business@tribunemedia.net
THURSDAY, JANUARY 25, 2024
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Business Licences: Up to 20% facing extra scrutiny By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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UP to one in five Business Licence filings are facing extra scrutiny by the tax authorities, it was revealed yesterday, with construction, landscaping and “home based” auto dealers causing particular concern. Dexter Fernander, the Department of Inland Revenue’s (DIR) operations manager, told Tribune Business the agency is especially zeroing in on “discrepancies” where there is a “15 percent or more variance” between a company’s Business Licence turnover figures and that derived from their VAT filings. With the Department able to calculate a company’s annual turnover based on its VAT payments, he signalled that it is using this and other “third party databases” made accessible via its upgraded tax administration
portal to “cross-check” and better verify the accuracy and integrity of Business Licence filings. Revealing that the Government’s main revenue agency is “a little concerned” about specific industries, Mr Fernander told this newspaper it was working to try and understand how sub-contractors in the construction industry can be reporting higher annual turnovers than the main project contractors who hired them.
And he disclosed that he is “delving into” the operations of road-side ‘Mom and Pop’ automobile vendors. Mr Fernander said that, while vehicles acquired at overseas auctions were being imported under company names, the individuals involved are often deny that their money is involved and, instead, allege that they are acting merely as agents for buyers who wire money to them in their name. “We have asked individuals to be more realistic and truthful,” he told Tribune Business
of Business Licence declarations. “Why are you declaring zero turnover for three consecutive years. If you are a landscaping company, how are you paying your staff on zero turnover? “We’re looking at maybe 15-20 percent [of Business Licence] applications that we have to offload and do some research into. Those that have discrepancies and have variances of more than 15 percent, or persons reporting the same turnover for the last three years and no supporting documents, or uploaded information to justify why turnover is zero.....” Mr Fernander explained that the 15 percent referred to the magnitude of the difference between a company’s annual turnover, as calculated via its VAT returns and payments, and the turnover figure submitted for calculating its annual Business Licence fee.
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Albany chief faces ‘largest insider trading’ fine for decade at $50m By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas-based billionaire who led Albany’s development will pay “the largest financial penalty for insider trading in a decade” at $50m after he yesterday pleaded guilty to perpetrating a securities fraud. Joe Lewis, the UK national who has been a Bahamas and
Lyford Cay resident since 1979, admitted that he was “so embarrassed” as he pled guilty before a Manhattan federal judge to insider trading and related conspiracy charges levied against him by US government attorneys. The 86 year-old also confessed that he knew what he did was wrong after tippingoff lovers, secretaries, friends and even his private pilots to purchase or offload various
corporate stocks using nonpublic information he accessed in his role as a major global investor. Mr Lewis, whose family trust is also majority owner of Tottenham Hotspur, the English Premier League club, told Judge Jessica G.L. Clarke that he agreed in 2019 to share secrets he knew about publicly-traded companies with
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JOE LEWIS
‘Moral imperative’ to boost financial watchdog’s staff By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government’s top financial watchdog has warned that “insufficient” staffing and resources are undermining its ability to protect Bahamians and hold successive administrations to account. Terrance Bastian, the Auditor General, writing in his office’s report on the Government’s finances for the 2020-2021 fiscal year, revealed his team was challenged to conduct “comprehensive and timely audits” on more than 55 ministries, public agencies and state-owned enterprises (SOEs) because it was 42 percent under-staffed.
The Auditor General’s Office finished that year with just 47 staff, as opposed to the authorised 81, leaving some 34 vacancies including the two senior deputy auditorgeneral posts that remained unfilled. Of the three authorised deputy auditor generals, just one post was filled, while there were only two of the required three assistant auditor generals on staff. As a result, Ms Bastian urged the Government to “allocate a dedicated Budget to address the staffing gap” within his office, arguing that such an investment was “not just a responsible fiscal choice but
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FTX peace terms approved by Bahamas and Delaware By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE peace deal between FTX’s Bahamian liquidators and their former US adversary has been approved by both the Supreme Court and Delaware Bankruptcy Court, it has been revealed. Judge John Dorsey yesterday signed an Order, seen by Tribune Business, approving the terms of the global settlement agreement between Brian Simms KC, the Lennox Paton senior partner, and PricewaterhouseCoopers (PwC) accounting duo, Kevin Cambridge and Peter
BRIAN SIMMS KC Greaves, in their capacities as FTX Digital Markets liquidators and John Ray. This newspaper also understands that Justice Loren Klein gave the
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Unpaid property taxes hit $690m at mid-2021 t %FTQJUF CFBUJOH UIBU ZFBS T UBSHFU CZ OFBS N t "VEJUPS (FOFSBM VSHFE ABHHSFTTJWF DPNQMJBODF t 5BY SPMM HSFX CZ QSPQFSUJFT JO mWF ZFBST By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net UNPAID real property tax arrears totalled $690m at end-June 2021 despite exceeding target by 37 percent that fiscal year, the Government’s top financial watchdog revealed yesterday. Terrance Bastian, the auditor general, in his report on the GovTERRANCE ernment’s finances for BASTIAN 2020-2021, which was tabled in the House of Assembly yesterday, urged the authorities to launch “aggressive compliance efforts and revenue enhancement initiatives” to slash an outstanding tax sum that was estimated to have grown by a further $79.41m that fiscal year. The Davis administration will likely argue it has done just that through the Department of Inland Revenue’s crackdown on foreign-owned and commercial property tax deadbeats, where it last year threatened to exercise its “power of sale” to seize, then selloff, real estate owned by chronic delinquents who have made no effort to pay for years. While it is unclear whether these warnings have had the desired effect, the Auditor General’s report for 2020-2021 suggested the effort led by US-based Tyler Technologies to properly map New Providence had increased the total number of properties on the tax roll by almost 24,000 - or 23.3 percent - to 126,317 over the five years to end-June 2021.
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THE TRIBUNE
How to boost online client engagement T rying to capture new customers can sometimes become challenging, especially is you are using Facebook and other social media platforms as your tools. This has been an issue for a while, prompting companies to invent new strategies to keep their numbers up. Facebook’s algorithm could easily be blamed as the culprit. However, other explanations have been cited for the decline in persons reached via social media. It is said that posting countless contents can also be attributed to low visibility. For example, if your business has 100,000 followers, and you have only a 6 percent reach, just 6,000 of them will see your content and perhaps not like,
Algorithm
Facebook’s algorithm has grown increasingly strict, controlling what is to be shown and to whom. Inspire engagement
By
DEIDRE
BASTIAN share or comment. This may not seem fair, but there are a few adjustments that can be made to improve engagement.
