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WEDNESDAY, SEPTEMBER 25, 2019
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PETER TURNQUEST
DPM: ‘No room’ for bribe paying By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE deputy prime minister yesterday asserted “there is no room” for the conduct that saw The Bahamas ranked as the region’s worst when it came to paying “bribes of convenience”. KP Turnquest urged Bahamians to inform the relevant minister or permanent secretary of such conduct if they were shaken down for a bribe by public officials in return for accessing essential services. Voicing hope that increased reliance on e-government and technology platforms to deliver these services would reduce the opportunity for graft and rent seeking, Mr Turnquest said the “21st century” Bahamas should not have to rely on corruption and under-the-table payments to incentivise civil servants to perform the jobs they are being paid for. Disclosing that he not seen media coverage of Transparency International’s report, Mr Turnquest said: “I can say this much: We have said from day one that we will not tolerate that kind of activity that we know has happened in the past. “We have worked very hard to try to be efficient, to try to be transparent about what we do. We’ve installed and implemented technology solutions to try to take away some of the need for that kind of thing.” He added: “We want an efficient, well run, transparent service that works for the benefit of the people and, to the extent that there has been any need for a tip or the public feels there is a need for a tip or some kind of gratuity, they should bring that to the attention of the permanent secretary or to the minister, and I am sure it would be dealt with because there is no room for that. “This is the 21st century. For God’s sake we ought to be able to deliver services efficiently without the need for any kind of graft or any kind of incentive for people to do their jobs, and that’s what we are working towards: A modern, efficient government utilising technology and digital services to streamline processes to help us deliver services we deserve.” Mr Turnquest was responding to Transparency International’s Global Corruption Barometer study, which found that The Bahamas leads the Latin American and Caribbean region for paying “bribes
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GB Power: Extra $6m-$10m ‘pays off’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
GRAND Bahama Power Company yesterday said the extra $6m-$10m it invested in strengthening its network over the past two years “really paid off” during Hurricane Dorian. Dave McGregor, the utility’s chief executive, told Tribune Business that damage to its transmission and distribution (T&D) network would be “substantially less” than the near-$28m cost incurred to rebuild it following Hurricane Matthew due to the system “hardening” measures implemented over the past three years since that storm. He revealed that this had reduced the time taken to restore electricity services by a whole week, and that all Freeport’s communities and subdivisions should be
• Network hardening reduces outage time • CEO: All Freeport ‘energised’ by week’s end • T&D damages ‘much less’ than Matthew “energised” by week’s end even if individual homes and businesses cannot yet be restored to the grid because of flood damages. Disclosing that GB Power was “making quite extraordinary progress” in its post-Dorian restoration efforts, Mr McGregor said the category five storm had been a rain/flooding rather than wind damages event for the utility and its infrastructure assets. Besides the loss of “most” of its 92-strong vehicle fleet in Dorian’s storm surge, the GB Power chief said both its Peel Street generation plant and 50 percent of its substations were flooded out - with two of the latter
submerged in four feet of sea water. With Peel Street’s 50 megawatts (MW) of generation capacity likely to be lost for months, Mr McGregor revealed that GB Power would rent eight MW of rental generation capacity from Aggreko, the same supplier used by Bahamas Power & Light (BPL), to eliminate the possibility of any load shedding. While GB Power’s newer West Sunrise plant remains fully operational at 48 MW, and peak customer demand currently sits at 30 MW, it wants to have sufficient back-up for when individual engines were taken out of service for
A MAJOR Freeport retailer/wholesaler is aiming to “fully reopen” its building materials division tomorrow, as it pledged to rebound from Hurricane Dorian “stronger than ever before”. John Doherty, Kellys (Freeport’s) general manager, told Tribune Business that the company had made significant “strides” in rebuilding inventories and clearing out premises that had been devastated by the category five storm’s flooding just three weeks before.
Kelly’s (Freeport) to make good on long-held plans to modify and upgrade its retail store. Mr Doherty also revealed that the company had managed to keep all its 124 staff employed in Dorian’s aftermath, with 90 percent of employees present when the immediate post-Dorian damages assessment was conducted. Emphasisng that the financial cost inflicted by Hurricane Dorian was
Dorian’s $80m hit to farms, fisheries ‘quite staggering’ By YOURI KEMP
“not as important” as the resumption of operations, he revealed that 11 trailers had already come in post-storm to enable Kelly’s (Freeport) rebuild its inventories following the worst damage sustained by the business in its 54-year history. “We’ve made quite a few strides,” Mr Doherty told Tribune Business. “We have
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scheduled maintenance. Confirming that power has been restored to more than 90 percent of dry homes in non-flooded areas, Mr McGregor said GB Power’s focus was now shifting to those areas of Freeport and West End that had sustained water damage during Dorian. He acknowledged that the utility’s customer base was likely to be less than the 19,000 pre-Dorian as some businesses never reopen and homeowners opt to leave the island, estimating there would be “a few thousand we will not see for quite a while”.
