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WEDNESDAY, JANUARY 8, 2020
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Central Bank’s Abaco’s ‘total eclipse’ ‘game changer’ on 10,000 home jobs over settlement By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
AN ex-Bahamian Contractors Association (BCA) president yesterday predicted a rebuilt Abaco will “totally eclipse” its pre-Dorian look with up to 10,000 jobs created by the government’s 400 homes plan alone. Leonard Sands told Tribune Business he was “extremely confident” that the island hardest hit by the category five storm will be “redefined for the better” during its reconstruction, adding that the Minnis administration was “moving aggressively” to develop two 200-lot subdivisions better able to withstand natural disasters and the effects of climate change. He added that these developments, to be located
• Ex-BCA chief hails govt’s 400 house plans • Says effort will be ‘aggressive’ starting Q1 • Dorian rebuild will ‘redefine island for better’
LEONARD SANDS near Marsh Harbour and Wilson City, will signal to skilled Abaco construction labour that fled the island in Dorian’s wake that now is the time to return and move the rebuilding effort into high gear.
The former BCA chief said the total workforce required to construct these two subdivisions in accordance with the government’s plans would number between 7,500 to 10,000, with work likely to take place against an “aggressive timeline” due to the need to “get heads in beds before December 2020” after Dorian damaged virtually all buildings in central Abaco. While the demand for construction services around Marsh Harbour has been “marginal” todate, Mr Sands said wealthy second home owners in the Abaco Cays have begun to “mobilise” Nassau-based
contractors to price - and begin work on - the restoration of their properties. He argued, though, that the government’s subdivision development plans would be the trigger that “breaks open” reconstruction efforts on the Abaco mainland. The Minnis administration is seeking $21m in private sector investment, split equally between the two projects at $10.5m, to develop their infrastructure, along with a private-public partnership (PPP) for construction of the homes. Mr Sands said he had been informed on “good
SEE PAGE 4
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
PAYMENT services providers yesterday hailed the move allowing them to establish settlement accounts with the Central Bank as “a game changer” for the sector and the digital Bahamian dollar roll-out. Harvey Morris, Omni Financial Services’ chief executive, told Tribune Business that the Central Bank’s decision would not only benefit payment services providers and money transmission businesses but also efforts to drive greater “inclusion” and access to financial services products for all Bahamians. He explained that the move would give his company and its competitors “easy access” to buy and sell the digital Bahamian dollar, known as Sand Dollars, thereby ensuring these
can be smoothly provided to clients. “It’s really a game changer,” Mr Morris said. “This stands to benefit financial inclusion for everybody. Yes, we will still maintain a very close relationship with the commercial banks because a lot of our business is still the acceptance of fiat (physical notes and coins). Where will we place fiat if not with the commercial banks? “The clearing account with the Central Bank is, we think, advantageous to payment services providers because it gives us easy access to purchase and trade, and get Sand Dollars, without going through a third party. “We see that the payment services providers and money transmission businesses are the
SEE PAGE 7
Fresh doubts on shell role ‘Chicken and egg’: GB Power eyes 50% cost drop for east • $8m price tag to restore power line in new power plant deal By YOURI KEMP AND NEIL HARTNELL Tribune Business Reporters
By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A CABINET minister yesterday raised fresh doubts over whether Shell North America will be involved in financing, constructing and owning New Providence’s proposed multi-fuel power plant. Desmond Bannister, minister of works, told reporters outside the Cabinet Office yesterday that Bahamas Power & Light (BPL) will “aggressively” seek to create an opportunity for Bahamian ownership in the energy sector once its upcoming $650m bond refinancing is placed. He implied that this would start with the new plant at Clifton Pier that Shell is supposed to develop, having been selected as the preferred bidder for the project by the government and subsequently signing a Memorandum of Understanding (MoU) for it in December 2018. “I don’t know that we are going to have a Shell power plant,” Mr Bannister said. “You know, in the FNM’s manifesto we spoke about creating an entity that Bahamians can invest in. Now that we are able to have this bond in place, BPL is aggressively looking to create opportunities that Bahamians are going to be able to benefit from and invest in. “So you may see some time this year there may be a wonderful opportunity for all of you, and for other Bahamians, to have a stake in a power plant in this country, as Shell and other entities may also have an opportunity. “These are things that BPL are going to be able to announce in good time. So we anticipate, as we indicated to the Bahamian people, once we have completed that plant it is going to be managed by Wärtsilä, and we are now beginning to have reliable power to the country. So as we go into this plant that is going to be built, we anticipate that it is going to be a wonderful opportunity for everybody to invest in reliable power. So that is something that is very, very good that is coming online.”
DESMOND BANNISTER The minister’s comments raise questions as to the ownership structure for the proposed new power plant and, indeed, whether Shell will be involved at all. The facility is seen as critical to resolving New Providence’s long-standing generation woes, providing cheaper, more reliable energy that is more environmentallyfriendly. The 222 megawatt (MW) plant was to be accompanied by marine infrastructure that can received liquefied natural gas (LNG), involving a gas pipeline to bring gas to shore and an onshore regasification terminal that would supply the fuel to the power plant. Shell would thus act as an independent power producer (IPP), selling electricity to BPL via a power purchase agreement (PPA) over a 20-25 year period. Yet the first 132 MW for the new plant has recently been installed by Wartsila, and the government recently announced that $70m of the bond proceeds will be used to finance the remaining 90 MW installation. This sparked the first questions, with Mr Bannister telling Tribune Business in late November that the deal for Shell’s new power plant “is very much live” despite BPL seemingly making a $70m investment on its behalf. “The Shell deal is very much live,” he said. “I want to make sure no matter what, in any circumstances ,BPL is prepared to move ahead. I don’t want to say anything more than that.” Tribune Business and others had queried why there was little to no mention of the much-touted Shell multi-fuel power plant in his House of Assembly presentation on BPL’s $650m bond refinancing.
