WEDNESDAY, SEPTEMBER 7, 2016
business@tribunemedia.net
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PM gets last chance to avoid ‘shut down’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Thursday meeting ‘critical’ for trade union action
The Prime Minister’s meeting with trade union leaders tomorrow is “critical” in determining whether the labour movement will make good on threats to “shut the town down” in response to numerous alleged grievances. Obie Ferguson, the Trades Union Congress (TUC) president, yesterday expressed dissatisfaction with Monday’s meeting between the unions and Mr Christie, saying the outcome was “not good at all”. He explained that rather than directly addressing the union movement’s specific grievances, the Prime Minister and other government officials merely en-
TUC chief: ‘We can’t let Sandals get away’ List Melia, Water Corp and other grievances Obie Ferguson gaged in a “general discussion” of the issues, with “nothing definitive” settled. Indicating that the trade unions were prepared to give the Government one last opportunity to satisfactorily respond to a variety of industrial matters,
Mr Ferguson said they were due to meet with Mr Christie and his advisers again tomorrow. He warned that “Thursday is a very critical day” in terms of determining the trade union movement’s next step, and hinted that some form of co-ordinated
industrial action may soon occur with the words: “We’re going to do what we have to do.” Apart from Sandals’ recent termination of its 600-strong workforce, Mr Ferguson said labour-related issues at the Melia Nassau Beach and Grand Lucayan resorts, Cable Bahamas, and outstanding industrial agreements for Water & Sewerage Corporation middle management and high school principals, were high on the unions’ agenda. “What we are saying now, the joint labour movement, is that we are insisting these matters be resolved as a matter of urgency,” the TUC president told Tribune Business. “We are committed to doing what we have to do. If it’s necessary, we’ll shut the town down. See pg b2
Automatic tax exchange set for October discuss By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
K. Peter Turnquest
Dionisio D’Aguilar
Baha Mar sceptics challenge Chinese ‘goodwill gesture’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Sarkis ally: ‘Won’t do something for nothing’
Efforts to market Baha Mar creditor payouts as “a goodwill gesture” by its secured creditor were challenged yesterday, a key Sarkis Izmirlian ally saying: “The Chinese don’t do something for nothing.” Dionisio D’Aguilar suggested that “every Bahamian will laugh” See pg b5
Claims process excludes CCA sub-contractors Non-employees have 10 days to submit paperwork
Surplus banking liquidity at $1.6bn By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Excess liquidity in the Bahamian commercial banking system increased by $271.3 million in the year to end-July 2016, with the new $1.586 billion high illustrating the continuing difficulties in finding suitable borrowers. The Central Bank’s report on July’s economic developments showed that surplus liquid assets rose by $76.26 million that month, a 41.5 per cent increase upon the $53.89 million growth in July 2015. And for the 12 months to end-July 2016, they grew at a pace 24 per cent higher than the expansion for the same period length the year before. “Bank liquidity is poised to remain at robust levels, as the softness in domestic demand and sustained conservative lending practices continue to restrain credit growth,” the Central Bank said with deft understatement. The huge ‘overhang’ in excess liquid assets in the Bahamian commercial banking system also helps to explain why deposit rates are so low, pushed down by an expanded money supply. “External reserves firmed by $4.5 million to $1.058 billion, after a similar $6 million gain a year-earlier,” the Central Bank added, with the 12-month figures showing a more robust $249.36
Grows $271.3m in 12 months to end-July Pushes deposit rates down amid lack of borrowers million increase compared to $177.34 million the year before. As for credit quality in the Bahamian commercial banking system, ‘bad loans’ remained relatively stable compared to their June levels. “In July, total private sector loan arrears expanded by $13.2 million (1.2 per cent) to $1.121 billion, and by 15 basis points to 18.8 per cent of total private sector loans,” the Central Bank said. “Underlying this outturn, the non-performing component - loans in excess of 90 days in arrears - rose by $8.3 million (1 per cent) to $851.7 million, and by nine basis points to 14.3 per cent of the aggregate. “Similarly, short-term delinquencies (31 to 90 days) firmed by $4.9 million (1.8 per cent) at $269.6 million, resulting in a seven basis points uptick in the attendant ratio to 4.5 per cent of total private sector loans. For the year-over-year comparisons, the total arrears rate stood 1.2 percentage See pg b7
The Bahamian financial services industry is hoping to start consultation on the proposed legislative regime for automatic tax information exchange by next month, as it bids to remain “the destination of choice” in the Western Hemisphere. Tanya McCartney, the Bahamas Financial Services Board’s (BFSB) chief executive, told Tribune Business that implementing the Common Reporting Standard (CRS) for automatic tax information exchange would not undermine this nation’s competitive position. She based this on the fact that more than 90 countries, including the world’s most developed nations and the Bahamas’ international financial centre (IFC) rivals, had committed to the initiative,
Financial sector hopes CRS regime set by year-end Minister ‘confident’ 2018 implementation will be met Bilateral approach ‘more suited’ to tax system thus ensuring a ‘level playing field’. And, while some have questioned whether the Bahamas can implement the CRS on a bilateral - as opposed to multilateral - basis, Ms McCartney said key IFC competitors such as Hong Kong and Singapore were See pg b4
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BEC Main Branch
Brace for post election rise ‘to save’ BPL Ex-minister: Energy tariffs to rise ‘no matter’ winner Says politicians ‘lack guts’ to come clean on woes PowerSecure a ‘scapegoat’ without $650m bond By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Bahamians were yesterday warned to brace for electricity rate rises after the 2017 general election “no matter who the Government is”, a former Cabinet Minister arguing this was “essential to save” Bahamas Power & Light (BPL). Phenton Neymour, who had ministerial responsibility for the then-BEC under the Ingraham administration, told Tribune Business that current politicians “lacked the guts” to come clean with the public on the extent of BPL’s problems. Suggesting that the Government did not know the true cost of fixing BPL’s woes, and implying that it might be more than the $650 million targeted in the proposed rate reduction bond (RRB) issue, Mr Neymour said the failure to place this had effectively handicapped the utility’s new manager. He argued that PowerSecure International was effectively being employed “as a scapegoat and excuse” for BPL’s problems, having been denied the necessary authority to introduce the reforms necessary to turn the energy monopoly around. Mr Neymour also blamed a “lack of planning” by the Christie administration for the failure to bring BPL’s latest rental generators online, as it had not provided enough connections to meet the increase in their usage. See pg b4
PAGE 2, Wednesday, September 7, 2016
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BTVI chief highlights technology demands
Anwar McCartney is the newly-appointed finance administrator for NewCo2015.
