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business@tribunemedia.net

TUESDAY, JULY 17, 2018

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Workers ‘breaking down door’ to make exit By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE union representing Water and Sewerage Corporation (WSC) line staff yesterday welcomed the planned Voluntary Separation Packages (VSEPs), as workers will be “breaking down the door to get out of here”. Dwayne Woods, the Bahamas Utilities Services and Allied Workers Union (BUSAWU) president, told Tribune Business he was only informed of the VSEP proposal unveiled yesterday as a result of this newspaper’s inquiries. The corporation’s chairman, Adrian Gibson, said the VSEP packages are part of an effort to “right size” the state-owned utility provider. He said the corporation was aiming reduce its staff count by 80-120 persons, but told Tribune Business the final range would likely be between 50-100, emphasising that employees will not be forced to leave. Mr Woods told Tribune Business that during a meeting with Mr Gibson yesterday, he inquired about the VSEP proposal. “What he said to me was

SEE PAGE 3

WSC chair still eyes privatisation By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE Water and Sewerage Corporation’s chairman yesterday reiterated “futuristic” plans to recommend that the utility be privatised or sold to Bahamian investors via an initial public offering (IPO). Emphasising that such ideas were for the longterm, Adrian Gibson told Tribune Business: “It is my intention to recommend to the government that we, at some time in the future, divest ourselves of ownership in whole or at least in part, similar to the Bahamas Telecommunications Company (BTC). “Or maybe we issue an IPO or something where persons buy-in. It assists the Corporation with fundraising and takes some load off the government by divesting a state-owned corporation. These are futuristic ideas.” The then-Ingraham administration sold a majority 51 percent equity stake in BTC to Cable & Wireless Communications (CWC) in a $206m deal in

SEE PAGE 3

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Miller demands $10m from the govt and BOB By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

ESLIE Miller yesterday accused Bank of The Bahamas and the government of an “unlawful conspiracy” to seize his shopping plaza, and demanded nearly $10m in damages from each. The former Cabinet minister and MP, in a legal action filed with the Supreme Court, claimed both the BISXlisted bank and the former Christie administration reneged on agreements to fund multi-million dollar renovations to his family’s Summerwinds Plaza so it could be rented to

DAMIAN GOMEZ

government ministries. Besides claiming damages for the loss of multi-million

dollar rental income through these purported contractual breaches, Mr

THE Water & Sewerage Corporation (WSC) is “pursuing” its first price hike in nearly 20 years in a bid to narrow a profitability gap where it covers barely two-thirds of its operating costs. Adrian Gibson, pictured, the state-owned utility’s executive chairman, yesterday told Tribune Business it was developing a proposal on the planned increase in consumer tariffs that will be submitted to the Minnis Cabinet for its approval. The Long Island MP did not comment on the timing, or likely magnitude, of the price increase for WSC customers, other than to say the Corporation

* CHAIR: TARIFF HIKE ‘LONG OVERDUE’ * PROPOSAL BEING DRAFTED FOR CABINET * WSC COVERS JUST 68% OF OPERATING COSTS is “definitely” moving to reduce the annual burden it imposes on Bahamian taxpayers to finance its multi-million dollar losses through budget subsidies. Mr Gibson described a tariff hike as “long overdue”, the last increase permitted by government having occurred in 1999, and critical to preserving the gains delivered by WSC’s contractor in beating

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

targets to reduce water losses from the Corporation’s distribution system. He added that the WSC would seek to soften the blow for consumers by improving its service and operational efficiencies, thereby minimising the extent of any price increase. “We are definitely

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Miller also accused the Minnis administration of “malice” and victimisation because he is a member of its Progressive Liberal Party (PLP) opposition. He alleged that it deliberately refused to follow through on the leases signed by its predecessor knowing it “would trigger a default” on $25-$28m worth of loans owed to Bank of The Bahamas (BOB), thereby paving

