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MONDAY, SEPTEMBER 23, 2019
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QC: Sarkis fight on oppression ‘flawed’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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Bahamian QC has slammed the “flawed” bid by Sarkis Izmirlian to defeat the “shareholder oppression” counter-claim brought against him by Baha Mar’s main contractor. Wayne Munroe QC, acting on China Construction America’s (CCA) behalf, argued that there was nothing in Bahamian law to prevent the Chinese state-owned contractor from bringing such an action in New York or elsewhere using section 280 of this nation’s Companies Act. In a direct rebuttal to assertions by Oscar Johnson, Higgs & Johnson’s managing partner and litigation chief, Mr Munroe alleged that there was nothing in the Companies Act to make the Supreme Court
• Munroe: Bahamian law is no obstacle • Argues Supreme Court not sole tribunal • And CCA claim not ended by dissolution
WAYNE MUNROE QC
SARKIS IZMIRLIAN
the exclusive tribunal for hearing all cases brought under it. Mr Munroe, in legal documents filed with the New York State Supreme Court, which have been obtained by Tribune Business, also refuted Mr Johnson’s argument that so-called “shareholder oppression” needed to be present or
ongoing for CCA’s claim to have merit. Mr Izmirlian and his attorneys had asserted that Baha Mar Ltd’s dissolution on January 28, 2019, meant the company had “ceased to exist” before CCA brought its May 14 claim thereby rendering it invalid. However, Mr Munroe
Tax-free status for storm zones ‘totally fantastic’ By NEIL HARTNELL Tribune Business Editor and YOURI KEMP THE prime minister’s designation of east Grand Bahama and Abaco as “Economic Recovery Zones” for three years was yesterday hailed by the private sector as “absolutely fantastic”. Ken Hutton, the Abaco Chamber of Commerce’s president, told Tribune Business that the three-year term appeared “reasonable” given the extent of the required restoration effort and voiced optimism that the government would be open to extending it if required.
KEN HUTTON “It’s an absolutely fantastic idea and I’m very much in favour of it,” he said in reaction to the prime minister’s afternoon address. “I think it’s great, and is exactly what is needed.” Asked whether the
SEE PAGE 10
Oil explorer in total certainty on $25m well By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas Petroleum Company’s (BPC) top executive has acknowledged it is now better placed than ever before to deliver a first exploratory well in this nation’s waters by mid-2020. Simon Potter told Tribune Business that shareholder approvals at BPC’s recent annual general meeting (AGM) had provided total certainty that it will be able to finance the $20m-$25m well costs whichever route it took to get there. Disclosing that “substantial
progress is being made on all fronts”, Mr Potter added that the government’s extension of BPC’s licences until the end of next year had helped to “focus minds” on the task in hand and give the oil exploration outfit impetus to rapidly press forward. Conceding that BPC may have been too “pre-occupied” with the search for a joint venture ‘farm-in’ partner to share the financial and technical risks associated with its exploratory well, he said the company’s securing of “world class” rig and services providers was
SEE PAGE 9
said previous rulings had set a precedent for righting “an enduring unfair state of affairs” even though the company in question may no longer exist. And Bahamian “procedure”, he argued, meant that CCA’s counter-claims were made in late 2017 when Baha Mar’s original developer first filed his $2.25bn fraud and breach of contract claim. Mr Munroe’s riposte to Mr Johnson’s rival evidence comes as the preliminary legal dual between Mr Izmirlian and CCA heats up over the former’s bid to persuade the New York court to dismiss the Chinese contractor’s “shareholder oppression” claim.
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Abaco worried free fuel supply end premature By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net CONCERNS are being voiced that the government is ending Abaco’s supply of free gasoline prematurely given that Hurricane Dorian wiped out the island’s payments system. Algernon Cargill, pictured, the joint Dorian relief and redevelopment co-ordinator for Abaco, yesterday confirmed to Tribune Business that the government’s provision of subsidised gasoline on the storm-ravaged island will end this week. He argued that the move was justified, given that two Shell service stations in Dundas Town and Marsh Harbour have re-opened, while a Rubis facility is due to come back online this week in Treasure Cay. However, several Abaco residents, speaking on condition of anonymity, slammed the move as premature given that the total wipe-out of financial services and banking on the island means remaining residents and businesses lack any means to pay for it. They told this newspaper that the provision of tax-free, subsidised gasoline should continue for a further six to eight weeks
to allow for the resumption of physical and electronic banking services. Addressing these concerns, Mr Cargill said Commonwealth Bank was aiming to re-open at Maxwell’s supermarket “very soon” as a temporary location. And the government planned to speak with Royal Bank of Canada, CIBC FirstCaribbean International Bank and Scotiabank this week to determine how quickly they will resume operations in Abaco. He added that any residents encountering difficulties in paying for fuel should visit the government complex in Marsh Harbour where “special arrangements” would be made to assist them. “Yes, the government has been subsidising fuel supplies to Abaco, and providing gasoline to motorists free - and also the
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PAGE 2, Monday, September 23, 2019
THE TRIBUNE
Freeport harbour back in business quick after Dorian
DESTRUCTION caused by Hurricane Dorian. By YOURI KEMP FREEPORT’S harbour was back to functioning normally within two days of Hurricane Dorian’s passage, a shipping company executive has revealed. Elbert Hepburn, president and chief executive of Elnet Maritime in Freeport, said he has been shipping items into Freeport and operating regularly within days of Dorian’s passage. His company is heavily involved in the shipping of relief supplies the storm’s victims. “As far as tanker
operations, they were stalled only for a day or two after Hurricane Dorian had passed, but they were right back up and running like it was before,” Mr Hepburn said. “Persons are even now chartering vessels to come in to the port, just to show you how available the Freeport Harbour is right now. “The Freeport Harbour Company was open two days after the storm. The port is operating back to normal. A shipment I had scheduled to come in on Saturday actually came in a day earlier, today, for example.