New mobile operator names finance overseer NewCo2015 yesterday announced the appointment of Anwar McCartney as its finance supervisor. His responsibilities will include overseeing the company’s financial operations by monitoring and approving financial processing, reporting and auditing. “We are dedicated to the successful launch of NewCo2015. To accomplish this, we require the best industry professionals,” said Franklyn Butler, NewCo2015’s chairman. “Anwar McCartney’s appointment is a reflection of this mandate. He has vast experience in financial services, is certified as a public accountant and is also an internal auditor. “We are extremely excited to add more Bahamian talent to our team, and remain committed to making NewCo a company for the people by the people.” Mr McCartney added: “I am excited to be a member of the team. NewCo is devoted to excellence and I am proud to be a part of that. With our combined efforts we are well on our way to making history. “As finance supervisor I am eager to help build a department that is transparently accurate.”
The Bahamas Technical and Vocational Institute’s (BTVI) president believes it has a vital role to play in eliminating the workforce ‘skills gaps’ that are undermining this nation’s economic competitiveness. Dr Robert W. Robertson told the Florida Society of Human Resource Management (SHRM) conference that employers were now demanding workers who were familiar with technology- not just technical skills. “To stay competitive, candidates need to be able
Dr Robert W. Robertson
PM gets last chance to avoid ‘shut down’ From pg B1 TUC, National Congress of Trade Unions (NCTU) and their affiliates do not get their way, is likely to receive a cold response from both employers and the Government. With the Bahamian economy, and many businesses, still struggling to recover some eight years later from the 2008-2009 recession, any workplace-related disruption only threatens to create further unwanted financial losses. Many observers are also likely to ask what more can the trade union movement want, given the Government’s efforts to bend over backwards to appease it, and give into its demands, with the proposed labour law reforms in the wake of the Sandals terminations. Mr Ferguson, though, told Tribune Business that the trade unions were determined “not to let Sandals get away”, especially given the backing they had re-
ceived for their stance from the wider Bahamian community. “We cannot let Sandals get away,” he insisted. “What happened was a violation in our view, not only of the terminated workforce but of the trade unions, the country and all Bahamians. “Those workers are responsible for this resort being the flagship hotel for Sandals. They’ve won every award possible for tourism in the last 20 years. “How can you wake up one morning and decide to terminate the entire workforce? We can’t accept it. If it happens with Sandals, it will happen with every union. This is why the labour movement is united. We cannot sit down and idly let it happen.” Mr Ferguson argued that the normal procedure for dealing with planned worker terminations, as in the case of Sandals, was for the employer to inform, then consult with, both the
to adapt to new tools and trends - such as the cloud, mobile development and Big Data,” he said. “In fact, a ‘must-have’ tech skill when hiring someone really involves being able to troubleshoot your own technical issues.” During his presentation, Dr Robertson noted both the high youth unemployment rate in the Bahamas and business complaints about workers who lacked basic competencies and skills. “Indeed, there are many jobs going unfilled as em-
ployers in many countries simply cannot find the right skill sets in applicants,” said Dr Robertson. According to the Bahamas’ May 2016 Labour Force Survey: “Unemployment among youths (persons aged 15-24) continued to be considerably higher than any other age group, which is common to most countries.” Dr Robertson acknowledged that workforce skills gaps were a global concern, and not just confined to the Bahamas. He added that partner-
ships between industry and government were important in guiding programmes that develop workforce skills, and suggested that apprenticeships, flexible course modules and online learning could deliver more effective training. Dr Robertson was addressing the topic, ‘Building local talent in a globally competitive economy’. The annual conference attracted more than 4,000 delegates, with Dan Rather, managing editor and anchor of the television news magazine, Dan Rather Reports, acting as the keynote speaker.
recognised bargaining agent and the Ministry of Labour. However, Sandals said it has acted according to the Employment Act in handling the workforce terminations. Given that the expired hotel industry industrial agreement, together with its lay-off provisions, was no longer in effect, the hotel chain said terminations were effectively the only course of action open to it. Meanwhile, Mr Ferguson said the trade unions’ ‘shut down’ threat was “the only logical, natural consequence” if the Government failed to fully address the movement’s demands. “He said that he’s going to meet with us on Thursday, at which time he will specifically address these issues,” the TUC president said of Mr Christie. “The Sandals, Melia and Water & Sewerage matters will be specifically addressed, along with the Grand Lucayan, Cable Bahamas and the education management union representing school principals.” And Mr Ferguson warned: “If we cannot re-
solve it, the rest of it is academic. There will be a shut down. The foundation should be there to resolve it, but we can’t regress; we can’t go back.” Dealing with some of the unions’ specific grievances, Mr Ferguson said their issues with the Melia revolved around the ability of the Bahamas Hotel, Catering and Allied Workers Union (BHCAWU) to gain access to its members on the property. The union received a certificate of recognition, acknowledging that it was the bargaining agent for Melia line staff, earlier this month. Nicole Martin, its president, said the union needed to be able to access the resort property to “go in and bargain on behalf of the workers for things that come up on a daily basis”. Mr Ferguson added: “A union should have access. It’s a constitutional right to have access to your members. The hotel union should be allowed to do that.” As for the Water & Sewerage Corporation, the TUC president said it was refusing to execute an in-
dustrial agreement with its middle management union unless changes were made to the Article 29 clause dealing with outsourcing. Mr Ferguson said this clause was “not a part of the negotiation”, and had already been agreed, but the Corporation now wanted to change it following a Supreme Court ruling earlier this year that found it violated the ‘90-day exclusivity’ period granted to Water and Sewerage Management Union (WSMU) members to bid on all outsourcing contracts. “We are calling on the Prime Minister to execute that agreement forthwith, and not include things that are not relevant to the execution of that agreement,” Mr Ferguson said.
