By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
CUSTOMS top official yesterday revealed that unscrupulous importers pocketed monies provided by clients to pay Excise Tax on imported vehicles in a scheme that abused Dorian-related tax breaks.
Ralph Munroe, the agency’s comptroller, yesterday confirmed that 30 high-end vehicles have been seized in New Providence and two other islands as part of a probe into irregularities involving their importation under the Special Economic Recovery Zone (SERZ) Order that was intended to help Dorian-devastated residents and businesses in Abaco and Grand Bahama rebuild their lives.
He added that additional duty totalling $435,889.07 has been collected from owners of the seized vehicles, with only four still remaining in
$30m Andros
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Customs’ custody. These have an outstanding balance of $200,000.02 owing in Excise Tax to the Public Treasury.
Mr Munroe said Customs was “satisfied” that, in most instances, the vehicle owners did not know their autos were imported using the SERZ Order tax concessions. Most had used the services of agents and importers clear the vehicles into The Bahamas, and were able to present proof they had paid the full price to agents inclusive of the necessary Excise Tax.
“We were satisfied, in most instances, that many of the owners had no knowledge that their vehicles were imported under concessions as they were able to provide proof of payment in full to the agent for the payment of all costs involved in the delivery of their vehicle, which included full revenue payment,” Mr Munroe said.
“While our investigation continues into possible actions against the agents involved, the owners themselves in several cases have intimated
that they would be pursuing legal remedies for the refund of their money that was provided to their agents for the payment of Customs revenue.
“Where it was established that there was no culpability on the part of the owner, the outstanding revenue was collected on the vehicle and they were subsequently released.” Mr Munroe spoke out after the scheme, and evasion/loss of taxes, was exposed in the House of Assembly by former prime minster, Dr Hubert Minnis.
The Killarney MP told Tribune Business on Thursday that the Government has lost more than $1m in Excise Tax revenues on high-end vehicles through persons abusing tax breaks designed to aid postDorian recovery.
Tabling documents in the House of Assembly to back his allegations, he added that automobiles were being brought in Excise Tax and
renewable project bids to tackle casuarina invasion
A $30M Andros renewable project will “simultaneously” seek to solve the island’s casuarina pine tree invasion by incorporating biomass into its energy mix, a Cabinet minister revealed yesterday.
Leon Lundy, minister of state in the Prime Minister’s Office, told the
Andros Business Outlook conference that the firm recently selected by the Government to provide Andros with renewable energy solutions will cut down the casuarinas and use them to feed its biomass-toenergy engines.
The central and south Andros MP added that Providence Advisors, the Bahamian investment house headed by Kenwood Kerr, will install an island-wide network where
biomass, solar and other renewable forms have a dominant 65-75 percent majority share of the energy mix. The 25-35 percent balance will come from clean fuels such as propane gas or liquefied natural gas (LNG).
Mr Kerr, whose firm won the competitive bid for Andros as part of the Government’s Family Island
Andros resort to expand and become ‘big enough’
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
AN ANDROS resort owner yesterday unveiled plans to expand his second property by adding a boutique hotel and residential real estate, adding: “It’s very difficult to make 20 rooms work.”
Brian Hew told the Andros Business Outlook conference that his ambition is to make the Andros Lighthouse Yacht Club, acquired several years ago from the Government-owned Hotel Corporation, into a resort that is “big enough but not too big” through a build-out designed to give it critical mass and “longevity”.
“It’s very difficult to make a 20-room hotel work; very difficult,” Mr Hew said. “It’s not big enough, and not small enough. Our plans are to expand to try and make it big enough but not too big.
“Our plans are to improve the marina, make it a world-class marina, and some three phases with it. There will be a boutique hotel, probably a flag carrier, and then a residential real estate part of it to give it the support and longevity. That’s what we’re planning on doing.”
Mr Hew, who is also Kamalame Cay’s principal, gave no details on the timing of such phased
SEE PAGE A19
By NEIL HARTNELL
BAHA MAR’S original developer has accused the resort’s Chinese contractor of trying to rehash failed legal arguments as he dismissed its assertion that the project went “only $68m” over budget.
Sarkis Izmirlian and his BML Properties vehicle, in late Wednesday responses to China Construction America’s (CCA) last-ditch bid to slash their damages claim by $830m, argued that the state-owned contractor’s claims about the project’s cost were part of a legal filing “rife with
unsupported and, in some instances, false assertions”. CCA, in seeking a court order blocking Baha Mar’s original developer from recovering the $830m in
‘Hazardous’: Western Air halts flights to New Bight
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A MAJOR Bahamian airline has suspended flights to Cat Island’s New Bight airport due to the “hazardous state” of a runway that has previously damaged aircraft and prevented yesterday’s scheduled take-off.
Western Air, in a widely-circulated notice posted to its Facebook page, said New Bight’s runway has “deteriorated” to such an extent that it is no longer safe for jet aircraft because multiple pieces of broken asphalt are in danger of being “ingested” by their engines.
The move, which comes amid a planned $18m overhaul of New Bight’s airport that includes runway upgrades, will - temporarily at least - threaten to undermine the flow of tourists, commerce and freight to Prime Minister Philip Davis KC’s constituency as well as impact travel for residents. It is unclear if any other airlines are set to follow Western Air’s lead, but the destination has previously struggled to attract major airlift.
In a notice to passengers, dated yesterday and headlined “Cat Island flight service suspended due to unsafe runway conditions, Western Air wrote that its Flight 401 - which was due to take-off from New Bight yesterday with passengers - was prevented from doing so by a runway that now features “large potholes, severely uneven surfaces and loose debris”.
The Bahamian carrier said: “Due to unsafe runway conditions, flights to and from New Bight, Cat Island have been temporarily suspended until adequate repair on the runway has been completed. While our flight crews have carefully navigated the rough conditions
LEON LUNDY
DR KENNETH ROMER
BDB'S $30M RECAPITALISATION TO UNLOCK $20K MSME GRANTS
By FAY SIMMONS
THE deputy prime minister last night said the Tourism Development Centre (TDC) will partner with the Bahamas Development Bank (BDB) to offer $20,000 grants to micro, small and medium-sized enterprises.
