06172024 BUSINESS

Alcohol smuggling claims ‘baseless and groundless’

By NEIL HARTNELL

CUSTOMS’ top official has slammed as “baseless and groundless nonsense” allegations that senior officials with the agency and Ministry of Finance were involved in an illicit alcohol smuggling racket.

Ralph Munroe, the Customs comptroller, confirmed to Tribune Business that himself and other officials were questioned by the police over the findings of an investigation detailed by former prime minister, Dr Hubert Minnis, in the House of Assembly last week but disclosed that all were cleared of any impropriety.

Documents obtained by this newspaper confirm that the Royal Bahamas Police Force probe “concluded that no evidence was found

• Comptroller hits back at ex-PM on ‘high ups’

• ‘No evidence of wrongdoing’ by he and others

• Top investigator moved, faces disciplinary action

to suggest wrongdoings” by Mr Munroe, or other senior Ministry of Finance or Customs officials, in relation to 16 container shipments imported into The Bahamas in the name of Sean Mckenzie, who is understood to now be deceased.

Tribune Business can reveal that it was Prime Minister Philip Davis KC who directed that a police investigation be conducted after receiving a report on

Customs’ own findings into the suspected smuggling on February 16, 2023, from chief Customs/revenue officer, Trevor Rolle, who led the agency’s probe. His report cites a witness, Vernard Watson, who was encountered at one of the suspect 40-foot containers. Under questioning by Mr Rolle, he said there were unnamed “high ups involved in the facilitation of these containers within the Ministry of Finance

and the Bahamas Customs Department...... “Watson indicated that monies have changed hands and calls have been made, the people need their things, gesturing that the matter will go nowhere because of who all is involved. This his very exact words,” Mr Rolle wrote.

Papers seen by this newspaper reveal that Mr

Minister: Gov’ts LNG SPV will lower costs

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Government’s decision to act as liquefied natural gas (LNG) middleman will drive lower fuel and energy costs through leveraging economies of scale, a Cabinet minister is asserting.

Jobeth Coleby-Davis, minister of energy and transport, in a messaged reply to Tribune Business questions said the Government’s plans to create a fully-owned special purpose vehicle (SPV) to acquire LNG from Shell will result in lower energy prices for Bahamian electricity consumers rather than raising them through inserting

another entity into the supply chain.

She explained that the SPV will not only be selling the LNG on to Bahamas Utility Company, the FOCOL subsidiary that has

FNM chair says $30m for BPL’s grid ‘national steal’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

ENABLING private investors to acquire majority control of New Providence’s electricity grid for just an initial $30m equity capital investment has been branded “a hell of a deal” by the Opposition’s chairman.

CCA: Baha Mar only $68m over its budget

By NEIL HARTNELL Tribune Business Editor

BAHA Mar’s main contractor is asserting it went just 3 percent over-budget in completing the mega resort as it makes a lastditch bid to slash Sarkis Izmirlian’s damages claim by $830m.

Construction

China

America (CCA) and its Bahamian affiliates, in legal filings with the New York State Supreme Court last week, claimed cost overruns only totalled $68m compared to the initial $1.98bn construction budget as it sought a court order blocking Baha Mar’s original developer from recovering the $830m in equity capital it contributed to the development.

The Chinese state-owned contractor, which has hired new US attorneys after a series of legal reversals in its six-and-a-half year court battle with Mr Izmirlian, is also bidding to exclude any costs incurred by Baha Mar in the run-up to the $4.2bn

mega resort’s failed March 27, 2015, opening from the damages it may have to pay. It has made its move less than two months before the trial’s August 1, 2024, start. Referring to Mr Izmirlian’s investment vehicle, CCA and its attorneys are asserting that “the scope of BML Properties’ claims has narrowed significantly over the course of this case” from covering the entirety of the project’s development to the fivemonth run-up to the failed opening between November 2014 and March 2015.

Dr Duane Sands told Tribune Business that the terms of the Davis administration’s minimum 25-year agreement with Bahamas Grid Company, the entity into which New Providence’s transmission and distribution is being transferred, represented “quite a bargain” for the institutional investors and high net worth individuals who are being invited to buy-in using their own monies.

“That’s a hell of a deal,” he asserted. “You get a

PHILIP DAVIS KC

SARKIS IZMIRLIAN

JOBETH COLEBY-DAVIS

DR DUANE SANDS

DPM POSITIONS BAHAMAS AS AFRICA’S AMERICAS GATEWAY

THE deputy prime minister says The Bahamas can be the gateway to the Caribbean and Americas region for investment and commerce flows from Africa.

Chester Cooper, minister of tourism, investments and aviation, said “there is a tremendous amount of money to be made, and resources to be had for Africa and the Caribbean” as he addressed the Africa Export-Import Bank’s (Afreximbank) 31st annual meetings (AAM 2024) and the third edition of the AfriCaribbean Trade and Investment Forum (ACTIF).

Speaking on Friday at the Baha Mar Convention Centre, he said there should be “less talk and more

business”, and described AAM 2024 in The Bahamas as the venue for the marriage of Africa and the Caribbean.

“For Africa and the Caribbean, we need to be serious and intentional about joint ventures,” Mr Cooper said. “We need to be serious about trade agreements and truly make the African Continental Free Trade Agreement (AfCFTA) and the PAPSS (Pan African Payments Settlement System) work for this sixth region of Africa, and we need to be serious about sticking together to change the paradigm.

“Here in The Bahamas, we have a booming business in romance tourism. People come here to renew

vows, celebrate engagements, honeymoons, and weddings – and sometimes divorces, too.” Mr Cooper then added that The Bahamas is currently in talks with several African airlines about direct flights to The Bahamas, aimed at expanding tourism, cargo and trade.

He added that there are opportunities in The Bahamas for tourism, investments, construction, financial technology (Fintech), renewable energy and infrastructure.

“We have thousands of students who can use your universities to bring back solutions for the Caribbean and for Africa. And there are thousands of students in Africa who can attend our

universities and schools of hospitality,” Mr Cooper said.

“We must actively pursue how we can use our Caribbean tourism expertise to support Africa in further developing your tourism and hospitality industries. We must actively pursue the sharing of technical knowhow and investments in key areas such as manufacturing and agri-business.”

The deputy prime minister also mentioned that The Bahamas spends more than $1bn annually on importing food from outside the AfroCaribbean region. “The only thing stopping a huge portion of that money from staying here, or going east or south instead of north, is us,” he stressed.

While there are thoughts of direct flights from Africa, Mr Cooper also called for a more commercial solution in travelling throughout the Caribbean. “Respectfully, whilst the leaders of CARICOM for decades have lamented this problem of intra-Caribbean travel, it is time for us to put our heads together and find a commercial solution to this most vexing problem,” said Mr Cooper.

The Bahamas signed a memorandum of understanding (Mou) with Afreximbank for the development of an AfroCaribbean marketplace in Freeport. This is designed to empower Bahamians in the creative industries, and to boost trade between The

Bahamas, the Caribbean and African nations.

“I am very excited to see this vision coming out of the ground in Grand Bahama and we thank you for your partnership,” the deputy prime minister said. “But we want more. We want you to help us with resilience building to combat climate change.

“We want your billionaires to buy second homes and use our trust and investment funds and private banking platforms.... I hope that you will remember this forum in The Bahamas as the place where deals were made.”

Near 50% of Caribbean firms see AI as their top technology

CLOSE to 50 percent of Caribbean companies now see artificial intelligence (AI) as the most critical technology to their future corporate strategy, a major global accounting firm has revealed.

PricewaterhouseCoopers (PwC), in its first-ever Global Jobs AI Barometer, said sectors more exposed to artificial intelligence are experiencing almost five

times (4.8x) higher growth in labour productivity.

The report, which analysed more than half a billion job advertisements from 15 countries, suggests AI could allow many nations to break out of persistent low productivity growth, generating economic development, higher wages and enhanced living standards.

The report finds that for every job posting requiring

AI specialist skills, such as machine learnin in 2012, there are now seven job postings. PwC research also finds that growth in jobs demanding AI skills has outpaced all jobs since 2016, with postings for jobs requiring AI skills growing 3.5 times’ faster than for all jobs.

The findings also highlight economic opportunity for labour forces. Jobs that require AI skills carry up to

a 25 percent average wage premium in some markets.

Skills sought by employers are changing much faster in occupations more exposed to AI, with old skills disappearing - and new skills appearing - in job ads at a 25 percent higher rate than in occupations less exposed to AI. To stay relevant in these occupations, workers will need to demonstrate or acquire new skills.

