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WEDNESDAY, JULY 5, 2017
$4.15 ‘TWO TO THREE WEEKS’ LEFT TO SAVE FREEPORT By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Grand Lucayan must be sold within “the next two-three weeks to save” Freeport as a tourist destination and its upcoming winter season, a leading resort executive warned yesterday. Magnus Alnebeck, Pelican Bay’s managing director, told Tribune Business it was “now crunch time” for resolving the Grand Lucayan’s fate and Freeport’s tourism future. He said its nine-month closure post-Matthew, and the loss of Memories, had been an “absolute disaster”, and warned that Grand Bahama “as a [stopover] tourist destination will probably not survive” unless the Lucayan strip quickly re-opens. Mr Alnebeck said that while Pelican Bay was currently full, its customer base relied more on business travellers and persons who “have a reason” to visit the island. He expressed concern that the lack of room inventory, with more than
Hotelier’s timeframe for Grand Lucayan sale Pelican Bay chief fearing airlift cut-back Destination needs 4,000 rooms; has 500 1,000 rooms or 59 per cent of Grand Bahama’s capacity currently off-line, would ultimately impact his property because airlines would have less reason to service the island. Mr Alnebeck said Freeport needed “at least 4,000 hotel rooms” to be regarded as a tourism destination, yet it currently has just 500 that are available - one-eighth, or just 12.5 per cent, of what is required. “The reality is that we are doing well in the shortterm,” he told Tribune Business of Pelican Bay, “but for the destination it’s See PG B5
Govt not proceeding with New Fortress deal By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Christie administration’s energy reform process “should have been a lot more transparent”, a Cabinet minister yesterday confirming the Government will not proceed with the proposal it left behind. Desmond Bannister, minister of works, told Tribune Business that the Minnis administration would not be moving forward with the offer submitted by New Fortress Energy. He added that New Fortress, together with all potential bidders offering solutions to the Bahamas’ energy generation woes, would be invited to participate in a new Request for Proposal (RFP) exercise to be overseen by Bahamas Power & Light’s (BPL) new Board. “There was no deal left behind, no commitment by the former administration See PG B4
Process ‘should have been more transparent’ Govt to move on BPL bond refinancing Minister ‘doesn’t want to go through this again’
DESMOND BANNISTER
Delinquent bank loans push beyond $1bn mark By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net DELINQUENT bank loans pushed beyond the $1 billion mark in May, with net passenger departures through the Bahamas’ major airport down 3.4 per cent for the first five months of 2017. The Central Bank said data produced by the Nassau Airport Development Company (NAD), which excludes domestic departures, suggested that the tourism industry “contin-
Tourism soft; NAD data off 3.4% Economy to see ‘only mild expansion’ ued to face challenges in 2017” when it came to stopover arrivals figures. The regulator’s report on May’s economic developments said this was partly due to the Grand Lucayan’s closure in Grand Bahama, See PG B2
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$234m added to deficit during ‘election quarter’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net AN “horrendous” $234 million was added to the Government’s fiscal deficit during the May 10 general election quarter, Central Bank data released yesterday reveals. The regulator’s May economic developments report shows the former Christie administration ac-
tually contained the ‘red ink’ during the first three months of 2017, even posting a “small surplus” for its Budgetary operations. However, the Minnis administration’s estimate of a $500 million deficit for the full 2016-2017 fiscal year suggests this achievement was squandered by excessive government spending and contracts in the run-up to the general election. Given that the Central
Bank pegged the ninemonth deficit at $265.9 million, the new administration’s full-year estimates - given by K P Turnquest, minister of finance, and in its Budget booklets - suggest that the Government spent $234 million more than it took in during the three months to end-June 2017. Mr Turnquest did not respond to Tribune Business See PG B5
Govt actually ran $10m Q1 surplus ‘Horrendous’ reversal to full-year forecast Central Bank bleaker on deficit reduction
Baha Mar completion warning ‘an insult to Bahamian intelligence’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHA Mar’s main contractor was yesterday accused of “insulting the intelligence of the Bahamian people” over its missed completion deadline warning, with local industry players urging the Government to investigate the matter. Stephen Wrinkle, a former Bahamian Contractors Association (BCA) president, questioned how a dispute over the delivery of 1,420 lounge chairs could delay ‘substantial completion’ of a $4.2 billion project.
Govt urged to probe CCA claims Contractors: How can this delay $4.2bn project?
LEONARD SANDS
STEPHEN WRINKLE
“It’s a heck of a stretch for a $4.2 billion project to be held up by a couple of lounge chairs,” he told Tribune Business. “There’s something wrong with that. It doesn’t compute. That’s
such a nominal amount. “It’s an insult to say it’s holding that project up. You can go down to CostCo and buy them. How can 1,400 lounge chairs hold up a $4.2 billion project? There’s ob-
BCA chief says claims possible ‘heads up/ viously more than meets the eye to this, and China Construction America (CCA) has a history of not meeting their deadlines.” Mr Wrinkle was backed See PG B4
PAGE 2, Wednesday, July 5, 2017
THE TRIBUNE
INSURERS IMPRESSED BY TRAFFIC SAFETY SYSTEM A BAHAMIAN technology provider has introduced its traffic safety system to Bahamas Insurance Association (BIA) members, seeking their support for its introduction on New Providence. Intelligent Enforcement (IntelEnforce) principal, Donovan Paul, and his chief information technology officer, Michael Arteaga, told the 18 BIA members present that the Bahamas needed to crackdown on road users who violated speed limits and ran red lights. With almost 1,000 traffic fatalities since 2000, and 1,000 annual ‘hit and run’ incidents, IntelEnforce is pushing a modern traffic safety system as a means to reduce bodily injuries, and lessen vehicle and property damage. Mr Paul, described the new traffic safety system as a Public-Private Partnership (PPP) arrangement, enabling both the Government and private sector investor to benefit financially. “Considering the revenue projections attached to the one-month pilot test we did on one stretch of road
INTELLIGENT Enforcement’s principal, Donovan Paul, and chief information technology officer, Michael Arteaga, presented a new traffic safety system to members of the Bahamas Insurance Association. Photo: Serena Williams/SWPR near our office in central New Providence, we believe the Government could recover their initial stake or investment in about a year, and garner an immediate effect on the traffic public safety system without having to worry about management costs or hardware expansion,”he added.
