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Grand Lucayan managers facing $2m payout divide China won’t DIONISIO D’AGUILAR

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

HE Grand Lucayan and its management union are $2m apart on the value of voluntary separation packages, with the latter’s attorney yesterday arguing such payouts are not covered by law. Obie Ferguson, pictured, who is acting for the Bahamas Hotel Managerial Association (BHMA) in its negotiations with the hotel’s government-appointed Board, said different legal interpretations may have contributed to the divide between the two sides over how much is due to middle management staff wishing to exit. The Trades Union Congress (TUC) president told Tribune Business that

* Seeking $5m, resort proposing $3m * TUC chief: ‘Unfair’ to brand offer ‘extravagant’ * ‘No provision’ in law for voluntary pay-offs the Grand Lucayan Board appeared to have based its financial calculations on the Employment Act, but he argued that “there’s no provision” in this or any other statute law that governs voluntary separation payouts. Nor are they included in any Bahamian trade union’s industrial agreement, with Mr Ferguson suggesting that Bahamas Power & Light (BPL) had recently established the model for such packages - namely that they must be agreed by both employer and union following negotiations. He revealed that the BHMA had calculated the total payout due to the 90

of its 115 members wishing to leave at “about $5m”, whereas the Grand Lucayan Board’s offer was “just about $3m”. These figures suggest that 78 percent, or around four out of every five existing middle management staff, wish to leave the Grand Lucayan. And Tribune Business understands that the payout “divide” between the resort and BHMA may be greater than that indicated by Mr Ferguson, with the union seeking double or 100 percent more than the Board believes is due. Michael Scott, the board’s chairman, declined to comment further yesterday.

But this newspaper further understands that a similar “gap” exists between the Government-owned resort and the Commonwealth Union of Hotel Services and Allied Workers (CUHSAW) over the payout due to the 100-150 Grand Lucayan line staff it represents and also wish to depart. It was suggested to Tribune Business that, collectively, the two unions are seeking double, and perhaps triple, what the Grand Lucayan Board believes is owed, setting the stage for a potential stand-off that could undermine the Government’s goal of achieving a quick sale of Freeport’s last mega resort property. But Mr Ferguson, who said it was “unfair” for Mr Scott to brand the unions’ calculations as

THE US government’s call for greater scrutiny of The Bahamas will not have any “immediate or significant fallout” for this nation’s key banking relationships, a senior banker said yesterday. Gowon Bowe, the Clearing Bank Association’s (CBA) chairman, told Tribune Business that the US Treasury Department’s warning was unlikely to impact the established correspondent banking relationships that Bahamian

* Bank chair: ‘No major’ correspondent fall-out * But Central Bank taking no chances * Nation urged: ‘Focus on 2021 standard’ commercial banks enjoy with their American counterparts because these are already subject to heightened due diligence. He then called on The Bahamas to focus on what anti-money laundering standards will be “in the future”, rather than in the present, as the best means for it to escape being constantly ambushed when

Bahamas’ 130th internet speeds placement not ‘best measure’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas’ ranking as the world’s 130th most expensive country for broadband internet is not a “a fair measurement” of its affordability, a technology entrepreneur argued yesterday. Dr Donovan Moxey, who chaired the governmentappointed Grand Bahama Technology Hub Steering Committee, told Tribune Business that broadband internet costs as a percentage of per capita income was a much better indicator

of how affordable this product is for a country’s citizens. He spoke out after Cable. co.uk, an internet site that compares broadband, TV, mobile and energy providers’ performance, unveiled its “Worldwide Broadband Price Comparison” survey that placed The Bahamas 130th out of 195 nations based on average monthly broadband costs. That represented an improvement of six places compared to The Bahamas’ 136th ranking in 2017, with this nation’s average

SEE PAGE 8

Minister: ‘Don’t pull punches’ on NHI fears By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net HEALTHCARE industry stakeholders were yesterday told by a Cabinet minister not to “pull any punches” by holding back on concerns over the revised National Health Insurance (NHI) model. Dr Duane Sands, pictured, minister of health, said the proposal was no “fait accompli”, and that constructive criticism of the proposal recently released by the National Health Insurance Authority (NHI)

was welcome to make the scheme’s design better. “The prime minister and the Cabinet have made it very clear that we are inviting the opinions of all

SEE PAGE 2

GOWON BOWE

international standard-setting bodies change the rules. The CBA chairman spoke out after the US Treasury’s Financial Crimes Enforcement Network (FinCEN), in an October 31, 2018, advisory, warned American financial institutions to apply greater scrutiny and due diligence to commercial relationships and transactions involving The Bahamas

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

where necessary. The US warning, similar in nature to that issued earlier by the UK Treasury, was issued in response to the Financial Action Task Force’s (FATF) listing of The Bahamas among 11 nations with “structural deficiencies” in their anti-money laundering/counter terror financing (AML/CFT) regimes that may pose a threat to the global financial system’s integrity. “The Bahamas, Botswana and Ghana have been added to the [FATF’s

