05182023 BUSINESS

Bahamas treasure hunter eyeing Nassau museum

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A BAHAMAS-BASED

underwater explorer yesterday said it is “seriously considering” opening a Nassau museum to showcase artifacts recovered from what has been billed as “the most valuable shipwreck in the Western Hemisphere”.

David Concannon, Allen Exploration Group’s spokesperson, told Tribune Business via e-mailed reply to this newspaper’s questions that the company was eyeing a second site to “help offset the challenges” with its Grand Bahama museum caused by relatively low visitor numbers.

Speaking as the House of Assembly passed legal reforms that will enable the Government to double its share of the proceeds from treasure salvaging in Bahamian waters, while halving that of groups such as Allen

• Allen Exploration: Would ‘offset’ Freeport challenges

• New licence regime as locals ‘not benefiting enough’

• Minister challenges licence award ‘in dead of night’

Exploration, Mr Concannon said he was unable to comment on the impact this will have because he had not seen the debate or amendments since he was travelling.

“We have ongoing discussions with the Bahamas Government and an excellent relationship. I am sure this will continue,” he told this newspaper, while disclosing that efforts to recover artifacts from the Nuestra Senora de la Maravillas, the sunken Spanish treasure galleon, were progressing albeit slowly.

“The recovery effort is slowly moving forward. It is painstaking but encouraging,” Mr Concannon revealed. “The same applies to the museum. Its location in the Lucaya Market (Port Lucaya Marketplace) is challenging. Any successful museum relies on foot traffic to draw visitors,

SEE PAGE B5

Cruise port chief in ‘ride the wave’ call

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

NASSAU Cruise Port’s top executive yesterday urged downtown Nassau to “ride the wave” its $322.5m investment has created after a Cabinet minister voiced fears it could take “visitor traffic” away from other businesses.

• ‘Ridiculous’ to say it will take visitor traffic away

Michael Maura, the Prince George Wharf operator’s chief executive, told Tribune Business it was “ridiculous” to suggest that its attractions

- which include a Junkanoo museum, amphitheatre, retail and food and beverage outlets - would suck all passengers away from other cruise-reliant businesses given that its project will bring substantially more visitors to the Bahamian capital. He urged tourism entrepreneurs to “leverage” the

SEE PAGE B6

NAD returns to $322m debt terms compliance

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE NASSAU Development Company (NAD) no longer requires a government “commitment” or waiver from its lenders after returning to full compliance with conditions governing its outstanding $322.313m debt at end-September 2022.

Vernice Walkine, NAD’s president and chief executive, yesterday confirmed to Tribune Business that the Lynden Pindling International Airport (LPIA) has remained in line with its financial covenants ever since and, as a result, no longer requires the

Government’s pledge of financial support to satisfy its bondholders.

“That is correct. Everything fell away once we came into compliance at the end of the September

SEE PAGE B8

Local banks pass anti-financial

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE CENTRAL Bank yesterday hailed the results of a ‘mystery shopper’ style survey of Bahamian financial institutions which found “rigorous evidence” they were in full compliance with efforts to combat financial crime.

The regulator, in a statement, said it had hired Evaluasi, a specialist consultancy in the anti-money laundering world, to pose as a potential client seeking to establish a bank or trust account with multiple Bahamas-based institutions. Describing this as a “shadow shopping”

‘Jobs, jobs and more jobs’:

Staff sought for 700 posts

• British Colonial requires up to 400 for re-open

• And Royal Caribbean, Norman’s Cay need 300

• ‘Most Bahamians who want work can find it’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE BRITISH Colonial resort will hire up to 400 staff before it fully re-opens this December, the Government’s labour chief revealed yesterday, adding: “The majority of Bahamians who want a job can find one.”

Robert Farquharson, director of labour, told Tribune Business the “opportunities are there” as he confirmed that a further 300 job openings will be available at two job fairs later this week where his department is partnering with two major tourism investors.

Besides Royal Caribbean, which is aiming to fill 200 vacancies at its Coco Cay ‘Perfect Day’ destination in the Berry Islands, he added that Exuma Resort Developers Ltd and the SixStar project on Norman’s Cay in the Exumas are also seeking 100 recruits.

Both job fairs will be held at the Department of Labour’s Palmdale offices, with the latter taking place on Friday, June 19, between 10am and 4pm. The cruise giant’s will take place a day later on Saturday, May 20, between 9am and 3pm. Mr Farquharson, in social media postings aiming to “spread the word” about the two events, described the events as “jobs, jobs and more jobs”.

“We have a lot of opportunities becoming available to Bahamians who are interested,” the labour director told this newspaper. “It’s a

exercise, the Central Bank suggested this was the first time it had been done a the behest of a regulator to test its licensees’ Know Your Customer (KYC) or onboarding processes.

crime ‘shadow shopping’

NUESTRA SENORA DE LA MARAVILLAS

MICHAEL MAURA

VERNICE WALKINE

JOHN ROLLE

ROBERT FARQUHARSON

$5.74 $5.74 $5.74 $5.95

EMPLOYEE MORALE KEY TO PRODUCTIVITY

So you have hired a stellar employee to fill a specific role.

Now you need to make sure they stick around, as it is not only about finding a good fit but, rather, keeping them motivated to stay. Every single employee is incredibly valuable as they play a pivotal role in the overall success of a business. Therefore, motivation is critical. Subsequently, here are a few tips to bolster employee morale as anything less can affect performance and result in low productivity.

Vision for success

Ensure that employees identify with the company’s mission, vision, values and goals. These concepts represent the company’s reason for being and, as such, help workers focus their efforts in the right direction.

Remember the target

Setting clear expectations is a great way to motivate employees, as it supports the expected results and contributes to the overall goal and target of the business.

Customary feedback

Conducting an annual employee performance review is clever, but it is not enough. Employees should be updated periodically on good performance. Keep in mind that catching employees in the act, and acknowledging their performance immediately, adds more significance to their role. Involvement

Employees should be involved in work solutions, authorising them to make constructive decisions about daily problems, as

it not only produces confidence but creates staff ‘buy-in’ and commitment for the long-term.

Employee development

Investing in employee development should always remain a priority. Training and other learning opportunities should not be costly, particularly if the skills of internal resources are used properly.

Communicate, communicate, communicate

The art of communication cannot be

underestimated. Engaging, and communicating, the efforts and performance of employees alongside the company’s objectives sets the bar. As we know, everyone processes information differently, and it is helpful to diversify communication, particularly when the information is critical. Just because a communication was sent out, never assume it was understood and accepted. Ask questions to confirm understanding.

Recognising and rewarding good performance

Rewarding workers is one of the most powerful customs to impact morale. Bear in mind that people are motivated differently, whether it be through money, travel, training, promotions or a flexible work schedule. The best way to know is to ask. There is no ‘one size fits all’ approach. Acknowledge good effort, not just results.

Initiate fun There will always be important milestones in the life of every business, so be sure to mark them. Plan a party and celebrate. Do not ever allow yourself to become consumed by daily routine such that you fail to celebrate the achievements of good workers.

Stay positive

A “loving workplace” can often times be referred to as a second family, propelling employees to always look forward to attending and performing eagerly. Therefore it is always important to stay motivated and flourish in the workplace. Always be ready to yield amazing results. Until we meet again, fill your life with memories rather than regrets. Enjoy life and stay on top of your game.

• NB: Columnist welcomes feedback at deedee21bastian@gmail.com

About Columnist: Deidre M. Bastian is a professionally-trained graphic designer/brand marketing analyst, author and certified life coach

ELON MUSK’S STARLINK WILL ‘RAISE BAR’ IN OUT ISLANDS

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

FAMILY Island companies yesterday voiced optimism that Elon Musk’s Starlink satellite Internet service will “raise the bar” by giving them access to more reliable and affordable communications that are essential to their competitiveness.

Chris Cates, principal of the Eleuthera-based Lumber Shed, told Tribune Business that it is a “struggle” to obtain reliable Internet and mobile services and a “third competitor would certainly raise the bar” compared to incumbents Cable Bahamas, Aliv and the Bahamas Telecommunications Company (BTC).

Ramon Darville, Darville Lumber’s general manager in Exuma, added: “No matter where you go for telecommunications on this island, it’s a constant struggle. I know about Elon Musk and Starlink, and I know of a few people on the island that have the Internet. I can tell you it’s pricey, but they have ways of setting it up where people can share it. I’ve never been on it, but from what I have heard, Starlink is worth every penny and I welcome it. I think it is the way of the future.”

