08042017 business

business@tribunemedia.net

FRIDAY, AUGUST 4, 2017

$4.00 DPM: FIRST BOB RESCUE ‘PROTECTED CERTAIN BORROWERS’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BANK of the Bahamas’ (BOB) losses were exacerbated by the former government protecting “certain borrowers”, the Deputy Prime Minister yesterday describing the new $166 million ‘bail out’ as “the best shot” for recovery. “We’re freeing up the bank of its problem loans,” he said of the latest $166 million ‘rescue’, which was announced at BOB’s shareholders’ meeting on Wednesday night. “The prior government bail-out had basically tried to protect certain borrowers, and resulted in the bank having to carry

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas Public Services Union’s (BPSU) president yesterday suggested the Government’s ‘employee verification’ exercise could slash recurrent spending by around $80 million. John Pinder told Tribune Business he backed the Minnis administration’s efforts to weed out “phantom” workers and other unethical practices in the public sector, listing numerous areas of payroll wastage and “political patronage” that cost Bahamian taxpayers. “That’s the norm. I welcome that,” the BPSU chief said of the upcoming ‘verification’ move. “They ought to do that to ensure persons being paid are, in fact, working for the Government or at least locate them. They just want to See PG B5

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net BANK of the Bahamas’ (BOB) latest $166 million ‘bail out’ was yesterday described as “the best shot” to rescue it, its newly-appointed chairman revealing the deal will likely be “consummated” on or before August 10. “The Government is preparing to infuse

Govt targets sale, reduction of its BOB stake

Govt can save $80m by ‘verifying’ workers Union chief: Could cut recurrent budget 3%

$4.06

$166m bail-out is BOB’s ‘best shot’

Forced troubled bank into unnecessary provisions

certain provisions it didn’t have to.” Those loan loss provisions will have contributed to the $120 million-plus losses BOB suffered over its past four financial years. Mr Turnquest’s comments are likely to infuriate the bank’s long-suffering minority shareholders, who will likely interpret them See PG B2

$4.18

$4.05

WAYNE ARANHA

$166 million into BOB,” Wayne Aranha told shareholders at the BISX-listed institution’s annual general meeting (AGM) on Wednesday night. “This commitment came since our appointment, and so it’s not a question of the new government honouring a contract given to the old government. This is something entered into recently. It’s so new that we are in See PG B3

Bank to repeat Resolve ‘bail-out’ Gov’t to replace $107m bonds with capital Bank seeks Gov’t ‘cost recovery in Out Isl.

Minister pledges cruise line reset By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Minister of Tourism yesterday said the Bahamas must reset its relationship with the cruise lines, adding: “They make all the money, and we have nothing.” Dionisio D’Aguilar told Tribune Business that this nation needs to “be a little more aggressive”, and

ensure it earns a greater share of the economic activity generated by millions of cruise visitors to its shores annually. In return, he acknowledged that the Bahamas needed to “improve its product” - especially on New Providence - and provide cruise passengers with new, innovative tours and attractions. Mr D’Aguilar said this was essential to increase

per capita spending and yields, suggesting that the Bahamas had to its detriment focused on ‘volumes’ - the number of cruise visitors per annum rather than total economic returns. “We’ve got to be a little more aggressive,” he told Tribune Business. “We have a duty to improve our product, but when we do we want the cruise ship See PG B4

Says: ‘They make the money; we get nothing’ Bahamas needs to improve product in return Low growth rate vs region ‘speaks volumes’

Pinder backs public sector exercise Highlights patronage, waste and flaws

JOHN PINDER

QC urges ‘no carte blanche’ extension of F’port tax breaks By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government was yesterday urged not to grant “a carte blanche” 20-year tax breaks extension for all Freeport businesses, especially the Grand Bahama Port Authority (GBPA) and Hutchison Whampoa entities. Fred Smith QC, the Callenders & Co attorney and partner, warned the Minnis administration to be especially careful about granting such an exemption to Hutchison, Freeport’s largest investor, due to its failure to meet its real

‘Big boys must step up to plate’ Says Hutchison not met obligations Urges Govt to ‘negotiate a miracle’ estate and tourism development commitments. Mr Smith, who was the GBPA’s external counsel, and involved in the deal, said a condition attached to Hutchison’s purchase See PG B4

Do the things you really want. Now’s the time to get a Scotia Plan Loan.* FLEXIBLE PAYMENTS LIMITED-TIME OFFER ON UNSECURED LOANS UNTIL SEPTEMBER 15*

CUSTOMIZED AMOUNTS TERMS UP TO 6 YEARS

Apply today! Call 356-1560 or visit your nearest branch. #ThingsYouWant

Book a family cruise

Furnish her room

Send her to school

bs.scotiabank.com/planloan

*The Promotion Period will start on July 1, 2017 and end at midnight on September 15, 2017. Further conditions apply. Subject to credit approval. ®Registered trademark of The Bank of Nova Scotia, used under licence.