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Water Corp ‘pursues’ first price increase in 20 years By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Bahamas urged to ‘tackle’ low scores in integrity survey ANTI-CORRUPTION campaigners yesterday urged The Bahamas “to tackle” Transparency International’s zero ratings for this nation’s freedom of information, procurement “integrity” and political transparency. Lemarque Campbell, of Citizens for a Better Bahamas, told Tribune Business that improvements in these areas were vital to building “greater trust and confidence in government”, and to boost the country’s “ease of doing business” standing. He spoke out after Transparency International’s “country scorecard” for The Bahamas, representing an assessment of whether this nation’s legal and institutional anti-corruption framework meets global best practices, identified several weaknesses. Mr Campbell and Citizens for a Better Bahamas, as the local Transparency International contact, provided the research and data upon which the Transparency International findings are based. Revealing that The Bahamas is the “first nation in the Caribbean” to be subjected to the “scorecard”, which is being applied to 40 countries worldwide, Mr Campbell said the effort

* Claims ‘unlawful conspiracy’ to seize plaza * Slams political ‘malice’, top Finance official * Christie govt was to fund $5m upgrades * Mario’s Bowling in hands of receiver

LESLIE MILLER

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PAGE 2, Tuesday, July 17, 2018

THE TRIBUNE

AMERICAN AIRLINES ADDS NASSAU FLIGHT AMERICAN Airlines began taking bookings at the weekend for the return of its year-round service between New York’s LaGuardia Airport and Nassau, which will resume on December 22. The carrier, in a statement, said it will operate a Saturday-only flight to Lynden Pindling International Airport (LPIA) with an Airbus A319 aircraft. This plane will feature eight seats in

DIONISIO D’AGUILAR

First Class; 24 seats dedicated as Main Cabin Extra with more legroom and reserved overhead bin space; and 96 seats in Main Cabin. “Bringing back service to Nassau from LaGuardia airport is a big win for our customers,” said Loretta Bove, American Airlines’ managing director for LaGuardia. “This service will provide a non-stop escape from the cold this winter to these beautiful islands.”

American Airlines operates more than 275 daily flights from its New Yorkarea airports to over 80 destinations in Canada, the Caribbean, Europe, Latin America, Mexico, South America and the US. “New York City has always been a key market for The Bahamas, and we are thrilled to be able to offer New Yorkers even more options for visiting our islands with American Airlines’ service

from LaGuardia,” said Dionisio D’Aguilar, minister of tourism and aviation. “The service from New York, along with supplemental service from Charlotte, North Carolina, are a testament to the strong demand from these markets and we hope to see continued growth from these two important cities.” Bookings for the LaGuardia to Nassau route became available from July 14.

Flights will leave LaGuardia on Saturday at 7am, arriving in Nassau at 10.25am. The return flight leaves Nassau at 5.35pm on the same day, arriving in New York at 8.45pm. American Airlines’ route expansion is the latest sign of increased airlift into Nassau, driven in large part by Baha Mar’s expanded room inventory following its full opening.

Water Corp ‘pursues’ first price increase in 20 years FROM PAGE ONE pursuing the tariff increase. What’s going to happen is we are advancing to government a request, or outline, speaking to the need for a tariff increase,” Mr Gibson told Tribune Business, “and what we will do to better service and operational efficiencies. “Certainly that tariff increase is needed; it’s long overdue. We’ve not had a tariff increase since 1999. It will cause our operations to reach an optimal position, while at the same time we will streamline and make our operations more efficient. These will work in tandem to foster and create a business-like atmosphere at the Corporation.” Mr Gibson said the tariff increase was part of a broader strategy to bring WSC in line with international best practices and “first world” water

utilities, which all priced water supply at a level that ensured profitability. The planned hike is another example highlighting how the “good times” long enjoyed by many Bahamians, where they obtained cut-price government services below the actual cost of provision, are ending as a result of the government’s fiscal crisis. The public treasury can no longer afford to underwrite “below cost” services given The Bahamas’ mounting $8bn national debt, and the government has already charged state-owned enterprises (SOEs) - including the WSC - with developing a three-year plan to align fees with costs. In effect, the WSC’s selling of water “below cost” has resulted in a wealth transfer from Bahamian taxpayers to the Corporation’s customers as a result of the annual $20m-plus

