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FRIDAY, MARCH 29, 2019
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QC: Gov’t has Water Corp’s managers ‘pulled rabbit out demand ‘bugging’ probe of Freeport’s hat’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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HE Water & Sewerage Corporation’s executive chairman last night dismissed “baseless and absolutely false” fears employees are being bugged, amid union demands for a police probe. Adrian Gibson, in a messaged response to Tribune Business’s inquiries, said the state-owned water supplier “would never participate in or condone any illegal activity that compromises the work environment” after its management union called for the Royal Bahamas Police Force (RBPF) to
• Seek police investigation into ‘scary’ complaints • Say workplace conversations being recorded • Chair dismisses ‘baseless, absolutely false’ claim
ADRIAN GIBSON
“sweep” the corporation’s offices for “illegal listening devices”. Ednol Rolle, the Water & Sewerage Management Union’s (WSMU) president, told this newspaper he had been “scared” by continuing complaints from his members that their workplace conversations were being listened into and recorded. Revealing that the allegations had persisted from last year, he said the purported surveillance had even extended to
some Water & Sewerage Corporation workers being “followed home” - although he declined to provide further details. The union chief added that the concerns had resulted in a “tense” working environment at the corporation, where staff were “scared to talk to people because their conversations are not their own”. The WSMU seemingly
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Illegal foreign salesmen chamber’s ‘top concern’
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE government’s “short-term work visa” reforms have revived fears among local retailers and distributors about the ability of unregistered foreign salesmen to steal their business. Jeffrey Beckles, the Bahamas Chamber of Commerce’s chief executive, yesterday praised recentlyunveiled changes to the Immigration Act as “a step in the right direction” but said they did not address long-standing concerns about the ability of foreign salesmen to enter The Bahamas without the necessary permits and conduct commerce illegally. While the reforms, tabled this week in the House of Assembly, increase
• Work visa reforms don’t combat issue • But improved transparency, certainty praised • Airport detentions have major ‘downside’
JEFFREY BECKLES transparency and certainty around exactly who requires a short-term work permit to enter The Bahamas and who is exempt, Mr Beckles said this nation needed to better protect local companies who held distribution
Landfill manager eyes IPO for Out Island expansion By NATARIO MCKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net THE New Providence landfill’s new manager yesterday said it was eyeing an initial public offering (IPO) to finance the potential expansion of its business model to the Family Islands. Henry Dean, chairman of the now seven-strong Waste Resources Development Group (WRDG), told Tribune Business: “Our investors are private now. We’ve gone to places and institutions that manage funds, and we have asked them to invest.
“We are covered by that, but there may be a drive in the future for greater participation by the general public. A part of our plan is to seek the government’s approval to move into the Family Islands, which requires funding, and that is where we could see a public offering.” Kenwood Kerr, principal of Providence Advisors, which has partnered with WRDG on the landfill deal, told Tribune Business last month that he was moving “in earnest” to close the initial $20m financing required
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Clearing Banks chief hits back on ‘oligopoly’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Clearing Banks Association’s (CBA) chairman yesterday rejected the industry’s branding as an “oligopoly”, adding that there was “no evidence” of price-fixing and fee setting collusion. Gowon Bowe told Tribune Business that an Inter-American Development Bank (IDB) report, which described the Bahamian commercial banking industry as having an “oligopolistic nature” that
limited price competition, was an “inappropriate characterisation” of the sector. Suggesting that its first quarter Caribbean Regional Quarterly Bulletin had provided an “overly-simplistic analysis” of the factors driving bank costs and prices, Mr Bowe said some of the key issues ignored included borrower creditworthiness and an inability to access all information relating to their financial histories. The credit bureau’s introduction is designed to address this weakness and
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rights for a particular product in this nation. “The biggest concern, if there is any, is that many of the retailers in The Bahamas have complained for years about foreign sales people coming here from the US and Canada claiming to be on vacation and going to the casino but, in fact, calling on clients, making and taking orders, and some even taking currency remittances back,” the chamber chief told Tribune Business. “We know they’ve been ducking under the radar before to the detriment of local entrepreneurs. There are many manufacturer
representatives in The Bahamas, but if we have unregistered foreign sales people calling, how to we protect licensed retailers and distributors in Nassau? “If they came in under the radar before, what’s to prevent them now coming in here for 14 days. Are they able to conduct the same level of business, take back currency remittances? That’s a concern of ours. If people are here to transact business, they have to be here legally. I can’t show up in someone else’s country and start working without permission.”
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By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net AN OUTSPOKEN QC yesterday apologised to the government for previously blasting its decision to acquire the Grand Lucayan, and said: “They have pulled a rabbit out of Freeport’s hat.” Fred Smith QC, the Callenders & Co attorney and partner, told Tribune Business that the Minnis administration’s revelation of the resort’s impending sale to the ITM/ Royal Caribbean joint venture had dispelled his fears that it would become a “haemorrhage for the Public Treasury”. Provided the sale closed, and the government sealed the deal with the Mexican port developer and cruise line, Mr Smith said the revival of Port Lucaya and Freeport Harbour will combine with Carnival’s separate $100m cruise port to create “the second economic coming of The Bahamas” in Grand Bahama. He added, though, that Freeport now needed to reverse the “brain drain” and depopulation it has suffered over the past 15 years by attracting former residents to return home and take advantage of the potential new opportunities. And Mr Smith again reiterated his long-standing calls for the government to take “a hands-off approach” to regulation in Freeport, calling for it to specifically relax exchange control, immigration and investment board approvals so that the city’s revival can be fast-tracked. Acknowledging that he had been among the most
FRED SMITH QC vociferous critics of the government’s Grand Lucayan purchase, Mr Smith told this newspaper: “Assuming that the Grand Lucayan deal goes through, I wish to take this opportunity to publicly apologise to the prime minister and the government for any previous unreserved criticism and resistance to the government buying the resort. “I believed that it was going to be a haemorrhage for the Public Treasury, and it has been in the past - for instance, when the Hotel Corporation and Genting owned the casino and the Lucayan strip in the 1980s. I take my hat off to the Minnis administration for having pulled this rabbit out of Freeport’s hat.” The government on Wednesday signed a Letter of Intent (LOI) with the ITM/Royal Caribbean consortium to trigger “exclusive negotiations” between the parties for the Grand Lucayan’s sale, and a Heads of Agreement for their wider redevelopment project which calls for the creation of water-based adventure theme parks at Port Lucaya and Freeport Harbour.