THE Bahamas “cannot ignore” China’s fast-growing tourism market even though the US will “always be our bread and butter”, the Minister of Tourism argued yesterday. Dionisio D’Aguilar, who has just returned from leading a joint industrygovernment delegation to Beijing and Shanghai, told Tribune Business that The Bahamas will “have to allocate more marketing resources” and establish a more consistent on-ground presence if it is to make deeper inroads into the Chinese market. Revealing that the Ministry of Tourism has already acted on the latter issue by hiring a Chinese travel agency to represent The Bahamas, Mr D’Aguilar said this nation had to “pay some mind” to the world’s largest economy even though it currently supplies just 3,000 stopover visitors per year. While distance, language and airlift obstacles all have to be overcome, he added that the Ministry of Tourism was focused on marketing The Bahamas as an “add-on” destination for Chinese visitors to major North American cities

SEE PAGE 4

SEE PAGE 3

US warns its banks on Bahamas dealings By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

replace our ‘bread and butter’

PAGE 2, Wednesday, November 7, 2018

THE TRIBUNE

Tourism sector targets Chinese travel market THE Ministry of Tourism and Aviation (BMOTA) teamed with executives from Atlantis, Baha Mar, The Pointe and Majestic Tours to expose The Bahamas to the Chinese tourism market. Dionisio D’Aguilar, minister of tourism and aviation, led the combined public-private sector delegation on a tour of media outlets and tour operators in Beijing and Shanghai, in a bid to drive home the message that “The Bahamas is a viable destination for

Chinese tourists”. “This is the ideal time for The Bahamas to capitalise on promotional marketing efforts as Chinese tourists are searching for new and exciting destinations to visit,” said the Ministry of Tourism’s deputy directorgeneral, Ellison Thompson. In less than two decades, China has become the world’s most powerful outbound travel market, surpassing the US. According to the United Nations’ World Travel Organisation (UNTWO), in 2016 Chinese tourists

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spent more than $261.1bn in travel - and that number is expected to grow rapidly over the next few years. “Chinese tourists are critical players in the global tourism arena, and our presence here is just one of many efforts to offer and further promote the multiple and diverse islands of The Bahamas to this important group of travellers and, simultaneously, work with China’s local media and travel influencers in ensuring that our message is resonated loud and clear to their audiences,” said Joy Jibrilu, the Ministry of Tourism’s director-general. The Bahamian group’s visit comes as American Airlines is also expected to launch heavily discounted airline tickets for Chinese citizens travelling to The Bahamas via the US. Tourism executives who joined the Ministry of Tourism on the China expedition included Wendy Blaney, senior vice-president of sales for Atlantis; Russell Miller, senior vicepresident and general manager with responsibility for the Cove and Reef properties; Robert Sands, senior vice-president of

FROM left: Ellison Thompson, Ministry of Tourism’s deputy director-general; Paul Strachan, Ministry of Tourism’s senior director for Canada and China; Ana Lidia Cerna, international marketing manager, Baha Mar; B.J. Saunders, director, Majestic Tours; Russell Miller, senior vice-president and general manager with responsibility for the Cove and Reef properties; Wendy Blaney, senior vicepresident of sales for Atlantis; Dionisio D’Aguilar, minister of tourism and aviation; Darren A Henfield, minister of foreign affairs; Joy Jibrilu, director-general of tourism; Sterling Quant, Bahamian Ambassador to China; Robert Sands, senior vice-president of administration and external relations for Baha Mar. administration and external relations for Baha Mar; Karin Salinas, vice-president of marketing for Baha Mar; Daniel Lu, president of The Pointe; and BJ Saunders of Majestic Tours. “Traveling great distances to promote The Bahamas is no easy task, but it speaks volumes that our local partners are here and recognise the importance of missions such as these to our domestic tourism product,” said Mrs Jibrilu. “This is only the beginning of a truly remarkable partnership between The Bahamas and China, and we are so excited about the endless future opportunities.”

FROM left: Russell Miller, senior vice-president and general manager with responsibility for the Cove and Reef properties; Paul Strachan, senior director for China and Canada, Ministry of Tourism; Wendy Blaney, senior vice-president of sales for Atlantis; Dionisio D’Aguilar, minister of tourism and aviation; Ellison Thompson, deputy director-general at Ministry of Tourism; Joy Jibrilu, director-general of tourism; Daniel Liu, president of The Pointe; Karin Salinas, vice-president of marketing for Baha Mar; and Robert Sands, senior vice-president of administration and external relations for Baha Mar.