SEE PAGE 2
ELECTRICITY supply restoration to east Grand Bahama was yesterday branded “a chicken and egg situation” as the island’s utility eyes potential solutions that will slash its costs by 50 percent. K Peter Turnquest, pictured, deputy prime minster and the area’s MP, told reporters that the provision of energy to the Dorian-ravaged area was in a “holding pattern” with discussions ongoing between the government and Grand Bahama Power Company (GBPC) over the best way forward. He did, though, express optimism that a temporary solution will be achieved “relatively soon”. “We are in discussions with the Grand Bahama Power Company about exactly how and when we might be able to restore power to the east end of the island,” Mr Turnquest said. “There is a bit of a
• But renewable microgrid at $3.75m • DPM: Discussions ‘in holding pattern’
chicken and the egg situation, where the Power Company is waiting for population density and the people are waiting for the power in order to begin the construction and the reconstruction. “So we are in a bit of a holding pattern at the moment. However, the power company has committed to provide some temporary solutions. Hopefully very shortly we will see some temporary generators that will be spotted in these communities to power the individual communities, rather than running the main transmission line from the main power plant in Freeport, which is very costly. “So that is the intended temporary solution, and hopefully we will be able to get that done relatively
soon. I don’t have a timeline unfortunately.” A report produced for the Inter-American Development Bank (IDB) by the Washington DCbased consultancy, ERM, reveals that GB Power has “no intention” of investing $8m to rebuild the transmission line that previously ran from Freeport to East End because it will never get a return on its investment. The area’s population and electricity consumer numbers, which were relatively thin prior to Dorian, have been thinned out even more by the category five storm’s devastation. The report, which has been obtained by Tribune Business, reveals that the utility is waiting to determine how many persons return to the area - and where they settle - before deploying renewable energy microgrid solutions. Dave McGregor, GB Power’s chief executive, has
previously confirmed that the island’s utility monopoly is looking at such installations, which the IDB report estimated would cost $3.75m and be 50 percent less than the price tag to rebuild the former transmission line. “The 33kV (kilovolt) transmission line from Freeport to East Grand Bahama that runs for approximately 40km (kilometres) to a substation, which then steps to lower distribution voltage, is completely destroyed along with associated distribution lines,” the report for the IDB confirmed. “The privately-owned Grand Bahama Power Company has no intention to rebuild it given that the estimated cost is $8m. It is still uncertain how many consumers will eventually return and rebuild their houses or other assets, nor
SEE PAGE 4
RoyalFidelity’s ‘major step’ over caribbean expansion By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A BAHAMIAN investment bank yesterday said it had taken “a major step towards” realising its Caribbean expansion ambitions by finally closing the purchase of a $150m Cayman-based pension portfolio. Michael Anderson, pictured, RoyalFidelity Merchant Bank & Trust’s president, told Tribune Business that its “year of dealing with regulators” in multiple jurisdictions had ended on January 3 when final approval was received for the acquisition of its former affiliate’s pension administration business. Besides completing the final deal linked to the investment bank’s buy-out from its former Fidelity parent group, Mr Anderson said the latest acquisition gives it the springboard for further growth in the Cayman Islands and expansion into other Caribbean territories as it seeks to become “a regional player”. He revealed that apart
• Completes $150m Cayman pension acquisition • Gains 20% market share and growth platform • Regional ambitions ‘deferred’ under RBC
from RoyalFidelity obtaining an instant 20 percent pension administration market share in the Cayman Islands, the deal also provides the platform for the investment bank to sell its other investment banking and wealth management products - such as investment funds, trusts and brokerage services - into that lucrative market. The Bahamas-headquartered investment bank has already begun applying for the necessary regulatory approvals to do this, its president revealing
that he expected to receive the necessary authorisations over the next three to six months as its assets under management head towards the $1bn mark. Mr Anderson also explained that, together with The Bahamas and Barbados, the acquisition gives RoyalFidelity a presence in three territories from where it will seek to exploit the “huge opportunity” to push into other Caribbean markets and fulfill growth plans that had to be “deferred” under its previous ownership structure. “We managed to close the purchase of the Cayman business on January 3,” he told Tribune Business. “It’s part of RoyalFidelity’s regional expansion plans for its pension administration business and becoming a Caribbean player. Closing the Cayman transaction is a major step towards that.
“Fidelity is close to about 20 percent market share in the pension business in Cayman. It’s a nice business to start our presence in Cayman with. We finally managed to get regulatory approval and get all the transactions sorted out after a year of dealing with regulators. It’s a big relief to get them all closed, and all the businesses up and running and ready to do business.” RoyalFidelity acquired the pension administration business from its former affiliate, Fidelity Bank (Cayman), as one of a series of transactions that centred on its management-led buyout from its former parent group and Royal Bank of Canada (RBC). The latter deal closed last year, with RBC and Fidelity Bank (Bahamas) selling their respective 50 percent stakes
SEE PAGE 4
PAGE 2, Wednesday, January 8, 2020
THE TRIBUNE
BAIC URGES ARTISANS TO EXPLOIT PLASTIC BAG BAN THE Bahamas Agricultural and Industrial Corporation (BAIC) says straw artisans can exploit the ban on single-use plastic bags to increase their own sales by creating alternatives. Debbie Strachan, BAIC’s acting general manager, said it will when promote the ban when its Farmers Market series resumes on January 18 in partnership with the Ministry of Environment and Housing. “As the talk began on the initiative last year to ban plastic, we had a mega Farmers Market where we were able to introduce reusable bags to our patrons and we gave away hundreds of bags on that particular Saturday,” Ms Strachan said.
