Issuu

business@tribunemedia.net

THURSDAY, JULY 14, 2022

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COVID’s $190m blowout cuts NIB’s reserves 11% By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A $190m deficit blow-out triggered by COVID-19 resulted in the National Insurance Board’s reserves slumping to $1.54bn at year-end 2020, it can be revealed. Draft 2020 financial statements, which have been obtained by Tribune Business, for the first time reveal the extent of the damage inflicted by the pandemic on The Bahamas’ national social security scheme which was already struggling in its worsening battle for long-term viability. NIB’s reserve fund shrank by almost 11 percent, or nearly $189m, in just 12 months as it was forced to liquidate investments to meet unemployment payouts and other forms of COVID-related assistance when the Bahamian economy collapsed virtually overnight. The figures reveal that shortterm benefits payouts, which would have included NIB’s 13-week

• Unemployment and short-term benefits tripled in pandemic

unemployment assistance initiative, more than tripled year-over-year - increasing by 209 percent from $41.868m in 2021 to $129.84m - due to the scale of terminations and furloughs sparked by COVID-19 lockdowns and other restrictions. As a result, total benefits expenditure soared to $405.876m for

Cheque volumes fall 7.5% annually over past decade By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Central Bank’s governor yesterday said cheques cleared via the Bahamian banking system have decreased by 7.5 percent annually over the past decade with businesses, especially, dropping an instrument “very susceptible to fraud”. John Rolle, responding to Tribune Business questions over the regulator and commercial banking industry’s joint push to eliminate the use of cheques by yearend 2024, asserted that the move is aligned with efforts to “continually upgrade and modernise the payments infrastructure” in The Bahamas. Pointing out that cheque usage has declined in tandem with the rise in digital and online banking alternatives, he disclosed: “The access to digital alternatives has been the main driver for the reduction in local cheque use. According to data from the ACH (Automated Clearing

JOHN ROLLE House), the volume of cheques cleared thorough the inter-bank process has reduced over the last decade by any average yearly rate of 7.5 percent since 2011. “The value of these instruments fell by 2.3 percent on average each year. Over the same period, volume and value of electronic payments rose at a double digit average annual pace.” While the volume of cheque use has declined by around 50 percent over the five years since 2017, some 1.2m payments - involving a collective $4.2bn sum

SEE PAGE B9

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Give up pension ‘bargain’ to save future generations • ‘Impossible’ for NIB contributions to stay so low • Report totally contradicts PM’s rate positions • ‘If this isn’t clarion call, I don’t know what is’

• Social security fund slumps from over $1.7bn to $1.544bn

• While contribution income plunged by 21% or over $50m

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the 12 months to end-December 2020, representing a 30.2 percent year-over-year jump from 2019’s $311.64m, with the increase driven almost entirely by unemployment and other short-term relief payouts. And the benefits surge coincided with a 21.3 percent plunge in NIB’s contribution income from employers and their workers, which declined by more than $51m from $287.131m

SEE PAGE B5

Development Bank aided by $20m NIB bond switch By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net SOME $37m in Bahamas Development Bank (BDB) bonds held by the National Insurance Board (NIB) were converted into a long-term 20-year loan as the lender’s solvency deficiency rose to $13.629m at year-end 2020. The Government-owned financial institution’s financial statements for that year, tabled in the House of Assembly yesterday, reveal that converting the bonds to a loan with a 3.94 percent interest coupon saved the BDB from having to redeem $10m worth of bonds that were due to mature in 2020. The $37m in bonds, divided into multiple tranches, carried interest coupons of either 4.25 percent or 3.25 percent, so the investment rate of return impact for NIB as a result of the loan conversion is unlikely

SEE PAGE B8

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMIANS must give up the “bargain” of their generous National Insurance Board (NIB) pension to prevent “future generations” facing an unsustainable financial burden, it was revealed yesterday, as “the day of reckoning” arrived. The International Labour Organisation (ILO), in the 11th actuarial report on NIB’s solvency and sustainability, warned there is no choice but to immediately

MYLES LARODA increase contribution rates beyond the existing 9.8 percent otherwise the country’s future may be

SEE PAGE B7

$20m housing financing ‘shouldn’t be secret deal’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Opposition’s finance spokesman was yesterday less than impressed with the Government’s efforts at “transparency” over its flagship $20m housing initiative, asserting: “This should not be a secret deal.” Kwasi Thompson, the east Grand Bahama MP, told Tribune Business that

JoBeth Coleby-Davis, minister of transport and housing, had “left the situation more confused than ever” over the financing terms and other details surrounding the 365-lot Renaissance at Carmichael subdivision. He especially zeroed in on the minister’s answers, both oral and written, which said the Department of

SEE PAGE B6

PAGE 2, Thursday, July 14, 2022

THE TRIBUNE

Nothing stays the same: Change now inevitable I

n this Information Age, and its impact on the ever-evolving global economy, change is now the norm for business. But, despite its presence everywhere, change does not come easy. Companies sometimes fail to make critical reforms due to an ingrained resistance to change. Here are a few reasons why people resist change: Mindset: Many employees, who regard the workplace as their only source of income, will always want to have a simplified job format. When the company begin to make changes to its operations, what immediately comes to an employee’s mind is: “Will the change simplify or complicate my work?” Change of routine: When employees are comfortable in following a routine, they want to remain there, as they fear they may have to work harder or do things differently. Lack of expertise:

knowledge/ Employees

may resist change simply because they lack sufficient knowledge or expertise. Not knowing much about the specifics of the change, they imagine it will be difficult to deal with and therefore resist giving it a chance. Workload: Change is always assumed to be hard, especially in a company and, as a result, an overwhelming feeling of overload may arise. Unwilling to learn: Some employees feel their work does not require further advancement, and are therefore unwilling to learn something new, which produces opposition. Compensation: Compensation is one of the main factors that makes employees perform better. If they feel that the change in operations will not make a difference on their pay slip, then they may not be interested. Loss of freedom: Employees who have reached a certain level of personal freedom at a

DEIDRE

BastiaN workplace do not want to lose that luxury. Loss of status or job security: Employees, peers and managers have a tendency to resist administrative and technological changes that may result in their role being eliminated or reduced. The fear of losing control, power, position or status is a concern.

Poorly-aligned reward systems: There is a common saying that “managers get how they reward”. Therefore, companies will resist changes when there is no reward to support what is being implemented. Resistance occurs when employees cannot answer: “What’s in it for me?”

is wrong, or that the person leading the change is incompetent. Others may resist due to the fear of losing power, and are therefore committed to watching the change effort fail. Political obstacles are frustrating when you are trying to implement needed change in a company.

Surprise and fear of the unknown: The less your team members know about the change and its impact on them, the more fearful they may become. A company needs to be prepared for the change and not surprised. In fact, ongoing communication is one of your most critical tools for handling resistance to change.

Fear of failure: Team members may resist changes because they are worried they may not be able to adapt to new work requirements, and therefore fear failure. Bad timing: Sometimes undue resistance can occur due to changes being introduced in an insensitive manner or at an awkward time. How will change benefit companies and employees? Human beings generally do not like “change”, as they prefer things to remain the same to preserve their comfort zone. When companies make positive changes, it helps to build competition, bring technological advances and develops satisfied

Mistrust: Change does not succeed in a climate of mistrust. Spend some time rebuilding trust if you seek to yield better results from the reform effort. Company politics: Some resist change as a political strategy to maliciously “prove” that the decision

customers, which in turn increases productivity. Change is inevitable...... nothing stays the same. Subtle changes can have a significant impact over time, especially as engaging in the same obsolete methods usually only results in malfunctions. Until we meet again, fill your life with memories rather than regrets. Enjoy life and stay on top of your game. NB: Columnist welcomes feedback at deedee21bastian@gmail.com ABOUT COLUMNIST: Deidre M. Bastian is a professionally-trained graphic designer/brand marketing analyst, author and certified life coach with qualifications of A.Sc. B.Sc. M.Sc. She has trained at institutions such as: Miami Lakes Technical Centre, Success Training College, College of The Bahamas, Nova Southeastern University, Learning Tree International, Langevine International and Synergy Bahamas.