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Wednesday, September 7, 2016, PAGE 3
Bahamian cargo airline launches
A newly-formed Bahamian cargo airline has obtained US regulatory approval to provide services to this nation from south Florida. Junkanoo Air is providing services between the US, the Bahamas and surrounding countries such as Turks and Caicos, Haiti and
Cuba. Captain Christopher King, its president and an airline pilot for more than 10 years, launched Junkanoo Air tofillwhat he perceived as a gap in the cargo/ logistics market. C “We’re a Bahamian company, so we know the specific needs of other Baha-
mian companies,” he said. “To borrow a line from our national flag carrier, Bahamasair: ‘We don’t just fly here. We live here’,” Captain King said. “Bahamian businesses are poised to expand, with the ability to have supplies flown to the Bahamas within hours as opposed to tak-
ing days with boats. Interisland commerce can take off now.” Junkanoo Air said it has developed specific shipping and logistical solutions for: * Freight forwarders * Pharmacies (transporting time-sensitive equipment/medication)
* Hospitals, clinics and medical labs (test results, equipment transport) * Cargo transport * Dangerous goods transportation * Government agencies * Passenger airlines * Human remains * Perishable goods
“One of our driving goals is to make air cargo transport more affordable and accessible for businesses in the Bahamas,” said Captain King. “Our multi-aircraft fleet allows us to be dependable and reliable for the companies who need it most.”
Water Corp films new ad campaign Photos/courtesy of Barefoot Marketing
The Water and Sewerage Corporation (WSC) has filmed a new series of commercials for its ‘customer win back’ campaign.
Photo/courtesy of Bahamas Visual Services, for Barefoot Marketing
PUBLIC NOTICE
Top: BEC employee, Norman Forbes, will also be featured in the new videos. He is seen here speaking with the Keen I Media film crew on why he made the switch from well water back to city services. Bottom left: Eastern New Providence customer, Andrew Nixon, a senior officer at the Department of Corrections, was featured playing his guitar during the shooting of the new series of TV ads. Bottom Right: Shirley Johnson rounded out the trio of testimonial ads for WSC’s new campaign. Mrs. Johnson said she was compelled to share her story because she “was in the dark before with a well”.
Would the owner of a white 30ft homemade fiberglass hull boat located in Drigg’s Hill South Andros, on Lot #1 of Flowers Estate please contact Percitta Knowles at 369-1466/4710981./369-4569 in reference to removing said item. Storage fee @ $150.00 will be charged everyday for duration of Notice and thereafter. If no contact is made, the owner of the property reserves the right to dispose of the boat. Whether it be by removal of the boat from the property or sale of the boat for all cost incurred.
PAGE 4, Wednesday, September 7, 2016
Automatic tax exchange set for October discuss From pg B1 also going this route. “We are working along with the Government to ensure it’s in place by the end of the year,” the BFSB chief executive said of the Bahamas’ legislative and regulatory framework for implementing CRS. “A working draft being completed and an outline prepared. “Once that is done, active consultations will begin. In an ideal world, that will begin in October.” Ms McCartney said that following industry feedback, the Government and
private sector were targeting year-end 2016 to have the framework in place and the accompanying legislation completed, if not passed. “That is what the Government and industry are working on,” she added. “That’s our collective objective. There is a real commitment on both the public and private sector side to get this done in the shortest possible time.” The Bahamas has given a commitment to the Organisation for Economic Co-operation and Development (OECD) that it will implement the CRS (and
Brace for post election rise ‘to save’ BPL From pg B1 He suggested that the Government’s goal had been “to survive these summer months” without too many blackouts, and associated public complaints, and reach the next general election without too much fallout in the voting booths. “After the next general election, the Bahamian people must prepare themselves for a rate increase at BPL,” Mr Neymour told Tribune Business. “It is one of the things that will help to save
BPL. “There will be a rate increase shortly after the election. It will be a necessity. No matter who the Government is, that rate increase will be necessary to save the life of BPL.” BPL’s chief executive, Pamela Hill, shortly after her appointment proposed a “modest” base rate increase for customers who consumed more than 400 kilowatt hours per month. However, this was rejected by the Christie Cabinet,
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the automatic exchange of tax information) in 2018. Hope Strachan, minister of financial services, yesterday said in a statement that she was “confident” the Bahamas will meet the 2018 implementation deadline, having made good progress to-date. The Ministry of Financial Services is leading the CRS effort in conjunction with the Ministry of Finance, the Attorney General’s Office,the BFSB and other private sector stakeholders. Legislation, regulations and guidance notes have already been benchmarked - both regionally and internationally - for the CRS implementation. Ms McCartney said the Bahamian financial services
industry’s preparation for CRS would only begin in earnest once the legislative and implementation framework was known, thereby giving it the ‘rules of the game’. She added, though, that compliance with the US Foreign Account Tax Compliance Act (FATCA) had given the sector an idea of what to expect in terms of the processes and mechanisms involved in automatic information exchange. The Bahamas will now have to do this with multiple countries, not just the US, and Ms McCartney said this nation had elected to implement this on a bilateral - country to country - basis rather than a multilateral one (dealing with all-com-
ers). “The Bahamas is not alone in going the bilateral route,” Ms McCartney told Tribune Business, pointing to Hong Kong and Singapore. “We opted for this route because multilateral is geared towards developed countries with direct taxation. In the Bahamas, we don’t have those, and bilateral was more suited to our tax regime.” Ms McCartney said the OECD’s Global Forum had approved the use of both bilateral and multilateral approaches for CRS implementation. Mrs Strachan’s predecessor as minister of financial services, Ryan Pinder, in 2014 warned that imple-
menting CRS on a multilateral basis would impose an impossible administrative and cost burden on small jurisdictions such as the Bahamas. He also warned that it could expose the Bahamas, and its financial services industry’s clients, to nations where their tax information would be used improperly or shared with the wrong people. This, in turn, could jeopardise the safety and security of clients. However, Ms McCartney said yesterday that all countries seeking to exchange tax information automatically with the Bahamas would have to meet the OECD’s data security and protection standards, thereby easing Mr Pinder’s concerns.
