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Compass Point owner ‘completely out of line’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

CABINET minister yesterday said he will “not be bullied” by the Compass Point owner’s threat to close the resort and put 60 Bahamians out of work, blasting: “He’s completely out of line.” Dionisio D’Aguilar, minister of tourism and aviation, told Tribune Business that Leigh Rodney needed to become “less confrontational” and stop using his employees as bargaining chips and leverage in his dealings with the government. He added that he did not necessarily consider Mr Rodney’s complaints over the hotel licensing process as “rationale”, and warned the US investor that as a non-Bahamian he “must

• Minister blasts closure threat to 60 Bahamian jobs • Warns US investor: ‘I won’t be bullied” • And tells him: ‘Remember you’re a guest here’

DIONISIO D’AGUILAR remember he is a guest in this country”. Responding to the Detroit businessman’s advertisement, published in yesterday’s Tribune, where he threatened to close

Compass Point on the next general election date if the government fails to implement the ease of doing business reforms he wants, Mr D’Aguilar said he had “admonished” Mr Rodney to instead “act prudently and judiciously”. While admitting his concern for Compass Point’s 60 staff and their families, the minister reiterated he is “not going to stand for” Mr Rodney’s conduct and said he was “sure the Bahamian people will understand why I’m taking the position I’m taking”. Mr D’Aguilar hit back after Mr Rodney alleged that the Minnis administration was

reneging on its promise to make doing business easier in The Bahamas, and that it had failed to act on his request to set up a committee - including himself - to make recommendations for improving existing laws and regulations. Mr Rodney added that current and past prime ministers, Dr Hubert Minnis and Hubert Ingraham, as well as Mr D’Aguilar were well aware of his concerns. He warned in his ad: “If the FNM wins the next election without acting upon the promise they made when they were elected two years ago, the Compass Point

SEE PAGE 2

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Inagua’s ‘viability’ at stake in latest Morton meeting By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net A CABINET minister yesterday said resolving the Morton Salt dispute is “a top priority for the sake of all Inagua residents” with the warring parties due to meet tomorrow. Dion Foulkes, minister of labour, said the company’s management and line-staff union representing more than 100 workers will meet in their latest bid to conclude an industrial agreement acceptable to both parties. Speaking outside Cabinet, Mr Foulkes said: “I have been in discussion with both the management at Morton Salt and the union; both Mr Obie Ferguson, who is the lead negotiator for the union, and Mr Scott Nixon, who represents the management down in Inagua. We have agreed to have a meeting

DION FOULKES this coming Thursday. “We are very hopeful we can bring some resolution to the outstanding issues at Morton. Most of them revolve around economic issues in the contract. Morton Salt is the largest employer next to the government on Inagua. “We see it as a top priority for the government to get that settled for the sake of all the residents and the viability of Inagua in terms of full employment. We are

SEE PAGE 5

Ferry provider in Bimini BTC suffers $13.6m first half revenue fall deal ‘stolen from it’ • Carrier’s top-line down 11% to end-June By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net RESORTS World Bimini has this week switched the location and provider of its Florida-based ferry service, selecting an operator that previously claimed the deal was “stolen” from it. The resort, owned by the Malaysian conglomerate, Genting, has swapped FRS Caribbean for Balearia Caribbean with effect from Monday. The change means that the regular sailing from Florida to Bimini is also moving from Miami to Fort Lauderdale’s Port Everglades, with the new service set to begin this week. A notice on FRS Caribbean’s website said: “FRS Caribbean has stopped its service on the route Miami to Bimini with effect from August 5, 2019. The service will be provided by Balearia Caribbean. The vessel will depart from Port Everglades. “Customers with existing reservations will be offered the option to travel from Port Everglades or to cancel/refund their reservation. Passengers affected will be contacted. If you booking was made through a travel agent or third party vendor, please reach out to them for refund requests.” It is unclear whether, and how, the provider switch will impact the Bimini end of the service. Multiple inquiries by this newspaper yesterday were unable to establish whether any Bahamian jobs will be lost, although one possibility is that any positions will

merely transfer from one operator to the next. Kai Knocke, chief executive of FRS Caribbean, told the Miami Herald that the change was based on “commercial considerations”. “In our opinion the relatively small market between Florida and The Bahamas allows at the moment only room for one shipping company for a year-round service,” he said. The Bimini ferry service contract was embroiled in controversy earlier this year after a US federal court judge ordered the former chief executive of Balearia Caribbean to pay his exemployer $2.844m in damages for effectively stealing the deal from under them. The Spanish ferry operator, which already services Freeport from Fort Lauderdale on an almost-daily basis, was deprived of the chance to bid on the initial Bimini contract because Hernan Calvo concealed the opportunity from it. Calvo, according to a US court ruling obtained by Tribune Business, first entered into secret talks to steer the Resorts World contract to a rival Argentinian ferry company, Buquebus. When it pulled out in April 2016, he found a German transportation company, Forde Reederei Seetouristik GmbH (FRS), to take over the deal and it duly signed a contract with the Bimini resort’s owner. Judge Kathleen Williams found that Calvo, while still working at Balearia, was competing against his

SEE PAGE 3

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Bahamas Telecommunications Company’s (BTC) $13.6m first-half revenue decline last night underscored the urgency of pleas for corporate unity as its business continues to slip away. Figures for the first six months of 2019, released by its ultimate parent, Liberty Latin America, revealed that BTC’s top-line for the period was down by 11.4 percent year-over-year as it lost a further 9,300 mobile subscribers during the second quarter. Liberty Latin America’s 10-Q filing with the US Securities & Exchange

• As mobile customers decline by 9,300 • Non-mobile subscribers off by 2,900 units

BTC HEADQUARTERS Commission (SEC) showed BTC’s 2019 first half revenues fell to $106.1m compared to $119.7m in the

same period last year, indicating that its loss of mobile market share to Aliv is continuing.