The findings also reflect that AI-enabled workers are more productive and more valuable, opening the door to rising prosperity for workers and nations. A

Zia Paton, digital solutions leader for PwC in the Caribbean, said: “AI is reshaping the global labour market, promising economic growth, job expansion and the emergence of new industries. However, this shift calls for up-skilling workers and strategic investments in

digital and AI for organisations to thrive in the AI era.

“Our recent Caribbean Digital Readiness Survey found that 45 percent of respondents in the Caribbean now see AI as the most critical technology to their company’s strategy today. Caribbean businesses should continue to keep AI high on the strategic agenda.

“AI provides much more than efficiency gains. It offers fundamentally new ways of creating value, including a nearly five-fold productivity growth in sectors more exposed to AI such as financial services, information technology and professional services.”

Across the five major labour markets for which wage data is available - the US, UK, Canada, Australia and Singapore - jobs that require AI specialist skills carry a significant wage premium that is up to 25 percent on average in the US.

Across industries, this can range from 18 percent for accountants, 33 percent for financial analysts and 43 percent for sales and marketing managers to 49 percent for lawyers. While the wage premium differs by market, overwhelmingly this is higher in all markets analysed.

The PwC study found that knowledge work sectors are seeing the most rapid growth in the share of roles requiring AI skills. This includes financial services (2.8 times’ higher share of jobs requiring AI skills versus other sectors), professional services (three times’ higher) and information and communication (5 times’ higher).

Sixty-nine percent of chief executives expect AI will require new skills from their workforce, rising to 87 percent of chief executives who have already deployed AI, according to PwC’s 27th annual global chief executive survey 2024.

STUDENTS from PACE Bahamas attend the twoday workshop at Cloud Carib’s Center of Excellence to gain valuable technical skills.

Technology provider teams to empower teen mothers

A NASSAU-based technology solutions provider has partnered for the second consecutive year to empower young expectant mothers from The PACE Foundation with essential technology and coding skills.

Cloud Carib, in a statement, said it had partnered with the Blockchain Business School: HAP Organisation to host a two-day workshop held earlier this month at the former’s Centre of Excellence (COE). The event provided as many as 20 expectant mothers with valuable technical skills through Microsoft’s ‘Everyone Can Code’ programme, led by a dedicated Microsoft instructor.

Global technology solutions provider, Global Sun Integration, donated laptops that the young mothers have kept to further empower them in a potential digital career.

“We are incredibly grateful to Cloud Carib for providing a space for learning and growth for the students,”

said Rhonda Eldridge, president of HAP.

“This workshop not only equips them with valuable technical skills but also instills confidence and opens their minds to new career paths, which aligns perfectly with both HAP and PACE’s mission.”

The PACE School offers a specialised programme for teenage mothers who were unable to complete their education due to pregnancy, and provides a curriculum focused on developing their numeracy, literacy, technological, social and parenting skills.

Cloud Carib’s centre of excellence provides a space designed to bridge the digital divide, and equip both businesses and non-profit organisations with the tools and knowledge needed to succeed in the digital age.

The centre, which boasts more than 4,000 square feet of space, offers access to technology resources, educational programmes and professional development opportunities, and places a particular emphasis on

supporting youth organisations with a focus on technology initiatives.

“At Cloud Carib, we believe everyone deserves the opportunity to participate in the digital revolution,” said Olivia Dorsett, Cloud Carib’s director of marketing and communications. “We’re thrilled to partner with PACE and the HAP Organisation, and provide a space for these young Bahamian mothers with the foundational coding skills that can unlock future possibilities.

“Developing a diverse talent pool within the tech industry is crucial, and this workshop is a step towards achieving that goal.” The workshop curriculum went beyond basic coding, also introducing the participants to AI through Microsoft Copilot, a tool that can assist with coding tasks.

Cloud Carib and HAP Organisation remain committed to supporting youth initiatives and providing the resources necessary to ensure a more inclusive and tech-savvy future.

BTC TARGETS SEPTEMBER TURN-OFF FOR GB’S LEGACY COPPER NETWORK

THE Bahamas Telecommunications Company (BTC) says the Grand Bahama roll-out of its new fibre network is now 90 percent complete as it aims to turn-off the legacy copper infrastructure by mid-September.

The carrier, in a statement, said it has decommissioned its legacy copper network in ten areas in Grand Bahama thus far. These include Glenburn, Hawksbill, Sunrise Sub, Wellington Heights, Chesapeake, Heritage, Hudson Estates, Yorkshire, Regency Park and Pinta Avenue.

BTC added that the next decommissioning exercise is set for June 17, and will include the areas of Midshipman Road, Blockade Drive and Fortune Cay. After this, a total of 17 areas will remain, and the company is targeting midSeptember to have the entire island decommissioned to fully place its focus on fibre-to-the-home.

“We are thrilled with the progress of our fibre roll-out and the growing number of customers connecting and enjoying our services as the leading fibre provider in The Bahamas,” said Dominic Petty, BTC’s executive senior manager for the Northern Bahamas.

“We are excited about the prospect of achieving 100% fibre coverage in Grand Bahama soon and, shortly thereafter, fully decommissioning our copper infrastructure on the island. Everything has been running smoothly, and we plan to accelerate our customer

connections across the island in the coming days.”

BTC is urging Grand Bahama residents in areas scheduled for decommissioning to upgrade as soon as possible to fibre. The company said it has teams in place to canvass these communities that are being upgraded, but is also urging customers to avoid disruptions in service by visiting any retail store or contacting the company by phone or WhatsApp message at CALL-BTC (225-5282) to schedule an appointment to be upgraded.

During these upgrades, BTC will provide a complimentary battery pack for continued landline and Internet connectivity in the event of a power outage. It added that Grand Bahama is now more than 90 percent covered by BTC’s fibre-tothe-home technology.

The carrier is now in the process of accessing lines that run behind hard-toaccess properties as well as completing the necessary underground work to install fibre.

SHELL’S BAHAMAS OFFICE HOSTS RECEPTION FOR AFREXIM BANK

SHELL’S Bahamasbased regional trading office hosted a reception to celebrate the first-ever hosting of the Africa Export-Import Bank (Afrexim Bank) conference in this nation.

Executives from Shell Western Supply & Trading were present along with leaders from Afrexim Bank, the Bahamas Financial Services Board (BFSB), Association of International Banks and Trust Companies (AIBT), PricewaterhouseCoopers (PwC), KPMG and Graham Thompson & Company.

Shell West’s general manager, Rodrigo Teixeira de Abreu, said: “This year’s conference represents a timely opportunity for us to engage in meaningful discussions, and forge partnerships that will shape the future of trade and investment in Africa, the Caribbean and the world at large”.

He cited Shell West and Afrexim’s strong ties as an example of how two organisations can have a shared commitment to fostering economic growth and prosperity.

Jurriaan Jongsma, director and senior legal counsel for Shell West, emphasised the importance of global partnerships in creating a unified vision and shared success. Helen Brume, Afrexim’s director for projects and asset-based finance, highlighted the significance of Afrexim’s relationship with Shell West to increase trade and create shared prosperity.

Shell Western Supply and Trading has been located in The Bahamas since 2018. Part of Shell’s global trading arm, it manages all crude trading activities related to West Africa and Latin America. Shell West is licensed by The Securities Commission as a financial corporate service provider to trade commodities and currently employs 50 persons.

Ex-ArawakX principals say ‘no further steps’ over BOB battle

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE former directors of The Bahamas’ first-ever crowd-funding platform have pledged “to take no further steps” to advance their legal battle with Bank of The Bahamas under the terms of its full winding-up.

D’Arcy Rahming, ArawakX’s principal, and his son, D’Arcy junior, have agreed as part of the May 22, 2024, order that appoints Ed Rahming, the Intelisys (Bahamas) principal, and Cheryl Simms, the Kikivarakis and Company accountant, as full liquidators that they will do nothing regarding the platform’s claim against the BISX-listed bank without the latter duo’s permission.

This ensures full control of the Bank of The Bahamas litigation rests with the liquidators, as is required by insolvency law, but represents a variation to November 2023’s joint provisional liquidation order. That allowed the Rahmings to “maintain conduct and control” of the court battle with the bank on the understanding that all legal costs would be covered by themselves personally, not the company or its creditors.

Now, the full liquidation order stipulates: “The (former directors) of the company hereby undertake to take no further steps in the conduct of Supreme Court action 1,649 of 2022 between the company and Bank of the Bahamas without the consent of the joint official liquidators.

