By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
AN ex-prime minister yesterday demanded the Government revamp its New Providence electricity grid reforms by allowing “average” Bahamian investors to directly participate via an initial public offering (IPO).
Dr Hubert Minnis told Tribune Business that the way in which Bahamas Grid Company, which will own and control the grid, is financially structured sends the message that Bahamians “are only good enough to pay the light bill” by excluding individualsknown as retail investors - from being able to acquire and hold shares themselves in this entity.
He instead argued that the Bahamas Grid Company should be structured similar to
Criticism
By NEIL HARTNELL Tribune Business Editor
A SENIOR banker
yesterday said the industry is open to “justifiable criticism” over customer service standards, transparency in fee-setting and the transition to a digital payments system.
Gowon Bowe, the present Clearing Banks Association (CBA) chairman, told Tribune Business he personally is “not running away” from such concerns and added that the sector and its individual institutions “welcome objective criticism” on these issues.
BISX-listed Arawak Port Development Company (APD) to better spread the wealth and help develop a so-called ‘shareholder’ economy. Some 20 percent of APD is owned collectively by 12,900 Bahamian investors, many of them individuals, who invested
the minimum $1,000 when the Arawak Cay port was created in 2011.
However, Bahamas Grid Company is 60 percent owned by unnamed wealthy investors who, according to the offering documents, needed to spend a minimum $1m to acquire at least 50,000 shares before they could participate in the total $30m equity raise held earlier this year.
While the Government holds the remaining 40 percent, Dr Minnis told this newspaper that these minimum requirements - along with the fact that the investment opportunity was only offered to a select few institutions and high net worth individuals - automatically excluded “more than 90 percent of the Bahamian population” from direct participation. Calling on the Government to publicly name who Bahamas Grid Company’s equity investors and owners are, the former prime minister added that he was in “discussions” with attorneys over the Government’s Bahamas Power & Light (BPL) and wider energy sector reforms and will have more to say when Parliament reconvenes this fall although he gave no specifics. Neither the Government, nor Bahamas Grid Company and its
manager, Island Grid, have given any indication that direct retail investor participation in the transmission and distribution network reforms will be permitted even though the arrangement is set to remain in place for a generation. The Bahamas Grid/Island Grid deal is for a 25-year term, with option to extend for a further ten, meaning it could last 35 years. Instead, the Bahamas Grid Company offering documents issued to investors signal that the ultimate financial structure will be akin to that currently employed at the Bahamas Telecommunications Company (BTC). They state that, some seven years after a Heads of Agreement signing, the Government will have the right to acquire 9 percent of the shares held by the majority private investors at “fair market value”.
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Disclosing that he will be arranging meetings on the commercial banks’ behalf with both the Government and political Opposition, as well as the staging of public forums, to discuss the long-running controversy surrounding fee increases and other banking issues when he returns to The Bahamas next week, he renewed calls for an end to “political mud slinging” and an emotional, “combative” approach to the matter.
generally. He warned that this was the “wrong message” to send, especially internationally, as it “calls into question the competence and credibility” of the Bahamian banking industry’s primary regulator.
Mr Bowe, though, also pushed back over what he branded as “a cavalier approach to criticising” the Central Bank regarding its regulation of commercial bank fees and the industry
By NEIL HARTNELL Tribune Business Editor
KALIK’S manufacturer has blamed a near-2 percent revenue slump during the 2024 first half on a government tax crackdown that disrupted “normal purchases” by some of its largest customers.
Commonwealth Brewery, in unveiling its second quarter and six-month results for the period to end-June 2024, said the Davis administration’s enforcement initiatives impacted clients to such
an extent that 2.3 percent revenue growth for the first five months was ultimately reversed. The vertically-integrated, BISX-listed brewer, wholesaler and retailer gave no specifics on how its customers, and sales to them, were impacted as a result of the Government’s ongoing compliance drive to seemingly squeeze every cent of due tax revenue from the private sector.
Gary Lewis, Commonwealth Brewery’s finance chief, yesterday declined to comment when contacted by Tribune Business
saying: “We don’t want to add any official comment to what was published in the second quarter statements.”
Those financials stated:
“Commonwealth Brewery experienced a 1.7 percent decline in revenue for the first six months of the year, primarily due to an unexpected disruption in the local market in June. The company saw a 2.3 percent revenue growth compared to the previous year during the first five months.
“However, this growth was negatively impacted during the month of June
The latest concerns surrounding bank fee increases were sparked by CIBC Bahamas revealing plans to raise its charges to compensate for higher
SEE PAGE A19
as certain of our main business customers interrupted normal purchases to address matters related to tax enforcement.” Those customers were not identified, although they include the likes of hotels, restaurants, bars, nightclubs and liquor stores it does not own, as well as purchases by homeowners and visiting yachts.
Commonwealth Brewery’s financial statements showed that top-line gross revenues fell by more than $2.2m year-over-year for the 2024 second quarter, declining from $36.498m to $34.281m. For the halfyear, they fell by more than $1.1m, dropping to $66.739m from $67.877m.
