12212023 BUSINESS

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THURSDAY, DECEMBER 21, 2023

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Deficits overwhelm growth six-fold in driving debt hike By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net WEAK economic growth has been overwhelmed by the six-fold greater impact of surging fiscal deficits and failed to keep The Bahamas’ debt ratios in check, a multilateral lender is asserting. The Inter-American Development Bank (IDB), in its latest Caribbean quarterly bulletin focusing on the region’s debt issues, unveiled an analysis which showed the average 1 percent annual economic growth rate The Bahamas has achieved this century has only been able to shave five percentage points off the country’s debt-to-GDP ratio. In contrast, the Government’s recurring primary deficits, which measure by how much its total noninterest spending exceeds revenue income, have had six times’ greater impact

t -PX (%1 DVUTùKVTU QUT PGG EFCU SBUJP JO ZFBST t *%# %FmDJUT BEE QUT UP NBLFùATIBSQ DPOUSBTU t &YQPTFT XIZ (PW U QVTIJOH GPS SBQJE EFmDJUT FOE by adding 30 percentage points to the Bahamian debt-to-GDP ratio over the past 20 years. The “cost of debt”, meaning interest payments made to lenders to service the principal amount, was said by the IDB to have added a further 41 percentage points to the debt-to-GDP ratio during the past two decades. The data explains why the Davis administration is so urgently, and rapidly, seeking to eliminate the long-standing annual deficit by generating a fiscal

surplus in its 2024-2025 Budget year. The Bahamas’ debtto-GDP ratio, which measures the size of the national debt compared to that of the economy and its output, started to accelerate upwards when the 2008-2009 financial crisis struck, and the IDB identified the principal culprits as weak economic growth and persistently elevated fiscal deficits. “In terms of (real) GDP growth, in line with the trend of other high-income Caribbean countries, The

Bahamas experienced a deceleration of economic growth from 2009 onward - from 2.5 percent in the 1990s to around 1 percent in the 2000s and 2010s,” the IDB report said, acknowledging that losses and damage caused by major hurricanes was a key factor. “At the same time, revenues underperformed, and current expenditures have been downwardly sticky. These persistent deficits significantly increased the country’s vulnerability to unexpected shocks, as the COVID-19 pandemic of 2020 demonstrated,” it added. “Net debt-increasing flows are large and are composed of two main drivers - the cost of debt, which has added 40 percentage points to the (debt-to-GDP) ratio since 2004 followed by the primary balance, which has

SEE PAGE B6

FTX settlement ‘proves naysayers were wrong’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE FTX settlement shows The Bahamas has “beaten expectations” and “proven the doom and gloom naysayers wrong” over the crypto exchange’s collapse, a well-known businessman argued yesterday. Sir Franklyn Wilson, the Arawak Homes and Sunshine Holdings chairman, told Tribune Business that the agreement struck between FTX’s Bahamian liquidators and their US counterparts demonstrates that this nation is “a serious” and “fit and proper

SIR FRANKLYN WILSON jurisdiction” for financial services, digital assets and dealing with complex crossborder insolvencies. Disclosing that, in the aftermath of FTX’s November 2022 implosion, there

SEE PAGE B7

URCA proposes 20% expansion in budget By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Utilities Regulation and Competition Authority (URCA) is for the second consecutive year proposing a major hike in its operating budget via a near-20 percent increase for 2024. The communications and energy sector regulator, unveiling its 2024 annual plan for public consultation, produced a budget showing a more than $1.5m increase in planned operational spending to $9.221m as opposed to $7.692m for this calendar year. To cover these costs, it will rely on a similar-sized

19.5 percent jump in fee income obtained via statutory levies on its licensees, such as the Bahamas Telecommunications Company (BTC, Cable Bahamas/ Aliv and Bahamas Power & Light (BPL). It is forecasting that total fee income will also rise by $1.5m to $9.517m in 2024 as opposed to 2023’s projected $7.967m. The increased fee burden is unlikely to sit well with URCA’s licensees given that the 2024 expansion of the regulator’s operating budget follows last year’s even greater 23 percent growth. That produced a negative reaction and, over a two-year period, URCA’s

SEE PAGE B10

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Total $1.4bn SOE debts pose ‘a significant risk’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net TOTAL debts owed by the Government’s stateowned enterprises (SOEs) have hit $1.4bn to become “a significant risk” by exceeding 10 percent of annual economic output, the IDB has warned. The multilateral lender, in its latest quarterly Caribbean quarterly bulletin that focused on the region’s debt issues, voiced particular concern about SOE debt that is not guaranteed by the Government given that taxpayer subsidies to these entities have increased especially following the COVID-19 pandemic. While government and SOE debt cross-holdings provide some modest mitigation, the Inter-American Development Bank (IDB)” said the financial demands imposed by the likes of the Public Hospitals Authority (PHA), Bahamasair and Water & Sewerage Corporation are among three “key factors” it identified as

influencing The Bahamas’ overall “debt stock”. “Contingent liabilities are another key aspect of public debt in The Bahamas,” the IDB report said. “The total debt of stateowned enterprises (SOEs) and other government agencies reached $1.39bn or 10.1 percent of GDP at the end of the 2023 second quarter as the pandemic raised financing needs for some of these entities. “Adding the total debt from SOEs to central government debt increases the public debt-to-GDP ratio from 82.1 percent to 92.3 percent of GDP. However, since the central government holds debt from these SOEs and some of them also possess central government debt, the consolidated public debt-to-GDP ratio declines to 87.7% percent of GDP. “While the debt-to-GDP ratio of SOEs has decreased over the last four years, the share of non-guaranteed debt is still a significant source of risk, particularly

SEE PAGE B6

PAGE 2, Thursday, December 21, 2023

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Navigating the digital healthcare challenge I

n the ever-evolving landscape of healthcare, the pursuit of digital transformation has become a defining journey. As the industry endeavours to leverage technology for improved patient care, streamlined operations and enhanced efficiency, a tapestry of innovations and challenges is unfolding. Beyond the traditional healthcare realms, the sector is now embracing digital transformation at an unprecedented pace. The integration of technologies such as telemedicine, electronic health records (EHRs) and data analytics is redefining patient care, diagnosis and treatment.

Within this paradigm shift, innovative technologies are revolutionising patient care. Telemedicine, for instance, enables remote consultations, the breaking down of geographical barriers and providing accessible healthcare. Electronic health records centralise patient information, facilitating seamless communication among healthcare providers. Additionally, data analytics empowers healthcare professionals to derive actionable insights, enhancing diagnostic accuracy and treatment effectiveness. Yet, as healthcare transforms digitally, a set of operational challenges is emerging. The interoperability of diverse digital systems remains a hurdle, hindering the seamless flow of patient data across platforms. Data security and privacy concerns loom large, requiring robust measures to safeguard sensitive patient information. Moreover, the integration of these technologies

requires healthcare professionals to adapt to new workflows, leaving them facing a steep learning curve amid the ongoing demands of patient care. Successfully navigating these challenges involves strong leadership within healthcare providers. Leaders must champion a culture of adaptability, ensuring that digital transformation is not only embraced but also effectively integrated into daily operations. Investments in training, cyber security measures and the development of interoperable systems are paramount. Moving forward, the digital transformation of healthcare is not just a fleeting trend but a transformative force shaping the future of the industry. As artificial intelligence, remote patient monitoring and predictive analytics continue to evolve, healthcare is poised for unprecedented advances in personalised medicine,

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ROYE II preventive care and overall patient outcomes. As the healthcare industry strives to strike a balance between leveraging cutting-edge technologies and addressing operational hurdles, the role of leadership becomes increasingly pivotal. The future of healthcare lies in embracing and effectively navigating the digital wave, ensuring that innovations lead to tangible improvements in patient care while safeguarding the integrity and security of healthcare systems. II

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Thursday, December 21, 2023, PAGE 3

North Eleuthera airport design ‘held’ over audit

BAHAMIAN YACHT BROKERAGES ‘LEFT WITH NOTHING BUT CRUMBS’

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Bahamas’ aviation director yesterday said proposed designs for the new North Eleuthera airport have been held back due to an Airport Authority audit into urgently needed improvements. Dr Kenneth Romer, also the Ministry of Tourism, Investments and Aviation’s director-general, said the design tender was a part of a larger Request for Proposal (RFP) audit and the Airport Authority was “committed” to addressing various issues raised in that process. He explained: “It was a part of a very active RFP process and, in the interim, we had committed to addressing some of the issues. The Airport Authority is, again, addressing the issues as it relates now to the parking lights or any issues that would prevent

DR KENNETH ROMER planes operating safely, or any kind of obstacle and limitations. “So we did a full audit of the Rock Sound airport. The Airport Authority has completed that. They would have made some recommendations, and the team once again has been mobilised to resolve some of the low hanging fruit.” Besides the parking lights, other issues involve identifying a proper “operator for the operations” itself and “precision

SEE PAGE B11

BARBERS AND BEAUTY SALONS EYEING STRONG XMAS SEASON By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net BARBERS and beauty salons yesterday said they are optimistic about a strong Christmas season after noticing an increasing number of customers experimenting with new hair styles. Anton Minnis, vicepresident of the Bahamian Cosmetologists and Barbers Association (BCBA), told Tribune Business that this is “proof of the strength of the economy”. He added: “I think what customers are doing is using more enhancements in the industry, things that they see on social media, and so that’s causing people to have more of an interest in how they get their hair done. It’s a temporary fix but it still gives people a lot of confidence.” Scheduling hair appointments this year has been made easier by booking apps that are downloadable to any computer or smartphone, making the process

quicker and smoother for customer and stylist alike. “Those booking apps we got as a result of COVID19 caused us to find ways and means by which we can book clients and become more organised with our customer service,” Mr Minnis said. These booking apps serve all sub-sectors of the industry - from barbers down to nail technicians. Mr Minnis warned, though, that the existence of booking apps does not mean persons should delay their visit as barber and beauty salons are “extremely busy” in the run-up to the festive season. “That’s just how solid the business has been this Christmas,” he added, while warning of healthrelated regulations that will impact the sector next year. The National Infection and Prevention Control Board will be organising mandatory face-to-face classes for all practitioners, with attendance necessary for their Business Licence renewals. “You can look out for that. That’s coming very soon, right after Christmas,” Mr Minnis said.