Just because a business representative makes a post, it does not mean that viewers want to automatically engage. Sometimes, while browsing, viewers may discover your business advertisement or link and still wish not to engage simply because your content may not be inspiring. Affinity posting Another notable factor is Facebook’s algorithm ranking, which drives familiarity engagement and the timing system. Just as time can affect the visibility of your content, not posting
regularly can also cause the affinity of the follower to fade. Consistent posting
If your business advertises six times per day, the average follower may still only see a few of your posts despite your consistency. Lacking creativity and wrong followers Is your event advertisement compelling or inviting? Well, I am sure you would say it is, but your viewers will be the judge. Bland content that lacks substance may be considered as air bags that followers will not care to view, which sadly impacts the integrity of your business. Foster engagement
Content that attracts engagement is one factor, but if viewers leave comments or questions that are never addressed, this may translate into a loss of credibility for your entire business concept. Media
Photo posts are slowly declining, and giving way to popular media links, videography and numerous multi-media apps for exciting presentations. This observation has even sparked a competition between Facebook and YouTube, which has been trending. Business page sponsor Despite a 6 percent decrease in viewings when your business page grows in audience, there is still that option to sponsor
mileage to gain more page views. Competitor challenge Finally, if your business content is still not garnering viewers, it is possible that a competitor’s content strategy in your same niche may be more gripping and interesting. Surely that is a principle in business. Until we meet again, fill your life with memories rather than regrets. Enjoy life and stay on top of your game. UÊ \Ê Õ ÃÌÊ welcomes feedback at deedee21bastian@gmail.com Deidre M. Bastian is a professionally-trained Graphic Designer/Brand Marketing Analyst, International Award-winning Author and Certified Life Coach
AVIATION DIRECTOR MOVES ON STRATEGIC PLAN FOR INDUSTRY AVIATION Strategic Plan Meeting.
THE Bahamas’ aviation director has met with industry operators and agencies in a bid to advance the Government’s 2024 strategic plan for the sector. Dr Kenneth Romer, who is also the deputy directorgeneral of tourism, said in a statement: “2023 was an exceptional year for aviation, and the ‘Vision 2024’ builds upon that foundation by focusing on five big ticket items that include improving airport infrastructure; enhancing human capital development; enhancing strategic partnerships engagement; increasing airlift connectivity; and improving operational efficiency and financial resilience.” Participating stakeholders included the Air Accident Investigation Authority; Airport Authority; Bahamasair; Bahamas
DIRECTOR of Aviation and Deputy Director General of Tourism Dr. Kenneth Romer.
Air Navigation Services Authority; Civil Aviation Authority; Freeport Airport Development Company; Nassau Airport Development Company; Nassau Flight Services; Jet Nassau; Odyssey Aviation; Airlines Operating Committee; and Bahamas Association of Air Transport Operators.
The meeting was held on Friday, January 19. A series of stakeholder meetings will be held over the next several weeks to ensure that the strategic plan is understood by the entire aviation sector in what is being described as a year of “innovation, acceleration and execution”.
Bahamian designer creates outfits for Disney cruise site DISNEY Cruise Line (DCL) yesterday said a Bahamian fashion designer is working with its artists to create new outfits for Mickey Mouse, Minnie Mouse and their pals to wear at its new Bahamas location. Theodore Elyett was selected to design the new looks that Disney’s iconic characters will wear at Disney Lookout Cay at Lighthouse Point, located on south Eleuthera’s tip, when it opens to guests in June. “The Bahamian community has played a special role in this project since the beginning, and Theodore Elyett is the perfect collaborator on these distinctly Bahamian styles for our beloved Disney characters,” said Janet Spidell, costuming producer for Disney Live Entertainment. “He has taught us so much about the history and traditions of Junkanoo, and is helping us tell the story of Bahamian culture through his creative designs.” Disney said its characters’ new looks are inspired by the natural environment and designed to celebrate the culture and spirit of The Bahamas. The collection is intended to depict the bright, colourful spirit of Junkanoo, which Mr Elyett has named, ‘Junkanoo Fun in the Sun’. Mickey Mouse’s style features graphic, pop art conch
A TROPICAL beach setting with splashing fountains, dining and recreational spaces, and several pavilions. shells in bright, bold colours. Minnie Mouse’s look is inspired by a Junkanoo straw doll, complete with a straw bag embellished with the symbol of Eleuthera: A golden pineapple. Mr Elyett will also design special styles for Donald Duck, Daisy Duck, Goofy, Pluto, Chip and Dale – all taking inspiration from Junkanoo, while matching the personalities of each character. “I envisioned creating a collection that highlights Bahamian culture, celebrates the beauty of The Bahamas and is beautifully tailored to each character,” Mr Elyett said. “I remember visiting Disney early in my design journey as a child, and now seeing my favourite Disney characters wearing my designs feels like a full circle moment.” Mr Elyett grew up in Nassau, where he was surrounded by art and fashion,
and started making dresses at an early age. His designs first hit the runway when he was 13 years-old, and he went on to design for Miss Bahamas and Miss Bahamas Universe contestants in addition to celebrities and government officials. Disney said its Lighthouse Point location has created more than 600 constructionrelated roles – more than quadrupling the number of jobs it committed to in its Heads of Agreement – and will create at least 150 wellpaying full-time posts. It added that it is also committed to providing space for Bahamian vendors for the sale of authentic, high-quality Bahamian retail goods, services, souveniurs, arts, crafts and more. Vendors and suppliers interested in providing goods and services at Disney Lookout Cay at Lighthouse Point may contact dcl.bahamas@disney.com.
THE TRIBUNE
Thursday, January 25, 2024, PAGE 3
VACATION RENTAL CONCERN OVER US CRIME WARNING streets. Retaliatory gang violence has been the primary motive in 2024 murders. “Actions to Take: Exercise extreme caution in the eastern part of New Providence island (Nassau). Use caution when walking or driving at night; keep a low profile; be aware of your surroundings; do not physically resist any robbery attempt; review your personal security plans.” The manager of a villa in eastern New Providence, though, said he is not concerned about the advisory as the majority of his clients are domestic. He added that the US should be doing more to ensure persons are not smuggling weapons into The Bahamas. “If the United States was to stop these fellas in the States from sending guns to
these little countries, and persons smuggling them in all the time on these private yachts. That’s where a lot of them come from. We don’t have any gun manufacturers in this town. If we were shipping weapons to the United States they would’ve done something long time,” he said. Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, last week indicated that The Bahamas is “a safe place” and he was not concerned about the increase in violent crimes affecting the tourism industry, He added that police are putting strategies in place to combat crime while his ministry is focused on building the tourism product in New Providence and the Family Islands.
Mr Cooper said: “No, I’m not concerned. I met today with the Commissioner of Police for the weekly briefing. I am confident that they are putting in place strategies that we all will be equally confident in, hopefully very soon. “The Bahamas is a safe place. When we do reviews abroad this isn’t something that comes up on the radar at all. So we’re focused on continuing to build the product, really to grow opportunities for our guests to enjoy downtown Nassau as well as the rest of the islands of The Bahamas. “We have a magnificent archipelago, we have a magnificent region in the Caribbean with our 16 Island destinations and we are very excited about what we have to offer to the world.”
OPPOSITION RENEWS ITS $500M LOAN CHALLENGE
“I believe one of the first complaints that could be made is oppressive taxation. This PLP administration has now moved to suspend their rushed increase of fees on recreational and commercial boat owners. “These fees implemented were without consultation, ignoring the human impact on small fishermen and on the cost of doing business, as retail prices on marine
products sold to the average Bahamian kitchen table. This is what I call home grown, self-inflicted invasion.” Mr Thompson added that new taxes, such as the $2 tourism levy, when added to high inflation, high electricity rates, VAT and impending taxes and rate increases, could “form a legitimate complaint to an ombudsman”.
