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WEDNESDAY, MAY 17, 2017

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Bahamian businesses hit worst by gun crime By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

The Bahamas leads the Caribbean when it comes to the victimisation of businesses by gun violence and Internet fraud, with crimerelated costs higher here than anywhere else in this region A new Inter-American Development Bank (IDB) study yesterday further exposed crime’s true cost for the Bahamian economy and society, with more than 20 per cent of crime-hit local businesses victimised by gun-toting armed robbers. The report, ‘Restoring Paradise in the Caribbean’, also found that Bahamian businesses had been hardest hit by cyber crime and Internet-based fraud, with four out of every 10 impacted. “Overall, 17 per cent of firms surveyed in the 13 Caribbean countries reported Internet fraud,” the IDB report’s authors found. “Cyber-crime appears to be a bigger problem in the Bahamas and Trinidad and Tobago, with 41 per cent and 33 per cent of all businesses, respectively, reporting Internet fraud in

Study finds nation leads Caribbean on Internet crime Crime’s private sector cost highest in Bahamas Nation losing $268m to $408m annually the last year. No businesses reported this crime in Jamaica and Barbados and only 4 per cent (five firms) experienced Internet fraud in Suriname.” No explanation was provided for the high level of Internet-based crime in the Bahamas, but the report found that companies in this nation were also impacted most by gun crime and armed robberies. “The use of guns was highest in the Bahamas, Jamaica, and Trinidad and Tobago,” the IDB report said, with just over 20 per cent of crime-hit Bahamian businesses suffering from this. This was the highest in the region, exceeding the See pg b5

DPM: BOB rescue ‘hasn’t worked’ as losses grow 61% By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

New Board will see ‘how best to deal’ with crisis bank

The Deputy Prime Minister yesterday declared that all efforts to rescue stricken Bank of the Bahamas (BOB) have “obviously not worked to-date”, after the insolvent institution’s losses jumped 61 per cent for the 2017 financial year to-date. K P Turnquest told Tribune Business that the BISX-listed institution’s new Board, set to be appointed imminently by the new government, would be charged with determining “how best to deal” with its numerous problems. Pledging that the Dr Hubert Minnis-led administration will continue to stand behind BOB, especially since the Government is its 79 per cent majority shareholder, Mr Turnquest said “critical decisions” had to be made on the loss-making bank that threatens to become a continual drain on taxpayers. “I think the situation at Bank of the Bahamas is well known. It is an issue we ought to be very careful about,” the Deputy Prime Minister said, after BOB reported its results for the nine months to end-March 2017. “Nonetheless, having said all that, the Government of the Bahamas will See pg b6

A former Cabinet minister yesterday urged the new government to “fully disclose” the energy supply deal entered into by its predecessor, questioning who would finance the multi-million dollar BPL “conversion” bill. Phenton Neymour, who had ministerial responsibility for BEC between 20072012, told Tribune Business that it was “unacceptable” for the former Christie administration process to have run such a secretive bidding process for so important an asset. He questioned what the previous government “had to hide” in soliciting bids for new fuel supply for BEC’s successor entity, Bahamas Power & Light (BPL), if the agreement signed by the Christie Cabinet was as beneficial as claimed. See pg b4

Ex-minister’s fear on multi-million ‘convert’ bill Slams former Govt’s secrecy as ‘unacceptable’ Worried any deal may impede actions over BPL

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The Central Bank yesterday made good on its pledge to introduce electronic payments regulation by mid-year 2017, unveiling a short one-month consultation on the proposed supervisory framework. The regulator, in a statement,

Govt takes just 1/3 of BOB bond Subscribes for just $10m of total $30 million issue Regulator concerns likely to have interfered Shareholder demands AGM and chairman change

Loan loss provisions jump over 50% to end-March

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

BISX-listed bank insolvent without $100m bond

The Government took up just one-third of Bank of the Bahamas’ controversial $30 million bond issue, which is now at the centre of the latter’s regulatory dispute with the Central Bank. The troubled BISX-listed institution’s results for the nine months to end-March 31, 2017, which were released yesterday, revealed that the former Christie administration took up only one of the three $10 million contingent convertible bond issues. “The bank offered a private placement of $30 million at 3.125 per cent fixed rate Perpetual Contingent Convertible Bonds to accredited investors only,” BOB’s financial statement notes said. “This private placement was offered in three tranches of $10 million each. The first tranche has been subscribed by and issued to the Government as at December 31, 2016. This private placement offering has ended and closed on February 28, 2017.” Capital markets analysts believe the bonds, with their extremely low interest rate yields, were structured so that the sole purchaser would be the Government, See pg b5

K Peter Turnquest

Govt urged: ‘Fully disclose’ Central Bank makes good on e-payment regulation promise Christie’s BPL agreements By NEIL HARTNELL acknowledged that the feedBy NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

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back deadline was “abbreviated” to allow it to vet and license existing providers of electronic payments solutions. It confirmed that the Payment Instruments (Oversight) Regulations 2017, released yesterday, were the first step towards licensing non-bank providers via a formal supervisory framework, bringing them See pg b7

Hits mid-year target on consultation launch Sets ‘abbreviated’ one-month consultation

PAGE 2, Wednesday, May 17, 2017

THE TRIBUNE

Seeing the light with solar AC Think about your home. What is the single biggest consumer of power? What is the biggest part of your electricity bill? Since you read the title of this article, I am going to go out on a limb and guessed you said “my air conditioning”. We often use air conditioning (AC) to avoid sweat, and we definitely pay for it. Many of my clients tell me their electricity bill multiplies two or three times in the summer when they run their AC. In addition to anecdotal evidence, we also have statistical data. According to the US Department of Energy, 45 per cent of an average home’s energy bill stems from air conditioning. It is one of the most power-hungry items in your home or business. Without it, you will sweat this summer. With it, you may still sweat over the electricity bill you will have to pay. We operate this way, but we do not have to. What if you could have the air conditioning, but not pay a fortune for it? You can. Here is the good news: Solar air conditioners are a reality. A solar air conditioner is exactly what it sounds like. It is a unit specifically designed to work with solar panels. They take the light from our simmering sun and produce the cool air we all want. While they

are not ideal for every situation, solar air conditioners are a solution that deserves strong consideration. The first question most people ask is: “Will the solar air conditioner run at night?” Yes. Solar air conditioners are grid-tied, which means they are connected to Bahamas Power & Light (BPL). So when the sun does not shine, they will still run. How much do they cost to run? During the day, they operate above 35 SEER, which means they cost just 51 cents to run all day. That is a month of daytime air conditioning for about $15. Businesses that operate during the day, and residences with people at home in the day, are using solar air conditioners because of the huge savings. At night, the units operate at 21 SEER, which is still very high. That means they can run for none hours without sun at just $2.36. In fact, for homeowners, they let the AC run all day - when it is free - whether or not they are there. This means that when they get home in the evening, the living space, furniture and even the walls are already cool. As a result, they pay BPL even less to run the AC at night. Solar air conditioners can be installed in conjunction with other cooling solutions, such as solar attic vents, so you

