06062024 BUSINESS

THURSDAY, JUNE 6, 2024

Broker’s bids to knock out Bahamians’ testimonies

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A FORMER Nassau broker/ dealer is demanding that Supreme Court depositions given by his former Bahamian executives be barred from evidence at trial because they are “unfair” and unreliable”.

Guy Gentile, head of the nowdefunct Mintbroker International, in May 17, 2024, legal filings asserted that the testimony given by his exemployees creates “considerable fairness concerns” and US federal regulators should not be permitted to employ it against him.

In particular, he is arguing that his Bahamian attorney, Philip McKenzie KC of Davis & Co, was not given a proper opportunity by the Supreme Court to cross-examine and question former members of Mintbroker’s management team. All were deposed following the Securities & Exchange Commission’s (SEC) request for judicial assistance from The Bahamas to aid its case against Mr Gentile.

demands to block the former employees’ testimony from being entered into evidence.

The SEC, in its rebuttal, said whether Mr McKenzie chose to cross-exam-

ine the witnesses or not was up to him and “should not be given any weight”.

Lucayan sale ‘fantastic’ to counter $1,500 air tickets

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

HOTELIERS yesterday hailed the Prime Minister’s renewed optimism over the Grand Lucayan’s potential sale as “fantastic” given that this is key to lowering $1,500 one-way air fares to the US.

Bahamas-based witnesses and evidence are central to the Florida courtroom battle, with the federal securities regulator accusing the former Bay Street-based broker/ dealer and its principal of breaching US law by actively - and directlysoliciting American clients when not registered with the SEC.

Mr Gentile has placed great emphasis on trying to strike out, or have dismissed, much of this Bahamian evidence and the south Florida federal court has yet to rule on his

However Mr Gentile, who plans to testify in his defence during the trial, argued that the transcripts detailing his former employees’ testimonies should be “excluded” from trial evidence as there was no proof that the SEC had sought to secure their inperson attendance. And, even if it was proven that the Bahamian staff are unavailable, he added the transcripts “raise numerous issues as to their reliability and fairness”.

“The transcripts obtained to date from depositions in The Bahamas

$250m Six Senses developer pledges to ‘go the extra mile’

By NEIL HARTNELL Tribune Business Editor

THE developer of Grand Bahama’s $250m Six Senses resort yesterday pledged to “go the extra mile” after receiving a key permit that “opens up the starting line” for construction to begin before year-end.

Marc Weller, Weller Development’s founding partner and president, told Tribune Business that obtaining the required environmental approvals from the Government’s regulators paves the way for a project that will “help lift the brand of Grand Bahama” and drive increased visitor numbers to the island.

He added that the Department of Environmental Planning and Protection’s (DEPP) goahead for the eco-sensitive, high-end resort, which will create more than 200 permanent jobs when it opens in 2026, will enable Weller and its partners to “finalise our building plans” and obtain the necessary construction permits.

“While we expected a positive outcome around this permitting and administrative test, we are also greatly relieved that we met the rules and complied with The Bahamas’ requirements to take this project forward,” Mr Weller told this newspaper.

By NEIL HARTNELL

Business Editor

THE Prime Minister yesterday denied that the Government’s Budget forecasts are “fantasy” as he asserted that recent monthly fiscal deficits for June were elevated due to paying off outstanding bills.

Philip Davis KC, leading off the House of Assembly’s Budget debate, admitted that achieving the 2023-2024 full-year deficit target of around $210m will require “a heightened degree of expenditure constraint” over the next few weeks to month’s end to

either balance the books or generate a modest surplus.

Hitting back at the Opposition and other critics, who have argued that the full-year deficit forecast is highly unlikely to be met, he said: “I have taken a hands-on approach to this Budget and have ensured that it was a collaborative effort across the entirety of government. That is, across every ministry, agency and department in support of the Ministry of Finance’s meetings with ministers, permanent secretaries and heads of public corporations. This has led to better

Magnus Alnebeck, the Pelican Bay resort’s general manager, told Tribune Business that selling Grand Bahama’s one-time ‘anchor’ property “to a company that knows what it’s doing” and can rapidly re-open its full 1,200-strong room inventory remains the only solution to driving increased airlift supply.

He spoke out after Prime Minister Philip Davis KC, leading-off the 20242025 Budget debate in the House of Assembly, disclosed that the latest talks over the Grand Lucayan had reached “an extremely promising stage” although he provided no details.

“The latest round of negotiations for the sale of the Grand Lucayan hotel

are at an extremely promising stage. We hope that a positive announcement is imminent,” Mr Davis said.

“The House will recall that the hotel was bought by the previous administration against all advice and for an amount higher than the valuation. It remains a drain on the public finances.”

The Grand Lucayan was acquired from Cheung Kong (CK) Property Holdings, the real estate arm of Hutchison Whampoa, by the Minnis administration in September 2018 for $65m

PHILIP DAVIS KC

GUY GENTILE

LEVERAGING TECHNOLOGY KEY TO LONG-TERM SUSTAINABILITY

In recent years, the convergence of technology and sustainability has revolutionised business practices, creating a new paradigm where profitability and environmental responsibility co-exist. Understanding

how technology drives sustainable business practices is crucial as we navigate this transformative era.

Smart technologies, such as the Internet of Things (IoT), artificial intelligence (AI) and big data analytics, have significantly

contributed to sustainability. IoT sensors monitor energy consumption in real time, allowing businesses to identify inefficiencies and implement energysaving measures. AI algorithms analyse data to predict equipment failures,

reducing downtime and extending machinery lifespan.

Technology has made renewable energy sources such as solar and wind more affordable and accessible. Businesses are increasingly adopting these technologies to power their operations, reducing their carbon footprint. Smart grids and energy management systems ensure efficient utilisation of renewable energy.

Technological advances are promoting the circular economy, where products and materials are reused, refurbished and recycled. Innovations in recycling technologies and materials science enable businesses to design products with longer lifespans and easier recyclability. Companies are developing biodegradable packaging and closed-loop systems to reduce waste and environmental impact.

Technology is transforming supply chain management, making it more transparent and sustainable. Blockchain technology provides an immutable record of transactions, ensuring ethical and sustainable product sourcing. AI-powered logistics optimise delivery routes and inventory management, reducing fuel consumption and emissions.

Digital connectivity allows businesses to demonstrate their commitment to sustainability directly to consumers, fostering trust and loyalty. Technology enables engagement through carbon offset programmes and eco-friendly product lines, encouraging sustainable consumption patterns. Despite the opportunities, technology also presents challenges. Keeping up with rapid technological changes and the initial investment in new technologies can be difficult for businesses. Additionally, the environmental impact of producing and disposing of technological devices must be considered. Businesses need a holistic approach, considering the entire lifecycle of their technologies and striving for continuous improvement.