“The joint official liquidators shall review the matter and consider whether it is a viable action and, where appropriate, the joint official liquidators shall apply to the court for directions in the further conduct of the said action and the right of the (former) directors to maintain control and conduct of the said action.”

Again, any costs that arise would have to be covered by the Rahmings personally.

Tribune Business understands that it took more than two months following the March 2024 court hearing, which confirmed ArawakX would be woundup, to get the Order signed, perfected and filed due to negotiations with the Rahmings on the language relating to the Bank of The Bahamas dispute.

The legal dispute concerns when Bank of The Bahamas froze all ArawakX’s bank accounts on November 1, 2022, amid

confusion as to whether it was the crowd-funding platform’s two principals, the Rahmings, or their largest investor, James Campbell, who had authority and control over them.

In its statement of claim against Bank of The Bahamas, the crowdfunding platform and its parent, MDollaz, said it first learned of a problem when Tianna Gomez, a client relationship officer, informed ArawakX’s vicepresident of clearing, Ken Donathan, on October 24, 2022, that it was unable to process a $48,900 payment to Foot and Ankle International.

This represented a payment of investor monies to Dr Daniel Johnson’s business, Footcare RX, which had been raised from a crowd-funding issue via ArawakX. The latter alleged that it was then informed by Yvette Johnson, Bank of The Bahamas’ manager of premier and private banking, that its accounts were frozen following a meeting with Mr Campbell.

“The bank was visited yesterday (October 20, 2022) by Mr James Campbell, who provided an amendment to the Memorandum and Articles of

CHINESE PREMIER AND AUSTRALIAN PRIME MINISTER MEET AT AUSTRALIA'S PARLIAMENT HOUSE

By ROD McGUIRK Associated Press

CHINESE Premier Li

Qiang, Australian Prime Minister Anthony Albanese and senior ministers of both administrations met at Parliament House on Monday to discuss thorny issues, including lingering trade barriers, conflict between their militaries in international waters and China's desire to invest in critical minerals.

Li, China's most senior leader after President Xu Jinping, arrived in the South Australian state capital of Adelaide on Saturday and the national capital of Canberra late Sunday in the first visit to the country by a Chinese premier in seven years.

Li planned to underscore China's interest in buying a bigger stake in Australia's critical minerals sector, which is essential to the global transition to renewable energy sources, by visiting a Chinese-controlled lithium processing plant in Western Australia state

Tuesday. Li visited New Zealand before Australia and is scheduled to stop in Malaysia before returning to China. Bilateral relations have improved markedly since Albanese's center-left Labor Party was elected in 2022 following nine years of

Association which introduced new articles specific to overriding provisions for the captioned company,” Ms Johnson allegedly wrote.

“In light of the above, effective immediately all accounts have been placed on hold and actively ceased as a result of the untenable position the bank is presented with.”

Other legal documents allege that a new Memorandum and Articles of Association for ArawakX were drawn up to facilitate Mr Campbell, as its largest investor, becoming a director with an option to convert his $1.3m into a 22 percent equity stake. However, the Rahmings have alleged these were never ratified, and they subsequently moved to unwind them amid a battle for control of the crowd-funding platform with the former Colina Insurance Company president.

ArawakX was seeking damages from Bank of The Bahamas for breach of contract, injury to its credit and reputation and alleged “unlawful interference” with its business relationships, plus aggravated damages. No dollar figure, though, was specified in the statement of claim.

conservative government in Australia. Most of the official and unofficial trade barriers Beijing introduced in 2020 on coal, cotton, wine, barley and wood have been lifted since Albanese was elected. Agriculture Minister Murray Watt said before the leaders' meeting Monday that he would raise the issue of China's ban on Australian rock lobsters and exports from two beef processing plants.

DOMINIC PETTY, BTC’s executive senior manager for the Northern Bahamas.

Alcohol smuggling claims ‘baseless and groundless’

Rolle was reassigned to Customs’ tariff matters section on February 20, 2023, within ten days of submitting his findings to Mr Munroe on the 10th of that month. Mr Rolle also sent his report to Michael Halkitis, minister of economic affairs, and Simon Wilson, the Ministry of Finance’s financial secretary, who received their copies on the same day as the Prime Minister.

The report was also sent to Terrance Bastian, the outgoing auditor general, on February 23, 2023three days after Mr Rolle reassigned. And Tribune Business can also reveal that the Customs investigator is now being threatened with disciplinary action, via the Ministry of Labour and the Public Service, for allegedly defaming Mr Munroe and other senior officials via the allegations made in the report.

However, Raven Rolle, the Callender’s & Co attorney who is representing Mr Rolle, slammed the claims and proposed actions against the latter as “baseless, reckless, irresponsible and unsupported by your own evidence”.

She argued in an October 10, 2023, letter to Janice Miller, the Ministry of Finance’s permanent secretary, that her client has an “absolute” defence to any defamation allegations because the probe was conducted “in good faith” and in accordance with established investigative procedures.

“Mr Rolle denies the allegations made against him and asserts that there is no lawful basis for disciplinary

action to be brought against him as he conducted the investigation in good faith and followed the established protocols and procedure,” Ms Rolle wrote of her client.

Mr Munroe, though, told Tribune Business that the $567,430 revenue loss cited by Dr Minnis last week was incorrect because the smuggling was confined to just one of the 16 containers imported in Mr McKenzie’s name. He added that all due fines and duty owed on the imported alcohol and other products - found in a trailer supposedly containing just ten plywood packageswere subsequently paid.

The comptroller also vehemently denied the findings in Mr Rolle’s report that he “instructed” Customs officials to release the “hold” placed on two more of Mr McKenzie’s containers, located in late January 2023 at the Arawak Cay port, after the probe into the alcohol findings began. Mr Munroe, asserting that he never spoke to either of the two Customs officers cited in Mr Rolle’s report, said no “hold” was ever placed on the two containers. He added that it was himself who discovered their presence at Arawak Cay, after the probe into the earlier findings began, and requested that they be moved to the agency’s head office on Thompson Boulevard on Tuesday, January 31, 2023.

He argued that the “hold” was only imposed two days after he ordered the containers be moved, as part of the probe and to prevent them being tampered with, describing any claims that he interfered as “absolute nonsense”. Mr Munroe

added: “Why would I give an instruction to release the container if it was never on hold? Mr Munroe knew nothing about the containers until Friday after 6pm.”

Mr Rolle, in his report, said he was informed by chief Customs revenue officer, Hosea Lewis, a member of the agency’s risk management section, that the two containers at Arawak Cay had “a hold placed on them to control the container release and movement”.

However, officer Lewis said he was informed on Friday afternoon, January 27, by Nekita Wood from Customs’ examination section, that Mr Munroe “had made inquiry about the hold on the containers consigned to Mr Sean McKenzie and instructed that officer Lewis contact him right away.

“Officer Lewis made the call to acting comptroller of Customs, Mr Munroe, who then instructed officer Lewis to release the hold on the containers and advised same that the Revenue Compliance and Enforcement Unit would be responsible for the inspection and examination in those containers consigned to Mr Sean McKenzie,” Mr Rolle wrote.

“Officer Lewis stated that he complied with acting comptroller of Customs, Ralph Munroe’s instructions and released the hold on the containers.” Mr Munroe, though, besides pointing to discrepancies in the times cited, told this newspaper he never spoke to officers Lewis or Woods.

“Those containers were not on hold,” he blasted. “It’s foolishness. It’s absolute madness what they are talking. I never had a

conversation with them.”

The controversy over the “hold” also began several hours before the alarm over alleged smuggling was sounded.

Mr Munroe said he dispatched a team including Mr Rolle to the Central Storage Facility, located on Carmichael Road east, at around 6pm on Friday, January 27, 2023, after being alerted by his officers that a 40-foot container was opened - and being unloaded and worked - without a Customs officer being present.

Assistant Customs comptroller, Lenita Pratt, in her witness statement that when she arrived at the container she encountered three police officers from the anti-gang firearms unit as well as Venard Watson, who admitted to being connected to the shipment. The police wanted to search the container for suspected firearms, and the Customs seal was broken.

The container’s waybill showed it as containing ten packs of plywood, but Ms Pratt said: “The container’s doors were open. Items out of the container were some perfumery, body lotions, Gatorade drinks on a pallet and one vehicle hood.

“I witnessed grade one Customs officer, Kalif Poitier, climb up on to the container. He stated that he counted what appeared to be 18 pallets of Budweiser. I saw one pallet of what appeared to be Busch beer and one pallet of miscellaneous items at the entrance of the container.” Mr Poitier, in his statement, said Mr Watson was unable to produce any documents showing these goods were properly cleared.