with V Alfred Gray, minister of agriculture and fisheries, subsequently telling the House of Assembly that the Government wanted electricity rates to come down, not go up. The rates referred to by Ms Hill and Mr Neymour are BPL’s ‘base rate’ tariff, not the fuel surcharge. The latter effectively acts as a ‘pass through’, where Bahamian business and residential consumers repay the utility’s fuel costs. The ‘base rate’ is the portion of customer bills that is intended to generate enough revenues/cash flow for BPL to cover its operating expenses, such as labour and maintenance, plus gen-
erate its profits. However, BPL’s predecessor, BEC, has consistently generated annual losses of $25 million and more since 2007 - an almost unheard of failing for a monopoly. This suggests BEC, and now BPL, is selling electricity ‘below cost’, and means a rate rise may be justified to place the latter on a sustainable financial footing and get it into profitability. “The problem is this,” Mr Neymour told Tribune Business. “I want to make it very clear. The politicians today do not have the guts to admit to the Bahamian people the extent of the problems at BPL, and what it will take to solve them. “I am very concerned because the PLP is going into an election, and does not want to deliver to the Bahamian people the true cost. I doubt they even know the cost.” Mr Neymour declined to his own estimate for the amount of investment required to turn BPL around, although some observers have suggested that tackling the legacy BEC liabilities - plus upgrading its generation and distribution infrastructure - will cost more than $1 billion. The former minister added that the failure to-date to place the RRB, which was initially pegged at $650 million, had handicapped BPL and its PowerSecure manager financially.
Without the refinancing of BEC’s legacy debts and liabilities, and their removal from its balance sheet via this funding, PowerSecure’s hands are effectively tied on making essential new investments. “I am of the view that PowerSecure, as the management partner, is being used as a scapegoat and excuse for the problems at BPL because of poor decisions by the Government,” Mr Neymour said. “PowerSecure has not been provided with the necessary resources, including funding, and the authority to initiate all the changes they desire to improve the service of BPL. They only serve to buffer public disquiet from the Government. They have not been brought in to manage and improve the infrastructure.” Mr Neymour said the Government needed to “take full responsibility” for BPL’s current service levels (blackouts) and costs, adding that the rental generation capacity about to be installed now should have been secured from last year. He added that the rental units acquired last year were for the winter months, and BPL’s need for more generation capacity this year was “an indication that the assets and generation are in their worst ever condition”. Putting this down to poor planning and management, and a lack of funding, Mr
Neymour said provision had not been made to bring the latest batch of rental generators online. He explained that the former government had planned to use 40-60 Mega Watts (MW) of generation capacity per year, ensuring there would be no “hold ups” in connecting them to the grid. “What is now the case is that they require more than 60 MW of rental generation, so they have to put in additional equipment for the connection for that rental generation, which they didn’t plan to do,” Mr Neymour said. “This has created additional delays in adding rental generation. This is not being explained to the Bahamian people; it is due to the lack of planning. The people are suffering.” Mr Neymour estimated that rental generators were now producing around onethird of BPL’s power load, which in turn was adding to the fuel surcharge burden on Bahamians. This, he explained, was because the rental generators ran on the most expensive fuel type - diesel. “The Bahamian people are not only suffering but their costs have increased,” Mr Neymour told Tribune Business. “What is amazing is that we’re going into the winter months and still need these rental generators.”
THE TRIBUNE
Wednesday, September 7, 2016, PAGE 5
Baha Mar sceptics challenge Chinese ‘goodwill gesture’ From pg B1 at efforts to sell the creditor payouts as such, especially since the ‘sealed’ agreement for Baha Mar’s construction completion prevents them from knowing what the Government gave the China Export-Import Bank in return. And K P Turnquest, the Opposition’s deputy leader, argued that both the bank and Baha Mar’s main contractor, had an obligation to ensure Bahamian creditors were compensated given their actions in the dispute with Mr Izmirlian. Rather than let the developer’s Chapter 11 bankruptcy protection process play out, Mr Turnquest said the Chinese state-owned entities had actively opposed this and ensured its removal, then supported the move to place Baha Mar into provisional liquidation before moving in with their own receivers. Given the key roles both the China Export-Import Bank and China Construction America (CCA) have played in how Baha Mar has reached this point, Mr Turnquest implied that it was only proper that they should seek to help settle creditor claims. Both Mr Turnquest and Mr D’Aguilar were speaking out following yesterday’s launch of the formal process through which Baha Mar’s former staff, plus Bahamian contractors and vendors, can claim the debts owed to them by Baha Mar. The five-person creditor committee appointed to oversee the payout process said all non-employee creditors have just 10 days - until September 16, 2016, in which to gather and submit all the documentary evidence (invoices, statements and purchase orders) to support their claims and the amounts. However, this process only applies to companies who are direct creditors of
Baha Mar and its affiliated companies. Bahamian contractors and vendors who are owed debts by CCA will have to negotiate with the Chinese contractor separately in a bid to obtain monies owed. “Please note that you should only submit a claim if you are owed directly or indirectly by a Baha Mar company as at 31 October, 2015,” the committee said. “For avoidance of doubt this notice does not cover sub-contractors of CCA Bahamas Ltd.” The Baha Mar-related claims have to be submitted either via e-mail or by hand (mail), while the committee will seek to reach out to Baha Mar’s 2,000-plus former employees in a bid to settle their claims for severance pay and other benefits by month’s end. “It is important to note that the Baha Mar companies in provisional liquidation have no funds from which to pay creditors,” the committee said in a notice. “The Bank is offering this special support as goodwill towards the Bahamian people. The bank will shortly place on deposit in the Bahamas certain funds for the work of the committee.” This statement produced further scepticism from persons already critical of the Government’s handling of the Baha Mar project. “This isn’t a goodwill gesture. It’s the fulfillment of an obligation they have in the Bahamas to the country,” Mr Turnquest told Tribune Business, pointing to the China Export-Import Bank’s role in bringing Baha Mar to its current state. “I don’t believe that for one moment,” Mr D’Aguilar added of the ‘goodwill gesture’ description. “We haven’t seen the other side of the deal to see what it has cost us. “This gesture of goodwill, I know every Bahamian will be laughing at that. You
