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TUESDAY, FEBRUARY 25, 2020

$4.52 Funeral home chief hits back in Dorian row By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A FUNERAL home director has denied an industry association’s assertion that the government paid her business a near-six figure sum to collect the bodies of Dorian victims, branding this “misleading”. Denalee Penn-Mackey, chief executive of Evergreen Mortuary, in an e-mailed response to Tribune Business blasted the allegations made by the Bahamas Funeral Directors Association (BFDA) in a February 19, 2020, letter to the government. “To mislead the public into thinking that a removal fee of six figures was collected for the recovery of Dorian’s victims is not only untruthful, but is very deceptive,” she wrote. “In all fairness I recalled Dr Duane Sands inviting the association to come to Abaco to assist with the recovery, but they surprisingly never showed up. And, as printed in yesterday’s article, any indication of putting up $300,000 by the BFDA is simply laughable. “Had they spoken with Iram Lewis, the substantive minister for disaster preparedness, management and reconstruction, who has full responsibility and carriage of the process of seeing this whole mess cleaned, they would know the details.” The association’s letter, sent to John MichaelClarke, chairman of the Disaster Reconstruction Authority, said it was “shocked and very concerned” that the government appeared to have gone back on a “letter of commitment” it had allegedly promised to issue to it. It said the group “had multiple level communications” with the Disaster Reconstruction Authority and was “advised by its chairman” that they would be provided with a “letter of commitment” to proceed with providing services for the burial of victims of Hurricane Dorian. They “were invited to meet with representatives of the Disaster Reconstruction Authority in Marsh Harbour on February 17, 2020” to view the burial site and finalise plans. This trip went ahead, and the BFDA said they were advised that their services “would be accepted, and that we would be issued a letter of commitment on February 18, 2020”.

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Working age ‘plateau’ to hit growth, credit rating By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

OODY’S has warned that a working age population due to “plateau” by the mid-2020s will limit The Bahamas’ economic growth potential and “weigh” down its sovereign credit rating. The international credit rating agency, in its justreleased latest update on The Bahamas, said the government’s post-Dorian interest (debt servicing) burden at 15 percent of its total revenues will be more than double that of countries with the same “Baa3” credit rating. It added that the government’s deficit forecasts for the upcoming six fiscal years were similar to its own, with the Fiscal Responsibility Act’s target 0.5 percent deficit target as a percentage of gross domestic product (GDP) only achieved in 2024-2025. More intriguing, though, is Moody’s forecast that an increasingly elderly population will start to impose a growing burden on working age Bahamians to support them and help finance their

• Moody’s warns of mid-2020s ‘weigh’ down • Bahamas interest burden double its peers • Projects ‘flat’ economic expansion for 2020 retirement needs. “Social considerations, in particular demographic trends, affect The Bahamas,” the rating agency said. “Growth in the working age population has been slowing since the late-2000s, and the number of working-age people is likely to plateau by the mid-2020s. This will limit economic growth, weighing on The Bahamas’ credit profile.” Larry Gibson, vice-president of Colonial Pension Services (Bahamas), yesterday told Tribune Business he was “somewhat surprised” that Moody’s was predicting that working age population growth in The Bahamas was set to fall away as early as the mid-2020s. He acknowledged, though, that this will eventually become a “massive issue” for The Bahamas as it has in many European and developed countries. And the National Insurance Board (NIB) could already be experiencing some of the trends outlined by Moody’s.

Its contribution income has been exceeded for several years now by benefits payouts, which could be one sign of a growing elderly population. “I know NIB has crossed the threshold some time ago where payouts were greater than contributions and income,” Mr Gibson said. “But I’m kind or surprised because The Bahamas has always had a large population of young people. I don’t think we would be there yet. If that’s the case, I question some of our statistics. “I didn’t think it would have climbed so soon. At some point it will be a massive issue, but I’m kind of surprised that it’s happening now.” Moody’s, meanwhile, agreed that The Bahamas’ debt-to-GDP ratio is set to imminently jump to 66 percent due to $1.7bn in collective deficit spending over the next four fiscal years as the government grapples with Dorian’s reconstruction costs.

BAHAMAS Power & Light (BPL) was last night urged by the Chamber of Commerce’s top executive to “do everything in its power” to solve its cooling woe and avoid a repeat of summer 2019’s blackouts. Jeffrey Beckles, responding to Tribune Business revelations that the state-owned utility monopoly is locked in a race against time to have its new $95m generation plant ready to meet peak summer demand, warned that “in no circumstances” can households and businesses endure a return to daily load shedding that lasts for a minimum three hours. Confirming that the chamber and wider private sector were “very concerned” about BPL’s latest mishap, Mr Beckles said it was vital that a

“Given that the reconstruction efforts are likely to begin in earnest in 2020, we expect the deficit to widen in second half of the fiscal year,” Moody’s said. “The authorities’ deficit forecast for fiscal year 20192020 is 5.3 percent of GDP, followed by a reduction to 3.8 percent in 202-2021 and 2.2 percent in 20212022, and down to the fiscal rule’s medium-term target of 0.5 percent of GDP by 2024-2025. “Our updated fiscal forecasts follow a similar trajectory as the official ones, which would contribute to an increase in the debt burden over the coming years toward 66 percent of GDP. At this higher level, The Bahamas’ debt burden is broadly aligned with the median for ‘Baa3’-rated sovereigns. However, given the loss in revenue, its interest burden will be higher at 15 percent compared to the median of 6.4 percent.”

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GB Power: New customer charge ‘not an easy sell’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

GRAND Bahama Power Company’s top executive yesterday admitted it is “not an easy sell” to add an extra charge to all customer bills to pay for $15m in Hurricane Dorian restoration costs. Dave McGregor, the utility’s chief executive, defended the Storm Recovery and Stabilisation Charge that will be added to all its light bills from April 1, 2020, as “the fairest way for customers to pay” for the damage inflicted on its transmission and distribution network by the category five storm. Acknowledging that many GB Power customers were still facing “tough times” rebuilding businesses and lives shattered by Dorian, and that an increase in electricity costs will be the last thing they want, Mr McGregor said the extra charge was

• But extra levy ‘fairest way to do it’ • Can’t take $45m damages in four years • Says one cent per KWh fee’s effect minor “unfortunate” but necessary to rebuild essential energy infrastructure. Pointing out that GB Power had delivered predictable energy costs through its fuel hedging initiative, and that tariffs had not increased for eight years, he added that such reliability “needs to be paid for” after the utility incurred almost $45m worth of uninsured restoration costs in four years when Hurricane Matthew’s 2016 damage is factored in. Mr McGregor spoke out after the Grand Bahama Port Authority (GBPA), the utility’s regulator and Freeport’s quasi-governmental authority, revealed the imminent addition of the extra charge to all GB Power bills with effect from

