08292023 BUSINESS

$5.98 $5.98 $5.98 $5.94

IDB warns Bahamas on rollover ‘difficulties’

By NEIL HARTNELL Tribune Business Editor

THE Bahamas has been warned it may “face difficulties to roll over existing debt” in the medium-term if market conditions do not improve with almost $900m in external foreign currency loans coming due in the next two years.

The Inter-American Development Bank (IDB), in its 2023 second quarter economic bulletin on the Caribbean, said “sound” debt management will be “key” for the Government over the next decade with at least $250m in foreign currency bonds held by external investors due to mature every year between 2026 and 2032.

With “most” of the Government’s external bonds set to come due for repayment between now and 2032, including $550m in principal that matures in 2029, the IDB also warned that “external loans” extended by foreign creditors will create further debt management pressures for successive administrations.

“Although no sovereign external bonds will mature before 2024, between 2026 and 2032 there are bonds maturing every year of at least $250m,” the IDB said. “Even though the country is not facing an immediate need to roll over external bonds, within ten years most of its bonds will mature and in 2029 alone the amount will reach $550m.

Raising ‘Freeport out of the ashes’

“Amortisation of external loans will also exert pressure, since within the next two fiscal years $899m will need to be repaid. Domestic debt is also elevated and, in fiscal year 2023-2024, securities amounting to $779m are maturing. If market conditions continue deteriorating in the medium term, The Bahamas could potentially face difficulties to roll over existing debt. For these reasons, a close monitoring of debt trends and sound public debt management will be key during this and the next couple of years.”

The Government is keenly aware of such pressures. Simon Wilson, the Ministry of Finance’s financial secretary, could not be reached for comment before press time last night. However, he told Tribune Business in an August 2 interview that there are “no issues” over the Government’s ability to refinance some $3.466bn in combined Bahamian dollar and foreign currency debt maturing this fiscal year given its access to “credit lines”.

SEE PAGE B8

Sands: It’s the wrong marijuana ‘gold mine’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Free National Movement’s (FNM) chairman says the Government has delayed the “potential gold mine” of industrial hemp to focus on legalising a medical marijuana industry that is “unlikely to be a big economic boon”.

Dr Duane Sands told Tribune Business that “many ships have already sailed” when it comes to medical marijuana, and The Bahamas does not have the advantage of “being an early adopter” through the legislative reform package unveiled by the Davis administration last week.

Arguing that it will not be a major medical tourism driver, given that many such visitors can access the required marijuana derivatives far more cheaply and easily in their home jurisdictions, he added that

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Government and Grand Bahama Port Authority’s (GBPA) owners were yesterday warned the latter’s 3,000 licensees must “have a say” over any changes to its ownership and Freeport’s founding treaty. Kirk Antoni, the Cafferata & Company attorney and partner, told Tribune Business the approval of 80 percent of licensees is required to both amend the Hawksbill Creek Agreement, which has full legal and statutory effect, and/ or devolve the GBPA’s quasi-governmental and regulatory powers to a condo-type association.

His remarks came as the GBPA’s licensees seek to mobilise, and ensure they are not neglected in the battle for Freeport’s future, while also intervening in the Government’s increasingly acrimonious dispute

with the city’s quasi-governmental authority and its owners, the Hayward and St George families.

Mr Antoni, a prominent member of the 25-30 strong licensee body that previously issued a public letter to both Prime Minister Philip Davis KC and the GBPA’s owners over the impasse, told this newspaper the latter had agreed to meet with the group on September 6 while no response has yet been received from the Government.

And, in an effort to “swiftly” expand the group’s base, the Cafferata & Co partner said it is inviting all 3,000 licensees to another meeting later in September to advise them of the Hawksbill Creek Agreement’s benefits to their businesses and the rights it confers upon them.

A 60-year Freeport resident, Mr Antoni said his sole goal is “to bring Freeport out of the ashes”. He

Settle

$29m Exuma cays dispute ‘once and for all’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE ownership of two disputed Exuma cays, valued at a collective $29m, must be settled “once and for all”, a Bahamian attorney is urging.

Craig Butler, legal counsel to Samuel Burrows, who has launched a fresh bid to obtain a certificate of title to both Lumber Cay and Jim Cay via the Quieting Titles Act, and his attorney Andrew Allen, said both his clients were justified in their actions because the Chief Justice’s previous ruling never settled the ownership issue.

Rejecting assertions by a rival claimant that the latest Quieting Titles action amounts to a “mockery of justice”, he added that his clients will “seek to expedite” the Supreme Court’s investigation of who the cays’ true owner is so the “matter can be laid to rest”.

Mr Butler, referring to Sir Ian Winder’s earlier verdict, told Tribune Business: “During the hearing by the Chief Justice, there were five points of declaratory relief sought on behalf of the Nixon family and the Chief Justice only decided on three.

When companies succeed all Bahamians can prosper

In today’s dynamic world, where opportunities and challenges intertwine, the success of companies goes beyond their bottom lines. When companies flourish, the effects ripple through every aspect of our lives, leading to improved living standards, enhanced government revenue and a cycle of progress that benefits all. Let us delve into how economic growth transforms the landscape of The Bahamas, and how money flows through companies to create a harmonious circle of prosperity.

Economic Growth:

Elevating living standards

Picture this: The economy of The Bahamas is like a giant puzzle, where each piece represents a company contributing its unique strengths. When these companies thrive, the puzzle comes together, forming a vibrant economic landscape that raises living standards for everyone.

Economic growth is the engine that drives improvements in the quality of life. It creates job opportunities, fuels innovation and paves the way for investment in education, healthcare and infrastructure.

At the heart of this intricate puzzle lies the powerful engine of economic growth. Much like the driving force behind a high-speed train, it propels multiple positive changes that touch every facet of society. One of its most significant impacts is the creation of numerous job opportunities. As businesses flourish and expand, they require more employees to meet the rising demand for their products and services.

This surge in employment not only reduces jobless

numbers but also empowers individuals with a sense of purpose, self-sufficiency and the ability to contribute meaningfully to the national economy.

However, economic growth does not stop at just providing employment. It ignites a cycle of innovation and progress. When companies experience growth, they are motivated to innovate and evolve. New technologies, products and services emerge from this creative churn, enriching the nation’s economic tapestry and keeping it relevant on the global stage.

Moreover, as innovation becomes a cornerstone of economic growth, the country attracts investment from both domestic and foreign sources. This influx of capital further bolsters business expansion, adding new dimensions to the evolving puzzle and resulting in a more dynamic and interconnected economy.

The Flow of money through companies: A crucial cycle

Imagine companies as intricate ecosystems, each with their own unique rhythm and purpose. Just like the circulatory system in our bodies ensures the flow of blood, the flow of money is the life force that keeps companies alive and propels them forward. This financial dance is a crucial cycle that powers not only the businesses themselves but also the entire economy and, by extension, the living standards of individuals and families across The Bahamas.

At the heart of every company’s success is the generation of revenue. This revenue springs from the products they create or the services they offer. This initial influx of money sets the wheels in motion for the entire process. It is not just about numbers on a balance sheet; it is a tangible representation of the value a company brings to its customers and the market.

But revenue is only the beginning. Just as a growing plant needs nutrients to thrive, companies require resources to flourish. A significant portion of the revenue earned goes into covering various expenses. These expenses include the salaries of employees who work tirelessly to ensure a company’s operations run smoothly. These salaries, in turn, support households, families and communities.

Companies also allocate funds to procure raw materials, invest in technology and manage day-to-day operations. These expenses create a cycle of financial transactions that extend far beyond the company itself. Suppliers and service providers are paid, generating income for other businesses and individuals. This interconnected web of financial

interactions sustains not only the companies but also the larger economic ecosystem.

Job creation: Fuelling local support

When companies expand and flourish, they do not just generate revenue and profits. They become engines of empowerment that transform individuals into active contributors to their communities. At the heart of this cycle lies job creation. As companies thrive, they inevitably find themselves in need of more workers, more minds and more skills. This need translates into new job opportunities, welcoming individuals into the workforce and igniting the flames of ambition and potential. These jobs extend far beyond mere pay cheques; they offer a sense of purpose, belonging and fulfillment.