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THE TRIBUNE

Thursday, July 14, 2022, PAGE 3

PM: DIGITAL ASSET AMBITIONS TO REBUILD FINANCIAL SERVICES By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

THE Prime Minister yesterday said The Bahamas’ ambitions to become a digital assets hub will help it recover financial services activity that has been lost to the “global assault” on international financial centres (IFCs). Philip Davis QC, speaking at the Concordia Americas Summit in Miami, asserted that over the past 25 years the Caribbean has been “disappointed by global forces and external

shocks” that lie beyond the region’s control. “The modern Bahamas is built on two pillars. Tourism, which makes up approximately 80 percent of our GDP, and then financial services,” he added. “Globally, our financial services were assaulted by the OECD (Organisation for Economic Co-operation and Development) and the other forces, FATF (The Financial Action Task Force), and we survived by continuing to be innovative and creative and attempting to stay ahead of those forces.” This has involved complying with these agencies’

rules on tax information exchange and other forms of disclosure demanded primarily by the 27-nation European Union (EU) and its members. However, the evolution of digital assets the likes of crypto currency, blockchain and non-fungible tokens - has provided The Bahamas with an opportunity to restablish its value proposition and a financial services competitive advantage. “Hence we, for example, recognised the space of crypto, recognising that it is here and it’s here to stay, and so I immediately upon assuming office, recognising that and recognising that 20

percent of my GDP I had lost because of the intervention of the industrialised world, that was the way to replace it. So I went after the crypto and the digital space,” Mr Davis said. “The Bahamas is an ocean state, spreading over 100,000 square miles. We are amongst the 10 most vulnerable countries in the world to climate change. Our islands could disappear within the next 30 years, and so the effort to reduce the carbon footprint is a crisis for us.” “What we have recognised is that The Bahamas and small island states have nothing to do with carbon

emissions. But quite apart from not emitting, we are the one of the major and significant carbon sinks of the world.” The Bahamas has been “picking garbage out of the air because of our seagrass and mangroves, but we’re not being paid for it”, Mr Davis said. He wants to “tie” the climate change fight to digital assets so that The Bahamas can raise revenues while simultaneously holding developed countries accountable for their pollution. He added: “We’ll be continuing along those lines, but it is for us to continue to stay together and let those

who are responsible for the consequences that we are now suffering pay for it. “I can say unequivocally that more than 50 percent of my national debt today is as a direct result of the consequences of climate change. Adaptation and mitigation. We have to borrow to recover, borrow to restore and bring back the country to normalcy, and now that all we have are pledges and pledge fatigue. Hopefully by this COP27 coming up we will see more real action from the world.”

Developer launches used car sales app By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A SOFTWARE developer yesterday said it is launching the Bahvee app to make it easier for Bahamians to buy and sell used cars. Donnico Miller, Bahvee’s chief executive, said said: “This is our first app. App development is going really well for us now” but there is no focus on any other product aside from used

cars at present. Bahvee has ambitions to expand into car rentals when it is fully operational, and he added: “It seems like the next step from a car selling app.” Bahvee operational for six months now, with the app taking Mr Miller and his team a year to fully develop ahead of next week’s launch, where it will be free to use for subscribers. Vehicle sellers will have to pay a nominal fee to list their auto on the app. Mr Miller added: “Getting Bahvee developed was challenging at times in

getting certain features to work, like the push notifications and other things, but it is done now.” Facebook is currently used by most Bahamians to buy and sell products, ranging from heavy-duty appliances to small gadgets and even used cars, as the platform is free for listing, buying and selling. “The problem with Facebook is that it is not specifically for cars,” he said. Software developers have been active over the past 24 months as the technology

sector in The Bahamas continues to evolve. Duran Humes, Plato Alpha’s chief executive, told Tribune Business that businesses are signing up for his company’s “Triblock HR” human resource and payroll management system. He said: “We just closed two new clients at the end of last month for the Triblock, and we are in the process of closing another by the end of this month. We have other projects in the works, but they aren’t something we can publicise just yet.”

Maritime Academy chief lays out vision to minister THE LJM Maritime Academy’s president has outlined its training programme and vision to JoBeth Coleby-Davis, the minister of transport and housing, in their first-ever meeting. Dr Brendamae Cleare paid a courtesy call on Mrs Coleby-Davis at the ministry’s offices, where she described LJM’s training of maritime cadets, the educational assistance provided through scholarships, and the academy’s vision to produce well-prepared maritime industry leaders. Dr Cleare is pictured (left) with Mrs Coleby-Davis. Photo:Anthon Thompson/ BIS

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PAGE 4, Thursday, July 14, 2022

THE TRIBUNE

WTO MEMBERSHIP MUST BE ‘PRIVATE SECTOR DRIVEN’ THE Bahamas will only restart the accession process for full World Trade Organisation (WTO) membership if it is “private sector driven”, a Cabinet minister has asserted. Michael Halkitis, minister of economic affairs, said the stop-start WTO process, which has now lasted for more than two decades, will only resume if the business community wants it. He set out the Government’s permission while outlining the priorities for the newlyappointed Bahamas Trade Commission during its first meeting at the Balmoral Club on Sanford Drive. Philip Galanis, the former MP and Senator, and managing partner at the HLB Galanis accounting firm, will chair the Trade Commission and act as The Bahamas’ chief trade negotiator. Senator Barry Griffin will serve both as deputy chair and deputy chief negotiator. Mr Halkitis, who attended the meeting virtually, said: “This is a carefully selected team that represents the diversity that exists in a modern Bahamas. The members include women, young persons, small business as well

as representatives from the Family Islands. “Importantly, you represent different perspectives. Some of you have experience in trade, while others may have peripheral knowledge. We need your views and opinions in order to have a holistic view of the opportunities and challenges as well as the impacts of implementing international trade in Our Blueprint for Change. Mr Galanis would have developed experience as a former chair of the Trade Commission, and is a well-respected accounting professional.” Mr Halkitis focused on three areas including the just-released draft National Trade Policy, which was prepared with support from the International Trade Centre (ITC). This will provide the framework for the Government’s economic diversification strategy, which seeks to exploit opportunities in the blue, green and orange economies via international trade over the next three years. The minister said trade accounts for around 80 percent of the country’s Gross Domestic Product (GDP), and added: “The

Bahamas is highly dependent on imports. These imports include many essential goods. To finance these imports, the country relies on income generated through the export of goods and services. “The National Trade Policy is an analysis of the existing trade structure, and builds a platform to include a greater range of players in goods and services exports. The policy is built on four pillars, which include: managing imports; expanding exports; diversifying exports; and strengthening domestic competitiveness. “To this end, the trade policy is a strategic tool in moving the country forward economically and systematically. It recognises that providing a supportive trading environment is not the sole responsibility of the trade ministry but requires legislative, policy and institutional reform to be undertaken in a number of areas in a collaborative manner. One area that stands out is the [cultural exports linkage], a vibrant intellectual property regime and a dynamic export promotion strategy.” Mr Halkitis then focused on existing trade

MEMBERS of the newly-appointed Bahamas Trade Commission are pictured from left: Permanent secretary, Ministry of Economic Affairs, Donella Bodie; Ian Cargill; D’Krizia Bartlett; deputy chair/Trade Commission and deputy chief negotiator, Senator Barry N. Griffin; chair of the Trade Commission and chief negotiator, Philip Galanis; Senator Darron Pickstock; Japhier Gardiner; and director of trade and industry, Ministry of Economic Affairs, Brickell Pinder. Photo:Patrick Hanna/BIS agreements. “The Bahamas has trade agreements with the US, European Union (EU), Canada and the United Kingdom. Geographically, these agreements are limited and empirical evidence suggests digitisation has opened opportunities, particularly for services trade globally to markets in the Middle East and Africa, as an example,” he explained. “On a technical level, the CARIFORUM-EU Economic Partnership Agreement (EPA) has a built-in five year review mechanism. The EPA is a development-oriented trade agreement which provides duty-free, quota-free access for CARIFORUM’s exports to the EU, and provides access for trade in services. “While The Bahamas is a major beneficiary of the agreement when compared to the rest of the region in the area of services, a recent study completed by my ministry on opportunities for the export of professional services to selected EU markets indicated that there are untapped market opportunities.” Mr Halkitis said subsequent to the UK’s decision to leave the EU there have been efforts to establish the institutional mechanisms for the implementation of the CARIFORUM-UK EPA trade agreement. The Bahamas as a member of the CARIFORUM group has been participating in those meetings. CARICOM, he added, is actively engaged in negotiating trade agreements with South America. “The US is also moving in that direction. In fact, a major theme of the Summit of the Americas is the move by the US for ‘nearshoring’, or moving a lot of the manufacturing and services supply closer to them. Although The

Bahamas is not a part of any of CARICOM’s other trade agreements, the Cabinet has agreed that we should observe the CARICOMColombia negotiations.” Turning to the WTO, Mr Halkitis said: “Successive governments have undertaken studies to understand the legislative and policy reforms for joining the WTO. The sticking point is negotiating access to the services sectors, an area where there has been extensive consultations with the private sector. “The process is therefore only one-third complete. The Government of The Bahamas currently maintains the position that negotiations will not resume unless the private sector is driving the process.” Mr Halkitis said the WTO’s 12th ministerial conference took place from June 12-17 to review the functioning of the multilateral trading system, make general statements and take action on the future work of the WTO. “The conference was formally observed by the ambassador, Patricia Hermanns, in Geneva,” Mr Halkitis said. “The conference concluded successfully on 17 June, with agreement on a package of key trade initiatives. Several issues were raised that may have a domestic impact on our country despite our nonmember status, such as the moratorium on e-commerce and fisheries subsidies.” Discussing the role that the Trade Commission will play, the minister added: “The responsibilities of the Trade Commission team are extensive, and there is no doubt that there is a lot of work to be done. The importance of the role of public awareness cannot be overstated, especially when it comes to discussing the opportunities

and benefits of trade liberalisation.” The Commission’s tasks include increasing public awareness about what is happening in the international trade environment, especially when public confidence is lacking due to limited understanding of the link between trade and economic development. It will have a critical role in bridging the gap between the public and the Government regarding the latter’s trade agendas. The Trade Commission has also been given the responsibility for identifying which industries and sectors are most vulnerable to trade liberalisation, as well as identifying the extent to which they are vulnerable. It will focus on market access and anti-dumping, and has to provide the Government with recommendations on the positions to take over increasing market access and counteracting ‘dumping’. Dumping involves foreign companies selling low-priced, inferior and poor quality goods into The Bahamas in a bid to undercut domestic firms and drive them out of the market via unfair competitive practices. “In order to increase public confidence, the Commission will be challenged to identify the extent to which the public is faced with market access limitations while trading internationally, as well as share its recommendations to the Government during trade negotiations. The work of the Commission is wide ranging and you have a heavy responsibility to engage widely and frankly on trade issues, and to be innovative in your approaches,” Mr Halkitis said.

