WEDNESDAY, JUNE 15, 2016
business@tribunemedia.net
Local creditors run into a ‘Hard Rock’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Bahamian staff and landlord of the former Hard Rock Cafe (Nassau) franchise have yet to receive a single cent two years after it was placed into liquidation, amid allegations that its owners are engaged “on a fool’s errand of litigation”. Ex-MP Marvin Pinder, the father of current Elizabeth MP, Ryan Pinder, and the employees of former franchisee, HRCC (Bahamas), are claiming that the latter’s principals still owe them “hundreds of thousands of dollars”. And they are questioning what has happened to HRCC
Bahamian staff yet to get a single cent of $174k claim Ex-MP waiting on ‘many thousands’ two years later Questions on wind-up by Bahamas China ambassador (Bahamas) liquidation, which in 2014 was placed into the care of Paul ‘Andy Gomez, the then-
Economic confidence levels at ‘35-year low’ Bahamians ‘on our ass’ if reform left too late
Says IMF’s Bahamas assessment ‘spot on’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net AN ex-Chamber chairman believes consumer and business confidence are at their “lowest levels” since he returned to the Bahamas 35 years ago, and expressed concern this nation may leave it too late to change course. Robert Myers, now a principal with the Organisation for Responsible Governance (ORG), a newly-formed civil society organisation, said the International Monetary Fund’s (IMF) concerns about the Bahamas’ near-term economic future were “spot on”. He warned that unless Bahamians shook off their “apathy”, and came together to push through reforms that will alter the country’s present trajectory, it will soon have “fallen on our ass”. The IMF painted an extremely bleak See PG B4
AN ex-Cabinet minister yesterday urged the Bahamas to move rapidly in rescuing its financial services industry, which he warned was “under tremendous strain”. Ryan Pinder, former minister of financial services, told Parliament that if the Bahamas failed to develop a viable model for the sector’s growth, it would result in a “failed country” and middle class. The Graham, Thompson & Co attorney and partner used his 2016-2017 Budget debate contribution to point out that the Bahamas’ former “value proposition” of secrecy and tax avoidance had been eroded by international regulatory changes. With tax transparency, and the upcoming automatic exchange of information, set to further transform the way that the Bahamas and other international financial centres (IFCs) do business, Mr Pinder reiterated
Company waiting eight weeks for Business Licence A FORMER Cabinet minister has warned that entrepreneurs and small businesses are being “crippled” by bureaucratic inefficiencies, with one firm “now waiting eight weeks” to get a Business Licence. Ryan Pinder, the ex-financial services minister, became the latest to warn how problems with the ‘ease of doing business’ in the Bahamas were continuing to hold companies - and the wider economy - back. “One area that is crippling new and small businesses is the challenges with the ease of doing business,” he said in his contribution to the 2016-2017 Budget debate. “Much of this is as a result of bureaucratic inefficiencies. “For example, a new business might have to get inspections from numerous agencies on the agency schedule. This should be better coordinated and integrated. I know a new business who has been waiting eight weeks now to get their Business License because of unco-ordinated inspections and bureaucratic bottlenecks. “This has a direct effect on our ease of doing business, on the growth of our economy, on the success of small businesses, and the confidence of our people. See PG B5
They are justifying this demand on the grounds that there is ‘no cause of action’ to support the Doyles’ claim, and that the franchise termination was justified by their failure to make due royalty payments. Marvin Pinder and his company, Thirty 3 Ltd, ultimately took over the Hard Rock Cafe (Nassau) franchise in April 2014, after it had been pulled from the Doyles. The former MP, in a May 20, 2016, affidavit to support the franchisor’s summary judgment bid, alleged that the Doyles and HCC (Bahamas) still owe him significant sums in unpaid rent for the Charlotte Street premises, and that not a single cent See PG B5
Ex-Cabinet minister urges: ‘Rescue financial services’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
ORG chief urges citizens: ‘Shake off your apathy’
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Grant Thornton (Bahamas) accountant and partner, who is now the Bahamas’ ambassador to China. The concerns are disclosed in multiple legal filings in the US federal court for middle Florida, where the legal battle between Keith and Kevin Doyle, HRCC (Bahamas) principals, and Hard Rock Cafe International and several of its current and former executives, is again heating up. Hard Rock Cafe International, as franchisor, and the three executives are urging the US federal court to render a summary judgment dismissing the Doyles’ claim that they were deliberately squeezed out of their $4 million Nassau investment.
Gov’t inefficiency ‘crippling’ small businesses Ex-minister: Financial services ‘at tipping point’ ‘Business ease’ impacting sector’s reorientation
$4.00 $4.20 $4.21
$4.34
Pinder: Failure to do so will create ‘failed country’ Admits sector ‘under tremendous strain’ Calls for new residency-based ‘value proposition’
RYAN PINDER
his previous call for this nation to build a new competitive advantage based on residency. By attracting high net worth individuals to use the Bahamas as their primary domicile, the Elizabeth MP said they would escape the ‘tax net’ in their home countries via legitimate, compliant means. The Bahamas, Mr Pinder suggested, should prove its clients’ compliance by issuing them with a Tax Residency Certificate in return for a modest annual contribution to the Public Treasury. Apart from boosting the Government’s revenues, Mr Pinder said such a compliant business model would attract wealthy individuals and their families to domicile their assets in the Bahamas. Not only would these be managed by the Bahamian financial services industry, he added, but they might ultimately one day be invested in the local economy, creating jobs and investments. See PG B4
BPL ‘clamping down’ on light bill duckers Crack down on ‘friends, family, lovers’ avoiders New CEO creates ‘new sheriff in town’ impression Brings ‘first world managerial’ style to bear By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMAS Power & Light (BPL) is “really clamping” down on bill duckers who use their ‘connections’ to avoid paying, its chief executive yesterday giving the private sector the impression “there’s a new sheriff in town”. Dionisio D’Aguilar told Tribune Business that Pam Hill had made a favourable impression on himself and other Chamber members at yesterday’s breakfast meeting, indicating that the ‘new BEC’ will be more transparDIONISIO D’AGUILAR ent and accessible than the Governmentrun model. While few specifics were divulged about BPL’s business plan, and how its manager, PowerSecure, plans to turn around the ailing energy monopoly, Mr D’Aguilar said Ms Hill’s arrival appears to herald a “first world” management style. “The breakfast was very lacking in specifics; it was more tone setting,” Mr D’Aguilar told Tribune Business. “There’s a new sheriff in town, she’s accessible, she gave her e-mail address out and asked people to call her if they have any issues. “It was a substantial modification in style from Leslie Miller. They’re [PowerSecure] very much first world in the way they do things, not this carry on and ranting and raving.” Mr D’Aguilar’s comments are likely to be interpreted as veiled criticism of BEC’s former executive chairman, and he indicated that its newly-formed operating subsidiary and management team were already See PG B5
PAGE 2, Wednesday, June 15, 2016
THE TRIBUNE
Tourism ministry wins top European honour THE Ministry of Tourism has been awarded the Platinum Award at The European Awards for Best Practices 2016. The awards, run by the European Society for Quality Research (ESQR), recognise outstanding commitment, support and results in delivering top management strategies, along with customer satisfaction and loyalty. Anthony Stuart, the Ministry of Tourism’s director for Europe, said the award shows the Ministry of Tourism’s efforts are noticed and celebrated. He added that winning the Platinum Award was a
wonderful achievement for any organisation. “Our team at the Ministry of Tourism and stakeholders in the industry work very hard to keep the islands of the Bahamas at the forefront,” said Mr Stuart. “This is the second year in a row that we are recognised by the European Society for Quality Research (ESQR), having won the Gold Award in 2015. We want to continue to not only meet our guests’ expectations but strive to exceed them. “We want to offer the best service possible and have them enjoy a vacation of a lifetime. We trust
that their experiences will encourage them to keep returning to our destination, and that they will keep spreading the news that the Bahamas is still one of the best places in the world to vacation.” The European Awards for Best Practices programme takes analyses the initiatives and strategies that business leaders implement in their companies and organisations. It recognises the efforts of exceptional and talented employers and employees, and provides motivation for continuous progress.