BISX briefs Rotary on capital markets’ future THE Bahamas International Securities Exchange’s (BISX) chief operating officer gave his take on the capital markets’ future during a recent speech to Rotary Club of Nassau Sunrise members. Holland Grant, who also spoke about the stock exchange’s history and current state of the market, said: “It was a pleasure to have an informed discussion with this group, which allowed all of us a chance to discuss ideas on the future of the Bahamian capital markets. “The capital markets are the result of the efforts of regulators, investors and companies. The Rotary

BISX chief operating officer, Holland Grant, left; and Rotary Sunrise president, Leroy Archer. Sunrise membership included persons from all of these areas, leading to a dynamic conversation.” Leroy Archer, Rotary Sunrise’s president, added: “Mr Grant was articulate and informative. Our members had many questions, but Mr Grant was able to explain how trading works and the role of BISX. It feels great to now understand what BISX does and how to go about investing. We would appreciate if Mr

Grant could meet with us again in the future.” Rotary is made up of three parts: Rotary Clubs, Rotary International and the Rotary Foundation. It is one of the world’s first service organisations. It was formed in 1905 by Paul P Harris, who was a Chicago attorney. The purpose was to create a meeting place where professionals could form lifelong friendships and exchange ideas.

MINISTER: ‘DON’T PULL PUNCHES’ ON NHI FEARS

consultative, inclusive, and as many people who can contribute to our national development should be invited and encouraged to do so.” Bahamian insurers have already warned that the $1,000 annual premium for National Health Insurance’s (NHI) basic package may “grossly underestimate” the true cost of the scheme’s benefits. The Bahamas Insurance Association (BIA), releasing the industry’s “position paper” on the Government’s revised NHI model, has called on it to produce data and empirical studies that showed how it had determined the scheme’s costs and employer/employee contributions. “We will look at every single suggestion and incorporate that into a final decision made by the Cabinet of The Bahamas,” reiterated Dr Sands yesterday. “It would be unreasonable to suppose there is a fait accompli with any aspect of NHI. “The benefits package may be different. The time of rollout may be different, the cost may be different, how we pay for it may be different. I think it’s important for us to look at this holistically. You are not to just focus on one aspect and say that’s a game changer.”

FROM PAGE ONE

the stakeholders in the community before we make a final decision,” Dr Sands said. “The scope, the cost, the financing of NHI has not been agreed or decided by Cabinet. “A formal position has been made by the NHI Authority that we believe is an excellent start. Now we would like, and are hearing, the insurance industry’s opinions and the unions make their comments. We would like as many stakeholders to say how they feel about this, what they like, what they don’t like about it, what they hate about it, make some recommendations about how we can fund this differently because it is a fundamental reform of our social safety network.” Dr Sands added: “I would like everyone to say exactly how they feel; don’t pull any punches. We are going to take this information, look at it and make a determination at the Cabinet level on how we will proceed. “I think this is what democracy is all about. It is

THE TRIBUNE

Wednesday, November 7, 2018, PAGE 3

BPL EXAMINES ‘ALL OPTIONS’ OVER FUEL By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net BAHAMAS Power and Light’s (BPL) chairman yesterday pledged it is “looking at all options” to secure cheaper fuel sources amid fierce consumer criticism of high electricity bills. Dr Donovan Moxey told Tribune Business: “We are looking at all options in order to alleviate the issue of having the expensive fuels to generate power for us at this time. That is what we are looking at.” He added that the monopoly energy provider has had to rely more on its Blue Hills plant, and more expensive fuel, to meet

DR DONOVAN MOXEY New Providence’s electricity needs due to recent fires that knocked out two of its most efficient generation units at the Clifton power plant.

“Obviously for us the first step is to make an assessment of the units and determine whether they can be adequately repaired and brought back into service. We are looking at all of our options right now. I would rather not go into details,” Dr Moxey said of the blaze-damaged generators. He recently conceded that increased dependence on BPL’s Blue Hills power station, which uses a more expensive fuel in ADO (diesel oil), has added to the recent spike in customer electricity bills. Aggreko also provides 80 megawatts (MW) of temporary generation at BPL’s Blue Hills plant, and Dr

Moxey said the utility has had to acquire a further ten MW of expensive dieselburning units from the same supplier. “We are using all of those available resources at Blue Hills. With that, Agrekko has units that they bring in and out of The Bahamas, sometimes just under maintenance,” Dr Moxey said. “The question was asked by them: Should they shift the assets off the island, or should we keep them just in case. “Our position is we don’t know what is going to happen, and just in case we need those units we asked them to hold on to the units in New Providence. That’s where that sits. The

arrangement we have with them is we only pay for what we use; that’s it. “Those units are stand-by units because the question could be asked: Do people want to get electricity, even though they are paying a higher fuel cost, or do we want to load shed because we don’t have enough capacity. Our position is we want to make sure we have enough capacity on the ground in the event we need to use it.” The Bahamas Electrical Workers Union (BEWU) president, Paul Maynard, yesterday suggested that with BPL’s relationship with Shell North America further solidified via the recent signing of a

Memorandum of Understanding (MoU) for a multi-fuel power plant, the utility should seek cheaper fuel through the energy giant in the interim. “I would say to Shell: Listen, you have me for all these years with this LNG project, let’s work something out in the meantime’. They could sit down and try to get cheaper fuel. Bills have increased and this LNG plant is not going to be online until 2022. What’s going to happen in the interim?” Mr Maynard asked. “Shell is a big player in the fuel business. Sit down and work something out to get some cheaper fuel. The people are suffering.”

