business@tribunemedia.net
WEDNESDAY, SEPTEMBER 26, 2018
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Dingman to face default judgment By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A LYFORD Cay resident’s former business partners have been given permission by a New York judge to seek a default judgment against him over the collapse of his Nassau restaurant empire. Judge Naomi Buchwald last Monday allowed Erik Gordon and Ryan Giunta to move against Jamie Dingman, son of late worldfamous entrepreneur, Michael, after he missed a 30-day deadline to hire new attorneys or respond to their revived fraud complaint. Mr Dingman’s previous
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‘All homes benefit’ if port wins expansion By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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LL “homes across New Providence” will benefit if the island’s sole cargo port operator expands into Nassau’s cruise port and LNG bunkering, its top executive argued yesterday. Michael Maura, chief executive of BISX-listed Arawak Port Development Company (APD), told Tribune Business that diversifying into new opportunities would not only
$300k Memories guarantee creates Lucayan dispute By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Christie administration’s continued payment of $300,000 per month to Hutchison Whampoa, despite the Memories resort’s closure, is central to an ongoing dispute over the Government’s Grand Lucayan deal. Tribune Business can reveal that, as part of the deal to entice Canadian tour operator, Sunwing, to open the former Reef hotel with its Memories brand, the former government agreed to guarantee its monthly lease/rental payments to
MICHAEL SCOTT the Hong Kong-based conglomerate. Memories’ deal foundered after Hutchison Whampoa, as landlord, failed to repair Hurricane Matthew-related damage to the property in the aftermath of the October 2016 storm, resulting in the Canadian resort’s January
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Act review could ‘throw Bahamas back into chaos’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government “will throw The Bahamas back into the chaos of haphazard, checkerboard development” if it goes too far in “watering down” key planning laws, a QC warned yesterday. Fred Smith QC, the Callenders & Co attorney and partner, told Tribune Business he was “viscerally opposed” to any reforms that “devalued” the Planning and Subdivisions Act at the expense of the wider public interest
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FRED SMITH QC and environment. Speaking out after Desmond Bannister, minister of works, revealed that the Government has created a high-level working group to develop “a
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* Bunkering, cruise moves key to lower tariffs * APD: Diversification will cut consumer costs * ‘Pursuing’ growth with partners ‘on board’
ARAWAK CAY PORT
$4.93 Bahamas ‘in best position in region’ to target groups
By NATARIO MCKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
boost shareholder returns but potentially enable the company to lower port tariffs and fees. He explained that the shipping companies, and major importers, could then pass these reduced costs on to Bahamian households through lower grocery and consumer goods prices,
THE Bahamas is “in the best position in the Caribbean” to target the lucrative group travel market, a senior tourism official saying yesterday: “We see this as having huge growth potential.” Joy Jibrilu, pictured, the director-general of tourism, speaking at a Sustainable Tourism Policy Framework and Disaster Risk Management workshop, said: “We just feel that we are poised
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PAGE 2, Wednesday, September 26, 2018
Agency to host Business Expo By NATARIO MCKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net A BAHAMIAN print, sign and marketing agency marking its first year in business is set to host a Small Business Expo that will allow local entrepreneurs to promote their offerings and network. Nkosi Symonette, president of Sign Island, said the October 6-7 expo at the Elizabeth on Bay Plaza is expected to attract 16-18 small business exhibitors. “Having celebrated our first year anniversary we wanted to give back in a way that would help our customers and other budding businesses because we know the importance of that support especially between small businesses,” Mr Symonette said. “We decided to put together a small business expo where some of our clients can come and promote their businesses and network. We want to give back by affording our customers the opportunity to build and promote their brand. We have exhibition packages for them. We also have a pitch competition for people aspiring to open their own company with a $1,500 gift certificate prize. We also will be having have panel discussions.” Mr Symonette said some of the topics to be discussed include, ‘Investment in Cannabis in The Bahamas’, ‘Women in STEM’ and ‘Technology, Small Businesses and Growth Hacks’.
THE TRIBUNE
Jibrilu takes Japan By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A SENIOR Bahamian tourism official has visited Japan as part of an aggressive Caribbean-wide effort to promote the region’s attractions. Joy Jibrilu, the Ministry of Tourism’s director-general, was among 11 CARICOM representatives invited by the Japanese government to speak with high-level tourism officials in that nation. “The objective was to see how we could increase
tourism between our two countries,” she said. “It was recognised in Japan that the Caribbean is a desirable destination, but they know very little about us and so this was such an incredible opportunity to showcase The Bahamas at its best,” she said. Mrs Jibrilu described The Bahamas as an easy sell, adding: “We have diversity, connectivity because you can fly to New York and straight to Japan, and we have routes that make it feasible.” Her visit came as The Bahamas increases its focus
on the Far East tourism market. Dionisio D’Aguilar, minister of tourism and aviation, will shortly lead a team to China featuring executives from resorts such as Atlantis, Baha Mar, The Pointe and the Out Islands Promotion Board. Confirming that The Bahamas wants to lure more tourists from Asia, Mrs Jibrilu said: “Travel from Asia is perhaps the highest from anywhere in the world. Air Canada has come on board with us as well. We will also have meetings with top-tier media to display a Destination Bahamas.”
JOY JIBRILU, the Ministry of Tourism’s director-general, with CARICOM partners during a courtesy call with Japan’s vice-minister of land, infrastructure, transport and tourism, Kazuo Yana. Air arrivals to The Bahamas are up by 15 percent year-over-year, according to tourism officials. However, Mrs Jibrilu said the destination is not resting on its laurels.
“Numbers are high but it is now incumbent on us to do everything we can to keep these numbers where they are, and to keep these numbers going in the right direction,” she added.