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Joshua key SuperGreen Solutions

experience even more savings. I was speaking with a family who hosts a guest stay every year. When their guest runs air conditioning, their electricity bill goes up by $300. A solar air conditioner would make a big difference here. What about for you? Can you see your power bill starting to drop? Are you sweating a bit less? Summer used to mean sweat. But warrantied green solutions are saving people money and keeping them cool. Do you need a new air conditioner this summer? There is no need to settle for an old-style unit. Are you tired of high energy bills? With a solar air conditioner, you take a huge chunk off the biggest piece of your bill. This is one of many affordable solutions to make the Bahamas greener and put green in your pocket. • NB: Joshua Key is general manager for SuperGreen Solutions Bahamas, located on Wulff Road next to FYP. SuperGreen Solutions is one of the premier advisors, suppliers and installers of domestic and commercial energy efficient solutions.

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Wednesday, May 17, 2017, PAGE 3

New Minister: Landfill still a ‘major priority’ By NATARIO McKENZIE

Tribune BusinessReporter

nmckenzie@tribunemedia.net The newly-appointed Minister of the Environment and Housing yesterday said tackling the New Providence landfill’s woes remains a major priority, acknowledging that he was in the process of “digesting everything” in his portfolio. Speaking briefly with Tribune Business yesterday following the new administration’s first official Cabinet meeting, Romauld Ferriera said: “I’m still in the process of digesting everything. I feel really excited to be doing the people’s business, but I want to see what I’m looking at. It’s a lot of material to digest but I’m on it.” He added: “As soon as I have I will be in full and open communication with the Bahamian people. Everything is a priority. Obviously the

dump is a major priority. There’s nothing like the insider’s point of view.” His predecessor, Kenred Dorsett, previously confirmed to Tribune Business that two bids had been submitted for the New Providence landfill’s management and remediation. One of the bidders is the Bahamian Waste Resources Development Group (WRDG) and its partner, Providence Advisors chief, Kenwood Kerr. The other is understood to be foreign. The former Christie government had committed to resolving the New Providence landfill’s woes by year-end December 2017 as part of its Heads of Agreement with Baha Mar’s new owner. Its April 25, 2017, Heads of Agreement with Chow Tai Fook Enterprises (CTFE)stipulates that any failure by the Government to resolve the landfill’s problems by that date will

be treated as “a force majeure” event. Private sector groups had been given eight days to submit bids to take over the New Providence landfill’s management and remediation. Local waste management industry sources previously complained to Tribune Business that the bid deadlines gave too little time for interested parties to conduct proper due diligence following the recent blaze, especially since its remediation is one of the Government’s requirements. Renew Bahamas walked away from its New Providence landfill management contract in the immediate aftermath of Hurricane Matthew, citing security and safety concerns amid the absence of electricity supply, and a spate of thefts and shootings. It had previously been seeking to renegotiate its management contract and

The New Providence landfill associated financial terms with the Christie administration, having revealed to Tribune Business it had been incurring continuous, heavy losses.

Sterling chairman readies to address Canadian landfall Sterling Global Financial’s chairman has been invited to speak during the Bahamas Financial Services Board’s (BFSB) upcoming Canadian promotional tour. David Kosoy will speak twice during the Bahamas Landfall, Destination Canada, event. He will present an overview of private banking in the Bahamas on May 30, 2017, at Hotel Le Crystal in Montreal, and again the following day at the Toronto Region Board of Trade. Sterling Global Financial holds a bank and trust license in the Bahamas, and manages New Providence Capital Management Partners, Sterling Mortgage Income Fund and the Sterling Global Opportunity Fund. The group also operates Sterling Trust Cayman, which is one of the oldest trust companies in the Cayman Islands. It provides a range of fiduciary and administrative services to its clients. Sterling’s primary investment focus is in real estate and related services, including mortgage lending, and it has active investments and projects throughout the Caribbean and North America. Sterling has more than $9 billion in assets under administration, and serves some 1,500 clients.

The Government subsequently charged that Renew Bahamas had used Hurricane Matthew as an excuse to pull-out, having realised that its business model -

TUC president targets better labour relations By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Trades Union Congress’s (TUC) president said yesterday he hoped for more peaceful industrial relations in the Bahamas following the new administration’s election, adding that he did not want a repeat of the past 12 months. Obie Ferguson, who was referencing the dispute with Sandals Royal Bahamian, told Tribune Business: “What I hope for with this new administration is a working relationship with a view to resolving those outstanding issues which are very important for the workers, and indeed for the country, so that we can have a more peaceful industrial relations.” Mr Ferguson added: “One thing that has been very damaging to the workers was when the former Attorney General issued a nolle prosequi in the case against the Sandals executives, and Bahamian workers had to fight to have the same done

David Kosoy Chairman Sterling Global Financial

which depended almost exclusively on the sale and export of materials recycled from the landfill - was not viable or sustainable.

to their matter. “That was a cardinal sin. We hope that with this new minister that that kind of thing does not happen. We want to have a respectful working relationship with the Minister of Labour, having regard for all of the parties. “If we can develop that kind of relationship I think that would be very productive. I want us to be able to resolve our issues without there being any disrespect.” The TUC and its affiliates had blasted the former Christie administration over its handling of the dispute at Sandals Royal Bahamian, which escalated when the resort terminated its 592 staff to facilitate a three-four month renovation programme. The union expressed shock after former Attorney General, Allyson Maynard-Gibson, directed the courts to “discontinue” criminal proceedings the union had brought against Sandals Royal Bahamian and its top executives over alleged union busting tactics.

