02172017 business

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FRIDAY, FEBRUARY 17, 2017

$4.20

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Govt targets $400m from tax crackdown

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

The Government is targeting an extra $400 million within two years from its crackdown on tax cheats, a top official yesterday revealing enforcement efforts were already yielding an extra $15 million per month.

Simon Wilson, the Ministry of Finance’s financial secretary, said the $400 million goal was “quite achievable”, the Government’s advisers having suggested it could collect twice that amount through an even more aggressive compliance offen-

Compliance drive nets $15m in Nassau per month Now targeting 800 entities with no Business License Some 24,000 New Providence properties not on roll Even former senior officials moan on clampdown

Bahamas’ ‘growth potential’ down 3% since century start

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Bahamas’ economic growth potential has “dropped quite sharply” since this century began, an International Monetary Fund (IMF) executive said yesterday, urging the Government to curb spending “to ensure fiscal sustainability”.

Jarkko Turunen, the Fund’s ‘mission chief’ to the Bahamas, said Value-Added Tax (VAT) and other revenue reforms had failed to eliminate the fiscal deficit, as promised, because the Christie administration had increased spending at the same time.

He told the Chamber of Commerce’s State of the Economy 2017 forum that the Government’s spending had risen across “all main components”, with the biggest jump in subsidies and transfers to the public corporations.

On the positive side, See pg b4

IMF mission chief: ‘Negative productivity’ fuels drop Deficit not cut due to Govt spending increase Spend curb needed to ‘ensure fiscal sustainability’

Jarkko Turunen

FINCO blames Matthew for 15.5% ‘bad’ loan rise

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

FINCO yesterday confirmed that the Bahamas’ mortgage crisis is far from over, blaming Hurricane Matthew for a $16 million increase in non-performing loans as profits slumped 54.7 per cent.

Royal Bank of Canada’s (RBC) BISX-listed mortgage lending arm said the net income decline to $11.604 million was driven by a 56.7 per cent year-overyear increase in loan loss provisions.

These rose from $15.967 million to $25.017 million at end-October 2016, the close of FINCO’s financial year, with most of the provisioning increase taken in the fourth quarter.

Loan loss provisions for the three months to endOctober 2016 more than tripled, rising from $4.419 million in the 2015 comparative period to $14.501 million. This produced an $11.4 million ‘swing’ into the red, with FINCO recording a $5.804 million loss for the fourth quarter.

FINCO’s management said “lower interest income in a highly competitive market, increased provisions and higher operating costs” were responsible for the drop in full-year net income from $25.606 million the previous year.

Profits for 2016 slashed by 54.7%, as NPLs hit $119m ‘Most’ of latter increase occurred in October 2016 Loan loss provisions jump 56.7% to $25.07m “The bank was challenged with new credit origination, and non-performing loans increased by 15.5 per cent from $103 million to $119 million,” FINCO told its 25 per cent Bahamian minority shareholders.

“A significant amount of this increase occurred during the 2016 fourth quarter, and is attributed to Hurricane Matthew.”

FINCO’s results provide the first evidence on the extent of Matthew’s impact on the ability of Bahamian mortgage holders to service their debt.

It now remains to be seen whether Matthew created a ‘timing impact’ for FINCO and its borrowers, given that its year-end was just three weeks after the storm, and if they were subsequently able to ‘get back on track’ and resume debt See pg b2

sive.

He told the Chamber of Commerce’s State of the Economy 2017 forum that the enforcement crackdown, launched late last November, had generated the extra $15 million per month just from New Providence.

Mr Wilson added that the crackdown had yet to extend to other islands that generated significant economic activity, such as Abaco, Grand Bahama and Eleuthera, implying that yields would further rise when this happens.

“We see businesses adjusting to the strengthened compliance.

We feel this is going to be very,

very successful,” Mr Wilson said.

“On average, this effort has yielded $15 million a month.

Our target is $400 million in two years in incremental revenue without adjusting [tax] rates.

We believe that’s quite achievable.

“We’ve listened to our advisers, who suggested taking a more aggressive stance. Their target is two times’ that. And that $15 million is only on New Providence,” the Financial Secretary added.

“We’ve not stepped out beyond New Providence yet.

See pg b4

Govt targets ‘fiscal balance’ in 4 years

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Government believes it can “achieve a balanced Budget” within the next four years, its top finance official said yesterday, while warning this forecast could be undermined by unexpected events such as the $100 million in revenues lost to Hurricane Matthew.

Simon Wilson, the Ministry of Finance’s financial secretary, said the Government’s revenues as a percentage of gross domestic product (GDP) needed to increase by four to five percentage points if it was to hit “an overall surplus”.

He told the Chamber of Commerce’s State of the Economy 2017 forum that while tax revenues were currently equivalent to 22 per cent of GDP, this ratio needed to rise further to 26-27 per cent.

He added that the Government’s fiscal targets would be achieved through a combination of “aggressive” revenue compliance and spending controls, which were al-

Estimates $100m in revenue lost to Matthew Revenues must rise 5% pts for ‘Budget surplus’ ‘Almost zero VAT’ from GB in October ready starting to bear fruit.

“We believe that fiscal balance, subject to external shocks, is achievable in the next four years. We’re working hard towards it,” Mr Wilson said, acknowledging that this latest prediction would likely still attract criticism.

“You may say that’s a cop out,” he added, “but the reality is we’re in the hurricane zone.”

The Financial Secretary said Hurricane Matthew had cost the Government some $100 million, and possibly up to $120 million, See pg b5

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Courier firms ‘stealing’ from Public Treasury Three agreed to pay total $7m in outstanding taxes Govt targeting 35 others with audit Store’s $50k Business Licence report, but $8m sales

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Courier companies were yesterday accused of “stealing” from the Public Treasury, with the Government’s top financial official revealing three had recently agreed to pay a collective $7 million in outstanding taxes.

Simon Wilson, the Ministry of Finance’s financial secretary, said the Department of Inland Revenue was now “targeting” 35 other Bahamas-based couriers, based on the results produced by its initial audits of sector participants.

While not naming any of the companies involved, he told the Chamber of Commerce’s State of the Economy 2017 forum that the three had “agreed to pay $7 million in back taxes”.

Mr Wilson said the payments were one example of the initial successes enjoyed by the Government in its crackdown on corporate tax cheats, and warned that it was set to get “even more aggressive” with delinquents and defaulters.

“It’s created some noise in the community,” he added of the Government’s enforcement/compliance offensive. “We’re going to be even more aggressive. There are businesses not paying their fair share.

“Many persons in the business community talk the talk, but when it comes to walking the walk, that’s where the challenge is.”

Mr Wilson said courier company clients were handing them funds to pay due Customs duties and Value-Added-Tax (VAT) on their imports, with “the expectation” this money would be passed on to the Public Treasury.

“That money is going to cars, lifestyles,” he said. “That money is not going See pg b4

PAGE 2, Friday, February 17, 2017

THE TRIBUNE

How corporate Bahamas can help win crime fight Everyone agrees that crime and criminal behaviour cannot be blamed solely on our political leaders. Crime affects everyone and must engage the entire community if it is to be resolved. Criminal activity impacts our economic and social life. Businesses live in fear that their profits, investment and employees will come under attack from assailants seeking to destabilise their well-being.

Our declining moral values as a society must be assessed if we are to combat the forces working against us. Civil society, the business community (including the private and public sector), the three branches of government, the religious community and others must work together in eradicating the criminal element among us. This much is true: Criminals cannot hide when everyone is watching.

This column is to encourage corporate leaders around the country to join the fight for a safer Bahamas, and a crime-free nation. That must be the goal. Other countries have done this successfully and we must not rest until the murder count goes down to zero, and until robberies, rapes, assaults and all other serious or minor infractions cease in our land.

Here is what we must, and can, do:

1.

The workplace usually provides a captive audience for formal and informal training and learning to take place.

Matters pertaining to problem solving, workplace ethics, the moral code of conduct and conflict resolution should be addressed and reinforced often at work.

for a stronger Bahamas, adopted by one local company, rewards good parents who support and feed the academic, musical, sporting and technical success of their children.

Employees must be discouraged from spending all of their hours and weekends in the workplace at the expense of their families.

Start the ‘Go Home’ campaign in your office today.