Financial analysts enjoy big kick-off THE Chartered Financial Analyst (CFA) Society of The Bahamas hosted its annual Kick-Off Event on September 6 at SuperClubs Breezes. It serves as an information session for persons interested in the programmes offered by the CFA Institute, the global financial analyst body, plus services provided locally by the Bahamian society. The information exchanged included an overview of the CFA Programme; the Investment Foundations Programme; Research Challenge and scholarship and exam preparation opportunities. The “Kick-Off” also recognises persons who successfully completed the various CFA examinations in June. This year there were three Level I completions; six Level II completions; and four Level III completions. Successful completion of the CFA Programme gives the candidate the right to use the CFA designation, which is considered the highest standard in the investment management industry. The CFA Society
SUCCESSFUL CFA candidates from left (top row): Earvin Rahming (Level I); Angelo Butler (Level II); Charles Carroll (Level II); Holland Grant (Level III); Anthony Robinson (Level III). L-R (bottom row): Melan Georges (Level III); Jason Smith, scholarship and education chair of CFA Society of The Bahamas; Aneka Rolle-Beneby, president of CFA Society of The Bahamas; Kermeka Ferguson (Level I) of The Bahamas provides discounted exam preparation materials, a mock examination, study groups and access to financial assistance through scholarships to aid local candidates. This year’s “KickOff” panel discussion under the theme, The Struggle, featured three panelists who successfully completed Level III of the CFA examinations. They were Holland
Grant, Melan Georges and Mandelia Morris. The moderator was Robert Turnquest, vicepresident of CFA Society of The Bahamas. The panelists covered various topics, including their firsthand experience with the CFA programme, the benefits of earning the CFA Charter, and suggestions for completing the examination process.
Aneka Rolle-Beneby, the CFA Society of The Bahamas president, said: “This year’s Kick-off Event was a major success. We were delighted to see that there was only standing room available at the event, signaling that more and more people are interested in how CFA Institute programmes can add value to their careers and help them to achieve their career goals.
JASON SMITH, scholarship and education chair of CFA Society of The Bahamas, presents an award to Melan Georges (top) and Holland Grant (bottom) for successful completion of Level III of the CFA examination. “We are also encouraged by the number of successful candidates, 13 in total. We are extremely proud of them and wish to commend them for the huge commitment they have demonstrated in being able to successfully complete their exams.”
THE TRIBUNE
Wednesday, September 26, 2018, PAGE 3
GOVT EYES FULL-FLEDGED CASCARILLA DEVELOPMENT By NATARIO MCKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net A CABINET minister yesterday talks are underway about building a true cascarilla industry in The Bahamas through the addition of “value-added” production Speaking ahead of a Cabinet meeting, Michael Pintard, minister of agriculture and marine resources, said: “We are in discussions with the Bahamas Development Bank in a number of areas, and that is one of them. “They have done a tremendous amount of research. Some research has been done by BAIC as well. We have a meeting with various
MICHAEL PINTARD
stakeholders in the Family Islands to see whether or not we can put together a co-operative of Bahamian farmers who are engaged in that sector.” The cascarilla tree or shrub, prominent in Acklins, is used in the production of the
BDB REPS
Italian liqueur, Campari, and can be used in essential oils, medicine, and perfumes. Mr Pintard added: “The view is that we do have the capacity to create an industry surrounding cascarilla, and again over the course of the next few weeks we invite the media to spend time with us as we go through the stakeholder consultations, one of which is coming up in short order.” The BDB is travelling to Acklins, Crooked Island and Samana Cay this week in a bid to advance development of a fully-functioning cascarilla industry. A Town Hall meeting will be held in Acklins on September 28, at 6:30pm at the Spring Point Community
Centre, to explore the potential of cascarilla and explain how the BDB can help. The Bahamas is currently exporting only the cascarilla bark to the UK, Italy, France, the US and Germany. The BDB is aiming to develop on-island “valueadded” production. Key objectives are to increase exports; foster the sustainability of the cascarilla through organised propagation of the plant; facilitate at least two commercially viable cascarilla oil processing facilities; enable the creation of five new ancillary businesses; support the expansion of Family Island economies and aid in job creation.
TOP TOURISM OFFICIAL GIVES CLIMATE CHANGE WARNING
By NATARIO MCKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net THE Caribbean must develop effective strategies to mitigate the impact of climate change on the tourism sector and standards of living, a top tourism official said yesterday. Joy Jibrilu, the Ministry of Tourism’s director-general, addressing the opening of a Sustainable Tourism Policy Framework and Disaster Risk Management workshop, said: “With the recent impacts of climate change on global economies, it is imperative that regional communities such as the Caribbean region begin to recognise the enormous threat that this phenomenon has - not only on our tourism economy but our very standard of life - and urgently develop effective strategies to mitigate its impact on life, property and infrastructure.” She added: “While climate change impacts the development of all nations, notwithstanding size of economy or location, small island nations are more vulnerable than any group of nations worldwide to the ravaging impact of climate change. Small Island Developing
States (SIDS) are more susceptible to the likes of sea level rise, coastal erosion and storm surges due to the fact that some one-third of our population reside on land that is less than five metres below sea level.” ]Mrs Jibrilu said it was estimated that SIDS contribute less than one percent of the world’s greenhouse gas emissions, the major contributor to global warming and resulting climate change, yet their livelihoods were disproportionately affected by the impacts. “It is my opinion that climate change and its impact are not only one of the greatest threats to our economic lifeline but to our very existence as SIDS,” she added. “With resulting increased average temperature, droughts, flooding due to frequent and severe weather events, and rising sea levels, we will be increasingly challenged with vector and water borne diseases like dengue, diarrhoeal disease and malaria, which threatens the health of our visitors as well as our residents.” “Such outbreaks can have negative impacts on our human resources, impacting the quality of service
for our visitors and local clients alike. Meanwhile, the onset of droughts will not only impact our access to clean and healthy supply of water and sanitation, but also pose a challenge to our food security. “Rising sea level, which is projected to triple every year by 2100 from its current level of three millimetres per annum, is also a threat to our food security as the agricultural sector is increasingly challenged with fewer acres of arable land. Additionally, scientists have projected that the Caribbean region will record the largest decline in seasonal rainfall in the 2080s, with a reduction during northern hemisphere summers of nearly 20 percent. We therefore need to be aware of this and prepare some adaptive strategies.” Mrs Jibrilu said the Economic Commission for Latin America and the Caribbean’s (ECLAC) damage and loss assessments for the five countries (Anguilla, The Bahamas, The British Virgin Islands, St Maarten and Turks and Caicos) hit by hurricanes Irma and Maria totalled some $5.4bn in 2017. “The most affected sectors were tourism and housing respectively,” she added. “These were
monumental losses, and show the importance for the region to allocate resources in disaster risk mitigation and preparedness to ensure that the respective destinations rebound as quickly as possible. “In fact, the 2017 Atlantic hurricane season was the
most devastating hurricane season in recorded history with a damage total of some $282.16bn. Here at home we were hit by three devastating hurricanes in three consecutive years (2015, 2016 and 2017). These hurricanes, namely Matthew, Joaquin and Irma, resulted in a
combined loss of over $800m to our economy.” Mrs Jibrilu said: “To protect the image of our respective destinations we must all be vigilant of the various threats that can have an adverse impact on our economic lifeblood – our tourism economy.”