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PAGE 4, Wednesday, May 17, 2017

Govt urged: ‘Fully disclose’ Christie’s BPL agreements From pg B1 Mr Neymour said Perry Christie, in touting the deal during his resignation as Progressive Liberal Party (PLP) leader, raised numerous unanswered questions, including whether it was also intended to benefit

Grand Bahama Power Company customers. He added, though, that his primary concern was who would finance the multimillion dollar ‘conversion’ of BPL’s existing, aged generation units, as these were currently unable to burn the

liquefied natural gas (LNG) cited by Mr Christie. Mr Neymour also warned that the former administration’s ‘agreement’ could impede the Dr Hubert Minnis-led government’s efforts to get to grips with BPL’s financial and operational challenges, with load shedding already occurring on New Providence yesterday. Kenred Dorsett, former

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minster of the environment and one of those asked by Mr Christie to disclose the agreement’s terms, yesterday told Tribune Business that ex-deputy prime minister, Philip Davis, would issue a statement on the matter. Mr Dorsett said that while he “knew about the arrangement”, Mr Davis, as former minister with responsibility for BPL, had been more directly involved. He added that he wanted to check the details, and co-ordinate with Mr Davis, agreeing that they should be disclosed and promising to get back to Tribune Business. He never did, and calls to Mr Dorsett’s cell phone last night were not returned. Mr Davis did not respond to Tribune Business e-mail requests seeking comment, and details on the energy supply agreement, before press time last night. No statement was forthcoming by that time. Mr Christie is always hard to de-code, but his resignation comments implied that the former government had entered into some kind of natural gas (LNG) supply deal with an unnamed company (New Fortress Energy), involving the construction of facilities in Freeport and New Providence. He confirmed previous Tribune Business revelations that the deal was signed-off by his Cabinet just days before the May 10 general election, but then implied that it was nonbinding on the incoming Minnis administration. Mr Neymour, adding his voice to those expressing disquiet over the Christie administration’s seeming haste to sign a deal that could ‘tie the hands of its successor, slammed its efforts to shroud the process in secrecy. “I am extremely disappointed that the previous government would find it fit to not even consult the Bahamian people on one of their greatest assets,” he told Tribune Business. “The Bahamian people own BPL, and if their assets are being sold they should be consulted on this agreement, or at least be aware there is an offer on the table for consideration.

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“I consider that to be unacceptable. I am calling on this agreement made under the previous administration to be fully disclosed. The Bahamian people own the assets.” Tribune Business exclusively revealed just days before the general election that the Christie administration had secretly been soliciting bids to provide BPL with new fuel sources, and possibly even new generation assets and a power plant. Multiple sources, including some linked to energy industry players approached, said several groups had been invited to participate in “a very weird Request for Proposal (RFP)” initiated by the Christie administration. Tribune Business was told that the process, run directly out of Prime Minister Perry Christie’s office, set different terms and bid criteria for the various energy groups, with timelines similar to the tight deadlines involved in the New Providence landfill tender. The leading contender was said to be New Fortress Energy, the subsidiary of a $72 billion New York-based asset manager, which signed a 2015 agreement to supply liquefied natural gas (LNG) to Jamaica Public Service Company (JPS), that Caribbean island’s energy provider. Mr Neymour told Tribune Business: “The first question that has to be asked is: Why did the [Christie] Government enter into an agreement in secrecy? “What did they have to hide? What did they have to fear if it was in the interests of the Bahamian people? If it was to their betterment, you’d expect it to be disclosed.” The former minister said Mr Christie’s comments raised numerous questions yet to be answered, including whether the deal also involved supplying LNG to Grand Bahama Power Company, a private utility not owned by the Government. However, Mr Neymour said the key issue was “the conversion of existing equipment” at BPL to enable its generation units to use LNG as their fuel source - a multimillion dollar upgrade that neither the utility nor the

Government could likely afford. “That would require some conversion of very old equipment and BPL does not have the capital for the conversion,” he added.”Who will pay for the capital for the conversion? “That needs to be discussed with the Bahamian public. These are basis questions we have no answers to. I’m extremely concerned.” Tribune Business previously reported that the Christie administration’s ‘deal’ would likely involve the supply of LNG fuel to BPL at a set price, providing certainty and lowering the cost of the latter’s fuel charge. In so doing, the overall cost of electricity will be slashed for Bahamian businesses and households, and reliability improved. This newspaper also reported that any such agreement would involve new generation units, and possibly an entirely new power plant, with the latter’s owner supplying BPL under a 25year power purchase agreement (PPA) and eventually handing the facility over to the Government. Energy industry sources, though, have questioned whether LNG is an appropriate fuel for the Bahamas, arguing that it only works in countries with larger populations. “LNG is good, but is good for mass markets,” one source, speaking on condition of anonymity, told Tribune Business. “With a 300,000-400,000 population, we don’t have the capacity to make LNG an efficient fuel source for us. We don’t have the capacity to pay for it.” The source explained that the Bahamas’ energy demand would not generate sufficient LNG volumes for the supplier, making any potential arrangement uneconomic. They also pointed to New Fortress’s tie-up with JPS in Jamaica, suggesting that this arrangement had failed to deliver the promised benefits, and the latter was now being forced to convert all its power plants to LNG to make the deal work. Mr Neymour, meanwhile, warned that the Christie administration’s dealings could “make the challenge even greater when it comes to turning BPL around, especially if it is bound by an agreement. “The new administration has to get to work immediately to resolve these issues,” he added. “I have said before that the issues of Baha Mar and BPL will be two of the major issues this government has to face head on. There’s no honeymoon period with BPL, no honeymoon period.”

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THE TRIBUNE

Wednesday, May 17, 2017, PAGE 5

Fertile ground Govt takes just for Home Depot 1/3 of BOB bond as gardening the Central Bank. From pg B1 For they were one of the is BOB’s 79 per cent season begins which subjects identified in the majority shareholder.

ATLANTA (AP) — Home Depot has found fertile ground this first quarter as the gardening season begins and Americans, while pulling back on spending elsewhere, appear more than ready to plow money into projects at home. The home improvement retailer topped expectations for profit and revenue and it raised its profit outlook for the year, sending shares toward an all-time high before the opening bell Tuesday. Economic data released by the U.S. last week showed that Americans are spending a lot of money at places like hardware stores even as they cut down on budgets for clothing and other items. The Commerce Department on Tuesday reported that new home construction fell for the second consecutive month in April, but that was led by a big drop in construction of apartments, a volatile sector. New home construction has been a bright spot for the U.S. economy. With job growth expected to continue, economists believe homes sales will jump in coming months. That economic data is playing out at the cash registers of Home Depot. For the three months ended April 30, revenue climbed to $23.89 billion from $22.76 billion. Analysts surveyed by Zacks Investment Research predicted revenue of $23.74 billion. Sales at stores open at least a year jumped 5.5 percent worldwide, and 6 percent in the U.S. Industry analysts closely monitor those sales as a key gauge of a retailer’s health because it excludes the volatility of stores recently opened or closed. Home Depot Inc. earned $2.01 billion, or $1.67 per share, beating per-share projections on Wall Street by 6 cents. A year earlier, it earned $1.8 billion, or $1.44 per share. The Atlanta company now anticipates full-year earnings of $7.15 per share, up 2 cents from prior guidance. Analysts polled by FactSet expect earnings of $7.20 per share.