BAIC’s Acting General Manager Ms. Debbie Strachan, left, is pictured along with Bahamian Artisans Keisha Pratt and Agatha Mackey.
BUSINESS OUTLOOK GIVES SUMMIT SPEAKER LINE-UP THE upcoming Bahamas Business Outlook conference will focus on how multiple post-Hurricane Dorian challenges can be converted into quality rebuilding, modernisation and growth opportunities. ssembling some heavy hitters to explore the theme of this year’s Bahamas Business Outlook (BBO) will take direct aim at a range of post-Dorian challenges in The Bahamas. Presenters who are leaders and pioneers in their fields will direct attention on how the storm’s impacts can be turned into opportunities for quality rebuilding, modernization and growth economically and socially. The Prime Minister will lead a speaker line-up that will explore the conference theme of A new era: Resilience in the face of vulnerability. Other speakers include Laurie Peters, Canada’s High Commissioner to The Bahamas, who will tackle the topic of Climate change and resilience: Environmental resilience and disaster preparedness. John Rolle, the Central
Bank of The Bahamas governor, will speak on A resilient financial sector disaster recovery strategy for The Bahamas, while Franklyn Butler, Cable Bahamas chief executive, will address A new era: Resilience in the face of vulnerability. The Chamber of Commerce’s chairman, Khrystle Rutherford-Ferguson, will give a Chamber “update”, while Frank Comito, chief executive and director for the Caribbean Hotel & Tourism Association (CHTA) will speak on the Global and regional outlook for tourism, and insights on industry response and performance post-disaster. A panel discussion on How is Artificial Intelligence (AI) disrupting industry? will feature Dr Charles Diggiss, president and chief medical officer, Doctors Hospital; Crachad Laing, head of faculty, math and sciences, Windsor School; and Arthur E Frisch, co-founder, Fli Drone, and founder of Efficient Ventures LLC.
Completing the speaker line-up will be Craig Walkine, owner/operator of Outdoor Fitness Bahamas, and Dr Donovan Moxey, BPL’s chairman, who will speak on Moving forward: How bond funds take BPL to an energy efficient power future. Dr Jonathan A Rodgers will speak on What’s ahead: Economic prognosis for The Bahamas; while the Caribbean Development Bank’s Lisa Harding is primed to speak on the Orange Economy. Michael Cunningham, the Government-sponsored venture capital fund’s chairman, and Chloe Burke, Airbnb’s public policy associate for the Caribbean and Central America, roundout the speaker line-up. Joan Albury, the TCL Group’s president, and chief organiser of the Business Outlook series, said: “I believe firmly that every dark cloud has a silver lining. Undoubtedly, Hurricane Dorian inflicted unimaginable damage on Grand Bahama and Abaco and, consequently, on the
entire Bahamas, because our communities are all interdependent. “However, there is hope - the storm has presented great opportunity for sharpening our resilience, and for muchneeded modernisation and progress. In designing the Bahamas Business Outlook 2020 programme we have formulated topics that cover the key elements of the social and economic spectrum, particularly resilience and modernisation as it relates to finance, tourism, transportation, logistics, health and fitness, education, artificial intelligence, energy, entrepreneurship and the inescapable reality of climate change. The forum on January 16th is one that no one who cares about the future of our country can ignore.” The Bahamas Business Outlook is scheduled to take place on January 16 at Baha Mar. To register, visit www.tclevents.com or contact Margaret Albury: malbury@tclbahamas.com or 242.322.1000.
She added that BAIC has been selling straw tote-shopping bags at the Farmers Market, and many patrons used that opportunity to prepare for the plastic ban. Ms Strachan said BAIC saw this as a way to help Bahamian artisans increase their sales through replacing single-use plastic bags with handcrafted straw tote bags Two artisans working to fill orders for straw shopping bags are Agatha Mackey and Keisha Pratt. Ms Mackey said persons involved in plaiting straw will benefit tremendously, and added: “I think it is going to be an exciting time going forward because it is another earning capacity for artisans, and it will
take the straw industry to another level because there will be a demand for the bags.” Ms Pratt said: “I have already had orders come in for extra large bags with style, colours and class.... We are going to implement it step by step. We are going to get it done and it’s going to be good.” The Environmental Protection (Control of Plastic Pollution) Act 2019 came into effect on January 1. The Act mandates that companies have until June 30, 2020, to run down their inventories of the banned products on the condition that the single-use plastic bags are sold to customers for a fee between 25 cents to $1.