Technology’s influence on sustainable business practices is profound and multi-faceted. By leveraging smart technologies, renewable energy, circular economy principles and transparent supply chains, businesses can achieve significant progress towards sustainability. As consumers prioritise environmental responsibility, adopting these practices is essential for long-term success. The future of sustainable

ROYE II KEITH

Bahamas’ potential is exposed at World Oceans Week forum

ENVIRONMENTAL

specialists recently unveiled the potential investment opportunities created by the emergence of The Bahamas’ ocean-based Blue Economy to an international audience. World Oceans Week hosted two panel discussions at The Explorers Club in New York under the joint title: The Bahamas – ocean philanthropy and impact investment. Attendees were told that with 245,000 square miles of ocean, and unique coastal and marine ecosystems, The Bahamas is well-positioned to lead the transition to a sustainable, innovative and profitable blue economy.

The sessions showcased how Bahamian institutions, businesses and entrepreneurs are securing the responsible stewardship of the country’s ocean and coastal resources, creating opportunities for economic development

BAHAMAS panel members at World Ocean Week 2024 in New York: L to R: Craig Dalgren, PIMS; Rashema Ingraham, Bonefish & Tarpon Trust; Chris Maxey, the Island School; Lakeshia RolleAnderson, Bahamas National Trust; Megan Davis, Queen Conch project, FAU; Raveenia Roberts-Hanna, BAMSI; Tarran Simms, Moore Charitable Foundation; Rupert Hayward, Blue Action Lab and the Grand Bahama Port Authority; Austin Gallagher, Beneath The Waves.

and confronting pressing environmental and societal challenges.

The first session, focusing on philanthropy, highlighted several initiatives that focus on preserving basic ecosystems, developing business innovation and promoting a sustainable blue economy workforce.

Speakers included Rashema Ingraham, of Bonefish and Tarpon Trust; Dr Craig Dahlgren, of the Perry Institute for Marine Science (PIMS); Dr Megan Davis of Florida Atlantic University; Dr Raveenia Roberts-Hanna of the Bahamas Agriculture and Marine Science Institute (BAMSI); and Lakeshia AndersonRolle, executive director of the Bahamas National Trust. This session was moderated by Rupert Hayward, founder and president of Grand Bahama-based Blue Action Lab and director of the Grand Bahama Port Authority (GBPA).

The second forum focused on impact investment and celebrating blue business innovation.

Speakers included Sam Teicher from coral restoration project, Coral Vita; Gudfinnur Sveinsson, from ocean-based carbon removal initiative, Brineworks; and Neil Tinmouth from Acua Ocean, which designs zero carbon emission sea vessels.

This session was moderated by Dale Galvin of Global Fund For Coral Reefs.

Blue Action Lab founder and president, Rupert Hayward, who moderated the first session, said: “The Bahamas delegation is extremely grateful to Builders Bridge and the Explorers Club for showcasing the amazing potential for blue economy initiatives in The Bahamas.

“Blue Action aims to make our country a global hub for developing cutting-edge sustainable technologies and companies that focus on climate solutions, both to the benefit of investors and the Bahamian workforce.

“We are proud that of the organisations represented on these timely and important panels, Coral Vita, Brineworks and Acua Ocean are all Blue Action portfolio companies and partners. I would to thank them, and all the other panelists, for their informative, enlightening contributions.”

Headquartered in New York since 1904, the Explorers Club has a community of chapters around the world. The club, which has been supporting scientific expeditions for over a century, brings its members together once a year for its flagship international event, World Oceans Week.

The event was hosted by Builders Bridge, Lukas Walton’s philanthropic and impact investing platform, which has backed Grand Bahama-based Blue Action Lab and its projects in The Bahamas, as well as many other Bahamian non-profits and climate initiatives in The Bahamas.

business lies in integrating technology with environmental stewardship, paving the way for a greener, more prosperous world.

BI-WEEKLY PAY AND EXTRA MONEY PROMISED BY PM

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.com

PRIME Minister Philip “Brave” Davis announced yesterday that government workers will receive a salary increase and transition to payments every two weeks.

During his contribution to the 2024/2025 budget debates, Mr Davis said civil servants will receive a salary raise to ensure the public sector is “competitive” with private sector salaries.

He said that many civil servants such as nurses and teachers are drawn to seek employment in the private sector due to better wages and the government has planned to give them a

wage increase in an attempt to retain talent. He said: “In order to offer competitive salaries, the government has to benchmark public sector salaries against private sector salaries. Regular salary reviews should be conducted to guarantee that the government can provide adequate compensation to retain employees in the public sector.

“Regrettably, a significant number of individuals have left the public sector to go to the private sector, because of the better pay and benefits on offer. This trend is particularly notable among nurses, teachers, although it is also true of other professional groups.”

He noted that as we are a part of a “globally

competitive” job market many essential workers are drawn to seek employment abroad and salaries must be adjusted to account for the high inflation rate.

He said: “The simple truth is that, we operate in a globally-competitive job environment. We are therefore not just competing with the private sector for professional and skilled workers, we are competing against developed countries as well for nurses, teachers, police officers, corrections officers, etc.

“This salary review is critical. If we do not offer salaries at competitive rates, people will not want to work in the public service. If we do not offer salaries at competitive rates, people will not stay in

Inland Revenue tracking ‘unusual’ stamp tax activity

By FAY SIMMONS Tribune Business Reporter

WARNING has been issued about “unusual activity” in stamp tax on real estate, Prime Minister Philip “Brave” Davis said yesterday.

Mr Davis said the Department of Inland Revenue had detected the activity. During his contribution to the 2024/2025 budget debates, Mr Davis said the tax authority has noted an increase in realtors not submitting conveyances for high-valued real estate over the past two years while historically conveyances were presented in a timely manner.

He said: “The very nature of the tax be it stamp tax or VAT on real estate makes it susceptible to abuse. Over the last two years, as a tax

authority, the Department of Inland Revenue detected some unusual activity in this tax. Unusual in that significant real estate transactions, although announced by realtors, were not immediately followed by the presentation of conveyances for stamping.

“As I said before, the presentation of a conveyance for stamping is by no means automatic or mandatory and purchasers could delay the presentation of conveyances for a number of reasons. However, for high-end real estate, traditionally these conveyances have been presented without delay.”

He said the DIR has also seen an increase in “inter vivos” transfers to trusts and noted their use in the country is limited as we have no estate taxes.

He said: “The department also noticed an

increase in the use of ‘inter vivos’ transfers to trusts and other exotic structures.

“Inter vivos transfers or deeds of gifts have legitimate estate planning purposes, although their uses in The Bahamas are limited because we have no estate taxes. So limiting inter vivos transfers to natural persons does not impede the estate planning ability of any real estate owner.”