Chester Cooper, also minister of tourism, investments and aviation, said: “As this fiscal year closes, and the new one rings in, the TDC’s new fiscal year offer is partnership with
the Bahamas Development Bank and we are offering a $20,000 grant to micro, small and medium-sized enterprises (MSMEs).”
The financing will be provided via the BDB's recent $30m recapitalisation by the African Export–Import Bank (Afreximbank), with the funds to be targeted at assisting MSMEs in multiple sectors across the Bahamas.
Mr Cooper said that, in the 2023-2024 Budget, the Davis administration implemented a $2 tourism development levy on every passenger entering The Bahamas. These funds will be allocated to the Tourism
Development Fund (TDF), which will be used by the TDC to assist entrepreneurs in the tourism space.
He said: “The Government of The Bahamas levied $2 per passenger on every tourist coming into the country. In fact, every passenger leaving The Bahamas pays this $2 for tourism enhancement. And this goes into the Tourism Development Fund.
"And the Tourism Development Fund is designed to enhance the overall product of our country, which includes the development of businesses, because the chief complaint from tourists coming into The
Bahamas is not enough to see, not enough to do and not enough to buy. So the TDC, with the TDF, is going to work with you to ensure that we help to advance many new products and services in The Bahamas.”
Nicholas Higgs, the BDB's managing director, said the partnership with the TDC is "momentous" as it will assist creative artisans and entrepreneurs in the ‘orange economy’.
He added: “The Bahamas Development Bank last week signed a $30m facility, through the Ministry of Finance, from the African Export-Import Bank for a $30m recapitalisation. This
funding is entirely to be utilised to develop small, medium and large businesses throughout The Bahamas. This is through all industries to all sectors.
“This partnership with TDC is a momentous occasion because of tourism’s value that it brings to the country, and how the orange economy is structured. And so we look forward to working alongside you. We look forward to your applications. We look forward to working with you and developing you.”
Ian Ferguson, the TDC's executive director and chief executive,
Gov't 'reviewing' armed officer use on tax checks
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
THE Prime Minister's spokesperson yesterday said the use of heavilyarmed police and Defence Force officers in carrying out tax compliance checks at business premises is under review.
Keishla Adderley, speaking at the Prime Minister’s
Office's weekly media briefing, maintained that the Revenue Enhancement Task Force "has a job to do" and that the presence of armed officers was necessary to protect revenue officials.
She said: “It was an episode in the news recently, which had to do with what one business considered an overbearing show of force by the Revenue Task Force, which is assigned to assess
what's happening within businesses.
“I can say that procedure is currently being reviewed. Let me hasten to say that obviously the Task Force has a job to do in its assessment. The security is a part of what is being considered, even though that business may have considered it overbearing. But, going forward, again, it is being reviewed, and that show of force is only expected to be
shown if there is a need, if that is warranted.”
On Tuesday, Brent Burrows II, CBS Bahamas’ vice-president of retail and sales, wrote in a widelycirculated Facebook post that Monday’s surprise visit by the Government’s ‘Revenue Enhancement Task Force’ was “an eyeopening 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 ten-strong 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,
said it is "committed" to ensuring that Bahamian tourism entrepreneurs are supported and empowered to take advantage of the opportunities available.
He said: “You're the creators, you're the innovators, you are the openers of new markets. You improve our communities, you are the force that fuels our collective success. It is the entrepreneurship in our country that drives economic growth. We believe that we know that the research proves that to us. “Now is the time for us to plan. Now is the time for
at least two of whom are armed with machine guns. Opposition Leader Michael Pintard accused the Davis administration of "weaponising" government agencies against business owners.
He questioned why the Government was choosing to go into businesses that do not have a history of violating tax compliance with armed officers, and said he was "glad" the business community has decided to fight back against the tactic after owners complained publicly about the inspections.
By NEIL HARTNELL Tribune Business Editor
THE Ministry of Tourism's top official yesterday said The Bahamas is "firing on all cylinders" with the 4.8m total visitors for 2024's first five months beating last year's record pace.
Latia Duncombe, the tourism director-general, told the Andros Business Outlook conference that The Bahamas received some 821,334 air or higheryielding stopover visitors for the five months to endMay with cruise passengers just shy of four million.
"For the period January to May this year, the islands of The Bahamas welcomed 4.8m visitors to our shores," she said. "In 2019, we celebrated. It was a banner year: 7.2m. We hit the roof. We were excited."
Recalling how Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, had set a target to attract eight million visitors in 2023, Mrs Duncombe added: "We knocked it out of the park. We delivered collectively a target of 9.65m visitors to our shores in 2023. "And 2024 is exceeding those numbers. We're
really delighted about how this year is shaping up. It has to be all systems go; we are firing on all cylinders."
Earlier, Leon Lundy, minister of state in the Prime Minister's Officer, said visitor arrivals to Andros were some 85 percent ahead of the last pre-COVID year in 2019.
"Andros has seen a steady increase in visitor arrivals over the past decade," the central and south Andros MP said. "According to recent statistics, the island welcomed over 17,000 tourists in 2023, a 10 percent increase over the previous year in 2022.
"When compared to the pre-pandemic levels of 2019, we saw an almost 85 percent increase last year from just over 9,000 visitors in 2019 to over 17,000 in 2023. This influx was predominantly from the US."
Mr Lundy said data from the Ministry of Tourism, Investments and Aviation showed that most US visitors to Andros came from the states of Florida, New York, Texas and Ohio. As for Canada, Ontario and Quebec are the island's most important visitor source markets.
March remains the strongest tourism month for Andros, and Mr Lundy added: "This has been the trend for the past 20 years, from 2003 to 2023. The primary reason tourists chose to travel to Andros was for vacation followed by weddings and honeymoons. We see the average length of stay is six days."
The minister questioned, though, whether Andros has sufficient wedding planners, musicians, disc jockeys (DJs), florists, hair stylists, make-up artists and transportation providers to adequately
service the visitor market it is attracting.
Meanwhile, Mr Lundy said data provided by the Government's public procurement digital platform, Go Bonfire, showed that it was delivering "tangible benefits" including savings of $16.5m to Bahamian taxpayers on contract awards through May 2024. Some 6,377 vendors were registered with the portal through which some 4,177 bids, tenders and procurement opportunities have been offered.
