TUESDAY, OCTOBER 4, 2016
business@tribunemedia.net
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Bran demands Baha Mar ‘sale’ tax answer By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
The Democratic National Alliance’s (DNA) leader yesterday demanded that the Government disclose whether the Treasury will receive nine-figure Stamp Duty payments from Baha Mar’s ‘two sales’, as he branded the Supreme Court’s rationale for sealing the deal “a cop out”. Branville McCartney told Tribune Business that a 10 per cent Stamp Duty/VAT levy on Baha Mar’s sale, which is effectively a real estate transaction, would generate a much-needed boost when set against the
DNA chief challenges Govt on ‘nine-figure’ sum Wants same deal if Stamp/VAT waived Brands judge’s seal reasoning as ‘cop out’ Branville McCartney Bahamas’ total $7.64 billion public debt. He added that enforcing the 10 per cent tax would
demonstrate the Government’s commitment to reducing a public sector debt equivalent to 90 per cent of
GDP. However, several Tribune Business sources familiar with the Baha Mar situation, speaking on condition of anonymity, told this newspaper that the Government is likely to waive the payment of Stamp Duty/ Value-Added Tax (VAT), or offer a concessionary rate, as part of the agreement to complete and open the project. As a result, Mr McCartney challenged the Christie administration to give him the same ‘tax exemption’ deal on property he is currently selling if such incentives are being granted to the Chinese. See pg b4
SPV, $45m bonds Super Value sees in next CLICO 80% business rise resolution phase through Matthew By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Government yesterday unveiled the next steps in bringing resolution for CLICO (Bahamas) longsuffering policyholders, which include the creation of a new insurance vehicle and $45 million bond issue. The Christie administration, in a statement, confirmed that a special purpose vehicle (SPV) to be called Coral Insurance Company is being formed to hold CLICO (Bahamas) insurance policies that remain in effect. The SPV, which will be licensed and regulated by the Insurance Commission of the Bahamas (ICB), will be set up by the second week of November and hold the remaining insurance portfolio until it is purchased by another insurer. However, it appears that the taxpayer has some exposure to Coral Insurance, as the Government has agreed to provide “capital support” to cover the ‘gap’ between its assets and policy liabilities. Coral Insurance’s creation will trigger the second phase in the Government’s plan, which is its issuance of $45 million worth of bonds to help compensate CLICO (Bahamas) former Executive Flexible Premium Annuity (EFPA) holders and those who surrendered their pension policies. The bond issue, as previously revealed by Tribune
New ‘insurer’ to be licensed by mid-November Then to issue bonds for creditor/ client payouts Govt admits late in delivering Business, will be handled by Leno Corporate Services. The bonds will be issued in exchange for, and replace, the pledges issued to former CLICO (Bahamas) clients owed more than $10,000, and who received their first cash payments in February 2016. That collective payment totalled some $13.1 million. Paul Moss, an attorney representing several persons who were caught up in CLICO (Bahamas) February 2009 collapse into insolvency, said yesterday he was “hopeful” that the Government would finally deliver on its promised resolution. He added, though, that since it was more than seven years since the insurer fell into court-supervised liquidation, he would adopt a “wait and see” attitude. “I think in this whole process one would have to wait and see whether anything actually takes place,” See pg b5
By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
Super Value’s owner yesterday said he had seen an estimated 80 per cent spike in business over the weekend, as Bahamians stocked up on food and water ahead of Hurricane Matthew. “It was a rush like Christmas. People started shopping on Friday afternoon,” Rupert Roberts told Tribune Business. “There was a heavy rush on Saturday and Sunday. I expect the same until today. “Our store in Winton was temporarily out of water. We had to send a few hundred cases out of the warehouse until the local suppliers got there. Due to Hurricane Joaquin last year and the intensity of
Rupert Roberts
this storm, I think the public is taking it seriously.” Mr Roberts added: “Fortunately we have had five days’ warning, and it’s not caused panic shopping; it’s been spread out, so that we can handle it better allowing us to restock every night. See pg b3
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Insurers facing ‘perfect storm’ with Matthew By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Bahamian insurers were last night facing “the perfect storm” in Hurricane Matthew, having rated the chances of a ‘direct hit’ on New Providence and other major population centres at “50/50” prior to its latest forecast track. Anton Saunders, RoyalStar Assurance’s managing director, told See pg b4
Rate chances of direct Nassau hit at ‘50/50’ Predict loss equivalent to 3-5% of total sums insured ‘Never seen’ all islands hit as projected
‘Catastrophic’ hit if storm strikes Nassau By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Bahamian economy could suffer “catastrophic” consequences if Hurricane Matthew scores a direct hit on Nassau, the Chamber’s chief executive yesterday warning this nation “cannot take” another Joaquin-style hit. Edison Sumner told Tribune Business that if Nassau “goes down” as a result of Matthew, which is forecast to remain a major hurricane as it moves through the Bahamas, then “the entire country will suffer” because of it. This, he explained, would occur because Nassau is both “the centre of government” and commercial activities for the Bahamas, in the past serving as a hub for relief efforts to assist Family Islands hard-hit by past hurricanes. Should New Providence suffer a direct strike from what are projected to be See pg b5
Bahamas ‘can’t take’ another Joaquin-type impact ‘Entire nation will suffer’ if capital directly impacted Chamber chief ‘implores’ businesses to prepare
Edison Sumner