BAHAMIAN yacht brokers yesterday slammed “discriminatory” regulations that leave them “with nothing but the crumbs” from the lucrative foreign yacht charter market. The Bahamas Yacht Brokers Association, in a statement, asserted that the Boat Registration Act (Yacht Rules) “explicitly state” that foreign-owned yachts, which typically represent the majority of vessels cruising in this nation’s waters, must be rented or chartered via brokers based outside this country. Noting that successive PLP and FNM administrations have failed to reform regulations first enacted in 1992 for the benefit of Bahamians and local businesses, the Association argued that the present situation means its members are largely cut-off from participating independently in the foreign yacht charter market. While they can partner with international brokers to book charters on foreignowned yachts longer than 50 feet, this means they have to share the resulting profits. The Association added that, in effect, Bahamian yacht brokers and charter companies are better off operating outside the country than in their homeland. Having previously hit out over the negative fall-out from VAT’s imposition on foreign yacht charter contracts, the Association said: “Another egregious case in point is The Bahamas Boat Registration Act (Yacht Rules), which explicitly state that foreign-owned yachts, which comprise the majority of yachts operating in The Bahamas - including every single charter vessel above 50 feet in length - must be rented from a broker outside the country. “This means Bahamian brokers are left with nothing but the crumbs, while foreign agents are flourishing off of business taking place in our own waters. This rule blatantly contradicts a number of Bahamas Investment Authority policies designed to put Bahamians first and also contravenes the Business Licence Act....

“Over the last few years, yachting has exceeded previous pre-COVID growth predictions to become an $85bn industry globally. Bahamian brokers would be thriving off this sector, as this is a very in-demand destination, were it not for these discriminatory rules. It really is baffling why the Government would seek to undermine Bahamian professionals,” the Association continued. “Bahamian professionals seeking to work in the yacht industry – from brokerages, to shore-side services and products, to actual positions onboard yachts – are facing major discrimination as compared to our non-Bahamian counterparts.” The Association argued that, “by helping Bahamian yacht brokers thrive”, the Government will create more entrepreneurial and job opportunities in The Bahamas. And this would also stimulate economic activity and earnings, increasing the taxes and fees paid into the Public Treasury by the Bahamian

private sector, while also boosting the country’s foreign currency earnings and exchange rate peg with the US dollar. “As it stands now, government ministries appear to be solely interested in growing business for foreign-based brokerages as evidenced in the recent Fort Lauderdale International Boat Show and the obscene amount of money that was spent by our government on courting foreign brokerage businesses,” the Association said. “Meanwhile, right here at home, nothing was spent by the Government for the local industry equivalent, The Bahamas Charter Yacht Show, which saw over 40 local tax-paying Bahamian businesses take part. Due to the discriminatory

regulations that the Government has put in place, it is better for Bahamians to operate outside the jurisdiction than within it. “The Bahamas Yacht Brokers Association therefore further calls upon the Government to address the legislation for brokers and agents that wish to operate in our own country, so that we may be competitive without having to leave our homes and work abroad,” the Association added. “Too many of our brightest and youngest are choosing not to come home to The Bahamas because of our restrictive policies imposed on Bahamians. Let us not let this industry be another reason our future professionals and leaders never to come back to our shores.”

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NASSAU/PI RESORTS TARGET ‘RECORD’ XMAS OCCUPANCY By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net NASSAU and Paradise Island-based resorts are set to enjoy “record level occupancy” through to January 2024, a senior industry official says. Joy Jibrilu, the Nassau/ Paradise Island Promotion Board’s chief executive, said the hotel sector will see record business volumes this Christmas and New Year season with numbers

set to surpass both 2022 and 2019’s pre-COVID figures. She added: “We will be seeing record level occupancy, probably from this week through to the beginning of January. So I’m comparing that to 2022, where we ended 2022 very, very strong, but also if we go back to 2019, which before October of this year was still our record year. We’re going to surpass all those figures. Mrs Jibrilu said Nassau/ Paradise Island hotels enjoyed an average 80 percent occupancy through to August 2023, but the

JOY JIBRILU upcoming holiday numbers are expected to be higher. She added: “So this whole year we’ve had record occupancy levels through to

August. Our occupancy was approximately 80 percent, and that’s compared to 74 percent in 2019. We expect that to be higher.” “We’ve seen the rebounding of tourism in a major way. We know that the Ministry of Tourism had a major press announcement saying that we surpassed the eight million visitor arrival mark but ,as if that was not enough, we’ve ended the year with Nassau/ Paradise Island being named as Caribbean destination of the year for 2023. “This is huge because they have singled out our

twin islands, the capital and Paradise Island, out of The Bahamas. And when I went back and asked, they just said the renaissance and everything that’s taking place on Nassau and Paradise Island, the hotels are a big part of it, the culinary offerings, but all the activities.” Mrs Jibrilu said the British Colonial’s re-opening will provide a much-needed 288 extra rooms to Nassau’s resort inventory. She added: “This is even more exciting for Nassau/Paradise Island as a destination because we are solely short of rooms.

BOB chief hails dividend restart after ‘11-year gap’

NEIL STRACHAN, Bank of The Bahamas managing director.

BANK of The Bahamas’ top executive hailed “disciplined risk management” for driving its $11.4m in profits during the year to end-June as dividend payments resumed after an “11-year hiatus”. Neil Strachan, the BISXlisted commercial bank’s managing director, told shareholders at its recent annual general meeting (AGM): “Our disciplined risk management approach

has been pivotal in achieving a net income of $11.4m, showcasing our resilience in the face of economic uncertainties.” He added that strategic investments had contributed to a substantial $6.4m increase in total operating income compared to Bank of The Bahamas’ 2022 financial year. Mr Strachan said: “Our investments in Treasury Bills and Government Registered Stocks have yielded tangible results,

driving increased interest and non-interest income.” He added that the bank had sought to innovate with the launch of a new corporate website; opening of its new, modern JFK Drive premises; implementation of Newgen loan and account opening origination systems; and the introduction of a mobile banking app. “These initiatives underscore our commitment to providing efficient and convenient banking solutions for our valued customers,”

We know that Melia is out, we know that what used to be the Beach Towers at Atlantis is out, and British Colonial, they’ve been out since the pandemic. “Everybody knows the interest in our destination is tremendous, and while it’s a good problem, it’s not a problem we necessarily want to have - that we don’t have enough rooms - and so to have 288 rooms in the heart of historic downtown beautifully refreshed and regenerated is incredible.” Mr Strachan said. “After an 11-year hiatus, we have resumed distributing dividends to common shareholders, reflecting our dedication to maintaining a balance between growth and rewarding the trust of our shareholders.” Looking ahead, the managing director voiced confidence in Bank of The Bahamas’ future, adding: “We are entering a phase of accelerated growth, building on a solid foundation established over the past four years. The collaboration of all stakeholders is crucial for our continued success.” Jihanne Hosmillo-Wiliams, Bank of The Bahamas’ chief financial officer, gave a detailed overview of its financial journey from 2019 to the $4.1m in net income generated during the 2024 financial year’s first quarter. “We rebounded from a net loss of $7.3m in 2020 to a net income of $11.8m by the end of fiscal year 2022, and $11.4m in fiscal 2023, demonstrating our resilience and adaptability,” she said. “Our capital ratio has strengthened from 41.8 percent in 2019 to 46.3 percent in the current fiscal year, significantly above the Central Bank’s minimum requirement of 18 percent.” At $251 percent, the bank’s liquid asset ratio remains more than double the minimum required. Mrs HosmilloWilliams said Bank of The Bahamas’ total assets stand at $951m, and total equity at $185m.

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Thursday, December 21, 2023, PAGE 5

EARLIER this year, Jimmy’s Wines and Spirits opened the doors to a new location on Abaco as part of its expansion and restoration plans, which focused on the northern Bahamas following the devastation from Hurricane Dorian in 2019

JIMMY’s Wines and Spirits has opened its 11th location in Lyford Storage and Commerce Park.