‘Hazardous’: Western Air halts flights to New Bight FROM PAGE A24
have carefully navigated the rough conditions of the New Bight runway for years, in recent days the New Bight runway has deteriorated to a hazardous state with large potholes, severely uneven surfaces and loose debris which can be ingested by jet engines.
“The runway in its current state is no longer suitable for the operation of jet aircrafts, such as the ERJ 145 which we operate, mainly due to the broken pieces of asphalt scattered on the runway. These conditions have already resulted in previous damage to an aircraft earlier this month and prevented the departure of today’s Flight 401 from Cat Island with passengers.”
Dr Kenneth Romer, the Government’s director of aviation, last night told Tribune Business by messaged reply that moves “to immediately remedy” the situation were afoot at the Airport Authority which owns New Bight airport.
“I am advised that comprehensive options to immediately remedy, mitigate and eliminate this situation are presently being mobilised,” he said. Dr Romer referred this newspaper to Peter Rutherford, the Airport Authority’s managing director, who did not reply to its message before press time last night.
In a posting on Western Air’s Facebook page, Ruby Russell Brown wrote: “I was on that flight today. I applaud the pilots on a job well done for bringing down the plane in such condition. It was as if we were in the movies in a race car ducking bullets. This is disgraceful. No aircraft should be allowed to land on that strip in such condition. We don’t have no medical facility to accommodate mishaps.”
Other postings agreed, one saying: “Better safe than sorry. Do what is best.” Western Air, meanwhile, acknowledging the “great inconvenience” its temporary suspension will cause tourists and local travellers alike, said: “Safety must be our first priority.
“We have been in continuous contact with representatives of the Airport Authority who have advised that they are working on a temporary solution for the runway. We are standing by ready to resume flights as soon as it is possible, as we are committed to fulfilling our daily
flight schedule into Cat Island. Passengers are being contacted with options to reaccommodate or refund, and will be given updates.”
Western Air’s New Bight move came as multiple airlines voiced concern about the condition of the runways at key Andros airports, noting that some are “World War Two in origin and World War Two was a long time ago”.
Mannix Cargill, Western Air’s network administrator, told the Andros Business Outlook: “The Congo Town airport and the San Andros airport, which are the two airports we operate out of, I think they could use a major overhaul.
“It is difficult operating a larger aircraft on a short runway because now you have to work that aircraft a whole lot harder, landing and take-off. When you land, you have to apply the brakes and reverse throttle in order to stop.
“I don’t know if you have been to Congo Town recently, but it seems the runway is not smooth. There’s bumps along the way coming to take-off and land. Operating a jet aircraft, maintenance can be extremely costly if the runway is not in good condition.”
Mr Cargill was backed by Captain Stuart Hanley, owner and chief executive of Aztec Airways, who told the same conference: “I agree with everything he said. The runways are getting worn out. Some of these runways are World War II in origin and World War II was a long time ago. They do need some attention; the terminals something similar.”
The Andros-related concerns did not end there. Elizabeth Bain, of the Mangrove Cay Club, gave a description of that destination’s runway that was very similar to the conditions described by Western Air at New Bight.
“I do appreciate the awareness that we have issues with our runway. However, it’s not flooding,” Ms Bain said of Mangrove Cay’s airport. “The runway is deteriorating. There are holes in it. There are things growing up out of the holes. That creates wear and tear on an aircraft. In fact, I had a pilot tell me he will not land there again.
“We do a lot of our arrivals through private aircraft.
A lot. I attribute that to the clientele we target in our business. It’s absolutely critical that we have the
infrastructure support we need to operate. Without a runway, without Customs, which is another issue which we have been told is coming, coming, coming.
“We’ve been having that maybe for 20 years; it’s coming, coming, coming. We need Customs, we need a runway. The terminal is actually of lesser importance. That building, as long as there’s housing for Customs, that building is probably acceptable. It’s great it’s in the Budget.. What we need to know is how and when.”
Western Air’s decision to suspend flights to New Bight, and the concerns over Andros runways, highlight why the Government is urgently moving to upgrade, overhaul and transform airports throughout The Bahamas using private capital and partners. It simply does not have the means to finance itself the $263m needs of just 14 of the 29 airports it holds via the Airport Authority.
Dr Romer in May 2023 pledged that Cat Island was “going to get the whole hog” when it comes to airport, roads and utilities upgrades and investments. He added that the New Bight International Airport’s runway will be moved further south and extended in an $18m overhaul as part of the 14 Family Island airport private-public partnerships (PPPs).
Revealing that the proposed 12,000 square foot terminal facility will also get a new control tower, fire station and maintenance facilities, as well as a 102-space parking lot, he reiterated previous assertions that New Bight will become “the regional model and trend setter when it comes to sustainable airports”.
Dr Romer said: “Cat Island, you’re going to get, like mama says, you’re going to get the whole hog in Cat Island. It’s coming sooner rather than later. As we like to say in The Bahamas, it’s coming soon directly...... It’s for the future generations. Cat Island, for a long time, has been crying for airport infrastructure in Arthur’s Town and New Bight.” However, he also acknowledged the poor condition of the existing runway. “We landed yesterday and I prayed for the plane,” Dr Romer revealed, adding that the improvements to both airports will address “the risk of breaking up those planes every time they land”.
$30m Andros renewable project bids to tackle casuarina invasion
renewable energy tender, yesterday declined to comment when contacted by Tribune Business on the basis that a power purchase agreement (PPA) has yet to be agreed and signed with the Davis administration.
Besides stipulating the price at which Providence Advisors will sell the energy it produces to Bahamas Power & Light (BPL), the PPA will also govern other aspects of the two sides’ relationship such as the duration of the agreement.
This indicates that work remains to be done to seal not only Andros but all the other New Providence and Family Island renewable energy deals with the selected preferred bidders.
Mr Lundy, meanwhile, said Providence Advisors will be tasked with designing, building, operating and maintaining a “renewable energy installation for the entire island of Andros” that is able to meet its 5 mega watt (MW)m generation demand.
