By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Grand Bahama Port Authority (GBPA) yesterday signalled it will resist the Government and URCA’s pressure by setting out its decision timetable for GB Power’s 6.3 percent base rate hike bid.
Freeport’s quasi-governmental authority, in a statement, indicated it has no intention of backing down and giving up what it regards as the regulatory powers handed to it by the city’s founding treaty, the Hawksbill Creek Agreement, as it set the stage for a new and escalating
clash with the authorities in Nassau.
Citing the ongoing legal challenge by GB Power to the Utilities Regulation and Competition Authority’s (URCA) authority to supervise it under the original Electricity Act 2015, the GBPA again asserted that the Hawksbill Creek Agreement takes precedence over the statute laws passed by Parliament.
“As is well known, the GBPA has extensive rights under the Hawksbill Creek Agreement to regulate the Port Area. GBPA maintains that by virtue of the powers vested in it by the Hawksbill Creek Agreement it has
PAGE B4
Eleuthera resident not going home till power woes solved
By NEIL HARTNELL and Fay Simmons Tribune Business Reporter
AN Eleuthera resident yesterday said she is refusing to return to her home island until its power and utility woes are solved having already spent one month living in Nassau.
Mildred Young, a retired civil servant and teacher, told Tribune Business she has remained in the capital since travelling here for July’s Independence Day celebrations with “the whole” of Eleuthera becoming increasingly frustrated over the seeming inability of Bahamas Power & Light (BPL) and the Water & Sewerage Corporation to correct the issue.
Hotel chief ‘not seeing’ repeat of 2023 growth
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Bahamas has “much work to do” in the 2024 second half with the resort industry “not seeing” the growth it enjoyed during the same period in 2023, a senior hotelier warned yesterday.
Robert Sands, the Bahamas Hotel and Tourism Association’s (BHTA) president, told Tribune Business that the drop-off in group visitor business compared to an unusually strong 2023 third quarter was likely playing “a pivotal role” in this year’s softening although he cautioned against writing-off the year’s final six months just yet.
With the industry’s leisure bookings holding steady against the prior year, he reiterated that Bahamian hotels and the wider tourism industry will no longer
• BHTA president: ‘Lot of work to do’ in second half
• ‘Pivotal’ drop-off in group business one factor cited
• Brewery chair: ‘Marginal spend’ fall on cruise rise
enjoy the explosive growth rates enjoyed in the immediate post-COVID years with the industry having “stabilised” following pandemic-related turbulence.
Although providing no figures, Mr Sands told this newspaper it remains to early to determine whether US stock market jitterswhich resulted in a sharp share sell-off earlier this week - will negatively impact tourism and the wider Bahamian economy.
‘No alarm’ over $360m
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A senior banker yesterday asserted there is “no alarm” over the $360m post-COVID increase in Bahamian dollar government bonds due to mature within one year or less.
Gowon Bowe, Clearing Banks Association chairman, told Tribune
Wall Street recovered some of the losses yesterday after improved US labour market data boosted investor confidence. The stock market’s health is key to US consumer spending and travel confidence given that so many Americans have wealth tied up in shares, and pensions/mutual funds that own them, while The Bahamas’ key US northeast visitor market is
short-term bond surge
Business that the major shift in domestic bond maturities over the past four years - while creating increased refinancing and rollover risks for the Governmenthas also forced it to become more disciplined, transparent and accountable with its fiscal management. He spoke out after public debt data for the 2023-2024 full year and fourth quarter, released yesterday by
the Ministry of Finance, revealed that the amount of Bahamas Registered Stock (BRS) bond debt due to mature within five years or less has more than tripled to $1.1bn since the COVID pandemic. In contrast, this number stood at just $297.3m four years earlier at end-June 2020. And the total value of bonds due to be redeemed
Electrical retailer’s failure to short-circuit planning battle
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
AN ELECTRICAL retailer’s bid to short-circuit a planning dispute by obtaining Supreme Court approval to sell the western New Providence property involved has been rejected.
Justice Carla CardStubbs, in a July 16, 2024, verdict refused to grant Henry F. Storr Electric Company’s application to “finalise” the deal it had reached to sell the fiveacre site near Lyford Cay given that the challenge to
its rezoning remained live before the courts. New Providence Development Company, the largest private landowner on the island with extensive holdings in its western district, and its Old Fort Bay Company subsidiary, have brought their appeal against the property’s rezoning from ‘multi-family’ to ‘commercial’ before the Supreme Court after their arguments were rejected by both the Town Planning Committee and the Subdivision and Development Appeal Board.
ROBERT SANDS
DAPHNE DEGREGORYMIAOULIS SEE PAGE B6
GOWON BOWE
Methods to accelerate small business growth
Growth is consistently on the mind of every small business owner. The truth is that scaling your small business effectively and efficiently can be difficult. It requires effort and a smart approach from various parts of your company, including how you manage sales, marketing and finance.
Because you are still a start-up, you may find yourself wearing many hats until you can hire expert employees. Although growing your small business will take time and energy, we pause in this week’s column to share seven strategies you can use to help accelerate business growth.
1. Do Your Research
When you are looking into how to grow your small business you need to do market research. This not only lets you better
FERGUSON
understand your existing customers but also your potential clients. It is important to gain insight into your target market and know what their needs are. That way, you can see how your business grows and change to meet those needs.
This also includes knowing and understanding your leading competitors.
2. Increase Customer Retention
It is not enough to just get new customers for your business. You also need to keep your existing customers coming back. When you increase customer retention, you are building customer loyalty, which can increase sales. Remember that it costs five times as much to get a new customer than it does to keep a current one.
3. Participate in Networking Events
Increasing your brand visibility can help you attract new customers and grow your business. A good way to do this is by attending networking events. Check local professional organisations and do not
be afraid to attend a few events to get the word out about your business. Be intentional in forming strategic partnerships.
4. Practice Corporate Social Responsibility
Many customers want to do business with a company that matches their own values. Corporate social responsibility (CSR) means you recognise the impact your business has on all aspects of the community. Letting the public see what your business is doing to have a positive impact can help its bottom line.
5. Diversify your Product or Service Offerings
You have had success selling your main product or service to customers. After all, that is what made you think of growing your small business. Now, offering different products or
services can help you get new customers. You can do this by identifying opportunities for new products or services and finding different ways to offer your existing products.
6. Expand to New Markets
Franchising your business gives you a chance to increase your customer base. If your business is not franchisable, there are alternatives to franchising such as expanding your business through exporting. Finding exporting opportunities means you can ship your products and services across the globe.
7. Measure what Works and Refine as you go
While there are a variety of strategies you can use to grow your small business, it is important you measure what is working. For
BAHAMAS HOSTS CARIBBEAN REGIONAL MARITIME SUMMIT
THE Bahamas recently hosted a key regional meeting on maritime port control, safety and regulation.
Jobeth Coleby-Davis, minister of energy and transport, and Jacqueline M. Simmons, Bahamas Maritime Authority (BMA) chairman, greeted more than 30 delegates from 20 countries who attended the 29th meeting of the Caribbean Memorandum on Port State Control Committee (CPSCC) summit.
The meeting, which is held annually, was led by CPSCC chairman, Michel Amafo of Suriname, and CPSCC vice-chairman, Joel Walton, from the Cayman Islands They were supported by secretary-general, Jodi Munn-Barrow, and the secretariat.
Port state activities in The Bahamas are a collaborative national effort involving the Bahamas Maritime Authority (BMA), Port Department and the Royal
Bahamas Defence Force (RBDF). The agencies were represented by RBDF commodore, Dr Raymond King; acting port controller, senior commander Berne Wright; assistant port controller, Lonna Bethell; International Ship and Port Security (ISPS) co-ordinator, senior lieutenant Ernestine Cleare; BMA chief executive and managing director, Captain Dwain Hutchinson, and BMA Nassau director, Katie Clarke.
The CPSCC has been responsible for the development of several regional maritime codes. These relate to technical standards, vessel operations and crew certification for non-International Maritime Organisation (IMO) convention ships trading in the Caribbean region, including The Bahamas. This has sought to eliminate sub-standard foreign ships operating within the Caribbean.
example, if you create a customer loyalty programme and find it is not improving customer retention, you may need to change your strategy. Maybe it is getting customer relationship management (CRM) and engaging with your clients on a regular basis, or engaging with them through an e-mail campaign or on social media. The key goal is to remain flexible.