can’t see what the reason for the goodwill is because the documents are sealed. And the devil is in the detail - it’s only the contractors of Baha Mar, not the sub-contractors of CCA. “Let me tell you how this is going to work. The Chinese are not going to give you something for nothing.” Such assertions have, though, been rejected by sources close to the deal between the Government and the China Export-Import Bank. They have routinely pointed out to Tribune Business that the latter is under no obligation, legal or otherwise, to fund compensation for Baha Mar’s former employees, plus Bahamian contractors and suppliers. They have emphasised that Baha Mar’s $2.45 billion secured creditor has effectively stepped into the breach left by Mr Izmirlian and his team, who they argue should be responsible for settling the project’s debts since they are owed by the Baha Mar group of companies. Tribune Business has previously revealed that China Export-Import Bank is making “about $100 million available” to compensate Bahamian creditors and former employees. Those owed $500,000 or less, which will likely be close to 90 per cent of several thousand creditors (including the 2,000-plus staff) will receive 100 per cent of what they are owed. And, while all those owed higher amounts may have to “negotiate and compromise” over what they are owed, Tribune Business was told they are likely to “fare quite well” and receive more than 50 per cent of what they are owed. And the 123 Bahamian
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contractors owed some $74 million, together with local vendors, have the potential to obtain further work and contracts related to Baha Mar’s completion. While CCA is likely to try and ‘beat down’ the claims it receives from its Bahamian sub-contractors, in some cases it will be unable to push this too far, especially if it needs their help to complete Baha Mar. Prime Minister Perry Christie previously said that part of the Baha Mar construction completion agreement involved CCA compensating its sub-contractors and vendors for what they are owed. Yet Mr D’Aguilar argued: “The wiggling has started. It’s now coming out that the story is not as rosy as it once was. If you’re owed money by CCA, you’re beholden to this company.”
He also queried whether CCA would be paid first by the creditor committee, and how much it would receive. Still, both Messrs Turnquest and D’Aguilar said they would reserve further judgment until they saw how the creditor claims process played out. “We have to watch this and ensure they follow through on the commitments they have made,” Mr Turnquest told Tribune Business of the Government and the Chinese, “and that every individual creditor is fully compensated.” He also queried how the process of compensating CCA’s Bahamian creditors would work, and questioned why the Baha Mar payout process had been taken away from the supervision of both the project’s Deloitte & Touche receivers and the provisional liq-
uidators, plus the Supreme Court. Tribune Business understands that this can be done because the payments are coming “ex-gratia” from the China Export-Import Bank, and are not being made from assets belonging to the Baha Mar companies that are subject to the provisional liquidation/receivership. However, this has created a process whereby Baha Mar’s foreign creditors are being discriminated against, with Bahamians receiving preferential treatment in relation to their claims. These claims, once approved by the committee, will then be assigned to an entity called Perfect Luck Claims Ltd so that Bahamian creditors get paid, according to documents issued yesterday.
ACCOUNTANT Bank And Trust Company seeking a candidate for the position of Accountant. RESPONSIBILITIES • Direct responsibility for bank and investment reconciliations, • Data preparation, input maintenance and upkeep of the general Ledgers of client companies, trusts and other structures, including preparation of related yearly financial statements and periodic cash flow analyses. • Assist the Manager, as required with the preparation of monthly and quarterly financial statements.
KNOWLEDGE/SKILLS REQUIRED: • • • • • • • • •
3-5 years’ experience with a Bachelor’s degree in accounting or related field Strong oral and written communications skills Basic knowledge of banking and investment products and their application in overall management and administration of wealth Working knowledge of accounting concepts and their applications Ability to identify potential risk issues and solutions and to communicate these effectively to senior management Excellent time management, organization and administrative skills Strong analytical and problem-solving skills Strong PC skills Strong interpersonal skills and excellent team player
Interested candidates should forward a copy of their resume to:
Human Resources P.O. Box N-9834 Nassau, Bahamas
VACANCY (for an)
ASSISTANT ACCOUNTANT Applications are invited from suitably-qualified applicants for the position of Assistant Accountant. Applicants must possess the following qualifications: • • • •
B. Sc., BA, BBA Degree with a minimum of two (2) years experience as Trainee Accountant OR AA Degree and a minimum of two (2) years experience as a Trainee Accountant OR two (2) subjects at the BGCSE level or equivalent and six (6) years experience as Chief Accounts Clerk; Excellent organizational skills; Excellent communication skills (oral and written); analytical and conceptualized thinking skills; excellent interpersonal and leadership skills; Excellent computer skills,(proficiency in Excel required);
The Assistant Accountant will report to the Financial Controller. JOB SUMMARY: The Assistant Accountant will assist in maintaining accounting records, processing payables, receivables, and responding to accounting queries in accordance with the Rules and Regulations of the organization, within the confines of the approved appropriations of a budget year. Also, ensure that pertinent documentation is maintained to substantiate all payments processed within the Accounts Payable Department. DUTIES: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.
Prepares payment of invoices to suppliers; Processes requisitions and purchase orders for suppliers; Assists with the preparation of the monthly expenditure report; Assists with the monthly reconciliations of suppliers’ accounts; Liaises with departments on outstanding invoices for payment; Responds to suppliers’ queries; Assists with the budget preparation; Assists in processing the request for the replenishment of funds for imprest account; Assists with the issuance of cheques; Assists with contacting suppliers to ensure that cheques are collected before they become stale-dated; Assists with ensuring that drafts are obtained and disbursed in a timely manner; Assists with the maintenance of company records; Maintains files of all other documentation;
The post of Assistant Accountant is in Salary Scale ($30,000 x 800 - $36,400). Letter of application and curricula vitae should be submitted to the General Manager; P.O. Box N-1986, Nassau, Bahamas, no later than Friday, 7th September, 2016 Please note that only short-listed applicants will be contacted for interviews.
