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TUESDAY, MARCH 19, 2019
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Transaction costs ‘slowing’ electronic payments switch By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE costs associated with settling electronic transactions are “slowing the pace of change” in the Bahamian payments system, the Central Bank’s governor said yesterday. John Rolle, pictured, addressing the regulator’s second annual blockchain technology seminar, said The Bahamas still has much to do in its efforts to switch away from a cash-based society despite double and triple-digit increases in card and digital payments transactions in the five years to 2017. “At the national level, the use of electronic payments has increased,” he agreed. “But, anecdotally, the costs of settlement are slowing the pace of change. To accelerate change there should be greater comfort around accepting and making digital payments, placing them within the reach of more consumers. “When funds transfer costs inhibit the adoption of e-payments, we fail to reap the more tangible benefits of having electronic audit trails for business transactions; data to facilitate domestic tax compliance; reliable records that allow enterprises to access credit facilities; and reducing the costs associated with check reconciliation systems.” Data shows an increase in payments transactions taking place outside physical bank branches, although many of these are still likely cash-based as they take place at Automatic Teller Machines (ATMs). Cheque writing has also declined as the use of debit and credit cards to facilitate payments has risen. “Anecdotally, wire transfer costs have also slowed the transition of some firms from the use of cheques for payroll processing,” footnotes to Mr Rolle’s speech said. “Also, the merchant fee for accepting credit and debit card payments can average between two percent and five percent of the transaction’s value, acting as a disincentive for firms that might cling exclusively to cash receipts.”
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BISX: We’ll make it cheaper to go public By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
T
HE Bahamas InternationalSecurities Exchange (BISX) will next week issue proposed rules changes designed to “make it cheaper and easier” for companies to go public. Keith Davies, the stock exchange’s chief executive, told Tribune Business yesterday that the alterations “should be out next week” through BISX’s website to kickstart a 30-day consultation process with listed issuers, broker/dealer members and the investing public. While the proposed changes “are not sweeping”, Mr Davies said they will include a mixture of new proposals - combined with technical and structural alterations - that are designed to boost market transparency through better and more timely listed company disclosures, while also reducing the costs associated with being a public company. The BISX chief executive
KEITH DAVIES also unveiled ambitions to take the exchange’s mutual/ investment listings into the triple digits by year-end 2019, a goal it is only just short of, and “shoot for 100 or as many as we can get”. Revealing that BISX had first planned to start consultation on the proposed amendments in February, Mr Davies told this newspaper: “We do have some new rule changes that we are going to be proposing. “They’re not sweeping.
THE Water & Sewerage Corporation’s main supplier yesterday warned it expects a “significant improvement” in the state-owned utility’s repayment of $16.1m owing to it at end-February 2019. Consolidated Water, the BISX-listed reverse osmosis plant operator, revealed in financial disclosures that the government and Water & Sewerage Corporation have made virtually no progress in paying down the latter’s debt - some 75 percent of which was branded “delinquent”, or more than 90 days past due, at year-end 2018. The company, which supplies all the water that the Water & Sewerage Corporation distributes to its commercial and residential customers on New Providence, reiterated previous warnings that it “may have insufficient liquidity to continue operations” unless
ADRIAN GIBSON the state-owned enterprise (SOE) undergoes a rapid turnaround when it comes to paying its bills in full and on time. David Sasnett, Consolidated Water’s chief financial officer, yesterday blamed the sums owed to it by the Water & Sewerage Corporation for the
Tribune Business Reporter
nmckenzie@tribunemedia.net
SEE PAGE 4
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SEE PAGE 4
• Supplier again sounds operations alert • Sum owed ‘75% delinquent’ at end-2018 • Taxpayer pays $13m, but debt still same near-65 percent increase in the group’s total accounts receivables, which rose by almost $10m year-over-year to $24.228m He added that the situation in The Bahamas was also partially responsible for the 31 percent year-overyear decline in Consolidated Water’s cash position, which fell from $45.483m at endDecember 2017 to $31.337m some 12 months later. Still, Mr Sasnett said Consolidated Water, whose shares are held by local investors and traded on BISX via Bahamian Depository Receipts (BDRs), had received recent written assurances from the Ministry of Finance that the Government (meaning the Bahamian taxpayer) will pay what is owed. “With respect to our increase in accounts
By NATARIO MCKENZIE
receivables, it’s important to note that based on our recent correspondence with the Ministry of Finance we expect collection of our accounts receivables in The Bahamas to improve significantly in the coming quarters,” the chief financial officer told investment analysts. Consolidated Water’s form 10-K, filed yesterday with the US Securities & Exchange Commission (SEC), gave a further insight into the cash flow and liquidity difficulties created for the Nasdaqlisted company as a result of the Water & Sewerage Corporation’s inability to pay its bills without drawing on substantial Bahamian taxpayer support. Revealing that the sums
Mr Davies said the proposed BISX rules changes had resulted from “engagement” with the exchange’s members and listed issuers, and added: “We think some of these changes are timely and necessary to advance improvements in the market. “One deal with how information is disclosed to the public. We want to improve the timeliness and content of that disclosure.” Holland Grant, BISX’s chief operating officer, said one of the proposals involved no longer requiring listed equity stocks to publish their quarterly and annual financials in the newspaper, instead employing electronic means to meet their filing and disclosure obligations to shareholders and the investing public. “They go from trading rules changes to addressing
‘Big improvement’ needed on $16m Water Corp debt By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Exuma testing for digital B$ THE Central Bank’s governor yesterday said Exuma will be the first island where a digital Bahamian dollar is tested, unveiling plans to impose a ceiling on the value stored in mobile wallets. John Rolle, addressing the Central Bank’s second blockchain seminar, said: “To stay focused on the challenges that an archipelago poses, and to tackle gaps in access to services in remote communities, Exuma has been identified as the pilot community. The bank will also explore how to enlist other selected islands that have suppressed or no banking presence. “The digital representation of the Bahamian dollar will be identical to, and not a separate version, of the currency. It will align with all of the statutory rules that govern existing liabilities of the Central Bank; always exchanged at one for one with existing notes, coins and balances. The design will also incorporate best international practices around anti-money laundering and terror financing risks. Mr Rolle further explained: “Anonymity is not a feature. This framework will rely intimately on the national identify infrastructure when permitting users to hold and exchange digital money. At the onset, it will use Know Your Customer (KYC) and identity features incorporated into the system design, and adopt the wider public identity system as it becomes available. “A blockchain infrastructure has been proposed for the digital currency, with performance capabilities that would adequately satisfy the Central Bank’s requirements for swift processing of payments. This would not impose any change on the current ownership of the ACH (Automated Clearing House), which is by the commercial banks. “There will be an extensive public education process for all stakeholders potentially impacted by this transformation. Also, from the outset, this project will engage with banks and other payment services providers, so that interoperability standards can be perfected. There are important design features of a digital Bahamian dollar that are intended to
• To release proposed rule changes next week • Aiming to boost disclosure and reduce costs • Targeting over 100 fund listings by year-end Some of them are brand new in nature. Some are pretty technical; they are what I call in the weeds. Others are more structural, speaking to how things are processed through the exchange.” The BISX chief executive added: “All proposed rule changes will be placed on the website to inform the public, members and listed issuers. They will be able to make comments, and fee changes - everything - will be included there. There will be a 30-day period for people to comment. “What we want to encourage is that, what happens a lot of times, is you hear a complaint from third parties. We don’t have all the answers. We live in a stock exchange bubble. Persons outside the bubble have comments, concerns, and telling us will help us to do better. We want to here it.”
