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Dorian flooded autos ‘a disaster in waiting’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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AHAMAS First’s top executive has warned consumers to be alert for the recycling of Dorianflooded vehicles back into the market as they represent “a future disaster waiting to happen”. Patrick Ward, the insurer’s president and chief executive, told Tribune Business it was “only a matter of time” before such cars and trucks started exhibiting electrical problems that could spark fires and became “a public safety issue”. Noting that “more sophisticated” markets such as the US have suffered with unsalvageable, written-off vehicles being dumped on unsuspecting consumers in the aftermath of major hurricanes, Mr Ward said the Bahamian insurance industry has “a role to play” in countering a problem he expects will also
• Bahamas First chief sounds consumer alert • Warns of ‘public safety issue’ for road users • Adjusts claims process so clients not burdened surface post-Dorian. “One thing I think we are going have to make sure we look after properly is to avoid a scenario where vehicles damaged by sea water are recycled back into the pool of vehicles on the road because that’s a future disaster waiting to happen,” Mr Ward told this newspaper. “It’s only a matter of time before they start having electrical problems and, potentially, fires. It can manifest itself in a variety of ways where it becomes a safety issue for people in these vehicles and on the street. “It’s not in the public interest for a vehicle deemed to be unsalvageable, or extensively damaged, to find its way back on to the roads. More than anything else, it’s a public safety issue.” Mr Ward’s remarks
‘Managing Dorian’ fall-out critical to avoid downgrade By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas’ ability to attract high-quality investment and manage restoration costs following Dorian will be critical to avoiding a sovereign credit rating downgrade, a cabinet minister says. K Peter Turnquest, deputy prime minister and minister of finance, conceded that the government was “obviously concerned” about such an outcome but said both Standard & Poor’s (S&P) and Moody’s, the two credit rating agencies, had so far shown “understanding” about The Bahamas’ plight.
K PETER TURNQUEST Emphasising that The Bahamas can only focus “on the things we can control”, Mr Turnquest said The Bahamas might even enjoy “a boost to GDP” and economic growth as a result of all the reinsurance inflows,
SEE PAGE 7
Oil explorer in four additional finance offers By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A BAHAMAS-based oil explorer has revealed that some of the four additional financing offers it has received would cover the $20m-$25m costs of its first exploratory well by themselves. Simon Potter, Bahamas Petroleum Company’s (BPC) chief executive, told shareholders in unveiling the company’s half-year results that he hoped “over the near term” to update them on “further progress”
with its financing plans. With the exploration outfit’s recent annual general meeting (AGM) providing approvals that effectively unlocked access to 50 percent of the required exploratory well financing, Mr Potter’s latest note suggests BPC now has multiple options for achieving its first goal regardless of whether it secures a joint venture partner. “The company has also received four other funding proposals (some of which individually, but certainly
SEE PAGE 8
emphasise the need for Bahamian second-hand auto buyers to carefully check that their vehicles have not come from either Abaco or Grand Bahama, where many automobiles were either submerged or received extensive flood damage from Dorian’s 18 to 23 foot storm surge and salt water. The danger, too, is very real. Several Tribune Business contacts have bought vehicles for knock-down prices in what seemed like a “sweet deal” only for their acquisitions to start giving a series of mechanical and electrical problems several months later. One received a report from his mechanic stating: “Sir, it is our considered opinion that this car has been under water.” “This happens in some developed countries where they have more
sophisticated regulations and policies, and more checks and balances, so it would not surprise me if these vehicles start to circulate back into the pool of vehicles in the street,” Mr Ward told Tribune Business. “There’s a role for insurers to play to make sure vehicles in the non-salvageable pool don’t get back to the streets... It’s a fairly serious issue. The car may look like a good car but it’s only a matter of time before it starts giving fairly serious problems, and a lot of times these vehicles give electrical problems that result in a fire.” With thousands of vehicles on Grand Bahama and Abaco likely to be deemed write-offs post-Dorian, Mr Ward indicated that Bahamian property and casualty
SEE PAGE 5
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Renewable energy: URCA’s revisions ‘worst imaginable’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net RENEWABLE energy providers yesterday blasted proposed new regulatory guidelines as “the worst imaginable” solution that threatens to “set The Bahamas backwards as a nation”. The Sustainable Energy Association of the Bahamas (SEAB), in particular, warned that the Utilities Regulation and Competition Authority’s (URCA) proposed guidelines (see other article on Page 3B) for approving renewable energy self-generation projects threatened to shrink the market at a time when it should be doing everything to encourage its expansion. And Guilden Gilbert, vice-president of Alternative Power Solutions (APS) Bahamas, told Tribune Business that URCA’s proposals appeared to be designed primarily to protect Bahamas Power & Light (BPL), and its revenue and customer base, rather than incentivising greater use of
renewable energy. Producing a “back of the envelope” calculation showing that grid-tied homeowners and businesses would be worse off under the new guidelines, Mr Gilbert argued that URCA appeared to have performed a 180-degree turn and abandoned its primary mandate of consumer protection in favour of the state-owned utility monopoly’s interest. Central to URCA’s proposal is a change in how both homeowners and businesses will be compensated for the energy their grid-tied systems will sell to BPL. The present Small Scale Renewable Generation (SSRG) initiative, launched in 2017, rewards such renewable producers through a “net billing” arrangement. This enables persons with grid-tied systems to “net off” the difference between what they supply to, and consume from, BPL. However, the URCA proposal released on Friday proposes
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PAGE 2, Monday, September 30, 2019
THE TRIBUNE
Broker’s Dorian rental plans gain ‘incredible momentum’ A BAHAMIAN real estate broker says his proposed Rental Assistance Programme for Hurricane Dorian victims is gaining
“incredible momentum” among potential investors. Mario Carey, principal of Better Homes and Gardens Real Estate MCR Group
Bahamas, said businessmen and high net worth individuals had reacted favourably to the idea of buying distressed New Providence
homes at affordable prices - and with reduced closing costs - as a solution to the housing needs of Dorian evacuees. “We had a group of high net worth individuals on the island this week for a private event hosted by Bahamian businessmen,” Mr Carey said. “When we mentioned the idea of taking unoccupied residential properties, either single or multi-residential, and converting them into shortterm rentals at a reduced rate to provide some form of normalcy for families who lost everything during the storm, every single member of that group of the super successful said they would like to be part of it. They recognised it as social entrepreneurship.” Mr Carey is proposing to create an inventory of all distressed properties in New Providence and populated Family Islands that could support additional children in classrooms, or would have the necessary medical facilities available in special cases. “Part of the challenge now is that people are being housed all over – in shelters, in hotels, with family or with strangers who have been kind enough to take them in,” he added. “None of those conditions is sustainable. “Families cannot live in tents, shelters or hotels for extended periods. For those who lost everything, having a roof over their head and a home to call their own, even temporarily, will allow them a chance to begin to build their lives again. “Contributions that came in immediately following the storm are already slowing down, making it increasingly challenging for government to keep people in those hotels that are charging for rooms.” Mr Carey suggested there are probably more than 2,000 residential units held by banks and
BROKER Mario Carey says his proposed Rental Assistance Programme is gaining “incredible momentum”. He is suggesting investors buying multiple distressed properties at affordable prices, and reduced closing costs, as a solution for housing those impacted by Hurricane Dorian. other financial institutions as a result of homeowners defaulting on mortgages. In a small percentage of cases, the homeowner has been allowed to remain in the house while the bank attempts to sell and recoup the money it lent, but the vast majority of these homes sit empty. “Vacant houses, especially if there are several, bring down the value of a neighbourhood,” he added. “They can be unsightly with uncared-for yards. Vacant buildings become refuges for rats, mice and other vermin, not to mention the drug dependent and the homeless. Often, they are cover for drug deals or criminal acts.” Mr Carey envisions various groups of investors, led by Bahamians, buying distressed properties, but with reduced closing costs including the possibility of a VAT waiver. Reduced repair costs could be facilitated by import duty and ‘border VAT’ exemptions for those suppliers on the National Emergency Management Agency’s (NEMA) approved list of vendors, which is expected to be issued soon.
Decisions about the extent of government rent subsidies, such as length of assistance and who qualifies, would still have to be made if the idea is approved. Mr Carey has started a round of meetings with officials in the public, private sectors and notfor-profit sectors to obtain these answers and build support for his idea. Christine WallaceWhitfield, the Bahamas Real Estate Association’s (BREA) president, gave a personal tentative nod to Mr Carey’s plan, noting the Board had not met and it was only her opinion. “An occupied property is always a better option than a vacant property in a neighbourhood,” said Mrs Wallace-Whitfield. “Occupied properties are less vulnerable to vandalism, or settings for crime, drugs and general deterioration. “It would be a solid solution for banks to get foreclosed properties off their books, eventually provide a return on investment for those who purchase and, in the interim and most importantly, provide housing for those who need it.”
