Major retailer hits at armed officer ‘intimidation tactics’
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A MAJOR Bahamian retailer yesterday accused government agents of employing “intimidation tactics” by sending heavily-armed officers into its main store as part of a tax compliance check-up.
Brent Burrows II, CBS Bahamas’ vice-president of retail and sales, wrote in a widely-circulated Facebook post that Monday’s surprise visit by the Government’s ‘Revenue Enhancement Task Force’ was “an eye-opening event” not just for himself but the wider private sector given that it signalled an “increasingly hostile” environment for local businesses.
A 30-second video clip, which went viral on social media, showed a tenstrong team of officials from various government agencies entering CBS Bahamas’ South-West Plaza store at just after 11am on Monday, June 24. They include police, Defence Force and Immigration officers, at least two of whom are armed with machine guns.
Dr Duane Sands, the Free National Movement’s chairman, likened the visit to a “Gestapo-style incursion” in a reference to the Nazi secret police, and questioned whether this represents “a new norm” for the Bahamian private sector when it comes their dealings with the Government’s tax authorities.
‘More
Chamber urges end to ‘heavy handed’ tax check-up tactics
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
• CBS chief: Shows climate ‘increasingly hostile’
• Official: ‘Don’t paint us as bad guys’ on tax check
• FNM chairman blasts ‘Gestapo-style incursion’
balanced recovery’ as Property Fund profit up 36%
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A BISX-listed fund enjoyed “a much more balanced recovery” in 2023 with all core property assets generating a profit to help drive a 35.7 percent year-overyear net income increase.
Michael Anderson, president of RF Bank Bank & Trust, the Bahamas Property Fund’s investment manager and administrator, told Tribune Business that the near-$750,000 jump in profits to $2.846m had also benefited from a collective $1.338m revaluation gain on its three properties - the Bahamas Financial Centre, One Marina Drive on Paradise Island and Providence House on East Hill Street.
Unlike 2022, when the Property Fund had to rely on Bahamas Financial Centre to drive the bulk of its net income and revaluation gain, all three buildings contributed to the latter this time around. The value of the Bahamas Financial Centre’s real estate rose by $738,049 at year-end 2023, while the worth of Providence House and One Marina Drive was increased by $100,000 and $500,000, respectively.
The $1.338m revaluation gain represented a 48.67 percent increase on the $900,000 enjoyed in 2022, which was driven by a $2m rise in the Bahamas Financial Centre’s worth. The latter was partially cancelled out by the $1.1m decline in the value of One Marina Drive in 2022.
“I think the revaluations clearly helped, while the Financial Centre continues to be the dominant part in terms of cash flow and profitability,” Mr Anderson told this newspaper. “The building we’re in, RF [Providence] House, is a contributor to profitability.
“One Marina Drive continues to be the laggard in terms of occupancy. We continue to try and find a tenant and better purpose for it. We have an occupancy base but it is still sitting around 35 percent occupancy. The opportunity is to try and improve that and see who wants to be based there.”
The RF Bank & Trust chief said the Property Fund “might have a better shot” at attracting more tenants to One Marina Drive, located between the two bridges on Paradise Island’s southern shore, now that
Branding the move “unfathomable”, he argued that the seemingly heavy-handed approach requires urgent explanation from the Davis administration, and said: “Is this now what we all need to expect? That armed police are going to storm businesses demanding to see documents and receipts?”
However, Commander Bertram Bowleg, chairman of the Government’s Maritime Revenue Enhancement Task Force, yesterday pleaded to Tribune Business: “Don’t paint us to be the bad boys.” He explained
Gov’t to ‘do what we have to’ over Eleuthera’s water crisis
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A CABINET minister yesterday pledged that the Government is “going to do what we have to do” to ensure central Eleuthera never again endures a 14-day water crisis that has been branded as “insanity”.
Clay Sweeting, minister of works and Family Island affairs, who is also the central and south Eleuthera MP, confirmed to Tribune Business that he met yesterday with Leon Lundy, minister of state in the Prime Minister’s Office with responsibility for the Water & Sewerage Corporation, together with teams
from his ministry and the Corporation, to ensure there is no repeat of woes that have plagued the area for years.
Promising that the discussions were not “a regurgitation of previous meetings” and ideas, he added that the Government and Corporation are eyeing “viable” immediate and long-term solutions to the water supply problem that have not featured before.
Confirming that 84,000 gallons of water were barged to Eleuthera yesterday morning from New Providence, after some residents have been without water for 14 days or two weeks, Mr Sweeting told this newspaper he shared his constituents’ frustration over
decrease in that area.
THE hotel union’s president yesterday said moderate unemployment is helping to drive increased membership “across the spectrum” and reduce turnover rate among fast food workers.
Darrin Woods, the Bahamas Hotel, Catering and Allied Workers Union’s (BHCAWU) chief, said the 9.9 percent national unemployment rate at end-December 2023 has also helped ensure retention rates in the fast food industry - which has historically seen a significant worker turnover rate - are relatively high. He said: “We have seen an increase in membership across the spectrum. One of the areas we represent (KFC), we find that persons when they recognise what all it entails, they would not stay and the turnover is kind of quick, but we’ve even seen a
THE Chamber of Commerce last night urged the Government to “immediately cease these heavyhanded tactics” of sending heavily-armed officers into businesses as part of tax compliance checks.
The private sector advocacy body, referring to the video that showed ten officials - including at least two uniformed officers armed with machine guns - entering CBS Bahamas’ main South-West Plaza store on Monday, said it was “deeply alarmed” by what could be deemed “coercive tactics”.
While backing the Government’s enforcement drive to ensure it collects all tax revenues due to the Public Treasury, and that all businesses pay their fair share, the Chamber called on it to rethink the Revenue Enhancement Task Force’s approach
being unable to access an “essential need”.
“We did meet today, and are fomulating a plan to bring immediate relief and to find some type of solution,” Mr Sweeting said. “We started barging water to Eleuthera, 82,000 gallons of water, which reached today. We’ll continue to barge water until all the tanks are filled. We’re looking at viable solutions with the Water & Sewerage Corporation, and long-term solutions so that it doesn’t happen again.”