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MINISTRY OF TOURISM SLAMMED ON BEAUTY QUEEN ‘DISRESPECT’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A 50-YEAR music industry veteran yesterday slammed the Ministry of Tourism’s failure to treat a former Bahamian beauty queen with “fairness, dignity and respect” in their copyright battle. Ellis Rich, a music publishing entrepreneur and former Performing Rights Society (PRS) chairman, said he was unsure whether he would “ever truly understand” why the ministry had spent more than $500,000 in legal fees to crush Khiara Sherman’s claim as opposed to “treating one of its own citizens” properly from the start. Mr Rich, who has been retained as an expert witness by Ms Sherman, in a letter to the south Texas federal court rejected claims by the Ministry of Tourism and its attorneys that the recent
• Music expert ‘can’t understand’ Khiara treatment • Says her song has ‘better connection’ than Kravitz • Ministry ‘focusing too much on Lenny’s fame’
LENNY KRAVITZ
KHIARA SHERMAN
promotional contract with Grammy award-winning rock icon, Lenny Kravitz, was irrelevant to its dispute with the former Miss Bahamas Universe winner. Tribune Business revealed yesterday how the Ministry of Tourism’s attorneys were arguing against production of the licensing deal reached with
Mr Kravitz on the basis the commercial terms are “highly sensitive and confidential because this is an ongoing marketing campaign for The Bahamas”. They also argued that the gulf in status between Ms Sherman and the multi-platinum Grammy winner, who has sold millions of albums worldwide, meant the
licensing deal was simply inappropriate to help determine what the former beauty queen-turned-songstress should receive if the US court ruled that she was due royalties for use of her song, Fly Away With Me, in the Ministry of Tourism’s advertising campaigns. Mr Rich, though, countered that the terms of the Ministry of Tourism’s deal with Mr Kravitz were “highly relevant to determine a fair market licensing fee” for Ms Sherman’s song given that the two works were both used for the same purpose - to promote The Bahamas to visitors via the same mediums in the US.
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H
AVE you ever been bullied? It is not fun. Bullying usually occurs when someone stronger and larger perceives their target to be weaker and smaller. In financial services, The Bahamas has been bullied for decades by the European Union (EU) and Organisation for Economic Co-Operation and Development’s (OECD) repeated blacklists, using the platform of correspondent banking to leverage their attacks on Bahamian sovereignty. In joining the World Trade Organisation (WTO), The Bahamas is likely to be bullied by WTO member states in the accession process. And, once The Bahamas joins the world’s rules-based trade enforcer, as with financial services the WTO platform will likely provide its larger members with the the leverage to bully this nation in the future. The Bahamas is susceptible to bullying by WTO member states because of a lack of demand for The Bahamas’ small consumer population; the lateness with which The Bahamas is joining the WTO; and, finally, due to the perception that our negotiating team is desperate to join and inexperienced in dealing with international trade matters. EVIDENCE OF WTO BULLYING Evidence that The Bahamas is possibly being bullied by WTO member states is that the bar is being raised for entry, requiring this nation to make greater concessions in opening services industries to foreign firms from these countries when compared to others who joined earlier. In the recent Bahamas Bar Association meeting on WTO accession, Bahamian attorneys were informed that The Bahamas offered to open mode one and mode two, and keep mode three and mode four “restricted”, in its initial legal services offer. The mode one and mode two forms of supply are not controversial because
Walk away from WTO in absence of equality By DAVID F ALLEN JR LLM - International Comparative Business Law Bahamas Law Chambers
they do not change the status quo; they provide for WTO member states to use Bahamian law firms, and Bahamians to use WTO member states’ law firms, in their respective jurisdictions. However, it appears that The Bahamas may be going further than the position outlined by lifting restrictions on mode three, which deals with the ability of foreign law firms to establish a physical presence in this nation. Few countries have lifted restrictions on mode three in legal services. This form of supply enables any attorney or law firm from the 164 WTO member states to “open shop” in The Bahamas. What is more, these WTO member state law firms would have to receive the same treatment as Bahamian law firms from the government. Can you imagine? All of a sudden, a flood of Jamaican and Haitian law firms could enter The Bahamas, and there would be nothing we could do about it. (Editor’s note: Zhivargo Laing, The Bahamas’ chief WTO negotiator, told Tribune Business on Monday it was “absolute nonsense” to suggest this nation was readying to open the legal profession to commercial presence by foreign firms. He said this position had been made clear to the Bar Association, WTO and member states who are part of the working group that will negotiate this nation’s accession terms). The few limits to mode
services in this manner would almost certainly lead to direct competition between Bahamian law firms and foreign law firms (Haitian, Jamaican, Trinidadian and Guayanese) attempting to poach Bahamian clients. WE ARE LATE TO THE WTO GAME
three imposed in the revised Bahamas WTO offer on legal services are that foreign law firms can only practice public international law and the law of their home nation. How can these limitations be enforced? Once these law firms move here, it will likely be impossible to determine if they are trading and practicing in Bahamian law. Further, the legal system of English-speaking Caribbean countries is based on the English common law system, so it would be very tempting for them to advise on Bahamian legal matters. WTO MEMBER STATES HAVE NO INTEREST IN OUR MARKET FOR GOODS Why is The Bahamas in such a weak negotiating
position in joining the WTO? Why are we likely to be bullied? The WTO’s main purpose is to facilitate the trade in goods between nations. The trade in goods is most profitable when it involves large consumer populations. The Bahamas’ small 300,000400,000 consumer base is quite uninteresting to most industrial nations, due to the small margins and poor economies of scale involved. Their focus is on our service industry, which has much higher margins and access to wealthy clientele. The Bahamas has many very wealthy residents. Our services industries are also tempting due to our proximity to the US, and a currency pegged to the US dollar, which many of our southern neighbours would wish to be paid in. It has been announced that only eight WTO member states have raised queries over The Bahamas initial goods and services offers. It also appears that these few WTO member states are more interested in access to our services than goods. Opening legal
The majority of Caribbean nations joined the WTO in 1995, some 24 years ago. Because The Bahamas is attempting to join the WTO more than two decades after they did, these nations likely will not make it easy for us to accede. It was cheaper to buy property 20 years ago than today. Our Caribbean neighbours likely feel that we should have a more difficult time acceding to the WTO than they did because we waited so long to join. The end result is that our negotiating team will be faced with bullying by WTO member states. The Bahamas likely will be bullied to open services sectors that other WTO member states were not required to open. WE APPEAR DESPERATE TO JOIN THE WTO Whether due to losses sustained in financial services as a result of the EU’s constant blacklisting, a fall in VAT receipts, or stagnant economic growth, it is clear that the Bahamian government is now desperate to join the WTO. The avalanche of WTO press conferences, talk radio shows, news reports and meetings with industry insiders over the last few months points to desperation. Desperation is the worst position to negotiate from, and increases the likelihood of being bullied to accept a bad deal.