He added: “If there are any issues with shipping through the Freeport Harbour/Container Port, the issue is with the individual shipping company, not with the port itself.” Another shipping and logistics source, speaking on condition of anonymity, said the only issue they knew of after the storm was the calibrating of gantry cranes for large containers. Yet they added that no major logistics issues or backlogs have been experienced by their firm or any other shipping company they know of.
THE TRIBUNE
Monday, September 23, 2019, PAGE 3
Pirate-themed vessel targets $1.5m top-line By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A $3M PIRATE-themed cruise attraction is targeting annual revenues of $1.5m after setting sail on a voyage inspired by its principal’s daughter. Entrepreneur Tony Knowles said he was inspired to invest in the project by his physically-challenged daughter, aiming to create something that people with disabilities and of all ages could enjoy. Operating Blackbeard’s Revenge under his company, Pirate’s Revenge, and employing 28 Bahamians, Mr Knowles said the vision for the attraction came to him from a pirate-themed cruise ship he recalled from 1995, when he was piloting helicopter charter services. This, coupled with the realisation that his daughter could not participate
in some activities with his family, resulted in the entrepreneur seeing the need to provide something for persons of all capabilities and ages on land, in the air and on water. Mr Knowles said it took him and an “all Bahamian ship building crew” 16 months to convert the former mailboat, the Eleuthera Express, into the Blackbeard’s Revenge, with almost all materials sourced here in The Bahamas at a cost of just under $3m. He has set a revenue target of $1.5m a year. Inspired by minister of tourism, Dionisio D’Aguilar, and his inaugural speech to Parliament on the lack of Bahamian-owned tour, excursions and attractions to deliver quality experiences for tourists and locals alike, Mr Knowles said this was the deciding factor that prompted him to move ahead.
The 140-foot long, 20 footwide Blackbeard’s Revenge, complete with gift shop and VIP lounge, can hold up to 300 persons. Mr Knowles said it is built for an interactive cruise and cultural experience, starting from daily morning voyages to sunset dinner trips for both tourists and locals, in addition to being available to play host to corporate and regular party events. Mr Knowles said that prior to setting sail, obtaining worldwide jurisdiction liability insurance was an important hurdle to cross. He revealed it was a huge setback when local insurance companies were unable to provide him with the solution he needed. He eventually found MHG Insurance out of Fort Lauderdale, Florida, to provide $5m on coverage. Mr Knowles said the boat explosion in Exuma in mid2018, and the recent shark attack against a tourist off
GB targeting 50% re-open in two weeks By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A MAJOR Grand Bahama resort is aiming “to re-open at 50 percent capacity within two weeks” after sustaining only minimal damage from Hurricane Dorian. John MacDonald, who heads the property’s condo owners, said that despite not incurring sufficient damage to make a claim the property remains closed with Grand Bahama International Airport no open to international flights. Writing in a September 20, 2019, letter, Mr MacDonald expressed gratitude to their landlord, Lubert Adler, that it had “temporarily forgiven” rental payments in the absence of any income coming in. “We are hopeful to reopen at 50 percent capacity within two weeks, and slowly work up to 100 percent in the weeks to follow,” he wrote. “With regards to the resort, Old Bahama Bay was spared. We received minimal damage with no salt water intrusion into the condos. “The majority of the damage occurred to the grounds and the foliage. No damage claims will be made with our insurance carrier as there simply is not enough damage to come close to our deductible. We view this as a very positive situation to be in.” Mr MacDonald added that electricity supply had been restored already to Old Bahama Bay, with water set to follow “any day now”. He said: “Our staff have been the local heroes, working day and night to clean up the grounds and to provide supplies to the entire island. “As of today, we are not open and cannot accept
owners or guests. The Freeport airport remains closed for international flights. However, it is open for hurricane relief flights and domestic flights. They ask that the domestic flights be used for those who are seeking to move from one island to another for the purpose of relocation of hurricane clean-up. “In addition, we are thankful that Lubert Adler has temporarily forgiven rent. This is a huge help as we have been closed, earning no income and yet paying our staff to perform clean-up and repairs. I would like to thank Lubert Adler for their support during these trying times.” Mr MacDonald added that Old Bahama Bay and its condo owners had “pulled out all the stops” to help with Dorian relief, having prepared in advance of the storm and liaised in advance with the government over the bringing in of relief supplies duty-free once the storm had passed. “This was a huge first step that I thank the Bahamian government for assisting in such an expedited manner. We continue to work with the
Bahamian government on a daily basis,” he said. “In the past 21 days we have accomplished nothing short of a miracle - 263 flights via both plane and helicopter (all donated); 193 boats; 19 containers - total weight we calculated at 623 tons. That does not include the supplies that good-hearted individuals purchased on their own and sent over via boat. “These supplies were safely delivered to Old Bahama Bay, West End Grand Bahama for the West End and surrounding villages of Freeport, High Rock (east Grand Bahama), Walkers Cay, Scotland Cay, Marsh Harbour, Green Turtle Cay, Guana Cay and Treasure Cay. “We are now dropping supplies in Nassau as many of the affected islands have been evacuated to Nassau, and we need to assist the Government in aiding the influx of Bahamians.... In 2016 with Hurricane Matthew we flew in 32 flights with 174,000 pounds of supplies and 32 boat trips with another 259,000 pounds, which was amazing.”