Delinquent bank loans push beyond $1bn mark From pg B1 and the loss of significant room inventory, which had yet to be offset by Baha Mar’s partial opening. Yet it also acknowledged the flat arrivals data from the Lynden Pindling International Airport (LPIA), which “showed a 2.4 per cent reduction in visitor traffic - net of domestic departures - during May, in contrast to the 3.3 per cent gain recorded during the same period last year. “Specifically, departures to the United States fell by 2.6 per cent, a reversal from the 4.3 per cent in-
crease in 2016, while the non-US international component contracted by 1 per cent following a 2.1 per cent reduction recorded last year,” the Central Bank added. “Data for the first five months of the year exhibited a similar trend. Net passenger departures through NAD fell by 3.4 per cent, a turnaround from the 2.5 per cent hike recorded in the comparable period of 2016, as travellers to the United States declined by 4.1 per cent, a reversal from growth of similar magnitude in the prior year. “In a mild offset, non-
Mr Arteaga said the system is a third-generation radar speed metre police tool. “This tool not only records the speed of a vehicle per lane, but also records video of the entire scene, taking two still pictures just seconds apart. Based on the offence, the offender may receive a traffic violation
ticket,” he explained. BIA members were told that the new system’s benefits would include fewer traffic accidents; reduced traffic fatalities; better traffic flow; prevention of property damage; increased revenue for the Bahamas; a reduced burden on the judicial system; automatic
US international passengers rose marginally, by 0.8 per cent, relative to a 6.6 per cent reduction in the previous period.” May also saw a reversal of previous trends that reduced delinquent private sector loans below the $1 billion mark, with the Central Bank also seeming to become slightly more bearish in forecasting that the Bahamian economy “will remain only mildly expansionary” through 2017. “Private sector loan arrears expanded by $29.1 million (2.9 per cent) to $1.034 billion, and the corresponding ratio of arrears to total loans firmed by 55 basis points to 17.5 per cent, as short-term delinquencies (31-90 days) rose by $30.4 million(11 per cent)
to $306.5 million, resulting in a 53 basis point increase in the associated arrears rate to 5.2 per cent,” the Central Bank said. “Non-performing loans (NPLs) decreased by $1.3 million (0.2 per cent) to $727.1 million. However, the non-accrual rate edged-up, by two basis points, to 12.3 per cent, as the reduction in the total private sector loan portfolio carried more weight in the overall trends.” Loan delinquencies increased across all categories, with the Central Bank adding: “Delinquent commercial facilities advanced by $11.9 million (5.2 per cent) to $241.6 million, as the $12.8 million (34.5 per cent) increase in the shortterm segment negated the
and digital record-keeping, eliminating warrants being issued for paid tickets; and a more attractive tourism product. Emmanuel Komolafe, the BIA’s chairman, said the proposed system, if adopted by the Government, would benefit the Bahamas. “It seems fair to state that there was a consensus among our members that attended the presentation by IntelEnforce that the proposal, if adopted and properly implemented, could significantly benefit the country,” Mr Komolafe said. “Apart from the obvious advantages in relation to safety on our roads, and an expected reduction in the loss of life and casualties, there are potential benefits to our members and the economy. The likely decline in traffic violations and road crime statistics could result in a reduction in insurance claims, and potentially lower insurance renewal costs. “However, these benefits can only be maximised and the system fully utilised to achieve the set objectives - via a public-private partnership. In the case of the insurance industry, access
to pertinent information and the system will determine how much our members, as well as their clients, benefit from this new paradigm.” Vibert Williams, NAGICO (Bahamas) executive director, said: “I think this is a wonderful system. I think it’s a starting point, and it’s good. However, there has to be a firm commitment to the collaboration and sharing of information between the insurance companies, the Road Traffic Department and the Government for this to work and be successful.” Bede D. Sands, director at Orry J. Sands & Company, described it as “a great system; we have no problem with it”. Apart from Mr Komolafe, other attendees came from J.S Johnson Insurance Agents & Brokers; Bahamas First; Caribbean Alliance Insurance; RoyalStar Assurance; RMS Insurance Agents & Brokers; NAGICO Insurances (Bahamas) Ltd; Bahamas Motor Assessing & Claims; Orry J. Sands & Company; and Insurance Company of the West Indies.
$0.9 million (0.5 per cent) reduction in the non-performing component. “Similarly, mortgage delinquencies firmed by $10.5 million (2.1 per cent) to $520.6 million, reflecting a $12.1 million (8.2 per cent) increase in the 31-90 day category, as opposed to the $1.6 million (0.4 per cent) decrease in the non-accrual portion. “Meanwhile, consumer loan arrears rose by $6.7 million (2.5 per cent) to $271.4 million, owing to
increases in both the shortterm and non-accrual segments by $5.5 million (6.1 per cent) and $1.1 million (0.7 per cent), respectively.” The Central Bank added that the delinquency rates for mortgages and commercial loans stood at 19.3 per cent and 29.1 per cent, which were down yearover-year, while those for consumer loans were at 11.4 per cent.
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Wednesday, July 5, 2017, PAGE 3
BAHAMAS ‘UNIQUELY POSITIONED’ ON ICT Bahamas set to host large ICT conference
By NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net
THE Bahamas is “uniquely positioned” to enhance its status as a centre for information and communications technology (ITC), sector regulators said yesterday, adding that their goal was to enhance its economic role. Stephen Bereaux, the Utilities Regulation and Competition Authority’s (URCA) chief executive, told Tribune Business: “Some countries have made a name for themselves in ICTs. When you
think ICTs, you think Singapore and South Korea. “The Bahamas is uniquely positioned given our proximity to the US, and the cables that run between us and the world. We have a very significant ICT infrastructure under the water that connects most of our islands with good capacity in terms of connectivity. By air we are very well linked to the US. You have areas like Freeport that are ripe for investment.” Mr Bereaux was speaking after a press conference to announce the 17th Global Symposium for Regulators, or GSR-17, which will be held at the Atlantis resort
between July 11 and 14. He said: “Just in the way we have sort of combined sports conferences and sports tourism, I believe that there is scope to leverage and enhance our stature in the world as a premiere tourist destination combined with a wellconnected infrastructure. “The ‘Smart Bahamas’ that the Government has taken on speaks to how do you take everything we do every day, and make it better by adding technology.” He added: “It requires that we create it as a focus for what we do. ICTs, as an afterthought for a business or ministry, is not enough to
leverage the power of ICTs. The power of ICT has to be leveraged from looking at an overview of our country and seeing how we can link all of the individual parts. “URCA’s push has been to pull ICT out of a support role or function, and give it a role of its own so that it can then really enhance the way we work as a country as a whole. That is what our work with the ITU is about; bringing to the Bahamas the dialogue that we need to have to catapult us to the next level. ICT presents perhaps the most promising platform upon which we can build and enhance the Bahamian society.”