Many viewed it as another taxpayer-funded bail-out of the stricken commercial bank, and it is unclear why the former Christie administration failed to pick up the final two issues, worth a combined $20 million in capital to BOB. Mike Lightbourn, Coldwell Banker Lightbourn Realty’s president, and a BOB minority shareholder, yesterday suggested to Tribune Business that the Christie administration did not subscribe for the final two-thirds because the Treasury did not have the necessary funds. “I guess they didn’t have it,” he said. However, BOB and its government-appoimted Board, and the former administration, may have been given pause for thought over the bonds by

February 8, 2017, supervisory mandates issued to BOB by its primary regulator. The third of four Central Bank requirements mandated that BOB “convert the first $10 million tranche of contingent convertible bonds to common equity Tier 1 capital, and all future capital injections must be paid in cash and constitute common equity Tier 1 capital”. That demand is one of two BOB is seeking to resist through its Supreme Court action against the Central Bank, with many suspecting that the move was initiated because the bank - and the Christie administration - lacked the additional capital required to meet the regulator’s requirements. Mr Lightbourn, meanwhile, called for BOB to hold an annual general

Bahamian businesses hit worst by gun crime From pg B1 average 16 per cent, which highlights just how much more work is needed to remove firearms from the Bahamas’ homes and streets. Knives were used against 15 per cent of victimised Bahamian companies, with a similar percentage reporting that ‘other’ weapons were used. Added up, this means that 50 per cent of crime-hit firms in this nation were attacked by criminals wielding weapons. The IDB report found that around 23 per cent of Bahamian companies were impacted by crimes such as internal theft, vandalism, robbery or arson in the past year, placing this nation in line with the Caribbean average. The data showed there was no discrimination between small, medium and large businesses, with an equal proportion hit across the three categories.

“Crimes occur fairly equally during working hours (49 per cent) and outside of working hours (51 per cent), with very little variation between countries,” the IDB report found. “Theft and robbery occur more frequently during working hours, while vandalism occurs more frequently outside of working hours.” It added: “Where respondents answered questions regarding the perpetrator, most perpetrators were thought to be gangaffiliated (36 per cent. “Within the region, the Bahamas, Trinidad and Tobago and Jamaica stand out with higher reports of gangrelated perpetrators (52 per cent, 45 per cent, and 28 per cent, respectively).” When it came to frequency, 60 per cent of impacted Bahamian companies reported suffering between two to five loss episodes due

meeting (AGM) of shareholders were the 21 per cent minority were allowed to fully raise all their concerns. “I’d love for there to be one [an AGM], and I’m sure now there will be,” he told Tribune Business. “If there’s a new chairman, that’s positive.” BOB has yet to hold an AGM, or even issue an annual report, for its 2016 financial year, which closed more than 10 months ago on June 30, 2016. Nothing has been heard from either the Securities Commission or BISX on the bank’s failure to provide timely disclosure to its investors. Mr Lightbourn criticised BOB’s current chairman, Richard Demeritte, for quickly closing down negative questions at the bank’s last AGM. He added: “I hope that when we have an AGM that Richard Demeritte is not there, and whoever is chairman will arrange to have questions answered with no restrictions.” On the continued delay

over an AGM and annual report, Mr Lightbourn said the scale of BOB’s woes, with the bank possibly “collapsing at a moment’s notice on a day-to-day basis”, meant it was impossible “to get their ducks in a row”. BOB’s acting managing director, Renee Davis, sought to provide shareholders with an optimistic outlook in her latest report, arguing that the bank was making “positive strides”. “Sustainable growth, effective management of our non-performing loans and improving operational efficiency remain the primary focus for the bank,” she said. “As we prudently, systematically and urgently improve in these areas, the bank will return to profitability. Management is optimistic that the bank is on the path to recovery.” She added: “As we report on our third quarter results we continue to focus on our initiatives around collections, sales and services, corporate governance, cost optimisation and customer

care. “Through these initiatives, we at BOB are committed to returning the bank to profitability, ensuring that each customer experience is exceptional, and that the solutions we provide are cutting edge.” Mrs Davis said BOB’s total operating income rose by $0.8 million, or 10.2 per cent, for the quarter to endMarch 2017, although this was not enough to reverse a 1.48 per cent or $400,000 decline for the first nine months. “The bank continued to manage our shareholders’ resources judiciously, as we successfully reduced operating expenses by $0.3 million or 3.67 per cent for the quarter, and $0.9 million or 3.58 per cent year-to-date,” she added. “Through various sales and services programmes, the bank has been focused on growing its revenue base, and as a result we have seen overall increases in net fees and commission income of more than $1 million yearover-year.”

to crime, And the Bahamas trailed only Trinidad & Tobago when it came to the proportion of businesses that spend money on security, standing at near 80 per cent. As a percentage of sales, security costs were third highest in the Bahamas at 3.8 per cent. And average annual losses due to theft and vandalism were also in line with the Caribbean average, costing Bahamian firms a sum around 2.5 per cent of annual sales. “The country that emerges as having the highest amount of crime-related costs is the Bahamas, where our lower-bound estimate for 2013 indicates that those costs represent about 3.09 per cent of the country’s GDP,” the IDB report revealed. “The upper-bound estimate is 4.8 per cent.” The study thus placed crime’s total cost for the Bahamian economy and society at between $268.31 million to $408.62 per annum, inclusive of government, private sector and

social costs. The IDB report said the costs were shared equally between the Government and private sector, standing at between $98.9 million and $167.15 million for the former, and $84.39 million and $161.39 million for the business community. These figures represent funds that could have been invested by companies in job-creating investments and expansions, or used by the Government to improve health and education. “By using an accounting method, we have estimated that the welfare costs of crime and violence are around 3 per cent of GDP of the region, with Barbados being the country least affected and the Bahamas the most,” the IDB report’s authors said. “This is a conservative estimate, as it does not include other direct and indirect costs such as violence prevention programmes, health expenses due to violence, or the impact of crime on other outcomes like property prices.”

The study reiterated that only Honduras and El Salvador suffered from a higher cost of crime than the Bahamas when the same methodology was applied. Turning back to the Caribbean, it added: “The lowest figures are reported for Barbados, where our lowerbound estimate for 2014 shows that crime-related costs amount to 1.84 percent of GDP, while our upper estimate amounts to 2.7 per cent, almost 2 percentage points lower than the Bahamas’ upper estimate. Jamaica and Trinidad and Tobago fall in between. It can be seen that between the three categories of crime-related costs, costs incurred by the Government are the highest in every country, ranging between 1.5 and 2 per cent of GDP. “Only the upper estimate of the costs incurred by the private sector in the Bahamas exceeds the costs incurred by the Government. In fact, private costs are the highest in that country, and lowest in Barbados.”