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• Kelly’s (FPO) to re-open building materials • ‘Never sustained’ Dorian-type damages in history • Lost entire vehicle fleet, and retail store flooded out Estimating that the company’s building materials division was “about 80 percent fully recovered”, Mr Doherty said its housewares-focused retail store had progressed less due to the five-and-a-half feet of flood water intrusion it suffered. Suggesting that this business unit may not be fully operational until the New Year, he added that Dorian nevertheless may have created an opportunity for
MICHAEL PINTARD
HURRICANE Dorian has inflicted “quite staggering” $80m-plus damages on the Bahamian agricultural and fisheries industries, a Cabinet minister revealed yesterday. Michael Pintard, minister of agriculture and fisheries, said the government was now determining what relief packages it can provide to producers given that Abaco is the leading agricultural island in The Bahamas. Speaking ahead of yesterday’s Cabinet meeting, Mr Pintard said of Dorian damage assessments: “The initial figures are quite staggering. Comfortably they are in excess of $80m from the initial reports that we have. “Two of the three most important economies in The Bahamas have been devastated, with Abaco being arguably the leading economy as it relates to agriculture, with some of the major producers like Abaco Big Bird and Five Star Farms and others being on that island.” Mr Pintard sought to reassure farmers, saying: “We are now in the process of considering what package might the government, in conjunction with the international community, offer farmers and fishers who do not have insurance. Most of that sector does not have insurance and we have an obligation, in my mind, to assist them.” Confirming that more detailed assessments are ongoing, Mr Pintard added: “You have to actually find farmers and fishers as well to get their
Dorian-hit firm: We will be ‘stronger than ever’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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Bahamians must ‘mobilise corruption outrage to action’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMIANS must “mobilise their outrage into action” if this nation is to defeat both real and perceived corruption plaguing society, governance reformers urged yesterday. Matt Aubry, the Organisation for Responsible Governance’s (ORG) executive director, told Tribune Business that The Bahamas has “a real unique opportunity” to attack graft given that 85 percent of Bahamians believe ordinary persons can make a difference in fighting it. That finding was contained in Transparency International’s latest Global Corruption Barometer study of the Latin America and Caribbean region, which also noted that 80 percent of Bahamians felt
• Reformers to launch National Integrity Campaign • Say Bahamas has ‘real unique opportunity’ to attack graft • PM’s $200m-$500m corruption cost range ‘indicative’
MATT AUBRY corruption in government was a major problem. This placed The Bahamas behind only Trinidad & Tobago of the five Caribbean nations surveyed by Transparency International, while 45 percent of
Bahamians polled feel corruption has increased over the past 12 months. Mr Aubry, though, argued that the findings did not surprise ORG ahead of the upcoming launch of its National Integrity Campaign. “From the data we see in the Global Barometer, it is heartening to see 85 percent of Bahamians polled felt ordinary citizens can make a difference,” he told Tribune Business. “That is what this campaign hinges on. “What this poll shows is there’s a real interest and appetite. The hope is, and ORG is trying to create the opportunity, for us to push forward in a way to change
things. Just to be angry, just to be frustrated, just to be suspicious results in an emotional response that sees people vote to change the government every five years. “A campaign on this legislation [the Integrity Commission Bill] that sits ready to go is a good potential solution to this.... It’s critical to mobilise our discontent into action. That people not only see corruption as illegal, but its impact. It disproportionately affects those who have the least. They’re waiting in line longer, unable to access government services, and most likely to be solicited.”
Pointing to the Bill as an example, Mr Aubry said ORG had been puzzled as to why there was no public pressure on the government to move this anti-corruption legislation forward despite it “sitting” for two years and clear Bahamian frustration with the problems it is supposed to cure. “The conclusion for is was that it’s so ingrained in the culture that people feel this is what should be done. It’s become the nature, it’s become systematic, whether perceived or real, because of the inefficiency of the government system,” Mr Aubry said of paying bribes to public officials. “It’s become a faster way around roadblocks, and an opportunity for many to move things along, get to the finish or how to
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THE TRIBUNE
BTC to resume mobile billings THE Bahamas Telecommunications Company (BTC) yesterday said it had made good progress with the restoration of its mobile network in Grand Bahama. Garfield “Garry” Sinclair, BTC’s chief executive, said: “Our crews have made really good progress on restoring all services to Grand Bahama. Mobile service has now returned to West End, Bootle Bay, Bootle Bay West, Eight Mile Rock, Bain Town, Lewis Yard, South Bahamia West, Freeport, OPM Bahamia, Taino Beach, Midshipman, Our Lucaya Hotel, Our Lucaya Indoor and Chesapeake. “We are also restoring fixed services as commercial power has been reconnected. We’ve been
BTC staff takes group photo in Grand Bahama. able to identify operational equipment and immediately connect customers, in addition to repairing
and replacing the damaged equipment where necessary. “Landline and Internet services are currently
available in West End, Bootle Bay, Eight Mile Rock, Roosters, GB Shipyard, Freeport, Yorkshire Drive, Lucaya, Midshipman, Taino Beach, Green Turtle, Oceanhill Boulevard, Balao, Oceanside
Drive and Suffolk Lane.” BTC said it continues to offer free wi-fi services in Grand Bahama at the Grand Lucayan hotel, Christ the King, St George’s High School, St John’s Jubilee and The Church of the Ascension. Free wi-fi is also still available at Calvary Baptist Church, the Kendal Isaacs gymnasium and Fox Hill Community Centre in New Providence. BTC added that it remains focused on restoring services to the Abaco Cays, and the Big Bird Farm community is expected to be online within the next few days. It has provided free mobile services to all customers in Grand Bahama and Abaco since September 4, resulting in both voice and data traffic now exceeding pre-hurricane levels. Prepaid billing for mobile services in Grand Bahama will resume today, and
billing for postpaid mobile customers will restart on October 1. However, postpaid customers will continue to receive unlimited data until further notice. Also, effective from today, Grand Bahama prepaid customers will receive double-data with every “Always-On” combination plan purchased. Abaco customers will continue to receive free voice and data service until further notice. The company’s “click to donate” campaign is ongoing so that customers can donate to the Ranfurly Home for Children. It has more than doubled its numbers over the past few weeks, as they are now accommodating children evacuated from the Grand Bahama Children’s home as well as those displaced as a result of Hurricane Dorian.
Realtor adds sales agent By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net DAMIANOS Sotheby’s International Realty has named Christina Cunningham as the latest estate agent to join its sales team. “The Nassau real estate market continues to grow at a steady pace,” Lana Rademaker, the company’s chief brokerage officer, said. “It is our utmost priority at all times to make sure we have the right agents in place so that our clients receive the impeccable service we pride ourselves on.” Born into a family of real
CHRISTINA CUNNINGHAM estate developers, and capitalising on her background as a client relationship manager in the private banking sector, Ms Cunningham said the transition to residential real estate was the next logical step in her career.