The Bahamian communications carrier’s revenues for the 2019 second quarter, which includes the three months to end-June, were also off 7.4 percent year-over-year at $52.5m compared to $56.7m for 2018. The top-line declines appear to have been driven by a further 9,300 net loss of mobile subscribers during the 2019 second quarter, which challenges the optimism expressed by

SEE PAGE 4

Judicial reforms to give ‘clout beyond our size’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net AN EX-ATTORNEY general yesterday hailed the chief justice’s reforms as potentially giving The Bahamas “an influence way beyond our size” in both legal services and attracting new business. Alfred Sears told Tribune Business that the planned digital transformation of the Bahamian court system, together with the construction of a new judicial complex and overhaul of the Supreme Court’s rules, represent a key building block for improving this nation’s economic competitiveness if properly implemented.

• Ex-AG hails Chief Justice’s plans as ‘long overdue’ • Bahamas could be ‘seat of choice’ for biz disputes • Can bring new business, aid financial services adjust

ALFRED SEARS QC Praising the initiatives unveiled by Brian Moree QC as “long overdue”, Mr Sears said The Bahamas

was not just competing with other countries in financial services and related industries but is also battling with them in dispute resolution. He added that fully enacting the reforms, and demonstrating that The Bahamas can deliver timely, efficient and cost-effective justice, could result in parties to international commercial transactions choosing The Bahamas as their jurisdiction of choice for the resolution of any disputes. And overhauling the

judicial system would also help “create momentum and clarify niche opportunities” as The Bahamas works to reposition its financial services industry following the latest tax and regulatory onslaught from the European Union (EU) and Organisation for Economic Co-Operation and Development (OECD). “I certainly support and applaud the chief justice for undertaking these necessary reforms because the

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PAGE 2, Wednesday, August 7, 2019

THE TRIBUNE

Compass Point owner ‘completely out of line’ FROM PAGE ONE

FOM left: BISX’s chief operating officer, Holland Grant; Lydda client relatiionship manager, Alicia Curry; and BISX chief executive, Keith Davies.

BISX welcomes newest member Lydda Capital By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas International Securities Exchange (BISX) has announced that Lydda Capital has become the stock exchange’s seventh broker/dealer member. Keith Davies, BISX’s chief executive, said of the new addition: “It is our pleasure to welcome Lydda Capital Ltd. By taking this determinative step by becoming a BISX broker/ dealer member, Lydda has

demonstrated their commitment to the Bahamian capital market’s growth and development. We look forward to seeing them begin trading on the exchange and offering services to clients.” Alicia Curry, a client relationship manager for Lydda, added: “Lydda Capital is excited by the expansion of its product offerings, and is looking forward to assisting clients desirous of trading on BISX.” Lydda Capital’s broker/ dealer status gives investors

more options and choice over who they select to conduct their trading activities and meet other capital markets needs. “Before any broker/ dealer becomes a BISX member, they are required to first go through the licensing process of the Securities Commission, after which they need to go through BISX’s own separate due diligence process,” Mr Davies said. “Lydda was very proactive in both providing information and responding to our queries during this phase.”

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owner does not want to continue to do business in this country and will therefore close his business.” Tribune Business understands that Mr Rodney was referred to Mr Ingraham after he contacted Dr Minnis with his issues. His advertisement added that he “simply wants to make some positive changes that will benefit everyone in The Bahamas”, but warned that failure to enact these reforms would result in the iconic resort’s closure with no prospect of re-opening. The Compass Point owner yesterday remained true to his advertisement’s pledge not to speak further publicly when contacted by this newspaper, only confirming that he stood by everything that was written and hoped it would prompt a new meeting with the government. Mr Rodney’s complaints centre on the hotel licensing process, which he regards as unnecessary and a duplication of effort given that Bahamian resorts also have to pay for business licence fees. He is also understood to have wanted to implement specific security arrangements for Compass Point, particularly for the resort’s parking lot which lies across the road from the West Bay Street resort, and was unhappy at being told to deal exclusively with the Police Staff Association (PSA) - which he regards as a monopoly for this type of work. Mr D’Aguilar yesterday confirmed that Mr Rodney had told him that hotel licensing procedures were “silly and stupid”, and that he should “not have to abide by them” despite the fact no other Bahamian resort had complained. “Mr Rodney is, as he knows and I have told him, completely out of line,” Mr D’Aguilar blasted. “First of all he is a non-Bahamian, and while he can suggest or make recommendations for the Government of The Bahamas to make changes to the hotel licensing regime or whatever issues or rules we have in this country, he must remember that he is a guest here. “He must make his tone less confrontational and less threatening. He was very, very persistent in putting forward his view. It basically boiled down to the view that if I didn’t do, in my capacity as minister of tourism, what he wanted me to do, he would shut