Fresh doubts on shell role in new power plant deal
that they go through is a ‘ratings stage’. They (BPL’s board members, along with members of the Special Purpose Vehicle placing the bond) have been in the US and they have met with all of the ratings companies. “Then they have a quiet period. During that quiet period the ratings companies are making decisions about the kinds of ratings they are going to give BPL. From everything I have heard BPL is going to get top ratings, almost like a sovereign rating that a country can get. That means that the interest rates are going to be very, very low. “Once that happens, and we look at the kind of interest rates that we would be able to get for BPL, then there is going to be opportunity for Bahamians, and I want everybody to appreciate that. There is going to be opportunity for Bahamians to invest in your utility for the future,” Mr Bannister added. “If you look at utility stocks and how they operate, they are not going to go down, so there is going to be wonderful opportunity in this country for Bahamians to take some of their funds, invest in that utility and invest in the future of power generation in this country.”
FROM PAGE ONE The minister’s presentation showed that $70m of the $650m to be raised through the bond has been earmarked for the Phase II expansion of Clifton Pier’s “Station A” with the purchase of more generation engines from Wartsila. This 90 MW of additional capacity, when combined with the existing 132 MW, will provide 222 MW in new generation - exactly what Shell North America is supposed to provide with its new-multi fuel power plant. One well-placed source, speaking on condition of anonymity, told Tribune Business: “I don’t understand why they’re [BPL] funding this when Shell is supposed to be doing it. And how can you give Wartsila a contract for that amount of money when it has not gone out to tender.” Meanwhile, Mr Bannister yesterday said of the $650m bond: “The bond is a placement process. The first stage
THE TRIBUNE
Wednesday, January 8, 2020, PAGE 3
By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Bahamas is in “the blind” over France’s decision to “blacklist” its financial services industry, the deputy prime minister said yesterday, with Paris yet to justify why it took such punitive action. K Peter Turnquest said: “I saw a listing today where they have done the official listing. So we are continuing our investigations with them. Actually, we are waiting for a response from them to our specific inquiries about the criteria and the issues they have identified as the reasons for this listing. Once we have that information we will certainly address it. “As of now we are somewhat in the blind with respect to their reasoning and the justification for this listing. As I have said before, we have enjoyed a very good relationship with
Bahamas still ‘in the blind’ over France’s blacklisting K PETER TURNQUEST the OECD (Organisation for Economic Co-Operation and Development (OECD) and the Global Tax Forum, the EU, and we have made significant strides in terms of meeting all of the commitments that
have been put before us - even those that we would not have been comfortable with and have been very difficult for us to meet. “So this [the French action] is certainly an outlier. We don’t know exactly what it’s about, because the issues they have identified we were not aware of them. We have searched all of our data and we have not been able to see where there has been any request or issues outlined to us that we have not addressed.” Several financial industry contacts have suggested it is ironic that France should “blacklist” The Bahamas now given that
GB TO ‘SURPRISE SOME’ WITH ECONOMIC ACTIVITY By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE deputy prime minster yesterday voiced optimism that Grand Bahama will enjoy “quite significant” economic activity during 2020 despite its ongoing recovery from Hurricane Dorian’s challenges. K Peter Turnquest, who is also the east Grand Bahama MP, talked up the island’s short and medium-term prospects by telling reporters: “Despite it all we are still very confident that we’re going to have some positive developments in Grand Bahama. “As you know the [Carnival] cruise port is still on track. The sale of the Grand Lucayan, while delayed, is moving forward closer and closer towards conclusion. The airport is open again, not to the standard that we’re used to and what we need, but at least we are able to accept international flights now.” He added: “Surprisingly to some, the residents in east Grand Bahama, the businesses in east Grand Bahama, are opening and are interested, in fact eager, to reopen and to expand. Again, power being one of the limiting factors in that. “So I think overall, when you look at the businesses reopening as well as the tremendous amount of construction work that is going to be required to restore these homes and communities, I think overall the economic activity we are going to see over the course of this year is going to be
quite significant and it may surprise some.” Mr Turnquest acknowledged that the Government’s year-end target for selling the Grand Lucayan to the ITM Group/Royal Caribbean joint venture had not been met, and said: “Again, it is moving forward. I don’t know the specific timeframe at the moment. But I know that the major issues are resolved, and so it’s just a matter now of tidying it all up and getting it done.” He declined to give a revised timeline. The Royal Caribbean/ ITM project, which involves the creation of some 2,000 jobs via a $195m first phase investment that includes the $65m resort purchase price, is among the projects the government is banking on to revive the Bahamian economy post-Dorian and return it to 2.1 percent growth by 2021. The development was branded “a game changer” for Freeport’s economy when revealed by this newspaper earlier this year, as it promises a revival of the tourism industry that could - together with Carnival’s $100m cruise port - help drag the city out of a 15-year slump. “The project is poised to act as an economic stimulus to Grand Bahama, bringing approximately two million passengers annually to make use of the associated facilities which will include a five-star hotel property, water-based family entertainment, as well as dining, gaming and other entertainment options,” the
LIQUIDATOR’S NOTICE PURSUANT TO SECTION 138 (6) OF THE INTERNATIONAL BUSINESS COMPANIES ACT
We, Sterling (Bahamas) Limited, Liquidator of CALL HOLDINGS LTD., hereby certify that the winding up and dissolution of CALL HOLDINGS LTD., has been completed in accordance with the Articles of Dissolution. Dated the 7th day of December 2020
Sterling (Bahamas) Limited Liquidator
government’s just-released Fiscal Strategy Report said. “The additional cruise passengers will also present an opportunity for local vendors, taxi drivers, arts and crafts artisans and other souvenir businesses to benefit from increased sales. Negotiations to finalise this sale are expected to be completed by end-2019.” The government is also likely to be extremely eager to exit the resort ownership business, and get the Grand Lucayan off its books, given the $43m that it pumped into the hotel to cover its operating losses and other costs during the 2018-2019 fiscal year. Selling it will also reduce its contingent liabilities by some $35m. While the $65m purchase price may not recover the government’s entire Grand Lucayan outlay upfront, it will be hoping that the increased economic activity and extra employment created by the Royal Caribbean/ITM project will more than offset this on the back end. Mr Turnquest, meanwhile, said of Grand Bahama International Airport’s status: “The airport is operating, and they have reopened for evening flights, which is wonderful thing for us because that was a very limiting factor. “We are receiving flights from Sunwing out of Canada, Silver Airlines out of Florida and Bahamasair. So things are staring to come back. We still don’t have an American Airlines yet, but we anticipate they will come along soon.”