“I am extremely detailoriented and adept at breaking down information in order to guide my clients toward the best financial decisions,” Ms Cunningham said. “And now I get to combine those skills with my personal passion—sharing the beauty of The Bahamas with new clients as an estate agent.” “Christina’s professional background gives her a unique understanding of the financial markets,” Ms Rademaker said. “This is an important asset to have in today’s active real estate market where buyers and sellers are becoming more and more savvy.”
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Wednesday, September 25, 2019, PAGE 3
DORIAN BLOWS AWAY 2,500 TOURISM JOBS By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
SOME 2,500 tourism jobs, which supported more than 10,000 family members, were blown away by Hurricane Dorian it was revealed yesterday. The category five storm’s impact on employment levels in The Bahamas’ largest private sector industry was exposed by Bahamian and regional tourism associations as they unveiled an initiative to find work for hospitality workers displaced by the storm.
The Caribbean Hotel and Tourism Association (CHTA) and Bahamas Hotel and Tourism Association (BHTA) announced their Tourism Jobs for Bahamians initiative, which aims to secure temporary employment for impacted workers. They are working with public and private sector tourism partners in the Caribbean, The Bahamas and South Florida. “Hurricane Dorian, one of the strongest storms on record, blew more than 2,500 hospitality professionals out of work in the Abacos and Grand Bahama, eliminating jobs that were
supporting more than 10,000 family members in these islands,” the CHTA said in a statement. “The strong Bahamas tourism sector has created a wealth of skilled and dedicated tourism professionals who would be an asset to any hotel or tourism business,” said CHTA president, Patricia Affonso-Dass, who runs Ocean Hotels in Barbados. “Even short-term seasonal positions would allow these Bahamian professionals not only to enhance other destinations but also to expand their own skills and experience.”
To identify these temporary positions, the CHTA is deploying its Caribbean Tourism Job Bank, set up in the wake of Hurricanes Irma and Maria in 2017, to connect job seekers with opportunities in the 80 percent of The Bahamas that the hurricane missed. The Job Bank will also seek openings in the Caribbean, the US and Canada. Among the early responders to the CHTA appeal are unaffected Bahamas hotels such as Sandals, with has three Bahamian properties; Baha Mar; Atlantis; and hotels in the Out Islands of Eleuthera, Exuma,
Andros, Bimini, Cat Island and Long Island. The CHTA is also reaching out to prospective employers through the Greater Miami and the Beaches Hotel Association. It called on potential employers to use the job bank to post openings for the full range of hotel and tourism functions - from management, supervisory and line level positions to areas such as chefs, bartenders, engineers, groundskeepers, marina support, sales, marketing and accounts. The CHTA said several hotels have already tapped the pool of experienced
Bahamian hospitality employees, while others have committed to hiring displaced workers. “CHTA hopes that humanitarian and economic considerations will allow for a temporary waiver of visa restrictions, particularly in South Florida, where hotel employers report difficulties in filling many positions, given the low unemployment rate and where many affected Bahamians have extended friends and family who can provide added support, like housing, to help tide over the period before they return to The Bahamas,” the Association added.
ENVIRONMENTALISTS ‘NOT ONLY OIL DRILLING VOICES’
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A CABINET minister yesterday said environmentalists are “not the only voice in the room” when it comes to determining whether The Bahamas should permit oil exploration in its waters. Romauld Ferreira, minister of the environment and housing, said the debate over whether to approve such activities remained “speculative” because Bahamas Petroleum Company (BPC) - the one company approved to conduct exploration - had yet to confirm the presence of commercial quantities of recoverable oil. Pointing out that the Minnis administration had inherited BPC’s approved licences from its predecessors, Mr Ferreira said it had decided not to issue any further offshore oil drilling and exploration licences. “The BPC situation was an ongoing concern, so it wasn’t really a new licence,” he explained, suggesting that the debate over whether to approve drilling and exploration activities in Bahamian waters should only take place if oil is discovered. “No one has drilled any test well because there is no sort of concrete determination that we have oil in the rocks or oil in the substratum or oil below ground in The Bahamas. But that’s the debate for a national discussion,” Mr Ferreira said. “I think all Bahamians are excited, and some are concerned, about the prospect of finding oil. The environmentalists are concerned, and they have every right to be, but of course they’re not the only voice in the room and so we consider all opinions and we’ll make a decision should we find oil.” Yet he reiterated: “Remember all of this is very speculative. We
still have not confirmed the presence of oil in the substratum.” Environmentalists have already branded BPC’s plans to drill a first exploratory well several hundred miles south-west of Andros, in waters close to the maritime boundary with Cuba, as “absolutely disturbing”. The likes of Joseph Darville, of Save the Bays and Waterkeepers Bahamas; Sam Duncombe of reEarth; and Casuarina McKinney-Lambert, executive director of The Bahamas Reef, Environment and Educational Foundation (BREEF), have all argued that permitting fossil fuelrelated activities goes against the climate change fight that is critical to The Bahamas’ future. The burning of oil and other such fuels is seen as a key contributor to the global warming blamed for producing storms with the power of Hurricane Dorian, resulting in environmental activists charging that it would be hypocritical for The Bahamas to permit exploration activities especially at a time of such suffering. There are also fears that oil exploration is incompatible with The Bahamas’ major industry, tourism, and the pristine environment this nation relies upon to attract such business especially should a spill or some kind of accident pollute the country’s waters. BPC, though, has repeatedly pointed out that its activities will take place well away from The Bahamas’ major tourism centres and islands, with the tidal currents likely to take any spills away from those areas. It has also emphasised its commitment to adhere to high environmental standards. There is also the argument that The Bahamas cannot afford to ignore the potential multi-million dollar windfall from an oil discovery, especially
Dorian’s $80m hit to farms, fisheries ‘quite staggering’ FROM PAGE ONE information and, up to yesterday, I have still been getting information from fishers affected in east Grand Bahama who we could not reach in the initial assessment.” When asked where the government will find the funding to assist farmers, Mr Pintard said: “We have to re-prioritise resources we already have. Secondly, Cabinet has already approved extra spending for the various sectors, with agriculture being one of those sectors. “The approval for the additional funds is clearly insufficient, and this is part of why we have to have discussions with international partners to see if we can find additional ways we can access resources to impact them.” He continued: “We have to make a determination on how much would be given to not just registered farmers, but also unregistered farmers. Because we have some farmers who were not functioning due to illness or even as a result of the previous hurricane were not functioning in the period
of time after those personal tragedies or environmental tragedies.” “There may be an unregistered farmer who, in reality, had it not been for their personal tragedy would be registered and would benefit… In my mind they should benefit.” Mr Pintard reiterated his appeal for the agricultural community to provide all necessary information so that the government, along with international aid agencies conducting the assessments, can have a better idea on how significant Dorian’s impact was on their facilities, equipment, vehicle and products - whether plants or livestock, or processed inventory that food processors may have. He reaffirmed that officials from his ministry, along with international specialists from the Food and Agricultural Organisation (FAO), the Inter-American Institute for Cooperation on Agriculture and the Caribbean Agricultural Research and Development Institute have completed their initial rapid assessment on Abaco and Grand Bahama.