down his hotel. “He felt the hotel licensing process was silly, and the requirements silly and stupid, and that he shouldn’t have to abide by them. I said to him: ‘Everyone else is, and they don’t have any problems with it’.” Mr D’Aguilar, given that discussions with Mr Rodney appeared to be “going nowhere”, said he ultimately referred the investor to the Hotel Licensing Authority and its chairman, Ethan Adderley. “I told him that the lives and livelihoods of 60 Bahamians were in his hands, and I admonished him to act prudently, judiciously and appropriately,” the minister added of his dealings with Mr Rodney. “I wasn’t to be bullied and was not moved by his threats. “He sent me threatening e-mails that he would put the advertisement in the paper, and I said: ‘You’ve got to do what you’ve got to do, and I’ve got to do what I’ve got to do’. Mr Rodney has to remember this is not the US. If a Bahamian business goes to the US they have to abide by the rules of the US. Likewise, when they come to The Bahamas they have to abide by the rules of The Bahamas. “This confrontational, threatening approach does not work here, just like it would not work there if you went there and opened a business. He’s been doing this for quite some time, and I’m not minded to engage myself in this discussion. After a while we became very dismissive of his rants.” Mr D’Aguilar said there had been no direct contact between himself and Mr Rodney since late 2018 when the Compass Point owner was told to deal directly with the Hotel Licensing Board. “I’ve seen fit not to engage with him any further as we don’t think the reasoning from his point of view is rationale, and it will not end well if he continues the discussion with me,” the minister added, revealing that he was minded to “let the chips fall where they fall” over Mr Rodney’s closure threat. “Obviously I’m concerned about the Compass Point staff,” he told Tribune Business, “but no minister of the Government of The Bahamas is going to be threatened by a non-Bahamians, and I’m sure the Bahamian people will understand having to take the position I’m taking.

“It’s inappropriate to do what he’s doing, and I’m not going to stand for it. He’s trying to draw an irrational response from the government, and we’re not going to do that. Tomorrow morning we’ll wake up and continue to execute and implement the laws of The Bahamas as it relates to hotel licensing. “His [Mr Rodney’s] comments are duly noted and we move on. His threats are not going to force us to put any more focus on this. I’m not sure what his issues are. He’s had a blow and we note his blow. It’s been duly noted, but certainly not appreciated.” Such a heated public spat between investor and government is still relatively rare in The Bahamas, but usually does little good for either party or this nation’s reputation as a safe haven for investment. It also gives the government’s political opponents ammunition to attack its much-touted efforts to improve the ease of doing business as having little effect. Mr Rodney acquired Compass Point in 2006 with three partners. They included Bahamian attorney Paul King, of King & Co, and Gilles Trahn and Martin “Skip” Scully. The property’s purchase from Island Outpost ended its two-year post-Hurricane Frances closure, although the iconic Compass Point Recording Studios were not included in the deal. Mr Rodney is president of Detroit Forming Inc, a Detroit-based designer and manufacturer of rigid plastic packaging, a familyowned business that was started by his father in 1962. He told this newspaper in 2006 that he had been visiting the Bahamas for 20-30 years, having first come here in the 1970s and visited this nation once a year since then. He also owned a residential property at Love Beach, which helped him become familiar with Compass Point. Mr Rodney is currently also attempting to sell the former Robin Hood retail store on Prince Charles Drive, which is located on the site of the former PepsiCola bottling plant. The Compass Point owner holds a mortgage lien on the property as security for the monies he advanced to finance the eastern expansion of the retailer’s owner, Sandy Schaefer.

THE TRIBUNE

Wednesday, August 7, 2019, PAGE 3

Anti-tax dodge unit getting ‘big results’

DEPUTY PRIME MINISTER AND MINISTER OF FINANCE KP TURNQUEST By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE Government’s Revenue Enhancement Unit is already achieving “significant results”, the deputy prime minister said yesterday, voicing optimism it will “achieve our targets”. Speaking ahead of a Cabinet meeting, K Peter Turnquest said: “We are up and running with our Revenue Enhancement Unit, and they are achieving significant results. We are anticipating that we will achieve our targets with respect to the initial objective of that unit. “One of the things we encourage all residents to appreciate is if we are going to keep our taxes low, then all of us have to pay our fair share to ensure no one is paying any excessive or undue share. If we all do that then we can continue to keep taxes low and meet all of our commitments as a government. “The whole idea behind the Revenue Enchantment Unit is to help us achieve the compliance rate in order to provide the Bahamian people with the services that they deserve.” Marlon Johnson, the Ministry of Finance’s financial secretary, told Tribune Business in a May 2019 interview that the Revenue Enhancement Unit (REU) could reclaim up to $100m per annum from tax dodgers once it begins operations. He argued that there were “substantial opportunities” to improve the government’s revenue intake by targeting fraud, tax evasion and avoidance, plus monies that slipped through cracks in the system due to inefficiencies and poor administration. In particular, he said the Ministry of Finance felt there was still significant “under-reporting” of VAT and Customs and Excise Taxes. To counter the former, the REU will be charged with comparing VAT registrants’ returns with their annual business