Tourism targets local sourcing boost to reduce dollar ‘leakage’ THE Bahamian tourism industry yesterday said it was vital to source more product locally if this nation is to slash the ‘leakage’ of 85 cents from every visitor dollar earned The Bahamas Hotel and Tourism Association (BHTA) said this objective is why it continues to be an advocator, supporter and facilitator of ‘The Tru Tru Bahamian Movement’ initiative. This seeks to develop Bahamian culture, customs, heritage, cuisine, art, craft, and music throughout the tourism product, and within local communities, through a variety of initiatives. It aims to create an ‘authentically Bahamian sense of space’, where the locals and visitors can feel, smell, see and taste the country’s unique elements. This is seen as key to differentiating the visitor experience, and developing a brand identity for the Bahamas. “The global travel market continues to seek indigenous, culturally-relevant experiences in their destination of choice. By creating an environment which
is fraught with Bahamian art, music, food, dance and Bahamian-made products, we are providing visitors with an authentic, Tru Tru Bahamian experience,” said Carlton Russell, the Bahamas Hotel and Tourism Association’s president. The second objective of the ‘Tru Tru Bahamian’ initiative is to encourage ‘local sourcing’. Currently, around 85 cents of every dollar spent in the Bahamas by visitors leaves the country. The BHTA wants to stem this leakage through the creation of linkages between the tourism industry and Bahamian entrepreneurs. “Local sourcing is vital if we wish to expand and diversify our economy. By supporting Bahamian businesses, we stimulate markets in areas that are currently underdeveloped,” said Mr Russell. “The benefits of stemming the outflow of funds, and keeping them in our own economy, is vast. “The trickle-down effect of local sourcing is an obvious benefit, as this creates
TIFFANY Barrett from ‘Tiff Gallery’. Photo/KEMUEL STUBBS job growth and expands entrepreneurial opportunities. We must also think about the long-term consequences; how local sourcing can positively impact crime trends and other social and economic ails. Bahamians are immensely talented, creative and proud of their heritage; we just need to give them the opportunity to succeed doing what they love to do. The rest will follow.” In 2016, after the BHTA hosted the Tru Tru Bahamian Festival, the Ministry
of Tourism partnered with it to host the ‘Tru Tru Bahamian Marketplace’. The latter gave around 100 Bahamian entrepreneurs the opportunity to showcase their products to potential purchasers, hotel owners and operators, destination management companies, event executives, restaurant owners and wedding planners.
By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net
THE Bahamas will next week host the largest annual International Telecommunications Union (ITU) conference, attracting more than 300 foreign regulators and industry stakeholders. To-date, just over 300 non-Bahamian participants from 60 countries have registered for the 17th edition of the Global Symposium for Regulators, or GSR-17, to be held at the Atlantis resort between July 11- 14. The Utilities Regulation and Competition Authority (URCA) will host the symposium on behalf of the Government, in conjunction with the ITU. The theme for GSR-17 will be: ‘Living in a World of Digital Opportunities’. Since 2000, the Global Symposium for Regulators (GSR) has brought together heads of national ICT regulatory authorities from around the
world. It allows regulators to share their views and experiences on the most pressing issues they have identified, and fosters a global dialogue between regulators, policy makers, industry leaders and other key ICT stakeholders. “We have worked so closely with so many people from the ITU over the years. This is the biggest annual conference that the ITU hosts,” said URCA chief executive, Stephen Bereaux. “It is a great opportunity for the Bahamas to be seen as a centre for ICTs. We hope it will significantly enhance our stature in the world of ICTs, and I believe that we as a country have a lot to offer the world in relation to ICTs. “We are well connected both locally and internationally. That produces a very rich environment for ICTs to flourish. We look forward to welcoming the world to the Bahamas to consider ICT regulation and development, and we are proud to be hosting GSR -17.”
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PAGE 4, Wednesday, July 5, 2017
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Baha Mar completion warning ‘an insult to Bahamian intelligence’ From pg B1 by Leonard Sands, the BCA’s current president, who said he could not see how the lounge chairs’ nondelivery would result in CCA missing the ‘substantial completion’ deadline. He added, though, that the content and tone of CCA’s lawsuit was a potential “heads up” to the Government and Bahamian public that the contractor was in danger of missing yet another Baha Mar completion deadline. “My personal opinion on it is I don’t think they have a legitimate argument for not hitting the deadline based on the lounge chairs’ delivery. I don’t see how that’s going to cause them not to meet the deadline,” Mr Sands told Tribune Business. “I don’t know how that causes them to not to meet the substantial completion deadline for buildings, services and everything else. That’s what’s got everyone wondering.” He added that the lounge chairs should be the responsibility of Baha Mar’s current owner, the China Export-Import Bank’s Perfect Luck, vehicle, and not CCA. However, the latter’s lawsuit against the chairs’ supplier says it is also re-
sponsible for the purchase, and delivery, of all fixtures, furniture and equipment that may be needed to complete the $4.2 billion development. Mr Sands said, though, that failure to meet the October 15 ‘substantial completion’ deadline was unlikely to provoke a dispute similar to that which occurred under Baha Mar’s original developer, Sarkis Izmirlian. That led to the Chapter 11 bankruptcy protection filing and a near two-year delay to Baha Mar’s opening, but Mr Izmirlian has since been ‘replaced’ by Hong Kong-based conglomerate, Chow Tai Fook Enterprises (CTFE). Its principals, the Cheng family, have extremely close ties to the Beijing government, and Mr Sands said any missed completion deadline would likely “be handled a lot differently” than the impasse with Mr Izmirlian. The BCA chief said additional resources, financing and staff was also unlikely to be a problem this time around, as the parties involved would do whatever was necessary to overcome any obstacles. “I don’t think we’ll see those challenges,” Mr Sands said, “but it’s a
Govt not proceeding with New Fortress deal From pg B1 to any group,” Mr Bannister replied, when asked about the fate of New Fortress’s offer. “There had been an energy committee that looked at a number of proposals, and made some recommendations.” The Minister, who has Cabinet responsibility for BPL, then criticised the energy reform process run by the former Christie government during its final months in office. “We believe the process should have been a lot more transparent than it was,” Mr Bannister told Tribune Business, “and we’re going to ensure full transparency and complete accountability in the process.” He added that New Fortress and other previous bidders could “absolutely” participate in a new tender exercise, and this message had been conveyed to all who have approached the
Minnis administration. “Any group that is interested, and there are a number of groups that have shown an interest, including New Fortress, we have indicated that to every one of them,” Mr Bannister said. “That there’s going to be a fair and transparent process, and they will have an opportunity to put proposals on the table. We will have qualified experts look at them, and then make a decision in the best interests of the Bahamian people with no political interference.” Mr Bannister said he and the Government would set the boundaries and objectives, then leave the newlyappointed Board to do what was necessary in putting together and running an RFP exercise. Emphasising that he will take a ‘hands-off’ role to minimise any suggestion of political interference in en-
THE BAHA Mar site. ‘heads up’ that we may have challenges in meeting the deadline. That was a soft way of putting it out there. It’s going to be interesting. “We’ll just have to monitor it, see if it’s going to be missed, by how much, and what the impact will be. There’s a lot of activity on the ground, things are happening, so I don’t think the impact will be that much.” The concern for the Bahamas is that any setback in completing Baha Mar’s $600 million physical construction could delay the opening of the 300-room SLS property, which is due to open the same month as CCA is supposed to finish. A missed completion deadline could also impact the Rosewood property’s opening, which is scheduled for March/April 2018. With Baha Mar still the ‘only game in town’ when it comes to major investment projects, any further
delay could negatively impact desperately-needed job creation and economic activity capable of boosting Bahamian GDP. Edison Sumner, the Bahamas Chamber of Commerce’s chief executive, said on Monday that he had been informed by Baha Mar executives that CCA’s lounge chair woe would not impact the property’s completion and opening schedule. But several observers have privately queried to Tribune Business whether CCA, via the lawsuit against its Florida supplier, is already casting around for excuses and scapegoats as to why it may miss the October 15, 2017, construction completion deadline. Mr Wrinkle, meanwhile, said CCA “has a history of not meeting deadlines”. He blamed the contractor’s inability to complete Baha Mar, on budget and on time,
ergy reform decision-making, he added: “I’m going to give some directions to the Board when they meet on Wednesday [today], and see how quickly they can put an RFP out. “I’m not going to interfere in what they do. We have a very high quality Board, staffed with very qualified persons, and we will look to see the outcome of their work. “We’ve selected professional people in very many fields, and it would be wrong for politicians to get in the middle of it and make political decisions. That would be wrong, and that’s not going to happen.” Mr Bannister’s comments indicate that the new Government is not taking the former Christie administration’s advice to pick up, approve and complete the deal that it left with New Fortress. Tribune Business had revealed the Christie administration’s secretive energy Request for Proposal (RFP), and talks with New Fortress, just prior to the May 10 general election.