NOTICE

NOTICE is hereby given that JAMES GABRIEL of Market Street, New Providence, 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 10th day of May, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that DEBORAH ESTIMABLE of #8 Wrexham Drive, Freeport, Grand Bahama, 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 10th day of May, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

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Chief Product & Project Officer Essential Duties & Functions: (Includes but not limited to) • • • •

• • • • • • •

Oversee and plan production management systems and processes and direct business strategy. Establish methodologies and procedures for conducting research, design conceptualization, phototyping and product development Responsible for identifying potential products and conducting market research; generating product requirements and time integrated plans for product introduction Develop strategic plans and delivery across technology, product, marketing and operations Oversee the company’s market research as it relates to production development Oversee and manage Company projects and initiatives that drive the goals of the business Assess the nature and scope of the present and future product lines and review products specifications Analyze product requirements and product development Manage all production projects of the company and provide measureable results Ensue quality controls standards are implemented and achieved Assist with product training and develop strategies and tools to strengthen processes and satisfaction

• Introduce and market new products by developing time-integrated plans with sales, advertising, and production • Asses market competition and provide source data for product line • Plan and organize production schedules • Build development team and ensure key performance indicators are in place and production targets are met • Evaluate the business and develop project goals, advise and implement strategies • Oversee performance of various product analyses, identifying gaps and recommend strategies to establish product differentiation

Interested candidates are required to possess the following managerial skills and qualifications: • • • • • • •

•

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Interested qualified candidates may submit their resume via email to info@242careers.com. Deadline for submissions – May 19th, 2017 Only successful candidates will be contacted.

PAGE 6, Wednesday, May 17, 2017

DPM: BOB rescue ‘hasn’t worked’ as losses grow 61% From pg B1 certainly stand behind the bank, and we will certainly do everything in our power to have it put on the path to recovery as quickly as possible.” With BOB’s nine-figure losses over the past three years continuing to increase, and the bank now embroiled in a court battle with the Central Bank of the Bahamas, another taxpayer-financed bail-out looms as increasingly likely. When asked whether BOB would likely represent a short-term drag on Bahamian taxpayers, Mr Turnquest replied: “Exactly.” However, he stopped short of confirming that another injection of public funds is imminent. “I think we’re going to have to look at a number of strategies,” he told Tribune Business, “and as we appoint the new Board they’ll

be charged to determine the way forward and how best to deal with the bank. “Obviously, the restructuring exercises to-date have not worked, and we have to make critical decisions on how we go forward.” The Government, under the former Christie administration, financed the initial BOB ‘bail out’ in October 2014 via a ‘bonds for loans’ swap, whereby a net $45.2 million in ‘bad’ loans were taken off the bank’s balance sheet in exchange for a $100 million promissory note. The liability associated with those loans, and responsibility for collecting them, was transferred to Bahamian taxpayers. This ‘bail out’ was followed last year by the Government taking up BOB’s entire $40 million rights issue, and investing a further $10 million in the bank’s contin-

gent convertible bond issue. Mr Turnquest did not reveal who the new Board’s members will be yesterday, as BOB’s financial statements for the third quarter of its current financial year provided little comfort to both the Government and shareholders that a turnaround is imminent. BOB’s total comprehensive loss for the nine months to end-March 2017 jumped by 69 per cent year-overyear, growing from $6.707 million to $10.793 million. Renee Davis, BOB’s managing director, blamed the increased ‘red ink’ on its “conservative” loan loss provisions, which she said stood at 18.7 per cent of its total loan portfolio compared to the 6.5 per cent industry average. However, this could also be viewed as further evidence of BOB’s poorquality loan portfolio. Its financials for the year to end-June 2016, as first revealed by Tribune Business, disclosed that a staggering 46.07 per cent, or $234.886 million of its then-$510

million loan portfolio, was non-performing - meaning it was 90 days or more past due. BOB’s loan loss provisions for the nine months to end-March were up 50.3 per cent year-over-year, standing at $13.858 million compared to $9.22 million for the same period in 2016. Mrs Davis’s report to BOB’s long-suffering shareholders attempted to focus on the positive, pointing to a more than $1 million yearover-year rise in net fee and commission income. Referring to the ‘turnaround plan’ unveiled at BOB’s last annual general meeting (AGM), Mrs Davis said: “The bank has successfully restructured more than $22 million since the start of the transformation strategy. “One of the bank’s most successful initiatives is the debt-consolidation programme, which contributed $27.5 million in new loans. The bank continued to be in compliance with its key capital ratios of Tier 1 and Total Capital.”

THE TRIBUNE

The latter, though, was only achieved through the Government’s take-up of the $40 million rights issue. And Mrs Davis’s report was almost as notable for what was not in it, as there was no mention of its legal battle with the Central Bank, and bid to seek Supreme Court protection from the regulator’s impositions. BOB’s end-March 2017 balance sheet also confirmed that the bank would be insolvent without the $100 million ‘promissory note’ injected in the 2014 bail out, for otherwise liabilities would exceed assets by almost $11 million. The balance sheet also showed a declining loan book and shrinking deposit base, with the latter down by more than $143 million or 18.8 per cent since June 30, 2016. BOB’s accumulated deficit, or total losses, stood at $105.029 million at March

31, 2017, almost double the $54.622 million ‘special retained earnings’ it was able to ‘write back’ into its balance sheet following the Bahamas Resolve ‘bail out’. The Minnis administration, in a statement issued last night, said: “The Government of the Bahamas acknowledges that the Bank of the Bahamas is a systemically important financial institution, and as such is fully committed to its success. “The Government further acknowledges the concerns of the various stakeholders with respect to the bank’s capital, liquidity and governance. “In its role as the majority shareholder, the Government is committed to working with the Board, management and regulators in comprehensively addressing all of these issues and returning the bank to sustained profitability.”

NOTICE SIOUX LIMITED N O T I C E IS HEREBY GIVEN as follows:

NOTICE

WINDWARD ASSETS LIMITED

RIO MANAGEMENT LIMITED

a) SIOUX LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

N O T I C E IS HEREBY GIVEN as follows:

a) WINDWARD ASSETS LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

a) RIO MANAGEMENT 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 15th May, 2017 when the Articles of Dissolution were submitted to and registered by the Registrar General.

c) The Liquidator of the said company is Octagon Management Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, Nassau, Bahamas.