DIRECTOR for Europe, Mr. Anthony Stuart accepted the award on behalf of The Ministry of Tourism from Mr. M. Harris, Chief Executive Advisor, the European Society for Quality Research.
BTC wins major global honours THE Bahamas Telecommunications Company (BTC) has won three international awards for innovation, excellence and best chief executive in the region. The 2016 Corporate Live Wire Innovation and Excellence Awards recognised Leon Williams as
‘Telecommunications CEO of the Year’. He was also recognised as Best Telecommunications CEO for the Caribbean, and most innovative CEO in the Bahamas, by Business Worldwide. Mr Williams, who also serves as senior vice-president of Cable and Wireless Communications (CWC), is
in his second stint as BTC chief executive, having been reappointed in 2014. Corporate Live Wire has described him as a “nationally and internationally well-respected practitioner of change management, with an executive career of over 21 years”. “I am humbled by these awards and I remain pas-
sionate about telecommunications,” Mr Williams said. “Over the years, I have been blessed to be a part of the evolution of telecommunications in this country. These awards are especially significant as BTC celebrates its 50th anniversary since the 1966 Act of Parliament that changed our
name from Telecoms Department. “I’ve seen us evolve from plain old telephone services to 4G LTE data services, and to the first quad play provider. I thank the 600plus team members of BTC that have worked hard to ensure that we keep every single island, rock and cay in the country connected regardless of the cost.” Mr Williams’ accomplishments include more than $400 million in capital development projects at BTC. These include the evolution of mobile solutions from TDMA to 4G LTE data services, advancements in BTC’s billing systems and the installation of the Bahamas Domestic Submarine Network International (BDSNi), which connects 14 Bahamian islands and has a spur to Haiti. BTC is currently deploying Fiber to The Home (FTTH)technology, and trialling the viability of prepaid electricity and prepaid water. Mr Williams also serves as vice-chairman of the Caribbean Association of National Telecommunications Organisations (CAN-
LEON WILLIAMS TO). He has previously served as its chairman, vicechairman and treasurer. Mr. Williams was one of the 2016 Corporate Live Wire Innovation & Excellence Awards’ 154 international winners. Other companies receiving awards include Google, AirBNB and Grant Thornton. Business Worldwide said its judging panel had hundreds of entries to review, and that chief executives from more than 36 nations, including South America, Asia, North America, Europe and Africa, were considered.
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Wednesday, June 15, 2016, PAGE 3
Bahamasair ‘repaid’ extra $30m subsidy
Chamber in ‘frank and open’ BPL talks
By NATARIO McKENZIE
Tribune Business Reporter
Tribune Business Reporter
nmckenzie@tribunemedia.net THE Government yesterday said the seeming $30 million increase in Bahamasair’s subsidy for the 2015-2016 fiscal year was an ‘advance’ to enable the carrier to purchase its new fleet, which was subsequently repaid. Michael Halkitis, minister of state for finance, said the Government had advanced funds without a guarantee to enable Bahamasair to start purchasing its ATR planes, as the $120 million loan financing for the new fleet had yet to be completed. Mr Halkitis was responding to questions from Central Grand Bahama MP, Neko Grant, over what appeared to be an additional $30 million subsidy given to Bahamasair. The Government’s accounts for the nine months to end-March 2016 showed a subsidy of more than $44 million to the airline, when the House of Assembly had only approved $14.8 million for the full 2015-2016 fiscal year. Mr Halkitis explained
$120m facility not in place for first plane delivery
nmckenzie@tribunemedia.net
Gov’t advanced funds from Treasury to cover yesterday that Bahamasair had secured financing a consortium featuring CIBC FirstCaribbean International Bank and Credit Suisse to purchase its new fleet, but the facility had not been put in place by the time the first aircraft were due for delivery. “During the course of finalising the loan, some of the aircraft came forward to be delivered,” Mr Halkitis said. “What the Government did was to advance money to Bahamasair so they could take delivery of these aircraft. “When the loan was completed that money was repaid to the Government. At the end of this year it would be reflected that Bahamasair has repaid those funds to the Government.”
BAHAMASAIR ATR 72-600 AIRCRAFT Mr Halkitis added: “There is no guarantee in place. The aircraft are ATR’s, and I am advised that the fuel savings as opposed to what they’re using now will be in the area of 30 per cent, and that will increase the profitability of Bahamasair and enable them to better service the debt. “The Government has been giving a subvention to Bahamasair for the past 40 years. Funds were advanced during the process of the loan being finalised and the funds have been repaid by Bahamasair.”
Mr Grant said yesterday that the Christie administration has not said under what authority it was able to advance the funds to Bahamasair. Last July, the Government and Avions de Transport Régional (ATR) signed a $100 million contract for the purchase of five ATR 600 planes to replace Bahamasair’s aging Dash 8-300 fleet. The contract finalised the sale of three 50-seat ATR 42-600s and two 70-seat ATR 72-600 planes.