N O T I C E TURQUOISE GROUP LTD. ____________________________________ Pursuant to the Provisions of Section 138 (8) of the International Business Companies Act 2000 notice is hereby given that the abovenamed Company has been dissolved and struck off the Register pursuant to a Certificate of Dissolution issued by the Registrar General on the 5th day of July, 2018. Delano Aranha Liquidator of TURQUOISE GROUP LTD.

subsidies required to keep it afloat. And the Inter-American Development Bank (IDB), in an evaluation of its $81m loan to upgrade New Providence’s water supply system, warned that the benefits of reducing losses from WSC’s system - known as non-revenue water (NRW) - could be squandered without imposing a price increase on Bahamian consumers. “With roughly one year remaining to disburse [loan funds], the decrease of NRW has exceeded its expected targets,” the IDB report said. “However, the WSC’s operating cost recovery and government subsidy targets have not been achieved as expected, even though WSC operational costs have improved in recent years. “WSC’s operating cost recovery, which is currently around 68 percent, was expected to improve

from 64 percent in 2008 to 84 percent at the end of the project. At the same time, annual government transfers to the WSC, which were expected to decrease from $24m to zero, remained at $24m in 2015 (despite a reduction compared to 2012-2014 levels of more than $40m).” The WSC is still due to receive a $25m subsidy this fiscal year, down from $30m in 2017-2018, for what are described in the budget as “development projects”. The IDB’s report suggested a price rise is essential to eliminating such taxpayer support. “The long-term sustainability of the results is threatened by financial, operational and institutional risks,” the multilateral lender added. Despite a considerable reduction of NRW, WSC’s financial sustainability is still limited because of its low capacity

Legal Notice

to generate sufficient revenues to cover its operational and maintenance expenses. This situation is not likely to change until an adjusted tariff policy is adopted and new legislation approved to regulate the sector. “Without a regulatory framework for the sector, people will not have incentives to stop using private wells and join WSC as their water supply company. Likewise, the improvement of WSC’s financial position will require that a new tariff structure be put in place, and possible downsizing measures adopted to increase WSC’s efficiency.” The IDB said NRW, representing water lost from the WSC’s distribution network before it reaches the end-customer, had dropped from 55 percent of total supply in 2008 to 37 percent in 2015, beating the “expected target” of 45 percent.

The bank’s report credited this to the performance-based contract signed with the WSC’s contractor, Miya, which tied pay to results. “Performance-based contracts seem to have been instrumental to achieve this objective,” the IDB said. “WSC signed a tenyear performance-based contract to reduce NRW in New Providence, which included a $24m fee to be paid only for actual NRW reduction achieved. “Given the resultsoriented nature of the contract, the incentives to reach objectives and minimise delays during implementation were correctly placed. The reduction of NRW component was the only component that did not experience major delays during project execution; in fact, its targets were exceeded.”

NOTICE

International Business Companies Act (No. 46 of 2000)

INTERNATIONAL BUSINESS COMPANIES ACT (No. 45 of 2000)

Lightning Ridge Ltd.

GENESIS MANAGEMENT LIMITED In Voluntary liquidation

Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act (No. 45 of 2000), GENESIS MANAGEMENT LIMITED, has been dissolved and struck off the Register according to the Certificate of Dissolution issued by the Registrar General on the 2nd day of July, 2018. Lauren Ramsay, No. 6 Bosham Close, Camperdown Heights P.O. Box SP 6380, Nassau, Bahamas Liquidator

NOTICE

SHIZEN LIMITED

ECO-ENERGY HOLDINGS LIMITED

Registration Number: 201249 B (In Voluntary Liquidation) Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act (No. 46 of 2000) Lightning Ridge Ltd., commenced voluntary liquidation on 6th day of July, 2018. Any person having any claim against Lightning Ridge Ltd., is required on or before the 16th day of August, 2018 to send their name, address and particulars of the debt or claim to the Liquidator of the company, or in default thereof they may have excluded from the benefit of any distribution made before such claim is approved. GSO Corporate Services Ltd., of 303 Shirley Street, Nassau, The Bahamas is the Liquidator of Lightning Ridge Ltd. GSO Corporate Services Ltd. Liquidator

Legal Notice

NOTICE INTERNATIONAL BUSINESS COMPANIES ACT (No. 45 of 2000)

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

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

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

GUARDIAN UNIVERSAL INC.