“The fast food area, when they recognise it’s not what they really want, they move on. But, for the most part, the persons who are coming into the sector, they are now maintaining”
Mr Woods said he has found a number of students seek employment in the fast food industry to help with expenses while they are studying, but move on once they have completed their course or determine it is a “bit more than they bargained for”.
The Bahamas National Statistical Institute (BNSI) recently released its unemployment statistics for the third and fourth quarter of 2023. The unemployment rate as at December 2023 stood at 9.9 percent, 0.5 percentage points lower than the 10.4
The water shortage, and in some cases cut-off, stems from a series of mechanical problems that have severely slashed water production at the reverse osmosis plant that supplies central Eleuthera and
ACCORDING to CBS employees, a group of 10 gov’t agents (some heavily armed) conducted a surprise inspection at the business on Monday. The group claimed to be apart of the ‘Revenue Enhancement Taskforce’.
Photo: SCREENSHOT OF SECURITY CAMERA FOOTAGE
CLAY SWEETING, Minister of Works and Family Island Affairs, meeting with Leon Lundy, Minister of State in the Prime Minister's Office with responsibility for the Water & Sewerage Corporation, together with teams from his ministry and the Corporation.
DARRIN WOODS
MIKE ANDERSON
BAHAMAS PLAYS A PROMINENT ROLE DURING CARIBBEAN WEEK
THE MINISTRY of Tourism, Investments and Aviation ensured The Bahamas was prominent at the Caribbean Tourism Organisation's (CTO) Caribbean Week by acting as a key sponsor for the event.
The ministry, in a statement, said it served as a platinum headline sponsor for the event which was held in New York from June 16-21. It brought together industry leaders, government officials and tourism stakeholders from across the Caribbean, giving The Bahamas a platform to showcase its product offerings and highlight its commitment to sustainable tourism development.
Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, along with Latia Duncombe, tourism's director-general, held discussions and networking opportunities. They also hosted a series of events aimed at enhancing regional partnerships and driving tourism growth.
"CTO Caribbean Week was a pivotal gathering that united tourism leaders and stakeholders across the dynamic Caribbean region, navigating the evolving landscape of
global travel and embracing the transformative power of technology," said Mr Cooper.
"We were proud to host a lively media event where over 50 top tier media representatives gathered. This event showcased our commitment to innovation with a 360-degree wall mapping projection featuring captivating videos highlighting the islands of The Bahamas."
The Bahamas was also featured on New York's WPIX 11 news. "The Bahamas is dedicated to creating exceptional tourism offerings through arts, culture, culinary delights and sustainable travel experiences that benefit our visitors and locals and preserve our natural resources," Mrs Duncombe said.
"We are thrilled to have shared updates on our exciting new hotel projects, enhanced airlift services and significant infrastructure developments. During Caribbean Week in New York, we engaged in deep discussions on the transformative role of artificial intelligence (AI), explored synergies to promote our vibrant culture and culinary excellence, and discussed
THE DEPUTY Prime Minister’s second forum was the ‘Minister’s forum - leveraging artificial intelligence. This included the minister of tourism and ports for the Cayman Islands and CTO chairman, Kenneth Bryan; the minister of tourism for Jamaica, Edmund Bartlett; founder of Clarity Media Agency, Lee Hall; and host and reporter, Jennifer Bisram.
Photos:Kemuel Stubbs/ BIS
THE WEATHER REPORT
THE FIRST, ‘Caribbean Airlift Forum’, included Jose Freig, vice-president, international operations, of American Airlines; and Dave Appleby, director of air services development consulting for ASM at Aviation Week Network Information PLC. The panel was moderated by Rosa Harris, chairman of CTO’s board of directors and director of tourism, the Cayman Islands.
the new role of influencers in the public relations field.
“We take pride in presenting our vision for the future of tourism in The Bahamas with our regional partners, and look forward to continued collaboration to drive growth and prosperity throughout the Caribbean."
Marv 'Mr Mix' Cunningham and Chef Kevyn Prai joined the delegation to highlight the culinary excellence of The Bahamas. Throughout the event, The Bahamas delegation participated in panel discussions, workshops and networking events, sharing insights on best practicces in tourism marketing, sustainability and destination management.
PHA TERMINATES SECURITY FIRM ACCUSED OF NOT PAYING STAFF
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
THE Public Hospitals Authority (PHA) yesterday said it has already terminated a private security contractor accused of failing to pay its employees their due wages and benefits.
The agency overseeing Princess Margaret Hospital (PMH) spoke out after employees of Guard Force Security demonstrated outside the hospital to make
their grievances with the firm known publicly. PHA, in a statement, said it had been made aware of the claims against its former private security contractor and terminated its contract two weeks ago. “PHA has been made aware of the concerns and would like to inform the community that, considering recent events, we took swift action to terminate the contract with the security company in question two weeks ago,” it added. “Interim security services are already in place, and
we are currently preparing for a new tender process to select a replacement in the coming weeks.”
The PHA statement explained that it regularly reviews vendor performance, but the concerns raised by the Guard Force Security staff must be address directly with the contractor and not itself.
“The safety and security of our patients, visitors, vendors and dedicated staff are of utmost importance to us. As with any organisation, we regularly review our vendor performance
and make changes as needed to ensure the efficacy of our services. Rest assured, we are committed to implementing robust policies and procedures that align with the standards of our institutions,” said the PHA.
“It is important to note that the concerns raised are specific to the contracted security company and its employees, and should be addressed directly between the company and its employees. We urge respect for their privacy in handling this matter internally.”
DEL ZOTTOS RETURN TO GB USING NEW TRADE NAME
By FAY SIMMONS
Tribune Business Reporter jsimmons@tribunemedia.net
THE Florida-based Del Zotto family has reopened its Grand Bahama-based concrete products trading under a new name, Del Zotto Products Bahamas
The former Gold Rock site has resumed business some two years after a closure that resulted from a public dispute with the Grand Bahama Development Company (DEVCO) and Grand Bahama Port Authority (GBA).
According to its website, Del Zotto Products of The Bahamas, “formerly known as Gold Rock Corp”, is open and offering a number of steel and concrete products. One source said the business would have had to receive GBPA approval to change its trade name and be relicensed.