BAHAMAS AIR SEA RESCUE ASSOCIATION ANNUAL GENERAL MEETING
BASRA Headquarters October 3rd, 2019 @ 7:30pm All members are encouraged to attend. Refreshments will be served.
ANNUAL GENERAL MEETING NOTICE Notice is hereby given that the Annual General Meeting of Benchmark (Bahamas) Ltd. will be held on Date: September 30th, 2019 Time: 6:30pm Venue: Windsor Ballroom A, British Colonial Hilton
Rose island this year, had taught him the importance of insurance. Speaking on behalf of Mr D’Aguilar, who was at Cabinet, the Ministry of Tourism’s general Manager for quality assurance, Kendal I Major, said the Ministry was prepared to promote the fact that there is more to see in The Bahamas after Hurricane Dorian. Mr Major said the Ministry is able to help entrepreneurs with promotion of their product or service, but warned that entrepreneurs need to first provide something authentically Bahamian.
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PAGE 4, Monday, September 23, 2019
THE TRIBUNE
FOCOL ‘RELENTLESS’ IN FUEL SUPPLY RESTORATION BISX-listed FOCOL Holdings says it has been “relentless” in its efforts to restore fuel supplies and facilities on Abaco in the aftermath of Hurricane Dorian’s devastation. Anthony Robinson, the company’s president and chief executive, said: “Our hearts are broken for the people of Abaco, and our commitment to the restoration of fuel services on the island is unquestionable. Since the passage of Hurricane Dorian, and now, our team of dedicated professionals have been relentless in their commitment to provide quality petroleum products to the community of Abaco.” Mr Robinson led a Sun Oil team on an assessment of Abaco immediately after Dorian’s passage. “Once the all-clear was given, our team conducted an aerial assessment of our sites and facilities,” he explained. “Then we got on the ground to inspect our equipment, and executed our response plan in the
A SUN Oil team provides fuel relief for the Royal Bahamas Defence Force (RBDF) at a mobile fuelling station in Abaco. face of this catastrophic catastrophic devastation of disaster.” Hurricane Dorian, we recThe FOCOL Holdings ognised that our terminal chief said a chartered barge and service stations were was sent to Abaco on Sep- significantly impacted. tember 7 with mobile fuel “However, we were undedispensing units and other terred given that our fuel supplies to restore services. storage tanks withstood the He added that Sun Oil per- storm’s impact. This allowed sonnel were dispatched for us to assess resident from New Providence to and government needs, and assist with on-going repairs position ourselves for the and restoration work at the expedient delivery of qualterminal and other sites ity petroleum products.” on Abaco. Sun Oil positioned Clinton Rolle, Sun mobile fuelling dispensOil’s deputy general man- ers for Abaco residents, ager, said: “Following the and the company was able
A BARGE with fuel restoration and relief supplies docks in Chub Cay to collect additional equipment. to offer fuel relief to the vehicles, along with vehigovernment and other cles operated by the Royal stakeholders on the island. Bahamas Police Force Dexter Adderley, Sun and the Royal Bahamas Oil’s managing director, Defence Force. We have added: “Through a strategi- since established a desigcally initiated collaboration nated mobile dispensing with the Government of station to meet the specific The Bahamas we were needs of the Government of among the first to provide The Bahamas.” fuel for emergency and Mr Adderely continrescue personnel on the ued: “Our teams on the ground. This enabled them ground moved expediently to fulfill essential tasks to provide fuel for Aliv to for rescue and restoration ensure the on-going operaefforts. tion of their cellular tower. “Sun Oil provided fuel We have delivered fuel to for Bahamas government the Marsh Harbour Airport
Authority for civil aviation purposes, and supported Bahamas Power and Light with fuel for operation of their vehicles.” As recovery operations continue, residents can access fuel from service stations throughout Abaco in the communities of Dundas Town, Hope Town, Marsh Harbour and Sandy Point. Mr Rolle confirmed: “We have an adequate supply of fuel on the island of Abaco, and we will meet the needs of our sites as the recovery and restoration process continues.” Mr Robinson said, “As a Bahamian-owned company we embrace our responsibility to provide quality petroleum products, especially during a national crisis of this enormous magnitude. “We will continue to demonstrate that we care about the community of Abaco, we are invested in the recovery process and we are committed to doing our part towards fuelling journeys that matter.”