As a result, even though total operating expenses declined slightly
Eleuthera utilities woes hurting vacation rentals
By ANNELIA NIXON anixon@tribunemedia.net
Bahamas Power & Light (BPL) yesterday issued a notice warning that North Eleuthera could expect an interruption in electricity supply beginning at noon and that it was due to last up to three hours. A planned BPL outage for Tarpum Bay and Rock
Sound was extended for an hour and, with those power outages, came interruptions in Water & Sewerage Corporation’s water supply due to the reliance of reverse osmosis supplies and systems on electricity. The latter acknowledged “the frustration and inconvenience” to Rock Sound and Tarpum Bay residents but blamed the loss of supply on BPL “irregularities”. “Every week there’s a power outage,” owner of Forbes Pest Control, Kirkwood Forbes, told Tribune Business. “Every week there’s a water outage. It’s like they compete with each other. I can out do you this week. I’ll stay off for three days.”
Leslie Fraser, owner of a vacation rental property in Northern Eleuthera, said she had to cease renting to tourists because she received so many complaints regarding power and water outages. “I just couldn’t take the complaints, you know, it was just beyond what I could take,” she said.
Ms Fraser added that she has had to provide partial and half refunds to guests for the inconvenience, while many threatened to vacation elsewhere until the water and power companies fix the issues plaguing the island.
“Eleuthera is a very popular destination,” she added. “The highend properties are still
doing okay. They have the money for generators and water tanks but the lowend homes are hurting. Airlines have cancelled routes to North Eleuthera because it’s slow. Usually they return in November.
“A lot of my former renters have said they will go somewhere else until the utilities are improved - people who have come for five or 10 years.” Ms Fraser said she would like to rent her property again, but if she did, that would mean investing in a $20,000 generator that could “run the whole place with an automatic transfer switch and the whole nine yards”.
A BISX-listed fund yesterday revealed it is targeting a second real estate acquisition before year-end 2024 as it bids to close the multi-million purchase of a Bay Street property next week.
Michael Anderson, president of RF Bank Bank & Trust, the Bahamas Property Fund’s investment manager and administrator, told Tribune Business the latter is aiming to buy an undisclosed western New Providence property focused on the short-term rental market as it bids to maintain momentum with its expanding portfolio.
Confirming that the Fund has $4m poised to invest in redeveloping the upper two floors of Beaumont House, located immediately to the west of Bay Street’s Straw Market, as soon as that deal closes, he added that it also plans to begin vertical construction on its $12m warehouse/storage facility to be constructed near the Carmichael Road/Gladstone Road junction before 2024 ends.
Mr Anderson told this newspaper that the storage facility, known as Bahamas U-Store Ltd, as well as a fully redeveloped
Beaumont House are both expected to make their first full-year contribution to the Fund’s earnings in 2026 as each project is set to take between a year and 18 months to complete.
Again acknowledging that the Fund’s development had been “stalled” for some time, he added that its acquisition moves will help it become “what we’d set it out to do a number of years ago” as a vehicle designed to give investors an opportunity to invest in real estate without the difficulties created by illiquid assets that sometimes prove hard to sell.
Disclosing that the BISXlisted real estate investment trust is already looking beyond Beaumont House, Mr Anderson told Tribune Business: “We’re looking
GOWON BOWE
MICHAEL ANDERSON
BAHAMAS CENTRE STAGE IN CARNIVAL ITINERARIES
THE Bahamas is set to feature prominently in the 2026 and 2027 itineraries for seven Carnival Cruise Line vessels that will sell from home ports at Miami, Port Canaveral, Galveston and Baltimore.
The cruise line, in a statement, said the ports of call will feature its expanded Half Moon Cay private island in The Bahamas. This is set to feature upgraded beach, dining and beverage experiences, along with a pier that will allow Carnival’s Excel class ships Mardi Gras Carnival Celebratio n and Carnival Jubilee to dock and visit the location for the first time.
Carnival said that its Carnival Celebration vessel will offer a variety of seven-day cruises to both the eastern and western Caribbean, with visits to its Celebration Key port in Grand Bahama plus destinations such as Nassau and Half Moon Cay.
From Port Canaveral, Carnival’s Mardi Gras vessel will stage a variety of seven-day cruises also featuring Celebration Key, Half Moon Cay and Nassau. The Carnival Venezia, which sails from Port Canaveral, will also call on Celebration Key during the two-year period including 2026 and 2027.
Carnival’s latest ship, Carnival Jubilee, will start sailing from Galveston beginning in September 2026. It will offer a variety of six and eight-day cruises exploring the western Caribbean and The Bahamas, with the latter itinerary involving visits to Nassau, Half Moon Cay and Celebration Key.
Carnival Dream, too, will also sail to Celebration Key and Half Moon Cay. Week-long voyages from Baltimore on Carnival Pride include Bahamas cruises featuring stops at Half Moon Cay or Princess Cays, Nassau and Celebration Key.
ELEUTHERA UTILITIES WOES HURTING VACATION RENTALS
FROM PAGE A22
Mr Forbes said he has to prepare the day prior to handling customers to ensure batteries for his equipment are fully charged because BPL could go out at any moment.