The previous dispute began when talks with DevCO for a new agreement over Gold Rock’s
access to aggregate/fill in its Devonshire subdivision, which was critical for its ready mix, block and pre-cast concrete products, soured. DevCO, argued that Gold Rock’s continued monopoly over the fill source could not be justified because it had under-performed the previous contract by not taking the stipulated tonnage.
The concrete supplier then accused the GBPA and DevCo of stifling growth in Grand Bahama, adding that purchasing the necessary fill from alternative sources would “force” it to raise prices for its concrete products - implying it would make them uncompetitive against foreign imports.
Once the dispute was made public, Gold Rock warned it would close its concrete block and ready mix division unless a new aggregate deal could be reached on acceptable terms, and waited one month to see if things would change in its favour.
GOV’T TO ‘DO WHAT WE HAVE TO’ OVER ELEUTHERA’S WATER CRISIS
FROM PAGE A22
communities such as Governor’s Harbour, Gregory Town, Palmetto Point and Savannah Sound.
The plant, located at the former Naval Base, is operated by privately-owned Aqua Design Bahamas. Just as full production was set to resume, a Bahamas Power & Light (BPL) electricity surge yesterday morning was blamed for damaging the feed water pump and knocking the whole plant offline again.
Mr Sweeting yesterday conceded that central Eleuthera’s water supply woes have lasted throughout several administrations’ terms in office, with relations between Aqua Design on one side and the Government and Water & Sewerage Corporation on the other occasionally fraught over allegations of unpaid bills and charges that required performance standards are not being met.
“At the end of the day, people in the constituency just want the water on, so we have just got to do what we we have to do,” the minister said. “We’re barging water from New Providence to fill the tanks, and we’ll continue to do that until all the tanks on Eleuthera are filled.
“That’s our contingency plan. We’re looking at other options as well, but we have a plan so that if this happens again we can
bring immediate relief to the people in Eleuthera.”
Mr Sweeting declined to give details on the potential long-term solutions for central Eleuthera’s water woes ahead of tomorrow’s meeting with constituents to discuss their wider utility crisis.
“I will say that the meeting today [yesterday] was basically to get a handle on the situation, fix it as quickly as possible and the Government is going to do what we have to do to ensure reliable water for Eleuthera,” he told Tribune Business.
“I’m concerned about the health of people in the constituency, I’m concerned about the elderly people, the mothers with babies, the clinics. I’m more frustrated with Aqua Design not able to correct this.” Similar issues with Aqua Design’s water supply arose two years ago, and Mr Sweeting said of his constituents: “I share their frustrations, and rightfully so.
“They’re right to be frustrated with not having water. Water is an essential need. It’s not a commodity. It’s something they deserve to have as tax-paying citizens. I understand their frustrations. They’re rightfully frustrated. We have some long-term solutions, so I don’t foresee this type of situation again.
“At the meeting we had today, I didn’t see any long
The GBPA, though, accused the Del Zottos of being “motivated by nothing but spite” in deciding to close the Home Design Centre and Do It Centre as well, and thereby exiting all their Freeport investments, even though these two entities were not impacted by the aggregate supply talks. It added that the move “will cost yet more hardworking families their livelihoods and further shrink the options available to consumers in a struggling economy”.
The GBPA maintained that DevCO was justified in seeking new terms for the Devonshire aggregate agreement because Gold Rock, in failing to mine and extract the agreed upon tonnage even before Hurricane Dorian and COVID, was preventing rival Bahamian contractors from accessing the same fill due to the five-year exclusivity or monopoly it was granted from 2017.
The Davis administration tried to intervene in the
lead times. We had a full team of the Water & Sewerage Corporation leadership, the team at the Ministry of Works. This wasn’t a regurgitation of previous meetings. Sometimes you have the same discussions and same suggestions. This was not a regurgitation and meeting to meet. This is to bring viable solutions that have not been discussed. We’ll get it done.”
Greg Stubbs, the Water & Sewerage Corporation’s assistant general manager for the Family Islands, told central Eleuthera residents via a What’s App post that yesterday’s BPL power surge had created another obstacle to Aqua Design resuming full production.
“The repairs were completed and the plant was running. Unfortunately, a BPL power surge damaged the feedwater pump early this morning causing the whole plant to go down. This repair work is in progress today,” Mr Stubbs said.
“The plant operator is making progress in the repairs to their feed water pump. Water & Sewerage Corporation has arranged for 84,000 gallons of water to be barged into Eleuthera. Off-loading has begun. A second load of water will also be delivered. This will continue as long as needed.
“The water that is being barged in will be put into our storage tank. Once that tank level has reached a certain point we will then begin pumping that into the system. It may take a while but that water will get to you. In the meantime, we will continue our own tankering
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dispute and implored the Del Zotto family to “spend every effort” to resolve its differences with the GBPA before closing the companies and leaving an estimated 130 Bahamians out of work.
Mr Davis said he had indicated they should seek to resolve the dispute with the GBPA and DevCO so that their concrete manufacturing, hardware and home furnishings and accessories businesses remain in operation for the benefit of Grand Bahama’s economy and its people.
However, the Del Zottos replied that their relationship with Freeport’s quasi-governmental authority and DevCo had broken down to the point where it was likely irretrievable.
Tribune Business reached out to Del Zotto Products for comment on its return to Grand Bahama as well as the Grand Bahama Port Authority but received no reply from either up to press time.
of water to highly-affected customers,” he added.
“The Corporation continues to work with its contractor to improve their performance. There is a contract in place and we must work within the conditions of the contract.”
Central Eleuthera residents, though, were less than impressed. One wrote: “Since moving here from Nassau in 2019, I’ve lived in Governor’s Harbour and Palmetto Point, and I’ve always experienced water supply issues. So it’s definitely not a new problem.
“Hopefully, Water & Sewerage Corporation can find a proper solution for the long-term. Water is essential, and there should be back-up systems in place for emergencies or natural disasters. It’s embarrassing having to make up excuses to the tourists that are visiting when asked about our power and water shortfalls.