THE TRIBUNE

Thursday, July 14, 2022, PAGE 5

COVID’S $190M BLOWOUT CUTS NIB’S RESERVES 11%

FROM PAGE B1

in 2019 to $225.984m the following year. Monies received from employers dropped by almost 20 percent, falling from $166.986m to $134.075m in 2020, while contributions from the self-employed fell by close to 22 percent. They plummeted from $116.11m in 2019 to $90.994m. Investment income, too, was impacted by the pandemic’s impact on both local and international securities valuations. This fell by close to 39 percent year-over-year, dropping from $68.484m to $41.949m. Acting on instructions from the Central Bank, NIB was requested to liquidate and repatriate overseas investments to boost the nation’s foreign currency reserves as tourism inflows dried up, and the accounts reveal it sold-off some $51.421m in US treasuries. The combined effect of the contribution and investment income decline, plus soaring benefits payouts, which were both products of the COVID pandemic, was to produce a record $189.5m NIB deficit. This measures by how much the social security system’s benefits payments exceed its income, and the 2020 deficit was more than 22 times’ greater than the prior year’s $8.482m. NIB was forced to use its reserve fund to cover this deficit, resulting in a corresponding reduction from $1.733bn at year-end 2019 to $1.544bn just 12 months later. While multiple actuarial reports going back two decades have repeatedly warned that major reforms are critical to rescuing NIB, and shoring up its long-term sustainability, the COVIDinduced blow-out has likely made this task even more urgent while increasing the amount of work required. The scheme’s latest 11th actuarial report, tabled in the House of Assembly yesterday, aligned with the 2020 draft management accounts by forecasting that NIB was likely to run

a combined $276m deficit over the three years between 2019 and 2021. With the deficits for 2019 and 2020 pegged at $8.842m and $189.5m respectively, and NIB last week revealing that 2021’s was $70m, that makes for a combined $268.342m. “The cumulative deficit (total income minus total expenditures) over the period 2019 to 2021 is expected to be $276m, exacerbating the continuous decrease of the reserve,” the report asserted. It affirmed that unemployment benefits payouts hit a record high of $108m in 2020 at COVID’s peak. Besides diverting monies away from funding pensions payouts, the report said the financial damage inflicted by the pandemic has also hiked the near-term contribution rate increase to ensure NIB can meet all expenditure obligations. “The amount of unemployment benefits paid in 2020 is historically high at $108m when compared to the average annual unemployment benefits paid at $12m over the period 2014 to 2019,” the report, produced by the International Labour Organisation (ILO), said. “Since more contributions are needed to finance the short-term benefits branch this means less contributions to finance the pension branch..... “The required contribution rate to pay all expenditures of all branches during the next 60 years is 22.55 percent. Higher unemployment benefits paid in 2020 due to the severe contraction of GDP because of the COVID19 pandemic increases the required contribution rate to 23.05 percent from 2019 to 2023.” That rate, the NIB actuarial report said, fall back to the long-term 22.55 percent from 2024 onwards. NIB’s reserve fund is now forecast to be exhausted one year earlier than previously projected, in 2028 as opposed to 2029, and the report recommended that the Government focus

on shoring up the social security system’s shortterm viability through “adequately financing” its pensions arm which represents longer-term benefits. This drove the recommendation to increase NIB’s contribution rate by two percentage points to 11.8 percent by July 1. Further contribution rate increases, to be implemented every two years through to July 1, 2036, “could restore the short and medium-term financial sustainability of the scheme”. However, the 11th actuarial report warned that the contribution rate achieved by 2036 - even if its recommendation was to be adopted - would “likely not be sufficient” to address NIB’s long-term viability. NIB’s present contribution rate is 9.8 percent, split 3.9 percent/5.9 percent between employee and employer, with the latter

paying the majority. The 11th actuarial report is recommending that this rate increases by 72.4 percent, in percentage terms, in the near-term to 16.9 percent by 2029 before more than doubling over the long-term. Any rate hikes, especially of such magnitude, besides increasing business costs will also cut into employee take-home pay and disposable income just when they are facing heightened inflation. However, the Inter-American Development Bank (IDB) reported in 2018 that NIB contribution rates must more than double to over 20 percent to prevent a long-term Bahamian pension crisis. Myles Laroda, the minister of state with responsibility for NIB, affirmed the grim outlook in addressing the House of Assembly yesterday. He confirmed that NIB

is increasingly using its reserves to pay benefits since total payouts have exceeded the combined value of contribution and investment income for every year since 2016. “The reserves for the pensions branch will be exhausted in 2028, one year earlier than in previous actuarial reviews,” the minister warned. “Immediate actions are needed to not only restore the long-term sustainability of the scheme but, most importantly, the short-term. “A significant increase in contribution rates from 9.8 percent to 16.9 percent would be required to pay the full expenditure in 2029. The required contribution rate to pay all expenditure for all branches during the next 60 branches, ie up to 2078, is 22.55 percent..... The need to adequately finance the pension branch in order to make the

scheme sustainable over the short-term, that should start now.” NIB’s draft 2020 financial statements, meanwhile, show that is owed everincreasing sums by the Government (meaning Bahamian taxpayers). They reveal that the Minnis administration, between January 5 and April 19, 2021, issued three separate promissory notes in NIB’s favour pledging to reimburse it a combined $72.4m. The first, issued on January 5, was for $38m to cover monies paid by NIB with respect to the Chronic Diseases Prescription Drug programme. The latter two, worth $15m and $19.4m, were to cover redemption of an Education Loan Authority bond that matured in 2020 and NIB making payments on the Government’s behalf for the latter’s own COVID unemployment assistance initiative.

PAGE 6, Thursday, July 14, 2022

THE TRIBUNE

$20m housing financing ‘shouldn’t be secret deal’ FROM PAGE B1 Housing has “entered into a funding agreement with a Bahamian wealth management fund” to provide the $20m for Renaissance even though multiple media reports at the time said the facility had been arranged by Bahamian and Jamaican financial services providers. These are Simplified Lending and Proven Wealth Ltd, respectively. However, Mrs Coleby-Davis in her written answers said: “There is no agreement with Simplified Lending and Proven Wealth Management.” Mr Thompson, too, queried this in the House of Assembly, giving the minister an

opportunity to revise her answers, but she reaffirmed the position given. Mrs Coleby-Davis also declined to lay a copy of the agreement with Simplified Lending and Proven Wealth in the House of Assembly on the basis of its “sensitive nature”. However, in the same breath, she added that “in the interest of transparency I commit to confirming to this House the interest, terms and repayment of the funding agreement” at a later date. The minister’s written answers said the $20m loan proceeds have yet to be received and disbursed, with the monies set to finance the development and build-out

of a 70-acre site set to feature 200 homes in its first phase. The arrangement with Simplified Lending and Proven Wealth was hailed with great fanfare at a press conference featuring both the Prime Minister and Mrs Coleby-Davis, who said it will set “a new standard” for housing public-private partnerships (PPPs). Executives from both Simplified Lending and Proven Wealth were present at the press conference, with the Bahamian company appearing to have acted as a financial broker in securing the funding from its Jamaican counterpart. Johann Heaven, a Proven Management director,