“There’s some days if you don’t power, people can’t call you,” Mr Forbes said. “Thank God you have a cell phone but, different from that, if I didn’t have a cell phone I couldn’t do no business. Many days I have someone in the office that is the secretary. The phone is off because there’s no power, so customers can’t reach you so you can get jobs.”
Harbour Island experiences more water interruptions than North Eleuthera.
While Mr Forbes and Ms Fraser said power interruptions are the bigger problem, they made it clear that Water & Sewerage is still a major issue on the island. Local government representative for The Current, Aldred Albury, said
“It seems as though, in particular, when the electricity’s off on the mainland of North Eleuthera, Harbour Island’s water ends up going off because the pumps that pump the water to Harbour island are not
actually at the Water and Sewerage plant. So, once the electricity is off, the water’s not able to pump across to Harbour island, thus causing the water outage in Harbour Island,” he added.
North Eleutherans are willing and ready to follow in Harbour Island’s footsteps and protest for a change.
“Residents of North Eleuthera have spoken of
protests, having a protest like the protest they had in Harbour Island,” Mr Albury explained. “However, as of right now that has not come to fruition but I do believe that it will probably happen.”
Both Mr Forbes and Ms Fraser said they would join the protest for improved utilities on Eleuthera.
CARNIVAL JUBILEE
Minnis demands IPO of BPL grid company
This would increase the Government’s stake to 49 percent, and reduce the private investors’ collective holding to 51 percent. The offering documents, though, stipulate that the latter will also contribute a further 2 percent of their investment to a charitable foundation, leaving the private investors with 49 percent and an ownership structure that exactly mirrors that at BTC with no promise of an IPO.
Dr Minnis yesterday blasted that these plans mean ordinary Bahamians will be unable to directly share in Bahamas Grid Company’s profits, which are forecast to rise from $10.418m after its first year in existence to $13.677m by year five. He suggested that profits over the lifetime of the 35-year deal could collectively total $500m, or half a billion dollars, although there is no evidence to support that figure.
“If you say you are for Bahamians and local individuals, you should allow them to take advantage of whatever profits are to be
made,” the former prime minister argued to Tribune Business. “The Government is saying I’m only good, as an average individual and Bahamian, I’m only good to pay the BPL bill but I’m not good enough to join you at the table and make a profit.
“Don’t tell me I’m only good enough to be a servant. That should have been opened up to the public. APD is a perfect example. I have spoken to individuals who invested $1,000 in APD, and they told me they have got dividends while the value of their $1,000 investment has gone up even higher. They’ve got their returns and money back already.
“They could have done the APD model, and allowed public servants to participate as well. Instead, you have a two-tier system of a select few who can invest, and automatically exclude the Bahamian public other than to pay the bill. At a time when there is a high cost of living, it would have given individuals an opportunity to have some financial return,” Dr Minnis added.
“The only ones you are selecting to participate are the elite and the wealthy. Give the Bahamian an opportunity to make money and have a reasonable return. The only thing you want me to do as a Bahamian is pay the light bill for those wealthy individuals to become more wealthy. Why should they be the only ones entitled to the profits.”
The Davis administration, though, will retort that thousands of Bahamians are already indirect investors in Bahamas Grid Company through their participation in the likes of pension plans, mutual funds and other investment and money managers who invested in both the equity and debt portions of the firm’s total $130m capital raise.
Besides the $30m equity raise, Bahamas Grid Company also sourced $100m in bond financing or debt capital to fund the first year of “foundational upgrades” to New Providence’s electricity network. These bonds carry an 8 percent interest coupon, representing a rate almost double 4.25 percent Bahamian Prime, and
much higher than the minimal interest Bahamians are receiving on bank deposits.
Thus the returns Bahamians will earn, via pension funds and mutual funds, will be much higher than what is available via the banks. However, Dr Minnis challenged the Government to disclose the identities of Bahamas Grid Company’s majority equity owners as he questioned whether politically-connected persons from both the major parties - PLP and FNMare among them.
“I’m not going to say what I’m going to get into, but when I go to Parliament I’m going to speak to that,” the former prime minister added. “I’m very annoyed with what they’ve done. I’m very disturbed that the only benefit they see of the Bahamian people is to pay the bill to make them wealthier.
“Who are the investors? Who are the wealthy individuals owning the company? I am still reading everything. When I come to Parliament we’ll see. I would hope they disclose it. Who are they hiding, who are they protecting? Are
they highly-placed officials from the FNM and PLP?
Let us know. The public wants to know. People need to who invested this $30m. The Bahamian people want to know.”
As a private company, Bahamas Grid Company has no obligation to disclose the identities of its shareholders and beneficial owners, although these are sometimes listed in a firm’s annual returns filed with the Registrar General’s Department. Its offering documents also make clear that the shares will not be listed on the Bahamas International Securities Exchange (BISX).
Dr Minnis told Tribune Business that he is “discussing all that with the lawyers as to what can be done” in relation to the Government’s proposed energy reforms, although he declined to specify exactly what is being reviewed and any action he plans to take.