THE TRIBUNE
Monday, September 30, 2019, PAGE 3
Stifling ‘red tape’ fears over renewable energy By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net REGULATORS are proposing to cap the amount of energy grid-tied renewable systems can send to Bahamas Power & Light’s (BPL) grid at ten percent of the utility’s total generation capacity. The Utilities Regulation and Competition Authority (URCA), in its newly-released guidelines for the approval of renewable energy self-generation systems (RESG) is also proposing to limit the installed capacity of each grid-tied unit to 1,000 kilowatts. Renewable energy providers reacted swiftly to the regulator’s proposals, with the The Sustainable Energy Association of the Bahamas (SEAB) noting that the aggregate grid-tied capacity being permitted on New Providence will be equivalent to 30 megawatts (MW). It pointed out that this was still some 20 MW more than the ten MW currently permitted under the Small Scale Renewable Generation (SSRG) initiative overseen by URCA, which said earlier in its document that going to 30 MW would match 12.5 percent of BPL’s generation capacity. “At present, ten MW of production is allotted to the SSRG programme in New Providence which, albeit significantly undersubscribed, represents approximately four percent of BPL’s daily maximum demand,” URCA said. “URCA considers that at least a further 20MW can be initially allocated for renewable energy generation by consumers, which would represent a total allotment of 12.5 percent of BPL’s current daily maximum demand if fully subscribed. “Research from more mature renewable energy markets with similar characteristics (for example, Barbados) indicates that this percentage has not posed any system stability issues and can be accommodated within conventional spinning reserve limits.” However, SEAB and its members voiced concern that the terms and conditions associated with supplying energy from grid-tied renewable systems to BPL were weighted heavily in the utility’s favour and threatened to create a bureaucratic/red tape nightmare with multiple government agencies involved in the inspection and approvals process for such systems. Besides grid-tied renewable providers having to enter into 15-year supply
contract, the URCA consultation document reveals that all existing systems under the SSRG “will not be grandfathered in” but having to undergo an inspection and approval process yet again. “This means that the National Stadium and private systems will need to reapply and be re-inspected,” the SEAB association warned. And, besides obtaining and maintaining all necessary environmental approvals and permits, RESG grid-tied systems must first be approved by the Ministry of Works via an electrical inspection certificate before they can be commissioned. The inspection process will incur a $250 fee, and that is before they have to agree and interconnection agreement with BPL. “URCA is proposing to install two meters on a business and make the businesses pay for the cost of the second BPL meter,” SEAB added. “The second meter will go on the solar system so the utility can reduce the value of the solar-generated electricity, with URCA’s approval, as a means of ‘leveling the playing field’ so the BPL utility does not ‘lose money’ from solar customers. “URCA is proposing to require the business to be responsible for the total cost of any upgrades, such as transformer change-outs or primary/secondary line rebuilds that are required due to the connection of the approved renewable facility, but only the utility company may install them. The business pays for the cost charged by BPL to install upgrades to the utility equipment. “URCA is proposing to require businesses to take out an insurance policy to protect BPL from any damaging effect of the customer’s solar system. URCA is not requiring BPL to be insured for any damaging effect from the electricity they supply to businesses. The likelihood of business equipment being damaged by the BPL electric supply is high. The likelihood of a modern solar system damaging the BPL grid is extremely low.” Warning of the potential consequences, SEAB added: “A government monopoly on the electricity supply does not promote competition or competitive rates of electricity for the end consumer, even when the end consumer is the taxpayer who technically owns the utility and is paying the highest rates in the world for electricity.”
‘TACT AND STRATEGY’ NEED OVER TOURISM PROMOTION By YOURI KEMP
THE Bahamas must “tactfully and strategically” promote it is open for business ahead of the all-important winter tourism season’s November start, a top hotelier says. Robert Sands, Baha Mar’s senior vice-president of government and external affairs, backed the strategy set by Dionisio D’Aguilar, minister of tourism and aviation, and his ministry in a bid to “arrest the double digit booking fall” caused by Hurricane Dorian’s fall-out. Mr Sands told Tribune Business: “The strategy is certainly the right one; the best way to make reservations and support touristic properties in the islands that have not have been affected by Dorian. Principally the message is that The Bahamas is an archipelagic country with many islands from north to south, and 14 other main islands are still available. “Individual brands are doing the same thing, other hotels are doing the same thing, and the Bahamian population in general is doing the same thing on social media and where they can. He [Mr D’Aguilar] is not alone in his efforts even though he is in the lead.” Mr Sands warned, however, that “the messaging has to be done tactfully and strategically. The winter season is coming upon us, and so we look for efforts to be ramped up when it’s time”. When asked if he felt this was enough right now, Sands said that: “The first strategy is social media, but that cannot be the only strategy. Later on in the fourth quarter of this year we will hopefully see more in other areas of the media when preparation for the winter season is upon us. We have to reassure the world that The Bahamas is still open for business.” Mr Sands also blamed what he described as a general “lack of geography and knowledge” on The Bahamas among many persons for misleading them into thinking that
SECURITIES COMMISSION OF THE BAHAMAS JOB OPPORTUNITIES The Securities Commission of The Bahamas, a statutory agency responsible for the oversight, supervision and regulation of the investment funds, securities and the capital markets, in or from The Bahamas, as well as the supervision of financial and corporate service providers, invites applications from qualified individuals to fill the following positions: DEPUTY MANAGER Risk Analytics and Examination Department (Examinations Division) SENIOR OFFICER/APPLICATION SUPPORT/DATA ANALYST Information Technology Department APPLICATIONS: Full details of the job opportunities, guidelines for the submission of applications and general information about the Securities Commission of The Bahamas may be obtained from the Commission’s website at www.scb.gov.bs under Career Opportunities. The closing date for applications is 11 October 2019.
ROBERT SANDS
CARLTON RUSSELL
Dorian has destroyed the entire country. The Bahamas Hotel and Tourism Association (BHTA), in a statement, confirmed that the pace of forward bookings has softened, “in some cases significantly, when compared to bookings for the same period last year”. It blamed several factors, including Dorian’s impact on Grand Bahama and Abaco, the subsequent widespread coverage of the storm and lack of understanding of The Bahamas’ geography for causing “a marked impact on business, which is unfortunate but not unanticipated”. “Tourism stakeholders, in communication with the BHTA, stress the need to ensure internal and
external communicators - including international media, press, social media platforms, influencers, newspaper outlets - have access to and relay accurate information about the impact of Hurricane Dorian on The Bahamas, including the specificity of the areas affected,” the BHTA said. “It is vital that the world market understand The Bahamas, which is an archipelago comprised of over 700 islands spread over 100,000 square miles of ocean, remains largely untouched by the passing of Hurricane Dorian. “The road to recovery for areas affected in Abaco and Grand Bahama is being paved thanks to the vast influx of support from both international
and local sources. The next phase is the rebuild, recovery and restoration of the affected islands.” “It is imperative the cogs of our tourism engine keep turning at its regular rapid pace,” said Carlton Russell, BHTA president. “Public and private sector tourism stakeholders, including The Ministry of Tourism, promotion board partners such as The Grand Bahama Island Tourism Board, Nassau Paradise Island Promotion Board, Bahama Out Islands Promotion Board, Caribbean Hotel and Tourism Association and The Bahamas Hotel and Tourism Association are aligned in our messaging to the world: The influx of tourism dollars is the best form of aid and relief anyone can offer the people of The Bahamas affected by Hurricane Dorian. “Come to our shores to enjoy the beauty of our islands, the warmth of our people, the flavour of our food and drink, our unique culture, customs, music and art. By doing so you are helping us to help ourselves.”
PAGE 4, Monday, September 30, 2019
THE TRIBUNE
TOURISM TELLS CANADA: WE’RE OPEN FOR VISITORS TOP Ministry of Tourism executives last week travelled to Montreal to deliver the message that The Bahamas is open for business and ready for Canadian travellers after Hurricane Dorian. Dionisio D’Aguilar, minister of tourism, and Ellison ‘Tommy’ Thompson, deputy director-general, provided key destination
updates to travel agents and media in partnership with Air Canada and Air Canada Vacations. Participating hotels included Grand Isle Resort & Spa, Warwick Paradise Island, Sandals and the Nassau/ Paradise Island Promotion Board. The Ministry of Tourism leaders reinforced the fact that while two
Bahamian islands, Grand Bahama and The Abacos, are rebuilding after the devastation caused by the storm, there are still 14 unaffected islands - including Nassau/Paradise Island and the other Family Islands - that are open for business and ready to welcome visitors for a tropical getaway. “The Bahamas is still
DIONISIO D’AGUILAR, minister of tourism, is shown with Marie Claude Gagnon, Entourage Solutions. ready to welcome visitors and we are delivering the tropical getaway that your readers and clients are seeking,” said Mr D’Aguilar during the luncheon. “The beautiful sun, sand and sea showcased by our ‘fly away’ campaign are still just an airplane ride away.” To reinforce the beauty, warmth and adventure provided by these 14 islands, the Ministry of Tourism debuted its new Fly Away brand campaign to entice travellers to visit The Bahamas now. Destination partners also introduced new developments, including Air Canada’s increased airlift to The Bahamas. Fly Away, the new multichannel, creative campaign featuring Bahamian-American rock legend, Lenny Kravitz, reveals the authentic spirit of The Bahamas as a destination of adventure and discovery. Set to the lyrics of Kravitz’s hit song, Fly Away, the television commercial and supporting marketing efforts capture his personal connection to The Bahamas, as well as the adrenaline rush of exploring the archipelago’s 100,000 square miles by boat and plane. Paul Strachan, senior director in The Bahamas Tourist Office in Canada, said Montreal is the second most-important Canadian market in terms of
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PICTURED from left: Paul Strachan, Bahamas Tourist Office, Canada; Brent Carnegie, Canlink; Alexie Deshenes, Air Canada; and Steven Johnson, Bahamas Tourist Office, Canada.