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MOTOR I HOME I COMMERCIAL

was among those present, and press releases issued on Renaissance described the two entities as having “partnered.... to provide funding”. Voicing surprise at the minister’s assertion that there is “no agreement” with the two companies, Mr Thompson told Tribune Business: “The minister should have tabled the agreement and refuses. She also refuses to state the terms of interest and repayment terms of the so-called ‘funding agreement’. Where is the transparency? This should not be a secret deal.” Robert Pantry, Simplified Lending’s principal, was yesterday said to be locked in meetings and negotiations and did not respond to this newspaper’s calls and messages seeking comment before press time last night. A former RBC FINCO managing director, he founded Simplified Lending in partnership with ex-Central Bank governor, Julian Francis, and the company describes itself as the “largest mortgage and money broker” in The Bahamas. Reading between the lines of Mrs Coleby-Davis’ answers, it is likely that an investment fund or special purpose vehicle (SPV) has been created through which the funding will flow to Renaissance as the drawdown and development schedule requires. The deal will also likely have been structured to keep any debt off the Government’s balance sheet. Proven Wealth has strong political connections in Jamaica. One of its

co-founders and a current director, Mark Golding, is leader of Jamaica’s principal opposition party, the People’s National Party (PNP), while another co-founder, Peter Bunting, served alongside him in the last of Portia Simpson-Miller’s Cabinets. And another co-founder and Proven director, Garfield ‘Garry’ Sinclair, is former chief executive at the Bahamas Telecommunications Company (BTC). This newspaper has seen photos of Philip Davis QC, the Prime Minister, meeting Mr Golding in Jamaica while attending the CARIFTA track and field championships earlier this year. Mrs Coleby-Davis accompanied the Prime Minister on the trip, and visited Jamaican low-cost housing developments while there. It is likely that the Renaissance arrangements were discussed at that time. Mrs Coleby-Davis yesterday said the financing structure was approved by the Ministry of Finance. It is unclear, though, whether any competitive tendering took place for Renaissance or any of the other government low-cost housing initiatives entered into since the Davis administration took office, such as the arrangement for Pinecrest with Arawak Homes. The minister yesterday said “interest rates of other financial entities were reviewed to ensure value for money on behalf of the Bahamian people” with regard to Renaissance’s financing. She added that the Housing Act stipulates that the minister can act “as corporation sole”

with respect to financing housing developments - a position challenged by Mr Thompson. He asserted that the recently-passed Public Debt Management Act makes the minister of finance the “sole borrowing agent” for the Government, and this authority cannot be delegated. It also requires that borrowed monies go into the Consolidated Fund, Mr Thompson argued, with the Act superseding all existing legislation. As a result, he questioned whether the $20m funding for Renaissance can stand up in law. “Can the Government confirm the legal authority to borrow $20m and not pay the funds into the Consolidated Fund?” Mr Thompson asked. His questions were raised following a House of Assembly row over transparency, with Chester Cooper, deputy prime minister, asserting that the Minnis administration left 269 unanswered written parliamentary questions when it was voted out of office in September 2021. Michael Pintard, the Opposition’s leader, shot back by saying he had answered all such questions raised over areas under his ministerial control. He then countered by asking why the Government had not published any contracts it has entered into since taking office, and accused it of evading questions on why it is breaching laws including the Public Procurement Act, Public Financial Management Act and Fiscal Responsibility Act.

THE TRIBUNE

GIVE UP PENSION ‘BARGAIN’ TO SAVE FUTURE GENERATIONS FROM PAGE B1 endangered by the chronic underfunding. Disclosing that just 6.05 percent of that 9.8 percent goes to fund long-term pension payouts, which currently amount to a collective $25m per month to 44,000 beneficiaries, the report said: “It is impossible to expect that the contribution rate for the pension branch can stay as low as it is at present. “A contribution rate of less than 7 percent to obtain the possibility of receiving a pension equal to 60 percent of the last five best salaries at age 65 is a bargain - a bargain that future generations will have to pay if the current generation of contributors do not increase the contribution rate.” While other reform options involving adjusting the pension accrual rate; raising the retirement age from 65 years to 67; and government funding of assistance benefits, the ILO’s actuarial report warned that a contribution rate hike cannot be escaped given that NIB’s $1.5bn reserve fund is projected to be exhausted in 2028, which is just six years away. “The analysis and tests conducted.... show that the reform options considered cannot prevent an immediate increase of the contribution rate to avert the exhaustion of the reserve by 2028,” the study said. “It is worth noting that the sooner the increase in contribution rates takes place, the better it is for future generations. “If the increase is accompanied by modifications in the investment policy to better reflect long-term objectives, this will also be beneficial for future generations.” The last two paragraphs, though, directly contradict the position taken by the Prime Minister who has publicly stated he will not impose a contribution rate increase at this time to give businesses and households more time to recover from COVID-19’s economic devastation. Philip Davis QC has also said the Government is

looking at alternative, as yet unspecified reform options, having described an NIB contribution rate increase as akin to raising taxes in terms of being a “lazy way” out to solve the country’s problems. However, in stark contrast, the actuarial report is warning that he has no choice and cannot afford to postpone the inevitable any longer. It added: “The required contribution rate to pay all expenditures of all branches during the next 60 years is 22.55 percent. Higher unemployment benefits paid in 2020 due to the severe contraction of GDP because of the COVID-19 pandemic increases the required contribution rate to 23.05 percent from 2019 to 2023.” That rate, the NIB actuarial report said, fall back to the long-term 22.55 percent from 2024 onwards. NIB’s reserve fund is now forecast to be exhausted one year earlier than previously projected, in 2028 as opposed to 2029, and the report recommended that the Government focus on shoring up the social security system’s short-term viability through “adequately financing” its pensions arm which represents longer-term benefits. This drove the recommendation to increase NIB’s contribution rate by two percentage points to 11.8 percent by July 1. Further contribution rate increases, to be implemented every two years through to July 1, 2036, “could restore the short and medium-term financial sustainability of the scheme”. However, the 11th actuarial report warned that the contribution rate achieved by 2036 - even if its recommendation was to be adopted - would “likely not be sufficient” to address NIB’s long-term viability. NIB’s present contribution rate is 9.8 percent, split 3.9 percent/5.9 percent between employee and employer, with the latter paying the majority. The 11th actuarial report is recommending that this rate increases by 72.4 percent, in percentage terms, in the near-term to 16.9 percent by

2029 before more than doubling over the long-term. Myles Laroda, minister of state in the Prime Minister’s Office with responsibility for NIB, yesterday warned that demographics are also working against the social security scheme’s solvency with persons living longer and birth rates falling. This means there will be an ever-expanding pool of NIB beneficiaries seeking pension payouts while the number of workers able to support this via their contributions is decreasing in relative terms. The minister said the total fertility rate, as represented by the number of children born to women aged between 16 and 49, had decreased from 1.9 children per woman in 2010 to 1.43 children in 2019. Post-65 years-old life expectancy, meanwhile, had risen over that period from 16.5 to 20.5 years for men, and from 18.8 years to 22.7 years for women.

Acknowledging that NIB is currently involved in a “disinvestment” policy, as it is having to liquidate investments to pay benefits given insufficient contribution income to cover this, Mr Laroda said one reform option would involve the Government providing a $14m annual grant to cover “assistance” benefits paid to some 4,000 persons. These currently represent 6 percent of the NIB pension branch’s expenditure. With NIB projected to continue running substantial annual deficits, Mr Laroda said: “Immediate action is needed to restore shortterm sustainability. The most effective mechanism is to gradually increase the contribution rate. Other reforms will not have the same impact on short-term sustainability.” Larry Gibson, chief operating officer of CG Atlantic Pensions, who has long advocated for comprehensive pension and social security reform in The

BAHAMASAIR EMPLOYEES PROVIDENT FUND - NOTICE TO MEMBERS OF A VIRTUAL AGM The safety of our directors, members and staff is our utmost priority Therefore, in light of the current restrictions on public gatherings as a result of the Covid-19 global pandemic, NOTICE IS HEREBY GIVEN THAT The Annual General Meeting of Bahamasair Employees Provident Fund will be held virtually, on Wednesday, August 10, 2022 at 6:00 p.m. Members can log into our website at www.bahamasairemployeesprovidentfund.com for instructions on how they can register The Company’s audited financial statement/AGM minutes will be available on the website as of July 31, 2022 All members are urged to attend as important matters will be discussed

Thursday, July 14, 2022, PAGE 7 Bahamas, yesterday told Tribune Business that “if this is not a clarion call to action, then what is” after being informed of the numbers in the 11th actuarial report. “This is the first time you are really hearing what the numbers are, an update on the numbers, but it’s no surprise,” he said. “This is what I would have thought all along. Hopefully this will get some attention now and you’re going to have adjustments.

“Really, you’re going to have to look at eligibility, you’re going to have to look at contribution rates, because 22 percent is not sustainable at all on top of all the other taxes you pay. We’ve got to look at the cost of operating NIB.... We knew that this was going to come home. We knew that there was going to be a day of reckoning. It’s what people have been saying for the longest.”