Ms Pratt said that, after informing Mr Munroe of the discovery, the comptroller ordered that the container be taken that night to Customs’ compound at Thompson Boulevard. This was confirmed to Tribune Business by Mr Munroe, who said “posted two officers on watch until Monday morning to make sure no one stole from the container”. The other two containers were also brought to the same location.

Surveillance footage from the Central Storage Facility, taken at 5.30pm on Friday, January 27, shows four persons offloading and opening the container in question. The container is just out of camera shot, but a forklift is being used to move pallets, and what appears to be an auto bumper for a vehicle is placed in a dark blue car that is parked nearby.

The same vehicle was also present at the Central Storage Facility on January 6, 2023, and January 26, 2023, when other containers in Mr McKenzie’s name arrived. The vehicle appears to be facilitating

the containers entry, almost escorting them, and reverses the entire length of the building as if it is directing the truckers where to drop them off at the back of the property out of sight from the road. Mr Rolle, in his report, said Bowes Customs Brokerage and Freight handled the container’s clearance into The Bahamas, declaring ten bundles of plywood valued at a collective $3,340 and paying duty worth $782.35 via Customs’ Electronic Single Window. Bowes Customs’ principals, Dustin and Mia Bowe, admitted in a February 3, 2023, that they had never met, spoken to or dealt directly with Mr McKenzie, which Mr Rolle argued “should have raised a red flag”. Instead, all the necessary paperwork was provided by a third-party, Damaris Cooper-Watson, via What’s App.

“After some time and given the immense confusion surrounding the situation, Dustin then reached out to Mrs CooperWatson to get some clarity on her involvement and to explain the severity of what was going on,” the Bowes’ said. “She again stated she didn’t know anything and would call back.”

However, they never heard from her, but were instead contacted by an Aaron/Erin Miller from a US cell number. “Mr Miller proceeded to say he was calling on behalf of Mrs Cooper-Watson, and was just letting us know if Customs asks us any questions we should leave her name out of it and direct Bahamas Customs to him,” the Bowes said, denying that they had any role in or knowledge of what was happening.

Mr Rolle said Customs’ electronic single window revealed that some 16 containers had been imported into The Bahamas in Mr McKenzie’s name over a five-month period between September 2022 and January 2023. Most were described as containing building supplies, concrete mix, shingles and plywood, although foodstuffs such as capri sun and tuna were also listed on the manifest.

Yet only one of the 16 consignments were shown “as being fully reconciled and cleared” by Customs as ‘examined with results then released’. “However, 15 consignments/imports approved for direct delivery were not reconciled or cleared from the Bahamas Electronic Single Window were found,” Mr Rolle wrote.

Customs’ examination section at Arawak Cay said their “control sheet” showed no on-site inspections, where containers are opened in the presence of officers at an importer’s premises, of Mr McKenzie’s goods. However, in calling a cell number submitted for a previous C-1 attendance request, the person who answered named a specific officer who “assigns personnel to conduct inspections and examinations of his containers”.

Mr Rolle’s report said Wayne Wilkinson, who identified himself as Mr McKenzie’s partner, appeared at Customs House on February 2, 2023, as he was “now making inquiry on the way forward in gaining resolution to this unfortunate incident”. He added that “he had all the necessary invoices pertaining to the goods and merchandise inside the container” and “needed his goods”. Unable to produce documents linking himself to Mr McKenzie or the container, Mr Wilkinson came back eight days later with Vernard Watson, who was present when Customs officers initially investigated the container at the Central Storage Facility, and attorney Devard Francis.

Mr Munroe, though, said he was unable to determine

the basis on which Mr Rolle had concluded himself, “senior officers and persons from the Ministry of Finance” were involved in illicit activities. Pointing out that there was “not a stain” on his reputation during a 44-year Customs career serving five prime ministers, he blasted: “He [Mr Rolle] came up baseless, groundless nonsense.

“An investigation had to be done at the level of the police. I went there. The police did their investigation. I was questioned by them and assisted the police.” Tribune Business documents show the investigation requested by the Prime Minister into Mr Rolle’s findings was carried out by the police’s complaints and corruption branch.

Asked about the investigation’s outcome, Mr Munroe said: “What are you investigating? If there’s nothing, there’s going to be nothing. The investigation was completed last year, shortly after it began. The [original Customs] investigation was so egregious that persons have been called to account for their actions.

“Of the three containers, only one had beer; only one. The fines were ordered, they paid the fines, paid the duty, and the beers were sold. There was nothing to incriminate anybody. There wasn’t anything. I was an open book. Check with the police. Integrity is my name. I don’t know Sean McKenzie from a can of paint. I didn’t know he died until afterwards. This whole thing was a bunch of foolishness.”

However, Mr Rolle wrote in his report: “The mandate of the Bahamas Customs Department is clear: ‘To collect and to protect’. However, from the evidence and statements compiled in this report, it appears that senior members of this organisation may have lost their way and are facilitating individuals who are clearly engaged in illicit activities.

“On viewing the full footage of the evening of December 29 2022, this video clearly depicted how co-ordinated and disturbing this one out of 13 containers consigned to Sean McKenzie was orchestrated. The countless amount of vehicles and individuals viewed to and from this container was again very disturbing.

“One can only imagine the characters associated with this illicit behaviour especially during a time when so many illicit firearms are entering our shores. To some, the smuggling of beers and tobacco products may be their merchandise of choice, but to a more seasoned criminal this would be the ideal opportunity to smuggle ammunition and firearms simply because the opportunity exists and the gates are wide open.”

Calling himself for a police probe, “due to the serious nature of what is documented in this report and the individuals that appear to have some involvement being that of senior executives”, Mr Rolle added: “This should have been one of those circumstances in which a wall should have been placed, even if only temporarily, between management, the investigations team and reporting officers at the various stations.

“This is a general rule in organisations. An officer should never be placed in situations when executing their daily duties of co-operating and speaking truth be in fear of retaliation. There are certain behaviours that should simply not be tolerated and outright discouraged by senior management.”

On top once again

By Chris Illing CCO @ ActivTrades Corp

APPLE once again became the world’s most valuable company on Wednesday, pushing Microsoft out of top spot. The plans around artificial intelligence (AI) that the company announced are apparently having an effect on investors. In their eyes, the iPhone manufacturer is ahead in the race for supremacy in the new technology.

When Apple and OpenAI announced their partnership last week, it caused a lot of turmoil in

the AI industry. “Siri”, the iPhone provider’s digital assistant, will in future rely on the help of ChatGPT for certain tasks.

Apple does not pay OpenAI a cent for the partnership, as Bloomberg reported on Thursday. Instead, Apple believes that spreading OpenAI’s brand and technology to hundreds of millions of its devices is of equal or greater value than monetary payments. OpenAI will initially come away empty-handed financially from the partnership. The price jump could be because many observers have concluded it does not matter at all that Apple does not have the best AI model. Rather, Apple’s position in the age of AI depends on the fact that the

CCA: Baha Mar only $68m

As a result, recovering the $830m “is from the wrong time period - it’s five years out-of-date.

And they also pointed out that the New York State Appeals Court, in an April 25, 2024, ruling determined that Mr Izmirlian and BML Properties “may not pursue lost profit damages” because this is barred by the investors’ agreement both sides struck over the project.

But, in raising these legal points, CCA is also asserting that Baha Mar’s construction completion only cost $68m more than the $1.998bn said to have been spent at March 9, 2015, just prior to the project’s missed opening target. It was repeatedly reported that completing the resort campus, in the aftermath of Mr Izmirlian’s removal, would cost a further $700m and $800m.

“On June 29, 2015, in the midst of negotiations for more financing and without contractually-required notice to and consent by China State Construction and

Engineering Corporation (Bahamas), BML Properties caused Baha Mar and other affiliated entities to file for Chapter 11 bankruptcy in the District of Delaware,” CCA recalled.

“The Delaware Bankruptcy Court transferred the proceedings to The Bahamas as a matter of international comity. In 2016, following extensive negotiations, the appointment of a receiver and close court monitoring, the Bahamian Supreme Court eventually ordered Baha Mar’s dissolution.

“With the approval, and under the supervision of the Bahamian court, CCA Bahamas was retained to complete construction of the project, and did so at only $68m over the initial $1.98bn budget for the project despite undertaking significant additional work to remediate hurricane damage [likely Hurricane Matthew] and repay Baha Mar’s debts.”