FORMER BORCO TERMINAL RESUMES FULL OPERATIONS THE owner of Grand Bahama’s former BORCO oil storage terminal has confirmed the facility has resumed full operations in the wake of Hurricane Dorian. Buckeye Bahamas hub’s owner, Buckeye Partners, said the re-opening came after completion of all necessary inspections and repairs. It added that assessments of the facility identified only minor damage from the storm’s wind and rain, and no indications of any product release or environmental threats. “On behalf of the entire company, I want to thank the Buckeye emergency response teams and all of our employees in The Bahamas for their dedicated
work to safely restore operations at our Buckeye Bahamas Hub,” said Khalid A. Muslih, executive vicepresident andpresident of Buckeye’s Global Marine Terminals. Buckeye also announced a financial contribution to the National Emergency Management Administration (NEMA) and the Grand Bahama Disaster Relief Fund (GBDRF) to assist with recovery efforts following the storm’s devastating impacts to the island’s residents and businesses. Donations have also been made by Buckeye and its employees to the Buckeye Foundation, a non-profit charitable organisation which exists to provide hardship relief to employees and their
families in the aftermath of natural disasters. BBH said supporting its employees, their families and neighbours, as well as the government’s relief agencies, was a top priority. Buckeye made similar contributions when Hurricane Matthew struck Grand Bahama and Freeport in October 2016. “Buckeye wants to do our part to support the process of recovering from the unprecedented devastation of Hurricane Dorian. We have communicated our commitment to assist with the effort to the Government of The Bahamas, and will continue working closely with the government and the community through the rebuilding effort,” Mr Muslih said.
THE TRIBUNE
Monday, September 23, 2019, PAGE 5
FREEPORT FIRMS HELP WATER UTILITY REBOUND VAT EXTENSION FOR GRAND Bahama Utility Company has teamed with other Freeport businesses to accelerate the return of critical fresh-water services to the island following Hurricane Dorian. It is partnering with Grand Bahama Shipyard, Bahama Rock, Bahama Industrial Technologies (BIT) and other businesses after the category five storm inflicted heavy damage upon its critical systems. The water utility has been working to inspect, test, repair and restore all necessary equipment to resume water service from its plant, which extracts and purifies water from the well fields. The ongoing process to restore equipment is enabling the “recharging” of pipes zone by zone on Grand Bahama. Grand Bahama Shipyard, with the commitment of its shareholders Carnival Corporation, Royal Caribbean Cruises and the Grand Bahama Port Authority, assisted in providing power generation restoration to the water utility. It sent Shipyard technicians to help recharge the water
GRAND Bahama Utility Company team working on restoring fresh-water services to the island. plant and pipes, and repair and replace electric motors and pumps, which is accelerating the return of water services. “We recognise the critical importance of restarting fresh water supply to homes and businesses across Grand Bahama,” said Geron Turnquest, general manager for Grand Bahama Utility Company. “We started distribution to the Freeport area moving west from Water Plants Number one and Number 6. “We have supplied several areas with water for ‘sanitary purposes only’, and we aim to provide service out to West End this week. Thanks
to the assistance from Grand Bahama Shipyard, Bahama Rock, BIT and others, we have been able to accelerate repairs to our equipment and start resuming basic services. “The utility company is conducting assessments for areas located towards East End and others requiring service. We are inviting more help in this regard, and we hope to build and provide a stronger, better utility service as we work together to rebuild, restore and recover.” “We are all residents of Grand Bahama, we are all in this recovery together, and we know how crucial it is to
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have basic services like water supply restored as quickly as possible,” said Marvin Basden, head of health, safety, security, environment and quality for Grand Bahama Shipyard. “Fortunately we were able to provide support with critical equipment and technical assistance to our friends at the utility company, and we know how important it is to be able to help quickly restore water services to Grand Bahama while, at the same time, supporting other recovery work across the island.” Grand Bahama Shipyard’s employees are supporting multiple recovery efforts, including the distribution of essential aid by The Bahamas National Emergency Management Agency (NEMA), providing mobile light and power generation equipment to east Grand Bahama, and creating “flying squads” of shipyard volunteers to assist where needed, including a 40-person team sent to clean up and clear debris from six impacted schools, ensuring the buildings and classrooms are clean and safe for the return of students.
DORIAN-HIT ISLANDS
THE government has extended the deadline for filing September and October’s VAT returns to November 30, 2019, for businesses devastated by Hurricane Dorian. The Department of Inland Revenue confirmed the extension for all VAT registrants on Abaco, the Abaco Cays and Grand Bahama should they need it. It added that companies in the same storm-hit areas that wish to temporarily suspend operations are required to submit a change of circumstance request by October 30, 2019, for business licence purposes. This request to temporarily suspend operations may be submitted either as a “change of circumstance” request case through the Online Tax Administration System (OTAS) account, or by completing
and submitting the FORM 71 to the island administrator’s office on Abaco or at the Department of Inland Revenue office on either Grand Bahama or New Providence. The FORM 71 is available online at https:// inlandrevenue.finance. gov.bs/value-added-tax/ forms/. The government encouraged VAT registrants holding funds for the government on the affected islands to make the required payments.
