TuesDAY, OCTOBER 11, 2016
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Storm sparks new downgrade fears By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Dionisio DâAguilar
The multi-million dollar damages inflicted by Hurricane Matthew have again exposed the Bahamas to the âextremely frighteningâ prospect of a âjunkâ credit rating downgrade, a wellknown businessman feared yesterday. Dionisio DâAguilar, Superwashâs president, told See pg b4
Businessman: Prospect âextremely frighteningâ Concern total economic loss is $1bn-plus blow Bahamas moves from âfiscal headroom to survivalâ
Gowon Bowe
Matthew payouts Chamber chief urges to âabsolutelyâ be storm insurance fund nine-figure sum Creation would By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Total Hurricane Matthew insurance payouts will âabsolutelyâ total a ninefigure sum, a leading businessman yesterday saying âthe only questionâ is how big the first digit will be. Sir Franklyn Wilson, RoyalStar Assuranceâs chairman, told Tribune Business that collective insured losses in the Bahamas would almost certainly exceed $200 million. âI think weâre talking about a lot,â he replied, when asked about the likely level of Matthew-related claims, adding that the total would âabsolutelyâ be in the hundreds of millions of dollars. âThe only question is the first figure in the nine,â Sir Franklyn continued. âIâm sure that figure, for the industry, will exceed â2â. Is it $300 million, $400 million? âIâm almost positive itâs a nine-figure sum and itâs more than $200 million. Is it $300 million, $400 million, $500 million?â Anton Saunders, RoyalStarâs managing director, was more circumspect about estimated insured losses and payouts, describing Matthew as âa very difficult storm to put a figure on at this timeâ. He did, though, agree with his Bahamas First counterpart, Patrick Ward, who told The Tribune on Monday that Hurricane Matthew was likely to produce the largest collective insured loss/payout in Bahamian history. âIt definitely will be,â Anton Saunders told Trib-
Sir Franklyn estimates insured losses over $200m âOnly question is size of âfirst figure in the nineâ Insurer concern over VAT reimbursement âtimingâ
Sir Franklyn Wilson une Business. âI donât think heâs [Mr Ward] going to be far off. âNot since 1929 have we had a hurricane that hit Nassau and Freeport, the two most populated areas and ones that are built up the most.â Although Freeport, in its present form, did not come into being for several more decades, the insurance industry losses will be exacerbated by both Matthewâs path and its strength. See pg b4
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The Chamberâs chairman yesterday said Hurricane Matthewâs devastation has strengthened his call for the Bahamas to establish its own storm insurance fund to guard against natural disasters. Gowon Bowe told Tribune Business that it âshould be common senseâ for the Bahamas to take measures to safeguard its financial security, given the increasing severity of hurricanes and the frequency with which they impacted islands in this nation. He added that the Government needed to set aside a portion of its annual Budget spending every year to create, and invest in, such a fund, which could then ease the financial burden of infrastructure repairs and disaster relief. Noting that he first mentioned the idea after Hurricane Joaquin struck the southern Bahamas last year, creating $100 million worth of damage, Mr Bowe said governments needed
be proactive âcommon senseâ
Matthew exposes âweak linkâ in fuel supply chain Two Superwash sites run out of water from demand to be âas wiseâ as those nations living on earthquake fault-lines. âWe should not be seeking to address a threat or development every time it happens,â he told Tribune Business. âWe should be saying to ourselves that the probability of being hit every year is greater than zero, and we should be establishing that fund to assist. âEvery year we set monies aside. If the fund grows and we do not use it, we can look at self-insurance and investing it.â Prime Minister Perry See pg b5
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BISX-listed firmâs $5m ârecapitaliseâ after SEC settles By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A BISX-listed company will have to undergo a $5 million ârecapitalisationâ as a result of the deal struck by its principal and main subsidiary to settle a lawsuit against them by US federal regulators. The court-approved settlement that Julian Brown, Benchmark (Bahamas) president and chief executive, and Alliance Investment Management, have reached with the Securities & Exchange Commission (SEC) requires them to repurchase the companyâs entire $5 million preference share capital. Those preference shares are currently in the custody of receivers/liquidators for BC Capital Group, which operated a $400 million international âPonziâ fraud that Mr Brown and Alliance were accused of aiding and abetting. See pg b5
Benchmark/Alliance must reacquire $5m prefs Must be replaced to keep company in ânet worthâ Broker to pay $337k fine, principal $50k penalty
Julian Brown
DNA chief wants anti-price gouge laws âwith teethâ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Democratic National Allianceâs (DNA) leader yesterday urged the Government to enact antiprice gouging laws âwith teethâ to protect Bahamian against unscrupulous merchants in Hurricane Matthewâs wake. Branville McCartney told Tribune Business he had heard of some businesses charging âthree timesââ the normal price for essential supplies post-Matthew, although he did not name the companies or products
Chamber chief urges firms to uphold âintegrityâ Calls for âout of the boxâ storm relief thinking Govt âsuper collaborativeâ to this point involved. âThe Government has to be very cognisant of price See pg b5