09022024 BUSINESS

Bank eyes solar after $6.5m expense jump

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

COMMONWEALTH Bank is eyeing investments in solar energy “to help control” electricity costs after its general and administrative (G&A) expenses jumped more than $6.5m for the 2024 half-year.

Tangela Albury, the BISX-listed lender’s chief financial officer, told Tribune Business in a series of written replies to this newspaper’s questions that “all opportunities for cost control remain open” after these expenses rose by 16.3 percent yearover-year for the first six months to $46.547m. Besides Bahamas Power & Light (BPL) bills, she said multiple other “non-controllable” factors are driving Commonwealth Bank’s costs higher including the $3m annual increase imposed by the reinstatement of the Business Licence fee on the commercial banking industry. Premiums payable to the Deposit Insurance Corporation, which protects bank customers’ deposits, are

Gov’ts

also expected to double to $1.6m annually.

The G&A increase, which raised total non-interest expenses by 8.6 percent or nearly $3.5m for the 2024 half-year, growing them to $43.189m compared to $39.755m, was the only dampener on a six-month performance in which Commonwealth Bank came close to matching its prior year performance.

It achieved 95 percent of 2023’s $35.881m mid-year profits, coming in almost $1.8m less at $34.09m. Ms Albury told this newspaper that the

half-year results were “ahead of expectations”, with the bank’s delinquency ratio for non-performing loans - credit that is 90 days or more past due for payment - dropping from 8.67 percent at the start of 2024 to 7.37 percent at mid-year.

With Commonwealth Bank expecting the 2 percent loan book growth seen for 2024 to-date to continue through the year-end, she addressed the recent controversy over commercial bank fees by asserting that

$102m deficit swing shrugs off VAT undershoot

By NEIL HARTNELL Tribune Business Editor

THE GOVERNMENT says it has broken the long-standing trend of May Budget deficits with a $101.7m positive swing that generated a near-$26m monthly surplus for the recently-closed 2023-2024 fiscal year.

The Ministry of Finance, in unveiling the Davis administration’s May 2024 fiscal performance, said the surplus - which means the Government’s revenue income actually exceeded its total spending - reversed prior year monthly deficits of $75.9m in 2023 and $80.8m for 2022.

The outcome, which it said was driven by a combination of increased tax and other revenue collections plus year-over-year reductions in both recurrent and capital spending, helped push the Government’s deficit for the first 11 months of the 2023-2024 fiscal year down further to $151.1m. With just one month, June, to go in that fiscal cycle, May’s performance as detailed by the Ministry of Finance placed the Davis administration within just $20m of the projected full-year deficit target of $131.1m. However, slashing the ‘red ink’ further to achieve that goal will be

New permit value near-triples

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Bahamian construction industry is “just getting into the meat of what it can do” after the value of new building permits issued during the 2024 first quarter near-tripled year-over-year.

Leonard Sands, the Bahamian Contractors Association’s (BCA) president, told Tribune Business it was “absolutely positive and encouraging” that the total value of all permits granted during the three months to end-March 20204 had increased by $210m to $318.232m when compared to the same period in the prior year.

This was despite the actual number of permits issued increasing by only 20, according to the quarterly Building Construction Statistics released by the Bahamas National Statistical Institute (BNSI). The

‘Crippling’ for economy if Abaco ports not resolved

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A CABINET minister has acknowledged growing concerns over the fate of Abaco’s two commercial shipping ports amid fears this could be “crippling” for the island’s economy if unresolved.

JoBeth Coleby-Davis, minister of transport and energy, in a messaged reply to Tribune Business inquiries said she hopes to reveal more about the future for both the Marsh Harbour and Cooper’s Town ports “in short order” with the island’s private sector

to

that Hurricane Dorian inflicted on the former facility exactly five years ago.

The lack of repairs and improvements to the Marsh Harbour port since the Category Five storm struck were described by Abaco businesses as “the sword of Damocles hanging over our heads”, given that this could result in it being declared non-compliant with international shipping regulations. Should this occur, vessels leaving the US would no longer be able to sail

JOBETH COLEBY-DAVIS

DAPHNE DEGREGORYMIAOULIS

LEONARD SANDS

JOBETH COLEBY-DAVIS

PRIORITISE AI GOVERNANCE NOW FOR FUTURE SUCCESS

In 2022, IBM Watson Health, whose role was to enhance cancer treatment recommendations, faced severe criticism for providing inaccurate and ineffective guidance due to flawed data and algorithmic errors. This led to a drastic reduction in the project’s scope, and IBM’s decision to exit the healthcare artificial intelligence (AI) market, which significantly damaged the company’s reputation and raised concerns about the reliability of AI in critical healthcare applications.

This incident, and others, are stark reminders that while AI holds immense potential for innovation and efficiency, its deployment is fraught with risks. As AI continues to permeate every facet of business, Boards of Directors must ensure their companies navigate this complex landscape responsibly. With ongoing legislative developments in the UK, and proposed legislation in the US, aimed at regulating AI, the stakes have never been higher.

This article will provide insight into the strides made by the UK and the US towards AI governance, and the steps that Boards of Directors must consider when exercising their fiduciary roles.

The UK is actively exploring different regulatory approaches to AI. In March 2023, the UK government published its AI regulation ‘white paper’, which outlines a framework

for regulating AI in a manner that promotes innovation while ensuring safety and transparency. While no comprehensive AI regulatory framework has been officially enacted as of yet, the UK’s focus on creating a pro-innovation regulatory environment highlights the growing importance of AI governance. Meanwhile, in the US, the Algorithmic Accountability Act, initially introduced in 2019 and reintroduced in subsequent years, calls for companies to evaluate the impact of automated decision systems and mitigate risks related to bias, privacy and transparency. Although this legislation was rejected in January 2023, it reflects how US regulatory efforts may evolve. Additionally, the Federal Trade Commission (FTC) has issued guidelines emphasising fairness, transparency and accountability in AI use, further underscoring the need for robust AI governance.