Liquor merchant unveils third new store for 2023 A BAHAMIAN liquor merchant has opened the last of three stores it launched in 2023 with its western New Providence expansion to the Lyford Storage and Commerce Park. Jimmy’s Wines & Spirits said the December 7 opening of the latter location was driven by increased sales and demand for another site on New Providence. It had previously opened a new location on Abaco as part of its expansion and restoration plans, which focused on the northern Bahamas following the devastation inflicted by Hurricane Dorian in 2019. And, due to increased economic activity and business on Eleuthera, the company also opened a new store in Governor’s Harbour to meet demand on that island and complement the company’s North Eleuthera location. “The expansions have really been a team effort identifying where our

DUE to increased economic activity and business on Eleuthera, Jimmy’s Wines & Spirits has opened a new location in Governor’s Harbour to meet demand and complement its North Eleuthera location. Photos:Jimmy’s Wines and Spirits/Barefoot Marketing

brand should go and where it’s needed,” said Jimmy’s General Manager for Nassau and the Family Islands, Gary Sands. “I have a great team that I rely on to help make the best decisions in our growth for the future. “It’s truly rewarding to manage a team like the one I have. The openings signified the great potential for growth and forward

movement. Our focus is on better servicing our customers and giving the consumers options.” Mr Sands, who rose to the company’s leadership in 2017, said the most recent opening of the company’s second location in western New Providence signifies the strength of the brand. “We had an amazing turnout at our opening of

our new store out west at Lyford Storage and Commerce Park,” he added. “The community was very excited to receive us in the area, showing we are building a strong brand throughout the country. “We are excited to announce we have opened

three new Jimmy’s Wines and Spirits locations this year throughout The Bahamas, totalling 11 stores. This is a great step for Jimmy’s Wines and Spirits in expanding our footprint and distribution through the country.” Jimmy’s is a subsidiary of Sands Beer, which has been in existence for 15 years. With 11 retail locations and four distribution centres throughout Nassau, Grand Bahama, Abaco and Eleuthera, the chain services all islands through call representatives where there are no distribution centres. Diane deCardenas, Jimmy’s Wines and Spirits’ assistant general manager for Nassau and the Family Islands,

said: “Compared to the other companies in the liquor industry in The Bahamas, Jimmy’s Wines & Spirits is the new kid on the block. “I’ve been with the company for the past seven years and, even before I began working for the family behind the brand, I heard only great things about them. While Jimmy’s is really happy to expand our locations, we also really appreciate and understand the importance of all the independent liquor stores that sell our products.” “The availability of our products is very key. So, it’s really important that we’re able to work with all of our partners to carry them.”

PAGE 6, Thursday, December 21, 2023

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DEFICITS OVERWHELM GROWTH SIX-FOLD IN DRIVING DEBT HIKE FROM PAGE B1 added 30 percentage points to the ratio over the same period. “The net debt-reducing flows, on the other hand, which are the real growth rate of GDP and the inflation rate, are low - as expected in the case of inflation but not in the case of GDP - and have only reduced the ratio by 11 percentage points during the last 20 years.” Delving further into the Government’s primary fiscal balance, which strips out interest payments in measuring by how much spending on salaries, rents, goods and services exceeds tax revenues, the IDB described the consistent annual ‘red ink’ as “a debt-creating flow”. “The primary balance has registered a 2.3 percent of GDP deficit on average over the period [last 20 years], whereas the required primary surplus hovered around 0.7 percent of GDP on average,” the report said.

Thus the average annual difference between the Government’s primary balance performance, and where it needs to be, is some 3 percent of GDP - a sum equivalent at present to around $435m. “Among the reasons that explain this difference between the actual primary balance from the debt-stabilising one are subdued economic growth that exacerbates revenue underperformance; increasing public spending on goods and services and on transfers and subsidies (particularly to state-owned enterprises); the increasing incidence of natural disasters with four major hurricanes in the last eight years; and the COVID-19 pandemic,” the IDB said. And, with interest (debt servicing) costs adding 41 percentage points to The Bahamas’ GDP ratio over the past two decades, the IDB noted how rates have increased since COVID due to in part to the battle

developed country central banks are waging to bring down inflation. However, the report also noted that “increasing financing needs have increased risk premia” post-COVID, especially for so-called emerging markets such as The Bahamas, with investors and lenders demanding greater compensation through higher interest coupons for the perceived extra risk these countries present. And, by comparison, the IDB said: “Low growth rates in The Bahamas over the last 20 years did little to reduce the debt-toGDP ratio. Specifically, the 20-year cumulative effect of the real GDP growth rate on the debt-to-GDP ratio is a reduction of five percentage points, in sharp contrast to the 30 percentage points added by persistent primary deficits and the 41 percentage points added by interest rates.

TOTAL $1.4BN SOE DEBTS POSE ‘A SIGNIFICANT RISK’

“Many reasons explain the low growth rates of Bahamian GDP, the most important being vulnerability to natural disasters, increasing debt levels and structural factors (human capital, the business environment, and institutions). “On the other hand, inflation - measured by the GDP deflator - accounts for a cumulative reduction of six percentage points. While inflation most often contributes to reductions in the debt-to-GDP ratio, in the case of The Bahamas, this contribution has sometimes been positive, as the GDP deflator has shown deflation in some years.” The IDB’s findings show why the Davis administration is so keen to finally eliminate the Government’s annual GFS deficit, and generate an overall Budget surplus in just over 18 months’ time at end-June 2025, as this will eradicate arguably the

key driver of the $11.53bn national debt. It has unveiled an ambitious target to slash the 2022-2023 fiscal year’s $533m deficit by 75.4 percent, or three-quarters, year-overyear to $131.1m or 0.9 percent of GDP to bring the Government within striking range of the following year’s surplus. The Davis administration has continued to voice confidence that it will hit its targets despite the International Monetary Fund (IMF) recently forecasting that this year’s fiscal deficit is likely to come in almost three times’ higher than the Government’s own prediction at around $379m or 2.6 percent of GDP. “The current budget expectation is that revenues will increase 14% percent above those in the revised budget for fiscal year 2022-2023, equivalent to two additional percentage points of GDP in tax

revenue in a single year,” the IDB report said, “and that total expenditures will continue a downward trend but recurrent expenditure will increase by 0.4 percent of GDP. This implies a primary fiscal surplus rising from $39m to $486m (3.3 percent of GDP).” The Bahamian economy’s post-COVID reflation, and increased growth, has helped hold the debt-to-GDP ratio in check and lower it from 100 percent at end-June 2021 - a figure that meant the Government’s debt was equal to the size of the economy. However, overall debt levels have continued to increase, albeit at a much slower rate than during COVID-19. “With the recovery in the GDP estimates, the ratio of the direct charge to GDP decreased by an estimated 5.5 percentage points on a yearly basis to 80.4 percent at September-end. In addition, the national debt-to-GDP declined to an estimated 80.1 percent compared to 89.1 percent in the third quarter of 2022,” the Central Bank said in its latest quarterly economic review.

FROM PAGE B1

Meanwhile, the IDB estimated that COVID-19, together with hurricanes Dorian, Irma, Matthew and Joaquin, added some 12.7 percentage points to The Bahamas’ debt-to-GDP ratio in the eight years since 2015 by creating major holes in the Government’s financial projections. The four hurricanes alone were said to have collectively expanded the Government’s primary deficits, which measure by how much all non-interest spending exceeds revenue income, by a sum equal to 7.5 percentage points of GDP. “Together with the impact of the COVID-19 pandemic, this added almost 13 percentage points to the debt-to-GDP ratio over the last eight years through higher-than-anticipated public expenditures and therefore higher-than-anticipated primary deficits,” the IDB report said. Nevertheless, the multilateral lender praised the Government for acting “soundly” to address fiscal concerns by developing a medium-term debt strategy and implementing operational reforms via the Revenue Enhancement Unit and Debt Management Office. However, it said the Davis administration’s fiscal targets for 2023-2024 and upcoming years “seem ambitious”. “The current Budget expectation is that revenues will increase 14 percent above those in the revised budget for fiscal year 2022-2023, equivalent to two additional percentage points of GDP in tax revenue in a single year, and that total expenditures will continue a downward trend but recurrent expenditure

will increase by 0.4 percent of GDP,” the IDB added. “This implies a primary fiscal surplus rising from $39m to $486m (3.3 percent of GDP). In this context, the fiscal goals set for this year should be monitored early in order to react swiftly by adjusting not only the budget goals but also the medium-term fiscal strategy.” The report suggested that The Bahamas could benefit from targeting the 66 percent debt-to-GDP ratio that the IDB has recommended all Caribbean tourism-based economies adopt. “Given the efforts that have been made to regain market confidence, the Government might benefit from adjusting its fiscal framework towards one more in line with the history and recent structure of the Bahamian economy,” it added. “An adjustment of that kind could be complemented with the introduction of an automatic adjustment mechanism like the one implemented in Jamaica. Moreover, the necessity and the opportunity to build fiscal buffers could not be greater now that the Bahamian economy is in the middle of a tourism boom. “In this regard, the reestablishment of the Natural Disaster Fund - which in essence is also a macroeconomic stabilisation fund - will not only improve resilience against natural disasters but also help bring down the debt ratio toward more prudent levels. Last but not least, securing broad support for implementation of the ongoing and upcoming revenue and expenditure measures will be essential to achieving all these goals.”

when considering that central government assistance to SOEs has increased over the years. Strengthening SOE governance and operational efficiency will be key to mitigate this risk.” Total taxpayer subsidies to loss-making SOEs were projected to decline by a combined $47m this fiscal year, falling to $455.229m compared to $492.24m in 2022-2023. The latter itself represented a decline from the $564.393m provided in 2021-2022 in COVID’s aftermath. Elsewhere, the IDB identified “underfunded pension systems” as a further fiscal risk for the Government. It especially cited the ‘pay as you go’ pension for civil servants, which are 100 percent funded by taxpayers in the annual Budget and to which the beneficiaries presently make zero contribution towards their retirement costs. “Another source of contingent liabilities is underfunded pension systems. While the noncontributory public pension system of The Bahamas is currently funded by the Budget, it is increasing upward, with population aging adding more risk to the trend. Some estimates point to public and private pension systems possibly running out of funds by 2029,” the report added. Bahamian taxpayers are due to fund an estimated $134.744m worth of pension payments to retired civil servants during the 2023-2024 fiscal year, representing a slight increase from the prior year’s $130.876m. Together with $33.776m of gratuities, the total bill for 2023-2024 is projected at $168.52m.