Correspondent de-risk faces scoring ‘own goal’ By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net CARIBBEAN financial services regulators yesterday warned that the decision by developed country banks to exit correspondent banking relationships with the region could drive an increase in “informal and unregulated” banking channels. A Bahamas Institute of Financial Services seminar was told that leading financial global institutions were effectively in danger of scoring of an ‘own goal’, as their correspondent banking pull-back threatened to increase - not decrease - risk. Kevin Higgins, former managing director at the Financial Services Commission in Turks & Caicos, said: “The problem is that we are going to see these kinds of transactions moving to the informal, irregular, underground channels which obviously will increase the risk of money laundering we are attempting to prevent, and therein lies the dilemma. “Should we maintain them [correspondent relationships] in the channels that exist with greater compliance, due diligence, monitoring etc, or do we shut down the channels and then allow them to seek unregu-
Regulators fear switch to ‘unregulated’ channels lated, unlicensed channels, which is going to create another problem.” Abhilash Bhachech, the Central Bank of the Bahamas’ inspector of banks and trust companies, added: “Certainly you will see the informal banking sector being expanded. “If you can’t use normal banking channels to do the wire transfers, you end up using certain informal channels. The de-risking will drive some of this consumer behaviour, where persons will use other less regulated, higher risk methods for money transfers.” They were not alone in their concerns yesterday. Ryan Pinder, former minister of financial services, used his 2016-2017 Budget debate contribution to urge the Bahamas to take the regional lead in fighting against the correspondent banking ‘push back’, instead of relying on CARICOM to do this. “We have experienced the
By NATARIO McKENZIE
loss of correspondent banking here in the Bahamas,” Mr Pinder said. “Our independent institutions are constantly under this threat; some have had to close accounts because of loss of correspondent banking, and others are at risk and looking for options. “This poses a real danger to financials services in particular, but to the economy in general, as we all depend on the banking system.” Correspondent banks are those foreign entities that allow Bahamian financial institutions to provide services in their home countries, using their physical and electronic banking infrastructures. They give Bahamian banks, and their clients, access to the international capital markets and financial system, enabling transactions to clear and be settled on a timely basis, and foreign currency deposits to be taken. Foreign correspondent banks thus provide the key gateway to the world economy and financial system, lubricating the conduct of international commerce by Bahamian companies- an access that is now being threatened region-wide. Mr Higgins said there could now be increasing
pressure or momentum building to seek a reserve currency to the US dollar. “The US dollar has been, for some time, the international reserve currency. Gold and oil, for example, are all are priced in US dollars, but if we are doing business with China, if we are importing goods from China, why do we need to go into a New York bank to pay Beijing?” he asked. “Why can’t we go through Luxembourg, where the Chinese yuan is traded in Europe?” In response to the derisking trend, Mr Higgins said the Caribbean should seek intermediary correspondents, segregated correspondents and multi-currency correspondents. “The Bahamas, because of its economic model,has been tied to the US dollar,” said Mr Higgins. “It may well be today that banks need to start looking at where the money is ultimately going, and whether we need to keep a tranche in the currency in which the ultimate payment is made. A more analytic approach to the management of the international relationships and the correspondent relationships needs to be taken.”
PRIVATE sector executives yesterday said they had a “frank and open” discussion with Bahamas Power & Light’s (BPL) new chief executive, while acknowledging that few specifics were given on the energy monopoly’s turnaround plan. Mike Maura, Arawak Port Development Company’s (APD) chief executive, told Tribune Business: “Ms [Pam] Hill is a very capable professional, and what she basically provided was a summary of the approach that she and BPL are taking, with a focus on reliability, customer service and affordability. “She shared that on the affordability side, a big constraint that we have is our dependence on the fuels that we use, where on our BEC bill today as much as 50 per cent of that is specific to the fuel cost. “She mentioned that they are looking seriously at moving to automated meter infrastructure. She spoke about how they have been too dependent on the Blue Hills plant, which has the older generators that are less efficient than the Clifton engines, and that’s an area of concern for them. She shared, although it’s no surprise, that there is a real issue with accounts receivables.” Mr Maura added: “I thought it was a frank discussion. I thought she was giving a very straightforward perspective in terms of what they have to do. I think she did a great job.
“She didn’t necessarily provide a detailed plan. She’s only been on the island for a month. I think we need to give her some time to understand what she is responsible for.” Another local businessman, who attended the meeting but wished not to be identified, told Tribune Business: “I thought she was direct in her communication in terms of what they hope to achieve. It’s obvious that there is still some element of political interference. “She kept stressing that they are getting better. It’s obvious that they still have a way to go in terms of being able to regularise Bahamas Power & Light to the point that it is running anywhere near where it should be. We still have a bit to go through obviously.” He added: “The actual business plan for BPL in its totality will not be released to provide the general public with any details of the things they have planned. Obviously they are going to address customer service and maintenance, and things of that nature in the public domain, but there are no plans to formally release the entire business plan, which to me is understandable. “Even though it is a government corporation it is being run as a private business, and not everything is for public consumption. I think, however, that there should be an executive summary with key points from the business plan that should be in the public domain.”
The Board of Directors of Fidelity Bank (Bahamas) Limited is pleased to notify all shareholders that a dividend of $0.20 per ordinary share has been declared to be paid on June 30, 2016 to all shareholders of record as of June 23, 2016.
PAGE 4, Wednesday, June 15, 2016
Economic confidence levels at ‘35-year low’ From pg B1 picture of the Bahamas’ medium term economic prospects in its latest assessment, released last Friday. It suggested the Bahamas’ ‘new norm’ is a lowgrowth economy, plagued by “double digit” unemployment and structural impediments to improving competitiveness and job creation. Describing the IMF’s language as “pretty strong”, Mr Myers nevertheless agreed that its conclusions and analysis on the Bahamian economy were accurate. “I think their analysis is spot on,” he told Tribune Business. “Their recommendations are spot on, and validate what we’ve been saying in ORG, the
Chamber and the Coalition for Responsible Taxation. “People are deciding not to look at the bigger picture, and are not doing enough about it. If we’re not careful, it’s going to be too little, too late. “The apathy in the private sector is not surprising. Everyone is concerned about the situation, but the apathy is problematic. It really is.” Mr Myers urged all Bahamians “to demand higher standards and greater accountability” in governance, adding: “It’s no good doing it when we’ve fallen on our ass. “It’ll be a sad day when that happens. We’ve got to start being proactive. I think there is hope for a recovery, but only if people start pulling together. “That has to start with
Ex-Cabinet minister urges: ‘Rescue financial services’
THE TRIBUNE
the Government, and we have to get rid of the apathy in the private sector and citizenry. We collectively, as a nation, need to start paying attention to what is going on around us. If we don’t, we’re going to find ourselves on our ass, and that’s not an easy place to come back from.” Mr Myers warned that the required collaboration between the Government, private sector and civil society could not be achieved if politicians resorted to their traditional tendencies of victimisation and defensiveness, whenever they faced pressures for meaningful reform. “If the political parties, the politicians and the Government choose to be defensive and victimise those trying to help, that’s where we will end up; on our ass,” he reiterated. “Most self-respecting people will not abide by that kind of behaviour. They’ll either shut up or
leave, or both, and that’s a crying shame. “The only chance we’ll have is if we work together, put our political differences aside, and focus on how we’re going to be fiscally responsible and fiscally prudent, how to change the outlook of the private sector, and increasing consumer and business confidence,” Mr Myers continued. “Those two indicators are at very low levels, if not all-time lows - at least in the 35 years I’ve been back and in the workforce.” That grim assessment is backed by the latest IMF outlook, which could find no prospects for the Bahamas to break out of its ‘low growth trap’ in the near to medium term. It could only identify “downside risks” facing the Bahamas, and referred to a “sizeable output gap” to emphasise how this nation continues to perform below its economic growth potential.
The Fund also pointed out that the Bahamas’ economic growth potential has fallen by 50 per cent since the turn of the century. “Staff estimates point to potential growth between 1 and 1.5 per cent over the medium-term, down from close to 3 per cent at the start of the century,” the IMF’s executive board said. “This outlook is subject to mainly downside risks, calling for continued fiscal consolidation to rebuild fiscal and external policy buffers and boosting investor confidence, as well as a decisive shift towards implementation of structural reforms to improve competitiveness, reduce unemployment and raise potential growth.” The 50 per cent reduction, in percentage terms, in the Bahamas’ economic growth potential over the past 16 years shows how this country is now paying the price for its failure to implement much-needed
structural reforms. While the IMF’s message has changed little from recent assessments, its latest missive emphasises just how much work the Bahamas has to do in multiple areas to revive its economy. “Economic growth is estimated to have stalled in 2015, as a modest increase in air tourism arrivals was not sufficient to offset a contraction in domestic demand and weak exports of goods,” the IMF said. “Private consumption and investment were weighed down by headwinds from fiscal consolidation, as well as an end to construction and uncertainty over the opening of the Baha Mar mega resort.” The Fund’s GDP growth estimates have now been brought into line with the Government’s own, and reflect the 1.7 per cent contraction in 2015, as well as the 0.5 per cent and 1 per cent estimates for modest expansion in 2016 and 2017.