given its need for an economic game-changer and the extent of the fiscal damage and losses created by Hurricane Dorian. Simon Potter, BPC’s chief executive, told Tribune Business this week that shareholder approvals at the company’s recent annual general meeting (AGM) had
provided total certainty that it will be able to finance the $20m-$25m cost of its first exploratory well 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 “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.
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THE TRIBUNE
GB Power: Extra $6m-$10m ‘pays off’ FROM PAGE ONE “We’re getting there day by day,” Mr McGregor told Tribune Business of GB Power’s storm restoration efforts. “We’re making quite extraordinary progress. We’re doing really, really well and a lot of lights are on in Freeport. “Now we’re moving
into the low-lying areas of Freeport; a number of subdivisions that were very badly flooded. Our approach was focused on the areas that were least damages and least flooded, and getting them back on, as well as a focus on the big industrials.” Mr McGregor said the likes of the Freeport Container Port, Polymers
International and Pharmachem were all back on GB Power’s grid and “ramping up production” as part of a plan to get residents back to work. The utility has also completed restoring energy to essential services such as the police, hospital and relief agencies. Explaining that GB Power’s restoration efforts will
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now be moving “one home at a time rather than one street at a time”, he added: “We’re going into those wet areas where many of the homes are flooded and are being dried out, and need to be cleared by electrical inspectors before we can switch them on. “We have energy on in all neighbourhoods bar three, and one of those should be done by [last] night. Somebody has to be last, unfortunately.... There will be power on lines in all streets in Freeport by the end of this week.” Mr McGregor identified the Heritage and Pioneer’s Way subdivisions as being among the last to get re-energised. He added, though, that it was “a different story” in east Grand Bahama - the area hit hardest by Dorian. Mr McGregor said GB Power was “for now” not rebuilding its main transmission line to the area, which had only provided it with around 300 customers pre-storm. With that number now “considerably less”, Mr McGregor said the utility will work with the government and relief agencies to determine where communities and persons are now located and seek to provide appropriate localised energy solutions such as solar and battery power. Still, he said that GB Power’s ability to rebound quickly outside of east Grand Bahama showed that the utility had learned the lessons from Hurricane Matthew’s devastation of its T&D grid in October 2016. “Our system held up really well in the wind,” Mr McGregor told Tribune Business. “Over the last few
years we’ve been hardening our system after Matthew, putting in stronger poles, and it really paid off. “We rebuilt the system better, we rebuilt the system stronger, and continued to invest $3m-$5m extra for the last two years, over and above what we normally invest, to further strengthen the system. That shortened the outage time by one week. On the T&D system, the wires, the poles and the transformers, [the costs] will be substantially less than Matthew.” Mr McGregor said the major difference between Dorian and Matthew was the flooding of GB Power’s Peel Street generation plant, which was inundated by three to four feet of storm surge. While this facility is insured, the GB Power chief said it is likely to be out for months, forcing the company to turn to rental generation as a safety measure. “Peel Street was worth about 50 MW to us,” he told Tribune Business. “Our current peak is 30 MW. We have enough generation at our West Sunrise plant to cover that for a while yet, but will be bringing in some Aggreko generation to make sure we don’t run into load shedding while we see what the Peel Street solution is - a like-forlike rebuild, or something different. “We’re going to get eight MW in to begin with in a week, as load shedding is something we’re keen to avoid.” While West Sunrise provides 48 MW, Mr McGregor said its output dropped to 40 MW when one unit is taken off-line for scheduled maintenance - as is due to happen soon.
Emphasising that he did not want to repeat the problems afflicting New Providence on Grand Bahama, Mr McGregor said the utility - which is 100 percent owned by Canadian giant, Emera - started ordering teams and repair equipment from its affiliates “during the storm”. Praising GB Power staff for the “amazing” work done in restoring the company’s four Dorian-damaged substations, two of which were submerged in four feet of sea water, Mr McGregor said the utility was likely to end up with less than its 19,000 preDorian customers as some businesses and homeowners will never return. “We don’t have a good feel for it. Is it 15,000? Is it 12,000? We don’t know. I’m imagining it’s going to be a few thousand customers we’re not going to see for quite a while, but we’ll be focusing on getting everyone going - every business and home that’s there,” he told Tribune Business. With GB Power awaiting environmental clearance to make the hoped-for move back into its headquarters building today, after it was flooded by two feet of water, Mr McGregor said the company would not “over burden” customers despite the financial hit it has suffered itself. “We’re running a lot of expenses, and revenues are down,” he added. “It’s not a good place to be, but we have a track record of innovating our way out of higher costs, reduced revenues and maximising insurance payouts, and not over-burdening customers dealing with the after-affects of the worst hurricane ever seen.”