China State Construction and Engineering Corporation (Bahamas) was the CCA affiliate that partnered with Mr Izmirlian as an investor in Baha Mar,

holding $150m of non-voting preference shares. CCA is arguing that the value of Mr Izmirlian’s lost $830m in equity has no connection to his $2.25bn fraud and breach of contract claim as it was made years before the project’s failure in 2010.

“The value of the partial opening by March 27, 2015, a date set forth in the November 2014 meeting minutes, has no connection to the lost value of plaintiff’s 2010 investment in Baha Mar,” CCA and its attorneys are alleging.

“CCA Bahamas ultimately completed construction only $68m (or approximately 3 percent) over the initial budget. This amount, which was not paid by BML Properties, included additional remediation work for damage from a major hurricane and nearly $200m paid to sub-contractors and vendors directly engaged by Baha Mar.” That, though, still seemingly leaves several hundred million unaccounted for.

CCA appears to be basing its calculations on a March 9, 2015, report from Rider Levett Bucknall, the

company has presented a convincing strategy for how it can become the platform through which users can most easily interact with AI.

Apple shares rose to almost $220 per share, giving the company a market valuation of $3.3trn. Microsoft’s market capitalisation was most recently at $3.26trn, falling behind Apple for the first time in five months. Last week, Microsoft shares were priced around $440 per share in the generally rising market on the US stock exchange.

In the ranking of stock market values, Nvidia is

Baha Mar project monitors for Citicorp International, which was acting as the conduit for the financing provided by the China Export-Import Bank. At that date, some $1.998bn in construction-related expenses had been signedoff by all parties.

The Chinese contractor’s legal filings asserted that the equity contribution made by Mr Izmirlian and his family consisted of $745m “in ‘land, other tangible and intangible assets, plus $85m in cash, for a total $845m when they parties closed their deal on January 31, 2011. That $830m was subsequently increased by a further $15m injected to cover Baha Mar’s “equity shortfall” for a total $845m.

“Plaintiff’s damages expert witness, David Bones, submitted a 31-page expert report, which included an entirely conclusory, single-page assertion that BML Properties’ “outof-pocket” damages are $845m,” CCA and its attorneys alleged.

“Mr Bones’ statement was based exclusively on the deemed value of BML Properties’ $830m

NOTICE INTERNATIONAL BUSINESS COMPANIES ACT, 2000 CONNECT-TWO LTD. (IN VOLUNTARY LIQUIDATION)

NOTICE IS HEREBY GIVEN that in accordance with section 138(4) of the International Business Companies Act, 2000, as amended, CONNECTTWO LTD. is in dissolution.

The dissolution of the said Company commenced on June 12, 2024 when the Articles of Dissolution were submitted to and registered with the Registrar General in Nassau, The Bahamas.

The sole liquidator of the said Company is Kim D Thompson of Equity Trust House, Caves Village, West Bay Street, P O Box N 10697, Nassau, Bahamas.

Kim D Thompson Sole Liquidator

in third place after recent price gains with a market value of $3.1trn. On Friday, Nvidia shares rose to a new record high with an increase of 1.5 percent to $131 per share. Nvidia dominates around 80 percent of the global market for special processors for artificial intelligence (AI), which customers are clamouring for.

Apple had previously announced that the iPhone and other Apple devices would get many new AI functions starting this fall. The software should be tailored to the individual needs of individual users and, at the same time, offer

contribution to Baha Mar in 2010, plus its $15m additional equity contribution to Baha Mar in 2015. With the exception of his onepage conclusion, Mr Bones devoted his entire report to a purported estimation of BML Properties’ lost profits damages.

“But, on April 25, 2024, the appellate division, issued an opinion holding that BML Properties may not pursue lost profits damages, including because the investor agreement is explicit in barring consequential damages. As a result, plaintiff may not present evidence or argument regarding lost profits damages at trial.”

CCA also argued that the “alleged failure” by the China State Construction and Engineering Corporation (Bahamas) Board representative to act in

the greatest possible data protection. The AI functions have been deeply embedded in the operating systems for iPhone, Mac and iPad, emphasised software boss Craig Federighi. This would give Apple’s AI models access to the users’ necessary information in order to be useful to them. Analysts expects the new functions will stimulate demand and enable more direct marketing of artificial intelligence (AI) in the future, as well as a surge in demand for the new iPhone 16 with the iOS 18 operating system in the fall. The savvy investor will keep a close eye on the tech giant.

Baha Mar’s best interest in the four months leading up to the project’s missed opening “did not directly or immediately trigger the loss of equity value that plaintiff seeks to characterise as ‘out-of-pocket’ damages.

“Rather, it was the decision in 2016 of the entirely neutral Bahamian Supreme Court to wind up Baha Mar, thereby extinguishing both BML Properties and China State Construction and Engineering Corporation (Bahamas) equity, that ultimately resulted in the claimed losses, which are quintessentially consequential....

“Accordingly, at trial, plaintiff should not be permitted to present evidence or argument characterizing the $830m it exchanged for equity in Baha Mar in 2010, five years before the alleged breach it claims caused the loss of that equity’s value, as the measure of its damages.”

Minister: Gov’ts LNG SPV will lower costs

been selected as New Providence’s generation partner, but also Bahamas Power & Light (BPL) as well as independent power producers (IPPs) based in the Family Islands. Sourcing LNG for all these customers via one entity, the minister said, will leverage economies of scale for better fuel prices.

“The structure actually does quite the opposite; it is to control the cost,” Mrs Coleby-Davis said, when asked why the Government plans to take an active role in the electricity fuel supply chain by creating another entity - its SPV - that seemingly will add another layer of cost in the supply chain.

“Although The Bahamas Utility Company (BUC) will consume LNG, Bahamas Power and Light (BPL) will also convert engines in its generation fleet to LNG. In addition, our Family Island IPPs will also use LNG and purchase from the 100 percent SPV,” the minister added.

“By consolidating the purchase of LNG through a single entity, we leverage economies of scale, which will result in a more favourable pricing structure. Bulk purchasing in this sector yields significant cost savings compared to smaller, individual purchases.

“In summary, the Government’s decision to use a 100 percent-owned SPV for LNG purchases from Shell North America is driven by a comprehensive strategy to achieve cost savings, ensure energy security and streamline operations. This approach will ultimately benefit all, contributing to a more stable, affordable and efficient energy sector for The Bahamas.”

Several observers have queried why the Government is inserting itself into the LNG supply chain after Mrs Coleby-Davis, during her 2024-2025 Budget debate contribution, said:

“The bulk purchase of LNG will be sourced from Shell North America, specifically, Shell North America LNG.

“The Government will set up a SPV 100 percent owned by the Government to purchase the LNG directly from Shell North America and the SPV will then sell to the independent power producers. Negotiations with Shell North America are ongoing, and we are close to concluding same. These negotiations are merely a restructuring and renegotiating of a tentative agreement we met in place from the former administration.

“The Ministry of Finance has hired the large consulting firm, McKinsey and Company, to advise the

Government and BPL to ensure we get the best possible price on our LNG contracts with Shell North America and our various power purchase agreements with independent power producers.”

Few would disagree with the notion that The Bahamas has needed fundamental, wide-reaching energy reform for two decades with BPL central to any strategy. However, the details announced to-date have in many instances raised more questions than answers, with decisions such as the “single source” bidding for both the New Providence generation and transmission and distribution coming under fire.

Michael Pintard, the Opposition’s leader, last week argued that it was impossible to determine if the Bahamian people and businesses are getting the best possible deal and energy costs because these key awards were not put out to competitive bidding where rival offers were entertained.

The Marco City MP also argued that the proposed ownership structure for Bahamas Grid Company, the entity that is gaining a minimum 25-year contract to own, transform and upgrade BPL’s New Providence transmission and distribution network,

should be “reversed” so that the Government is the majority - not the minority - shareholder based on the value of its equity contribution compared to the private sector.

Matt Aubry, the Organisation for Responsible Governance’s (ORG) executive director, reiterated to Tribune Business that greater transparency and public consultation in advance over reforms such as those planned for the Bahamian energy sector are the only way to secure “greater public buy-in” and prevent them from becoming ensnared in a political controversy.

“From ORG’s perspective, this current situation highlights the opportunities that can come from transparency and meaningful consultation in governance. Addressing complex, longstanding issues, like BPL or the National Insurance Board (NIB) or the sustainability of some of the other SOEs (state-owned enterprises) is critical for our long-term social and economic growth as a nation,” Mr Aubry said.