Mr Davis also announced that long term rentals will no longer be required to pay VAT and only vacation home rentals and commercials rentals will be reqired to pay the tax.

He said: “Long-term residential rentals in the past were not subject to VAT until 2022, when VAT was placed on these rentals if the owner leases more than four properties.

the public service. Salaries must keep pace with inflation, and be at a level which is competitive and fair.”

Mr Davis also said that with the launch of Cloud Bahamas, a project that will digitise and integrate documents, human resources and finance management systems for the public service, salaries will be paid bi-weekly.

He said: “Cloud Bahamas is going to revolutionise the administration of public sector payments, by introducing new features such as electronic salary notifications, online job applications, and bi-weekly salary payments for all employees.”

He explained the transition will help government workers to “improve their

“We have seen that this disproportionately impacts the tenant, so we are reverting to a position where VAT is not required in this case. Going forward, only vacation home rentals and commercial rentals will be subject to VAT.”

On real property tax, Mr Davis announced the surcharge will be increased annually for unpaid taxes on vacant land to send a “clear message” to individuals that avoid paying their taxes.

“The surcharge will be increased incrementally each year for unpaid tax on foreign vacant land. A surcharge of 5% is applied in the first year; 7.5% in the second year; and 12% per year in the third year and beyond,” said Mr Davis.

“This should send a clear message that this government expects those who owe taxes should pay their taxes, or be penalised in increasing increments.”

He said the Real Property Tax Act will be amended to clarify that if a property

cashflow” and “shield” them from acquiring high interest loans to supplement their incomes.

He said: “This will allow for more frequent paydays which will almost certainly support employees to improve their cashflow. This, in turn, will hopefully shield employees from high-interest consumer loans, in order to fund everyday expenses.

“More frequent paydays should significantly help those small businesses which rely on the uptick in economic and financial activity fuelled by government workers, which would otherwise only take place at the end of any given month – the time of pay for government salaried employees.”

has a non Bahamian beneficial owner they will still be expected to pay real property tax despite having a Bahamian “life tenant”.

He said: “In order to prevent a clear tax avoidance strategy currently being employed by foreigner owners of property, we are clarifying in the Real Property Tax Act that, despite a life tenant of a property being a Bahamian, the property will not be considered Bahamian-owned if the beneficiaries are not Bahamian.

“The real property tax should be paid by the foreign owner despite a Bahamian being designated as a life tenant. The Bahamian living there will not be required to pay the tax, but only the foreign owner.”

He explained his administration has been working to address the revenue arrears which includes the $357m billed to the Grand Bahama Port Authority and outstanding real property tax

Mr Davis explained the increase in the budget for the private sector is to facilitate the impending salary increases and not to hire private firms to review salaries

He said: “I wish to clarify that the government’s decision to allocate funding toward its salary review in the public sector is specifically to improve pay to employees, and not to hire a private company to review salaries.

“For some reason, a member of the opposition has spread baseless news that questioned how this money will be used. I will clearly say it again. This funding will be used to compensate our hard-working employees.”

He noted that real property tax billings increased by 14 percent, contributing to the increase in government arrears.

He said: “If we look at the total tax arrears to March 2024 in the budget annex, more than half of the increase in arrears is due to the arrears from Grand Bahama Port Authority amounting to $357m. The remaining amount is largely related to Real Property Tax.

“In the communication, I was explicit in stating that Real Property Tax billings went up by 14 percent which directly contributed to the surge of arrears. Real Property Tax is due by the end of March so the amount of Real Property Tax arrears would decline naturally after that period.”

@ 502-2394

BROKER’S BIDS TO KNOCK OUT BAHAMIANS’ TESTIMONIES

raise considerable fairness concerns. Those concerns weigh in favour of exclusion and adhering to the rule against hearsay,” Mr Gentile and his US attorneys allege.

“Several of the deposition transcripts indicate no or minimal ‘opportunity’ for cross-examination by Gentile’s Bahamian counsel or otherwise suggest that certain testimony is missing.

“The transcripts also suggest that no witness was shown a single piece of documentary evidence - a far cry from the traditional practice in the US federal courts.” The SEC, with assistance from the Attorney General’s Office and the Bahamian court system, sought witness testimony from five former Bahamian management executives at Mintbroker.

They included Edward Cooper, the broker/dealer’s former chief compliance officer; Antonio Collie, the now-defunct broker/ dealer’s ex-chief financial officer; Stephen Darville, its former IT chief; Janay Symonette-Pyfrom, thenchief marketing officer; and Drameko Moore, described as an affiliates professional.

To back his arguments that Mr McKenzie was given little chance to question the witnesses on his behalf, Mr Gentile asserted: “At the deposition of Janay Pyfrom, when Gentile’s Bahamian counsel asked whether he could have a short adjournment to confer with Gentile before cross-examination, the court observed: ‘We are on borrowed time at this moment. As you can see, the Prosecutor is sitting at the back of the courtroom’.

“Gentile’s Bahamian counsel asked Pyfrom only four questions. Similarly, Gentile’s Bahamian counsel asked Stephen Darville a total of four questions. And it appears that additional testimony from Mr Darville may not be included in the transcript..... US-based counsel for Gentile do not know what questions were put to the witness prior to the beginning of the transcript.

“The transcript of Drameko Moore’s deposition indicates that Gentile’s Bahamian counsel would have the opportunity for cross examination ‘after lunch’, but the transcript concludes with: ‘THE COURT: It is 11:42am. We will break and we will begin

again at 2pm, and no crossexamination of Moore appears in the transcript.

“The SEC’s designations of Mr Moore’s testimony should not be admitted into evidence at all, but they certainly should not be admitted without the cross-examination of Gentile’s Bahamian counsel assuming a record of such examination exists.” Mr Gentile also complained that one day of Mr Cooper’s deposition was missing, while the entire transcript for Mr Collie has “not yet been made available”.

“These imprecise, incomplete transcripts - which reveal no meaningful crossexamination by Gentile’s Bahamian counsel - should not be read into evidence at trial in this court,” Mr Gentile concluded. This, though, was swiftly rebutted by the SEC which defended the judicial assistance request and evidence gathered by the Bahamian courts.

“The testimony from the Bahamas witnesses was taken through the letters rogatory process by a court registrar of The Bahamas pursuant to an Order from the Supreme Court of the Bahamas. The testimony transcripts were also

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provided by the court registrar and not a private court reporter per the court’s official process,” the US federal regulator said.

“Guy Gentile attended some of this testimony and Gentile’s Bahamian counsel, Philip McKenzie, was present for all the testimony and was given opportunity to cross-examine all the witnesses. Whether Gentile’s counsel chose to avail himself of that opportunity was a strategic choice on his part and should not be given any weight as to whether the testimony should be deemed admissible.