These roles empower individuals to not only support themselves and their families but also to become integral parts of a larger social fabric. A steady job is not just about financial stability; it is a platform for personal growth, skills development and the pursuit of dreams. Through these opportunities, companies lay the foundation for a more empowered and capable workforce, contributing to the overall improvement of society.

But this empowerment does not stop at the workplace. The money earned by employees flows back into local communities like a refreshing stream of vitality. As individuals receive their salaries, they become active participants in their local economies, each transaction casting ripples that touch countless lives. This financial flow takes the form of purchases from neighbourhood businesses, visits to local markets and meals at community restaurants.

These actions collectively fuel a chain reaction of economic resilience. The local businesses that benefit from this support can, in turn, expand, hire more employees and offer even better products and services. The vibrancy of these businesses contributes to a sense of community identity, strengthening the bonds that bind individuals together. Through this dynamic, communities become more self-sustaining, less susceptible to external economic shocks and better equipped to weather challenges.

Investing in Growth: Innovation and sustainability

A portion of the revenue that companies earn is reinvested in their own growth. This could mean research and development to create better products, embracing innovative technologies to stay ahead of the curve, or committing to sustainability practices that benefit both the company and the environment. Such investments not only ensure the company’s longevity but also contribute to the overall progress of society.

In essence, the flow of money through companies is not a one-dimensional process confined within office walls. It is a dynamic and intricate cycle that intertwines with the lives of people, the prosperity of communities and the growth of an entire nation. Recognising the importance of this cycle empowers us to appreciate the roles we can play in shaping the future – as future entrepreneurs, employees or informed consumers who support local businesses. The Bahamas’ economic tapestry is woven by the collective efforts of companies, and when these companies flourish, the entire nation prospers.

The National Development Plan

Perhaps one of the most significant ways the National Development Plan (NDP) can help companies grow is by fostering collaboration between the public and private sectors. Government policies that align with the plan’s goals, such as tax incentives for businesses, streamlined regulatory processes and investment in critical sectors, create an environment where businesses can thrive. This, in turn, translates into increased job opportunities, higher disposable income and greater local support.

The NDP is not just a document; it is a road map towards collective prosperity in The Bahamas. By fostering an environment that promotes business growth, innovation and skills development, the plan contributes to the inter-connected cycle of economic success. Through collaborative efforts, we can propel The Bahamas towards a future where economic growth, job creation, local support and overall prosperity flourish hand-in-hand.

Conclusion

The Bahamas, like any nation, aspires to create a brighter future for its citizens, and the journey towards achieving this vision relies heavily on the growth and vibrancy of its economy. With each piece that falls into place, the picture becomes clearer: The success of companies is the key to unlocking a realm of opportunities, progress and prosperity for all. As the Bahamian puzzle continues to evolve, may the pursuit of economic growth remain steadfast, fostering a society where every individual’s well-being is elevated and the collective dreams of a better tomorrow are realised.

Bahamasair launches new service to Exuma

BAHAMASAIR plans to launch a new route from Fort Lauderdale to George Town, Exuma, on November 15 this year as the national flag carrier celebrates its 50th anniversary.

"It's not just about flying from one destination to another; it's about making dreams take flight," said Bahamasair's director of commercial, sales

and marketing, Samantha Lookie. "With this new route, we're not only connecting Fort Lauderdale and George Town – we're connecting hearts, creating memories and fostering new beginnings."

Tracy Cooper, the carrier's managing director, added: “The launch of this route is just the tip of the iceberg, as the airline is

setting its sights on further flight service expansions and the acquisition of new airplanes. These endeavours will ensure that Bahamasair continues to grow hand in hand with its cherished customer base. We are committed to evolving, innovating and crafting experiences that stand the test of time."

PHARMACIST CONCERNS OVER MEDICAL MARIJUANA LICENCES

By NEIL HARTNELL and YOURI KEMP Tribune Business Reporters

CONCERNS have been voiced that persons and companies lacking pharmaceutical and medical qualifications can obtain licences to operate marijuana dispensaries under the Government’s proposed regulatory regime.

Shantia McBride, the Bahamas Pharmaceutical Association’s (BPA) president, confirmed to Tribune Business that some pharmacists have raised concerns that the Cannabis Bill 2023’s retail licensing provisions are too open and not stringent enough to prevent unqualified individuals and firms from operating medical marijuana dispensaries and therapeutic facilities.

But, pointing out that consultation over the Government’s medical marijuana reform package has only just begun, she added that these concerns can be addressed through “ensuring proper regulation and training is in place”. The Association will also tackle the issue in the recommendations and feedback it submits to the Government.

Revealing that the Association and other medical bodies had met with the Government prior to the public release of multiple new Bills and legal amendments, Ms McBride told this newspaper: “At this current time, we’re still in conversation with the

Government. Our discussions have just begun.

“The concern [over retail licences] was raised, and the minister has been open and the attorney general in discussions explained the parameters of the Bill to us. At this time, we’re having conversations with the Government and are ready to sort everything out between dispensaries and pharmacies. “Concerns were raised by some, but it’s ensuring proper regulation and training is in place, and we will definitely make the views of membership known. We’ve had conversations with them already, so we are moving forward with the discussion and are now adding in what the public’s view is. All the industries are in conversation and all are drafting our recommendations. At this time we’re making sure everything is covered and regulations will be in place.”

The ministers referred to by Ms McBride were Dr Michael Darville, minister of health, and Ryan Pinder KC, attorney general. Under the proposed Cannabis Bill 2023, a retail licence will be needed for the operation of “a cannabis dispensary and therapeutic facility” plus the sale of marijuana and associated accessories “for medical, scientific research and religious purposes”.

However, it does not state if any medical, pharmaceutical or other academic/industry specific

qualifications are required to obtain such a licence. The Bill only disqualifies applicants if they were previously convicted under the Dangerous Drugs Act, Proceeds of Crime Act, Criminal Justice (International Co-Operation Act) or the actual Bill itself, while the grounds for not issuing a retail licence, suspending or revoking it make no mention or reference to qualifications.

It now remains to be seen if this will be addressed in the Cannabis Bill’s regulations. Meanwhile, Ms McBride said her Association and its members are “on board” with medical marijuana but do not believe there will be a stampede for the product among local consumers. She said: “The draft document has been out there for canvassing the market and the industry, and we’re on board with it. We don’t have any objections to the Bill. We’re just working on strategising and reading it, so since it’s out now we want to put in our recommendations and move forward with the Bill.”

“Under the proposed regime, cannabis will only be legally accessible for medical, scientific or religious purposes,” the Cannabis Bill’s “objects and reasons” section added. Corporate entities seeking a licence for the cultivation, retail, transport or religious use of marijuana must be fully or 100 percent Bahamian owned. This aligns

AML Foods eyes 75 jobs via new Carmichael store

AML Foods says it has acquired a 4.23-acre site located between Faith Avenue and Sir Milo Butler Highway as the future home for its planned Solomon's Carmichael store that will create between 65-75 full-time jobs.

The BISX-listed food retail and franchise group, in a statement, said it plans to construct a shopping centre on that site where its Solomon's food store will serve as the anchor tenant.

The new store's format will be similar to that of the Solomon's Yamacraw store in eastern New Providence and its downtown Freeport outlet in Grand Bahama.

Gavin Watchorn, AML Foods' chief executive and president, said: “This acquisition represents part of our company’s strategic growth plan, which involves entering and servicing new markets by expanding our Solomon’s brand format. The proposed development is also similar to the plans that we have for the Charles

Saunders Highway property that we purchased."

He added that the new store will create about 65-75 new jobs when completed.

“We are excited to begin serving the south-west New Providence community, bringing the quality and great value that is synonymous with our Solomon’s brand. Our aim is to always offer the best grocery store standards, convenience and shopping experiences for Bahamians, residents and tourists alike, so continuing to invest in our business is of utmost importance”," Mr Watchorn said.

The AML Foods chief could not be contacted for further comment, and the company's statement did not give an expected construction start or completion date. Nor was the size of the planned investment disclosed. However, the BISX-listed group has made no secret of its ambitions to build a store network that covers all populated areas and

communities in New Providence.

It disclosed several years ago that Solomon's Yamacraw was the first in a series of "neighbourhood" food stores it planned to roll-out across the island, with locations in both south central and south-west New Providence targeted. The latest real estate purchase means that it now owns land in two separate locations where it can bring these ambitions to fruition.