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PAGE 2, Friday, March 29, 2019
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Getting the message across to colleagues COMMUNICATION is essential for good leadership. Effective communication and effective leadership are closely intertwined. Leaders need to be skilled communicators in countless relationships at the corporate level, in communities and groups and, sometimes, on a global level. Today we explore some valuable insight provided by Small Business Trends on effective ways and forums for company leaders to communicate. There are benefits to using a multi-faceted approach to providing and sourcing information, and the wise leader maximises them all. Here are the tips: 1. Open Meetings It is easier to communicate your passion and how you feel to your team via open meetings. In this kind of forum, they will not only hear what you are saying but also see and feel it. This approach still remains one of the best approaches to communicate effectively with a team. 2. Emails In official settings, communication via e-mail remains potent. It will enable you to pass messages to members of your team without pulling them out of their work stations. 3. One-on-one Experts have been able to prove that some people understand better when you take them aside and talk to them on a one-onone basis. Ensure that you maintain eye contact with them to enable the message to sink in. 4. Create a Receptive Atmosphere To effectively communicate with your team, you must create a receptive atmosphere. Avoid a tense environment at all costs because when you communicate in an overly intense manner, the message you are trying to share might
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not be well understood or retained. 5. Communication via Training Your training should be tailored towards communicating certain information to your team members. Most employees take training seriously, especially when it is part of their appraisal. 6. Display confidence and seriousness Ensure that you display confidence and seriousness so you will not be taken for granted. When your team members notice any uncertainty and lack of serious intent when you are communicating with them, they are likely to treat the information with disdain or disregard. 7. Use simple words The truth is that everybody cannot be on the same page when it comes to vocabulary. Therefore, to be effective in communications with your team members, use words that can be easily understood. When ambiguous words are used, you can be misunderstood and/or waste precious time having to explain yourself. 8. Use Visuals Place visuals at strategic positions around the work stations of your team.
They should not just hear the message, they should also see it. This gives room for better comprehension. Some people grasp messages easily when pictures and sounds are involved. Using presentations like Microsoft PowerPoint to communicate with your team will give them the opportunity to refer back to it if they aren’t clear about certain things. 9. Listen to your team members Communication is intended to be a two-way street. Do not just talk because you are the leader without listening to anyone else. Encourage them to open up so you can be well guided when communicating in the future. You have two ears and one mouth, so you must listen more than you speak. 10. Use appropriate body language Your body language will pass your message faster and better. Master the art of using body language when communicating with your team. Stand and/or sit up straight, use smiles, handshakes and eye contact. 11. Use the appropriate tone of voice One word can mean a different thing when said in a particular tone of voice. Make sure you use the appropriate tone of voice to communicate your message to your team so that you will not be misunderstood and discourage or de-motivate members, causing them to shut down completely out of fear. 12. Avoid unnecessary repetition If you want your team members to take you seriously, never sound like a broken record and do not beat a dead horse. Tell your team members what you want them to know or do, and ask them if they are clear about it. If they are
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Getting the message across to colleagues FROM PAGE TWO not, only then do you repeat what you have said. 13. Be humorous Using friendly jokes when communicating with your team members will help pass your message along in a more relaxed way. This method of communication has been proven to be a highly effective way of defusing tension. When the atmosphere is unfriendly and intense, being humorous does the trick. If you must use jokes, do not overdo it. Remember, you are not a stand-up comedian. 14. Be articulate Communication is indeed a skill that must be learned by all, especially if you want to lead any group of people. Being articulate when you communicate to your team members makes it easier for them to understand your message. Your team members should be able to hear you clearly. When communicating with them, try as much as possible to speak clearly and not mumble words. 15. Encourage feedback Do not just talk and walk away. Give room for feedback so that you can measure the effectiveness of your style of communication. It will also afford you the privilege of knowing if your message was well understood. 16. Gesticulate Use your hands to demonstrate your message. Make hand motions and signals to establish the seriousness of your subject matter when communicating with your team members. This shows that you understand what you are trying to relay to them. Do not let your body movement become too exaggerated and intense. 17. Be Appreciative After every communication session, via whatever means you have decided, always remember to thank your listeners for their time. It will cost you nothing and it is a simple courtesy. Remember that the point of working as a team is to share ideas and boost productivity. When effective communication in the workplace is hampered, it can sidetrack the entire effort. • NB: Ian R Ferguson is a talent management and organisational development consultant, having completed graduate studies with regional and international universities. He has served organsations, both locally and globally, providing relevant solutions to their business growth and development issues. He may be contacted at iferguson@bahamas.com
Friday, March 29, 2019, PAGE 3
LUCAYAN BOARD REFUTES BREA ‘FACE SLAP’ CLAIM By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Grand Lucayan’s Board yesterday defended itself from accusations that it had given “a reprehensible slap in the face” to Bahamian realtors over the property’s impending sale. Christine WallaceWhitfield, the Bahamas Real Estate Association’s (BREA) president, in a statement blasted Lucayan Renewal Holdings, the government-controlled vehicle that currently owns the resort, for ignoring Bahamian professionals and using a foreign firm to list and market the property. However, Michael Scott, the Grand Lucayan’s chairman, said the board had “dealt with this issue before”. He revealed that Colliers, the Canadianheadquartered realtor that was selected to list and market the resort worldwide, and administer the sales process, was “operating through a local
CHRISTINE WALLACE-WHITFIELD
agent” that is based in The Bahamas. “They, Colliers, have a local relationship,” Mr Scott told Tribune Business in response to BREA’s concerns. “That point was raised before and we dealt with it. Colliers are operating through a local agent. I don’t remember who they are.” He directed this newspaper to fellow board member, Ed Rahming, who confirmed the local agent for Colliers is Sterling Bahamas Realty. “Those are the guys Colliers got engaged through, a local agent,” the Bahamian
EX-CHAMBER CHIEF: ‘GET HOUSE IN ORDER’ FOR WTO By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net THE Bahamas must “get our house in order” for when it becomes a full WTO member rather than continue to debate the merits of joining, a private sector executive argued yesterday. Calling for the World Trade Organisation (WTO) conversation to shift, Edison Sumner, pictured, principal of Sumner Strategic Partners (SSP), and told Tribune Business: “The discussions I have been hearing in the public
space have been largely about whether we should or should not join. “We have been talking about the benefits of going, but we also must talk about the challenges. I think that we have to be very transparent with information that we are discussing in the public domain so that everyone understands what it is that we are getting ourselves into.” The former Bahamas Chamber of Commerce & Employers Confederation (BCCEC) chief executive added: “My view, and the information I have based on what I have been
accountant confirmed. But Ms WallaceWhitfield, in her statement on behalf of BREA, said: “There are more than 700 licensed real estate professionals in The Bahamas, many with firms that have the best international affiliations as well as other local firms that work in conjunction with international based firms in the world. “For a holding company that is a representative of the government of The Bahamas to ignore those 700-plus individuals and world-class, internationally affiliated firms to list what may be the largest single sales transaction of the year is reprehensible’ a real slap in the face.” The BREA statement said that according its its rules, and the laws of The Bahamas, all real estate transactions within the country - including those involving sales to foreign entities - must involve the services of a licensed Bahamian broker.