“Gentile’s counsel was given the opportunity for cross-examination and to object to the testimonythat is all that is required. Nor is there any requirement that witnesses be shown exhibits or that their testimony be videotaped for a deposition to be admissible. Indeed, traditionally, depositions in the US are not videotaped and many depositions are taken without the use of exhibits,” the SEC added.

“Moreover, videotaping of court proceedings

such as the Letters Rogatory testimony is generally not permitted in either the US federal courts or The Bahamas. For Gentile to imply that either is a factor in whether testimony taken in a legal proceeding before a court is to be deemed admissible is simply unsupported by law or fact.”

Tribune Business previously reported how some of this testimony conflicted. Mr Moore, now employed by Deltec Bank & Trust’s digital assets affiliate, Delchain, gave evidence suggesting it exploited promotional agreements with “marketing affiliates” to gain access to US trading clients in such a way that it could argue there was no direct solicitation. He disclosed he had discussed the potential ramifications of using these deals to attract American clients with other senior Mintbroker executives, but was told this strategy was “a way to get access to more US clients without there being any direct solicitation”.

However, Ms Pyfrom-Symonette,

PM denies Budget forecasts ‘fantasy’

FROM PAGE B1

Mintbroker’s former chief marketing officer who is now also employed by Deltec, testified that she was ordered “at all times” not to advertise its services directly to US clients. Mr Cooper, meanwhile, testified that he was swiftly appointed Mintbroker’s chief compliance officer to replace the previous incumbent due to an impending Securities Commission of The Bahamas audit. His predecessor, Philip Dorsett, is one of the ‘whistleblowers’ against Mr Gentile who has provided the SEC with 11,000 e-mails. “Mr Dorsett left the company in July 2017,” Mr Cooper said. “The Securities Commission had to come in and do an audit within the company, and I could not give a response to the Securities Commission. “So they needed, they have a chief compliance officer to to them. So the company had to do a resolution appointing me...... They had to have me registered to them as chief to be able to respond to them. That’s what I’m saying.”

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accountability and a more comprehensive and accurate Budget. So we did not arbitrarily come up with figures. Extensive work has been done to ensure that our projections reflect reliable and accountable figures.”

Acknowledging that the Government still has “a lot of work to do to rebuild the fiscal buffers” so that The Bahamas has the financial headroom to cope with climate change and further devastating hurricanes, he added: “We have projected a deficit of 1 percent to 1.5 percent based on the expenditure and revenue performance up to April 2024.

“I will admit, however, that achieving this target has required a heightened degree of expenditure constraint and focus on revenue collection. However, as we have demonstrated

over the last three years, our fiscal plans are based on reality, not fantasy. “In addition, it should be noted that the fourth quarter deficit experienced in the last two years was the result of deliberate policy decisions to eliminate, as much as possible, the arrears for vendor payments left by the previous administration. I am happy to report that, as the arrears report in the mid-year Budget presentation has demonstrated, this policy has succeeded and we have substantially reduced vendor arrears.”

The Government, in its Fiscal Strategy Report, said it had reduced payment arrears owed to vendors to a sum equal to 2.1 percent of nominal gross domestic product (GDP) at year-end 2023 as opposed to 3.7 percent the year before.

However, there is evidence that major monthly deficits towards the end of the Government’s fiscal year - typically May and June - are a structural issue rather than a temporary problem caused by accelerated payment of outstanding bills as suggested by the Prime Minister.

Santander, the major global financial institution, last week became the latest to add its voice to those arguing that the Government still has much work to do to hit its $210m deficit target for the current 20232024 fiscal year.

While the Davis administration must maintain a balanced Budget, or slight surplus, during the three months to end-June to reach this goal, the bank noted that such an outcome will fly in the face of past experience.

Pointing out that June alone has generated an average $180m monthly deficit for the past decade, Santander warned that “there will be less tolerance on [any] fiscal slippage” during the current fiscal year due to the revised 2024-2025 surplus target.

For the past two fiscal years, 2021-2022 and 20222023, the Government has sustained deficits totalling $353.5m and $293.7m, respectively, for the fourth quarter as a result of government ministries, departments and agencies racing to bring forth bills that the Ministry of Finance knew nothing about so that they can be paid and

Meanwhile, reaffirming his administration’s plan to crack down on suspected VAT avoidance on highend real estate deals worth more than $1m, Mr Davis said: “Another peculiar feature of this tax is that most of the revenue is collected on purchases by Bahamian companies owned by non-Bahamians.

This has always been a feature of the tax, either with the current structure of VAT or the previous structure of Stamp tax. This has only increased with the repeal of the Immovable Properties Act. The very nature of the tax, be it Stamp Tax or VAT on real estate, makes it susceptible to abuse.

“Over the last two years, as a tax authority, the Department of Inland Revenue detected some unusual activity in this tax. Unusual in that significant real estate transactions, although announced by realtors, were not immediately followed by the presentation of conveyances for stamping.”

Mr Davis said the tax authorities have also detected an increase in the use of “inter vivos” transfers of real estate, meaning properties have been gifted to other family members, to trusts “and other exotic structures”.

“Inter vivos transfers or deeds of gifts have legitimate estate planning purposes, although their uses in The Bahamas are limited because we have no estate taxes,” he added. “So limiting inter vivos transfers to natural persons does not impede the estate planning ability of any real estate owner.”

Turning to other revenue measures, Mr Davis said long-term residential rentals will again be exempt from VAT because its implementation was hurting tenants. “In order to prevent a clear tax avoidance strategy currently being employed by foreigner owners of property, we are clarifying in the Real Property Tax Act that, despite a life tenant of a property being a Bahamian, the property will not be considered Bahamian-owned if the beneficiaries are not Bahamian,” he added.

“The real property tax should be paid by the foreign owner despite a Bahamian being designated as a life tenant. The Bahamian living there will not be required to pay the tax, but only the foreign owner.”

PHILIP DAVIS KC

CARNIVAL NAMES FINANCIAL CONTROLLER FOR BAHAMAS

Carnival Corporation has named Learline BurrowsMoss as financial controller for all its Bahamas-based operations.

A native Grand Bahamian, Ms Burrows-Moss will oversee accounting and finance functions for the cruise line’s three destinations in The Bahamas.

These include Half Moon Cay, Princess Cays and Celebration Key, the latter of which is set to open in 2025 and create hundreds of direct and indirect Bahamian jobs.

With more than 15 years’ experience in auditing,

accounting and leadership roles, Ms Burrows-Moss is a former financial controller for Grand Bahama Power Company, where she managed all accounting operations and played a key role in strategic decision-making. Previously, she held other financial and accounting positions with companies such as Cable Bahamas.