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PAGE 6, Monday, September 23, 2019
QC: Sarkis fight on oppression ‘flawed’ FROM PAGE ONE
CCA is alleging that Mr Izmirlian exploited his position as Baha Mar’s majority shareholder to take actions that ultimately wiped out its $150m preference share investment in the original project (even though it was subsequently selected for the $700m contract to complete the development). Baha Mar’s original developer has blasted CCA’s counter-claim as “impermissible”, and cited numerous reasons why it should be “stricken”, including the fact that it can
only be “validly” heard by the Supreme Court since it is based on Bahamian law. Mr Munroe and his client, though, feel differently. “In my considered opinion... there is no prohibition provided by Bahamian law to this New York court considering a claim brought under section 280 of the Companies Act and providing a remedy thereunder if is minded,” Mr Munroe alleged. “I can find nothing in the words of the section or the rest of the Companies Act that would lead me to conclude that a complainant may only apply to the
THE TRIBUNE Supreme Court pursuant to section 280 of the Companies Act.” Mr Munroe, who admitted that he represented the Gaming Board during the Supreme Court hearings that ultimately resulted in Baha Mar’s winding-up and sale, said there were numerous avenues to make “oppression” claims besides the Companies Act. Identifying arbitration as one, he concluded: “I see no indication... that the ability to give relief pursuant to section 280 of the Companies Act is limited to the Supreme Court.” And, rejecting arguments that the Act’s variety of remedies were broader before the Supreme Court, Mr Munroe added: “With respect, this reasoning is flawed. “Arbitral tribunals and foreign courts often
make awards and orders that are to be enforced in The Bahamas. The question of whether a particular remedy available pursuant to section 280 of the Companies Act should be given or any particular order made is a matter for the selected dispute resolver taking into account the facts of the case and the procedural rules governing the selected process. After a remedy or relief is granted the matter of enforcement of the order of this court in The Bahamas would follow as in any other case, if necessary.” Mr Munroe then rejected Mr Johnson’s argument that the Companies Act’s “shareholder oppression” remedy dealt only with ongoing or present conduct, rather than what happened in the past, thus creating a “fatal flaw” in CCA’s
argument due to Baha Mar’s prior dissolution. Asserting that the Companies Act’s section 280 “provides redress for an enduring unfair state of affairs”, even though the oppressive conduct that may have caused it has ceased, Mr Munroe said the argument surrounding Baha Mar’s dissolution was incorrect. “In The Bahamas, procedurally, the claims in a counterclaim are deemed to have been commenced on the same date as the action in which it is pleaded,” he said. Noting that the court files indicated Mr Izmirlian’s claim was brought in 2017, Mr Munroe added: “If that is indicative that this action was commenced in 2017 then the section 280 application made by the counter-claim would
be deemed to have been made in 2017 - well before Baha Mar Ltd would have been dissolved. “As a result, taken that the date of the claim by the counter-claims is 2017 prior to Baha Mar’s dissolution, the question would be whether [Mr Izmirlian] was liable as at that date - 2017. If the court finds that [he] was liable then this liability existing at the time before the dissolution of Baha Mar Ltd would continue notwithstanding Baha Mar’s later dissolution in 2019.” Even if Mr Izmirlian’s latest legal initiative proves successful, CCA still has two other elements to its counter-claim that have yet to be challenged. Both parties appear equipped for a long, costly fight that will take years and plenty money to resolve.
THE TRIBUNE
Monday, September 23, 2019, PAGE 7
Abaco worried free fuel supply end premature FROM PAGE ONE emergency and essential services - since the hurricane,” Mr Cargill replied, when contacted by Tribune Business. “We now have two Shell service stations, one in Dundas Town and one in Marsh Harbour, that are now open to the public. A Rubis station is to re-open next week in Treasure Cay. Now the stations are back open the fuel subsidies will be discontinued as of next [this] week.” Mr Cargill did not specify how much the provision of free fuel post-Dorian has cost the government, instead emphasising that the priority was to regain “a feeling of normalcy” on the island and enable the business community to start re-opening. “We haven’t focused on costs,” he said. “Our concern has been restoring Abaco to a feeling of normalcy since the storm. Cost has not been the main focus. The main focus has been getting the business community to re-open in Abaco. The idea is to get back to normalcy as quickly as possible.” With fuel supplies resuming through traditional sources, Mr Cargill said the government was now switching its attention to the same happening with food and water through established, traditional vendors. “The intent is we want to restore normalcy as soon as possible,” he added. “Until that happened, the government provided free fuel to motorists. We want to ensure that residents have freedom, respect and dignity in the short-term.” Asked about concerns that subsidised fuel supplies were being ended too soon, Mr Cargill responded: “If there are residents having a difficulty paying, we encourage them to come and see us at the government complex and we can make special arrangements.” This did not satisfy one well-known Abaconian who, speaking on condition of anonymity, said residents had no access to payment mechanisms of any kind because all bank branches and automated teller machines (ATMs) had been knocked out by Dorian. Electronic payments had also taken a hit as the electricity supply was out, along with most businesses and their card systems.