all its financial institutions, such as BNP Paribas, have exited this jurisdiction following the legal and regulatory pressures Paris imposed at home to drive them out. However, the French move is the latest example of individual European nations placing The Bahamas on their national “blacklists” despite being members of groups, such as the EU and OECD, which have rated this nation compliant with the regulatory reforms they have demanded of it. The Netherlands, for example, placed The Bahamas on its own “blacklist”
earlier this year, while France also blacklisted Anguilla, the British Virgin Islands and Seychelles along with this nation in its latest action. Mr Turnquest said yesterday: “We wait to hear what they [France] have to say in terms of specifics as to what their issues are. It is very disappointing because we are working very hard to be transparent and cooperative partners in the global community.” The deputy prime minister had previously expressed his “total disgust” over how The Bahamas had been blindsided by the French move.
The Emmanuel Macron government justified its actions on the basis that this nation, and the other three named, have taken too long to respond to requests for legal assistance and tax information, while the responses themselves are inadequate in terms of the information provided. Gerald Darmanin, France’s minister of public action and accounts, said: “France’s list will be harder than that of the EU.” He added that The Bahamas and the other jurisdictions “are not cooperative enough in terms of financial transparency”.
Baha Mar attracted 2m visitors in 2019
By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net
BAHA Mar yesterday said it rounded off a year in which it attracted more than two million visitors with 100 percent occupancy during the Christmas season. The Cable Beach mega resort, in a statement to Tribune Business, said: “2019 proved to be a momentous year of grand successes and major accomplishments for Baha Mar, as the resort destination ended the year with a 100 percent occupancy across all three hotel brands during the 2019-2020 festive season. “Over the last 12 months, Baha Mar has welcomed over two million guests and redefined the Caribbean vacation experience for contemporary travellers, while introducing new dining concepts with southern Californian coastal cuisine themed 25N, the Italian-style and family friendly Pizza Lab, and the ‘Malam’, Indian Cellar and Grill.” Baha Mar, while acknowledging that its visitor booking pace had slowed due to the public relations fall-out from Hurricane Dorian, added: “The decrease in visitor numbers proved to be temporary, and the booking pace has
returned to our projected path. “Baha Mar collaborated to secure additional airlift into Nassau in conjunction with the Nassau/ Paradise Island Promotion Board and the Ministry of Tourism, and launched a global marketing campaign, Life Spectacular, with a $50m investment for 2018-2019. “The combined efforts resulted in over 8bn PR impressions in 2019, more than 24m website visits, and
unprecedented social media growth to a total social media audience for Baha Mar of over one million followers.”
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THE INTERNATIONAL BUSINESS COMPANIES (WINDING UP AMENDMENT) ACT, 2011 AND THE COMPANIES ACT, CH. 308 NOTICE OF VOLUNTARY WINDING UP CALLEDON LIMITED (In Voluntary Liquidation) Registration No. 84165B TAKE NOTICE that the above-named Company was put into liquidation on 27th December, 2019 by a resolution passed at a meeting of the Company held on 27th December, 2019. AND FURTHER TAKE NOTICE THAT Maria Ferere of FT Consultants Ltd of Goodman’s Bay Corporate Centre, West Bay Street, P. O. Box N3932, Nassau, Bahamas, Phone: (242) 328-7131, E-mail address: mferere@ftconsultants.net, has been appointed Liquidator of the Company. FURTHER NOTICE is hereby given that the Creditors of the above-named Company are required, on or before the 22nd day of January, 2020 to send their names and addresses, with particulars of their debts or claims, to the Liquidator of the Company. AND FURTHER TAKE NOTICE that a Final General Meeting of the members of the Company will be held on the 29th day of January, 2020 at 10:30am at the offices of FT Consultants Ltd, Goodman’s Bay Corporate Centre, West Bay Street, Nassau, Bahamas for the purpose of having an account laid before them, showing the manner in which the winding up has been conducted, and the property of the Company disposed of, and hearing any explanation that may be given by the Liquidator, and also of determining by Resolution the manner in which the books, accounts and documents of the Company, and of the Liquidator shall be disposed of. Dated this 8th day of January, A.D., 2020 Maria M. Férère Liquidator
PAGE 4, Wednesday, January 8, 2020
THE TRIBUNE
RoyalFidelity’s ‘major step’ Abaco’s ‘total eclipse’ on 10,000 home jobs over caribbean expansion FROM PAGE ONE