From pg B1
‘tell it as it is’ with regard to the Bahamian financial services industry, and he was quick to criticise successive governments for failing to realise the sector’s importance and respond accordingly. “In my opinion, Governments have had too much focus on foreign direct investment and tourism at the expense of properly developing the genesis of the middle class Bahamian, and current opportunity for Bahamian entrepreneurial ventures, the financial services industry,” he argued. “Greater understanding, and greater focus, is required at the policy levels as well as throughout the bureaucracy of government...... “It is not only my belief, but also those throughout industry, that Government must be more focused and more responsive to, and demonstrative of its stated commitment to the future viability of the industry and its value propositions. This is a current issue that requires current action.” Mr Pinder warned that the continuing regulatory and tax-related initiatives being driven by the G20/G-7 and its variety of supporting fora would impose “monstrous” supervisory and compliance requirements on nations such as the Bahamas. Yet, with IFCs having little choice but to comply with new global standards, Mr Pinder called for the Ba-
hamas to build a “new value proposition” that was based on residency. By domiciling in the Bahamas as their primary residence, the former minister said high net worth individuals would be able to legitimately escape the ‘high tax’ regimes in their home countries. While this might give the Bahamas a competitive advantage, Mr Pinder warned that too exploit it, this nation would have to become far more welcoming - not to mention efficient, transparent and open - with its Immigration and residency policies and processing. “We are woefully inefficient in processing these valid applications for permanent residence,” he said. “We have developed a negative reputation in the international community because of our inefficiencies and lack of transparency in the process. “We also have no process, certificate or designation of being a tax resident of the Bahamas. This is also costing us business in the international community. In the industry, there is a trend of attracting higher net worth clients, with more assets, even if it means fewer clients in total. The difficulties just described are imposing significant challenges on the industry and redefining our new value proposition.” Mr Pinder’s concerns prompted Hope Strachan, his successor as minister of financial services, to affirm
that the Christie Cabinet was assessing various Immigration-related reform proposals to aid the financial services industry. Still, Mr Pinder proposed a set policy for dealing with residency applications, including fixed timelines for responses and approvals. And he called for a tax residency programme to be implemented, arguing that the associated new revenue stream could help eliminate the fiscal deficit. “What I propose is that if a client spends 90 days in the Bahamas, or can demonstrate objective evidence of closer connection and domicile to the Bahamas, and he pays a tax, let’s say $20,000 per year, then the Government of the Bahamas issues a tax certificate to the client demonstrating tax residence in the Bahamas,” Mr Pinder said. “If we assume just 1,000 new tax certificates each year, that is $20 million of revenue the first year, $40 million the second year, $60 million the third year, etc.” He added: “Residency for ultra high net worth clients should be our new value proposition, but can only be accomplished by way of predictability, certainty, transparency and progressive reforms. “Done right, the Bahamas can be the Monaco of the Caribbean, the Monaco to the Latin American billionaires, a growing financial centre with a real value proposition to offer. A value proposition based on substance, not form. A value proposition that attracts clients we want, their assets, an investment in our country. “I cannot emphasise enough the significance to the Bahamas and the industry of these reforms. They could literally be the lifeline to our industry, our middle class, to the economic stability of the country.”
Emphasising just why the financial services industry needed to be saved, Mr Pinder said it had created more Bahamian managers, and “been [more] responsible for broadening the middle class than any other industry”. He added that it had also fostered entrepreneurial and ownership opportunities for Bahamians, with the sector’s workforce featuring a majority 80 per cent local component. Half the senior executives are also Bahamian. “We have to preserve and advance this industry in the Bahamas for the economic viability of our country,” Mr Pinder said. “A failed financial services industry will quickly result in a failed Bahamian economy, which will result in a failed country. “Today, we are experiencing a variety of international initiatives that are presenting serious and, some believe, insurmountable obstacles to the viability of our financial services sector. Things are not good in the industry.... We are under tremendous strain, this is true. Some see no way out.” Mr Pinder thus became one of the first politicians to
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, MELONY FLORENDER KNOWLES (NEE) STUBBS of the Western District of the Island of New Providence, The Bahamas intend to change my name to MELANIE FLORINDA KNOWLES (NEE) STUBBS. If there are any objections to this change of name by Deed Poll, you may write such objections to the Deputy Chief Passport Officer, P.O. Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of the publication of this Notice.
THE TRIBUNE
Wednesday, June 15, 2016, PAGE 5
Local creditors run into a ‘Hard Rock’ From pg B1 has been paid out to creditors from the latter’s liquidation. “My company that was the landlord for the Nassau Hard Rock Cafe is owed many thousands of dollars in unpaid rent by HRCC (Bahamas),” Marvin Pinder alleged. “Around the time the HRCC (Bahamas) entity was ceased operating in March 2014, I was informed by Mr Doyle that the entity was being placed into liquidation proceedings. “I am aware of no distribution having been made to creditors from the liquida-
tion process.” Kendrick Christie, Mr Gomez’s fellow partner and accountant at Grant Thornton (Bahamas), declined to comment yesterday when contacted about the status of the HRCC (Bahamas) liquidation and status of possible payments to creditors. However, Shawn Young, the vice-president of Entertainment Outfitters, a US-based apparel producer that supplied the former Hard Rock Cafe (Nassau) franchise, confirmed that it was still owned “thousands of dollars” by the Doyles’ entity, which had been out-
Company waiting eight weeks for Business Licence From pg B1
We must do better to cause for more efficiencies in doing business in this country.” Mr Pinder’s comments will likely be warmly welcomed by the private sector, given the numerous tax compliance and enforcement measures that the Government is either seeking to implement or introduce with the 2016-2017 Budget. Many fear these will further increase the regulatory and administrative burden on tax-compliant businesses, further impeding their competitiveness and ability to invest in job-creating expansions. Mr Pinder, meanwhile, warned that ‘ease of business’ concerns were also impacting a Bahamian financial services industry that many felt was at “a tipping point” in terms of being able to cope with the onslaught of global forces ranged against it. Calling for the Government to “react quicker” to that sector’s needs, and “be more innovative.... in these changing and volatile times” to remodel the financial services ‘value proposition’, the Elizabeth MP said bureaucratic inefficiencies added a further obstacle. “Policies to facilitate the ease of doing business, the attractiveness of the jurisdiction, the widening of scope of offerings and ser-
vices, is paramount to the survival of the financial services industry and the businesses therein,” Mr Pinder said. “We as a country are losing our value proposition, it is more difficult to do business, and reliance on efficient and transparent government processes is difficult.” Mr Pinder also urged the Bahamas to target attracting more institutional client business, such as hedge funds and mutual funds, and focus on commercial and trade finance via an economic zone in Freeport. He also called for the Government to provide tax incentives to encourage the growth of Bahamian small businesses. “We also need to develop policies to allow for small businesses to have access to capital,” Mr Pinder said. “Our mechanisms that currently exist, the Bahamas Development Bank and the Venture Capital Fund as examples, are notoriously under capitalised and difficult to access. “When they are accessed there are no parameters to assist the small businesses to succeed, and thus many loans become in default. Viable capital access plans with business guidance are required.”