April 1, 2020. The charge for its three customer categories will be: • Residential - $0.013 cents per kilowatt hour (kWh) or 1.3 cents • Commercial $0.008 per kWh or 0.8 cents • GSL (industrials) $0.010 per kWh or one cent The GBPA added that the Storm Recovery and Stabilisation Charge will represent an increase of less than $7 per month for the “average” residential customer, and $24 for the “average” business customer, in a bid to soften the upcoming blow and any consumer push back/fall-out. However, the new fee’s implementation means that Grand Bahama energy consumers will feel a little of the pain their New

BPL must ‘do everything in its power’ to prevent 2019 repeat By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

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• ‘In no circumstances’ suffer blackout summer • Chamber chief urges ‘urgent’ action over cooling • Public/corporate confidence in utility already ‘thin’

JEFFREY BECKLES cooling solution for the seven Wartsila engines was in place “urgently” given the lack of confidence both corporate and residential customers have in its ability to produce a reliable energy supply. “Listen, in any circumstances we cannot have

another repeat” of summer 2019, Mr Beckles told Tribune Business. “I think BPL really has to step up to the plate, not just with technical challenges, but they have to come up with solutions. “How we got here is irrelevant. We need them to fix it soon as corporate and consumer confidence is critical, so we are concerned. We’ve just got to keep moving.” Tribune Business exclusively revealed on Monday how BPL’s 132 megawatts (MW) of new generation capacity has literally “hit the rocks” after the stateowned utility encountered unanticipated difficulties with its preferred solution for cooling the Wartsilamanufactured engines.

BPL’s plan to dig four 800-feet deep wells to provide a water source has run into harder-than-expected coral rock structures that have proven difficult to penetrate, with multiple drill bits breaking. It has been forced to source and order a closed radiator system as a back-up in case the wells are not in place in time to meet peak summer demand. Desmond Bannister, minister of works, told this newspaper that a cooling solution needs to be implemented by May so that all seven engines are fully operational by June to meet peak summer demand. This means BPL has somewhere between two-and-half and

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Providence counterparts are set to receive when Bahamas Power & Light (BPL) shortly adds its own additional levy to pay for its $580m refinancing. That will presently be based on 15 percent of a customer’s consumption. Mr McGregor yesterday told Tribune Business that the extra charge is a “pass through” fee that GB Power will not make money from, much like the fuel charge. He added that the utility had also sought to minimise the impact on the commercial sector, and encourage the private sector’s post-Dorian revival, with lower rates for such customers while also recognising their higher consumption volumes.

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PM: 20% hotel vacancy cut to hit jobless goal By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE prime minister yesterday argued his six percent unemployment rate goal can be achieved by increasing average occupancy rates at existing Bahamian hotels by 20 percentage points. Dr Hubert Minnis, telling the House of Assembly that his ambitious jobless rate reduction target can be achieved “without building one more room in The Bahamas”, said growing average occupancies from 65 percent to 85 percent would inject a further $657m in visitor spending into the economy. He added that rather than seek new resort investments The Bahamas has to maximise the existing yields from its current 18,000 hotel rooms which, at an annual average occupancy of 65 percent, means some 6,300 are sitting vacant every night. Hitting back at those who have voiced doubts that he will achieve his target jobless rate, Dr Minnis said: “We need to remind the sceptics that, not so long ago, properties on Paradise Island with more than 1,000 rooms regularly ran occupancies of 85 percent year round. Those sceptics also need to digest the fact that cruise ships arrive in the port of Nassau with near 100 percent occupancies. “We must focus even more to make the adjustments to move the occupancy needle beyond 65 percent.” The prime minister added that increasing the average Bahamian resort occupancy rate to 85 percent would mean an extra 3,600 hotel rooms per night are filled. “That is equivalent to filling a property one-anda-half times the size of Baha Mar every night,” he said. “An additional 3,600 rooms occupied every night at double occupancy would mean an additional 438,000 annual stopover visitors with an average length of stay of six nights.”

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PAGE 2, Tuesday, February 25, 2020

THE TRIBUNE

PICTURED at the Deltec-sponsored welcome reception (from left): Janay Pyfrom-Symonette, head of marketing and communications, Deltec; Michelle Evans, executive business analyst, Deltec; Odetta Morton, chief executive, Deltec; Christopher Cobbinah, chief executive of Family Office Experiences; and Paul Winder, head of fiduciary products and markets, Deltec. Charles Smith, retired NBA player and head of sports and entertainment at Mediacom, is pictured in the second row.

Deltec partners to target family offices A BAHAMAS-based bank was a select sponsor and partner for a recent private event designed to attract more family offices and high net worth investors to domicile in this nation. Deltec Bank & Trust said it teamed with Family Office Experiences (FOE) for the FOE Bahamas 2020 Experience — a private gathering of family offices, professional athletes and key executives. Delegates from the group attended the three-day event at Grand Hyatt Baha Mar from February 13-16, 2020. The initiative was part of a collaboration between Deltec Bank & Trust and Family Office Experiences that aimed to present The Bahamas as a jurisdiction in which wealthy investors and clients can live, work and play. Odetta Morton, Deltec Bank & Trust’s chief executive, said: “Deltec Bank & Trust is pleased that FOE recognises our expertise and rich history in providing family office services

and, more importantly, that we offer some of the most personalised services by experienced professionals, which aligns perfectly with the type of service these individuals need for their families.” Deltec hosted the group to a welcome reception on Thursday, February 13, at its Lyford Cay property. Delegates heard first-hand about the advantages The Bahamas has to offer, including quality of life supported by a strong financial jurisdiction that mitigates risk in their wealth planning. “The ability to deliver the complete portfolio of family office services to athletes requires both an in-depth understanding of each unique person and a comprehensive understanding of the family office universe, and Deltec Bank & Trust is perfectly positioned to offer some of the most sophisticated solutions when establishing their presence in The Bahamas and anywhere in the world,” said Ms Morton.