“We are, at this very moment, dealing with infractions by foreigners coming into the country and selling Bahamian property,” said Ms Wallace-Whitfield. She added that her phone had been ringing constantly since the Grand Lucayan’s sale was announced due to confirmation that the process was co-ordinated through Colliers International, a company based in Toronto, Canada, with offices throughout the world but not in The Bahamas. “Please do not misunderstand us on this,” Ms Wallace-Whitfield said. “BREA is thrilled that the Grand Lucayan will have a new owner, and that Royal Caribbean International, which has been a good friend of The Bahamas for 50 years, will be part of the new ownership. “The cruise line’s marketing reach is legendary and we are eager to see the project plans which Royal Caribbean and its partner, ITM Group, have. We have
no qualms whatsoever with the sale. We believe that it will provide the economic engine that will drive Freeport and Grand Bahama farther than it has ever gone before. More than a restoration, it will be a re-birth and we congratulate all parties involved, but we remain adamant that a Bahamian real estate firm should have been involved.” Ms Wallace-Whitfield said that less than 24 hours after news broke of the Letter of Intent (LOI) signing, the BREA board voted to register its “shock, disappointment and dismay” that the transaction was handed to a foreign company. Most well-known real estate franchises have Bahamian affiliate offices, including Better Homes and Gardens Real Estate; Christie’s; Coldwell Banker; Engel & Volkers; ERA; Luxury Portfolio; NAI Commercial; and Sotheby’s. Other firms throughout The Bahamas have international relationships to assist them.
reading in the public conversations with some of the players, is that the government has already made the determination that they wish to join and have already given timelines for doing so. “We are currently going through the negotiation process. There are five steps to full WTO accession. We are at the third stage, which is the negotiation stage, and then there will be a finalisation stage and implementation stage. The government has determined they want this process completed by the end of this year. I think it may push them a few months into 2020. “While the discussion on whether or not to join has been a very academic discussion in the public domain, we need to shift the conversation from whether
we should join or not but saying that we are joining and here’s what to expect. We should spend more time preparing our citizens for post-WTO accession.” Mr Sumner stressed that he was not arguing for or against WTO accession, but said the train had already effectively left the station. “I use the analogy of a hurricane. When a hurricane is coming the government takes every measure to warn its citizens to prepare, with all the relevant agencies on alert for what is to come,” he explained. “Consider the WTO as a hurricane, metaphorically speaking. All of the agencies of government should be working together to ensure The Bahamas is ready. We should now be talking about preparation. If the government has determined that it will
join, unless we can pray this thing away then we can expect direct hit. When it hits us are we prepared for it. The citizens of the country should also likewise prepare themselves, study the WTO, how it will impact industry and individuals.” Mr Sumner continued: “Whether we want to say it or not, post-WTO many people will be in jeopardy of losing their jobs and position in industry. We’re talking about the vulnerability of certain industries. “If we’re not careful we’re going to find ourselves in a tough spot because we didn’t properly prepare. We have to prepare ourselves and get our house in order. I am not a proponent of it one way or the other. I neither support nor oppose it. I’m simply saying if it’s coming, prepare for it.”
Colina suffers 26% profit drop in 2018 COLINA Holdings (Bahamas) suffered a 26 percent year-over-year net income decline in 2018 as a result of increased policyholder claims, it revealed last night. The BISX-listed life and health insurance holding company reported that net income attributable to equity shareholders fell by one-quarter, dropping from $16.6m in 2017 to $12.3m last year. It said in a statement that the increased policyholder claims offset growth in revenues, which rose more narrowly from $165.1m in 2017 to $168.5m last year, while total assets expanded from $743.5m to $759.9m at year-end 2018. “Despite net income being lower in 2018 compared to prior year, Colina Holdings (Bahamas) remains focused on its long-term profitability objectives. These objectives are bolstered by the company’s financial strength, sound investment principles and diverse portfolio,” said Terence Hilts, its chairman. “As is expected in our industry, the nature of our business does introduce some fluctuations in profitability from year-to-year. We have enjoyed successive years of below average claims experience. However,
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in 2018 the reverse was the case. “Our primary objective and commitment to our policyholders is that we fulfill our obligations to have the financial capacity and strength to pay claims as they become due. We are pleased to note that despite the increased volume of claims we were able to meet these obligations in the regular course of business.” Colina Holdings (Bahamas) said its strong capital base and focus on high-quality assets enabled it to pay more than $2.4m in preference share distributions, and $5.4m in dividends to its ordinary shareholders, during 2018. It added that it had realised efficiencies through the decrease in general and administrative expenses to $33.4m, a sum equivalent to 19.8 percent of total revenues. This compared to $34.3m or 20.8 percent of total revenues in 2017. Colina Holdings (Bahamas) investment portfolio saw an increase in net investment income to $26.6m compared to $21.6m in the prior year. Invested assets increased by $24m to $620.6m, compared to $596.6m in the prior year, and remain a significant proportion of
total assets. From a capital standpoint, Colina strengthened its total equity position to $199m, a rise of $4.7m over the prior year. Ordinary shareholder equity increased to $132.8m
compared to $129.7m in 2017. “Looking ahead, we are very optimistic about the future,” said Mr Hilts. “We have grown revenues and investment yields,
and stayed true to our disciplined focus on risk management. We will continue to focus on executing our growth strategies, enabling us to meet the financial needs of our customers.”