DPM CONFIDENT IT WILL ‘HIT OUR TARGETS’ licence fee fillings, as gross revenues should be the same, and with returns submitted by similarly-sized peers in the same industry. The failure to establish the Revenue Enhancement Unit, and make it operational in time for the 2018-2019 fiscal year, was one of the factors blamed by Mr Turnquest for the predicted $240m revenue shortfall faced by the Government. The unit was supposed to generate $80m of that figure. The Minnis administration has been heavily criticised by its political opposition for disbanding, and failing to continue, with the Revenue Enhancement Unit that its PLP predecessor set-up to target the same tax and revenue streams following Hurricane Matthew in October 2016. Moody’s, the international credit rating agency, revealed in a mid-summer 2017 report that the Christie administration’s unit had yielded some $90m in revenues during its first six months in existence, putting it on target to generate $180m in extra annual income for the Public Treasury. Its successor, though, argued that the Christie administration had failed to provide the unit with any legal basis for its activities. It also argued that it was staffed by foreign accountants, with few to no Bahamians, and no training programme to enable them to take over. The Revenue Enhancement Unit will focus on VAT, business license, customs duty and real property taxes, targeting higherrisk taxpaying firms and those who have significant discrepancies between payments of different tax types.

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Ferry provider in Bimini deal ‘stolen from it FROM PAGE ONE then-employer for two months over the Resorts World deal prior to his eventual departure. She ruled that he had “breached his fiduciary duty” to the Spanish ferry operator, and therefore needed to pay it $2.844m compensation for loss of profits. Documents filed with the the US south Florida federal court, which have been obtained by Tribune Business, also allege that Calvo kept secret negotiations he was holding with the Bahamian government over investment incentives for the Resorts World Bimini ferry route. “The Government of the Commonwealth of The Bahamas figures prominently in any proposed tourism activity affecting The Bahamas,” Balearia, in its original action, alleged. “Calvo, as Balearia Caribbean’s chief executive, knew that on Balearia Caribbean’s existing ferry operations between Fort Lauderdale and Grand Bahama, Balearia Caribbean was able to obtain through negotiations a reimbursement of certain marketing expenses from the Government of the Commonwealth of The Bahamas as an incentive to promote these ferry operations. “Calvo also held discussions with Bahamian government representatives

when he was negotiating the Genting ferry deal for Balearia Caribbean, and these discussions would have included the marketing reimbursement tourism incentive. “Calvo kept [Balearia] in the dark about the discussions he was having with representatives of the Government of the Commonwealth of The Bahamas at the time he was also negotiating the Genting ferry deal.” Balearia claimed that a representative for Genting Group, the Malaysian conglomerate that owns Resorts World, informed it that the agreement with FRS involved the ferry operator “ceding to Genting the marketing incentives that FRS would obtain from the Bahamian government”. In other words, Resorts World and Genting would be the ones to benefit from substantial concessions granted on the Bahamian taxpayer’s behalf - in addition to the multi-million dollar tax breaks and other incentives already granted to them for the resort’s development. Meanwhile, Balearia has now gained the very contract it was deprived of some three years ago. Genting and Resorts Word were not involved with Calvo’s actions, and there is nothing to suggest they or their executives did anything wrong.

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PAGE 4, Wednesday, August 7, 2019

THE TRIBUNE

BTC suffers $13.6m first half revenue fall FROM PAGE ONE

Garfield “Garry” Sinclair, BTC’s chief executive, that market share declines were starting to “plateau” in his recent interview with Tribune Business. Data provided by Liberty Latin America showed that a modest gain of 700 postpaid mobile subscribers was more than offset by the loss of another 10,000 pre-paid customers during the three months to end-June 2019. This left BTC with some 213,500 mobile subscribers as at June 30, split between 188,000 pre-paid customers and 25,500 post-paid subscribers, with the numbers providing further evidence that its upstart rival, Aliv, continues to eat into its market share and legacy monopoly. Liberty Latin America’s results announcement reiterated that BTC continues to be a drag on the performance of Cable & Wireless Communications (CWC), its immediate parent, which was acquired by the former some years after the 2011 privatisation. It said of CWC: “Mobile revenue attrition of nine percent on a rebased basis was partly offset by rebased revenue growth of four percent in B2B (business) and 1one percent in residential fixed. “The reduction in mobile revenue year-over-year was primarily attributable to lower service revenue in Panama and The Bahamas, where continued competition drove decreases in ARPU (average revenue per user) and the average number of subscribers.” BTC’s subscriber numbers showed virtually no positive improvement elsewhere. Customer numbers excluding mobile fell by 2,900 during

the 2019 second quarter, with TV/video and Internet subscribers declining by 500 apiece and fixed-line telephone customers down by 1,900. While BTC’s infrastructure passes some 128,900 Bahamian homes, it had just 6,100 TV/video and 25,700 Internet customers at end-June 2019. Telephone customers totalled 44,400, bringing BTC’s nonmobile revenue generating units to 76,200. The data provides ample evidence to back Mr Sinclair’s warning to BTC’s two trade unions that their tactics “could be fatal” to a business that has lost $110m in annual revenue in less than three years, going from a $330m top-line to one that is nearer $220m. BTC’s half-year revenue pace suggests breaking the $200m revenue mark could be a struggle, further supporting Mr Sinclair’s contention that the former government monopoly will face “an existential crisis” as it tries to “win again” in a fiercely competitive market unless the unions “stop finding a dark cloud behind every silver lining”. In an impassioned call for unity within BTC, Mr Sinclair told Tribune Business in a recent interview that both the line staff and management union must “resist the temptation to fall back into ancient habits and practices from the monopoly days” if the carrier is to adjust its business model and properly compete with the likes of Cable Bahamas and Aliv. Voicing disquiet at the two unions’ seeming tendency to “sow dissent and extend controversy at the first sign of adversity”, Mr Sinclair argued that BTC had still to adjust to the loss of its longstanding mobile monopoly