standing since 2013. And, in a situation that has parallels with the ongoing struggle of former City Markets staff and pension beneficiaries to recover what is due to them, former HRCC (Bahamas) staff have also yet to receive due severance and other benefits more than two years after the company’s collapse. A former HRCC (Bahamas) employee, speaking to Tribune Business yesterday on condition of anonymity, confirmed that a lawsuit filed by 21 former staffers against the company in August 2014 was still active. They are collectively seeking some $174,000 in severance, notice and vacation pay, according to documents obtained by Tribune Business, with the greatest two individual sums being
$42,720 and $32,317 respectively. Disillusioned by their lack of progress in securing due compensation, the former HRCC (Bahamas) employee said: “Nothing’s happened. “We went to the Labour Board, and have gone to court. Our voices have been silenced.” While many were immediately re-hired by Mr Pinder and the operators of the new Hard Rock Cafe (Nassau) franchise, the employee said the financial terms were far less favourable than under the Doyles. “We were brought back at lower pay, and lost all our benefits,” they added. The 21 employees are claiming that they were made redundant in March 2014 “in breach of their
BPL ‘clamping down’ on light bill duckers From pg B1 beginning to implement much-needed changes. In particular, he said Ms Hill informed the Chamber breakfast that BPL was already cracking down on customers who used their ‘connections’ - political and family - to avoid paying their light bills. “She made the comment that they’re really clamping down on friends, family and lovers,” Mr D’Aguilar told Tribune Business. “Those who have political connections and insider contacts, and are simply not paying their bill because they don’t have to. They’ve clamped down on that.” Tribune Business understands that BPL’s ability to cut off non-paying customers with significant arrears, especially government departments, agencies and buildings, was one of the ‘sticking points’ that held up the signing of PowerSecure’s management contract. BEC’s last audited financial statements, for the year to end-September 2014, exposed just how heavily non-paying customers are weighing on its cash flow and profitability. The private sector (households and businesses), at end-September 2014, collectively owed BEC a net
$82.379 million in light bill arrears. The gross figure was $178.703 million, but BEC had already provided for $96.324 million of this sum. A further $37.357 million was owed by the Government and its various ministries and departments, taking BEC’s total accounts receivables to almost $120 million. The Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) breakfast meeting with Ms Hill was closed to the media, but Tribune Business spoke to numerous attendees to obtain an accurate picture of what was discussed. Mr D’Aguilar, who was present throughout, said Ms Hill coped admirably with everything that Mr Miller and the trade unionists present could throw at her. Pointing to her Ivy League resume, with stops at institutions such as Dartmouth and Harvard, and a long career in the energy industry, he said BPL’s senior executive was very receptive and non-confrontational in listening to the private sector’s concerns. “Leslie Miller came at her and she handled it very
contract of employment, and without adequate and/ or proper compensation” from HRCC (Bahamas). “Despite numerous negotiations, meetings and promises by [HRCC (Bahamas)] to compensate the plaintiffs, on each and every occasion the first defendant has failed or refused to pay the plaintiffs’ outstanding claims, or to make any payment at all,” the employees’ statement of claim reads. “In breach of the plaintiffs’ legitimate expectation to continue working, without notice, in mid-March 2014 or thereabouts the plaintiffs were informed by management that the business was closing and that their tenure as employees at Hard Rock Cafe and related benefits would cease on March 31, 2014.
Three employees had worked for the Hard Rock Cafe (Nassau) franchise for more than a decade, and Marvin Pinder’s Thirty 3 Ltd and another entity he owns, Habacoe Ltd, are also named as defendants in the action. The staff are alleging that Thirty 3 Ltd is “liable for the obligations” left by the Doyles and HRCC (Bahamas), given that it is the new owner of the Nassau franchise. And Habacoe Ltd was alleged to be “vicariously liable through assignment’, on the grounds that it had operated and owned the Nassau Hard Rock Cafe business between 2000 and April 2004, via a sub-franchise agreement between Marvin Pinder and the Doyles.
well,” Mr D’Aguilar told Tribune Business. “The union came at her, and she handled it very well. She was very professional and very impressive.” He added that Ms Hill offered no specifics on BPL’s recent rate rise proposal, which was apparently rejected by the Christie administration. “He [Mr Miller] tried to run on about the fact there were a lot of poor people who were already hurting and all the rest of it,” Mr D’Aguilar said of the meeting. “She [Ms Hill] made the point that the poorest, and lowest, consumers would see a rate decrease, but didn’t say what other customers could expect.” The Superwash president added that Mr Miller, in keeping with recent-union bashing attacks, also hit out at the existing pension plan, and the fact that BEC staff did not contribute a single cent to their retirement ‘nest eggs’. This, Mr D’Aguilar said, provoked a riposte from unionist Jennifer Isaacs-Dotson, who the pension plan and union relations were governed by agreements, and the Government could not simply amend them arbitrarily or via threats. Ms Hill declined to comment on the pension fund issue, saying this was a mat-
ter for the BEC unions and the Government to address. However, in response to a question from Mrs IsaacsDotson about whether BPL intended to downsize staffing levels, Ms Hill said she planned to “rightsize” - redeploying staff to areas where they were needed more. She also acknowledged the ongoing problems caused by blackouts, stemming from BEC’s aged, inefficient infrastructure, and promised to “do her best” to remedy electricity supply reliability. “Mr Miller would argue that they’re not doing anything different from what he was doing,” Mr D’Aguilar told Tribune Business. “But he wants to deliver power at a cost that is unattainable. He wants to make out that he’s a champion, but he was driving BEC into further debt.”