AML Foods, in its statement, said the Solomon's Carmichael store's development - and construction of the associated shopping centre - will be its next major project once the relocation of its Cost Right Nassau format from the Town Centre Mall is completed. That involves the renovation of the current Solomon’s SuperCentre building on the East West Highway, with the two brands set to eventually share that space.

with the National Investment Policy, which permits Bahamian ownership only in sectors such as retail and transport.

Foreign investment, ownership and participation, though, will be permitted when “applying for an analytical testing licence, manufacturing licence or research licence”, but there must be at least a 30 percent Bahamian equity ownership interest in the entity involved. The Government has now moved into the consultation phase of the much-anticipated cannabis legalisation and proposed regulations.

“They would mostly be controlled substances and so pharmacists are aware of

the Dangerous Drugs Act and controlled substances. It is an understanding with the pharmaceutical order and the pharmacology of cannabis,” Ms McBride said. “It’s just a matter of us ensuring that each aspect of the Bill does what it needs to do to protect individuals who will be using it, and also that the pharmacies would be guided on what it entails.

“I don’t think people are going to be lined up for marijuana at the pharmacies, but there is a need for it in treatment, so this is why it was brought forward to the table. There is a need for it in terms of treating patients that physicians feel the benefit for medicinal

marijuana, but I don’t see it as persons will just be lining up for medical marijuana unless they have a need for it and their physician prescribes it.”

Patients will not have to visit illegal drug dealers for a half an ounce of marijuana once the legislation is passed, which is the “best case scenario” with pharmacies involved in dispensing the plant. “You have to consult with your physician, find out what your condition is and see within the Act what your treatment is and the benefits. Then you would go to the pharmacy as per recommended by the prescription of the physician,” Ms McBride said.

TAXI UNION CHIEF WANTS 'HUSTLERS AT DOCK' END

the taxi drivers and the tourists. We are hell bent on sorting out that haggling of the tourists in the downtown area on the sidewalks," he added.

THE taxi union's president says the industry is seeking to shed its "hustlers at the dock" image after several drivers protested over the Nassau Cruise Port's new call-up system and police efforts to enforce it.

Wesley Ferguson, the Bahamas Taxi Cab Union's (BTCU) chief, told Tribune Business he was not intending to involve himself and the union in the row and urged all drivers to use the space allocated by the cruise port for soliciting fares.

"The BTCU took more than two years negotiating with the Nassau Cruise Port to create a safe, pleasant and fluid environment between

Mr Ferguson responded after some drivers on Friday protested outside the Nassau Cruise Port, and Tourism Police Station, over what they alleged was a heavy-handed approach to enforcement by Royal Bahamas Police Force officers that is unduly restricting their ability to earn a living.

One driver was purportedly taken into custody for what onlookers said was “just standing on the sidewalk". Pointing out that the the sidewalk is public, not private property, a few drivers said they had no choice but to stand there and market the services they offer to passing cruise ship

passengers so that visitors know they are there and what they provide.

Voicing disquiet with the call-up system, at least one driver asserted that Mr Ferguson was too close to Nassau Cruise Port and that the union was not looking after their interests. Lincoln Bain, the Coalition of Independents leader, was present and met with police officers, after which he said law enforcement had agreed the sidewalk was public property and taxi drivers can stand there.

Mr Ferguson, though, said: “We have aggressively negotiated with the Nassau Cruise Port for a friendly environment between the Nassau Cruise Port and the taxi drivers and the cruise ship passengers. In our opinion, it is satisfactory between the BTCU

and the Nassau Cruise Port in that the system on the inside of the port is working properly.”

There is a 22-space taxi bay inside the Nassau Cruise Port where taxi drivers can log-in and line-up to pick up passengers coming off visiting ships. Mr Ferguson said there is no reason for taxi drivers to be standing on the sidewalk hassling tourists, adding: “You don’t have to get up into a tourist's face. We have an air-conditioned holding area for taxi drivers. We also paid for union representatives to gather up people for the taxi drivers so they don’t have to haggle the tourists or overcharge them."

Haggling tourists was supposed to be eliminated by the new call-up system, and Mr Ferguson added: “The system at the Nassau Cruise Port is working perfectly,

but we have a few taxi drivers who have decided upon themselves...... We want the taxi drivers to be seen as ambassadors and not just hustlers at the dock. We don’t want them sleeping and using the rest room at the dock, either.

“Whatever is going on between the police and those taxi drivers, the BTCU is separating itself from that because 95 percent of the taxi drivers from the cruise port work from within the Nassau Cruise Port facility."

Leamond Deleveaux, deputy police commissioner, on Friday urged local taxi drivers to "resist" the kind of behaviour that amounts to harassment of tourists. In one social media video, a police officer tells a taxi driver he cannot talk to tourists about his services because it would be deemed

'solicitation' and break the law.

"I invite you to take a drive downtown. Police officers are doing an aggressive approach. We've had a number of tourist complaints and so police officers are there. There is supervision. Will we need more? Absolutely. It is always good to have more supervision, but we're doing the best that we can," he said.

"We want our country to have tourists come back because, as you know, we depend on tourism totally, for the most part, for our economy. So we're saying to the public, the young people and the not-so-young people who are out there harassing the tourists, we're saying to you; 'Resist that type of behaviour'. We know that you all need to make money but, of course, there is a proper way to do it."

Summit explores multiple financial technology uses

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

FUTURE opportunities for financial technology were debated last week as executives from government and financial services gathered in Nassau for MasterCard’s first Fintech summit in the Caribbean.

Attendees participated in several sessions that explored ways to improve financial inclusion while encouraging innovation in safe and convenient digital payments.

According to the study, The state of financial inclusion post-COVID-19, conducted by MasterCard and Americas Market Intelligence, although the global pandemic accelerated the use of digital payment

methods in Latin America and the Caribbean there are still communities that rely exclusively on cash to manage their finances and are therefore excluded from the formal financial sector.

To help address these challenges, MasterCard said it is working closely with multiple fintech firms, granting them access to a broad range of programmes and initiatives to help their launch, growth and diversification while ensuring simple, safe and smart payment experiences.

During the summit, the company highlighted the relevance of building strong public-private partnerships (PPPs) that foster the development of a robust, innovative, and growth-prone payments ecosystem, thus bringing

more Caribbean nations into the digital economy.

"The Caribbean fintech ecosystem shows great promise and continued growth. At MasterCard, we understand and value the positive impact fintechs have in fostering the region's digitalisation, financial inclusion and overall economic growth," said Jimena Elia, country manager for West & Dutch Caribbean Markets at MasterCard.

"As such, we have become their partner of choice, granting them access to our technology, resources, talent and vast network of contacts to help them keep on growing and innovating. I am confident that together we will build a more inclusive and digitised future for all Caribbeans."

Investors advantage

By CHRIS ILLING

ActivTrades Corp

The boom in artificial intelligence continues to fuel profits and sales for chipmakers. Nvidia exceeds expectations with its figures, the stock climbs to a record high and makes chief executive, Jensen Huang, $4bn richer.

Nvidia chips and software are particularly well-suited for applications based on artificial intelligence. Among other things, they are used to teach artificial intelligence (AI) programmes such as the chatbot ChatGPT. In the future, AI will not only rhyme, paint and compose, but will also automatically complete a considerable part of many work tasks.

Thanks to the uninterrupted boom in AI, Nvidia has exceeded market expectations with its financial

figures and outlook. Sales in the past second quarter amounted to $13.5bn, the most valuable listed chip manufacturer announced on Wednesday, after the US stock market closed. About $11bn had been expected. For the current third quarter, sales should be at $16bn. Nvidia also announced a $25bn share buyback programme.

Last week, the group’s shares rose to an all-time high of $502.66. So far this year, Nvidia stock has tripled in value. Hardly anything else can set the price of a share in motion as much as the magic words ‘artificial intelligence’ (AI).