THE TRIBUNE

Thursday, December 21, 2023, PAGE 7

FTX settlement ‘proves naysayers were wrong’ FROM PAGE B1 was “no one in the financial services space who was not deathly afraid” of the potential negative consequences for The Bahamas’ jurisdictional integrity and reputation, he added that two sides’ settlement was evidence that these fears todate were unfounded. Sir Franklyn suggested that John Ray, head of the 134 FTX entities in Chapter 11 bankruptcy protection in Delaware, by entering into the agreement with FTX Digital Markets’ liquidators “had to concede he was wrong on something”. He added that the deal, which has to be approved by both the Delaware Bankruptcy Court and Supreme Court, places the local liquidators on equal standing with their US counterparts. “In my view, any such agreement is a positive one for the creditors,” Sir Franklyn said of a settlement that appears likely to end a year of litigation and public acrimony between the two sides. “We must never forget that a liquidation, first and foremost, is for the interests of the creditors. I commend the principals of both sides for arriving at this point because it’s definitely in the interests of creditors.” Asked whether the settlement agreement will boost The Bahamas’ standing and minimise any further

fall-out from FTX’s collapse, he replied: “Let me say that when the issue of FTX first started, I do not recall one authority in the financial services space who was not deathly afraid as to the impact of the FTX collapse on the jurisdiction. “It was where everyone I spoke to, it was the forecast and suggested it was going to have a significant adverse effect. The fact we have gotten to this point and proven all of those naysayers wrong is clearly a very good thing for the country. All persons concerned deserve our commendation and appreciation.” Brian Simms KC, the Lennox Paton senior partner, and PricewaterhouseCoopers (PWC) accountant duo, Kevin Cambridge and Peter Greaves, in their capacity as FTX Digital Markets liquidators said their agreement with Mr Ray will create one unified claims process designed to speed up the return of assets belonging to tens of thousands of creditors. The two sides said the deal is based on combining assets from both estates into a single pool with creditors able to select where they will submit their claim - The Bahamas or Delaware. Double dipping, or submitting claims in both jurisdictions, will not be permitted.

The agreement will see the local trio “take the operational lead” in seeking to recover assets for creditors and investors via the sale of $256m worth of highend Bahamian real estate acquired by FTX in developments such as Albany, GoldWynn and One Cable Beach. And Mr Simms and his PwC colleagues will also be “pursuing specific litigation and avoidance actions” under their agreement with Mr Ray in a bid to further maximise recoveries for creditors. Included among these targets are likely to be the 1,500 “Bahamian” investors who collectively got $100m out at the time FTX collapsed, which violated both Supreme Court and Chapter 11 asset freezes. Sir Franklyn, meanwhile, said the fact The Bahamas did not appear to lose substantial digital assets and financial services business as a result of FTX’s collapse meant the country can treat the settlement agreement and outcome as “a win”. “Given the doom and gloom predictions at the start, I would say we beat expectations, and when you beat expectations it’s a win,” he told Tribune Business. “In these things, when there is no negative, when you don’t lose activity because of something that happens, that’s a win.

RIGHT-WING SOCIAL MEDIA PLATFORM PARLER PLANS TO RELAUNCH EARLY NEXT YEAR NEW YORK Associated Press THE social media platform Parler, which caters to right-wing voices and was temporarily booted offline following the Jan. 6 insurrection, is relaunching ahead of next year's presidential elections. The new owners of the company announced this week the platform is preparing for a "powerful resurgence" that emphasizes "a return to its roots as a robust marketplace of ideas." Parler has been offline since April, when it was purchased by the digital media conglomerate Starboard for an undisclosed sum. Ye, the rapper formerly known as Kanye West, had also offered to buy the company beforehand, but the agreement collapsed late last year. The company's new owner is a limited liability corporation known as PDS Partners. Elise Pierotti, who is returning as the platform's chief marketing officer, said PDS consists of herself, Parler's new CEO Ryan Rhodes and others who are choosing to remain anonymous. Jaco Booyens, an anti-sex trafficking activist, will serve as the chief strategy officer. Pierotti did not disclose the terms of the deal. She said it was finalized last week and expects the platform to relaunch in the first quarter of next year. Parler had always had a small user base even among right-wing and libertarianfocused apps that marketed themselves as havens for free speech. The platform struggled to return online after Amazon stripped it of web-hosting service in early 2021 over its unwillingness to remove

posts inciting violence. Pierotti said Parler will no longer be using Amazon's cloud service AWS. Instead, she said it will rely on other technology including a "hyper-scaled private cloud." "As a new company we prefer to not be associated

with those events and have taken the steps to combat those issues" with moderation services, she said. Google and Apple had also removed Parler's app from their online stores after the insurrection. They later allowed it to return.

“We have to be realistic in how we define a win. The mere fact we did not lose, that’s the win. If you go back to the predictions when this thing started, the prediction was we would lose. To get to this agreement, the other side [Mr Ray] had to concede he was wrong on something. That’s a win. The mere fact we are in a situation where we did not lose because of this thing, that’s a win.” Sir Franklyn said he also “trusts” that events will encourage those who voiced fears The Bahamas’ reputation will be irretrievably damaged by the FTX debacle to “be a little slower in arriving at a point that places us in a negative context”. He added: “The fact of the matter is we are a serious jurisdiction, we have responsible regulators, we are a country with an independent judiciary, so when these things happen hopefully today’s outcome will give more of us additional confidence to trust our strengths as opposed to expressing ourselves on what may be perceived as weaknesses...

“Let’s hope that we do not have more liquidations because, at the end of the day, that somebody has failed and something went wrong. I don’t want to hope for more liquidations but, to the extent should they happen, we can make the point The Bahamas is a fit and proper jurisdiction.” Sir Franklyn knows some of what FTX’s Bahamian liquidators have been through. He served as liquidator for Commodore Computers, which in the 1980s and early 1990s was arguably that industry’s biggest name, and he and his attorney, the late Paul Adderley, were able to reach an agreement with US creditors over how the company was to be wound-up. “I was the courtappointed liquidator for Commodore Computers in the early 1990s, which at one time was one of the world’s biggest names,” Sir Franklyn recalled to this newspaper previously. “The fact of the matter is that The Bahamas survived Commodore Computers. It was a New York Stock Exchange listed company, truly a global company

when that matter came up as being settled in the courts of The Bahamas. “We had dozens of attorneys, maybe hundreds, in the courts. The creditors committee of the US subsidiary came to The Bahamas, objected to The Bahamas being the centre for the liquidation. It’s the same issue here. We got through that. Myself, Paul Adderley and the creditors committee, we were able to negotiate an agreement where the liquidation proceeded in both jurisdictions. The same problem here. “When people come here they must see competent judges. They must see competence within the judiciary. That’s what they must see. They must see our regulators holding the line. They must see that in our attorneys in The Bahamas they are equal to those on Wall Street or Bay Street, Toronto. That’s what they must see. They must see competence.” Asked yesterday about the parallels and similarities between FTX and Commodore Computers, Sir Franklyn said: “History has a way of repeating itself. We were a strong and robust jurisdiction then, and The Bahamas is a strong and robust jurisdiction now.”

