MONDAY, SEPTEMBER 5, 2016
business@tribunemedia.net
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Govt ‘legislating us out of business’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
The Government’s latest proposed labour law amendments have been slammed as “irresponsible governance”, a well-known businessman warning: “Don’t legislate the private sector out of business.” Robert Myers, a principal in newly-formed civil society group, the Organisation for Responsible Governance (ORG), urged the Christie administration and trade unions to focus on making the economy more competitive instead of “going after business”.
New labour law reforms ‘irresponsible governance’ Proposals ‘another nail in private sector coffin’ Improve competitiveness to better protect workers He argued that doing so would have a far greater impact on “improving job security” than
the measures the Government is seeking to push through the National Tripartite Council and Parliament in the wake of Sandals’ mass termination exercise. The Department of Labour served notice of the Christie administration’s intentions to the other two sides represented on the Tripartite Council - the private sector and the trade unions - via a notice issued to them on August 30. The Christie administration wants to make it mandatory for employers to provide two months’ (60 days) notice to itself and the relevant bargaining agent (trade union) whenever See pg b6
Govt, unions told: ‘Businesses are not unlimited money pits’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Chamber of Commerce’s chairman has warned the Government and trade unions that “destroying businesses” will render talks on worker protection and benefits “moot”, as there will be no jobs for them to fill. Gowon Bowe urged both the Christie administration and worker representatives to realise that Bahamian companies “are not bottomless pits of money”, and that there was a limit to how much regulation and costs they can absorb. The Chamber chief also called on the Government to avoid a “knee jerk” response to Sandals’ mass termination of its 600-strong workforce, given that any legislative action was likely to produce “unintended consequences” for the private sector and wider economy. Mr Bowe spoke out amid increasing private sector concern over the “emergency” labour law reforms that the Government wants to bring to the House of Assembly by September 30, in direct response to the See pg b5
Chamber chief: Destroy business and there’s no jobs Warns on ‘knee jerk’ reaction to Sandals situation Says Govt ‘not so naive’ as to force law reforms
Gowon Bowe
Web shop wants GBPA to ‘rescind’ licensing demand Chances seeks January 25 letter ‘clarification’ Wants Port to recognise Gaming Board’s authority Chain’s expansion plan dependent on resolution By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Robert Myers
BOB trading bandwidth is increased 54% By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The bandwidth in which Bank of the Bahamas shares can trade on BISX has been expanded for the second time in less than two months, this time by 54 per cent, amid alterations to its $40 million rights offering. The Bahamas International Securities Exchange (BISX) quietly informed broker/dealers of the change in trading policy last week, Tribune Business can reveal, although it gave no formal notification to the wider investing public. Several capital markets sources confirmed to this newspaper that Bank of the Bahamas shares are now being allowed to trade at prices up to 54 per cent away from the previous day’s closing price, compared to the nor-
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Second such BISX move in two months Govt likely to own 80-90% after rights issue mal ‘10 per cent bandwidth’ that BISX permits for its listed stocks. “There was an announcement sent out a couple of days ago to the brokers,” one source, speaking on condition of anonymity, confirmed. No explanation has been forthcoming, either from BISX or the Bank of the Bahamas, as to why the latter’s stock price is being allowed to fluctuate so widely - a major departure from the stock exchange’s normal policy. See pg b4
A web shop operator is demanding that the Grand Bahama Port Authority (GBPA) “rescind” a letter requiring it to apply for a provisional gaming licence, and accept the Gaming Board’s regulatory jurisdiction in Freeport. Carlson Shurland, who represents Jarol Investment, trading as Chances Games, told Tribune Business that “the only thing” dividing his client and the GBPA was the latter’s January 25, 2016 letter. In that document, Freeport’s quasigovernmental regulator demanded that Chances Games apply to it for a provisional gaming licence, adding that its authority stemmed from the Gaming Act 2014 and accompanying regulations. Fred Smith QC, the GBPA’s attorney, subsequently admitted in an August 31, 2016, letter that his client had been “incorrect” in stating that the lawful basis for its licence request stemmed from the Gaming Act. Instead, he asserted that the GBPA’s licensing authority was derived from the Hawksbill Creek Agreement, and made no mention of his client withdrawing its January 25, 2016, letter. Chances Games fears that without the GBPA confirming the withdrawal of that letter, and its contents, the issue is left open to further conflict in the future, potentially exposing its Freeport operations to ‘double regulation and taxation’. And the web shop chain is warning that its business development and expansion plans are “entirely and directly dependent” on resolving its dispute with the GBPA over the provisional gaming licence. Speaking ahead of today’s Judicial Review hearing on the matter, Mr Shurland accused Mr Smith of “dwelling on See pg b5
CCA sticking with Baha Mar ‘lock out’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Baha Mar’s main contractor is sticking to its position that it cannot produce documents for a New York court case because it remains “locked out” of its offices at the $3.5 billion project site. Michael Guiffre, China Construction America’s (CCA) US attorney, asserted that his client was unable to produce documents for ‘legal discovery’ “because it has been locked out of its project offices since June 2015”. Attorneys for Controlled Demolition Inc (CDI), a US sub-contractor that is demanding CCA (Bahamas) pay it an alleged outstanding $754,704 balance for work completed on the $3.5 billion project, have accused the Chinese state-owned company of employing this as part of “stonewalling” tactics. Mr Guiffre, though, denied this in an August 22, 2016, letter, and argued that CCA was “only capable of producing documents in its possession, custody, or control; it cannot produce what it does not have”. “Defendant [CCA] stored most of its hard copy and electronic data relating to the project at its project site offices,” he added. “Defendant has repeatedly explained that it does not have access to these documents because it has been locked out of its project offices since June 2015, when the project owner [Sarkis Izmirlian] filed its bankruptcy petition.
Congratulations
Couldn’t access offices as late as late August But now remobilising for Baha Mar completion “Far from seeking to ‘stonewall’ discovery, [CCA] has sought to overcome the hurdles presented by its lack of access to its project offices. Defendant is continuing its efforts to identify alternate sources of responsive documents, and it believes that it has additional e-mail data which may contain responsive documents. Defendant is working to produce any additional responsive documents before the president of the company is deposed by plaintiff [CDI] in September.” Document discovery is a key part of the legal process, as it enables all parties to obtain and exchange evidence that is relevant to their respective cases. And many observers are likely to be suspicious of CCA’s assertions that it remains ‘locked out’ of its offices at the Baha Mar project site, given recent developments involving the $3.5 billion investment. Given that CCA has now signed an agreement with Baha Mar’s secured lender, the China Export-Import See pg b4
TO OUR FLMI DESIGNEES FamGuard congratulates our Fellow, Life Management Institute (FLMI) designees. The Fellow, Life Management Institute (FLMI) program is a 10-course professional development program that provides an industry-specific business education in the context of the insurance and financial services industry. Our designees received an allexpenses-paid trip to attend this years’ LOMA Annual Conference and Conferment in Las Vegas, Nevada.
Shawnette Roye Senior Manager, Group Operations, BahamaHealth
Michelle Butler Manager II, Payments Processing, Operations
Rontia Ingraham Quality Control Administrator, BahamaHealth
Stacy Dean Accountant III, Financial Services, Finance
Amanda Musgrove Group Underwriting Assistant, BahamaHealth
Franklyn Wells Senior Administrative Coordinator, FGIAB
Cherrill Johnson Receptionist, BahamaHealth
NASSAU I FREEPORT I ABACO I ELEUTHERA I EXUMA I www.famguardbahamas.com