Both BPL and its manager, PowerSecure, had been ‘kept in the dark’ on the discussions despite the direct impact on themselves as potential customers of the electricity generated. Sources had described the Christie administration’s energy RFP, which was run out of the Prime Minister’s Office, as “very weird” and lacking in transparency, with different bid terms and criteria for different groups. The multi-billion dollar AES Corporation described the process as “nontransparent” and “not what we are used to” in other central American and Caribbean markets where it has competed on LNG supply and power generation deals. But members of the former Christie administration urged the Government to act swiftly and move ahead with the New Fortress, arguing that it would deliver significant energy cost savings and economic benefits for the Bahamian people. These ‘benefits’, though, were never quantified in
NOTICE BLUE LANDSCAPE LIMITED N O T I C E IS HEREBY GIVEN as follows: (a) BLUE LANDSCAPE 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 30th June, 2017 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said company is Repulse Bay Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023,Nassau, Bahamas
for the three missed deadlines under Mr Izmirlian that prompted the Chapter 11 filing. The original developer blamed “shoddy workmanship” by CCA, with the latter placing the blame with Mr Izmirlian and his team for “mismanaging” the then-$3.5 billion development. But, describing missed deadlines as CCA’s “modus operandi”, Mr Wrinkle told Tribune Business: “If a $4.2 billion project is stuck because of lounge chairs, we’ve got serious problems. “That’s just an insult to the intelligence of the Bahamian public to pass off the opening for lack of a couple hundred lounge chairs, when they could go next door to the Melia and borrow them. “The Government has to be keenly aware of this company, its inability to meet deadlines, to pass inspections and deliver the project on time,” he continued. “We should be extremely concerned. This is a crisis situation. There’s no way a few hundred lounge chairs could prevent the opening of this scope of project and its substantial completion. “They haven’t had a proper opening yet; everything’s been soft. There’s more than meets the eye, and it certainly warrants investigation by the interested parties, including the Government. They need to send out an SOS. How does a 300-room resort require 1,420 lounge chairs?”
CCA, in a lawsuit filed with the south Florida federal court last Thursday, alleges that these 1,420 chairs are “essential to the timely completion” of the Cable Beach development. It warns that it will be unable to meet the October 15, 2017, ‘substantial completion’ deadline for finishing Baha Mar’s construction unless Floridabased Source Outdoor is compelled to deliver. “The project for which these chairs are intended is the most significant tourist development in recent years in the Bahamas,” the Chinese state-owned contractor said in its Friday filings. “Its completion has been carefully calibrated to coincide with the start of the ‘high season’ for tourism in the islands. Because of the significance of this project, and the overriding importance of the completion date, CCA is contractually obligated to complete its activities by October 15, 2017. “Any failure to meet this contractual deadline would result in immediate, irreparable and incalculable damage to CCA’s reputation in the construction industry worldwide and within the Government of the Bahamas,” CCA continued. “It would result in unprecedented derogatory publicity at the peak of the tourism season, and the resulting harm to CCA’s good name would be irreparable and virtually impossible to overcome.”
terms of dollars and percentages. Now-Opposition leader, Philip Davis, said the proposed 25-year power purchase agreement (PPA) with New Fortress would result in fuel cost savings via the switch from ‘Bunker C’ and heavy fuel oil to LNG, while also upgrading New Providence’s electricity generation capacity to avoid the now-frequent summer power outages. He added that New Fortress had offered to supply energy at 13.5 cents per kilowatt hour (kwh) from 120 Mega Watts (MW) of “supplemental”, or additional, generation units that would be installed at BPL’s existing Blue Hills power plant. And, looking longerterm, Mr Davis said the price of energy supplied from a new 260 MW power plant, also fuelled by liquefied natural gas (LNG) and constructed at Blue Hills, would be 10.35 cents per kwh. Mr Bannister, meanwhile, told Tribune Business that the Minnis administration planned to move forward with the Rate Reduction Bond (RRB) intended to refinance the Bahamas Electricity Corporation’s (BEC) legacy debts. BEC’s existing bank and bond debt, together with pension and environmental liabilities and other legacy issues, are estimated at around $600-$650 million. Until these liabilities are refinanced through the RRB, and moved ‘off balance sheet’, BPL’s hands are tied financially - and it is unable to invest in new equipment to upgrade its generation
facilities and transmission and distribution (T&D) infrastructure. Mr Bannister told Tribune Business that the Christie administration seemed to have “abandoned” the RRB refinancing plan, adding: “That’s my impression.” He said: “The intention is to seek to move ahead with the policy in relation to the RRB. The former administration started the process, but didn’t complete it. “We are going to look at this issue to see how best we can serve the public. This RRB is a fairly good idea, but we have to look at all the implications and make the best decision.” Mr Bannister suggested the Government would again be guided by BPL’s new Board on the RRB, acknowledging its importance to resolving the utility’s financial woes and placing it on a sounder footing. “The legacy debt remains a difficult issue for BPL and is something that has to be addressed,” he told Tribune Business. “It’s an absolute need that we do something to modernise the electricity infrastructure. “With the current equipment we have, there’s certainly many, many concerns. That equipment does not permit is to do the things we need to do, and service customers the way we’d like to service them. The staff at BPL, I’m sure, are as frustrated as I am, as they want to give wonderful service and are being prevented from doing so.” The Minister added: “What we are going through this summer, I don’t want to see ever again in this country. Abaco has had a nightmare, Inagua has had a nightmare. This summer the electricity goes off every day in my Carmichael constituency. “Many customers are feeling it. As a country we can do much better, and we want to do what’s best for the Bahamian people.”