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THE TRIBUNE
PRODUCTIVITY BOOST VITAL TO ECONOMY By NATARIO MCKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net THE National Tripartite Council’s chairman yesterday stressed that The Bahamas must improve public and private sector productivity, with investors frequently citing skills shortages to justify hiring expatriate labour. Robert Farquharson, pictured, spoke as the council, a three-way partnership between trade unions, the private sector and the government that is designed to address all labour-related issues, teamed with other groups to formally launch its public consultation on national productivity legislation. Edison Sumner, principal
of Sumner Strategic Partners, and a former Chamber of Commerce chief executive, will lead the consultations on the draft Bill and accompanying white paper that will be reviewed and discussed over the next three to five months. Mr Farquharson told Tribune Business: “We have finalised all of the details with regards to national productivity. We have gotten the go-ahead
from the government to have a wide period of consultation with the Bahamian community, and so we have employed the services of Edison Sumner from Sumner Strategic Partners to be the project co-ordinator for this project. “We are going to Grand Bahama, Abaco, Eleuthera, Exuma, Long Island, Andros and Bimini. The idea is to meet with the businesses and government agencies, talk about the Bill, productivity and why we need to increase productivity. “We want to get their feedback and put their recommendations in the Bill, so that when the Bill is finally laid in Parliament it would have recommendations from the wider
Bahamian community. We hope by the new fiscal year on July 1 that we would be able to present draft legislation to Cabinet,” Mr Farquharson continued. “We have to find a mechanism to increase productivity at a national level, both in the public and private sector. We believe that if we increase the levels of productivity that the national competitiveness of our country would improve. We could say to foreign investors who come here, and claim that Bahamians don’t produce or don’t have the skill set, that we have the empirical data to prove otherwise.” The proposed Bill, according to Mr Farquharson, will lead to the creation of the National
Productivity Council. “That council will be charged with working with the public and private sector to measure productivity, improve the levels of productivity and identify the needs for the public and private sector as well as how we could improve productivity,” he said Mr Farquharson added that improving productivity will lead to job and GDP growth. “When foreign investors complain about the skill levels and productivity, government is often forced to approve non-Bahamians coming here. When they come they are able to make these exorbitant salaries and they send those salaries back to their home country,” he said.
Mr Sumner told Tribune Business: “Everyone will benefit from improved productivity. When we talk about implementing a National Productivity Council there will be questions about the cost of implementation, concerns about wages based on increasing levels of productivity, incentives being offered by employers or the government to its civil service staff, and whether this is adding any other layers of bureaucracy in the country. My role is not to form an opinion on it but to simply collect the information, get the consultation process going and then present those findings to the government.”
Water Corp’s managers demand ‘bugging’ probe FROM PAGE ONE went public with its claims yesterday in a bid to ensure a police probe will be conducted, raising the pressure on all parties given the seriousness of its complaint. “The WSMU requests police to sweep Water & Sewerage Corporation offices for illegal listening devices,” the union said. “The Water and Sewerage Management Union (WSMU) is issuing this press release to compel the Water & Sewerage Corporation to have the Royal Bahamas Police Force (RBPF) sweep Water & Sewerage Corporation offices in New Providence, Abaco and Eleuthera for listening devices due to complaints reaching the union. “The union wishes for the corporation to allay the fears of its members,
so it is issuing this press release so that the public and the political directorate will ensure that the proper investigation is done by the police force to dispel of confirm these concerns by members.” Contacted by Tribune Business, Mr Rolle said his members were “making enough noise” for him to call for an independent police investigation. He added that some were having previous conversations repeated to them “word for word”, and said such a probe would “give me the confidence” to go back to his members and either validate or dismiss their concerns. “There’s allegations right now that these things are happening,” Mr Rolle told Tribune Business. “Some of my members, they’re saying their conversations are being recorded because people are able to tell them
exactly what they said in those conversations, and they’re claiming they’re being followed home.” He provided no examples of specific incidents to back up these claims when pressed by this newspaper, but added: “Listen. When people start making enough noise I check it out. The easiest way is to have the police do the work. If they say there’s nothing, I can go to the members and say: ‘You figured wrong’. If the police say there’s something, we may have to go to them.” Mr Rolle said he had anticipated the eavesdropping/surveillance concerns would have ended when “a security guy”, who he did not name, left the Water & Sewerage Corporation in January this year. “It’s been going on from last year,” he revealed to Tribune Business. “The complaints have been
steady. I thought they would stop but they’re continuing. That’s what’s scaring me. They should not have continued. I thought they would have gone away when the fella left, but they’re continuing. I just need to make sure; we want to make sure. “Once they [the police] do that it will give me the confidence I need to tell my members: Yes or no.” Mr Rolle said the working environment at the Water & Sewerage Corporation was currently dominated by mistrust, fear and uncertainty due to the ongoing claims, lowering morale and threatening to further undermine the cash-strapped stateowned enterprise’s (SOE) operations. “I think people are discomfited and tense all the time,” he told this newspaper. “You’re scared to talk to your own people. Your
conversations are not your own conversations. As an employee that’s a scary thing.” Contacted by Tribune Business last night, Mr Gibson said he was unaware of any eavesdropping, surveillance or bugging activities being conducted at the Water & Sewerage Corporation or against its employees. Calling on the union to provide evidence to back-up its assertions, the utility’s executive chairman slammed the allegations as “absolutely false”. Mr Gibson told this newspaper: “We categorically deny that baseless claim. Water & Sewerage is a responsible corporation that abides by the laws of the Commonwealth of The Bahamas. “We value our employees. We value their effort and contributions to the success of the Water & Sewerage Corporation and
would never participate in or condone any illegal activity that compromises the work environment and devalues the contributions of our employees.” Mr Gibson said he was unaware of the “bugging” claims until contacted by Tribune Business, although similar allegations concerning the installation of CCTV and listening devices at the Water & Sewerage Corporation were made several months ago on social media. “We are unaware of any incidence or claims of any such behaviour in the corporation,” he told Tribune Business. “Further, we would welcome our unions to bring any evidence of this so that we could communicate and reiterate the importance of our managers to the success of the Water & Sewerage Corporation and address their concerns.”