“Providence Advisors is a 100 percent Bahamianowned company, and it has committed to securing and providing capital in an amount totalling over
$30m for this project,” the minister disclosed. “This project includes, at a minimum, four installation sites in order to meet the power requirements for the entire island, which totals approximately 5 MW of generation demand.
“This future-focused project is set to exceed our goal of reducing Andros’ carbon footprint in the amount of 3,700 tonnes of carbon dioxide per year. The first phase is the deployment of Caterpillar engines to communities such as Driggs Hill and Mangrove Cay.
“These engines can be transported, secured and connected to the grid rapidly. Over time, more and more communities will acquire these containerbased engines. Due to the modular nature of the system, there are portions that can easily be upgraded with new technologies as they become available,” Mr Lundy continued.
“I believe we will have learned a lesson that replacing smaller, more portable units is faster, more environmentally-sensitive and more feasible than dismantling larger fixed infrastructure. The proposed system is to be comprised of 65-75 percent renewables and 25-35
percent propane or LNG engines.”
Mr Lundy added that “solar arrays will be deployed to augment power generation”, while battery energy storage will provide “redundancy in the event of maintenance or poor weather conditions” to ensure there is no disruption in electricity supply and that grid stability is maintained with consistent voltage.
The minister then hailed the deployment of a biomass-to-energy component as “a unique feature” of Providence Advisors’ proposed solution. The Bahamian financial provider is a major investor in the New Providence Ecology Park, the former landfill on Tonique Williams Highway, which is understood to have been exploring how to generate biomass and other renewable energies from the waste streams.
Mr Lundy, signalling that the Government is eyeing a ‘kill two birds with one stone’ outcome from Andros’ renewable energy solution, revealed that the biomass energy source will be cut down, dismembered casuarina pine trees that are an invasive species in The Bahamas.
He added that their “dense growth pattern and deep root systems” can impact soil composition and structure, while their heavy consumption of water undermines ground water resources and water available to native plants and wildlife.
Mr Lundy also pointed out that casuarina pines “are highly flammable, especially in the dry season. Their oily foliage and dense growth can contribute to the intensity and spread of wildfires threatening ecosystems, property and human lives. The behaviour of the casuarina pine can disrupt native plants and ecological processes, lending to a longterm ecological imbalance.
“Controlling or eradicating casuarina pines once they have become established can be challenging and costly,” the minister added. “Consequently, the proposed energy system will introduce the biomass-toenergy engines that will be fed by the casuarina trees.
“In this case, we have an opportunity to provide renewable energy while simultaneously addressing
the need to manage the spread of the casuarinas. In addition to revolutionising our energy landscape this renewable energy project will serve as a catalyst for integrating business, education, farming and land use into both a cohesive and sustainable framework.”
Mr Lundy said benefits from the project will include “offering cleared land in exchange for feed stock for farmers”, “BAMSI students producing steam which can be used for food processing”, and persons being employed to clear land and remove the casuarina trees.
“This company will collaborate with many industries to enhance our economic landscape,” he added.
Elsewhere on Andros, Mr Lundy said the Water & Sewerage Corporation will initiate “a major project to improve all pumping station locations”. A new pumping station is being eyed for Nicholls Town, while water production at Red Bays will be further expanded. Some 13 tanks, each capable of storing 5,000 gallons, will be deployed at the pumping
stations to improve and increase storage capacity.
“Other major projects for 2024 will include a new Nicholls Town pump house, a BAMSI water supply installation and, in Mangrove Cay, the primary water main has been riven with breakages and leakages which negatively affect the levels of service provided to the residents,” Mr Lundy said.
“A loan provided by the Caribbean Development Bank involves the replacement of 11 miles of this major water main on Mangrove Cay. The project has already been tendered and bids have been received, and final approval is pending from the Government and the bank. We await the final decision on the awarding of the contract and starting of the works beginning immediately.” The Inter-American Development Bank (IDB) has also provided a nonrefundable grant to the Water & Sewerage Corporation for a project that will solarise and provide renewable power to the Bluff well field.
equity capital it contributed to the development, alleged that cost overruns on the Cable Beach mega resort only totalled $68m compared to the initial $1.98bn construction budget.
And, while it had received $700m from the China Export-Import Bank, the project’s financier and lender, to complete Baha Mar following Mr Izmirlian’s ouster as the resort’s developer, the Chinese contractor has asserted in other legal filings that some $200m of this sum was used to pay debts and liabilities owed to Bahamian sub-contractors and vendors.
However, Mr Izmirlian and BML Properties countered: “CCA asserts, without any evidentiary support whatsoever in the record, that it finished the project ‘at only $68m’ over budget, failing to acknowledge the unrebutted evidence that CCA overbilled BML Properties and was overfunded throughout the project, or that it was paid an additional $700m to complete the project.”
CCA, which has hired new US attorneys after a series of legal reversals in its six-anda-half year court battle with Mr Izmirlian, is now 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, and is also seeking to exclude the $830m equity contribution that Mr Izmirlian and his family made to Baha Mar from being used as evidence at trial or included in any damages claim.
However, Mr Izmirlian and BML Properties are arguing that, rather than seeking to exclude evidence, CCA and its new attorneys are employing “thinly-veiled motions for partial summary judgment” using arguments that should have been raised
earlier with the New York State Supreme Court.
“CCA could have presented these new and misguided legal theories over a year ago. The court should deny the motions as untimely and successive summary judgment motions,” Baha Mar’s original developer alleged. “
“In addition, CCA’s motions lack merit. The first motion is premised on the false notion that, as a matter of law, BML Properties is not entitled to recover the financial contributions it lost as a direct consequence of CCA’s fraud and breach of contract..... BML Properties is seeking the return of the cash value of its ‘“entire investment’ that it ‘lost because of the fraud’ - the standard measure of fraud damages.
“BML Properties’ out-ofpocket damages comprise the return of the value of the assets BML Properties contributed to the Baha Mar project - an appraised value that the parties agreed to in their contract. These are direct, not consequential, damages. BML Properties seeks the return of what it initially contributed and then lost as a direct result of CCA’s breach, not lost profits or collateral business opportunities.”