Darin Bethel, president of the North Andros Chamber of Commerce, said permitting Starlink to operate in The Bahamas is “good to see” because “BTC and Aliv’s performance has been inconsistent over time”.

He added: “The country made a sacrifice in letting go of BTC, and the rewards of that sacrifice is to create a market where the cell phone companies will compete, so what is happening now is that is coming to fruition.”

Mr Bethel said the “world is going digital now” and moving further away from wired services, with Starlink’s expansion just one example of that. He added:

“I see nothing wrong with Starlink coming. This is not a problem. As said, we have already made the decision to go down this road when we

sold BTC. Let’s just hope the service gets better.”

The Utilities Regulation and Competition Authority, on February 15, 2023, granted a class operating licence and class spectrum licence to Starlink Services Bahamas, which was represented by the Lennox Paton law firm. Starlink is an affiliate of Elon Musk’s SpaceX, which is not only seeking to offer satellite Internet services but also mobile services.

Starlink and SpaceX are backed by the considerable financial resources of Mr Musk, the Tesla/Twitter magnate and entrepreneur, who has been ranked by both Forbes and Bloomberg’s Billionaires Index as the world’s second richest man with an estimated net worth between $167bn and $176.2bn. Starlink’s Internet and, potentially, mobile satellite services would also appear to have a market in the Family Islands where Cable Bahamas and BTC’s networks do not extend.

Starlink’s arrival has already sparked Cable Bahamas to accelerate the roll-out of its fibre-to-thehome network infrastructure in response to the competitive “threat” posed by Mr Musk’s firm. Franklyn Butler, the BISX-listed communications provider’s chief executive, said: “We see a threat from Starlink, which was licensed by URCA a couple of months ago.

“We have to improve our service, be alert to what is happening around the sector from a telecommunications perspective, and listen to our customers and meet their needs. We are in a digital transformation that started before the pandemic, and gathered speed through the pandemic, and we have to recognise that customers are serious about having their needs met.”

Cable Bahamas, in its feedback to URCA’s proposed 2023 annual plan, said then that “the new and fast developing satellite to mobile industry, which is being pushed globally by new commercialised satellite companies, cannot be ignored”.

BAHAMAS MUST ‘STEP UP GAME’ ON TREASURE REGIME

By FAY SIMMONS

THE Prime Minister yesterday conceded that The Bahamas must “step up our game” and better protect its underwater cultural heritage as Parliament debated legislation to double the Government’s share from treasure salvaging.

Philip Davis KC, leading the House of Assembly discussion on the Antiquities, Monuments and Museums (Amendment) Bill 2023, asserted that the reforms will better enable the Government to “establish firm control” over exploration and salvaging activities in Bahamian waters and prevent priceless historical artifacts from being taken without any benefit to this nation and its people.

Through the Bill’s amendments, the Davis administration is revising the present formula that splits the proceeds from underwater treasure salvaging 75/25 between the explorer and the Government. The majority of the economic benefits thus go to the explorer, but the reforms debated in the House of Assembly yesterday will change this so that they are split equally - or 50/50 - with the Government.

Besides now receiving 50 percent of the proceeds from all licensed treasure salvaging in Bahamian waters, the Government will also get “first preference” in selecting its share of the recovered artifacts as well as the right to retain those deemed vital to “natural patrimony”.

The Antiquities, Monuments and Museum (Amendment) Bill 2023, in its “objects and reasons” section, states: “This Bill seeks to amend the principal Act to provide for any recovered artifacts to be shared between the Government and the licensee,

with each to receive 50 percent, and the Government to have first preference in selecting its share of the recovered artifacts.

“The Bill also seeks to amend the regulation making power to prescribe the maximum period for which a particular type of licence may be granted.”

Mr Davis said that, as the largest island archipelago bordering the Atlantic, The Bahamas needs to ensure proper mechanisms are in place to police the recovery and preservation of underwater artifacts. This is especially since multiple shipwrecks - some estimated to have sunk carrying treasure worth in the millions - lie in its waters.

He said: “It’s our goal to establish firm government control over this invaluable heritage. We are the largest Atlantic archipelago and our waters hold an amazing and vast treasure trove envied by the world. “To do this effectively, we need to step up our game.

“We need to train our people better and more efficiently. We need to make sure that when someone dives into the depths to recover our heritage, they know exactly what they’re doing. We need new regulations to ensure that our treasure is not pirated or removed without proper law enforcement mechanisms in place for recovery and preservation.”

Mr Davis reassured that the Bill will facilitate the conservation of Bahamian heritage artifacts and enable the Government to keep a “close eye” on what is recovered from the seabed. He said: “We want to ensure efficient business for those who meet industry standards for recovering treasure, while also safeguarding and conserving heritage assets for our Bahamian people.

“Bahamians want a fair shake in the industry, too, and this amendment will do just that. We’ve revised

the licensing fees to speed up the review process and ensure we’re keeping a close eye on recovery and conservation efforts.”

The Prime Minister said the Government will hire three new archaeologists, set up a conservation laboratory to preserve the Government’s share of artifacts and is looking to collaborate with universities to enhance the country’s scientific diving and archaeological programmes.

He added: “We’re strengthening our archaeology section by bringing in three new scientists who will be specially trained for this task. Our team will go through specialised training in underwater archaeology, scuba diving

and conservation. We’re excited to announce that we’re setting up a conservation lab dedicated to preserving the Government’s share of recovered artifacts. This is our commitment to safeguarding our treasures.

“We’re actively talking to folks at the Rosenstiel School of Marine, Atmospheric and Earth Science, University of Miami, and the University of The Bahamas. We’re planning to collaborate with them, to tap into their knowledge, to enhance our programmes in underwater archaeology, scientific diving and environmental science.”

Mr Davis said the Bill, and its accompanying regulations, will define a

maximum period for each type of licence granted.

“This Bill also brings some changes to the principal Act. We’re making sure that any recovered artifacts are equally shared between the Government and the licensee. Plus, we’re defining a maximum period for each type of licence that can be granted,” he added.

“Reviewing and revising the management of our underwater cultural heritage isn’t just an option; it’s an essential task. Our cultural heritage isn’t confined to the borders of our islands. It’s significance ripples out far and wide across the globe. This is why it’s so crucial that we, the Government of The Bahamas, exercise firm control over its management.”

Mr Davis said programmes that highlight underwater cultural conservation will be added in local schools and colleges.

“We need the support and co-operation of each and every citizen. We’re therefore looking to engage with local communities, encouraging them to be a part of this journey. After all, it’s

their heritage, too. We need to bring our youth into the fold,” he added.

“We need to ensure that they understand the value of our heritage, why it’s important, why it needs to be preserved. They are the custodians of our future, and it’s crucial that they appreciate the richness and diversity of our past. That’s why we’re planning on introducing programmes in our schools and colleges that focus on our underwater cultural heritage. We want to create a generation that’s not just aware of our history but takes pride in it.”

Mr Davis said the Government is considering using digital tools to make recovered artifacts more accessible. “Furthermore, we’re looking to tap into the potential of technology. Digital tools can help us document, analyse and present our underwater cultural heritage in ways that weren’t possible before. They can bring our history to life, make it accessible to everyone, everywhere,” he added.

PHILIP DAVIS KC

BAHAMAS STRIPING’S $50M CONTRACTOR EMPOWERMENT

BAHAMAS Striping is empowering Eleuthera and Long Island contractors to drive road repairs and other infrastructure upgrades by providing access to the $50m financing it has raised.

The Nassau-based group, in a statement, said it has engaged Rowdy Boys Construction Company, Quick-Fix Construction Company and NuView Construction Company as recipients of funding which will be used to progress public-private partnerships (PPPs) involving seawalls, sidewalks, playgrounds and other projects in addition to roads.

The initiative is designed to kickstart construction progress following several years of “slow and unsuccessful” activity. Dominic Sturrup, the Bahamas Striping Group of Companies’ executive chairman, explained how its business model will work.

“Growth is assured when a business group’s interests are closely aligned with national interests,” he said. “Determined and active nation building is a credo that is close to our hearts as a group, and our reputation for project work excellence has elevated the brand and brought success to the company.