THE TRIBUNE At the Bahamas Bar Association meeting on WTO, I asked the panel representing The Bahamas if they had experience and advanced degrees in international trade. I myself hold an LLM in International Comparative Business Law. I did not ask this question to be rude, but to ensure that The Bahamas is represented by experts in the industry. International trade is one of the more complex areas of law, and without advanced degrees and experience in this area one can lose one’s shirt or, in this case, one’s country. In the case of mode four, it is clear that countries such as India are pushing for mode four to be defined more broadly to allow professionals to move between WTO member states. The evolutionary trajectory of mode four suggests that mode four may be used for the movement of people between WTO member states in the near future. CONCLUSION The Bahamas must not be bullied. Our negotiating team should hire the best, most veteran WTO experts to advise them. They should not take free advice from our southern Caribbean neighbours because there is a clear conflict of interest. The danger of opening the Bahamian legal services industry using WTO’s mode three is that it will give the government almost no control over the quality of law firms that enter, and the law they practice once they arrive. If The Bahamas does wish to some day open its Bar to foreign firms, it should do so outside of the WTO context so it can limit entry to only the most qualified and reputable foreign law firms from select, elite jurisdictions. In the WTO negotiations, The Bahamas is likely being bullied into losing control over important sectors of its service economy. If the deal is not right or on parity with other WTO member states’ goods offerings, The Bahamas should walk. It should not open its service sectors to WTO member states, where it has little control over the quality of those who enter. The Bahamas is far too blessed a nation to allow itself to be bullied into accepting a bad deal in the WTO accession process.
COMMONWEALTH OF THE BAHAMAS IN THE SUPREME COURT Common Law & Equity Division BETWEEN FAIRNESS LIMITED
2018 CLE/gen/01223
AND GREGORY CHIPMAN
Plaintiff
Defendant
SUMMONS LET ALL PARTIES CONCERNED attend before the Hon. Justice Diane Stewart one of the Honourable Justices of the Supreme Court of the Commonwealth of The Bahamas on Monday, the 1st day of April A.D., 2018 at 10 o’clock in the forenoon upon the hearing of an application on the part of the Plaintiff for an Order to discharge the Interlocutory Injunction Order made against the Plaintiff issued on the 5th day of December, A.D., 2018 and filed herein on the 19th day of December, A.D., 2018 which said Order restrained the Plaintiff and/or its agents and/or its employees from entering onto the disputed parcel of land situated in the Western district of the Island of New Providence containing 9.685 acres, 2.057 acres and 9,787 square feet respectively of land being a portion of a larger tract of land known as “The Retreat” until after the trial of this action or further order and that provision may be made for the costs of this application. DATED this 14th day of March, A.D., 2018 BY ORDER OF THE COURT REGISTRAR SHARON WILSON & CO. Delvest House Shirley Street East at Highland Terrace Nassau, Bahamas Attorneys for the Plaintiff This Summons was taken out by SHARON WILSON & CO of the said City of Nassau, whose address for service is their Chambers situate at Delvest House, East Shirley Street at Highland Terrace, in the Island of New Providence, The Bahamas, Attorneys for the said Plaintiff.
THE TRIBUNE
Tuesday, March 19, 2019, PAGE 3
GOVT SEEKS TO REPLICATE 925KW SOLAR CAR PARK By NATARIO MCKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net A CABINET minister yesterday pledged the government will be “aggressive” in going after its renewable energy targets following the $4m unveiling of this nation’s first utilityscale solar project. Romauld Ferreira, minister of the environment and housing, told Tribune Business that the Minnis administration was keen to replicate the 925 kilowatt (kW) solar car park at the Thomas A Robinson National Stadium elsewhere in The Bahamas. “The issue is always the budget,” he said. “We spend a lot of time looking for available grant money. We are grateful to the Government of the United
ROMAULD FERREIRA Arab Emirates for funding this, and we’re looking for more, and so next up is Anatol Rodgers. “Then the car park at the Prime Minister’s Office, and then the prime minister foreshadowed Ragged Island. We will not stop. We are going to be aggressive in implementing the
goals of renewable energy because we understand that in order to bring the cost of electricity down we need a renewable energy injection into the energy matrix.” The solar photovoltaic (PV) carport power plant was developed using the $50m United Arab Emirates (UAE)-Caribbean Renewable Energy Fund (CREF). Financed by the Abu Dhabi Fund for Development (ADFD), the UAE-CREF is a partnership between it, the UAE Ministry of Foreign Affairs and International Cooperation (MOFAIC), and Masdar (Abu Dhabi Future Energy Company). It is estimated that the 925 kW solar array will displace an estimated 310,000 litres of diesel fuel per year, saving the government and Bahamas Power
& Light (BPL) around $350,000 and offsetting 856 tonnes of carbon dioxide annually. The project is also designed to withstand winds of up to 160 miles per hour. The solar car port has 152 parking spaces, including two that have fast-charging for electric vehicles. Mr Ferreira, meanwhile, added: “It’s important for the cost of energy to be reduced to grow the economy and create more jobs. It’s also important to our energy security for us to diversify. We can’t just be dependent on diesel and Bunker C. “It’s not wise because then we are dependent on the whims of the market economy. The price of oil, even though it trends down, it usually goes up. With the price of energy being tied to
the price of oil it means the price of all goods and services will go up.” The Cabinet minister stressed that the Minnis administration was “determined and committed” to bringing down the cost of energy. “That is how we are going to reduce the cost of living and create more employment opportunities,” he added. “If businesses and potential investors have to pay less on energy, they can invest more in people. This is the long-term vision in terms of what we hope to do.” Mr Ferreira said the government has incentivised renewable energy’s rollout by eliminating the duty on solar kits, which represent all the equipment needed to install a solar PV system. “That’s the biggest incentive. Nothing in
renewable energy or the environment is going to work unless the financing is right,” he added. “We are also working to make sure that potential investors have access to capital. The structure at the stadium is $4m, and that is a significant capital outlay. At the same time we appreciate that we have to make those linkages between the lending institutions and renewable energy. That is what we have been working to do. “It’s been challenging but we have not given up. That is part of the aggressive approach that we want to take to be impactful in the lives of Bahamians. We can’t cower in a corner but must bravely go forward to impact the quality of life for Bahamians.”