PAGE 8, Thursday, July 14, 2022

THE TRIBUNE

DEVELOPMENT BANK AIDED BY $20M NIB BOND SWITCH FROM PAGE B1

to be hugely negative. However, the episode again highlights how the Government always seeks to adjust NIB’s investments when other financially troubled public sector entities need rescuing. NIB also appears to have financed, via an outstanding $1.168m loan, the purchase of the BDB’s new head office on Robinson Road. The loan facility is set to be fully repaid by September 2029 and, in the meantime, the Government via Bahamian taxpayers paid all the $1.759m in principal and interest due on the bank’s bonds in 2020. Elsewhere, the BDB’s auditors, BDO Bahamas, while not qualifying the financial statements or raising the “going concern”

question, emphasised that the lender continues to rely on taxpayer subsidies for its existence. “The bank’s total liabilities exceeded total assets by $13.629m, and it has an accumulated deficit of $68.684m as at December 31, 2020,” BDO Bahamas said. “However, the directors are satisfied that the bank is currently a going concern and that the preparation of these accounts on that basis is appropriate since the bank has been receiving financing from the Government of the Bahamas. The bank will continue to rely on the Government’s support in the foreseeable future. “The bank has incurred significant operating losses in recent years and such losses are projected for the

BAHAMAS DEVELOPMENT BANK (BDB) future. The bank is dependent on funding from the Government and it is anticipated that such funding, via

the Government’s subsidy, will continue to be made available at a level sufficient

to allow the bank to maintain its operations.” The BDB’s 2020 financial statements reveal that both

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its solvency deficiency and accumulated deficit rose by almost $1.2m year-overyear, the size of its annual loss, although this represented a near 76 percent reduction on the $4.95m worth of ‘red ink’ incurred in 2019. However, 2020’s loss would have reached $2.957m without the provision of a $1.759m government subsidy, which was more than double the prior year’s $710,007. And just $7.67m, or 50 percent of its net $15.213m loan portfolio, was categorised as performing at year-end 2020. Some $2.395m worth of credit was categorised as “COVID affected” loans. Total assets stood at $33.318m at year-end 2020, while total liabilities were at $46.947m.

THE TRIBUNE

Thursday, July 14, 2022, PAGE 9

CHEQUE VOLUMES FALL 7.5% ANNUALLY OVER PAST DECADE FROM PAGE B1 - were made by this method in 2021 according to the Central Bank’s own annual report. “Over the review period, cheque usage remained subdued, with the exception of largevalue transactions. More specifically, the number of processed cheques declined by 7.6 percent to 1.2m, while the attendant value fell by 6.8 percent to $4.2bn, year-on-year,” the report said. This represents a steep drop from the near-2.5m cheques written in 2017 and 2018, and the estimated 2.3m passed in 2019, with the big drop-off occurring in 2020 amid the COVID19 pandemic’s lockdowns and other restrictions which forced Bahamian businesses and consumers to digital banking channels. The number of cheques written in 2020 fell by 35 percent year-over-year to between 1.3m-1.4m, and that decline - albeit at a lower rate - continued in 2021. “Ensuring the efficiency and effectiveness of the payments system has always been a key mandate of the Central Bank. Cheque elimination is in keeping with the long-term and ongoing strategy of continually upgrading and modernising the payments infrastructure,” Mr Rolle explained yesterday. “The Central Bank’s 2020 surveys on business and consumer payments practices reinforce data that the Central Bank is receiving from commercial banks that the use of cheques continue to wane as a routine payment instrument in favour of electronic alternatives. Over 80 percent of consumers indicate that they either don’t have personal cheques at all, or have them but never use them. “Similarly for business, nearly two-thirds no longer use cheques for salary payments; over 60 percent no longer use cheques for utility bills; and over 40 percent no longer use cheques to pay local suppliers. The Government has been one of the leaders in ceasing to accept most forms of cheques. With the cheque elimination strategy formally in focus, we can better ensure that convenience, financial inclusion and financial access are improved for the digital instruments which replace cheques.” And, while the Central Bank possesses no data on how often cheques are abused, Mr Rolle confirmed

they are especially prone to exploitation by fraudsters while often ‘bouncing’ due to there being insufficient funds in the purchaser’s account. “Currently, the Central Bank does not require commercial banks to report on the number of cheques ‘returned for insufficient funds’ or other deficiencies in the instrument that may prevent settlement,” the governor added. “However, it is established that cheques are very susceptible to fraud. This explains why acceptance by both businesses and the Bahamian public sector are on the decline. The direct, digital means of making payments allow individuals and businesses to exercise more real-time control over their funds, and to deploy safeguards that better protect themselves from fraud. “Even here, though, the education of users is important, and this is a critical component of our approach to encourage users to adopt digital payments.” The Central Bank, meanwhile, has issued a revised tender seeking proposals to conduct a public education campaign on check elimination after this newspaper warned language in the original version could be interpreted as seeking to stifle, or muzzle, dissent and opposing voices. The original version stated: “The parties concerned wish to move ahead with the elimination of this instrument in an effort to improve the efficiency and effectiveness of the domestic payments sector, and to respond to the technological advancement of other payment instruments.

“However, initial anecdotal feedback has indicated a preference by some stakeholders for the retention of the instrument, whether out of nostalgia, fear of change or unfamiliarity with evolving payment technologies. The parties concerned seek to mute these objections and implement a strategy that would facilitate the cheque elimination project with minimal negative public feedback.” The latter paragraph has now been changed to eliminate the word “mute”. It reads: “However, initial anecdotal feedback has indicated a preference by some stakeholders for the retention of the instrument, whether out of nostalgia, fear of change or unfamiliarity with evolving payment technologies. The parties concerned seek to address these objections and implement a strategy that would facilitate the cheque elimination project with minimal negative public feedback.” Mr Rolle said of the public education campaign: “To be clear, the RFP has been developed as a means of identifying a public relations firm that would serve to advise the stakeholders on the most effective means of reaching the entire population. The RFP reflected the requirement that the campaign must be both educational and persuasive in addressing the needs and concerns of even those members of the public most hesitant to change. “This is a public education campaign to address concerns, partial understandings and unease that may on the surface present themselves as opposition to change. In so doing our

intention is to get the public to understand how that payments system, as it is being transformed, will not be geared to disadvantage users. “Anecdotally, individuals have expressed concerns about the cost of payments transactions, the speed of settlement and reconciliation frustration for payments that conclude through electronic transfers. The Bahamian education campaign will address how the payments system is being transformed

to alleviate such concerns,” the governor continued. “In addition, it will inform the public of the transformation that has already happened within the ACH to improve the speed, ease and traceability of electronic transfers. Over the summer months, all of the commercial banks are transitioning to the new payments messaging format that has been adopted by the ACH. The format allows for more concise information to be provided

on who is transmitting the payment. “The commercial banks have a separate education campaign that is being developed around this upgrade to encourage users to make more electronic transfers as a substitute for in-person and cheque payments..... The public education campaign to focus on cheques is just beginning. However, it is not taking place in isolation of the overall Bahamas’ strategy of payment system modernisation that addresses efficiency, financial inclusions and financial literacy.”

EMERA INCORPORATED (“Emera”)

Notice to Holders of Depositary Receipts

DIVIDEND NOTICE A dividend of CAD $0.165625 per Emera depositary receipt (CAD $0.6625 per common share of Emera) will be payable on and after August 15, 2022 to depositary receipt holders of record as at August 2, 2022. Dividends will be subject to applicable withholding tax.

PUBLIC HOSPITALS AUTHORITY ADVERTISEMENT VACANCY NETWORK ADMINISTRATOR II GRAND BAHAMA The Public Hospitals Authority (PHA) invites applications from suitably qualified persons for the post of Network Administrator III in the Information Communication & Technology Unit (ICT), Grand Bahama. JOB SUMMARY: The Network Administrator II is responsible for the daily operations and maintenance of the network equipment including operating system, configurations, and utilities; provides support for the daily functioning and ongoing management of all related components; directs involvement in analyzing the business requirements and design and implementation of an infrastructure for business solutions; assists with projects within the Unit.

KEY ACCOUNTABILITY FOR THIS ROLE INCLUDE BUT ARE NOT LIMITED TO THE FOLLOWING: • • • •

• • • • • • • •

Manages different network topologies and multiple platforms; Manages and supports all client access environments, including installation, maintenance, and upgrades; Installs, maintains, and troubleshoots Local Area Network (LAN), Wide Area Network (WAN) equipment including CISCO routers, switches and wireless infrastructure; Employs security administration which includes planning, implementing, and enforcing security policy to ensure protection of data and shared network resources; configure, implement, and maintain host security (including passwords, file permissions and file security, maintaining firewalls, deploying authentication systems, or applying cryptography to network applications); Provides technical leadership and/or supervise other technical staff; Assists in designing and implementing local and wide area networks; Assists with policy development and implementation including disaster recovery plan and backups; Creates and maintains user group profiles and accounts; configures network file systems; Configures and maintains TCP/IP networks, routers, and terminal servers; Resolves and recovers crashed systems; ensures regular software updates and anti-virus protection; performs and monitors backup procedures and recovery of data; Monitors and controls resource usage; Provides helpdesk support to end users.

EDUCATION/EXPERIENCE: • • •

Bachelor’s Degree in computer science, Information Technology or equivalent; Certification in Microsoft Certified System Engineer (MCSE) or Microsoft Certified System Administrator (MCSA) or CNE Five (5) years’ Experience in Information Technology and network environment

COMPETENCY REQUIREMENTS: • • •

Must be flexible to work off hours support and respond to ad-hoc support requests; Experience with Linux/Unix is a plus; Experience with troubleshooting Microsoft Windows and Active Directory is a plus;

The Network Administrator II, reports to the Senior Information Communication Technology (ICT) lead in Grand Bahama.