“We know that we cannot be on every island, and cannot do every project ourselves. We also know that all Bahamians can have a piece of the economic pie. However, all of us don’t have the network, reach and ability to get funds approved. PPPs are especially suitable because money is given upfront.”

In its revised funding model, financiers will advance Bahamas Striping funds to carry out specific public infrastructure projects. The Government pays Bahamas Striping, and its financiers, on the back-end

via installment payments spread out over three to five years.

The funding also pays for the acquisition, or leasing, of the necessary construction equipment and gives the Government financial breathing room to take on and prioritise other commitments while Bahamas Striping retains all liabilities. In its previous business model, Bahamas Striping raised funds to execute its own projects.

Mr Sturrup said: “The first time seeking funding, whether locally or internationally, is always tough. Once you go through the initial process, however, funders get to know you, understand you and trust you to deliver on time and within budget. We motivate future investments as funders see the work done.

It is our goal to empower other Bahamian companies to do the same.”

The three contractors engaged by Bahamas Striping meet its and Ministry of Works standards. Bernard Knowles, Rowdy Boys Construction Company’s president, said his 28 yearold firm has been especially challenged with raising the necessary project financing.

“The Bahamas Striping Group of Companies support means a lot to me because I never left Long Island, and there’s not a lot of opportunities here. I have a lot of staff that I struggle to keep, so this is a way for me to also hire more people. Bahamas Striping has taken the initiative to believe in me and, by getting this big project going, I hope some skilled Long Islanders will want to return home now we have work,” Mr Knowles added.

Quick-Fix Construction Company’s president, Elton Symonette, said partnering with Bahamas Striping means being able to get jobs

started right away. The 39 year-old company is hoping for a long-term relationship with its Nassau counterpart.

“Getting things going in our community moves Eleuthera’s economy. It is also important for us to empower our people instead of going out of the country. When Eleutherans work in Eleuthera,

our money stays here,” he added. Nu-View Construction Company’s president, Peter Kemp, said: “I am well pleased to note that a Bahamian contractor has received the contract to do road repair for Eleuthera. This is the first time, especially for local contractors, to be able to get this amount

of work subbed out to them from another contractor.

“This is something that you really don’t see on Family Islands. Most contractors come and do most work themselves with no sub out. I am very pleased that they are coming on the island and giving back, especially for the locals.”

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FROM L to R: Benjamin Knowles, Rowdy Boys Construction Company; Dominic Sturrup, executive chairman, Bahamas Striping; Alfred Sears KC, minister of public works; Frederica Sturrup, senior vice-president of operations and human resources, Bahamas Striping; Bernard Knowles, president, Rowdy Boys Construction Company; Atario Mitchell, president, Bahamas Striping; Barry Knowles, Rowdy Boys Construction Company.

FROM L to R: Juan Symonette, chairman, Quick Fix Construction Company; Dominic Sturrup, executive chairman, Bahamas Striping; Alfred Sears KC, minister of public works; Frederica Sturrup, senior vice-president operations and human resources, Bahamas Striping; Elton Symonette, president, Quick Fix Construction Company; Atario Mitchell, president, Bahamas Striping; Sean Symonette, vice-president, Quick Fix Construction Company.

Photos: Marky G

Mr Sturrup said: “Bahamas Striping’s track record proves that with available funding, smooth roads and other projects can bring economic growth to Eleuthera and Long Island. Keeping money on the ground benefits every contractor’s employees, family, friends and their local community. “Both islands face similar challenges. As we continue to work with other Bahamian companies, we empower them and help the Government. It is a winwin as financial benefit is instant, construction activity increases, roads become safer and projects, overall, are completed quicker. The Bahamas Striping Group of Companies is always committed to making The Bahamas better.”

Bahamas treasure hunter eyeing Nassau museum

and this location is not in a high traffic area.

“Despite this, the museum hosts a lot of school visits, and the Allens are delighted with this. Educating schoolchildren fits perfectly within their philanthropic interests, so it does not matter if this is not a source of revenue generation. Despite the challenges with the museum on Grand Bahama, the Allens are seriously considering opening a second museum facility in Nassau. If this is located in a high traffic area, it will help offset the challenges in Port Lucaya.”

Through the Antiquities, Monuments and Museums (Amendment) Bill 2023, the Davis administration is revising the present formula that splits the proceeds from underwater treasure salvaging 75/25 between the explorer and the Government. The majority of the economic benefits thus go to the explorer, but the reforms debated in the House of Assembly yesterday will change this so that they are split equally - or 50/50 - with the Government.

Besides now receiving 50 percent of the proceeds from all licensed treasure salvaging in Bahamian waters, the Government will also get “first preference” in selecting its share of the recovered artifacts as well as the right to retain those deemed vital to “natural patrimony”.

The Antiquities, Monuments and Museum (Amendment) Bill 2023, in its “objects and reasons” section, states: “This Bill seeks to amend the principal Act to provide for any recovered artifacts to be shared between the Government and the licensee, with each to receive 50 percent, and the Government to have first preference in selecting its share of the recovered artifacts.

“The Bill also seeks to amend the regulation making power to prescribe the maximum period for which a particular type of licence may be granted.” The changes are given effect by reforms to the existing Act’s section 13.

“Any artifacts recovered by a licensee under a licence to survey for, or recover, underwater cultural heritage shall be shared between the Government and the licensee with each to receive 50 percent of the total value measured by points, and the Government shall have first preference in selecting its share of the recovered artifacts,” the Bill stipulates. It adds that, “notwithstanding” the terms set out in that clause, “the Government and the licensee shall agree in writing that government’s retention of any underwater cultural heritage artifacts, which are important to the protection of the natural patrimony, may exceed the Government’s 50 percent share in certain years with the imbalance to be corrected by future divisions”.

This means that, while in certain years the Government’s share of treasure salvaging proceeds may exceed 50 percent as it secures artifacts deemed important to Bahamian culture and history, this will be smoothed out in future years. Jomo Campbell, minister of state for legal affairs, yesterday argued in Parliament that the Government and Bahamian people have not received their due share of benefits from underwater salvaging and treasure/artifact recovery.

“There have been occasions where valuable booty, treasure, has been found and the Government and the Bahamian people have gained some benefit but not enough benefit in my view,” he argued. “Treasure hunters, researchers and the like who come to our country must receive permission from the Government to explore our land and waters in any way.

“Should they find anything of value, these amendments ensure the Bahamian people become equal partners in the proceeds of this exploration.” Meanwhile, amendments to the regulations accompanying the Antiquities, Monuments and Museums Act also set out the new terms, costs and conditions for obtaining

underwater exploration and recovery licences.

Mr Campbell said no person or entity will be able to hold more than two such licences “at any one time”, and they will be restricted to a maximum of one ‘exploration’ licence and one ‘recovery’ licence. “The minister shall not issue more than two licenses per person or entity at any one time,” he added.

“Notwithstanding paragraph one, the minister cannot issue more than one exploration licence for a person or entity at any one time, or more than one recovery licence per person or entity at any one time.” Mr Campbell said the reforms also restrict exploration areas to 25 square nautical miles, although this limit can be expanded upon the recommendation of the Antiquities, Monuments and Museums Corporation (AMMC).

“The maximum size of the area for which a recovery licence may be granted shall be limited to the size required to encompass the archaeological remains from which recovery is licensed, which shall be expressed with specific co-ordinates. Every area, which is subject to an exploration licence or recovery licence, shall include at its perimeter a buffer zone of 10 nautical miles,” Mr Campbell said. He added that the cost of an exploration licence would be $100,000 and a recovery licence would be $250,000. This, Mr Campbell said, would “protect underwater cultural assets and ensure that exploration companies have a suitable level of financial resources.”

“Considering the staggering amounts of money that have been associated with the value of treasure buried in our waters, or ships that sank in our waters, it’s only fair that any proceeds of treasure discovered be shared with the owners of the property where it was found. That is the Bahamian people,” Mr Campbell added.

Tribune Business was previously informed by Bahamians who have worked

in, and with, the underwater exploration industry that the 75/25 proceeds split in the sector’s favour is standard practice in Florida and other jurisdictions where it is present so that salvagers can gain sufficient return on investment.

However, the Government will likely retort that itselfand the Bahamian people as tax-paying citizens - deserve a greater share of the rewards from their natural patrimony and historical assets that lie within the country’s territorial waters. It can also argue that the revised legislation creates a better, fairer deal in the Bahamian public’s interest.