• NB: Ian R Ferguson is a talent management and organisational development consultant, having completed graduate studies with regional and international universities. He has served organisations, both locally and globally, providing relevant solutions to their business growth and development issues. He may be contacted at tcconsultants@ coralwave.com
CPSCC29 leadership team L-R: Joel Walton, CPSCC vice-chairman; LaMarque Drew, BMA Board director; Jacqueline Simmons, chairman, BMA Board of Directors; Jodi Munn-Barrow, CMoU secretary-general; Captain Dwain Hutchinson, BMA chief executive and managing director; Michel Amafo, CPSCC chairman.
Photo:Unseen Media
Multiple agencies involved over natural gas regulation
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
THE responsibilities that different regulatory agencies will have under The Bahamas’ new natural gas regulatory regime were set out at a public consultation hearing held yesterday.
Pablo Gonzales, of Frontier Economics, which developed the new regulatory regime for natural gas in partnership with the Utilities Regulation and Competition Authority (URCA), said the latter will work with other government agencies to ensure its safe arrival, transportation and usage in The Bahamas.
He explained that the Bahamas Maritime Authority (BMA) will undertake inspection, under the port state provisions, of any foreign-flagged ships transporting liquefied natural gas (LNG) in this country’s territorial waters to ensure compliance with international standards. Meanwhile, the Port Department will authorise and oversee ship-to-ship transfers and LNG bunkering to ensure those activities are performed in accordance with the safety requirements outlined in the LNG waterfront safety regulations and the LNG ship-to-ship draft legislation. It will also issue letters of recommendation for proposed LNG facilities.
Merchants seek more warning on Back to School VAT ‘holiday’
By ANNELIA NIXON anixon@tribunemedia.net
MERCHANTS yesterday urged the Government to give better notice of when the annual ‘Back to School’ VAT holiday will start so they and their customers can maximise the benefits.
Nicole Aranah, Lorene’s operations manager, told Tribune Business the Government needs to give more advanced warning to retailers after it was finally confirmed that VAT-free sales of school supplies, computers and related accessories, and clothing, footwear and bags will last for four weeks from August 18 to September 14, 2024. She added that she only found out about the dates yesterday after a friend sent her the flier containing all the details. Ms Aranah described the late notice, issued just ten days before
the VAT ‘holiday’ comes into effect, as “typical” of government. Meanwhile, Atalia Cash, manager of Chapter One Bookstore, said she wanted the dates and other details to be issued earlier in calling for the Government to give at least a month’s notice. Both she and Ms Aranah said it would give their businesses time to prepare.
“The only annoying part is that the Government waits until the last minute to tell you,” Ms Aranah added. “They think that you can just type it into your computer. It’s work. You have to do clothing under this amount, that type of thing. So they need to be a little more organised and send out the dates at the beginning of probably middle of July so people can prepare - so stores can prepare.”
The Department of Environmental Planning and Protection (DEPP) will be responsible for providing Environmental Impact Assessments (EIA) on LNG import facilities and gas pipelines. And the Road Traffic Department will be responsible for issuing commercial drivers licences with hazardous material endorsements and licensing of vehicles carrying LNG.
The Ministry of Works will ensure infrastructure conforms with existing regulations as well as issue permits and inspect transportation of LNG by road. As regulator, URCA will approve all necessary regulations and codes for the natural gas sector in
She explained to Tribune Business that the process of updating retail sales systems to reflect the changed prices and tax is a tedious job and takes time, while stressing that a week’s notice to prepare is not enough.
“It’s not fair on the retailers who have to actually do the work to take the VAT off in the system. They just think: ‘Okay, let’s give VAT free. Okay, we’ll tell them a week before.’ They don’t give any notice. The Government should really say every year we’re going to do this until we tell you we’re not doing it, which of course they should say in writing,” Ms Aranha said.
In past years, customers have also had complaints regarding the Government’s timing. Many argue that it is held too late in the summer and, by the time the VAT ‘holiday’ arrives, stores’ inventory has already been wiped out. Although ms Aranah said Lorene’s still has good stock levels, including school uniforms and under garments, she would not recommend waiting for VAT-free shopping for back-to-school items.
“Our inventory is good and we have had a few
consultation with the other agencies and government departments as appropriate. The regulator will also authorise the construction of LNG import facilities with input from the Port Department, DEPP and Ministry of Works.
URCA will monitor and oversee activities in the sector and issue licences. Operators in the sector can obtain licences to become a gas importer, terminal operator, gas transporter, gas shipper or gas retailer.
The Natural Gas regulatory framework came into effect on June 1 under the Natural Gas Act and, as a requirement, URCA is holding a 30-day consultation period that will close on August 31, 2024.
customers say that they were looking around and we were the only ones with sizes,” she said. “There has been a problem with one supplier this year so I guess everyone is in the same boat for that.
“Me personally, I would not wait. I would just buy
BPL CHIEF STANDS BY BILL DECLINES FOR SMALL USERS
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
BAHAMAS Power & Light’s (BPL) chief operating officer yesterday asserted that low-consumption customers should see their light bills decline following the new rate structure’s July 1 implementation.
Toni Seymour, speaking at the Office of the Prime Minister’s weekly media briefing, Ms Seymour reiterated that customers using less than 200 kilowatt hours of energy per month no longer have to pay BPL’s base rate and are only charged for their portion of the fuel tariff.
As a result, she argued that light bills should fall for those falling below this threshold and who are implementing energy-saving measures. Ms Seymour, though, acknowledged that due to hot summer temperatures some users are consuming more electricity resulting in an increase to their bills.
“The rates have been reduced,” Ms Seymour said. “The new tariff structure is that consumption between
zero to 200 kilowatt hours, there’s no charge; you only pay for fuel; between 201 to 800 is still the $11.95 per kilowatt hour; 800 and above is still the $14.95 per kilowatt hour, and the fuel surcharge is charged over whatever your consumption is.
“So if you’re using below 200 kilowatt hours per month, you’re only paying for the cost of fuel for that usage so the bill should have gone down. However, it is hotter, and if you are not implementing energy saving tips and conservation measures then you may see an increase in your overall consumption and, as a result, an increase in your bill.”
However, what was not mentioned is that the elimination of the base tariff rate for all customers for the first 200 kilowatt hours represents a saving of just around $21-$22 per month, or between $240-$260 per year. While welcome, it is hardly a material impact for many persons. Ms Seymour, meanwhile, declined to provide details when asked about BPL’s relationship with Bahamas
GBPA not backing down over rate increase clash
always been - and still isthe sole exclusive licensor and regulator for all utilities in the Port Area,” the GBPA said. “It does so in relation to electrical supply with GB Power.
“The 2015 Electricity Act, which has now been replaced with the 2024 Electricity Act which purported to give URCA the legal right to licence and oversee energy providers in the entire Bahamas, including the Port Area, are inconsistent and conflict with the rights and privileges vested in GBPA under the Hawksbill Creek Agreement.”
GB Power, in a legal action originally launched eight years ago, initially sought an injunction to prevent URCA “from regulating, or seeking to exercise licensing and regulatory authority” over it. GB Power’s action is founded on the basis that, as a GBPA licensee, it is licensed and regulated by the latter via the Hawksbill Creek Agreement - and not by URCA and the Electricity Act 2015. It is arguing that the previous Electricity Act’s sections 44-46, which gave URCA the legal right to licence and oversee energy providers, “are inconsistent, and conflict with, the rights and privileges vested in [GB Power] and the Port Authority” by the Hawksbill Creek Agreement.
GB Power’s statement of claim argues that itself and the GBPA “have been vested with the sole authority to operate utilities”, including electricity generation and transmission and distribution, within the Port area until the Hawksbill Creek’s expiration in 2054. Cable Bahamas, too, also has a separate legal action contesting URCA’s jurisdiction and authority to regulate its Freeport subsidiary. However, the new Electricity Act 2024, which treats Grand Bahama as a Family Island, makes the Grand Bahama Power Company the “approving authority” for anyone submitting a proposal to supply electricity to the public on the island. The Act states that any approvals by such an “authority” must also be given the go-ahead by URCA, and this has been interpreted as a neat way of circumventing the GBPA’s utilities regulatory authority in Freeport and transferring it to URCA via GB Power Company. As a result, URCA asserted on Tuesday that it would be illegal for the Grand Bahama Port Authority (GBPA) to approve the 6.3 percent base rate hike sought by GB Power given that the Electricity Act makes it the sole energy regulator for the entire Bahamas. And it argued that GB Power’s
rate application should have been submitted to itself rather than the GBPA.
URCA’s position was backed by the Government, which had urged it to act. The escalating electricity regulation dispute comes at an especially sensitive time in Nassau-Freeport relations and potentially opens up a new legal battle over who has regulatory authority for electricity in Freeport - URCA or the GBPA.