Letter of application and curriculum vitae should be submitted to the Director of Human Resources, Corporate Office, Public Hospitals Authority, Third and West Terraces, Centreville; or email to jobs@phabahamas.org no later than 20th July 2022.

PAGE 12, Thursday, July 14, 2022

THE TRIBUNE

NETFLIX TO RELY ON MICROSOFT FOR ITS AD-BACKED VIDEO SERVICE By MICHAEL LIEDTKE AP Technology Writer SAN FRANCISCO (AP) — Netflix has picked Microsoft to help deliver the commercials in a cheaper version of its video streaming service expected to launch later this year with a pledge to minimize the intrusions into personal privacy that often accompany digital ads.

The alliance announced Wednesday marks a major step toward Netflix’s first foray into advertising after steadfastly refusing to include commercials in its video streaming service since its inception 15 years ago. Netflix announced it would abandon its resistance to ads three months ago after disclosing it had lost 200,000 subscribers during the first three months of the

NOTICE

Ultimate Third Ltd. (In Voluntary Liquidation)

Notice is hereby given that, in accordance with Section 138(4) of the International Business Companies Act, (no. 45 of 2000), Ultimate Third Ltd. (the “Company”) is in Dissolution. The date of commencement of the Dissolution is 7th day of July, 2022. Jonell Rolle is the Liquidator and can be contacted at Ocean Centre, Montagu Foreshore, East Bay Street, Nassau, New Providence, The Bahamas. All persons having claims against the above-named Company are required to send their names, addressed and particulars of their debts or claims to the Liquidator before the 8th day of August, 2022.

year amid stiffer competition and rising inflation that has pressured household budgets, causing management to realize the time had come for a less expensive option. Netflix has warned it will likely report even larger subscriber losses for the April-June period, increasing the urgency to roll out a cheaper version of its service backed by ads to help reverse customer erosion. That decline has contributed to a 70% decline in its stock price so far this year, wiped out in about $190 billion in shareholder wealth and triggered hundreds of layoffs. The Los Gatos, California, company is scheduled to release its April-June numbers on July 19, but still hasn’t specified when its adsupported option will be available except it will roll out before 2023. Netflix’s announcement about the Microsoft partnership also omitted a crucial piece of information: the anticipated price of the ad-supported option. “It’s very early days and we have much to work through,” Greg Peters, Netflix’s chief operating officer, said in a post that also highlighted Microsoft’s “strong privacy protections.” Landing the ad deal with a video streaming service that

THIS photo shows the company logo and view of Netflix headquarters in Los Gatos, Calif., Jan. 29, 2010. Netflix has picked Microsoft help deliver the commercials in a cheaper version of its video streaming service expected to launch later this year with a pledge to minimize the intrusions into personal privacy that often accompany digital ads. The alliance announced Wednesday, July 13, 2022, marks a major step toward Netflix’s first foray into advertising after staying commercial-free for 15 years. Photo:Marcio Jose Sanchez/AP boasts more than 220 million subscribers represents a major coup for Microsoft, which has been engaged in a long-running and often acrimonious battle for the past 20 years with Google, the dominant force in digital advertising. “This deal gives Microsoft something its growing ad business has lacked — quality streaming video inventory that has potential to scale” said Insider Intelligence analyst Ross Benes. Mikhail Parakhin, Microsoft’s president of web experiences, said the Redmond, Washington, company is “thrilled” with

Netflix’s choice in a post that also underscored the company’s commitment to privacy. While Microsoft still makes software that powers most of the world’s personal computers, Google has become increasingly powerful through its dominant search engine, ubiquitous Android software for smartphones and other popular digital services that last year generated more than $200 billion in ad revenue — far more than any other marketing network. But Google ad sales depend heavily on the personal information that its

mostly free services collect about their billions of worldwide users, a form of surveillance that Netflix evidently wants to avoid with the commercial interruptions in its video service to lessen the chances of alienating subscribers. Google also owns YouTube’s video site, which already competes against Netflix for people’s attention and will soon be an advertising rival, too. Microsoft also may have had another factor working in its favor. Netflix Inc.’s co-founder and co-CEO, Reed Hastings, served on Microsoft Corp.’s board of directors from 2007 to 2012.

THE TRIBUNE

Thursday, July 14, 2022, PAGE 13

Panasonic selects Kansas for vehicle battery mega-factory

By JOHN HANNA Associated Press TOPEKA, Kan. (AP) — Japan’s Panasonic Corp. selected Kansas as the location for a multibillion-dollar mega-factory to produce electric vehicle batteries for Tesla and other carmakers, Gov. Laura Kelly announced Wednesday. The decision comes five months after the Democratic governor and Republican-controlled Legislature rushed to approve a taxpayer-funded incentive package of as much as $1 billion, the state’s largest ever, to attract the company and the promised “thousands of jobs,” even though most of them didn’t know what company was in play. Kelly said Wednesday that the actual incentives will total $829 million over 10 years.

The plant will be located in De Soto, Kansas, a town with about 6,000 people and 30 miles (48.28 kilometers) southwest of Kansas City, Missouri. “People across the country are looking at Kansas as a leader in economic development,” Kelly told a gathering of about 250 state officials and business leaders in downtown Topeka Wednesday. Japanese broadcaster NHK reported this year that the company was looking to build the factory in Kansas or Oklahoma, close to Texas, where Tesla is building an electric-vehicle plant. The two companies jointly operate a battery plant in Nevada. Kelly’s administration said the facility it was pursuing would be the largest economic development project in Kansas history. They said the company

would employ 4,000 people and that other businesses supplying or supporting it would add several thousand more jobs. They said the company would pay an average of $50,000, which would far exceed Kansas’ median income for individuals of less than $32,000. Kelly pushed for the permission to offer tax credits, payroll subsidies and training funds to lure what her administration said was a $4 billion project that at least one other state was also pursuing. The measure requires the state to cut its corporate tax rates by half a percentage point for every big deal closed so that all businesses benefit. That would save companies roughly $100 million a year and drop the state’s top rate to 6% from 7% if two deals close. Backers of the measure argued that Kansas has

PEOPLE walk by the Panasonic booth during CES International, on Jan. 9, 2018, in Las Vegas. Japan’s Panasonic Corp. selected Kansas as the location for a multibillion-dollar mega-factory to produce electric vehicle batteries for Tesla and other carmakers, Gov. Laura Kelly announced Wednesday, July 13, 2022. Photo:John Locher/AP

lost out on other large projects because it couldn’t offer generous enough incentives. Oklahoma’s Republican-controlled Legislature approved an incentive package this year to offer rebates of up to nearly $700 million in state funds if Panasonic reached specific benchmarks, including at least a $4.5 billion capital expenditure and the creation of at least 4,000 jobs during the project’s first four years.

State officials say that money could be returned to the general fund or used to lure another major project. Ohio recently offered Intel Corp. incentives worth roughly $2 billion to secure a new $20 billion chipmaking factory. Michigan lawmakers in December approved $1 billion in incentives, twothirds of it for General Motors for plants to assemble batteries for electric vehicles.

Electric vehicle maker Canoo has announced plans to open a factory in northeastern Oklahoma next year that is expected to create 2,000 jobs. But Wisconsin scaled back incentives for electronics giant Foxconn. It was supposed to invest $10 billion there and create 13,000 jobs but the deal now is for about 1,450 jobs with an investment of $672 million by 2026.

PAGE 16, Thursday, July 14, 2022

THE TRIBUNE

MARKET REPORT

LEGAL NOTICE

NOTICE

BISX ALL SHARE INDEX: BISX LISTED & TRADED SECURITIES 52WK HI 6.70 53.00 2.47 2.61 2.60 6.10 10.05 4.15 9.90 3.65 8.25 17.50 2.65 10.75 11.25 10.85 17.40 4.00 11.00 16.50

52WK LOW 5.30 33.80 1.60 2.20 1.30 5.75 6.96 2.82 5.00 2.27 5.95 9.80 1.99 7.75 10.02 10.00 13.10 3.50 8.20 15.50

SECURITY AML Foods Limited APD Limited Benchmark Bahamas First Holdings Limited Bank of Bahamas Bahamas Property Fund Bahamas Waste Cable Bahamas Commonwealth Brewery Commonwealth Bank Colina Holdings CIBC FirstCaribbean Bank Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank (Bahamas) Limited Focol Finco J. S. Johnson

PREFERENCE SHARES 1.00

1.00

1000.00 1000.00

1.00 10.00 1.00

Bahamas First Holdings Preference Cable Bahamas Series 6 Cable Bahamas Series 9 Colina Holdings Class A Fidelity Bank Bahamas Class A Focol Class B

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00

52WK LOW 100.00 100.00

SECURITY Fidelity Bank (Note 22 Series B+) Bahamas First Holdings Limited

CHANGE

%CHANGE

YTD

YTD%

2592.91

0.21

0.01

364.67

16.37

SYMBOL AML APD BBL BFH BOB BPF BWL CAB CBB CBL CHL CIB CWCB DHS EMAB FAM FBB FCL FIN JSJ BFHP CAB6 CAB9 CHLA FBBA FCLB SYMBOL FBB22 BFHB

BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 97.33 100.00 100.67 100.43 100.34 100.23 100.00 100.00 100.98 100.00

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 96.71 94.12 100.67 100.43 100.04 100.00 89.62 89.00 90.24 90.73

MUTUAL FUNDS 52WK HI 2.52 4.69 2.22 207.86 212.41 1.74 1.84 1.83 1.03 9.37 11.83 7.54 16.64 12.84 10.77 10.00 10.43 14.89

52WK LOW 2.11 3.30 1.68 164.74 116.70 1.69 1.75 1.76 0.97 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

Bahamas Note 6.95 (2029) BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-7Y BGRS FX BGR109036 BGRS FX BGR118037 BGRS FL BGRS71024 BGRS FL BGRS75022 BGRS FL BGRS81037 BGRS FL BGRS88028 BGRS FX BGR129249 BGRS FX BGR131249 BGRS FX BGR132249 BGRS FX BGR136150

BAH29 BG0107 BG0207 BG0130 BG0230 BG0307 BG0330 BG0407 BSBGR1090368 BSBGR1180375 BSBGRS710245 BSBGRS750225 BSBGRS810375 BSBGRS880287 BSBGR1292493 BSBGR1312499 BSBGR1322498 BSBGR1361504

LAST CLOSE 6.48 39.95 2.44 2.35 2.51 6.10 9.75 3.95 9.33 3.64 8.00 16.00 2.78 10.26 11.40 10.85 17.26 3.90 10.10 15.50 1.00 1000.00 1000.00 1.00 10.00 1.00 LAST SALE 100.00 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 97.15 100.00 100.91 100.54 100.34 100.00 89.62 100.00 100.00 100.00

CLOSE 6.48 39.95 2.44 2.35 2.51 6.10 9.75 3.95 9.33 3.64 8.00 16.00 2.79 10.27 11.59 10.85 17.26 3.90 10.10 15.50 1.00 1000.00 1000.00 1.00 10.00 1.00

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

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.01 0.19 0.00 0.00 0.00 0.00 0.00

VOLUME

1,500

0.00 0.00 0.00 0.00 0.00 0.00

CLOSE 100.00 100.00

CHANGE 0.00 0.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 97.15 100.00 100.91 100.54 100.34 100.00 89.62 100.00 100.00 100.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 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 Leno Financial Conservative Fund Leno Financial Aggressive Fund Leno Financial Balanced Fund Leno Financial Global Bond Fund RF Bahamas Opportunities Fund - Secured Balanced Fund RF Bahamas Opportunities Fund - Targeted Equity Fund RF Bahamas Opportunities Fund - Prime Income Fund RF Bahamas International Investment Fund Limited - Equities Sub Fund RF Bahamas International Investment Fund Limited - High Yield Income Fund RF Bahamas International Investment Fund Limited - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

MARKET TERMS

BRENTONVILLE LIMITED

www.bisxbahamas.com

WEDNESDAY, 13 JULY 2022

(242) 323‐2330 (242) 323‐2320 EPS$ 0.239 0.932 0.000 0.140 0.070 1.760 0.369 -0.438 0.140 0.184 0.449 0.722 0.102 0.467 0.646 0.728 0.816 0.203 0.939 0.631 0.000 0.000 0.000 0.000 0.000 0.000

VOLUME

DIV$ 0.170 1.260 0.020 0.080 0.000 0.000 0.260 0.000 0.000 0.120 0.220 0.720 0.434 0.060 0.328 0.240 0.540 0.120 0.200 0.610 0.000 0.000 0.000 0.000 0.000 0.000

INTEREST Prime + 1.75% 6.25% 6.95% 4.50% 4.50% 6.25% 6.25% 4.50% 6.25% 4.25% 5.40% 5.22% 4.56% 4.43% 4.87% 4.33% 5.55% 5.60% 5.65% 5.69%

NAV 2.52 4.69 2.21 197.44 202.39 1.74 1.84 1.83 0.97 9.37 11.79 7.54 15.94 12.47 10.74 N/A 10.43 14.89

P/E 27.1 42.9 N/M 16.8 N/M N/M 26.4 -9.0 66.6 19.8 17.8 22.2 27.4 22.0 17.9 14.9 21.2 19.2 10.8 24.6 0.000 0.000 0.000 0.000 0.000 0.000

YIELD 2.62% 3.15% 0.82% 3.40% 0.00% 0.00% 2.67% 0.00% 0.00% 3.30% 2.75% 4.50% 15.56% 0.58% 2.83% 2.21% 3.13% 3.08% 1.98% 3.94%

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, BRENTONVILLE LIMITED is in dissolution as of July 5, 2022 International Liquidator Services Ltd. situated at 3 rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator. LIQUIDATOR ______________________

0.00% 0.00% 0.00% 6.25% 7.00% 6.50%

MATURITY 19-Oct-2022 30-Sep-2025 20-Nov-2029 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2022 26-Jun-2045 15-Oct-2022 3-Oct-2036 13-Oct-2037 22-Oct-2024 7-Sep-2022 26-Jul-2037 26-Jul-2028 15-Apr-2049 15-Jul-2049 15-Oct-2049 21-Apr-2050

YTD% 12 MTH% 0.99% 4.22% 0.36% 5.78% 0.67% 2.74% -2.97% -2.35% -4.72% 6.04% 1.37% 3.03% 1.19% 5.23% 1.62% 4.13% -5.25% -6.07% -0.02% 10.36% -0.33% 18.23% 0.22% 3.05% -3.89% 14.76% -1.04% -2.57% 0.81% 4.20% N/A N/A 3.00% 25.60% 7.90% 48.70%

In Voluntary Liquidation

NAV Date 31-Mar-2022 31-Mar-2022 25-Mar-2022 31-Mar-2022 31-Mar-2022 31-May-2022 31-May-2022 31-May-2022 31-May-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Mar-2021 31-Mar-2021 31-Mar-2021

LEGAL NOTICE

NOTICE DEVONCOURT FINANCE LTD. Company No. 608025 (In Voluntary Liquidation)

NOTICE is hereby given pursuant to Section 204 (1)(b) of the BVI Business Companies Act, 2004 that DEVONCOURT FINANCE LTD. is in voluntary liquidation. The voluntary liquidation commenced on 1st July 2022 and Querube C. De Nunez of MMG Tower, Ave. Paseo del Mar, Costa del Este, Panama City, Rep. of Panama been appointed as the Sole Liquidator. Dated this 06th day of July 2022 Sgd. Querube C. De Nunez Voluntary Liquidator

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 | CORALISLE 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333

PUBLIC HOSPITALS AUTHORITY ADVERTISEMENT VACANCY NETWORK ADMINISTRATOR II CORPORATE The Public Hospitals Authority (PHA) invites applications from suitably qualified persons for the post of Network Administrator III in the Information Communication & Technology Unit (ICT), Corporate Office. JOB SUMMARY The Network Administrator II is responsible for the daily operations and maintenance of the network equipment including operating system, configurations, and utilities; provides support for the daily functioning and ongoing management of all related components; directs involvement in analyzing the business requirements and design and implementation of an infrastructure for business solutions; assists with projects within the Unit.

KEY ACCOUNTABILITY FOR THIS ROLE INCLUDE BUT ARE NOT LIMITED TO THE FOLLOWING: • • • •

• • • • • • • •

EDUCATION/EXPERIENCE: • • •

COMPETENCY REQUIREMENTS: • • •

The Network Administrator II, reports to the Senior Information Communication Technology (ICT) lead in Bahamas.

PAGE 18, Thursday, July 14, 2022

THE TRIBUNE

LEGAL NOTICE NOTICE INTERNATIONAL BUSINESS COMPANIES ACT (No. 45 of 2000) In Voluntary Liquidation Notice is hereby given that, in accordance with Section 138 (4) of the International Business Companies Act, (No.45 of 2000), Salto Investment Fund Ltd. (the “Company”) is in dissolution. The date of commencement of the dissolution is13th of June, 2022. Luciane Ribeiro Moreno is the Liquidator and can be contacted at Rua Afonsa Braz, 747, AP 41D, Vila Nova Conceição, CEP 04511-011, São Paulo – SP, Brazil. All persons having claims against the abovenamed Company are required to send their names, addresses and particulars of their debts or claims to the Liquidator before 21st, of July, 2022.