Nvidia’s competitor, AMD, wants to break the supremacy now. The company is the strongest in its field of pursuers, the only rival to be taken seriously. Many experts agree that the chips from Alphabet, Amazon and Microsoft are hopelessly inferior to the Nvidia material. AMD’s chief executive expects the market for AI accelerator will grow by an average 50 percent to $150bn over the next four years. Because Nvidia dominates the market, the company can command prices five times the cost of production. In AMD’s favour is the fact that nobody wants Nvidia

to rule alone - not the cloud giants, and not the global developer community either. The company recently presented the new CPU processor generation under the name MI300A, which is said to be eight

PUERTO RICO BOARD SUBMITS THIRD PLAN IN ATTEMPT TO RESTRUCTURE POWER COMPANY DEBT OF $10 BILLION

By DÁNICA COTO

Associated Press

A NEW plan for restruc-

turing $10 billion in debt owed by Puerto Rico's power company was filed late Friday in the latest attempt to end a lengthy bankruptcy process marked by acrimonious negotiations.

The plan filed by a federal control board that oversees the U.S. territory's finances would cut the debt of Puerto Rico's Electric Power Authority by nearly 80% to some $2.5 billion.

"We hope that we will be closing not just the chapter but most of the book on the largest public sector bankruptcy in the United States," Robert Mujica, the board's executive director, said in a meeting with reporters.

If confirmed by a federal bankruptcy judge, the plan would mean an increase in already high power bills for many people on the island if the new charge is approved by Puerto Rico's Energy Bureau.

On average, residential bills would increase by nearly $9 a month and commercial bills by $35.

Some 1.4 million customers would not pay the new charge if they consume less than 425 kilowatt-hours a month, the plan states. The average monthly power consumption for a U.S. residential customer is about 886 kilowatt-hours,

according to the U.S. Energy Information Administration. Recent electric bill increases have been criticized by many on the island of 3.2 million people hit by power outages ever since the grid was razed by Hurricane Maria in 2017, with

crews only recently starting to rebuild it.

The newest debt restructuring plan is backed by companies that hold more than 40% of uninsured bonds issued by Puerto Rico's Electric Power Authority, according to the

board. Those companies agreed to buy new bonds issued by the power authority, which would then use that money to pay some creditors in cash. Friday's filing comes more than eight years after Puerto Rico announced that it was

times more powerful - and five times more efficientthan the previous model.

The age of artificial intelligence is no longer a vision of the future. The first productivity gains have already been made and are

unable to pay its more than

$70 billion public debt, which was accumulated through decades of corruption, mismanagement and excessive borrowing.

In 2017, it filed for the biggest municipal bankruptcy

increasing every day. Gains have also been made in the portfolio of investors who are prepared for the new technology age, and where the quantity of technology shares is growing.

in U.S. history. Since then, most of the debt owed by Puerto Rico's government agencies has been restructured, except that of the power company, with efforts stalled amid tense and drawn-out negotiations.

LEGAL NOTICE

ARLOG CORP. LIMITED

Registration No. 126752 B INTERNATIONAL BUSINESS COMPANIES ACT (No.45 of 2000)

In Voluntary Liquidation

Halsbury Chambers is seeking to employ an Attorney who specializes in Commercial Law and Civil Litigation with a minimum of seven (7) years practical and professional experience.

Applicants should be organized, self-driven, innovative, diligent, a team player and have the ability to work with minimum supervision.

Successful applicants will be eligible to participate in the company’s medical insurance plan and proft-sharing scheme. Salary will commensurate with experience.

Interested applicants should deliver their curriculum vitas to carolyn.adderley@halsburylawchambers.com

Notice is hereby given that in accordance with Section 138 (8) of the International Business Companies Act, No.45 of 2000, the dissolution of ARLOG CORP. LIMITED has been completed, a ertifcate o issolution has een issued and the Company has therefore been struck off the Register. The date of completion of the Dissolution was 30th day of January, 2023.

“On that basis, the title is still open, and needs to be decided via a proper investigation by the courts. We’re going to seek to expedite this and bring it on as soon as possible so, for once and for all, the question can be determined and the matter laid to rest.”

Ambrose Nixon, one of the executors for the late King Richard Nixon’s estate, the rival claimant that won the legal battle before Sir Ian, previously told this newspaper that the latest quieting action was “a waste of the court’s time” given the previous reversal that Mr Allen and Mr Burrows suffered. However, Mr Butler refuted this on the basis that Sir Ian never decided who the true owners are, leaving the issue to be determined by a fresh hearing. He also took issue with a previous report that detailed how Darren Higgs,

EXUMA CAYS DISPUTE ‘ONCE AND FOR ALL’

a witness for Mr Burrows at the trial before Sir Ian, “testified in the trial that he had been promised a boat and a house ‘if he testified that Samuel lived on Lumber Cay for the last 20 years’.”

Mr Butler said this evidence was never mentioned at the trial but, rather, was contained in an affidavit that Mr Higgs swore on April 24, 2018. Mr Higgs instead sought “to recant the affidavit” during the trial, leading to Sir Ian branding him as “wholly unreliable”.

Sir Ian, in his verdict, found that Mr Burrows “misled the court” by failing to disclose that he was placed on Lumber Cay by Wayde Nixon, a member of the Nixon family, to be a caretaker. However, Mr Allen said in a subsequent interview: “We’re going to present the true story. We have the opportunity to present the actual story.

“This is Samuel’s possession, and if something was

taken fraudulently from King Nixon, then prove it. Prove he owned it and it was taken from him. We’re saying King Nixon’s estate never owned the property.” Mr Burrows is the late King Nixon’s brotherin-law and uncle to all his children, many of whom successfully opposed him in the original Quieting Titles action.

Mr Allen, though, also pointed out that Sir Ian’s ruling did not give or confirm that King Nixon’s estate has title to, and is the true owner, of both cays. He added: “What it does reflect is that the Chief Justice did not give the cays to them. He restored the status quo and left the cays in exactly the same condition as before, which made us feel we were entitled to quiet them again.”

Both Mr Allen, son of late finance minister, Sir William Allen, and Mr Burrows, were among those who featured in Sir Ian

Winder’s September 12, 2022, verdict where he set aside a previous Certificate of Title to both islands on the basis that it had been obtained via fraud and abuse of the Quieting Titles Act. The certificate had been obtained by the same Mr Burrows in partnership with Gardie Nixon, with both men represented by Mr Allen. But, slamming the “falsehoods” and “deliberate concealment” employed by the duo to obtain title to the islands, which was granted by the Supreme Court via a different case on July 18, 2017, the Chief Justice said the fraud meant the later sale of both islands to companies owned by a Virginia-based developer, David Tilton, was “null and void”.

His verdict detailed allegations that the two islands were sold to Mr Tilton for a combined $1.8m - a sum equivalent to just 6.2 percent of their combined

appraised value. Lumber Cay, in particular, was said to have been appraised at $20m alone, and offers a prime real estate/tourism development opportunity as a 30-acre parcel located just 700 feet south of Staniel Cay, the renowned boating and second home destination.

Mr Allen was also described in the judgment as acting for Mr Tilton and his companies. He was said to have been a president, director and shareholder of Archipelago Development & Resorts III and Jim Cay Company, with Mr Tilton funding the quieting action, but Mr Allen subsequently vehemently denied that there was any land fraud or that he played a role in any such conspiracy, adding that the Chief Justice’s verdict got it “very, very wrong”.

Jim Cay is an eightacre island situated north of Lansing Cay, between Musher and Hog Cay, but Mr Allen said

Sands: It’s the wrong marijuana ‘gold mine’

FROM PAGE B1

industrial hemp production remains “the big game changer” for The Bahamas given the variety of goods than can be produced and the amount of land required for crop cultivation and growing.

Dr Sands, a former minister of health, told this newspaper that if properly “scaled up” industrial hemp could provide multiple new job opportunities for Bahamians and “get the

Family Islands into some new economic activity”. The Government, though, has opted to focus on medical marijuana, and use for scientific and religious purposes, but not industrial hemp which may be legalised at a later date.

Acknowledging that he has “only perused” the proposed legislative reforms unveiled by the Davis administration, the FNM chair said: “I think it’s a pretty conservative start. I

suspect that the hype will exceed the actual impact because, while it does move the goal posts a little bit, I’m not so sure it’s going to have the level of impact that people think it will.

“There will certainly be utility, or use, for it but I don’t think it’s going to have a huge impact or huge market in The Bahamas.” Dr Sands said much depends on the level of competition The Bahamas faces from other countries

that have legalised marijuana for medical use, pointing out that many Western Hemisphere rivals have the advantage of several years’ head start.