This advice serves as a preventive tip for companies seeking to hit at the ‘root’ of criminal activity. Employers have 40 hours each week to curb the culture of corruption in the lives of all they employee. Every effort in training, coaching and mentoring employees (particularly the young) must be geared towards steady, positive change.

2.

Sociologists and psychologists among us point to the breakdown in the Bahamian family for the lack of order and civility on the streets.

Businesses are encouraged, then, to focus on developing strong families. Husbands must be encouraged to be responsible fathers.

A beautiful incentive

3.

One of the corrective measures companies can employ is to embrace technological advances with the widespread use of surveillance equipment throughout inner-city communities.

The more camera systems recording throughout the day and evening, the more convictions we

Pictured from L to R: Jackie Carrol, vice-president for Grand Bahama; Bahamas Hotel and Tourism Association; Dr Rodney Smith, president of the University of the Bahamas; Carlton Russell, president of the Bahamas Hotel and Tourism Association; Joy Jibrilu, director-general, Ministry of Tourism; Vernice Walkine, vice-president, allied members, Bahamas Hotel and Tourism Association; Tommy Thompson, deputy director-general, Ministry of Tourism.

will have and, hopefully, deter others from criminal behaviour.

4.

Finally, companies can take more social responsibility by financially supporting programmes developed by churches and other civic organisations.

Sunday and Sabbath School Programmes, Boys and Girls Clubs, bands and choirs for children have proven successful in steering many in positive directions. A little funding in the purchase of equipment, instruments, materials, refreshments and anything else required by such programmes goes a long way in addressing these social ills.

• NB: Ian R. Ferguson is a talent management and

Ian ferguson organisational development consultant, having completed graduate studies with regional and international universities. He has served organsations, both locally and globally, providing relevant solutions to their business growth and development issues. He may be contacted at tcconsultants@coralwave.com.

Pictured from L to R; Robert Sands, Baha Mar’s senior vice-president for external affairs Carlton Russell, president, Bahamas Hotel and Tourism Association; George Myers, lifetime director of the Bahamas Hotel and Tourism Association; Joy Jibrilu, director-general, Ministry of Tourism; Tommy Thompson, deputy director -general, Ministry of Tourism; Fred Lounsberry, chief executive of Nassau/Paradise Island Promotion Board.

New BHTA Board holds first meeting The Bahamas Hotel and Tourism Association (BHTA) held its first Board of Directors and members meeting at the British Colonial Hilton on February 9th.

Its president, Carlton Russell, outlined the BHTA’s strategic goals for 2017, which include advocacy efforts, training and customer service initiatives, and other workforce development efforts with part-

ners such as the University of the Bahamas and Ministry of Education.

Suzanne Pattusch, the BHTA’s executive vicepresident, updated attendees on events, activities and initiatives developed to support Bahamian culture and heritage. Directors and Members provided feedback, and reported on economic performance, the 2017 outlook and concerns in the immediate and medi-

Scotiabank is recognised for Bahamas ‘capabilities’ Scotiabank has been recognised for having the ‘Best Commercial Banking Capabilities in the Bahamas’ by Euromoney, a leading global financial publication.

The recognition came in its recently-released annual Global Private Banking survey. It was one of three categories won by Scotiabank, the others including ‘Best Commercial Banking Capabilities in the Caribbean’ and ‘Best Asset Management company in the Cayman Islands’.

“We are honoured to be recognised by Euromoney as a best-in-class commercial bank in the Bahamas”, said Gregory Stuart, Scotiabank’s director of corporate and commercial banking for Caribbean North.

“We have a diverse team of commercial banking pro-

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fessionals who are committed to leveraging the expertise and capabilities of the team, and our international network, to create customer-centric solutions for our clients. We want to thank them for entrusting us with their business, and we look forward to our continued partnerships in the years to come.”

David Thomas, Scotiabank’s vice-president for corporate finance in the Caribbean region, added: “This recognition is a reflection of our commitment to businesses in the Bahamas, and across the Caribbean.

“Through Scotiabank’s unique footprint, we will continue to create opportunities for our clients to grow locally, across the region, throughout the Americas and globally.”

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um-term future Robert Sands, Baha Mar’s senior vice-president for external affairs, gave an update on the project’s progress, as it continues to engage the BHTA, Nassau Paradise Island Promotion Board (NPIPB), Nassau Airport Development Company (NAD) and Ministry of Tourism.

Michael Reckley, the Bahamas Hotel and Restaurant Employers Asso-

ciation’s (BHEA) executive vice-president, gave an update on the proposed amendments to the Employment Act, plus the planned implementation of National Health Insurance (NHI).

Vernice Walkine, NAD’s chief executive, presented on developments at Lynden Pindling International Airport(LPIA), detailing initiatives designed to improve the passenger experi-

ence.

Dr Rodney Smith, president of the University of the Bahamas, gave a comprehensive presentation on its vision and goals for the immediate future.

Those attending included the Ministry of Tourism’s director-general and deputy director-general, Joy Jibrilu, and Tommy Thompson.Also represented were the Nassau/Paradise Island Promotion Board; Paradise

Island Tourism Development Association; Bahamas Out Island Promotion Board; Grand Bahama Island Tourist Board; Nassau Airport Development Company (NAD), plus directors and members such as hotel owners and executives, airlines, attractions, transportation, destination management companies and supporting services.

San Salvador to benefit from IDB funding

hamas Chamber of Commerce and Employers Confederation’s (BCCEC), added: “Some of the more granular work that we do that we think will benefit the country is the grant we gave for the National Development Plan.

“There is a grant for a sustainable plan for Andros. San Salvador is creating a masterplan as a tourist opportunity, highlighting where the new and old world collide; turning San Salvador into a historical centre. It’s just like what we did in the Dominican Republic or Puerto Rico. That will help to drive tourists to

see the sites.”

Prime Minister Perry Christie has, in the past, foreshadowed the creation of a cultural village on San Salvador which would appeal to tourists, scholars and students and create numerous employment opportunities.

Mr Butler said other grant funded IDB projects in the Bahamas include the Sustainable Cities project and a Memorandum of Understanding signed last year with the Grand Bahama Port Authority and the Inter-American Investment Corporation, a branch of the IDB.

country.”

No detailed explanation was given for the sharp rise in FINCO’s non-interest expenses, which jumped yearover-year by 26.1 per cent to $15.092 million, compared to $11.963 million the year before.

The mortgage lender also hinted at its intention to outsource more services to its majority 75 per cent shareholder, RBC, saying it “continues to seek opportunities for efficiency and

leverage the operational expertise” of the parent.

FINCO’s financials added that existing outsourcing arrangements with RBC were altered in 2016, with “the underlying fees adjusted to better align with the level of service being received”.

Shareholders were also informed yesterday that no dividend will be forthcoming, as FINCO bids to conserve capital in an uncertain mortgage market environment.

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE Inter-American Development Bank’s (IDB) grant funding portfolio for the Bahamas is well over $5 million, a bank executive noted yesterday, hinting that plans for an historic and touristic attraction for San Salvador, which will bring focus to the European discovery of the new world

by Christopher Columbus in 1492, are in the works.

Jerry Butler, Caribbean Executive Director for the IDB, said: “On the grant side of the IDB we have got a grant portfolio with the Bahamas and that’s free money of well over $5 million. It focuses on areas like public private partnerships, agribusiness and small business access to credit.”

Mr Butler, delivering a presentation at the Ba-

FINCO blames Matthew for 15.5% ‘bad’ loan rise From pg B1 servicing.

It is likely that monies normally earmarked for mortgage payments were instead used to fund emergency home repairs and other unanticipated needs in Matthew’s aftermath.

FINCO’s executives add-

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ed: “The other contributing factors were the aging of the non-performing portfolio beyond five years attracting an additional provision, and adjustments to the general provision made to recognise the continued weak economic performance and high unemployment in the

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THE TRIBUNE

Friday, February 17, 2017, PAGE 3

Govt wants 90% of taxes electronically by fiscal year-end

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

The Government is hoping to collect 90 per cent of due tax payments electronically before the 2016-2017 fiscal year-end, a top official yesterday promising it was being “very aggressive” on spending controls.

Simon Wilson, the Ministry of Finance’s financial secretary, said the Government was seeking to largely eliminate cash payments from its revenue collection and administration efforts, in a bid to reduce costs, wastage and fraud/theft.

Addressing the Chamber of Commerce’s State of the Economy 2017 forum, Mr Wilson said businesses could no longer pay VAT and Business License fees “over-the-counter’, and were moving to obtain similar results on real property taxes.