LEE KOMITZKY, Berk Communications; Melanie Reffes, Travel Experience Caribbean, USA Today; Dionisio D’Aguilar; and Dimitri Fourias, GIV Bahamas.
FROM left: Steven Johnson, BTO Canada; Paul Strachan, BTO Canada; David Cote, Air Canada Vacations; Dionisio D’Aguilar, minister of tourism and aviation; Ellison “Tommy” Thompson, deputy director general, Ministry of Tourism; and Seve Williams, BTO Canada. Photos: Open Jaw visitor arrivals to The Bahamas. Air Canada has increased its airlift from Montreal to Nassau, beginning on December 20, 2019. The non-stop service will increase Canadian airlift from twice a week to four times a week. Ministry of Tourism executives said the best way Canadians can help The
Bahamas is simple: Plan a vacation. In addition to planning a trip to The Bahamas, monetary donations to a reputable relief organisation are most critical at this time for The Abacos and Grand Bahama. Those who wish to contribute can find a list of The Bahamas’ verified partners at www. bahamas.com/relief.
FIRM PARTNERS WITH CHARTER IN DORIAN RELIEF
WORKERS loading up the MV Impulse with relief supplies. BAHAMASLOCAL. COM partnered with the crew of the MV Impulse and the Bahamas Red Cross to deliver Dorian relief supplies to Little Abaco and East End, Grand Bahama. Determined to make an impact, they loaded the luxury yacht with 16 pallets of goods including food, water, tarps, blankets, clothing, shoes, bleach, insecticide, hygiene kits and more for the 12-hour voyage into the banks between the Abacos and Grand Bahama. “We’re not from here but we figured BahamasLocal. com would know how best we could help. Our boss is a really nice guy, and as soon as he heard about the destruction he said we could use the boat to help and even gave us a budget for fuel and food for any volunteers,” said Jonathon Yoors, captain of the MV Impulse, which operates as a charter company in The Bahamas. Once contacted by the MV Impulse crew, Vanessa Mott, BahamasLocal.com’s head of marketing and communications, immediately reached out to the Bahamas Red Cross to see if they could assist in sending supplies to the settlements in north Abaco now isolated after Dorian washed out the only bridge to the mainland.
Exanna Dormeus, Family Island co-ordinator for the Bahamas Red Cross, arranged the delivery of eight pallets, while Niles Saunders of Saunders Trucking arranged another eight to be shared between Little Abaco and East End, Grand Bahama. Once on the ground in Crown Haven, Little Abaco, the volunteers from the Red Cross and BahamasLocal.com went door-to-door to deliver supplies and check on the well-being of those who had stayed behind to rebuild their settlements. Once a community of 775 persons, Little Abaco now has a population of 410. Over in the cays near McClean’s Town, Grand Bahama, the devastation was just as great. “To be there amongst people literally rebuilding their lives with damaged homes, no jobs and very little resources was sad and inspiring all at once,” Ms Mott said as she reflected on the three-day trip. “These people embody the Bahamian spirit, battered and broken yet soldiering on, and we have to stand with them now and in the months and years to come. This is what is meant when we say ‘Forward, upward, onward together.’ We can only do it together.”
THE TRIBUNE
Monday, September 30, 2019, PAGE 5
Hutchison donates $500k to GB rebuild HUTCHISON Ports’ three Grand Bahama business units have presented the government with a $500,000 donation specifically earmarked for the rebuilding of Grand Bahama. The donation was made on Wednesday, September 25, 2019, at the Prime Minister’s Office in Freeport on behalf of Hutchison Ports FCP (FreeportContainerPort), Hutchison Ports FHC (Freeport Harbour Company), and Hutchison Ports GBAC (Grand Bahama Airport Company).
Acknowledging the “unspeakable conditions” as result of Hurricane Dorian, Hutchison Ports officials said: “We are all affected by what has happened, and as a part of our responsibility we have made the decision to support the work being done by the National Emergency Management Agency (NEMA).” Hutchison extended condolences on the loss of lives, and said: “As we work together, we look forward to the rebuilding transformations on Grand Bahama, Bahamas.”
Dorian flooded autos ‘a disaster in waiting’
already gave “a significant number of loss adjusters” contracted to work on their behalf conducting damage and loss assessments in both east Grand Bahama and Abaco and its surrounding cays. “In Abaco we’re rotating people in and out because of the difficulty of finding them accommodation,” he added of Bahamas First. “It’s a question of going in, doing the adjustment work and going back in again. “It’s fair to say claims payments have commenced in both locations. I would say there are quite a few vehicle claims paid out because their cars were effectively totalled as a result of flood damage, primarily, and some homes and businesses that produced evidence of a total loss, so they were paid out in full or in part.” Mr Ward said the Dorian claims assessment and settlement process was likely to be concluded fairly quickly in comparison to how long it will take to completely rebuild Abaco, in particular. “I think the process involved in settling claims, and dealing with the number of claims, is not going to take very long,” he told Tribune Business. “What is going to take long is the rebuilding process after the event. “While we’re talking about significant chunks of The Bahamas, I think most insurance companies will be able to deal with the majority of claims in the next few months. The rebuilding exercise is going to be mammoth.” Mr Ward added that it was “inevitable” that Dorian, which is currently estimated to have produced $500m-plus worth of insurance claims, will cause an increase in Bahamian property insurance premiums during the next renewal cycle. “At this point not only premiums will probably be impacted, but the terms and conditions specific to Abaco and Freeport, and possibly elsewhere, are going to be revised to ensure that, at the end of the day, the industry will be in a position to provide coverage on an affordable basis,” he said. The continued affordability of insurance coverage, Mr Ward added, will be determined by the performance of the Bahamian economy and if incomes can keep pace with any rise in premiums.
FROM PAGE ONE
insurers would likely check carefully and decline to cover any automobiles originating from these islands. The Bahamas First chief described Dorian as “the most challenging” catastrophe-related event he has ever dealt with primarily due to the severity and extent of the devastation inflicted on Abaco and east Grand Bahama by the category five storm. He revealed that Bahamas First had been forced to adjust its processes as a result, ensuring it did not impose “unduly bureaucratic processes on persons when they can least afford it” when assessing the extent of their property, auto and boat losses/damage. “In my own measure it’s been the most challenging severe event, primarily because of the lack of direct access to the affected areas,” Mr Ward explained. “It’s either because of the physical damage, the infrastructure damage or the government ‘quarantining’ certain areas on safety grounds. “There are obviously some lessons to take away from this for future events involving storms of this magnitude. You’d expect a certain level of infrastructure to normally be in place after a storm, but one of the things we have to plan for is a scenario of having no physical infrastructure in place and what that means for loss adjusters accessing the property as well as getting in touch with their client base. “There are also challenges identifying properties, whether a car, a house or boat, where there may be very little remaining. We’ve had to make adjustments on what level of due diligence we do in assessing properties so that we’re not imposing unduly bureaucratic processes on people when they can least afford it. We’ve had to make some adjustments as to how we approach a catastrophic event like this.” Mr Ward said Bahamas First and other Bahamian property and casualty insurers
FROM left: Iram Lewis, minister of state, disaster preparedness, management and reconstruction; Kwasi Thompson, minister of state for Grand Bahama, Office of the Prime Minister; K Peter Turnquest, deputy prime minister and minister of finance; Dr Hubert Minnis, Prime Minister; Godfrey Smith, chief executive, Hutchison Ports FCP; Sherry Brookes, government/corporate affairs director, Hutchison Ports FCP; Orlando Forbes, port director, Hutchison Ports FHC; Franklyn Campbell, minister of social services.