FROM PAGE ONE in RoyalFidelity to current ownership. Mr Anderson said the investment bank is now able to focus solely on its growth ambitions with these transactions behind it, with the first objective involving the expansion of its Cayman offerings on the back of an acquisition that adds $150m in assets under management. Disclosing that RoyalFidelity planned to expand its Cayman-based staff by between ten to 15 persons over the next two years, he told Tribune Business: “Now we’re focusing on getting involved in running the pension business down in Cayman, but also pushing out the other products and services RoyalFidelity offers in The Bahamas and Barbados into the Cayman market. “We’ve begun applying for licences to provide all the services we do in this market. Over the next three to six months we expect to obtain the necessary licences in Cayman to allow us to broaden our product and services offering similar to what we offer in this market.” Already looking beyond RoyalFidelity’s latest territory, Mr Anderson continued: “I think the Cayman presence allows is a greater opportunity for expansion into islands like Turks & Caicos and Jamaica, together with our expansion initiative from Barbados into the region. “The plan is a regional development strategy through these three offices. We hope to be able to create regional distribution for our products and services.” The RoyalFidelity chief acknowledged that “it’s not been that common” for Bahamian-originating businesses to seek expansion beyond this nation, but said his background lay with companies that had sought a regional approach. He revealed that the investment bank had been planning a Caribbean
expansion under its former owners, but was forced to place it on hold after RBC acquired Royal Bank of Trinidad & Tobago (RBTT). This meant its ambitions would have completed with RBC’s own strategy, the potential conflict negating any move forward. “The expansion opportunities had always been there,” Mr Anderson revealed. “We worked with RBC to create a regional bank and wealth manager. After the RBTT deal we were unable to expand into a number of areas we had hoped to, and had to defer the expansion. “Now, with the exit from the joint venture (Fidelity/ RBC ownership), we’re free to go and recommence the expansion plans. There’s lots of small markets, and the difficulty in the past has been trying to access them. For larger players it’s not been worthwhile to build scale. “For us, who have evolved in dealing with small markets, and with available technology making it easier to get access to small markets and service them, when we look at their combined populations there’s a huge opportunity if we’re able to provide a broader range of services to a lot more people,” he added. “But we’ve got to get it right. “We’ve been planning this for the last year, and are ready to move forward, so we are excited about the opportunity. I expect to see reasonably strong growth over the next two-three years because we have certain products and services suitable to these markets. Our plan is to become the premier investment bank and wealth manager in the region.” Mr Anderson had previously told Tribune Business that the Cayman pension portfolio’s acquisition would “more than double, maybe even triple” RoyalFidelity’s portfolio in terms of “pension lives” covered, adding 10,000 clients to the existing 4,000 it has presently.
authority” that groundbreaking for the two subdivisions will occur during the 2020 first quarter, with international aid organisations and humanitarian groups already lined-up to help with the necessary financing. “I can see a lot of redevelopment coming in to redefine how Abaco looks, and I believe this version will totally eclipse what was there,” he told Tribune Business. “I believe it’s absolutely for the better; it will be. I’m extremely confident that will become the reality; extremely confident. “Apart from the Cays it [reconstruction] has been marginal, but that’s not to say it’s not about to break open on the mainland. I believe the government is moving aggressively with the building of those 400 homes in the first quarter of this year. “In the first quarter it will break ground on those homes. I have that on a strong foundation and advice. They have to start moving right away. They have support from USAID (the US government’s international development agency) and two large humanitarian groups that have committed the funds to assist the government, and the work will begin in a matter of weeks to a month.” The government’s new Abaco subdivision plans were unveiled in reports released ahead of Monday’s donor “pledging” conference on Hurricane Dorian relief. The documents disclosed that it has identified two 60-acre parcels of elevated crown
land, located near Marsh Harbour and Wilson City, as potential sites for new subdivisions. Priced at $20,000 per acre, their collective worth is pegged at $2.4m. The government is now seeking private sector investment, valued at $21m or $10.5m per subdivision, to develop infrastructure for two 200lot subdivisions with plots sized at 75 feet by 100 feet. Roads, open space, community parks and renewable energy are to be incorporated. The third and final phase involves PPPs with private sector investors, developers and contractors to construct the 400 homes according to a government criteria that clearly indicates they are to be aimed at a middle class to lower class market. Besides excluding the value of the land and infrastructure costs from the purchase price paid by home buyers, the government is also insisting that construction standards meet a third edition of The Bahamas Building Code that is “reinforced with climate resilient standards”. Mr Sands said the “spinoff” from these projects for Bahamian contractors and skilled trades persons would be immense, as well as helping to encourage displaced Abaconians to return home safe in the knowledge that work is available. “If you’re going to build 400 homes you need a workforce of carpenters, electricians, masons and plumbers,” he told Tribune Business. “You have to build the roads, and there’s a need for heavy equipment companies, block layers and designers.