Both the GBPA and the Government are already moving through the process towards eventual arbitration proceedings over the latter’s assertion that it is owed $357m for the provision of public/government services over and above tax revenues generated by the city between 2018 and 2022.
By seemingly digging in its heels over the utilities regulation issue, the GBPA is likely to further inflame the dispute with the Davis administration - not least because the latter’s recent Electricity Act reforms sought to circumvent the ability of Freeport’s quasigovernmental authority to regulate the energy sector.
Meanwhile Pastor Eddie Victor, a long-time GB Power opponent, told Tribune Business that the utility provider “doesn’t deserve one more percent of an increase” in its rates as he argued that it cannot impose such a hike in East End and West End Grand
Bahama because these areas lie outside the Port and the GBPA’s authority.
“It is absolutely crazy to try and push for an increase in the rate at this time because the economy of Grand Bahama is still recovering and the cost of living is already high,” the Coalition of Concerned Citizens (CCC) head argued. “The Power Company model is not what this island needs.
“This island needs a power company with a public/municipality principal of operation. In other words, we need a public municipal model that is generating profits but operates in the best interests of customers. That’s not what’s happening.
“We have a foreign company driven by their corporate principals and is working with a regulator that rules in their favour. This is why the need for an independent regulator is so important.” Backing URCA as the electricity regulating authority in Freeport, Pastor Victor questioned why both GB Power and the GBPA appeared so determined to defy the law as established by the Electricity Act 2024.
“Here is something that is going to be a point of contention,” he added.
“How can you apply for a rate increase and that rate increase goes into effect in east and west Grand Bahama, which are not
in the Port area, without URCA approving it?” he told Tribune Business.
“That cannot happen. West and East Grand Bahama customers need to be on alert. They cannot increase your rates without URCA’s approval. If the regulator challenges that it needs to be a court matter. There should be no rate increase in east and west Grand Bahama without the approval of URCA.”
Pastor Victor added that he had been given permission by the Grand Bahama Christian Council to state that “the faith-based community that represents all churches on Grand Bahama is absolutely opposed to the rate increase”.
“I really caution the Power Company and regulator not to go through with this because there will be push back from the community. People are angry,” he added. The GBPA yesterday pledged that the full rate increase application will be made available to the public “on or before September 15” as part of a 45-day consultation process. It added that its decision on whether to grant approval will be taken by December 1.
“GBPA is also cognisant of the fact that this application comes in the wake of recent challenges faced by GBPC, including issues with reliability and efficiency,” the GBPA said. “As such
Eleuthera resident not going home till power woes solved
“I’m still in Nassau,” she said. “I can’t go up there until they correct it and it looks like it will not be corrected right now. I’m still in Nassau and not going home until the problem is corrected. It’s a good thing I have a home in Nassau and a home in Wemyss Bight. I haven’t been back because my family is telling me the light has been on and off. That’s my settlement and I love being out on the porch.”
Ms Young spoke out as Toni Seymour, BPL’s chief operating officer, yesterday pledged that more than 15 Mega Watts (MW) of additional generation will be installed in Eleuthera before end-September.
Speaking at the Office of the Prime Minister’s weekly media briefing, Ms Seymour detailed the measures being implemented to alleviate Eleuthera’s power woes including installing an additional 5 MW of generation at the Rock Sound power station and deploying 6 MW of rental
generation to the Hatchet Bay power station.
She said: “We plan to install an additional 5 MW of generation at our Rock Sound power station to increase reliability of what is considered to be an aging plant. Six MW of rental generation in Hatchet Bay at the Hatchet Bay power station.
“And we are also upgrading the subsea cable between mainland Eleuthera to Harbour Island to ensure that we are able to adequately meet the growing demands
on Harbour Island. All of these projects are expected to be completed before the end of September 2024
“To complement this, we are installing an additional 5 MW of BPL-owned generation on Harbour Island to meet the demand, which currently exceeds the 6 MW of rental generation currently installed there. In all, BPL anticipates to have more than 15 MW of additional generating capacity available before the end of September 2024.”
Eleuthera and Harbour Island have been hit with
GBPA is committed to ensuring a fair and transparent review process with our primary focus being on a comprehensive evaluation of the proposed rate increase considering the current service performance to ensure that consumers receive the satisfactory reliability that they deserve.
“GBPA is aware of the significant impacts that the cost of energy has on our residents, businesses and the broader economy. We understand that energy expenses are a critical factor in daily living and commercial operations....
The impact of any rate adjustments will be carefully evaluated to ensure they are fair and justifiable. Key elements of the review process will include assessing the utility provider’s rate base and operational costs to determine the necessity and extent of the proposed rate adjustment; analyzing how the proposed rate changes will affect consumers, particularly vulnerable populations, and identifying any potential mitigative measures.
“We will ensure that we consider diverse perspectives, and that the public’s voice is heard. Additionally, we will review compliance with established best practices and regulations to ensure the proposed adjustments align with the regulatory framework and ethical standards.”
a series of power outages with residents and businesses voicing frustrations about having to endure hours in the sweltering summer weather without air conditioning.
Ms Seymour asserted that most of Eleuthera’s outages are “outside of BPL’s control” due to being caused by traffic accidents, weather, construction and wildlife. She said BPL will continue to “aggressively pursue” measures to stabilise the power generation in Eleuthera where BPL is “playing catch up to address” increased demand.
“On the generation side, we have accepted that Eleuthera is one of our booming population centres, spurred on by major investment projects. While great for the economy, it also means a growing load demand that we are playing catch up to address,” Ms Seymour said.
“Similarly, as with much of BPL’s infrastructure
throughout the country, it is aged and desperately needs to be replaced. We’ve spoken about the challenges before, but what’s important for our customers in Eleuthera and Harbour Island to know is that we are working.”
“Admittedly, we have challenges with procuring parts considering the long lead times in some cases, and the significant financial outlay required for many of these projects. Nonetheless, the importance of a stable network for Eleuthera and Harbour Island’s economy’s, and to our customers who rely on electricity for their most basic needs, is evident to everyone at BPL,” she added.
“We assure you that whenever there is a problem, BPL’s leadership team and its team on the island go in full crisis mode to resolve the issue. Our commitment to our customers is reliable, sustainable power in Eleuthera before the end of the summer.”
NOTICE GTCONSULTORIA LTD.
Incorporated under the International Business Companies Act, 2000 of the Commonwealth of The Bahamas. Registration number 207133 B (In Voluntary Liquidation)
Notice is hereby given that the above-named Company is in dissolution, commencing on the 8th day of August A.D. 2024.
Articles of Dissolution have been duly registered by the Registrar. The Liquidator is MR. GUILHERME RODRIGUES BARBOZA, whose address is Rua Edna Quadra F, Lote 08, Armacao Dos Buzios, CEP: 28950000, Rio De Janeiro, RJ, Brazil. Any Persons having a Claim against the abovenamed Company are required on or before the 7 th day of September A.D. 2024 to send their names, addresses and particulars of their debts or claims to the Liquidator of the Company, or in default thereof they may be excluded from the benefit of any distribution made before such claim is proved.
Dated this 8th day of August A.D. 2024.
GUILHERME RODRIGUES BARBOZA LIQUIDATOR
BPL CHIEF STANDS BY BILL DECLINES FOR SMALL USERS
Grid Company, the entity poised to take over control of New Providence’s electricity grid; Island Grid, its management partner; and the latter’s contractor, Pike Electrical.
“As it relates to the reform and the integration of Pike, those discussions are being held at a governmental level and Minister Colby-Davis issued a press release recently as to how that framework work look. So unions are also meeting with her and Prime Minister Davis to iron out whatever those particular industrial relations matters are at this time,” she said.
“Presently industrial relations between the executives and the unions are stable; we meet with both unions regularly.” BPL’s line staff union has been vocal about its concerns surrounding the Davis administration’s plans for energy reform.
The Davis administration is entering a 25-year agreement with Pike Corporation through its Bahamian management company, Island Grid Solutions, to upgrade and manage BPL’s transmission and distribution
network on New Providence. The Government will own 40 percent of the shares in a special purpose vehicle (SPV), Bahamas Grid Company, with private investors owning the majority 60 percent. Kyle Wilson, the Bahamas Electrical Workers Union’s (BEWU) president, last month said employees are “frustrated, angry” over a perceived lack of “transparency” regarding the plans for BPL’s existing workforce and whether all the benefits and rights contained in their existing industrial agreements will be honoured.