(b) The dissolution of the said company commenced on the 13th July, 2018 when the Articles of Dissolution were submitted to and registered by the Registrar General.

(c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas

“Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act (No. 45 of 2000). GUARDIAN UNIVERSAL INC., is in Dissolution.”

Dated this 17th day of July, A. D. 2018

_________________________________ Bukit Merah Limited Liquidator

NOTICE

WINDMUHLE LIMITED N O T I C E IS HEREBY GIVEN as follows: (a) WINDMUHLE 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 13th July, 2018 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said company is CST Administration (Bahamas) Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, Nassau, Bahamas Dated this 17th day of July, A. D. 2018 _________________________________ CST Administration (Bahamas) Limited Liquidator

NEO WAVE LIMITED N O T I C E IS HEREBY GIVEN as follows: (a) NEO WAVE 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 13th July, 2018 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas Dated this 17th day of July, A. D. 2018 _________________________________ Bukit Merah Limited Liquidator

In Voluntary liquidation

The date of commencement of dissolution is the 13th day of July, 2018. Diego Sepulveda, c/o P.H. Office One, 14th Floor, Office 1406, 58St., Bella Vista, Panama, Republic of Panama Liquidator

NOTICE SAPPHIRE TWENTY-NINE LIMITED N O T I C E IS HEREBY GIVEN as follows: (a) SAPPHIRE TWENTY-NINE 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 13th July, 2018 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas Dated this 17th day of July, A. D. 2018 _________________________________ Bukit Merah Limited Liquidator

THE TRIBUNE

Tuesday, July 17, 2018, PAGE 3

OUTSOURCER TO GROW FREEPORT UNIT ‘100%’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A CARIBBEAN-based outsourcer yesterday said its Freeport-based unit will “grow by an additional 100 percent” after securing a contract to serve US-based utilities. Formed in 2012, itelbpo has expanded its business process outsourcing

MR YONI EPSTEIN, founder & CEO of itelbpo.

(BPO) capabilities from its Jamaican base by establishing a growing presence in The Bahamas, Mexico and the US. Initially known as Island Outsourcers, the company moved into Freeport in 2013 as Grand Bahama’s first BPO operator when it won the contract to act as the Ministry of Tourism’s call centre. It is also understood to be

the business who Bahamasair’s reservations department has been outsourced to. itelbpo, which employs 150 persons in Freeport, specialises in handling customer queries through phone and digital services. It has 1,500 employees company-wide. “The Bahamas facility is expected to grow by an additional

DWAYNE WOODS 15 persons opting to go, and I have written them since August of last year. I would welcome it. I know members who would be breaking down the door to get out of here. “I don’t think there will be any shortage of persons looking to accept the package. Persons with 30 years or more would gladly get out of here. Although the Corporation is late in presenting their packages to the union, we look forward to partnering with them them in a tripartite arrangement.” The Water & Sewerage Management Union (WSMU) president, Ednel Rolle, told Tribune Business he was unaware of the VSEP announcement as he is currently on vacation.

Mr Gibson first revealed that VSEPs were coming in an interview with Tribune Business back in April. He stated at the time there was “no doubt” the company will have to restructure and reorganise in a bid to align its staffing and cost base with revenues and future needs. Speaking to this newspaper yesterday, Mr Gibson was unable to give precise figures for how much the VSEP packages will cost or the likely savings that will result to the WSC from the downsizing, emphasising that it was still early in the process. “I know persons will go for it,” he told Tribune Business of the voluntary separations. “What we are going to do is review all the requests and applications, and we will determine. In some cases we will ask persons to stay on. It could be quite a number of people accept it. We’re in the embryonic stages now, putting together the package.” Asked about the likely

costs and savings benefits, Mr Gibson replied: “We are working through that as we speak. Up front, we expect it will cost us a few million, maybe $1-$2m. We expect it will cost us a few dollars. But on the savings side we will save millions of dollars.” The WSC executive chairman, as with Bahamas Power & Light (BPL) and the Bahamas Telecommunications Company (BTC), indicated that he saw the VSEP exercise as an opportunity to reduce the age profile of the Corporation’s workforce and make room for younger, tech savvy and dynamic employees. “The reality is there are some areas that are overstaffed, some areas that are understaffed, and some areas where we can shift people to. The average age is 50, and we want to streamline the Corporation, make it more efficient, and recruit the best and brightest minds to the Corporation. We want to run it as a business.”