For company directors, the first step in navigating this new reality

BANK of The Bahamas says profits for its 2024 financial year increased by 72.8 percent to $19.7m due to a combination of

is understanding the strategic intent behind AI adoption. AI should not be pursued merely to keep up with trends. Rather, it must align with the company’s core business objectives. The temptation to deploy AI for superficial gains must be resisted, as it can lead to misguided investments and increased risk exposure.

Moreover, corporate Boards must ensure their organisations have comprehensive AI policies in place.

A May 2023 survey by ISACA, a global association of information technology (IT) professionals, revealed that only 15 percent of companies currently have such policies, thus leaving a significant gap in AI governance. These policies should cover ethical considerations, data handling practices and transparency requirements, plus other critical areas.

Another critical aspect of AI governance is risk management. AI can introduce a variety of risks - from biased algorithms to data privacy violations.

improved operational efficiencies and aggressive sales.

The BISX-listed institution, which is more than 82 percent owned by the Government via the Public Treasury and National Insurance Board (NIB), hailed “robust” collection and recovery efforts on delinquent/past due loans as another factor driving the improvement from the prior year’s $11.4m net income.

“We have delivered excellent commercial performance in retail banking, with consumer loan growth of 21 percent, amounting to an increase of $27m, supported by a resilient net income,” said Neil Strachan, Bank of The Bahamas managing director.

He added that the bank’s expanding customer base, and favourable market conditions, allowed it to enhance interest income by reinvesting excess liquidity over the 12 months to endJune 2024..

Bank of The Bahamas said in a statement that it introduced several key initiatives including its debit card distribution, opening of a mortgage centre, and relaunching of an u[graded online banking platform for retail clients.

The bank also hosted successful sales campaigns and credit growth initiatives, such as a mortgage fair and

Boards must ensure their companies have robust mechanisms to identify, assess and mitigate these risks. This includes internal AI deployments and the usage of third-party vendors and partners. The Board should insist on rigorous due diligence and continuous monitoring of these external relationships to avoid potential fallout from irresponsible AI practices.

The Board is responsible for more than just policy oversight and risk management. It should also be concerned with the practicalities of AI governance, such as defining clear roles and responsibilities for AI oversight within the company. Whether through dedicated AI governance roles or integrated digital trust frameworks, the Board must ensure accountability for AI initiatives.

In conclusion, the Board’s role in AI governance is not just about compliance. It is about steering the compant towards sustainable and responsible innovation. Boards must ask the

auto shows, and actively participated in financial symposiums across New Providence and the Family Islands.

“Our strategic partnerships and initiatives have been pivotal to our success,” said Mr Strachan.

“Our overall operating income increased by $4.7m compared to the previous fiscal year, with $4.2m of that increase coming from interest income generated by our lending campaigns and smart investments in money market and investment vehicles.

“An additional $0.5m increase in non-interest revenue, driven by higher income from merchant services and card products, further bolstered our financial performance.” Bank of The Bahamas also benefited from a net impairment reversal of $5.8m, which represented a significant improvement over the $3.2m net impairment loss recorded during the 12 months to end-June 2023.

The BISX-listed institution said this reversal was largely driven by the bank’s delinquency management team, improved economic conditions and reduced unemployment. However, Bank of The Bahamas’ operating expenses increased by $5.3m due to higher depreciation, employee expenses, Business Licence fees, IT costs

right questions, enforce policiesand ensure continuous oversight so that their organisations can harness AI’s potential while safeguarding against its risks. Considering the evolving regulatory landscape, the message for Boards is clear: Prioritise AI governance now to ensure their company’s long-term success.

and other administrative expenses. Regulatory and statutory licence fees were accompanied by hikes in building insurance and administrative expenses.

“While managing these costs is a challenge, we remain committed to investing in our employees, physical locations and technology to better serve our customers,” said Mr Strachan.

As at end-June 2024, Bank of The Bahamas’ total assets stood at $998.7m. Loans and advances to customers totalled $401.4m, while its common equity tier one (CET) capital ratio of 43.4 percent is above the Central Bank’s minimum requirement of 18 percent. Total equity was $199.7m.

NEIL STRACHAN

GBPA ONLY ‘REGULATOR’, NOT TROUBLED BRIDGE’S OWNERS

By NEIL HARTNELL

THE Grand Bahama Port Authority (GBPA) has pledged “safety is our utmost priority” while denying that it owns or has primary responsibility for a crumbling bridge some fear could be in danger of collapse.

Ian Rolle, the GBPA’s president, in an August 30 letter to Terence Gape, senior Freeport partner at the Dupuch & Turnquest law firm, said the city’s quasi-governmental regulator had contacted Taino Bridge’s developers to confirm the bidding process for selecting a company to repair the key infrastructure asset has been completed.

Affirming that the GBPA was involved solely in its capacity as “regulators” and city manager, he pledged that its building and development services department will supervise the bridge repairs “with the highest level of diligence” so that the necessary safety standards are achieved and the transportation link “reopens in a timely manner”.

Responding to Mr Gape, who had warned the GBPA that legal action may be triggered if the bridge’s deterioration and/or closure results in the collapse of an $18m deal to sell Taino Beach Resort and its affiliated property, the Flamingo Bay Hotel and Marina, Mr Rolle wrote that Freeport’s quasi-governmental authority was not responsible for maintenance and repairs.