“Learline’s diverse background and proven track record of success, not to mention her deep familiarity with the Bahamas business community, make

her an invaluable addition to the Carnival Corporation team in The Bahamas,” said Gisella Mazzilli, Carnival’s vice-president of finance and accounting, and the company’s global ports and destinations group chief financial officer.

“She has the same keen eye for detail and a commitment to excellence that we have noted in many of the Grand Bahamian executives coming aboard our growing team in The Bahamas.”

Ms Burrows-Moss said: “Carnival Corporation

is demonstrating a commitment to working in partnership with the local community to create economic growth and sustainable development across its three exclusive destinations in The Bahamas.

“Speaking as a proud Grand Bahamian, I’ve seen first-hand the company’s commitment to our nation and the positive impact it is creating across all sectors of Bahamian society, and I know the new Celebration Key development will be equally transformative

for Grand Bahama and its economy. I am so happy to be part of the team that will deliver this exciting project.”

Carnival has pledged that at least 75 percent of the retail and restaurant outlets at its new Celebration Key destination will be owned and operated by Bahamians. The Grand Bahama-based destination will create 700 permanent jobs, with approximately 300 directly hired by Carnival.

Lucayan sale ‘fantastic’ to counter $1,500 air tickets

FROM PAGE B1

to head-off the resort’s threatened closure by its former owner.

Efforts to find a private buyer for the resort, including the Royal Caribbean/ITM Group deal submitted to the former administration and the bid by Electra America Hospitality Group, have thus far failed to secure a purchaser. And, in the meantime, the Bahamian taxpayer has been forced to subsidise the Grand Lucayan’s annual losses to sustain its operations.

The 2024-2025 Budget provides a $17m subsidy for the resort and its immediate holding company, Lucayan Renewal Holdings, which matches the current fiscal year’s allocation. However, the $17m provided for the 2023-2024 Budget year was virtually exhausted at end-March 2024, with some $16.632m having been spent, meaning that Bahamian taxpayers will almost certainly incur cost overruns.

And, given that the Government provided Lucayan Renewal Holdings with $17.882m in the 2022-2023 fiscal year, the resort is set to cost taxpayers close to $54m by the time the upcoming fiscal year closes at end-June 2025. Given this subsidy run rate, taxpayer exposure to the Grand Lucayan now likely exceeds $200m with much of this sum unlikely to be recovered via a sale.

However, Tribune Business sources, speaking on condition of anonymity because they were not authorised to talk publicly, yesterday confirmed that the Prime Minister’s optimism may not be without foundation. They disclosed that the Government is on the verge of signing a sales agreement for the Grand Lucayan with a new prospective buyer whose identity they declined to disclose.

A sales agreement does not mean the purchase has been concluded. This will likely take several months, and probably at least 90 days, to achieve provided no deal-breakers arise. However, it would be an indication of the buyer’s seriousness and they will likely have to place a refundable deposit, normally 10 percent of the purchase price, into an escrow account.

The buyer will then be able to conduct enhanced due diligence on the Grand Lucayan, and negotiate binding terms and conditions with the Government, prior to any sale closing and the payment of a full purchase price.

“I think it would be fantastic,” Mr Alnebeck said of the Prime Minister’s renewed hope for the Grand Lucayan’s sale. “It’s the only chance we really have to get a substantial amount of rooms in use quickly so that we can start attracting some new airlift.”

While Weller Development’s $250m Six Senses resort project will provide

a further boost to Grand Bahama’s tourism product, the Pelican Bay chief said this project’s construction completion is still some two years away in 2026 and its size does not compare to the Grand Lucayan. “It doesn’t have that volume,” Mr Alnebeck added. “The Grand Lucayan is really the only possibility of adding a substantial amount of room inventory in the foreseeable future. It’s absolutely fundamental for that. Our airlift at the minute, we are back down to one American Airlines flight per day from Miami, and the fares on that are horrendous when you have a crew change at the Shipyard or anything like that.

“I was looking for a ticket for myself in June and, four weeks out, you’re talking about $1,500 one-way to Miami for three days, which is devastating to the destination not having the constant demand that an operating Grand Lucayan would give us.

“Our demand for flights at the moment is dependent very much on what is going on at the Shipyard and, if there is a crew change, there are just no seats available for anyone else. Grand Bahama has become, when it comes to airlift and travel, an Out Island. A number of us who live here travel through Nassau these days, but that’s not a viable thing for tourism.”

Mr Alnebeck, reiterating that “we need an operating hotel with a substantial number of rooms to get more airlift, said the “only traffic we had is Sunwing this winter” as well as WestJet operating from its feeder markets. The frequency of American Airlines flights from Miami have been cut from twice per day to once per day.

“The Grand Lucayan has always been a first step to trying to get Grand Bahama back on track,” the Pelican Bay chief added. “We need to get it sold to a company that know what it’s doing and get it open so that it attracts some more airlift.”

The Prime Minister, meanwhile, reiterated that “the Government is purchasing the Princess Towers hotel, the West Sunrise Road and the site of the International Bazaar for under $4m”. The Princess Towers is part of the former Royal Oasis resort, which closed in 2004, but checks by Tribune Business suggested that no deal has been reached yet to acquire either that property or the Bazaar.

“A higher loan facility has been arranged with the African Export-Import Bank for an exciting new development of that site. Again, details will be announced very shortly,” Mr Davis added. The International Bazaar has been viewed as a potential location for the Government’s proposed African-Caribbean products marketplace.

Ginger Moxey, minister for Grand Bahama, told the House of Assembly in June

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that the African-Caribbean Marketplace was among the projects she discussed when heading the trade and investment mission to Nigeria and Ghana. The visit also resulted in the signing of a Memorandum of Understanding (MoU) between the Government and Africa Export-Import Bank, which could potentially provide the project financing.

No specific location was identified for the Marketplace, but the International Bazaar site would provide a central spot in Freeport and offer a history compatible with the Government’s objectives. “The purpose of the MoU is to provide a

broad framework for collaboration to harmonise efforts in Africa and The Bahamas, but specifically in Grand Bahama,” Mrs Moxey said. She added that the MoU partnership will begin with the African-Caribbean Marketplace, or ‘International Marketplace’, to be located on Grand Bahama. “Not only will the marketplace promote and distribute African and Caribbean products, but it will also offer a taste of Africa and the Caribbean, making it an appealing tourist attraction,” Mrs Moxey added.

“In the marketplace, we envision

seamless connectivity for trade between Africa and the Caribbean through the African Continental Free Trade Area (AfCFTA), with the Caribbean as the sixth region, and the added advantage of a 230-squaremile free-trade zone offering tax concessions on Grand Bahama.”