The EY audit found that the Corporation had breached global “best practice” through the former Board’s constant meddling and overturning of management decisions. With respect to the cost of that audit, Mr Gibson added: “We are still resolving the cost with Ernst & Young. We have made two interim payments already.” He said that in coming weeks the Corporation will begin an aggressive campaign to recover its $45m in accounts receivables owed by customers. “You will find that in the coming weeks as we roll out a collections team, that our team will be going from island to island, throughout New Providence to collect on

the $45m in receivables,” Mr Gibson said. He added that the corporation expects to initiate its VSEP exercise within the next few months. “We anticipate this happening in the next few months. We have been looking at possible packages and, once we put them together, we will speak to the minister and follow the process. We anticipate that happening in the quickest possible time. “In terms of the VSEP packages we are not going to force anyone out, but we want to encourage folks that if they want to leave we are willing to sweeten the pot because we recognise that in order for the Corporation to

succeed it has to be streamlined, it has to get younger and obviously to recruit persons who are more qualified. “We want to attract some of the best and brightest minds to the Corporation, and that is not saying we don’t currently have great people here. I’m a business-minded person and we need to run the Corporation like a business. We have to dispense with the Corporation mindset and have a corporate business-oriented mindset.”

WORKERS ‘BREAKING DOWN DOOR’ TO MAKE EXIT FROM PAGE ONE that the Corporation is in an embryonic state of preparing VSEP packages for persons who want to voluntarily separate from the Corporation,” the union chief added. “He said that it may mirror that of what BEC put forward. I want to make it clear that nothing has been submitted to the union, but we stand ready, willing and able to negotiate in good faith with the Corporation on the voluntary separation packages. I would like to highlight the word voluntary, meaning that it would only be for persons opting to separate and there would be no forced separations.” Mr Woods added: “It hasn’t come yet, and whenever it comes I already have

WSC chair still eyes privatisation FROM PAGE ONE 2011. CWC has remained BTC’s controlling shareholder despite the Christie administration adjusting the agreement’s commercial terms, and its own takeover by Liberty Global and split-off into the latter’s Latin American business. No further privatisations of state-owned assets have taken place, though, and the Water and Sewerage Corporation (WSC) is likely some way off from being attractive to potential purchasers/investors as a result of its multi-million dollar annual losses and $25m taxpayer subsidies. Mr Gibson, meanwhile, said the WSC has already initiated policies to curb many of the irregularities outlined in the Ernst & Young audit report. “We have already put in place policies with respect to procurement and tendering,” he said. “We have put in place policies with respect to vendors and knowing who these vendors are. We are implementing those things. “With respect to overtime I have seen in the past some abuse of overtime, but rather than them submitting overtime every month they must submit it every week now, and if you don’t that’s lost.”

NOTICE

HYLAND PORTFOLIO INC.

In Voluntary Liquidation

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, HYLAND PORTFOLIO INC. is in dissolution as of July 12, 2018 A.J.K. Corporate Services (Bahamas) Limited situated at Suite 11, Bayparl Building, 18 Parliament Street, P.O. Box Ap 59205/3352, Nassau, Bahamas is the Liquidator. LIQUIDATOR ______________________

PRESS RELEASE JULY 2018 Marlin Marine appreciates your patronage and we know that the 4.5% increase in VAT is going to hurt. We are offering to pay the additional VAT to all of our valued customers for the ENTIRE MONTH OF JULY when you purchase a NEW GENERAC GENERATOR, EZ GO GOLF CART, and/or CUSHMAN GOLF CART. Contact our sales department today for this tremendous savings! Marlin Marine Sales Team Office: 242-393-7873 Email: bayshoremarina@hotmail.com Address: #64 East Bay Street Nassau, Bahamas

100 percent, resulting from a newly-won contract that serves the utilities industry in the US,” the company said in a statement. “itelbpo’s future plans include an expansion of its global workforce to 5,000 staff members within the

next five years, including bringing its work-fromhome model into the Caribbean. The planned expansion includes staff increases at its Freeport location, as well a continued diversification of the services offered there.”