He accused the Davis administration of intentionally keeping BPL staff and the public “in the dark” on the terms of the agreements struck to outsource New Providence’s baseload energy generation, and control of the island’s energy grid, to the private sector. In response, the Ministry of Energy and Transport released a statement reiterating the Davis administration’s “ironclad commitment” to protecting the jobs and benefits of BPL employees and honouring the terms of the industrial agreement.
Merchants seek more warning on Back to School VAT ‘holiday’
what I need because that’s not a great discount and I would be worried that the sizes wouldn’t be there. But Bahamians love a sale. Our people like sales.”
Ms Aranah said school uniforms and other items are necessities, so people buy them regardless of whether there is a sale or not. And Ms Cash said “this is our week now” with courses at the University of The Bahamas starting in mid August, resulting in Chapter One Bookstore experiencing an influx of customers.
“If I am correct, the VAT Holiday is normally timed closer to the Government pay day, which is where we normally see an uptick in customers,” ms Cash said.
“So, our heavy back-toschool shopping takes place at the end of July around government payday and again at the end of August. We have a lot of customers that take advantage of it.”
Ms Cash backed the VAT holiday as a good idea, saying: “I do think it’s beneficial to the consumers. It’s savings that’s being passed down by the Government and so we willingly participate.”
Ms Aranah said most retailers will participate in the VAT ‘holiday’ because businesses do not want to lose sales. “If someone else is giving 10 percent off and you’re not then Bahamians, who love sales, are going to go to the place where the 10 percent off is,” she said. “It almost forces you to do it.”
NOTICE
IN THE ESTATE of GENEEN RORY RIVIERE late of Emerald Coast Subdivision, in the Western 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 duly certified in writing to the undersigned on or before the 9th day of August 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 Administrator 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 Administrator Alvernia Court, 49A Dowdeswell Street P.O. Box N-3114 Nassau, The Bahamas
PUBLIC NOTICE
REAL ESTATE BOARD
LICENSED BROKERS/SALESMEN/APPRAISERS/DEVELOPERS
The Public is notified for general information that the following persons have renewed their licenses as of
These licenses are valid until December 31, 2024. The public is advised that the list of names below include
members of The Bahamas Real Estate Association. The public is further advised that only licensed real estate salesmen and brokers are legally permitted to conduct the business of real estate in The Bahamas.
Hotel chief ‘not seeing’ repeat of 2023 growth
FROM PAGE B1
heavily dependent on Wall Street activity. While unease over prospects of a US economic recession continues to circulate, Mr Sands said Wall Street’s turbulence and the potential fall-out for travel and tourism have “had no impact on us at this point in time”.
And he added that any effects will be “difficult to determine especially as we are entering our shoulder season, hurricane season and the traditional slower season that sees the softening of business”. However, the BHTA chief conceded: “It’s certainly something the industry is closely monitoring. Any time there’s a slowing economy, especially in our main markets, we have to pay attention.”
And he acknowledged that other factors may already be impacting The Bahamas’ 2024 second half tourism prospects. “I think we have a lot of work to do for the last two quarters of this year but I’m not one to be dismissive of what the results may be,” Mr Sands told Tribune Business.
“Certainly, at this point in time, we’re not seeing the level of growth for the last two quarters as we did last year. I think the level of groups is playing a pivotal role. There’s indications of a slowing down in the marketplace and that may have some impact on us going forward.
“There are a number of indicators at this point in time that speak to a slowed market at least compared to last year. We’re now working in an environment where we are stabilised. We are not going to see the levels of growth we have seen post-COVID. We’re going to see minimal increases,” the BHTA president continued.
“For some hotels they are tracking behind for the third quarter, and for others it’s about the same.
I think there’s no question that transient [leisure] business is holding in terms of numbers. But for the third quarter last year we had major groups in the destination. Certainly we didn’t see that level of comparison for the third quarter this year. That has also had some impact on volumes and rates.
“I wouldn’t say that was an outlier, but don’t forget that we’re coming off the worst position we could be in coming off COVID, which gave the opportunity for growth a significant runway. Most properties had more or less stabilised in 2023, so you are operating on those very successful results to at least meet them or exceed them by a reasonable percentage. That is the challenge, that is the challenge.”
Mr Sands, though, said he was not writing off the resort industry’s 2024 third quarter and second half prospects just yet. “Once
we complete the month of August we will be in a better place to give a review of this quarter,” he added. “It wouldn’t be fair to give an indication until we have the results.”
The hotel and wider tourism industry were also “very satisfied” with the 2024 first half through to end-June which “tracked ahead” of the same period last year. Mr Sands said weather in major US visitor source markets, as well as climate change, are also factors impacting the industry while increasing hotel room capacity will “not make much difference if we cannot grow what we have”.
Meanwhile, Julian Francis, Commonwealth Brewery’s chairman, told shareholders in the company’s 2023 annual report that cruise tourism’s increasingly dominant share of visitor arrivals likely means that the “marginal spending benefit” from tourism has declined during the postCOVID years.
“The Bahamas’ tourism sector has been experiencing unprecedented levels of growth according to the most widely-accepted measure – the arrival count,” the former Central Bank governor wrote. “The seven million tourist arrivals in 2022 expanded further to 9.6m in 2023, a 38 percent increase.
“It is noteworthy, though, that as a percentage of total arrivals, stopover visitors to The Bahamas have declined in relation to cruise visitors - from an average of 25 percent per annum over the 2015-2019 period to an average of 21 percent per annum between 2022 and 2023. This shift points to a likely decline in the marginal spending benefit to the economy of the increases in arrival numbers since 2022.”
This was echoed by Daphne DeGregoryMiaoulis, the Abaco Chamber of Commerce president, who told Tribune Business: “Tourism numbers are up but, when you add up all the cruise ship bodies who don’t spend too much of anything, but we are bragging about the number of heads coming into the country.
“We need to be looking at more long-term stays, three to five day stays, not coming off the cruise ships, walking around town and maybe buying a snack and t-short before going back on the cruise ship and going to their private islands where they don’t buy the t-shirt; they buy from the same people that brought them there.
“The cruise ships don’t encourage them to come and spend their money on the island. They encourage them to spend money on the cruise ship and their cays which they own, and which is not sustainable for the country in the long-run. We are facilitating their growth, not ours.”
HARRIS AND WALZ SHOW THEIR SUPPORT FOR ORGANIZED LABOR WITH APPEARANCE AT DETROIT UNION HALL
By DARLENE SUPERVILLE, JOEY CAPPELLETTI and SEUNG MIN KIM Associated Press
VICE President Kamala Harris and her running mate, Minnesota Gov. Tim Walz, played up their support for organized labor at a Detroit-area union hall on Thursday, with the Democratic nominee saying "we're all in this together" as the new ticket lavishes attention on a crucial base of support. Harris, the Democratic presidential nominee, and Walz, who joined the ticket on Tuesday, spoke Thursday to about 100 United Auto Workers members at Local 900 Hall, which represents Ford's Michigan Assembly Plant. The stop occurred shortly after Republican nominee Donald Trump held a press conference in Palm Beach, Florida.
As she proclaimed that it was "good to be in the house of labor," Harris described the value of unions, saying they were "about understanding that no one should be made to fight alone" and that "hard work is good work."
"We have fun doing hard work, because we know what we stand for," she said. "When you know what you stand for, you know what to fight for. We know what we stand for, and we stand for the people and we stand for the dignity of work, and we stand for freedom. We stand for justice. We stand for equality.
She continued: "And so we will fight for all of it." Walz, riffing off a favorite line of President Joe Biden, told the labor crowd that "we know that unions built the middle class. "The rest of America has to," Walz added.
‘No alarm’ over $360m short-term bond surge
within one year, with investment principal returned to their owners, has more than doubled over the same four-year period. It has increased from $208m at end-June 2020 to $568.2m this summer, representing a 173.2 percent jump.
The shift away from government paper with five-year maturities or more reflects investor perceptions of increased risk associated with The Bahamas’ sovereign finances following the $3bn-plus deficit and debt blow-out produced by a combination of Hurricane Dorian and COVID-19, as well as repeated credit rating downgrades.
Together with $1.104bn in Treasury Bills due to mature within the next 182 days, the $568.2m in government bonds set to be redeemed during the current 2024-2025 fiscal year are the major components of some $2.705bn in Bahamian dollar-denominated debt due to be refinanced by the Davis administration over the next 12 months.
Speaking directly to the refinancing risk this creates, especially if a major institution or group of investors demand they be paid out, the Ministry of Finance report confirmed that more than one out of every four dollars in government debt is due to be rolled over during 2024-2025.