Govt agencies ‘must speak to each other’
‘FILL THE GAPS’ ON DIGITAL PAYMENTS
By NATARIO MCKENZIE
nmckenzie@tribunemedia.net
Tribune Business Reporter
nmckenzie@tribunemedia.net A CABINET minister yesterday admitted the inability of government agencies “to speak to one another” is undermining public sector efficiency, branding their planned digital transformation as “essential”. Senator Kwasi Thompson, pictured, minister of state for Grand Bahama, told the Central Bank’s second annual blockchain seminar that a unit has been established in the Prime Minister’s Office to oversee the digitisation of government services and boost the country’s competitiveness. “An IDB (Inter-American Development Bank) loan in the amount of $30m has been approved for the digitisation process by the House of Assembly, and it is anticipated that the signing ceremony will take place in a few weeks,” said Mr Thompson. “Currently there is an online presence of 400 services. Notice I said online presence. That is, you can obtain the forms online. Fifteen of the 400 are actually online services, but may still require you visiting more than one site. For the other services, which are greater than 400, you are required to physically visit an office more than once. Vital documents required for most major transactions – opening
a bank account, applying for a job, buying and selling a house - may take anywhere from two weeks to upwards of six weeks. Mr Thompson added: “Many ministries are making strides in digitisation like the Ministry of Education, which is making computers available to all of its teachers and students throughout all public schools; the Office of the Attorney General and Ministry of Legal Affairs, which has begun training on a case management application; the Ministry of Labour, which has a job seekers application; and the Ministry of Finance, which has been getting much praise for its online services at the Department of Inland Revenue and is in the process of implementing a new financial management package including for procurement. And so it goes on. “The issue is that these are created in silos to various requirements, standards and ICT (information and communications technology) policies, which lessens their ability to become interoperable or to speak to each other. Our government ministries, departments and offices must begin to digitally speak to each other.” “We want to better connect government to the people,” continued Mr Thompson. “The IDB project will streamline Government procedures, making them available online, digitise government back office
By NATARIO MCKENZIE
Tribune Business Reporter
processes used by public officers and front office processes for the delivery of the service to the public, and increase the transparency of government activities and strengthen audit and control mechanisms - all in a secure environment. Government’s counterpart funding will include the preparation of the databases for interoperability, and the education and retraining of the public officer.” Mr Thompson said the project is intended to create a single window facility; an electronic or mobile identification card with biometrics for security coupled with an electronic signature; interoperability for transporting data securely between the relevant agencies and the user or citizen; cybersecurity; and a once-only concept, where once one government agency has the information no other agency can ask for ownership of that data. “This transformation will not be easy or without its challenges. It will require strong political will and require leadership by example,” said Mr Thompson. “Transformation through digitisation is neither an option nor a goal. It is essential and it is an ongoing process.”
COMMONWEALTH OF THE BAHAMAS IN THE SUPREME COURT Common Law and Equity Division BETWEEN
2018 CLE/gen/01223
FAIRNESS LIMITED AND GREGORY CHIPMAN
Plaintiff Defendant
ORDER BEFORE the Honourable Madam Justice Diane Stewart, Honourable Justice of the Supreme Court of The Commonwealth of The Bahamas DATED this 14th day of March, A.D., 2019 UPON APPLICATION by way of Summons filed on the 14th day of March, A.D., 2019 AND UPON READING the Affidavit of Quinton Rolle filed on the 14th day of March, A.D., 2019 AND UPON HEARING Keith Bell of Counsel for the Plaintiff IT IS HEREBY ORDERED that:i)
The Plaintiff shall be at liberty to serve the Defendant with a copy of the Summons filed herein on the 4th day of February, A.D., 2019 and the Summons filed herein on the 14th day of March, A.D., 2019 and all other relevant pleadings, Judgments and Orders by way of substituted service; or
ii) The Plaintiff shall be at liberty to serve the Defendant with a copy of the Summons filed herein on the 4th day of February, A.D., 2019 and the Summons filed herein on the 14th day of March, A.D., 2019 and all other relevant pleadings, Judgments and Orders by way of substituted service by advertisement once in each of The Tribune and The Nassau Guardian at a seven (7) day interval. BY ORDER OF THE COURT REGISTRAR This Order was drawn up by SHARON WILSON & CO, Delvest House, East Shirley Street at Highland Terrace, Nassau, Bahamas, Attorneys for the Plaintiff.
A SENIOR commercial bank official yesterday said “there is a huge opportunity” for start-ups and entrepreneurs to “fill the gaps” created by the switch to electronic payments. Andrew Pike, Fidelity Bank (Bahamas) chief technology and operations officer, told the Central Bank’s second annual blockchain seminar that sectors such as bill aggregation were ripe for third-party vendors to develop their skills. He acknowledged, though, that the Bahamian payments system still has much distance to travel in transitioning away from its traditional reliance on cash transactions to electronic and digital commerce. “The majority of payments in The Bahamas are done by cash,” Mr Pike conceded. “The biggest
challenge that we have is trying to move people away from cash and making payments online. The problem is that a lot of interfaces between the companies are still very manual. Ensuring an end-to-end system of making payments is critical. “We may think the app is easy to use or that online banking is easy, but some of our customers are challenged with those. This week we will deploy tablets in the branches where persons can come in and play with our online app, play with online banking, even log in themselves and we can show them how to complete transactions. “I think there is a huge opportunity for businesses such as bill aggregators. There is a huge opportunity for small start-ups to look at those spaces and fill the gaps. As a bank it’s very time consuming for us to go out to every vendor and build interfaces. If a third party would build it
we would definitely buy it.” Julian Rolle, managing director of Cash N’ Go, said digitisation can provide significant benefits to money transfer firms by improving how they collect money from customers and remit payments to vendors. “When you live in New Providence, people take for granted that there are places you can go to pay for services,” he said. “When you go to the Out Islands it’s much more difficult.” Businesses “only have a certain window within the day during which they are able to do money transactions. We need to move cash securely from one location to the next”.
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PAGE 4, Tuesday, March 19, 2019
THE TRIBUNE
‘Big improvement’ needed on $16m water corp debt FROM PAGE ONE owed had nearly doubled year-over-year, increasing by 93.4 percent, the BISXlisted reverse osmosis supplier said: “Consolidated Water (Bahamas) accounts receivable balances due from the Water & Sewerage Corporation amounted to $17.6m as of December 31, 2018, as compared to $9.1m as of December 31, 2017. “Approximately 75 percent of the December 31, 2018, accounts receivable balance was delinquent as of that date. The increase in these accounts receivable has adversely impacted the liquidity of this subsidiary.” Consolidated Water acknowledged that such delays were nothing,
as the Water & Sewerage Corporation has a long track record of late, partial payments, and that the total sums owed to it in the past have at times been as high as the present bill. Expressing confidence that the Bahamian taxpayer will again come through to bail-out the Water & Sewerage Corporation, it added: “During these periods, we arranged meetings and held discussions with representatives of the Water & Sewerage Corporation and the government to formulate a payment schedule for Water & Sewerage Corporation’s delinquent accounts receivable, and such amounts were subsequently paid in full. “Based upon this payment history, we have never