“Firstly, it is important to clarify that the Grand Bahama Port Authority (GBPA) does not own the Taino Beach Bridge nor is it responsible for its maintenance or repairs. The responsibility for the upkeep and management of the bridge falls under the jurisdiction of the developers of that area,” the GBPA president wrote in a letter seen by Tribune Business

“Regarding the closure of the bridge, while GBPA

did not initiate the closure we fully acknowledge that it was implemented for safety reasons. The decision to close the bridge was made to ensure the protection of the residents and prevent potential hazards. Safety is our utmost priority, and we support measures that mitigate risks to the residents.

“Additionally, we have been in communication with the developers regarding the current condition of the structure. They have advised us that they have engaged an engineer of record and have completed the bidding process for any necessary repairs or improvements as deemed appropriate by the engineer.”

Mr Rolle did not identify the Taino Bridge’s “owners” in the letter. However, he is likely referring to the Grand Bahama Development Company (DevCO) and Lucaya Service Company (LUSCO). This newspaper also understands that the developers of a subdivision, or subdivisions, in that area may have an interest in and some responsibility for the bridge.

Any attempt by the GBPA to distance itself from the bridge, though, may raise eyebrows among some observers given that its Port Group Ltd

affiliate owns 50 percent of DevCO along with holding a presence on its Board of Directors. This gives Port Group some influence over the company’s policies and direction, even though DevCO’s Board and management control resides with Hutchison Whampoa.

“As regulators, we are committed to ensuring the safety and well-being of our residents and all individuals traversing the bridge,” Mr Rolle added. “Our Building and Development Services Department (BDS) is fully committed to overseeing the repair process of the bridge with the highest level of diligence.

“They are employing all necessary measures to monitor the repair work closely, ensuring that it adheres to safety standards and is executed efficiently. BDS will work in collaboration with the contractor and the engineer of record to address any issues promptly and to maintain rigorous oversight throughout the process.

“Our primary focus is on ensuring that the repairs are completed safely and that the bridge is reopened in a timely manner, prioritising the safety of the residents and the structural integrity of the bridge.” Mr Rolle’s letter was sparked after Mr Gape had warned him in August 14, 2024,

correspondence that the bridge’s condition “represents a major threat to all residents and income earners” based on Taino Beach Island.

He argued that “the general opinion” is that the bridge’s deterioration is now so severe that a rebuild, rather than just merely repairs, is required especially given the seeming failure to resolve the key infrastructure asset’s state earlier.

The letter urged the GBPA and its affiliates, DevCO and LUSCO, to release a survey and engineer’s report alongside their plans to rebuild the bridge within the next 30 days.

Mr Gape said developing an infrastructure asset to match “the salubrious nature” of the area would ease “the anxiety of investors and residents alike”.

And he also warned that Taino Beach Resort’s owner was exposed to a potentially “enormous” loss if the proposed purchaser were to cancel or withdraw from the deal due to concerns over Taino Bridge’s condition and the uncertainty surrounding plans to address this.

Alluding to the potential consequences for the resort and Flamingo Bay Hotel & Marina, Mr Gape wrote: “The Taino Beach Resort is

comprised of 157 timeshare units and 66 hotel units with a Bahamian staff of up to 100 persons, which can have as many as 500 tourists and timeshare owners on site at an given time......

“Our clients are particularly concerned that, should the bridge collapse or become impassable, particularly within the next six to nine months, the economic feasibility of this pending sale and, indeed, the business of the resort and livelihood of the resort’s employees and the enjoyment of the resort by tourists and timeshare owners will be materially and negatively affected.

“Indeed, depending on the nature and extent of the collapse and closure, the sale of the resort itself may be in jeopardy and cancelled, and our client’s loss will be enormous,” the Dupuch & Turnquest senior partner wrote.

“As the Taino Bridge stands, it represents a major threat to all residents and income earners on Taino, and represents generally a threat to their investments and/or employment and constitutes a public nuisance as a major cause of anxiety to the population for which we believe you and/or your subsidiary companies [DevCO and LUSCO] are and/or would be liable.”

Ever since Mr Gape’s letter was delivered to the GBPA, the latter’s affiliates appear to have sprung into action. LUSCO, in a notice issued on August 20, 2024, warned boaters that the “water passage” beneath Taino Bridge was closed due to the need to effect repairs.

“LUSCO advises operators of marine vessels of all types that, as a preventative measure and safety precaution, the Taino Bridge water passage is closed due to repairs required to the Taino Beach Bridge,” it added.

“Mariners in the Fortune Bay area may exit the Fortune Bay canal entrance and navigate along the southern shore of the island to the Bell

Channel Bay entrance and vice versa until the repairs are completed.” Research by Tribune Business shows that LUSCO was aware of Taino Bridge’s growing problems more than one year ago.

“An initial assessment was conducted by the Building and Development Services Department (BDS) of the Grand Bahama Port Authority and, out of an abundance of caution, the western half of the bridge will be closed to swiftly facilitate the necessary repairs,” it said in an August 24, 2023, statement.

“The eastern half of the bridge will be converted to a dual carriageway to allow the public to safely traverse while we immediately begin the remediation process. We have already conducted the initial inspection. An independent engineering firm will be engaged within two weeks to prepare the scope of work, design and finalise the repair plan and timeline.

“We anticipate that repairs will commence within four to six weeks with the duration to be determined pending the scope of the work.” LUSCO said then that it had been in communication with all key stakeholders over its plans and the need for repairs.

The bridge represents the only transport link to attractions and businesses such as Smith’s Point Fish Fry, Pirate Cove Zip Line and Water Park, the Dolphin Experience, Stoned Crab Restaurant and Tony Macaroni’s Conch Experience. However, repair progress has been slow.

Charisse Brown, DevCO’s chief executive and legal counsel, was quoted in May 2024 as saying: “The bidding process to select a contractor for the project is currently underway, with the selection expected in June. We reassure residents that the bridge’s condition, particularly the underside, is monitored by a contracted structural engineering firm to prevent further deterioration.”