PAGE 4, Wednesday, September 26, 2018
THE TRIBUNE
‘All homes benefit’ if port wins expansion FROM PAGE ONE
helping to offset the recent 12 percent VAT hike and generating all-round benefits that extend beyond APD and its shareholders. Emphasising the Nassau Container Port (NCP) operator’s continuing eagerness to expand beyond cargo shipping, Mr Maura told this newspaper it was still “pursuing” both the Prince George Wharf management contract and the possibility of supplying visiting cruise ships with liquefied natural gas (LNG) via a bunkering facility. With APD’s fuel supplier partner, New Fortress Energy, still on board, Mr Maura said: “We remain interested in LNG bunkering because more and more of these cruise ships coming out of these yards will be operating on LNG. “Disney Cruise Lines executives were here in Nassau several weeks ago, talking about three large vessels coming into service in the next several years that will be operating on LNG and
calling in The Bahamas. “We believe that with our location, and business in the maritime industry, we’d like to pursue that. That’s something we still have on the board. We’d need government support to make that a reality.” Vessels docked at Prince George Wharf would be refuelled with LNG supplied from a bunkering facility at APD’s Arawak Cay facilities, with the fuel brought in by ship to a small regasification plant that would convert it back from liquid form. APD told Tribune Business earlier this year that cruise industry growth, coupled with new regulatory demands, had created the bunkering opportunity. Besides the 100 new cruise ships set to sail out of shipbuilders’ yards within the next five years, International Maritime Organisation (IMO) directives will impose limits on ship emissions from 2020. That is driving the cruise ship industry to use LNG as its main fuel, with 20 percent of “new builds” expected to
use this source. And, of the 100 vessels in the industry “pipeline”, around one-third - some 30 - are destined for The Bahamas and Caribbean. APD and New Fortress, though, face competition in the LNG bunkering business from the rival that beat them to Bahamas Power & Light’s (BPL) new power plant contract. For Whitney Heastie, BPL’s chief executive, revealed to this newspaper that Shell North America plans to offer similar ship refuelling services from the infrastructure it will build at Clifton Pier to service the new power plant. Still, APD’s bunkering plan offers clear synergies with APD’s other targeted expansion venture - its involvement in the bid with Global Ports Holding, and CFAL, the Bahamian investment advisory firm, to win the contract to take over management/ operations at Nassau’s cruise port. Should the consortium be successful, APD will be hired to provide “the non-executive operations and facility support” for its
plans to transform the cruise port into a leading global destination. “On Prince George Wharf, we remain interested in participating from a Bahamian labour support perspective, and hope to be given that opportunity,” Mr Maura reaffirmed. “The staff have worked very hard to develop a first-class reputation for APD in the Caribbean, and we’d like to be able to be able to broaden out into the cruise space and do it a mile east of us. “There’s two prominent parts to this. If you consider bunkering with LNG and cruise port operations, we have intentionally selected two sectors where we will not displace any existing Bahamian enterprises. “With LNG bunkering there is no one doing that. By APD getting into that business it will not negatively impact any Bahamian enterprise. It’s not simply transferring income from one Bahamian enterprise to another. We’re expanding our economy.” The APD chief executive continued: “There are two other issues. From a shareholder perspective we’re seeking to develop new income streams. As we’re no longer solely dependent on cargo coming across our bulkhead, it provides greater security to our shareholders from a dividend perspective. “We are also governed by the ten to 12 percent Internal Rate of Return (IRR), which means as we generate income from new sources it helps us to reduce our port tariff and container tariff. We’re able to lower the tariff cost on grocery shipments. By going into new businesses the impact goes beyond APD into homes across New Providence.”