Noting that the National Commission on Marijuana began its research when he was minister, submitting its final report in August 2021, he explained: “It really depends on what the rest of the world and rest of the region is doing. I think many ships have sailed. We

are not an early adopter; we are a couple of years later to the market, so there are many other countries that have already opened up to medical marijuana.

“I don’t see this as being a huge draw to The Bahamas to get medical marijuana. I don’t think it’s going to be a big boon for medical tourism, let’s put it that way. It’s a step. I think they’ve [the Davis administration] gone back to the drawing board and come out with a legislative platform that moves things forward a little bit. The expunging of records for possession of small amounts is a good move.....

“Having read what they’ve released, congratulations, but I don’t think it’s a huge impact on what happens here if the market is simply medical marijuana for Bahamians. Why travel from a place that already has medical marijuana to come to The Bahamas? Let’s see what happens, but certainly I don’t think it’s going to have a whole lot of impact on what happens certainly in our economy.”

Dr Sands, though, was more enthusiastic about the potential for industrial hemp, which can be employed to produce a variety of products ranging from clothing and hardware to ropes and other building materials. “That is where the gold mine could be,” he told Tribune Business. “We have significant amounts of arable land that could possibly be used to grow hemp.

“I think there’s some exciting possibilities there. Eleuthera, there’s land at Hatchet Bay and elsewhere. Long Island. I think a number of Family Islands could possibly be revitalised if they have scaled-up projects to grow hemp and use it for the production of construction materials and durable goods. That, I think, is the more exciting opportunity.

“I think hemp would do a lot to resuscitate the economy, provide a number of new jobs opportunities, get the Family Islands into some new economic activity and be a game changer.” Dr Sands’ views, though, were contradicted by the National Commission on Marijuana, which recommended in its August 2021 report that The Bahamas focus on medical marijuana - as the Davis administration has done - as opposed to industrial hemp.

While the “potential exists for a sustainable industry” for both medical marijuana and industrial hemp in The Bahamas, and with both needing to be explored, given that studies have shown plants for both cannot co-exist separate islands and regions of The Bahamas will have to be “zoned” for one type

previously the new action is “based on a completely new set of circumstances” to what was before Sir Ian. Asserting that there are no plans to ‘flip’, or sell, either cay to Mr Tilton or anyone else should his client be successful, he added that Mr Burrows’ claim is based on a possessory title - meaning that he actually lived on, or worked on, both cays for an extended period of time - “without those documents tying us to” the estate of the late King Richard Nixon. Mr Allen, in a letter to this newspaper, added: “Matters brought before the court under the Quieting Titles Act are one of three instances where the court acts in an investigative (rather than merely adjudicative) capacity. It is fully capable of discharging this duty in a just and equitable manner without the sideshow of litigants sparring via the media.”

or the other as they cannot cross-pollinate. “Cannabis for the hemp industry would require a different strain or species of the plant,” the Commission said. “The plant used for industrial hemp is traditionally high in CBD. There are many uses for hemp-based products in the general population, from hempcrete (a construction material) to clothing and hardware such as ropes and other building materials.

“Looking at the global trends, however, it is not expected that there will be an explosion of products into the industrial hemp market. This is because the prohibition on industrial hemp has been lifted for much of the world. Hemp clothing is available, but not in large quantities. The same applies for other hardware hemp that can be and is being produced.

“What is observed is an explosion in the health and recreational uses of hempderived CBD and products. Products range from every aspect of the consumer experience: Smokable products, as well as edible, topical and pet wellness products,” it added.

“The absence of explosion of the hemp industry compared to the production of cannabis products for human consumption may be attributed to the initial start-up costs for production of the hemp products, coupled with a low market demand. This, therefore, does not make production a priority for businesses operating in this space. On the other hand, the costs to set up operations designed to cultivate and extract for human consumption are far more cost effective with a much higher return on investment.”

Dr Sands, though, told Tribune Business that The Bahamas needs to “identify new products and industries” rather than seek to “squeeze blood out of a rock” amid signs the Government is going to miss its VAT revenue target for the recently-closed 2022-2023 fiscal year.

“Although it would take some time to ramp up, I think if you’re looking for new frontiers and new economic opportunities, we could bring this online in a couple of years,” he added of industrial hemp. “It’s a pity they have not seized on that opportunity. That could be an economic game changer.

“I think this issue of medical marijuana is more an effort to change the public narrative. You’re going to enjoy this, like this because it’s popular. That ship has sailed. The unbridled enthusiasm for cannabis has been watered down a little bit. The initial ‘damn the torpedos, full speed ahead, let’s do this has been tempered by real world experience. Yes, there’s been some profits, but challenges and lessons learned etc.

“Whereas two to three years ago everyone was talking about cannabis, that conversation has finished. People are still finding ways to make it commercially successful, but it’s not been a gold rush.”

echoed calls for a change in the GBPA’s ownership and leadership, but not through a government takeover or via the approach the Davis administration is pursuing, instead urging that both families’ interests be acquired by private investors with the necessary capital, “vision and business sense” to move the city forward and fulfill its potential.

“We have extended an invitation to both the Port and the Government, and received a response from the Port. We have organised a meeting with the Port, and I believe it’s on the 6th [of September], but the Government have not been responsive,” Mr Antoni told Tribune Business.

Describing the licensee group as “very, very concerned” by the ongoing hostilities between the Government and GBPA, given the uncertainty this creates for the business climate and deterrent effect for new investors, he urged both parties to “get together and resolve their differences outside the public domain”.

Acknowledging that this task has been made more difficult following the Prime Minister’s assertion that the Government has taken over the GBPA’s role and is “subsidising” its obligations and responsibilities, an argument that was subsequently repeated several times by Fred Mitchell,

‘Freeport out of the ashes’

minister of foreign affairs and the public service, Mr Antoni said: “We’re trying to keep this as apolitical as possible.

“We’re going to have an education seminar in a couple of weeks’ time - I think it’s September 11, but I’m home right now - where we will invite all licensees to attend a meeting and educational seminar to educate them on the Hawksbill Creek Agreement, the GBPA and what has been done to-date, and give everyone an idea of where they stand.

“Not only that, but to advise both parties [the Government and the GBPA] that we need you to resolve your differences because this change in ownership and stakeholders at the GBPA, you need approval of 80 percent of the licensees to do so......,” he continued.

“We want to say to both the Government and the GBPA: ‘Listen, guys, we want you to sit down and resolve your differences quietly outside the public domain, and remember we have a say in what you want to do with a change in ownership at the Port Authority.”

The Prime Minister launched the Government’s offensive against the GBPA in the recent 2023-2024 Budget debate, when he argued that the quasi-governmental authority and its shareholders are failing

to live up to their commitments under the Hawksbill Creek Agreement to maintain, grow and invest in Freeport’s development. He also charged that Freeport’s founding treaty is also proving inadequate as a platform for attracting fresh private investment and economic growth.

He subsequently said the Government “has begun to invoice the Port Authority” for the reimbursement of expenses that Bahamian taxpayers have incurred in providing public infrastructure and services in Freeport - investments that Mr Davis argued are the GBPA’s obligations, although the latter has refuted this. And, last week, Mr Davis said his priority is to “right the ship” at the GBPA because its owners’ interests are not aligned with those of Grand Bahama residents.

Mr Antoni, meanwhile, told Tribune Business that his and the licensee group’s primary objective is to move Freeport forward for the benefit of all licensees and residents. “My sole intent is to bring Freeport out of the ashes and whatever is in the best interests of Freeport,” he said. “I don’t care who is in power, but I want the Port Authority to be changed in terms of its shareholders and management. “That is our drive. We want people to come in and take over the Port

Authority, and have the funds, vision and business sense because, in the last ten years or more, that’s not been the status quo.” He added that the licensee group has drawn up an agenda for the September 6 meeting that it will present to the GBPA, and said: “Once we’ve met with the Port Authority, if the Government doesn’t want to meet with us we’re going to move ahead with our education seminars so the licensees understand what their rights and obligations are under the Hawksbill Creek Agreement.” Tribune Business understands that licensees want to hear the views of the GBPA and its shareholders on the present state of relations with the Davis administration. They are also said to be seeking reassurances on key tax breaks they currently enjoy, and whether and for how long these incentives will continue.

This is related to the Grand Bahama (Port Area) Investment Incentives Act 2016, which mandated that all GBPA licenseesbesides the Port Authority itself and Hutchison Whampoa - apply to Nassau for the renewal of real property tax, capital gains and income tax-related exemptions. The Act has never been implemented but the Minnis administration, which promised to repeal it, never did.