Resorts hope dining will carry them through slowing tourism

By ANNELIA NIXON

SOME Family Island resorts are hoping their restaurant offerings can generate sufficient business to see them through the traditional fall lull in tourism activity.

Reginald Wood, management consultant at Exuma Palms Resort, said the resort has seen an influx of visitors to its restaurant even though there are fewer guests currently booking rooms as the annual tourism cycle contends with peak hurricane season and the back-to-school period.

He added the thought and work placed into the resort’s menu, and its dining experience, appears to be paying off. “We get very, very, very strong, positive reviews from our menu,” Mr Wood said. “The dining experience is usually a rather unique one.

“We have themed menus that change five times a week in the regular season. So you can have a Bahamian night, an Asian night, Caribbean night. Right now we’re running a schedule of Friday and Saturday all day, and Sunday through Thursday, just breakfast.”

Mr Wood told Tribune Business that Exuma Palms will “black out” a few weeks from the middle of September going into the first week of October. It will use this period for upgrades and construction to the rooms without disrupting guests.

Ahead of the endNovember Thanksgiving holiday, which marks the traditional start of the winter tourism season, he added that the resort will encourage most employees to take their vacation during this time and retain

a few who can help in specific areas, including the construction work that will take place. Due to what Mr Wood described as a miscommunication, Exuma Palms representatives were absent from the job fair held recently for Exuma residents; especially Sandals Emerald By employees given the resort’s closure for conversion into a Beaches brand. However, he and other management executives met with “officials from tourism just this week” to discuss employment opportunities for Exumians.

This comes after Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, said he and his team would be visiting with hotel owners in Exuma every week. “We are meeting weekly with local hotels, and we are also engaging homeowners who do rentals to ensure they are listed and can be integrated into promotions and packages,” Mr Cooper added.

Vernessa Sands-Fowler, manager of Island Comfort Bed and Breakfast, said the resort is feeling the pinch from tourism’s off-season. After closing for a week it has not received any guests or occupancy since reopening, but there has been an influx of visitors to its restaurant.

“We have probably three bookings in September and that’s about it,” she told Tribune Business. “No previous bookings for November or December, and this is our season where we supposed to be at our highest.”

She believes there are multiple reasons why business is slow, including the growing competition from

vacation rental homes, adding that those who visit the hotel’s restaurant often come from vacation rentals in Nicholls Town a few minutes away.

Ms Sands-Fowler added that the majority of the property’s guests are Androsians or Bahamians visiting the island for a regatta, Crab Fest or some other event. Tourists, though, are fewer in number. She blamed a lack of activities, saying: “We don’t have nothing going for Andros.

“They always call us the sleeping giant, and that’s what we’ve always

been. We need our tourist destinations to be more appealing to the tourists. Like how we have the blue holes, do something to make that more active for tourists.

“Then we have different hobbies that we like to do, like bone fishing and fly fishing and all those stuff. Things like that. They need to be more available for tourists when they come. Then we have the Ministry of Tourism. They so laid back in Andros, I don’t see what they doing.”

Ms Sands-Fowler said staff levels have had to be reduced in line with current

business volumes, and only three general managers, two kitchen workers and a custodian are maintaining the hotel.

“We don’t have the funds to pay them,” she said. “They know they are just part-time workers.”

However, Brian Albury, manager of the Conch Inn Hotel and Marina in Abaco, said all three business segments - marina, restaurant and rooms - are contributing equally to its existing business levels as the island continues to push forward and overcome the devastating fall-out from Hurricane Dorian and COVID-19.

While tourism has definitely entered the slow season, he expected business to be slower but has been pleasantly surprised by the mix of locals, tourists and other Bahamians visiting the hotel.

Mr Albury said the resort has been rebuilding since November 2020 and, now that it has entered the slow period in the tourism calendar, will complete the finishing touches and general upkeep. He does not, however, expect to close his doors, allowing all of his employees to remain employed.

Delay for electric vehicle dealer’s second location

By NEIL HARTNELL Tribune Business Editor

nhartnell@tribunemedia.net

Abundant Life Road

Pia Farmer, partner at Easy Car Sales, told Tribune Business that the company will have an official opening at its

A BAHAMIAN electric vehicle dealer yesterday disclosed that the weekend’s heavy rainfall forced it to postpone the “soft opening” of its second Nassau location by one week.

site, which will ultimately house its headquarters building, towards the end of September 2024. She added that “all the signage will go up and we’ll definitely be open by next Saturday”, adding that customers will be able to access the business via the service road that serves the Solomon’s food store rather than the East-West Highway or Abundant Life Road.

Gov’ts $102m deficit swing shrugs off VAT undershoot

extremely difficult based on historical fiscal trends.

For June is typically when the Government incurs its largest monthly deficits as multiple ministries, departments and agencies race to present bills for payment before year-end that the Ministry of Finance knew nothing about. The Government has run deficits totalling $318.7m and $212m for June 2023 and 2022, respectively, showing the task facing the Davis administration in achieving its initial deficit goals.

Subsequently, in unveiling the 2024-025 Budget, the Government revised the deficit forecast for the past fiscal year to the higher end of a range between 1 percent and 1.5 percent of Bahamian economic output or gross domestic product (GDP). This was later narrowed down to $210m, meaning that the Davis administration must cut the June deficit to around $60m to realise this.