“I would hope the Bahamian populace recognise the politicians are working for them, and when the Government makes a bad decision - be they PLP, FNM or Coalition
of Independents - the public has a responsibility, because they can’t fire them for five years, to keep them accountable by voicing their concerns and disagreements,” the Killarney MP said.
“They are our employees. Don’t get it wrong. The Bahamian people employ the politicians. The views of the past, when it was thought the politicians are all-powerful, are the past. Stand up and speak.”
Dr Minnis also cited the Nassau Cruise Port, in which Bahamian investors were able to acquire a collective 49 percent stake by investing in a mutual fund, as another example where individual, retail investor participation was favoured. He added that Global Ports Holding, the controlling shareholder, made a $10m facility available to help finance the purchase of shares by ordinary Bahamians. As for APD, besides the 20 percent equity stake in public hands, the remaining 80 percent is split between the Government and private shipping industry.
Brewery blames ‘tax crackdown’ for $1m quarterly profits decline
year-over-year, the company’s second quarter and half-year total profits fell by 22.2 percent and 6 percent, respectively, to $3.543m and $6.091m. The former figure represented a more than $1m decline compared to the 2023 second quarter, while the latter was a $380,000 drop. Despite the few details made available, the Commonwealth Brewery
statements provide a further insight into the impact the Government’s tax crackdown is having on the private sector. The Ministry of Finance and Department of Inland Revenue have been aggressively pursuing companies for taxes said to be owing from previous years that have allegedly been uncovered in recent audits.
A prime example is Sandals disputing assertions by the Bahamian tax authorities that its Emerald Bay resort only reported 40 percent of revenues earned. The resort chain is denying that the property failed to properly disclose “the true nature of transactions” which have sparked demands for $30.844m in allegedly unpaid VAT and Business Licence fees combined.
The Department’s audit findings, which covered six years between 2017 and 2022, claimed the tax arrears had arisen because Sandals Emerald Bay and its operator, Clearview Management Ltd, had under-reported gross revenue income for the period by more than $284m.
The crux of the Department of Inland Revenue’s assessment, and eightfigure tax demand, is that Sandals Emerald Bay over that six-year period only declared the net income received from its parent and not the gross sum collectively paid by tourists to stay at the Exuma property. As a result, the resort both under-reported and underpaid VAT and Business Licence fees for that period. Sandals Emerald Bay and its operator, Clearview
Management, are from the only company impacted by this. Two BISX-listed firms, AML Foods and Cable Bahamas, have both disclosed to their shareholders that they are contesting Department of Inland Revenue demands for around $1m in taxes each.
AML Foods in late 2023 pledged to “vigorously contest” the Government’s demand that it produce nearly $1m in “unpaid” VAT related to Grand Bahama’s post-Hurricane Dorian economic recovery zone (SERZ). It added then that it will “initiate a formal dispute” against the Department of Inland Revenue’s (DIR) assessment. To trigger the appeal, the Solomon’s and Cost Right operator said in notes to its financial statements that it would have to either place a bond or make full payment of the $925,732 in alleged arrears.
And Cable Bahamas, in its 2023 annual report, confirmed that its Aliv mobile subsidiary was “involved
in a formal dispute with the Department of Inland Revenue concerning an assessment issued... for unpaid taxes and fees totalling $1.594m.
“The assessment covered the period from April 1, 2017, to December 31, 2021, and related to VAT and Business Licence fees on insurance proceeds and international inbound roaming charges among others,” Cable Bahamas said, adding that it had “deposited” the disputed sum with the tax authority and aimed to “vigorously contest” the demand.
Many believe the Government is being so aggressive in going after back taxes because it is eager to avoid implementing any new and/or increased taxes to meet its revenue needs and achieve the projected fiscal surplus targeted for the 2025-2026 fiscal year.
Commonwealth Brewery, meanwhile, added of the 2024 second quarter and half-year results: “Revenue growth was achieved in our
other core channels, including 700 Wines & Spirits [its wholly-owned retail subsidiary], which had a 1 percent revenue growth for the first six months driven by our strategic locally-produced portfolio and an increase in consumer demand.
“Operating expenses declined by 1.2 percent, driven by targeted cost savings and productivity gains. Results from operating activities for the first six months of the year declined 7.4 percent compared to the previous year as a result of the weak second quarter.
“In the first half of 2024, Commonwealth Brewery realised a net profit of $6.1m compared to $6.5m in 2023. Commonwealth Brewery generated $6m in net cash flow from operating activities during the first half year of 2024, a substantial improvement of $5.8m versus 2023.”
Criticism ‘justifiable’ on bank service and fee transparency
operational costs, and the Association chief argued that the best way to address public concerns is via a “candid, critical and open conversation”.
The best result, Mr Bowe said, will be to create better-educated consumers who switch their banking business to a different institution if they feel they are being exploited or taken advantage of by fee hikes and other impositions. Such competitive pressures, he added, will keep banks keen and honest in their treatment of consumers.