One of the terms imposed on APD by the last Ingraham administration, as the port operator was structured, is that it must target an annual IRR of between ten to 12 percent every year. This was intended to strike a balance between shareholder interests, in terms of profitability and dividends, and those of consumers by keeping port tariffs, fees and charges at a reasonable level. The KPMG accounting firm is required to assess whether the IRR goal is being achieved every two years. If APD is exceeding the target, KPMG can recommend that tariffs be lowered, whereas if it is below target it can call for a raise. Income from new business sources, such as the cruise port and LNG bunkering, would thus enable APD to hit the ten to 12 percent IRR target with lower port charges and tariffs - thus reducing the costs passed on by shippers and importers to Bahamian consumers. It would also mitigate annual increases in government lease payments and staff cost of living adjustments. Tribune Business understands, though, that APD’s top executives are concerned that the company may miss out on lucrative business opportunities as a result of constant politically-related criticism directed its way. The company, ever since its creation, has come under fire from the Progressive Liberal Party (PLP). The Opposition’s current leader, Philip Davis, frequently singles out the Arawak Cay port with rhetoric that charges the FNM with “creating a monopoly for some of The Bahamas’ wealthiest families” - a reference to the shipping company owners who collectively own 40
percent of APD. This, though, ignores that cargo ports are likely a “natural monopoly” on New Providence, plus the fact that some 11,000 Bahamian public shareholders collectively own 20 percent of APD following its initial public offering (IPO). The Nassau Container Port also acts as the Government’s largest revenue collection point for VAT and import duties/excise tax, with APD’s own data showing it has contributed $30m to the Public Treasury - including $7m in the 2017 financial year - to the Public Treasury since it began operations in 2012. APD, which handles 90 percent of international cargo coming into New Providence, also provides a platform for the employment of 400 workers between itself and the operators that use it. Mr Maura, meanwhile, said APD also hoped anticipated regulatory reforms by year-end 2018 will enable it to move forward with its 700 kilowatt solar energy project planned for the inland Gladstone Freight Terminal (GFT). “We understand that BPL and the Utilities Regulation and Competition Authority (URCA) are close,” he told Tribune Business. “We are advised that by year-end they would have completed regulatory work for large-scale solar applications. “We look forward to that, as we still want to move ahead with the large-scale solar project at the Gladstone Freight Terminal. That’s about three-quarters of a megawatt (MW), 700 KW.” APD has in the meantime also hired outside consultants to advise it on how to reduce energy costs through improved efficiency.
THE TRIBUNE
Wednesday, September 26, 2018, PAGE 5
ACT REVIEW COULD ‘THROW BAHAMAS BACK INTO CHAOS’ FROM PAGE ONE
comprehensive plan” for changing the Act, Mr Smith argued that wholesale reform of “very progressive” legislation designed to “modernise” planning regulation would be a regressive move. Mr Bannister, in an interview with this newspaper, described some of the Act’s provisions as “onerous” for the Government to enforce - a position shared by many developers. Mr Smith, though, argued that successive administrations only had themselves to blame for this because they had failed to equip the Department of Physical Planning with the staff and skills needed for effective enforcement. The Government’s failure to enforce The Bahamas’ key planning law was again exposed by a Supreme Court verdict, made in relation to the multiple legal disputes involving Nygard Cay, which has ordered it to produce the legally-required Land Use Plan for New Providence by July 1, 2019. Mr Smith, though, pointed out that New Providence is the only island currently needing a Land Use Plan. He produced an April 23, 2012, Order which amended the Planning and Subdivisions Act by exempting all other islands - the Family Islands and Grand Bahama (outside the Port area) - from needing a Land Use Plan developed by the Government in consultation with the public and industry. The well-known QC said the exemption was ironic given that these were the islands “crying out” for properly-regulated development. And he suggested that the “supreme” planning-related irony lay in the Government’s drive to demolish New Providence”shanty towns” when it had failed to “take the first step required by law” - publication of a Land Use Plan for the island. While welcoming Mr Bannister’s pledge to obey the law and Supreme Court by putting Justice Rhonda Bain’s Order into effect, Mr Smith disputed the Minister’s assertion that some of the provisions in the Planning and Subdivisions Act were too “onerous”.
“The Planning and Subdivisions Act was a very progressive and modern law which the FNM itself legislated in 2010,” he told Tribune Business. “It’s no more onerous then than it is now. The law has not changed. Both the FNM and PLP administrations have had eight years to populate the various government agencies to properly regulate development in The Bahamas.” Mr Bannister on Tuesday admitted that the Department of Physical Planning, the Government’s main planning regulator, was “clearly under-staffed” with “more posts vacant than filled”. He blamed this on salaries that were too low to attract the necessary skilled employees, suggesting this was one factor behind the Government’s difficulty in enforcing the Act. This explanation was given little credit by Mr Smith, though, who pronounced himself “very discouraged” by the minister’s assertion that “there are many provisions in the Act... that have to be considered for amendment”. “I urge the minister not to engage in any piecemeal amendments to the Planning and Subdivisions Act because tampering with bits and pieces for expedient, convenient reasons such as an inability to staff will only mess up the construct of a very sensible Act, which was designed to bring order, transparency and accountability and deal with environmental, sanitation and safety issues under one umbrella,” Mr Smith told Tribune Business. “I am very discouraged by such suggestions because the Act was very well designed, very well thought-out, and Parliament under a different FNM administration passed this in order to modernise The Bahamas and bring some organisation to the confused patchwork of development throughout The Bahamas, but particularly New Providence.” The Callenders & Co partner said the Government could not now alter the Act to avoid implementing Justice Bain’s ruling, and added: “I am very concerned that not only will it be watered down and devalued for the
benefit of developers, but it will throw The Bahamas back into the chaos of expedient political approvals and development as opposed to what was originally intended by having a national land use development plan, island by island like New Providence. “That is where the focus should be so that when foreign and domestic developers wish to develop they know where they stand, and where they can and can’t go. It will be catastrophic for sensible, organised [planning] for the Government to tinker with the Planning and Subdivisions Act just because three administrations have failed to staff and fund the Department of Physical Planning.” Mr Smith argued that, “instead of tinkering with the Act”, the Government should instead establish a planning ministry or give the Department of Physical Planning enforcement responsibilities for all major investment projects to ensure developers are complying with the law and their obligations. The QC, who is legal counsel for the Save the Bays activist group, said one of its core goals was to combat unregulated development throughout The Bahamas. Pointing to the litigation it, and related groups, had launched over projects such as Nygard Cay and Blackbeard’s Cay, Mr Smith said:
“All have a common element; trying to get the executive branch to respect the Act passed by Parliament, and provisions that mitigate against secret Heads of Agreement which are inimical to ordinary, planned, transparent development. “Instead of trying to dismantle the Planning and Subdivisions Act, I urge the Government to provide the resources and finance to the Department of Physical Planning so it can do the job Parliament has given it responsibility for. You can’t flee from it now because of expediency and inconvenience. “Enforcing the provisions of the Planning and Subdivisions Act prevents political tampering and interference with development. Its transparent, consultative fashion takes away the potential opportunity for graft. I am viscerally opposed, and I urge civil society to discourage any changes to the Act that dilute its intended effect.” Mr Smith argued that legitimate developers should welcome a strong Planning and Subdivisions Act, and the orderly, regulated development it promises to bring. “It’s not every piece of beautiful virgin territory that a foreign developer is interested in that the Government should be happy to negotiate away,” he told Tribune Business.