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net EASTERN New Providence vacation rental owners yesterday voiced fears that the soaring murder rate, combined with the US crime alert, will negatively impact their business. One, speaking on condition of anonymity after the US Embassy in Nassau issued a travel advisory warning Americans to “exercise extreme caution in the eastern part of New Providence”, expressed concern about the alert’s impact and called on the Government to take firm action given the potential consequences for tourism.
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net THE Opposition’s finance spokesman yesterday again questioned the purpose and terms of the $500m, 10-year loan that the Government obtained with help from a multilateral lender’s guarantee. Kwasi Thompson, the east Grand Bahama MP, giving his contribution to the debate on the Ombudsman Bill, said the Ministry of Finance did not offer “transparency or clarity” and questioned how the Davis administration was able to secure a $500m loan when Parliament only gave permission for $131m in new net borrowing. He said: “On another question of maladministration, there is the issue of the $500m loan that was taken out by recently by Ministry of Finance. “The Opposition notes theGovernment’s recent release regarding the $500m loan facility it garnered with the support of the
She said: “People will be afraid when they see that, and I mean as a Bahamian, if I were travelling to a foreign country, especially for the first time, and I saw something like that I would probably ensure that I stay clear of that area. It’s important that we get crime under control. Tourism is our bread and butter. If Americans are afraid to travel here we could lose out on our biggest client demographic.” The vacation rental owner added that international guests have never before complained of feeling unsafe, but she voiced concerns that first-time travellers would be deterred from booking in eastern New Providence. She said: “The east is very safe. I mean. I have a group here from Canada, and they do their own thing all day.
Inter-American Development Bank. The Ministry of Finance’s statement on the matter, however, failed any reasonable measure of transparency or clarity. “The Government only has budgetary approval from Parliament to take $131m in new net borrowing. Parliament gave the Government approval to borrow $131m in new net borrowing, not the rollover but new net borrowing.” Mr Thompson urged the Davis administration to disclose the interest rates, fees and terms associated with the loan, and questioned how the Government could “commit the Bahamian people to half a billion dollars worth of debt” and not be transparent about the terms. He said: “We ask what is the planned use of the $500m loan. The Government must provide specific details on the use and drawdown schedule of the loan facility. “In no universe can a democratic government commit the Bahamian people to half a billion dollars worth
They walk to the beach, go to the stores, visit restaurants. They aren’t afraid at all. We’ve never gotten that complaint. “But it’s the first timers, the people who are just scouting for a place to stay while in Nassau. They may be turned off from staying in an eastern Nassau listing and that’s a shame.” The US travel advisory said 18 murders have occurred in Nassau for the year, although official reports indicate that 17 have taken place thus far with one occurring in Abaco. It said: “The US Embassy in Nassau advises US citizens to be aware that 18 murders have occurred in Nassau since the beginning of 2024. Murders have occurred at all hours, including in broad daylight on the
of debt without telling us what are the interest rates? What are the fees? What are the penalties? What are the terms of this loan? “If the transaction is not complete, or the terms are not yet known, then why are they claiming that the transaction was finalised in the release. Their release claimed that the loan was closed.” Mr Thompson added: “The financial secretary [Simon Wilson] said these loans cannot be used to pay rollover debt, which means you can borrow money to pay off an old loan. You can’t take on a new loan to pay off an old loan. “Well, this again raises even more questions because if you only have permission or approval to borrow $131m but you borrowed $500m over 10 years, and it is not going to be used for rollover, then what is the situation with respect to this loan? “There’s no circumstance that I understand that you can close $500m, half a billion dollars in debt, without telling the Bahamian people
what are the terms upon you borrowing this money?” MPs yesterdat debated the Ombudsman Bill, which will an impartial individual appointed to receive and investigate complaints made by the public against government officials. Mr Thompson argued that The Bahamas currently faces many situations that would require an ombudsman to investigate including “oppressive taxation”. He maintained that the Davis administration’s “rushed” increase on boat fees were implemented without adequate consultation with industry partners, and ignored the impact it will have on Bahamian fishermen and citizens that purchase fisheries. He said: “There are many issues today that our country faces that, I believe, if an ombudsman was in place there would be valid complaints that could be made against this government to an ombudsman.
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THE TRIBUNE
BALMORAL RESIDENTS AIMING TO KNOCK OUT CONDO HOTEL PLAN By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net RESIDENTS yesterday expressed hope that the Balmoral Club’s proposed 50-unit condo hotel expansion will be rejected in its entirety if they can overturn the original planning approval. Lauren Beneby, a Balmoral resident, told Tribune Business that if homeowners succeed in defeating the original approval for a smaller-scale development,
which was granted in early 2022 without a public consultation or residents being informed, it might knock out the Club’s own appeal against the Town Planning Committee’s later rejection of its larger eight-storey project. The Planning and Subdivisions Appeals Board will on February 15 hear arguments as to whether the two appeals - one by the residents, and the other by the Club and its developers - should be heard at a joint hearing. “No one wants that type of structure in the
community at all,” Ms Beneby said of the proposed condo hotel, “so if we are able to reverse that [original planning approval] that’s a good thing for all of us.” Another resident, speaking under condition of anonymity, added: “I felt that the Club didn’t do things in the proper way. They never let anybody from the community know what was going on. That’s the first thing.” The Balmoral Club, in February 2022, did obtain approval for a condo hotel that was half the height of the rejected application at
four storeys and targeted at a different location. That approval, though, was obtained without a full public hearing on the application. The Balmoral Club then sought a “deviation” from the early 2022 decision in its bid to gain approval for the larger version. Tribune Business sources, speaking on condition of anonymity, said Balmoral residents and homeowners were unaware of the four-storey proposal or the original Town Planning Committee approval from 2022 until the expansion to eight storeys required that
the project be published in the newspapers and a public hearing held. When they heard of the condo hotel’s proposed size and structure, with it potentially being eight storeys and 50 units, they immediately banned together to oppose it over security and other concerns. The resident continued: “With the possibility of the construction for the community, we are just too small and condensed. It’s just a lot.” While there may be “some positives” from the condo hotel, they argued that Club
management did not handle the matter properly. “Mr (Dwayne) Mortimer is not approaching this in an ideal way,” they added. “It’s as if Mr Mortimer can do whatever he wants to do and he doesn’t care what we have to say, and he is going to put up his eightstorey monstrosity and he doesn’t care how it affects us.... “If Mr Mortimer says he has $2m to renovate the clubhouse, he should take that money, renovate the clubhouse and show the
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TOP PERFORMERS REWARDED BY REAL ESTATE COMPANY A BAHAMIAN real estate firm recognised its 2023 top producers and performers during the annual awards luncheon held at Albany on January 19. John Christie, HG Christie’s president and managing broker, said: “We are pleased to announce the top producers for 2023. These agents are on top of their game and we congratulate them on their success. “In addition to the top producer titles, we are introducing for the first time our Circle of Excellence to highlight a group of HG Christie agents as a celebration of their outstanding contributions, unwavering dedication and exemplary performance through the past year. Established in 1922, HG Christie has been leading real estate in The Bahamas for over 100 years and I look forward to another great year in 2024.”
