08022016 business

Page 1

TUESDAY, AUGUST 2, 2016

business@tribunemedia.net

Whistleblower challenges CIBC evidence ‘credibility’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A Cacique award winner’s bid to avoid financial ruin may receive late help from a former Cabinet Minister, after ‘whistleblower’ evidence cited “inconsistencies” with CIBC FirstCaribbean’s case. Damian Gomez QC confirmed he was asked to do “some further research” into Malcolm Spicer’s fight to avoid foreclosure on both his family home and Abaco-based investment project, which was designed to provide for his family in retirement. “I’m doing some further research,” Mr Gomez told Tribune Business of his case review. “It’s really

Ex-minister reviewing ‘4 x 4= 12’ loan dispute Bankers received SUVs for meeting loan targets Former officer refutes bank manager’s assertions Borrower’s attorneys alleging ‘cover up’ just covering all the bases and making sure nothing is left.” He added that no decision had been made on whether he will intervene on Mr Spicer’s behalf, praising the way the latter’s

existing attorney, Dywan Rodgers, had handled the case to-date. Tribune Business understands that attorneys for both CIBC and Mr Spicer have closed their arguments, and are now waiting

for Supreme Court Justice, Estelle Gray-Evans, to resolve their bitter loan dispute. But Mr Spicer, who is well-known in sporting and teaching circles, is hoping his case received an ‘11th hour boost’ after a ‘whistleblower’ came forward to challenge several key foundations of the bank’s case. CIBC FirstCaribbean has long argued that the matter is a simple asset/security repossession following the borrower’s default, but the ‘whistleblower’ backed Mr Spicer’s argument that responsibility lies largely with the bank. A former CIBC FirstCaribbean executive, they concluded that based on the available evidence, the See pg b8

Consumers ‘totally naked’ against banking practices By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A former Cabinet Minister believes Bahamians are “completely naked” against sharp banking practices, adding that the problem had become “endemic”. Damian Gomez QC, who until recently was minister of state for legal affairs, told Tribune Business there needed to be “a complete rethink” of how banking was conducted in the Bahamas. He accused the Canadian-owned banks, in particular, of “doing things they couldn’t dream of” in their home jurisdiction, adding that this was “unfair” to Bahamians. Mr Gomez said that with virtually no protection

Ex-minister urges ‘complete rethink’ on sector Says Bahamian treatment complaints ‘endemic’ Doing ‘things wouldn’t dream of’ back home available to consumers, he was set to assist numerous Bahamians on a “pro bono” basis in cases against the commercial banks. And, given the relatively See pg b3

Regulator won’t ‘price TUC takes Sandals to court over longcontrol’ banking fees Property Fund ‘nowhere close’ to rental targets delayed industrial deal Central Bank eyes By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net PRESIDENT of the Trade Union Congress (TUC) Obie Ferguson said that the union had been left with “no other alternative” but to file criminal charges against Sandals Royal Bahamian and its top executives for failing to negotiate an industrial agreement since 2009, a move prompted by the recent termination of union officers employed at the Cable Beach all-inclusive property. Gary Williams, Sandals Royal Bahamian’s general manager, confirmed to The Tribune that he had received a summons to appear in court on August 10. “They have summoned me to court. The matter is going to court. The issue with the union has been with the courts for some period now, well before my tenure. It’s with the lawyers so I don’t want to say anything to prejudice the case,” said Mr Williams. The TUC and its Bahamas Hotel Maintenance & Allied Workers Union (BHMAWU) affiliate, which represents some 500 plus workers at Sandals Royal Bahamian, have had a long-standing dispute with the resort over the issue of union recognition. In 2011, the BHMAWU secured a ruling by the Privy Council that it and not the Bahamas Hotel Catering and Allied Workers Union (BHCAWU) be recognised as the bargaining agent for Sandals Royal Baha-

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

“No other alternative” says union chief Sandals confirms legal moves No deal negotiated since 2009 mian employees. Despite this however, Sandals has refused to negotiate with BHMAWU, union officials have said. “From 2009 to now, Sandals has been violating the laws of the Bahamas and in a criminal manner,” said See pg b3

$3.97 $4.06 $3.98

$3.98

The Central Bank will not intervene to cap or “price control” commercial bank fees, its governor has revealed to Tribune Business. John Rolle, in a recent interview, indicated that the banking sector regulator is instead focused on a “holistic” approach that aims to ‘empower’ consumers to protect their own interests via improved financial literacy. “We are definitely not looking at it from the position of a price control issue. We don’t see this as price control,” the Central Bank’s governor told Tribune Business. “Our focus is to encourage a system that promotes financial literacy and consumer financial protection holistically. That is an area we have in our work programme, looking at best practices and making See pg b7

more ‘holistic’ approach

Govt may ‘package’ Credit Bureau with other plans Homeowners Protection, salary deductions eyed

John Rolle

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

The BISX-listed Bahamas Property Fund says occupancy rates at its two flagship properties are “nowhere close to where we’d like to be”, after it incurred a $1.545 million net loss for 2015. Michael Anderson, RoyalFidelity Merchant Bank and Trust’s president, told Tribune Business that higher vacancy rates drove a $3.238 million ‘write down’ on the value of the Fund’s One Marina Drive property. That, combined with reduced rental income as a result of the vacancies there and at its Bahamas Financial Centre property, drove an almost nine-fold yearover-year increase in the net losses suffered by shareholders. Mr Anderson, who acts as the Property Fund’s See pg b6

Suffers almost ninefold rise in losses Driven by $3.24m PI property writedown Occupancy improvements ‘drop in bucket’

Michael Anderson


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