been required to provide an allowance for doubtful accounts for any of Consolidated Water (Bahamas) accounts receivable, even though Consolidated Water (Bahamas) periodically has been owed substantial delinquent balances. We believe Consolidated Water (Bahamas) accounts receivables will ultimately be collected in full based upon our history with The Bahamas’ government.” Providing evidence to support its conclusion, Consolidated Water confirmed that the government has stepped in to pay down the multi-million dollar debt mountain. It said: “Consolidated Water (Bahamas) received approximately $5.6m in payments
LYNDEN PINDLING INTERNATIONAL P.O. BOX AP-59222 NASSAU, BAHAMAS
The Airport Authority is seeking to recruit suitably qualified Bahamians to fill the following position:
SURVEILLANCE OPERATOR Applicants must possess an Associates Degree in Business Administration from an accredited educational institution. Or the applicant must have a minimum three (3) years’ experience in the related field. The applicant must exercise the utmost degree of confidentiality. The applicant should be self-motivated and be able to work in a high demand environment. The successful applicant will report to the Surveillance Manager and Surveillance Supervisors. The salary for the position is commensurate with qualification and experience. Qualified applicants must submit their resumé and copies of academic certificates along with three letters of reference no later than Friday, March 22nd, 2019. Sealed envelopes should be addressed as follows: ATTENTION: SURVEILLANCE POSITION Manager, Human Resources The Airport Authority Lynden Pindling International Airport P.O. Box AP-59222 Nassau, Bahamas
on its accounts receivable in January 2019, and as of February 28, 2019, its accounts receivable balance from the Water & Sewerage Corporation was approximately $16.1m. “On March 12, 2019, Consolidated Water (Bahamas) received approximately $1.4m in payments on its accounts receivable along with correspondence from the Ministry of Finance which acknowledged the receivable balance and stated that payment in full of all outstanding amounts is anticipated in due course.” The figures, though, suggest that the government has to-date merely been nibbling at what is owed, and that it - and the Bahamian taxpayer - are having to sprint just to stay in the same spot. For the $16.1m owed to Consolidated Water is exactly the same amount that was due at end-September 2018, when the issue of the outstanding debt first emerged. This is despite the fact that, in addition to the $7m paid to Consolidated Water for 2019 to-date, the government’s “snapshot” for the first half of the fiscal year shows a further $6m being paid to the BISX-listed operator of the Blue Hills and Windsor plants as part of the wider pay-off of $6m in unfunded arrears. In other words, the payment of $13m to Consolidated Water over the past nine months appears to have made little dent in the Water & Sewerage Corporation’s debt to it. It thus appears that Bahamian taxpayers face an ever-increasing burden to settle this bill, with the payments in effect representing a wealth transfer from all taxpayers for the benefit of the Water & Sewerage Corporation’s customers. Consolidated Water’s 10-K filing also now lists its relationship with the Water & Sewerage Corporation as a “material risk factor” that shareholders and the global capital markets need to be aware of, given the ongoing problems in collecting on an eight-figure debt. This issue
is compounded by the fact that its long-term deal with the SOE accounts for more than one-third of annual revenues. “Our Bahamas subsidiary is experiencing substantial delays in the collection of its accounts receivable,” Consolidated Water said. “If these collections do not improve significantly, our Bahamas subsidiary may have insufficient liquidity to continue operations, and our consolidated results of operations could be materially adversely affected. “If the Water & Sewerage Corporation continues to be significantly delinquent in paying Consolidated Water (Bahamas) invoices, then in the coming months one or more of the following events may occur. Consolidated Water (Bahamas) may not have sufficient liquidity to meet its obligations without new funding from its shareholders; we may be required to cease the recognition of revenues on Consolidated Water (Bahamas) water supply agreements with the Water & Sewerage Corporation; and we may be required to provide an allowance for doubtful accounts for Consolidated Water (Bahamas) accounts receivable. Any of these events could have a material adverse impact on our results of operations, financial position and cash flows.” It is unclear what would happen if Consolidated Water reaches the point where it would have “insufficient liquidity” to continue operations or meet its obligations, although its sole business is producing water for its only customer - the Water & Sewerage Corporation “A significant portion of our consolidated revenues are derived from our water supply agreements with the Water & Sewerage Corporation,” Consolidated Water added. “The loss of, or a less favourable relationship with, the Water & Sewerage Corporation could adversely affect us. “One bulk water customer, the Water & Sewerage
Corporation, accounted for approximately 35 percent of our consolidated revenues for the year ended December 31, 2018. If, for financial or other reasons, the Water & Sewerage Corporation does not comply with the terms of our water supply agreements, our results of operations, cash flows and financial condition could be adversely affected.” Adrian Gibson, the Water & Sewerage Corporation’s executive chairman, did not directly address Tribune Business’ request for comment yesterday. This newspaper contacted him in a bid to determine the utility’s strategy for getting back on track with its bill payments, how its bid to collect $45m said to be owed by its own delinquent customers was going, and whether any of these monies collected were being used to repay Consolidated Water. It instead received a message from Mr Gibson detailing how the tenders for the Caribbean Development Bank (CDB) financed water supply improvement project in Long Island, and “scope of works” for Crooked Island, closed yesterday. “This is all part of the government’s strategy to improve our country’s infrastructure and, in this case, to provide potable water supply to the southern/southeastern islands of The Bahamas,” Mr Gibson enthused. “ “This is the first time that such a comprehensive plan has been rolled out and executed, and is part of a larger strategy to provide water throughout the entire Bahamas... Water & Sewerage Corporation will leave no stone unturned to improve both its coverage and operating efficiency, including the introduction of renewable energy at our production plants/offices to reduce electricity costs. “We have advanced plans to purchase an asphalt recycler and other machinery to improve the quality and timeliness of our road reinstatement efforts.”
BISX: We’ll make it cheaper to go public
We’re always looking at the market to see whether we can improve and how we can reduce the time to market so companies can get information but not increase the cost of being public. “Going public is not something someone does because it’s a good idea or it’s going to benefit you as the exchange. It’s going to benefit them because they can access capital cheaper by going public than by some other route. Companies have no obligation to go public. People need to
remember that.” Out of 140 total listed securities on BISX, around 89 are investment funds, and Mr Davies expressed the stock exchange’s ambition to break through the threefigure barrier by end-2019. “I want over 100. That is or goal,” he told Tribune Business. “We’re going to shoot for the number of 100plus. That does not mean we will settle for 100. If we can get 100, 200 more we will go for it. We are definitely pushing to stimulate listing activity.”
FROM PAGE ONE very technical points when it comes to listing rules and technical obligations,” he told Tribune Business. “They’re about making it easier to be public and that’s where the focus is.” Mr Davies added: “We’re still looking at other elements we want to update. Rules changes and comments are continuous.