HG Christie’s 2023 top producer for Grand Bahama and recipient of the most exclusive listings, Ewa Mellor. Philip Hillier’s team were rated as the firm’s overall producers for 2023. “It feels great, it really does,” said Mr Hillier. “It’s hard work and it takes a lot of time and effort. The fact that we’ve been able to achieve this again, for a fourth year in a row, I’m very grateful to everyone around me who
DYLAN CHRISTIE, HG Christie’s 2023 Rookie of the Year. have helped to get Anya and I to this point. Without her it wouldn’t be possible. We’re a dynamic team together.” Ewa Mellor was honoured for having the most exclusive listings in 2023 and being the top producer for Grand Bahama. “Each of the transactions is unique and important to me,” Ms Mellor said.
“The most important thing is to connect the seller and the buyer, and ensure both parties are happy. It is very rewarding to see buyers find their perfect home and for the seller to sell the properties. For me, my success and satisfaction in my job is measured by the happiness of the clients.” Meanwhile, Daren Seymour, a certified international property specialist, was awarded a spot in the circle of excellence alongside seven others. “Since my licensed agent debut in 2017 with HG Christie, I’ve consistently been recognised for my commitment to purpose and success” he added. “For me, the real competition is with myself. I bring a unique edge to the industry by offering a one-stop experience through team networking and service excellence. It’s gratifying to receive recognition for consistent diligence in a
business that goes beyond what meets the eye. “I find fulfillment in helping individuals achieve their dream of home ownership and supporting people from all walks of life in building equity through home and business investments. I thrive on creating these meaningful connections and contributing to lifechanging moments for my clients. After facilitating a record-breaking sale in 2023, Dylan Christie took home rookie of the year honours and was also awarded a spot in the circle of excellence. “I am incredibly grateful to receive this award and the opportunity to make a mark in this field,” said Mr Christie. “2023 was just the beginning, and I am excited to get to work in 2024. My most memorable sale of 2023 was the recording break sale ‘La Ceiba’ in Ocean Club Estates that
sold with a last asking price of $37.5m.” HG Christie’s top producers were: Abaco - Dwayne Wallas Exuma - Krystle Rodgers Eleuthera - Anne Bethel Grand Bahama - Ewa Mellor Top Producer overall The Hillier Team; Philip Hillier Top Producer overall The Hillier Team; Anya Mousis Rookie of the Year Dylan Christie Most Sold Listings Daren Seymour Most Exclusive Listings Ewa Mellor Resort marketing - Kristi Hull Circle of Excellence Daren Seymour; Dwayne Wallas; Elbert Thompson; Dylan Christie; The Hillier Team - Philip Hillier; The Hillier Team - Anya Mousis; the Constantakis Team - John Constantakis; The Constantakis Team Charlotte Constantakis
THE TRIBUNE
Thursday, January 25, 2024, PAGE 5
RESIDENTS VOICE RELIEF THAT $1.3M GAS PLANT WITHDRAWN By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net BLUE Hills Estates residents yesterday voiced relief that plans to develop a $1.3m propane gas plant in their community were withdrawn just prior to Tuesday's planning appeals hearing. Indira Godet, Eco-School implementation co-ordinator and a parent at Hillcrest Academy, located off Tonique Williams Highway, told Tribune Business: “It was relieving to hear about the withdrawal in response to the collective concerns regarding potential adverse impacts raised by the community, Board/ faculty, Eco-Club students and parents. "I commend the firm for their efforts to understand and re-evaluate their stance. This experience serves as a valuable lesson in environmental and community interconnectedness, highlighting the bond and the importance of considering their needs together. "It reinforces the pivotal role of environmental education and stewardship in fostering sustainable and safe communities. Hillcrest Academy’s commitment to these principles is commendable, and we hope this positive outcome encourages further efforts for a greener and safer future; not only in the Blue Hills
Estates community but also throughout our lovely nation.” However, this may not be the end of the matter. While Nassau Propane withdrew its original application, which had already received site plan approval from the Town Planning Committee, it immediately signalled its intent at the Planning and Subdivisions Appeals Board hearing to submit a fresh application at another date and time. Alexander Christie, attorney and partner with the McKinney, Bancroft and Hughes law firm, wrote in a latter to the Appeals Board: “We have received instructions to act on behalf of the respondent, Nassau Propane Ltd, in the captioned matter. “Without admission to the various grounds of appeal contained in the appellant’s submissions, our client proposes to agree to the Appeal Board proceeding to immediately quashing the Town Planning Committee’s decision made on August 8, 2023, to enable the respondent to instruct its attorneys to submit without prejudice a fresh formal application for site plan approval for relocation of its propane plant.” No explanation was given for Nassau Propane's decision and actions. Meanwhile, Judith Dawkins, principal at Hillcrest Academy, said the entire school body is “very excited”
about the company's decision because of the potential impact a nearby propane plant could have on students. She added: “We just have to make sure that our children do not be in harm’s way and inhaling anything that is detrimental to them, or even at any chance something may blow up close to the plant.” Nassau Propane had already began constructing office space for its plant, and a proposed car wash, at the site near to Hillcrest Academy following the original Town Planning Committee approval. The company had initially applied for approval for a site at the corner of Bozine Town and Tonique Williams Highway, but that was rejected after objections by residents. Nassau Propane’s current location is on Knowles Drive, the first corner headed east on Tonique Williams highway from Bozine Town’s entrance. D Documents filed with the Department of Physical Planning show Nassau Propane had initially intended to move just one block to the corner of Bozine Road and Tonique Williams Highway, but switched its focus to the site at Chapel Drive in Blue Hills Estates following prior objections from the planning authorities. The Town Planning Committee gave the new
location the go-ahead even though Department of Physical Planning officials raised questions about the propane plant’s “compatibility with its neighbours”. Jehan Wallace, the Department’s chief physical planner, in a June 2023 paper for the Town Planning Committee, said a church, school and other commercial businesses are located nearby while a “multi-family housing structure is 120 feet to the west” of Nassau Propane’s proposed boundary. “The applicant is seeking planning approval to relocate Nassau Propane to a 22,500 square foot site located on Chapel Drive off the Tonique Williams Highway. The site is currently vacant,” Ms Wallace wrote. “The company is currently located a half-a-mile west of the proposed location behind Ron’s Auto. However, they need to relocate and wish to stay in the same location [area] they have serviced for the past 22 years. “The applicant hopes to enter into a long-term lease agreement with the owner of the proposed location for a space to create the same scope of their existing business.” However, she noted the proximity of Nassau Propane’s proposed new site to other ventures in the area. “Uses in the area include a church, school and other commercial business,” Ms
Wallace said. “There is one multi-family housing structure 120 feet to the west of the proposed western boundary of the site. Even though the use currently exists in the area, it is the only industrial use and the Department has concerns about the compatibility of the use to its new neighbours.” Mr Davis, in a previous interview with this newspaper, said that relocating to the new site will enable the company to upgrade its facilities, expand its services and hire more staff. “The primary reason is that the facility that we propose to build will be a state-ofthe- art plant. We’ve been at the current location for 23 years and never had any issues, but it’s time to go ahead and upgrade the facility,” he added. “Especially with Nassau Propane, and a plant like Nassau Propane, it’s very important to continue to upgrade your facility. Our intent is to move so that
we can offer customers, and Nassau at large, much better service. That’s why we selected this particular location. There are no homes there and we have several acres of encumbered land. We felt it was a great location.” Mr Davis argued that the chosen site is superior to the Gladstone Road area, where many of Nassau Propane’s rivals are based, because their locations are becoming increasingly surrounded by residential housing developments. He said the new Nassau Propane plant will be designed to US National Fire Protection Association (NFPA) standards, and international designers who have worked on “much larger plants” - including in Texas - have been hired to put the facility together. The move would result in Nassau Propane’s workforce expanding from eight persons to 12.