Grand Lucayan managers China won’t replace facing $2m payout divide our ‘bread and butter’ FROM PAGE ONE

FROM PAGE ONE “extravagant” and “high”, countered that he did “not foresee a major problem” in bridging the gap with the resort on the voluntary separations. Pledging that the BHMA will “not be unrealistic and unreasonable” over its position, the TUC leader said the differences and “excitement” could have been avoided if both sides had met prior to the exchange of their proposals. “I think the reason for the difference between the proposal of the BHMA and the proposal from the [Grand Lucayan Board] is due to the fact we had no meeting prior to the figures being formalised,” Mr Ferguson told Tribune Business. “The chairman, Michael Scott, wrote me a letter and said he would first calculate the numbers from their side and then he wanted me to send our proposal through. He said we would then meet and discuss the proposals. That never happened. “Then I saw in the paper he was saying our figures were high and extravagant. That was actually unfair to us, because he agreed to meet before a decision was made on the figures and, once we both agreed we’d both sign off.” The TUC leader said there were also gaps in Bahamian law as it related to voluntary separation, which he suggested could also be causing confusion. “The board seems to have taken the view that the Employment Act applies,” he told Tribune Business. “But there’s no provision in the Employment Act for voluntary separation, and no provision in industrial agreements for voluntary separation. No union in The Bahamas has an agreement that you will find makes provision for voluntary separation. It’s a creature that’s negotiated between employer and employee.” Mr Ferguson said he and Mr Scott met for the first time on Monday afternoon, and agreed to further meetings and contacts “to see where the differences lie”. “I don’t foresee a major problem,” he told Tribune Business. “There is common ground we can agree on, and we are willing

THE GRAND LUCAYAN RESORT

to review the voluntary separation packages with the chairman to see how best we can come to an agreement that will be beneficial to the management and supervisory employees at the Grand Lucayan and the hotel. “The idea is not to propose something that is unrealistic or unreasonable. We have had a separation package with the Hotel Corporation [which Mr Scott also chairs] before. This is not the first time. The system we proposed is consistent with that. We did not deviate from that.” That refers to the compensation paid to BHMA members who left the former Radisson Cable Beach resort (now the Melia) when it was owned by the Government. Mr Ferguson said the union’s Grand Lucayan offer had been modelled on this, plus the recent BPL voluntary separation exercise. However, the Government will be especially keen to minimise the Grand Lucayan voluntary payouts given its goal of keeping the taxpayer’s exposure and liabilities as low as possible - especially given the controversy and criticisms that accompanied its $65m purchase of the property. And Mr Scott previously put both unions on notice that “misconceived claims” will not be entertained given that “public money” - meaning the Public Treasury and Bahamian taxpayers - will finance the payouts. Still, Mr Ferguson added yesterday: “There is no reason we can’t many any reasonable adjustments that are necessary to bring resolution to the matter. Based on the conversation I had with the chairman, he seemed to be open to

LEGAL NOTICE International Business Companies Act (No. 45 of 2000) PRBM Investments Ltd. (the “Company”) Notice is hereby given that, in accordance with Section 138 (8) of the International Business Companies Act, No.45 of 2000, the Dissolution of PRBM Investments Ltd. has been completed, a Certificate of Dissolution has been issued and the Company has therefore been struck off the Register. The date of completion of the Dissolution was the 29th day of October, 2018. Luciane Ribeiro Moreno Liquidator

resolving the differences with a view to resolution. “We feel very strongly that once both sides meet, which we will do shortly, we can sit down and do a complete analysis of the whole situation. It’s in the interests of both sides to reach agreement. They’re trying to sell the hotel and bring it up to a certain standard. We have an interest in that, but also have the members’ best interests to look after. “There just needs to be a meeting between the parties, and we will come to an amicable agreement. I then have to take it to my members, we will ratify it and move on. This is nothing new; we have done it before. Once the proposals were exchanged we ought to have met, come to an arrangement and ironed out any differences. This could have happened before all this excitement.”

given the relatively short flight times. Acknowledging that The Bahamas would have to better develop its cultural, historic and other attractions for Chinese visitors, who like to keep active rather than relax on a beach, Mr D’Aguilar said the recent trip - where the ministry was accompanied by executives from Atlantis, Baha Mar, The Pointe and Majestic Tours - represented “the first step” in a long process. While many in the Chinese media and travel agency communities were unsure of The Bahamas’ geographic location, the minister said he was “encouraged” by the fact there was knowledge of Exuma’s swimming pigs and Harbour Island’s pink sand. “China is a very interesting market with enormous potential,” Mr D’Aguilar told Tribune Business. “One hundred and thirty-one million Chinese took outbound trips from China last year, and that’s growing six to seven percent every year. “We obviously have the issue of distance to overcome, as it’s a long way from China, and particularly at the outset the numbers will be relatively small. It’s probably 3,000 a year and growing, but it would be silly to ignore this market because the economy of China is growing leaps and bounds, and is the second largest in the world.”