THE TRIBUNE
Tuesday, March 19, 2019, PAGE 5
Ministry of Tourism slammed on beauty queen ‘disrespect’ FROM PAGE ONE Accusing the Ministry of Tourism of “focusing far too much on Mr Kravitz’s fame”, Mr Rich even argued that Ms Sherman’s song was “a far better connection” with the Bahamian tourism product than the rock icon’s work, and that “you can almost feel the sand between your toes” when you listen to it. Mr Rich, who has owned his own music publishing house since the 1980s, having formerly worked at EMI, said he has previously given copyright seminars in the Caribbean with Stevie Wonder’s European manager and been involved with licensing negotiations for groups such as Blondie and Little River Band. “I agreed to serve in this case at a substantially discounted rate,” he told Judge Nancy Atlas, “because I believe that Ms Sherman has not been treated by The Bahamas Ministry of Tourism with the fairness, dignity or the respect she deserves. “Speaking with Ms Sherman, you would never know that she comes from what I understand is one of the poorest neighbourhoods in Nassau (Culmersville). She was raised by a single mother, the first in her family to graduate university, and she came to the US in hopes of making a better life for her and her family... “Perhaps the most tragic part of this lawsuit, from a human perspective, is that Ms Sherman clearly loves The Bahamas with a deep
Exuma testing for digital B$ FROM PAGE ONE
reflect the Central Bank’s role as a sponsor of financial sector development. “This is essentially a public good that is being provided. Geographic fragmentation cannot assure that the private sector, acting alone, would achieve the level of inclusion and access which all communities in The Bahamas deserve.” Mr Rolle affirmed that the digital Bahamian dollar is intended to complement, and not replace, existing banking services. “Its use will be optimised when persons in remote communities are able to deploy it to establish and maintain deposit accounts and other services at banks,” he said. “Those who use Central
and uncompromising passion,” Mr Rich continued. “Why the Ministry would pay its American lawyers more than half a million dollars in legal fees, rather than simply treat one of its citizens with dignity and respect from the outset, is something that I am not sure I will ever truly understand. “I find many of the statements by the ministry’s lawyers to be an affront to Ms Sherman’s dignity as an artist. Far from being unknown, Ms Sherman is well-known in the Caribbean and was named Miss Bahamas in 2009. Her songs are played on Bahamian radio several times per day. She has more than 100,000 followers on social media. Her songs posted to YouTube have hundreds of thousands of views.” Based on his 50-year music industry career, and experience in the Caribbean, Mr Rich argued that the license deal between the Ministry of Tourism and Mr Kravitz was “highly relevant to determining a fair market licensing fee” for its alleged unauthorised use of Ms Sherman’s Fly Away With Me song. He added that the fact both tracks were used to promote tourism, via the same mediums and in the US, were an important guide to determining what the ex-beauty queen may be due if the Texas court found in her favour. “The ministry focuses far too much on Mr Kravitz’s fame as compared to that of Ms Sherman,” Mr Rich
argued. “Mr Kravitz obviously commands a premium for his outstanding work and accomplishments. “However, a licensing fee depends largely on the purpose of use, the medium and the unique connection of the song to the intended product. While Mr Kravitz is clearly more internationally famous, I find Ms Sherman’s song to be a far better connection between the intended product (tourism in The Bahamas) and the tone, tense and soul of Ms Sherman’s Fly Away With Me.” He told the judge: “I trust that when you hear it you will agree with me that you can almost feel the sand between your toes when you listen to it. These two factors counter-balance each other and make a focus on fame alone misplaced.’ Mr Rich said that while Ms Sherman would “probably command a smaller licensing fee than Mr Kravitz, even considering the more desirable nature of Ms Sherman’s song itself, that does not mean that her fee would be small or that an agent negotiating on her behalf would not use the Kravitz license as a guide during negotiations”. He added that the fee paid to Mr Kravitz would “unquestionably” help the south Texas court determine what was due to Ms Sherman, as well as inform his witness testimony including the deposition he will give to the Ministry of Tourism’s attorneys next Friday, March 29, in New York.
Bank-sponsored digital wallets would not see their funds treated as interest bearing deposits. However, the Central Bank will explore future innovations that would allow mobile wallets holders to invest in government securities. While it would be possible to maintain mobile wallets independent of a bank account, the Central Bank intends to impose a ceiling on how much digital currency could be maintained in mobile wallets. “High volume use will require a pass through flow of funds to personal bank accounts,” the governor continued. “Business accounts would always fit this profile. The wallet’s integration with commercial banks or other licensed entities would be required in order for account holders to have access to foreign exchange services. “The interoperability feature means that the digital Bahamian dollar would
be available for use across all payment platforms, and within existing or proposed wallets of private services providers and financial institutions. Although the consumer public would have the default option of establishing a wallet account with the Central Bank, they would be enabled to use the currency within any product developed by regulated private wallet providers.” Mr Rolle said that over time it was expected that the Central Bank will play a diminished role in providing front-end solutions. “At the policy level, the Central Bank is also putting emphasis on a system that would allow for effective maintenance of monetary and financial stability, safeguards to ensure aggregate stability in the deposit base of commercial banks, data privacy and data sovereignty for consumers, and an aggressive cyber security posture,” he said.
Transaction costs ‘slowing’ electronic payments switch FROM PAGE ONE
An annex to the Central Bank governor’s address described the Bahamian payments system as “continually evolving”, confirming that there was now a continual shift towards electronic banking and out-of-branch services. “Both consumers and businesses are using these electronic options in increasing numbers,” it said. “In 2017, 56.8 percent of commercial banking branches were located in the capital, while the remaining 43.2 percent could be found in the Out Islands. This still reflects diminished access. “Regarding access to ATM terminals, 71.5 percent were in New Providence, 13.8 percent in Grand Bahama and the remaining 14.6 percent were in the Family Islands. Under electronic payments activity between 2013 and 2017, payment card usage rose by 138 percent and 203.2 percent respectively, with equally impressive growth in
the number of merchant terminals able to process such payments. There has also been a significant increase in the use of online banking by both consumers and businesses.” Data produced by the Central Bank showed that debit card payments had increased in volume from 1.353m transactions in 2013 to 3.222m in 2017, while the trend for credit cards saw a rise from 275,855 transactions in 2013 to 836,461 by the latter year of the same period. There was also a near-seven fold increase in stored value card transactions over those five years to 105,010. Residential electronic banking users almost tripled, too, increasing from 29,252 to 85,261 over the 2013 to 2017 period. Elsewhere, the volume of cashless instrument transactions jumped from 4.759m in 2013 to 7.067m in 2017. Mr Rolle, meanwhile, said The Bahamas needed to push for improved awareness surrounding electronic payments, adding that its 2018 financial literacy survey showed “just above 90 percent of the respondents had knowledge of savings
accounts and debit cards, but only about 80 percent of persons having a savings account. “Only about 70 percent of these individuals made use of a debit card. Less than half of all respondents used a credit card, and only about one-third of all respondents made use of checking facilities.” The Central Bank governor added: “The payment system modernisation initiative (PSMI) provides both the incentive and means to spur more widespread adoption of electronic payments, and to enable greater access to digital financial services. Transactions cost reduction must also be measurable. “Ultimately, this means approaching 100 percent access to digital services, full possible access to banking services of a deposit maintenance nature, and fully enabled embrace of electronic payments capabilities. Reducing the size of legitimate but unrecorded economic activity will also be necessary, and micro, small and mediumsized businesses will need to be admitted into the digital space.”
COMMONWEALTH OF THE BAHAMAS IN THE SUPREME COURT Common Law & Equity Division BETWEEN
2018 CLE/gen/01223
FAIRNESS LIMITED AND GREGORY CHIPMAN
Plaintiff
Defendant
SUMMONS LET ALL PARTIES CONCERNED attend before the Hon. Justice Diane Stewart one of the Honourable Justices of the Supreme Court of the Commonwealth of The Bahamas on Monday, the 1st day of April A.D., 2019 at 10 o’clock in the forenoon upon the hearing of an application on the part of the Plaintiff pursuant to Order 27 Rule 3 of the Rules of the Supreme Court of The Bahamas for an Order that Fairness Limited by virtue of its Lease dated the 1st July, 2018 with Harmony Homes Limited is entitled to possession of the parcels of land situated in the Western district of the Island of New Providence containing 9.685 acres, 2.057 acres and 9,787 square feet respectively being portions of a larger tract of land known as “The Retreat”, that the said parcels of land are the property of Harmony Homes Limited and that the defendant bear the costs of this application. DATED this 4th day of February, A.D., 2019 BY ORDER OF THE COURT REGISTRAR SHARON WILSON & CO. Delvest House Shirley Street East at Highland Terrace Nassau, Bahamas Attorneys for the Plaintiff This Summons was taken out by SHARON WILSON & CO of the said City of Nassau, whose address for service is their Chambers situate at Delvest House, East Shirley Street at Highland Terrace, in the Island of New Providence, The Bahamas, Attorneys for the said Plaintiff.