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BTC UNVEILS MULTIPLE MOBILE APP UPGRADES THE Bahamas Telecommunications Company (BTC) yesterday said it has upgraded its mobile app with the addition of new features in response to “demand for more digital applications”. The carrier, in a statement, said the upgraded My BTC mobile app can be downloaded on Apple and Android devices. To log in and set up an account, customers will only need their telephone number or e-mail address. For existing app users, the same credentials will apply. BTC said customers will be able to view their account details, including their last bill, any outstanding balances and their last payment. They are also able to auto pay in advance. It added that there are new self-care features, which allow a customer to set up automatic payment for their monthly bills and to save their payment methods/ Pre-paid mobile customers can set up automatic plan purchases, and are also able to buy plans in the app, top-up or top-up other accounts. For customers running out of funds, they can access a pre-paid loan. Keisha Edwards, BTC’s head of commercial operations, said: “We completed these initial upgrades with our customers front of mind, and we are responding to
KEISHA EDWARDS the demand for more digital applications and digital interactions. The MyBTC mobile app gives our customers complete control to access and manage their pre-paid, post-paid and residential accounts 24/7. “We encourage all customers to download the app and experience the difference. This is just the first phase of our evolution, and we are already working on even more upgrades in phase two, which includes an enhanced chat feature. We would love to hear from our customers, and we invite you to share your feedback on any of our social media channels.” Customers can learn more about the upgraded MyBTC mobile app by visiting the carrier’s social media channels. Customers can also report any app issues to support@fastpaybtc.com for immediate assistance.
Balmoral residents aiming to knock out condo hotel plan FROM PAGE B4 residents that he can execute a good project and gain our confidence, and maybe he can pitch the hotel to the community that can make us feel safe and secure, and maybe people would consider it.” Keenan Johnson, the Town Planning Committee’s chairman, earlier confirmed to Tribune Business that site plan approval for the eight-storey option was refused because the project’s scale and “height in and of itself” did not fit with the existing gated residential community on Sanford Drive. He explained, though, that the rejection of the eight-storey proposal does
not impact the previous approval granted to the Balmoral Club’s four-storey version in February last year. “Last year February they made a request for four storeys, which was approved,” Mr Johnson said, “and then requested a variation to eight storeys. “The public hearing was about the application that we received for eight storeys. They had already been approved for four storeys. This approval only lasts for a particular period of time that they have to act on it. If they do not move ahead with the development for four storeys in a particular timeframe, that approval will expire and they will have to register for re-approval.”
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THE TRIBUNE
Thursday, January 25, 2024, PAGE 7
BUSINESS LICENCES: UP TO 20% FACING EXTRA SCRUTINY FROM PAGE B1 “Any variance of greater than 15 percent between VAT and Business Licence turnover, we have to have some conversation, obviously,” he told this newspaper. “If it’s an area where there are high imports, high demand, it requires some extra due diligence.” The “growing pains” endured by businesses with the Department of Inland Revenue’s upgraded tax portal since its upgrade in December, as well the enhanced Business Licence verification requirements that mandate companies with annual turnovers greater than $5m produce full audited financial statements, have only added to the private sector’s alreadyconsiderable ‘ease of doing’ business concerns. Mr Fernander, though, said the tax authorities are adopting a risk-based approach and turning around Business Licence renewal applications from
“low risk” sectors such as straw vendors and school lunch providers, who typically fall below the annual $100,000 turnover threshold, “very quickly”. “We have made it easier for those filing documents,” he said. “At the end of the day, at 8pm, we’re issuing 300-400 [Business Licences] per day.” However, the Department of Inland Revenue is using all tools available to it to obtain evidence on whether Business Licence and VAT declarations are accurate and truthful. This, Mr Fernander said, extends to monitoring social media booking schedules for the likes of home-based nail technicians in a bid to calculate whether their turnover may have brought them within range of the $100,000 VAT registration and Business Licence fee payments. And the new online portal is designed to drive greater tax compliance through enhanced cross-checks of
the information provided by firms. “As we get this new portal, it helps us to crosscheck and see better into reports from registrants,” the Department of Inland Revenue’s operations manager explained. “Definitely it allows us to do a lot more cross-checks. The upgrade has allowed us to include other supporting documents, third party databases, allowing us to do spot checks. “We’re doing some research and asking individuals to be more honest with the information they provide to the Department of Inland Revenue. We are, with some industries, a little concerned about the compliance level and trying to further delve into why.” Citing concerns with construction and landscaping, in particular, Mr Fernander said of the former: “Builders who have been sub-leased contracts (subcontractors) are reporting higher turnover than the main builders who got the
contract. We are concerned. We are trying to take our time to figure that out. “I’m delving into automobiles. We’re trying to understand the industry, these ‘Mom and Pop’ home-based automobile operators. When we consider what is revenue, it’s anything that goes through your company. In many instances, the individual imports the automobile in the company’s name from an [overseas] auction. “However, what we are getting is that the individual who participated in the auction is saying it’s not their revenue. They ask the person [buying it] to wire the money in their name. How’s the bank doing it? I’m trying to figure out how the commercial bank is doing this because, if the wire is not in my name, how’s the bank approving a wire for a transaction that’s not in their client’s name? “We’re looking at this to see if this is something we need to review or further look at this area.” Mr
Fernander said further confusion was also arising because of difference’s between a company’s projected and actual annual turnover as submitted for Business Licence purposes. “What we’re having is the registrant having a discrepancy with the accountant,” he explained. “If you look at the Business Licence Act amendment from 2022, it said that in January 2023 you had to submit the projection for 2023. You would pay your projection from January 1, 2023, to December 31, 2023. “Individuals were assessed based on the projection submitted. Similarly, that language stayed in the Business Licence Act 2023. What has happened is that a lot of people made a projection, and the accountant’s submission at the end of the year is showing a variance higher than the actual projection.” As a result, those companies with 2023 full-year turnovers higher than projected now have to pay
additional Business Licence fees based on this variance. And businesses are now having to file, and apply for, their 2024 Business Licence renewals based on the actual turnover for 2023. Mr Fernander said many companies were approaching the Department of Inland Revenue to challenge why they were getting two bills and seemingly “getting assessed for two years”. He added that they are having to pay for 2024 plus cover any 2023 variance between projected and annual turnover for Business Licence fee purposes. “Some accountants have unfortunately not read the Business Licence Act and don’t have a clear understanding of Business Licence actuals and Business Licence estimates,” Mr Fernander said. “Some accountants and companies are in shock when they see the bills being generated for 2023. It’s the difference between what was projected and the actual turnover of companies.” The deadline to submit initial Business Licence flings is fast approaching on January 31, with fee payments due at end-March.