DPM: ‘No room’ for bribe paying FROM PAGE ONE of convenience” to public officials so that “things are done more quickly or better”. The Transparency International report covers 18 nations, including corruption-riddled states such as Venezuela and five Caribbean countries, which includes Jamaica, Barbados, Trinidad & Tobago and Guyana as well as The Bahamas. Among the most troubling findings was that The Bahamas ranks ahead of crisis-torn Venezuela for paying “bribes of convenience”. Some 41 percent of Bahamians who admitted to paying bribes said this was the reason for doing so compared to the 21 percent Latin American and Caribbean average. Such bribes were described as payments “to get things done more quickly or better”, meaning that they were intended to facilitate “queue jumping” at Bahamian government agencies and/or to obtain permits, approvals and documents (passports, driver’s licences, Immigration cards) when applicants did not have all the supporting paperwork required or are here illegally. “Interestingly, only 33 percent of bribe payers report having been asked to pay, while 20 percent say that although not explicitly asked, they knew that an informal payment is expected,” Transparency International said of its regional findings. The results provide an
insight into how every day, low-level forms of corruption have seemingly become routine and ingrained in Bahamian culture. These include the practices of “buying public officials lunch” to ensure they perform functions they are already paid to do, plus more lavish gifts and payments depending on what is being sought and the associated difficulty, The Transparency International findings, obtained from 1,007 telephone interviews with Bahamians conducted by the Public Domain polling firm earlier this year, also revealed that the proportion of Bahamians paying a bribe within the past 12 months had doubled compared to Transparency International’s survey of The Bahamas last year. While the 2018 survey found that one in ten Bahamians, or ten percent, admitted to paying a bribe during the prior year, that percentage rose to 20 percent - one in five - for the 2019 survey, indicating that the graft culture is getting worse rather than improving. And The Bahamas was also ranked second in the Latin American and Caribbean region for “sextortion”, with 24 percent of Bahamians revealing they had personally been - or knew someone who had been - asked for sexual favours in return for receiving public services including health and education. Only Barbados, at 30 percent, achieved a worse ranking.
NOTICE
NOTICE is hereby given that JACQUELINE JOSEPH of #15 Clarky Alley, Kemp Road, Nassau, 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 18th 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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Dorian-hit firm: We will be ‘stronger than ever’ FROM PAGE ONE
gotten in quite a bit of new inventory, and all of our external warehouses have been cleaned up and cleaned out to make them available for new stock which we’ve actively had coming in for a few days now. “We still have some goods from our pre-Dorian inventory that we have been able to utilise because they were put up higher in anticipation of potential flooding. Proactive thinking allowed us to save stock that we were able to sell as soon as the storm passed, but unfortunately we did not anticipate the flooding to the degree it was.” The Kelly’s (Freeport) general manager added
that they were able to save around 50 percent of the company’s bulk inventory despite sustaining severe flooding damage elsewhere. “It was serious damage,” he revealed. “We lost our entire fleet of vehicles; all the delivery trucks coupled with all the forklifts. We lost the entire fleet. We had fiveand-a-half-feet of water in the retail store. Thankfully we have a lot of mezzanine levels in the warehouses, where we were able to put the higher-dollar, fast-moving goods on higher ground. “You always plan for the worst and hope for the best, but in this case we got a little more of the worst than we anticipated. The most important thing is we have a staff body of 124 of employees. Immediately
Wednesday, September 25, 2019, PAGE 5 after, when we came and did the assessment, some 90 percent of the staff were present. The rest were dealing with individual losses. “We’ve had everybody that was employed show back up for work, and thankfully we’ve been able to keep everyone employed and not been forced to lay anyone off. The Kelly family have stood by us, and we’ve stood by them.” Mr Doherty revealed that Kelly’s (Freeport’s) immediate post-storm sales had been to the Grand Bahama Port Authority (GBPA) and larger contractors for immediate post-Dorian remediation. Now, with inventories rebuilt, he told Tribune Business: “We anticipate being fully open on the building materials and some hardware items on Thursday [tomorrow]. “We’re continually adding to the inventory levels every day, building it back up and adding more options for the public. So
LEGAL NOTICE
(b)
(c)
NOTICE
KAU MANAGEMENT LIMITED
PRETTY SKY LIMITED N O T I C E IS HEREBY GIVEN as follows:
KAU MANAGEMENT LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.
(a)
The dissolution of the said company commenced on the 19th September, 2019 when the Articles of Dissolution were submitted to and registered by the Registrar General.
(b)
The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas
(c)
Dated this 25th day of September, A. D. 2019 _________________________________ Bukit Merah Limited Liquidator
repurposing and redesigning what was there bigger and better. That means it may take a little more time to open back up.” Mr Doherty projected that the store’s first section would likely be ready “within two months” by November, and suggested the unit would be fully ready come 2020. “We’re racing to have something up and running by Christmas,” he told Tribune Business, “and working feverishly to achieve that goal. “We have very ambitious goals, but believe it’s best to shoot for the stars and hopefully land somewhere in between.” Revealing that Dorian was the worst storm that Kelly’s (Freeport) has encountered in its 54-year history, Mr Doherty said the company was still assessing the damage to its business and the likely recovery costs. While it was
PRETTY SKY LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. The dissolution of the said company commenced on the 19th September, 2019 when the Articles of Dissolution were submitted to and registered by the Registrar General. The Liquidator of the said company is CST Administration (Bahamas) Limited of the Bahamas Financial Centre, Shirley and Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas.