THE TRIBUNE
Tuesday, March 19, 2019, PAGE 7
Energy companies lead modest gains for US stock indexes By STAN CHOE AND ALEX VEIGA Associated Press US STOCK indexes finished modestly higher yesterday, extending the market’s solid gains from a rally last week. Energy companies notched the biggest gains after the price of US crude oil closed above $59 a barrel for the first time since November. Smaller company stocks fared better than the rest of the market. Financial, consumer goods and technology stocks accounted for much of the gains. Goldman Sachs rose 2.1 percent, Advance Auto Parts climbed 4.4 percent and Microsoft added 1.4 percent. Those gains outweighed losses in communications and health care sector companies. Facebook slid 3.3 percent and Boston Scientific dropped 5.6 percent. Stocks were riding the momentum from last week, when the S&P 500 resumed its torrid start to the year following a brief, five-day stumble. The index is back to within 3.5 percent of its record high, set in September, after clawing back all of its terrifying drop from December. The market’s latest gains come as investors wait for a resolution of the costly trade war between the US and China. After several weeks of negotiations, it’s not clear how close the two sides are to an agreement. A meeting between President Donald Trump and Chinese leader Xi Jinping to formalise a deal might be pushed back to June, according to some news reports. Traders were also looking ahead to the Federal Reserve’s next interest rate policy update tomorrow. “In many ways, the market is in limbo,” said Sam Stovall, chief investment strategist at CFRA. “And in the meantime, (investors) are waiting for some sort of agreement on the trade talks as well as the Fed.” The S&P 500 gained 10.46 points, or 0.4 percent, to 2,832.94. The benchmark index is now up 13 percent for 2019 so far, which is a bigger gain than it’s had in four of the last five full years. The Dow Jones Industrial Average rose 65.23 points, or 0.3 percent, to 25,914.10. The Nasdaq composite added 25.95 points, or 0.3 percent, to 7,714.48. The Russell 2000 index of
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TRADER Michael Milano works on the floor of the New York Stock Exchange. smaller-company stocks picked up 10.39 points, or 0.7 percent, to 1,563.93. Major stock indexes in Europe finished mostly higher. US stocks have had a strong showing this year, with all the major indexes showing a gain of at least 11 percent. One key to the recent rally has been the belief that the Federal Reserve will slow its pace of increases for interest rates. The worry in December was that the central bank would raise rates too fast in the face of a slowing global economy and choke off growth. The Fed will meet to discuss interest-rate policy this week, with an announcement scheduled for tomorrow, but economists expect it to announce no change to rates. “The expectations are that the Fed won’t do anything in the first half of the year,” Stovall said. Some economists say the Fed could release documents tomorrow that would suggest one rate increase in 2019, or possibly zero, after the Fed raised rates four times in 2018 and three times in 2017. Perhaps more important is what the Fed says about its vast trove of bonds. The central bank bought trillions of dollars of bonds after the 2008 financial crisis to keep interest rates low and support markets, but it’s been slowly letting some roll off as they mature. Investors want to know how much the Fed will ultimately hold onto, and how long it will take to get there. Yesterday’s upward swing in oil prices came after OPEC cancelled a meeting that had been scheduled for next month. The move means that a production cut imposed by the oil cartel in January remains in place, at least until the cartel agrees to meet again. Benchmark US crude oil rose one percent to settle at
$59.09 a barrel, while Brent crude gained 0.6 percent to close at $67.54 a barrel. Energy stocks got a boost from the pickup in oil prices. National Oilwell Varco jumped 6.2 percent, Halliburton gained 3.2 percent and Marathon Petroleum rose 2.7 percent. Investors also bid up shares in Worldpay after Fidelity National Information Services agreed to buy the payment processor for about $35bn in stock and cash. Including Worldpay’s debt, Fidelity National valued the deal at $43bn. Worldpay’s US-listed shares jumped ten percent. Fidelity National, also called FIS, slipped 0.7 percent. Edwards Lifesciences vaulted 6.2 percent for the biggest gain in the S&P 500 after it said patients in a trial using an expandable valve had better results than those who had standard open-heart surgery. Boeing fell further as the investigation continues into two recent deadly crashes of its 737 Max 8 plane model. Preliminary information shows clear similarities between the two. The stock declined 1.8 percent, following its 10.3 percent loss last week. Bond prices fell. The yield on the ten-year Treasury rose to 2.61 percent from 2.59 late on Friday. The dollar fell to 111.41 Japanese yen from 111.48 yen on Friday. The euro strengthened to $1.1338 from $1.1320. Gold fell 0.1 percent to $1,301.50 an ounce, silver was little changed at $15.32 an ounce and copper added 0.1 percent to $2.91 a pound. In other energy futures trading, wholesale gasoline climbed 1.4 percent to $1.88 a gallon, heating oil added 0.1 percent to $1.97 a gallon and natural gas picked up two percent to $2.85 per 1,000 cubic feet.
PAGE 8, Tuesday, March 19, 2019
THE TRIBUNE
Putin visits Crimea to mark 5th anniversary of annexation MOSCOW Associated Press PRESIDENT Vladimir Putin led thousands to chant “Russia!” on a visit yesterday to Crimea marking the fifth anniversary of the Black Sea peninsula’s annexation from Ukraine, as NATO and the European Union once again strongly condemned the land grab by Russia. Speaking at an outdoor concert in Crimea’s regional capital of Simferopol, the Russian leader hailed Crimea’s residents, likening them to the Red Army soldiers of World War II.