“The current government does need to be recognised for bringing movement on some of these issues. However, reform of systems like these that have a day-to-day effect in the lives of Bahamians will be

most successful if the Government of the day can facilitate a proactive public understanding of the process of decision-making, a clear understanding of the implications of the policies which can foster greater public buy-in of the solutions.

“Launching a programme or law, and then trying to sell it to the population after the fact, limits the opportunity for the critical two-way dialogue that can generate many positive outcomes. Transparency and consultation build trust in the developed solutions, lead to increased participation compliance by the public in the form of paying taxes and formalising businesses, and result in development and policy that is more inclusive and sustainable.

“Conversely, the lack of these can breed the public scepticism we are currently observing that can slow long-term progress when these issues and solutions become absorbed into the ongoing and increasing partisan political battle,” Mr Aubry continued.

“Instead of critically evaluating the merit of solutions offered by the Government and the important questions raised by the Opposition,

citizens and private sector can be relegated to sideline observers of the back and forth rhetoric. Research on governance shows this can reduce local and external investor confidence and reinforce narratives that point to patronage and corruption, which can undermine the intended benefits of the posed policy solutions.

“As the reform of these issues will most likely require significant investment of public funding, adjustment periods or negative impacts for some sector of the public, it is even more important to get the input from those most affected by these decisions in the formative stages of decision-making,” he added.

“The current situation further reinforces ORG’s call to fund and prioritise Freedom of Information and the Ombudsman Acts in this Budget; to bring the Public Procurement Act into full effect particularly with state owned enterprises, and to reform the Public Disclosures Act. These mechanisms of transparency and accountability are important tools for both the Government and the citizenry to gain input, build trust and work together for national development.”

FNM chair says $30m for BPL’s grid ‘national steal’

whole national energy grid for $30m. That’s a hell of a deal, hell of a deal - a majority interest in the national electricity grid for $30m. When you talk about a bargain, that’s quite a bargain. You also get to set the terms of the preference shares, those common shares. You’re going to be selecting the Board members.”

Branding the Government’s energy reform plans as “Bluewater 2.0”, a reference to the first Christie administration’s failed effort to privatise the Bahamas Telecommunications Company (BTC) towards the end of its first term in office, Dr Sands added: “It’s fascinating that with such a critical transaction for the country they would deem it reasonable to take this approach....

“It’s an unfortunate scenario that they are trying to justify the transaction as somehow reasonable, as somehow necessary in the fashion that has been chosen. The more they explain it, it’s a national steal. I think that we should all protest nationally at the concept they

are demonstrating, allied to nebulous language, for what is a single preferred vendor or contractor.”

Much of the concerns and criticisms have focused on the Government’s admission that “single source”, rather than competitive, bidding was used to select Bahamas Utility Company, the fully-owned subsidiary of BISX-listed FOCOL Holdings, as the New Providence generator with responsibility to construct a new 177 Mega Watt (MW) LNG fuelled power plant at Blue Hills by 2026.

Similar procurement methods appear to have resulted in the Bahamas Grid Company structure and selection of Island Grid/Pike. Dr Sands said it was impossible, given the absence of competitive bidding that would see multiple offers compete to be selected on the same terms, to know if Bahamians are getting the best possible price and best energy reform deal.

“We can’t tell,” he said. “We have no idea. There’s been no transparency, there’s been no competitive bidding. We don’t know how they arrived at this particular company

and strategic partner. Who knows if someone could have done one-third of that award, half of that award. We have to trust this administration and take them on their word. We don’t have any other bids to compare. “Without competitive bidding we have no idea whether or not the best terms have been chosen, whether or not the best price point has been chosen, whether or not the timeline is most efficient, whether or not the mix of options is up-to-date and best practice. There are so many unknowns.”

Bahamas Grid Company will be managed by Island Grid, a Lyford Cay-based firm whose co-chief executive, Eric Pike, also chairs the North Carolina-based Pike Corporation. That is the entity from whom Island Grid and Bahamas Grid Company will procure the manpower and other resources required to transform New Providence’s energy grid and enable it to meet future demand and deliver more consistent supply.

Tribune Business source, speaking on condition of anonymity, said Bahamas Grid Company is

forecasting that it will generate average annual profits of around $20m during its first five years. And Island Grid’s management fee is around $4.5m per annum.

However, BPL’s New Providence energy grid may not be as valuable as some think. Prime Minister Philip Davis KC has repeatedly said some parts are on “the verge of collapse”, with parts 50 years or more older and dating before The Bahamas gained its independence. Therefore, sections may be obsolete and past their useful life, requiring them to be written-off as having zero value.

The Government will also likely argue that handing majority control of the transmission and distribution network to private investors for a minimum 25 years, with an option to renew for ten, is the only way to mobilise sufficient private sector capital to finance the initial $130m outlay and then some given that neither BPL nor the Public Treasury have the necessary funding required.

Jobeth Coleby-Davis, minister of energy and transport, during her 2024-2025 Budget debate contribution in the House

Italian Premier Meloni describes Putin’s cease-fire offer for Ukraine as ‘propaganda’

By ELENA BECATOROS and PAOLO

SANTALUCIA Associated Press

ITALIAN Premier Giorgia Meloni on Saturday dismissed a cease-fire offer for Ukraine by Russian President Vladimir Putin as "propaganda," as she wrapped up a Group of Seven summit that saw a deal reached for a $50 billion loan to Ukraine.

The loan will be provided by the U.S., U.K., Canada and possibly Japan, Meloni said. The frozen Russian assets to be used

as collateral are mainly in Europe, "so Europe is already contributing by identifying the guarantee mechanism," she added. The loan agreement was reached at the opening Thursday of the two-day annual meeting of leaders from the G7 countries of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States in southern Italy's Puglia region. Asked about Putin's cease-fire proposal, Meloni said it "seems to me more like a propaganda move than a real one."

The Russian president said Friday he would "immediately" order a cease-fire in Ukraine and start negotiations if Kyiv begins withdrawing troops from the four regions Moscow annexed in 2022 and renounces plans to join NATO.

"If President Putin's proposal is: We are willing to have a peace negotiation if Ukraine recognizes the invasion of Ukraine and gives up the occupied parts ... doesn't seem particularly effective to me as a proposal," Meloni said.

of Assembly, said Island Grid/Pike were chosen as the grid partner because of the latter’s ability “to secure long lead items within six to nine months that would traditionally take up to two years” and finance these by putting up $25m in cash immediately to ensure they arrive before year-end 2024.

“Island Grid has committed to complete most of the initial $130m upgrade by the end of June 2025,” the minister added. “BPL and the Government have entered a joint venture partnership with Island Grid Solutions where a special purpose vehicle (SPV), Bahamas Grid Company, has been created for the purpose of facilitating the joint venture partnership.

“BPL will contribute the book value of its New Providence transmission and distribution assets, valued at $100m in exchange for 40 percent of the shares in the SPV and Island Grid as the transmission and distribution manager will raise and contribute through private investors $130m to the SPV in exchange for 60 percent of shares.

“It is anticipated that 85 to 90 percent of the SPV will be owned by Bahamian

not condemned Israel over the civilian deaths resulting from its offensives in Gaza.

Ukrainian President Volodymyr Zelenskyy, who was one of several world leaders who attended the G7 as a guest, has rejected what he called an ultimatum by Putin to surrender more territory. Switzerland was hosting a peace conference for Ukraine Saturday, although with Russia staying away, it was doubtful whether any major breakthroughs could be reached.

During the news conference, Meloni was asked about the Israel-Hamas war and why the G7 had

"I think we need to remember who started all this and it wasn't Israel, but someone who killed civilians, women and children," Meloni said, referring to the Oct. 7 attack by Hamas in southern Israel that left around 1,200 people dead and sparked the war. Israel's bombardment and ground attacks in Gaza have killed more than 37,000 Palestinians, according to Palestinian health officials, who don't give the breakdown of civilians and fighters.

"Now we must work for peace, which means dialogue, recognizing Israel's right to be safe, to live in peace, and the right of the

companies and pension funds with BPL owning 40 percent as I stated earlier.” Dr Sands, though, branded the minister’s attempt to justify “single source” bidding on both key contracts as “laughable, really laughable”.

He added: “I read the Chamber of Commerce statement, which said it’s anticipated that, for most businesses in the country, the cost of energy is going to increase. What that says to me is the cost of living in The Bahamas is going to increase since most businesses provide goods and services using energy to the Bahamian public. There are very few companies that have the ability to insulate their prices from the cost of electricity.”

Dr Sands was referring to the new BPL tariff structure, the Equity Rate Adjustment, that is designed to reduce costs for the most vulnerable households and low-energy residential users. However, under the former Minnis administration’s plans, energy costs were also set to rise slightly in the first few years until the full benefits of LNG kicked-in.