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PAGE 6, Wednesday, June 15, 2016
THE TRIBUNE
Britain’s pro-EU side nervous as odds slashed on ‘leave’ LONDON (AP) — Nervous "remain" supporters stepped up campaigning in Britain's European Union referendum Tuesday after odds on a vote to leave the bloc dramatically narrowed following a string of polls showing a surge in "leave" sentiment. The pound fell to a twomonth low against the dollar on Monday, to $1.4131, and the FTSE-100 share index fell below 6,000 points for the first time in nearly four months, as bookmakers cut the odds of an exit vote in the June 23 referendum to as short as 6-5. "Remain" was still the favorite, but only just, after several phone and online polls suggested growing support among voters for leaving
the 28-nation bloc. Senior Labour Party figures warned that leaving the EU could cause a recession and trigger big publicsector job losses. Labour leader Jeremy Corbyn said trade unions across Europe had "bought us better working conditions, longer holidays, less discrimination and maternity and paternity leave." "We believe that a Leave vote will put many of those things seriously and immediately at risk," he said. Employment Minister Priti Patel, a "leave" supporter, insisted there would be "more than enough money to go round" if Britain doesn't have to pay millions a week to the bloc. Polls suggest the "leave"
campaign has had success by focusing on public anxiety about immigration, which has soared from other EU countries over the past decade. Free movement of people within the bloc is a key EU principle. In a bid to regain ground on the issue, a senior Labour politician suggested the party could seek to limit free movement if it formed a government after a "remain" vote. "I think a future Europe will have to look at things like the free movement of labor rules," deputy leader Tom Watson told the BBC. The Rupert Murdochowned Sun tabloid on Tuesday urged its readers to vote for an EU exit, with a front-page editorial under
LEADER of the anti EU, UKip party Nigel Farage meets members of the public during his party’s referendum Battle Bus tour in Kingston, London yesterday. Britain goes to the polls in a referendum on Thursday June 23 on whether Britain should remain or leave the EU. (AP Photo) the headline "BeLeave in Britain." The newspaper — which has a history of backing the winning side in elections — urged voters to reject a "dictatorial" EU that "has proved increasingly greedy, wasteful, bullying and
breathtakingly incompetent in a crisis." The Sun has seen its readership decline in the online news era, but it remains Britain's biggest selling newspaper, with a circulation of more than 2 million. Meanwhile, a top EU of-
ficial said "the world needs the European Union," in a remark seen directed at Britain ahead of next week's vote. EU foreign policy chief Federica Mogherini had so far declined to comment on the referendum.
Senate approves defense bill, defies White House veto threat WASHINGTON (AP) — Defying a White House veto threat, the Senate voted decisively Tuesday to approve a defense policy bill that authorizes $602 billion in military spending, bars shuttering the prison at Guantanamo Bay, Cuba, and denies the Pentagon's bid to start a new round of military base closings. The GOP-led Senate's version of the National Defense Authorization Act passed 85 to 13, with all but seven members of the Democratic caucus backing the legislation. Six Republicans voted against the bill. The legislation mandates for the first time in history that young women sign up for a potential military draft. The requirement has angered social conservatives, who fear the move is another step toward the blurring of gender lines akin to allowing transgender people to use public lav-
atories and locker rooms. A heated dispute over amendments to the bill left in doubt the future of a program that allows Afghan civilians in danger of being harmed or killed by the Taliban to receive visas and resettle in the United States. The Republican-led House passed its version of the defense bill last month and lawmakers from both chambers must meet in a conference to resolve differences. The House, for example, excludes the female draft requirement and seeks $18 billion more in spending than the Senate to pay for troops and weapons the Pentagon didn't request. The defense bills authorize military spending for the fiscal year that begins Oct. 1. But there is agreement in both chambers on key policy provisions — such as keeping Guantanamo open — that puts Congress on a
collision course with President Barack Obama. During his first campaign for president, Obama promised to close the detention facility at Guantanamo, which he has called a recruiting tool for extremist groups. But Republicans and a number of Democrats have repeatedly thwarted his goal, arguing the prison is critically needed for housing suspected terrorists. The ban on closing the prison also includes a prohibition on moving detainees at Guantanamo to secure facilities in the United States. The House and Senate also have agreed not to allow military bases to be closed. The Pentagon says the services have vastly more space for training and basing troops than they need, and trimming the surplus would save money better used to strengthen the military.
But Congress won't go along. Military bases are prized assets in local economies and shutting them can cost votes in the next election. Besides, several lawmakers have argued that the Pentagon has cooked the books to justify its conclusions or at least didn't do the math completely. The White House also opposes provisions in the House and Senate bills that would limit the size of the president's National Security Council staff. According to Republicans, the staff has been micromanaging military operations even though they are supposed to only coordinate policy and advise the president. Rep. Mac Thornberry, R-Texas, the House Armed Services Committee chairman, said he has personally heard from troops in combat who have received intimidating calls from junior White House staffers.
MARKET REPORT TUESDAY, 14 JUNE 2016
t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com
BISX ALL SHARE INDEX: CLOSE 1,924.07 | CHG 0.00 | %CHG 0.00 | YTD 100.12 | YTD% 5.49 BISX LISTED & TRADED SECURITIES 52WK HI 3.30 17.43 9.09 3.50 4.70 0.18 8.34 8.25 5.80 10.60 15.50 2.57 1.60 5.80 7.55 11.00 7.30 6.90 12.25 11.00
52WK LOW 2.20 17.43 9.09 3.00 4.70 0.12 4.84 7.25 5.50 6.85 14.50 1.94 1.27 5.51 6.00 9.90 6.01 5.25 11.75 10.00
PREFERENCE SHARES 1000.00 1000.00 1000.00 1000.00
1000.00 1000.00 1000.00 1000.00
1.00 105.50 100.00 100.00 100.00 105.00 100.00 10.00 1.01
1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.01
SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Famguard Fidelity Bank Finco Focol ICD Utilities J. S. Johnson Premier Real Estate Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B
CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00 100.00
52WK LOW 100.00 100.00 100.00
SECURITY Fidelity Bank Note 17 (Series A) + Fidelity Bank Note 18 (Series E) + Fidelity Bank Note 22 (Series B) +
SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS FAM FBB FIN FCL ICD JSJ PRE
LAST CLOSE 3.30 15.85 9.09 3.50 5.22 0.12 6.70 8.20 5.70 10.60 14.50 2.64 1.50 5.80 7.55 9.90 7.30 6.36 11.93 10.00
CLOSE 3.30 15.85 9.09 3.50 5.22 0.12 6.70 8.20 5.70 10.60 14.50 2.64 1.50 5.80 7.55 9.90 7.30 6.36 11.93 10.00
CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB
1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.01
1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.01
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
SYMBOL FBB17 FBB18 FBB22
LAST SALE 100.00 100.00 100.00
CLOSE 100.00 100.00 100.00
CHANGE 0.00 0.00 0.00
115.03 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
114.39 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
-0.64 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
VOLUME 50
14
.