“Russia has taken you into its fold with delight and joy,” he told the crowd. “We will fulfill all of our goals ... because we are together now.” Putin began his trip by attending the launch of new power plants in Crimea, part of Moscow’s efforts to upgrade the region’s infrastructure. Ukraine has cut off energy supplies to the peninsula and blocked shipments of Crimea-bound cargo via its territory after Moscow annexed the region in 2014. “The situation has changed radically,” Putin said, adding that the new
power facilities will fully cover Crimea’s energy needs. Russia’s modernisation effort for Crimea has included building a 19-kilometer bridge that opened last year across the Kerch Strait, which links the Black Sea and the Sea of Azov. The $3.6bn project gave Crimea a land link to Russia. Previously, a ferry crossing, that was often interrupted by gales, served as the only connection. Moscow’s annexation of Crimea drew US and EU sanctions against Russia that hurt its economy, but the move boosted Putin’s RUSSIAN President Vladimir Putin, right, meets with local residents and veterans at the historical memorial the Malakhov Kurgan (Malakoff redoubt) in Sevastopol, Crimea, yesterday. Putin visited Crimea to mark the fifth anniversary of Russia’s annexation of Crimea from Ukraine by visiting the Black Sea peninsula. popularity at home. NATO allies said in a statement yesterday that “we strongly condemn this act, which we do not and will not recognise”. They denounced alleged rights abuses including “arbitrary detentions, arrest, and torture” against members of the Crimean Tartar community and criticised Russia’s military buildup in Crimea. Russia has beefed up its military in Crimea with new navy ships, missiles and warplanes. Viktor Bondarev, the head of the Russian upper house’s defense affairs committee, said the new weapons included IskanderM missiles and Tu-22M3 long-range bombers. EU foreign policy chief Federica Mogherini said “we stand in full solidarity with Ukraine, supporting its sovereignty and territorial integrity”. NATO and the EU also called for the release of Ukrainian seamen who were seized by Russia in November’s standoff in the Black Sea. Russia’s deputy UN ambassador, Dmitry Polyansky, said at a news
MARKET REPORT MONDAY, 18 MARCH 2019
t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com
BISX ALL SHARE INDEX: CLOSE 2,113.93 | CHG -1.09 | %CHG -0.05 | YTD 50.36 | YTD% 2.44 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 20.91 7.50 5.50 1.96 1.15 3.68 10.20 6.60 4.64 12.50 2.74 1.81 9.02 6.40 15.60 6.99 4.47 13.85
52WK LOW 3.50 19.17 4.90 3.34 1.00 0.19 2.10 8.70 6.10 3.54 9.75 2.30 1.50 7.25 6.10 10.10 5.85 3.01 12.51
1000.00 1000.00 1000.00 1000.00
1000.00 1000.00 1000.00 1000.00
PREFERENCE SHARES
1.00 103.00 100.00 100.00 105.00 103.00 100.00 10.00 1.01
1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00
SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B
CORPORATE DEBT - (percentage pricing) 52WK HI 100.00
52WK LOW 100.00
SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB
SECURITY Fidelity Bank Note 22 (Series B) +
SYMBOL FBB22
Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y
BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407
BAHAMAS GOVERNMENT STOCK - (percentage pricing) 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
MUTUAL FUNDS 52WK HI 2.20 4.24 2.03 184.51 158.55 1.60 1.74 1.69 1.12 6.99 8.54 6.15 10.52 11.46 10.46 10.00 8.69 11.79
52WK LOW 1.67 3.04 1.68 164.74 116.70 1.54 1.68 1.63 1.08 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20
LAST CLOSE 4.37 17.43 6.49 5.39 1.96 1.15 2.28 9.85 6.16 4.50 10.65 2.68 1.79 8.98 6.40 15.60 6.98 3.35 13.85
CLOSE 4.37 17.43 6.49 5.39 1.96 1.15 2.22 9.85 6.16 4.50 10.65 2.71 1.79 8.94 6.40 15.60 6.98 3.35 13.85
CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 -0.06 0.00 0.00 0.00 0.00 0.03 0.00 -0.04 0.00 0.00 0.00 0.00 0.00
1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00
1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
CLOSE 100.00
CHANGE 0.00
107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
LAST SALE 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F
VOLUME
4,500
100
2,900
VOLUME
EPS$ 0.147 0.932 -0.306 0.323 0.104 0.000 -0.523 0.700 0.480 0.154 0.627 0.102 0.209 0.000 0.481 0.762 0.578 0.277 0.631
DIV$ 0.130 1.260 0.000 0.240 0.000 0.020 0.000 0.710 0.220 0.120 0.620 0.060 0.060 0.084 0.240 0.500 0.200 0.090 0.600
P/E 29.7 18.7 N/M 16.7 N/M N/M -4.2 14.1 12.8 29.2 17.0 26.6 8.6 N/M 13.3 20.5 12.1 12.1 21.9
YIELD 2.97% 7.23% 0.00% 4.45% 0.00% 1.74% 0.00% 7.21% 3.57% 2.67% 5.82% 2.21% 3.35% 0.94% 3.75% 3.21% 2.87% 2.69% 4.33%
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%
INTEREST Prime + 1.75% 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%
NAV 2.20 4.24 2.03 184.51 147.81 1.60 1.74 1.69 1.12 7.47 8.64 6.60 10.37 11.69 10.38 9.92 8.69 11.79
YTD% 12 MTH% 3.97% 3.97% 2.49% 2.49% 2.43% 2.43% 3.26% 3.26% -3.65% -3.65% 0.47% 4.42% -0.04% 2.71% 0.27% 3.85% 0.75% 2.58% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69% -0.71% 0.16% 3.96% 7.75% 8.34% 14.88
MATURITY 19-Oct-2022 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 NAV Date 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Jan-2019 31-Jan-2019 31-Jan-2019 31-Jan-2019 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018
MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings
YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful
TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225
conference at UN headquarters in New York that an investigation will determine “what’s the level of their guilt”. “I assume that it is not the highest level of guilt, because somebody in Kiev or elsewhere gave them this criminal order to enter our territorial waters, to provoke our border guards,” Polyansky said. “There are a lot of indications that they were meant to be kind of sacrifice.” The Ukrainian Foreign Ministry protested Putin’s visit to Crimea as a “crude violation of Ukraine’s sovereignty and territorial integrity”. Putin claims Russia “reintegrated” Crimea after the ouster of Ukraine’s former pro-Russian president in 2014 to protect ethnic Russians who made up the majority of Crimea’s population from Ukrainian nationalists. The Kremlin was also worried a new Ukrainian government could annul Russia’s lease on its key Black Sea navy base in Crimea and welcome NATO there instead. The Russian leader has said he put Russia’s nuclear forces on combat readiness during the 2014 developments in Crimea and warned his Western counterparts that Moscow was ready to defend what it considered its land. The annexation gave Russia hundreds of miles of coastline along the Black Sea, a near-stranglehold on commerce in the Sea of Azov and access to vast
potential energy riches on the Black Sea shelf. Crimea was first seized by Russian forces in the 18th century under Catherine the Great. The 27,000-square kilometer territory, roughly the size of Massachusetts, is a lush peninsula that long has been a favorite vacation destination for Russians. It became part of Ukraine in 1954 when Soviet leader Nikita Khrushchev transferred jurisdiction from Russia, a move that was a mere formality until the 1991 collapse of the Soviet Union meant that Crimea landed in an independent Ukraine. The Kremlin has argued that Khrushchev’s move on Crimea violated Soviet law. Russian troops swept into Crimea just days after the February 2014 ouster of Ukraine’s Russia-friendly president, catching the West by surprise. The Russian forces blocked Ukrainian soldiers at their garrisons, setting the stage for a hastily called referendum in Crimea that the West denounced as illegitimate. Putin yesterday hailed that 2014 referendum as a true expression of the Crimean people’s will, saying the West’s refusal to recognise it shows “disrespect for democratic principles”. “It was a landmark event in the history of Russia,” he said at a meeting with local residents. “We have shown the entire world that we nurture our interests and can protect them.”
Legal Notice NOTICE EXENE INVESTMENTS LIMITED NOTICE IS HEREBY GIVEN as follows: (a) EXENE INVESTMENTS LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. (b) The dissolution of the said Company commenced on the 18th March, 2019 when its Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said Company is Shareece E. Scott of Deltec Bank & Trust Limited, Deltec House, Lyford Cay, P.O. Box N-3229, Nassau, Bahamas. Dated this 19th day of March, A.D. 2019. Shareece E. Scott Liquidator
NOTICE OMPEARL LIMITED ________________ Pursuant to the Provisions of Section 138 (8) of the International Business Companies Act 2000 notice is hereby given that the above-named Company has been dissolved and struck off the Register pursuant to a Certificate of Dissolution issued by the Registrar General on the 5th day of March, 2019. Delano Aranha Liquidator of OMPEARL LIMITED