QC: Gov’t has ‘pulled rabbit out of Freeport’s hat’ FROM PAGE ONE Both Dionisio D’Aguilar, minister of tourism and aviation, and Michael Scott, the Grand Lucayan’s chairman, have touted the agreed $65m purchase price for the Grand Lucayan as being the same sum that the government itself paid to acquire the resort from Hutchison Whampoa last September. The duo suggested this meant the government will not take a loss on the property’s sale, and may even realise a return on its investment, although the purchase price alone will not recover all expenses incurred to-date. Some
THE GRAND LUCAYAN RESORT $13m was spent to cover the Grand Lucayan’s operational expenses during the four months to end-2018, for instance, and other costs could be forthcoming. The $65m sales prices was also likely set for political reasons, and ITM and
Royal Caribbean may well be compensated for agreeing to pay more than the Grand Lucayan is worth via tax breaks and other investment incentives to be determined during Heads of Agreement negotiations. Still, providing that the
Grand Lucayan’s sale is now closed relatively quickly, it appears that the fears of Mr Smith and others that the resort would become a bottomless financial “black hole” sucking the Public Treasury dry with subsidies may not materialise. Mr Smith yesterday said a revival of the Grand Lucayan, its casino and wider Port Lucaya area was “desperately needed” to create critical mass, attract multi-million dollar investment and turn around a Freeport economy that has been mired in recession since 2004. “Since the Carnival Grand Port announcement there has been a very positive and hopeful air in
Freeport, and that augurs well for the future,” he added. “I just hope that with all the renewed interest the central government agencies will bend over backwards to process any applications they are involved in. “Hopefully they eventually have enough faith in the Hawksbill Creek Agreement, and responsibility of the Port Group of Companies to be the one-stop shop investment authority, to take a hands-off approach for Freeport. “If the central government takes a hands-off approach from regulation by its central agencies Freeport will be the second economic coming of The Bahamas. I truly believe that if the Central Bank, Investments Board and particularly Immigration will bless Freeport by leaving us alone there will be no holding Freeport back.” Mr Smith reiterated that “Freeport needs every bit of investment and cooperation to survive”, and expressed hope that it now had sufficient activity through a combination of the ITM/Royal Caribbean and Carnival projects to attract former residents home. “We have been dying of thirst in our economic desert for far too long,” he
told Tribune Business. “All of this is going to bring the ‘Magic City’ back to life, but what will be required is a return of human resources, population and foreign Immigration from outside. “Freeport will not be able to sustain the level of investment that is proposed without a huge influx of foreign workers and expatriates to complement the very meagre local resources that have remained. “Regrettably, over the last decade or so there has been a brain drain and many of the more skilled labour resources have migrated to other areas in The Bahamas. I’m so glad it will now be time for the citizens of Grand Bahama to come back home and take advantage of these home grown opportunities once again.” Mr Smith reiterated previous calls for the Government to further relax exchange control restrictions so that Bahamians can buy shares in publicly traded companies that are active in The Bahamas, such as Carnival and Royal Caribbean. “This is so that Bahamians in Freeport can own a piece of their own economic pie,” he said. “We don’t only want to be servants; we also want to be part-owners.”
NOTICE
NOTICE is hereby given that GARNELL LOUISE LIMPERES STUART of Queen Elizabeth Drive, 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 21st day of March, 2019 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
THE TRIBUNE
Friday, March 29, 2019, PAGE 5
Landfill manager eyes IPO for Out Island expansion FROM PAGE ONE for New Providence. Mr Dean yesterday confirmed that the group officially took over the landfill’s management on March 15, having been given 30 days to raise the necessary funding. He added that 40-50 persons have been hired by the consortium to-date. In addition, two non-Bahamian groups comprising Americans and Canadians have been brought in for their scientific expertise. “They bring the scientific knowledge to the table. We have said to the government, give us three years and Bahamians will be up to par to take things over. Our foreign partners have been mandated to identify Bahamians to shadow them,” said Mr Dean. He revealed that there needs to be “an adjustment” in the tipping fees charged at the landfill, noting that the government
SKYVIEW OF THE NEW PROVIDENCE LANDFILL ON FIRE will ultimately have to decide whether to absorb any increase or pass them on to users. “We have touched on the issue with the government but nothing is final. To adjust it we need government’s approval,” Mr Dean said. “Government
has to weigh its willingness to absorb the cost of managing the landfill against the complaints of the general public. That’s a government decision. “Ten dollars a ton cannot satisfy their requirements. There has to be, and there needs to be, an adjustment.
The government has to decide whether they are going to absorb it or pass it on.” Previous Tribune Business reports indicate that the Auditor General’s Department has previously opined that tipping fees at the landfill are insufficient
to cover the facility’s operating costs. Fees are based on the weight/tonnage of the waste brought for disposal, with 300 pounds or less incurring no charge. Loads between 300 to 999 pounds are charged $5; those between 1,000 and 1,999 pounds are charged $10 per
load; and 2,000 pounds or more $10 per tonne, There have been no revision of fees in over a decade. The WRDG consortium was selected as the preferred bidder to take over the landfill’s operations - and effect a $130m transformation of the site - in late August 2018. The group has partnered with Ken Kerr’s Providence Advisors in a 60/40 split, and have a ten year deal to manage the landfill. Mr Dean, who addressed the Rotary Club of West Nassau, said the transformation of the landfill into the New Providence Ecology Park has already begun. He said that in sixmonths the group plans to roll-out a recycling program, and is taking measures to prevent fires at the site by currently sourcing the necessary equipment. “I won’t say it will never happen, but as much as we can we are going to work to prevent fires,” said Mr Dean.
Illegal foreign salesmen chamber’s ‘top concern’ FROM PAGE ONE Mr Beckles said such activities by foreign salespersons violate the licensing and distribution rights that may have been granted by manufacturers to local businesses for the entire Bahamas. “I had a retailer say to me the other day: ‘I was in a certain island, and saw pallets of products I’m supposed to represent. How does that stuff get in’,” he revealed. “As long as manufacturers give local entities licensing and distribution rights for The Bahamas, we should do our best to protect them. There are many times distributors don’t know people are bathing in our pond.” The Immigration (Amendment) Bill 2019 aims to further eliminate Immigration bureaucracy and red tape and occasionally unpleasant experiences at the airport by ending the requirement for business executives to obtain a “short term” or any type of work visa/permit if they are in The Bahamas for 14 days or less. The exemption applies to persons attending Bahamas-based conferences and seminars as participants; trade shows and summits; or working as a non-executive
director of a business “being carried on in The Bahamas” where they are not involved in daily operations. Also exempt are senior executives and management professionals who fly in to “attend a business meeting with a local company”. This applies to chairmen, directors, shareholders, all executives from the rank of chief financial officer up, managers, consultants, attorneys, compliance officers and accountants. Others included under this initiative, and exempt from the short-term work visa requirement, are auditors, actuaries, medical professionals, analysts and controllers. The private sector has been pushing for such reforms for years, both on the grounds that it will enhance The Bahamas’ ease of doing business and reputation, while avoiding embarrassing incidents that have over the years seen senior corporate executives refused entry and/or detained and given an grilling by immigration officers at the airport. Brent Symonette, minister of financial services, trade and industry, and immigration, last February told Tribune Business that the government was considering such reforms, and seeking business
community feedback on what worker categories should be exempted from the “short-term work visa” requirement. He revealed that the Immigration Department received around 200 applications per week for short-term visas and permits, creating “a large amount of paperwork” that could be reduced once these reforms were enacted. And Mr Symonette said the legislation was intended to narrow the discretion which the Immigration Department currently applies at the border to determine who needs short-term work visas and who does not. Backing the general thrust of the reforms, Mr Beckles said yesterday: “In some respects I think it makes it easier and more transparent in what is required to come and do work here. Does it tidy things up? Maybe in some instances. It’s a step in the right direction. “At the end of the day it’s contingent on the Immigration Department and those involved to ensure the system is fully [implemented] so at the end of the day we’re not reinventing the wheel every several years as we have done. “This new initiative has to be executed in a manner that continually shows how
COMMONWEALTH OF THE BAHAMAS IN THE SUPREME COURT Common Law & Equity Division
2018/CLE/gen/00855
IN THE MATTER OF property comprised in an Indenture of Mortgage dated the 16th day of March A.D.2015 between TINA M. GLINTON AND WAYNE GLINTON of the one part and Commonwealth Bank Limited of the other part and of record in the Registry of Records in the City of Nassau in the Island of New Providence in Volume 12574 at pages 105 to 125. BETWEEN
COMMONWEALTH BANK LIMITED AND TINA M.GLINTON AND WAYNE GLINTON
TO: WAYNE GLINTON TAKE NOTICE that:
Plaintiff First Defendant Second Defendant
1. A Notice of Adjourned Hearing filed herein has been issued in the Supreme Court of The Bahamas by Commonwealth Bank Limited, by the Plaintiff herein against you, Wayne Glinton
2.