This newspaper was also informed that the former Minnis administration was encouraged to push for the same 50/50 proceeds split, and enact the same reforms to the Act, now being pushed through by the Davis administration. However, it signed-off on Allen Exploration’s licence before making such moves, and thus was locked in to the 75/25 arrangement.

Keith Bell, minister of labour and Immigration, yesterday challenged the Opposition and former Minnis administration to explain how Allen Exploration was seemingly awarded its licence “in complete darkness” with the Bahamian people only becoming aware of this thanks to this newspaper’s reporting. He asserted that the moratorium on such applications appeared to have been lifted “in the dead of the night”.

The Bahamas, and successive administrations, have long struggled to get to grips with underwater exploration and treasure salvaging within this nation’s territorial waters, which resulted in a long-standing moratorium on new licences until the one granted to Allen Exploration.

Lacking the necessary expertise and resources to conduct proper oversight, together with the required regulatory regime, The Bahamas has allowed many of these sites to be pillaged and ransacked by unauthorized foreign salvors. This

has resulted in many Bahamian artifacts appearing at overseas auctions and sales without this nation receiving a cent in benefits for them.

Yet the sector holds muchneeded economic and fiscal potential for The Bahamas should it get it right. One industry source, asked about the sector’s potential value to The Bahamas, simply responded: “Billions”. They added: “The second and third most valuable wrecks

in the entire western hemisphere are located off Grand Bahama.

“It would be an entire industry. It has the ability to effectively put Freeport back on the map. You’re talking about billions in artifacts, and I mean billions. You’ve got from conservation of artifacts to research to study to inventory. The question is where is the transparency and the accountability.”

Cruise port chief in ‘ride the wave’ call

upgraded Nassau waterfront, instead of feeling “threatened” by it, after Jomo Campbell, minister of state for legal affairs, suggested in the House of Assembly that some downtown operators “may die a slow and painful death” from the cruise port retaining a greater share of visitors at its facilities.

Mr Campbell, who made no mention of the potential for Royal Caribbean’s $110m Paradise Island project having precisely the same effect, indicated he was reflecting the concerns of his straw vendor constituents in Centreville. “I fully understand the need to provide a welcoming environment for visitors to our country,” he said as MPs debated reforms to the Antiquities, Monuments and Museum Corporation (AMMC) laws.

“As the world’s second most popular cruise port, Nassau must have a terminal that complements our tourism product. However, we must remain concerned that certain tourist attractions in the downtown area will receive less visitor traffic and, as a result, may die a slow and painful death. We must do everything we can to ensure that this does not happen.”

Referring specifically to the Straw Market, Mr

Campbell added: “Straw vendors have been selling products in Rawson Square since the 1950s. The Straw Market and several straw market vendors have played significant roles in our nation’s history. While we can all agree that there are perhaps some improvements needed in the Straw Market, I truly hope that straw vendors see an increase in business and not a decline.”

The minister also challenged Nassau Cruise Port over the $8m investment it is supposed to make in improving downtown Nassau’s appearance as part of its 30-year lease and operational agreement with the Government. He questioned when it will “fulfill its obligation to invest $8m towards the beautification of downtown”.

Mr Maura, in response, told Tribune Business that Nassau Cruise Port’s agreement with the Government gives it until one year after construction is completed to make that $8m investment. With Prince George Wharf’s re-opening set for the weekend of May 26-28, this gives it until end-May 2024 but, notwithstanding that, the cruise port chief said it has already made investments it was not obligated to undertake.

“First of all, the concession agreement provides

for the $8m to be spent no later than one year after construction has been completed, which is the end of May 2024,” Mr Maura said. “Notwithstanding that, we have undertaken various investments that we have contributed.

“It was the Government’s obligation to relocate the various tenants from the Prince George Wharf area to some place outside the port so that construction could commence and it never did that. We had to undertake the cost of relocating those tenants outside the port.

“In addition to that, we undertook renovations to the tourism building that sits between East Street and Parliament Street just to the north of Rawson Square. We made investments in that property with the blessing of the Downtown Nassau Partnership (DNP), which is the entity specifically identified in the concession agreement,” Mr Maura added.

“The DNP is the entity Nassau Cruise Port works with in terms of identifying those areas around downtown to receive the financial support... We have made improvements but we have until May 2024.” As for Mr Campbell’s concerns about the redeveloped port sucking passengers away from Bay Street and other

Bahamian-owned businesses, Mr Maura said this was exactly the opposite of what its $322.5m overhaul was intended to - and will - achieve.

Noting that passenger numbers for 2024 are forecast to grow by 400,000 year-over-year to 4.6m, based on confirmed cruise ship bookings, he added that at peak capacity the expanded Prince George Wharf will bring 30,000 tourists to Nassau thus making for “plenty to go around”.

“When we bring in about 30,00 people a day, and even on days with 15,000, that’s a lot of people,” Mr Maura said. “To say that they will all stay at Nassau Cruise Port is ridiculous. They want to get out of the port, meet people and experience new things. There’s plenty to go around.

“I passionately encourage business owners that can to take a look at their business, take a look at their product and remain in touch with the market and what people are looking for. People should be leveraging what Nassau Cruise Port has done, not feel threatened by it. They should be riding the wave Nassau Cruise Port has created, and draw those additional passengers into their business.”

Reiterating that Nassau has consistently ranked

second or third from bottom in cruise passenger satisfaction surveys measuring the guest experience, with Freeport one of the few destinations faring worst, Mr Maura said that in redeveloping the city’s waterfront the port had been “very specific” in its approach by partnering with local businesses and focusing on authentically Bahamian goods and services.

“We have intentionally sought to promote our Bahamian culture, our Bahamian heritage, and intentionally stayed away from luxury brands and food and beverage franchises,” he added. “These are intended to begin to elevate the visitor experience and complement businesses in downtown Nassau.”

With Nassau’s visitor satisfaction ranking expected to improve due to the revived waterfront, Mr Maura said increased cruise passenger numbers mean there are “more to go around”. He added: “For people to say they are concerned about losing business, I would understand someone feeling that way if they are not prepared to up their game.

“It’s not that Nassau Cruise Port made substantial improvements to the waterfront, but other businesses in the downtown

area have remodelled their businesses and storefronts. If there’s a neighbour on Bay Street that has not invested, not sought to improve their product, I can understand why there’s some anxiety.”

Turning specifically to the Straw Market, Mr Maura said he has had discussions and meetings with Alfred Sears KC, the minister responsible, and also took the Straw Market Authority Board on a tour of the cruise port. He added that they were able to see the various advertisements, both at the piers and on the “upland” side, directing passengers to the Bay Street Straw Market. He added that the two sides had also discussed ways to better market and promote the Straw Market, including by focusing on specific artisans and vendors to give it a human touch, so that the Nassau Cruise Port can “push the Straw Market brand”.

“We are working, and will be working, with the Straw Market,” Mr Maura said, pointing out that one of the exits and entrances to the Nassau Cruise Port, as well as the amphitheatre, were directly opposite the Straw Market entrance. He added that the Straw Market has also hired a marketing firm to promote its brand and its artisans.

‘JOBS, JOBS AND MORE JOBS’: STAFF SOUGHT FOR 700 POSTS

confirmation that the job market is extremely strong. We are so excited about the opportunities becoming available and, in addition to that, we just got confirmation that the British Colonial will be opening in December this year and they’ve indicated they will be hiring between 300-400 staff as well. The opportunities are there.”

The downtown Nassau resort, which closed in early 2022, will have to find a new brand and operating partner after its agreement with Hilton came to an end. It is presently said to be undergoing renovations by owner, China Construction America (CCA), and persons passing the property have noticed increased activity in recent weeks.

While CCA and the British Colonial are likely still some months away from recruiting the majority of the resort’s staff, when combined with this week’s two job fairs it means that up to 700 posts are becoming available to qualified Bahamians who are available and willing to do the work. However, in the case of both Norman’s Cay and Coco Cay, the latter of which ranks as Royal Caribbean’s leading destination for customer experience, they must be prepared to relocate.

“We need to encourage our young people to come in and take advantage of the opportunity to find employment. There are opportunities in multiple disciplines,” Mr Farquharson said, describing the job fair series where the Department of Labour has partnered with multiple employers as “extremely fruitful, extremely productive”.