and the need to compete in a liberalised Bahamian communications market. “We’re no longer a $330m a year revenue business. We’re a $220m business,” he said recently. “If we don’t make that adjustment we’re in an existential crisis. It’s been tough to make adjustments to the operating model now that it has one-third less revenue. The ability to do that has been tough.” However, the numbers revealed last night also seemingly challenge Mr Sinclair’s assertion that mobile subscriber churn is declining sharply and that BTC is doing a better job of retaining market share in the battle with Aliv. Mr Sinclair had said in his recent interview with Tribune Business that BTC’s loss of mobile subscribers to Aliv had been on “a fairly steep decline”, with the rate of attrition falling by 32,000 in 2018 compared to the prior year. He added that 2019 to-date had produced further evidence that these customer losses were starting to bottom out. “The target was to cut prior year churn in half,” Mr Sinclair said of BTC’s 2019 mobile targets. “We’re well ahead of that target, and would have been even further ahead but we made some decisions with respect to subsidised handsets and our investment in subsidised handsets. “We’re going to revisit that in the second half, and you’ll find us way more competitive there.” He added that BTC also planned to introduce a “simplified” range of new mobile plans, along with a “fresh-fixed line proposition”, that customers will find “particularly compelling” heading into the 2019 second half and final quarter.

Judicial reforms to give ‘clout beyond our size’ FROM PAGE ONE digitisation of court filings will expedite and assist with case management,” Mr Sears told Tribune Business. “These initiatives are long overdue. “Also, there’s an urgent need for a judicial complex because the Supreme Court right now is scattered across several buildings which are not customised for the unique functions of the judiciary. “A unified judicial complex will better facilitate the operations of the judiciary, provide better security for judges and court officials, and better security for filings as they are not required to be transferred from one building to the next.” Mr Sears said further advantages from a dedicated Supreme Court complex would be the ability to better sequester jurors, keeping them free from influences that could prejudice a trial’s outcome, and better protection of witnesses from intimidation by family or associates of the accused. Record-keeping and administrative support would also be improved. Both the judicial system’s transformation to e-filing and e-services, and the construction of a purpose-built Supreme Court complex, are high on Chief Justice

Moree’s priority list. The first reforms will focus on eliminating the bureaucratic, paper-based filing of court documents and replacing this with a technology platform that will allow them to be submitted electronically. This will lead into the development of electronic case management, fee payment, scheduling and other digital services, with the chief justice telling Tribune Business earlier this week that all changes will be “sustainable” and implemented over a two to three-year period. He added that he had also held discussions over constructing a new Supreme Court complex, describing the process as being at “a very delicate stage” and something he may be able to say more about in a few months. Mr Sears said he and other members of the inner Bar had already met with Chief Justice Moree to discuss the proposed reforms, and yesterday promised he would “offer any assistance I can give to this long overdue initiative”. “The benefits are significant and multiple,” he told Tribune Business. “First, we need to ensure justice is not delayed, both in the civil and criminal jurisdiction of the court and, certainly, digitisation and proper facilities and better resources for the judiciary will make the delivery of justice much more timely. “Secondly, access to the courts and the timely disposition of cases has a direct bearing on the competitiveness of the jurisdiction. Thirdly, the expansion of business to The Bahamas both by foreign direct investment as well as others. “As the jurisdiction develops a reputation for efficiency and fairness, people all over the world in the choice of law provision in commercial transactions could choose The Bahamas - as they have done Singapore, London and Paris

- as the forum for settling disputes.” Mr Sears said the court system transformation needed to be backed by an increasing embrace of arbitration and mediation as alternative forms of dispute resolution - something the chief justice earlier this week said will be incorporated into the revised Supreme Court Rules targeted for implementation in early April 2020. “Investing in the judiciary is important for the peace, order and good governance of The Bahamas, the competitiveness of the jurisdiction and the attraction of The Bahamas internationally to people involved in commercial transactions,” Mr Sears reiterated. “We could have an influence way beyond our size because of the quickness, effectiveness and integrity of our judicial process and doing business in The Bahamas. This is all part of improving the competitiveness of the jurisdiction, and repositioning The Bahamas to play in this increasingly digitised global economy where you’re trading really in knowledge. “We certainly have the expertise, but the infrastructure needs to be redesigned and refashioned to be more attractive to international commercial transaction. We are competing with these other jurisdictions in banking and financial services, but we are also competing with them in terms of dispute resolution,” the former attorney general continued. “There are many opportunities for us to reinvent ourselves, and I think the chief justice’s initiative can build momentum and clarify niche opportunities for The Bahamas as we refashion and design our financial services sector and dispute resolution, and make this jurisdiction much more attractive and competitive. “I think he’s on to a great start, and we all need to pull together to see how we can assist.”