“Knowing that areas have been out of water for two weeks with no type of resolution is absolutely insane. I don’t care how you sugar coat it. I could never hold line staff accountable for management decisions. They can only work with the resources available to them, which is sometimes very limited,” they added.
“I am looking forward to the Town Meeting to hear what solutions or modifications will be put in place. It’s simply frustrating, to say the least. And you’re not expected to complain about it? Back and forth? The last time I checked, it was a service that consumers are paying for.”
Employees yesterday alleged that Guard Force Security owes them unpaid wages, National Insurance Board (NIB) contributions and benefits such as back pay and vacation pay. They claimed that, while their employment contracts stipulate they are to be paid every two weeks, on the 15th and 30th of each month, they have only regularly been receiving one of these payments. As a result, staff are complaining they are receiving only two weeks' pay for a month's worth of work.
Speaking to reporters, one Guard Force Security employee claimed she was evicted from her home because the company's failure to pay meant she was unable to contribute to the rent.
Tribune Business attempted to contact Guard Force Security for comment, but received no response up to press time. The company told other media that all monies owed to staff will be paid no later than next week.
EY Bahamas partner set to take regional strategy lead
THE EY accounting firm yesterday said Igal Wizman, one of its Bahamas partners, has been named as strategy and transactions (SaT) leader for the Caribbean region with effect from July 1.
The company, in a statement, said Mr Wizman will take over the role as strategy and transactions head for territories including The Bahamas, Bermuda, the British Virgin Islands (BVI) and the Cayman Islands from Keiran Hutchison, who will retire on June 30. In his new role, Mr Wizman will lead EY's team of restructuring and turnaround professionals in providing restructuring services across the region. He will also be responsible for the broader strategy and transactions practice, providing services including lead advisory, transaction diligence, valuations, business and strategic reviews, plus capital and debt advisory support.
EY said Mr Wizman has 17 years’ experience advising corporations and lenders on corporate finance matters, restructuring, insolvencies and asset recovery work. He started his EY career in Montreal, Canada, in 2004 and spent his first three years as a risk advisory consultant before moving into the restructuring team.
The strategy and transactions practice, a team of more than 50 professionals regionally, is part of EY-Parthenon (EY-P) and provides cross-jurisdictional support, enabling companies to transform, create, preserve and recover value.
It leverages the expertise of a global network featuring more than 9,000 EY-Parthenon professionals in 120 countries.
Michele Thompson, EY's regional managing partner, said: “Igal has been instrumental in the growth of our strategy and transactions business, and has played a key role in expanding service lines to include government and hospitality engagements. His leadership has helped to strengthen the team’s reputation and he is highly respected in all the markets in which we do business.
“I would like to thank Keiran for his considerable contribution to the team’s success over the past 12 years. During his tenure, the strategy and transactions team significantly increased its market footprint, talent base and service lines, and handled a series of high-profile liquidations and restructurings. We wish Keiran well in his next chapter.”
Tiffany Norris-Pilcher, EY Bahamas' country managing partner, said: “It speaks to the deep talent base we have within the regional strategy and transactions team that we have been able to promote from within our ranks for this key role.
"I’m confident that under Igal’s leadership we will continue to help our clients rapidly solve business challenges in urgent and complex situations, and help them reshape for a better future.”
Mr Wizman added: “I would like to acknowledge Keiran’s strong leadership during a time when we have responded to clients’ evolving needs by expanding the suite of services we offer. I look forward to working with our talented team across the region to continue the commitment to excellence in client service that EY is known for.”
Chamber urges end to ‘heavy handed’ tax check-up tactics
when came to making random, door-to-door checks on companies.
“Yesterday, a video showing several heavily-armed tax enforcement unit officers entering the main entrance of a local business premises was widely shared on social media,” the Chamber said in a statement to this newspaper.
“The Bahamas Chamber of Commerce and Employers Confederation is deeply alarmed by what appears to be coercive tactics during the store’s operating hours and in the presence of employees and customers.
“While authorities have the right to inspect tax documents, using such force is a clear violation of our country’s democratic principles. The Bahamas is a functioning democracy where the rule of law allows the authorities to enforce regulations and rules without resorting to the threat of violence,” it added.
“It is unjust that hardworking business owners, their employees and their customers are subjected to such treatment from their government. We all want
this country to prosper, and the private sector is critical in helping our economy grow. “The Bahamas Chamber of Commerce and Employers Confederation calls on the authorities to immediately cease these heavy-handed tactics and use more efficient and effective means to ensure compliance with the tax code. We also call on the authorities to consult with the Bahamas Chamber of Commerce and Employers Confederation to better understand the private sector’s needs and processes so that we can work together to reach our shared goals.”
However, Commander Bertram Bowleg, chairman of the Government’s Maritime Revenue Enhancement Task Force, yesterday told Tribune Business that the CBS Bahamas video was being misinterpreted and used to portray the Revenue Enhancement Task Force team in a bad light.
He explained that the visit to CBS Bahamas, and other companies in the South-West Plaza, was merely the next step in an initiative that has already
seen the Government’s revenue agencies and likes of the National Insurance Board (NIB) hold voluntary tax compliance events in recent weeks at locations such as the Mall at Marathon.
Commander Bowleg said the Task Force is now moving this effort to the next level with random “door-to-door” visits to individual businesses to determine if they are in compliance, and fully paidup, with all relevant taxes. If they are not, rather than than shut them down or send them to a particular agency, he added that the presence of all tax authorities gives them a chance to become compliant on the spot.
And, defending the presence of officers carrying weapons, Commander Bowleg said the team that visited CBS Bahamas were neither aggressive nor pointed their firearms at staff or customers. Pointing out that law enforcement officers routinely carry weapons, he added that they were necessary to protect Task Force members in the execution of their duties.
“What we are doing is a a compliance check with the team,” Commander Bowleg said of the CBS Bahamas visit. “It’s not that the officers were heavy handed. They are in uniform and wear weapons every day. I don’t know why people would be intimidated. We have to keep them as a team, and keep the team protected. I am responsible; that comes under me. We have to protect them.