“With this knowledge, we are not only able to deliver innovative and cutting-edge solutions that athletes are looking for today, but we’re able to do so in ways that generate significant synergies between the lifestyle they want to create here in The Bahamas and wealth management. “Also, we’re able to deliver these synergistic solutions across a wide range of solutions from estate planning, investments, insurance, digital assets and real estate to tax planning, full family governance and day-to-day administration and management.” Christopher Cobbinah, Family Office Experiences’ chief executive, added: “Our Experiences are ‘must attend’ events for those looking to build trusted relationships with the family office and athletic world. We look forward to partnering with the Deltec team to attract our community to The Bahamas.”

Bahamas ‘devoted’ to highest tax standards

TOP: Attendees of the workshop with Tanya McCartney, seated centre, BFSB chief executive. LEFT: K Peter Turnquest, deputy prime minister, delivers remarks.

A CABINET minister told a Bahamas Financial Services Board (BFSB) hosted workshop that this nation is “devoted to meeting the highest international standards of tax cooperation and tax transparency”. Elsworth Johnson, minister of financial services, trade and industry and Immigration, made the comments at a Financial Crimes Enforcement event that was held less than a week before the Financial Action Task Force (FATF) confirmed that The Bahamas has made progress in its efforts to escape a listing of nations with “strategic deficiencies” in their antimoney laundering regimes. The workshop, staged in collaboration with global consulting firm, AlixPartners, and US law firm, Kostelanetz & Fink, was held on February at the British Colonial Hilton and attended by 150 financial services industry and legal professionals. It took place three days before the FATF determined that The Bahamas had “substantially

completed” the action plan designed to remedy weaknesses in its anti-money laundering and counter terrorism financing regime. The global standard setter in the fight against financial crime said The Bahamas now “warrants an on-site assessment” to verify that it has begun implementing the reforms, and that the “necessary political commitment remains in place to sustain” this effort going into the future. K Peter Turnquest, deputy prime minister, in his opening remarks to the workshop said: “This event on financial crimes enforcement is most relevant given the global attention given to high-profile cross border investigations, data leaks and regulatory findings. “For better or worse, The Bahamas is part of a global multilateral process by which national governments collectively review, investigate and prosecute financial crimes and noncompliance matters. It is incumbent on us to be at the forefront of industry developments, and to be

proactive in our efforts to secure and strengthen our position as a global financial centre”. The workshop gave attendees an international perspective on compliance challenges, and insight into how to adapt to current regulatory requirements in the compliance field. Speakers included former members of the US Department of Justice, the Internal Revenue Service’s criminal investigation division (IRS-CI), the Securities & Exchange Commission (SEC), the Office of Foreign Assets Controls (OFAC) and various Bahamian practitioners. Speakers and panellists addressed topics including: 1. Cryptocurrency practices 2. Criminal tax developments 3. EU mandatory disclosure regime 4. OFAC and sanctions compliance 5. The fight against money laundering 6. Best compliance practices for financial institutions.

THE TRIBUNE

PM HITS OUT ON FAILED SUCCESSION PLANNING By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE prime minister yesterday hit out at expatriate work permit holders who failed to train Bahamians to replace them, yet remained in this nation for years, for taking jobs away from locals. Closing debate on the mid-year budget in the House of Assembly, Dr Hubert Minnis said employers would have to bring in fresh expatriate hires if work permit holders failed to train Bahamian replacements by the time their visa expires. He also bemoaned the practice of expatriates entering The Bahamas on work permits only to ultimately establish their own businesses - some of which are in sectors purportedly reserved exclusively for Bahamian ownership and compete against local companies. And the prime minister pledged to crack down on the issuance of first-time work permits by insisting that these will not be issued to persons already in The Bahamas - something that has been a long-standing practice, although enforcement has been questionable. Only work permit renewals will be approved for expatriates already present within the jurisdiction. Arguing that “succession planning” has not been entirely successful, Dr Minnis said he had also told Elsworth Johnson, the minister with responsibility for immigration, to form a “strike force” that will have among its mandate the task of detaining undocumented workers at “various job sites”. “Bahamians who employ illegals will and must be prosecuted,” the prime minister said, adding that The Bahamas “cannot continue

CHAMBER of Commerce presidents yesterday said the post-Dorian Special Economic Recovery Zone (SERZ) initiative is going smoothly in both Abaco and Grand Bahama. Ken Hutton, head of the Abaco Chamber of Commerce, told Tribune Business: “Things are definitely moving a lot faster than they were previously. I think there are still a lot of kinks to work out, but overall I am not unhappy with the progress that is being made.” Gregory LaRoda, his counterpart at the Grand Bahama Chamber of

DR HUBERT MINNIS along as a lawless society. Jobs are first and foremost for Bahamian citizens”. He blasted: “I find it very difficult, and I could not understand and still don’t understand to-date, where investors, bankers etc bring individuals to our shores on contracts for three or four years with commitment that they would train Bahamians to take over such jobs. “In six years they are still here, eight years they are still here, and in nine years they are applying for residency, displacing Bahamians. I find it difficult that my nationals cannot obtain the knowledge to take over the job. Since I know that nationals can, and do, have the knowledge to take over the job, the fault must be with the trainer. “We ought to aggressively ensure that succession planning is first and foremost and, in the absence of the individuals not properly being trained, that trainer has failed and must be replaced by a new trainer so that they do not establish foundation within our country and further take jobs away from our citizens.” Dr Minnis said he also found it “difficult to accept” that expatriates are coming to The Bahamas on work permits, or as sub-contractors, only to create their own businesses here. “When I look five years later these individuals establish their construction companies and compete against Bahamians for our jobs,” he added. “I am embarrassed sometimes as I walk about and see the amount of individuals that speak a different

Commerce, added: “With that everything is going smooth. People are taking advantage of it and doing a lot of local shopping, especially on the building materials side of things, where they are building back their businesses and their homes. “Everything with that is going pretty smooth from what I can tell. No hiccups. Now that you really don’t have to fill in the form any more, you just go in and you can purchase this stuff duty-free and VAT (valueadded tax) free.” Mr Laroda said there were “no concerns from the Grand Bahama Port Authority” that he was aware of, and that “no one complained”.