“I’m kind of lost why they should do this,” they told Tribune Business. “I have no funds, and there are no banks. No banks means no cash. I could see this being done in six to eight weeks, but now they want to shut it down when people don’t have money to buy fuel.” They added that the government should have instead issued 20,000 gallons of fuel to each of Abaco’s three main petroleum suppliers and ration supplies to 20 gallons per vehicle “until a bank or two opens and people get cash. “If they got Commonwealth Bank situated, what about RBC, FirstCaribbean and Scotiabank,” the source said. “There’s no thought going into this again. People want to rebuild and get businesses going, but nobody has any cash to get anything going in terms of buying stuff. Where are they going to get the money from? “I can understand another six to eight weeks that people might want to do this [free fuel supplies]. What happens when Maxwells opens back up? Will they stop the free delivery of canned goods? “We have nothing. Marsh Harbour, it’s like a zombie town; the walking dead. There’s nothing there right now. I can see the time coming to get going, but at least for the next six weeks to two months they should be having fuel depots so people have free fuel. We don’t have it.” Mr Cargill, meanwhile, indicated that restoring banking and financial services on Abaco is a high government priority given that the industry is vital to restoring commerce and the island’s private sector as rapidly as possible in Dorian’s wake. “Commonwealth Bank will be re-opening at Maxwells very soon; it’s strategising how to do it,” he told Tribune Business. “The plan next week is to speak to Royal Bank of Canada, CIBC and Scotiabank as to when they will re-open their operations or secure temporary operations in Marsh Harbour. Maxwells has agreed they will definitely re-open in Abaco so are already committed to it.” Mr Cargill said the government has continued to pay every Abaco and Grand Bahama-based employee even though they may have been displaced by Dorian and/or have no work to do.
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PAGE 8, Monday, September 23, 2019
THE TRIBUNE
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GN-2297
The Public Service Commission
THE TRIBUNE
Monday, September 23, 2019, PAGE 9
Oil explorer in total certainty on $25m well FROM PAGE ONE “a measure of the progress we’ve made”. Mr Potter added that both BPC and its consultants, and the government’s consultants, were working towards an end-2019 target for the completion and submission of documents required to obtain Environmental Authorisation (EA) for the first well. “We’re progressing forward on many fronts,” Mr Potter told Tribune Business. “The government fixing the time period of our licence to run through to the end of 2020, it makes clear the timeframe in which we’re obliged to deliver a well, and that focuses the mind. We’ve been focusing on four areas to deliver a timely, efficient and responsible well.” He identified the first as rig operations and the “essential services” required to deliver a first exploratory well in waters south-west of Andros, near the maritime boundary with Cuba. This has resulted in the agreement with Seadrill, one of the world’s largest offshore drill rig companies, for the provision of a sixthgeneration drilling rig, along with the selection of Halliburton, as its integrated well services provider, and BakerHughes GE to provide wellheads and other welldrilling equipment. “We’ve locked in the pricing and commercial terms for provision of the rig and services from these global companies,” Mr Potter added. “That’s important in establishing the cost of the well, and provides assurance to the government that we will deliver on our well obligation.” He explained that the rig provision contract with Seadrill will also help fill in the remaining gaps in BPC’s Environmental Management Plan (EMP), and help update it, given that there is now confirmation on the size of rig that will be used and the nature of safety equipment on board. “We completed an Environmental Impact Assessment (EIA) in 2012, and that was part of the application we made in 2018 with the Environmental Authorisation (EA),” Mr Potter said. “The BEST Commission appointed Black & Veatch as their independent consultants. “They issued a report and we are working with it, one of our consultants, to finalise the documents required for the EA. We have a shared target of the end of 2019 for that batch of documents to be completed and submitted to the Ministry [of the Environment], certainly.” Besides permitting and hiring the necessary qualified staff, Mr Potter said funding for the exploration well was BPC’s fourth concern. “In many ways we were slightly pre-occupied with the farm-in search
when the primary mission is to drill the well,” he conceded. The AGM approvals, several of which related to financing, gave the goahead to a conditional agreement with Bizzell Capital Partners, an Australian-based oil and gas exploration financier, to provide a £10.25m convertible loan that can be switched into equity shares. That sum, which translates into $12.5m, is equivalent to half the cost of the $25m initial exploration well and will help underpin its drilling should a joint venture partner not be sealed in time. The AGM outcome has thus essentially assured BPC will be able to finance the well regardless of whichever route it takes to get there. This was confirmed by Mr Potter, who told Tribune Business: “We’ve got a range of options for funding that is certainly going to deliver the $25m needed to deliver the well. “We’ve identified, given that we’ve locked in the pricing through the technical agreements we have, a $20m-$25m range for the well. This isn’t a number plucked out of the air; it has considerable engineering gone into it. “The pricing of rigs has come down considerably, and we’ve locked in the rig price per day,” he explained.” We can be fairly certain about costs. The rig is coming from the Gulf of Mexico, which is very close to The Bahamas, so in terms of pricing, logistics and transit time, that’s relatively minimal.” Many Bahamians will likely be sceptical as to whether any oil exploration activities will take place, given the lengthy process BPC has been embarked on, but Hurricane Dorian’s devastation will likely strengthen the calls that this nation has nothing to lose in determining whether commercial, recoverable quantities of oil are located within its waters. Mr Potter, meanwhile, added that improvements in drill bit technology would also increase the speed at which BPC could penetrate and drill through subterranean rock structures to locate the presence of oil below the seabed. The oil explorer has been moving to de-risk its project technically in recent months, having collaborated with the Cuban National Oil Company (CUPET) to analyse its data and oil samples in a bid to assess prospects of success. Reiterating that BPC’s success could “yield considerable potential value for The Bahamas”, Mr Potter said this nation did not have to wait on royalties to start benefiting. He added that the discovery of proven quantities of oil could almost immediately allow the Government to start “rebasing” its loans and debt.