NOTICE

UFG TECHNOLOGY INVESTORS LIMITED

In Voluntary Liquidation

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, UFG TECHNOLOGY INVESTORS LIMITED. is in dissolution as of July 16, 2018 International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator. LIQUIDATOR ______________________ PHELAN OVERSEAS LTD. Company No. 521166 (In Voluntary Liquidation) NOTICE is hereby given pursuant to Section 204 (1)(b) of the BVI Business Companies Act, 2004 that PHELAN OVERSEAS LTD. is in voluntary liquidation. The voluntary liquidation commenced on 26th June, 2018 and ALEXANDER GRETER of Brandschenkestr. 24, 8027 Zurich, Switzerland, has been appointed as the Sole Liquidator. Dated this 27th day of June, 2018 Sgd. ALEXANDER GRETER Voluntary Liquidator

PAGE 4, Tuesday, July 17, 2018

THE TRIBUNE

Miller demands $10m from the govt and BOB FROM PAGE ONE the way for the bank and the Bahamas Resolve bailout vehicle to seize control of the Tonique Williams Highway plaza. Mr Miller claims that BOB served him with a default notice just five days after the May 10 general election. In particular, he targets Marlon Johnson, acting financial secretary in the Ministry of Finance, who is also Bahamas Resolve’s secretary, describing him as “a nemesis” who frequently attacked Mr

Miller during his role as a “Free National Movement activist” on the campaign trail. The outspoken ex-MP’s claim also confirms Tribune Business’s revelation that Bahamas Resolve and its managers, Deloitte & Touche, have appointed a receiver who is now running both the Miller family’s Mario’s Bowling and Family Entertainment Palace venture and the plaza as they bid to sell it and recover the outstanding loan. But Mr Miller and his attorney, Damian Gomez QC, the former minister of

state for legal affairs, are seeking a Supreme Court injunction to block any sale of the Summerwinds Plaza. They are alleging that his constitutional rights to private property and freedom of expression have been breached, or threatened, by the combined actions of the government and bank. “The matters set out herof constitute an unlawful conspiracy to dispossess the plaintiffs and each of them of the said Summerwinds complex through the unlawful withholding of sums due to the said plaintiffs and each of them by the government of The Bahamas, and its control over and abuse of power in relation to the first and third defendants,” Mr Miller’s lawsuit alleged, referring to BOB and Bahamas Resolve. The government owns more than 80 percent of BOB through the Treasury and National Insurance Board (NIB), and Mr Miller continued: “Essentially, the government of The Bahamas has purported through its own wrongdoing to profit by the use of the first and third defendants at the expense of the plaintiffs and each of them. “The government deliberately refused to pay monies due under the five leases dated December 1, 2016, with the intention to trigger a default on the part of the plaintiffs and each of them in respect of their respective loans with BOB.” Bahamas Resolve, the vehicle to which BOB’s “toxic” loans have been transferred, has already advertised

the Summerwinds Plaza for sale to interested buyers via a newspaper advertisement in the Friday, June 29, edition of The Tribune. Moving to ensure this goes no further, Mr Miller alleges in his “statement of claim” that the House of Assembly allowed him, via a January 15, 2013, resolution to negotiate the lease of his Summerwinds Plaza to the government for “the purpose of providing offices to various ministries”. He claimed that two lease agreements were signed in summer 2013, which “required significant renovations and structural work to be effected” at the property to ensure it met the government’s requirements. Mr Miller and his companies sought to finance these upgrades with a loan from BOB, which it allegedly agreed to do by extending $2.5m secured by a further “upstamping” of its existing mortgage secured on Summerwinds Plaza. But, after advancing an initial $185,000, Mr Miller accused the BISX-listed bank of reneging on its loan commitment in the final week of October 2013. This left him unable to complete the necessary renovations, and the government “repudiated” the lease deals as a result. Refusing to give up, the former MP secured five new lease agreements with the government on December 1, 2016, following “lengthy negotiations” between himself on one side and the former Christie administration and BOB on the other. This time, the $4.787m financing for the upgrades