“By end-June 2024, 25.91 percent of the debt portfolio was due to mature in one year compared with 25.25 percent a year ago,” it said. However, Mr Bowe, who is also Fidelity Bank (Bahamas) chief executive, told this newspaper this is no cause for panic and revealed he had expressed similar views to a visiting International Monetary Fund (IMF) team some six to eight weeks ago.
“The first thing is there is no alarm and the numbers align with exactly what I suspect,” he said. “Certainly, in the last three to four years, the investment profile has shifted to the one-year or less. It’s not the actual amount held by financial institutions; the roll overs have not experienced any challenges, it’s just the tenor.”
Mr Bowe said the shift to short-term paper has actually helped to reduce the Government’s borrowing/ financing costs as bonds due to mature in one year or less carry a 3.25 percent interest coupon as opposed to the six-plus percent demanded on 20-30 year securities.
“I had the same conversation with the IMF as part of their Article IV visit six weeks to two months ago,” he revealed. “There’s a higher reinvestment or higher refinancing risk because you have to go to market each year, but the majority of that rollover - if you understand the change in tenor profile by the major banks - it’s not an alarming statement.
“You’ve got liquidity, and it gives the Government the opportunity to come back to the market on a regular basis to say what things are being done to keep the investor confidence elevated. To be honest, that’s a positive thing. It may not be the most comfortable thing for the Government, it may not be what they’re used to, but it’s ensuring they maintain discipline. That’s a benefit as well.
“There’s not been any loss of confidence in government securities. It’s only the tenor. Whether government likes the reality of it, people are not prepared to give them funds for 20 or 30 years without accountability.”
However, other market observers took a more conservative stance than Mr Bowe. They argued that the Government’s ever-increasing reliance on short-term paper to finance its operations, with the $1.1bn in bonds due to mature in less than five years accounting for 25 percent of the total $4.4bn outstanding, leaves it exposed if major investors elect not to rollover the sums owed to them.
“If the Government wants to rollover its debts, and there’s a call on any substantial amount of that, it’s a really big problem,” one source, speaking on condition of anonymity, said. They added that the shift towards shortterm paper goes against established debt management practices which are designed to spread out bond maturities over a longer period of time.
However, Mr Bowe argued: “People are more prepared to have the reinvestment risk meaning they recognise they will not find an equivalent security outside of the Government. But the upside is you have a chance to reinvest in a fairly liquid market, get a decent interest rate and keep the Government accountable.
“In my view, it’s not alarming at all. The truth of the matter is that it’s up to the Government to maintain its discipline. If it maintains it, it will have a lower cost of funding, improved relationship with the capital markets and improve it’s overall financial circumstances. It’s just that it has increased its overall financing risk.”
Mr Bowe reiterated that, given the relatively small Bahamian capital market and exchange control regime, there were relatively few alternatives to investing in government paper which is “always the first choice” for investors given its availability and relatively attractive interest rates.
And he said the need to maintain fiscal discipline and investor confidence, given these market conditions, imposes “guard rails” on the Government’s spending and profligacy. As a result, the Government “can only commit to what they can afford”.
“It may not be what they’d like to hear, but it means the Government cannot be all things to all men,” Mr Bowe added. “The Government has to work towards getting back to the 50 percent debt-toGDP ratio target and then it will have more headroom. As it stands, the Government cannot be all things to all men and has to be disciplined in the management of its debt.”
The Ministry of Finance, in its report, said: “The maturity profile of public sector forecasted debt redemptions through 2034 closely track the evolution of the Government’s large external and domestic bond portfolios and domestic short-term treasuries.
“Debt forecasts cover reissuances of Treasury bills ($1.1034bn), Treasury notes ($33.8m) and Central Bank advances ($162m). Outcomes on the external side primarily reflect developments related to central government’s bond maturities, with the domestic evolution similarly tracking government’s domestic bond redemptions.
“Across the maturity spectrum, the longer maturity and amortising profile of the multilateral and bilateral credits continue to provide smoothing to debt operations.”
The Tribune wants to hear from people who are making
DELTA FACING CLASS ACTION LAWSUIT OVER TECH OUTAGE; CUSTOMERS SEEKING REFUNDS
By MICHELLE CHAPMAN AP Business Writer
DELTA Air Lines is facing a class action lawsuit, which claims the airline refused to give refunds following a global technology outage last month. The airline replied that it will go after the tech companies behind the snafu.
Among airlines, Delta was by far the hardest hit hard by the outage, having to cancel roughly 7,000 flights over five days, because key systems were crippled by the incident.
The lawsuit was filed Tuesday in the U.S. District Court Northern District of Georgia Atlanta Division on behalf of Delta customers impacted by the outage. In it, the customers allege that Delta refused or ignored their requests for prompt refunds for their canceled or delayed flights.
The complaint also claims Delta didn't provide all impacted passengers with meal, hotel, and ground transportation vouchers and continues to refuse or ignore requests for reimbursements of those unexpected expenses.
"These unfair, unlawful, and unconscionable practices resulted in Delta unjustly enriching itself at the expense of its customers," the lawsuit states.
The complaint states the plaintiffs are seeking refunds for all Delta customers whose flights were canceled or significantly affected due to the outage.
Delta, based in Atlanta, did not immediately respond to a request for comment. But in a regulatory filing, the carrier said it will spend $380 million in the third quarter on customer refunds and compensation related to the outage. Other expenses total an estimated $170 million, but quarterly fuel expense is estimated to be $50 million lower due to the cancelations.
The U.S. Department of Transportation is investigating why Delta failed to recover as quickly as other airlines. Transportation
Secretary Pete Buttigieg said last month that the department would also examine Delta's customer service, including "unacceptable" lines for assistance and reports that unaccompanied minors were stranded at airports.
On Tueday, Microsoft announced that it was joining cybersecurity software firm CrowdStrike in fighting back against Delta, which blames the companies for causing several thousand canceled flights following the July outage.
A lawyer for Microsoft said that Delta's key IT system is probably serviced by other technology companies, not Microsoft Windows.
Delta CEO Ed Bastian previously said that the global technology outage that started with a faulty upgrade from CrowdStrike to machines running on Microsoft Windows cost the airline $500 million. Bastian raised the threat of legal action.
He confirmed that in Thursday's filing. Bastian said, "We are pursuing legal claims against CrowdStrike and Microsoft to recover damages caused by the outage, which total at least $500 million."
On Tuesday, Delta said it has a long record of investing in reliable service including "billions of dollars in IT capital expenditures" since 2016 and billions more in annual IT costs. It declined further comment. CrowdStrike has also disputed Delta's claims. Both it and Microsoft said Delta had turned down their offers to help the airline recover from the outage last month. Microsoft's lawyer said CEO Satya Nadella emailed Bastian during the outage, but the Delta CEO never replied.
Wulf Road,
Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The
ELECTRICAL RETAILER’S FAILURE TO SHORT-CIRCUIT
The appeal against Henry F. Storr’s thus-far successful bid to extinguish the “restrictive covenants” placed on the property by New Providence Development, in a bid to control the type and scale of development that occurs on it, remains live and active.
However, the electrical retailer, which had sought the ‘commercial’ re-zoning to make the property more attractive to purchasers and increase its sale value, nevertheless proceeded to strike a deal with a prospective buyer on June 29, 2023, which was not identified in Justice Carla-Stubbs’ ruling.
To seal the sale, Henry F. Storr sought a Supreme Court Order that the deal “be finalised” or, as an alternative, that New Providence Development Company and Old Fort Bay Company “pay into court the full” sales price as compensation should their claim scuttle the deal but, ultimately, be unsuccessful.
“The applicant’s case is that on June 27, 2023, subsequent to the decision of the Town Planning Committee and prior to the decision of the Subdivision and Development Appeal Board, [Henry F. Storr] entered an agreement for sale of the property to a third party who is not a party to these proceedings,” the judge wrote.
As a result if the signed sales agreement, the electrical retailer argued it no longer held title to the disputed property, which is located on the southern side of Western Road around 2,822 feet east of the Lyford Cay Circle. It added that the signed deal transferred title to the buyer and, as a result, it was now a trustee for the purchaser and should be removed from the dispute.
“The applicant also sought a declaration of this court that the agreement for sale which exists could proceed and be finalised unaffected by any stay or other decision, including any decision to be rendered by this court concerning the appeal,” Justice CardStubbs said of Henry F. Storr’s arguments.