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Wednesday, September 7, 2016, PAGE 7
Surplus banking liquidity at $1.6bn
From pg B1
US stocks inch higher on hope for more oil deals
points lower, while the nonperforming loans rate fell by 88 basis points.” The increase in private sector arrears was led by mortgages, which increased by $7.8 million (1.3 per cent) to $616.2 million, reflecting a $9.5 million (2.1 per cent) gain in the nonperforming segment, offsetting the $1.7 million (1.1 per cent) reduction in the 31-90 day category. “More muted increases were recorded in the commercial and consumer arrears components,” the Central Bank said, “which firmed by $4.9 million (2.1 per cent) to $232.8 million, and by $0.5 million (0.2 per cent) to $272.3 million, respectively. “In terms of the former, the overall growth was driven by a $7.6 million (23.4 per cent) expansion in the short-term segment, which outpaced a $2.7 million (1.4 per cent) decline in nonaccruals, while consumer loan delinquencies firmed marginally as a result of a $1.5 million (0.8 per cent) increase in the over 90 days category.” The Central Bank added that this “overshadowed a $1 million (1.2 per cent) fall-off in the short-term segment. Annually, the non-performing loans ratios narrowed for mortgages by 1.3 percentage points, and for consumer credit, by 65 basis points, while the rate for commercial credit firmed by 60 basis points.” Banks lowered their total loan loss provisions by $13.6 million (2.5 per cent) to $535.1 million in July, reducing the ratio of provisions to both non-performing loans by 2.2 and 1.8 percentage points, to 62.8 per cent and 47.7 per cent, respectively. The banks also wrote-off $7 million in overdue loans and recovered $3.3 million.
NEW YORK (AP) — Energy companies led U.S. stocks higher Tuesday as investors hoped higher oil prices and bigger profits are on the way. News of two deals in the energy sector also helped send those stocks higher as traders anticipated that more consolidation could follow. Spectra Energy agreed to be acquired for $28 billion and Yates Petroleum said it would be bought for $2.3 billion. “What’s driving the stocks today is a view that some consolidation might take some costs out and drive up profits,” said Jim McDonald, chief investment strategist for Northern Trust. The Dow Jones industrial average gained 46.16 points, or 0.2 percent, to 18,538.12. The Standard & Poor’s 500 index rose 6.50 points, or 0.3 percent, to 2,186.48. The Nasdaq composite added 26.01 points, or 0.5 percent, to close at 5,275.91, an all-time high. Investors were once again getting their hopes up for an agreement among oil producing countries to reduce output and mitigate a supply glut that has knocked oil prices lower. On Tuesday Iran’s oil minister said his country would support an effort by OPEC to stabilize the oil market. Because Iran is boosting its oil production after years of sanctions, it has opposed efforts to limit oil production. Oil prices didn’t change much on the day. Benchmark U.S. crude oil added 39 cents to $44.83 a barrel in New York. Brent crude, the benchmark for international oil prices, lost 37 cents to $47.26 a barrel in London. The market wobbled in the morning after a survey was released showing a
NOTICE
NOTICE is hereby given that ELIPHETE NICKENSON ORNIS of Marsh Harbour, Abaco, 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 7th day of September, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE
NOTICE is hereby given that CHRISTINE CLAUDIA NELSON SWANN of Violet Ave., Garden Hills, New Providence, 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 7th day of September, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE
NOTICE is hereby given that CLAUDIN LORISTON of Treasure Cay, Abaco, 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 31st day of August, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE
INTERNATIONAL BUSINESS COMPANIES ACT, 2000
CAPRILU SECURITIES LIMITED (In Voluntary Liquidation) Pursuant to the provisions of section 138 (4) of the International Business Companies Act, 2000, notice is hereby given that: a. CAPRILU SECURITIES LIMITED is in dissolution in accordance with the provisions of the International Business Companies Act, 2000. b. The dissolution of the said Company commenced on the 6th day of September, 2016, when its Articles of Dissolution were submitted to and registered by the Registrar General. c. The Liquidator of the said Company is Soledad Garcia Jiminez of 14 Robinson Road #09-01A Far East Finance Building, Singapore, 048545.
sharp slowdown in the U.S. service sector last month. That helped send shares of consumer companies and banks lower. It also sent prices for precious metals, bonds, and high-yielding utility and phone company stocks higher. “Just when people think the U.S. economy is starting to regain some strength, you get hit with a report like this,” McDonald said. The Institute for Supply Management said U.S. service companies grew at a far slower pace in August than they had in July. While service firms have expanded every month six and a half years, the ISM reported its weakest service industry reading since February 2010. New orders and hiring grew at a slower rate and exports fell. Service firms accounted for almost all of U.S. job creation last month. Some of the biggest gains went to utility and phone companies, traditional safeplay stocks. Investors also snapped up government bonds, sending prices high-
er and yields lower. That echoed a pattern seen when the market was plunging early this year. AES added 61 cents, or 5 percent, to $12.84 and NextEra Energy rose $2.16, or 1.8 percent, to $125.29. The yield on the 10-year Treasury note declined to 1.53 percent from 1.61 percent late Friday. The dollar sank to 102.08 yen from 103.94 yen Friday. The euro rose to $1.1253 from $1.1159. Metals priced jumped. Gold gained $27.30, or 2.1 percent, to $1,354 an ounce. Silver rose 77 cents, or 4 percent, to $20.14 an ounce. Copper picked up 1 cent to $2.09 a pound. Deal talks and news spread beyond the energy sector. German health care and chemicals conglomerate Bayer raised its offer for Monsanto to $127.50 a share. The latest offer values Monsanto at around $55.8 billion. Monsanto has already rejected two bids from Bayer, and its stock remains far below the price of Bayer’s bid. It fell $1.37,
or 1.3 percent, to $106.07 Tuesday. Industrial and medical device company Danaher will buy molecular diagnostics company Cepheid for $53 per share, or about $4 billion. Cepheid climbed $18.11, or 52.6 percent, to $52.53 while Danaher dipped $1.69, or 2.1 percent, to $79.50. Bus, truck and engine
maker Navistar surged after it announced an investment from a unit of Volkswagen. The companies are also creating a joint venture that will help source parts for each of them, and they will share technology. Volkswagen Truck & Bus also name two directors to Navistar’s board, and Navistar said Tuesday that Chairman James Keyes will retire.