“Law enforcement officers, part of their uniform is their weapons and that is for the protection of themselves and the persons they are with. They are collecting outstanding revenue. It be very unfortunate if something were to happen to them. They were professional. They didn’t act in any sort of way that was aggressive to CBS staff or management.
“I don’t know why people take it the wrong way. We always do it in a very professional way,” Commander Bowleg continued. Trust me, it’s never like that. Even when they argue with us I always tell my people not to argue back, stay professional and let them vent but, at the end of the day,
our laws and government policies are the same.
“We have to pay real property tax, we have to pay VAT, we have to pay NIB in order for the Government to survive. There wasn’t no issue. It was quiet, but people took the video and made it look like it wasn’t. I cannot be concerned by things like that.
“I have a job to do and will stay professional. You’re not going to force me to be contrary to professional because I will lose. I must always have my higher standards... They paint us as if we’ve gone in there with our weapons pointed aggressively about. It’s not like that. Don’t paint us to be bad boys. Those making the most noise are not compliant. They are trying to distract.”
Commander Bowleg said the presence of armed officers was necessary to protect officials from agencies such as the National Insurance Board (NIB) and Department of Inland Revenue, although a spokesman for the latter agency yesterday said its representatives were not involved.
The Task Force chief added that the team was
MAJOR RETAILER HITS AT ARMED OFFICER ‘INTIMIDATION TACTICS’
FROM PAGE A22
that the visit to CBS Bahamas, and other businesses in the South-West Plaza, were part of a “door-todoor” compliance and enforcement strategy to ensure companies are compliant with all taxes.
Signalling that this is the next step, following the recent voluntary compliance exercise staged by the revenue agencies, Commander Bowleg refuted suggestions that the team which visited CBS Bahamas were “heavy handed” or “aggressive” in their approach (see other article on Page 1B).
Asserting that officers never entered the store pointing their weapons aggressively at customers or staff, he pointed out that it was standard practice for law enforcement to carry arms in the modern Bahamas. Commander Bowleg said the presence of armed officers was necessary to protect tax officials given the possibility that some delinquent companies may react negatively to demands for payment.
However, Mr Burrows described the sudden, unannounced arrival of the Revenue Enhancement Task Force team during the middle of the business day as “deeply alarming” for both customers and CBS Bahamas staff. He added that the impact was “disruptive” because staff had to be pulled away from their daily tasks to address the officials’ requests for specific documents and receipts.
While backing the Government’s goal of ensuring all companies pay their fair share in tax, the CBS Bahamas chief said the Task Force’s visit would have been more productive if it had alerted the retailer in advance because then it could have had the necessary paperwork ready for inspection.
And he pointed out that many documents, such as Customs entries, were
already easily accessible electronically and in the possession of the Government’s tax agencies, thus eliminating the need for an on-site visit. Mr Burrows also challenged why the Government is seemingly targeting all businesses rather than those deemed ‘high risk’ or with a history of tax avoidance, evasion and non-compliance.
“Not only was CBS visited yesterday [Monday], but just about every other business operating in the South-West Plaza,” Mr Burrows wrote. “This was an eye-opening event for me, and it should be for the rest of the business community as well. We are slowly but surely continuing to trend in a direction that is increasingly hostile for Bahamian businesses.
“Regulatory burdens aside, the intimidation tactics employed during routine checks only serve to create an atmosphere of fear and distrust. We need to address these practices to ensure that businesses are not made to feel under siege but are encouraged to thrive and contribute positively to our economy. It’s crucial for the business community and government to work together to foster a supportive and transparent environment.”
Disclosing that the Revenue Enhancement Task Force team included officials from agencies such as Customs, Immigration, the National Insurance Board, Department of Inland Revenue and police and Defence Force, Mr Burrows added: “Their arrival, unannounced and in the middle of the shopping day, was not only disruptive but also deeply alarming for both our customers and staff.
“The sight of heavilyarmed government agents entering a retail store created an atmosphere of fear and confusion.” Mr Burrows added that, if CBS Bahamas had been informed in advance of the compliance check-up, this
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would have made document production and inspection by the officials much more efficient, thereby “minimising wasted time for both parties”.
“What message are we sending when a ‘routine check’ is accompanied by armed enforcement agents,” the CBS vicepresident asked. “CBS Bahamas is fully compliant and has no history of issues or wrongdoings. This aggressive approach seems excessive and unwarranted....
“Shouldn’t efforts be focused on businesses that have a history of non-compliance or issues rather than those that consistently follow the rules?” Mr Burrows also said that requesting documents already accessible to government agencies electronically “only adds to the bureaucratic burden and wastes valuable resources.”
Mr Burrows subsequently told Tribune Business that, by making CBS Bahamas’ experience and concerns known, it will hopefully prompt policymakers to “think twice” and adjust the Revenue Enhancement Task Forces approach as having armed officers enter a store in the middle of the business day is “not a good look for commerce”.
Describing the approach as “just unnecessary”, he said he was aware that similar tax compliance visits were made to Bahamian marinas in early June based
on photos he has seen.
“They came to us first, and then went pretty much to every store in the SouthWest Plaza,” he added of Monday’s events.
While CBS Bahamas’ head office and tax-related records are in the same location as its main store, Mr Burrows said this was not the case for a number of other retailers in the plaza. As a result, he suggested that when it came to the likes of Bamboo Shack the officials would have been talking to “fry cooks and servers” rather than the persons they needed to see, undermining their visit’s efficiency.
“The customers and staff alike, they see something like that and people get crazy stuff in their heads that we were subjected to an Immigration raid. It’s just unnecessary. It’s concerning,” Mr Burrows said. He added that, if CBS Bahamas and others had been notified in advance, the Government had “an opportunity to do something really positive with the business community”.
The private sector could have made the relevant documents available, along with executives to answer any questions the agencies had, which “could have been a totally different outcome” delivering positive benefits for both the Government and businesses.
“We needed our human resources administrator, our buying and shipping
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person, to stop what they were doing and look up whatever documents they were asked to look up and make sure everything was in order,” Mr Burrows said. “Disruption was the main thing, but more so the approach and way they went about it was concerning to me.