The CIBC Bahamas fee rises were seized on by the Free National Movement (FNM) Opposition in a bid to extract political mileage, with the party then unveiling a series of commercial banking sector policy reforms and pledges. This appeared to prompt the Government, and Prime Minister Philip Davis KC, to intervene by promising it would meet with the banks to address the public’s fears.
“I think that politicians, both the Government and Opposition, find the banking sector as just a target when there are customer complaints to create a sort of combative stance between us and them,” Mr Bowe told Tribune Business.
“I think we become a little emotional and, to be perfectly honest, I think the best [way to address it] is to have a very candid, critical and open conversation around it and not get into this political mud slinging. To be honest, I think that’s the best course of action.”
However, the CBA chair was to quick to acknowledge that Bahamian commercial banks are not immune from constructive criticism.
“I don’t run away from areas where the commercial banks are justifiably criticised,” Mr Bowe said.
“I think that when you look at the transparency around the determination of fees, the overall need of a digital payments system and how we keep those costs minimal, and when we
talk about service standards what is outsourced and maintained in this jurisdiction.
“These are all areas where the banks welcome objective criticism, and if we have strengthened consumer education where depositors take money out of an institution - from the smallest to the largest - that’s going to have a response. If shareholders take money out of an entity that is equally going to have a response.
“Too often we rush to legislate morality instead of strengthening the knowledge of consumers so that they effect change through their behaviour, particularly where the banks are concerned.” Bahamian concerns over poor service and declining standards in the commercial banking industry have been growing in recent years and are as strong, if not stronger than, the consternation over rising fees.
Confirming that all sides, including both the Government and Opposition, have agreed to wait until Mr Bowe is back on island next week to arrange meetings and public discussions, the Association chair also branded attacks on the Central Bank over the fees issue as misplaced.
“The one thing that does concern me is there’s often a cavalier approach to criticism of the Central Bank whether intended or not,” he told Tribune Business
“Our Central Bank is a very well respected regulatory institution both internationally and domestically. The politicians almost jump to saying the Central Bank should do more and is not adequate in its regulation.
“That’s not the message we want to send internationally. The Central Bank has done a good job. If you research all countries, The Bahamas is one of the few that did not have any major bank collapses through the 2008-2009 recession, the crypto winter and the pandemic. Let’s give give credit where it’s due. Obviously they’ve been doing a good job maintaining financial stability.
“When they make these uninformed comments, with no analysis and empirical evidence, it’s purely emotional and rhetoric, you bring into question the competence and credibility of the Central Bank, which is highly inappropriate, particularly given that it’s recognised internationally as being a very strong and competent body. I think sometimes politics supersedes common sense. It also supersedes good sense.”
Mr Bowe continued: “The conversation needs to evolve, not degenerate into the political gutter. Hopefully the conversation with the Government and the Opposition, and forums to ventilate matters, brings some calm and reason to the conversation. It’s going to keep me busy for an unpaid position but it’s worth doing.
“We should not be arguing behind the shield of statements and parliamentary privilege. It is important to have an open forum conversation so that there will be education as opposed to continuing us versus them, which is naive because us versus them is the same people and it only creates a combative environment.”
Fred Mitchell, the PLP’s chairman and minister of foreign affairs, has been a long-standing critic of the commercial banks and their customer service quality but the Opposition moved to steal his thunder and present itself as the party of reform following the CIBC Bahamas announcement.
Michael Pintard, the party’s leader, pledged that an FNM administration if elected would ensure bank fees are transparent and fair, “not simply ‘junk fees’ with no justification”. He said his party would increase the reach and powers of the Central Bank’s office of the ombudsman, ensuring people are aware it exists and that complaints against banks are handled effectively.
He said the FNM would support qualified Bahamians seeking licences for commercial banking
US Postal Service is abandoning a plan to reroute Reno-area mail processing to Sacramento
By SCOTT SONNER Associated Press
THE U.S. Postal Service
said Tuesday it is abandoning a plan to reroute Reno-area mail processing to Sacramento that had created an uproar among northern Nevadans concerned it could delay local deliveries and jeopardize on-time arrival of mail-in election ballots.
USPS said in a statement it has identified "enhanced efficiencies" that will allow processing of single-piece mail to continue at the existing Reno postal facility. It said it does not anticipate the revised strategy will have any impacts on postal workers in Reno.
The latest change in plans is subject to formal regulatory filings it intends to initiate next month with the Postal Regulatory Commission, the service said.
Sen. Jacky Rosen said it should mean an end to "this misguided Washington plan."
"The announcement that this widely opposed transfer of local mail processing operations will no longer happen is a huge win for our seniors, veterans, and every person in Northern Nevada who depends on timely mail delivery," Rosen said.
Rosen, a Democrat running for reelection against Republican Sam Brown in one of the most hotly contested Senate races in the nation, took the lead earlier this year in bipartisan efforts to fight the original plan. She was joined by fellow Democratic Sen. Catherine Cortez Masto, Republican Rep. Mark Amodei and Republican Gov. Joe Lombardo.
Lombardo said it was "a huge bipartisan victory for Nevada." He said in a statement posted on social media that he was "grateful
to have worked alongside" Rosen, Cortez Masto and Amodei to protect Nevadans "from misguided D.C. bureaucracy."
