FRIDAY, JULY 8, 2016
business@tribunemedia.net
‘No way’ Bahamas can be cut to junk By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THERE is “no way” that Moody’s can cut the Bahamas to ‘junk’ status because it is still meeting all its debt obligations as they become due, a former finance minister argued yesterday. James Smith told Tribune Business his only “problem” with the rating agency’s threat to downgrade the Bahamas was that it ‘left the door’ open to a loss of this nation’s investment grade status. He argued that the Bahamas was “a long way” from such a position, given that it always been able to meet its debt obligations - and would continue to do so into the foreseeable future.
Ex-minister says such action by Moody’s illogical
HG Christie named to revive Wells’ Lyford Hills
As Govt ‘long way’ from debt default
‘Stagnated’ due to lack of buyer marketing
‘Real problem’ if ranked below Jamaica, Barbados Mr Smith said a cut to socalled ‘junk’ status was only warranted if a country was unable to pay its debt as it became due, and the Bahamas was “still not in that position yet”. Seeking to clarify his position on Moody’s threatened downgrade of the Bahamas’ sovereign creditworthiness, Mr Smith conceded that the coun-
Aiming for near phase one sell-out by 2016 close
try’s economic and growth performance had been “bad”. Yet he said the New Yorkbased rating agency also needed to account for the Bahamas’ credible track record, which showed it had not been forced to seek International Monetary Fund (IMF), or initiate a ‘fire sale’ of public assets, during 43 years of independence.
JAMES SMITH “I don’t have a problem with their past analyses or even the series of downgrades,” Mr Smith told Tribune Business. “My problem is a downgrade that cuts the position to ‘junk’.” See PG B3
Bran: US gives ‘kick in Govt ‘encourages’ Bahamian hip’ to Govt policies group’s landfill ‘win-win’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE US has delivered “another kick in the hip” to the Government’s conduct of economic policy with its latest transparency concerns over public sector contracts, the Democratic National Alliance’s (DNA) leader charged yesterday. Branville McCartney told Tribune Business that the fact that the US administration had issued two similar warnings within a year showed that the Government needed to “stop its foolishness” with the awarding of public procurement deals. “The US has issued another warning to the Government,” he told Tribune Business. “A year ago, it issued a very similar warning to the Government about transparency in its negotiations of contracts. “What the US is telling See PG B5
Report shows ‘foolishness must stop’ DNA leader says it will have to account to Moody’s
BRANVILLE MCCARTNEY
Landfill chief: ‘Don’t read anything’ into our CEO transition By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net RENEW Bahamas’ principal shareholder yesterday said “nothing can be read” into his stepping down as the New Providence landfill manager’s chief executive, as concerns persist over its financial health. Gerhard Beukes told Tribune Business that it was “a pre-determined transition” for him to move back from Renew Bahamas’ day-to-day operations in favour of the company’s chief operating officer, Michael Cox. Mr Beukes, who corporate records show as Renew Bahamas’ 60 per cent majority shareholder, explained that Mr Cox’s ascension to the chief executive post was designed to occur when the company had reached its operational phase. He emphasised that he remained on Renew Bahamas’ Board as a director, adding: “I’m still a director of the company; I stepped down as chief executive. “That was part of a preplanned transition role. Nothing can be read into that. I’m still a director of the company, and very involved in what happens.” Mr Beukes continued: “It was just a pre-determined transition. As companies evolve, you go through See PG B4
Realtors targeting $40m sales to wake ‘sleeping giant’
Beukes: ‘I’m still very involved in what happens’ Stays as director; move ‘pre-planned switch’ ‘No comment’ on Govt talks, firm’s future plans
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By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government is seeking a “holistic” solution to the New Providence landfill’s numerous challenges, and is encouraging a Bahamian consortium to advance its proposal for taking away 25 per cent of existing waste streams. Kenred Dorsett, minister of housing and the environment, told Tribune Business in a recent interview that the proposal by Waste Resources Development Group (WRDG) fitted with the Government’s desire to divert green and wood waste away from the landfill. The minister, who has Cabinet responsibility for the landfill, said he wanted to bring both WRDG and Renew Bahamas, the facility’s private sector manager, “to the table” to discuss how all sides could work together for the common good. Mr Dorsett, though, said this was tied to the completion of an engineering assessment of what is needed to remediate the landfill, and curtail the fires and hazardous See PG B4
Seeking ‘holistic’ solution to facility’s problems Describes remediation study as ‘missing link’ Hoping to establish recycling depot at landfill
KENRED DORSETT
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMIAN realtors yesterday said they were targeting “$40-odd million” in total sales as they bid to awaken the ‘sleeping giant’ that is the Lyford Hills project, which is being developed by ex-Cabinet minister Tennyson Wells. Ryan Knowles, a realtor with HG Christie Ltd, told Tribune Business that he hoped to be “very close” to selling the development’s remaining 35 phase one lots by yearend 2016. Speaking after HG Christie was appointed as the exclusive sales and marketing agent for Lyford Hills, Mr Knowles said a phase one sell-out would trigger infrastructure completion for phases two and three. This, in turn will free more than 100 lots for sale, with Mr Knowles and fellow realtor, Shamon Campbell, estimating that Lyford Hills’ total construction worth will be “four to five times’” sales value once all homeowners have constructed their properties Mr Knowles said that while Lyford Hills had been in development for several years, sales had “stagnated” prior to HG Christie’s appointment, and the firm was now moving to revive buyer demand. “It’s been on the market for a few years,” he told Tribune Business of the community, which is located just east of Lyford Cay itself. “But the last couple of years it has stagnated, probably due to the slow economy, but we also feel there was a lack of identity and market push.” Mr Knowles said they had managed to sell two lots in the two weeks since formally relaunching Lyford Hills on to the market following HG Christie’s appointment. “The developers are developers. They haven’t really been marketing it that much,” he reiterated. “Based on the reaction so far, we think it’s going to be very successful. “The market is still somewhat challenges based on what’s happening out there, but we’ve sold two lots in two weeks. We think See PG B3