PAGE 10, Thursday, December 21, 2023

THE TRIBUNE

URCA proposes 20% expansion in budget FROM PAGE B1 operating costs and fee income will both have risen by close to $3m. “Overall, URCA proposes an increase to its 2023 operating budget approximately 20 percent compared to 2023,” the regulator confirmed in its annual plan, with staff compensation set to increase by 13.1 percent or around $420,000 to $3.615m. “Notwithstanding an increase in URCA’s staff

count (one) anticipated for budget year 2024, increases in base pay and the attendant increases in benefits - health insurance, pension and gratuity costs - are the main drivers for the increase of 13 percent in staff costs,” URCA said. “Non-executive compensation decreased in budget year 2024 due to the settlement of legal action brought by the former non-executive director in the previous year. In budget year 2024, there is budgetary provision

for the settlement to two non-executive directors. Executive compensation increased by 10 percent due to the confirmation of the executive director, a nominal increase in base pay and associated benefits.” Elsewhere, URCA added: “Budgeted spending on professional services in 2024 will increase by 29 percent year-overyear due to new regulatory projects (specifically in the electricity sector) and continuation to completion of

2023 projects. Regulatory projects, including various surveys, reviews, market assessments and continued litigation before the Utilities Appeal Tribunal (UAT) and court for adjudication.” URCA’s budget for field operations is set to grow by 9 percent yearover-year as it plans to undertake greater monitoring “to ensure regulatory compliance by licensees”. However, general and administrative expenses are due to increase by 71 percent to $1.64m “due to increased bad debt due to continued non-payment of major licensees”. “In the prior year, bad debt was under budget, thereby requiring recovery of the deficit in the current year,” URCA added. As for other major line item increases in 2024, it added: “Premises costs and utilities [to] increase significantly by 80 percent year-over-year due to repairs planned for Frederick House, budgeting for an anticipated increase in utility rates and continued preventative maintenance projects... “Information technology is budgeted to increase by 22% percent due to acquiring additional productivity enhancement software licences and increased costs associated with external IT support.” Last year’s URCA budget increase, though, provoked an unhappy reaction from its licensees. Cable Bahamas blasted the 2023 increase as “an assault on the finances” of itself and other communications operators who will pay for it. The BISX-listed communications provider, in its response to last year’s draft annual plan, proclaimed itself “astounded” by the magnitude of the $1.26m year-over-year increase and demanded that URCA slash this jump

by more than 50 percent in percentage terms. Urging URCA to instead opt for a 5-10 percent budget increase, Cable Bahamas and its Aliv mobile affiliate said the days of communications operators being “a ‘cash cow’” were long over yet itself and the likes BTC are being expected to finance the rise via increased licence fees despite facing a variety of other cost and investment pressures. Cable Bahamas suggested the situation also exposed the folly of amending the URCA Act, the regulator’s governing legislation, which previously allowed it to retain any excess licence fees above those used to finance its budgeted operations and apply them to costs incurred in future years. However, the Act was reformed more than a decade ago, on July 1, 2013, to require that such sums instead be transferred to the Government’s Consolidated Fund to cover its general costs rather than being specifically used to finance communications industry regulation. And the BISX-listed provider argued that the increased licence fees needed to finance URCA also threaten to undermine the Government’s policy of import tariff waivers on communications equipment designed to incentivise investment by itself and other operators in 5G (fifth generation) technology and Family Island networks. When it came to URCA’s planned projects for 2024, the regulator pledged it will audit and review BPL’s fuel charge in the aftermath of huge customer bill hikes throughout 2023 to regain previously under-recovered fuel costs.

“This project aims to determine how the BPL fuel tariff is calculated and whether charges to customers since 2021 comply with the law and regulatory frameworks,” URCA said. “This project aligns with URCA’s mandate to ensure efficiently incurred costs, consumer protection, and efficient operation, per the Electricity Act. “By reviewing and auditing fuel tariffs, URCA can ensure that energy prices reflect reasonably incurred costs and are fair to consumers, supporting ‘goal two’ of the National Energy Policy.” As for its communications responsibilities, the regulator said the sector policy should be published by the “end of the first trimester” which puts the timing around April. “Since the last retail fixed market review was completed in 2014, there is a need to review the retail fixed markets, which include retail fixed voice, broadband and pay television services,” URCA said. “The review will assess the state of competition in those markets and whether existing regulations are fit for purpose. The project commenced in the third trimester of 2023 and is expected to be completed in 2024. “The project requires significant data from BTC and Cable Bahamas. Because of this, the project has been hampered by numerous delays due to both operators asking for extensions to submit the required data and the need to clarify submissions. “There have also been challenges with the reliability and accuracy of some of the operator data. Following a review of the fixed market, URCA may deem specific market remedies or regulations necessary.”

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NOTICE

KODO LIMITED Incorporated under the International Business Companies Act, 2000 of the Commonwealth of The Bahamas. Registration Number 209391 B (In Voluntary Liquidation) Notice is hereby given that the above-named Company is in dissolution, commencing on the 18th day of December A.D. 2023. Articles of Dissolution have been duly registered by the Registrar. The Liquidator is Mr. Ciro Ribeiro Iamamura, whose address is R Dr Tomas Carvalhal 555 Ap 171, CEP: 04006-001, Sao Paulo, SP, Brazil. Any Persons having a Claim against the above-named Company are required on or before the 30th day of December A.D. 2023 to send their names, 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 of any distribution made before such claim is proved. Dated this 18th day of December A.D. 2023. Ciro Ribeiro Iamamura Liquidator

Legal Notice

NOTICE LIGHTHOUSE GLOBAL STRATEGIC FUND LTD. NOTICE IS HEREBY GIVEN as follows: (a)

Lighthouse Global Strategic Fund Ltd. is in dissolution under the provisions of the International Business Companies Act, 2000

(b)

The dissolution of the said Company commenced on the 8th day of December 2023 when its Notice of Dissolution were submitted to and registered by the Registrar General.

(c)

The Liquidator of the said Company is Shareece Scott of Deltec Bank & Trust Ltd., Deltec House, Lyford Cay, P.O. Box N-3229, Nassau, Bahamas.

Shareece Scott Liquidator

THE TRIBUNE

Thursday, December 21, 2023, PAGE 11

North Eleuthera airport design ‘held’ over audit FROM PAGE B3

BABATUNDE FATAI, a cocoa farmer, holds a cocoa pod at a farm inside the conservation zone of the Omo Forest Reserve in Nigeria, Monday, Oct. 23, 2023. Farmers, buyers and others say cocoa heads from deforested areas of the protected reserve to companies that supply some of the world’s biggest chocolate makers. Photo:Sunday Alamba/AP

COCOA GROWN ILLEGALLY IN A NIGERIAN RAINFOREST HEADS TO COMPANIES THAT SUPPLY MAJOR CHOCOLATE MAKERS By TAIWO ADEBAYO Associated Press MEN in dusty workwear trudge through a thicket, making their way up a hill where sprawling plantations lay tucked in a Nigerian rainforest whose trees have been hacked away to make room for cocoa bound for places like Europe and the U.S. Kehinde Kumayon and his assistant clear low bushes that compete for sunlight with their cocoa trees, which have replaced the lush and dense natural foliage. The farmers swing their machetes, careful to avoid the ripening yellow pods containing beans that will help create chocolate, the treat shoppers are snapping up for Christmas. Over the course of two visits and several days, The Associated Press repeatedly documented farmers harvesting cocoa beans where that work is banned in conservation areas of Omo Forest Reserve, a protected tropical rainforest 135 kilometers (84 miles) northeast of the coastal city of Lagos in southwestern Nigeria. Trees here rustle as dwindling herds of critically endangered African forest elephants rumble through. Threatened pangolins, known as armored anteaters, scramble along branches. White-throated monkeys, once thought to be extinct, leap from one tree to the next. Omo also is believed to have the highest concentration of butterflies in Africa and is one of the continent's largest and oldest UNESCO Biosphere Reserves. Cocoa from the conservation zone is purchased by some of the world's largest cocoa traders, according to company and trade documents and AP interviews with more than 20 farmers, five licensed buying agents and two brokers all operating within the reserve. They say those traders include Singapore-based food supplier Olam Group and Nigeria's Starlink Global and Ideal Limited, the latter of which acknowledged using cocoa supplies from the forest. A fewer number of those working in the forest also mentioned Tulip Cocoa Processing Ltd., a subsidiary of Dutch cocoa trader and producer Theobroma. Those companies supply Nigerian cocoa to some of the world's largest chocolate manufacturers including Mars Inc. and Ferrero, but because the chocolate supply chain is so complex and opaque, it's not clear if cocoa from deforested parts of Omo Forest Reserve makes it into the sweets that they make, such as Snickers, M&Ms, Butterfinger and Nutella. Mars and Ferrero list farming sources on their websites that are close to or overlap with the forest but do not provide specific locations. Government officials, rangers and the growers themselves say cocoa plantations are spreading illegally into protected

areas of the reserve. Farmers say they move there because their cocoa trees in other parts of the West African country are aging and not producing as much. "We know this is a forest reserve, but if you are hungry, you go to where there is food, and this is very fertile land," Kumayon told the AP, acknowledging that he's growing cocoa at an illegal plantation at the Eseke farming settlement, separated only by a muddy footpath from critical habitat for what UNESCO estimates is the remaining 100 elephants deep in the conservation zone. Conservationists also point to the world's increasing demand for chocolate. The global cocoa and chocolate market is expected to grow from a value of $48 billion in 2022 to nearly $68 billion by 2029, according to analysts at Fortune Business Insights. The chocolate supply chain has long been fraught with human rights abuses, exploitative labor and environmental damage, leading to lawsuits, U.S. trade complaints and court rulings. In response, the chocolate industry has made wideranging pledges and campaigns to ensure they are sourcing cocoa that is traceable, sustainable and free of abuse. Companies say they have adopted supply chain tracing from primary sources using GPS mapping and satellite technology as well as partnered with outside organizations and thirdparty auditors that certify farms' compliance with sustainability standards. But those working in the forest say checks that some companies rely on are not done, while one certifying agency, Rainforest Alliance, points to a lack of regulations and incomplete data and mapping in Nigeria. AP followed a load of cocoa that farmers had harvested in the conservation zone to the warehouses of buying agents in the reserve and then delivered to an Olam facility outside the entrance of the forest. Staffers at Olam's and Tulip's facilities just outside the reserve, who spoke on condition of anonymity because they're not authorized to discuss their companies' supplies, confirmed that they source cocoa from farmers in the conservation zone. AP also photographed cocoa bags labeled with the names and logos of Olam and Tulip in farmers' warehouses inside the conservation zone. 'THEY BUY EVERYTHING' The Omo reserve consists of a highly protected conservation zone ringed by a larger, partially protected outer region. Loggers, who are also a major source of deforestation, can get government licenses to chop down trees in the outer areas, but no licenses are given anywhere for cocoa farming. Agriculture is banned from the conservation area, except for defined areas where up to