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THE TRIBUNE

Wednesday, August 7, 2019, PAGE 5

Inagua’s ‘viability’ at stake in latest Morton meeting FROM PAGE ONE

very hopeful that on Thursday we can make some progress, if not resolve all of the issues at Morton Salt.” The dispute between Morton Bahamas and the Bahamas Industrial, Manufacturers & Allied Workers Union (BIMAWU) escalated in late June after the company, in a letter exposing its growing exasperation and frustration over the two sides’ “impasse”, accused the line staff union of failing to negotiate “in good faith” and disrupting “the economic viability” of its Bahamian operations. Morton Salt executive, Christopher Getaz, told Jennifer Brown, the BIMAWU president, that her members will be locked out of its facilities from July 3 unless the company received a reply indicating the two sides can reach a “happy medium” over a new

industrial agreement. Noting the union’s possession of a strike certificate, and previous threats of industrial action, Mr Getaz also blamed reduced productivity and work slowdowns on the BIMAWU’s influence, and suggested that the “lock-out” was required to redress the negotiating balance. These actions, he alleged, included “an operating deficit in all harvest levels” on a daily, weekly, monthly and yearto-date basis to February 22, 2019; “significantly lower boat loading rates” in February and March; and a “reduction to lowest loading rates”, which caused “significant costs and placed the company at risk of missing the contract for de-icing salt” around early March. “The foregoing requires the company to consider whether, in the declared industrial action climate, it is necessary for the company to lock employees out of the plant in

furtherance of the company’s bargaining objectives in negotiations for a new industrial agreement,” Mr Getaz told the union. “We invite a response from you within the next 15 days with a view to arriving at a happy medium between the parties. Failing such a response, or the arrival to a happy medium between the parties, the company intends to proceed with its lock-out at the expiry of 15 days from the fate of this letter.” Mr Getaz added that the company’s June 13 offer to the union was its “best and final” position, and said: “The company is not in a position to make further offers.” The “lock-out” was averted after intervention by the government. In response, the union’s Ms Brown had told this newspaper that Inagua would become “a ghost town” should Morton Salt follow through with its threat. She added that while the BIMAWU wanted an

industrial deal it would “not sign for stupidness”. Obie Ferguson, the Trades Union Congress (TUC) president, and attorney and chief negotiator for the BIMAWU, previously argued that Morton Salt’s proposal was a “deficit industrial agreement” and called for salary increases that matched the inflation rate. Explaining what he meant, the TUC chief said the base salary increases offered to workers over the proposed industrial agreement’s three-year term - 1.5 percent for each of the first two years, and 1.9 percent for the final year - were lower than the current rate of inflation and cost of living increases, which have both been impacted by last year’s VAT rate hike. And, Mr Ferguson argued, the increase in staff contributions to their health insurance coverage would more than offset the positive effect from salary increases.

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PAGE 6, Wednesday, August 7, 2019

THE TRIBUNE

A BANK employee counts US dollar banknotes next to stack of 100 Chinese yuan notes at a bank outlet in Hai’an in eastern China’s Jiangsu province yesterday. China’s yuan fell further yesterday against the US dollar, fueling fears about increasing global damage from Beijing’s trade war with President Donald Trump.

TRADE WAR TENSIONS EASE A BIT AS CHINA STABILIZES CURRENCY BEIJING Associated Press

TENSIONS between the US and China over trade subsided a bit, giving US investors a reason to wade back into stocks after a big sell-off a day earlier. Still, experts worried that recent actions taken by the two sides presage a prolonged battle over trade that could slow global economic growth. China stabilised its currency yesterday, suggesting it might hold off from aggressively letting the yuan weaken as a way to respond to US tariffs on Chinese goods. That came a day after Beijing sent financial markets tumbling by allowing the currency to fall to an 11-year low against the dollar. A weaker yuan can help neutralise US tariffs on Chinese goods by making them more price-competitive on international markets. The Chinese currency declined to 7.0562 to the dollar before strengthening back to 7.0264. The US Treasury Department on Monday

officially declared that China improperly manipulates the yuan’s value just hours after President Donald Trump accused China of currency manipulation. American officials have long complained that a weak yuan makes China’s export prices unfairly low, hurting foreign competitors and swelling Beijing’s trade surplus. The designation could open the way to possible new penalties on top of tariff hikes already imposed on Chinese goods in a fight over Beijing’s trade surplus and technology policies. Things were calmer yesterday. After falling 3% on Monday, the S&P 500 index rose 1.3% — its first gain in seven days. The Chinese central bank governor, Yi Gang, had tried to reassure markets, promising in a statement “not to use exchange rates for competitive purposes”. The central bank is “committed to maintaining the basic stability” of the yuan “at a reasonable and balanced level,” Yi said. In the US, Trump and economic adviser Larry Kudlow made the case that

the US economy is in a better position to withstand a trade war. “I think China is getting hurt significantly (by the trade dispute), much more than we are,” Kudlow said on financial network CNBC. But relations remain tense between the two countries and economists and analysts fret about the impact on the economy. Analysts at Capital Economics wrote yesterday that the recent tit-for-tat “illustrates how rapidly tensions are escalating and suggests that a resolution to the trade conflict is further away than ever”. The Capital Economics analysts estimate that if the 10% tariffs Trump plans to impose on $300bn in Chinese goods next month were to eventually rise to 25%, US economic growth would be reduced by 0.4 percentage points. The US economy grew at an annual rate of 2.1% in the AprilJune quarter. The US and China are scheduled to resume trade talks in September in Washington.

