq, raising tensions in the Middle East. The selling, which lost some momentum toward the end of the day, ended a five-week winning streak for the S&P 500 a day after the benchmark index hit its latest record high. The price of US crude oil climbed 3.1%. Investors sought safety in US government bonds, sending their yields lower. The price of gold rose. Technology, financial and health care stocks accounted for much of the selling. Companies that rely on consumer spending also fell, along with airlines. Several energy stocks got a boost from higher oil prices. Defense contractors also notched gains. The strike marks a major escalation in the conflict between Washington and Tehran, as Iran vowed “harsh retaliation” for the killing of the senior military leader. “Until now, the two big risks have been policy -trade and the Fed,” said Jeff Kravetz, regional investment director at US Bank Private Wealth Management. “This introduces a wildcard, which is a third

risk: rising political tensions in the Middle East.” The S&P 500 dropped 23 points, or 0.7%, to 3,234.85. The index ended with a 0.2% loss for the week. The Dow Jones Industrial Average fell 233.92 points, or 0.8%, to 28,634.88. The index briefly dropped 368 points. The Nasdaq lost 71.42 points, or 0.8%, to 9,020.77. The Russell 2000 index of smaller company stocks gave up 5.90 points, or 0.4%, to 1,660.87. The major stock indexes were coming off record highs after closing out 2019 earlier in the week with the best annual performance by the S&P 500 and Nasdaq since 2013. Investor sentiment has been mostly positive in recent weeks as concerns about the strength of the economy and the possibility of further escalation in the US-China trade war eased. Three interest rate cuts by the Federal Reserve have also helped steady markets. But the market’s relative calm ended with Friday morning’s news that the US had killed Gen. Qassem Soleimani, head of Iran’s elite Quds Force, in an air attack at the Baghdad international airport. President Donald Trump said the attack was ordered because Soleimani was plotting to kill many

Americans. The Pentagon took steps to reinforce the American military presence in the Middle East in preparation for reprisals from Iran. “We’ll probably see some short-term volatility, but it’s doubtful that it’s going to escalate to something that is a meaningful concern for investors,” Kravetz said. The heightened geopolitical risk sent oil prices higher Friday. Benchmark US crude climbed $1.87, or 3.1%, to settle at $63.05 per barrel. It had been up 3.6% earlier in the day. Brent crude, used to price international oils, rose $2.35, or 3.5%, to close at $68.60 per barrel. Energy companies made gains over concerns that a US-Iran conflict could disrupt global supplies and send oil prices even higher. Occidental Petroleum rose 2.4% and Hess gained 3.1%. The surge in oil helped pull down airline stocks and drove up shares in defense contractors. American Airlines Group dropped 5%, United Airlines Holdings slid 2.1% and Delta Air Lines lost 1.7%. Meanwhile, Northrop Grumman climbed 5.4%, Raytheon rose 1.5% and Lockheed Martin gained 3.6%. The price of gold, which investors buy in times of uncertainty as a safe haven

of value, rose $24.70, or 1.6%, to $1,549.20 per ounce. Bond prices rose. The yield on the ten-year Treasury fell to 1.79% from 1.88% late on Thursday, a big move. Lower bond yields bring down the interest rates that banks charge for mortgages and other consumer loans, making them less profitable. That prompted a sell-off in bank shares. JPMorgan slid 1.3%, Bank of America dropped 2.1% and Citigroup lost 1.9%. Investors bid up Lamb Weston after the frozen foods supplier’s fiscal second-quarter earnings and revenue beat Wall Street analysts’ forecasts. The stock was the biggest gainer in the S&P 500, vaulting 11.3%. Tesla climbed 3% after the electric vehicle maker reported a 50% rise in deliveries for 2019. In other commodities

trading, wholesale gasoline rose five cents to $1.75 per gallon. Heating oil climbed four cents to $2.06 per gallon. Natural gas rose one cent to $2.13 per 1,000 cubic feet. Silver rose ten cents to $18.07 per ounce and copper fell three cents to $2.80 per pound. The dollar fell to 108.01 Japanese yen from 108.55 yen on Thursday. The euro was unchanged at $1.1166. The heightened geopolitical tensions and surging oil prices also weighed on

global markets Friday. In Europe, Germany’s DAX tumbled 1.2%, while Italy’s FTSE MIB dropped 0.6%. Both countries are net oil importers with big manufacturing sectors. France’s CAC 40 ended flat, while London’s FTSE gained 0.2%. Markets in Asia ended mixed. Hong Kong’s Hang Seng lost 0.3%, while India’s Sensex lost 0.5%. Australia’s S&P-ASX 200 gained 0.6%. Japanese markets were closed.

LEGAL NOTICE

N O T I C E LIQUIDATOR’S STATEMENT BF Company Limited, Liquidator of USIF, Real Estate (the “Fund”) hereby certifies that the liquidation of the Fund has been completed. Dated the 2nd day of January, 2020.