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Dated this 5th day of July, A. D. 2017 _________________________________ Repulse Bay Limited Liquidator
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THE TRIBUNE
Wednesday, July 5, 2017, PAGE 5 previously told Tribune Business that the Wynn Group, the Toronto-based developer that is among the Grand Lucayan’s potential purchasers, submitted a proposed ‘Heads of Agreement’ to the Minnis administration last week. Tribune Business contacts familiar with the Grand Lucayan situation were yesterday less optimistic than Mr Thompson, though, suggesting that Wynn had yet to sign a sales contract with the resort’s current owner, Hutchison Whampoa’s property arm. Mr Alnebeck, placing the situation in context, told this newspaper: “For the national economy, I think this is more important than Baha Mar, but you’ve already used that headline. “Freeport is not like Nassau. We’re not afraid of being robbed. We’re used to social infrastructure that works, and if we don’t a big part of that hotel open
we’re going to have a tumultuous winter.” Mr Alnebeck said that while Pelican Bay would be “fine in the short-term”, it would ultimately suffer like all resorts and tourism-related businesses if Freeport lost its standing as a visitor destination. He added that the resort would only cater to the likes of Grand Bahama Shipyard workers and employees at the island’s other industrial companies, pointing to the negative impact reduced hotel capacity has on airlift. “At the most we have 500 rooms open,” the Pelican Bay chief told Tribune Business of Freeport’s total inventory. “What airlift can you keep on, having just 500 hotel rooms open? “We need a destination that has at least 4,000 hotel rooms. If not, it just doesn’t work.” Mr Alnebeck said Cheung Kong Property Holdings, the Grand Lu-
cayan’s current owner, had done little to nothing to repair the property and reopen in the nine months since Hurricane Matthew’s early October 2016 passage. He praised the Minnis administration for seemingly understanding the situation’s urgency for Freeport and its people, but added: “The question is: What can they do very quickly? “They have tried during six weeks in office to get it back on track, but we have to keep on keeping their feet to the fire.” The near nine-month closure of the Grand Lucayan’s Breaker’s Cay property, and much of the Lighthouse Pointe section, together with Memories subsequent pull-out and loss of hundreds of jobs, has had a devastating effect on Freeport’s economy and society. Some are predicting that the city will hit “the point of no return” if the Grand Lucayan
is not sold and re-opened by Christmas. And several Port Lucaya Marketplace vendors have predicted that 95 per cent of tenants “will not survive another two months”, given their dependency on a resort customer base that has all but dried up. Many observers believe the Grand Lucayan’s reopening should be the Minnis administration’s leading national economic priority, given that the situation has the potential to derail its long-term plans for Grand Bahama if it persists much longer. The new government has placed Grand Bahama at the centre of its economic revival strategy, with plans to market the island to three separate tourism niches, plus attract the film/ TV industry and financial services. This, though, will all be for nought unless the current decline is arrested.
riod, when all government spending would have been set or pre-programmed. Rick Lowe, a ‘fiscal hawk’ with the Nassau Institute think-tank, told Tribune Business of the numbers: “That’s horrendous, if that’s the case. There’s just no buckling down at all. “The Central Bank numbers, I’m sure, are accurate. It’s not good. It just adds to the burden.” The Central Bank yesterday also adjusted its position on the Bahamas’ fiscal outlook, warning that prospects for reducing the deficit had become bleaker due to increased civil service salary costs. “Medium-term fiscal consolidation prospects remain dependent on the success of measures to enhance revenue administration and curb expenditure growth,” it said. “However, the near-term prospects of a deficit reduction have lessened, owing to increased expenditure commitments from salaries and ongoing recovery costs from Hurricane Matthew.”
The $234 million ‘deficit’ for the final quarter of the Government’s fiscal year will only add to the explanations that will likely be sought by the rating agencies, Moody’s and Standard & Poor’s, when they visit Nassau in the next few weeks. They, together with the International Monetary Fund (IMF), will likely seek further understanding of the Government’s financial position, having already been unnerved by the $722 million borrowing and $500 million deficit announcements. Breaking down the Government’s fiscal position at end-March 2017, the Central Bank said: “The expansion in expenditure was driven by a $71.6 million (51.7 per cent) rise in capital outlays to $210 million, due mainly to a $55.5 million (51.2 per cent) increase in hurricane rebuilding-related infrastructure spending, and a $16.1 million (53.8% per cent) expansion in asset acquisitions. “In addition, current
expenditure expanded by $30.8 million (2.1 per cent), with a $37.4 million (5 per cent) rise in consumption outlays, and respective increases in personal emoluments and purchases of goods and services of $21.7 million (4.4 per cent) and $15.7 million (6.4 per cent). “In a slight offset, transfer payments contracted by $6.6 million (0.9 per cent), as subsidies declined by $28.1 million (9.9 per cent) on account of decreases in outlays to the Ministry of Tourism, while transfers to households fell by $8.7 million (7.7 per cent). In contrast, interest payments - predominantly on external obligations - rose by $7.3 million (3.8 per cent).” As for revenues, the Central Bank added: “The broad-based gains in revenue over the first three quarters of the fiscal period were led by a $53.7 million (4.3 per cent) rise in tax receipts to $1.308 billion, as taxes on international trade advanced by $22.3 million (5.9 per cent) due to higher
import and excise tax collections. “Similarly, selective taxes on services more than doubled to $21.9 million, due to a two-fold increase in gaming tax receipts to $20.8 million. Further, business and professional fees firmed by $9.7 million (9.5 per cent), buttressed by a $9.2 million (13.2 per cent) gain in general business fees. ‘Other’ non-trade tax inflows grew by $11.9 million (4 per cent), as measures to improve revenue administration contributed to a $16.3 million (18.2 per cent) expansion in property tax collections. “In contrast, with the hurricane-related disruption still evident, ValueAdded tax (VAT) receipts narrowed by $9.5 million (2 per cent) to $465.2 million. In addition, the $4.9 million (13.6 per cent) uptick in income—mainly from ‘other’ miscellaneous sources—as well as the $2.1 million (2 per cent) rise in fines, forfeits and administrative fees supported the growth in non-tax revenue.”
POLICE, FIRE HEROICS PROMPT ANTI-AUSTERITY PUSH IN BRITAIN
spread through the building. Police officers held their riot shields overhead to protect firefighters from falling debris as they rushed into the inferno to rescue trapped residents. Former Prime Minister David Cameron imposed the cap as part of his plan to control spending after the deficit ballooned during the global financial crisis. His successor, May, has continued austerity, saying it will result in a stronger economy that creates jobs and lifts people out of poverty. Treasury chief Philip Hammond is standing by the policy, saying Conservative-led governments have reduced the deficit by twothirds while increasing employment and maintaining economic growth.