10 indigenous communities can farm for their own food. Nigeria is one of Africa's biggest oil suppliers and largest economy; after petroleum, one of its top exports is cocoa. It's the world's fourth-largest producer of cocoa, accounting for more than 5% of global supply, according to the International Cocoa Organization. Yet it's far behind the world's largest producers, Ivory Coast and Ghana, which together supply more than half of the world's demand and are often singled out in companies' sustainability programs. According to World Bank trade data and Nigeria's export council, more than 60% of Nigeria's cocoa heads to Europe and about 8% to the United States and Canada. It passes through many hands to get there: Farmers grow the cocoa beans, then brokers scout farms to

buy them. Licensed buying agents purchase the cocoa from brokers and sell it to big commodity trading companies like Olam and Tulip, which export it to chocolate makers. In October, AP followed a blue- and white-striped van loaded with bags of cocoa beans along a road pitted with deep mud holes within the conservation zone to an Olam warehouse just outside the entrance of the forest. At the warehouse, which Olam confirmed was theirs, AP photographed the cocoa being unloaded from the van, whose registration number matched the one filmed in the forest. Farmer Rasaq Kolawole and licensed buying agent Muraina Nasir followed the van to sell the cocoa, and neither expressed misgivings about the deforestation.

approach path indicator lights”. Dr Romer added: “The precision approach path indicator lights are being addressed now, but I think the main issue is what we communicate and how we communicate it.” The bidding process for the total $260m redevelopment of 14 Family Island airports will now see the Government undertake an “aggressive approach” as it targets opening an enhanced North Eleuthera airport in 2025. “The determinations have already been made at the policy level in respect to specific airports,” Dr Romer said. “They have now been prioritised, and the deputy prime minister has actually communicated what would be the most urgent priorities, but 2024 has been targeted to see some tangible action as it relates to the construction of airports.” Speaking about Bahamasair’s re-routing of a

plane that was bound for the North Eleuthera Airport, he added: “What had happened over the course of Tuesday was obviously Bahamasair would have had some challenges with two aircraft out of service that was seriously impacting their schedule. “So what we would have done was since revise the Bahamasair operational schedule. We’re changing the hours in both Marsh Harbour and Exuma to allow later departures and arrivals that will free-up aircraft again to really stay on schedule with Rock Sound.” The Christmas season is typically the peak time of the year for air travel, but keeping flights on schedule will be a tough ask for Bahamasair when planes are out of operation. “But there is a commitment from the entire aviation agencies, particularly the Bahamas Airport Authority and the Air Navigation Services Authority,” Dr Romer said.

PAGE 12, Thursday, December 21, 2023

THE TRIBUNE

OIL COMPANIES OFFER $382M FOR DRILLING RIGHTS IN GULF OF MEXICO IN LAST OFFSHORE SALE BEFORE 2025 By MATTHEW BROWN and MATTHEW DALY Associated Press

OIL platforms are visible through the haze near the Flower Garden Banks National Marine Sanctuary in the Gulf of Mexico, off the coast of Galveston, Texas, Sept. 16, 2023. Oil companies offered $382 million for drilling leases in the Gulf Wednesday after courts rejected the Biden administration’s plans to scale back the sale to protect an endangered whale species. Photo:LM Otero/AP

OIL companies offered $382 million for drilling rights in the Gulf of Mexico on Wednesday after courts rejected the Biden administration's plans to scale back the sale to protect an endangered whale species. The auction was the last of several offshore oil and gas lease sales mandated under the 2022 climate law. It comes as President Joe Biden's Democratic administration tries to navigate between energy companies seeking greater oil and gas production and environmental activists who want to stop new drilling to help combat climate change. Companies including Chevron, Hess and BP offered bids on more than 300 parcels covering 2,700 square miles (7,000 square kilometers), according to the U.S. Department of Interior's Bureau of Ocean Energy Management. The dollar amount of the successful bids marked a sharp increase from the previous sale in March 2023, when the Interior Department awarded leases covering about 2,500 square miles (6,500 square kilometers) for $250 million. The next sale will be conducted in 2025, to the frustration of energy companies and Republicans who say the administration is hampering U.S. oil production. Wednesday's online auction was originally scheduled for September but got delayed by a court battle after the administration reduced the area

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available for leases from 73 million acres (30 million hectares) to 67 million acres (27 million hectares) as part of a plan to protect the endangered Rice's whale. Chevron, Shell Offshore, the American Petroleum Institute and the state of Louisiana sued to reverse the cut in acreage and block the inclusion of the whaleprotecting measures in the lease sale provisions. A federal judge in southwest Louisiana ordered the sale to go on without the whale protections, which also included regulations governing vessel speed and personnel. Environmental groups appealed, but the New Orleans-based 5th Circuit Court of Appeals last month rejected their arguments against the sale and threw out the plans to scale it back. The lease sale was required under a compromise with Democratic Sen. Joe Manchin of West Virginia, a supporter of the oil and gas industry who cast the deciding vote in favor of the landmark climate law. The measure was approved with only Democratic votes in Congress. Under the terms negotiated by Manchin, the government must offer at least 60 million acres of offshore oil and gas leases in any one-year period before it can offer offshore wind leases that are part of its strategy to fight climate change. Only a small portion of parcels that are offered for sale typically receive bids, in areas where companies want to expand their existing drilling activities or where they foresee future development potential. The administration in September proposed up to three oil and gas lease sales in the Gulf of Mexico over the next five years and none in Alaska waters. That was the minimum number the administration could legally offer if it wants to continue expanding offshore wind development.

Environmental groups criticized the five-year plan as a "missed opportunity" to stop the expansion of oil and gas drilling in the Gulf of Mexico and address climate change. "New oil and gas operations (in the Gulf) will only bring more health risks to Gulf Coast communities and slow our transition to a clean-energy economy,'' said Earthjustice attorney Brettny Hardy. The industry, meanwhile, said more sales are needed — and sooner. "In our forward-thinking industry, securing new lease blocks is vital for exploring and developing resources crucial to the U.S. economy,'' said National Ocean Industries Association President Erik Milito. "The Gulf of Mexico is a prime economic engine and investment area, and this (lease sale) was the last chance for companies to secure leases in the near term.'' Holly Hopkins, API vice president of upstream policy, called Wednesday's sale "a "positive step after multiple delays,'' and noted that it generated the highest dollar value for bids in nearly a decade. The results demonstrate that the oil and gas industry "is working to meet growing demand and investing in the nation's long-term energy security,'' Hopkins said. "Just as today's record U.S. production was supported by investment and policy decisions made years ago, new leasing opportunities are critical for maintaining American energy leadership for decades to come.'' The administration's clean-energy ambitions have been hampered by recent project cancellations including two large wind projects shelved last month off the New Jersey coast and the earlier cancellation of three projects that would have sent power to New England.

Supreme Court will hear challenge to EPA rule limiting downwind power plant pollution in 10 states By MARK SHERMAN Associated Press THE Supreme Court will hear arguments in February on whether the Environmental Protection Agency can continue enforcing its anti-air-pollution "good neighbor" rule in 10 states, an effort to restrict smokestack emissions from power plants and other industrial sources that burden downwind areas with smogcausing pollution. The high court put off a decision on whether to halt enforcement of the rule Wednesday, allowing it to stay in effect at least until after it hears arguments during its February session. The rule is being challenged by three energyproducing states — Ohio, Indiana and West Virginia — as well as industry groups and individual businesses. The EPA declined to comment Wednesday, referring questions to the Justice Department. The Justice Department also declined to comment. The environmental agency said power-plant emissions dropped by 18% in 2023 in the 10 states where it has been allowed to enforce its rule, which was finalized in March. Those states are Illinois, Indiana, Maryland, Michigan, New Jersey, New York, Ohio, Pennsylvania, Virginia and Wisconsin. The rule is on hold in another dozen because of separate legal challenges. The other states are Alabama, Arkansas, Kentucky,

Louisiana, Minnesota, Mississippi, Missouri, Nevada, Oklahoma, Texas, Utah and West Virginia. In California, limits on emissions from industrial sources other than power plants are supposed to take effect in 2026. States that contribute to ground-level ozone, or smog, are required to submit plans ensuring that coal-fired power plants and other industrial sites don't add significantly to air pollution in other states. In cases where a state has not submitted a "good neighbor" plan — or where EPA disapproves a state plan — the federal plan was supposed to ensure that downwind states are protected. Ground-level ozone, which forms when industrial pollutants chemically react in the presence of sunlight, can cause respiratory problems, including asthma and chronic bronchitis. People with compromised immune systems, the elderly and children playing outdoors are particularly vulnerable. Environmental and public health advocates have praised the pollutioncutting plan as a life-saving measure for people who live hundreds of miles away from power plants, cement factories, steel mills and other industrial polluters. Industry groups criticized the plan as having an anticoal bias that would drive up the cost of electricity.