Palestinians to have their own state in which to live peacefully," she said. "It is the only way to address this problem, our job is to dialogue with everyone."

However, she said, Israel was falling into a trap in its response to Oct. 7.

"It looks like Israel is jumping into a trap. For the trap of Hamas was to isolate it. It seems it is working," Meloni said, adding that Israel's friends "need to give clear words to Israel, for its safety … and this is exactly what Italy is doing."

The Italian premier also expressed satisfaction that "the G7 spoke for the first time about migratory flows and the fight against human traffickers."

Elon Musk gets 77% approval from shareholders to get back his big, $44.9 billion Tesla pay package

By TOM KRISHER and DAVID HAMILTON AP Business Writers

TESLA shareholders

voted Thursday to restore CEO Elon Musk's record

$44.9 billion pay package that was thrown out by a Delaware judge earlier this year, sending a strong vote of confidence in his leadership of the world's largest electric vehicle maker.

The favorable vote doesn't necessarily mean that Musk will get the all-stock compensation anytime soon. The package is likely to remain tied up in the Delaware Chancery Court and Supreme Court for months as Tesla tries to overturn the Delaware judge's rejection.

Musk has raised doubts about his future with Tesla this year, writing on X, the social media platform he owns, that he wanted a 25% stake in the company in order to stop him from taking artificial intelligence development elsewhere. The higher stake is needed to control the use of AI, he has said.

Tesla also has struggled with falling sales and profit margins as demand for electric vehicles slows worldwide. But at the company's annual meeting Thursday in Austin, Texas, Musk reassured shareholders that he will stick around, telling them he can't sell any stock in the compensation package for five years.

"It's not actually cash, and I can't cut and run, nor would I want to," he said.

The company said late Thursday that shareholders had voted for Musk's compensation plan, which initially was approved by the board and stockholders six years ago.

Tesla last valued the package at $44.9 billion in an April regulatory filing. It was once as much as $56 billion but has declined in value in tandem with Tesla's

stock, which has dropped about 25% so far this year.

Chancellor Kathaleen St. Jude McCormick ruled in January in a shareholder's lawsuit that Musk essentially controlled the Tesla board when it ratified the package in 2018, and that it failed to fully inform shareholders who approved it the same year. Tesla has said it would appeal, but asked shareholders to reapprove the package at Thursday's annual meeting.

A separate vote approved moving the company's legal home to Texas to avoid the courts in Delaware, where Tesla is registered as a corporation.

"Its incredible," a jubilant Musk told the crowd gathered at Tesla's headquarters and large factory in Austin, Texas. "I think we're not just opening a new chapter for Tesla, we're starting a new book."

Musk and Tesla didn't win everything. Shareholders approved measures that trimmed board member terms from three years to one and cut the required vote on shareholder proposals to a simple majority.

Legal experts say the issue of Musk's pay will still be decided in Delaware, largely because Musk's lawyers have assured McCormick they won't try to move the case to Texas.

But they differ on whether the new ratification of the pay package will make it easier for Tesla to get it approved.

Charles Elson, a retired professor and founder of the corporate governance center at the University of Delaware, said he doesn't think the vote will influence McCormick, who issued a decision based on the law.

McCormick's ruling essentially made the 2018 compensation package a gift to Musk, Elson said, and that would need unanimous shareholder approval, an impossible threshold.

How Elon Musk's $44.9B Tesla pay package compares with the most generous plans for other U.S. CEOs

By TOM KRISHER AP Auto Writer

EVEN though the median U.S. CEO pay package last year was nearly 200 times more than a worker in the middle of their company pay scales, Elon Musk's record-setting Tesla compensation dwarfs them by comparison.

Tesla shareholders on Thursday voted overwhelmingly in favor of restoring Musk's 10-year pay plan, valued by the company in April at $44.9 billion. It was worth more early in the year, but Tesla's stock value has fallen about 25% since then.

The all-stock package, approved by the board and shareholders in 2018, rewards Musk for hitting milestones that include raising Tesla's market value, pretax income and revenue. It had been tossed out by a Delaware judge in January who said the process for approving it was

"deeply flawed." The court ruled that Musk controlled the company's board, and shareholders weren't fully informed.

But the company said Musk deserves the pay because he turned Tesla into the top-selling electric vehicle maker in the world, increasing its market value by billions.

Even with the reapproval vote, Musk won't get access to the stock options just yet. Tesla is expected to ask the judge to revisit her decision in light of the vote, and if she doesn't, the company probably will appeal the ruling to Delaware's Supreme Court. The whole process could take months.

No matter the outcome, Musk's package — the largest award to a CEO of a U.S. public company — is far above what's been granted to other chief executives. Here's how the package compares:

The median pay package for an S&P 500 U.S. CEO

last year was $16.3 million, according to data analyzed for The Associated Press by Equilar. If you multiply that by 10 to get $163 million for a decade of work, Musk's earnings still would be 275 times greater.

In her January ruling that struck down the package, Delaware Chancellor Kathaleen St. Jude McCormick wrote that Musk's package, then worth about $56 billion, was 250 times larger than the median peer CEO's pay plan.

The top earner in the AP's survey was Hock Tan, CEO of artificial intelligence company Broadcom Inc. His package, mostly consisting of stock awards, was valued at about $162 million, when given to Tan at the start of fiscal 2023. Thanks to a surging stock price, Broadcom in March valued Tan's pay package, plus older options he hadn't yet cashed in, at $767.7 million. That's an amount easily eclipsed by Musk's potential

Other CEOs at the top of AP's survey are William Lansing of Fair Isaac Corp, ($66.3 million); Tim Cook of Apple Inc. ($63.2 million); Hamid Moghadam of Prologis Inc. ($50.9 million); and Ted Sarandos, co-CEO of Netflix ($49.8 million).

Technically, Musk got no compensation last year because he didn't get any stock options. But he stands to get even richer if his pay package goes through. It's difficult to calculate what Musk's annual pay would have been last year. The company says he got nothing. But if his compensation package makes it through the courts, his pay will be in the billions. According to the company's proxy filing this year, the median annual pay of a non-CEO Tesla employee last year was $45,811.

VEHICLES pass the Tesla Gi-

Thursday, June 13, 2024, in Austin, Texas. Tesla shareholders are charting the future of the electric vehicle company as they wrap up voting whether or not to restore CEO Elon Musk’s massive pay package that was thrown out by

Photo:Eric Gay/AP

STATES BET ON BOOSTING TAXES FOR ONLINE SPORTS

BETTING COMPANIES LIKE DRAFTKINGS, FANDUEL

By DAMIAN J. TROISE AP Business Writer

STATES are looking to increase their take from the $16 billion online sports gambling industry as it expands across the country with big partnerships.

DraftKings, FanDuel and other betting apps are facing a bigger tax hit in Illinois following changes to tax policy this year. New Jersey, Massachusetts and other states have also tried to raise taxes on the industry or plan to.

DraftKings and FanDuel count Major League Baseball and the National Football League among their biggest partnerships.

ESPN owner Walt Disney Co. has also gotten involved in the action with ESPN Bet, which has a partnership with the National Hockey League. Established casino operators like MGM Resorts and Penn Entertainment have also expanded into online sports gambling.

All sports wagering revenue in the U.S. jumped 22% to $3.33 billion in the first quarter of 2024, according to the American Gaming Association. The industry's growth has piqued the interest of state governments.

Illinois this month switched from a flat 15% tax on adjusted gross revenue for online sports betting companies to a new progressive rate ranging from 20% to 40%. The state legalized sports gambling in 2019 and last year it earned just over $1.5 billion in tax revenue from online sports betting operations and casinos. By comparison, the state lottery, which started operating in 1974, had revenue of about $2.32 billion in 2023.

The new policy puts Illinois' top tax rate for online sports gambling operations in the same league as New

York, which has a 51% top rate. New Jersey is considering doubling its tax rate to 30%. A proposal to boost Massachusetts' rate from 20% to 51% failed in May.

In a conference call with investors, DraftKings CEO Jason D. Robins said that tax increases could hurt the company's ability to be competitive and draw customers away from the illegal gambling market.

"My expectation is that we'll be able to convince them that it's not a good policy decision," he said.

Commercial land-based gaming — encompassing casino slot machines, table games and retail sports betting — accounted for $50.02 billion, or 75.3% of total revenue in 2023, according to S&P Global. Online gaming generated $16.43 billion.