Mr D’Aguilar said the growth in wealth, and the number of high net worth Chinese, was of particular significance to The Bahamas as it was this population segment that will be able to afford travel to this nation. Explaining The Bahamas’ likely China strategy, he added: “We’re trying to sell The Bahamas as an add-on trip to the US and Canada. This is a strategy that, once you’ve made the long journey to Canada or the US, it’s a relatively short trip from Toronto, three hours; New York, two-and-a-half hours; Atlanta, one-and-ahalf hours; and Miami, 50 minutes. “It’s a relatively short hop to add on a beach holiday to city-centric holiday.” Mr D’Aguilar told Tribune Business that Chinese travel agents were “delighted to learn” that travellers to this nation will not require a visa to enter The Bahamas, recalling that the absence of such bureaucracy was “very warmly received”. He acknowledged that “a substantial increase in demand” was required for direct airlift between The Bahamas and China, while the provision of Mandarin speakers, signage and literature would further improve this nation’s attraction for Chinese visitors. “Obviously it’s a process of getting the word out about The Bahamas,” Mr D’Aguilar told Tribune Business. “Many people are geographically confuses

about our precise location. It’s an education process to educate those in the travel industry, who then educate the travellers. “That process is well underway. A lot of them have heard of Atlantis, and now Baha Mar. A lot of them have heard of the pink sand in Harbour Island, a lot of them have heard of the swimming pigs. I was encouraged by the enthusiasm and turn-out, and that The Bahamas was as wellknown as it was.” Chinese ownership of Baha Mar and The Pointe provides “a certain level of comfort” with The Bahamas, with Mr D’Aguilar suggesting there were sufficient attractions on different islands to already put together a five-day schedule for such visitors. “We had to start the process of getting out there,” be told Tribune Business.”We all came away saying we have to come out there at least once a year. We’ve hired a representative to represent The Bahamas on the ground, a Chinese travel agency, and they did an excellent job getting the media and travel industry to our meetings. “It’s a market where you don’t make one trip and things happen. This starts the process. You have to allocate funds to marketing. We came back saying we have to allocate more resources to that market to get results.”

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PAGE 4, Wednesday, November 7, 2018

THE TRIBUNE

US warns its banks on Bahamas dealings FROM PAGE ONE

11-strong] list due to the lack of effective implementation of their AML/CFT framework,” the US Treasury department warned that country’s financial services industry. “US financial institutions also should consider the risks associated with the AML/ CFT deficiencies of the countries identified under this section. With respect to these jurisdictions, US financial institutions are reminded of their obligations to comply with the due diligence obligations for FFIs (foreign financial institutions). “As required, covered financial institutions should ensure that their due diligence programmes, which address correspondent accounts maintained for FFIs, include appropriate, specific, risk-based and, where necessary, enhanced policies, procedures and controls that are reasonably designed to detect and report known or suspected money laundering activity conducted through or involving any correspondent account established, maintained, administered, or managed in the United States.” The US Treasury did seek to qualify its advisory by adding: “Such reasonable steps should

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not, however, put into question a financial institution’s ability to maintain or otherwise continue appropriate relationships with customers or other financial institutions, and should not be used as the basis to engage in wholesale or indiscriminate de-risking of any class of customers or financial institutions.” But the US advisory’s issuance, and contents, further highlight the potential reputational damage that The Bahamas faces from its inclusion on the FATF’s watch/ monitoring list, along with the potential increase in costs and time associated with international transactions and commerce. It may deter investors from coming to or using The Bahamas, while also exacerbating the “de-risking” trends that have threatened local banks’ correspondent relationships that are vital to facilitating commerce for an international business centre such as this nation. The US advisory also carries more weight than its UK equivalent because the vast majority of The Bahamas’ physical goods trade, primarily around $3bn in annual imports, and international financial transactions are conducted with - and cleared in - that country. Correspondent banks are those that allow Bahamian financial institutions to provide services in their home countries, using their physical and electronic banking infrastructures. They give Bahamian banks, and their clients, access to the international capital markets and financial system, enabling transactions to clear and be settled on a

timely basis, and foreign currency deposits to be taken. Foreign correspondent banks thus provide a vital gateway to the world economy and financial system for The Bahamas, but perceived regulatory risks - chiefly related to money laundering and other financial crimes - have resulted in the severing of such relationships for many Caribbean institutions. Mr Bowe, though, told Tribune Business he did not expect the combination of FATF listing, and UK and US advisories, to impact Bahamian commercial banks’ existing correspondent relationships because these undergo constant scrutiny by their foreign counterparts. He revealed that foreign financial institutions have already “drilled down below the country level” when it came to assessing their Bahamas relationships, with such due diligence extending to “on-site inspections”; “monitoring of transaction patterns to understand their nature; and documented anti-money laundering plans to ensure local banks’ standards matched theirs. “The [US] notice for commercial banks is not going to be a significant challenge,” Mr Bowe told Tribune Business, “because correspondent banks are already doing substantial due diligence. “They’re aware of the institutions they’re providing services to, and they will want to look at your anti-money laundering regime. Most of them are drilling past the country level and have gone to