THE TRIBUNE

Thursday, December 21, 2023, PAGE 13

New York sues SiriusXM, accusing company of making it deliberately hard to cancel subscriptions NEW YORK Associated Press NEW York’s attorney general filed suit Wednesday against SiriusXM, accusing the satellite radio and streaming service of making it intentionally difficult for its customers to cancel their subscriptions. Attorney General Letitia James’ office said an investigation into complaints from customers found that SiriusXM forced subscribers to wait in an automated system before often lengthy interactions with agents who were trained in ways to avoid accepting a request to cancel service. “Having to endure a lengthy and frustrating process to cancel a subscription is a stressful burden no one looks forward to, and when companies make it hard to cancel subscriptions, it’s illegal,” the attorney general said in a statement. The company disputed the claims, arguing that many of the lengthy interaction times cited in the lawsuit were based on a 2020 inquiry and were caused in part by the effects of the pandemic on their operations. The company said many of its plans can be canceled with a simple click of a button online. “Like a number of consumer businesses, we offer

a variety of options for customers to sign up for or cancel their SiriusXM subscription and, upon receiving and reviewing the complaint, we intend to vigorously defend against these baseless allegations that grossly mischaracterize SiriusXM’s practices,” Jessica Casano-Antonellis, a company spokeswoman, said in a statement. The attorney general’s office cited affidavits in which customers complained of long waits in an automated system to chat with an agent, only to endure lengthy attempts to keep their business. It takes subscribers an average of 11.5 minutes to cancel by phone, and 30 minutes to cancel online, although for many subscribers it takes far longer, the attorney general’s office said. During 2019 and 2021, more than 578,000 subscribers seeking to cancel by telephone abandoned their efforts while waiting in the queue to be connected to the live agent, according to the lawsuit. “When I finally spoke to the first customer representative and explained that I had been waiting nearly half an hour, I was promptly hung up on. Which means I had to wait again. Another 30 minutes, just to cancel a service I would have

NOTICE NOTICE is hereby given that KALEB KALIX, McKinney Drive off Carmichael Road, Nassau, The Bahamas 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 14th day of December 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE NOTICE is hereby given that ANJULIA KALIX, McKinney Drive off Carmichael Road, Nassau, The Bahamas 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 14th day of December 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE NOTICE is hereby given that JEAN-ROBERT ST JEAN of Marsh Harbour, 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 twentyeight days from the 21st day of December, 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE Pursuant to the provisions of Section 138 (4) (a), (b) and (c) of the International Business Companies Act, 2000, notice is hereby given that Gas Management (Congo) Ltd. (Formerly Providence Transport Company Limited (“the Company”) is in dissolution. The date of commencement of the Company’s dissolution is 14 December 2023, the date when the Articles of Dissolution were submitted to and registered by the Registrar General’s Department. The Liquidators of the Company are Mr. Mark E. Munnings and Ms. Tiphaney C. Russell of Deloitte & Touche, Dehands House, 2nd Terrace West Centreville, P.O. Box N-7526, Nassau, The Bahamas. All persons having claims against the Company are required on or before 19 January 2024, to send their names and addresses and particulars of their debts or claims to the Company’s Liquidators. In default thereof, they may be excluded from the benefit of any distributions made before such debts are proved. Dated this 20th day of December 2023 Mark E. Munnings and Tiphaney C. Russell Liquidators

NEW York Attorney General Letitia James speaks to the media, Nov. 6, 2023, in New York. New York’s attorney general filed suit Wednesday, Dec. 20, against SiriusXM, accusing the satellite radio and streaming service of making it intentionally difficult for its customers to cancel their subscriptions Photo:Ted Shaffrey/AP

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preferred to cancel online,” one customer wrote in an affidavit. The company said that in 2021, on average, online chat agents responded to consumer messages within 36 seconds to 2.4 minutes.

The lawsuit seeks financial penalties, including compensation for the time customers spent online during what the attorney general called “a deliberately lengthy” cancellation process.

PUBLIC NOTICE INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, DE ANDRA CHRISTIANA DORSETT of P.O Box Hamster Road, Nassau, Bahamas, intend to change my name to DEANDRA CHRISTIANA DORSETT. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

The Tribune wants to hear from people who are making news in their neighbourhoods. Perhaps you are raising funds for a good cause, campaigning for improvements in the area or have won an award. If so, call us on 322-1986 and share your story.

NOTICE NOTICE is hereby given that WISNY JEAN PIERRE, #1 Armbrister Street, The Bahamas 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 21th day of December 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE

NOTICE is hereby given that ROSE DJINA ETIENNE, Ross Corner Nassau, The Bahamas 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 14th day of December 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE is hereby given that BRIZAN SHAMELIA GATHERIE, Pih Street, Habour Island, The Bahamas 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 14th day of December 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

PAGE 14, Thursday, December 21, 2023

THE TRIBUNE

Musk and Tesla are battling unions across Scandinavia. What comes next in the labor dispute? By KELVIN CHAN AP Business Writer

TESLA vehicles charge at a station in Emeryville, Calif., Aug. 10, 2022. Tesla has found itself locked in an increasingly bitter dispute with union workers in Sweden and neighboring countries. The showdown pits the electric car maker’s CEO Elon Musk, who’s staunchly anti-union, against the strongly held labor ideals of the Nordic countries. Photo:Godofredo A. Vásquez/AP

TESLA has found itself locked in an increasingly bitter dispute with union workers in Sweden and neighboring countries. The showdown pits the electric car maker's CEO Elon Musk, who's staunchly

anti-union, against the strongly held labor ideals of Scandinavian countries. None of Tesla's workers anywhere in the world are unionized, raising questions about whether strikes could spread to other parts of Europe where employees commonly have collective bargaining rights — notably in Germany, Tesla's most important European market. Here are key things to know about the union fight: About 130 mechanics at 10 Tesla garages across Sweden walked off the job on Oct. 27 over the company's refusal to sign a collective bargaining agreement. Tesla doesn't have a factory in Sweden, but does have a network of service centers. Since the mechanics with the powerful Swedish metalworkers' union IF Metall went on strike, other workers around the country have joined in sympathy, withholding their services to pressure the company. Members of the country's transport union say they'll stop collecting waste from Tesla service centers starting Sunday. Employees with supplier Hydro Extrusions, which makes aluminum profiles, are refusing to make a component for Tesla cars. Other unions say their members won't paint Tesla cars, clean the company's offices or service electrical systems at its workshops or any of its 70 charging stations in Sweden. Postal workers have stopped delivering license plates for new Tesla vehicles, prompting Tesla to sue the Swedish Transport Agency, demanding that it be allowed to retrieve the plates, and PostNord, the company that delivers the registration numbers. Tesla lost an early battle in the case, which is still working through the courts. The boycott has escalated by spreading to neighboring Nordic countries. Like in Sweden, dockworkers in Denmark won't unload Tesla vehicles arriving at ports. Unions in Finland and those in Norway have warned that workers at ports and workshops will join the strike if the dispute isn't resolved by Wednesday. A group of 16 institutional investors including KLP, Norway's biggest pension fund, and PensionDanmark, have written to Tesla board chair Robyn Denholm. They have urged the company to reconsider its approach to unions and asked for a meeting to discuss it further. PensionDanmark has sold its 476 million kroner ($70 million) stake in the carmaker, saying it's putting Tesla on its blacklist "in the light of the conflict spreading to Denmark and Tesla's latest and very categorical denial to reach collective agreements in any country." Paedagoernes Pension, Denmark's teachers' pension fund, sold its 242 million kroner ($35 million) stake in Tesla because it "cannot compromise" on its core values, CEO Sune Schackenfeldt said in a statement. The fund discussed workers' rights with Tesla in March, but Musk's "hard course against the Nordic trade union movement" makes continued investment unsustainable, it said. Sweden is one of the most highly unionized countries in Europe, with nine in 10 workers covered by collective agreements. Across Scandinavia, trade unions and employers negotiate deals on wages and working conditions, with almost no involvement from the state. It's a system that originated in the 1930s and is widely acknowledged as the backbone of a labor market model that has helped workers benefit