He added that $10 million worth of real property taxes had been paid by credit card during the first month the facility was established at Royal Bank of Canada (RBC), with the bank “surprised” at how much was received.

Departure taxes and

‘Very aggressive’, and ‘quick wins’, on spending Cut 100 mobile packages from BTC Top official laments bureaucratic impediments Customs duties are to be paid by direct deposit, and Mr Wilson said: “Hopefully, before the end of the fiscal year, we will see 90 per cent of taxes collected from the online portal.

“We want to remove cash from the equation completely. It’s difficult, but change that’s necessary.

Most of the Government’s revenue has been collected by cash, and it’s very expensive and hard to manage.”

Many in the private sector would likely dispute Mr Wilson’s assertion that the Government is moving aggressively to control and rein in spending, given that fiscal deficits have persisted and the national debt has continued to rise, despite See pg b5

IDB executive says economic woes are ‘self-inflicted’

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

MOST of the Bahamas’ economic woes are “self inflicted”, according to an Inter-American Development Bank (IDB) executive yesterday.

Jerry Butler, Caribbean Executive Director for the IDB, told the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) “State of the Bahamian Economy Report” forum that many of the challenges being faced are not unique to this jurisdiction.

“The Bahamas is certainly not unique with the problems it is facing,” Mr Butler said. “We have studied these problems from country to country. While every country has a peculiar set of circumstances there is a prescriptive set of policies we can pursue that might solve some of our problems in the Bahamas without having to reinvent the wheel.

“Most of our economic problems are self inflicted.

That means that we can solve them. The real prevailing perception is that we need to better prioritise and plan. Some of our threats

are systemic and cultural but I’m also optimistic that education, training and the right tools can fix these problems.”

He noted that the IDB has produced reports on various issues impacting the country such as the skills gap, de-risking, Britain’s decision to leave the European Union and crime.

A recent IDB report entitled: “The costs of crime and violence: New insights in Latin America and the Caribbean”, revealed that the Bahamas leads the entire Caribbean on economic losses stemming from crime, losing $434 million or almost five per cent of its annual gross domestic product (GDP) to the scourge.

The report shows that out of 17 Latin American and Caribbean countries, only Honduras and El Salvador incur greater annual costs as a proportion of GDP. Mr Butler yesterday urged the Bahamas to examine its strengths, arguing that it is still a leader in the tourism industry. “With tourism, if we diversify and focus on niche tourism like medical tourism, maritime tourism, sports and education tourism, I think there’s an incredible opportunity for this country.”

Top Finance official backs lower Business Licenses

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

The Government’s top financial official yesterday conceded to problems with both Tax Compliance Certificates (TCCs) and Business License fees, agreeing that the latter’s rates “have to be lowered over time”.

Simon Wilson, the Ministry of Finance’s financial secretary, blamed the National Insurance Board’s (NIB) “slow response rate” for delays in issuing TCCs to the private sector, and said the Government had adjusted its processes to compensate.

Addressing the Chamber of Commerce’s State of the Economy 2017 forum, Mr

Wilson blames NIB for TCC issuance delays Insists: Govt won’t do business with tax defaulters Corporate tax long way off due to Govt weakness Wilson said he wanted to see Business License and real property tax rates lowered, and the tax base broadened instead.

He was initially responding to Disa Campbell, Ba-

hamas Waste’s chief financial officer, who argued that “very little regard for the impact on the private sector” had been given when the Government implemented VAT and its other revenue reforms.

She added that it “takes two weeks to get a Tax Compliance Certificate that’s good for four weeks”, and complained about the tight deadlines imposed on Bahamian companies to verify their annual turnover for Business License purposes.

Mr Wilson said the Government now required external auditors to sign-off on a company’s turnover because of rampant underreporting and evasion that had occurred in the past.

“In the old Business Li-

cense system, there was no verification. You put in whatever you wanted to put, and we accepted it” he added.

“Most people are not honest. I said we had to get income verified. The income verification process has been very successful.”

As for TCCs, which companies must produce to either conduct business with the Government or obtain payment for goods and services already rendered, Mr Wilson said he would “be the first to admit there’s a challenge”.

While all agencies under the Ministry of Finance’s control had no difficulty, he conceded there was “a challenge with the response rate See pg b5

Rolle outlines measures to ease access to credit

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

CENTRAL Bank Governor John Rolle yesterday outlined several industries which will be be afforded more flexibility to raise financing from foreign sources should the Central Bank’s latest proposed exchange control relaxations be approved.

Mr Rolle said that the measure is designed to boost economic and business growth while delivering a presentation at the Bahamas Chamber of

Commerce and Employers Confederation’s (BCCEC) “State of the Bahamian Economy Report” forum yesterday.

Mr Rolle said the measures being eyed by the Central Bank and requiring government approval were designed to boost economic (GDP) and business growth by improving Bahamian firms’ ease of access to credit.

“There is nothing in the liberalisation proposal that will make your idea viable if it’s not viable now. You will still have to make sure that your projects are viable,” Mr Rolle stressed.

J.S. Johnson & Company, Limited hereby notifies all of it’s shareholders that based on unaudited results for the quarter ended date was Dec 31st, 2016, the Board of Directors has declared an interim dividend of sixteen cents (16 ) per ordinary share to be paid on Friday, March 3rd, 2017, to all shareholders of record as of Friday, February 24th, 2017,

Among the sectors to likely be impacted, Mr Rolle noted, are agriculture and fisheries, manufacturing, commercial transportation, construction and real estate for residential tourism or second homes, energy and energy conservation, education, telecommunications and ICT. “These are some areas that we believe we can encourage more investments

in the Bahamas,” said the governor. Mr Rolle noted that external financing could be from “individual or institutional investors or financial institutions”. The Central Bank has issued a survey to Bahamian companies in a bid to gain data on the “issues and financial circumstances” facing businesses of all sizes.

IN THE ESTATE OF MAYBELL KEMP, deceased, late of Hudson Street, Blair Estates , Eastern District of New Providence, Bahamas.

Notice is hereby given that all persons having any claims or demands against the above-named Estate are requested to send the same duly certified to the undersigned on or before the 14th March, 2017 . And notice is hereby also given that at the expiration of the time above mentioned the assets of the deceased will be distributed among the persons entitled thereto having regard only to the claims of which the Administrator shall then have had notice.

Roberts, Isaacs & Ward, Attorneys-at-Law, Chambers, Unit 2, Cable Beach Court Professional Centre, West Bay Street, Nassau, Bahamas.

PAGE 4, Friday, February 17, 2017

Govt targets $400m from tax crackdown From pg B1 We’ve not looked at Abaco, we’ve not looked at Eleuthera, and we’ve not looked at Grand Bahama.

We’ve not put in the full strength of compliance.

“We see momentum increasing, and momentum being built. We have, on the metrics, been moving in the right direction on the tax programme.

The Government’s crackdown is targeting four key taxes - VAT, Business License fees, real property taxes and Customs duties, as it bids to enhance cash flows by collecting every cent in taxes due to it.

Mr Wilson suggested yesterday that the effort was being expanded, revealing that the Department of Inland Revenue was focusing on 800 entities, importing/ selling more than $30,000

worth of goods per year, who do no possess or pay for Business Licenses.

He added that some of these 800 might be ‘trade names’ used by persons, as opposed to entities with a physical presence, and said: “We’ve started a pilot project this week looking at those persons.”

Mr Wilson said he and the Government were seeking to avoid new or increased taxes in trying to boost its annual revenues by around four-five percentage points of gross domestic product (GDP).

Total government revenues are currently equivalent to 22 per cent of GDP, with 26-27 per cent required to achieve a Budget surplus, he added.

Mr Wilson said the Government felt it could get there through greater compliance and enforcement,

Bahamas’ ‘growth potential’ down 3% since century start From pg B1 Mr Turunen said the IMF expected the Bahamas’ $6.7 billion national debt, and accompanying ratio to GDP, to “stabilise”, although this was likely to be above the so-called 70 per cent ‘danger threshold’ due to Hurricane Matthew.

However, he added that “the roots” of the problems bedevilling the Bahamian economy and its financial sector lay in this nation’s persistently low GDP growth rates, which factored into high levels of unemployment and violent crime.