This represents a major reduction compared to prior years, and will have to be achieved despite a significant undershoot on VAT projections. The Ministry of

Finance’s late Friday release shows that VAT, which accounts for more than 50 percent or half the Government’s tax revenue, was just at 78.8 percent of the fullyear target with 11 months of 2023-2024 completed. While already slightly ahead of the prior 2022-2023 full fiscal year collection, at $1.254bn, the roughly $100m in additional VAT that June will yield will put the full 12-month total at around $1.354bn. This will be some $237m below the $1.591bn target set for the 2023-2024 full-year.

VAT’s under-performance, which Prime Minister Philip Davis KC previously blamed on delays and evasion relating to the collection of the 10 percent levy on high-end real estate sales, also means that the Government’s tax and total revenues are also set to come in below target. As at end-May, the Government had collected just 87 percent and 85.6 percent of total tax and revenues forecast for 2023-2024, respectively, largely due to VAT’s undershoot. Total tax revenues at end-May stood at $2.539bn, leaving a $380m gap to close in June to reach the $2.919bn target. June in

2023 yielded just $174m in total tax revenue. As for total revenues, these stood at $2.841bn at end-May as opposed to a full-year target of $3.319bn - leaving a $478m gap to bridge in June. Still, the Government can point to its revenue successes, as real property tax enforcement and compliance efforts, including auctions of delinquent properties, helped beat the full year’s $195.3m target with some $196.2m collected as at end-May 2024. Questions, meanwhile, were raised over whether the Government has deferred payments to vendors and other payables, as well as cut capital expenditure, to help meet its 2023-2024 deficit targets. These were based on the fact that payments for goods and services, as well as subsidies, fell in May due to what were described as “timing-related differences”.

Fred Mitchell, the PLP’s chairman and minister of foreign affairs, in a recent note to the party’s supporters also said The Bahamas “is in a tight economic squeeze” and that the Government is “seeking to pay

as we go, not to borrow if we don’t have to”. Some, including the Opposition, interpreted this as an admission that the Government has cash flow and liquidity difficulties, and is paying vendors in stages.

This was vehemently denied by Mr Mitchell. And Mr Davis, during the 2024-2025 Budget debate, asserted “that suggestions that the reduction in the deficit is due to an accumulation of payables are erroneous” as these had been slashed from 3.9 percent of GDP to 2.1 percent.

The Ministry of Finance, detailing May’s fiscal performance, said: “The $242.9m in recurrent outlays for the month represented a decrease of 17.9 percent ($53.1m) from the corresponding period in the prior year.

“Outlays for the use of goods and services decreased by $25.3m to $46.6m, primarily explained by timing-related differences in payments. Subsidies dropped by $14.8m to $19.9m, and was attributed to timing differences in transfers to SOEs (state-owned enterprises).” No further explanation was provided on these

“timing differences”. Elsewhere, interest payments on the Government’s debt fell by $8.4m to $62.9m in May 2024, while spending on social assistance and transfers decreased by $1.3m to $19.5m.

“Capital expenditures declined by 48.5 percent ($17.7m) to $18.8m. The bulk was expended for the acquisition of non-financial assets (89.7 percent), and the remaining 10.3 percent represented capital transfers,” the Ministry of Finance said.

“Preliminary data on the fiscal outturn for May 2024 showed an estimated surplus of $25.8m compared with a deficit of $75.9m a year earlier. This outcome reflected a 12 percent ($30.9m) increase in revenue receipts to $287.5m alongside a 21.3 percent ($70.8m) reduction in spending to $261.7m.”

As for tax and revenue performance, the Ministry of Finance added: “Tax receipts improved over the same period in the prior year by 9.4 percent ($20.8m) to $241.6m. Property taxes [increased by] $15.1m to $21.9m, reflecting the outcome of enhanced revenue collection measures.

Construction ‘into the meat’: New permit value near-triples

report also revealed that, while construction completions actually fell in number during the 2024 first quarter, they, too, tripled in value through increasing by $105m to $157.759m.

Mr Sands told this newspaper that, despite the impressive performance, “the number one challenge” facing the Bahamian construction industry is that work is “increasingly being” divided up between new market entrants as opposed to long-standing contractors who have been industry stalwarts for the better part of two decades.

Declining to call names, he said these newcomers have established “formidable businesses” in sectors such as landscaping and heavy equipment because they have been able to access cheaper foreign currency financing outside The Bahamas’ borders.

And the BCA chief also cautioned against reading too much into the data,

adding that the increased value of new permits and completions is not necessarily a sign that more contractors are seeing both an increase in the volume and value of their work. He said some of the increases could result from large, multi-million dollar contracts being awarded to just one contractor. Nevertheless, Mr Sands added of the numbers disclosed in the BNSI report: “That’s encouraging. There’s a fair amount of work going on. There’s a lot of projects starting to get more investment, dollars flowing through. We’re really seeing the economy try to stabilise post-COVID and post the hurricane, and we’re just getting into the meat of what the construction industry can do.

“It’s absolutely positive and encouraging when we see an increasing number of permits and increases in their value. The overarching message is we are certainly encouraged. It means more activity, but the number one

challenge is that the work being done is increasingly being shared up by new entrants to the sector who are not necessarily persons in the field for the last 15-20 years.

“We have new money coming into the country, looking at ways to make some income and make some more profits, and construction is one where they can make increased profits if they manage their companies well. Local contractors domiciled in The Bahamas are facing an unfair disadvantage. The sector is one you have to monitor and see if there are ways to level the playing field.”

Asked to explain this further, Mr Sands said the influx of new construction industry players has been “steadily noticed”. He added: “It’s not been overnight; it’s been over years. Some are in landscaping, some are in heavy equipment, some are in services.

“They have access to capital that enables them to set up formidable businesses,

get direct to the customer and gain an advantage. That’s what happens when you have access to funding outside the borders. It makes access to funding easier.”

The BCA president also cautioned that, while “statistics are statistics”, there may be segments of the construction industry, as well as groups of contractors and tradesmen, that are not feeling the increased value of new building permits.