“insured to some degree”, he revealed it was not fully covered as “destruction like this was something we thought would never happen to this degree”. “In 54 years we’ve never sustained this type of damage,” Mr Doherty told Tribune Business. “Dorian was something that nobody anticipated being as strong, powerful and damaging to all the companies on this island. It was unforeseeable that something of this magnitude could happen to Kelly’s and many businesses in this area. “Kelly’s is here to stay, and will help to rebuild the island. We’re up to the challenge, and will open back up as the new Kelly’s. We’re redesigning and coming back stronger than ever. Not many companies have been able to maintain their entire staff.”
LEGAL NOTICE
NOTICE
LEGAL NOTICE
NOTICE N O T I C E IS HEREBY GIVEN as follows: (a)
far we’ve gotten in about 11 trailers since the storm. Vehicles will be able to use the drive through and load up with supplies they need to start the rebuilding.” Mr Doherty added that the building materials division was “about 80 percent fully recovered” from Dorian, while the retail store’s progress was estimated at around 40 percent. “The retail store remains a bit of a challenge,” he said. “We’re in the process of taking everything out so we can start to clean, start rebuilding inventories and putting fixtures back in there. We had always planned on doing some renovations and modifications to the store, and this circumstance allows us to execute these plans we’d like to have done during normal operations hours. “We have an opportunity to redo and repurpose, and bring on board a new retail store once complete. It’s about reinventing,
SSYT LIMITED N O T I C E IS HEREBY GIVEN as follows: (a)
SSYT 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 19th September, 2019 when the Articles of Dissolution were submitted to and registered by the Registrar General.
(c)
The Liquidator of the said company is Leeward Nominees Limited, Vistra Corporate Services Centre, Wickhams Cay 11, Road Town, Tortola, British Virgin Islands.
Dated this 25th day of September, A. D. 2019
Dated this 25th day of September, A. D. 2019
_________________________________ Leeward Nominees Limited Liquidator
_________________________________ CST Administration (Bahamas) Limited Liquidator
LEGAL NOTICE
NOTICE A LITTLE TREASURE BOX LTD N O T I C E IS HEREBY GIVEN as follows: (a)
A LITTLE TREASURE BOX LTD. 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 19th September, 2019 when the Articles of Dissolution were submitted to and registered by the Registrar General.
(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 25th day of September, A. D. 2019 _________________________________ Bukit Merah Limited Liquidator LEGAL NOTICE
NOTICE CASTLE FAME LIMITED N O T I C E IS HEREBY GIVEN as follows: (a)
CASTLE FAME 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 19th September, 2019 when the Articles of Dissolution were submitted to and registered by the Registrar General.
(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 25th day of September, A. D. 2019 _________________________________ Bukit Merah Limited Liquidator LEGAL NOTICE
NOTICE TLH LIMITED N O T I C E IS HEREBY GIVEN as follows: (a)
TLH 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 19th September, 2019 when the Articles of Dissolution were submitted to and registered by the Registrar General.
(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 25th day of September, A. D. 2019 _________________________________ Bukit Merah Limited Liquidator
PAGE 6, Wednesday, September 25, 2019
THE TRIBUNE
Bahamians must ‘mobilise corruption outrage to action’ FROM PAGE ONE
jump the queue. It could easily shift to where there’s no mention that you’re expected to pay a bribe,
but that this is the way of getting around an inefficient system. There’s no need to solicit; everyone understands.” With such a culture
“inculcated in the national processes”, Mr Aubry said it could evolve to a situation where “the perception continues to exist beyond what the reality is” as the
government moves to digitise all its systems and processes to combat corruption and related crimes via initiatives such as e-procurement, Customs’
Electronic Single Window (ESW) and Road Traffic’s recent technology upgrades. “People have felt that no matter what nothing’s going to change,” he added, revealing that ORG’s National Integrity Campaign had undergone a “soft” summer launch involving youth engagement activities. While Hurricane Dorian had delayed further progress, Mr Aubry pledged: “You’ll see a much larger and broader launch in October going into the coming year. There is a real unique opportunity in The Bahamas that if we believe ordinary citizens can be part of the solution we can take a major step forward. “ The ORG executive director added that the $200m-$500m range given by the prime minister several years ago as to how much corruption costs The Bahamas annually was described as “indicative” of the problem’s extent by Mr Aubry yesterday, although he acknowledged that its scale was hard to pin down. The Transparency International report found that The Bahamas led the Latin American and Caribbean region for paying “bribes of convenience”, with 41 percent of Bahamians who admitted to such payments citing this as the reason for doing so. Such bribes were described as payments “to get things done more quickly or better”, meaning
that they were intended to facilitate “queue jumping” at Bahamian government agencies and/or to obtain permits, approvals and documents (passports, driver’s licences, Immigration cards) when applicants did not have all the supporting paperwork required or are here illegally. The results, obtained from 1,007 telephone interviews with Bahamians conducted by the Public Domain polling firm earlier this year, also revealed that the proportion of Bahamians paying a bribe within the past 12 months had doubled compared to Transparency International’s survey of The Bahamas last year. While the 2018 survey found that one in ten Bahamians, or ten percent, admitted to paying a bribe during the prior year, that percentage rose to 20 percent - one in five - for the 2019 survey, indicating that the graft culture is getting worse rather than improving. And The Bahamas was also ranked second in the Latin American and Caribbean region for “sextortion”, with 24 percent of Bahamians revealing they had personally been - or knew someone who had been - asked for sexual favours in return for receiving public services including health and education. Only Barbados, at 30 percent, achieved a worse ranking.
CAN MAKE A DIFFERENCE IN THE LIVES OF THE CHILDREN AT RANFURLY
T
he Ranfurly Homes for Children has been a safe haven for thousands of Bahamian children since 1956. The Home provides a safe, structured environment for children who have been orphaned, abused, neglected or abandoned.