Mr Turunen said the Bahamas needed to now simultaneously achieve faster economic growth and push

forward with fiscal consolidation via reduced spending, so that VAT’s revenue gains were not squandered.

“Many of the issues we see in the Bahamian economy and financial sector (non-performing loans) have their roots in the fact growth has been so low,” the IMF’s mission chief to the Bahamas said.

“Real GDP growth has been weak, negative for the past two years. Take out 2010 and 2012, and growth has been negative or zero since the global crisis” of 2008-2009.

The Bahamian economy’s anemic growth had fed into high double-digit unemployment rates, especially among young persons

Courier firms ‘stealing’ from Public Treasury From pg B1 to the Treasury. They were stealing the money, to be frank.”

Mr Wilson cited numerous examples of businesses that had been caught underreporting, and evading, the payment of due taxes to the Government although none were named.

He highlighted an unnamed Bain Town-based liquor store, which had been reporting and pay-

ing Business Licence fees based on an annual $50,000 turnover, when it had been ordering around $8 million in supplies annually.

Mr Wilson said the Department of Inland Revenue had used its powers under the VAT Act to last year obtain from liquor wholesalers/suppliers their entire client list of stores they sold product to.

The Bain Town-based liquor store was at the top of one of these lists, and

and a broadening of the tax base.

“The obvious way to get there is increasing tax rates or finding new taxes,” he acknowledged. “We’ve taken a new approach because the system is sufficient to achieve this by being more aggressive on tax compliance.”

Mr Wilson said there were 24,000 properties in New Providence whose owners had not placed them on the roll for real property tax purposes, and said the Government was taking a “brute force” approach to remedying this and the multi-million dollar arrears that have built up beyond $500$600 million.

“Some of you will have received a second [payment] note for the first time,” Mr Wilson told his private sector audience in relation to real property tax. “We have people going to the door and leaving the bill. To my mind, it’s been one of the success stories.

“A former financial sec-

retary came to the property tax office because they’d got a property tax bill signed and delivered.

“I also got a call from a former permanent secretary and senior official in the public and private sector. He said: ‘Mr Wilson, it’s very disrespectful; a senior civil servant should not have got a demand payment. You should have called me.’ Again, it’s been very effective.”

Arguing that the Government had “been very aggressive in the area of tax reform” since the Christie administration took office, Mr Wilson said that numerous initiatives had been undertaken besides VAT that were “equally transformative” but “below the radar” and “not talked about”.

He added that processes relating to the importation of air and sea cargos had been strengthened, a move that had both boosted revenue yields and helped detect “contraband” smuggling, such as guns and am-

munition.

“Last week we met with the shippers,” Mr Wilson said. “We’d identified significant numbers of shippers allowing goods to come in without proper Business Licenses and names.”

Imposing the ‘3 per cent of gross revenues’ Business Licence fee on the commercial banks had yielded $36 million in annual revenues, he added.

Mr Wilson, though, said the Government had not solely been focused on compliance and enforcement measures.

The removal of the 10 per cent hotel room/occupancy tax had cost the Government around $30 million in annual revenues, he explained, while the Business License had been simplified into two categories - gas stations and all other businesses.

Customs duties had been eliminated on 300 items, while the change from the Cost, Insurance, Freight (CIF) method to Freight on

Board (FOB) had also produced savings for importers and their clients. Mr Wilson said this had saved Japanese car importers around $2,000-$3,000 per vehicle.

“We’ve taken a very aggressive stance in rebalancing the system, looking not only for yield but equity,” the Financial Secretary said, pointing out that VAT had expanded the tax base to include services industries.

“For many businesses, the overall tax burden has dropped. Some businesses, because of the way the tax system was set, were not being taxed equitably. We’ve shifted and rebalanced the system.

“In fairness to what we’re doing, it’s broad-based.

We’re not trying to overburden one sector, even though I believe there are some sectors that are seriously under-taxed.” Mr Wilson did not identify those sectors.

aged 15-24 years-old, where it is around 30 per cent.

“Reading the news about crime, I’m reminded about high youth unemployment,” Mr Turunen said. “At the same time, potential growth has declined.”

He said the Bahamas’ economic growth potential had dropped from between 2.5-4 per cent at the start of the 21st century to around 1-1.5 per cent now - a decline that, at its maximum, is equivalent to 3 GDP percentage points.

“Potential growth was actually high in the 2000s in comparison to the Caribbean, but has declined quite sharply,” Mr Turunen said.

“Our estimate is the potential growth is between 1-1.5 per cent in the medium term.

“There has been a decline in the major factors, labour and capital, but the decline has been driven by negative productivity growth, which has persisted for quite a

while.

“Fundamentally, low productivity growth shows there’s some structural constraints.” Mr Turunen pointed to the Bahamas’ high cost environment, particularly on labour and energy, and sliding ‘ease of doing business’ as the culprits.

Adding that the Bahamas needed to better prepare its high school graduates for the workplace, Mr Turunen backed the concept of a National Development Plan (NDP), but said the “stark negative” growth position meant the IMF would “recommend a shift to implementation” as opposed to the ongoing planning.

To combine faster economic growth with fiscal consolidation (austerity), the IMF executive called on the Government to re-purpose its spending, switching monies from its recurrent (fixed cost) account to invest in infrastructure projects that would enhance

medium and long-term GDP expansion.

Mr Turunen reiterated that the IMF was projecting a 3.5 per cent fiscal deficit for the 2015-2016 Budget period, placing the total amount of ‘red ink’ at between $280-$300 million, well in excess of the Government’s $150 million forecast.

“The deficit has not been eliminated because government spending increased at the same time,” Mr Turunen said.

Referring to the previous speaker, Simon Wilson, the Ministry of Finance’s financial secretary, Mr Turunen added: “I’m sure Simon has a much more interesting story to tell. There has been an increase in spending on all the main components.

The biggest increase is in subsidies and transfers.”

When adjusted for inflation, Mr Turunen said the Government’s spending had been flat in some years,

but it had increased in real terms for the past two fiscal years.

“There has been quite a bit of progress on the revenue side. Now is the time to focus efforts on rationalising spending to ensure fiscal sustainability,” he added.

“The debt is expected to stabilise over the medium term. You don’t want a situation where the debt continues increasing, and that’s not a situation where we see the Bahamas going.”

Mr Turunen said the IMF had projected that the Bahamas’ central government debt would stabilise at 68 per cent of GDP pre-Matthew, but it was now expected to “increase significantly and exceed” 70 per cent.

He called on the Bahamas to Budget and set fiscal targets according to its position in “the hurricane zone”, and to also focus on its total public sector debt and unfunded pension liabilities.

shown to be ordering $5.6 million worth of stock from just one distributor - a sum wildly at odds with its annual Business License filings.

And $2.4 million worth of liquor was supplied by another distributor.

Mr Wilson said the store’s owner was “driving a $200,000 Mercedes”, and added that the Inland Revenue “knew we were correct” in its suspicions when his pastor visited to plead his case.

“He said he sits in the back of the church, always gives us what we want. Go easy on him; he made a little mistake,” Mr Wilson

recalled of what the pastor said.

The Financial Secretary said post-clearance audits of businesses suspected to be inaccurately reporting on their VAT, Business License and/or Customs Duty filings were also producing results.

He added that one business had last week agreed to pay $800,000 in Customs duties, which had previously been evaded due to “under-reporting”.

The issues with courier companies are not surprising, as their clients were telling Tribune Business

last year that the Inland Revenue was pursuing them for alleged outstanding taxes - taxes they thought the couriers had paid on their behalf.

And Charles Turner, the Customs Comptroller, last year told this newspaper that the agency had been experiencing “challenges” in keeping pace with the courier sector, and the surge in imports generated

by Bahamians purchasing online.

He explained that the “tremendous volume increase”, caused by the shift to e-commerce and online ordering, had caused dif-

ficulties in ensuring due import duties were paid on every shipment.

Rather than the large, bulk shipments it has traditionally dealt with in the past, Mr Turner explained that the rapid growth of online retailing and the courier industry was forcing Customs to collect duties on much smaller packages.

Legislative changes accompanying the 2016-2017 Budget were intended to address this, requiring courier companies and freight forwarders to obtain customs broker licenses and give Customs “greater control” over the sector.