“As I understood it, this declaration would be a ‘comfort declaration’ to the purchaser. However, I note that such a declaration sought would also serve to declare the rights of the purchaser as it concerned the issue of the restrictive covenants not just at
US JURY CONVICTS
By JENNIFER PELTZ Associated Press
FORMER Mozambican
Finance Minister Manuel Chang was convicted Thursday in a financial conspiracy case that welled up from from his country's " tuna bond " scandal and swept into a U.S. court.
A federal jury in New York delivered the verdict.
Chang was accused of accepting payoffs to put his African nation secretly on the hook for big loans to government-controlled companies for tuna fishing ships and other maritime projects. The loans were plundered by bribes and kickbacks, according to prosecutors, and Mozambique ended up with $2 billion in "hidden debt," spurring a financial crisis.
"Today's verdict is an inspiring victory for justice and the people of Mozambique who were betrayed by the defendant, a corrupt, high-ranking government official whose greed and self-interest sold out one of the poorest countries in the world," Brooklyn-based U.S. Attorney Breon Peace said in a statement.
Messages seeking comment were sent to Chang's attorneys and to Mozambique's embassy in Washington. Chang was his country's top financial official from 2005 to 2015.
Chang had pleaded not guilty to the U.S. conspiracy
the present time but in the future. Counsel submitted that since the agreement for sale now existed, it would not be affected, and ought not to be affected, by a subsequent adverse decision.”
However, New Providence Development Company and Old Fort Bay Company asserted that the sales agreement was “completely irrelevant” to the planning dispute and associated appeal and had no bearing on the Supreme Court’s ability to hear their case. Justice Card-Stubbs agreed, determining that the electrical retailer’s case was “misconceived”. She ruled that title ownership to real estate does not pass to the purchaser upon the mere signing of a sales agreement. “The settled position in law is that the mere signing of an agreement of sale for land does not pass the legal interest to the purchaser. The legal title remains in the vendor,” Justice CardStubbs wrote.
“The effect of the executed agreement for sale is to vest an equitable interest in the purchaser. A purchaser may, via that equitable interest, pursue an equitable remedy that could lead to the acquisition of a legal interest. Until then, the legal interest remains with the vendor and, in the normal course of events, the legal interest passes when the conveyance is executed.”
Describing Henry F. Storr’s position as a “fallacy”, she added: “That an agreement for sale has been executed in relation to land affected by the [planning dispute] is irrelevant to the question as to whether the decision was made in accordance with the law.
“That there is an agreement for sale is not a proper ground for the summary dismissal of the appeal. The existence of an agreement of sale does not render the decision to extinguish the restrictive covenants uncontestable..... The evidence before me is that there is an agreement for sale but no conveyance.
“While I understand that the possibility of a reversal of the decision being appealed may cause a purchaser to be wary of an agreement already signed, that is not a proper consideration for this court... “
Rejecting Henry F. Storr’s assertion that it is no longer the property owner, Justice Card-Stubbs said there was “no legal ground” upon which the orders it was seeking could be made.
Mosko
charges. His lawyers said he was doing as his government wished when he signed off on pledges that Mozambique would repay the loans, and that there was no evidence of a financial quid-pro-quo for him. No sentencing date was set for Chang, 48. The charges carry the possibility of up to 20 years in prison, though sentencing guidelines for any given case can vary depending on a defendant's history and other factors. Between 2013 and 2016, three Mozambican-government-controlled companies quietly borrowed $2 billion from major overseas banks. Chang signed guarantees that the government would repay the loans — crucial assurances to lenders who likely otherwise would have shied away from the brandnew companies. The proceeds were supposed to finance a tuna fleet, a shipyard, and Coast Guard vessels and radar systems to protect natural gas fields off the country's Indian Ocean coast. But bankers and government officials looted the loan money to line their own pockets, U.S. prosecutors said. "The evidence in this case shows you that there is an international fraud, money laundering and bribery scheme of epic proportions here," and Chang "chose to participate," Assistant U.S. Attorney Genny Ngai told jurors in a closing argument Monday.
Robins
Rodland
Rodrigues
K. Rolle
SAMSUNG IS RECALLING MORE THAN 1 MILLION ELECTRIC RANGES AFTER NUMEROUS FIRE AND INJURY REPORTS
NEW YORK Associated Press
SAMSUNG is recalling more than 1.12 million electric ranges used for stovetops after reports of 250 fires and dozens of injuries.
According to a Thursday notice from the U.S. Consumer Product Safety Commission, these slide-in ranges have front-mounted knobs that can be activated by accident if humans or pets unintentionally contact or bump into them. That poses a fire hazard.
To date, Samsung has received more than 300 reports of the knobs activating unintentionally since 2013, the CPSC noted, and the now-recalled ranges have been involved in about 250 fires. At least 18 of those fires caused extensive property damage and seven involved pet deaths, according to the Commission.
In addition, the CPSC added, about 40 injuries have been reported, including eight that required medical attention.
Consumers can identify whether their slide-in electric range is included in this recall by looking at the model number printed on the product. Both Samsung and the CPSC have published a list of affected models online.
The recalled ranges were sold between May 2013 and August 2024 online at Samsung.com as well as in retailers nationwide — including Best Buy, Costco, Home Depot and Lowe's.
Consumers in possession of a recalled range are urged to contact New Jersey-based Samsung Electronics America for a free set of knob locks or covers compatible for installation with their model. In the meantime, those impacted should take extra caution to keep children and pets away from the knobs, and check their range before leaving the house or going to bed to make sure it's off, the CPSC said. As part of general stovetop and oven safety, the Commission added that consumers should "never place, leave, or store anything on the top of your range" when not in use — as such items can ignite if it's accidentally activated.
To receive a set of free knob locks or covers, depending on their model, customers can visit https:// www.samsung.com/us/ support/range-knob-kit/, contact Samsung toll-free at 1-833-775-0120 from 9:00 a.m. to 8:00 p.m. ET Monday through Friday, or by email at rangesupport@ sea.samsung.com.
By PATRICK WHITTLE Associated Press
A LAWSUIT stemming from the Titan submersible disaster felt inevitable, but winning a big judgment against the owner of the vessel could be very difficult, legal experts said on Thursday.
The family of French explorer Paul-Henri Nargeolet, one of five people who died aboard the submersible in June 2023, filed a more than $50 million civil lawsuit against submersible owner OceanGate earlier this week. Nargeolet's estate said in the lawsuit that the crew aboard the sub experienced "terror and mental anguish" before the sub imploded and its operator was guilty of gross negligence.
Now comes the hard part — winning in court.
Legal experts said Nargeolet's estate may get some money from the lawsuit, but it could be a fraction of the amount sought. It's also unclear if there will be any money available, as OceanGate has since shut down operations, they said.
Some say that the passengers onboard the Titan assumed risk when they got aboard an experimental submersible headed for the Titanic wreck site.
"They made choices to go do this, and it seems to me it was a 50/50 shot anyway it was going to work," said John Perlstein, a personal injury lawyer in California and Nevada. "They bear responsibility too, as well as the guy who built and piloted this thing."
Nargeolet's estate filed its lawsuit on Tuesday in
King County, Washington, as OceanGate was a Washington-based company. A spokesperson for OceanGate declined to comment on aspects of the lawsuit. Attorneys for Nargeolet's estate are hinging their case in part on the emotional and mental pain of the passengers on board the Titan. The attorneys, with the Buzbee Law Firm in Houston, Texas, said that the crew "were well aware they were going to die, before dying," since they dropped weights about 90 minutes into the dive. But that could be hard to prove, said Richard Daynard, distinguished professor of law at Northeastern University in Boston. Attorneys will have a difficult time demonstrating that the implosion and resulting deaths were not instantaneous, he said. It could, however, be possible to prove negligence, Daynard said. But even that doesn't guarantee a bigmoney judgment, he said. "A settlement is a possibility, but presumably if the case has a very tiny chance of winning, the settlement will be a tiny fraction of the amount sought," Daynard said.
The Titan made its final dive on June 18, 2023, and lost contact with its support vessel about two hours later. After a search and rescue mission that drew international attention, the Titan
THE LOGO of the Samsung Electronics Co. is seen at its office in Seoul, South Korea, Wednesday, July 31, 2024.
Photo:Ahn Young-joon/AP
Boeing’s new CEO visits factory that makes the 737 Max, including jet that lost door plug in flight
By DAVID KOENIG AP Airlines Writer
A NEW chief executive
took over at Boeing on Thursday, and he began by walking the floor of the factory near Seattle that has become the heart of the aerospace giant's troubles.