JOB OPENING Needed immediately experienced Nurses to work in Operation Theatre. Must have a good employment background, must possess a Bachelors Degree in Nursing, must have Operating Theatre experience and must be licensed in the Commonwealth of the Bahamas. For immediate consideration, please send your resume to: PHYSICIANS ALLIANCE LTD. P.O. BOX EE-17022 #31 COLLINS AVE. NASSAU, BAHAMAS FAX: (242) 326-8874
NOTICE KANGHI LIMITED
NOTICE MANJA INVESTMENTS LIMITED N O T I C E IS HEREBY GIVEN as follows:
N O T I C E IS HEREBY GIVEN as follows:
(a) MANJA INVESTMENTS LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.
(a) KANGHI 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 30th August, 2016 when the Articles of Dissolution were submitted to and registered by the Registrar General.
(b) The dissolution of the said company commenced on the 30th August, 2016 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, 4th Floor, Nassau, Bahamas
(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 7th day of September, A. D. 2016 _________________________________ CST Administration (Bahamas) Limited Liquidator
Dated this 7th day of September, A. D. 2016 _________________________________ Bukit Merah Limited Liquidator
MARKET REPORT TUESDAY, 6 SEPTEMBER 2016
t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com
BISX ALL SHARE INDEX: CLOSE 1,941.65 | CHG -33.24 | %CHG -1.68 | YTD 117.70 | YTD% 6.45 BISX LISTED & TRADED SECURITIES 52WK HI 4.05 17.43 9.09 3.50 4.70 0.18 8.34 8.50 6.10 10.60 15.50 2.72 1.60 5.80 8.76 11.00 8.20 6.90 12.25 11.00
52WK LOW 2.47 17.43 9.09 3.15 2.41 0.12 6.09 7.25 5.50 7.00 13.99 2.25 1.27 5.51 6.00 9.85 6.12 5.75 11.75 10.00
PREFERENCE SHARES 1000.00 1000.00 1000.00 1000.00
1000.00 1000.00 1000.00 1000.00
1.00 106.00 100.00 106.00 100.00 105.00 100.00 10.00 1.01
1.00 105.50 100.00 100.00 100.00 100.00 100.00 10.00 1.01
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 Famguard Fidelity Bank Finco Focol ICD Utilities J. S. Johnson Premier Real Estate
SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS FAM FBB FIN FCL ICD JSJ PRE
LAST CLOSE 4.05 15.85 9.09 3.50 5.22 0.12 6.47 8.50 5.83 10.60 14.00 2.51 1.55 5.80 8.77 10.95 8.12 6.60 11.93 10.00
CLOSE 4.05 15.85 9.09 3.50 2.41 0.12 6.47 8.50 5.83 10.27 14.00 2.55 1.55 5.80 8.77 10.95 8.12 6.60 11.93 10.00
CHANGE 0.00 0.00 0.00 0.00 -2.81 0.00 0.00 0.00 0.00 -0.33 0.00 0.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB
1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.01
1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.01
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
SECURITY Fidelity Bank Note 17 (Series A) + Fidelity Bank Note 18 (Series E) + Fidelity Bank Note 22 (Series B) +
SYMBOL FBB17 FBB18 FBB22
LAST SALE 100.00 100.00 100.00
CLOSE 100.00 100.00 100.00
CHANGE 0.00 0.00 0.00
Bahamas Note 6.95 (2029) BGS: 2014-12-3Y 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
BAH29 BG0103 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330
115.42 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
115.55 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
0.13 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B
CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00 100.00
52WK LOW 100.00 100.00 100.00
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
113.70 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
VOLUME
2,000
2,250
VOLUME
EPS$ 0.304 1.351 1.086 0.220 -1.134 0.000 0.185 0.551 0.508 0.541 0.528 0.094 0.166 0.510 0.612 0.960 0.650 0.703 0.756 0.000
DIV$ 0.090 1.000 0.000 0.160 0.000 0.000 0.187 0.260 0.200 0.360 0.610 0.060 0.040 0.240 0.275 0.000 0.280 0.120 0.640 0.000
P/E 13.3 11.7 8.4 15.9 N/M N/M 35.0 15.4 11.5 19.0 26.5 27.1 9.3 11.4 14.3 11.4 12.5 9.4 15.8 0.0
YIELD 2.22% 6.31% 0.00% 4.57% 0.00% 0.00% 2.89% 3.06% 3.43% 3.51% 4.36% 2.35% 2.58% 4.14% 3.14% 0.00% 3.45% 1.82% 5.36% 0.00%
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
0.000 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 7.00% 6.00% Prime + 1.75%
MATURITY 19-Oct-2017 31-May-2018 19-Oct-2022
6.95% 4.00% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25%
20-Nov-2029 15-Dec-2017 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
MUTUAL FUNDS 52WK HI 1.99 3.90 1.92 167.58 138.35 1.44 1.67 1.55 1.08 6.94 8.65 5.92 9.94 11.15 10.46
52WK LOW 1.67 3.04 1.68 164.74 116.70 1.39 1.67 1.48 1.03 6.41 7.62 5.66 8.65 10.54 9.57
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
NAV 1.99 3.90 1.92 167.58 136.68 1.44 1.67 1.55 1.08 6.94 8.65 5.92 9.59 11.15 9.57
YTD% 12 MTH% 2.33% 4.05% 3.34% 6.09% 1.63% 2.99% 3.41% 5.18% 2.95% -0.58% 2.19% 3.91% 2.46% 8.70% 1.94% 5.28% 4.11% 1.26% 4.05% 8.28% 5.93% 13.53% 2.73% 4.73% 3.97% -3.53% 2.96% 4.33% -4.26% -6.22%
NAV Date 31-Jul-2016 31-Jul-2016 27-Jul-2016 30-Jun-2016 30-Jun-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016
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
Dated the 6th day of September, 2016
Soledad Garcia Jiminez Voluntary Liquidator
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
PAGE 8, Wednesday, September 7, 2016
Congress returns to battle over Zika, keep government open WASHINGTON (AP) — Lawmakers returning to Washington after a sevenweek break picked up right where they left off — feuding about legislation to battle the mosquito-borne Zika virus and deadlocked over the defense budget. A tightening presidential race and pitched warfare for control of the Senate this November promise to overshadow whatever Congress accomplishes in an election-shortened September session — which, for now, looks like little more than a temporary government-wide spending bill to prevent a shutdown at month’s end, possibly linked to money to battle Zika. “We’re going to work through these issues and I’m sure we’ll have a successful outcome to make sure just that the trains are running on time,” House Speaker Paul Ryan, R-Wis., told hometown radio host Stan Milam of AM 1380 in Janesville on Tuesday. On the Zika virus, which has spread over the summer and is linked to birth defects, Ryan said: “I do believe we’ll find some kind of