MEMBERSHIP PACKAGES Individuals, Families & Corporate Sponsors Children Helping Children - $5 (Individual children from ages 6 - 18) Individuals Helping Children - $50 (Individual adults 18 years and over) Families Helping Children - $100
YOU can make a difference in the lives of the children at Ranfurly. With your support children can have nutritious food, warm beds and a safe environment where they can discover the joy of being children. For years the children living and learning at Ranfurly have made great social and academic strides.
MARKET REPORT (242) 323-2330
(242) 323-2320
ALL SHARE INDEX: CLOSE: 2,171.23 | CHG: -13.40 | %CHG: -0.61 | YTD: 61.78 | YTD%: 2.93
We look forward to your continued support in this worthwhile endeavour.
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 8.01 9.60 6.83 11.39 12.30 10.68 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 4.12 7.20 3.22 3.19 10.63 7.00 16.50 9.30 3.41 14.20
CLOSE 4.10 17.43 6.00 5.92 2.46 1.80 4.80 11.06 6.16 4.00 7.20 3.22 3.19 10.77 7.00 16.50 9.27 3.47 14.20
CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.12 0.00 0.00 0.00 0.14 0.00 0.00 -0.03 0.06 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
1,300
6,500 10,000
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 0.646 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 0.434 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 21.7 51.4 31.6 6.8 16.7 9.6 20.2 9.9 17.1 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% 3.00% 0.00% 13.48% 1.88% 3.05% 3.43% 3.27% 2.16% 3.46% 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% 7.17% 8.76% 11.07% 12.58% 3.50% 4.96% 8.92% -0.97% 5.22% 5.44% 2.95% 2.64% -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
Silver: $1,500 - $2,499 Gold: $2,500 - $4,999 Platinum: $5,000 plus
OPPORTUNITIES
Their further development requires additional support in the form of a Transitional Home, planned for construction on the Ranfurly property. This residence will cater to teenagers and young adults who are beyond school age, but need accommodation while they find work and gain independence from the Home.
www.bisxbahamas.com
TUESDAY, 24 SEPTEMBER 2019
CIRCLE of FRIENDS
• • • •
Invitations to Ranfurly events Assist with fundraising events Involvement with special activities Adults are eligible to join the Board after three months • Stay in touch with Ranfurly through website and newsletters
BENEFITS
• Personal fulfillment in knowing you are impacting lives • Ranfurly children’s appreciation and positive response • Continued support provides stability and constant care
For more information visit: www.ranfurlyhome.org Please “Like” us on Facebook Ranfurly Home for Children, Mackey Street P.O. Box 1413 Nassau, Bahamas 242-393-3115
NOTICE
NOTICE is hereby given that LESLIE JOSEPH of Sunshine Park., South Beach, Nassau, 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 25th day of September, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
LEGAL NOTICE DREWDAND LTD. NOTICE IS HEREBY GIVEN as follows: (a)
DREWDAND LTD. 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 18th day of September, A. D., 2019, when the Articles of Dissolution were submitted and registered by the Registrar General.
(c)
The Liquidator of the said company is Edward Riley of Gaasterlandstraat 26, 1079 RH Amsterdam, the Netherlands.
Dated this 24th day of September, A. D., 2019.
TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | COLONIAL 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333
Edward Riley Liquidator
THE TRIBUNE
Wednesday, September 25, 2019, PAGE 7
STOCKS FALL AS DEMOCRATS TURN UP HEAT ON TRUMP By ALEX VEIGA Associated Press
STOCKS dropped on Wall Street yesterday as House Democrats met to consider a potential impeachment probe of President Donald Trump and a report showed a drop in consumer confidence. After a higher open, stocks declined as the Conference Board, a business research group, reported its consumer confidence index fell to 125.1 in September from a revised reading of 134.2 in August. That’s worrisome because consumer spending has underpinned the economy during a slowdown in manufacturing. The declines intensified after reports said a growing number of Democrats were in favor of launching an impeachment inquiry against the president and House Democrats were meeting to consider the possibility. Stocks recovered somewhat after Trump said he plans to release the full transcript of a July phone call with Ukraine’s president that is at the center of the impeachment discussions. It was the market’s most volatile day this month. The Dow Jones Industrial Average swung from a gain of 130 points to a loss of around 245 points as investors’ attention swung between headlines on economics and politics. The index finished with a loss of 142 points. “News of increased likelihood of impeachment proceedings has just added to this overall level of uncertainty that’s out there right now,” said Willie Delwiche, investment strategist at Baird. House Speaker Nancy Pelosi announced the House is moving forward with an official impeachment inquiry after the market closed. The swings in stocks Tuesday disrupted the relative calm that has distinguished the market in September. Traders sought safety — they piled into bonds, sending yields sharply lower. They also bid up utilities and household goods makers. All other sectors declined. The S&P 500 index fell 25.18 points, or 0.8%, to 2,966.60. The benchmark index remains within 2% of its all-time high set in late July. The Dow slid 142.22 points, or 0.5%, to 26,807.77. The Nasdaq lost 118.84 points, or 1.5%, to 7,993.63. Traders also turned away from smaller company stocks. The Russell 2000 index gave up 24.64 points, or 1.6%, to 1,533.61.
WeWork CEO stepping aside amid questions about company Associated Press WEWORK’S charismatic but controversial CEO is stepping aside from the communal office-space company he founded, another moment of reckoning between the fast-growing startup and its disenchanted investors. The New York-based company said yesterday that Adam Neumann will be replaced by two co-CEOs: Artie Minson, formerly copresident and chief financial officer, and Sebastian Gunningham, formerly vice chairman. Neumann will remain on its board as nonexecutive chairman. WeWork’s meteoric growth and carefully designed spaces with cool offerings like free beer and meditation classes gave it the aura of yet another tech company led by a magnetic personality. It was initially valued at $47bn by private investors. But Wall Street began raising questions after the company delayed a planned initial public offering earlier this month. The company was having trouble drumming up interest in the offering after revealing massive losses in its IPO filings. WeWork’s revenue rose sharply to $1.8bn in 2018, but the company lost $1.6bn the same year.