“You could have four major developments between three islands that are worth hundreds of millions of dollars, but it doesn’t mean that contractors have hundreds of thousands or millions of dollars or work,” Mr Sands explained. “One contractor could be doing a road for one of those developments that’s $60m. That’s not 20 contractors.

“That’s why you cannot always look at the numbers and say everyone is doing well. Numbers are very deceptive, and don’t tell the story enough. There could be $100m and one contractor doing the work. That’s not the same as $50m being split between 30 contractors. What someone feels on their end has to be related to the marketplace.

“There are hundreds of millions being spent on infrastructure projects. That’s the leading sector right now. The infrastructure space is doing

incredibly well.” The BNSI, meanwhile, said its report was based on data provided by the Ministry of Works, the Department of Local Government, Family Island administrators and the Grand Bahama Port Authority (GBPA). While the number of new building permits issued during the 2024 first quarter increased by 20 to 348, the real jump was in the value. “During that same period, the value of permits issued also increased by $210m. The private/residential sector value increased by $80m, the commercial/ industrial sector by $102m, and the public sector by approximately $28m,” the BNSI said. The construction industry’s performance is usually one of the bellwether indicators for how an economy is faring. Mr Sands described the residential segment, where new permits more than doubled in value to $154.006m compared to $73.993m in the 2023 first quarter, as the industry’s “main bread and butter” and suggested the numbers showed “things are looking up and the economy is faring pretty well”.

The value of newlyissued commercial permits, meanwhile, rose more than four-fold yearover-year from $32.902m to $134.554m. Total public sector new permits increased in value from a negligible $1.73m the year

“International trade and transactions taxes [rose by] $12.6m to $77.6m supported by growth in domestic demand, and VAT collections [increased] by $8.8m to $107.7m. Non-tax revenue aggregated $45.9m for a $10m gain relative to the corresponding period in the prior year.

“Immigration and Customs administrative fees and service charges supported a $3.3m increase in income from the sale of goods and services to $22.7m. Other non-tax revenues were higher by $7.1m at $23.2m, primarily linked to receipt of surplus bank fees/levies.”

As to what this all meant for the Government’s debt, the Ministry of Finance said: “During the review month, central Government’s debt outstanding increased by an estimated $17.3m. Proceeds from borrowings totaled $107.4m, with a dominant 97.7 percent derived from Bahamian dollar bond issuances. Repayments of $90m were mainly earmarked for domestic government securities.”

before. As for 2024 first quarter new construction starts, these increased by just two to 124 compared to the same period in 2023.

“The value also increased by $19m over the same period in 2023,” the BNSI report said. “The private/ residential sector and the public sector both had decreases in value of $1m and $0.1m respectively. Conversely, the commercial/industry sector had an increase of approximately $21m” to $31.615m. The total value of private residential housing starts was $41.013m.

As for construction completions, they actually dropped in volume by seven to 173 during the 2024 first quarter. “The value, however, increased by approximately $105m in the first quarter of 2024 compared to the same period of 2023,” the BNSI report said.

“The private/residential sector value increased by $100m, while the commercial/industry sector construction completions value increased by $4m. The public sector completions recorded one project in the first quarter of 2024 valued at $0.06m.” The total value of residential housing completions more than tripled year-over-year, jumping from $48.102m to $148.303m.

As for the remainder of 2024 and moving into 2025, Mr Sands said: “We’re seeing even stronger indications from people making further inquiries about projects in 2025.”

JACKSON HOLE 2024: SETTING THE STAGE FOR THE FED’S NEXT MOVE

Every August, the world’s most influential central bankers, economists and financial market insiders converge on a small town in the mountains of Wyoming. Jackson Hole, best known for its rugged natural beauty has, since 1978, become synonymous with a gathering that often sets the tone for global monetary policy: The Federal Reserve Bank of Kansas City’s annual economic symposium.

What began as a modest conference has evolved into a high-stakes platform where central bankers articulate their policy outlooks and signal potential shifts in economic strategy.

The gathering’s stature was cemented in the early 1980s, under then-Fed chairman Paul Volcker, who used the forum to outline his battle against stagflation, a key moment that underscored the event’s relevance.

Over the years, Jackson Hole has hosted numerous pivotal moments in

economic history. In 2010, amid the lingering effects of the global financial crisis, Fed chairman, Ben Bernanke, used his address to hint at a second round of quantitative easing - a move that had profound implications for global markets. In 2014, European Central Bank (ECB) president, Mario Draghi’s, speech signalled a dramatic shift in the ECB’s approach to combating deflation, laying the groundwork for its eventual quantitative easing programme. These moments underscore the event’s ability to shape market expectations and influence policy debates far beyond the boundaries of the US. With its picturesque setting serving as a backdrop, the symposium has become a crucible where the future of global monetary policy is often forged.

This year’s Jackson Hole symposium, which concluded on Saturday, August 24, was particularly consequential. With global economic uncertainties on the rise, the spotlight was firmly on Federal Reserve chairman, Jerome Powell, who was expected to - and delivered in - providing critical guidance on the Fed’s path forward.

The US economy has been showing signs of cooling, with inflation gradually easing, growth decelerating and new job creation hitting a multi-year low earlier in August. This was the backdrop against which Mr Powell delivered his speech which, as anticipated, opened the door to a series of interest rate cuts, with the first due to be announced in September. After Mr Powell’s dovish keynote at Jackson Hole, many observers now

believe that the Fed may reduce rates by a total of at least 0.75 percent by the end of the year, with the first of these cuts, likely to be of 0.25 percent, all but guaranteed to take place in September.