TREASURY HOLDS EVENT FOR ACCOUNTING OFFICERS

KHRISTI FERGUSON

language than I do, but yet have big contracts within our country. That must stop. Bahamians first. “But Bahamian citizens are likewise responsible. We have a responsibility to BAHAMAS Insurance Association (BIA) executives called on the Smith, at Government House on Monday, February 17, 2020. inform the government as to such activities, and we have a responsibility of not hiring individuals unless there is documentation of them being allowed to be here.” Dr Minnis has talked tough on Immigration before, but it remains to be seen whether his address By YOURI KEMP it’s just mix-ups. I don’t will lead to decisive action. Tribune Business Reporter think there is any higher His comments, though, ykemp@tribunemedia.net level of thefts here any tie-in with proposals by more.” ABACO’S Chamber of Dion Foulkes and John Explaining what he Pinder, respectively minis- Commerce president yes- meant by his call for ter and director of labour, terday called for better a better organisational that employers must set-up organisation at the island’s structure, Mr Hutton said: port, adding training programmes and shipping “Well, normally in a port identify Bahamian under- that “mix-ups” rather like APD (Arawak studies in return for work than “higher levels of Port Development) theft” are responsipermit approvals. there is a very set “Work permits will not ble for goods losses. procedure for stuff Ken Hutton, picbe obtained within our coming in and going country unless they are tured, speaking to out of the port area. being renewed,” the Prime Tribune Business about “We don’t have that Minister added. “We will the security concerns raised type of infrastructure in do regular audits of those by major building suppli- place right now. They are work permits to ensure that ers, said: “I think goods doing the best they can with those work permits were are still going missing here, what’s there. But, again, issued while those individu- but I don’t think that has we need a full-blown port als were out of country, and to do with security. I think structure to be reinstituted anybody discovered to be it primarily has to do now or reinstalled at the port of in violation of that policy, with the fact that we need a Marsh Harbour.” As for the “mix-ups”, they will be dealt with better organisational structure in place there. I think Mr Hutton added: “I can accordingly.”

Insurers meet with governor general

Chamber chiefs happy with economic zones By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

Tuesday, February 25, 2020, PAGE 3

MARY MITCHELL

A PUBLIC Treasury seminar for accounting officers, held under the theme Enhancing Accounting Controls 2020, was held last Friday at the Paul Farquharson Centre at Police Headquarters. Facilitators included Mary Mitchell, the treasurer; Khristi Ferguson, deputy director, Financial Intelligence Unit; and Kevin Archer, deputy director of internal audit. Photos: Derek Smith/BIS

Governor General, Cornelius A Photo: Letisha Henderson/BIS

‘Mix-ups’ to blame for Abaco port goods loss only speak from personal experience, where things are being released to the wrong people or people are picking up the wrong thing and getting out of the gate. Again, the procedures for exiting from the gate or the out-gating of goods are not what it should be yet, primarily because we don’t have the physical infrastructure to put those things in place.” Asked whether the government is addressing the issue, Mr Hutton said: “I am not aware of anything that is being done specifically, and I haven’t been told anything yet. I speak only on behalf of the chamber. I am not saying that nothing is happening, I am just saying that I have not been made aware of anything happening yet.”

PAGE 4, Tuesday, February 25, 2020

THE TRIBUNE

Working age ‘plateau’ to GB Power: New hit growth, credit rating customer charge FROM PAGE ONE

Dorian’s impact on the country’s short and medium-term finances, which has placed fiscal consolidation firmly on the backburner for the time being, shows that a 2019-2020 deficit equivalent to 5.3 percent of gross domestic product (GDP) or $677.5m will drive the government’s direct debt beyond the $8.205bn mark by end-June 2020. The direct debt-to-GDP ratio will increase by more than seven percentage points compared to initial projections, rising from 57.3 percent to 64.4 percent by the time this fiscal year closes. This ratio is forecast to peak at 66.6 percent at the end of the 2020-2021 fiscal year, and will only have come down slightly to 65.9 percent some two years later. The government’s revised budgetary projections show more than $1.7bn being added to its direct debt over the four years from end-June 2019 to the close of the 2022-2023 fiscal year, taking it to $9.243bn. As for debt servicing, these costs are set to soar to almost $400m by the 2022-2023 fiscal year. Still, despite the increased “red ink”, Moody’s gave no indication it plans to cut The Bahamas’ sovereign

creditworthiness - a move that would see this nation fall from investment grade to so-called “junk” status. It projected that this nation’s economic growth will be flat in 2020, with Dorian having cut last year’s expansion to just 0.6 percent. “We estimate that the economy expanded 0.6 percent in 2019, the result of moderate growth in the first eight months of the year being partly offset by the effects of Hurricane Dorian,” Moody’s said. “We expect real GDP to remain flat in 2020, although the outlook remains uncertain because there is limited post-hurricane data available so far. “No data on tourism is available for 2020, but figures for the 2019 fourth quarter showed tourism rebounding from the effects of Dorian. If tourism remains steady, there should be limited negative spillover effects on associated sectors, chiefly transport and retail. “We expect a recovery in the second half of 2020, driven by private and public reconstruction efforts. Major considerations on these processes will be the awarding of construction permits and the availability of labour, materials and financing. The government has already acted to address some of these challenges,

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temporarily suspending statutory fiscal targets and announcing tax waivers for reconstruction expenses.” Turning to the government’s fiscal position, Moody’s added: “The central government’s fiscal deficit in the first half of fiscal year 2019-2020 was $189m, a slight increase from the previous year’s $174m. “The deterioration was driven by the expenditure related to relief efforts following Dorian, as total revenue actually registered a 9.1 percent year-on-year increase, despite lower collections in Abaco and Grand Bahama, the affected islands. In year-on-year terms, expenditures rose by $106m (8.9 percent), with direct hurricane-related expenditure accounting for $50m.” Looking to the future, Moody’s added: “Notwithstanding the deterioration in the government’s debt metrics, authorities had made important progress in implementing the new fiscal policy framework, increasing transparency and complying with the new fiscal rules through fiscal 2018-2019. “Given the magnitude of the economic and fiscal shock caused by Hurricane Dorian, a key factor that will support The Bahamas’ credit profile will be the government’s ongoing efforts to strengthen the fiscal policy framework, as well as any measures that would support the consolidation process in future years amid a gradual economic recovery. “Important policy initiatives involve reforms to public financial and debt management and the reform of state-owned enterprises (SOEs). The latter will be key for deficit-reduction efforts, given the ongoing budgetary support provided by the central government.”