Mr Izmirlian and his US legal team argued that CCA was “trying to improperly re-use its lost profits damages arguments”, with which it had succeeded at the appeals court level, to now knock-out and exclude something entirely different - the loss of the original developer’s equity contribution to the project.
“This case is about CCA’s massive fraud and breached promises to its former partner, BML Properties,” Mr Izmirlian and his attorneys argued. “CCA was the general contractor and construction manager, as well as BML Properties’ purported ‘co-investor’ for the multi-billion-dollar Baha Mar resort and casino in The Bahamas.
“BML Properties was the majority shareholder and day-to-day manager of the project. CCA promised BML Properties that its representatives managing the project would ‘at all times act in the best interests’ of the project. Instead, CCA’s representatives withheld material information from and made material misrepresentations to BML Properties, and acted to deliberately harm Baha Mar and BML Properties in order to advantage CCA.
“BML Properties seeks $845m in out-of-pocket damages from CCA, comprising $745m in tangible and intangible assets including land, leased facilities, improvements, personal property, contracts, approvals, hotel assets, intellectual property, personal property and casino operations and a license invested in the project in 2010; $85m in cash invested in the project in 2010; and $15m contributed to the project in 2015.
“Although CCA nowand for the first time - attacks BML Properties’ expert’s calculation of these damages as ‘conclusory’, the parties contemporaneously agreed on the $745m valuation for BML Properties’ non-cash contribution, which was confirmed by an appraisal and memorialised in numerous signed writings.”
Mr Izmirlian further argued that Baha Mar’s “liquidity crisis” and financial woes were caused by the Chinese contractor’s “fraud and misconduct” in failing to complete the project by the March 27, 2015, deadline, “then finagled the [Chapter 11] bankruptcy into a Bahamian liquidation where BML Properties lost everything”.
“This case is about how CCA wrongfully terminated that equity and control with its fraud and egregious contract breaches, causing BML Properties’ total loss,” the original developer added.
“BML Properties lost, and did not recoup, its entire $845m investment - which was wasted by CCA’s breach - and has been deprived of the benefits of its investment by CCA.”
VAT-free even though the blanket, all-encompassing SERZ Order facilitating such relief had expired in December 2022.
The Davis administration is still providing concessions on a case-by-case basis to persons judged as requiring assistance to rebuild after the devastating Category Five hurricane, but Dr Minnis asserted that highend vehicles - including brands such as Mercedes, BMW, Lexus and Land Rover - had been imported under the SERZ Order and then illegally shipped to islands not struck by Dorian.
Documents tabled by the former prime minister in the House list 41 imported vehicles upon which $1.008m in total revenues due to the Public Treasury could have been evaded. Dr Minnis added that many of the highend vehicles imported via abuse of the Dorian SERZ Order have already been licensed by the Road Traffic
Department and have the necessary plates. Mr Munroe, though, maintained that while some unscrupulous persons had exploited the SERZ Order to evade paying due taxes, the majority of individuals that used the concessions were compliant with its requirements.
He said: “While there were persons who sought to circumvent the payment of revenue by illegitimate means, we ought not to allow that to overshadow the fact that by far the vast majority of persons who imported vehicles under the SERZ Order were in full compliance with import requirements.”
Mr Munroe added that some people using the SERZ orders got approval before they expired but were not able to purchase a vehicle for several years later as they were financially constrained in recovering from Hurricane Dorian.
The Customs chief warned Bahamians to ensure any agent or individual importing a vehicle
on their behalf presents an original copy of the Customs declaration and payment receipt. He said: “I would wish to provide this word of caution to all members of the public who seek to engage the services of an agent or other person in the acquisition of a vehicle from abroad or from someone locally, if I may add, especially a high end vehicle.
“Please ensure that the agent or broker provide you with an original copy of the Customs declaration and the Customs payment receipt which will reflect what they have paid.” Dr Minnis previously said the scale of the abuse and tax avoidance was likely greater than detailed in the documents he had obtained as cheaper vehicles were also likely involved.
“Cars are being brought in through Abaco and Grand Bahama, and some of them are coming directly here [New Providence] under the SERZ Order, which is illegal,” Dr Minnis said. “Customs is signing on it. The SERZ Order
stopped over a year ago but they are still bringing them in. It’s still happening.... $1.08m is the duty on these high-end cars that has not been paid. That does not include the lower end cars.
“Many of these cars are already licensed. The documents I tabled show these cars have licence plates now. To get licence plates they have to show that duty has been paid, and there are some Customs officers on this list as having received cars after the SERZ Order expired.
“If a vehicle is licensed, it must be stamped by Customs officers and you have to present the vehicle identification slip. Officers have to stamp the vehicle identification slip.” Dr Minnis also challenged whether Dorian-related tax breaks were being abused in the importation of other goods such as expensive household appliances, furnishings and building materials.
Mr Munroe, meanwhile, said the Government’s outsourcing of Lynden Pindling International Airport’s (LPIA) air freight terminal to JDL will not undermine Customs’ ability
BDB’s
to do its job. He explained that many ports of entry, such as the Nassau Cruise Port and the Arawak Cay port, are run by private firms but Customs still continues to fulfil its mandate at those sites. He added: “We have Nassau Cruise Port, which is an area of Customs from time immemorial, and today it’s basically a private area, for the most part. It is not run by the Government of the Bahamas. Customs happens to still be there like Immigration, but its run by the Nassau Cruise Port.
“You go to Arawak Cay, you’ve got Arawak Port Development Company. One time it was just Customs there. Now you go there, we don’t run it. We basically are a tenant; we do the work.
“No different from what we’ve got at Lynden Pindling International Airport, we’ve got US customs there, Bahamian customs there. If you go into the departure section for the domestic area we are not there. We are in our area. We don’t run the entire airport; we just run Customs.”
Mr Munroe maintained that a private firm conducting cargo management at LPIA is no different from doing it at a sea port, and Customs will still be “in charge” of collecting revenue on behalf of the Government.
He said: “If you go to air freight, again, it is no different from a seaport. You’ve got an airport. It may be in the Government’s view that it’s better to have it run by some private concern.