‘Two to three weeks’ left to save Freeport From pg B1 an absolute disaster. “If the [Lucayan] strip doesn’t open again, Grand Bahama as a tourist destination will probably not survive. If it doesn’t open up, the destination will not survive.” Mr Alnebeck gave full support to the views of Freeport-based attorneys, Terence Gape and Carey Leonard, both of whom have warned that the Bahamas’ second city is facing an economic crisis unless the Grand Lucayan’s re-opening - and possible sale - are resolved soon. “It’s crunch time now,” the Pelican Bay chief told this newspaper. “Terry Gape was quoted, and Carey Leonard was quoted. I can only say that their de-
scription of the situation is spot on. “I think that if parts of the Grand Lucayan are not open by the winter season unless something is open by the winter season - it’s going to be very hard to turn around. “In the next two to three weeks, there needs to be a sale [of the Grand Lucayan] to be able to save this.” Kwasi Thompson, minister of state for Grand Bahama, who appears to be the Government’s ‘point person’ on the Grand Lucayan situation, told Tribune Business on Tuesday that the Minnis administration felt it was “almost there” in resolving the resort’s fate. While he declined to go into specifics, high-level government sources had
$234m added to deficit during ‘election quarter’ From pg B1 calls and messages seeking comment yesterday, but the figures provide an insight into the extent of the alleged hiring and contract signing frenzy that took place in the former Christie administration’s final few months. “With the Government recording a small surplus on its budgetary operations during the third quarter of the 2016-2107 fiscal year, the cumulative fiscal deficit rose by $5 million over the nine-month period to a preliminary $265.9 million,” the Central Bank said. “In terms of the components, total expenditure grew by $65.3 million (3.9 per cent) to $1.724 billion, outpacing the $60.3 million (4.3 per cent) advance in total revenue to $1.458 billion.” Given that the half-year deficit was pegged at $275
By DANICA KIRKA Associated Pres
LONDON (AP) — Britain’s police and firefighters, repeatedly hailed as heroes in recent months for facing down extremists and rushing into burning buildings, have become the symbol of a new anti-austerity drive in the country. Their exploits are adding to the pressure on Prime Minister Theresa May to ease seven years of belttightening after a disastrous election that cost the government its majority in Parliament and led to calls for her to step down. Over the past few days, key ministers have broken with
million, this suggests the Christie administration ran a near-$10 million ‘surplus’ for the three months to end-March 2017, seemingly making good on efforts to arrest the damage caused by Hurricane Matthew. The Central Bank’s April monthly report placed the end-February, or eightmonth deficit, at $302.9 million - indicating that, possibly as a result of Business License fee collection timing and a crackdown on ‘tax dodgers’ - the Government had managed to generate a $27 million surplus for March. These efforts make the seeming $234 million June quarter ‘deficit’ all the more remarkable, based on the new government’s $500 million deficit projection for the full-year - unless the latter turns out to be incorrect. The Minnis administration was in office for just three weeks of that pe-
government policy on the issue amid a change in public mood. Opposition leader Jeremy Corbyn made emergency services the focus of a march on Parliament last weekend when demonstrators called for an end to the 1 percent cap on pay increases for public employees. With the inflation rate now at 2.9 percent, the cap means the spending power of government workers is shrinking. Speaking before the march, the head of the national firefighters union said the government’s spending policies and deregulation contributed to the June 14 inferno at
Grenfell Tower in west London that killed at least 80 people. More than 11,000 firefighting jobs have been eliminated, and fire stations are being closed and fire engines taken out of service because of the budget cuts, said Matt Wrack, general secretary of the Fire Brigades Union. “This was not an act of God,” Wrack told Sky News, speaking of the Grenfell Tower disaster. “It was a horrific fire, but the failings that led to it happening on that scale are the result of political decisions, a series of decisions that were taken over many years. That includes the deregulation of build-
ing control within local authorities, privatization of building control, the destruction and decimation of fire and rescue service safety inspections, the complete obsession with deregulation.” Grenfell Tower is only the most recent tragedy to put Britain’s emergency workers in the news. On May 22, paramedics rushed to Manchester Arena when a suicide bomber blew himself up after a pop concert, killing 22 people and injuring 116 others. Doctors and nurses worked through the night to treat the wounded, and police launched an around-theclock investigation to find
any accomplices. Less than two weeks later, three men crashed a van into pedestrians on London Bridge, then rampaged through nearby Borough Market slashing and stabbing revelers in bars and restaurants. Eight people died, but the death toll would have been higher if a police officer hadn’t confronted the attackers with nothing but his baton, delaying them until armed officers shot them dead just eight minutes after the attack began. Then there was Grenfell Tower, a 24-story public housing project that was engulfed in flames after a refrigerator fire quickly
PAGE 6, Wednesday, July 5, 2017
THE TRIBUNE
Aussie stocks shine as US holiday subdues global trading By KELVIN CHAN Associated Press HONG KONG (AP) — Australian stocks were the standout performers Tuesday as the central bank kept interest rates unchanged and signaled they wouldn’t be raised soon. Elsewhere, trading was subdued as Wall Street was shut for U.S. Independence Day and amid unease over North Korea’s latest missile launch. KEEPING SCORE: In Europe, France’s CAC 40 closed 0.4 percent lower at 5,174.90 while Germany’s DAX dropped 0.3 percent to 12,437.13. Britain’s FTSE 100 ended down 0.3 percent as well, at 7,357.23. DECISION DOWN UNDER: Officials at the
Reserve Bank of Australia kept interest rates unchanged at 1.5 percent following a monthly policy board meeting, saying it was the right level for sustainable economic growth and to hit inflation targets. More importantly, they indicated they wouldn’t follow counterparts in the U.S., Britain, Europe and Canada who have either started raising rates or are considering doing so. The surprisingly neutral stance of the RBA was felt across markets. The Australian dollar fell 0.7 percent to $0.7607 as traders priced in a lower rate profile going out, but that helped stocks, and the country’s main S&P/ASX index surged 1.8 percent to close at 5,783.80.
ANALYST TAKE: “Expectations that the RBA would adopt a more hawkish rhetoric were misplaced,” said Lee Hardman, currency analyst at MUFG. ASIAN SCORECARD: Elsewhere in Asia, Japan’s benchmark Nikkei 225 index shed 0.1 percent to 20,032.35. South Korea’s Kospi declined 0.6 percent to 2,380.52 and Hong Kong’s Hang Seng slumped 1.5 percent to 25,389.01. The Shanghai Composite Index lost 0.4 percent to 3,182.80. Benchmarks in Taiwan and Southeast Asia also lost ground. ROCKET LAUNCH: Shares in Seoul wobbled briefly after first reports that Pyongyang fired yet another ballistic missile
toward Japan. Stocks resumed sliding as more details came in. North Korean state media said it was the country’s first successful test of an intercontinental ballistic missile, flying 933 kilometers (580 miles) for 39 minutes before falling into the sea. ENERGY: Benchmark U.S. crude advanced 10
cents to $47.17 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price international oils, rose 8 cents to $49.76 a barrel in London. CURRENCIES: The euro was down 0.1 percent at $1.1348 while the dollar fell 0.2 percent to 113.17 yen.