To advertise in The Tribune, contact 502-2394

BF Company Limited Liquidator

LEGAL NOTICE

INTERNATIONAL BUSINESS COMPANIES ACT (No. 45 of 2000) MONASCRON INCORPORATED In Voluntary liquidation “Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act (No. 45 of 2000). MONASCRON INCORPORATED, is in Dissolution.”

The date of commencement of dissolution is the 20th day of December, 2019.

Victor Marcos Meerovich Cohrs, Liquidator

FINAL NOTICE Pursuant to the provisions of section 138 (8) of the International Business Companies Act 2000, notice is hereby given that:-

HAMBROS4 INTL INVESTMENT FUND LTD has been dissolved and struck off the Register pursuant to Certificate of Dissolution issued by the Registrar General on 10th day of December, 2019.

NOTICE INTERNATIONAL BUSINESS COMPANIES ACT, 2000 TGE TOTAL RETURN FUND LTD. (In Voluntary Liquidation) NOTICE IS HEREBY GIVEN that in accordance with Section 138 (4) of the International Business Companies Act, 2000, as amended, TGE TOTAL RETURN FUND LTD. is in dissolution. The dissolution of the said Company had commenced on the 23rd of December 2019 when Articles of Dissolution were submitted to and registered by the Registrar General. The Liquidator of the said Company is Ricardo Discher Barreto, whose address is Luis A De Herrera 1248, Torre I Piso 10, Montevideo 11300, Uruguay.

Kim D. Thompson Liquidator

LEGAL NOTICE

N O T I C E

EXXONMOBIL EXPLORATION AND PRODUCTION SPAIN (OFFSHORE) LIMITED

EXXONMOBIL EXPLORATION AND PRODUCTION PORTUGAL (ATLANTIC) LIMITED

Pursuant to the provisions of Section 138 (8) of the International Business Companies Act 2000, notice is hereby given that the above-named Company has been dissolved and struck off the Register pursuant to a Certificate of Dissolution issued by The Registrar General on the 6th day of December, 2019.

Dated the 6th day of January, A.D., 2020.

Matteo Pedercini Liquidator of EXXONMOBIL EXPLORATION AND PRODUCTION SPAIN (OFFSHORE) LIMITED

Matteo Pedercini Liquidator of EXXONMOBIL EXPLORATION AND PRODUCTION PORTUGAL (ATLANTIC) LIMITED

PAGE 8, Monday, January 6, 2020

THE TRIBUNE

CAN MAKE A DIFFERENCE IN THE LIVES OF THE CHILDREN AT RANFURLY

he Ranfurly Homes for Children has been a safe haven for thousands of Bahamian children since 1956. The Home provides a safe, structured environment for children who have been orphaned, abused, neglected or abandoned. YOU can make a difference in the lives of the children at Ranfurly. With your support children can have nutritious food, warm beds and a safe environment where they can discover the joy of being children. For years the children living and learning at Ranfurly have made great social and academic strides. Their further development requires additional support in the form of a Transitional Home, planned for construction on the Ranfurly property. This residence will cater to teenagers and young adults who are beyond school age, but need accommodation while they find work and gain independence from the Home. We look forward to your continued support in this worthwhile endeavour.

MEMBERSHIP PACKAGES Individuals, Families & Corporate Sponsors Children Helping Children - $5 (Individual children from ages 6 - 18) Individuals Helping Children - $50 (Individual adults 18 years and over) Families Helping Children - $100

CIRCLE of FRIENDS Silver: $1,500 - $2,499 Gold: $2,500 - $4,999 Platinum: $5,000 plus

OPPORTUNITIES • • • •

Invitations to Ranfurly events Assist with fundraising events Involvement with special activities Adults are eligible to join the Board after three months • Stay in touch with Ranfurly through website and newsletters

BENEFITS

• Personal fulfillment in knowing you are impacting lives • Ranfurly children’s appreciation and positive response • Continued support provides stability and constant care

For more information visit: www.ranfurlyhome.org Please “Like” us on Facebook Ranfurly Home for Children, Mackey Street P.O. Box 1413 Nassau, Bahamas 242-393-3115

SUPPORT THE BLOOD BANK

SAVE A LIFE GIVE THE GIFT OF

BLOOD

BECOME A REGULAR DONOR

1 PINT CAN SAVE 3 LIVES GIVE BLOOD - GIVE LIFE

SOME HELPFUL TIPS BEFORE YOU DONATE:

4 You must have eaten at least once for the day.

4 You need at least 30 minutes between your last meal and donating blood. 4 You will need at least 10 minutes rest after donating blood. 4 You can donate blood every 8 weeks.

4 The Blood Bank will do FREE Pre-screening tests to make sure you are healthy enough to donate blood.

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PLEASE ENCOURAGE YOUR COLLEAGUES TO SUPPORT THE BLOOD DRIVES