“We’re down to Odyssey, which is private. We over at Nassau Jet Centre, that’s private. They do what they have to do and we do what we have to do. I don’t think it in any way impedes on what Customs is doing no more than what it impedes on what we’re doing in Arawak Cay or Prince George Wharf. “Customs is still in charge of what it’s been doing. And the same thing up in Grand Bahama. If you go to Freeport Container Port, it’s Freeport’s container port, but Customs is there. We only deal with what we are supposed to be dealing with.”
$30m recapitalisation to unlock $20k MSME grants FROM PAGE A23
us to learn and build capacity. Now is the time for us to innovate, now’s the time for us to create, now it is the time for us to elevate.”
Mr Ferguson added that the TDC is focused on solutions, and encouraged entrepreneurs to commit themselves to “service excellence”’ and focus on providing authentically
Bahamian products and services.
Mr Ferguson said industry operators must work on providing more products and experiences for visitors to enjoy while in The Bahamas, so as to encourage more passengers to leave cruise ships and capitalise on that potential revenue.
He said: “We must admit that sometimes we fail to exceed or even meet
the expectations that our visitors have. The issue, coupled with the vexing economic leakage, results in fewer economic benefits going into the hands of hardworking Bahamian entrepreneurs.
“We must ensure that our visitors get what they expect from a high value vacation destination, and that’s what we are. We must create the environment where Bahamian entrepreneurs retain a greater share of the revenue that we generate. Shame on us for allowing, of that $6bn-plus, more than $4.5bn of it to leave our country.”
Andros resort to expand and become ‘big enough’
expansion; the likely value of the investment; or how many construction and additional full-time jobs will likely be created as a result.
The resort principal said the majority of the Andros Lighthouse Yacht Club’s staff had trained at Kamalame Cay before moving south to his more recently-acquired second property. Asked how his properties have performed year-to-date, Mr Hew replied: “That’s a good question. We’re more in terms of flat; flat over last year.
“But I believe that is because Europe has really opened up. It’s jammed... Just right after COVID they were coming to The Bahamas more, but now they’re going to further
places. That’s my clientele anyway.”
Juliet Newbold, managing director of Andros Island Bonefishing Club, which caters to a niche angler client base, said of her property: “Since January the room occupancy count has been somewhere around 620 room nights. It looks very promising for the fall. Yes, it’s been good so far.” And Cheryl Bastian, owner of Swain’s Cay Lodge, said Andros continues to benefit from its status as “the bonefishing capital of the world”. She said: “It was a pretty slow January and February, but we had a really good uptick in March and April. May went down slow, but April was one of our highest on record, beating even 2019. Overall, it panned out evenly.”
Ms Newbold, though, urged the Government to extend tax exemptions granted to the resort industry to bring in essential, high-cost goods as these often expired before properties can afford to use them. Branding Bahamas Power & Light (BPL) bills as “a killer”, she also bemoaned the lack of direct air connectivity between Andros and Nassau especially at weekends.
“I think one of the major challenges we face as hoteliers, and I’m sure a lot of other persons in Andros, business owners, is air travel into Nassau, particularly from Nassau to Fresh Creek,” the Andros Island Bonefishing Club principal said. “I know we have Makers Air from Fort Lauderdale, but when it comes to air travel from Nassau, Le-Air and Titan Air, on
the weekend we have a problem.”
Titan does not fly on Saturday, while Le-Air provides no service on Sunday. “That presents a challenge for visitors taking the route from Nassau to Fresh Creek,” Ms Newbold said. “If we can have some flights, if we can lobby for more flights, that would be an advantage for us hoteliers and business owners across the land.
“Second, the high cost of energy. There’s been lots of talk from the MP [Leon Lundy] about lowering the cost of energy. BPL, it’s a killer. There has to be something done to lower the cost of operating for us business owners. Any relief in that area will help us.
“The high cost of imported goods. Everything we need we have to import from Nassau and the
Poles seek safety in gold investments during troubled times across their eastern borders
By VANESSA GERA Associated Press
WHEN COVID-19 hit, long lines formed outside shops selling gold in Poland. Then came Russia's full-scale invasion of Ukraine, triggering another rush for gold.
Piotr Kozik, the manager of a Warsaw shop selling gold bars and coins produced by the Mint of Poland, remembers how the day of Russia's invasion, Feb. 24, 2022, was Fat Thursday, when Poles gorge themselves on paczki, jamfilled donuts.
"On that day there were longer lines for gold at our store than for donuts at the bakery," Kozik said. Poles were shaken by the war across the border, which sent refugees fleeing to their country, and to many gold seemed to offer financial and psychological security. Today those lines are gone, but demand for gold remains steady as the war rages on into its third year. Adding to unease is a migration crisis at Poland's border with Belarus, which Polish authorities view being engineered by the
N O T I C E
SEAGRAPE Advisory Ltd.
(In Voluntary Liquidation)
Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, SEAGRAPE Advisory Ltd. is in dissolution as of June 20, 2024
Lighthouse Corporate Services Ltd. with address at Unit #3, Pineapple Grove, Western Road, Nassau, The Bahamas is the Liquidator.
L I Q U I D A T O R
N O T I C E GLOBAL ENERGY INVESTMENT LTD.
(In Voluntary Liquidation)
Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, GLOBAL ENERGY INVESTMENT LTD. is in dissolution as of June 24, 2024 International Liquidator Services Ltd. situated at 3rd Floor Whit eld Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.
L
N O T I C E SARACEN ENERGY S.A.
(In Voluntary Liquidation)
Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, SARACEN ENERGY S.A. is in dissolution as of June 24, 2024 International Liquidator Services Ltd. situated Drive, Belize City, Belize is the Liquidator.
L I Q U I D A T O R
US. The high cost of duty on freight; the Government does offer duty exemptions. We apply for it but there’s a [time] limit. They don’t give us an extension of time to get it in,” Ms Newbold explained. “We go through all the work to apply for an exemption and they give you a year to get it in. You have to have a large sum of money sitting there. If they extend the [time] it would help us as business owners.”
Referring to the flats fishing guide certification courses run by the Bahamas Agricultural and Marine Science Institute (BAMSI), Ms Newbold said graduates needed more than just theory before they can take clients out by themselves.
“The guides need more practice,” she explained.