Dated this 17th day of May, A. D. 2017

_________________________________ Octagon Management Limited Liquidator

MARKET REPORT TUESDAY, 16 MAY 2017

t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com

BISX ALL SHARE INDEX: CLOSE 1,889.59 | CHG -0.03 | %CHG 0.00 | YTD -48.62 | YTD% -2.51 BISX LISTED & TRADED SECURITIES 52WK HI 4.38 17.43 9.09 3.56 4.70 0.13 6.76 8.60 6.10 10.60 15.27 2.72 1.60 6.00 10.00 11.00 10.00 6.90 12.01 11.00

52WK LOW 3.20 17.43 8.19 3.50 1.64 0.12 3.80 8.20 5.69 8.99 11.00 2.18 1.31 5.80 7.50 8.56 7.15 6.35 11.92 10.00

1000.00 1000.00 1000.00 1000.00

900.00 1000.00 1000.00 1000.00

PREFERENCE SHARES

1.00 106.00 100.00 106.00 105.00 105.00 100.00 10.00 1.01

1.00 105.50 100.00 100.00 105.00 100.00 100.00 10.00 1.01

SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Famguard Fidelity Bank Finco Focol ICD Utilities J. S. Johnson Premier Real Estate 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 100.00 100.00 100.00

52WK LOW 100.00 100.00 100.00

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS FAM FBB FIN FCL ICD JSJ PRE CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

SECURITY Fidelity Bank Note 17 (Series A) + Fidelity Bank Note 18 (Series E) + Fidelity Bank Note 22 (Series B) +

SYMBOL FBB17 FBB18 FBB22

Bahamas Note 6.95 (2029) BGS: 2014-12-3Y 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 BG0103 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407

BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

113.70 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

MUTUAL FUNDS 52WK HI 2.05 3.92 1.95 169.70 141.76 1.47 1.67 1.57 1.10 6.96 8.50 6.30 9.94 11.21 10.46

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.41 1.61 1.52 1.03 6.41 7.62 5.66 8.65 10.54 9.57

LAST CLOSE 4.38 15.85 9.09 3.54 1.77 0.12 4.05 8.60 6.00 10.51 11.50 2.30 1.55 6.00 9.75 9.00 9.95 6.90 12.01 10.00 1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.01 LAST SALE 100.00 100.00 100.00 108.90 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

CLOSE 4.38 15.85 9.09 3.54 1.77 0.12 4.05 8.60 6.00 10.51 11.50 2.38 1.55 6.00 9.75 9.00 9.95 6.90 12.01 10.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.08 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.01

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 100.00 100.00 100.00

CHANGE 0.00 0.00 0.00

109.14 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.24 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

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

VOLUME

1,500 3,400

VOLUME

NAV 2.05 3.92 1.95 168.44 141.76 1.47 1.64 1.56 1.04 6.96 8.50 6.30 9.80 11.13 9.63

EPS$ 0.029 1.002 -0.144 0.170 -0.130 0.000 -0.030 0.607 0.430 0.450 0.110 0.102 0.080 0.300 0.520 0.960 0.820 0.294 0.610 0.000

DIV$ 0.080 1.000 0.000 0.210 0.000 0.000 0.090 0.300 0.220 0.360 0.490 0.060 0.060 0.240 0.400 0.000 0.330 0.140 0.640 0.000

P/E 151.0 15.8 N/M 20.8 N/M N/M -135.0 14.2 14.0 23.4 104.5 23.3 19.4 20.0 18.8 9.4 12.1 23.5 19.7 0.0

YIELD 1.83% 6.31% 0.00% 5.93% 0.00% 0.00% 2.22% 3.49% 3.67% 3.43% 4.26% 2.52% 3.87% 4.00% 4.10% 0.00% 3.32% 2.03% 5.33% 0.00%

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 7.00% 6.00% Prime + 1.75%

MATURITY 19-Oct-2017 31-May-2018 19-Oct-2022

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

20-Nov-2029 15-Dec-2017 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022

YTD% 12 MTH% 0.84% 4.46% 0.01% 3.70% 0.37% 2.61% 3.95% 3.95% 6.77% 6.77% 0.40% 4.04% -1.76% 1.06% -0.34% 2.70% -0.95% 1.55% 4.35% 4.69% 4.13% 4.28% 4.22% 4.64% 6.19% 3.43% 2.77% 2.98% -3.66% -3.90%

NAV Date 28-Feb-2017 28-Feb-2017 24-Feb-2017 31-Dec-2016 31-Dec-2016 31-Jan-2017 31-Jan-2017 31-Jan-2017 31-Jan-2017 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016

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

Dated this 17th day of May, A. D. 2017 _________________________________ Octagon Management Limited Liquidator

THE TRIBUNE

Wednesday, May 17, 2017, PAGE 7

Central Bank makes good on e-payment regulation promise From pg B1 under the Central Bank’s oversight. “The Central Bank is taking an abbreviated approach of one month for this consultation process in order to ensure that private interests, which already exist in providing innovative payments solutions, can be vetted for licensing and supervision within a transparent framework,” the Central Bank said. “Following the consultation process and any revisions to the proposed framework, the Regulations will be promulgated. A further review of the Regulations will occur within one year’s time, to take con-

structive account of any initial experiences.” The regulations, if adopted as is following a consultation process that will end on June 9, will bring all electronic retail payments and electronic money products, such as stored wallets and cards, under the regulator’s purview. The consultation launch meets the pledge by John Rolle, the Central Bank’s governor, to implement regulations that will enable it to license non-bank electronic payments solutions providers by mid-2017. The move is part of the Central Bank’s bid to cause “a significant shift” from Bahamians’ reliance on

cash, with electronic banking solutions, such as the Internet and mobile apps, also seen as filling the void left by the loss of commercial bank branches on Family Islands. Mr Rolle told Tribune Business in March: “The Central Bank’s emphasis is therefore now on facilitating expansion of e-payments services, which may also be provided through non-bank providers. “We intend, before the end of the second quarter of 2017, to put preliminary regulations in place so that we can begin licensing such solutions providers. Considerable interest is being already being expressed by local firms to enter such markets.” Newly-legalised web shops are among the leading contenders to obtain such licenses, especially since they already have a physical presence through-

out the Bahamas, especially in the Family Islands. This, combined with the sophisticated gaming technology they employ, makes them a ‘natural fit’ to provide electronic payments solutions through affiliates, especially since they are already effectively in the money transmission business. Other contenders for the licenses referred to by Mr Rolle are more conventional payments solutions providers, such as Cash N’ Go and Omni Financial Services, provider of the Mango card. Outlining the criteria it will use to award licenses, the Central Bank said yesterday: “It is the Central Bank’s view that safety and soundness measures, to protect the public and to deter individuals and companies with questionable solvency or business practices from entering the

Progress reducing US uninsured rate comes to a halt WASHINGTON (AP) — Five years of progress reducing the number of Americans without health insurance has come to a halt, according to a government report out Tuesday. More than a factoid, it shows the stakes in the Republican drive to roll back the Affordable Care Act. The report from the Centers for Disease Control and

Prevention estimates that 28.6 million people were uninsured in 2016, unchanged from 2015. It was the first year since passage of the health care overhaul in 2010 that the number of uninsured did not budge. The uninsured rate for 2016 was 9 percent, an insignificant difference from 9.1 percent the previous year. When former President Ba-

rack Obama signed the ACA in 2010, the uninsured rate had been 16 percent. Tuesday’s report suggests that the ACA was running low on gas in Obama’s final year as president. Premiums for private insurance were about to jump, and 19 states continued to refuse the law’s Medicaid expansion. Now, the number of uninsured could start climb-

Unaudited Consolidated Financial Statements of

ing again under policies being considered by President Donald Trump and congressional Republicans. The politically unpopular GOP bill passed narrowly by the House would limit Medicaid financing and curtail subsidies for many consumers buying their own private policies. Republicans also would repeal the require-

Balance at December 31, 2016

Balance at March 31, 2017

Three months ended March 31, 2017 Revenue increased by 9% for the first quarter compared to the same period last year, which was impacted by new streams of revenue added to the portfolio during the first quarter 2017. Operating expenses increased by 11.4% driven mainly by higher import costs for finished products and raw and packaging materials. Net income consequently decreased 11.8% compared to the same period last year. Earnings per share for the three months ended March 2017 amounted to $ 0.09, compared to $ 0.10 for the first quarter 2016. Net cash from operating activities decreased by $2.9 million for the first quarter 2017 as the Company continues to complete the restoration efforts as a result of Hurricane Matthew in 2016.