David Wallace, president of Arawak Adventures and Commercial Tours, the Pirate’s Cove operator, told Tribune Business that the Government must “take the high road” and see how it can work with the GBPA and its licensees to Freeport and the country’s advantage instead of engaging in a public “fight”.

A member of the same group with Mr Antoni, he said: “We are still calling on the Government to, for lack of a better word, to take the high road. Instead of Fred Mitchell adding fuel to the fire, I think the Prime Minister needs to call a meeting, sit with the licensees and Port Authority. Let’s discuss this at a mature level around the table and see how we can collaborate and co-exist instead of speaking as if we’re having this fight.

“That’s what the Port Authority said last week; that they’re not interested in a fight with the Government. But the Port Authority is not going to roll over and let the Government bully them.” Mr Wallace implied that the Government should follow the then-Ingraham administration’s 1993 lead, when it agreed to extend Freeport’s tax breaks and investment incentives in return for the GBPA constructing public infrastructure such as schools and a sports complex.

Turning to the September 6 meeting with the GBPA,

the Pirate’s Cove chief said: “It’s a meeting of dialogue. It’s a meeting to talk about where we are, how they see themselves, how they see addressing the situation with the Government without having this battle in public.

“I also know there is an attempt by us, the same group, to call of the licensees to a meeting where we want to talk to them and update them all on the benefits of the Hawksbill Creek Agreement. I believe many people in Freeport have never read the Hawksbill Creek Agreement. What do they stand to lose if the agreement goes away earlier rather than later?

“We want to have a meeting with them to update them on the plans of the Port Authority. We’re going to seek to have the Port Authority at that meeting to talk about all the projects they’ve advanced to give Grand Bahama hope. We want to have both Rupert Hayward and Sarah St George’s view as to what they intend to to do make the Port Authority stronger and more resilient today,” Mr Wallace added.

“In 60-odd years times have changed, so we should look at how to make the Port more relevant than it was 60 years ago.”

CONDO FOR

–

IDB warns Bahamas on rollover ‘difficulties’

Mr Wilson said at the time he was “very confident” the Government will be able to rollover, or refinance, more than 28 percent of its total debt portfolio during the coming 12 months based on feedback already received from investors and holders of these securities. “We have done market reads and have credit lines available,” he said.

The Bahamas has to refinance some $868.1m of external debt, meaning foreign currency-denominated bonds and other IOUs held by overseas investors, and $2.598bn in domestic debt held by Bahamian institutions and individuals over the 2023-2024 fiscal period which closes at end-June next year.

However, one financial source, speaking on condition of anonymity, said: “The IDB is sounding the alarm. That’s pretty clear. There’s still tremendous medium term issues given the amount of debt maturities that the Government has to rollover. That means that they have to be judicious with their budgeting plan, restrain expenditure and improve revenue yields.

“The emphasis on enforcement is the right thing, but that and the incremental measures they have taken will not yield enough to put us on a solid footing.” Without increased revenue, the source said the

Government might have to look at spending cuts to offset any shortfalls, and hit its $131m deficit target for 2023-2024, rather than simply seek to hold total expenditure at just over $3bn.

“The good news is we’re not in a critical space yet, but the bad news is if we don’t take steps to achieve comprehensive fiscal consolidation that could put the finances at risk and have consequences for all of our debts,” the source added. They questioned whether there the IDB report may have any impact on the multilateral lender’s willingness to provide the guarantees the Government is seeking to access low-cost foreign currency loans this year.

The prevailing high interest rate environment, as global central banks seek to combat inflation, and widening emerging market spreads against US Treasuries, mean The Bahamas is presently avoiding the international bond markets for capital raising given the higher costs (rates) it would have to pay. This would merely add to the alreadyhigh interest burden on Bahamian taxpayers.

The Bahamas’ existing international bond issues seem to have stabilised on the global markets. The $300m bond, priced at 6.95 percent and due to mature in 2029, closed last week at a near-20 percent discount to par and an 11.795

NOTICE is hereby given that GINETTE METRETS, of #8 Poinciana Avenue, New Providence, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 28th day of August, 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

percent yield on the Frankfurt exchange. The $825m bond, placed at 8.95 percent during COVID and due to mature in 2032, is presently at a near-15 percent discount to par ad 11.9372 percent yield.

However, the IDB’s concerns are in line with those of Moody’s, the credit rating agency, which warned in its latest June 2023 update that “the major risk” facing The Bahamas is the potential difficulties it will encounter in refinancing some $1.9bn of maturing debt at reasonable interest rate costs.

Noting that these refinancing needs, equivalent to 14.3 percent of Bahamian gross domestic product (GDP), will come due in the 2023-2024 fiscal year, Moody’s said the Davis administration will “need to find alternative financing sources” given that international capital markets are effectively closed to it due to the high prevailing interest rate environment.

“The major risk for the sovereign [The Bahamas] centres on challenges in financing and refinancing its upcoming maturities. Even with a narrowing fiscal deficit that turns to a surplus in fiscal 2025, the Government faces large gross financing needs. The Government will see a peak in maturities due in fiscal 2024, when gross refinancing needs reach 14.3 percent of GDP,” Moody’s said.

“Although the Government doesn’t intend

to access international bond markets through commercial issuance, it will need to find alternative financing sources to repay upcoming external amortisations amid still tight financing conditions. Refinancing upcoming maturities at higher borrowing costs would weigh on the Government’s debt affordability.”

The IDB, meanwhile, said The Bahamas also faces “the not easy task” of using its post-COVID tourism boom to improve public infrastructure and physical skills so that the financial benefits are maximised by the country. “The Bahamas is experiencing a tourism boom since the easing of international travel restrictions since mid-2022, and visitors from key source markets make up for the inability to travel during the previous two years,” it said.

“Such boom is having the expected positive impact on the Bahamian economy: Increasing employment and raising government revenue. Bahamian society is in a good position to make the most of the tailwinds from the tourism boom. Increasing investment in both physical and human capital to diversify the economy will be key to increasing medium-term growth and productivity.

“Accumulating international reserves while managing the fixed exchange rate regime, and increasing fiscal buffers,

NOTICE

NOTICE is hereby given that JASON FRANCOIS of P. O. Box EX-29139, Bahama Sound, Exuma, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twentyeight days from the 28th day of August, 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

are key for the bad times that might come in the form of natural disasters.”

Looking ahead, the IDB added: “Beyond the shortterm, the tourist boom is an important opportunity to be taken advantage of to improve Bahamian lives.

“These opportunities are not occurring only in activities associated with lodging and related activities, but also for the structural development of the country such as the improvement physical and digital infrastructure and deepen human capital development. Macroeconomic policy management has proven resilient and able to deal with several and consecutive negative shocks; now it is time for the not easy task of administering a boom to accomplish the

goals set up in the Government’s Budget.....

“The fiscal deficit has narrowed in a considerable way over the last two years of post-pandemic recovery thanks to the authorities’ efforts to increase revenue collection and contain and optimise fiscal expenditures as well as enacting a series of institutional reforms to support sounder fiscal management. All these efforts are just starting to bear fruit, so continuing this path will be very beneficial to lower the perception of risk in international markets as well as to also free up resources for the development of the private sector, particularly small and medium-sized enterprises (SMEs).”

NOTICE

NOTICE is hereby given that

LEONIE MARCIA BLAIR of P. O. Box N-9249, #7 Wimpole Street, New Providence, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 21st day of August, 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that WILMIDE JOSEPH, of Weybridge Road, New Providence, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 21st day of July, 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that JOHNSON LOUIS of George Town, Exuma, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 21st day of August, 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

Auto workers vote overwhelmingly to let union leaders call strikes against Detroit companies

By BRUCE SCHREINER AND TOM KRISHER

Associated Press

AUTO workers have voted overwhelmingly to give union leaders the authority to call strikes against Detroit car companies if a contract agreement isn't reached.

The United Auto Workers union said Friday that 97% have voted in favor of authorizing one or more strikes against Stellantis, General Motors and Ford. Such votes are almost always approved by large margins.

Contracts between the union representing about 146,000 workers at Stellantis, General Motors and Ford expire at 11:59 p.m. on Sept. 14. UAW President Shawn Fain said earlier this week that negotiations with the companies are not progressing fast enough. But he also said a strike is not inevitable.