was to come directly from the government, not BOB, with this commitment included in the five lease deals. This arrangement is also described as “necessary” for BOB to “continue its loan facilities” with Mr Miller and his companies. Mr Miller, though, alleged that he suffered a repeat of his treatment by BOB, with the government just advancing $344,802 of the $4.787m required to make the plaza suitable its ministries. With the government refusing to pay rental income Mr Miller claimed was due, just five days after the election, he received BOB’s “notice of default” demanding repayment of the entire outstanding loan balance owed on the Summerwinds Plaza. Unable to meet their obligations without the rental income allegedly due from the government, Mr Miller and his companies eventually saw their loan transferred to Bahamas Resolve as part of BOB’s second shedding of “toxic” debt. The receiver’s appointment followed on April 9, 2018, with the Summerwinds Plaza advertised for sale in late June. Mr Miller alleges this was “part of a wider malicious and unlawful scheme to injure” himself and his family, and their companies. Singling out Mr Johnson as someone who made “vitriolic attacks” on him prior to his appointment to a government post, Mr Miller alleged that the acting financial secretary advertised the Summerwinds

Plaza for sale at an FNM branch meeting in the Freetown constituency. Separately, the former Cabinet minister also hit out at the alleged leaking of his confidential banking/financial information, suggesting this also represented part of a campaign being waged against him by the FNM. He added that this had damaged his reputation, and caused him “much embarrassment, distress and grief”. Mr Miller then slammed Bahamas Resolve for mixing “the performing loan facility” of his daughter, Leslia Miller-Brice, with the debt secured on the Summerwinds Plaza. He claimed the bail-out vehicle had admitted there was “no justification” for that, but has not altered its stance. With negotiations with the Attorney General’s office proving fruitless, Mr Miller is seeking damages of $9.643m and $9.847m from BOB and the government, respectively. Most of these sums, $9.118m and $8.476m, is for loss of rental income the former Cabinet minister claims was due on the government’s leases, with the balance for monies invested in the renovations. Mr Miller is now seeking a Supreme Court declaration that the five leases entered into on December 1, 2016, are “valid and binding” upon the government. He also wants a declaration that there has been an “unlawful conspiracy” against him.

Bahamas urged to ‘tackle’ low scores in integrity survey

corruption within member states. Emphasising that it did not focus on compliance and enforcement, which will be assessed later, Mr Campbell nevertheless said that The Bahamas’ “zero ratings” the lowest possible scores - in four categories reflected the absence of legislation or the failure to implement it. For example, Mr Campbell explained that The Bahamas scored “zero”

on access to information because it has yet to give effect to the freedom of information. The absence of campaign finance and related disclosure laws also explained why this nation hit bottom on “transparency in lobbying” and “transparency in party and election campaign financing”. The Bahamas also achieved a “zero” on public procurement integrity, which Mr Campbell said was linked to both international reports and the wait for the government to fully effect the new electronic system for bidding on and awarding public sector contracts. “US entities have been reporting for years on end, stating how American companies found the public procurement process to be opaque,” Mr Campbell told Tribune Business. “That’s an international perspective, but locally that’s experienced by Bahamian companies. “We note there is an electronic procurement process underway, but it’s not

completely implemented yet. We could not assess positively for that. We can only assess where we are now for public procurement.” The Bahamas’ main weaknesses in the Transparency International “scorecard” related mainly to issues with the Government/public sector, where it scored 50 percent for “fiscal transparency” and 25 percent for both “transparency and integrity in public administration” and “whistleblowing”. The country fared better in the assessment of its “anti-corruption framework and institutions”, with a 73 percent rating, while its best scores related to its anti-money laundering and counter-terror financing framework. The Bahamas hit 88 percent, or the highest ranking, for its anti-money laundering defences, while also scoring 67 percent and 44 percent, respectively, for “asset recovery” and “beneficial ownership”.