N O T I C E FORESTBURG LTD. NOTICE IS HEREBY GIVEN as follows: (a) FORESTBURG LTD. is in dissolution under the provisions of the International Business Companies Act 2000. (b) The dissolution of the said Company commenced on the 14th day of February, A.D., 2017 when its Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said Company is Kobi G. Dorenbush, whose address is 1033 West Bay Road, SMB, PO Box 32348, Grand Cayman Islands, KY1-1209.

Dated the 17th day of February, A.D., 2017.

NOTICE

NOTICE

GERSTALTRADING CORP.

DOKO INVEST LTD.

NOTICE is hereby given as follows: (a) Gerstaltrading Corp. is in Voluntary Dissolution under the provisions of Section 138(4) of the International Business Companies Act 2000. (b) The Dissolution of the said Company commenced when the Articles of Dissolution were submitted to and registered by the Registrar General of the Commonwealth of The Bahamas. (c) The Liquidator of the said Company is Beatus Limited, P.O. Box N7776-348, N.P., Bahamas.

Dated this 15th day of February, 2017.

HARRY B. SANDS, LOBOSKY MANAGEMENT CO. LTD. Registered Agent for the above named Company

Beatus Limited Liquidator

Legal Notice

Legal Notice

NOTICE

NOTICE

INTERNATIONAL BUSINESS COMPANIES ACT (No. 45 of 2000)

INTERNATIONAL BUSINESS COMPANIES ACT (No. 45 of 2000)

SLC INVESTMENTS LIMITED

MYSTERE INVESTMENTS LTD.

“Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act (No. 45 of 2000).

SLC INVESTMENTS LIMITED, is in Dissolution.”

The date of commencement of dissolution is the 15th day of

Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act (No. 45 of 2000), MYSTERE INVESTMENTS LTD., has been dissolved and struck off the Register according to the Certificate of Dissolution issued by the Registrar General on the 3rd day of February,

February, 2017.

2017.

In Voluntary liquidation

Christos Michael, 20 Spyrou Kyprianou Avenue, Cyprus Liquidator

THE TRIBUNE

In Voluntary liquidation

Oliver Billeter Weingartenstrasse 7 8805 Richterswil Liquidator

NOTICE is hereby given as follows: (a) Doko Invest Ltd. is in Voluntary Dissolution under the provisions of Section 138(4) of the International Business Companies Act 2000. (b) The Dissolution of the said Company commenced when the Articles of Dissolution were submitted to and registered by the Registrar General of the Commonwealth of The Bahamas. (c) The Liquidator of the said Company is Beatus Limited, P.O. Box N7776-348, N.P., Bahamas.

Dated this 15th day of February, 2017.

Beatus Limited Liquidator

NOTICE ELF HYDROCARBURES PEROU LIMITED NOTICE IS HEREBY GIVEN as follows: (a) ELF HYDROCARBURES PEROU LIMITED is in dissolution under the provisions of the International Business Companies Act 2000. (b) The dissolution of the said Company commenced on the 15th day of February, 2017 when its Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said Company is Mr. Delano Aranha of Ocean Centre, Montagu Foreshore, East Bay Street, P.O. Box N-3247, Nassau, Bahamas Dated the 15th day of February A.D., 2017.

H & J CORPORATE SERVICES LTD. Registered Agent for the above-named Company

THE TRIBUNE

Friday, February 17, 2017, PAGE 5

Govt targets ‘fiscal balance’ in 4 years From pg B1 in revenues due to its impact on the Bahamas’ main centres of economic activity.

Pointing out that it took almost 19 days, or three weeks, to restore power to all of New Providence, Mr Wilson said the Category Four storm’s impact was magnified because it coincided with a month in which all 6,000-plus VAT registrants - quarterly as well as monthly - were due to file.

“We quantified it as a near $100 million impact in revenue,” Mr Wilson

said, adding that the Public Treasury received “almost zero VAT from Grand Bahama” - the island whose economy was hardest hit by Matthew - with the October filings.

“We’re in the process of trying to recover that,” he added. “We can’t come with a big stick approach. That’s my preference, but we can’t come with a big stick approach.”

Mr Wilson said the Government post-Matthew was having to finance the rebuilding of 92 homes in Grand Bahama, and 53 in

Govt wants 90% of taxes electronically by fiscal year-end From pg B3 the $1 billion-plus collected in VAT. Increased spending by the Government has been blamed for eroding the potential gains from VAT, but Mr Wilson detailed a series of ‘low hanging fruit’ measures that had already produced cost savings.

“We’ve been very aggressive on the expenditure side equally. We have some very significant wins,” he said.

Detailing the bureaucracy inside the Government, he said it had 15 different ways to pay someone, with eight copies of the same letter required when somebody was hired by the public sector. Moving a retiree from employee to pensioner took between three to six months.

Lamenting the absence of a government-wide integrated financial management system, Mr Wilson said the public sector was also “constrained to get the best price”, which meant that it did not always “get the best value” across numerous areas - from construction to technology - if the rules were followed explicitly.

The Government is currently working with the IDB to install a comprehensive financial management system, but Mr Wilson said this was a task that will take “the better part of five

years” with no guarantee it would be done correctly.

He also pointed out that the Government had “not used its buying power”, with different ministries, departments and agencies purchasing items such as water and paper at different prices, even though they were sometimes in the same building.

Mr Wilson said an “eye opening exercise” had been the discovery that the Government was using 100 different mobile calling packages from the Bahamas Telecommunications Company (BTC).

“I discovered you were billing me for things I’d not used for 20-30 years,” Mr Wilson said. “We got significant savings from that.

Why am I paying $1 million a year for cellular services?

We had all these different [packages] consolidated and got significant savings from that.”

He added that the Government had also pushed to reduce its fuel and vehicle fleet costs, while its move to pay vendors by direct deposit had eliminated the potential for Business License fee avoidance via the cashing of cheques and change in trading name.

“Businesses have for years, because of government inefficiency, not made the investments required to keep up with a modern approach,” Mr Wilson said.

WHERE HIT MUSIC LIVES W W W .

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Andros, something he described as “unavoidable” expenditures.

Acknowledging that some may question why the Government was getting involved in home rebuilding, he added: “When you see these people and the conditions they live in, and the right thing to do is move them away them from the vulnerable areas of the coast, that’s something you have to do.”

Mr Wilson admitted that the Christie administration had missed its deficit and debt reduction targets, but maintained that its fiscal consolidation strategy was making progress and would ultimately stabilise the Government’s finances.

“The deficit is going

down; our fiscal position is improving,” he argued.

“Yes, we’ve missed our deficit targets because of known events [hurricanes Matthew and Joaquin], but there’s no question that we’re doing a job in controlling expenditure and improving the revenue base.”

Mr Wilson’s estimate yesterday forecasts that the Government will achieve “fiscal balance”, meaning the elimination of persistent Budget deficits, by the end of the 2020-2021 fiscal year.

This is some five years later than its initial projections, the Christie administration having forecast in its 2013-2014 Budget that it would eliminate the GFS deficit by 2015-2016 - some-

“Businesses have accounts receivables with the Government going back five to seven years.”

The Financial Secretary said these sums were typically ‘discovered’ when companies had difficulty in obtaining Business Licenses and Tax Compliance Certificates (TCCs), and the Government often had no record of receiving such goods or services - having typically issued purchase orders at the end of the fiscal year.

“We have taken the stance that we settle those bills,and then don’t do business with you any more,” Mr Wilson said. “We settle those bills, and I take you from my vendor list.”

He added that when this was threatened, most businesses decided to withdraw their payment claims.

Top Finance official backs lower Business Licenses From pg B3 at NIB - it’s not as quick as we’d like”.

Mr Wilson then added: “The other potential challenge is many businesses have arrears - NIB, Business License fees, real property taxes - with the Government.

“For me, it seems sensible that if you’re doing business with the Government you don’t owe me money, and need a TCC. You should really come with clean hands.

“We’ve changed our processes slightly. We realised for some businesses that the process is a problem.”

Mr Wilson said TCCs could be applied for, and obtained, online, with compa-

thing that did not happen.

Most observers believe the Government’s fiscal projections have been wildly over-optimistic, and too aggressive, but progress has been made. The deficit has been reduced, and the rate of growth in the national debt has slowed, but both at a far slower pace that forecast.

Mr Wilson’s seeming attempt to blame Matthew and Joaquin for blowing the Government off-course are also likely to be met with suspicion, given that it was already missing its fiscal targets prior to the events.