resolution.” In its first vote Tuesday, Senate Democrats are sure to block a $1.1 billion Zika funding package and accompanying Veterans Administration spending bill over restrictions on Planned Parenthood. A subsequent vote would prevent the Senate from turning to a $576 billion Pentagon spending measure. Democrats oppose the Zika measure as it bars Planned Parenthood clinics in Zika-suffering Puerto Rico from receiving new money to treat the disease and curb its spread. The legislation also would ease, over the objections of environmentalists, permitting requirements for pesticide spraying to kill the mosquitoes that can spread the virus. Republicans added those provisions to the measure in June, along with spending cuts to help pay for the Zika bill, saying they are reasonable priorities that reflect their control of the House and Senate. The Zika threat hasn’t gripped the public as Ebola did two years ago, but pres-
sure is building as dozens of mosquito-transmitted Zika cases have been confirmed in the political battleground state of Florida since lawmakers left Washington in July. The defense bill, meanwhile, is caught in a furious battle sparked by a Republican move to use emergency war funds to try to artificially increase the basic Pentagon budget by $16 billion next year. The Obama administration and its Democratic allies on Capitol Hill are dead set against the idea, which breaks with a hard-won budget deal that’s less than a year old; they say that if Republicans want more money for defense, domestic programs will have to receive an equal boost. “It’s hard to explain why — despite their own calls for funding — Senate Democrats decided to block a bill that could help keep pregnant women and babies safer from Zika,” said Senate Minority Leader Mitch McConnell, R-Ky. “It’s also hard to explain why — despite the array of terror attacks we’ve seen across the world — Senate Demo-
THE TRIBUNE
An American flag flies over Capitol Hill in Washington, yesterday, as lawmakers return from a 7-week break. Election-year politics will rule the congressional calendar when lawmakers return from a seven-week recess. Congress will have a little more than four weeks in session beginning Tuesday before the November election, or around 20 days. Lawmakers are scheduled to leave town again in early October to return home and campaign. (AP Photo) crats decided to block a bill that could help keep the American people safer from threats.” The defense battle won’t be resolved until after Election Day, but Tuesday’s vote on Zika should send the warring parties back to the drawing board, and it appears likely that the provision targeting Planned Parenthood — and perhaps the underlying $95 million worth of social services grants — will have to be dropped from the measure. For his part, Ryan has to navigate some tricky wa-
ters on the underlying stopgap spending bill, known in Washington-speak as a continuing resolution. Some conservatives want to block any post-election session and are pressing for a continuing resolution that keeps the government open until March or so. But President Barack Obama and Senate Democrats are dead set against the idea, and Ryan said he wants to keep negotiating on the full-year spending bills through the fall. Maryland Rep. Steny Hoyer, the No. 2 House Democrat, on Tuesday said
that an extension of current spending “should be in my view be passed as soon as possible, it should go to sometime in December” and budget work should be finished by the end of the year. As the inauguration of the next president looms in January, a multi-year restoration of the iconic Capitol Dome is nearing completion, and the Rotunda reopened for visitors on Tuesday, free of scaffolding and safety netting that prevented visitors from a full view of its artwork.
NASA chasing down asteroid to scoop up, bring back samples CAPE CANAVERAL, Fla. (AP) — NASA is going after an asteroid this week like never before. It’s launching a spacecraft to the exotic black rock named Bennu, vacuuming up handfuls of gravel from the surface, and then in a grand finale, delivering the pay dirt all the way back to Earth. The mission will take seven years, from Thursday night’s planned liftoff from Cape Canaveral to the return of the asteroid samples in 2023, and cover an in-
credible 4 billion miles (6 ½ billion kilometers) through space. It promises to be the biggest cosmic bounty since the Apollo moon rocks, hand-picked and delivered by astronauts in the late 1960s and early 1970s. NASA has already brought back comet dust and specks of solar wind. And Japan already did it at an asteroid a decade ago, and is en route to a second space rock encounter. But we’re talking tiny grains in these cases.
NASA’s robotic asteroid hunter, Osiris-Rex, is designed to scoop up pebbles and rock the size of gravel — anywhere from one to four or even five handfuls in a single swipe. “We are going out to explore an unknown world,” said principal scientist Dante Lauretta of the University of Arizona at Tucson. “We’re going to map it in great detail. It will be the most well characterized asteroid in our solar system by the time we’re through with it.”
Thanks to observations from the Hubble and Spitzer space telescopes and ground observatories, scientists already know the roundish Bennu (BEN’oo) is about 1,600 feet (487 meters) across at its bulging middle and the color of coal, indicative of carbon richness. It’s believed to have formed 4.5 billion years ago, a remnant of the solar system’s building blocks. As such, it may still hold clues as to the origin of life on Earth and, possibly, elsewhere in the solar system.
The name Bennu comes from the heron of Egyptian mythology. Osiris was an Egyptian god; Osiris-Rex is an acronym for origins, spectral interpretation, resource identification, security-regolith explorer. There’s also a practical side to the more than $800 million mission: planetary defense. Bennu is one of many near-Earth asteroids that occasionally cross paths with our planet. The more scientists know about these potentially hazardous
rocks, the better the chance of tracking them and, worst comes to worst, bracing for them. Bennu wouldn’t obliterate Earth or wipe out life, just carve out a huge crater. Lauretta said the odds of a direct hit by Bennu are low — less than one-tenth of 1 percent — and not until about 150 years from now. “So I like to say, ‘Don’t run out and buy asteroid insurance tonight, you’re not going to need it,’ “ Lauretta said.