MARKET REPORT www.bisxbahamas.com

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TUESDAY, 6 AUGUST 2019

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ALL SHARE INDEX: CLOSE: 2,179.82 | CHG: -0.02 | %CHG: 0.00 | YTD: 70.37 | YTD%: 3.34 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 20.91 7.00 5.92 2.60 2.00 3.00 11.75 6.17 4.64 12.50 2.74 2.41 10.00 7.10 15.60 9.00 3.75 14.00

52WK LOW 3.50 19.17 4.90 4.02 1.00 0.19 2.00 9.17 6.13 3.54 8.59 2.35 1.75 7.51 6.10 11.25 6.20 3.01 13.00

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

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

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 Fidelity Bank Class A Focol Class B

CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB

PREFERENCE SHARES

1.00 10.00 1.00

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

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

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)

LAST CLOSE 4.19 17.43 6.00 5.92 2.49 1.80 2.18 11.05 6.16 4.43 9.02 2.83 2.40 10.17 7.00 15.45 9.00 3.41 14.00

CLOSE 4.19 17.43 6.00 5.92 2.49 1.80 2.18 11.05 6.16 4.43 9.02 2.79 2.40 10.18 7.00 15.45 9.00 3.41 14.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.04 0.00 0.01 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00

CLOSE 100.00

CHANGE 0.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.00 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

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

VOLUME

25,000

VOLUME

EPS$ 0.240 0.932 1.760 0.323 0.098 0.000 -0.438 0.708 0.480 0.184 0.627 0.102 0.467 0.000 0.611 0.743 0.939 0.203 0.631

DIV$ 0.160 1.260 0.000 0.250 0.000 0.020 0.000 0.720 0.220 0.120 0.000 0.068 0.060 0.328 0.240 0.540 0.200 0.120 0.600

P/E 17.5 18.7 N/M 18.3 N/M N/M -5.0 15.6 12.8 24.1 14.4 27.4 5.1 N/M 11.5 20.8 9.6 16.8 22.2

YIELD 3.82% 7.23% 0.00% 4.22% 0.00% 1.11% 0.00% 6.52% 3.57% 2.71% 0.00% 2.44% 2.50% 3.22% 3.43% 3.50% 2.22% 3.52% 4.29%

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

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

INTEREST Prime + 1.75%

MATURITY 19-Oct-2022

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%

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

MUTUAL FUNDS 52WK HI 2.25 4.29 2.06 191.61 158.55 1.62 1.76 1.70 1.15 7.72 8.97 6.77 11.25 12.14 10.63 10.00 8.69 11.79

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.56 1.68 1.64 1.08 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

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 Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

NAV 2.25 4.29 2.06 191.61 158.33 1.62 1.76 1.70 1.15 7.72 8.97 6.77 11.25 12.14 10.57 9.92 8.68 11.38

YTD%12 1.86% 1.25% 1.35% 3.85% 7.12% 1.57% 0.99% 1.32% 3.22% 3.25% 3.82% 2.59% 8.44% 3.87% 1.84% -0.71% 7.40% 10.20%

MTH% 3.97% 4.23% 2.73% 6.28% 2.08% 4.58% 4.25% 4.12% 5.64% 6.65% 8.36% 4.81% 0.78% 4.17% 2.29% 0.16% 2.70% 1.30%

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

NAV Date 30-Jun-2019 30-Jun-2019 28-Jun-2019 30-Jun-2019 30-Jun-2019 30-Apr-2019 30-Apr-2019 30-Apr-2019 30-Apr-2019 30-Jun-2019 30-Jun-2019 30-Jun-2019 30-Jun-2019 30-Jun-2019 30-Jun-2019 30-Mar-2019 30-Mar-2019 30-Mar-2019

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, REGYNA TARANZA MEDLEY, of #16 Rosena Drive, Faith Gardens, Freeport, Grand Bahama, Bahamas, Mother of JAMIAH VICTORIA THACKER, a minor, intends to change her name to JAMIAH VICTORIA MEDLEY. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas, no later than thirty (30) days after the date of publication of this notice.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, LASHONDRA LACARA CHRISTIN CURRY Avocardo Street, Pinewood Garden, New Providence, Bahamas intend to change my name to CHANNAH ISRAEL. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, New Providence, Bahamas no later than thirty (30) days after the date of publication of this notice.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, Samuel Arty, Alexandria Blvd, New Providence, Bahamas intend to change my name to Samuel Levi Israel. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, New Providence, Bahamas no later than thirty (30) days after the date of publication of this notice.

THE TRIBUNE

Wednesday, August 7, 2019, PAGE 7

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PAGE 8, Wednesday, August 7, 2019

THE TRIBUNE

Trump’s tariffs could blot out positive economic story

NEW YORK Associated Press

WASHINGTON Associated Press JUST last week, solid economic numbers appeared to be helping President Donald Trump’s reelection prospects. The United States had achieved its longest economic expansion. Stock prices were climbing. Job gains were steady. Consumers had scaled up spending. Growth was sturdy enough to presage a second term for a conventional president, according to election forecasts based on the economy. But Trump was not content to play it safe. He chose to magnify the trade war with China and almost instantly destabilised the economy in ways that could hurt his 2020 chances if the conflict persists. Stocks tanked in response to his planned 10% tax on $300bn of Chinese imports. Retailers warned of price hikes. The value of the Chinese currency fell and the spillovers from that could weaken US growth. For the first time after six days of sell-offs, investors yesterday were catching their breath to consider the uncertain path ahead from an inflamed trade war between the world’s two largest economies. Part of the challenge is that the president’s penchant for uncertainty — the opposite of what investors seek — makes it difficult to know just how much risk Trump is taking with an election 16 months from now. But what is clear is that the range of possible outcomes for the economy is greater than they were a week ago. “The more that you deepen or broaden this conflict, the greater the risk of misunderstandings, miscalculations and unintended consequences,” said Mike Ryan, chief