For the fiscal year 20142015, which closed before Joaquin’s arrival, Prime Minister Perry Christie said the Government ultimately

nies also able to “pre-order” the certificates for up to six months.

He reiterated: “My view is that I can’t by law, and I can’t by policy, do business with a business that has no intent of being tax compliant.

“There are some businesses that have no intent to become tax compliant.

There are some businesses that call a politician and complain. I’m not a politician; my job is to ensure that the law is enforced.”

Tanya McCartney, the Bahamas Financial Services Board’s (BFSB) chief executive, then asked whether the Government may be open to a ‘low corporate income tax’ regime, both as a means

ran up a $381 million GFS deficit for the period - almost double the $196 million first projected.

Mr Wilson, meanwhile, said government revenues had increased from 17 per cent of GDP to their current 22 per cent, but added that more was needed if significant fiscal inroads are to be made.

Describing the five percentage point rise as “a significant increase”, Mr Wilson said the Bahamas remained “one of the lowest taxed countries in the Caribbean against peers; at the low end of taxes and taxes collected”.

“We probably need to be around 26-27 per cent to have an overall surplus,” he added. to shed this nation’s ‘no tax’ image and open up double taxation and investment treaty possibilities.

“Over time, we have to lower Business License fees.

Business License fees pose a lot of problems,” Mr Wilson said. “They don’t capture the profitability of businesses properly, and that has to be lowered.”

However, he warned that any move to a ‘low rate’ corporate income tax was some way off, as it “would pose a lot of challenges to us” from a tax administration viewpoint.

“That’s a delicate issue,” Mr Wilson said. “The Government’s tax administration is pretty weak. Even though we’ve done reforms for the past five to seven years, we’ve under-invested in the public sector, and don’t pay the salaries to attract the skill sets we need.”

PAGE 6, Friday, February 17, 2017

THE TRIBUNE

Trump's contempt for trade deals spurs anxiety: What's next?

WASHINGTON (AP) — Donald Trump is moving quickly to dismantle seven decades of American policy built on trade deals and multinational alliances that help fuel the U.S. and global economies.

And no one is sure what will replace them.

The void risks intensifying uncertainty at home and abroad. Without knowing whether trade will be disrupted, business people in the United States and abroad could be forced to rethink their plans.

“The big problem comes when there is uncertainty,” says Marcus Moufarrige of Servcorp, a company in Sydney, Australia, that sells office space and technology services abroad. “Uncertainty stops businesses from making decisions. It stops everything.”

For now, stock prices are soaring as investors focus on Trump’s pledge to cut taxes and business regulations. But his break with

the past is raising worries among some. Fitch Ratings, for instance, warns that the uncertainty surrounding Trump’s policies poses global risks — from disrupted trade relations to confrontations that unnerve investors.

The president’s hostility toward existing trade deals and suspicion of long-term allies is also leaving a vacuum in global leadership — one that China seems eager to fill. President Xi Jinping last month became the first Chinese head of state to attend an annual gathering of business elites in Davos, Switzerland. Xi used the occasion to declare China a champion of free trade, usurping the traditional U.S. role as the leading booster of globalization.

China, the world’s leading exporter, wants to expand its global influence.

Trump has offered few details of his trade plans, beyond pressuring U.S. companies to keep or cre-

ate jobs in America, taking a tougher line in forging deals and slapping tariffs on nations that are deemed to exploit the United States.

“There’s not a lot of substance to his policies,” says Gordon Hanson, director of the University of California San Diego’s Center on Global Transformation. “It consists of two things: Jawboning corporate America — ‘create more jobs here or else’ — and across-the board trade protectionism.”

Companies heavily involved in imports or exports can’t easily develop their business plans without knowing what specific moves Trump will embrace or achieve.

Among the uncertainties: — Will Trump insist on taxing imports if he doesn’t get the concessions he wants from America’s trading partners?

— If America abandons existing agreements, would allies trust it to adhere to any new trade deals?

President Donald Trump signs an executive order to withdraw the U.S. from the Trans-Pacific Partnership trade pact agreed to under the Obama administration, in the Oval Office of the White House in Washington. Less than a month into his presidency, Donald Trump is already dismantling seven decades of American policy by pulling back from established trade agreements, such as the TPP, and questioning longstanding global alliances. (AP Photo)

“There’s not a lot of substance to his policies. It consists of two things: Jawboning corporate America — ‘create more jobs here or else’ — and acrossthe board trade protectionism.”

NOTICE

NOTICE

INTERNATIONAL BUSINESS COMPANIES ACT (No. 46 of 2000)

INTERNATIONAL BUSINESS COMPANIES ACT (No. 46 of 2000)

AVERE BSB INVESTMENTS LIMITED IBC No. 161858 B (In Voluntary Liquidation)

BESTTOYOU INVESTMENTS LTD. IBC No. 197128 B (In Voluntary Liquidation)

NOTICE is hereby given that as follows:

NOTICE is hereby given that as follows:

(a) That AVERE BSB INVESTMENTS LIMITED is in Dissolution under the provisions of The International Business Companies Act 2000.

(a) That BESTTOYOU INVESTMENTS LTD. is in Dissolution under the provisions of The International Business Companies Act 2000.

(b) The Dissolution of the said Company commenced on the 7th day of February, 2017 when the Articles of Dissolution were submitted and registered by the Registrar General.

(b) The Dissolution of the said Company commenced on the 30th day of January, 2017 when the Articles of Dissolution were submitted and registered by the Registrar General.

(c) The Liquidator of the Company is Sterling (Bahamas) Limited of 2nd Floor, Saffrey Square, Bank Lane and Bay Street, Nassau, Bahamas.

(c) The Liquidator of the Company is Sterling (Bahamas) Limited of 2nd Floor, Saffrey Square, Bank Lane and Bay Street, Nassau, Bahamas.

(d) Any person having a Claim against the above name Company are required on or before the 7th day of March, 2017 to send their name, address and particulars of the debt or claim 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 approved.

(d) Any person having a Claim against the above name Company are required on or before the 3rd day of March, 2017 to send their name, address and particulars of the debt or claim 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 approved.

Sterling (Bahamas) Limited Liquidator

Sterling (Bahamas) Limited Liquidator

MARKET REPORT THURSDAY, 16 FEBRUARY 2017

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

BISX ALL SHARE INDEX: CLOSE 1,916.24 | CHG -0.01 | %CHG 0.00 | YTD -21.97 | YTD% -1.13 BISX LISTED & TRADED SECURITIES 52WK HI 4.38 17.43 9.09 3.56 4.70 0.12 7.20 8.50 6.10 10.60 15.48 2.72 1.60 5.83 9.75 11.00 9.25 6.90 12.01 11.00

52WK LOW 2.70 17.43 8.19 3.50 1.77 0.12 3.80 8.15 5.50 7.72 11.00 2.18 1.31 5.80 6.78 8.56 6.12 6.35 11.92 10.00

1000.00 1000.00 1000.00 1000.00

900.00 1000.00 1000.00 1000.00

PREFERENCE SHARES

1.00 106.00 100.00 106.00 105.00 105.00 100.00 10.00 1.01

1.00 105.50 100.00 100.00 105.00 100.00 100.00 10.00 1.01

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

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00 100.00

52WK LOW 100.00 100.00 100.00

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

SECURITY Fidelity Bank Note 17 (Series A) + Fidelity Bank Note 18 (Series E) + Fidelity Bank Note 22 (Series B) +

SYMBOL FBB17 FBB18 FBB22

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

BAH29 BG0103 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407

BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

113.70 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

MUTUAL FUNDS 52WK HI 2.03 3.92 1.94 169.70 141.76 1.47 1.67 1.57 1.10 6.96 8.50 6.30 9.94 11.21 10.46

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.41 1.61 1.52 1.03 6.41 7.62 5.66 8.65 10.54 9.57

LAST CLOSE 4.38 15.85 9.09 3.53 1.77 0.12 4.50 8.50 5.83 10.48 11.93 2.18 1.55 5.83 9.75 10.95 9.25 6.90 12.01 10.00 1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.01 LAST SALE 100.00 100.00 100.00 105.20 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

CLOSE 4.38 15.85 9.09 3.53 1.77 0.12 4.50 8.50 5.83 10.48 11.93 2.17 1.55 5.83 9.75 10.95 9.25 6.90 12.01 10.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.11 100.00 100.00 100.00 10.00 1.01