NOTICE
NOTICE is hereby given that YCIANIE PIERRELOUIS PETIT-DE of Central Pines, P.O. Box General Delivery, 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 23th day of September, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
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PAGE 10, Monday, September 23, 2019
THE TRIBUNE
Tax-free status for storm zones ‘totally fantastic’
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FROM PAGE ONE
MARKET REPORT www.bisxbahamas.com
(242) 323-2330
FRIDAY, 20 SEPTEMBER 2019
(242) 323-2320
ALL SHARE INDEX: CLOSE: 2,184.55 | CHG: 18.27 | %CHG: 0.84 | YTD: 75.10 | YTD%: 3.56 BISX LISTED & TRADED SECURITIES 52WK HI 4.45 20.91 7.00 5.92 2.60 2.00 5.47 11.75 6.17 4.64 12.40 2.81 3.19 10.00 7.35 16.50 9.30 3.65 14.20
52WK LOW 3.50 19.17 4.90 4.46 1.00 0.19 2.00 9.17 6.15 3.60 6.75 2.35 1.76 7.51 6.10 12.10 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
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
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
52WK HI 2.25 4.31 2.06 191.61 158.55 1.63 1.77 1.71 1.17 7.89 9.35 6.80 11.39 12.15 10.63 10.00 8.69 11.79
52WK LOW 1.67 3.04 1.68 164.74 116.70 1.56 1.68 1.65 1.09 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20
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)
MUTUAL FUNDS
MARKET TERMS
LAST CLOSE 4.10 17.43 6.00 5.92 2.46 1.80 4.80 11.06 6.16 4.06 7.20 3.08 3.19 10.51 7.00 16.50 9.25 3.20 14.20
CLOSE 4.10 17.43 6.00 5.92 2.46 1.80 4.80 11.06 6.16 4.12 7.20 3.13 3.19 10.64 7.00 16.50 9.30 3.41 14.20
CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.06 0.00 0.05 0.00 0.13 0.00 0.00 0.05 0.21 0.00
1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00
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
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
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
VOLUME
7,650
2,000 1,385
VOLUME
NAV 2.25 4.31 2.06 191.61 158.33 1.63 1.77 1.71 1.17 8.01 9.60 6.83 11.30 12.30 10.68 9.92 8.68 11.38
EPS$ 0.239 0.932 1.760 0.369 0.070 0.000 -0.438 0.722 0.449 0.184 0.140 0.102 0.467 0.000 0.728 0.816 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 0.610
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
P/E 17.2 18.7 N/M 16.0 N/M N/M -11.0 15.3 13.7 22.4 51.4 30.7 6.8 N/M 9.6 20.2 9.9 16.8 22.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0
YIELD 3.90% 7.23% 0.00% 4.22% 0.00% 1.11% 0.00% 6.51% 3.57% 2.91% 0.00% 2.17% 1.88% 3.08% 3.43% 3.27% 2.15% 3.52% 4.30% 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
YTD%12 MTH% 2.15% 3.88% 1.61% 4.11% 1.53% 2.74% 3.85% 6.28% 7.12% 2.08% 1.91% 4.55% 1.45% 4.30% 1.67% 4.21% 4.75% 7.44% 5.53% 8.48% 8.12% 12.28% 3.03% 4.85% 9.83% 0.60% 3.92% 3.72% 2.47% 3.16% -0.71% 0.16% 7.40% 2.70% 10.20% 1.30%
NAV Date 31-Jul-2019 31-Jul-2019 26-Jul-2019 30-Jun-2019 30-Jun-2019 31-May-2019 31-May-2019 31-May-2019 31-May-2019 31-Aug-2019 31-Aug-2019 31-Aug-2019 31-Aug-2019 31-Aug-2019 31-Aug-2019 30-Mar-2019 30-Mar-2019 30-Mar-2019
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
TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | COLONIAL 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333
three-year duration was sufficient, Mr Hutton replied: “I think it might be. I think it’s too early to tell, and if it needs to be extended longer then hopefully that’s an option they do have. Initially I think three years is reasonable.” Dr Hubert Minnis’s announcement also addressed any confusion and uncertainty arising from the fact that the initial postHurricane Dorian exigency Order, granting import tariff and “border” VAT exemptions, only lasts until early October. “They put it in place before anyone realised the extent of what was going to be needed,” Mr Hutton added, revealing that the prime minister had indicated he was “definitely open to reviewing” the original exigency order when he met with the Bahamian private sector last Thursday. “As of right now, if you wanted to bring in stuff for construction, there are no ships coming in from the US as the port is still closed. Every day is ticking by, and you can’t stuff here to get the exemptions. The government has recognised that, and I think there’s a desire to be flexible as events unfold.” The prime minister yesterday said the combined tax breaks and incentives package to stimulate recovery in the areas hardest hit by Dorian largely mirrors that employed for his Overthe-Hill revival initiative, although it goes beyond that in a bid to revive the real estate market so vital to Abaco’s economy. A VAT credit of up to 50 percent upon the sale of all property in the Economic Recovery Zones will be permitted - a benefit that could be worth several million dollars to buyers and sellers of high-end property in Abaco and its cays. To qualify for this credit, the sale must immediately be followed by substantial construction or enhancement to the property, or its use for significant commercial