Robert "Kelly" Ortberg takes the helm of a money-losing company that has agreed to plead guilty to conspiracy to commit fraud, is struggling fix its aircraft-manufacturing process, and can't bring two astronauts home from the International Space Station because of flaws in a spacecraft it built for NASA.
"I'm excited to dig in!"
Ortberg told employees on his first day in the job.
Boeing announced Ortberg's selection just over a week ago, on the same day that it posted another huge loss: more than $1.4 billion in the second quarter, which was marked by a steep drop in deliveries of new airline planes, including the 737 Max.
The National Transportation Safety Board just wrapped up a two-day hearing on the 737 Max that suffered a blowout of a panel in the side of the plane during an Alaska Airlines flight in January. The board's investigators have interviewed workers at the 737 factory in Renton, Washington, who say they are under too much
INVESTIGATOR
By JAMES POLLARD Associated Press
pressure to produce planes quickly, leading to mistakes.
During the hearing, a Federal Aviation Administration manager said the regulator has 16 open enforcement cases against Boeing — three or four times the normal number — and half started since the door-plug blowout.
Ortberg, an outsider, will try to fix Boeing after the last two CEOs failed.
Dennis Muilenburg, a Boeing lifer, was fired in 2020 while the company was trying to convince regulators to let Max jetliners resume flying after crashes in 2018 and 2019 that killed 346 people. David Calhoun, a longtime Boeing
SAYS
A RECORD multimillion dollar gift to Florida's only public historically Black university has been void for months, an independent investigator said Thursday, as a thirdparty report determined school officials failed to vet a "fraudulent" contribution and that the donor's self-valuation of his fledgling hemp company was "baseless."
Little-known entrepreneur Gregory Gerami's donation of more than $237 million was "invalidated" ten days after its big reveal at Florida A&M University's graduation ceremony because of procedural missteps, investigator Michael McLaughlin told trustees. Gerami violated his equity management account's terms by improperly transferring 15 million stock shares in the first place, according to an Aug. 5 report by the law office of Buchanan Ingersoll & Rooney, PC. When the company terminated Gerami's contract on May 14, McLaughlin said, any stock certificates in FAMU Foundation's possession were cancelled.
What's more, the foundation never countersigned the gift agreement after both parties signed an incorrect version on the day of commencement. Thursday's meeting came three months after that celebratory affair. The university president posed onstage with a jumbo check alongside Gerami, who was invited to speak despite a documented history of dubious business ventures and failed higher education giving. Things soon fell apart. After almost immediate public outcry, the school paused the gift and a vice president left her position. President Larry Robinson
board member and General Electric executive, got the reworked Max back in the air but couldn't stem losses that now exceed $25 billion since the start of 2019. Calhoun announced in March that he would step down.
In a memo to employees on Thursday, Ortberg said, "While we clearly have a lot of work to do in restoring trust, I'm confident that working together, we will return the company to be the industry leader we all expect."
Boeing is a century-old aviation innovator with roots in Seattle, although the headquarters moved to Chicago and then to the Washington, D.C., area.
The new CEO is planting a symbolic flag in the ground back in the Pacific Northwest.
"Because what we do is complex, I firmly believe that we need to get closer to the production lines and development programs across the company," Ortberg told employees. "I plan to be based in Seattle so that I can be close to the commercial airplane programs. In fact, I'll be on the factory floor in Renton today, talking with employees and learning about challenges we need to overcome, while also reviewing our safety and quality plans."
The company declined to make Ortberg available for interviews.
Ortberg's name emerged relatively late in the CEO search. Boeing Chairman Steven Mollenkopf, who led the search, said Ortberg has a reputation for running complex engineering and manufacturing companies.
Analysts have generally been favorable too. Richard Aboulafia, a longtime analyst and consultant in the industry, said Ortberg is deeply respected "and brings more hope for a better future than the company has enjoyed in decades."
Louie DiPalma, an analyst for William Blair & Co., said Ortberg will benefit from low expectations due to Boeing's depressed stock price — the shares were down 37% this year at the start of Thursday's session, reflecting Boeing's turmoil since the blowout.
"Boeing's safety issues and cultural problems have been scrutinized under a microscope to such a degree that Ortberg will be viewed as a savior for progress that he may achieve," DiPalma wrote in a note to clients. He said Ortberg might lower some Boeing financial targets to emphasize quality, and believes
investors will understand if he does.
One of Ortberg's top assignments will be fixing the manufacturing process and increasing production of Max jets, Boeing's bestselling plane. The FAA has limited Boeing to 38 per month since shortly after the Alaska Airlines blowout, but Boeing's top safety official said this week production isn't even that high — it's in the 20s per month.
Calhoun did finish one job before Ortberg took over: The company reached an agreement with the Justice Department last month to plead guilty to conspiracy to commit fraud in connection with development of the Max. A federal judge in Texas will decide whether to approve the deal, which includes a fine of at least $244 million Boeing investing at least $455 million in quality- and safety-compliance programs. The deal would spare Boeing the ordeal of a public trial.
Boeing's defense and space unit is also struggling. It lost $913 million in the second quarter because of setbacks on fixed-price government contracts, including a deal to build two new Air Force One presidential jets.
'FRAUDULENT' GIFT TO FLORIDA'S ONLY PUBLIC HISTORICALLY BLACK UNIVERSITY IS VOID
submitted his resignation last month.
Gerami, who founded Batterson Farms Corp in 2021, told The Associated Press that he had not read the full report. He agreed that his internal valuation "doesn't carry any weight," but said he obtained a third-party valuation after the debacle. According to investigators, Gerami provided a FAMU Foundation official on June 28 with the first two pages of a valuation by Stonebridge Advisors Inc. The appraisal suggests Batterson Farms Corp is worth $9.93 per share — well below the $15.85 figure from the initial gift agreement. Gerami declined to provide AP with any documents supporting this conclusion, saying, "You don't need the full report." He also denied that he improperly transferred company shares to the FAMU Foundation. He said he used "the process I have always followed." Millions intended for scholarships, athletics facilities, the nursing school and a student business incubator will not be realized. In their place are reputational damage and halted contributions from previous donors who assumed the university's financial windfall made additional gifts unnecessary, according to the report.
The investigation blames administrators' lack of due diligence on their overzealous pursuit of such a transformative gift and flawed understanding of private stock donations. Robinson repeatedly told staffers "not to mess this up," according to investigators. Ignored warning signs alleged by the report include:
— An April 12 message from financial services company Raymond James revoking its previous
verification of Gerami's assets. In an email to two administrators, the firm's vice president said that "we do not believe the pricing of certain securities was accurate."
— "Derogatory" information discovered by the communications director as he drafted Gerami's commencement speech. That
included a failed $95 million donation to Coastal Carolina University in 2020. The report said the official "chose to ignore these concerns and did not report them to anyone else, assuming that others were responsible for due diligence."
— An anonymous April 29 ethics hotline tip that the Texas Department of Agriculture could back up claims that Gerami is a fraud. The Office of Compliance and Ethics reviewed the tip but did not take action because the gift's secrecy meant that the office was unaware of Gerami.
Senior leadership "were deceived by, and allowed themselves to be deceived by, the Donor — Mr. Gregory Gerami," the report concluded.
"Neither Batterson Farms Corporation nor any of its affiliated companies had the resources available to meet the promises made in the Gift Agreement," the authors wrote.
THE BOEING 777X airplane is shown at the Paris Air Show in Le Bourget, north of Paris, France, on June 19, 2023.
Photo:Lewis Joly/AP
Wall Street rallies to its best day since 2022 on encouraging unemployment data; S&P 500 jumps 2.3%
By STAN CHOE AP Business Writer
U.S. stocks rallied Thursday in Wall Street's latest sharp swerve after a better-than-expected report on unemployment eased worries about the slowing economy.
The S&P 500 jumped 2.3% for its best day since 2022 and shaved off all but 0.5% of its loss from what was a brutal start to the week. The Dow Jones Industrial Average rose 683 points, or 1.8%, and the Nasdaq composite climbed 2.9% as Nvidia and other Big Tech stocks helped lead the way.
Treasury yields also climbed in the bond market in a signal investors are feeling less worried about the economy after a report showed fewer U.S. workers applied for unemployment benefits last week. The number was better than economists expected.
It was exactly a week ago that worse-than-expected data on unemployment claims helped enflame worries that the Federal Reserve has kept interest
rates at too high of an economy-slowing level for too long in order to beat inflation. That helped send markets reeling, along with a rate hike by the Bank of Japan that sent shockwaves worldwide by scrambling a favorite trade among some hedge funds.