‘not an easy sell’

The GB Power chief also reiterated that the electricity supplier, and its GBPA regulator, had initially sought to address storm restoration costs through the creation of a self-insurance fund. However, Hurricane Matthew arrived before it could be created, and Dorian has further forced that strategy on to the back burner. “It’s going to be tough,” Mr McGregor admitted of the impact on consumers. “You never wish to come back with any price increase. The Port Authority in its announcement did note that we’ve been talking for a while about implementing a self-insurance fund or storm insurance fund, where we would collect and pool funds collected from customers and put them into a bank account.” However, the $27.5m worth of damages inflicted by Hurricane Matthew instead forced the GBPA to approve a “five-year rate stabilisation plan” where the utility recovered its restoration costs via savings from its fuel hedging programme. This was to delay implementation of the selfinsurance fund until 2022 when GB Power would have recovered its Matthew costs. It was also contingent on there being no other major hurricane striking Grand Bahama before then. Enter Dorian. Karla McIntosh, the GBPA’s in-house attorney, said in a statement: “The regulatory framework agreement governs the rate setting protocols and reporting requirements for GB Power, including a mechanism to recover costs associated with natural disasters. “We have worked with the utility to ensure efficiency of operation, necessary capital investments and quality of service. With regulatory oversight, this was achieved with no increase to rates since the establishment of the framework agreement in 2013.

“Unfortunately, Hurricane Dorian had a disastrous impact not only to life and property, but also substantially impacted Grand Bahama Power Company’s generating, transmission and distribution assets. The full cost of restoration associated with Hurricane Dorian is approximately $15m.” That sum applies only to GB Power’s transmission and distribution network. While its flood-damaged Peel Street plant and other generation assets were covered by insurance, utilities are unable to obtain such coverage for all their transmission networks as carriers typically shy away from the risks presented by hundreds of miles of exposed electrical lines and poles. “We don’t profit from this,” Mr McGregor told Tribune Business of the new charge. “This will be a direct pass through like the fuel charge is. The only alternative is to build this into the rates, but when there is no hurricane we end up making money. “We feel this is by far the fairest way for customers to pay for the hurricane. The hurricane needs to be paid for, and the best way is to pay through the customer. It will be a separate line on the bill, a separate charge. It will pay off Dorian’s $15.6m, and this will be paid off in five years assuming the load comes back the way we hope. “After that, subject to the approval of the Port Authority, we will continue with the charge at a slightly lesser rate so that we save for future storms. That’s the philosophy. It’s not an easy sell. It’s tough times for all of us. But we spent the money and need to get it back.” Acknowledging the likely complaints that will follow, Mr McGregor said GB Power had concluded that it was better to add an additional charge to customer bills now rather “than incur borrowing costs” that will raise tariffs even

higher in future. “It’s like a credit card bill that just gets higher and never goes away,” he added. “We’ve already outlaid. We always try to minimise these costs as best we can. It’s just unfortunate. But we’ve not had a rate increase since 2012. “We’ve managed two issues - cost control measures and fuel hedging - to keep the lid on rates despite inflationary pressures. The fuel rate is locked in until 2022, and we have a very reliable system here in Grand Bahama. Customers do appreciate that, but that needs to be paid for. “We have succumbed to two storms in four years. Dorian was $15-$16m, and Matthew $27.5m. No business can absorb almost $45m in extra costs. Asking customers for another cent per KWh is unfortunately what we have to do, and it is part of the regulatory framework worked out with the Port Authority in 2013. Still, Mr McGregor said GB Power had been able to give its commercial and industrial customers some relief with the lower rate. “It’s important the commercial sector returns,” he added, “so we’re trying to give them a little bit of help. “This is all about making sure we’re in the position to deal with the next storm as well as we did with this. No one can argue that the teams at GB Power did a good job in restoring power in short order, and it’s important we’re in position to do that as there will be other storms. It’s inevitable, and we need to be in a position to manage that.”

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THE TRIBUNE FROM PAGE ONE three-and-a-half months to prevent a repeat of the daily load shedding and blackouts that plagued New Providence last summer. Mr Beckles was last night among those questioning how the cooling system situation had arisen, given that BPL had almost one year to plan and the extent of a $95m investment in purchasing, shipping and installing new engines critical to giving New Providence a more reliable, efficient and cheaper energy supply. “Somebody needs to answer for it and get it fixed,” the chamber chief executive added. “Historical stuff notwithstanding, this is where we are and we just need a solution. Keep in mind this is almost March. Spring is right around the corner, and we need to know the timelines and what to anticipate. “BPL needs to do everything in its power to avoid a 2019 experience, and come up with a solution very quickly. We are very hopeful. We can only be hopeful.” The Chamber of Commerce, in a separate statement, said the Bahamian private sector “needs to be confident” that BPL is capable and committed “to fulfilling their obligations regarding safe, consistent, reliable and costeffective power supply”. And, with the imminent introduction of an additional charge to all BPL customers’ bills to help pay for its $580m refinancing, the chamber added that there was a “justifiable expectation” the utility will start to deliver reliable energy supply as its part of

PM: 20% hotel vacancy cut to hit jobless goal FROM PAGE ONE

“With each visitor spending the average $1,500 per visit, moving occupancies from 65 percent to 85 percent would mean an additional $657m in incremental visitor expenditure in The Bahamas. When we look at the data showing the number of direct, indirect and induced jobs that

Funeral home chief hits back in Dorian row

FROM PAGE ONE

It added that they were prepared to spend more than $300,000 of members’ own money to provide the funeral service, prepare all graves, and ensure that all related services would be handled. However, the BFDA letter said: “We are shocked and very concerned to now understand that the Government of the Bahamas has succumbed to the pressure of one of our members, who initially volunteered (as reported in the media) to assist the government with removal of bodies in Abaco, and only provided services for persons who had contracted their business directly, to now be on the precipice of being offered the very same service that we have agreed to provide, and what we are advised was accepted by the Disaster Reconstruction Authority. “We are even more concerned to learn that the government in fact paid this member near six-figures to remove bodies in Abaco, at a rate almost double that of what law enforcement pays for the removal of deceased persons, when this member advised that the services were provided on a voluntary basis.” While the association’s letter never identified the “member” it was talking about, Ms Penn-Mackey did that yesterday. She told Tribune Business she had been hired by the government from “over two months ago”. “The government has been collaborating with me and the Christian Council from Abaco’s president, as