“Even after they are certified we cannot them on
the border or make your family safe if anything will happen," he said.
the boats with clients initially. You have to know the waters, you have to know how to position the boats. They have to go out there and experience a client on the boat.”
Mr Hew added: “I think where we have to invest now is in human resources. Human resources is the most important thing. It’s all about you. I was 38 years-old when I started this thing. I was the youngest guy in the dining room. Now, I’m the oldest guy in the dining room....
“Everybody cannot be a lawyer, everybody cannot be a doctor, but I know people working in the hotel business who are making more money than doctors and lawyers. It’s education, outlook and wanting to be a good host to make the stay more pleasurable.”
governments of Russia and Belarus.
Radoslaw Paklikowski, a 38-year-old entrepreneur in the western Polish city of Wroclaw, began buying gold and silver coins in 2021
and now invests 5% of his assets in precious metals.
"Having real physical gold is important, and by that I don't mean a ton of gold, but an amount that will help you cross
Membership in NATO gives some a feeling of security. Still, many in this region once under Moscow's control worry that if Russia prevails in Ukraine it won't stop there.
While governments beef up defenses and send weapons to Ukraine, regular
people are seeking protection. Some with means have bought homes in Spain and Italy.
Unlike investments in real estate or artwork in Poland, gold, diamonds and silver can be easily moved.
In Poland, gold's allure is intertwined with the enduring trauma of World War II, when it could ensure survival.
European Union leaders agree on top officials who will be the face of world's largest trading bloc
By ELLA JOYNER, SAMUEL PETREQUIN and LORNE COOK Associated Press
EUROPEAN Union leaders signed off on a trio of top appointments for their shared political institutions on Thursday, reinstalling German conservative Ursula von der Leyen as president of the European Commission for another five years.
At the side of von der Leyen, who heads the EU's executive branch, would be two new faces: Antonio Costa of Portugal as European Council president and Estonia's Kaja Kallas as the top diplomat of the world's largest trading bloc.
"Mission Accomplished," outgoing EU Council President Charles Michel told reporters after chairing a summit of the bloc's leaders, as von der Leyen and Kallas accompanied him at a joint a news conference. Costa took part via video-link.
Von der Leyen expressed her gratitude for a shot at a second term of office, saying: "I'm very honored and I'm delighted to share this moment."
Kallas, who as the EU's top diplomat will lead the bloc's foreign and security policy with Russia's war on Ukraine in its third year, noted that "there is war in Europe, also growing instability globally. My aim is definitely to work for the European unity." Both von der Leyen and Kallas should now be approved by European lawmakers. Costa's nomination only needed the leaders' approval, and he will start in his new role in fall.
After the three centrist political families in the European Parliament struck a deal earlier this week, the top jobs package was widely expected to be approved without controversy at the summit in Brussels.
But far-right politicians, emboldened by their strong showing in EU parliament elections earlier this month, slammed it as a stitch-up.
Italian Prime M inister Giorgia Meloni made clear her displeasure at being excluded from preparatory talks with a small group of leaders who divvied up the top jobs. Her nationalist European Conservatives and Reformists group emerged as the third
force in the EU parliament elections earlier this month.
Meloni voted against Portugal's Costa and Estonia's Kallas, two sources close to the discussions told The Associated Press on condition of anonymity. Meloni abstained on von der Leyen for European Commission president, the same sources confirmed. The officials requested anonymity in line with EU practice.
In a post on X, Meloni
said the way that mainstream parties put forward the trio "is wrong in method and substance. I decided not to support it out of respect for the citizens and the indications that came from those citizens during the elections."
Nationalist Hungarian Prime Minister Viktor Orban was the only other major critic of the deal.
"European voters were cheated," he said on Facebook Thursday evening. "We do not support this shameful agreement!" His objections were moot: the package only needed a twothirds majority to pass.
The June 6-9 election saw the EU's legislature shift to the right and dealt major blows to mainstream governing parties in France and Germany, but the three mainstream groups managed to hold a narrow majority of seats.
Costa, a former Portuguese prime minister, hails from the center-left Socialists and Democrats group, which came second. Kallas is prime minister of her tiny Baltic home country. She comes from the pro-business liberal group, which is also home to embattled
ROM left, European Council President Charles Michel, European Commission President Ursula von der Leyen, Estonia’s Prime Minister Kaja Kallas and Belgium’s Prime Minister Alexander De Croo walk together to a media conference at an EU summit in Brussels, early Friday, June 28, 2024. European Union leaders signed off a trio of top appointments for their shared political institutions on Thursday evening, reinstalling German conservative Ursula von der Leyen as president of the European Commission for another five years. At the side of von der Leyen should be two new faces: Antonio Costa of Portugal as European Council President and Estonia’s Kaja Kallas as the top diplomat of the world’s largest trading bloc.
French President Emmanuel Macron and lost seats in the June poll, trailing into fourth place. EU top appointments are supposed to ensure geographic and ideological balance, but ultimately it is the 27 leaders who call the shots - and generally the most powerful among them.
While Costa's appointment is decided by EU leaders alone, both von der Leyen and Kallas will also need to be approved by a majority of lawmakers. With 720 members, the threshold is 361. That vote could happen when the newly constituted European Parliament meets for the first time in July.
The European Council is the body composed of the leaders of the 27 member states.
NOTICE INTERNATIONAL BUSINESS COMPANIES ACT, 2000 LJF HOLDINGS LTD. (IN VOLUNTARY LIQUIDATION)
NOTICE IS HEREBY GIVEN that in accordance with section 138(6) of the International Business Companies Act, 2000, as amended, the winding up and dissolution of LJF HOLDINGS LTD. is complete.
Kim D. Thompson Sole Liquidator
Address: Equity Trust House, Caves Village, West Bay Street P O Box N-10697 Nassau, Bahamas
N O T I C E
Contech Quality & Assurance Limited (In Voluntary Liquidation)
Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act 2000, the above-named Company is in dissolution, which commenced on the 27th day of June, 2024. The Liquidator is Windermere Corporate Management Limited, 200 Sterling Commons, East Building, Harbour Drive, Paradise Island, Bahamas, P.O. Box N-7797, Suite A-084, Nassau, Bahamas.