PAGE 10, Thursday, January 25, 2024
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Unpaid property taxes hit $690m at mid-2021 FROM PAGE B1 With the potential tax base expanding, and thus creating the possibility to increase property tax revenues without raising rates, Mr Bastian and his team nevertheless made their regular annual call for the Government and tax authorities to get a grip on delinquency and to start
making inroads into the ever-escalating arrears. “Outstanding tax revenue, in some aspects, contributes to budget deficits and the need to obtain additional sources of funds through borrowings and increasing other taxes or government services fees,” the Auditor General’s reported
on the consequences of non-payment. “Outstanding real property tax revenue continues to increase. The $689.75m cumulative outstanding real property tax revenue in 2021 is an increase of 13 percent or $79.41m yearover-year. The current year’s outstanding amount of $61.26m is an increase of
$9.01m or 17 percent over the prior year’s $52.25m.” The $61.26m represents outstanding real property tax principal, with the $79.41m figure achieved through an $18.148m increase in unpaid penalty surcharges. Broken down, the total $689.75m owed to the Public Treasury, which had risen from the $610.343m due at end-June
2020, features $472.7m in tax arrears and a further $215.893m in surcharges. However, on a slightly brighter note, the real property tax collections for 2020-2021 - which represented a full year of peak COVID - both exceeded the prior year’s figures and the then-Minnis administration’s Budget projections. “The $143.45m real property tax revenue collected in 2021 is representative of 9 percent of the $1.61bn tax revenue [for 2020-2021] and 5 percent of $1.85bn in 2020,” the Auditor General’s report added. “With respect to the $100.33m collected in 2020, real property tax revenue increased by $43.11m or 43 percent year-over-year.... “Real property tax revenue collections for 2020-2021 fiscal year exceeded the budgeted $104.81m by $38.64m or 37 percent.” The betterthan-forecast performance, the report added, was mainly driven by property tax collections from owner-occupied properties which exceeded the Budget target by $21.71m or 106 percent. Commercial, foreign-owned and residential were also ahead of predictions by a lesser amount. “Although the real property tax revenue collected exceeded Budget expectations it is important to note that there is an enormous amount of ‘tax arrears’ due to delinquency,” the Auditor General’s report reaffirmed. “Some taxes are not being paid as due in accordance with legislation. The root cause of the arrears is non-compliance. “Real property tax collection is very vital for the Government’s revenue sustainability in facilitating its recurrent operations. Collecting all the real property tax to be had requires efficiency and effectiveness in compliance and revenue collection. Uncollected taxes results in continuous arrears that remain outstanding for excessive periods.” Noting the Government’s hiring of Tyler Technologies to expand the property tax register, and undertake a valuation exercise to reassess all New Providence-based properties, the Auditor General’s report nevertheless said: “Due to the importance of real property tax to the country’s tax revenue sustainability, it is important to present the outstanding taxes to be collected... “Revenue enhancement initiatives, effective tax compliance and collectability mechanisms and ease of doing business be advanced to reduce the amount of outstanding real property tax revenue. Consequently, fast recoverability of the arrears is pertinent to increase revenue collection, as the longer the tax remains outstanding the greater the impact on revenue collection efficiency... “With respect to fiscal year 2021, although real property tax revenue increased significantly
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year-over-year, $38.64m (43 percent), the outstanding taxes cumulative amount of $689.75m requires continuous aggressive compliance efforts and revenue enhancement initiatives for notable reduction,” the report added. “Also, tax key performance indicators (KPIs) and user experience (UX) to be employed in achieving the objective of collecting more revenue on the arrears to maximise tax administration efficiency and effectiveness. Revenue enhancement is pivotal in collecting arrears.” The Auditor General’s report, though, did reflect the increasing number of properties being added to the tax roll and added that this “enhances the amount of revenue to be collected as the base is broadened with the increased tax coverage. “Regarding the tax roll, there is a notable increase over the past two fiscal periods, particularly the 13,421 in 2019-2020 during the Department of Inland Revenue’s assessments in New Providence supported by the additional project’s staffing complement,” the report said, noting that COVID had impeded this process. Over the five year period from 2016 to 2021, the number of properties on the tax roll had risen from 102,451 to 126,317, with a 6,913 or 7 percent jump also occurring during the 20162017 fiscal year. Michael Halkitis, minster of economic affairs, said last year that the Government is only targeting “really chronic” property tax delinquents among foreign and commercial owners who are said to owe a combined $461m to the Public Treasury. The Government is “targeting extreme cases” who have totally disregarded their tax obligations for up to 10-20 years with its warning that it will start to seize and sell-off their properties to recover all arrears owed. The minister also reiterated that Bahamian owner-occupied properties, where owners live in their own residences, are protected by law from the Government exercising its ‘power of sale’ over their real estate. They are not being targeted in an initiative which seeks to “put a dent” in the total $822.168m outstanding real property that is believed to be past due and owing - a figure more current than the Auditor General’s. Mr Halkitis, stating that the $822.168m was the total arrears as at May 18, 2023, added that of this sum some $226m is owed by foreign property owners. A further $235m is due from commercial properties housing businesses or being used as rentals, and thus generating income. Some $155m is owned by Bahamian homeowners living in owner-occupied properties. Based on these figures, foreign tax delinquents are responsible for 27.5 percent of total real property tax arrears, and commercial properties another 28.6 percent. Together, they account for a combined 56.1 percent or slightly more than half of the total real property tax arrears, and it is this that the Government is targeting with the ‘power of sale’.