Using Grand Bahama’s proximity to the US, the marketplace is expected to provide strategic opportunities for value-added manufacturing, transshipment, distribution and logistics. “This vision, however, goes beyond mere trade,” Mrs Moxey said.

“It represents the culmination of a world-class experience, showcasing the rich cultures of Africa and the Caribbean. The African-Caribbean Marketplace will become the home of ‘All things African and Caribbean’. It will feature a ‘Bahamas Bazaar’ representing each inhabited island of The Bahamas.

“With its conceptual design, including an amphitheatre, featuring a performance arts theatre, African and Caribbeanflavoured concessions and unique architecture reflecting the authenticity of our cultures, we aim to create a space that resonates with the spirit of Africa and the Caribbean.”

CARNIVAL has named Learline Burrows-Moss as its new Bahamas financial controller.

$250m Six Senses developer pledges to ‘go the extra mile’

“We think this project is uniquely qualified to into the new world that exists with thinking of the environment in a whole new light. We’re thrilled at the end of the day; thrilled that we are through it, and everybody is happy. It [the environment] sits at the very core of this project along with the community of Grand Bahama and the residents of Grand Bahama.

“It sits at the forefront. It’s what it’s about. It’s the reference point, and we’re glad we’re past it so we can move forward to finalise our building plans. We can start wrapping up a lot of the plans, which keeps us on schedule to start construction at the end of the year,” he continued.

“We’re in the final planning stages. There’s a lot of plans that get held up held up during this phase. You don’t want to finalise them until everything’s agreed and approved. It’s really such an important milestone. It truly opens up the starting line for our project.”

The Six Senses project, which will feature 64 resort

keys, up to 28 branded residences, a Six Senses Spa, multiple restaurants, an event space and a beach club, is forecast to create “a significant number” of construction jobs likely to number several hundred over the two-year build-out.

“This is a luxury product,” Mr Weller added of the Six Senses brand. “It’s a tremendous commitment to health and wellness and environmental sensitivity infused into the culture of the project. We’re going the extra mile in The Bahamas and that will be a differentiator for this.

“I think it will definitely lift help lift the brand of Grand Bahama, and help the existing product and help drive people and tourism back to the island. We’ve seen a huge uptick in Grand Bahama over the past six to 12 months and I think this will just continue to help that and raise the island’s profile in the US, Canada and Europe.

“Any quality development at any level, particularly at a scale like this, will be a net positive for the island of Grand Bahama in a big way.” Mr Weller acknowledged that it was vital to Weller’s Six Senses plan that Grand Bahama International Airport’s transformation be completed and operational by the time its project opens in 2026.

“I think that is absolutely a very important component of having a successful and thriving tourism industry in Grand Bahama,” he added of the airport. “Our understanding is that it’s moving along and has made a lot of progress, so we hope that it will be completed and operational prior to us opening in 2026.”

Madhvi Shukla, development manager of Weller Development Partners, told Tribune Business that she expects Weller’s project, which is the second Six Senses-branded resort in the Americas, to “blow out of the water” the inaugural one which is based in Grenada.

She added proper scheduling of Bahamian contractors will be key once construction begins towards year-end given the competing demands for their services from projects such as Carnival’s $600m Celebration Key cruise port.

“Something we did recently is that we met with the local contractors in Grand Bahama to understand the team and how we can start to put it together,” Ms Shukla said. “It’s all starting to come together literally as we speak now.

“What we are realising is there is a huge demand,

is seems, with other projects on Grand Bahama and these contractors are extremely busy. We have to carve out some availability for them at the end of the year.

“It seemed, based on those meetings, that there was availability and a lot of grades have the right experience to put it together and create groups that can work together. We’re still working on the designs. Design is going to wrap up fairly soon and we’re hoping to get into the next phase.”

Besides Weller Development Partners and Pegasus Capital Advisors, the Six Senses project’s investment partners also include the Global Fund for Coral Reefs, one of the largest private equity vehicles todate dedicated to climate resilience, coastal ecosystems, communities and coral reefs globally.

“To protect our coastal regions like Grand Bahama we need thoughtful solutions that build more sustainable communities, support conservation and restoration efforts, and spur economic development,” said Craig Cogut, founder, chairman and chief executive of Pegasus Capital.

“We are thrilled to partner with Weller Development and many others on bringing the Six Senses Grand Bahama to life in a way that puts sustainability and the local community at the forefront.” The development team will also prioritise local sourcing, ensuring the use of sustainable seafood and supporting local suppliers.

Weller said the resort’s hurricane-resistant coastline and sustainable energy, water and waste practices are designed to act as a future sustainable tourism model on Grand Bahama and across the Caribbean. It added that the project aims to strengthen climate adaptive capacity with a low environmental footprint, and support restoration and conservation efforts.

Project construction will use renewable materials for the resort and branded residences that are ethically sourced to meet sustainability goals. All built structures will be raised and designed to be resilient against storm surges and hurricane-force winds. The dune landscape will be restored along the beachfront, and invasive species will be removed and replaced with lush, native landscapes in open spaces and integrated throughout the site. Additionally, single-use and disposable plastic is banned across the resort.

MARC WELLER, Founding Partner and President, and Madhvi Shukla, Development Manager of Weller Development Partners, greet guests at the Six Senses Grand Bahama DEPP stakeholder meeting. Madhvi Shukla is seen speaking with Joseph Darville, Save The Bays Chairman and wellknown Human Rights Activist. Photo:Alfred Anderson/Barefoot Marketing FROM PAGE B1

YouTube toughens policy on gun videos and youth; critics say proof will be in enforcement

By DAVID KLEPPER Associated Press

YOUTUBE is changing its policies about firearm videos in an effort to keep potentially dangerous content from reaching underage users.

The video sharing platform owned by Google said Wednesday it will prohibit any videos demonstrating how to remove firearm safety devices. In addition, videos showing homemade guns, automatic weapons and certain firearm accessories like silencers will be restricted to users 18 and older.

The changes take effect June 18 and come after gun safety advocates have repeatedly called on the platform to do more to ensure gun videos aren't making their way to the site's youngest users, potentially traumatizing children or sending them down dark paths of extremism and violence.

Katie Paul, director of the Tech Transparency Project, said the change was welcome news and a step in the right direction. But she questioned why the platform took so long to issue a new policy, and said her group will look to see how effectively YouTube enforces its new rule.

sure we are drawing the line at the right place," said company spokesman Javier Hernandez.

Last year, researchers at Paul's group created YouTube accounts that mimicked the behavior of 9-year-old American boys with a stated interest in video games. The researchers found that YouTube's recommendations system forwarded these accounts graphic videos of school shootings, tactical gun training videos and how-to instructions on making firearms fully automatic.