LEGAL NOTICE
GUDA WEALTH MANAGEMENT LTD. (In Voluntary Liquidation)
Notice is hereby given in pursuance of Section 138 of The International Business Companies Act, 2000 (as amended) that the Shareholder of the above-named company by Resolution passed on the 18th day of September 2018 resolved that the company be wound up voluntarily forthwith and that the Liquidator is Mr. Bennet R. Atkinson of Ronald Atkinson & Co., Chartered Accountants, Marron House, Virginia and Augusta Streets, P.O. Box N-8326, Nassau, Bahamas. All persons having claims against the above-named company are requested to submit particulars of such claims and proofs thereof in writing to the Liquidator, Mr. Bennet R. Atkinson, Marron House, Virginia and Augusta Streets, P.O. Box N-8326, Nassau, Bahamas, not later than the 26th day of October 2018, after which date the books will be closed and the assets of the company distributed. Dated the 24th day of September 2018.
Bennet R. Atkinson Liquidator
“The Planning and Subdivisions Act should be viewed as an opportunity to demonstrate to foreign investors and developers that The Bahamas respects itself and has a plan, as opposed to being a haphazard, checkerboard of expedient development opportunities at the whim of foreign developers. “We should be able to plan where and what we want by way of development. We are not a plantation economy. We are not parasites in paradise.” Mr Smith said the 2012 exemptions meant that the islands “crying out” loudest for Land Use Plans would not be subject to them. “I cannot fathom what the rationale was,” he added. “It can only be to continue to treat the Family Islands as colonies of Nassau, where central government continues to make plans without reference to the residents of those islands.” The QC said all other
aspects of the Act, including compliance with Site Plan Applications, the Buildings Regulation Act and Conservation and Protection of Physical Landscape Act, and submission of an Environmental Impact Assessment (EIA), still applied on the Family Islands. He added: “It is ironic that Mr Foulkes [minister of labour] and the prime minister should be so hot to trot about demolishing shanty towns and redeveloping them for subdivisions for sale to Bahamians in developed subdivisions when there is no Land Use Plan for New Providence in existence as required by law. “That seems to me the supreme irony; that there are calls to convert shanty towns to regulated development status when the Government has not taken the first step necessary under the Planning and Subdivisions Act to have a Land Use Plan for New Providence.”
NOTICE Re: Supreme Court Equity Action No. 00787/2018 The Petition of James Coakley in respect of ALL THAT parcel of land containing 20,368 sq. ft. being about 255 feet East of Fox Hill Road on the eastern side of a 20 foot public road about 297 feet south of Davis Street in the Eastern District of New Providence and bounded on the NORTH by land said to be the property of Sam Mackey and running 198.77 feet on the EAST by land now or formerly the property of Bruce Davis and running 24.48 feet on the SOUTH jointly by land now or formerly the property of Bruce Davis and land said to be the property of Barry Johnson and running 176.62 feet and on the WEST by land said to be the property of Bertram Davis and running 100 feet the said land being more particularly described by the Plan No. 5895 NP, filed in this action and is thereon coloured Pink. James Coakley claims to be the legal owner in possession of the land and has made application to the Supreme Court under the Quieting Titles Act to have his title to the land investigated and determined in a certificate of title.The filed plan may be inspected during normal working hours at:a) The Registry of the Supreme Court,George Streets, Nassau, N. P., Bahamas; or b) Themis Law Chambers, Liv Building., 7th. Terrace East, Nassau, Bahamas. NOTICE IS HEREBY GIVEN that any person having any adverse claim or claim not recognised in the Petition shall on or before the 26th day of October, A. D. 2018, file in the Registry of the Supreme Court and serve on the Petitioner or the undersigned a statement of such claim in the prescribed form and verified by an affidavit to be filed therewith. Failure of any such person to file and serve a statement of such claim on or before the 26th day of October, A. D. 2018, will operate as a bar to such claim.
PAGE 6, Wednesday, September 26, 2018
THE TRIBUNE
$300k Memories guarantee creates Lucayan dispute FROM PAGE ONE
NOTICE Notice is hereby given that SHANTEL LOUIDOR of Carmichael 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 signed statement of the facts within twenty-eight days from the 19th September, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147, Nassau, The Bahamas.