activity. The qualifying activity must begin within 75 days of the sale closing, be followed through the scheduled completion otherwise the full VAT sum becomes payable. Elsewhere, real property tax will not be payable on all eligible properties that are reconstructed, restored or otherwise inhabitable by October 2020. The government, however, recognised that any real property tax breaks would solely apply to foreign real estate owners, as Bahamian-owned property in the Family Islands is not subject to this tax. Rather than a blanket exemption, the Prime Minister announced in foreign land holders in Abaco, the Abaco cays and east Grand Bahama “may” be able to benefit from real property tax breaks only if their developed properties are up to standard or they are taking steps to getting them back up to standard. While this is designed to aid the second home and vacation rental market, undeveloped properties owned by foreigners in the Economic Recovery Zones will not benefit from the real property tax exemption. Elsewhere, the government is establishing a $10m loan guarantee and equity financing facility that is targeted at micro, small and medium-sized (MSME) enterprises to either help them re-open or create new businesses. An applicant will be able to secure a maximum of $500,000. Dr Minnis also foreshadowed the creation of a “one stop shop” for business assistance for Abaco and Grand Bahama, which will be charged with ending the bureaucracy and red tape facing businesses. It will be
JEFFREY BECKLES staffed by personnel from the Small Business Development Centre (SBDC), Bahamas Investment Authority, Ministry of Finance, Department of Inland Revenue, The Department of Environmental Health Services (DEHS) and Building Permits Unit. Otherwise, the tax break and incentive package was largely predictable. It features duty-free and VAT ‘border’ free purchasing of all materials, fixtures and furniture, plus vehicles and equipment required for all business and residential reconstruction. It also extends to all domestic purchases of qualified items so that Bahamian wholesalers and distributors benefit, too. Business license fees will be waived within the zones, while the availability of provisional business licences will enable entrepreneurs to start their operations within two business days. Businesses and companies taking advantage of these concessions will have to register with the government as a means to prevent fraud, tax evasion and other abuses. Dr Minnis said he is extending Freeport’s “bonded items” facility to east Grand Bahama and the Abacos, in a bid to enable both Dorian victims and Bahamian businesses to benefit from the recovery effort. He pledged a five-day turnaround time for business licence applications. Jeffrey Beckles, the Bahamas Chamber of Commerce’s chief executive, yesterday told Tribune Business that “significant tax breaks” are needed to “get the ball rolling” on post-Dorian recovery. Disclosing that the private sector had been anticipating the “Economic Recovery Zones” plan following its Thursday meeting with Dr Minnis, Mr Beckles said: “It’s the right move in terms of what it’s going to take to get these areas back up and running. “If you take it from the perspective of losing second and third largest contributors to our economy, and the expansive displacement of people, taxpayers if I may put it that way, it’s going to take that kind of move to facilitate the recovery for those places and, indeed, The Bahamas in the meantime. We don’t have the capacity to replace those lost revenues.” Abaco generates around $120m per year for the Public Treasury, and Grand Bahama another $137m, Dr Minnis said yesterday. Mr Beckles added: “There’s no doubt the government is going to have to chip in some money to help this. “Part of our meeting on Thursday spoke to the capacity that exists in the private sector. The private sector is going to have to invest in this as a true partner with government, as it’s too much heavy lifting to be done alone if you want recovery to happen sooner rather than later... It opens the door to a more efficient plan, wider engagement and dialogue that this thing needs. “There has to be significant tax benefits to get the ball rolling, because the government will collect its money half-way through and on the back end. It’s the right thing to do. A lot of people may not be able to afford additional borrowing and loans, so the benefit is going to accrue from tax benefits,” Mr Beckles continued. “We’re very ready as the private sector to put our shoulder to the wheel and work with the government to make this happen.”
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, KELLIYA ROBERTSWHITFIELD, of P. O. Box N-3848, #12 Oxford Drive, New Providence, Bahamas, Mother of FRANKIE KELLY PIERRE, a minor, intends to change my child’s name to FRANKIE KELLY ROBERTS-WHITFIELD. 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.