FROM PAGE ONE was based on the United Nations Sustainable Development Goal (SDG) “target 16”, which seeks to reduce

MARKET REPORT MONDAY, 16 JULY 2018

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

BISX ALL SHARE INDEX: CLOSE 1,985.77 | CHG 1.94 | %CHG 0.10 | YTD -77.80 | YTD% -3.77 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 19.17 7.50 4.00 1.48 0.19 4.00 9.16 6.60 5.30 11.93 2.71 1.77 8.21 6.21 11.50 7.29 13.67 13.00

52WK LOW 3.50 17.43 7.50 3.32 0.90 0.12 3.00 8.50 6.00 3.15 9.00 2.30 1.40 7.25 6.00 9.50 5.67 3.25 12.50

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

1050.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Fidelity Bank Class A Focol Class B

PREFERENCE SHARES

1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ

E J K L M N

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y

BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407

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

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

MUTUAL FUNDS 52WK HI 2.15 4.16 2.00 179.39 157.58 1.55 1.70 1.64 1.10 6.99 8.54 6.15 10.52 11.46 10.46

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.49 1.62 1.58 1.07 6.41 7.62 5.66 8.65 10.54 9.57

LAST CLOSE 4.45 17.43 9.09 4.00 1.01 0.18 3.00 9.10 6.14 4.13 10.90 2.88 1.75 7.89 6.10 11.50 6.32 3.65 13.00

CLOSE 4.45 17.43 9.09 4.00 1.01 0.18 3.00 9.13 6.14 4.13 10.90 2.86 1.75 7.91 6.10 11.50 6.32 3.65 13.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.03 0.00 0.00 0.00 -0.02 0.00 0.02 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 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00

CLOSE 100.00

CHANGE 0.00

108.46 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.12 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

108.34 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund

VOLUME 50 351 6,514 3,250

2,625 1,915

VOLUME

EPS$ 0.361 0.932 -0.306 0.283 -0.973 0.000 -0.996 0.638 0.573 0.171 0.627 0.102 0.231 0.000 0.545 0.679 0.610 0.277 0.631

DIV$ 0.100 1.130 0.000 0.230 0.000 0.010 0.000 0.320 0.220 0.120 0.620 0.060 0.070 0.084 0.320 0.500 0.200 0.120 0.580

P/E 12.3 18.7 N/M 14.1 N/M N/M -3.0 14.3 10.7 24.2 17.4 28.0 7.6 N/M 11.2 16.9 10.4 13.2 20.6

YIELD 2.25% 6.48% 0.00% 5.75% 0.00% 5.56% 0.00% 3.50% 3.58% 2.91% 5.69% 2.10% 4.00% 1.06% 5.25% 4.35% 3.16% 3.29% 4.46%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

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

INTEREST Prime + 1.75% 6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%

NAV 2.15 4.12 2.00 179.39 153.02 1.55 1.69 1.64 1.09 7.24 8.28 6.46 11.16 11.65 10.26

YTD% 12 MTH% 1.55% 4.09% -0.45% 4.34% 0.84% 2.31% 0.39% 5.05% -0.25% 4.57% 1.29% 4.18% -0.61% 2.84% 1.02% 3.84% -0.87% 1.82% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69%

MATURITY 19-Oct-2022 20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022 NAV Date 31-May-2018 31-May-2018 31-May-2018 31-Mar-2018 31-Mar-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018

MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings

YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225

NOTICE NOTICE is hereby given that RANDAISHA DAVERMAN of Jones Town, Eight Mile Rock, Grand Bahama, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 17th day of July, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

INTERNATIONAL BUSINESS COMPANIES ACT, 2000 ALBANY DEVELOPMENT LIMITED NOTICE is hereby given that in accordance with Section 138 (8) of The International Business Companies Act, 2000, the Dissolution of ALBANY DEVELOPMENT LIMITED has been completed, a Certificate of Dissolution has been issued and the Company has therefore been struck off the Register. The date of completion of the dissolution was the 21st day of June A.D., 2018.

Michael C. Miller Liquidator