2017 departure with 400-500 direct job losses. But well-placed sources yesterday informed Tribune Business that despite the Memories pull-out effectively terminating the lease, the Christie administration decided to honour the guarantee by paying Hutchison Whampoa the $300,000 per month rental fee from January 2017 onwards. This newspaper understands that the Minnis administration has continued that arrangement since taking office last May, and Hutchison Whampoa is now demanding that rent it deems due and owing under the guarantee be paid to it as part of the “closing costs” settlement with the Government over its purchase. Michael Scott, chairman of Lucayan Renewal Holdings, the Government-owned special purpose vehicle (SPV) that now controls the Grand Lucayan, last night confirmed there was a dispute with Hutchison Whampoa over “the final accounts” but declined to go into detail. He said the issue would have no impact on the Government’s acquisition of Freeport’s sole remaining “mega resort” property, as “the deal is done”, but said
the terms and costs presented by the Hong Kong conglomerate were unacceptable. “They’ve presented us with a closing statement which we have not agreed, and are trying to sort it out with them,” Mr Scott told Tribune Business. “The deal is done, but we haven’t settled the closing of accounts yet. We haven’t finished yet.” The “closing of accounts” typically relates to a purchaser and seller settling how much the former should pay for inventory, such as food and beverage supplies, that they inherit upon the completion of a hotel purchase. A well-placed Tribune Business source, speaking on condition of anonymity, confirmed that “trying to agree the final numbers, the accounts” on the Grand Lucayan’s inventories was another issue yet to be settled. They revealed that Lucayan Renewal Holdings had hired a team of accountants to assess, and value, the inventories inherited after being presented with a series of bills by Hutchison Whampoa. The Memories lease payment, though, continues to be the main contention, with the SPV’s board understood to have been shocked that the guarantee was honoured
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL
The public is hereby advised that I, NOMIE YVONNE MOXEY of #23 Aramander Circle,Freeport, Grand Bahama Bahamas,mother of RICHGENA ETHEL STURRUP MOXEY intend to change her name to RICHGENA ETHEL STURRUP. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL
The public is hereby advised that I, EILEEN WILLAMETA BUTLER of #1 Orilie Court, Kennedy Subdivision,P.O.Box S.B. 51456, New Providence, Bahamas, intend to change my name to WILLAMETA EILEEN BULLARD nee BUTLER. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.
MARKET REPORT TUESDAY, 25 SEPTEMBER 2018
t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com
BISX ALL SHARE INDEX: CLOSE 1,950.00 | CHG -1.84 | %CHG -0.09 | YTD -113.57 | YTD% -5.50 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 19.17 7.50 4.46 1.26 0.19 3.92 9.22 6.60 5.30 12.50 2.71 1.77 8.21 6.21 13.20 7.00 4.50 13.50
52WK LOW 3.50 19.17 7.50 3.32 0.90 0.15 2.30 8.55 6.09 3.49 9.00 2.30 1.40 7.25 6.00 9.50 5.67 3.25 12.50
1050.00 1000.00 1000.00 1000.00
1000.00 1000.00 1000.00 1000.00
PREFERENCE SHARES
1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01
1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00
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 Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B
CORPORATE DEBT - (percentage pricing) 52WK HI 100.00
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 ##########
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
SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB
SECURITY Fidelity Bank Note 22 (Series B) +
SYMBOL FBB22
Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y
BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407
BAHAMAS GOVERNMENT STOCK - (percentage pricing)
LAST CLOSE 4.01 17.43 9.09 4.46 1.01 0.19 2.30 9.22 6.15 3.63 12.42 2.89 1.75 7.61 6.21 13.06 6.34 3.65 13.01
CLOSE 3.67 17.43 9.09 4.46 1.01 0.19 2.30 9.22 6.16 3.63 12.42 2.84 1.75 7.56 6.21 13.06 6.35 3.65 13.01
CHANGE -0.34 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 -0.05 0.00 -0.05 0.00 0.00 0.01 0.00 0.00
1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00
1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00
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
CLOSE 100.00
CHANGE 0.00
107.38 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
-0.18 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
LAST SALE 100.00 107.56 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
VOLUME 10,000
7,000 1,048
14,566 1,025
5,000 VOLUME
EPS$ 0.268 0.932 -0.306 0.317 0.059 0.000 -0.996 0.700 0.441 0.154 0.627 0.102 0.231 0.000 0.670 0.701 0.719 0.277 0.631
DIV$ 0.100 1.130 0.000 0.230 0.000 0.010 0.000 0.710 0.220 0.120 0.620 0.060 0.070 0.084 0.280 0.500 0.200 0.120 0.590
P/E 13.7 18.7 N/M 14.1 N/M N/M -2.3 13.2 14.0 23.6 19.8 27.8 7.6 N/M 9.3 18.6 8.8 13.2 20.6
YIELD 2.72% 6.48% 0.00% 5.16% 0.00% 5.26% 0.00% 7.70% 3.57% 3.31% 4.99% 2.11% 4.00% 1.11% 4.51% 3.83% 3.15% 3.29% 4.53%
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%
INTEREST Prime + 1.75% 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%
MATURITY 19-Oct-2022 ############### 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022
MUTUAL FUNDS 52WK HI 2.17 4.16 2.01 180.30 157.58 1.57 1.70 1.65 1.10 6.99 8.54 6.15 10.52 11.46 10.46 10.00 8.45 11.20
52WK LOW 1.67 3.04 1.68 164.74 116.70 1.51 1.62 1.59 1.08 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20
FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F
NAV 2.17 4.14 2.01 180.30 155.10 1.57 1.68 1.65 1.09 7.36 8.53 6.50 11.41 11.66 10.41 9.93 8.45 11.20
YTD% 12 MTH% 2.24% 4.15% 0.03% 4.59% 1.23% 2.26% 0.90% 3.44% 1.11% 6.05% 2.50% 4.38% -0.75% 3.51% 1.75% 4.07% -0.52% 1.03% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69% -0.61% 0.75% 1.13% N/A 2.95% N/A
NAV Date 31-Jul-2018 31-Jul-2018 27-Jul-2018 30-Jun-2018 30-Jun-2018 31-Jul-2018 31-Jul-2018 31-Jul-2018 31-Jul-2018 31-Aug-2018 31-Aug-2018 31-Aug-2018 31-Aug-2018 31-Aug-2018 31-Aug-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018
MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings
YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful
TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225