PEOPLE walk past an electronic board showing the Hong Kong Stock Exchange index, yesterday, in Hong Kong, China. Australian shares jumped Tuesday as investors awaited an interest rate decision by the central bank, while other Asian shares were mixed Tuesday ahead of a U.S. trading holiday. (AP Photo/ Vincent Yu)
GOVERNOR PUSHES FOR CAP-AND-TRADE DEAL AS DEADLINE LOOMS By KATHLEEN RONAYNE Associated Press
SACRAMENTO, Calif. (AP) — Gov. Jerry Brown is working with lawmakers, business groups and environmentalists to reach a deal on extending cap and trade, California’s landmark program aimed at slowing global warming. Brown wants a consensus before lawmakers start summer recess on July 21. Reaching a deal this week means the Legislature can vote by Monday, the day before Jimmy Gomez heads to Congress from the state Assembly and takes his reliable cap-and-trade vote with him. The program puts a limit on the state’s carbon emissions and requires polluters to buy allowances to emit greenhouse gases. It’s the primary way for California to reach its ambitious goal of reducing carbon emissions 40 percent below 1990 levels by 2030. If lawmakers do nothing, the program expires in 2020.
THE STICKING POINTS Key pieces of the negotiations are how to regulate local air pollution and contain the program’s costs for businesses and consumers. Assembly Democrats and environmental groups are pushing for a program that would give local air districts power to put additional emissions restrictions on oil refineries in their areas. A group of 20 Democrats sent Brown a letter in June saying low-income neighborhoods and communities of color near oil refineries and other polluters are not seeing the health benefits of cap and trade. Companies can keep emitting pollutants if they have purchased enough allowances. The oil industry wants to prevent additional greenhouse gas reductions on oil refineries. The final deal may include a compromise — putting restrictions on how far carbon regulations can go while also outlining measures for reducing local air pollutants.
CALIFORNIA Gov. Jerry Brown discusses climate change at a news conference in Sacramento, Calif. Brown, lawmakers, business groups and environmentalists are working to reach a deal on extending cap and trade, California’s landmark program aimed at slowing global warming. If a deal is inked, the Legislature can take a vote next Monday, July 10, before Democratic Assemblymen Jimmy Gomez heads to Congress on July 11 and takes a reliable vote for cap-and-trade with him. (AP Photo/Rich Pedroncelli, File)
The sides also are debating whether to include a price cap on emissions allowances and how high to set it. Industry groups prefer a lower number, but environmental groups want to ensure it’s not so low that it
removes incentives for reducing emissions. THE TIMELINE Brown needs support from two-thirds of both chambers, so even one yes vote such as Gomez’s is critical.
MARKET REPORT TUESDAY, 4 JULY 2017
t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com
BISX ALL SHARE INDEX: CLOSE 1,863.80 | CHG 0.05 | %CHG 0.00 | YTD -74.41 | YTD% -3.84 BISX LISTED & TRADED SECURITIES 52WK HI 4.38 17.43 9.09 3.60 4.70 0.13 6.50 8.60 6.10 10.60 14.49 2.72 1.60 6.00 10.00 11.00 10.00 6.90 12.51 11.00
52WK LOW 3.62 17.43 8.19 3.50 1.47 0.12 3.80 8.35 5.83 10.05 10.00 2.18 1.31 5.80 7.55 8.56 7.90 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
1.00 100.00 100.00 100.00 105.00 100.00 100.00 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
104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
MUTUAL FUNDS 52WK HI 2.06 3.93 1.95 169.70 141.76 1.49 1.67 1.58 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 1.43 1.64 1.54 1.04 6.41 7.62 5.66 8.65 10.54 9.57
LAST CLOSE 4.27 15.85 9.09 3.60 1.47 0.12 4.00 8.60 6.00 10.47 10.00 2.48 1.56 6.00 9.75 8.10 9.75 6.90 12.50 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 100.00 100.00 100.00 109.18 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
CLOSE 4.27 15.85 9.09 3.60 1.47 0.12 4.00 8.60 6.00 10.47 10.00 2.54 1.56 6.00 9.75 8.10 9.75 6.90 12.50 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 0.06 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
108.91 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
-0.27 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 115
VOLUME
NAV 2.06 3.93 1.95 168.44 141.76 1.49 1.64 1.58 1.07 6.96 8.50 6.30 9.80 11.13 9.63
EPS$ 0.444 0.932 -0.510 0.383 -1.117 0.000 -0.406 0.587 0.190 0.540 0.570 0.102 0.197 0.753 0.763 0.330 0.830 0.600 0.697 0.000
DIV$ 0.080 1.000 0.000 0.210 0.000 0.000 0.090 0.300 0.220 0.360 0.570 0.060 0.060 0.290 0.450 0.000 0.340 0.140 0.620 0.000
P/E 9.6 17.0 N/M 9.4 N/M N/M -9.9 14.7 31.6 19.4 17.5 24.9 7.9 8.0 12.8 24.5 11.7 11.5 17.9 0.0
YIELD 1.87% 6.31% 0.00% 5.83% 0.00% 0.00% 2.25% 3.49% 3.67% 3.44% 5.70% 2.36% 3.85% 4.83% 4.62% 0.00% 3.49% 2.03% 4.96% 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
0.000 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% 1.57% 4.52% 0.39% 2.75% 0.77% 2.51% 3.95% 3.95% 6.77% 6.77% 1.45% 4.17% -1.59% 0.17% 0.49% 2.72% 1.29% 2.00% 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 30-Apr-2017 30-Apr-2017 30-Apr-2017 31-Dec-2016 31-Dec-2016 30-Apr-2017 30-Apr-2017 30-Apr-2017 30-Apr-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
The Assembly Democrat has said he wants to stay in Sacramento to vote for a deal before becoming a member of Congress on July 11. A new rule requires legislation to be in print for 72 hours before a vote, so a deal is needed by late this week to allow Gomez to participate in a vote by Monday. With some Assembly Democrats non-committal, Brown has said he will look to Republicans for support. But their votes are not a sure thing either. Nancy McFadden, Brown’s chief of staff, has said reauthorizing the pro-
gram could improve the next auction for emissions allowances, set for August. Money from the auctions pays for high-speed rail, housing and energy conservation efforts. Legal challenges and uncertainty over the program’s future led demand for pollution permits to plummet last year. “We think we can have a fairly successful auction in August if the market sees California is serious about continuing this program beyond 2020,” McFadden said June 21 during a panel discussion. “If they have their doubts, and we’re kind of flailing, and the governor has said we need to do this, and there is no action, we’ll see a market response in that August auction.”