from decades of economic prosperity. The system results in fewer strikes than in other countries like France and Germany, because negotiations are the first avenue to resolve disputes. Tesla's attempts to secure a quick win in the license plate clash through Swedish courts "appears to be having precisely the opposite impact, making unions more steadfast and creating sympathetic actions across the country," said Matthias Schmidt, an independent auto analyst. Collective agreements allow "for companies to operate on a level playing field, while avoiding the risk of any one employer distorting competition in the sector by imposing poor conditions on their employees," the IF Metall union says. In a famous example of this model's success, the Toys R Us toy chain started up in Sweden in 1995 and hired only nonunion workers. The chain refused to sign such collective agreements. It resulted in a three-month strike by the retail employees union that snowballed into an all-out boycott as other Swedish unions joined in sympathy strikes. The company eventually agreed to sign collective deals. He's never hidden his disdain for unions, writing, "this is insane," on his social media platform X, formerly known as Twitter, in response to a tweet about Swedish postal workers refusing to deliver license plates. In the U.S., Musk has picked online fights with the United Auto Workers and vehemently battled union legal challenges to his company's actions. "I disagree with the idea of unions," Musk said in a November onstage interview with The New York Times. "I just don't like anything which creates kind of a lords and peasants sort of thing." Musk, the world's wealthiest person, said that unions try to create negativity in a company, denying that Tesla has a wealth hierarchy largely because the company awards everyone stock options. "Everyone eats at the same table. Everyone parks in the same parking lot," he said. Musk has accused the UAW of driving General Motors and Chrysler into bankruptcy, costing many workers their jobs. He said that if Tesla becomes unionized, "it will be because we deserve it and we've failed in some way." Tesla didn't respond to a request for comment. Watching from the sidelines are labor organizers in Germany, where Tesla opened its first European gigafactory in 2022. The plant in Grunheide, southeast of Berlin, employs 11,000 people. It makes both batteries and Model Y SUVs. Germany is the company's biggest market in Europe, selling 55,000 vehicles so far this year, three times as many as in Sweden, according to data from Schmidt. Labor organizers are on a union drive to sign up Tesla workers and say the numbers are rising quickly. Workers and unions in Germany are banned from joining sympathy strikes, but that might "act as a catalyst to German Tesla production line workers to join local unions that can strike a good deal for them," Schmidt said. Germany's IG Metall union says it's concerned about occupational safety at the plant and has fielded reports from "numerous employees" about accidents and health problems that resulted in high staff sickness rates.

THE TRIBUNE

Thursday, December 21, 2023, PAGE 15

STOCK MARKET TODAY

Wall Street slams the brakes for a rare slowdown following record-setting rally By STAN CHOE AP Business Writer WALL Street hit the brakes on its big rally Wednesday following disappointing profit reports from companies and warnings that the market had simply gone too far, too fast. The S&P 500 slumped 1.5% for its worst loss since beginning a monster-sized rally shortly before Halloween. The Dow Jones Industrial Average dropped 475 points, or 1.3%, from its record high, while the Nasdaq composite sank 1.5% FedEx tumbled 12.1% for one of the market's biggest losses after reporting weaker revenue and profit for the latest quarter than analysts expected. It also now expects its revenue for its full fiscal year to fall from year-earlier levels, rather than being roughly flat, because of pressures on demand. The package delivery company pumps commerce around the world, and its signal for potentially weaker demand could dim the hope that's fueled Wall Street's recent rally: that the Federal Reserve can pull off a perfect landing for the economy by slowing it enough to stifle high inflation but not so much that it causes a recession. Winnebago Industries also fell short of analysts' profit expectations for the latest quarter. The maker of motorhomes and other recreational products said it sold fewer units than a year earlier because of "market conditions" and had to offer higher discounts. Its stock dropped 5.6%. General Mills, which sells Progresso soup and Yoplait yogurt, reported stronger profit for the latest quarter than expected, but its revenue fell short as a recovery in its sales volume was slower than expected. The company said a key sales measure may now fall for its full fiscal year because of "a more cautious consumer economic outlook" and other factors. Its stock fell 3.6%. Still, a pair of reports showed the U.S. economy may be in stronger overall shape than expected. Both confidence among consumers in December and sales of previously occupied homes in November improved more than economists had expected. Encouraging signs that inflation is cooling globally also continue to pile up. In the United Kingdom, inflation in November unexpectedly slowed to 3.9% from October's 4.6% rate, reaching its lowest level since 2021. Easing rises in prices are raising hopes that central banks around the world can pivot in 2024 from their campaigns to hike interest rates sharply, which were meant to get inflation under control. For the Federal Reserve in particular, the general expectation is for its main interest rate to fall by at least 1.50 percentage points in 2024 from its current range of 5.25% to 5.50%, which is its highest level in more than two decades. Treasury yields have been tumbling since late October on such hopes, and they fell again following the U.K. inflation report. The yield on the 10-year Treasury dropped to 3.85% from 3.93% late Tuesday. It had been above 5% in October, at its highest level since 2007 and putting harsh downward pressure on the stock market. Lower interest rates and yields not only help the economy grow by making borrowing less expensive, they also boost prices for investments and relax the pressure on the overall financial system. That has helped the S&P 500 to climb back within 2% of its record set nearly two years ago. Wall Street's main

benchmark index also just came off its seventh straight week of gains, its longest such streak in six years. "The market pendulum has swung from extreme pessimism less than two months ago to extreme optimism," said Mark Hackett, chief of investment research at Nationwide. The strength and length of that rally raised criticism that stocks have simply rallied too much, with several strategists on Wall Street forecasting at least a pause in the short term. It's still not certain whether the Fed can pull off what was seen as a nearly impossible tightrope walk for the economy. And critics say the number of cuts to rates that Wall Street is forecasting for 2024 seems unlikely unless the economy falls into a recession, which would hurt corporate profits and thus stock prices. Some officials from the Federal Reserve have also made recent comments saying it's too early to consider a cut to rates in March, which is when traders largely expect them to begin, according to data from CME Group. Wednesday's losses in the stock market were widespread, and roughly 95% of companies within the S&P 500 dropped. All told, the S&P 500 fell 70.02 points to 4,698.35. The Dow dropped 475.92 to 37,082.00, and the Nasdaq sank 225.28 to 14,777.94.

In stock markets abroad, the FTSE 100 in London rose 1% following the encouraging U.K. inflation report. Indexes also rose across much of Asia, but stocks fell 1% in Shanghai after China kept its benchmark lending rates unchanged at the monthly fixing on Wednesday.

A PERSON walks in front of an electronic stock board showing Japan’s Nikkei 225 index at a securities firm Wednesday, Dec. 20, 2023, in Tokyo. Wall Street ticked higher Wednesday amid hopes that moves by Japan’s central bank to keep interest rates easy for investors could be a preview for the rest of the world. Photo:Eugene Hoshiko/AP

PAGE 16, Thursday, December 21, 2023

THE TRIBUNE

A RITE Aid sign is displayed on the facade of a store in Pittsburgh, Jan. 23, 2023. Rite Aid has been banned from using facial recognition technology for five years over allegations that a surveillance system it used incorrectly identified potential shoplifters, especially Black, Latino, Asian or female shoppers. The deal announced late Tuesday, Dec. 19, settles Federal Trade Commission charges that the struggling drugstore chain didn’t do enough to prevent harm to its customers and implement “reasonable procedures,” the government agency said. Photo:Gene J. Puskar/AP

RITE AID BANNED FROM FACIAL RECOGNITION TECH USE FOR 5 YEARS AFTER FAULTY THEFT TARGETING IN STORES By TOM MURPHY AP Health Writer RITE Aid has been banned from using facial recognition technology for five years over allegations that its surveillance system was used incorrectly to identify potential shoplifters, especially Black, Latino, Asian or female shoppers. The settlement with the Federal Trade Commission addresses charges that the struggling drugstore chain didn't do enough to prevent harm to its customers and implement "reasonable procedures," the government agency said. Rite Aid said late Tuesday that it disagrees with the allegations, but that it's glad it reached an agreement to resolve the issue. The FTC said in a federal court complaint that technology used by Rite Aid for several years led to thousands of incorrect matches, including an incident where Rite Aid store employees

stopped and searched an 11-year-old girl. Rite Aid used facial recognition technology in hundreds of stores from October 2012 to July 2020 to identify shoppers "it had previously deemed likely to engage in shoplifting or other criminal behavior," the FTC said. The company didn't tell customers that it was using the technology. It was installed at store locations in New York City, Baltimore, Philadelphia, Los Angeles and San Francisco, among other cities. Cameras would target customers as they entered the store or moved through it, the complaint said. The technology would then compare the live images with a database. The complaint noted that many images it used for its database were low-quality, coming from security cameras, employee phone cameras and news stories in some cases. The technology sent alerts to Rite Aid employees either by email

or phone when it identified people entering the store on its watchlist. The FTC said in its complaint that store employees would then follow those people, order them to leave or call police. Federal officials also said employees would accuse people in front of friends, family and other customers of previously committing crimes. The federal complaint said Rite Aid failed to test the accuracy of its technology before using it. Rite Aid says the allegations center on a pilot program it used in a limited number of stores, and it stopped using this technology more than three years ago. "We respect the FTC's inquiry and are aligned with the agency's mission to protect consumer privacy, the company said in a statement posted on its website. "However, we fundamentally disagree with the facial recognition allegations in the agency's complaint."