The new tax rate in Illinois could prompt DraftKings and FanDuel to take steps including pulling back on local marketing and promotion deals, according to an analysis by MoffettNathanson. It could also mean revisiting the terms of deals with existing partners.

"The biggest question... would be which state is next and how realistic are higher taxes" across other states with legalized gambling, the report said. A 2018 decision from the U.S. Supreme Court struck down a federal law prohibiting sports gambling. Prior to that, Nevada was the only state where sports betting had been legal. Now, 30 states and Washington D.C. allow online sportsbooks, according to the American Gaming Association. For investors, FanDuel's owner Flutter Entertainment is the dominant company, with a market value of more than $33 billion, while DraftKings commands a market value of about $20 billion.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, ROSE-ANNE SYLVESTRE of Kissimmee, Florida, U.S.A., previously of New Providence, The Bahamas, intend to change my name to OHEMAA ABENA OPPONG-BROBBE. 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, The Bahamas no later than Thirty (30) days after the date of publication of this notice.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, ALTENIA EDWARDS, of #3 Pride Estate Subdivision , Nassau, The Bahamas, intend to change my name to ALTENIA MARIA EDWARDS 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, The Bahamas no later than thirty (30) days after the date of publication of this notice.

TOYOTA SHAREHOLDERS DEMAND VOTE AGAINST CHAIRMAN TOYODA AS AUTOMAKER EMBROILED IN TESTING SCANDAL

By YURI KAGEYAMA AP Business Writer

TOYOTA'S chairman

Akio Toyoda will be facing some disgruntled shareholders this week, as two major proxy groups demand a vote against keeping the grandson of the founder on its board.

The vote expected at the June 18 annual shareholders meeting comes after Toyota apologized recently over fraudulent certification tests for vehicles, a major embarrassment for a company that prides itself on a reputation for excellent quality. The raft of problems at Japanese automakers including Toyota are said not to involve any safety problems and no recalls were announced. But Toyota suspended production of three models produced by group companies in Japan.

Toyota's stock prices had tripled over the last five years to nearly 3,800 yen ($24) before cascading downward amid its latest troubles. Its shares are now trading at above 3,000 yen ($20) — a loss of about 3 trillion Japanese yen ($18 billion) in market value.

Institutional Shareholder Services, majority owned by the German capital market company Deutsche Borse Group, which advises investors, said in its proxy report that Toyoda "should be considered ultimately accountable."

It noted his promises for change did not involve reshuffling of the board. While Toyota said it plans to communicate better with workers on the ground, that likely wasn't enough to prevent a recurrence of problems with cheating on testing, ISS said.

"The company's propensity to preserve its corporate culture is in fact suspected, and Toyoda should be held accountable for that," it said.

ISS is not opposing appointments of other board members, including Toyota Chief Executive Koji Sato, who took up his post in 2023.

The past year has brought a flurry of scandals involving improper checks on vehicles, including collision tests, at group companies Daihatsu Motor Co., which makes small models, truckmaker Hino Motors and Toyota Industries Corp., a manufacturer of forklifts and other machinery.

Japanese officials say such violations were also found at Honda Motor Co., Mazda Motor Corp. and Suzuki Motor Corp.

Another major shareholder, proxy advisory company Glass Lewis & Co. recommended voting against the reappointment of Toyoda and Shigeru Hayakawa, another top executive.

"More specifically, we believe that Mr. Toyoda holds responsibility for failing to ensure that the Group maintained appropriate internal controls and for the failure to ensure appropriate governance measures were implemented at Group

companies," it said in its proxy report.

"Moreover, given the widespread occurrence of issues throughout the Toyota Group, this further raises questions concerning the corporate culture which has developed under the leadership of Mr. Toyoda."

Hayakawa oversaw appointments of board members, and more independent board members should be added, according to Glass Lewis, which is based in San Francisco. It

also recommended voting against a proposal on lobbying by Toyota on climate change, stressing a need for more disclosure.

Under Toyoda, the automaker has pushed a "multi-pathway" approach to ecological vehicles, emphasizing hybrids, which have both a gasoline engine and electric motor, and using hydrogen for fuel instead of focusing on battery electric vehicles that some ecologists favor for cutting auto emissions.

Toyoda is unlikely to be ousted at the general shareholders' meeting, to be held at the company's headquarters in the central Japanese city named after the maker of the Prius hybrid, Lexus luxury models and Camry sedan.

The biggest of Toyota's nearly 1 million shareholders are Japanese companies such as Japanese banks and financial institutions that are unlikely to challenge the automaker. Toyota Industries, a group company, is the No. 2 shareholder.

Tightly held cross-shareholdings among affiliates, long the rule in Japan, are gradually unraveling but longstanding loyalties are likely strong enough to keep Toyoda in his post.

NOTICE is hereby given that EMILIENNE McKENZIE of #8 Wulff Road, Nassau, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 17th day of June, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

TOYOTA Chairman Akio Toyoda speaks during a news conference in Tokyo, June 3, 2024. Toyoda will be facing some disgruntled shareholders at the annual shareholders meeting on June 18, as two major proxy groups demand a vote against keeping the grandson of the founder on its board. Photo:Kazushi Kurihara/AP

Wall Street hangs around its records after European stocks slump

By STAN CHOE AP Business Writer

U.S. stocks hung around their record levels on Friday as Wall Street remained relatively quiet following another slide in Europe.

The S&P 500 edged down by less than 0.1%, marking the first time this week where it did not set an alltime high. The Dow Jones Industrial Average dipped 57 points, or 0.1%, while the Nasdaq composite added 0.1% to its record set a day before on the back of gains for technology stocks.

Losses were sharper across the Atlantic, where markets have been rocked by the results of recent elections in Europe. Wins by far-right parties have raised the pressure on France's president in particular, and investors worry it could weaken the European Union, stall fiscal plans and ultimately hurt France's ability to pay its debt.

Recent elections have also shaken markets in Mexico, India and elsewhere.

France's CAC 40 fell 2.7% to bring its loss for the week to 6.2%, its worst in more than two years. Germany's DAX lost 1.4%. On Wall Street, RH fell 17.1% after reporting a worse loss for the latest quarter than financial analysts expected. The seller of home furnishings called this "the most challenging

housing market in three decades."

High mortgage rates have hurt the housing market, as the Federal Reserve has kept its main interest rate at the highest level in more than two decades. The central bank is intentionally slowing the economy through high rates in hopes of starving high inflation of its fuel.

Cruise-ship operators were among the market's

SPECIALIST James Denaro works at his post on the floor of the New York Stock Exchange on June 12, 2024. Global shares were mixed on Friday, June 14, 2024, after Wall Street touched fresh records, with benchmarks pushed higher by the frenzy over artificial intelligence technology. Photo:Richard Drew/AP

biggest losers after analysts at Bank of America flagged softening price trends for trips. Norwegian Cruise Line dropped 7.5% for the worst loss in the S&P 500, and Carnival fell 7.1%.

Stocks have nevertheless set records as hopes rise that inflation is slowing enough to convince the Federal Reserve to cut interest rates later this year. Big technology stocks, meanwhile, continue to race ahead almost regardless of what the economy and interest rates are doing.

Adobe jumped 14.5% after reporting stronger profit for the latest quarter than analysts expected.

Broadcom rose 3.3% for a second straight day of gains after reporting better profit than expected and

a 10-for-one stock split to make its price more affordable. Nvidia gained 1.8% as the poster child of the rush into artificial-intelligence technology sees its total market value climb even higher above $3 trillion.

Nvidia was the strongest single force pushing upward on the S&P 500, as has become almost routine recently. Adobe and Broadcom were close behind.

All told, the S&P 500 dipped 2.14 points to 5,431.60. The Dow lost 57.94 to 38,589.16, and the Nasdaq composite added 21.32 to 17,688.88.

In the bond market, U.S. Treasury yields ticked lower after a preliminary report from the University of Michigan suggested sentiment among

U.S. consumers failed to improve this month, against economists' expectations. Solid spending by U.S. households has been one of the main engines keeping the economy out of a recession, but "assessments of personal finances dipped, due to modestly rising concerns over high prices as well as weakening incomes," according to Joanne Hsu, director of the Surveys of Consumers.

Perhaps more importantly for financial markets, expectations for upcoming inflation among U.S. consumers don't seem to be moving much, even if they are relatively high. That's an encouraging signal that the economy could avoid a self-fulfilling cycle where expectations for higher inflation drive behavior that creates more of it. The yield on the 10-year Treasury fell to 4.21% from 4.25% late Thursday. It had been as high as 4.60% late