despite the lease termination - thereby saddling Bahamian taxpayers and the Public Treasury with another burden they could ill-afford. “Some time in 2012-2013, there was a tripartite agreement between Sunwing/Memories, the Government of The Bahamas and Hutchison whereby the Government guaranteed payment of the rent by Sunwing,” the source said. “It was $300,000 a month. “Hurricane Matthew came in October 2016. In this lease there was expressly omitted, and excluded, any responsibility on the part of Hutchison to repair Memories. Memories cancelled the lease, and the Government could have cancelled the guarantee as a result of force majeure. Yet the Christie government took a policy decision to continue to pay this thing.” The lease guarantee further exposes the drain on Bahamian taxpayers caused by the multi-million dollar annual subsidies paid to keep the Grand Lucayan open. The prime minister, in his House of Assembly address last week, said the former government’s deal with Hutchison and Sunwing committed the Treasury to paying $21m per annum over seven years - a grand total of $147m. Dr Minnis also pointed to the $159m subsidy requested by the Wynn Group, in its first revised offer, and its final bid that included a 20 percent electricity rate discount, hundreds of work permits, and Government guarantees to cover any losses and guarantee a seven percent investment return as justification for why the Government believed it would be more effective, and cheaper, to acquire the Grand Lucayan itself. The Memories lease also highlights the ever-growing costs that continue to be incurred by the Government, and slowly drip out, in relation to the Grand Lucayan deal. Besides the $65m purchase price, it has also committed to a $2m subsidy to cover Hutchison Whampoa’s operating losses between August 1 and September 11, and waived the payment of $3.25m in Stamp Duty on the conveyancing by the Hong Kong conglomerate. The latter also walked away with $80-$85m in Hurricane Matthew insurance proceeds, rather than put them into repairs. Other forthcoming costs will likely be severance packages, and monies owed to employees and their trade unions, while $35-$39m is the total repair bill facing the Government if it chooses to
proceed with renovating all three Grand Lucayan properties. KP Turnquest, deputy prime minister, said the full financing costs could run as high as $124m - a sum still below the total Sunwing and Wynn subsidies. “We’re looking to see what costs we can cut,” Mr Scott told Tribune Business yesterday. “We’re still getting offers in, which I’m having vetted. We’re having an appraisal done, which will be ready in 30 days; an updated appraisal for 2018. “We’re considering an exclusive marketing arrangement, which we need to get approval from the Government on. We’re looking at that stuff.” He said that determining which employees will leave, and the crafting of a severance offer package, would be “coming next week”. Another contact, familiar with developments, said Lucayan Renewal Holdings was also assessing whether it could obtain cheaper property and business interruption insurance than the current $4.5m annual premium paid to RoyalStar Assurance. They revealed there was a suspicion that the premium was based on a $400m valuation of the Grand Lucayan’s property assets, which was the sum it cost to build the resort, rather than the appraised value - which pegged its worth at $57m in 2015. “There’s lots of day-today items that Hutchison left unresolved,” the source said. “Things like insurance, and they’re arguing over inventories and value and things like that. It’s not as if there was a complete deal and everything was in order. “A lot of this stuff was done in such a hurry. It brings to light they have no real commercial lawyers in the Attorney General’s Office.” The Government, squeezed by the collapse of Wynn’s deal in July and Hutchison Whampoa’s constant threat to close the resort, appears to have felt it had no choice but to accept the latter’s terms as it hurriedly closed a deal by August 15, 2018. The source said Lucayan Renewal Holdings had spent the last several days obtaining its Grand Bahama Port Authority (GBPA) licence and paying the necessary bond, and would be able to focus on future plans in the next seven to ten days. As for potential buyers, they added: “They’ve got everyone and their mother coming out of the woodwork. They’re looking for people who are genuine.”
NOTICE Notice is hereby given that LOUIS DESIR of Kemp Road, Nassau, The 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 signed statement of the facts within twenty-eight days from the 26th September, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147, Nassau, The Bahamas.
NOTICE Notice is hereby given that ERZILIA ARTISTE- PIERRE of Millennium Gardens, P.O. Box GT 2557, New Providence, The 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 signed statement of the facts within twenty-eight days from the 26th September, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147, Nassau, The Bahamas.
NOTICE Notice is hereby given that AUTALES of Millennium Gardens, PIERRE P.O. Box GT 2557, New Providence, The 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 signed statement of the facts within twenty-eight days from the 26th September, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147, Nassau, The Bahamas.
THE TRIBUNE
Wednesday, September 26, 2018, PAGE 7
Bahamas ‘in best position in region’ to target groups
BAHA MAR
FROM PAGE ONE for the meetings, incentives, conferences and events (MICE) market. “With the opening of Baha Mar, and also with Atlantis, which has been our standard-bearer for groups and meetings, The Bahamas is in the best position in the region. Our proximity to the United States gives us an advantage. “The interest has been keen. People are blown away by the meeting spaces that are available. We are finding that our Family Islands are also proving popular for group meetings.” Mrs Jibrilu added that Exuma, Grand Bahama and Bimini, particularly the Hilton hotel on the latter island, have been popular group meetings spots. She said: “We see this as having a huge growth potential for us. We are on top of it. We are at every event that deals with the MICE market.” Mrs Jibrilu added that The Bahamas is set to host the State of
the Tourism Industry conference in Nassau next week - the largest industry event on the annual calendar. Mrs Jibrilu, who recently attended the Japan Tourism Expo, and made a presentation to Japanese travel agents, airlines, tour operators and media as Caribbean Tourism Organisation (CTO) chairman, said that country presents a potential market for this nation to tap.