An Order made in the Supreme Court by the Honorable Justice Gregory Hilton in Supreme Court Action No. 2018/Cle/gen/00855, it was ordered that service of the said Notice of Appointment to Hear Originating Summons and all other pleadings against one of the Defendant, Wayne Glinton to be effected by way of this Advertisement.
3. IT IS FURTHER ORDERED THAT THE HEARING OF THE NOTICE OF ADJOURNED HEARING IS SET TO BE HEARD ON WEDNESDAY, 3rd April 2019 AT 9:30 A.M BEFORE THE HONORABLE JUSTICE GREGORY HILTON,SWIFT JUSTICE BUILDING, EAST STREET NORTH, NASSAU, N.P., THE BAHAMAS 4. The Court further Ordered that the existence of further proceedings be deemed to be served on you by way of similar advertisements Dated the 31st day of January A.D.2019 GRAHAMTHOMPSON Chambers, Sassoon House, Shirley Street & Victoria Avenue, Nassau, Bahamas. Attorneys for the Plaintiff
benefits are accruing to The Bahamas, and that’s a very reasonable expectation.” Mr Beckles said The Bahamas “does not appear to be a process-oriented country”, acknowledging the problems this had caused when the issue of short-term work visas - and whether a fee is required was left to the discretion of immigration officers at ports of entry. “Hopefully this new iteration will provide consistent signs that the process is improving and we’re becoming more efficient,” he told Tribune Business. “Nobody likes being held up or detained at the airport. That, my friend is not a very pleasant experience, and the downside of that is quite impactful because the country gets spoken about
as if we have a Gestapo mentality. “We have rules, but sometimes the rules are ambiguous depending on who you’re dealing with. If we have rules in place, let’s enforce them and ensure they’re manageable. This is part of our challenge.” The Bill also creates the BH-1B work visa, which is intended to underpin and complement the Commercial Enterprises Act, and its promise to liberalise the Immigration regime for companies in sectors targeted by that law. The Commercial Enterprises Act attempts to introduce certainty and predictability to the work permit regime by requiring the director of immigration to make a decision on their approval within 14 days of
the application’s receipt. Applications from businesses covered by the Act must be submitted within 30 days of the worker’s arrival in The Bahamas. Mr Beckles said the reforms would enable The Bahamas to “quantify”, and collect data, on expatriate workers coming into The Bahamas. He added that while the reforms focused on making it easier for top-level, highly skilled foreigners to enter this nation, the government could not ignore the creation of opportunities for Bahamians of a similar standard if they were available. “Let’s face it; we’re catching up with what the global village is doing,” Mr Beckles said of the BH-1B visa. “It’s practically everywhere now.”
PAGE 6, Friday, March 29, 2019
THE TRIBUNE
Clearing Banks chief hits back on ‘oligopoly’ FROM PAGE ONE improve financial access, particularly for Bahamians with good credit histories, with the clearing banks chief pointing out that high system liquidity - currently in the $1.5bn range - was influencing low deposit rates and high spreads with lending rates. Arguing that there was a tendency to “single out” particular issues as opposed to identifying “root causes” and tackling them, Mr Bowe said the relatively small size of the local market had deterred Bahamian commercial banks from deploying capital to venture capital-type loans - unlike their US counterparts. And, while the IDB report had focused on what it deemed to be favourable return on equity ratios
(ROE) for Bahamian banks, he added that these ratios were low compared to the returns deemed acceptable by regulators and institutions in developed countries - where in excess of 15 percent was often deemed the minimum requirement. Mr Bowe said the answer to improved financial inclusion and access in The Bahamas lay in improved consumer education, something the CBA and its members are working on with the Central Bank. “I think that is a bit of an aggressive statement, in that the term ‘oligopoly’ is suggesting - which is incorrect - that these are entities working collaboratively together to achieve certain outcomes,” Mr Bowe told Tribune Business of the IDB report. “There’s no evidence as it relates to price fixing or
LEGAL NOTICE
NOTICE OF DISSOLUTION OF
PIATA LIMITED
GOWON BOWE
Notice is hereby given that pursuant to Part IX, Section 138(4) liquidation of the above company commenced on the 27th day of March, 2019. Octagon Management Limited of The Bahamas Financial Centre, Shirley & Charlotte Streets, Nassau, The Bahamas has been appointed Liquidator of the Company.