FROM PAGE ONE is there is information about future peak load in each town/settlement. “The proposed solution to re-establish electricity supply is by deploying several micro
grids in the area consisting of combinations of solar generation and battery storages.” The IDB said the “implementation cost of $3.75m will be funded” through a new energy sector loan facility it is making available to The Bahamas in Dorian’s
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ALL SHARE INDEX: CLOSE: 2,225.72 | CHG: 0.04 | %CHG: 0.00 | YTD: -5.88 | YTD%: -0.26 BISX LISTED & TRADED SECURITIES 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 13.50
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
SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ
1000.00 1000.00 1000.00 1000.00
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
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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 3.35 17.43 6.00 6.10 2.35 1.80 4.10 11.06 6.16 4.49 8.01 3.22 4.60 10.51 7.60 15.05 9.33 3.56 14.00
CLOSE 3.35 17.43 6.00 6.10 2.35 1.80 4.10 11.06 6.16 4.49 8.01 3.27 4.60 10.51 7.60 15.05 9.33 3.56 14.00
CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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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
100
4,600
VOLUME
EPS$ 0.239 0.932 1.760 0.369 0.070 0.000 -0.438 0.722 0.449 0.184 0.140 0.102 0.467 0.646 0.728 0.816 0.939 0.203 0.631
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
P/E 14.0 18.7 N/M 16.5 N/M N/M -9.4 15.3 13.7 24.4 57.2 32.1 9.9 16.3 10.4 18.4 9.9 17.5 22.2
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
YIELD 5.07% 7.23% 0.00% 4.26% 0.00% 1.11% 0.00% 6.51% 3.57% 2.67% 0.00% 13.27% 1.30% 3.12% 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
capability of wealthy second and third homeowners. “They have started a lot quicker. A lot of things are happening on the Abaco Cays. Those persons also have friends who are glad to assist because they come from Florida, New York to hang out at these homes and have a vested interest in getting these properties back up to scratch. They have no shortage of support. That is making a significant difference.” Stephen Wrinkle, another ex-BCA president, urged the government to work closely with the private sector as the only way to ensure a speedy reconstruction in Abaco. “I know they’re having a hard time getting off the blocks,” he told Tribune Business. “It’s not an easy task no matter what. They’ve put some people in charge up there, made it a government operation and I don’t know how well that will mesh with the private sector. “I think everybody will be surprised as to how long it takes to get things straight. People are getting over the initial shock, cleaning up and waiting for the insurance claim. It’s a long, hard road; it’s not an easy avenue. “I hope the government puts in an effort to work with the private sector. Traditionally that’s not been the case, and if they don’t it’s going to make it extremely difficult to rebuild in a timely fashion. It always seems that the government has an agenda, and that doesn’t necessarily reflect the agenda the private sector need or wants. It’s a wonderful opportunity for the government to join forces with the private sector, and I hope they see it that way.”
‘Chicken and egg’: GB Power eyes 50% cost drop for east
MARKET REPORT 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
“When you add up all the construction services needed to build 400 homes, you need a workforce of between 7,500 to 10,000. The timeline will be aggressive. We don’t have two years to build this thing. We need to get heads in beds before December 2020. I think the economy, because of that, will see significant strengthening in the Abacos. The sector will experience really strong investment.” Mr Sands, meanwhile, said he was aware that several fellow New Providence-based contractors have already been “mobilised” to respond to demands for project pricing and rebuilding in the Abaco Cays. While many home and business owners have been waiting on the settlement of insurance claims to determine how, when and whether they rebuild, the ex-BCA president said wealthy second home owners in Hope Town and places such as Man O’ War Cay did not need to wait for such capital injections. “We’re not talking about Marsh Harbour; we’re talking about those wonderful houses which are in the millions of dollars,” he explained. “There has been strong interest, strong pricing requests. I’ve had a number of colleagues mobilised for projects. “I know one of my friends and colleagues has been in New Providence this past week to solicit project managers, foremen and skilled labour to assist with the projects he has. There’s little movement outside of government in Marsh Harbour, but on the cays there are significant rebuilding efforts driven by the financial
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
30-Sep-2019 30-Sep-2019 30-Sep-2019
wake, part of which will be dedicated to the postDorian reconstruction. A further $200,000 “would be dedicated to feasibility studies for the micro grids”. Mr Turnquest yesterday appeared to soften his stance considerably in comparison to his December position, when he told GB Power to either quickly restore services to the entire island or hand over the responsibility to the government as he complained about having restless nights sleeping in his constituency. He said: “Ultimately we were looking towards making these communities solar powered, a self-sufficient, self-sustaining power grid. Again, the timeline on that we are not sure of at the moment. “But we are also looking at the possibility of finding some kind of funding mechanism where we are able to have individual solar solutions on individual roof-tops as stand alone units, which may be even more quicker in terms of being able to get them installed and getting people some kind of power to their properties.” Mr Turnquest added: “So all of these solutions are being worked on and discussed at the moment. Unfortunately I do not have the exact timeline for that at the moment. But we are working feverishly towards it as we are with respect to water, and trying to get the water company up and running to provide fresh potable water so people can do what they have to do.” Speaking directly to how
many residents are currently being impacted by having no electricity, Mr Turnquest said: “Roughly the whole area is about 1,500 or so, and if I were to hazard a guess as to how many residents are there now on a continuous basis it’s probably around 800. The entire community is without power; I mean the whole of east end including some parts of the Lucaya area.” He assured that residents are “eager” to get back into their homes and communities. “These essential services are critical and are urgent from the community’s point of view,” Mr Turnquest said. Gregory LaRoda, Grand Bahama Chamber of Commerce president, backed up the contents of the IDB report in an interview with Tribune Business that same month. He said: “The power company has made it clear that they are not going to spend all the money, because almost all of the poles are down between Free Town and the extreme east of the island, which is like a 20-mile stretch, and it is going to cost a substantial investment to put that back. “So, what the GBPC has asked the government to do - at least this is what the chief executive has told me - they have asked the government to give them an idea on which areas of the extreme east they are looking to focus on to repopulate people back in, and what they would do is look at alternative energy up there. They will look at maybe solar generation to supply power to those areas.”