PAGE 6, Monday, September 30, 2019
Renewable energy: URCA’s revisions ‘worst imaginable’ FROM PAGE ONE
to change the compensation mechanism from “net billing” to a “buy all, sell all” approach for all renewable energy self-generation (RESG) systems. This means, according to URCA, that homeowners and businesses will not be able to consume any electricity generated by their renewable systems. They will instead have to export all energy they generate to BPL, and consume all the electricity they need from the state-owned monopoly at the standard retail tariff levied
on all its customers. URCA is proposing that those who “sell all” to BPL under this arrangement are compensated by the equivalent of BPL’s monthly fuel charge, which normally accounts for 50-60 percent of customer bills. This will be paid via either credits to the utility bill or via cash The regulator’s consultation paper suggests BPL’s fuel charge is equivalent to the “avoided cost” for those with grid-tied renewable systems, although it admits this “may not be adequate to actually compensate” homeowners and businesses because the utility will also
THE TRIBUNE recognise additional savings in its transmission, distribution and supply segments. Conceding that it has yet to quantify these potential savings, URCA promised it will conduct a study to determine “a more appropriate avoided cost” to be paid to grid-tied renewable suppliers. The “buy all, sell all” compensation method is also what Grand Bahama Power Company and its owner, Emera, have been proposing for Grand Bahama. It is unclear whether URCA’s proposed guidelines will move The Bahamas closer to achieving the National Energy Policy’s (NEP) 30 by 30 goal, which is to meet 30 percent of this nation’s energy needs from renewable sources by 2030. The guidelines have also been released at a time of heightened concerns regarding climate change, and the need to move away from reliance on fossil fuels to renewable and sustainable energy sources, as a result of the devastation inflicted upon Abaco and Grand Bahama by Hurricane Dorian. The “buy all, sell all” approach did not sit well with the Solar Association (SEAB), which said: “It is SEABs position that the proposed legislation (guidelines) is extremely harmful and detrimental to the Bahamian solar industry and their solar customers... “It is the worst imaginable... for medium and large-size businesses wanting to lower their electricity costs with a solar system connected to the BPL grid. It is predicated on the existing utility structure with a continuation of the existing monopolistic governmental supply of electricity to the public and governmental control of pricing, inspections and approvals. “It will create a ‘win-lose
deal between... BPL and Bahamian businesses. BPL will have the greater advantage, and businesses will not be incentivised to ‘sign on’ to the RESG projects as they would not be economically viable under the proposed programme rules.” SEAB argued that URCA’s proposed guidelines would reduce demand for the installation of gridtied renewable energy systems throughout The Bahamas, resulting in a loss of business for not only its installer and supplier members but associated professions such as electricians. “It will result in less revenues for solar companies because it will eliminate a potential solar market within medium to large businesses,” it said bluntly. “It will result in less subcontracting from the solar companies to construction and electrical companies “It will result in decreased job openings in the solar industry because it will decrease the number of projects available to work on. It will prevent local or foreign direct investment for medium-sized solar systems on businesses in The Bahamas.” Urging the Bahamian public and private sector, especially medium-sized businesses, to “sit up, pay attention and understand what is about to legislated and take action in your best interests”, the Association said: “It is the unanimous conclusion of the leading Bahamian solar energy companies that the current proposed legislation (guideline) changes will increase the unfairness of the rules towards Bahamian businesses who want to ‘go solar’, be harmful to the solar industry businesses and set us backwards as a nation.” These concerns were echoed by Mr Gilbert, who told Tribune Business that the way in which URCA’s consultation document was written clearly showed that the main priority appears to be protecting BPL. In particular, he cited section 4.2.2, which stated: “URCA must, where it proposes a regulatory initiative,
consider the economic impact such an initiative may have on the viability of the business of regulated entities. “In that context URCA is aware of legitimate concerns of BPL as to the potential impact on financial performance of economically significant existing consumers reducing their demand on, or consumption from, BPL, particularly where BPL is required to continue making power available to those consumers.” “This section appears to us to show the desire of URCA to protect BPL,” Mr Gilbert argued. “Is it not incumbent on the utility to manage its own economic affairs? Why is this now being placed on the consumer? If a consumer already has a BPL connection, how is that consumer economically impacting BPL, except that the demand from BPL from that customer can be reduced with the installation of an RESG system? “The only thing that happens is that BPL has a reduced revenue stream from that consumer. The demand is reduced because very few consumers will actually be able to get to a state of being completely off-grid, either due to cost or the lack of available roof or yard space for the installation of PV panels. There is nothing extra BPL needs to do to get power to the consumer. “If the owner of the RESG must export every kilowatt produced from the system and cannot use anything from it for private consumption, how is BPL to reduce its reliance on fossil fuels? How do this policy tie into the National Energy Policy?” he continued “Shouldn’t BPL be happy to receive the excess power from RESG systems while that system is also providing power to the residence? Is this not a better method to reduce consumption and by extension the demand for fossil fuels?” Arguing that the intent “seems to be to dissuade persons from installing an RESG system”, Mr Gilbert asked: “If that is not the case perhaps URCA would
be willing to explain the methodology behind this policy of ‘Buy All, Sell All. What this is saying is that the RESG owner is nothing more than an Independent Power Producer (IPP) as the only rationale for the system is to export power to BPL. “Further, will URCA stipulate when the payment from the exported kilowatts be paid? Will they stipulate that just as consumers are billed monthly and expected to settle their accounts monthly, that the proceeds from the sale of this power will also be paid monthly? “There has to be some form of payment because the consumer has gone into debt to install a system. That debt could be removing funds from their savings account or through a lending facility. Will there be a penalty in place if BPL does not pay on a timely basis, just as when a consumer fails to pay on a timely basis their power is disrupted?” Calling on URCA to allow homeowners and businesses to operate renewable systems without needing a BPL connection, Mr Gilbert added: “Our biggest question, and hopefully URCA is willing to answer it, is: What is the underlying reason for this policy if it not to protect the revenues of BPL? “This position by URCA, confusing to us as it is, appears that the interconnection method is more beneficial to BPL than to the RESG system owner. What is being proposed is concerning as most persons who install systems, from our experience, are doing so to be able to independently power their homes during the day and purchase from BPL at night, or to independently power their homes through the night using battery-based systems (the vast majority of installations). “My understanding is that URCA, as the regulator, is charged with the protection of the customer - the end user - not the utility. This method does not appear to be protecting the consumer.”
THE TRIBUNE
Monday, September 30, 2019, PAGE 7
‘Managing Dorian’ fall-out critical to avoid downgrade FROM PAGE ONE together with the necessary private and public investment, that is required to restore east Grand Bahama and Abaco. While not the sort of economic growth that The Bahamas has been seeking, the deputy prime minister added that the government “does not anticipate going to the markets at the moment” to borrow extra funding for Hurricane Dorian recovery. Mr Turnquest said the government planned to draw on the $100m credit facility from the InterAmerican Development Bank (IDB); bank financing; the $30m-$40m worth of dormant account balances held by the Central Bank; the $12.824m made available by the Caribbean Catastrophe Risk Insurance Facility (CCRIF); and other sources to kick-start rebuilding efforts. “Obviously we are concerned about it,” Mr Turnquest replied, when asked by Tribune Business about the prospects for a post-Dorian credit rating downgrade. “This is a significant event, and we’re going to have to manage this very carefully, but the rating agencies have indicated they understand the situation. “As long as we manage the expenditure, and target the kind of resources from an economic perspective that we anticipate in terms of continued investment, we should be OK. These are things that are not unexpected. It’s a matter of how we manage it, and the pace at which investment continues. “That’s what we have to
concern ourselves with in controlling the things we can control. The Carnival signing is a significant confidence boost, and the negotiations with RoyalCaribbean and ITM (over the Grand Lucayan) continue on at pace.” Both rating agencies thus far appear to have adopted a fairly sanguine attitude towards the likely impact that Dorian will have on the Bahamian economy, and key fiscal indicators such as the annual deficit levels and $8bn national debt, in the short to medium-term. S&P, whose analysts are due in The Bahamas for their annual assessment within the next fortnight, has yet to make any official statement or action on The Bahamas. Moody’s response to-date has been to release an investment note on how Dorian has exposed this nation’s vulnerability to climate change, but its estimates of the likely economic fall-out were relatively benign. The Bahamas was relegated by S&P to so-called “junk status” under the former Christie administration, where it remains - hovering just one or two steps below investment grade. Thus nation has retained its “investment grade” status with Moody’s, albeit only by one notch, with the agency last year removing its “negative” outlook on this nation and upgrading it to stable. Despite the rating agencies’ mild reaction to-date, there is no doubt that the government and Bahamian taxpayer will incur substantial costs to rebuild east Grand Bahama and north Abaco. Dr Duane Sands, minister of health, last week told Tribune Business that
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healthcare restoration costs will be worth around $90m. And Desmond Bannister, minister of works, said the cost of restoring water and power alone to Abaco will be between $95m to $110m. Add in the healthcare projections, and the government will have to invest close to $200m in these three areas alone. The cash-strapped nature of Water & Sewerage and Bahamas Power & Light (BPL) means these burdens will fall on the Bahamian taxpayer. These figures, too, do not include the roads, bridges, public docks and other public buildings that will have to be repaired and replaced, meaning that the government’s total bill - setting aside that of the private sector - is already running into the hundreds of millions of dollars. Mr Turnquest, though, said the insurance and private investment inflows required to rebuild projects such as Baker’s Bay & Golf Ocean Club, multiple Abaco resorts and second homes could ultimately provide a boost significant enough to drive unexpected economic growth. “We anticipate we might have a boost to GDP from this, believe it or not,” Mr Turnquest told Tribune Business. “It’s not the kind of boost we want but there’s a lot of physical infrastructure work that has to be done. We have to build back, and build a lot more resilient, to ensure the Bahamian people get the kind of infrastructure they need going forward.” The deputy prime minister declined to be drawn on the value of the damage/ loss inflicted by Dorian, or the extent of the hole it has
blown in the government’s fiscal consolidation plan, other than to say it expected to have data this coming week on the issue. He added, though, that the government intended to “build off” the Economic Recovery Zones unveiled by the prime minister with a “comprehensive plan” for Dorian restoration and recovery also due to be released imminently. And Mr Turnquest revealed that the government does not plan to tap the local or international capital markets for bond financing yet, saying: “We are not anticipating going out to the markets at the moment. “We have already made plans with respect to the contingent line, which will fund some of it. We have some funding through other sources; bank money, CCRIF and the rest of it to address the immediate needs urgently.”