“I just didn’t feel like it was a great use of resources. A courtesy call or something would probably have been better, but to come through the door with eight to ten agents, some of whom were carrying guns, is not a good look. Hopefully someone at the top will think twice about it and come up with a different approach.
“We know that over the past year, year-and-a-half there’s been like this more hostile warning, but the tone coming out of Inland Revenue towards the business community, this plays into that whole picture which is not a great look for commerce. Hopefully it changes direction or the strategy changes.”
Dr Sands, reacting to the CBS Bahamas video and postings, told Tribune
checking compliance with Business Licence fees, NIB contributions, Customs tariffs and VAT all the way through to Immigration work permit fees. “We are doing on-the-spot compliance,” Commander Bowleg said.
“You can pay now. We’re coming to you and getting you straight and compliant. We’re trying to reach out more. We aren’t trying to shut down nobody. We’re not trying to inconvenience anybody. We’ll have to do another voluntary compliance in my opinion. We want people to come in. We will run another voluntary compliance week shortly in a couple of weeks.”
While some businesses had attended the voluntary compliance stations set up at Mall at Marathon, Sandyport, the Port Department and Inland Revenue some weeks ago, not all had been enticed to settle their outstanding tax bills. Commander Bowleg estimated that between 10-15 percent of companies with past due tax debts had come in, prompting the shift to visiting business locations.
Business: “You wonder: Is this the new norm? It seems a bit over the top doesn’t it? I think it’s absolutely incredible, it’s unbelievable. I think the business community should be absolutely alarmed.
“Unless there’s an explanation, is this now what we all need to expect? That armed police are going to storm businesses demanding to see documents and receipts? It is unfathomable that this has taken place in The Bahamas in 2024. There’s got to be a serious explanation.
“What other businesses need to expect a visit by a contingent of armed police or armed officers? I don’t think this is an overreaction. It’s absurd, and the public needs an urgent explanation. What does one do or not do to warrant such an intrusion? What is going on? I don’t know if there is some legitimate reason for this Gestapo-style incursion,” he continued.
“This is frightening that this is to determine whether you are tax compliant. If the contents of the post are correct, that other businesses were subject to similar kinds of intrusion, then we should be very afraid.”
N O T I C E Sourcing Solutions International Ltd.
NOTICE IS HEREBY GIVEN in accordance with Section 138(4) of the International Business Companies Act, (no. 45 of 2000) as follows:
(a) Sourcing Solutions International Ltd. (the “Company”) is in dissolution under the provisions of the International Business Companies Act, 2000.
(b) The dissolution of the said Company commenced on the 19th day of June, 2024 when its Articles of Dissolution were submitted to and registered by the Registrar General.
(c) The Liquidator of the said Company is Mr. David Butler.
Dated the 25th day of June, 2024. H&J CORPORATE SERVICES LTD. Registered Agent for the above-named Company
Hotel union chief: Fast food staff retention up
FROM PAGE A22
percent in the third quarter, with skilled agriculture and fisheries workers experiencing the largest increase by occupational group.
The report said 3,025 individuals were employed in the sector, a 20 percent increase from the third quarter. The increase can be attributed in part to seasonal workers entering the sector during the crawfish season, a change the labour survey now captures as it has transitioned from bi-annual to quarterly frequency.
Prime Minister Philip Davis KC said he was
“encouraged” by the reduction in discouraged workers, the category of individuals available for work yet not actively seeking employment as they are not hopeful about their job prospects, from 10,880 in the 2023 third quarter to 9,500 in the fourth quarter. Mr Davis said he was also optimistic that the unemployment rate will continue to decrease over the coming years as the economy is still growing and there are a number of vacancies available.
He said it is a “challenge” for the Government to accommodate many individuals that only want
to be employed in the public sector and refuse to stay employed in positions found for them in the private sector. He maintained that the Government cannot employ all those individuals so they are looking to have them employed in the private sector.
He said: “I mean, the economy’s growing, it’s doing well and there’s still a lot of vacancies out there for Bahamians to grasp the opportunity. The challenge we’re having is that a lot of Bahamians want to work, but they want a government job.
“I can speak about having persons working and having
‘More balanced recovery’ as Property Fund profit up 36%
Sterling Global Financial has secured the commercial tenants it was seeking for Paradise Landing, the renamed Hurricane Hole.
“We were competing for the last couple of years with Sterling,” Mr Anderson said. “They’ve filled their property, and we might have a better shot at getting some of those businesses wanting to be on Paradise Island.”
One Marina Drive generated a modest net profit of $168,839 during the 12 months to end-December 2023, reversing the prior year’s $1.345m loss. However, Mr Anderson said the Paradise Island-based office building needs to solve its lack of adequate parking space to help attract more tenants.
He explained that Sterling acquired part of the parking space used by One Marina Drive tenants when it purchased Hurricane Hole several years ago. “We don’t have sufficient parking space for the building,” Mr Anderson confirmed. “Sterling bought and took over the parking space as part of the Hurricane Hole purchase. When the lease came up two years ago, they took over the space and leased it back to tenants.
“We have a parking space that solves the parking for existing tenants but it’s not adequate. It’s a limited solution for us in the longer term. We again continue to have discussions with Sterling. We need to find a better longer-term parking solution, but so does Paradise Island generally.
“There’s not sufficient parking for a lot of buildings
on Paradise Island. There are discussions we have from time to time with Sterling to see if we can do something together.” Elsewhere, Mr Anderson said the occupancy rate at the Property Fund’s Bahamas Financial Centre flagship property is close to 90 percent even though major banks, such as JP Morgan and Credit Suisse, have reduced their space needs.
“Those private banks have been reducing their footprint as they have done, so we’ve been very fortunate to find other tenants to take up the space,” he told Tribune Business. “Between them, they are down to 30 percent of the building. We’ve been happy to see the other tenants come in over time.
“Last year was a much more balanced recovery across the three buildings. It was a good start. I think we’ll start to see the full benefits of all the tenants coming in this year, next year. In 2025, I expect to see some of the rental income not recognised start to come through, and rental income will be further improved by that.”
Tribune Business previously reported that the Property Fund plans to invest between $4m to $4.5m in upgrading Bay Street’s Beaumont House in addition to the acquisition price it will likely pay in the coming weeks.