Asked how many total hirings these events have produced over the past several years, he added: “We are quantifying some numbers now, and anticipate that when Mr [Keith]

Bell gives his presentation during the Budget debate he will be able to give a definitive answer on how many Bahamians have been employed through the job fair.

“We see employers approaching us now, seeing the sense of working with the Department of Labour and we are bearing the fruit of that partnership in the tourism and hospitality sector, in the construction sector, in the retail industry and multiple businesses in the manufacturing sector. They are approaching us and asking us to help them find qualified Bahamians to fill positions in their establishments.”

Mr Farquharson said employers were able to exploit the Department of Labour database that has registered more than 60,000 Bahamians and their particular skills. “We have the database, and everything is electronic and digital. Employers see that as a plus,” he added.

Asked whether the labour market is at the point where every Bahamian seeking work can find it, he told Tribune Business: “I’m not sure we’re at that position yet, but the majority of people who want a job can find a job. The opportunities are plentiful.”

The Government’s labour chief said the Department is prepared for between 400-600 persons to attend this week’s job fairs. “Royal Caribbean says that, depending on what happens, they are prepared to move to North Andros and

have a job fair there, and are prepared to go to Grand Bahama and have a job fair there because the opportunities are there,” he added. “The opportunities are there so young people who are unemployed, come out and take advantage.”

Mr Farquharson said this week’s employability workshop and job fair, held at the National Training Agency on Gladstone Road, had been “extremely successful” by attracting 100 persons who had “acquired new skills” in preparing resumes, getting ready for job interviews and how to dress for them.

Representatives from the Bahamas Human Resources Association and Bahamas Chamber of Commerce and Employers Confederation (BCCEC) were among the presenters and, on the second and final day, some 15 different employers conducted job interviews with the 100 attendees who were given the chance to secure employment.

The Department of Labour’s next job fair, meanwhile, will be held at the Fox Hill Community Centre on June 17 “for people who live in the eastern area”. And, the day prior, a similar seminar to this week’s National Training Agency event will be held so attendees are prepared for job interviews.

Mr Farquharson said the Department of Labour is also planning to restart its ‘labour on the campus’ events in September, October and November this year, partnering with the likes of

the Bahamas Technical and Vocational Institute (BTVI) and employers to help prepare students in grades 10-12 for the world of work. The labour chief added that he was also looking forward to receiving results from the Bahamas National Statistical Institute’s (BNSI) ongoing Labour Force survey, as this will provide “good data on where exactly the unemployment rate stands in The Bahamas”.

The Department of Labour will also use the data to assess which age groups are being hired, or not hired, at its job fairs; discrepancies between male and female employment, and whether more focus needs to be placed on a particular job market segment; and sectors where there are high unemployment levels.

For this week’s job fairs, Exuma Resort Developers is seeking air conditioning and kitchen technicians; pool maintenance staff;

plumbers; electricians; painters; “white glove” carpenters”; engineers; and generator and aquatics mechanics. While recruits will have to relocate to Norman’s Cay, meals and accommodations will be provided.

As for Coco Cay, Royal Caribbean wants to fill lifeguard, kitchen, restaurant, bar tender, electrician, chef, laundry, mechanic, generator, technician and housekeeping vacancies.

NAD returns to $322m debt terms compliance

quarter,” she told this newspaper. The waiver granted by NAD’s financial investors, which was extended due to the airport’s passenger numbers and revenues almost completely drying up at COVID’s peak, is also no longer required.

That had temporarily freed NAD from having to maintain a debt service coverage ratio of at least 1.3 to one, and the airport operator as a “precautionary measure” had obtained the waiver’s extension until December 31, 2022. Ultimately, that extension was not needed because NAD’s debt service coverage ratio had rebounded to 1.36 to one - well within the limits stipulated by its financing conditions.

“It turned out that we didn’t actually need to avail ourselves of that, but it was something the lenders thought was important for us to have,” Ms Walkine added. NAD’s had previously anticipated the debt service coverage breach

would persist through at least end-September 2021, and secured an agreement from its senior debt holders to waive this condition until end-June 2022 in the hope it would provide sufficient breathing room for both the tourism industry to rebound and to rebuild its finances. Its estimate appears to have been almost bangon, given that the LIPA operator had returned to compliance by end-September 2022. “On June 30, 2022, the debt service coverage ratio was 1.25 to one,” NAD’s 2022 annual financial statements revealed.

“This was not an ‘event of default’ under the senior financing agreements as the amendment and waiver agreement obtained by the company on November 25, 2020, remains effective through to June 30, 2022, unless there was an event of default under the senior financing agreements resulting in the termination of the debt service coverage ratio waiver by the senior noteholders.

“The amendment and waiver agreement also provided for additional interest of 0.75 percent that would accrue on the senior debt in the event that its assigned credit rating falls below ‘BB-’. Such additional interest would be payable in eight equal quarterly instalments from September 30, 2025. As at the date of approval of these financial statements the senior debt was rated by Fitch as ‘BB-’.”

No payments were made to bondholders in the year to end-June 2022 because NAD was also non-compliant with the 1.4 to one debt service coverage ratio required to trigger this.

“Subsequently, as a precautionary measure against possible non-compliance of the debt service coverage ratio up to December 31, 2022, management requested and obtained, on September 30, 2022, an extension to the amendment

and waiver agreement,”

NAD’s 2022 financial statements added.

“[This] provided for a waiver of the debt service coverage ratio covenant through to December 31, 2022, unless there is an event of default under the senior financing agreements resulting in the termination of the debt service coverage ratio waiver by the senior noteholders.

“The commitment letter to the senior noteholders

by the Government of The Bahamas was also extended to December 31, 2022. All conditions of the previous waiver and commitment letter remained unchanged. On September 30, 2022, the debt service coverage ratio was 1.36 to one and the debt service reserve account was fully funded in compliance with the senior financing agreements.”

NAD’s external auditors, PricewaterhouseCoopers (PwC) Bahamas, while again flagging up the “going concern” issues created by the covenant breach, did not qualify the accounts for the 12 months to end-June 2022. Financial statements for previous years indicated that the Government’s commitment letter, promising to support the airport operator financially if necessary, was critical to securing the debt service coverage ratio given that both developments occurred on the same day. And this, in turn, was vital to ensure NAD was treated as a ‘going concern’ for accounting purposes.

LYNDEN PINDLING INTERNATIONAL AIRPORT

MINISTER: OUR HERITAGE MUST BE ‘ZEALOUSLY SAFEGUARDED’

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net

A CABINET minister yesterday said The Bahamas’ underwater cultural heritage must be “zealously safeguarded” to ensure that this nation and its people maximise the potential financial and other benefits.

Jomo Campbell, minister of state for legal affairs, speaking during the House of Assembly debate on the Antiquities, Monuments and Museums (Amendment) Act 2023, said: “We have a very rich history that dates back to a time way before Christopher Columbus made landfall here. Our history, beauty, all the symbols, relics and artifacts of such magnitude should be zealously safeguarded.

“This is the mandate of the Antiquities, Monuments and Museum Cooperation (AMMC). The legislation which governs the Corporation says it this way: ‘The AMMC is to provide for the preservation, conservation, restoration, documentation, study and presentation of sites and objects of historical anthropological, archaeological and paleontological interests to establish a national museum and for matters ancillary there to or connected with’.”

Referencing the Spanish galleon, Nuestra Senora de las Maravillas (Our Lady of Wonders), which sank in Bahamian waters in the 1600s with a treasure haul that was last year valued at over $1.6bn, Mr Campbell said Bahamians do not benefit enough from the many shipwrecks that have occurred within the country’s territorial boundaries.

He added: “Over the decades and centuries, there have been many shipwrecks that have occurred within

our borders which speculators are willing to search for in hopes of finding something of value. Every single year there are explorers, researchers and others who seek permission to conduct their quests in Bahamian waters. “There have been occasions where valuable treasure has been found, and the Government and Bahamian people have gained some benefit, but not enough benefit in my view.”

The Centerville MP said the legal reforms seeks to ensure Bahamians benefit from the artifacts recovered by explorers, and explained that they provide for the Government to obtain half the total value of any recoveries and have first preference in selecting artifacts.

“Treasure hunters, researchers and the like that come to our country must receive permission from the Government before they can explore our waters or land in any way. Should they find anything of value, this amendment seeks to ensure that the Bahamian people become equal partners in the proceeds of these explorations,” Mr Campbell added.