NOTICE International Business Companies Act No.45 of 2000
PUMAS INVESTMENT FUND 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 PUMAS INVESTMENT FUND 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 December, 2023. Nicolas Poletti Liquidator
THE TRIBUNE
Thursday, January 25, 2024, PAGE 11
‘Moral imperative’ to boost financial watchdog’s staff FROM PAGE B1 a moral imperative to protect the interests of citizens and promote the highest standards of governance” within The Bahamas. “The fiscal year began with staff complement of 46 and ended with 47,” Mr Bastian wrote in the 20202021 report. “Although efforts were made to increase the staffing complement during the fiscal year, due to attrition we still fell short of meeting the desired staffing levels. This situation presents ongoing concerns and challenges for the office’s operations and effectiveness. “The staff shortage, even with some increase, can still lead to issues such as increased workloads on existing employees and potential delays in conducting audits and releasing audit reports. It may be challenging for the office to handle its full mandate effectively with limited resources and certain areas of concern or emerging audit issues may
remain unaddressed due to resource constraints.” Suggesting that the Auditor General’s Office may have to “outsource” audits where deemed appropriate, Mr Bastian spelled out the consequences the staffing shortage could have for his office’s ability to protect the Bahamian people’s interest in ensuring their tax dollars are spent wisely and efficiently, and they gain value for money. “Our audit responsibility extends to more than 55 ministries, departments and agencies (MDAs), stateowned enterprises (SOEs) and various autonomous bodies,” he added. “These entities collectively represent a significant portion of our nation’s resources and financial activities. “Effective auditing of these entities is vital not only for ensuring financial accountability but also for safeguarding the interests of our citizens. As we face an increasingly complex and dynamic economic environment, it is
imperative that our budget reflects the demands of the times. “Regrettably, our current staffing levels are insufficient to carry out comprehensive and timely audits of all these bodies. This staffing deficit poses several challenges.” The first identified by Mr Bastian was “reduced oversight”, and he added: “The inability to conduct audits in a timely manner hinders our ability to provide realtime oversight, potentially exposing vulnerabilities to financial mismanagement and inefficiencies.” Then there was the “risk of misallocation” of resources by his office, Mr Bastian said, “which can have serious consequences for our economy, public services and citizen welfare”. He identified the final danger as “limited accountability”. “Our inability to thoroughly audit all MDAs, SOEs and autonomous bodies undermines public trust and confidence in our
NOTICE In the Estate of LEON EDDISON BETHELL SR late of NO 49 Haslemere Road, in the Eastern District of the Islands of the Commonwealth of The Bahamas, deceased. NOTICE is hereby given that all persons having any claim or demands against the above Estate are required to send the same duly certified in writing to the undersigned on or before the 22nd day of February, A.D., 2024, after which date, the personal representative will proceed to distribute the assets of the deceased having regard only to the claims of which they shall have had noticed. AND NOTICE is hereby given that all persons indebted to the said Estate are requested to make full settlement on or before the date hereinbefore mentioned. NEXUS LAW CHAMBERS Barristers | Notaries Public The Suite at Monfort Monfort Street, Palmdale Nassau, N.P., The Bahamas Attorneys for the Estate of the late Leon Eddison Bethell Sr
auditing processes, which are essential pillars of good governance,” the Auditor General warned. “In light of these concerns, I continue to request of our government to allocate a dedicated Budget to address the staffing gap within the Office of the Auditor General. This budget should prioritise the recruitment and training of qualified auditors and support staff who can effectively carry out audits, investigations and reviews of the aforementioned entities.” Adequately resourced, Mr Bastian said his office would be able to improve “the quality and efficiency of audits” plus enhance “the detection of financial irregularities and potential fraud”. Other benefits would be strengthened accountability and transparency, plus better safeguards for The Bahamas’ financial resources and “economic stability”. “I believe that this investment in our auditing
capacity is not just a responsible fiscal choice but a moral imperative to protect the interests of our citizens and promote the highest standards of governance within the Government of The Bahamas,” Mr Bastian said. The Auditor General’s Office did not spent its full 2020-2021 Budget allocation, with expenditure for that year totalling $1.956m as opposed to the prior year’s $2.325m. The actual
spend was also down from 2019-2020’s $2.341m. A similar amount was allocated for the 2022-2023 fiscal year. Going forward, the Government approved a slight increase in the Auditor General’s Budget to $2.543m for the current 2023-2024 fiscal year. Further modest increases to $2.605m and $2.702m are forecast for 2024-2025 and 2025-2026, respectively.
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PAGE 12, Thursday, January 25, 2024
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FTX PEACE TERMS APPROVED BY BAHAMAS AND DELAWARE FROM PAGE B1 Supreme Court’s consent to the deal at a hearing on Monday, thus paving the way for the Bahamian trio to co-operate with Mr Ray, who heads the 134 FTX entities in Chapter 11 bankruptcy protection in Delaware, on adjudicating creditor claims
and returning assets to investors. The settlement deal’s implementation hinged on obtaining approval from both courts. Among the first moves triggered by these developments will be Mr Ray’s provision of a $45m bridging loan, carrying a 7 percent per annum interest
NOTICE NOTICE is hereby given that JAHIEM KHAMANI GRANT of P.O Box CR-55215 Sea View Drive, West Bay Street, 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 25th day of January 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE NOTICE is hereby given that MILAN OYLVIA AZJADA MELVIN of 26 Plover Drive, Freeport, Grand Bahama, 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 25th day of January 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE NOTICE is hereby given that AGNES BREVIL of South Beach, P.O. Box AP-59247, 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 and signed statement of the facts within twenty-eight days from the 25th day of January, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE NOTICE is hereby given that WILKENS GARCON of Great Cistern, Abaco, 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 18th day of January 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE NOTICE is hereby given that ALEX AUGUSTIN of Crystal Way, Soldier 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 18th day of January 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE NOTICE is hereby given that PAULETTE HARRIS of #9 Peardale, 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 18th day of January 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
rate, “no later than January 29, 2024” to the Bahamian liquidators. The proceeds are to be used “solely to pay administrative expenses” incurred in the FTX Digital Markets liquidation, with this sum to be repaid on June 19, 2025, or earlier if milestones such as approval of the Chapter 11 reorganisation plan occur beforehand. Proceeds from “recovery of certain assets” will also be set aside by the Bahamian liquidators to repay the bridging loan. This financing will give FTX Digital Markets trio much-needed cash with which to finance their work after being starved of funds by the US Justice Department’s seizure of some $143m from the Bahamian subsidiary’s US bank accounts. Both sides, as part of their deal, have agreed to use best efforts to employ similar asset valuations and settlement offers when assessing/granting creditor claims in their respective liquidation proceedings. And the Bahamian trio will “take the operational lead in managing the value-maximising disposition of real estate and other assets in The Bahamas”. They will also spearhead “pursuing specific litigation and avoidance actions identified in the global settlement agreement as part of the ongoing efforts to maximise recoveries for customers and creditors”, which seems to imply Mr Simms and the PwC duo
will be in charge of efforts to recover the $100m obtained by 1,500 “Bahamian” customers in violation of the asset freeze when FTX imploded. FTX’s Bahamian liquidators previously asserted that the settlement with their US adversary “represents the best deal” possible given that lengthy legal battles would slash creditor recoveries “possibly to extinction”. Mr Simms, in a January 12, 2024, affidavit filed with the Supreme Court alleged it is “extremely unlikely that more favourable terms could be achieved” with John Ray given that the Bahamian liquidation is in a “much weaker financial position” than their Chapter 11 counterpart. While he and his fellow FTX Digital Markets liquidators have “repeatedly pushed back” against “unacceptable” offers by the FTX US chief, Mr Simms signalled that “limited assets” presently available to the trio would be exhausted by continuing their courtroom fight “with no end in sight”. With the Bahamian trio controlling just 30 percent of the local subsidiary’s cash assets, due in large measure to the US Justice Department’s seizure of $143.2m from its US accounts in late 2022, the Lennox Paton senior partner conceded that assets available to pay creditors would ultimately be exhausted by the legal sparring and they would have to seek litigation
JOHN RAY financing that comes with its own risks. And customer and FTX group assets and liabilities are “so commingled” and “inextricably intertwined that it would be practically impossible”, in addition to creating enormous delays and costs, to try and “unravel” what belongs to which liquidation estate The Bahamas or Delaware. Detailing the commercial rationale that drove the FTX Digital Markets liquidators to settle with Mr Ray, who heads the 134 FTX entities currently in Chapter 11 bankruptcy protection in Delaware, Mr Simms nevertheless hailed what he described as a “landmark deal” that will speed up asset recoveries for the near-61,000 creditors who have filed claims against The Bahamas’ estate. “In the joint official liquidators’ considered view, the global settlement agreement is a landmark deal which will pave the way for the return to customers of the proceeds from assets
recovered for the insolvent estates much earlier than otherwise would have been the case,” Mr Simms alleged in his affidavit, filed in support of the liquidators’ bid for Supreme Court approval of their deal with Mr Ray. “Absent the global settlement agreement, it is unlikely that recoveries after the costs of necessary legal actions would have been sufficient to make any distribution of any significance to customers and creditors of FTX Digital Markets. “The global settlement agreement addresses many of the complex cross-border legal issues and other issues raised following the collapse of the FTX group. It provides for assets across the estates of FTX Digital Markets and the debtors to be pooled for distribution to FTX.com customers in a way that ensures customers” gain “substantially identical recoveries” whether they claim in The Bahamas or Delaware.