One video featured an elementary school-age girl wielding a handgun; another showed a shooter using a .50 caliber gun to fire on a dummy head filled with lifelike blood and brains. Many of the videos violated YouTube's own policies against violent or gory content.

Manhattan District Attorney Alvin Bragg last month called on YouTube to stop the proliferation of firearm-related videos to young users, and told the company it was failing to enforce its own policies. On Wednesday, Bragg said he applauded the company's new policy.

"We have heard firsthand from young individuals that YouTube's algorithm is driving them to the world of illegal and 3D-printed firearms, which is having a direct impact on the safety of Manhattanites," Bragg said in a statement emailed to reporters.

YouTube said the policy changes were designed to reflect new developments, like 3D printed guns, which have become more available in recent

"Firearms are the number one cause of death for children and teens in America," said Paul, whose group has long sought stronger age controls on online gun videos. "As always with YouTube, the real proof of change is whether the company enforces the policies it has on the books. Until YouTube takes real action to prevent videos about guns and gun violence from reaching minors, its policies remain empty words."

2024, that it is changing its policies about firearm videos in an effort to keep potentially dangerous content from reaching underage users.

ATLANTA MAYOR PLEDGES TO AID BUSINESSES HARMED BY WATER OUTAGES AS HE LOOKS TO UPGRADE SYSTEM

By JEFF AMY Associated Press

ATLANTA'S mayor on Wednesday pledged support of a plan to spend $5 million to reimbursing businesses for losses during water outages in the city since Friday, as he promised an assessment of the city's infrastructure and to deploy monitors to detect leaking pipes. Mayor Andre Dickens made the announcements a day after workers finished repairs on a ruptured water main. Officials said they had restored water flow and normal pressure to customers after troubles began Friday. Downtown Atlanta and nearby neighborhoods will remain under an order to boil water before drinking until sampling shows the water is safe, a period likely to last until Thursday.

"We know this disruption wasn't easy for you and we appreciate your patience and your understanding throughout this journey that we've been on," Dickens said. "We are happy to be on the other side of it."

Atlanta's water outages are the latest failures as cities across the country shore up faltering infrastructure. A 2022 crisis in Jackson, Mississippi, which has a long-troubled water system, left many residents without safe running water for weeks. Other cities including Flint, Michigan, have also struggled to supply residents with safe drinking water.

The first-term Democratic mayor has been under fire

years. YouTube requires users under 17 to get their parent's permission before using their site; accounts for users younger than 13

are linked to the parental account.

"We regularly review our guidelines and consult with outside experts to make

for Atlanta's response to the leaks, especially because Dickens left town after the first major leak began to travel to Memphis, Tennessee, where he held a fundraiser for his 2025 reelection campaign and met with that city's leaders to discuss crime and other issues. Dickens' administration said it wasn't clear that the first leak west of downtown would create a major disruption when he proceeded with the trip. A second major leak in the city's Midtown neighborhood began later Friday. The first leak was fixed on Saturday, but the second leak kept gushing into city streets until Monday. The city will begin installing devices at valves that can electronically detect and report leaks, Department of Watershed Management Commissioner Al Wiggins Jr. said. He said the pilot program was already planned before the leaks. Wiggins also said city will step up inspections and seek to repair some other valves that aren't working correctly. Dickens said that would be part of a broader effort to examine the city's water system, including assistance from the U.S. Army Corps of Engineers and a panel he announced to be headed by former Mayor Shirley Franklin and Metro Atlanta Chamber CEO Katie Kirkpatrick. He said he would also consider reordering the city's capital improvement plans to prioritize water system upgrades.

Several perpetrators of recent mass shootings have usedsocial media and video streaming platforms to glorify violence, foreshadow or even livestream their attacks.

Along with TikTok, YouTube is one of the most popular sites for children and teens. Both sites have been questioned in the past for hosting, and in some cases promoting, videos that encourage gun violence, eating disorders and self-harm.

THE YOUTUBE app is seen on an iPad, March 20, 2018, in Baltimore. YouTube announced Wednesday, June 5,

Photo:Patrick Semansky/AP

PLASTIC newspaper racks for The Epoch Times, The Village Voice and other newspapers stand along a Manhattan sidewalk, Wednesday, Nov. 27, 2013 in New York. The arrest of an executive at The Epoch Times in a money-laundering scheme this week has drawn attention to a media outlet that has largely lived in the shadows between its founding in 2000 and a transformation during the Trump administration.

Photo:Mark Lennihan/AP

WHAT WILL BECOME OF THE EPOCH TIMES WITH ITS CHIEF FINANCIAL OFFICER ACCUSED OF MONEY LAUNDERING?

By DAVID BAUDER AP Media Writer

THE arrest of an executive at The Epoch Times in a money-laundering scheme this week has drawn attention to a media outlet that has lived largely in the shadows since its founding in 2000 and a transformation during the Trump administration.

Federal prosecutors in New York charged Weidong "Bill" Guan of Secaucus, N.J., chief financial officer of The Epoch Times, of steering at least $67 million in criminal proceeds, much from fraudulently obtained unemployment insurance benefits, to the company, its affiliates and himself. Guan pleaded not guilty but was suspended by The Epoch Times, which agreed to cooperate with prosecutors.

The case calls into question the future of a company that was a key online supporter of Trump and spreader of conspiracy theories.

WHAT IS THE EPOCH TIMES?

Started first as a newspaper, the company produces news websites and videos, and is now available in 23 languages. Its founder, John Tang, is a Chinese-American who practices Falun Gong, a form of meditation and exercise. The Chinese government has denounced, banned and, according to members, has consistently oppressed and mistreated Falun Gong followers.

While the outlet has sought to distance its operations from the Falun Gong movement itself, the company has said it "sees the Chinese Communist Party's persecution of Falun Gong practitioners, and the remarkably heroic ways in which practitioners have responded to the persecution, as one of the most underreported stories of the last 20 years."

It is by no means a oneissue news organization, and the lead story on its website Wednesday was about U.S. political primaries the night before. But The Epoch Times does frequent and tough reporting on the Chinese government; stories on its website Wednesday included an opinion piece on the origins of the COVID virus and a look back at the Tiananmen Square massacre on its 35th anniversary. The site also prominently touts a book by Falun Gong founder Li Hongzhi.

The Epoch Times says that "our aim is not to force our perspective on you, but to give you the information you need to make up your own mind."

HOW DID THE EPOCH TIMES CHANGE?

The Epoch Times website currently has testimonials from Trump administration figures Peter Navarro and Sebastian Gorka and U.S. Rep. Paul Gosar, a Republican from Arizona. That's a clue. The news organization transformed itself during the Trump years by becoming a site that supported the former president and his causes. It was opportunistic in two ways: leaders saw in Trump a president they believed would fight against the Chinese government, and sensed the chance to win funding from others who believe in the cause, said A.J. Bauer, a University of Alabama professor who studies conservative media. In a few years' time, the outlet became a partisan powerhouse and "has also created a global-scale misinformation machine that has repeatedly pushed fringe narratives into the mainstream," The New York Times reported in 2020.