Luciane Ribeiro Moreno Liquidator

THE WEATHER REPORT

5-Day Forecast

TODAY

ORLANDO

High: 93° F/34° C Low: 74° F/23° C

TAMPA

FRIDAY

SATURDAY

SUNDAY

MONDAY

A couple of showers in the morning

Partly cloudy, a couple of t‑storms

A t‑storm in spots in the afternoon

An afternoon thunder‑ storm; breezy

A t‑storm in spots in the afternoon

High: 89°

Low: 77°

High: 88° Low: 79°

High: 89° Low: 80°

High: 90° Low: 80°

High: 91° Low: 80°

AccuWeather RealFeel

98° F

80° F

97°-81° F

96°-84° F

100°-88° F

101°-87° F

The exclusive AccuWeather RealFeel Temperature® is an index that combines the effects of temperature, wind, humidity, sunshine intensity, cloudiness, precipitation, pressure and elevation on the human body—everything that affects how warm or cold a person feels. Temperatures reflect the high and the low for the day.

almanac

ABACO

High: 89° F/32° C Low: 78° F/26° C

8‑16 knots

High: 92° F/33° C Low: 78° F/26° C

8‑16 knots

FT. LAUDERDALE

FREEPORT

High: 90° F/32° C Low: 80° F/27° C

E S

WEST PALM BEACH

uV inDex toDay

TONIGHT

High: 90° F/32° C Low: 78° F/26° C

| Go to AccuWeather.com

High: 90° F/32° C Low: 78° F/26° C

MIAMI

High: 91° F/33° C Low: 79° F/26° C

6‑12 knots

KEY WEST

High: 89° F/32° C Low: 82° F/28° C

ELEUTHERA

NASSAU

High: 89° F/32° C Low: 77° F/26° C

High: 88° F/31° C Low: 76° F/24° C

tiDes For nassau High

Ht.(ft.)

Low

Ht.(ft.)

Today

8:48 a.m. 9:21 p.m.

2.8 3.8

2:58 a.m. ‑0.2 2:55 p.m. ‑0.5

Friday

9:43 a.m. 10:13 p.m.

2.9 3.7

3:51 a.m. ‑0.3 3:51 p.m. ‑0.4

Saturday

10:39 a.m. 11:05 p.m.

3.0 3.5

4:42 a.m. ‑0.2 4:47 p.m. ‑0.2

Sunday

11:35 a.m. 11:57 p.m.

3.0 3.3

5:33 a.m. ‑0.2 5:44 p.m. 0.0

Monday

12:32 p.m. ‑‑‑‑‑

3.0 ‑‑‑‑‑

6:24 a.m. 6:43 p.m.

0.0 0.3

Tuesday

12:50 a.m. 1:29 p.m.

3.0 2.9

7:15 a.m. 7:43 p.m.

0.1 0.6

Wednesday 1:43 a.m. 2:28 p.m.

2.8 2.9

8:06 a.m. 8:46 p.m.

0.3 0.8

sun anD moon Sunrise Sunset

6:29 a.m. 8:02 p.m.

Moonrise Moonset

9:22 p.m. 7:12 a.m.

Last

New

First

Full

Jul. 20

Jul. 28

Aug. 5

Aug. 11

CAT ISLAND

High: 87° F/31° C Low: 78° F/26° C

8‑16 knots

10‑20 knots Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

Statistics are for Nassau through 2 p.m. yesterday Temperature High ................................................... 88° F/31° C Low .................................................... 79° F/26° C Normal high ....................................... 88° F/31° C Normal low ........................................ 75° F/24° C Last year’s high ................................. 88° F/31° C Last year’s low ................................... 81° F/27° C Precipitation As of 2 p.m. yesterday .................................. trace Year to date ............................................... 30.57” Normal year to date ................................... 16.34”

The higher the AccuWeather UV IndexTM number, the greater the need for eye and skin protection.

ANDROS

SAN SALVADOR

GREAT EXUMA

High: 87° F/31° C Low: 78° F/26° C

High: 86° F/30° C Low: 78° F/26° C

High: 88° F/31° C Low: 77° F/25° C

W S

LONG ISLAND

tracking map

High: 86° F/30° C Low: 76° F/24° C

10‑20 knots

MAYAGUANA High: 87° F/31° C Low: 80° F/27° C

Shown is today’s weather. Temperatures

CROOKED ISLAND / ACKLINS

are today’s highs and tonight’s lows.

RAGGED ISLAND High: 86° F/30° C Low: 77° F/25° C

High: 87° F/31° C Low: 78° F/26° C

GREAT INAGUA High: 88° F/31° C Low: 79° F/26° C

10‑20 knots

marine Forecast ABACO ANDROS CAT ISLAND CROOKED ISLAND ELEUTHERA FREEPORT GREAT EXUMA GREAT INAGUA LONG ISLAND MAYAGUANA NASSAU RAGGED ISLAND SAN SALVADOR

Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday:

WINDS SE at 8‑16 Knots ESE at 8‑16 Knots SE at 8‑16 Knots ESE at 6‑12 Knots E at 10‑20 Knots ESE at 8‑16 Knots E at 10‑20 Knots ESE at 10‑20 Knots ESE at 10‑20 Knots ESE at 8‑16 Knots SSE at 8‑16 Knots ESE at 6‑12 Knots SE at 10‑20 Knots ESE at 8‑16 Knots E at 10‑20 Knots E at 10‑20 Knots E at 10‑20 Knots ESE at 10‑20 Knots E at 8‑16 Knots ESE at 10‑20 Knots ESE at 8‑16 Knots ESE at 7‑14 Knots E at 10‑20 Knots ESE at 10‑20 Knots E at 10‑20 Knots SE at 8‑16 Knots

WAVES 2‑4 Feet 3‑5 Feet 1‑2 Feet 0‑1 Feet 3‑5 Feet 3‑5 Feet 2‑4 Feet 3‑5 Feet 3‑5 Feet 3‑5 Feet 1‑2 Feet 1‑2 Feet 1‑2 Feet 1‑2 Feet 2‑4 Feet 2‑4 Feet 2‑4 Feet 2‑4 Feet 3‑6 Feet 4‑7 Feet 1‑3 Feet 1‑2 Feet 3‑5 Feet 2‑4 Feet 1‑3 Feet 1‑3 Feet

VISIBILITY 10 Miles 7 Miles 7 Miles 6 Miles 5 Miles 7 Miles 7 Miles 9 Miles 7 Miles 10 Miles 10 Miles 8 Miles 5 Miles 4 Miles 7 Miles 9 Miles 6 Miles 7 Miles 7 Miles 9 Miles 6 Miles 7 Miles 6 Miles 7 Miles 6 Miles 7 Miles

WATER TEMPS. 84° F 84° F 86° F 85° F 84° F 83° F 83° F 83° F 84° F 83° F 88° F 85° F 84° F 84° F 83° F 83° F 84° F 83° F 83° F 83° F 84° F 84° F 84° F 84° F 84° F 84° F

PAGE 20, Thursday, July 14, 2022

STOCKS END LOWER AS WALL STREET BRACES FOR BIG HIKE IN RATES By STAN CHOE AND ALEX VEIGA AP Business Writers

STOCKS capped another shaky day on Wall Street with more losses Wednesday, after a highly

anticipated report on inflation turned out to be even worse than expected.

The S&P 500 ended 0.4% lower, its fourth consecutive drop, after tumbling as much as 1.6% earlier. The

THE TRIBUNE Dow Jones Industrial Average fell 0.7%, while the Nasdaq composite dropped 0.2%, erasing nearly all of an early 2.1% loss. Markets took a few U-turns through the morning, as has become the norm on Wall Street this tumultuous year. They were following the lead of Treasury yields in the bond market, which initially surged on expectations that Federal Reserve policymakers will hike interest rates drastically to slow the nation’s skyrocketing inflation. “They seem to have a green light to raise interest rates with the labor market still in very good shape and inflation remaining well above where they want it to be,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management. Inflation and the Federal Reserve’s response to it have been at the center of Wall Street’s sell off this year. Wednesday’s discouraging data showed that inflation is not only still very high, it’s getting worse. “For four or five months now, we’ve been counting on peak inflation and we’ve been disappointed consistently,” said John Lynch, chief investment officer at Comerica Wealth Management. Prices at the consumer level were 9.1% higher last month than a year earlier,

accelerating from May’s 8.6% inflation level. That was also worse than economists’ expectations for 8.8%. The Fed’s main tool to combat inflation is to raise short-term interest rates, which it has already done three times this year. After Wednesday’s inflation report, traders now see it as a lock that the Federal Reserve will hike its key interest rate by at least three-quarters of a percentage point at its next meeting in two weeks. That would match its most recent increase, which was the biggest since 1994. A growing number of traders are even suggesting the Fed will go for a monster hike of a full percentage point. The latest inflation data “certainly creates more certainty that the Fed is going to be pretty aggressive in the July meeting,” Hainlin said. Traders are betting on a 67.8% chance of a full-point hike, up from zero a month ago, according to CME Group. The risk is that rate hikes are a notoriously blunt tool, one that takes a long time for the full effects to be felt. If the Fed ends up too aggressive with them, it could cause a recession. In the meantime, higher rates push down on prices of all kinds of investments.

PEDESTRIANS walk past the New York Stock Exchange on Friday, July 8, 2022, in New York. Stocks are falling on Wall Street on Wednesday, July 13, 2022, after a highly anticipated report on inflation turned out to be even worse than expected. Photo:John Minchillo/AP