COMMONWEALTH BREWERY LIMITED Consolidated Statement of Financial Position (Unaudited)

March 31, 2017, with corresponding figures for December 31, 2016 (Expressed in Bahamian dollars) Note(s)

March 2017 December 2016

Assets

Non-current assets: Property, plant and equipment Goodwill Other intangible assets Total non-current assets $

6,544,896 4,548,153 5,521,265 20,111,457 36,725,771

9,853,627 2,864,600 4,514,802 22,289,872 39,522,901

36,441,864 4,487,242 241,915 41,171,021

36,858,468 4,487,242 258,603 41,604,313

77,896,792

81,127,214

Share premium 12,377,952

Contributed surplus 16,351,369

Revaluation surplus 7,096,254

Retained earnings 21,768,416

Total equity 57,743,991

–

2,626,052

150,000

12,377,952

16,351,369

7,096,254

24,394,468

60,370,043

COMMONWEALTH BREWERY LIMITED Consolidated Statement of Cash Flows (Unaudited)

For the three months ended March 31, 2017, with corresponding figures for the three months ended March 31, 2016 (Expressed in Bahamian dollars) Note(s)

Current liabilities: Accounts payable and accrued expenses

Net income Adjustments for: Depreciation Amortisation (Gain)/Loss on disposal of property, plant and equipment Finance expense Net cash from operation activities

Total liabilities and equity

Changes in non-cash working capital Net cash from operations before changes in working capital Cash flows from financing activities Interest paid Net cash used in financing activities

Additions to property, plant and equipment Proceeds from sale of property, plant and equipment Net cash used in investing activities Net increase/ (decrease) in cash and cash equivalents

COMMONWEALTH BREWERY LIMITED

150,000 12,377,952 16,351,369 7,096,254 24,394,468 60,370,043

150,000 12,377,952 16,351,369 7,096,254 21,768,416 57,743,991

For the three months ended March 31, 2017 (Expressed in Bahamian dollars)

77,896,792

81,127,214

Operating expenses: Raw materials, consumables and services Personnel costs Depreciation Amortisation Total operating expenses Other income, net

March 2017

March 2016

30,256,062

27,519,158

21,904,581 4,951,822 802,727 16,688 27,675,820

19,127,947 4,584,649 797,663 7,733 24,517,992

53,642

Results from operating activities Finance expenses

(25,195)

2,633,884

2,975,971

7,833

189

Total comprehensive income

2,626,052

2,975,782

Basic and diluted earnings per share

0.09

0.10

797,663 7,733 (1,000) 189 3,780,367 (6,946) 3,773,421

(7,833) (7,833)

(189) (189)

(386,723)

(665,425)

600 (386,123)

1,000 (664,425)

(3,308,731)

3,108,806

9,853,627

1,345,882

6,544,896

4,454,688

5,999,993 23,383,223

Note(s)

Cash and cash equivalents, end of the period

5,999,993 17,526,749

For the three months ended March, 31, 2017, with corresponding figures for the three months ended March 31, 2016 (Expressed in Bahamian dollars)

802,727 16,688

Cash flows from investing activities

Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income (Unaudited)

2,975,782

(2,914,775)

17,383,230

COMMONWEALTH BREWERY LIMITED

2,626,052

(6,368,076)

11,526,756

2016

7,833 3,453,300

2017

Cash flows from operating activities

Cash and cash equivalents, beginning of year

Liabilities and equity

Income: Revenue

Share capital 150,000

Comprehensive income

Management comments on Interim Consolidated Financial Statements (Unaudited)

Non-current liabilities: Loans and borrowings Total liabilities Equity: Share capital Share premium Contributed surplus Revaluation surplus Retained earnings Total equity

Republican. “The real question is, will we be able to keep the gains that we have made?” Critical of the ACA and co-author of an alternative plan by GOP policy experts, Wilensky nonetheless supports the goal of expanding coverage. She’s concerned about the impact of the House bill on Medicaid, the federal-state program for low-income and disabled people.

Interim Consolidated Statement of Changes in Equity (Unaudited)

COMMONWEALTH BREWERY LIMITED

Total assets

ment that most Americans carry health insurance or risk fines, a much-disliked nudge to get healthy people covered. The legislation would lead to an estimated increase of 24 million uninsured people within 10 years, according to congressional analysts. Under “Obamacare,” there are 20 million fewer uninsured since 2010. “It’s disappointing that it’s stalled out,” said health economist Gail Wilensky, a

For the three months ended March 31, 2017 (Expressed in Bahamian dollars)

Three months ended March 31, 2017

Current assets: Cash and cash equivalents Trade receivables, net Prepaid expenses and other assets Inventories Total current assets

“Given that retail payment and electronic money services may also be vulnerable to misuse for money laundering and terrorist financing, a crucial objective of the Central Bank is to ensure that providers and their agents engage the proper internal systems, policies and controls to guard against perpetrators of money laundering and terrorist financing.” Emphasising that the integrity of the Bahamian payments was vital to the efficient conduct of commerce, the Central Bank added: “Payment systems are an essential component of the financial infrastructure of a country. “A safe and efficient infrastructure is critical to the effective and smooth functioning of the financial system. It also helps maintain and promote financial stability.”

COMMONWEALTH BREWERY LIMITED

money transmission market, are critical components of the proposed regulatory regime. “In pursuit of these objectives, the Central Bank will take into consideration, among other factors, the size of these businesses, the risks that may be associated with their operations, the potential impact on the profitability of the entity, and balance these with the need to protect consumers and the best interests of the financial system in the Bahamas in the process of supervising these institutions.” The regulator added: “Electronic retail payment instruments and services, in particular, require specific guidelines in order to ensure the trust of the population in cash-less instruments, financial inclusion and a more efficient provision of services by non-deposit taking institutions.