Trade news was also in the mix yesterday. Investors were optimistic after US Treasury Secretary Steven Mnuchin confirmed that trade negotiations with China will resume the week of Oct 7. But Trump dampened that sentiment with remarks before the UN General Assembly, where he underscored the need for a fair trade deal with China, threatening more tariffs. “Trump’s speech to the UN did not seem conciliatory toward China,” Delwiche said. “The speech today didn’t suggest that there was anything imminent in terms of good news from a trade perspective.” Yesterday’s volatile turn in the market is a break from what has mostly been positive run for stocks this month after trade tensions between the US and China eased somewhat, fueling speculation among investors that the countries’ next round of negotiations might at least yield an interim deal on trade. The market’s gains have become weaker as September nears its end. The S&P 500 notched a 2.8% gain the first week of the month, but is currently on track for a gain of 1.4%. While uncertainty over a possible impeachment probe into President Trump unsteadied markets Tuesday, history shows the impeachment of a president doesn’t necessarily mean disaster for the stock market. The S&P 500 dropped 1.7% on Sept 9, 1998, when Independent Counsel Kenneth Starr delivered his report to Congress on possible impeachable offenses by President Bill Clinton. But concern that slumping economies abroad would drag down the US economy was the bigger story of the day for the market. Two days later, when Starr’s report was released to the public, the S&P 500 jumped 2.9% after investors saw the allegations weren’t as bad as some had feared. Stocks veered up and down in the weeks that followed but were solidly higher when the House of Representatives voted in December 1998 to impeach Clinton. When trading opened for the first time following just the second impeachment in the nation’s history, the S&P 500 rose 1.2%. Stocks would keep jumping as they inflated until the dot-com bubble burst in 2000. Technology stocks accounted for a big slice of the market’s decline yesterday. Chipmaker Intel fell 2.1% and Qualcomm dropped 2.6%.
To advertise in The Tribune, contact 502-2394
Energy stocks also dragged on the market as crude oil prices fell 2.3%. Schlumberger slid 4.7% and Halliburton gave up 5.4%. Investors shifted money into consumer product makers and utilities. Both those sectors moved higher as they are typically considered safer places to shift money when economic growth is uncertain. Bonds rose and pushed yields lower in another sign that investors were becoming more cautious following the weak consumer confidence data. The yield on the ten-year Treasury slipped to 1.64% from 1.7% late Monday. Banks, including Citigroup, slid on the lower bond yields. The lower yields hamper a bank’s ability to raise interest rates on loans. Citigroup lost 2.4%. AutoZone fell 4.4% after the auto parts retailer’s fiscal fourth quarter sales fell shy of Wall Street forecasts. Benchmark crude oil fell $1.35 to settle at $57.29 a barrel. Brent crude oil, the international standard, dropped $1.67 to close at $63.10 a barrel. Wholesale gasoline fell three cents to $1.65 per gallon. Heating oil declined three cents to $1.97
per gallon. Natural gas fell three cents to $2.50 per 1,000 cubic feet. Gold rose $8.40 to $1,532.10 per ounce, silver fell eight
cents to $18.52 per ounce and copper was unchanged at $2.59 per pound. The dollar fell to 107.05 Japanese yen from 107.45
yen on Monday. The euro strengthened to $1.1018 from $1.0995. Major European stock indexes fell.
PAGE 8, Wednesday, September 25, 2019
THE TRIBUNE
MASSACHUSETTS TEMPORARILY BANNING SALE OF VAPING PRODUCTS BOSTON Associated Press THE governor of Massachusetts declared a public health emergency yesterday and ordered a four-month ban on the sale of vaping products in the state, apparently the first action of its kind in the nation. Republican Gov Charlie Baker’s order was quickly approved by the state Public Health Council and applies to all vaping products and devices. The ban, though
temporary, is broader than moves in at least two states, Michigan and New York, to ban only vape flavours. His announcement came amid growing concern about the health effects of vaping products, including deaths. The administration said that as of yesterday, 61 cases of potential cases of lung disease related to the use of electronic cigarettes and vaping in Massachusetts had been reported to the state. Three confirmed cases and two probable
Massachusetts cases of vaping-associated pulmonary disease have been reported to the US Centers for Disease Control and Prevention. “The use of e-cigarettes and marijuana vaping products is exploding, and we are seeing reports of serious lung illnesses, particularly in our young people,” Baker said at a news conference at the Massachusetts Statehouse. State health officials this month health began requiring the collection of data
on potential cases of lung disease related to the use of electronic cigarettes and vaping in Massachusetts. During the temporary ban, Baker said, the administration will work with medical experts and state and federal officials to better understand vaping illnesses and work on additional steps to address the public health crisis. That, he said, could include legislation and regulations. The administration will also work on providing more resources for a
public awareness campaign and smoking cessation programs, he said. The CDC is investigating the outbreak but has not yet identified a common e-cigarette or ingredient. Nine deaths have been reported. Dr Anne Schuchat, of the CDC, told a congressional subcommittee yesterday that she believes “hundreds more” lung illnesses have been reported to health authorities since Thursday, when the CDC put the tally at 530 confirmed and probable cases.
Michael Seilback, assistant vice president for state public policy at the American Lung Association, acknowledged the move by Massachusetts and said the federal Food and Drug Administration now needs to step up. “From our perspective, it’s the absence of strong federal action by the FDA that is forcing states to have to make choices like this on how they are going to protect children and adults from the public health emergency of e-cigarettes,” he said.