Despite the lack of caveats, which is unlike him and

BANK EYES SOLAR AFTER $6.5M EXPENSE JUMP

the BISX-listed institution’s goal is “not to maximise” these charges but base price on the value delivered to consumers. She urged Bahamians to compare bank fees and “not assume all are doing the same thing”.

With net interest income up 3 percent year-overyear at $61.347m, and total income ahead of the prior year by more than $1.6m at $77.279m, Ms Albury said Commonwealth Bank is exploring “potential shifts” in how it manages costs it can control - such as energy bills - to ensure more revenue and top-line gains drop to shareholders via net profits.

“Several non-controllable expenditures have contributed to expanding operating costs for the bank,” she confirmed to Tribune Business. “The Business Licence tax has increased operating costs by approximately $3m annually since being reintroduced in 2023. The increase in depositors’ insurance premiums occurred in 2024 and is expected to double the annual 2024 costs to $1.6m.

“In addition, general insurance costs and other operating costs reflect infla tionary level increases. We are considering poten tial shifts in managing our controllable costs, such as investment in solar options to help control the Bank’s electrical spending. How ever, all opportunities for cost control remain open.”

But, despite the cost pres sures, Ms Albury voiced optimism that Common wealth Bank will hit its target of paying between 65-75 percent of its prof its out to shareholders as dividends. During the 2024 first half, some $23m was returned to investors via a combination of ordi nary and extraordinary payments.

“The 2024 second quarter operating results are ahead of expectations and budget as our focused attention on delinquency management continues to exponentially benefit the bank,” she added. “We opened the year with an overall portfolio delinquency of 8.67 percent, which had declined to 7.37 percent as of June 30.

“Based on the credit qual ity reports of the Central Bank, it continues at a level below that of the industry. The main drivers underpinning our performance continue to be the stability of the underlying economy, our laser focus on controlling loan delinquency levels, and our efforts to price credit risk effectively.

“Year-to-date, we have seen our loan book expand by 2 percent and we expect it to continue along this trend as funding for backto-school needs and holiday spending increases through to the end of the year.” Commonwealth Bank’s loan portfolio expanded by almost $15m during the 2024 first-half, growing to $822.819m from $907.984m.

And, given the recent furore surrounding commercial banking industry fees, Ms Albury said Commonwealth Bank’s priority in this area was not to maximise profits but base pricing on the value added to consumers while still earning a return on investment. She added that loan-related interest income, rather than non-interest fees and other sources, remain its core revenue driver.

“Our strategy is primarily around opportunities to add value to each customer and improve their experience with the bank, so to the extent possible that

we can do that, we charge a fee,” the chief financial officer said. “Our goal is not to maximise the fees charged but to price based on what value we can provide the customer and still see a profitable return for the bank.

“Fundamentally, it is vital that when the Central Bank releases its periodic reports on fees charged by banks competing for the business, customers consider their options and not presume that all banks are doing the same thing or have the same approach. The bank is focused on interest income growth, and non-interest income growth is supplemental to our primary efforts.

“We periodically review the fees on existing products, which may result in a revision. However, at this time, the bank’s focus on transaction-based fee income from the perspective of increasing the usage of the bank’s services and the introduction of services

Legal Notice

from which new transactionbased fees can be derived. We do not anticipate noninterest income to expand significantly in its contribution to the Bank’s overall profitability in 2024.”

Ms Albury said Commonwealth Bank has also invested in improving its resiliency, and the restoration of operations “after a catastrophic event through

reinforced expectations of a rate cut in September, Mr Powell remained as cautious as ever in communicating medium-to-long term plans, mindful of the risk of unsettling markets and being counterproductive. Signalling rate cuts too early could spur excessive borrowing, fuelling inflation and complicating future policy moves, or even forcing reversals. Still, this year’s Jackson Hole symposium was clearly the launch pad for the Federal Reserve’s first Funds Rate cuts since March 2020.

the use of cloud computing”, as well as upgrading its online banking platform. It is also readying for the potential impact that artificial intelligence (AI) and other forms of Fintech (financial technology) will have on its business model moving forward.

Looking ahead, she added: “We are expecting to close in 2024 with strong operating results. The first half performance has the bank ahead of budget expectations, although

“Credit production has been robust for 2024. Bearing in mind that normal loan amortisation or repayments naturally contract the loan book each month, our ability to grow the bank’s loan book is seen as a positive signal of the strength of our core loan products and customer service experience,” Ms Albury continued.

slightly behind the actual performance of 2023.

“The prospects for 2025 and slightly further out present a higher level of uncertainty - firstly for the economy of The Bahamas, and then for the recent accelerated pace in Fintech with the use of AI technologies. However, we retain a cautiously optimistic posture on the economy and are having conversations to prepare the bank for the new Fintech impacts on our business model.”

The Presidential Opportunity at University of The Bahamas

The Board of Trustees of University of The Bahamas (UB) is pleased to announce an intensive search for the next President of UB and invites nominations and applications for this exceptional leadership opportunity. The Board seeks a dynamic and inclusive leader who will embody a commitment to the values and traditions of the University. The next President will be an effective and transformational leader who builds on the exceptional strengths of UB, whose mission is to advance and expand access to higher education, promote academic freedom, drive national development, and build character through teaching, learning, research, scholarship, and service. The President will have a deep understanding of and appreciation for the culture of The Bahamas and will position the University for continued growth and success.

This presidential opportunity arrives at a pivotal moment in the history of the Commonwealth of The Bahamas as the nation celebrates 51 years of post-colonial progress and the 50-year legacy of UB. The University has expanded its focus to include continuous quality improvement, demonstrated by its commitment to achieving national and international accreditation. UB is publicly funded with locations on the islands of New Providence, Grand Bahama and San Salvador. UB offers diplomas, graduate, baccalaureate and associate degrees, as well as certifcates across approximately 60 academic programmes. The University serves approximately 4,500 students, has an alumni base of over 22,000 and is one of the largest employers in The Bahamas.