The $4.3m purchase of the mixed-use property, which is located immediately to the west of Bay Street’s Straw Market, marks “the start” of the BISX-listed fund’s plans to play a role
in downtown Nassau’s redevelopment as it explores whether to convert Beaumont House’s upper floors into short-term residential options. The vendor’s identity was not disclosed.
Besides this acquisition, which the Property Fund is aiming to close “within the next few weeks”, Mr Anderson told this newspaper it will also invest around $12m in Bahamas U-Store Ltd, a warehouse/storage facility to be constructed near the Carmichael Road/ Gladstone Road junction. While that project is still awaiting final planning approval, its construction start is anticipated in the 2024 third quarter.
Confirming that Beaumont House and Bahamas U-Store will be funded from the proceeds of a preference share offering, the details for which are due to be worked out over the next month, Mr Anderson revealed that beyond these projects the Property Fund will need to raise equity capital in 2025 to finance ambitions of more than doubling its property portfolio to $100m by that year’s end.
Voicing optimism that “we get the Property Fund right”, the RF Bank & Trust chief admitted its performance had “been disappointing for a long time” but said the resumption of regular dividend payments and an improved share price suggested the real estate investment trust (REIT) or mutual fund is beginning to build momentum once again.
got them the job, and four weeks later they are leaving the job and they say Brave, you know….I wanted a government job, I didn’t want this job. The Government can only absorb so much of it. We’re trying to get as many people employed in the private sector as we can to help that segment of our society.”
The quarterly survey revealed the number of persons in the labour force was 237,755, an increase of 755 or 0.32 percent compared to the third quarter. By island, New Providence had 176,525 people in the labour force - 158,840 employed, 16,685 unemployed and an
unemployment rate of 9.5 percent. Abaco had 10,560 people in the labour force - 9,720 employed, 840 unemployed and the lowest unemployment rate of 8 percent. Grand Bahama had 28,655 people in the labour force - 25,675 employed, 2,980 unemployed and the highest unemployment rate of the island surveyed at 10.4 percent.
“In quarter four 2023, the number of unemployed persons was 24,585, a decrease of 1,130 compared to the third quarter. The number of unemployed males was 10,755 up from 10,665. The number of unemployed
females was 12,830 down from 14,050. The number of unemployed youths (persons aged 15-24) decreased by 1,475 to 8,970 in the fourth quarter 2023,” said the BNSI report.
“The unemployment rate for males remained unchanged, while the unemployment rate for females of declined by 1 percentage point from 11.9 to 10.9. For the youths, the unemployment rate was 20.5 percent, representing a decrease of 2.3 percentage points compared to 22.8 percent in quarter three.”
FDA WARNS MAKER OF SARA LEE AND ENTENMANN'S NOT TO CLAIM FOODS CONTAIN ALLERGENS WHEN THEY DON'T
By JONEL ALECCIA AP Health Writer
FEDERAL food safety regulators said Tuesday that they have warned a top U.S. bakery to stop using labels that say its products contain potentially dangerous allergens when they don't.
U.S. Food and Drug Administration inspectors found that Bimbo Bakeries USA — which includes brands such as Sara Lee, Oroweat, Thomas', Entenmann's and Ball Park buns and rolls — listed ingredients such as sesame or tree nuts on labels even when they weren't in the foods.
Under FDA regulations, such products are "misbranded," FDA officials
said in a warning letter sent to officials at the company's Horsham, Pennsylvania, headquarters earlier this month.
"Food labels must be truthful and not misleading," officials said. The warning followed inspections late last year at Bimbo plants in Phoenix, Arizona, and Topeka, Kansas, that make Sara Lee and Brownberry breads. In addition, FDA officials indicated that allergen labeling is a "not a substitute" for preventing cross-contamination in factories.
Advocates with the nonprofit group FARE, Food Allergy Research & Education, said such labeling "does a disservice" to the estimated 33 million people in the U.S. with food allergies. Those consumers have to be constantly aware of foods that can cause potentially life-threatening allergic reactions, said Sung Poblete, FARE's chief executive.
"Our community relies on accurate product labeling for their health and safety," Poblette said in an email. "These findings about Bimbo Bakeries' products undermine their trust and further limit their choices."
Bimbo, a Mexico Citybased food giant, bills its U.S. operations as the largest commercial baking company in the country. In an email, company officials
said they "take their role in protecting consumers with allergen sensitivities very seriously" and that they are corresponding with FDA to resolve the issue.
Concerns over labels at Bimbo and other companies followed a law that took effect in 2022, which added sesame to the list of major allergens that must be listed on packaging. Because it can be difficult and expensive to keep sesame in one part of a baking plant out of another, some companies began adding small amounts of sesame to products that didn't previously contain the ingredient to avoid liability and cost. FDA officials said that violated the spirit, but not the letter, of federal regulations.
Some companies, including Bimbo, began listing allergens such as sesame on labels as a "precaution" in case of cross-contamination. FDA officials acknowledged Tuesday that statements that a product "may contain" certain allergens "could be considered truthful and not misleading." Bimbo officials have until July 8 to identify steps taken to remedy the issue — or to explain why the labeling doesn't violate FDA standards.
BIMBO bread is displayed on a shelf at a market in Anaheim, Calif., on April 24, 2003. On Tuesday, June 25, 2024, U.S. federal food safety regulators warned Bimbo Bakeries USA - which includes brands such as Sara Lee, Oroweat, Thomas', Entenmann's and Ball Park buns and rolls - to stop using labels that say its products contain potentially dangerous allergens when they don't.
Photo:Damian Dovarganes/AP
ANTI-TAX PROTESTERS STORM KENYA’S PARLIAMENT, DRAWING POLICE FIRE AS PRESIDENT VOWS TO QUASH UNREST
By EVELYNE MUSAMBI Associated Press
THOUSANDS of pro-
testers stormed Kenya's parliament Tuesday to protest tax proposals, burning part of the building, sending lawmakers fleeing and drawing fire from police in unrest that the president vowed to quash. Several people were killed.
It was the most direct assault on the government in decades. Journalists saw at least three bodies outside the complex where police had opened fire, and medical workers reported five people killed. Clashes spread to other cities. There was no immediate word on arrests.