12,000
VOLUME
EPS$ 0.304 1.351 1.086 0.220 -1.134 0.000 0.185 0.551 0.508 0.541 0.528 0.094 0.166 0.510 0.612 0.960 0.650 0.703 0.756 0.000
DIV$ 0.090 1.000 0.000 0.160 0.000 0.000 0.187 0.260 0.200 0.360 0.610 0.060 0.040 0.240 0.275 0.000 0.280 0.120 0.640 0.000
P/E 10.9 11.7 8.4 15.9 N/M N/M 36.2 14.9 11.2 19.6 27.5 19.5 9.0 11.4 12.3 10.3 11.2 9.0 15.8 0.0
YIELD 2.73% 6.31% 0.00% 4.57% 0.00% 0.00% 2.79% 3.17% 3.51% 3.40% 4.21% 2.27% 2.67% 4.14% 3.64% 0.00% 3.84% 1.89% 5.36% 0.00%
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%
INTEREST 7.00% 6.00% Prime + 1.75%
MATURITY 19-Oct-2017 31-May-2018 19-Oct-2022
6.95% 4.00% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25%
20-Nov-2029 15-Dec-2017 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045
BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.03 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
113.70 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Bahamas Note 6.95 (2029) BGS: 2014-12-3Y BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y
BAH29 BG0103 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330
MUTUAL FUNDS 52WK HI 1.97 3.82 1.91 160.64 138.35 1.43 1.64 1.53 1.05 6.67 8.16 5.81 10.66 10.12
52WK LOW 1.67 3.04 1.68 164.74 116.70 1.37 1.51 1.45 1.03 6.11 6.93 5.55 10.37 8.65
FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Bah Int'l Investment Fund Principal Protected TIGRS, Series 5 Royal Fidelity Int'l Fund - Equities Sub Fund
NAV 1.97 3.83 1.91 164.74 133.64 1.43 1.64 1.53 1.05 6.67 8.01 5.81 10.66 8.65
YTD% 12 MTH% 1.35% 4.06% 1.43% 6.57% 0.70% 3.23% 1.67% 5.13% 0.66% -3.41% 1.23% 3.88% 0.55% 8.17% 0.86% 5.37% 1.07% 1.61% -0.14% 9.15% -1.87% 15.62% 0.83% 4.82% 70.00% 2.80% -6.29% -13.65%
NAV Date 30-Apr-2016 30-Apr-2016 29-Apr-2016 31-Mar-2015 30-Sep-2015 30-Apr-2016 30-Apr-2016 30-Apr-2016 30-Apr-2016 29-Feb-2016 29-Feb-2016 29-Feb-2016 29-Feb-2016 29-Feb-2016
MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings
YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful
TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225
The Senate bill caps the number of National Security Council staff at 150, while the House would require Senate confirmation of the president's national security adviser if the size of the staff exceeds 100 employees. The White House has called the limits "arbitrary" and said curbing number of staff number undercuts its ability to assist the president "in an increasingly complicated world," according to the veto message. Hundreds of potential amendments to the bill weren't considered due to procedural disputes that resulted in gridlock. Sen. John McCain, R-Ariz., the Senate Armed Services Committee chairman, said the stalemate was caused by a few senators who didn't get votes on their amendments and responded by refusing to allow votes on any others.
"Too often throughout this process, a single senator was able to bring the Senate's work on our national defense to a halt," McCain said Tuesday. "This was a breakdown in the decorum of the Senate, and one that will have serious consequences." The dispute effectively shut down debate on all amendments, leading McCain and other senators to warn of life-or-death consequences if the Senate failed to take up the Afghan visa program. The Afghans worked for the coalition as interpreters, firefighters and construction laborers. Without the option to leave Afghanistan, they and their families risk being harmed or killed by militants who consider them traitors, the top American commander in Afghanistan has warned. An amendment authored by Sen. Jeanne Shaheen,
NOTICE
NOTICE is hereby given that ERONNE LUBIN of Marsh Harbour, Abaco, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 15th day of June, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE
NOTICE is hereby given that BENJI DESTIN of Fox Hill, New Providence, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 15th day of June, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, KHAMRAN TOREZ SEYMOUR of #25 Highland Terrace, New Providence, Bahamas intend to change my name to KAHAMARON TOREZ SEYMOUR. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.
Legal Notice NOTICE VOUVRAY INVESTMENTS CORPORATION NOTICE IS HEREBY GIVEN as follows: (a) Vouvray Investments Corporation is in dissolution under the provisions of the International Business Companies Act 2000 (b) The dissolution of the said Company commenced on the 9th May, 2016 when its Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said Company is Shareece E. Scott of Deltec Bank & Trust Limited, Deltec House, Lyford Cay, P.O. Box N-3229, Nassau, Bahamas. Shareece E. Scott Liquidator
THE TRIBUNE
Wednesday, June 15, 2016, PAGE 7
‘Net neutrality’ rules for fair internet access win in court WASHINGTON (AP) — A federal appeals court on Tuesday upheld the government's "net neutrality" rules, preserving regulations that force internet providers such as Comcast and AT&T to treat all online traffic — everything from Netflix and cat videos to games and downloads — equally. The 2-1 ruling is a sweeping victory for the Obama administration and the consumer groups and internet companies that have pushed net neutrality for years. The Federal Communications Commission's rules block internet service providers from favoring their own services and disadvantaging others; blocking other sites and apps; and creating "fast lanes" for video and other data services that pay for the privilege. On technical grounds, the ruling upholds the FCC's authority to regulate broadband service as a utility, much like phone service, and to forbid what it considers unreasonable practices. It applies equally to wired broadband providers like cable companies and mobile ones such as Verizon.
TOUGHER REGULATION DOWN THE ROAD The net neutrality rules have been in effect since June, and the court's decision isn't going to change how the internet works tomorrow. But the FCC has already been taking some steps that would change how broadband providers act. The ruling could pave the way for tougher restrictions on cable and phone companies that affect what services they offer, which consumer data they can use and how, and what they can charge. The providers who filed the lawsuit say they'll appeal. "This decision is huge for the FCC's authority," said Marvin Ammori, a longtime net-neutrality advocate. "We won big on everything." That sets the stage for what Ammori and several analysts see as the next big battle. That will likely involve "zero rating" — the practice of exempting preferred video services from customer data caps. Comcast, for example, lets you can watch video at home with its Stream service with no danger of bumping against your data cap (if you have one). T-Mobile's Binge On program lets you watch any video you want from Netflix and many other providers without counting it as data use. Net-neutrality advocates say these types of practices are unfair and tilt the market toward certain favored providers. Other consequences are more difficult to gauge. Christopher Yoo, a professor of law, engineering and communications at the University of Pennsylvania, said the ruling could mean higher prices for some services, while providers might drop others altogether.
NET NEUTRALITY'S LONG SLOG "I think everyone has to be shocked at the
mainly on technical grounds. It argued that broadband is an "information service" and not a utility, because providers offer both internet access and services such as email. Under current law, information services are also exempt from net-neutrality regulation. But the same court ruled that the FCC was justified in reclassifying broadband as a telecom utility because consumers see broadband as a pipe for internet service and a way to get online to use "third-party" services like Gmail and Netflix.
A SLAP AT BROADBAND PROVIDERS
THE VERIZON studio booth at MetLife Stadium in East Rutherford, N.J. In a big win for the Obama administration, a federal appeals court on Tuesday upheld the government’s “net neutrality” rules that require internet providers to treat all web traffic equally.
"Given the tremendous impact third-party internet content has had on our society, it would be hard to deny its dominance in the broadband experience," Judges David Tatel and Sri Srinivasan wrote in a 115-page majority opinion that denied all challenges to the rules. "Over the past two decades, this content has transformed nearly every aspect of our lives, from profound actions like choosing a leader, building a career, and falling in love to more quotidian ones like hailing a cab and watching a movie," the judges said. "The same assuredly cannot be said for broadband providers' own add-on applications." In a lengthy dissent, Judge Stephen Williams wrote that the FCC "fails to offer a reasoned basis" for its view that giving preferential treatment to customers who pay for faster service is a problem. By regulating broadband service like "natural monopolies," Williams said the FCC provides "little economic space for new firms seeking market entry or relatively small firms seeking expansion through innovations." Tatel and Srinivasan were appointed by Democratic presidents — Bill Clinton and Barack Obama, respectively. Williams was appointed by Ronald Reagan.