PUBLIC NOTICE

the institution level. “That is the experience of my institution [Fidelity Bank Bahamas], and is consistent with all of them, having to individually demonstrate compliance with the antimoney laundering/counter terror financing regime they want us to maintain.” Pressed on whether any correspondent banking fallout was likely, Mr Bowe replied: “I don’t expect it to be perfectly honest. The relationships we currently have are heavily managed... and we satisfy each of our correspondents we’re of a high calibre. “From that perspective, it’s more damaging to new institutions or new relationships as opposed to maintaining existing ones. I don’t think there’s going to be an immediate or significant fall-out because, in most cases, people have had correspondent relationships for a period of time and, more important, they maintain those relationships as opposed to having to go out and establish new ones.” The Central Bank of The Bahamas, though, appears to be taking no chances when it comes to this nation’s inclusion on the FATF list and the potential consequences. Charles Littrell, its inspector of banks and trust companies, in his latest quarterly letter to Central Bank licensees said the regulator was prepared to engage foreign correspondent banks directly to ease any concerns they may have. “You would have seen the FATF’s recent addition of The Bahamas to the list of ‘other monitored jurisdictions’, which was a

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, JAMAAL irAnArdo wiLson of Yamacraw Beach Estates, P.O. Box N-3149, New Providence, The Bahamas intend to change my name to JAMAAL irAnArdo YALLoP. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O. Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of the publication of this Notice.

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, CHINTINO ARTWELL GILBERT & LITHERA DEBBY GILBERT née MOSS of #8 Palm Breezes Drive, mother and father of MADISON CHANAY MARIA MOSS-GILBERT intend to change his name to MADISON CHANAY MARIA GILBERT. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O. Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of the publication of this Notice.

MARKET REPORT TUESDAY, 6 NOVEMBER 2018

t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com

BISX ALL SHARE INDEX: CLOSE 2,007.19 | CHG 0.05 | %CHG 0.00 | YTD -56.38 | YTD% -2.73 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 20.91 7.50 4.46 1.22 0.38 3.92 9.26 6.60 4.97 12.50 2.74 1.78 8.21 6.30 13.20 6.90 4.50 13.50

52WK LOW 3.50 19.17 7.50 3.32 0.90 0.16 2.25 8.60 6.09 3.54 9.00 2.30 1.50 7.25 6.00 10.06 5.67 3.25 12.50

1050.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

PREFERENCE SHARES

1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00

SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 ##########

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y

BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

LAST CLOSE 4.45 17.43 9.09 4.46 1.01 0.37 2.30 9.25 6.15 4.00 12.42 2.41 1.78 7.56 6.30 12.99 6.75 3.63 13.01

CLOSE 4.45 17.43 9.09 4.46 1.01 0.37 2.30 9.25 6.15 4.00 12.42 2.44 1.78 7.58 6.30 12.99 6.75 3.63 13.01

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.03 0.00 0.02 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

CLOSE 100.00

CHANGE 0.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

LAST SALE 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

VOLUME

EPS$ 0.214 0.932 -0.306 0.317 0.059 0.000 -0.588 0.700 0.441 0.154 0.627 0.102 0.209 0.000 0.670 0.701 0.578 0.277 0.631

DIV$ 0.100 1.130 0.000 0.230 0.000 0.010 0.000 0.710 0.220 0.120 0.620 0.060 0.060 0.084 0.280 0.500 0.150 0.130 0.590

P/E 20.8 18.7 N/M 14.1 N/M N/M -3.9 13.2 13.9 26.0 19.8 23.9 8.5 N/M 9.4 18.5 11.7 13.1 20.6

YIELD 2.25% 6.48% 0.00% 5.16% 0.00% 2.70% 0.00% 7.68% 3.58% 3.00% 4.99% 2.46% 3.37% 1.11% 4.44% 3.85% 2.22% 3.58% 4.53%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%

INTEREST Prime + 1.75% 6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%

MATURITY 19-Oct-2022 ############### 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022

MUTUAL FUNDS 52WK HI 2.18 4.16 2.02 182.41 158.55 1.58 1.70 1.66 1.10 6.99 8.54 6.15 10.52 11.46 10.46 10.00 8.45 11.20

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.52 1.68 1.61 1.08 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

NAV 2.18 4.16 2.02 182.41 158.55 1.58 1.69 1.66 1.09 7.36 8.47 6.53 11.32 11.67 10.54 9.93 8.45 11.20

YTD% 12 MTH% 2.90% 4.07% 0.44% 4.38% 1.70% 2.35% 2.08% 3.47% 3.35% 5.94% 3.22% 4.22% -0.38% 3.34% 2.39% 4.01% -0.38% 0.53% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69% -0.61% 0.75% 1.13% N/A 2.95% N/A