Tuesday, February 25, 2020, PAGE 5

BPL must ‘do everything in its power’ to prevent 2019 repeat the bargain. The new debt servicing charge is expected to be equivalent to 15 percent of customers’ current consumption. It said: “The stability and delivery of power generation are critical components to strengthening our economy. A reliable and long-term solution must to be found and shared with the wider community. We consistently refer to the impact our power challenges have on the private sector and investment environment. “The private sector has experienced the loss of productivity and profitability last year through the extensive power outages and load shedding. Given the fact that, this year, both the private sector and residents are expected to pay more through the rate reduction bond (RRB), there is a justifiable expectation that power generation will be consistent.” The chamber added: “Ensuring proper technical resources and access to guidance is imperative to BPL delivering on the commitments it has made to the Bahamian public, and as it undertakes transformative change. “Additionally, the BCCEC is concerned that

as the solution to bringing the cooling water into the plant to cool the engines is found, that BPL also has an environmental plan for the disposal of the wastewater taking into account the necessary protocols needed to prevent any damage to the marine life in the area. “We appreciate the minister’s acknowledgment of the challenges and his commitment to finding a solution. However, the Bahamas Chamber of Commerce and Employers Confederation (BCCEC) is calling on BPL to provide and announce a solution as a matter of urgency.” Matt Aubry, the Organisation for Responsible Governance’s (ORG) executive director, told Tribune Business that the cooling system woes were likely to exact a further toll on already “thin” public trust and confidence in BPL. He added that the utility and all state-owned enterprises (SOEs) needed to become more transparent and open over any issues they were having so that the private sector and public could plan and adjust accordingly. “Obviously there is concern from both the citizenry and the private sector because electricity is such a

would be created by such an outcome, the six percent level of unemployment is achievable from tourism sector expansion alone.” The six percent jobless rate targeted by Dr Minnis would represent a 21st century low for The Bahamas. Zhivargo Laing, former minister of state for finance in the Hubert Ingraham administration, told Tribune Business that while possible, achieving the Prime Minister’s goal will be “highly improbable”. “You have to have substantial investments take place. I’m talking about

substantial investments,” he added. “You are creating thousands of jobs over the next 18 months, and then those jobs can’t merely be construction jobs. You can have a project take place, and a construction team in place for six months, seven months, eight months, and the job can come to an end.” Meanwhile, Dr Minnis said two Florida-based fixed base operators (FBOs) where The Bahamas will establish pre-clearance facilities for private pilots are expecting a 15-20 percent increase in traffic to this nation as a result.

well as the Christian Council here in Nassau,” Ms Penn-Mackey said. “All of us have been collaborating from the inception to see how we can bring some type of solace to this fiasco with the trailer in Abaco. We were very much involved with recovering most of those bodies.” Pressed on the exact figure she submitted to the government for the burial expenses, she declined to respond, but did say: “There was a bid that was put in by my company, and a bid put in by the BFDA.” Ms Penn-Mackey then told Tribune Business she attended a meeting at the Prime Minister’s Office involving Iram Lewis, minister of disaster preparedness, management and reconstruction; Kay Forbes-Smith, managing director of the Disaster Reconstruction Authority; and John-Michael Clarke, Disaster Reconstruction Authority chairman; as well as the permanent secretary.” “Ms Smith was given a mandate from the prime minister, her and the minister of disaster, to deal with me because I am an Abaconian first and foremost. But aside from being an Abaconian I would have dealt with these families who would have had loss from day one,” Ms Penn-Mackey added. “I am familiar with who they are and I have been dealing with them from then to now. So the prime minister obviously wanted the person who was involved from day one to continue with this because I am very much privy to who the families are and whatever needs to be done to bring some peace of mind to the families through this time. “Ms Smith knew what the mandate was and, in fact, all indication was given to me that it was a go and clear to proceed.”

BPL HEADQUARTERS BUILDING

MATT AUBRY critical need for day-to-day quality of life and the cost and ease of doing business,” Mr Aubry said. “The problems sounds like an engineering one. The public’s trust is a bit thin at this point. Any delay, and it may be a significant one, brings into question the viability of the investment

in BPL and this new system. This is something we need to get as soon as possible so we can start to see the benefits and consistency folks want.” He added: “It is important for BPL and all the SOEs to be open, transparent and clear so folks and businesses can be informed in whatever decisions they need to make. If someone is launching a new business, or new business model, that is dependent on a lower cost of electricity, that is essential. “The more transparent, direct and open the information, the more citizens are involved with government and the better the outcomes

the government obtains.” Noting that Dr Donovan Moxey, BPL’s chairman, had been reluctant to discuss the cooling situation with Tribune Business, Mr Aubry said accurate details were critical to Bahamians’ ability to budget and meet their financial obligations. “It’s not good to say: ‘We’ll tell you about it once we fix it’,” the ORG executive director added. “It’s better to say: ‘Here are the dilemmas we are going through, and this is how we’re approaching it’. I can understand their hesitancy given the importance of what this means and if it doesn’t work out.”

PAGE 6, Tuesday, February 25, 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

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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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Looking to fill the following positions:

•Sous Chef •Line Cook •Pizza Cook •Waiter Must have 5 years and more experience.

THE TRIBUNE

Tuesday, February 25, 2020, PAGE 7

By ALEX VEIGA AND DAMIAN J TROISE Associated Press THE Dow Jones Industrial Average slumped more than 1,000 points yesterday in the worst day for the stock market in two years as investors worry that the spread of a viral outbreak that began in China will weaken global economic growth. Traders sought safety in US government bonds, gold and high-dividend stocks like utilities and real estate. The yield on the ten-year Treasury fell to the lowest level in more than three years. Technology companies, whose supply chains have been disrupted, accounted for much of the broad market slide, which wiped out all of the Dow’s and S&P 500’s gains for the year. More than 79,000 people worldwide have been infected by the new coronavirus. China, where the virus originated, still has the majority of cases and deaths. The country’s economy has been hardest hit as businesses and factories lie idle and people remain homebound because the government has severely restricted travel and imposed strict quarantine measures to stop the virus from spreading. Economists have cut growth estimates for the Chinese economy. The ripple effects of the outbreak are being felt all around the world, as China is both a major importer of goods as well as a source of parts through intricate supply chains. China’s government promised tax cuts and other aid yesterday to help companies recover despite anti-disease controls that shut down much of the world’s second-largest economy last month. Forecasters say it is likely to be at least mid-March before automakers and other companies return to full production. Still, while concern about the virus has prompted some sporadic selling in the past few weeks, for the most part global markets have traded as if the virus’ impact would be limited. Until yesterday, the major US stock indexes had all been in the green. The rapid spread to other countries, however, is raising anxiety about the growing threat the outbreak poses to the global economy. “Stock markets around the world are beginning to price in what bond markets have been telling us for weeks – that global growth is likely to be impacted in a meaningful way due to fears of the coronavirus,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. The Dow, Nasdaq and S&P 500 each fell more than 3% Monday. The yield on the ten-year Treasury note fell sharply to 1.37%. It was at 1.90% at the start of the year. Gold prices jumped 1.7%.