Democratic Secretary of State Cisco Aguilar, the state's top election official, had warned moving operations could slow the processing of mail ballots and "has the potential to disenfranchise thousands of Nevada voters and would unquestionably impact the results of Nevada's elections."
Most Nevadans voted by mail in the 2022 general election and this year's statewide primary in June — 51% in November 2022 and 65% in the primary two months ago.
Postmaster General Louis DeJoy had pitched the original downsizing plan — which was expected to be put in place next year — as a necessary cost-saving move. It drew intense opposition in Nevada because it would have meant that all mail sent from the Reno area would pass through Sacramento before reaching its final destination — even from one side of the city to the other.
Lawmakers warned that even in the best weather, mail service could be caught in traffic delays during the 260-mile (418-kilometer) roundtrip drive on U.S. Interstate 80 over the top of the Sierra Nevada between Reno and Sacramento.
and financial services, and added that the party would “work with the banking sector to expand branch banking in Family island communities” and “implement targeted subsidies to ensure that Family islanders have access to banking services, enabling banks to at least break even in remote operations”.
A number of these initiatives, such as the ombudsman, are already underway. And the Central Bank, in its latest bank fee analysis, said: “The Central Bank is working on a number of fronts to advance targeted reforms on fee setting practices for supervised financial institutions.
“However, the Central Bank is mindful that these interventions must be framed to preserve the soundness of deposit taking institutions, which is fundamental to the stability and
orderly functioning of the economy. “Aside from interim measures under the remit of the Payment System Act (2012) that could take effect in the first half of 2025, broader reform proposals are also being explored that would enable the Government to legislate consumer protection and market conduct standards, also applicable to credit products, and which could give the Offices of the Financial Services Ombudsman statutory independence.”
The regulator added:
“Where cost is a significant factor, the Central Bank continues to craft reform proposals that would achieve more universal access to the supply of financial services in the less populated parts of The Bahamas.
“This includes identifying where supportive changes
are needed in the infrastructure to improve access to both cash and digital payment services, and the role that agency banking could play in lowering supply-side hurdles.
“On affordability and access, within the remit of the Payments System Act (2012), the bank is developing financial inclusion regulations to mandate a ‘basic’ deposit account product for consumers of low-economic means,” the Central Bank continued.
“The targeted approach would be exposed to public consultation, and would also be accompanied by proposals to add more transparency to the fee setting process for digital wallets, credit and debit cards, and transactional accounts, which facilitate payments (savings and chequing accounts).”
BISX-listed fund targets second acquisition in ‘24
to further develop property out west, which we expect to be more in the shortterm rental market.
“We’re still trying to finalise an arrangement for that. We’ve been speaking to the seller for the last six months, and are hoping to get that completed in the last quarter of this year if it still goes ahead. We’re still looking at other opportunities.”
As for Beaumont House, the RF Bank & Trust chief said the ground floor retail tenants and second floor restaurant will “cover the cost of holding the
property” until the renovations to the top two floors are complete and start to generate consistent rental income.
“We haven’t yet closed it. We expect to close it next week,” Mr Anderson added of the $4.3m acquisition. “We’re just waiting on that project. It’s just really having to go through the title searches with the lawyers and those normal kinds of processes. We expect to close next week.
“We have capital ready to do the renovations and are looking at different designs for different uses of the property. We’re looking at putting it back
to office space or do shortterm vacation rentals. At this stage, our preference is for short-term rentals like Airbnbs where tourists would like to stay downtown, looking out over the harbour or, if they are on Bay Street, looking out at Bay Street.
“Our sense is that there’s demand for property downtown. We’re trying to get a better sense of what [usage of that space] should be. We have $4m tied up and planned for that. At this stage it’s still a bit open. It will take us a year to 18 months to get the whole renovation completed. I don’t think we’ll start to
make significant revenues on the top two floors for 18 months,” Mr Anderson continued.
“The remaining two floors, the ground floor is retail space and that continues to be rented, and then there is the restaurant on the second floor. Those two properties we anticipate will cover the cost of holding the building until the renovation gets completed. That property will not be accretive to income earnings right away but we should cover cash flow and costs for those two floors.”
Meanwhile, towards New Providence’s southern side, the RF Bank & Trust
president confirmed that the Fund is also set to soon begin vertical construction on its warehouse and storage facility. “We’re getting ready to start on the warehouse,” Mr Anderson said. “We’re waiting for final approval for that, but are hoping to start that in the final quarter of this year.
“We have cleaned up the site and the warehouse project is anticipated to take all year. We should be in the rental market with the warehouse in the final quarter of next year. We do have all the layouts in terms of the size of the warehouse mapped out but have not done rental income projections.”
Speaking to both Beaumont House and Bahamas U-Store Ltd, Mr Anderson said: “Those two properties will not be driving revenues next year. We expect that it will be 2026 when both of those projects come to fruition and start to impact rental revenues.