“Any artifacts recovered by a licensee under licence to survey for or recover underwater cultural heritage

shall be shared between the Government and the licensee, with each to receive 50 percent of the total value measured by points and the Government shall have first preference in selecting its shares of the recovered artifacts.”

Mr Campbell said the amendments allow the Government to retain artifacts above the profit-sharing 50 percent mark, and that any artifacts recovered that are important to the protection of the national patrimony can exceed this share.

He explained: “This Bill also seeks to amend the principal Act in order to preserve and protect the national patrimony or, in layman’s terms, the assets of this country. It ensures that explorers understand that the Government of The Bahamas may keep artifacts valued above the profitsharing percentage.

“The Government and the licensee shall agree in writing the Government’s retention of any underwater cultural heritage artifacts which are important such that the protection of the national patrimony may exceed the government’s 50 percent share in certain years, with the imbalance to be corrected by future divisions.”

TAKE NOTICE that anyone having a claim against the Estate of EUGENE

ARNAUD PYFROM late of Dicks Point, Nassau, The Bahamas, who died on the 18th day of February 2022, may submit such claim in writing to the law firm of MAILLIS & MAILLIS, Chambers, Fort Nassau House, Marlborough Street, Nassau, Bahamas, tel: (242) 322-4292/3, fax: (242) 323-2334, Attention: Alexander P. Maillis II, ON OR BEFORE the 1st June, A.D., 2023.

JOMO CAMPBELL

Local banks pass anti-financial crime ‘shadow shopping’

Of the 50 institutions initially approached by e-mail, the regulator said just 16or 32 percent - responded to some 250 solicitations to establish a client relationship. “This demonstrates that The Bahamas is not a particularly welcoming jurisdiction for unsolicited potential client approaches,” the Central Bank added.

“Most happily, 100 per cent of the engagements between the 16 responding firms and the ‘shadow shopping’ team evidenced that the responding institutions provided upfront disclosure of the relevant anti-money laundering requirements, notably the Know Your Customer (KYC) rules coupled with FATCA (US Foreign Account Tax Compliance Act) and CRS (Common Reporting Standards) reporting requirements.

“This result is similar to a 2020 multi-country exercise conducted by the Evaluasi researchers, in which

a smaller set of Bahamian institutions also recorded a perfect compliance result. The Bahamas was one of only four jurisdictions to do so.” The survey findings also come close behind last December’s findings that The Bahamas has achieved perfect ‘40 out of 40’ compliance with the Financial Action Task Force’s (FATF) anti-financial crime recommendations.

“The 2023 shadow shopping result, in addition to the 2020 result, gives good assurance that Bahamian banks and trust companies demonstrate a strong compliance culture,” the Central Bank added. “Furthermore, banks and trust companies are only willing to on-board clients that can satisfy the relevant KYC as well as FATCA and CRS reporting requirements consistent with international standards codified in the legal and policy frameworks of this jurisdiction. “These results are also consistent with the Central Bank’s examination and

supervision results. Broadly, the Bahamian international banking and trust sectors do not welcome dubious new clients.” Evaluasi, in its full report, said the findings showed potential clients either have to undergo a full KYC check or else they would be unsuccessful in opening a bank or trust account in The Bahamas.

“Of course, this study is not an exhaustive examination of compliance and regulatory processes in The

Bahamas and should not be interpreted as a blanket determination that Bahamian financial institutions are compliant with the full range of their regulatory obligations,” it added. “However, it does constitute rigorous evidence that there is broad-based compliance with important preliminary processes that would impede or prevent attempts at illicit financial activity.

“The finding of no noncompliance in our sample of Bahamian licensees suggests a number of avenues for further investigation. First, are other similar country contexts as compliant, or does The Bahamas stand out as a high performer? It would be valuable to implement the same ‘shadow shopping’ exercise in other, similar contexts.

“Second, will this behaviour change over time? Can we expect Bahamian institutions to maintain this high level of compliance as economic, financial, institutional, international and other variables change? It would be especially interesting to investigate how the next MER (Mutual Evaluation Report) and CFATF (Caribbean Financial Action Task Force) may change compliance,” Evaluasi continued.

“Third, it would be useful to expand the study to corporate service providers (CSPs). CSPs may be engaging some of the banks that did not respond to our inquiries, and may provide a back door to anonymous banking or trust formation. Fourth, changing the profile and/or depth of the approach to make the noncompliance more appealing for the banks could lead to crucial additional knowledge about compliance. In sum, the high compliance uncovered in this study offers helpful but narrow comfort about the state of anti-money laundering compliance in The Bahamas.”

The fake ‘clients’ purported to come from a variety of countries and regions, including Europe, Latin America and Asia. Evaluasi said: “We received 33 responses from our 238 initial inquiry e-mails (a response rate of 13.9 percent). We found no non-compliance.

“All e-mail inquiries were coded into one of the following categories: direct reference to KYC regulations (5 percent), e-mail conversation ends before we have all information (9 percent), or there is no response to our initial inquiry (86 percent). We consider all of these to illustrate a lack of non-compliance....

“Ten responses explicitly stated their commitment to KYC regulations; 13 of the responses specifically referenced the need for certain information to meet KYC requirements; 13 requested an in-person or phone meeting; and nine referred us to a tax lawyer. There is

clear overlap in these elements. For example, most responses that stated a commitment to KYC rules also requested information/ documents to comply with these requirements.”

Evaluasi continued:

“From our engagement with the licensees, it seemed that they were invested in knowing and clearing their customers prior to opening business relationships with them. The study showed that banks are wary of unknown customers and prioritised a meeting or phone call.

“They are also reluctant to engage with areas outside of their expertise, as we learned from the low response to the commercial bank account request and from the consistent referrals to a tax lawyer. The low response to the bank account request may be a result of banks feeling suspicious of a potential customer and choosing to avoid the question of compliance by refusing to engage altogether, though this conclusion is speculative.

“There is also the consideration that Bahamian institutions as a group are more focused on crossborder trust and funds management business than on cross-border banking business. What this approach does not show us is how banks would respond when asked for a compliance breach by a known and high-wealth customer, or when engaging with someone who presents themselves as a more knowledgeable and/ or higher value customer.”

John Rolle, the Central Bank’s governor, said in a statement: “This ‘shadow shopping’ exercise demonstrates that the Central Bank will take a more proactive and more holistic approach to assessing the state of anti-money laundering compliance within this jurisdiction supplemental to its traditional supervisory tools.

“We want our industry to demonstrate exemplary anti-money laundering compliance, which in this instance they have done. This is not to say that our supervised institutions are perfect in an anti-money laundering compliance sense, but this and many other findings suggest that Bahamian banks and trust companies are among the stronger groups globally when it comes to avoiding new clients who cannot demonstrate clean sources of funds.”

THE CENTRAL BANK OF THE BAHAMAS

RULE WOULD FORCE CLEAN-UP OF TOXIC COAL ASH

DUMPED IN LANDFILLS, PONDS NEAR POWER PLANTS

By MATTHEW DALY Associated Press

THE Environmental Protection Agency is strengthening a rule aimed at controlling and cleaning up toxic waste from coal-fired power plants.

A proposal announced Wednesday would for the first time require safe management of so-called coal ash dumped in hundreds of older landfills, “legacy” ponds and other inactive sites that currently are unregulated at the federal level.

EPA Administrator Michael Regan said the plan would hold polluters accountable for controlling and cleaning up coal ash, a byproduct of burning coal in that can pollute waterways, groundwater, drinking water and the air. Coal ash contains contaminants such as mercury, chromium and arsenic associated with cancer and other health problems.

“Ensuring the health and safety of all people is EPA’s top priority, and this proposed rule represents a crucial step toward safeguarding the air, groundwater, streams and drinking water that communities depend on,” Regan said in a statement.

If finalized, the rule would help protect underserved and minority communities already overburdened by pollution, reflecting the Biden administration’s commitment to environmental justice, Regan said.

“Many of these communities have been

disproportionately impacted by pollution for far too long,’’ he said, noting that power plants, chemical plants and other large industrial sites are commonly located in poor and minority neighborhoods.

The proposed rule follows an EPA proposal last week to impose new limits on greenhouse gas emissions from coal- and gas-fired power plants — the Biden administration’s most ambitious effort to roll back planet-warming pollution from the power sector, the nation’s second-largest contributor to climate change.