PAGE 8, Monday, September 30, 2019
Oil explorer in four additional finance offers FROM PAGE ONE
all in aggregate, if contracted and fully drawn-down, would cover the anticipated cost of the well), as well as multiple other expressions of interest, all of which are currently being evaluated,” Mr Potter disclosed. “We hope over the near-term to be able to advise shareholders of further progress in this regard... Farm-in discussions continue, albeit with the benefit of a known financial objective (a well cost in the range of $20m to $25m) and we are now actively working in pursuit of a simple goal: To put in place a suitable set of financial arrangements sufficient to fund the intended initial exploration well, whether that is via a farm-in on acceptable terms, or by other means, whichever is in the best interests of the company and its shareholders.” Mr Potter’s comments came after he recently told Tribune Business that BPC now had almost total certainty that it will be able to finance drilling of its first exploratory well in waters several hundred miles south-west of Andros, near The Bahamas’ maritime boundary with Cuba. “We’ve got a range of options for funding that is certainly going to deliver the $25m needed to deliver the well,” he said in a recent interview with this newspaper. “We’ve identified, given that we’ve locked in the pricing through the technical agreements we have, a $20m-$25m range for the well. This isn’t a number plucked out of the air; it has considerable engineering gone into it. “The pricing of rigs has come down considerably, and we’ve locked in the rig price per day,” he explained.” We can be fairly certain about costs. The rig is coming from the Gulf of Mexico, which is very close to The Bahamas, so in terms of pricing, logistics and transit time, that’s relatively minimal.” Mr Potter’s comments are likely to infuriate Bahamian environmental activists who have long opposed BPC’s activities, with Hurricane Dorian’s recent impact at Equinor’s South Riding Point oil storage terminal and the affects of climate change merely escalating their concerns. Many Bahamians will likely be sceptical as to whether any oil exploration activities will take place, given the lengthy 12-year process BPC has been involved with, but the financial impact of Hurricane Dorian’s devastation will likely strengthen the calls that this nation has nothing to lose in determining whether commercial, recoverable quantities of oil are located within its waters. “With the benefit of key
parameters having been established - namely, an unambiguous obligation to drill a well in 2020 and an estimated well cost of between $20m to $25m the company has been able to move forward with the all-important task of securing the funding necessary to support the intended drilling campaign,” Mr Potter reiterated. “To date, the company’s focus has been predominantly on securing funding via a farm-in agreement, and farm-in discussions are continuing. Multiple parties are currently engaged in ongoing due diligence and commercial discussions, and it remains the company’s preference to secure all or part of the required well funding through this structure. “However, in the past six months the company has also sought to broaden its approach to seek other sources of potential finance such that if a farm-in is not secured, or if the terms of any potential farm-in are not satisfactory, the company can nonetheless proceed to drilling.” The AGM approvals, several of which related to financing, gave the go-ahead to a conditional agreement with Bizzell Capital Partners, an Australian-based oil and gas exploration financier, to provide a £10.25m convertible loan that can be switched into equity shares. That sum, which translates into $12.5m, is equivalent to half the cost of the $25m initial exploration well and will help underpin BPC’s drilling should a joint venture partner not be sealed in time. Mr Potter told shareholders it had given BPC “the flexibility to enter into a range of possible funding arrangements, as and when required” and if they are in its best interests. With BPC required to drill its first exploratory well before year-end 2020, Mr Potter told shareholders that the company had further reduced the technical risks associated with the project by undertaking four further studies that “have all produced positive results which, taken collectively, highlight the likely presence and quality of a world-class source rock and petroleum system located precisely in the BPC licence area”. BPC said its cash reserves stood at $3.2m at endJune 2019 following a first half loss of $1.49m. It had earlier raised $2.5m in working capital from a private placement. Mr Potter added that if the impact of $1.2m worth of write-backs related to his remuneration were excluded, BPC’s year-overyear operating loss for the six months to June 2019 would have been down by 19 percent. “Other expenses” were also off by 12 percent compared to the prior six months.
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THE TRIBUNE
THE TRIBUNE
Monday, September 30, 2019, PAGE 9
Could Washington’s impeachment drama spark China trade deal?
PRESIDENT DONALD TRUMP, left, meets with Chinese President Xi Jinping during a meeting on the sidelines of the G-20 summit in Osaka, Japan. WASHINGTON Associated Press THE Democratic impeachment inquiry may do at least one thing for President Donald Trump: It could give him more incentive to resolve his trade war with China. As the political heat rises in Washington, a deal with Beijing would allow Trump to claim a muchneeded victory and divert some attention from an explosive congressional investigation into his dealings with Ukraine. Analysts say Trump’s conflict with Beijing, which has shaken financial markets and further darkened the global economic outlook, could be headed for some tentative resolution in the coming months. Talks between the two countries are set to resume in October. “The political mess may now encourage President Trump to accept an imperfect deal with China,” Hussein Sayed of the foreign exchange brokerage FXTM wrote in a report. “After all, he needs to prove that he’s the master of dealmaking, and now is the right time to raise his approval rating higher.” At the same time, however, the impeachment inquiry may have dimmed the prospects for other items on Trump’s trade agenda, including his push for congressional approval of a revamped North American trade agreement. That would require backing from the Democratic-led House, and relations between the two parties may now be more inflamed than ever. The impeachment proceedings will likely dominate Washington for months, siphoning time and energy from the normal business of government — debating, compromising, legislating, policymaking. The likelihood of meaningful legislative gains was already slight. Now, it appears even more remote. White House Press Secretary Stephanie Grisham went so far as to assert that the House Democrats’ investigation “destroyed any chances of legislative progress for the people of this country”. By contrast, a tentative resolution in Trump’s China trade war wouldn’t need congressional approval, one reason for some renewed optimism. The world’s two biggest economies are engaged in the biggest trade war since the 1930s. The Trump administration alleges that Beijing deploys predatory tactics — including stealing technology and forcing foreign companies to hand over trade secrets — in its drive to surpass America’s technological supremacy. Trump has imposed tariffs on more than $360bn in Chinese imports and is set to raise the taxes on most of them next month. He plans to tax an additional $160bn in Chinese goods Dec 15 — thereby extending his tariffs to just about everything China ships to the United States. Beijing has retaliated by taxing $120bn in US imports. The US business community is eager for an end to the exchange of tariffs, which has raised costs and created uncertainty about where to situate factories, hire suppliers and sell products.
Even before members of Congress began pursuing an impeachment investigation, Chinese leaders were speculating Trump might want a deal to bolster his political standing, said Willy Lam, a politics specialist at the Chinese University of Hong Kong. “Even though the likelihood of impeachment going through is low, the Chinese will think they hold some kind of advantage over the US, and Trump might tend to be more conciliatory given his domestic troubles,” said Lam. “He needs a triumph overseas to burnish his position.” President Xi Jinping also might want at least a temporary agreement to strengthen his own political position as China’s ruling Communist Party’s Central Committee heads into a key meeting in October. “Xi Jinping is anxious to have something to show the Central Committee members on the Sino-US front,” Lam said. It isn’t clear what Beijing might be willing to offer as a compromise. Lam said one possibility might be improved protection of foreign patents and copyrights, although Beijing in the past has resisted US demands to write such commitments into law. This week, Trump himself suggested that some sort of trade pact with China “could happen sooner than you think”, repeating his oft-stated assertion that Chinese leaders “want to make a deal very badly”. Congress is meantime considering whether to ratify one of the Trump administration’s signature achievements: a pact reached last year with Canada and Mexico to replace the 25-year-old North American Free Trade Agreement. Trump’s trade representative, Robert Lighthizer, has been trying to address congressional Democrats’ complaints. Those include criticism that the US-Mexico-Canada agreement wouldn’t sufficiently protect American workers who must compete with lowerwage Mexican laborers. Lighthizer is among the few Trump administration officials who enjoy good relations with House Democrats, and the two sides have stressed that they are working in good faith to address their differences over the agreement, known as the USMCA. “Lighthizer has worked long and hard to keep it out of the realm of conflict over the broader Trump agenda,” said Rufus Yerxa, president of the National Foreign Trade Council and a former US trade official. But the impeachment proceedings threaten to poison the atmosphere. Sen Chuck Grassley of Iowa, the Republican chairman of the Finance Committee, urged Democrats not to “use impeachment proceedings as a basis to not act on policy that will directly benefit Americans like the USMCA”. Daniel Ujczo, a trade lawyer at Dickinson Wright PLLC in Columbus, Ohio, suggested that heightened partisanship has probably torpedoed any hope of a grand bargain in which, say, the administration agrees to some gun-control measures in return for the Democrats approving the USMCA.