“There are 20 million Japanese who travel every year. They spend a minimum of seven nights and spend a lot of money,” she said. “We found out that, in 2017, 40,000 visitors from Japan came to the Caribbean region. Most went to Cuba and the Dominican Republic. The Bahamas received 1,400 visitors. I was pleasantly surprised at that. That number speaks to the possibilities.”
NOTICE Notice is hereby given that KEIA ANECKA mcphEE of Amos Ferguson Street, 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 signed statement of the facts within twentyeight days from the 19th September, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147, Nassau, The Bahamas.
GN-2105
PAGE 8, Wednesday, September 26, 2018
THE TRIBUNE
Dingman to face default judgment FROM PAGE ONE attorneys obtained the southern New York federal court’s permission to withdraw from representing him on July 16, 2018, after they could not locate him amid a failure to pay outstanding legal bills. Clark Freeman, the attorney for Messrs Giunta and Gordon, in a September 14 letter to the judge, said: “We respectfully submit this pre-motion letter to seek leave to move for entry of default judgments against the three remaining defendants in this case - James T. Dingman and his companies, Out West Hospitality and The Traveller’s Beach Restaurant. “By order dated July 16, 2018, the court relieved counsel of record for all
defendants and ordered that ‘any corporate entities named as defendants in the complaint shall retain new counsel within 30 days of this order, and that failure to do so will result in the entry of a default judgment against them’. “Neither Out West Hospitality nor Traveller’s retained new counsel within 30 days of the Court’s July 16 order. In light of this failure to comply with the order, we respectfully request that the Court grant plaintiffs leave to move for entry of a default judgment against Out West Hospitality and Traveller’s,” the letter continued. “Similarly, Dingman has not retained counsel and has failed to litigate the case pro se. He has failed to answer the SAC (second amended complaint), and
has failed to respond to document requests served on July 19, 2018. “In light of Dingman’s failure to answer the SAC, respond to discovery or participate in any way in this proceeding, plaintiffs respectfully request leave to move for entry of a default judgment against Dingman in addition to Out West Hospitality and Travellers.” Mr Dingman’s latest blow came after his previous attorney, Jeffrey Mitchell, said there had been no contact with his client since August 2017. He told Judge Naomi Buchwald, via a June 21, 2018, letter that the Lyford Cay resident has neither revealed his location or paid past due legal bills. That came after a US federal appeals court reinstated the lawsuit initiated against
Mr Dingman by Gordon and Giunta. They had alleged that Mr Dingman breached agreements to provide them with an equity interest in Out West Hospitality, the holding company for a planned Nassau restaurant conglomerate that included the iconic Traveller’s Restaurant and several other properties, but which fell apart and collapsed in 2014. Gordon alleged that the $250,000 he paid to Mr Dingman in exchange for a 50 per cent equity stake in Out West Hospitality was a transaction which, under US law, the latter had to complete. He argued that the Out West Hospitality share deal was governed by US securities laws, given that the negotiations and communications between himself and Mr Dingman occurred in New York. Yet the southern New York court had disagreed, finding that Bahamian law trumped the US version as the Out West Hospitality share transaction needed regulatory approvals in this nation before it could close. Judge Buchwald ruled that the need to obtain Investment Board and Central Bank approval, given Gordon’s status as a nonBahamian, was “a condition precedent” that had to be completed before the purchase closed.
Given that these approvals were never obtained, Judge Buchwald found that Gordon’s claim of “irrevocable liability” on Mr Dingman’s part in relation to the deal had not been met. As a result, the whole case was undermined. Those findings, though, were subsequently rejected by the US Court of Appeals for the second circuit, which found that the agreement between Mr Dingman and Gordon was not “so predominantly foreign” as to mean US securities laws did not apply. “We are not persuaded that the foreign components present in this dispute render the claims impermissibly extraterritorial,” the Appeals Court ruled, given that the discussions over Gordon’s Out West Hospitality investment largely occurred in New York. “The agreement was entered into in New York; Dingman continued to press Gordon for further investments in New York; Dingman and Gordon were both US citizens; the wire transfers originated from New York; and the confirmation letters were sent to New York,” the US Appeals Court found. “The only foreign component present in the formation of the agreement was the eventual registration of the shares ‘with the appropriate Bahamian
To advertise in The Tribune, contact 502-2394
authorities’, an act that Dingman agreed to undertake per the agreement.” Mr Dingman’s efforts to build a Nassau-based restaurant and hospitality business included taking over Traveller’s Rest in western New Providence via a lease arrangement. That venture failed and the property shut again, until members of the Bain family, its owners, reopened it again. He also leased two units in the Klonaris brothers’ Elizabeth on Bay plaza on Bay Street for two other restaurant formats, both of which have also closed. Tribune Business also revealed how Mr Dingman leased the Beach Club Cafe from Sandyport’s developers, viewing this as his “signature property”. The venture never opened, and the lease was pulled. The initial action against Mr Dingman included numerous Bahamian plaintiffs, such as the well-known Wulff Road-based building materials suppliers, FYP and Tile King, the People First (Bahamas) employment agency, IDNet, and Young Digerati (YNG). Individual Bahamians also suing Mr Dingman included Jason Rolle, his former general manager, who claimed to be owed $46,113 in unpaid salary and benefits, plus Tyrone Adderley, a contractor seeking more than $2,000 for work on the Beach Club Cafe at Sandyport. However, all the Bahamian plaintiffs “voluntarily” withdrew their claims for thousands of dollars in damages against Mr Dingman, leaving the action to Messrs Gordon and Giunta. Their action was likely due to Mr Dingman’s efforts to dismiss the case on jurisdictional grounds, with the argument that the Bahamas was the proper forum to hear the matter.