It embraced various conspiracy theories, many surrounding COVID. The Epoch Times and affiliates advanced the false story that the Obama administration spied on Trump's 2016 campaign and spread theories promoted by the QAnon conspiracy site and claims about voter fraud.

The Epoch Times was particularly aggressive on Facebook through advertising and the creation of different pages that guided social media users to their content. Following an investigation by NBC News, the social media giant in 2019 banned pro-Trump advertisements produced by the outlet for violating its ad policies.

The indictment doesn't specifically say that these pro-Trump efforts were funded through the alleged criminal scheme. But it was around this time that money was pouring in. The Epoch Times reported nearly $128 million in revenue for 2021, a stunning increase from $4 million in 2016, according to a federal financial disclosure. The turnaround caught the eye of banks, regulators and, eventually, federal prosecutors.

Much of the money came in through the company's "Make Money Online" team, run by Guan, according to the federal indictment. Guan has claimed the windfall was due in part to an increase in subscriptions and donations, the indictment said.

WHAT DOES THIS MEAN FOR THE EPOCH TIMES' FUTURE?

Guan is the only one charged by prosecutors. But the indictment states that "others known and unknown" were aware of what was going on, raising questions about whether anyone else at the company might be drawn in and what this might mean for The Epoch Times' future. The company didn't immediately respond to a query on the topic.

Given the action taken against the company by Facebook in 2019, it's questionable whether the playbook used before has relevance for the 2024 campaign. Some avenues for reaching people have undoubtedly closed because the social media site has been deemphasizing news and political content, Bauer said.

Conservative figures certainly noticed the work put in by The Epoch Times on behalf of their causes. Despite that, the outlet has had surprisingly little influence, said Howard Polskin, who monitors conservative media for The Righting website.

"They don't seem to be driving the news agenda in right wing media," Polskin said. "I don't think rightwing media is paying much attention to what they are doing." Bauer agreed. The Epoch Times' influence seems largely confined to people for whom opposing the Chinese government is a main cause, he said.

"They're having a hard time, just like everybody else in the media, in finding an audience at this moment," Bauer said. "I don't think there's too many people calling up The Epoch Times on their computer with their morning coffee to see what they have to say."

UN chief wants a tax on profits of fossil fuel companies, calling them ‘godfathers of climate chaos’

By JAMEY KEATEN Associated Press

U.N. Secretary-General

António Guterres called Wednesday for a "windfall" tax on profits of fossil fuel companies to help pay for the fight against global warming, calling them the "godfathers of climate chaos."

Guterres spoke in a bid to revive the world's focus on climate change at a time when elections, inflation and conflict in places like Ukraine, Gaza and Sudan have seized the spotlight.

In a speech timed for World Environment Day, the U.N. chief drew on new data and projections to make a case against Big Oil. The European Union's Copernicus service, a global reference for tracking world temperatures, said that last month was the hottest May ever, marking the 12th straight monthly record high. The service cited an average surface air temperature of 15.9 degrees Celsius (60.6 degrees Fahrenheit) last month — 1.52 degrees Celsius higher than the estimated May average before industrial times.

The burning of fossil fuels — oil, gas and coal — is the main contributor to global warming caused by human activity.

The World Meteorological Organization said the global mean near-surface temperature for each year from 2024 to 2028 is expected to range between 1.1 and 1.9 degrees Celsius hotter than at the start of the industrial era. The landmark Paris climate accord of 2015 set a target of keeping the rise below 1.5 degrees Celsius (2.7 degrees Fahrenheit).

"Beyond the predictions and statistics is the stark reality that we risk trillions

of dollars in economic losses, millions of lives upended and destruction of fragile and precious ecosystems and the biodiversity that exists there," Ko Barrett, the WMO's deputy secretary-general, told a news conference in Geneva.

"What is clear is that the Paris agreement target of 1.5 degrees Celsius is hanging on a thread. It's not yet dead, but it's hanging by a thread," she added.

"This forecast is affirmation that the world has entered a climate where years that are as hot as 2023 should no longer be a surprise," Noah Diffenbaugh, a professor at Stanford's

UNITED Nations Secretary General Antonio Guterres speak during a Security Council meeting at the United Nations headquarters, April 18, 2024. U.N. Secretary General António Guterres called Wednesday, June 5, 2024, for a “windfall” tax on profits of fossil fuel companies to help pay for the fight against global warming, decrying them as the “godfathers of climate chaos.”

Doerr School of Sustainability, said in an email.

A study released Tuesday by 57 scientists said that as the world keeps burning fossil fuels, Earth is likely to reach the 1.5 degrees Celsius limit in four-and-a-half years.

U.N. experts and academics have repeatedly highlighted how rising temperatures can upend climate patterns and cause drought, flooding and forest fires. That can lead to climate migration, higher costs for farm products or insurance and greater public health risks linked to high heat or water scarcity.

"While some individuals may escape direct consequences, we will all be affected," said Waleed Abdalati, who heads an environmental sciences institute at the University of Colorado Boulder.

Guterres appealed to media and technology companies to stop taking

Photo:Yuki Iwamura/AP

advertising from the fossil fuel industry's biggest players, as has been done in some places with Big Tobacco.

He also repeated concerns about subsidies paid in many countries for fossil fuels, which help keep prices low for consumers.

"Climate change is the mother of all stealth taxes paid by everyday people and vulnerable countries and communities," he said.

"Meanwhile, the godfathers of climate chaos — the fossil fuel industry — rake in record profits and feast off trillions in taxpayerfunded subsidies."

Guterres said global emissions of carbon dioxide must fall 9% each year to 2030 for the 1.5-degree Celsius target under the Paris climate accords to be kept alive.

"We need an exit ramp off the highway to climate hell," Guterres said, while

adding: "The truth is, we have control of the wheel."

He called on the Group of 20 countries — which are holding a summit in Brazil next month and are responsible for about 80% of all carbon dioxide emissions — to lead. The richest 1% of people on Earth emit as much as two-thirds of all humanity, he said.

"We cannot accept a future where the rich are protected in air-conditioned bubbles, while the rest of humanity is lashed by lethal weather in unlivable lands," Guterres said.

He appealed to "global finance," alluding to banks and international financial institutions, to help contribute, saying "innovative sources of funds" are needed.

"It's time to put an effective price on carbon and tax the windfall profits of fossil fuel companies," Guterres said.

But all countries must join the fight, he said, including the developing world, such as by ending deforestation and meeting targets to double energy efficiency and triple the use of renewable energy by 2030.