The agency also has proposed rules to crack down on polluted wastewater from coal-burning power plants and limit emissions of

mercury and other harmful pollutants from coal-fired power plants, updating standards imposed more than a decade ago.

The coal ash rule follows a legal settlement between the agency and public interest groups, including the National Association for Advancement of Colored People, Sierra Club and Clean Water Action.

The groups said in a lawsuit that a 2015 EPA rule on coal ash failed to regulate a large portion of coal ash pollution in the United States.

Earthjustice, an environmental group that represented the coalition that sued EPA, called the new proposal a major win for communities near

coal-fired power plants. The revised rule extends federal coal ash regulations to most coal ash disposed at power plants and extends federal monitoring, closure and cleanup requirements to hundreds of older landfills, ponds and dump sites that previously were excluded, the group said.

“This is a really big deal, said Lisa Evans, senior counsel for Earthjustice.

“The Biden administration is standing up for people near hazardous coal waste sites around the country. For far too long, a large portion of toxic coal ash around the U.S. was left leaching into drinking water supplies

without any requirement that it be cleaned up.’’

The EPA proposal tightens a loophole that allowed many power-plant owners to avoid “cleaning up the toxic mess they created,’’ Evans said. “Power plants will finally lose their hall pass to leave coal ash wherever they dumped it.’’

EMISSIONS rise from the smokestacks at the Jeffrey Energy Center coal power plant as the suns sets, near Emmett, Kan., Sept. 18, 2021. The Environmental Protection Agency is moving to strengthen a rule aimed at controlling and cleaning up toxic waste from coal-fired power plants. A proposed rule announced Wednesday, May 17, 2023, would require safe management of so-called coal ash dumped in areas that currently are unregulated at the federal level.

Photo:Charlie Riedel/AP

Russia agrees to extend Ukraine grain deal in a boost for global food security

By SUZAN FRASER AND COURTNEY BONNELL

Associated Press

RUSSIA agreed to a twomonth extension of a deal that has allowed Ukraine to ship grain through the Black Sea to parts of the world struggling with hunger, Turkish President Recep Tayyip Erdogan announced Wednesday, a boost to global food security after the war drove up prices. Turkey and the U.N. brokered the breakthrough accord with the warring sides last summer, which came with a separate agreement to facilitate shipments of Russian food and fertilizer that Moscow insists hasn’t been applied.

Russia had threatened to bow out if its concerns were not ironed out by Thursday. Such brinkmanship isn’t new: With a similar extension in the balance in March, Russia unilaterally decided to renew the deal for 60 days instead of the 120 days outlined in the agreement. Russian Foreign Ministry spokeswoman Maria

Zakharova said Wednesday that problems would need to be resolved “at the technical level.” Neither she nor Erdogan mentioned any concessions Moscow may have received.

“We will continue our efforts to ensure that all the conditions of the agreement are fulfilled so that it continues in the next period,” said Erdogan, who announced the highly anticipated decision two days after being forced into a runoff in Turkey’s presidential election.

Extending the Black Sea Grain Initiative is a win for countries in Africa, the Middle East and parts of Asia that rely on Ukrainian wheat, barley, vegetable oil and other affordable food products, especially as drought takes a toll. The deal helped lower prices of food commodities like wheat over the last year, but that relief has not reached kitchen tables.

“Ukrainian and Russian products feed the world,” U.N. Secretary-General António Guterres said.

“They matter because we are still in the throes of a

record-breaking cost-of-living crisis.” Deputy Prime Minister Alexander Kubrakov welcomed the extension, but emphasized that the deal “has to work effectively.” On Facebook, he blamed Russia for dragging its heels on joint inspections of ships by Russian, Ukrainian, U.N. and Turkish officials.

Average daily inspections — meant to ensure vessels carry only food and not weapons that could aid either side — have steadily dropped from a peak of 10.6 in October to 3.2 last month. Shipments of Ukrainian grain also have declined in recent weeks.

Russia had denied slowing the work. No vessels

have been cleared to enter Ukraine’s three open ports since May 6, and Kubrakov says nearly 70 vessels are waiting in Turkish waters to participate. Russia, meanwhile, is shipping record amounts of its wheat through other ports. Critics say that suggests Moscow was posturing or trying to wrest concessions in areas such as Western sanctions.

The deal has allowed over 30 million metric tons of Ukrainian grain to be shipped, with more than half that going to developing nations. China, Spain and Turkey are the biggest recipients, and Russia says that shows food isn’t going to the poorest countries.

Guterres has said developed countries bring in Ukrainian corn for animal feed, while emerging economies receive “a majority” of grain for people to eat. He noted exports bring prices down for everyone.

“Looking ahead, we hope that exports of food and fertilizers, including ammonia, from the Russian Federation and Ukraine will be able to reach global supply chains safely and

predictably,” the U.N. chief said Wednesday. The U.S. said Russia should stop creating hurdles to the deal.

“We should not need to remind Moscow every few weeks to keep their promises and to stop using people’s hunger as a weapon in their war against Ukraine,” State Department deputy spokesman Vedant Patel told reporters. Russia is expected to export more wheat than any country ever has in one year, at 44 million metric tons, said Caitlin Welsh, director of the Global Food Security Program at the Center for Strategic and International Studies. Trade flows tracked by financial data provider Refinitiv show that Russia exported just over 4 million tons of wheat in April, the highest volume for the month in five years, following record or near-record highs in several previous months. Exports since last July reached 32.2 million tons, 34% above the same period from last season, according to Refinitiv.

WORKERS load grain at a grain port in Izmail, Ukraine, on April 26, 2023. The United Nations is racing to extend a deal that has allowed for shipments of Ukrainian grain through the Black Sea to parts of the world struggling with hunger, helping ease a global food crisis exacerbated by the war that Russia launched more than a year ago.

Photo:Andrew Kravchenko/AP

NEW RULE TARGETS COLLEGE PROGRAMS THAT LEAVE GRADS WITH LOW INCOME, HIGH DEBT

By COLLIN BINKLEY AP Education Writer

COLLEGE programs that leave graduates underpaid or buried in loans would be cut off from federal money under a proposal issued Wednesday by the Biden administration, but the rules would apply only to for-profit colleges and a tiny fraction of programs at traditional universities.

The Education Department is calling it a significant step toward accountability for the nation’s colleges. With more students questioning the value of a degree, the measure aims to weed out low-performing programs and assure students the cost of tuition will pay off in the long run.

“Investing in a college degree or career certificate is supposed to pay off — instead, too many students are getting ripped off every single year,” Education Secretary Miguel Cardona said in a call with reporters.

Opponents, however, say the scope is too narrow to help most students.

Known as gainful employment, it revives an Obama-era policy that was dismantled by the Trump administration before it took full effect. It was enacted amid a federal crackdown on for-profit colleges that contributed to the closure of several chains accused of fraud, including Corinthian Colleges and ITT Technical Institute.

Like the Obama rule, the new proposal would apply to all programs at for-profit colleges, but only to certificate programs at traditional universities. Opponents say it creates a double standard, with the potential to kill off hundreds of programs at for-profit colleges while leaving other programs unscathed even if they leave students buried in debt.

“The rule unfairly targets programs at proprietary institutions and fails to account for the unique challenges facing students and communities that career-oriented programs serve,” said Jason Altmire,

president and CEO of Career Education Colleges and Universities, an industry trade group.

The proposal could take effect no sooner than July 2024. The federal government must first collect and review public comment. It’s sure to draw outrage from Republicans in Congress, who have called the policy an attack on the entire forprofit college industry.

The proposal would put college programs through two tests to determine whether they’re serving students well.

The first test would check whether a program’s graduates carry heavy student debt compared to their earnings. Programs would pass if their graduates have annual loan payments averaging no more than 8% of their total income, or 20% of their discretionary income.

A second test would check whether at least half of a program’s graduates earn more than working adults in their state with only a high school diploma.

Programs that fail at least one test would need to warn students that they’re at risk of losing federal money. Those that fail the same test twice in any three-year period would be cut off from federal aid. That amounts to a death sentence for most programs, especially at for-profit colleges that rely heavily on students who use federal financial aid to pay for tuition.

The Education Department says the rule would help an estimated 700,000 students who would otherwise enroll at one of nearly 1,800 low-performing colleges.