WHAT HAPPENS NEXT
A SIGN outside the Comcast Center is seen in Philadelphia. A federal appeals court has upheld the government’s “net neutrality” rules that require internet providers to treat all web traffic equally. Providers like Comcast, Verizon and AT&T say the rules threaten innovation and undermine investment in broadband infrastructure. (AP Photos) magnitude of the FCC victory," said MoffettNathanson analyst Craig Moffett. But it was a long time coming. The U.S. Court of Appeals for the District of Columbia Circuit had previously struck down similar rules from the FCC — twice — although at the time the FCC based them on a different and more tenuous claim of legal authority.
The FCC shifted tactics and moved to treat broadband as a utility after President Barack Obama publicly urged the commission to protect consumers by doing so. Providers like Comcast, Verizon and AT&T said the resulting rules threaten innovation and undermine investment in broadband infrastructure. The telecom industry made its case
Opponents of the ruling are already calling on Congress to restrict its reach, but experts say it's unlikely such a law would pass before the election. "We have always expected this issue to be decided by the Supreme Court, and we look forward to participating in that appeal," said David McAtee, AT&T senior executive vice president and general counsel, in a statement posted on the company's website. FCC Chairman Tom Wheeler praised the ruling as an affirmation of the government's power to keep the internet open for all consumers. "After a decade of debate and legal battles, today's ruling affirms the commission's ability to enforce the strongest possible internet protections —both on fixed and mobile networks — that will ensure the internet remains open, now and in the future," Wheeler said.
PAGE 8, Wednesday, June 15, 2016
Stocks fall again as Fed decision, Brexit vote looms
THE TRIBUNE
THE NEW York Stock Exchange. Stocks are opening mixed on Wall Street, early yesterday, as the Federal Reserve begins its latest policy meeting and investors worry if Britain will decide in another week to leave the European Union. (AP Photo) NEW YORK (AP) — Stocks in the U.S. and other global markets fell for a fourth day Tuesday as jittery investors await for the Federal Reserve's decision on interest rates and worried about Britain's expected close vote on whether to leave the European Union. Credit card company stocks fell sharply after Synchrony Financial, the country's leading issuer of store brand credit cards, warned that more of its customers were falling behind on payments. The Dow Jones industrial average fell 57.66 points, or 0.3 percent, to 17,674.82. The Standard & Poor's 500 index fell 3.74 points, or 0.2 percent, to 2,075.32 and the Nasdaq composite fell 4.89 points, or 0.1 percent, to 4,843.55. As stocks declined, U.S. government bond yields remained at their lowest levels since 2012 as investors sought safety ahead of the Fed meeting and the vote in Britain. The yield on the 10-year Treasury note was 1.62 percent, up slightly from a day earlier. In Europe, benchmark German government bond yields fell below zero percent for the first time, a signal that skittish investors are willing to pay to park their money in investments they consider super-safe. The Federal Reserve's two-day meeting started
Tuesday, with a decision on interest rates to be announced Wednesday. The Fed had been expected to raise interest rates, but following some weak economic data, including the most recent monthly jobs report, it now appears likely to wait. Most investors are focused overseas right now. There is grave uncertainty about whether British voters will choose to leave the European Union in a June 23 referendum. Polls show the vote could go either way and investors are starting to worry about the consequences. A British exit from the EU, known informally as Brexit, would likely hurt the British economy most and destabilize the rest of Europe. The repercussions, however, are not clear and investors are reacting to the general uncertainty over the situation. "Investors are 'Brexit' proofing their portfolios right now," said Anastasia Amoroso, a global markets strategist at JPMorgan Asset Management. Amoroso said that if the U.K. were to leave the EU, both the British and European Central Banks would likely lower interest rates to stabilize the continent's economy, which would put pressure on bonds. "Expect drastic volatility around this vote, and if it
does in fact happen look for more countries to leave the EU as well," said Tom di Galoma, a bond trader and managing director at Seaport Global, in an email. In individual companies, Synchrony Financial plunged $3.99, or 13 percent, to $26.45 after the company disclosed that more of its customers were falling behind on payments. The company is also taking losses on more accounts than anticipated. The news hit other credit card companies hard. American Express fell $2.60, or 4 percent, to $61.07 and Capital One Financial fell $4.57, or 6.6 percent, to $64.43. In commodities, benchmark U.S. crude dropped 39 cents to $48.49 per barrel on the New York Mercantile Exchange. Brent crude, used to price international oils, fell 52 cents to $49.83 per barrel in London. Wholesale gasoline futures fell 1 cent to $1.52 a gallon, heating old fell 1 cent to $1.50 a gallon and natural gas rose 2 cents to $2.604 per thousand cubic feet. Gold rose $1.20 to $1,288.10 an ounce, silver fell 2 cents to $17.42 an ounce and copper fell 1 cent to $2.04 a pound The dollar fell to 105.97 yen from 106.21 yen. The euro edged down to $1.1205 from $1.1293.
McConnell: Senate to consider Puerto Rico aid by end of June WASHINGTON (AP) — Majority Leader Mitch McConnell said Tuesday the Senate will consider a rescue package to ease Puerto Rico's financial crisis before the U.S. territory's $2 billion payment to creditors is due July 1.
The House overwhelmingly passed legislation to create a new control board and restructure some of Puerto Rico's $70 billion debt last week. The Senate is expected to take up the same bill "sometime before the end of the month," McConnell, R-Ky., told reporters Tuesday. Puerto Rico has already missed several payments to creditors while a lengthy recession has crippled commerce, sparked unemployment and driven hundreds of thousands of people to the U.S. mainland. In a rare display of political unity, the House bill had the support of President Barack Obama, House Speaker Paul Ryan, R-Wis., and Minority Leader Nancy Pelosi, D-Calif., who see it as the best hope for the island's 3.5 million Americans. Some senators have opposed the legislation, though, and that opposition could slow passage. Sen. Bob Menendez, D-N.J., has spoken out strongly against the House bill, saying the control board would take away the rights of ordinary Puerto Ricans and has colonialist overtones. He said he is hoping to try and amend the House bill when the Senate debates it. Democratic presidential
candidate Bernie Sanders, I-Vt., said the rescue package would "make a terrible situation even worse." He has introduced his own bill to help the territory. Like all U.S. states and territories, Puerto Rico cannot declare bankruptcy under federal law. The legislation would allow the seven-member control board to oversee negotiations with creditors and the courts over reducing some debt, but the bill does not provide any taxpayer funds to reduce that debt. Some Republicans have expressed concerns that it could serve as a precedent for financially stressed states. Sen. Orrin Hatch, RUtah, the chairman of the Finance Committee, said he doesn't like the House legislation but acknowledged that "I think I'm going to have to" support it. McConnell and Republican leaders are hoping to unite the caucus on the issue. They invited House Natural Resources Chairman Rob Bishop, the Utah Republican who negotiated the House bill, to speak to the Senate caucus about the legislation on Tuesday. "It was very positive," Bishop said after the meeting.
HOUSE Natural Resources Committee Chairman Rob Bishop, R-Utah, left, joined at right by Rep. Raul M. Grijalva, D-Ariz., go before the House Rules Committee to prepare a bill that would create a financial control board for Puerto Rico and restructure some of the U.S. territory’s $70 billion debt, at the Capitol in Washington, Wednesday, June 8, 2016. With a $2 billion debt payment looming, House leaders and President Barack Obama are pressuring lawmakers in both parties to support legislation