PAGE 10, Monday, September 30, 2019
US STOCKS FALL; S&P 500 ENDS WITH 2ND STRAIGHT WEEKLY LOSS By ALEX VEIGA Associated Press WALL Street capped a choppy week with a second straight weekly loss for the S&P 500 on Friday as worries about a potential escalation in the trade war between the US and China erased early gains. Technology companies led the broad slide as investors weighed a report saying the Trump administration is considering ways to limit US investments in China. Bloomberg cited unnamed people familiar with the administration’s internal discussions. Uncertainty over the long-running trade war has fueled volatility in the market and stoked worries that the impact of tariffs and other tactics employed by the countries against each other is hampering US economic and corporate profit growth. The possibility that the US is weighing another way of applying pressure on China dampened investors’ already cautious optimism that the world’s two biggest economies might make progress as their representatives resume negotiations next month. “Here we are, just two weeks out, and now we’re doing things to sort of ruffle feathers again,” said Randy Frederick, vice president of trading & derivatives at Charles Schwab. “That kind of spooked the market.” The S&P 500 index fell 15.83 points, or 0.5%, to 2,961.79. The benchmark index finished the week with a 1% loss. Even so, it remains 2.1% below its alltime high set in July. The Dow Jones Industrial Average dropped 70.87 points, or 0.3%, to 26,820.25. The Nasdaq, which is heavily weighted with technology stocks, lost 91.03 points, or 1.1%, to 7,939.63. Investors also shifted money out of smaller company stocks, which pulled the Russell 2000 index down 12.85 points, or 0.8%, to 1,520.48. Bond prices were little changed. The yield on the ten-year Treasury note held at 1.68%. The major US stock indexes were holding on to modest gains early Friday even after investors sized up mixed economic data on consumer spending and durable goods orders. The Commerce Department said that spending by US consumers rose just 0.1% in August, the smallest gain in six months, even as incomes increased at a solid pace. A separate report showed orders to US factories for big-ticket manufactured goods rose slightly in August, though a key sector that tracks business investment plans declined. The economic reports followed data on Thursday indicating that the US economy grew at a modest 2% annual rate in the second quarter, a sharply slower pace than earlier the year. The market mostly moved sideways as investors digested the economic data, but it gave up those modest gains by midday as traders learned the US is considering limiting US investments in China. Wall Street has been very sensitive to the ups and downs in the trade dispute. Stocks rose on Wednesday after President Donald Trump told reporters that China wants “to make a deal very badly”, adding that “it could happen sooner than you think”. That optimism faded from the markets on Friday as investors considered
the implications of the US weighing more tough measures only a couple of weeks away from new trade talks. “We go right back to the same old negotiating tactics,” Frederick said. “It’s negotiating with a stick, rather than a carrot.” Negotiators are due to meet next month in Washington for a 13th round of talks aimed at ending the dispute over trade and technology that threatens to tip the global economy into recession. Both sides have taken conciliatory steps this month ahead of the trade talks, moves that stoked optimism among investors. Chinese importers have set deals to buy American soybeans and pork. And the Trump administration postponed a planned Oct 1 tariff hike on Chinese imports to Oct 15. Technology stocks, which are particularly sensitive to swings in the trade conflict, accounted for much of the selling Friday. Microsoft slid 1.3% and Adobe dropped 2.2%. Micron Technology led the sector’s slide after the chipmaker issued a weak profit forecast and a sales warning, citing the trade war. The stock slumped 11.1%, the biggest decliner in the S&P 500. Communications stocks also took heavy losses. Twitter lost 2.6% and Activision Blizzard fell 3.5%. The market has been in a slump all week as investors pull back amid trade war worries, reports of sluggish economic growth and an impeachment inquiry into President Trump. The tech-heavy Nasdaq bore the brunt of the selling. It finished the week with a 2.2% loss. Smaller company stocks had a particularly rough week. The Russell 2000 ended the week down 2.5%. For some stocks, this week has been their worst of the year. Facebook is off 6.8% for the week after media reports suggesting the Department of Justice is considering opening an antitrust investigation into the social media company. Financial stocks bucked the broader market slide Friday, with Wells Fargo leading the way. The bank’s shares climbed 3.8% after it named its third CEO in as many years. Charles Scharf, currently CEO of Bank of New York Mellon, will take over from C. Allen Parker. The company has been involved in a series of scandals since 2016 with the uncovering of millions of fake checking accounts its employees opened to meet sales quotas. LATAM Airlines surged 31.1% after Delta Air Lines invested $1.9bn in the airline, which focuses on Latin American routes. The investment gives Delta a 20% stake in the company. Benchmark crude oil fell 50 cents to settle at $55.91 a barrel. Brent crude oil, the international standard, dropped 83 cents to close at $61.91 a barrel. Wholesale gasoline fell one penny to $1.65 per gallon. Heating oil declined two cents to $1.94 per gallon. Natural gas fell one cent to $2.40 per 1,000 cubic feet. Gold fell $8.80 to $1,499.10 per ounce, silver fell 26 cents to $17.55 per ounce and copper rose two cents to $2.58 per pound. The dollar was unchanged at 107.81 Japanese yen from Thursday. The euro strengthened to $1.0941 from $1.0928. Major stock indexes in Europe finished broadly higher.
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THE TRIBUNE
Monday, September 30, 2019, PAGE 11
GN-2306
JARIBU Hill speaks at the Mississippi Civil Rights Museum in Jackson, Miss, during a reception honouring the life of civil rights activist Unita Blackwell. Hill didn’t opt for law school until her early 40s. She’d been a singer, actress, teacher and labour organiser before learning a college classmate had become head of a group for black female judges. “I can do that, too,” she thought. Hill has since become a leading civil rights and workers’ rights lawyer in Mississippi and now, at 70, she’s part of a nationwide network of attorneys helping women without much money pursue oftencostly sexual misconduct cases. Photo: Meredith Williams/AP
LAWYERS FIGHT FOR EVERYDAY WOMEN BRINGING #METOO COMPLAINTS By DAVID CRARY Associated Press JARIBU Hill didn’t opt for law school until her early 40s. She’d been a singer, actress, teacher and labour organiser before learning a college classmate had become head of a group for black female judges. “I can do that, too,” she thought. Hill has since become a leading civil rights and workers’ rights lawyer in Mississippi and now, at 70, she’s part of a nationwide network of attorneys helping women without much money pursue often-costly sexual misconduct cases. “We’re looking for opportunities to lift up women who’ve never been lifted up,” Hill said. She is among 721 attorneys inspired by the #MeToo movement who have signed up with the Times Up Legal Defense Fund since it launched last year. While the movement burst into the spotlight in October 2017 with celebrities and others accusing powerful men of sexual misconduct, the fund is reaching everyday working women who otherwise wouldn’t be able to afford to take their complaints to court. The Times Up fund, administered by the National Women’s Law Center, has received more than 3,670 requests for assistance and has funded 160 cases thanks to $24m in donations. The lawyers in its network hail from big law firms and small practices in 45 states. One is a Harvard Law School graduate who has represented truck drivers and laundry workers. Another is a Washington, DC, attorney whose approach to discrimination cases evolved after losing his vision a decade ago. The law center’s president, Fatima Goss Graves, praised their commitment. “Workers who experience sexual harassment and retaliation across all industries now know there are attorneys who have their back,” she said. • Hill was the first lawyer in Mississippi to receive support from the Times Up fund. The money helped her with a lawsuit from a black woman in her mid-50s who says she was sexually harassed by a co-worker at a regional bus line, then fired after complaining to her superiors. Hill said the case will go to trial in February unless the bus company offers a “meaningful settlement”. The plaintiff, Sandra Norman, “has always been a victim of the system,” Hill said. “But we should never assume just because someone’s been beaten down, they don’t have the courage to tell their story.” Hill grew up in Ohio and chose the City University of New York for law school before founding the Mississippi Worker’s Center for Human Rights to advocate for low-wage workers. The fund has enabled Hill to recruit investigators and law students to help her. “We’re telling young lawyers: ‘If you’re brave enough and skilled enough to take these cases, there’s help out there,’” she said. • Based in Washington, David Shaffer has challenged several federal law enforcement agencies — including the Secret Service — in civil rights class-action lawsuits from employees. With help from the Time’s
Up fund, he’s working on perhaps his highest-profile case: representing 16 female FBI recruits who allege gender discrimination. They sued in May over sexual harassment and unfair performance evaluations. The case will extend into next year — perhaps longer — and Shaffer isn’t sure whether the FBI would consider a settlement. Shaffer, 61, has considered himself a strong civil-rights advocate throughout his career, but his perspective evolved as he lost his vision over a two-year period starting when he was 49. “That provided me a lot more insight into the world of people with disabilities,” he said. “I realised how much of the world was inaccessible to the blind and was in position to do something about it.” He now juggles his practice with a job at Washington’s public transit agency, where he tries to make the metro system more accessible to visionimpaired riders. Shaffer also is trying to mentor young blind lawyers and law students. His message to them: “You can do it.” • Childhood memories of inequality stuck with Kathryn Youker as she started representing victims of racial and gender discrimination. As a white child in the majority Hispanic city of Harlingen, Texas, “I saw inequality in a very stark and racist way,” she said. “I always questioned why I had opportunities available to me that my classmates and friends didn’t have.” Now based in Brownsville — a twin city of Harlingen on the Mexican border — Youker, 44, coordinates labor and employment cases for Texas RioGrande Legal Aid, which provides free services to thousands of low-income residents and migrant workers. Many of her cases have involved workplace sexual harassment. One of her clients, Carmen Garza, won about a year’s pay in a March settlement after suing her employers for failing to protect her from sexual harassment while working as home care aide. Youker is coordinating a Times Up grant to help Texas RioGrande expand community outreach on sexual harassment. “We’re talking about how it’s happening here — in restaurants, in private homes,” she said. “It’s a very intimate discussion.” • Philadelphia attorney Robert Vance, who has specialised in employment discrimination cases for four decades, says the fund is allowing him to help harassment victims who never could have paid legal bills on their own. Vance represented Malin DeVoue, an African American woman who was fired as head cook at a Philadelphia hotel after complaining to managers that the hotel’s chief engineer was sexually harassing her. The case was settled in June. The amount DeVoue received hasn’t been made public, but Vance said she is happy with the money and relieved to avoid a trial. “Sexual harassment cases are difficult to do, because clients often have been fired and have no financial resources,” Vance said. “The fund is wonderful because you can devote as much time as the case requires.”