"Today's events mark a critical turning point on how we respond to threats to our national security," President William Ruto said, calling the events "treasonous" and vowing to quash the unrest "at whatever cost."
Kenya's defense minister said the military had been deployed to support police during the "security emergency" and "breaching of critical infrastructure."
Protesters had demanded that legislators vote against a finance bill imposing new taxes on East Africa's economic hub, where frustrations over the high cost of living have simmered. Youth who had voted Ruto
into power with cheers for his promises of economic relief have taken to the streets to object to the pain of reforms.
Lawmakers managed to pass the bill before fleeing through a tunnel as protesters outmaneuvered police and poured in. The fire at the building was later put out. The Kenya Medical Association said in a statement that at least five people were fatally shot while trying to treat wounded people at the scene. It said more than 30 people were wounded, at least 13 with live bullets.
Police fired live ammunition and threw tear gas
canisters at protesters who sought treatment at a medical tent at a nearby church. Elsewhere in town, Kenyatta National Hospital said it received 45 casualties.
One person shot dead was wrapped in a Kenyan flag and carried away. Another lay on the sidewalk, their head in the gutter.
-Internet service in the country noticeably slowed in what NetBlocks called a "major disruption," and at least one broadcaster issued a statement saying that "we have received threats from the authorities to shut us down."
Ruto had been outside Nairobi attending an African Union retreat. He was expected to sign the finance bill into law this week. He has two weeks to act but faces calls from religious and other leaders to think again.
The nearby office of the Nairobi governor, a member of the ruling party, also was briefly on fire Tuesday, smoke pouring from its white facade. Police water cannons were used to extinguish the fire.
Protesters could be heard shouting, "We're coming for every politician."
The Kenya Human Rights Commission shared
PROTESTERS scatter as Kenya police spray water canon at them during a protest over proposed tax hikes in a finance bill in downtown Nairobi, Kenya Tuesday, June. 25, 2024.
a video of officers shooting at protesters, and it urged Ruto to issue an immediate order to "stop the killings." The president instead said the government had "mobilized all resources" to ensure order. On Sunday, Ruto tried to calm the rising public tensions, saying he was proud of the young Kenyans who came out to exercise their democratic duty in earlier protests. The politician who had promoted himself as a "hustler" from humble beginnings said he would engage them on their concerns.
Youth had announced they were uniting to keep the government in check as prices for fuel, food and other necessities have soared. In Nairobi, a regional hub for expatriates and home to a United Nations complex, the inequality among Kenyans has sharpened along with longheld frustrations over state corruption.
Opposition to the finance bill has united a large part of the country, with some explicitly rejecting the tribal divisions that have torn Kenya apart in the past. Some who had passionately supported Ruto felt betrayed.
GM BRINGS IN NEW CEO TO STEER TROUBLED CRUISE ROBOTAXI SERVICE WHILE
By MICHAEL LIEDTKE AP Technology Writer
GENERAL Motors on
WAYMO RAMPS UP IN SAN FRANCISCO
Tuesday named a veteran technology executive with roots in the video game industry to steer its troubled robotaxi service Cruise as it tries to recover from a gruesome collision that triggered the suspension of its California license. Marc Whitten, one of the key engineers behind the Xbox video game console, will take over as Cruise's chief executive nearly nine months after one of the service's robotaxis dragged a jaywalking pedestrian — who had just been struck by
"I fell for his lies. Now I'm out here regretting why I voted for him," youth Oscar Saina told The Associated Press last week As throngs of protesters rushed through the streets Tuesday, defiance emerged elsewhere in the country — including in the town where the president was, Naivasha, as protesters chanted "Ruto must go."
Protesters tried to storm the State House in the western city of Nakuru, a witness said. There were clashes in the western lakeside city of Kisumu. The governor of Mombasa, Kenya's second largest city, joined protesters outside his office and expressed his support for them.
Protesters burned ruling party offices in Embu in central Kenya, the Nation newspaper reported. Citizen TV showed footage from Nyeri in central Kenya with police confronting protesters in the smoking streets. A national gathering of Catholic bishops urged police not to attack protesters and pleaded with the government to listen to citizens' pain over the "unwarranted" taxes, saying "the country is bleeding ... families are immensely suffering."
a vehicle driven by a human — across a darkened street in San Francisco before coming to a stop.
That early October 2023 incident prompted California regulators to slam the brakes on Cruise's robotaxis in San Francisco. It had previously giving the driverless vehicles approval to charge for rides throughout the second densest city in the U.S., despite objections of local government officials who cited flaws in the autonomous technology.
General Motors, which had hoped Cruise would be generating $1 billion in annual revenue by 2025, has since scaled back its
massive investments in the robotaxi service. The cutbacks resulted in 900 workers being laid off j ust weeks after Cruise cofounder and former CEO Kyle Vogt resigned from his job in the aftermath of crash that sent the pedestrian to the hospital.
The arrival of new leadership at Cruise came on the same day rival robotaxi service Waymo disclosed its driverless vehicles are ready to start picking up anyone in San Francisco who wants ride within the city. Waymo had been only accepting requests from riders selected from a waiting list that had grown to 300,000 people.
It's the second major city where Waymo's robotaxis are open to all comers, joining Phoenix, where the driverless vehicles have been giving rides for several years. Although Waymo's vehicles so far haven't been
involved in any collisions like the one that sidelined Cruise, the company recently issued a voluntary recall that required delivering a software update throughout its fleet after one of its robotaxis hit a telephone pole in Phoenix. Whitten, who also has worked at Amazon and Sonos, will be taking over a robotaxi service facing far more daunting challenges. General Motors earlier this year disclosed that the U.S. Justice Department has opened an inquiry into Cruise's handling of the October crash in San Francisco. California regulators also fined Cruise $112,000 for its response to that collision.
In a statement, Whitten said he believes Cruise can still make transportation safer than it has been with humans behind the wheel of cars.
"It is an opportunity of a lifetime to be part of this transformation," Whitten said. "The team at Cruise has built world-class technology, and I look forward to working with them to help bring this critical mission to life."