NAV Date 30-Sep-2018 30-Sep-2018 28-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018

MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings

YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225

disappointing outcome,” Mr Littrell wrote. “The Bahamian government has committed to continue the comprehensive national approach to improving our AML/CFT standing. “As one part of this approach, the Central Bank intends to increase its engagement with correspondent banks as follows. If any SFI (supervised financial institution) thinks it useful, bank supervision staff are available upon reasonable notice to discuss our approach to AML/CFT supervision with current and prospective correspondent banks. “We will [also] shortly consult on a new data collection, which will give the Central Bank a comprehensive contact database for correspondent banks and bankers. This will facilitate more effective communication with this important stakeholder group.” Mr Bowe, meanwhile, urged The Bahamas to focus on where anti-financial crime standards will be “in the future” as opposed to now as the best defence to bodies such as the FATF frequently “moving the goal posts” and demanding more from it. He acknowledged that advisories such as the latest US warning are “always going to be of concern to the banks because its coded language for greater scrutiny”, but said The Bahamas needed to stop waiting until it was “hit over the head” by such adverse listings. “From a country perspective we have to move as quickly as possible to address the deficiencies that have led to these communications going out,” Mr Bowe told Tribune Business. “We have to make sure we are focusing our attention on where is the standard going, as opposed to meeting the standard

where it is today. “We often speak about the moving of the goal posts, but we know there is a heightened level of scrutiny being put on us. We have to be looking at our anti-money laundering regime in 2020, 2021, not 2019; the standard we will be judged on in the future.” The Bahamas has until September 2019 to deliver on the “action plan” agreed with the FATF and its regional affiliate for addressing the so-called “structural deficiencies” in its anti-financial crime regime. Many of the required steps relate to execution and implementations, and include increased money laundering prosecutions, asset confiscations and improvements at the Financial Intelligence Unit (FIU). Mr Bowe said The Bahamas needed to provide evidence that proves it has successfully addressed these deficiencies, adding that this nation often has “difficulty articulating and highlighting what enhancements have been done”. “As a jurisdiction you certainly don’t want to be on any list that reflects negatively on the country, but we can’t be seen as cowering from the criticism and negative comments being made because it shows we’re unaware or not addressing the deficiencies,” the Clearing Banks chairman said. “We have to be confident in our response, supported by evidence, to demonstrate what has been done so we’re compliant in the shortest possible time. We have to bear in mind, as we’re waiting until we’re hit over the head, our response is always going to be reactive, whereas if we see these blows coming ahead of time we can ready ourselves with a dispassionate response to show we have it under control.”

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, LATISHA ASHEENA ROLLE of New Providence, The Bahamas intend to change my name to LATISHA ASHEENA SWEETING. If there are any objections to this change of name by Deed Poll, you may write such objections to the Deputy Chief Passport Officer, P.O. Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of the publication of this Notice.

NOTICE Notice is hereby given that LEVEL SAINVIL of #6 Twynam Ave., P.O.Box N356, Nassau, The Bahamas is applying to the Minister responsible for nationality and Citizenship, for Registration/Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written signed statement of the facts within twenty-eight days from the 31st October, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147, Nassau, The Bahamas.

NOTICE Notice is hereby given that TELCY SAINVIL of #6 Twynam Ave., P.O.Box N356, Nassau, The Bahamas is applying to the Minister responsible for nationality and Citizenship, for Registration/Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written signed statement of the facts within twenty-eight days from the 31st October, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147, Nassau, The Bahamas.

NOTICE Notice is hereby given that RODNY ISRAEL of Home Stead Street, Nassau, The Bahamas is applying to the Minister responsible for nationality and Citizenship, for Registration/ Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written signed statement of the facts within twenty-eight days from the 7th November, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147 Nassau, The Bahamas

PAGE 8, Wednesday, November 7, 2018

THE TRIBUNE

BAHAMAS’ 130TH INTERNET SPEEDS PLACEMENT NOT ‘BEST MEASURE’ FROM PAGE ONE monthly broadband internet costs having dropped by $4.46 year-over-year from $77.23 to $72.77. The Cable.co.uk survey said it analysed 13 different broadband internet packages offered in The Bahamas to come up with its findings, with prices ranging from $30 to $210. This nation’s average cost per megabit per months was pegged at $5.74. While The Bahamas was ranked below Jamaica and Trinidad & Tobago, at 110th and 106th places, respectively, it finished within touching distance of the US in 119th place and was only one spot behind Hong Kong. It finished ahead of the likes of Norway, Iceland and Switzerland. Broadband internet access, and affordability, is seen as a key driver of economic growth for all countries, given its impact on corporate productivity and efficiency as well as helping to create a knowledge-based workforce able to operate in a technologyled world. It is especially important for The Bahamas given the Government’s ambition to develop Grand Bahama as a technology hub, and its current status as an international financial centre (IFC) and global business hub that has to communicate with clients scattered throughout the world. Dr Moxey told Tribune Business that while The Bahamas’ 130th ranking might convince some observers that “everything is bad”, a closer look at the findings revealed several positives. In particular, he hailed