PAGE 12, Monday, September 30, 2019
THE TRIBUNE
CHINA TO SEND ITS TOP TRADE NEGOTIATOR TO US FOR TALKS
BEIJING Associated Press
CHINA’S top trade negotiator will lead an upcoming 13th round of talks aimed at resolving a trade war with the United States, a senior Chinese official said yesterday. Vice Premier Liu He will travel to Washington for the negotiations, Vice Commerce Minister Wang Shouwen said. He didn’t specify exact dates, but said the talks would be after China’s National Day holiday, which runs through Oct 7. “The two sides should
find a solution through equal dialogue in accordance with the principle of mutual respect, equality and mutual benefit,” Wang said at a news conference with other officials, including Commerce Minister Zhong Shan. The Trump administration first imposed tariffs on Chinese imports last year in a bid to win concessions from China, which responded with tit-for-tat tariffs. The escalating dispute between the world’s two largest economies has depressed stock prices and poses a threat to the global economy. Both sides have made
CHINESE Commerce Minister Zhong Shan speaks during a press conference on the sidelines of the upcoming 70th anniversary of the Founding of the People’s Republic of China in Beijing yesterday. Photo: Ng Han Guan/AP
conciliatory gestures ahead of the next round of talks, but a deal remains elusive. The US postponed a further tariff hike on Chinese goods, and China lifted punitive duties on soybeans. The move helps both American farmers and Chinese pig breeders, who use soy as feed and are struggling with a devastating outbreak of African swine fever. The Chinese government released a third round of 10,000 tons of pork from its reserves Sunday in an attempt to stabilise rising prices ahead of the holiday, Vice Commerce Minister Qian Keming said at the
news conference. China also has increased pork imports 40 percent in the first eight months of this year, as well as those of other meats. Keming said the average wholesale price of pork had edged down slightly during the week of Sept 16-22 to 36.4 yuan ($5.11) per kilogram.
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THE TRIBUNE
Monday, September 30, 2019, PAGE 13
Housing woes push into 2020 debate from Nevada and beyond LAS VEGAS Associated Press LIKE many, Mario Wolthers was lured to Las Vegas a decade ago from California by cheaper housing costs. But when his apartment managers tried to raise his rent last spring, he moved in with a roommate. “I’m a responsible taxpaying citizen,” said Wolthers, a 38-year-old elementary school teacher and Democrat. “I help a lot of kids out. I should at least be able to rent an apartment on my own or even afford a home.” As the Democratic presidential candidates hustle for votes in Nevada, the third state on the 2020 voting calendar, they have been trying to answer Wolthers’ complaint. The contenders are cranking out housing plans, meeting with advocates and pledging to help bring down prices. Their proposals have not dominated the campaign in the way that health care or immigration has. Still, they represent the seeds of a political debate likely to grow as high rents and home prices spread from expensive cities such as Los Angeles and New York to once-affordable pockets like Las Vegas and Reno. “It’s affecting the overwhelming majority of the population here,” said Aria Overli of the housing-focused activist group Actionn, in Reno. Overli said she has lost track of the number of presidential campaigns she’s talked with about real estate costs. It’s not just Nevada. Houses cost more than five times the typical household income — meaning they’re probably out of reach of most families — in one-seventh of the metro areas in the United States, according to Harvard’s Joint Center for Housing Studies. Rents are rising at twice the rate of inflation nationally. On the West Coast, soaring rents and home prices have helped trigger a new wave of homelessness and a debate over solutions. President Donald Trump has used the crisis to criticise Democratic leadership in California. He’s suggested it may require federal intervention. Democratic candidates have their own ideas. Vermont Sen. Bernie Sanders recently came out with a plan in Las Vegas to spend $2.5tn over the next decade to improve public housing, combat homelessness and establish national rent control. Mayor Pete Buttigieg of South Bend, Indiana, who has proposed letting families “homestead” on abandoned land in cities, toured Reno with Actionn on Saturday to discuss housing. Sen Elizabeth Warren of Massachusetts released a plan in March to spend $500bn over ten years to
build housing units. California Sen Kamala Harris is proposing a tax credit for families spending more than 30 percent on rent. New Jersey Sen Cory Booker also backs a renters’ tax credit. Julian Castro, housing secretary in the Obama administration, and Minnesota Sen Amy Klobuchar are among those proposing more money for federal housing vouchers. Several candidates want to push local governments to streamline restrictive zoning laws that prevent the construction of units. Former Vice President Joe Biden has not released a plan. The factors driving higher prices are varied. In northern Nevada, Reno is a growing technology hub and a refuge for Californians fleeing that state’s high cost of living. Rents have increased by 35% in the past two years. A recent study ranked Reno’s county as the 66th least affordable in the nation, closing in on the tier that features notoriously expensive places such as San Francisco and Brooklyn, New York. Las Vegas, once known as a place where people priced out of the American dream elsewhere could afford a house, is statistically more affordable than Reno. But it is seeing a spike in real estate prices as new residents have moved in. Home prices rose more than twice as quickly as wages in the past year, sharper than the national increase. The city has among the highest rate of renters in the country, on par with New York City and San Francisco. That’s a sign that people cannot afford a first home, according to Jed Kolko, chief economist at the jobs site Indeed. “Las Vegas had always been seen as a transient city but as we’ve grown and we’ve become more established, we have families staying here,” said Lalo Montoya of the activist group Make the Road Nevada. Montoya moved to Las Vegas in 2016 from Denver, fleeing another onceaffordable city that had become too expensive. He just found a new apartment after hunting around climbing rents and high move-in fees. “We’re all just one emergency away, a lot of us,” he said. “If it’s hard for me and that I have a stable job, then I can’t imagine how it must be for other hardworking folks.” Nevada Democrats, who won control of the Legislature in November, passed laws to restrict late fees and offer tax credits for builders of low-income housing. Housing proposals may play well in a Democratic primary. The party’s base of younger people, minorities and urban dwellers cares about housing and bears the brunt of the problem.