Disney results miss as Fox studio business underwhelm

DAVE Daniels stands in front of some of his 575 dairy cows on his farm in Union Grove, Wis, yesterday. He voted for President Donald Trump, and says he’s frustrated to be a political pawn in the trade war. He was disappointed to hear China decided to halt purchases of US farm products but he’s happy the two sides are still talking. He says the trade war so far hasn’t affected his support for President Trump, but “We’ll see what happens in the next few months”. Photo: Carrie Antlfinger/AP investment officer at Americas for UBS Global Wealth Management. Among the many possibilities: Trump might be able to strong-arm China into a trade agreement that favors the United States; he might suffer politically if the tariffs hurt US farmers, manufacturers and consumers; he might agree to a cursory deal and hope to ride a stock market rally to reelection; or, he could be setting up a global recession that could eventually engulf the United States. Larry Kudlow, director of the White House National Economic Council, provided little clarity yesterday about the new tariffs that are to be implemented Sept 1. The Trump administration already has a 25% tax on $250bn worth of Chinese imports in addition to the upcoming tariffs. Kudlow told CNBC the tariffs “might get worse” if the trade talks scheduled for next month flounder or they might be delayed if progress

is achieved. The president’s chief economic adviser acknowledged that China might simply try to endure the tariffs on the hopes that Trump loses in 2020 and the taxes are lifted by his Democratic successor. “China can wait, that’s up to them,” Kudlow said. “But I think they will continue to do great damage to their economy. The American economy is very strong. Theirs is not.” Increasingly, the administration’s actions on China are driven by the president himself, with Trump taking more control of the direction of the negotiations and retaliations. Trump, aides and advisers said, is caught between a desire to maintain the appearance of toughness toward China and the political and economic realities of an elongated trade war. While the president says that the Chinese economy is paying a steeper price than the United States, he is acutely aware of the

political risks of a downturn. In recent weeks Trump has adopted a two-pronged message. He is insisting that China badly wants a deal, but he also is the one holding out for more on behalf of the American people, and he is claiming China is looking to wait-out his administration so he’ll keep increasing pressure. White House aides suggested that the diametrically opposite arguments reflected the twin audiences of the president’s public statements, namely Chinese negotiators and his political base. The reality, they said, is somewhere in the middle, with the president looking to find the quickest off-ramp from the trade war that doesn’t allow him to be portrayed as weak — competing priorities that may not be reconcilable in the short term. Nor is the situation under Trump’s control because China could easily retaliate and apply direct pressure on US companies.

DISNEY is feeling some pain from its biggest transformation in decades as its acquisition of Fox’s entertainment businesses contributed to a 39% drop in earnings. CEO Bob Iger said one of the biggest issues affecting earnings was underperformance at the Fox movie and TV studio. Yesterday’s results, the first complete quarter with Fox’s businesses included, missed Wall Street’s expectations. Disney’s shares fell 3% in aftermarket trading. The Fox studio was “well below where we hoped it would be when we made the acquisition,” Iger said during a conference call with analysts. Particularly underperforming was “Dark Phoenix”, a Fox X-Men movie that failed to find its audience. That offset box office successes such as “Avengers: Endgame”. Disney completed its $71bn acquisition of Fox’s entertainment business in March, putting “Cinderella”, “The Simpsons”, “Star Wars” and “Dr Strange” under one corporate roof. The deal paved the ways for Disney to boost its streaming ventures, with the addition of Fox videos. In May, Disney also gained full control of Hulu after Comcast sold its stake in the streaming service. Iger said it would be two years before Disney can have an impact on the Fox films in production. “We’re all confident that we’re going to be able to turn around the fortunes of Fox live action and you’ll see those results in a couple of years,” he said. Disney also spent more money on its ESPN Plus and upcoming Disney Plus streaming services. And its

results were hurt by taking control of Hulu, including a $123m charge as it lowered its estimated valuation of the service. Disney said yesterday that it will offer its three streaming services in a package for $13. Hulu now costs $6, and ESPN Plus costs $5. The upcoming Disney Plus service will cost $7. So the package will represent a $5 savings. Disney is making the package available Nov 12, the same day Disney Plus is launching. Disney is turning to its own streaming services to compete with Netflix as people drop traditional cable services, and Disney loses revenue from its ESPN and traditional channels. Iger said Disney Plus won’t have as much video as rivals such as Netflix might have, but it will have quality, including launching with eight “Star Wars” movies, 18 Pixar movies, 70 Disney animated movies, 240 Disney live action movies and 7,500 episodes of Disney TV. The service will launch with four Marvel movies, with eight more to come during its first year. For the fiscal third quarter, which ended June 29, net income fell to $1.76bn, from $2.92bn last year. Excluding one-time items, net income totaled $1.35 per share. Analysts surveyed by FactSet expected net income of $1.72 per share. Revenue rose 33% to $20.2bn from $15.2bn, short of the revenue of $21.4bn analysts expected.

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