NOTICE
NOTICE
NOTICE is hereby given that TELSON FRANCOIS of Alice Town, Bimini, 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 and signed statement of the facts within twenty-eight days from the 25th day of January, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE is hereby given that SYLVIA FILSAIME ROLLE of Nassau Street, 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 25th day of January 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
THE TRIBUNE
Thursday, January 25, 2024, PAGE 13
ALBANY CHIEF FACES ‘LARGEST INSIDER TRADING’ FINE FOR DECADE AT $50M FROM PAGE B1 two other people who bought stock in those companies. He added that he shared confidential tips with another person in July and September of the same year, and that individual bought stocks in the companies. Mr Lewis, who partnered with world-renowned golfers Tiger Woods and Ernie Else to develop Albany, the high-end gated community in south-western New Providence, accessed the information via his Board seat on these companies where he was an investor. “I knew that I was violating a legal duty not to make those recommendations because the non-public information had been entrusted to me in confidence,” Mr Lewis told the Manhattan court. “I knew at the time what I was doing was wrong, and I am so embarrassed and I apologise to the court for my conduct.” Mr Lewis did not speak as he left court, and was shielded from photographers by his aides, a lawyer and an umbrella. However, he now faces a potential maximum prison sentence of up to 20 years as a result
of pleading guilty to two securities fraud counts. The one conspiracy count carries a maximum five years, but Federal sentencing guidelines call for a prison sentence of between 18 and 24 months, though Mr Lewis and his attorneys can seek less than that. The sentencing hearing is scheduled for March 28. Damian Williams, the US attorney for New York’s southern district, who spearheaded Mr Lewis’s prosecution, said: ““Today’s guilty pleas once again confirm — as I said in announcing the charges against Joseph Lewis just six months ago – the law applies to everyone, no matter who you are or how much wealth you have. “Billionaire Lewis abused inside information he gained through his access to corporate boardrooms to tip off his friends, employees and romantic interests. Now, he will pay the price with a federal conviction, the prospect of time in prison, and the largest financial penalty for insider trading in a decade. “His company, Broad Bay Ltd, who failed to detect and report this misconduct, has also been held to account and will plead guilty and pay more than
$50m in financial penalties.” That sum is broken down into a $15.586m fine and $34.414m in forfeiture. Yesterday’s guilty plea is a far cry from the defiant tone that Mr Lewis and his attorneys struck just six months ago. For the billionaire then pled ‘not guilty’, while his attorneys blasted what they branded an “egregious error” by the southern New York district attorney’s office in electing to charge Mr Lewis with 16 separate counts of securities fraud and three counts of conspiracy. David Zornow, of the Skadden Arps law firm, said then in an e-mailed statement to the media: “The [US] government has made an egregious error in judgment in charging Mr Lewis, an 86-year-old man of impeccable integrity and prodigious accomplishment. Mr Lewis has come to the US voluntarily to answer these ill-conceived charges, and we will defend him vigorously in court.” From a Bahamas perspective, any fall-out from Mr Lewis’ guilty plea and upcoming sentencing is likely to be minimal. Although Albany is responsible for the direct and indirect employment of hundreds of Bahamians,
and injects a multi-million dollar impact annually into the economy, it has evolved sufficiently to no longer be overly-reliant on its main founder. Albany, though, has been seeking to acquire its neighbouring South Ocean property, although consummation of that deal has been placed on hold due to litigation initiated by rival Austrian investor, Dr Mirko Kovats, who also resides at Lyford Cay. Tavistock Group, the investment vehicle that Mr Lewis used for his worldwide investments, has declared more than 200 interests and corporate holdings spread across 13 countries, Albany’s other deep-pocketed investors also include singer Justin Timberlake. Insider trading occurs when perpetrators exploit their access to privileged, non-public information to gain an unfair advantage over other investors who lack the same knowledge. They typically use the details to tip-off their family and close friends, using them to buy or sell shares ahead of a public revelation that typically boosts or lowers the stock’s value, thereby enabling all to make significant profits
with the initial perpetrator sharing in the windfall. The original indictment against Mr Lewis alleged that the Lyford Cay billionaire tipped his closest associates to the results of clinical trials. He is purported to have shared information on life sciences groups, Solid Biosciences and Mirati Therapeutics, plus beef producer Australian Agricultural Company and a special acquisition company, BCTG. Life sciences investments are among those that feature in Tavistock Group’s portfolio. Prosecutors said that in some insider trading cases, Mr Lewis lent money to recipients of his tips, including in October 2019 when he wired $1m to two pilots so they could buy more Mirati shares. The indictment quoted one pilot texting a friend that “boss lent Marty and I $500,000 each for this”, and that he thought “the boss has inside info” and “knows the outcome” because “otherwise why would he make us invest”. Both pilots allegedly repaid their loans soon after Mirati announced favourable results from a clinical trial, causing its stock price to rise 16.7 percent. “Loan
payback for MRTX,” the second pilot wrote in his records. Mr Lewis, who started out in east London’s restaurant industry, moved to The Bahamas in 1979 and is said to have made his fortune from currency trading and speculation. According to the Sunday Times’ 2023 ‘rich list’, he has a net worth of some £5.096bn. He previously owned New Providence Development Company, before exiting the investment and handing the company over to his former business partner, New Orleans-based Terry White, to focus on Albany’s development. Tavistock Group also developed the Lake Nona and Isleworth communities in Florida. “As part of the guilty plea of Broad Bay Ltd, Lewis and Broad Bay Ltd have agreed Lewis and his companies will resign and relinquish their control over board of director seats and participation in board of director meetings of any corporation publicly traded in the US, will cease ownership of certain investments over the five-year period of probation, will co-operate with the government’s ongoing investigation and prosecution,” the US attorney’s office for southern New York said.