Legal Notice
NOTICE BSTEIN LEGACY LTD. (in Voluntary Liquidation) Notice is hereby given that the above-named Company is in dissolution, commencing on the 30th day of September, 2019. Articles of Dissolution have been duly registered by the Registrar. The Liquidator is Lynden D. Maycock, P. O. Box EE-15953, Nassau, Bahamas. All person having claims against the above-named Company are required on or before the 30th day of October, 2019 to send their names and addresses and particulars of their debts or claims to the Liquidator of the Company or, in default thereof, they may be excluded from the benefit or any distribution made before such debts are proved. Dated this 30th day of September, 2019. Lynden Maycock Liquidator
PAGE 14, Monday, September 30, 2019
THE TRIBUNE
UK’s Johnson denies any wrongdoing in ties with US tech exec LONDON Associated Press BRITISH Prime Minister Boris Johnson denied wrongdoing yesterday over his links to an American businesswoman who allegedly received money and favorable treatment because of their friendship during his time as mayor of London. Asked during a BBC interview about his ties to tech entrepreneur and model Jennifer Arcuri, Johnson sought to suggest that political motivations were behind the decision Friday by the Greater London Authority to refer a conduct matter to a police watchdog agency. The matter arose from a Sunday Times report saying Arcuri was given 126,000 pounds in public money and privileged access to trade missions to the United States, Israel and Asia that Johnson led as mayor, even though her fledgling business had not yet met eligibility requirements for such trips. “Everything was done in accordance with the code ... and everything was done with full propriety,” Johnson said yesterday. When pressed again by BBC journalist Andrew Marr, Johnson added: “There was no interest to declare.” The scandal worsened yesterday as Johnson’s Conservative Party was opening its annual party
MARKET REPORT www.bisxbahamas.com
(242) 323-2330
FRIDAY, 27 SEPTEMBER 2019
INTENT TO CHANGE NAME BY DEED POLL
BISX LISTED & TRADED SECURITIES 52WK LOW 3.50 19.17 4.90 4.46 1.01 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 4.00 7.20 3.49 3.19 10.74 7.00 16.50 9.27 3.47 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 3.34 3.19 10.79 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 0.00 0.00 -0.15 0.00 0.05 0.00 0.00 0.00 0.00 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
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 32.7 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% 12.99% 1.88% 3.04% 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
conference in Manchester following a tumultuous week for a leader who has only been in the job since July. In just the last few days, the UK Supreme Court declared Johnson’s attempt to suspend Parliament illegal and he cut short a trip to the United States, racing home to face the House of Commons, where lawmakers greeted him with cries of “Resign!” He then lost a vote on a normally routine matter — a request to adjourn for a week so that Conservatives could attend their conference. Complicating things further, questions were raised about the 55-year-old Johnson’s links to Arcuri, now 34, who set up a cyber firm in East London after moving to the capital seven years ago. Yet even as the British leader visited North Manchester General Hospital yesterday to talk about his government’s plans to build 40 hospitals, his efforts failed to change the subject.
PUBLIC NOTICE
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ALL SHARE INDEX: CLOSE: 2,171.36 | CHG: -0.09 | %CHG: 0.00 | YTD: 61.91 | YTD%: 2.93 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
BRITAIN’s Prime Minister Boris Johnson looks on during a visit to North Manchester General Hospital before the Conservative Conference, in Manchester, England yesterday. Johnson has urged calm as tempers flare in the debate over Britain’s departure from the European Union, even though tempers are flaring over what he said. A defiant Johnson told the BBC yesterday that the “best thing for the country and for people’s overall psychological health would be to get Brexit done”. PHOTO: Andy Stenning/Pool Photo via AP
“Let’s be absolutely clear, I am very, very proud of everything that we did and certainly everything that I did as mayor of London,” he said, adding that the current London mayor, Sadiq Khan of the Labour Party, “could possibly spend more time investing in police officers than he is investing in press officers and peddling this kind of stuff.” The independent office, which oversees police complaints in England, was asked to consider if there were grounds to investigate Johnson for misconduct in public office. The authority said on Friday it had a “statutory duty” to record the matter because Johnson served as police commissioner during his 2008-2016 tenure as London’s mayor. The probe is the latest sign of animosity that has consumed British politics since the country narrowly voted in 2016 to leave the European Union. Three years later, Britain and its politicians remain bitterly divided over how, or even whether, to leave the 28-nation bloc. Johnson took power two months ago with a “do-ordie” promise that Britain will leave the EU on the scheduled date of Oct 31 — even if there’s no divorce deal outlining Britain’s commercial relations with the other 27 EU nations. His foes in Parliament are determined to avoid a nodeal exit, which economists say would plunge Britain into recession. In unusually heated debate Wednesday, Johnson referred to an opposition law ordering a Brexit delay as the “Surrender Act” and said postponing the country’s departure would “betray” the people. He also brushed off concerns that his forceful language might endanger legislators as “humbug.” Opponents accused him of fomenting hatred in the country with his populist, people-versus-politicians rhetoric. As tempers smoldered, Johnson rejected the notion that he himself had played a role in whipping up tensions. “I think I’ve been a model of restraint,” Johnson said yesterday. “But I think everybody should calm down.”
The Public is hereby advised that I, WAYNIKA ADDERLEY of Sutton Street, Kemp Road 24c, P.O. N-10582, New Providence, Bahamas intend to change my name to WAYNIKA MCPHEE. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, New Providence, Bahamas no later than thirty (30) days after the date of publication of this notice.
NOTICE
NOTICE is hereby given that YCIANIE PIERRELOUIS PETIT-DE of Central Pines, P.O. Box General Delivery, Abaco, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 23th day of September, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas. LEGAL NOTICE
NOTICE LEAF PROPERTY CORP.
Pursuant to the provision of Section 138(8) of the International Business Companies Act, 2000 (Chapter 309). Notice is hereby given that the above-named company has been dissolved and struck off the Register of Companies and a Certificate of Dissolution has been issued by the Registrar General on 17th September 2019.
Brittany Investment Company Limited Liquidator TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | COLONIAL 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333
THE TRIBUNE
Monday, September 30, 2019, PAGE 15
Federal board files plan to reduce Puerto Rico debt by 60% SAN JUAN Associated Press A FEDERAL control board that oversees Puerto Rico’s finances filed in court on Friday a long-awaited plan that it says would reduce the US territory’s debt by more than 60 percent and pull the island out of bankruptcy. The plan comes three years after the US Congress created the board and would reduce $35bn in liabilities to $12bn, a move that some believe would help ease Puerto Rico’s financial crisis amid a 13-year recession, pave the way to the board’s departure and allow Puerto Rico to regain fiscal autonomy. “Today we have taken a big step to put bankruptcy behind us,” said board chairman José Carrión. “Three years after Congress passed PROMESA and two years after the most severe hurricane in more than 100 years hit Puerto Rico, after more than a decade of economic decline and fiscal disarray, after tens of thousands of Puerto Ricans left their island to find prosperity elsewhere, we have now reached a turning point.” Puerto Rico was dragging more than $70bn in public debt after decades of mismanagement, corruption and excessive borrowing to balance budgets. In June 2015, the government declared the debt unpayable, and in May 2017, Puerto Rico filed for the biggest US municipal bankruptcy in history. Since then, deals totaling more than $23bn have been
reached with creditors holding bonds issued by certain Puerto Rico government agencies. The newest plan targets general obligation bonds and other debt held by the government, and it still has to be approved by a federal judge overseeing a bankruptcy-like process as Puerto Rico still struggles to recover from Hurricane Maria. The island’s infrastructure remains weak as evidenced by Puerto Rico’s Electric Power Authority announcement late Thursday about selective power cuts given high demand and an overwhelmed power grid that has left tens of thousands without power overnight. In addition, the fiscal crisis has crippled Puerto Rico’s ability to recover from the Category 4 storm that hit in September 2017 because it cannot borrow money since it doesn’t have access to capital markets, officials said. Board members met on Friday to talk about the plan’s details, noting that while they expect creditors to fight back, the restructuring is needed. Natalie Jaresko, the board’s executive director, said Puerto Rico’s bankruptcy is larger than that of General Motors in 2009 as she praised the aim to reduce the island’s debt by 60%. “Those are huge numbers,” she said. “It’s a very important day for Puerto Rico.” However, Carrión acknowledged that the plan itself would not lift Puerto Rico’s economy or spur economic development.
“It’s not a panacea,” he said, adding, “Nothing can happen unless we get out of bankruptcy.” If approved, the debt restructuring plan would reduce Puerto Rico’s annual debt service to under 9%, down from almost 30% prior to Congress approving a financial package that led to the creation of the board. The plan also would restructure general obligation bonds and others issued in previous years by Puerto Rico’s government, with creditors who hold bonds issued after 2011 facing bigger cuts since that debt has been challenged as unconstitutional. In addition, the plan would impose an 8.5% in pension cuts for retirees that receive more than $1,200 a month, a move that Puerto Rico’s government has opposed. Puerto Rico’s public pension system currently faces more than $50bn in unfunded pension benefits. The island’s previous governor, who resigned in August amid political turmoil, vehemently opposed pension cuts. However, the new governor, Wanda Vázquez, said in a televised address on Friday that she supports the plan in part because it will help guarantee the continuation of government services and warned retirees would face deeper cuts if it’s not approved. Vázquez said she’s convinced the plan is the best option, adding, “We cannot remain stuck in bankruptcy for much longer.”