At the worst of it, at least so far, the S&P 500 was down nearly 10% from its all-time high set last month. Such drops are regular occurrences on Wall
Street, and "corrections" of 10% happen roughly every year or two. After Thursday's jump, the index is back within about 6% of its record.
What made this decline particularly scary was how quickly it happened. A measure of how much investors are paying to protect themselves from future drops for the S&P 500 briefly surged toward its highest level since the COVID crash of 2020.
Still, the market's swings look more like a "positioning-driven crash" caused by too many investors piling into similar trades and then exiting them together, rather than the start of a long-term downward market caused by a recession, according to strategists at BNP Paribas. They say it looks more similar to the "flash crash" of 2010 than the 2008 global financial crisis or the 2020 recession caused by the pandemic.
Of course, markets have been quick to turn over the past week regardless of any long-term predictions.
"Today's jobless claims data may ease some of the concerns raised by last week's soft jobs report," said Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley. "But with inflation data due out next week and the stock market still working through its biggest pullback of the year, it's unclear how much this will move the sentiment needle."
In the meantime, big U.S. companies continue to turn
in profit reports for the spring that are mostly better than analysts expected. Eli Lilly jumped 9.5% to help lead the market after it delivered stronger profit and revenue than Wall Street had forecast. Sales of its Mounjaro diabetes treatment and its Zepbound weight-loss counterpart are booming, and the company raised its financial forecast for the year.
Big Tech stocks also rose to claw back some of their sharp losses from the last month. After a handful of them almost singlehandedly drove the S&P 500 to dozens of all-time highs this year, the group known as the "Magnificent Seven" lost momentum last month amid criticism their prices soared too high in investors' frenzy around artificialintelligence technology.
How this handful of stocks performs carries extra impact on the S&P 500 and other indexes because they're by far the market's most valuable companies. Nvidia, which has become the poster child for the AI trade, rose 6.1%
to trim its loss for the week so far to 2.1%, and it was the day's strongest single force pushing upward on the S&P 500.
Gains of 1.7% for Apple and 4.2% for Meta Platforms were also big propellants, along with Eli Lilly. They helped offset a drop of 11.3% for McKesson, which topped analysts' expectations for profit in the latest quarter but fell short on revenue. It said growth slowed in its medical-surgical business.
Bumble, the Texas-based dating app, lost more than a quarter of its value, 29.2%, after its forecast for revenue in the third quarter came in well below Wall Street's.
All told, the S&P 500 rallied 119.81 points to 5,319.31. The Dow gained 683.04 to 39,446.49, and the Nasdaq composite rose 464.22 to 16,660.02. In the bond market, the yield on the 10-year Treasury rose to 3.99% from 3.95% late Wednesday. In stock markets abroad, indexes were mixed across Asia and Europe.
SPECIALIST John O’Hara works at his post on the floor of the New York Stock Exchange, Wednesday, Aug. 7, 2024. Photo:Richard Drew/AP
EX-CATALAN LEADER PUIGDEMONT, A FUGITIVE SINCE
2017, RETURNS TO SPAIN. BUT THEN HE VANISHES AGAIN
By RENATA BRITO and BARRY HATTON Associated Press
POLICE launched a manhunt in Barcelona on Thursday for fugitive Carles Puigdemont, a celebrated campaigner for Catalan independence who made a sensational return to Spain and an equally sensational getaway from a speech in the city with the alleged help of local police officers.
The events took place nearly seven years after the ex-Catalonia leader fled Spain after a failed independence bid, with an outstanding arrest warrant pending against him.
Puigdemont had previously announced his intention to be in Spain on the day that Catalonia's parliament proclaimed a new president. The 61-yearold initially lived in Belgium after bolting from Spain in 2017, but his latest place of residence wasn't known.
Puigdemont kept his travel plans secret before setting out to the wealthy Catalan region in northeastern Spain. He gave a speech in front of a large crowd of supporters in central Barcelona under the noses of police officers, who made no attempt to detain him.
After his speech, in a cloak-and-dagger moment, Puigdemont went into an adjacent marquee tent. There, he hurried out of an exit and jumped into a waiting car that sped away, according to an Associated Press photographer who witnessed his departure.
Catalan police arrested two of their own officers for their alleged involvement in Puigdemont's getaway, suspecting that the former leader used the private car of one of them, the force's press office told The Associated Press. No further details were available.
After Puigdemont vanished, Catalan police — called Mossos d'Esquadra — checked vehicles across the city of around 1.6 million people and others heading on highways to neighboring France in an effort to nab him. The checks were called off hours later.
Puigdemont shared later a video of his speech on Instagram with the message "We're still here. Long live free Catalonia."
Officers initially held back from swooping to arrest Puigdemont out of concern the move might "cause public disorder," a police statement said. Officers tried to stop the fleeing vehicle, but were unable to do so, it said, though it added that further arrests were expected. The statement didn't elaborate.
The Catalan police force operates separately from Spain's Policía Nacional. At the time of the 2017 ballot, the Spanish government suspended the Mossos' chief and placed the force under investigation for failing to stop the vote. The chief and his staff were eventually exonerated.
Puigdemont faces charges of embezzlement for his part in an attempt to break Catalonia away from the rest of Spain in 2017. As regional president and separatist party leader at the time, he was a key player in the independence referendum that was outlawed by the central government but went ahead anyway.
Those events triggered a political crisis that roiled Spain for months.
Puigdemont's appearance in Barcelona, Catalonia's capital, and his game of cat-and-mouse with police, stole the show on a day when a new president was being proclaimed at the regional parliament.
president, who
Local police were deployed in a security ring around a section of the park where Catalonia's parliament building is located behind walls, and where Puigdemont was expected to go after his speech.
Meanwhile, the politician, wearing a dark suit, white shirt and tie, walked with supporters to the nearby stage where he gave his speech.
Addressing the crowd in the park and at times pumping his fist, Puigdemont accused Spanish authorities of "a crackdown" on the Catalan separatist movement.
"For the last seven years we have been persecuted because we wanted to hear the voice of the Catalan people," Puigdemont said. "They have made being Catalan into something suspicious."
He added: "All people have the right to self-determination."
The gripping turn of events, broadcast live on Spanish television channels, was likely to bring political recriminations.
The leader of the Popular Party, the main opposition to Spain's left-of-center coalition government which has long rebuffed Catalonia's independence movement, condemned Puigdemont's return.
Alberto Núñez Feijóo posted on X that Puigdemont's reappearance was an "unbearable humiliation" that damaged Spain's reputation.
Spain's government encouraged a deal brokered after months of deadlock between Salvador Illa's Catalan Socialist Party (PSC) and the other main Catalan separatist party and left-wing Esquerra Republicana (ERC). That
deal ensured just enough support in Catalonia's parliament for Illa to become the next regional president Thursday with 68 votes in the 135-seat chamber.
Illa's new government is the first non pro-independence government in 14 years, since the PSC last held power.
Speaking to Catalan lawmakers before the vote, Illa called for reconciliation and respect for a controversial amnesty bill that could eventually clear Puigdemont of wrongdoing but which is being challenged in court. He vowed to govern for all Catalans after years of bitter divisions between those in favor of independence and those against it.
Puigdemont has dedicated his career to carving out a new country in northeast Spain, and has often thumbed his nose at authorities. His largely uncompromising approach
has brought political conflict with other separatist parties as well as with Spain's central government. The contentious amnesty bill, crafted by Spain's Socialist-led coalition government, could potentially clear hundreds of supporters of Catalan independence of any wrongdoing in the 2017 ballot. Spain's central government and the Constitutional Court declared at the time that the referendum was illegal.
But the bill, approved by Spain's parliament earlier this year, is being challenged by Supreme Court judges who say its provisions should not protect Puigdemont from prosecution over embezzlement charges that have been lodged against him. Puigdemont could be placed in pretrial detention if he is arrested.
Learning
SUPPORTERS of Catalan independence leader Carles Puigdemont hold his portrait as they wait for his arrival near the Catalan parliament to to allegedly attend the investiture debate in Barcelona, Spain, Thursday, Aug. 8, 2024. The search for Puigdemont by the Mossos d’Esquadra has clogged the main roads, resulting in traffic jams. The officers have activated operation ‘cage’ to locate the former
remains missing after returning to Barcelona following seven years of avoiding arrest for organizing an independence referendum in 2017.
Photo:Emilio Morenatti/AP
The Step Pods, currently Phase 2 is under construction at The Ranfurly Homes for Children, Nassau, Bahamas