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

CLOSE 100.00 100.00 100.00

CHANGE 0.00 0.00 0.00

105.20 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

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

VOLUME 125

600 1,000

50

VOLUME

NAV 2.03 3.92 1.94 168.44 141.76 1.47 1.64 1.56 1.04 6.96 8.50 6.30 9.80 11.13 9.63

EPS$ 0.029 1.002 -0.144 0.170 -0.130 0.000 -0.030 0.607 0.430 0.450 0.110 0.102 0.080 0.300 0.520 0.960 0.820 0.294 0.610 0.000

DIV$ 0.080 1.000 0.000 0.210 0.000 0.000 0.090 0.300 0.220 0.360 0.490 0.060 0.060 0.240 0.400 0.000 0.330 0.140 0.640 0.000

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

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

P/E 151.0 15.8 N/M 20.8 N/M N/M -150.0 14.0 13.6 23.3 108.5 21.3 19.4 19.4 18.8 11.4 11.3 23.5 19.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

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

INTEREST 7.00% 6.00% Prime + 1.75%

MATURITY 19-Oct-2017 31-May-2018 19-Oct-2022

6.95% 4.00% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%

20-Nov-2029 15-Dec-2017 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022

YTD% 12 MTH% 4.30% 4.30% 3.82% 3.82% 2.73% 2.73% 3.95% 3.95% 6.77% 6.77% 0.40% 4.04% -1.76% 1.06% -0.34% 2.70% -0.95% 1.55% 4.35% 4.69% 4.13% 4.28% 4.22% 4.64% 6.19% 3.43% 2.77% 2.98% -3.66% -3.90%

NAV Date 31-Dec-2016 31-Dec-2016 31-Dec-2016 31-Dec-2016 31-Dec-2016 31-Jan-2017 31-Jan-2017 31-Jan-2017 31-Jan-2017 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016

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

YIELD 1.83% 6.31% 0.00% 5.95% 0.00% 0.00% 2.00% 3.53% 3.77% 3.44% 4.11% 2.76% 3.87% 4.12% 4.10% 0.00% 3.57% 2.03% 5.33% 0.00%

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

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

— Would Trump risk igniting a trade war whereby other countries impose retaliatory taxes and sanctions on U.S. goods? Will America’s old alliances endure? If not, what replaces them?

Trump argues that the existing order has shortchanged America — especially blue-collar U.S. workers — exposing them to unfair competition with low-wage foreign laborers and to unjust trade practices by China and others.

The result, he said in his inaugural speech, is “rusted-out factories scattered like tombstones across the landscape of our nation.”

“From this day forward,” Trump declared, “it’s going to be only America first.”

His words resonate among communities that blame low-wage foreign competition for the loss of 4.8 million US. factory jobs since 2000 and among families whose incomes have stagnated.

Trump has pulled the United States out of a 12-nation Asia-Pacific trade accord negotiated by the Obama administration.

He’s intent on renegotiating a pact with Mexico and Canada — and dumping it if he can’t improve the version in place since 1994.

He’s questioned NATO’s usefulness, considered slashing America’s financial contribution to the United Nations and bickered with allies Mexico and Australia.

Critics say Trump is tearing down an international system that nurtured peace after World War II, encouraged global commerce, lifted much of East Asia out of poverty and empowered the

United States to become the world’s leading superpower.

“This is the biggest reversal we’ve had since World War II,” says Adam Posen, president of the Peterson Institute for International Economics, a think tank that promotes free trade.

“It does have echoes of the ‘20s and ‘30s, when the U.S. said, to its detriment, that everyone else is ripping us off.”

In Roseville, Illinois, a soybean and corn farmer named Ron Moore had expected to benefit from the Trans-Pacific Partnership with 11 Asia-Pacific countries. The TPP would have pried open Japan’s market to more U.S. farm exports, thereby benefiting U.S. cattle and hog farmers. Moore provides feed to those livestock producers.

“It was going to add value to my soybeans,” says Moore, whose soybeans are shipped down the Mississippi River to New Orleans and often on to China and other foreign markets.

“We’re a little disappointed.”

The TPP had stalled in Congress. But Trump officially pulled out of the deal, saying he could do better by negotiating with countries one on one. Some critics backed his argument. They argued that the TPP would have killed American jobs by exposing U.S. workers to low-wage competition in Southeast Asia.

But the TPP was also a diplomatic effort to counter China’s influence in Asia.

Now, writes economist Gareth Leather at Capital Economics, “the demise of the TPP has created an opportunity for China.”

PUBLIC NOTICE INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, BETTY MAE ROLLE of Jackfish Drive, Carmichael Road, P.O.Box CB11060, Nassau, Bahamas intend to change my name to BETTY MAE STUBBS. 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.

NOTICE

NOTICE is hereby given that JANETTE DUMONT of Johnson Road, P.O.Box N-4133, Nassau, 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 10th day of February, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE NOTICE is hereby given that GUERLAND OMOITHE 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 twenty-eight days from the 10th day of February, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that RICHARD CAVE of Young Street,P.O. Box N4705, New Providence, 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 17th day of February, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

THE TRIBUNE

Global stock market rally runs out of steam

SEOUL, South Korea (AP) — Global stocks turned lower on Thursday as investors became cautious after a days-long run pushed U.S. indexes to record highs.

KEEPING SCORE: Britain’s FTSE 100 was down 0.5 percent at 7,268 while France’s CAC 40 fell 0.4 percent to 4,903. Germany’s DAX slipped 0.2 percent to 11,765. Futures augured a tepid start on Wall Street.

Dow and S&P futures were down 0.2 percent.

US ECONOMY: On Wednesday, reports of stronger retail sales and inflation showed that the U.S. economy was stronger than expected. Consumer prices rose 2.5 percent in January from a year earlier, the highest rate since March 2012. The data give the Federal Reserve more encouragement to raise interest rates, and economists said the possibility is increasing that it may happen at the central bank’s next meeting in March. While higher

rates can weigh on growth, the confidence pushed U.S. stock indexes to new highs.

CORPORATE EARNINGS: Shares in consumer goods companies were under pressure after food and drinks giant Nestle said its earnings were weighed down last year by weak prices. Nestle shares were down over 2 percent in Switzerland after it missed its growth target and said it would have to step up its cost cutting program.

SAMSUNG: Samsung Electronics Vice Chairman Lee Jae-yong attended a court hearing in a bid to avoid his arrest for a second time. South Korean prosecutors investigating a massive corruption scandal that led to the impeachment of President Park Geun-hye suspect that the Samsung heir bribed the president and her friend to win government favors, an allegation that Samsung denies.

Investors weren’t immediately concerned by the possible arrest. Shares of

Samsung Electronics rose 0.8 percent to 1,901,000 won in Seoul.

ASIA’S DAY: Asian markets closed mixed.

Japan’s Nikkei 225 fell 0.5 percent to 19,347.53 while South Korea’s Kospi edged down 0.1 percent to 2,081.84. Hong Kong’s Hang Seng index gained 0.5 percent to 24,107.70 and Shanghai Composite Index rose 0.5 percent to 3,229.62. Australia’s S&P/ ASX 200 inched up 0.1 percent to 5,816.30. Stocks in Taiwan and Indonesia were lower but in Singapore and the Philippines they were higher.

CURRENCIES: The dollar fell to 113.61 yen from 114.02 while the euro strengthened to $1.0635 from $1.0615.

OIL: Benchmark U.S. crude gained 27 cents to $53.38 per barrel. The contract finished 9 cents lower on Wednesday. Brent crude, the international standard, was up 37 cents at $56.12 a barrel in London.

a man fills out a job application at a job fair, in Miami Lakes, Fla. Yesterday, the Labor Department reports on the number of Americans seeking unemployment benefits. (AP Photo)

Applications for unemployment benefits edge up 5,000 WASHINGTON (AP) — The number of Americans filing for unemployment benefits rose slightly last week but still remained at a level indicating a healthy job market.

THE NUMBERS: Claims for unemployment benefits rose by 5,000 last week to a seasonally adjusted 239,000, the Labor Department reported Thursday. The increase came after claims had dropped to 234,000 the previous week, the second lowest reading in the past year.

The less-volatile four-week average edged up a slight 500 applications to 245,250.

That marks 102 consecutive weeks in which claims applications have been below the key threshold of

300,000, the longest stretch since 1970.