Contract talks with the Detroit Three began in July, but Fain has consistently said the companies aren't bargaining seriously.

In a statement Friday, the UAW said the vote does not guarantee that a strike will be called.

Fain told members on Facebook Live Friday that the union still hasn't

“Things could always shift in bargaining if something miraculous happened with one of the companies, it could change. We want contracts by Sept. 14 with all three.”

picked a target company for a strike and could walk out against all three.

"Things could always shift in bargaining if something miraculous happened with one of the companies, it could change," he said. "We want contracts by Sept. 14 with all three."

The companies have said they're bargaining in good faith at a time of unprecedented change in the auto business. The industry is spending billions to make the transition from internal combustion engines to battery power to cut pollution and fight climate change. Stellantis, which has drawn much of Fain's ire in recent weeks, said Friday that negotiations "continue to be constructive and collaborative." The company said it wants an agreement that will balance employee concerns and position Stellantis to "meet the challenges U.S. marketplace and secures the future for all of our employees, their families and our company."

Ford said it's working with the UAW on "creative solutions during this time when our dramatically changing industry needs a skilled and competitive workforce more than ever."

President Joe Biden said Friday he is concerned about the possibility of a mid-September strike, one that could cripple an industry responsible for about 3% of the nation's economy.

Speaking to reporters from his vacation in South Lake Tahoe, California, Biden said UAW members should get the first shot at new jobs -- appearing to refer to positions at factories that will make battery cells for electric vehicles.

Salaries at the new plants "should be commensurate" with current wages paid to UAW workers, he said.

In the contract talks, the UAW is seeking a 40% pay increase, restoration of pensions for new hires, elimination of wage tiers and other items. Fain has

often told workers they have to be ready to strike in order to achieve gains from the profitable automakers.

The union also wants to represent joint venture electric vehicle battery plants being built by the companies, and it's seeking top union wages at those factories.

Jason Hale, an assembly line inspector at Ford's Kentucky Truck Plant in Louisville, said he voted to authorize a strike.

He hopes the union will be able to win general pay raises and restore cost-ofliving pay increases and pensions for all workers.

Cost of living is the most important, he said.

"They're just making too much money and not giving us enough."

He thinks the union should strike all three companies at the same time. "That would show solidarity and we're here to mean business," he said.

UNITED Auto Workers members walk in the Labor Day parade in Detroit, Sept. 2, 2019. Auto workers are voting overwhelmingly to give union leaders the authority to call strikes against Detroit car companies if a contract agreement isn’t reached. The United Auto Workers union said Friday, Aug. 25, 2023, that results are still being tallied, but so far 97% have voted in favor of authorizing one or more strikes against Stellantis, General Motors and Ford.

US sues SpaceX for alleged hiring discrimination against refugees and others

WASHINGTON

Associated Press

THE U.S. Department of Justice on Thursday sued SpaceX, the rocket company founded and run by Elon Musk, for alleged hiring discrimination against refugees and people granted asylum.

The complaint, filed in an administrative court within the department, asserts that SpaceX wrongly claimed that federal export control laws barred it from hiring anyone but U.S. citizens and permanent residents. As a result, it discouraged refugees and asylum grantees from applying for jobs

at the company, according to the complaint.

Export controls typically aim to protect U.S. national security and to further national trade objectives. They bar the shipment of specific technologies, weapons, information and software to specific nonU.S. nations and also limit the sharing or release of such items and information to "U.S. persons." But the Justice Department noted that the term includes not only U.S. citizens, but also permanent U.S. residents, refugees, and those granted asylum.

The department charged that SpaceX also refused

to "fairly" consider applications from this group of people or to hire them. The positions in question included both ones requiring advanced degrees and others such as welders, cooks and crane operators at the company.

The U.S. is seeking "fair consideration and back pay" for people who were deterred from or denied employment at SpaceX due to the company's alleged discrimination, in addition to undetermined civil penalties.

SpaceX, which is based in Hawthorne, California, did not reply to a request for comment.

Photo:Paul Sancya/AP

the

Department of Justice filed suit against SpaceX, the rocket company founded and run by Elon Musk, for alleged hiring discrimination against refugees and people seeking or already granted asylum. Photo:Jae C. Hong/AP

Shawn Fain

Global inflation pressures could become harder to manage in coming years, research suggests

By CHRISTOPHER RUGABER

AP Economics Writer

RISING trade barriers. Aging populations. A broad transition from carbon-spewing fossil fuels to renewable energy.

The prevalence of such trends across the world could intensify global inflation pressures in the coming years and make it harder for the Federal Reserve and other central banks to meet their inflation targets.

That concern was a theme sounded in several high-profile speeches and economic studies presented Friday and Saturday at the Fed's annual conference of central bankers in Jackson Hole, Wyoming.

For decades, the global economy had been moving toward greater integration, with goods flowing more freely between the United States and its trading partners. Lower-wage production overseas allowed Americans to enjoy inexpensive goods and kept inflation low, though at the expense of many U.S. manufacturing jobs.

Since the pandemic, though, that trend has shown signs of reversing. Multinational corporations have been shifting their supply chains away from China. They are seeking instead to produce more items — particularly semiconductors, crucial for the production of autos and electronic goods — in the United States, with the encouragement of massive subsidies by the Biden administration.

At the same time, large-scale investments in renewable energies could prove disruptive, at least temporarily, by increasing government borrowing and demand for raw materials, thereby heightening inflation. Much of the world's population is aging, and older people are less likely to keep working. Those trends could act as supply shocks, similar to the shortages of goods and labor that accelerated inflation during the rebound from the pandemic recession.

"The new environment sets the stage for larger relative price shocks than we saw before the pandemic," Christine Lagarde, president of the European

Central Bank, said in a speech Friday. "If we face both higher investment needs and greater supply constraints, we are likely to see stronger price pressures in markets like commodities — especially for the metals and minerals that are crucial for green technologies."

This would complicate the work of the ECB, the Fed and other central banks whose mandates are

to keep price increases in check. Nearly all central banks are still struggling to curb the high inflation that intensified starting in early 2021 and has only partly subsided.

"We are living in this world in which we could expect to have more and maybe bigger supply shocks," Pierre-Olivier Gourinchas, chief economist at the International

Monetary Fund, said in an interview. "All of these things tend to make it harder to produce stuff and make it more costly. And that is definitely the configuration that central banks dislike the most."

The shifting patterns in global trade patterns sparked the most attention during Saturday's discussions at the Jackson Hole conference. A paper presented by Laura Alfaro, an economist at Harvard Business School, found that after decades of growth, China's share of U.S. imports fell 5% from 2017 to 2022. Her research attributed the decline to tariffs imposed by the United States and the efforts of large U.S. companies to find other sources of goods and parts after China's pandemic shutdowns disrupted its output.

Those imports came largely from such other countries as Vietnam, Mexico and Taiwan, which have better relations with the United States than does China — a trend known as "friendshoring."

Despite all the changes, U.S. imports reached an

all-time high in 2022, suggesting that overall trade has remained high.

"We are not deglobalizing yet," Alfaro said. "We are seeing a looming 'Great Reallocation' " as trade patterns shift.

She noted that there are also tentative signs of "reshoring" — the return of some production to the United States. Alfaro said the United States is importing more parts and unfinished goods than it did before the pandemic, evidence that more final assembly is occurring domestically. And the decline of U.S. manufacturing jobs, she said, appears to have bottomed out.

Yet Alfaro cautioned that these changes bring downsides as well: In the past five years, the cost of goods from Vietnam has increased about 10% and from Mexico about 3%, adding to inflationary pressures.

In addition, she said, China has boosted its investment in factories in Vietnam and Mexico. Moreover, other countries that ship goods to the United States also import parts from China.

Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

APPLE CEO Tim Cook speaks at the Taiwan Semiconductor Manufacturing Company facility under construction in Phoenix, on Dec. 6, 2022. Multinational corporations are seeking to produce more items - especially semiconductors - in the United States. Apple will use chips made at the facility.

Photo:Ross D. Franklin/AP

Wall Street climbs to clinch its first winning week in a month

By STAN CHOE AP Business Writer

STOCKS rose Friday to send Wall Street to its first winning week since July after the head of the Federal Reserve said it will "proceed carefully" as it decides what to do with interest rates.