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THE TRIBUNE
Central Bank’s ‘game changer’ over settlement
FROM PAGE ONE
right partners for launching Sand Dollar because, to-date, our business is generally around customers who are transacting fiat currency without using cards and bank accounts,” Mr Morris continued. “They are the primary targets for utilisation of the Sand Dollar. The [settlement] account giving us access to be able to purchase and sell, and provision Sand Dollars to our clientele, is a game changer for payment services providers and money transmission businesses. “The Sand Dollar must be all-inclusive to be successful. If somebody in The Bahamas is holding the traditional paper currency you don’t want to restrict that person from having an ability to convert into Sand Dollars otherwise you might
create a security risk for that sector of the community who have to continue holding fiat versus Sand Dollars.” The Central Bank, in its paper laying out the rationale for the Project Sand Dollar initiative, said planned changes to the Central Bank legislation would “level the playing field even further” for non-commercial bank institutions when it came to accessing The Bahamas’ clearing and settlement infrastructure. Besides being able to establish settlement accounts with the Central Bank, the likes of payment services providers and money transmission businesses will also be allowed to participate in the Automated Clearing House (ACH) and Real Time Gross Settlement (RTGS) systems - the two facilities that enable swift
Wednesday, January 8, 2020, PAGE 7 clearing of transactions between institutions - under the proposed reforms. “The bank has signalled that it will allow direct participation of non-clearing banks in the ACH and RTGS systems,” the Central Bank said. “Regulated credit unions, international banks, payment services providers and money transmission businesses would be permitted to establish settlement accounts directly with the Central Bank as opposed to having to negotiate settlement arrangements with commercial banks. “The Central Bank has also proposed that the government and the National Insurance Board would be allowed to join the ACH and RTGS, as the two largest single originators and recipients of payments. Both entities already maintain accounts with the Central Bank that can satisfy settlements. Opening of the ACH to broader participation will require regulations, and commercial bank initiated changes in the private ACH arrangements.” The Central Bank added that it was “now encouraging non-bank participation in the provision of electronic payments to spur innovation, competition and faster adoption of electronic solutions”.
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White House proposes guidelines for regulating the use of AI By MATT O’BRIEN Associated Press THE Trump administration is proposing new rules to guide future federal regulation of artificial intelligence used in medicine, transportation and other industries. But the vagueness of the principles announced by the White House is unlikely to satisfy AI watchdogs who have warned of a lack of accountability as computer systems are deployed to take on human roles in high-risk social settings, such as mortgage lending or job recruitment. The White House said that in deciding regulatory action, US agencies “must consider fairness, non-discrimination, openness, transparency, safety, and security”. But federal agencies must also avoid setting up restrictions that “needlessly hamper AI innovation and growth”, reads a memo being sent to US agency chiefs from Russell Vought, acting director of the Office of Management and Budget. “Agencies must avoid a precautionary approach that holds AI systems to such an impossibly high standard that society cannot enjoy their benefits,” the memo says. The rules won’t affect how federal agencies such as law enforcement use facial recognition and other forms of AI. They are specifically limited to how federal agencies devise new AI regulations for the private sector. There’s a 60-day public comment period before the rules take effect. “These principles are intentionally high-level,” said Lynne Parker, US deputy chief technology officer at the White House’s Office of Science and Technology Policy. “We purposely wanted to avoid top-down, one-size-fits-all, blanket regulations.” The White House said the proposals unveiled yesterday are meant to promote private sector applications of AI that are safe and fair, while also
A METAL head made of motor parts symbolises artificial intelligence, or AI, at the Essen Motor Show for tuning and motorsports in Essen, Germany. The Trump administration is proposing new rules guiding how the US government regulates the use of artificial intelligence in medicine, transportation and other industries. The White House unveiled the proposals yesterday and said they’re meant to promote private sector applications of AI that are safe and fair. pushing back against stricter regulations favored by some lawmakers and activists. Federal agencies such as the Food and Drug Administration and the Federal Aviation Administration will be bound to follow the new AI principles. That makes the rules “the first of their kind from any government,” Michael Kratsios, the US chief technology officer, said in a call with reporters Monday. Rapid advancements in AI technology have raised fresh concern as computers increasingly take on jobs such as diagnosing medical conditions, driving cars, recommending stock investments, judging credit risk and recognising individual faces in video footage. It’s often not clear how AI systems make their decisions, leading to questions of how far to trust them and when to keep humans in the loop. Terah Lyons of the nonprofit Partnership on AI, which advocates for responsible AI and has backing from major tech firms and philanthropies, said the White House principles won’t likely have sweeping or immediate effects. But she said she was encouraged that they detailed a US approach centered on values such as trustworthiness and fairness.
“The AI developer community may see that as a positive step in the right direction,” said Lyons, who previously worked for the White House science and technology office during the Obama administration. “It’s a little bit hard to see what the actual impact will be.” What’s missing, she added, are clear mechanisms for holding AI systems accountable. Another tech watchdog, New York University’s AI Now Institute, said it welcomed new boundaries on AI applications but it “will take time to assess how effective these principles are in practice”. Kratsios said he hopes the new principles can serve as a template for other democratic institutions such as the European Commission, which has put forward its own AI ethical guidelines, to preserve shared values without impeding the tech industry. That, he said, is “the best way to counter authoritarian uses of AI” by governments that aim to “track, surveil and imprison their own people”. The Trump administration has sought to penalise China over the past year over AI uses the US considers abusive.