“We expect most of our rental properties to be generating returns of 15 percent per annum. We don’t take on projects which are below a return of 15 percent. Hopefully we will start to generate cash from them and there will be more cash flow coming through.
“We’re financing both those properties through a combination of mezzanine and bank debt. We’ve
sourced mezzanine and bank debt capital already. It’s just a matter of getting both projects to fruition. The Fund is back in that development/acquisition space and we’re looking at opportunities for both. If we see decent development opportunities we will take them on, and if we see decent acquisition opportunities we will equally see if we can take those on as well.”
Mr Anderson said combined acquisition and development costs for Bahamas U-Store Ltd will likely come in between $10m-$12m, while those for Beaumont House will fall in the $8m-$9m range once the deal closes and renovations proceed.
“It’s nice to see the Property Fund become what we’d set it out to do a number of years ago,” he added. “It got stalled and it’s nice that we’ve started again. We’re kind of motivated to get our Fund to work properly and create opportunities for investors. We thought the Property Fund would be a great asset for the local market.
“It was always the idea to create liquidity out of a fairly illiquid asset and give people an opportunity to buy into buildings that otherwise they would not have a chance to. They could also sell their shares without the transfer tax on shares that applies to property.”
NOTICE
IN THE ESTATE OF KEVA LOUISE CLARK, late of Mangrove Bush of the Island of Long Island, in the Commonwealth of the Bahamas. Deceased.
NOTICE is hereby given that all persons having any claims against the above-named Estate are required, on or before the 30th day of September, A.D. 2024 to send their names and addresses, and particulars of their debts or claims, to the undersigned, and if so required by notice in writing from the undersigned, to come in and prove such debts or claims, or in default thereof they will be excluded from the beneft of any distribution
AND all persons indebted to the said Estate are asked to pay their respective debts to the undersigned at once.
AND NOTICE is hereby also given that at the expiration of the mentioned above, the assets of the late KEVA LOUISE CLARK will be distributed among the persons entitled thereto having regard only to the claims of which the Administratrices 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 date hereinbefore mentioned.
Dated this 23rd day of August, A.D., 2024. c/o PYFROM & CO
Attorneys for the Administratrices, No.259 Shirley Street, P.O. Box N 8958, Nassau, N.P., Bahamas
GB businesses suffer fire losses
By FAY SIMMONS Tribune Business
SEVERAL
Grand Bahama businesses lost inventory and equipment after fire a Monday evening fire engulfed the building that housed D’s Car Rental, Fast Forward Freight Logistics and Dove 103.7FM.
Romal Russell, owner of Fast Forward Freight Logistics, said customer packages were damaged directly by the fire while others were impacted by the smoke
and efforts to contain the blaze. “We sustained some damages to packages,” he explained.
“Fortunately, the fire was contained to one of our offices and that is where the damage was most concentrated. But because of heat and smoke and, obviously, water from the fire truck, we did sustain damage to some of our packages, but not a total loss.”
Mr Russell confirmed that the building was insured but the packages were not. “There is some level of insurance,” he said. “Obviously, we are renting. The building is injured, content,
no.” He added that his team will assess the value of the damaged packages and issue reimbursements to consumers.
The Fast Forward Freight Logistics chief said that while he is still determining whether to relocate the business or make temporary arrangements until repairs have been completed, he intends to resume operations in short order.
“The plan for now is to assess, to spend the rest of the day assessing the real extent of the damages,” Mr Russell added. “We have not yet decided on a plan. We are considering options,
but nothing concrete about whether we’ll continue to operate at this location, or whether we will be finding temporary lodging while we make the necessary repairs.
“For all intents and purposes, after the day we expect to be up and running; business as usual, whatever that may may look like in the immediate future.” While investigations into the cause of the fire are still underway, Mr Russell confirmed to Tribune Business that it was not arson.
“We don’t want to preempt the investigation,” he said. “They have provided
NHI doctor backs lab benefits ‘cap’
By ANNELIA NIXON
A NATIONAL Health Insurance (NHI) provider yesterday said she understood why the Government has moved to impose “caps and limits” on the scheme’s laboratory benefits package.
Dr Burnell Cardron, at Pompey Medical, agreed that the measures are necessary to contain escalating laboratory costs. “We have over 160,000 Bahamians and residents enrolled in the programme now, and in order for them to be able to gauge or see their expenditures with regards to laboratory services, I think it’s a necessary implementation for the programme to be sustainable,” she said.
Dr Duane Sands, the Free National Movement (FNM) chairman, told this newspaper that he “cannot see how they could not have put the brakes on this runaway train” but Dr Cardron says she does not quite agree with him.
“You know, we don’t order blood work haphazardly just because, or just order a whole array of blood work just because they kind of dive side by side their
criteria, restrictions, which is understandable because you want to be able to engage your spending and you want to be able to, you know, be able to measure at least what you’re doing,” she explained. Dr Cardron said NHI tends to keep providers updated. She expects the scheme to let providers know if there are any changes. “So as far as I would say, I think that the programme is going somewhat smoothly now because they are energised, they are putting in the necessary capitations and limits so that it doesn’t just go haywire. People aren’t just ordering things at random just because,” she added.