DOW DROPS OVER 1,000 AS OUTBREAK THREATENS GLOBAL ECONOMY

TRADER Gregory Rowe works on the floor of the New York Stock Exchange yesterday. Stocks are opening sharply lower on Wall Street, pushing the Dow Jones Industrial Average down more than 700 points, as virus cases spread beyond China, threatening to disrupt the global economy. Photo: Richard Drew/AP Crude oil prices slid 3.7%. Aside from air travel, the virus poses an economic threat to global shipping. The slump in US indexes followed a sell-off in markets overseas. South Korea’s Kospi fell sharply after the government said the country is now on its highest alert for infectious diseases after cases there spiked. Italy’s benchmark tumbled after the number of virus cases there rose dramatically and a dozen towns in the northern part of the country were put under quarantine. There are also more cases of the virus being reported in the Middle East as it spreads to Iran, Iraq, and Kuwait, among others. The viral outbreak threatens to crimp global economic growth and hurt profits and revenue for a wide range of businesses. Companies from technology giant Apple to athletic gear maker Nike have already warned about a hit to their bottom lines. Airlines and other companies that depend on travelers are facing pain from cancelled plans and shuttered locations. Technology companies were among the worst hit by yesterday’s sell-off. Apple, which depends on China for a lot of business, slid 4.8%. Microsoft dropped 4.3%. Banks such as JPMorgan and Bank of America were also big losers. Cruise lines suffered steep losses, as Carnival, Royal Caribbean Cruises and Norwegian Cruise Line were three of the top four decliners in the S&P 500,

To advertise in The Tribune, contact 502-2394 NOTICE NOTICE is hereby given that MARIO ST.CHARLES of Pinewood Gardens,P.O.Box SP-61998 Nassau, Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 18th day of February 2020 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

each falling around 9%. American Airlines also dropped sharply, and after the market closed, United Airlines withdrew its earnings estimate for 2020 because of uncertainty over how long the virus outbreak will last Gilead Sciences climbed 4.6% and was among the few bright spots. The biotechnology company is testing a potential drug to treat the new coronavirus. Bleach-maker Clorox was also a standout, rising 1.5%. Utilities and real estate companies held up better than most sectors. Investors tend to favor those industries, which carry high dividends and hold up relatively well during periods of turmoil, when they’re feeling fearful. They’re now the best-performing sectors in the S&P 500 for the year, while the tech sector has lost ground. In the eyes of some analysts, stocks are finally catching up to the bond market, where fear has been dominant for months. “The yields have been moving lower all year, so that’s providing a tail wind for utilities, for real estate,” said Willie Delwiche, investment strategist at Baird. “In the face of this heightened uncertainty, especially if it’s

centered overseas, tech is going to bear some of the brunt of that because it’s been so popular, because it’s done so well, and because it has so much exposure to Asia.” US government have turned to the safety of bonds throughout 2020, even as stocks overcame stumbles to set more records. The ten-year yield yesterday was near its intraday record low of 1.325% set in July 2016, according to Tradeweb. The 30-year Treasury yield fell further after setting its own record low, down to 1.83% from 1.92% late Friday. Traders are increasingly certain that the Federal Reserve will cut interest rates at least once in 2020 to help prop up the economy. They’re pricing in a nearly 95% probability of a cut this year, according to CME Group. A month ago, they saw only a 68% probability. Of course, some analysts say stocks have been rising in recent weeks precisely because of the drop in yields. When bonds are paying such meager amounts, many investors say there’s little real competition other than stocks for their money. The view has become so hardened that “There Is No Alternative”, or TINA, has become a popular acronym on Wall Street. Even with yesterday’s sharp drops, the S&P 500 is still within 4.2%

of its record set earlier this month. MARKET ROUNDUP: The Dow lost 1,031.61 points, or 3.6%, to 27,960.80. The S&P 500 index skidded 111.86 points, or 3.4%, to 3,225.89. The Nasdaq dropped 355.31 points, or 3.7%, to 9,221.28 - it’s biggest loss since December 2018. The Russell 2000 index of smaller company stocks gave up 50.50 points, or 3%, to 1,628.10. Investors looking for safe harbours bid up prices for US government bonds and gold. The yield on the ten-year Treasury note fell sharply, to 1.37% from 1.47% late Friday. In commodities trading, benchmark crude oil fell $1.95 to settle at $51.43 a barrel. Brent crude oil, the international standard, dropped $2.20 to close at $56.30 a barrel. Wholesale gasoline fell four cents to $1.61 per gallon. Heating oil declined 8 cents to $1.61 per gallon. Natural gas fell eight cents to $1.83 per 1,000 cubic feet. Gold rose $27.80 to $1,672.40 per ounce, silver rose 35 cents to $18.87 per ounce and copper fell three cents to $2.59 per pound. The dollar fell to 110.74 Japanese yen from 111.62 yen on Friday. The euro weakened to $1.0842 from $1.0858.

PAGE 8, Tuesday, February 25, 2020

THE TRIBUNE

Fed’s Mester says rate cut unnecessary to offset virus risks WASHINGTON Associated Press A FEDERAL Reserve official said yesterday that she does not see a need to cut interest rates yet, even as worries about the viral outbreak that began in China caused global stock markets to plunge and some economists are penciling in a rate reduction by April. “I see it as a risk to the (economy’s) outlook, but the fundamentals are still strong enough to support trend growth,” Loretta Mester, president of the Federal Reserve Bank of Cleveland, said. “I think our policy is well-calibrated to where we are ... including the risks that are out there.” She also said that, “we don’t want to overreact to the volatility in the markets” after just one day of sharp drops. The benchmark S&P 500 index fell 3.4% yesterday. Mester’s comments at a business economics conference in Washington echoed remarks by two other Fed presidents on Friday. Both

the St Louis Fed’s James Bullard and the Atlanta Fed’s Raphael Bostic said a rate cut wasn’t yet necessary. Mester is the only one of the three with a vote on the Fed’s policy-making committee. Yet Wall Street traders are increasingly pricing in the likelihood of a rate cut as soon as the Fed’s April meeting. Traders now see a 55% probability of at least one cut by then, according to the Chicago Mercantile Exchange’s Fedwatch tool. The central bank’s next meeting is March 17-18. Gregory Daco, an economist at Oxford Economics, said the Fed should move quickly to avoid falling behind the curve. If markets continue to struggle, the US central bank could be forced to cut as early as March, he said. “Watching and waiting at this stage is a risky proposition,” Daco said. “Not reacting to financial market signals can worsen the economic impact of the virus.” A key issue is how the coronavirus impacts the

SPECIALIST Erica Fredrickson works with a colleague on the floor of the New York Stock Exchange yesterday. Stocks are opening sharply lower on Wall Street, pushing the Dow Jones Industrial Average down more than 700 points, as virus cases spread beyond China, threatening to disrupt the global economy. Photo: Richard Drew/AP economy. If it mostly disrupts supply chains and factory output, a Fed rate cut may not be able to do much to restore that lost supply. But if consumers cut back on spending out of concern

about the economy’s health, or businesses pare investment in the wake of slower growth overseas, then Fed rate cuts could offset some of that drop in demand, Mester said.