_______________________________________ Octagon Management Limited Liquidator
certain fee setting that’s happening among the industry. To say an oligopoly is suggesting a limited number of companies working together and I don’t think that’s an appropriate characterisation of the industry. “You have to put it in the context of a 400,000 population and how many institutions are required. The definition of an oligopoly may be theoretically correct, but the economic principal is of
working together to control a market, and that’s not the case here.” Mr Bowe was responding after the IDB report said lack of competition in the Bahamian commercial banking industry has created barriers to accessing financial services in this nation. The IDB’s Caribbean Quarterly Bulletin for the first three months of 2019, released yesterday, said the absence of greater “price competition” among the six
MARKET REPORT THURSDAY, 28 MARCH 2019
t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com
BISX ALL SHARE INDEX: CLOSE 2,120.59 | CHG -0.09 | %CHG 0.00 | YTD 57.02 | YTD% 2.76 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 20.91 7.00 5.50 2.15 1.15 3.50 10.21 6.60 4.64 12.50 2.74 1.81 9.02 6.40 15.60 7.08 4.47 13.85
52WK LOW 3.50 19.17 4.90 3.34 1.00 0.19 2.10 8.80 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 1.61 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 1.55 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 4.25 17.43 6.00 5.39 2.15 1.15 2.22 9.85 6.16 4.50 10.64 2.65 1.79 9.23 6.40 15.57 6.98 3.54 13.85
CLOSE 4.25 17.43 6.00 5.39 2.15 1.15 2.22 9.85 6.16 4.50 10.64 2.62 1.79 9.15 6.40 15.57 6.98 3.54 13.85
CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.03 0.00 -0.08 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
2,000
VOLUME
EPS$ 0.167 0.932 -0.306 0.323 0.098 0.000 -0.431 0.708 0.480 0.154 0.627 0.102 0.209 0.000 0.481 0.834 0.578 0.205 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 25.4 18.7 N/M 16.7 N/M N/M -5.2 13.9 12.8 29.2 17.0 25.7 8.6 N/M 13.3 18.7 12.1 17.3 21.9
YIELD 3.06% 7.23% 0.00% 4.45% 0.00% 1.74% 0.00% 7.21% 3.57% 2.67% 5.83% 2.29% 3.35% 0.92% 3.75% 3.21% 2.87% 2.54% 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 1.61 1.74 1.69 1.12 7.54 8.73 6.65 10.66 11.79 10.48 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% 0.76% 4.39% -0.03% 2.04% 0.51% 3.65% 1.03% 3.78% -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 28-Feb-2019 28-Feb-2019 28-Feb-2019 28-Feb-2019 28-Feb-2019 28-Feb-2019 28-Feb-2019 28-Feb-2019 28-Feb-2019 28-Feb-2019 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
Bahamas-based commercial banks had increased lending rates and spreads that made products too costly to access for some Bahamians. “The cost of financial services reflected in rising lending rates limits access to credit and strengthens barriers to financial inclusion,” the IDB report said. “Spreads between deposit and lending rates increased by almost three percent from 2010 to an estimated level of 10.4 percent in 2018, roughly two percent higher than countries in the Latin America and Caribbean region. “The oligopolistic nature of the commercial banking market limits price competition within a profitable sector. Return on equity (ROE) levels were favourably measured at 6.8 percent in 2017, slightly below the 7.9 percent level at the end of 2016.”
Mr Bowe said the IDB report had focused on commercial banks to the exclusion of other entities in the Bahamian financial services industry, especially co-operative credit unions, which are now regulated by the Central Bank and accepting customers beyond their traditional industry and union bases. “I think it was an overly simplistic analysis in terms of what is driving prices,” he added. “Financing costs are driven by creditworthiness and the availability of information to assess creditworthiness. If you have no information on the borrower the interest rate is higher than expected. “That is a large part of the initiative to establish a credit bureau, separating those that are high quality credit from those that are low quality, and the price differential should become more explicit. “I think there’s often a desire to pinpoint or single out some of the challenges we face as opposed to focusing on the root causes and addressing them subsequently.” Mr Bowe added that the high level of non-performing loans that has plagued the commercial banking industry for the past decade has also impacted the cost of credit for new borrowers, as institutions aim to ensure “they don’t fall into the same bucket”. “Domestically, what we have commenced with the Central Bank, is looking at how we educate the consumer in terms of how financial institutions price loans and deposits, how persons manage their affairs to ensure the most positive credit rating, and how persons shop around to seek the best opportunities,” he told Tribune Business. “There has to be consideration of education of the consumer as it relates to their ability to drive competition and pricing by their willingness to move and do business with institutions that may have better structures for their financial needs.”
LEGAL NOTICE
NOTICE BLUE LION LIMITED N O T I C E IS HEREBY GIVEN as follows: (a) BLUE LION 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 28th March, 2019 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said company is CST Administration (Bahamas) Limited, The Bahamas Financial Centre, Shirley and Charlotte Streets, PO Box N-3023, Nassau, Bahamas Dated this 29th day of March, A. D. 2019. _______________________________________ CST Administration (Bahamas) Limited Liquidator LEGAL NOTICE
NOTICE QUADRIFOGLIO LIMITED N O T I C E IS HEREBY GIVEN as follows: (a) QUADRIFOGLIO 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 28th March, 2019 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said company is CST Administration (Bahamas) Limited, The Bahamas Financial Centre, Shirley and Charlotte Streets, PO Box N-3023, Nassau, Bahamas Dated this 29th day of March, A. D. 2019. _______________________________________ CST Administration (Bahamas) Limited Liquidator
THE TRIBUNE
Friday, March 29, 2019, PAGE 7
Rising bond yields, company earnings boost US stocks By ALEX VEIGA Associated Press STOCKS finished broadly higher on Wall Street yesterday as bond yields rose, easing concerns about a troubling drop in long-term yields over the past week. Gains in financial, technology and industrial stocks outweighed losses in utilities and communications companies. Smaller company stocks outgained the broader market. Following a sharp rebound from a dismal end to 2018, the benchmark S&P 500 index is on track for its biggest quarterly gain since the third quarter of 2009. Yesterday’s rally, which followed a stumble earlier in the day, came as bond yields rose off their recent lows. The yield on the benchmark ten-year Treasury note rose to 2.39 percent from 2.37 percent late on Wednesday. “The markets are looking closely at bond yields, and the fact that bond yields have eased a little bit is a reason for the stock market to breathe a little easier today,” said Erik Davidson, chief investment officer at Wells Fargo Private Bank. The S&P 500 gained 10.07 points, or 0.4 percent, to 2,815.44. The Dow Jones Industrial Average rose 91.87 points, or 0.4 percent, to 25,717.46. The Nasdaq composite added 25.79 points, 0.3 percent, to 7,669.17. The Russell 2000 index of smaller company stocks picked up 12.87 points, or 0.8 percent, to 1,535.10. Major indexes in Europe finished mostly lower. Despite an uneven week of trading, the S&P 500 is
TRADER Timothy Nick works on the floor of the New York Stock Exchange. The US stock market opens at 9.30am EDT yesterday. Photo: Richard Drew/AP still up 12.3 percent so far in 2019, a blockbuster start to a year. Still, investors remain anxious about the slowing global economy and worrisome signals coming from the bond market. Key bond yields fell to their lowest levels in more than a year last Friday and continued to slide this week after the Federal Reserve said it was seeing slower growth in the economy and no longer expected to raise interest rates this year. Even after edging higher yesterday, the ten-year Treasury yield remained below the yield on the three-month Treasury bill. That kind of “inversion” in bond yields is an unusual phenomenon that has preceded recessions in the past. “When the yield curve inverts, on average, it’s about 18 months before the start of a recession,” Davidson said. “That would still be a long ways off and the markets can still