Tribune Business revealed that NHI is set to impose “caps and limits” on a portion of the care benefits received by 160,000 Bahamians as part of further “cost containment measures”.
The Government healthcare plan’s governing authority, in a notice sent to the scheme’s providers, said the restrictions to laboratory benefits will be introduced in October 2024 and help to “better manage.... escalating costs”.
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL
The Public is hereby advised that I, ANTHONY STEVE BEEN of Long Bay Hills, Providenciales, Turks & Caicos Islands, TKCA IZZ, intend to change my name to MARVIN STEVE BEEN. If there are objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Offcer, P. O. Box N-742, Nassau, The Bahamas no later than thirty (30) days after the of date of publication of this notice.
NOTICE
NOTICE is hereby given that BIANCA MALEAH DESCOYARD of #30 Jackson Street, Nassau Village, New Providence, 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 August, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that RAKISHA MICHEL MICHEL of Marsh Harbour, Abaco, The 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 28th day of August, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
The notice also revealed that limitations will be maintained on the size of NHI’s care network, and the number of doctors, laboratories and other medical facilities offering services to patients enrolled in the scheme, with no new providers set to be added on New Providence before the 2024-2025 fiscal year ends next June 30.
Payments for laboratory services will now be made at month’s end on the 30th, instead of the 15th, from September onwards while the 90-day wait that all new patients - apart from expectant and new mothers, as well as infants - must endure before they can join NHI remains in place.
Dr Michael Darville, minister of health and wellness, in a messaged reply to Tribune Business inquiries confirmed that the notice from the NHI Authority was genuine and defended the measures as “prudent” to “ensure the continued sustainability and effectiveness” of the scheme.
“Due to the Government of The Bahamas’ broader fiscal management priorities, and to ensure the programme’s sustainability, the NHI Authority Board of Directors has directed the following cost containment measures in its fiscal
2024-2025 Budget allocation,” the NHI Authority Board warned.
“Starting in October 2024, the NHI Authority will introduce caps and limits to the laboratory benefits package to better manage escalating laboratory costs. Awareness campaigns will be launched to inform beneficiaries, providers and the public about these new measures.
“Expansion of the provider network throughout the archipelago will be guided by resource and capacity management considerations. No new providers will be onboarded in New Providence during the fiscal year 2024-2025.”
Confirming other more minor adjustments, as well as the continuing 90-day wait before most new patient applicants are admitted to NHI, the NHI Authority Board added:
“As of September 2024, the payment schedule for laboratory reimbursements will be adjusted to the 30th of each month. Capitation and bundled payments will continue to be reimbursed on the 15th of each month....
“The 90-day enrollment timeline for new beneficiaries will remain in place, except for maternity and infant beneficiaries, who will receive the previous
us with some preliminary findings, which I don’t want to share without it being concrete, but we certainly are able to confirm that there was no foul play.”
Darren Cooper, host of Make it Make Sense on Dove 103.7FM, said the fire damaged the equipment used to broadcast his show for the radio station. He is also trying to assess the extent of the losses.
“Everything I use for the show that I do at my location, they are all completely damaged,” he said. “We are now trying to understand the complete loss and then
standard processing timelines.” The changes, especially the laboratory benefits “caps and limits”, could affect up to 40 percent or four out of every ten Bahamians based on a 400,000-strong population.
Defending the measures, and seeking to explain the rationale for their implementation, the NHI Authority Board also warned that further cutbacks and restrictions may become necessary. It added: “Since its launch in 2017, the NHI programme has become a Bahamian success story, exceeding expectations and pioneering a transformative approach to healthcare delivery.
“The programme has successfully enrolled over 160,000 Bahamians and residents, and provided them access to essential healthcare services. It has also significantly improved health outcomes nationwide, ultimately contributing to increased life expectancy and reduced healthcare disparities.....
“These changes have been carefully and thoughtfully considered to serve the best interests of all stakeholders. The NHI Authority Board of Directors and executives are committed to responsible governance, which
we can go from there. No figure has been put together as yet.” Mr Cooper has not yet decided whether to continue operating from the damaged building but plans to discuss future arrangements with his team. “I have not given anything any consideration as yet, just trying to pick through the pieces and regroup,” said Mr Cooper. “I’ll speak to my team tomorrow, and we’ll plan the way forward from there. Theres a lot to take into consideration.”
necessitates the implementation of these operational and programme reforms,” it continued.
“Our provider network and the Bahamian public deserve a programme that operates efficiently while maximising resources. As we continuously assess the performance of the NHI Authority programme during the fiscal year, if additional measures become necessary we will communicate them directly to you, our valued stakeholders.”
The NHI Board concluded by pledging that it “will work diligently to recommend diverse and sustainable funding mechanisms to the Government, ensuring the longevity and success of the NHI Authority for future generations of Bahamians”.
Translated, the notice appears to warning Bahamians - and especially NHI beneficiaries - that there is little choice but to cap and restrict some of the care benefits they enjoy because the healthcare scheme’s costs are exceeding the multi-million Budget financing received from the Government.