Uber and Lyft agree to pay drivers $32.50 per hour in Massachusetts settlement
By STEVE LeBLANC Associated Press
DRIVERS for Uber and Lyft will earn a minimum pay standard of $32.50 per hour under a settlement announced Thursday by Massachusetts Attorney General Andrea Campbell, in a deal that also includes a suite of benefits and protections.
The two companies will also be required to pay a combined $175 million to the state to resolve allegations that the companies violated Massachusetts wage and hour laws, a substantial majority of which will be distributed to current and former drivers.
Campbell said the settlement resolves her office's yearslong litigation against the two companies and stops the threat of their attempt to rewrite state employment law by a proposed 2024 ballot initiative. That question would have resulted in drivers receiving inadequate protections and an earnings standard that would not guarantee minimum wage, she said.
"For years, these companies have underpaid their drivers and denied them basic benefits," Campbell said in a written statement.
"Today's agreement holds Uber and Lyft accountable, and provides their drivers, for the very first time in Massachusetts, guaranteed minimum pay, paid sick leave, occupational accident insurance, and health care stipends."
Democratic Gov. Maura Healey said the settlement delivers "historic wages and benefits to right the wrongs
Incorporated under the International Business Companies Act, 2000 of the Commonwealth of The Bahamas registered in the Register of Companies under the registration number 206142 B.
(In Voluntary Liquidation)
Notice is hereby given that the liquidation and the winding up of the Company is complete and the Company has been struck off the Register of Companies maintained by the Registrar General.
Dated this 27th day of June A.D. 2024. ERIK DE PAIVA BUISCHI LIQUIDATOR
of the past and ensure drivers are paid fairly going forward."
In a statement Lyft said the agreement resolves a lawsuit that recently went to trial, and avoids the need for the ballot initiative campaign this November.
"More importantly, it is a major victory in a multiyear campaign by Bay State drivers to secure their right to remain independent, while gaining access to new benefits," the company said.
Uber also released a statement calling the
A PASSERBY walks past a sign offering directions to an Uber and Lyft ride pickup location at an airport, Feb. 9, 2021, in Boston. Drivers for Uber and Lyft will earn a minimum pay standard of $32.50 per hour under a settlement announced, Thursday, June 27, 2024, by Massachusetts Attorney General Andrea Campbell, a deal that also includes a suite of benefits and protections.
agreement "an example of what independent, flexible work with dignity should look like in the 21st century."
"In taking this opportunity, we've resolved historical liabilities by constructing a new operating model that balances both flexibility and benefits," the company said. "This allows both Uber and Massachusetts to move forward in a way that reflects what drivers want and demonstrates to other states what's possible to achieve."
The companies were pushing a ballot question that would classify drivers as independent contractors eligible for some benefits, but Campbell said the settlement stops the threat of the ballot question. A competing ballot question seeks to give drivers the right to unionize in Massachusetts.
Incorporated under the International Business Companies Act, 2000 of the Commonwealth of The Bahamas registered in the Register of Companies under the registration number 203098 B. (In Voluntary Liquidation)
Notice is hereby given that the liquidation and the winding up of the Company is complete and the Company has been struck off the Register of Companies maintained by the Registrar General.
Dated this 27th day of June A.D. 2024. Juvencio Cavalcante Braga LIQUIDATOR
Steven Senne/AP
Photo:
Drivers will now earn one hour of sick day pay for every 30 hours worked, up to a maximum of 40 hours per year. As part of the agreement, Uber and Lyft must update their driver applications so drivers are able to view and claim their sick leave directly in the app. Drivers will also receive a stipend to buy into the state's paid family and medical leave program. Under the deal, Uber and Lyft will also allow drivers to pool together their hours driving for the two companies to obtain access to a health insurance stipend. Anyone who drives for more than 15 hours per week — for either or both companies — will be able to earn a health insurance stipend to pay for a plan on the Massachusetts Health Connector.
Drivers will be eligible for occupational accident insurance paid by the companies for up to $1 million in coverage for work-related injuries.
The agreement also requires the companies to provide drivers with key information — about the length of a trip, the destination and expected earnings — before they are expected to accept a ride.
The companies are barred from discriminating against drivers based on race, religion, national origin, sex, sexual orientation, gender identity, disability or other protected identities — and can't retaliate against drivers who have filed a complaint about the companies with the Attorney General's Office.
The deal also requires the companies to provide drivers in-app chat support with a live person in English, Spanish, Portuguese and French and must provide drivers with information about why they have been deactivated and create an appeals process.
Incorporated under the International Business Companies Act, 2000 of the Commonwealth of The Bahamas registered in the Register of Companies under the registration number 212292 B.
(In Voluntary Liquidation)
Notice is hereby given that the liquidation and the winding up of the Company is complete and the Company has been struck off the Register of Companies maintained by the Registrar General.
Dated this 27th day of June A.D. 2024. ALLAN CHRISTIAN BASSO LIQUIDATOR
Incorporated under the International Business Companies Act, 2000 of the Commonwealth of The Bahamas registered in the Register of Companies under the registration number 205140 B.
(In Voluntary Liquidation)
Notice is hereby given that the liquidation and the winding up of the Company is complete and the Company has been struck off the Register of Companies maintained by the Registrar General.
Dated this 27th day of June A.D. 2024. EDILSON YOSHITO YUHARA LIQUIDATOR
NOTICE
IN THE ESTATE of ALTHEA LEONA FARRINGTON late of #3 Frangipani Avenue, Garden Hills Number Two of the Southern District of the Island of New Providence, one of the Islands of The Commonwealth of The Bahamas, deceased.
Notice is hereby given that all persons having any claim or demands against the above named Estate are required to send their names, addresses and particulars of the same on or before the 8th day of July A.D., 2024, and if required, prove such debts or claims, or in default be excluded from any distribution; after the above date the assets will be distributed having regard only to the proved debts or claims of which the Executors shall then have had Notice.
And Notice is hereby given that all persons indebted to the said Estate are requested to make full settlement on or before the aforementioned date.
MICHAEL A. DEAN & CO., Attorneys for the Executors Alvernia Court, 49A Dowdeswell Street P.O. Box N-3114 Nassau, The Bahamas