Cardona said the agency can’t keep sending taxpayer money to programs “that cost students an arm and a leg and then leave them in a ditch, unable to climb the economic ladder. It’s not right and it’s not sustainable.”

A separate part of the proposal would release new information showing students the true cost of programs across all types

of colleges. The Education Department would publish data detailing the amount students pay for individual programs — including, tuition, fees and books — along with their student debt levels and earnings after graduation.

“We need to equip students and families with the facts before they take on a mountain of debt,” Cardona said.

The rule is expected to put many for-profit college programs in jeopardy. At nonprofit colleges, it would have no effect beyond certificate programs, which often focus on career training. It

would not apply, for example, to bachelor’s degrees or most graduate programs. Supporters say the policy targets the riskiest programs. Students who attend for-profit colleges typically borrow more and default on their loans at higher rates. Student Defense, an

advocacy group, called it a strong proposal that establishes “basic rules of the road” for colleges.

The proposal comes at a time of flagging faith in higher education. Fewer young Americans have been going to college, a shift that experts attribute to rising

FLAGS decorate a space outside the office of the education secretary at the Education Department, Aug. 9, 2017, in Washington. College programs that leave graduates underpaid or buried in loans would be cut off from federal money under a proposal issued Wednesday, May 17, 2023, by the Biden administration, but the rules would apply only to for-profit colleges and a tiny fraction of programs at traditional universities.

tuition costs, a strong job market and the shortcomings of pandemic schooling.

Hoping to restore public trust, the Education Department has been exploring how to hold colleges accountable for the outcomes of their graduates.

Photo:Jacquelyn Martin/AP

WALL STREET RISES WITH HOPES US MAY AVOID DEFAULT

By STAN CHOE AP Business Writer

WALL Street rallied Wednesday on hopes the U.S. government can avoid a potentially disastrous default on its debt.

The S&P 500 climbed 1.2%, with much of the gain coming after President Joe Biden said he’s confident “America will not default.”

The Dow Jones Industrial Average rose 408 points, or 1.2%, while the Nasdaq composite gained 1.3%.

Biden’s comments came after House Speaker Kevin McCarthy said late Tuesday that Democrats and Republicans could reach a deal by the end of the week, though the two sides remain far apart. They’re staring down a June 1 deadline, which is when the U.S. government could run out of cash unless Congress allows it to borrow more.

A default could rock the financial system because Treasurys are assumed to be the safest possible investment on Earth, and economists say it would likely cause widespread damage across the economy.

Wednesday’s spurt came after a long, listless stretch where the S&P 500 did not move by 1% over a week, up or down, for six straight weeks. That’s its longest such stretch since 2019.

Congress has raised the nation’s debt limit many times in the past, and most have occurred without much impact on the stock market, according to Chun Wang, senior research analyst at Leuthold. The fear is something similar to 2011 occurring.

That’s when Standard & Poor’s cut its credit rating for the U.S. government as it dithered in raising the debt limit. The downgrade coincided with a debt crisis flaring in Europe, and they together sent Wall Street on a neck-snapping roller coaster for a week.

Stocks of companies that get much of their revenue from the federal government, and thus may have much to lose if it can’t pay its bills, rose Wednesday.

Lockheed Martin climbed 2.1%, and Northrop Grumman gained 2.7%.

The debt negotiations are just one of the issues hanging over Wall Street. Worries are also high about a possible recession hitting later this year because of much higher interest rates

meant to get painful inflation under control.

One of the main positives that’s kept the economy out of a recession so far has been resilient spending by U.S. households. They’ve continued to spend even as manufacturing, the U.S. banking system and other parts of the economy have cracked under the pressure of high rates.

Target offered some potentially encouraging data on the strength of shoppers when it said its profit fell by less last quarter than analysts feared.

But it also said that it’s seeing softening sales trends early this year, and it did not raise its forecast for full-year earnings. Its stock rallied 2.6%.

A day earlier, Home Depot raised worries when it cut its financial forecasts for the year after describing pressures across its business. Walmart is the next big retailer to report its results, and it’s coming up on Thursday. Retailers are among the last of big U.S. companies to report their profits for the start of the year. Most companies in the S&P 500 have turned in earnings that were better than analysts feared. But they’re still on pace to finish with a second straight quarter of drops in profit from year-ago levels.

Besides the “profit recession” underway, pressure on the U.S. banking industry has also raised worries on Wall Street. Investors have been hunting for the next possible weak link following three high-profile failures since March.

Banks are struggling with high interest rates, which have caused some customers to pull their deposits in search of higher yields at money-market funds and other accounts. The leap higher in interest rates over the last year has also knocked down the values of many of the investments banks hold.

Much scrutiny has been on Western Alliance Bancorp and other smaller and mid-sized banks, which has led to wild swings in their stock prices. Western Alliance recovered some of its losses after it gave an update on its deposit levels through May 12, among other data. It jumped 10.2% Wednesday, though it’s still down 41.6% for the year so far.

PacWest Bancorp, another bank under heavy

Minnesota gets $60.5M in settlement with e-cigarette maker Juul, tobacco giant Altria

By STEVE KARNOWSKI

Associated Press

MINNESOTA settled its lawsuit against e-cigarette maker Juul Labs and tobacco giant Altria for $60.5 million, Attorney General Keith Ellison announced Wednesday, saying the total is significantly higher per capita than any other state that sued Juul over youth vaping and marketing practices. The state’s lawsuit was the first and still the only one of thousands of cases nationwide against the e-cigarette maker to reach trial. It settled just ahead of closing arguments last month, but the terms had to be kept confidential for 30 days until the formal papers were filed publicly with the court.

Ellison said Minnesota got the big settlement precisely because the state took Juul to trial. He said the sum exceeds what Juul made in Minnesota from 2015 to 2021.

“We were the only state willing to take this battle to trial and hold the bad actors accountable. It sends a message that you cannot get away with this,” Ellison said at a news conference with Gov. Tim Walz. “We will put you in front of a Minnesota jury and you can take your chances.”

Most of the other cases have settled, including dozens with other states and U.S. territories. The largest settlement came last month when it was announced that Juul Labs will pay $462

scrutiny, rose 21.7% to trim its loss for the year to about 75.8%.

All told, the S&P 500 rose 48.87 points to 4,158.77.

The Dow gained 408.63 to 33,420.77, and the Nasdaq added 157.51 to 12,500.57.

In the bond market, Treasury yields climbed.

The yield on the 10-year Treasury rose to 3.57% from 3.54% late Tuesday. It helps set rates for mortgages and other important loans.

The two-year yield, which moves more on expectations for action by the Federal Reserve, rose to 4.16% from 4.08%.

In markets abroad, Japan’s Nikkei 225 gained 0.8% after data showed the world’s third-largest economy grew at its strongest pace since April-June 2022. Stocks fell 2.1% in Hong Kong and were mixed amid modest movements in Europe.

million to six states and the District of Columbia to settle lawsuits related to its marketing tactics. As part of that deal, Juul pledged not to market its products to anyone under the age of 35 and to limit the amount customers can purchase in retail stores and online.

Ellison said ahead of the state’s trial that he was seeking more than $100 million in damages. His spokesperson, John Stiles, told reporters Wednesday that if Minnesota had settled on the same terms as the six states and the District of Columbia, it would have gotten about $30 million, or as little as $15 million if it had accepted the terms most other states did.

Not only will Juul and Altria pay $60.5 million, Ellison said, they’ll pay more a third of it within 30 days and more than 60% within a year. The state will get about $43 million after litigation costs and attorney’s fees.

Legislation is pending to dedicate the money to tobacco prevention.

In addition to the internal company documents Juul has disclosed in other settlements, Minnesota will also get documents specific to the state for a total of 10 million documents that researchers and journalists can pore through, Ellison said. “We’re going to have a lot of sunlight,” he said. And unlike the other settlements, he said, Altria will disclose its internal documents on its involvement with Juul.

THE SEAL of the Board of Governors of the United States Federal Reserve System is displayed, Feb. 5, 2018, in the ground at the Marriner S. Eccles Federal Reserve Board Building in Washington. To Wall Street’s relief, the end appears in sight for the Federal Reserve’s sharp hikes to interest rates. The hikes are supposed to lower inflation, but they also hurt the economy and drag down stock prices.

Photo:Andrew Harnik/AP