LEGAL NOTICE

NOTICE

International Business Companies Act (No. 46 of 2000)

Pursuant to the provisions of Section 138 (8) of the International Business Companies Act (as amended), NOTICE is hereby given that Sequel Corporation has been dissolved and has been struck from the Register with effect from 20th day of December, 2019.

ALISA CAPITAL CORP. Registration No. IBC 203145 B Pursuant to the provisions of Section 138 (8) of the International Business Companies Act, 2000 notice is hereby given that ALISA CAPITAL CORP. has been dissolved and struck off the Register of Companies with effect from the 11th day of February, 2020.

LYNN KELLY LIQUIDATOR c/o EFG Bank & Trust (Bahamas) Ltd Goodman’s Bay Corporate Centre, 3rd Floor West Bay Street and Sea View Drive P.O. Box CB 10956 Nassau, Bahamas

Galnom Ltd. Liquidator

MARKET REPORT www.bisxbahamas.com

(242) 323-2330

MONDAY, 22 FEBRUARY 2020

ALL SHARE INDEX: CLOSE: 2,201.88 | CHG: -0.15 | %CHG: -0.01 | YTD: -29.72 | YTD%: -1.33 52WK LOW 3.35 20.91 5.50 5.38 1.77 0.67 2.00 9.91 5.60 3.95 6.10 2.53 1.76 8.00 6.40 14.00 6.80 3.01 13.85

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

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 3.50 17.43 6.00 6.68 2.10 1.62 3.53 11.61 6.00 4.33 6.10 3.65 5.06 11.21 8.00 15.05 9.33 3.50 15.20

CLOSE 3.50 17.43 6.00 6.68 2.10 1.62 3.53 11.61 6.00 4.33 6.10 3.60 5.06 11.09 8.00 15.05 9.33 3.50 15.20

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 -0.12 0.00 0.00 0.00 0.00 0.00

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 500

150

500

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 14.6 18.7 N/M 18.1 N/M N/M -8.1 16.1 13.4 23.5 43.6 35.3 10.8 17.2 11.0 18.4 9.9 17.2 24.1

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 4.86% 7.23% 0.00% 3.89% 0.00% 1.23% 0.00% 6.20% 3.67% 2.77% 0.00% 12.06% 1.19% 2.96% 3.00% 3.59% 2.14% 3.43% 4.01% 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% 3.73% 3.73% 2.93% 2.93% 2.67% 2.71% 5.76% 5.76% 12.81% 12.81% 0.58% 4.04% -1.09% 5.26% 0.22% 4.45% 2.29% 9.61% 11.57% 11.57% 18.35% 18.35% 5.17% 5.17% 15.86% 15.86% 5.67% 5.67% 3.40% 3.40% N/A N/A 10.80% 2.60% 10.40% -4.00%

NAV Date 31-Dec-2019 31-Dec-2019 27-Dec-2019 31-Dec-2019 31-Dec-2019 31-Jan-2020 31-Jan-2020 31-Jan-2020 31-Jan-2020 31-Dec-2019 31-Dec-2019 31-Dec-2019 31-Dec-2019 31-Dec-2019 31-Dec-2019

MUTUAL FUNDS 52WK HI 2.29 4.37 2.09 195.13 166.73 1.67 1.83 1.76 1.23 8.34 10.26 6.94 12.01 12.35 10.74 10.00 8.98 11.79

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.67 1.83 1.76 1.23 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 2.29 4.37 2.09 195.13 166.73 1.67 1.83 1.76 1.23 8.34 10.23 6.94 12.01 12.35 10.73 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

NOTICE NOTICE is hereby given that NICOLE GUILLAUME of Wulf Road, Nassau, Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 25st day of February 2020 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

(242) 323-2320

BISX LISTED & TRADED SECURITIES 52WK HI 4.45 22.65 7.00 6.70 2.60 2.00 5.47 12.77 6.17 4.50 10.84 3.64 5.06 10.88 8.00 16.99 9.40 3.80 15.20

Catherine Mann, chief global economist at Citi, said that the financial markets were previously complacent about coronavirus because investors expected it to mainly impact factory output and supply chains in China. They thought that would be a temporary hit and the global economy would quickly recover. But with the virus spreading, it threatens to have a broader impact, Mann said. Travel and tourism around the world will likely be severely crimped and consumers in countries that have been hit by the virus, such as

South Korea and Italy, will likely cut back their spending as quarantines are imposed. That won’t be so easily made up. Mann said that Citi has cut its forecast for global economic growth this year to 2.5%, the lowest since the Great Recession more than a decade ago. Fed rate cuts may only have a limited impact, Mann added. Interest rate cuts by the Fed are typically less effective amid widespread uncertainty. Lower rates won’t necessarily get businesses to invest more in their plants or buy equipment if they aren’t sure how the economy will fare in the coming months. And consumers won’t necessarily spend more, even with lower rates, if they are waiting to see how the viral outbreak progresses, or if they are staying home out of fear. “The Fed cannot offset those two sentiment and uncertainty effects,” Mann said. Roger Ferguson, CEO of retirement services firm TIAA and former vice chair of the Federal Reserve Board of Governors, also raised doubts about the effectiveness of a cut. “It’s not 100% clear that having interest rates (onequarter of a percent) lower will have a direct impact on manufacturing goods or getting people back to work,” he said.

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

NOTICE is hereby given that PHILIP DACK of 3E Caves Point, P.O.Box N7776 Nassau, Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 18th day of February 2020 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE NOTICE is hereby given that MARVIN LUBIN of , Marsh Harbour, Abaco, Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 25st day of February 2020 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE NOTICE is hereby given that NERLINE GUILLAME of ,P.O.Box Marsh Harbour, Abaco, Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 18th day of February 2020 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.