Interim Consolidated Statement of Changes in Equity (Unaudited)

1. Accounting Policies These interim financial statements are prepared in accordance with International Financial 6 information. Accordingly, they do not include Reporting Standards (“IFRS”) for interim financial all of the information and footnotes required by IFRS for consolidated financial statements. In the opinion of management, these unaudited consolidated financial statements reflect all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the Company’s financial position and results of operations as at the end of and for the periods presented. All significant intercompany accounts and transactions have been eliminated from these unaudited consolidated financial statements.

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PAGE 10, Wednesday, May 17, 2017

THE TRIBUNE

US stock indexes end mostly lower; Nasdaq notches new high By ALEX VEIGA AP Business Writer A subdued day of trading on Wall Street ended Tuesday with stocks closing mostly lower even as the Nasdaq composite notched another record high. Utilities, phone companies and other high-dividend paying stocks were among the biggest decliners. Energy stocks also fell along with a drop in the price of crude oil. Technology companies climbed the most. Financials also eked out a small gain. Investors sized up the latest crop of company earnings and new data on home construction and industrial production. “The economic data that we’ve seen today is sort of what we’ve seen the last few weeks, some good, some bad,” said Jim Davis, regional investment strategist at the Private Client Group at U.S. Bank.

The Standard & Poor’s 500 index dipped 1.65 points, or 0.1 percent, to 2,400.67. The Dow Jones industrial average slid 2.19 points, or 0.01 percent, to 20,979.75. The Nasdaq gained 20.20 points, or 0.3 percent, to 6,169.87. The tech-heavy index and the S&P 500 each hit new highs on Monday. The Russell 2000 index of smaller stocks rose 0.76 points, or 0.1 percent, to 1,394.68. More stocks fell than rose on the on the New York Stock Exchange. The stock indexes headed higher early Tuesday, but spent much of the day trading in a narrow range, wavering between small gains and losses. The Federal Reserve provided some positive economic news, reporting that industrial production at U.S. factories, mines and utilities shot up 1 percent in April from March. That’s the biggest gain since February

Trader Luke Scanlon, left, works on the floor of the New York Stock Exchange yesterday. U.S. stock indexes were little changed in early trading Tuesday, a day after the market closed at record highs. (AP Photo/Richard Drew) 2014 and the third straight monthly gain. The increase was more than twice what economists had expected. A separate report on residential construction was less encouraging. The Commerce Department said home construction fell for a second straight month in April, marking the slowest pace in five months. Housing starts slid 2.6 percent to a seasonally adjusted annual rate of 1.17 million units. The weakness was led by a big drop in construction of apartments, a volatile sector. While disappointing,

the report didn’t appear to weigh much on the market. Most homebuilders closed higher, led by LGI Homes, which rose $1.26, or 3.9 percent, to $33.95. Traders also had their eye on the latest crop of quarterly results from companies. Home Depot got a small boost after topping expectations for profit and revenue in the first quarter. The home-improvement retailer also raised its profit outlook for the year. The stock gained 93 cents, or 0.6 percent, to $158.26. “Home-improvement and beauty retailers are really

where the strength is within the retail sector, and of course, online,” said Lindsey Bell, investment strategist at CFRA. Among the other big movers that reported improved quarterly report cards Tuesday: Online and mobile media services company Sina jumped $15, or 17.8 percent, to $99.04. Several companies that delivered disappointing results fell sharply. Dick’s Sporting Goods slumped $6.53, or 13.7 percent, to $41.04, while apparel and home fashions retailer The TJX Cos. slid $3.14,

or 4.1 percent, to $73.76. Staples also gave up 3.5 percent after the office supply chain reported revenue for the latest quarter that fell far short of what Wall Street analysts were expecting. The stock lost 33 cents to $8.99. News that two private equity firms disclosed a combined 8 percent stake in Etsy sent shares in the online crafts site sharply higher. The stock climbed $2.41, or 21.3 percent, to $13.73. Chipmaker Advanced Micro Devices was the biggest gainer in the S&P 500, surging $1.33, or 11.7 percent, to $12.75. Energy prices declined Tuesday, giving back some of the gains from a day earlier on news that a group of oil-producing countries had cut production in hopes of supporting the price of oil. Benchmark U.S. crude slipped 19 cents to close at $48.66 a barrel in New York. Brent crude, used to price international oils, lost 17 cents to settle at $51.65 a barrel in London. The price of oil has swung sharply in recent years, from more than $100 three years ago to less than $30 last year, as concerns rise and fall that supplies will overwhelm demand. In other futures trading, natural gas fell 12 cents, or 3.6 percent, to $3.23 per 1,000 cubic feet. Heating oil rose 1 cent to $1.52 per gallon, while wholesale gasoline added 1 cent to $1.60 per gallon.

Spend more, tax the rich: UK’s Labour stakes election turf LONDON (AP) — Britain’s main opposition Labour Party appealed to voters Tuesday with promises to increase the minimum wage, boost spending on health, education and infrastructure, nationalize key industries — and pay for it all by raising taxes on high earners. Labour leader Jeremy Corbyn said the party has a “radical and responsible” program “for the many, not the few.” Labour’s manifesto for Britain’s June 8 election was greeted by both supporters and opponents as a return to the party’s democratic socialist roots after the businessfriendly “New Labour” years under Prime Ministers Tony Blair

and Gordon Brown. Labour has been in opposition since 2010, and has been wracked by feuding between centrists and left-wingers since the veteran socialist Corbyn was unexpectedly elected leader in 2015. The party’s election platform includes promises to increase the minimum wage to 10 pounds ($12.89) an hour by 2020 from the current 7.50 pounds, nationalize railways, energy companies and the postal service, scrap university tuition fees and pump billions more into the National Health Service. Corbyn said a Labour government would pay for increased spending by “asking the better-off

and the big corporations to pay a little bit more.” The party would increase corporation tax, introduce a financial transactions levy and raise income tax for the top 5 percent of earners, adding a new top rate of 50 percent for people earning 123,000 pounds a year or more. Corbyn and his allies hope the policies will speak to anxious voters who have seen living standards squeezed by flat-lining wages, cuts to government benefits and declining numbers of long-term jobs with secure pensions. The governing Conservatives say Labour has an outdated economic vision that will stifle growth. Chief Secretary to the Treasury

David Gauke said Corbyn “has made so many unfunded spending commitments it is clear that Labour would have to raise taxes dramatically because his sums don’t add up.” Prime Minister Theresa May called a snap election to try to boost her parliamentary majority ahead of divorce negotiations with the European Union. Opinion polls consistently give the Conservatives a big lead over Labour. Labour said it will not try to overturn Britain’s decision to leave the EU, but will “negotiate a deal that preserves jobs and access to the single market” and maintains standards of workers’ rights established under the EU.

Britain’s Labour party leader Jeremy Corbyn, speaks at the launch the Labour Party’s General Election manifesto yesterday in Bradford, England. (Danny Lawson/PA via AP)

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