THE TAKEAWAY: Jobless claims are a proxy for layoffs. The low level for claim applications suggests that employers remain confident enough in the economy to be focusing on hiring new workers and retaining the employees they have.

KEY DRIVERS: Employers added 227,000 jobs in January as the unemployment rate ticked up slightly to 4.8 percent, still in line with the level that the Federal Reserve views as indicating full employment. The jobless rate rose in January largely because more people entered the labor market to look for work.

Federal Reserve Chair Janet Yellen delivered the Fed’s semiannual economic report to Congress this week. She indicated Fed officials believe the central bank is close to achieving its goals of maximum employment and inflation rising at a modest annual rate of 2 percent.

She noted in her testimony that at the December meeting Fed officials expected to raise rates three times this year. Many private economists believe the first of those increases will not occur until June, giving the Fed more time to assess the potential impact President Donald Trump’s stimulus program of tax cuts and infrastructure spending will have on the economy.

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Friday, February 17, 2017, PAGE 7 People are reflected on an electronic stock indicator of a securities firm in Tokyo, yesterday. Asian stocks were mixed Thursday as investors took profit amid expectations that the Federal Reserve could raise interest rates more aggressively than expected following upbeat U.S. economic data. Japan’s Nikkei 225 fell 0.5 percent to 19,349.97 while South Korea’s Kospi edged down 0.1 percent to 2,081.32. (AP Photo)

PAGE 8, Friday, February 17, 2017

THE TRIBUNE

Take a breath: Stocks slow down after a record-setting run NEW YORK (AP) — The Standard & Poor’s 500 index dipped Thursday to break a seven-day winning streak, its longest in three and a half years, though it remains a nudge away from its record high.

It was part of a pause for stock markets around the world, which have been on a torrid run thanks to an improving economy, stronger corporate earnings and hopes for more business-friendly policies from Washington. The dollar’s value also dipped against rival currencies, and Treasury yields fell as bond prices rose.

The S&P 500 fell 2.03 points, or 0.1 percent, to 2,347.22. The Dow Jones industrial average rose 7.91 points, less than 0.1 percent, to set another record at 20,619.77. The Nasdaq composite dipped 4.54 points, or 0.1 percent, to 5,814.90.

Four stocks fell for every three that rose on the New York Stock Exchange.

Analysts said it wasn’t surprising to see stocks take a break following their long run higher.

“The market has reacted quite strongly to the Trump reflation trade, deregulation and lower-tax comments over the last couple weeks,” said Nate Thooft, senior portfolio manager at Manulife Asset Management. “And on top of that we’ve had a pretty darn good earnings season. It just

the Wall Street entrance of the New York Stock Exchange. Stocks around the world pulled back yesterday, following a record-setting run that marked the longest winning streak in over 3 years for the S&P 500 index.

U.S. stock indexes held close to their all-time highs. The dollar’s value fell against rival currencies, and Treasury yields dipped. (AP Photo)

needs a little bit of a breather today.”

He said he still sees stocks as better investments than bonds.

The day’s largest loss within the S&P 500 came from TripAdvisor, which fell $5.78, or 11 percent, to $46.92 after reporting weaker revenue and earnings for its latest quarter than analysts forecast.

Avon Products, a direct seller of cosmetics, also plunged after reporting weaker-than-expected results. The company said the number of sales representatives, who are famous for selling its products door to door, slipped from a year earlier. The stock dropped $1.09,

or 18.6 percent, to $4.77.

Most companies, though, have been reporting stronger results for the last three months of 2016 than Wall Street forecast.

Medical-waste company Stericycle jumped to the biggest gain in the S&P 500 after its earnings and revenue for the latest quarter topped analysts’ estimates. The stock rose $5.96, or 7.7 percent, to $83.35.

Cisco Systems gained 78 cents, or 2.4 percent, to $33.60, and data-storage company NetApp climbed $1.63, or 4.2 percent, to $40.56 after likewise reporting larger-than-expected profits.

Handbag maker Kate Spade climbed after the company said it is considering options that could include a sale. Its stock, which traded around three-year lows in December, jumped $2.89, or 14.7 percent, to $22.56.

Treasury yields pulled back, giving back some of their increase from prior days. The 10-year Treasury yield fell to 2.45 percent from 2.50 percent late Wednesday. The two-year Treasury yield fell to 1.21 percent from 1.25 percent, and the 30-year yield fell to 3.05 percent from 3.08 percent.

Yields fell even as more encouraging reports on the economy

Big Three automakers say they won’t waver from $1.5B investment in Canada TORONTO - The three largest automakers in North America say they won’t waver in their collective bargaining commitments to invest $1.5 billion in total in their Canadian operations despite the protectionist rhetoric of U.S. President Donald Trump.

“We’re very committed to our manufacturing footprint here in Canada,” Mark Buzzell said Thursday in an interview during a media day at the Canadian International AutoShow.

Ford promised last fall it would inject $700 million into its Canadian op-

erations as part of a labour deal reached with Unifor, which represents about 6,700 workers at the company’s facilities in Ontario.

That money will go towards Ford’s engine plants in Windsor, Ont., and its assembly plant in Oakville, Ont., said Buzzell, who took over as Ford Canada’s president and CEO last month.

“We’ve got a really good globally competitive situation for us here in Oakville,” Buzzell said, adding that the vehicles it produces there — the Ford Edge, Ford Flex, Lincoln

MKX and Lincoln MKT — are exported to more than 100 countries.

General Motors has promised to spend $554 million across its Ontario operations in Oshawa, St. Catharines and Woodstock.

“We’re busily implementing those projects across the three sites,” said Stephen Carlisle, the president and managing director of GM Canada.

A Fiat Chrysler spokesperson said in an email that the company committed to investing $325 million in Brampton, Ont., and $6.4 million in Toronto opera-

tions and “will continue to work within the structure of that agreement.”

Since Trump became president promoting protectionist policies, questions have arisen over whether the automakers remain committed to those investments.

Last month, prior to Trump’s inauguration, Ford scrapped plans to build a US$1.6 billion auto plant in Mexico and shifted investment to the U.S. The company said market forces led to the decision.

Trump has also kickstarted efforts to renegoti-

arrived. Homebuilders broke ground on slightly more projects last month than economists expected, though activity was down from the prior month. A measure of manufacturing in the Philadelphia region suggested that growth is improving, and that figure also beat forecasts.

The reports followed two big ones on Wednesday, which showed that rising optimism among shoppers may be translating into increased spending and that inflation is on the rise. Continued signs of gains in the economy and on inflation could push the Federal Reserve to raise interest rates sooner or more quickly than investors had thought.

Stock markets around the world also slowed Thursday. In Europe, the French CAC 40 fell 0.5 percent, the German DAX index fell 0.3 percent and the U.K. FTSE 100 also slipped 0.3 percent. In Asia, Japan’s Nikkei 225 index fell 0.5 percent, the South Korean Kospi dipped 0.1 percent and the Hang Seng in Hong Kong rose 0.5 percent.

Benchmark U.S. crude rose 25 cents to settle at $53.36 per barrel. Brent crude, the international standard, fell 10 cents to $55.65 a barrel. Natural gas fell 7 cents to $2.85 per 1,000 cubic feet. Heating oil was close to flat at $1.63 per gallon, and wholesale gasoline fell 2 cents to $1.52 per gallon.

ate the North American Free Trade Agreement, spoke of the need to implement border tariffs and withdrawn U.S. participation in the Trans-Pacific Partnership.

Buzzell said it’s difficult to speculate on how such policies could affect the auto sector, but added that Ford is a big proponent of free trade and believes NAFTA has served it well.

He said Ford wants to see trade agreements that are fair, provide an even playing field and prevent currency manipulation.

Carlisle said it’s possible NAFTA could use an update.

“I look at it as it’s a 22-year-old agreement that, surely, it can be improved,” he said, adding life

has changed since NAFTA came into play in 1994.

Trade agreements currently in place could be improved upon by facilitating better cross-border activity and flow of skilled workers, he said.

There is reason for Canada’s automotive industry to feel encouraged despite Trump’s tough talk, said Carlisle, pointing to Monday’s meeting between the president and Prime Minister Justin Trudeau.

During the visit, Trump suggested any changes to NAFTA may be just minor “tweaking.”

“There’s reason to be optimistic,” Carlisle said. “At the same time, nothing to be taken for granted.”

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