The S&P 500 climbed 29.40, or 0.7%, to 4,405.71 after flipping between small gains and losses a few times through the day. The Dow Jones Industrial Average rose 247.48 points, or 0.7%, to 34,348.90, and the Nasdaq composite gained 126.67, or 0.9%, to 13,590.65.

In a highly anticipated speech, Fed Chair Jerome Powell said again that it will make upcoming decisions on interest rates based on what incoming data reports say about inflation and the economy, and he made no promises about what's coming next. Wall Street had the speech circled on calendars because it was hoping Powell would say the Fed was done with its hikes to interest rates, which grind down inflation at the cost of slowing the economy and hurting prices for investments.

Powell instead said the Fed may raise interest rates again, if needed. Even

though inflation has come down from its peak last summer, Powell said it's still too high.

But he also took care to say he's aware of the risks of going too far on interest rates and doing "unnecessary harm to the economy."

Altogether, the comments weren't very different from what Powell said before, analysts said.

But one word of Powell's stood out to Brian Jacobsen, chief economist at Annex Wealth Management, particularly as it relates to Powell's speech last year at the same Fed event. That 2022 speech caused stocks to fall sharply.

"Carefully is the new forcefully," Jacobsen said. "Last year, Powell said the Fed would respond forcefully, and they sure did.

Now they can tread carefully. Any adjustments to rates now will be more like fine tuning."

The Fed has already hiked its main interest rate to the highest level since 2001 in its drive to grind down high inflation. That was up from virtually zero early last year.

The much higher rates have already sent the manufacturing industry into

contraction and helped cause three high-profile U.S. bank failures during the spring. They've also helped to slow inflation, but a string of stronger-thanexpected reports on the economy has raised worries that upward pressure remains. That could force the Fed to keep rates higher for longer.

Such expectations in turn vaulted the yield on the 10-year Treasury this week to its highest level since 2007. It ticked down to 4.23% from 4.24% late Thursday, though it's still up sharply from less than 0.70% three years ago.

High yields mean bonds are paying more in interest to investors. They also make investors less likely to pay high prices for stocks and other investments that can swing more sharply in price than bonds. Big Tech and other high-growth stocks tend to feel such pressure in particular.

The two-year Treasury, which more closely tracks expectations for the Fed, rose to 5.07% from 5.02% late Thursday. Traders see better than a 50% chance the Fed will hike its main interest rate again this year. That's up sharply from just a week ago, according to data from CME Group.

The threat of rates staying higher for longer

many do, but there are no consistent benchmarks for determining what constitutes a serious heat hazard.

has helped send stocks tumbling in August following what had been a gangbusters year. The S&P 500 is down 4% after soaring 19.5% through July. The worries about rates staying higher for longer also overshadowed a blowout profit report on Thursday from Nvidia, which has become one of Wall Street's most influential stocks. The chip maker again gave a stronger forecast for upcoming revenue than expected, giving hope that this year's frenzy around artificial-intelligence technology may be warranted. The AI mania was a big reason the S&P 500 rose as much as it did earlier this year.

Marvell Technology, another company that's been citing growth coming from AI, fell 6.6% Friday following its profit report. Its results were a touch higher than analysts expected. Its stock had already rallied nearly 55% coming into the day.

On the winning side of Wall Street, Gap rose 7.2% after the retailer reported stronger profit for the latest quarter than analysts expected, though its revenue fell just shy of forecasts.

In markets abroad, stock indexes were modestly higher in Europe after tumbling across much of Asia.

By GABE STERN Associated Press

SANTOS Brizuela spent more than two decades laboring outdoors, persisting despite a bout of heatstroke while cutting sugarcane in Mexico and chronic laryngitis from repeated exposure to the hot sun while on various other jobs.

But last summer, while on a construction crew in Las Vegas, he reached his breaking point. Exposure to the sun made his head ache immediately. He lost much of his appetite. Now at a maintenance job, Brizuela, 47, is able to take breaks. There are

flyers on the walls with best practices for staying healthy — protections he had not been afforded before.

"Sometimes as a worker you ask your employer for protection or for health and safety related needs, and they don't listen or follow," he said in Spanish through an interpreter. A historic heat wave that began blasting the Southwest and other parts of the country this summer is shining a spotlight on one of the harshest, yet least-addressed effects of U.S. climate change: the rising deaths and injuries of people who work in extreme heat, whether inside warehouses and

kitchens or outside under the blazing sun. Many of them are migrants in lowwage jobs.

State and federal governments have long implemented federal procedures for environmental risks exacerbated by climate change, namely drought, flood and wildfires. But extreme heat protections have generally lagged with "no owner" in state and federal governments, said Ladd Keith, an assistant professor of planning and a research associate at the University of Arizona.

"In some ways, we have a very long way to catch up to the governance gap in

treating the heat as a true climate hazard," Keith said. There is no federal heat standard in the U.S. despite an ongoing push from President Joe Biden's administration to establish one. Most of the hottest U.S. states currently have no heat-specific standards either.

Instead, workers in many states who are exposed to extreme heat are ostensibly protected by what is known as the "general duty clause," which requires employers to mitigate hazards that could cause serious injury or death. The clause permits state authorities to inspect work sites for violations, and

"What's unsafe isn't always clear," said Juanita Constible, a senior advocate from the National Resources Defense Council who tracks extreme heat policy. "Without a specific heat standard, it makes it more challenging for regulators to decide, 'OK, this employer's breaking the law or not.'"

Many states are adopting their own versions of a federal "emphasis" program increasing inspections to ensure employers offer water, shade and breaks, but citations and enforcement still must go through the general duty clause.

Extreme heat is notably absent from the list of disasters to which the Federal Emergency Management Agency can respond. And while regional floodplain managers are common throughout the country, there are only three newly created "chief heat officer" positions to coordinate extreme heat planning, in Miami-Dade County, Phoenix and Los Angeles.

Federal experts have recommended extreme heat protections since 1972, but it wasn't until 1997 and 2006, respectively, that Minnesota and California adopted the first statewide protections. For a long time, those states were the exception, with only a scattering of others joining them throughout the early 2000s. But as heat waves get longer and hotter, the tide is starting to change.

"There are a lot of positive movements that give me some hope," Keith said.

Colorado strengthened existing rules last year to require regular rest and meal breaks in extreme

heat and cold and provide water and shade breaks when temperatures hit 80 degrees Fahrenheit (26.7 degrees Celsius). Washington state last month updated 15-year-old heat safety standards to lower the temperature at which cool-down breaks and other protections are required. Oregon, which adopted temporary heat protection rules in 2021, made them permanent last year. Several other states are considering similar laws or regulations. Arizona Gov. Katie Hobbs recently announced new regulations through the heat emphasis program and declared a state of emergency over extreme heat, allowing the state to reimburse various government entities for funds spent on providing relief from high temperatures.

Nevada also adopted a version of the heat emphasis program. But a separate bill that would define what constitutes extreme heat and require employers to provide protections ultimately failed in the final month of the legislative session.

The measure faltered even after the temperature threshold for those protections was increased from 95 degrees Fahrenheit (35 degrees Celsius) to 105 (40.5 degrees Celsius). Democratic lawmakers in Nevada are now trying to pass those protections through a regulatory process before next summer.

The Biden administration introduced new regulations in 2021 that would develop heat safety standards and strengthen required protective measures for most at-risk private sector workers, but the mandates are likely subject to several more years of review.

TRADER John Bowers works on the floor of the New York Stock Exchange, Friday, Aug. 25, 2023, as Federal Reserve Chair Jerome Powell’s speech shows on a television screen. Stocks are holding on to gains after Powell said more rate hikes could be on the way to continue the Fed’s fight against inflation.

Photo:Richard Drew/AP

Workers exposed to extreme heat have no consistent protection in the US

A MAINTENANCE worker pushes a refuse cart in the sun, Friday, Aug. 25, 2023, in Las Vegas. A historic heat wave that began blasting the Southwest and other parts of the country this summer is shining a spotlight on one of the harshest, yet least-addressed, effects of climate change in the U.S.: the rising deaths and injuries of people who work in extreme heat, whether inside hot warehouses and kitchens or outside under the blazing sun. Many of them are migrants in low-wage jobs.

Photo:Ty O’Neil/AP