the six-place improvement in the rankings as a sign that broadband internet costs in The Bahamas were coming down, aided by the intense competition between Cable Bahamas and the Bahamas Telecommunications Company (BTC). And Dr Moxey suggested that monthly broadband Internet prices were not the best measure of affordability, arguing that costs as a percentage of per capita income was a better benchmark given that it showed how much persons were paying as a proportion of their earnings. “When I look at stuff like that and broadband delivery, there’s infrastructure that goes into that and the people behind it,” he told Tribune Business. “You have to look at the cost of labour and the cost of living. “A better picture is the cost of broadband against per capita income, the cost of living and the average salary. In certain countries where the cost of living and the cost of labour is not so high, they’re able to sell broadband at a cheaper price. “What would be better is comparing the cost of broadband to the average per capita income. Jamaica may be paying less in dollar terms, but as a percentage of per capita income what are they paying?” Dr Moxey continued. “That’s how you determine who’s expensive and who’s not. That tells you how much money people are actually spending on the service. Those with a lower per capita income that are close to us are spending more per capita than we are. That’s a much better measurement. Just putting

everything in US dollars is not a fair measurement.” Dr Moxey said The Bahamas’ improvement in the Cable.co.uk survey showed that broadband internet costs were falling, and added: “I’m not surprised at that. If you look at the competition between Cable Bahamas and BTC the market for us is getting far more competitive.” Cable.co.uk also acknowledged the challenges faced by Caribbean broadband Internet providers in serving sparsely-populated communities spread across multiple islands and difficult terrain, together with the competition provided by mobile broadband “Caribbean nations and territories sit almost universally in the most expensive end of the table, largely thanks to their problematic geography. Caribbean nations have been more hesitant in adopting fixedline broadband solutions, largely favouring mobile broadband and 3G/LTE solutions as a means to get online,” Cable.co.uk said. “Where available, fixed-line broadband is an expensive commodity whose limited uptake is exacerbating these high prices in many cases. Saint Maarten (France) has the cheapest broadband in the Caribbean with an average package price of $23.78, while Haiti offers the most expensive with an average package price of $207.39.” Dr Moxey agreed that many Caribbean nations have “leapfrogged” with mobile broadband, adding that The Bahamas was seeing a similar trend with Aliv, which was helping to keep prices keen through the competition it provides.

MEN look at an electronic stock board showing Japan’s Nikkei 225 index at a securities firm in Tokyo today. Asian shares were mostly higher as investors awaited results from the US midterm elections, which could have an impact on the global economy and trade. Photo: Eugene Hoshiko/AP

Asian markets rise pending US midterm election results TOKYO Associated Press ASIAN shares were mostly higher today as investors awaited results from the US midterm elections, which could have an impact on the global economy and trade. KEEPING SCORE: Japan’s benchmark Nikkei 225 added 1.3 percent in morning trading to 22,428.20. Australia’s S&P/ ASX 200 edged 0.1 percent higher to 5,881.40. South Korea’s Kospi gained 0.5 percent at 2,100.47. Hong Kong’s Hang Seng jumped 0.6 percent to 26,284.13, while the Shanghai Composite fell 0.1 percent to 2,656.56. WALL STREET AFTER HOURS: US futures were higher, with the contract for the Dow up 0.3 percent at 25,721.00 and that for the S&P 500 adding 0.2 percent to 2,764.30. ELECTION WATCH:

The results of the midterm elections in the US are expected during the Asian day. The outcome will determine control of the House of Representatives and Senate. In addition, 36 governorships are being contested along with other state and local positions. The vote could affect US trade, economic and security policies. WALL STREET: The S&P 500 index rose 17.14 points, or 0.6 percent, to 2,755.45. The Dow Jones Industrial Average gained 173.31 points, or 0.7 percent, to 25,635.01. The Nasdaq composite picked up 47.11 points, or 0.6 percent, to 7,375.96. The Russell 2000 index of smaller-company stocks added 8.59 points, or 0.6 percent, to 1,556.10. THE QUOTE: “The real question is whether the outcome of the mid-terms will in any way diminish Trump’s influence on the

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Congress, and whether his executive reach on global trade and other multilateral engagements will be reined in,” Mizuho Bank said in a commentary. “Unless Democrats usurp with a sweeping victory, this appears unlikely,” it said. ENERGY: Oil prices have slipped after the US said it would allow a group of allies to continue buying oil from Iran as long as they continued to try to reduce their imports from that nation. The US reinstated sanctions on Iran this month. Benchmark US crude oil fell 31 cents to $61.90 in electronic trading on the New York Mercantile Exchange. It fell 1.4 percent to $62.21 a barrel in New York yesterday. Brent crude dipped nine cents to $72.04. CURRENCIES: The dollar rose up to 113.38 yen from 113.18 yen late yesterday in Asia. The euro climbed to $1.1441 from $1.1427.