do pretty well between now and then.” The rise in bond yields gave bank stocks a boost. Citigroup gained 2.1 percent. Higher bond yields are good for banks because they can earn more income from the bonds they hold and they can charge higher interest rates on loans. Encouraging company earnings and outlooks also helped lift stocks yesterday. Movado jumped 22.8 percent after the watch maker reported strong earnings in its last quarter. Shares in PVH vaulted 14.8 percent after the parent company of Calvin Klein and other brands turned in solid quarterly results. Lululemon Athletica climbed 14.1 percent after the athletic apparel retailer posted betterthan-expected quarterly results and issued a positive outlook. Accenture was the biggest gainer in the technology sector after the consulting company’s latest quarterly results topped
Wall Street’s forecasts. The stock rose 5.2 percent. Verizon led the slide in communications services stocks, shedding three percent. Traders brushed off a discouraging US economic snapshot. The Commerce Department said US economic growth slowed sharply in the last three months of 2018 to an annual rate of just 2.2 percent, reflecting weakness in consumer spending, business investment, government spending and housing. Economists believe growth has slowed further in the current January-March quarter due to weaker growth prospects in China and Europe, the dampening effects on US exports from the Trump administration’s trade battles and the waning boost from the 2017 tax cut and government spending. The more downbeat outlook for economic growth has prompted the Federal Reserve to signal that it plans to keep its
benchmark interest rate on hold this year. Looking ahead, investors have their eye on several potential market-moving developments. Chinese and US trade negotiators are preparing for the latest round of talks aimed at ending a tariff war between the world’s two biggest economies. And in the United Kingdom, the countdown to Britain’s departure from the EU loomed today. In addition, the next big wave of corporate earnings kicks into gear in mid-April. Benchmark US crude fell 0.2 percent to settle at $59.30 a barrel. Brent
crude, used to price international oils, closed little changed at $67.82 a barrel. In other energy futures trading, wholesale gasoline fell 0.8 percent to $1.88 a gallon, heating oil slipped 0.4 percent to $1.97 a gallon and natural gas dropped 0.3 percent to $2.71 per 1,000 cubic feet. Gold fell 1.6 percent to $1,295.30 an ounce, silver lost 2.1 percent to $14.97 an ounce and copper added 0.3 percent to $2.87 a pound. The dollar rose to 110.58 yen from 110.36 yen on Wednesday. The euro weakened to $1.1226 from $1.1263. The British pound fell to $1.3059 from $1.3262.
PAGE 8, Friday, March 29, 2019
THE TRIBUNE
UK leader May rolling the dice again on Brexit deal LONDON Associated Press BRITISH Prime Minister Theresa May rolled the dice yesterday on another Brexit vote in Parliament, sending a tweaked and trimmed version of her EU divorce deal back to lawmakers who had rejected it twice before. But the agreement faced substantial opposition, even after May sacrificed her job for her deal, promising to quit if lawmakers approved the deal and let Britain leave the EU on schedule in May. House of Commons Leader Andrea Leadsom announced that Parliament would vote Friday on the 585-page withdrawal agreement that sets out the terms of Britain’s departure — but not a shorter declaration on future ties that is also part of the divorce deal agreed between the UK and the EU late last year. Its removal altered the deal enough to overcome a ban on against asking lawmakers the same question over and over again. If the withdrawal agreement is approved by 11 pm UK time, the EU has agreed to delay Britain’s departure from the bloc until May 22. If it is rejected, Britain has until April 12 to announce a new plan, or leave the bloc without a deal, risking severe disruption for people and businesses. “I encourage all MPs to support it and ensure that we leave the EU on the 22nd of May, giving people and businesses the certainty they need,” Leadsom said. May pledged on Wednesday that she would resign if the deal was approved, in hopes of blunting opposition from pro-Brexit lawmakers in her Conservative Party,
ANTI-Brexit demonstrators hold placards outside Parliament in London yesterday. British Prime Minister Theresa May is making a final effort to save her European Union withdrawal deal after her promise to quit failed to win over lawmakers from Northern Ireland. May pledged on Wednesday night that she would stand down if the deal were approved, in hopes of blunting opposition from lawmakers who have criticised her leadership. Photo: Kirsty Wigglesworth/AP who accuse her of negotiating a bad divorce deal that leaves Britain too closely tied to the bloc. Some prominent opponents, including former Foreign Secretary Boris Johnson, quickly said they would back the Brexit agreement, but Northern Ireland’s Democratic Unionist Party said it remained opposed because of concern that the deal treats the region differently from other parts of the UK. The main opposition Labour Party also said it would not vote for the deal today.
Labour Party Brexit spokesman Keir Starmer said removing the political declaration, which sets out a loose framework for future relations between Britain and the bloc, would leave the next stage of negotiations in the hands of May’s successor. That is very likely to be someone from the hard-line pro-Brexit wing of the Conservative Party. Starmer said it would amount to “leaving the EU with absolutely no idea where we’re heading”. Almost three years after Britain voted to leave the EU, Brexit has brought the
country’s political system to a standstill. The impasse has frustrated EU politicians trying to negotiate an exit agreement, and it has surprised observers around the world who had viewed Britain’s 1,000-year-old parliamentary system as a model of stability. It has not always deserved that reputation. The British system works best when one party has a parliamentary majority and can pass legislation. Minority governments struggle and seldom last long. The current situation is almost unprecedented: Britain has a minority
government and a lameduck prime minister, with both main parties split down the middle over how and whether to leave the EU. The gridlock has brought the country to the precipice of a chaotic departure from the EU. Pro-EU Conservative lawmaker Ken Clarke said Parliament was mired in “confusion and mayhem”. “We’ve wasted the first three years. We’re back almost at square one,” he said. On Wednesday lawmakers held a series of votes in a bid to find an alternative
to May’s unpopular deal, in an attempt to break the deadlock. The results merely underscored the divisions in Parliament and the country over Brexit. The idea of remaining in a customs union with the EU came closest to winning a majority, with 264 lawmakers for it and 272 against. The most popular option was the idea of holding a second referendum on any Brexit deal approved by Parliament, which was backed by 268 lawmakers, but opposed by 295. The plan is for the most popular ideas to move to a second vote on Monday to find an option that can command a majority. Parliament would then instruct the government to negotiate that plan with the EU — although May has refused to say she will be bound by the results. Labour Party legislator Margaret Beckett said lawmakers who had been “wedded to particular proposals” now needed to compromise in Britain’s national interest. “They are going to have to look over the abyss,” she said. Business groups expressed alarm at the impasse, which has left companies uncertain whether they will face tariffs, customs checks and other barriers to trade with the EU in just a couple of weeks. “No one would run a business like this — and it is no way to run a country,” said Adam Marshall, director-general of the British Chambers of Commerce. He told politicians to stop “chasing rainbows” and “start making tough decisions, however personally or politically difficult they might be.”