NOTICE
NOTICE is hereby given that EDMOND SIMON of Bacardi Road, P.O.Box N-3199, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 28th day of June, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE
NOTICE is hereby given that YVROSE MARCELLUS SIMON of Bacardi Road, P.O.Box N-3199, Nassau Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 28th day of June, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
PUBLIC NOTICE INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, FREDRICK ANTHONY BROWN of P.O. SB-52282, New Providence, Bahamas intend to change my name to FREDRICK ANTHONY ROLLE. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer,P. O. Box N – 742, Nassau, Bahamas no later than Thirty (30)days after the date of publication of this notice.
PUBLIC NOTICE INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, ADRIAN SHERVIN KNOWLES of Soldier Road, New Providence, Bahamas intend to change my name to TREVOR GARTH JOHNSON. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer,P. O. Box N – 742, Nassau, Bahamas no later than Thirty (30)days after the date of publication of this notice.
THE TRIBUNE
ITALY RESCUE PLAN FOR TROUBLED BANK GETS EU APPROVAL MILAN (AP) — Italy’s finance minister said Tuesday the plan to restructure the struggling bank Monte dei Paschi di Siena will provide “a credible future” for the institution, while ensuring stability to the Italian banking sector. Pier Carlo Padoan made the comments after the European Union’s executive approved Italy’s plans to inject 5.4 billion euros ($6 billion) into the world’s oldest bank as part of a five-year restructuring plan that the bank’s management will outline to investors on Wednesday. Italy’s banking system has been weighed down by a heavy load of bad loans due to a prolonged crisis in the eurozone’s third-largest economy coupled with management issues. Besides the Monte dei Paschi rescue, Padoan has been ushering through a plan to save two cooperative banks in the productive northern Veneto region, where account holders have lost billions of euros. The Commission cleared the Monte dei Paschi capital injection only following the contribution of 4.3 billion euros from the bank’s shareholders and junior creditors, as required by EU rules meant to minimize the cost of bailouts for taxpayers. Once the operation is complete, the Italian government will hold a 70 percent stake in the bank. Padoan said he expected that Italy will be repaid its investment in full, with some returns, although he didn’t specify by when and how much. “The rescue is an extremely important element for the bank and the Italian banking system, and another sign of a turnaround after the agreement last week on the Veneto banks,” Padoan told a press conference. “It is a plan that provides certainty and a sustainable future to the bank that will have a very important capital level.”
Wednesday, July 5, 2017, PAGE 7
Mueller probe could draw focus to Russian crime operations By ERIC TUCKER Associated Press WASHINGTON (AP) — The U.S. government has long warned that Russian organized crime posed a threat to democratic institutions, including “criminally linked oligarchs” who might collude with the Russian government to undermine business competition. Those concerns, everpresent if not necessarily top priorities, are front and center once more. An ongoing special counsel investigation is drawing attention to Russian efforts to meddle in democratic processes, the type of skullduggery that in the past has relied on hired hackers and outside criminals. It’s not clear how much the probe by former FBI Director Robert Mueller will center on the criminal underbelly of Moscow, but he’s already picked some lawyers with experience fighting organized crime. And as the team looks for any financial entanglements of Trump associates and relationships with Russian officials, its focus could land again on the intertwining of Russia’s criminal operatives and its intelligence services. Russian organized crime has manifested itself over the decades in more conventional forms of money laundering, credit card fraud and black market sales. Justice Department prosecutors have repeatedly racked up convictions for those offenses. In recent years, though, the bond between Russian intelligence agencies and criminal networks has been especially alarming to American law enforcement officials, blending motives of espionage with more oldfashioned greed. In March, for instance, two hired hackers were charged along with two officers of Russia’s Federal Security Service in a cyberattack on Yahoo Inc. in 2013.
FORMER FBI Director Robert Mueller, the special counsel probing Russian interference in the 2016 election, departs Capitol Hill following a closed door meeting in Washington. A 2001 Justice Department memo warned that no nation, including the United States, was immune from the threat posed by Russian organized crime. The special counsel investigation is bringing attention to Russian efforts to meddle in democratic processes, the type of intelligence gathering that in the past has relied on hired hackers. It’s not clear how much the probe by Mueller will center on the criminal underbelly of Moscow, but he’s already picked some lawyers with experience confronting organized crime. (AP Photo/Andrew Harnik, File) It’s too early to know how Russian criminal networks might fit into the election meddling investigation, but central to the probe are devastating breaches of Democratic email accounts, including those of the Democratic National Committee and Hillary Clinton’s campaign chairman. U.S. authorities have blamed those hacks on Russian intelligence services working to discredit Clinton and help Trump — but have said the overall effort involved thirdparty intermediaries and paid Internet trolls. Former law enforcement officials say Russian organized crime has been a concern for at least a couple of decades, though not necessarily the most pressing demand given finite resources and budget constraints. The threat is diffuse and complex, and Russia’s historic lack of cooperation has
“What they once did here through extortion, some of these groups are now doing through cyberattack vectors.” complicated efforts to apprehend suspects. And the responsibility for combatting the problem often falls across different divisions of the FBI and the Justice Department, depending on whether it’s a criminal or national security offense — a sometimes-blurry boundary. “It’s not an easy thing to kind of grasp or under-
stand, but it’s very dangerous to our country because they have so many different aspects, unlike a traditional cartel,” said Robert Anderson, a retired FBI executive assistant director who worked counterintelligence cases and oversaw the criminal and cyber branch. “You have to know where to look, which makes it more complicated,” he added. “And you have to understand what you’re looking for.” Federal prosecutors continue to bring traditional organized crime cases, such as one last month in New York charging 33 members and associates of a Russian crime syndicate in a racketeering and extortion scheme that officials say involved cargo shipment thefts and efforts to defraud casinos. But there’s a heightened awareness about more sophisticated cyber threats
that commingle the interests of the government and of criminals. “An organized criminal group matures in what they do,” said retired FBI assistant director Ron Hosko. “What they once did here through extortion, some of these groups are now doing through cyberattack vectors.” Within the Justice Department, it’s been apparent since the collapse of the Soviet Union that crime from that territory could affect national security in Europe and the U.S. A 2001 report from the Justice Department’s National Institute of Justice, a research arm, called America “the land of opportunity for unloading criminal goods and laundering dirty money.” Three months later came the Sept. 11 attacks, and the FBI, then under Mueller’s leadership, shifted resources to focus on terrorism. “I recall talking to the racketeering guys after that and them saying, ‘Forget any focus now on organized crime,’” said James Finckenauer, an author of the report. Besides cyber threats, Justice Department officials in recent years have worried about the effect of unchecked international corruption, creating a kleptocracy initiative to recover money plundered by government leaders for their own purposes. In 2014, then-Attorney General Eric Holder pledged the Justice Department’s commitment to recouping huge sums believed to have been stolen by the ousted Russian-backed government of Viktor Yanukovych, the Ukrainian president chased from power earlier that year. That effort led to an FBI focus on Paul Manafort, the Trump campaign chairman who lobbied for Yanukovych’s government and who remains under investigation now.