A comprehensive Leadership Profle outlining the University’s priorities as well as the characteristics and attributes of the next President is accessible at https://www.agbsearch.com/searches/presidentuniversity-of-the-bahamas

Additional information about University of The Bahamas is available at: https://www.ub.edu.bs/

AGB Search is assisting the Presidential Search Committee. To assure best consideration, applications and nominations should be received by September 19, 2024. All inquiries, nominations, and applications will be held in the strictest confdence.

Candidates are requested to submit the following documents in Microsoft Word or PDF format:

• A letter of interest describing relevant experience;

• A complete CV or resume; and

• Five professional references with email addresses, and telephone numbers. References will not be contacted until a later stage of the search and without the formal permission of the candidate.

All application materials should be submitted through the AGB Search portal system: http://bit.ly/45x16JU.

Candidates are invited to speak with the search consultant before submitting an application. Questions regarding the application process should be directed to UBahamasPresident@agbsearch.com.

FEDERAL Reserve Chairman Jerome Powell, left, Governor of the Bank of Canada Tiff Macklem, center, and Governor of the Bank of England Andrew Bailey chat outside of the Jackson Hole Economic Symposium at Jackson Lake Lodge in Grand Teton National Park near Moran, Wyo., on Friday, Aug. 23, 2024.

Photo:Amber Baesler/AP

‘CRIPPLING’ FOR ECONOMY IF ABACO PORTS NOT RESOLVED

directly to Abaco, and instead would have to unload their cargos in either Nassau or Freeport for onward shipping to the island. This would lead to massive disruption for Abaco’s heavily importdependent economy, increasing costs, time and inconvenience associated with logistics and the supply chain.

Speaking as both Abaco and Grand Bahama, as well as the entire Bahamas, marked Dorian’s fifth anniversary, Mrs Coleby-Davis acknowledged the future of both ports was important to Abaconians “and rightly so”. Bids from private sector operators to invest in, and take over the management and operations of each, were submitted in August 2023 but little has been heard of any progress since.

In her response to this newspaper, the minister voiced optimism that she would soon be able to provide greater clarity and details on what will happen with Abaco’s key commercial shipping infrastructure. She added that the bidding process for the Cooper’s Town port is being reviewed by the Bahamas Investment Authority (BIA) and directed further questions to that agency.

As for Marsh Harbour, Mrs Coleby-Davis said her ministry is holding talks with the US Embassy in Nassau “to have some security upgrades completed” while further consultation takes place over the bidding process and request for proposal (RFP) with the Prime Minister’s Office, Ministry of Finance and Attorney General’s Office.

“With respect to the RFP for Cooper’s Town, the required due diligence and reviews are ongoing by the Bahamas Investment Authority (BIA).

Based on this status, the ministry will direct further questions to the BIA,” Mrs Coleby-Davis told Tribune Business.

“With respect to the RFP for Marsh Harbour,

further consultations are required with the Office of the Prime Minister, Ministry of Finance and Attorney General’s Office. However, the Ministry of Energy and Transport is in discussions with the US Embassy to have some security upgrades completed.

“I am advised that the upgrades should include perimeter fencing, installation of CCTV cameras, paving, erection of a security booth and an office space. These issues are important to the people of Abaco and rightly so. I understand the concerns. However, in short order it is my expectation that I will be able to share greater details.”

Daphne DeGregoryMiaoulis, Abaco’s Chamber of Commerce president, voiced concerns to Tribune Business that “nothing has been done” to fully resolve dismal operating conditions at Marsh Harbour, the island’s main port of entry, since Dorian hit some five years ago. And little to nothing has been heard of the RFP process, and its outcome, for some 12 months.

“I’ve expressed concern that nothing has been said, nothing has been stated,” she said. “We’re having the Abaco Business Outlook coming up on September 19, and that’s [the ports] definitely one of the things we’re going to be addressing and, hopefully, get some assurance on. Not that this government is forthcoming on giving answers to anything. We’re very concerned about the fact nothing has been done.”

While Tropical Shipping has constructed its own facility outside the Marsh Harbour port, where customers can pick up containers and imports free from the facility’s hassles, Mrs DeGregory-Miaoulis conceded that not all shipping companies are able to do this.

She added that Marsh Harbour was “pretty much” in the same condition it attained following the temporary repairs and fixes

made post-Dorian, with the only recent improvement being the installation of bathrooms for Customs agents.

The Marsh Harbour faced challenges meeting international shipping regulations and standards even before Dorian, with the Government-owned and managed port failing its International Ship and Port Security (ISPS) “mock” inspection on June 18, 2019.

This sparked hasty action to ensure it passed the requirements of the subsequent “actual” assessment, but Mrs DeGregory-Miaoulis said it was a constant worry that the failure to remedy post-Dorian damage could result in Marsh Harbour failing a new ISPS inspection. This assesses whether a commercial shipping port is compliant with the global security standards introduced in the wake of September 11.

Failure would result in US cargo vessels being barred from bringing goods directly to Abaco, and the Chamber of Commerce president told Tribune Business: “That’s always been the fear. The last I heard was that the US embassy had people here, and their input towards the awarding of the contract was being considered.

“It’s as if we are waiting for them to say ‘we are going to clamp down on you and stop vessels from the US going to the port’, and for our officials to then scurry around and make the provisions necessary. That seems to be the norm. It’s unfortunate, but that seems to be the way we operate.”

As for the economic consequences should such a scenario occur, Mrs DeGregory-Miaoulis said: “That would just cripple us because that would an increased cost and, at this point, our expenses are already too high. We definitely could not handle any further increase; the consumer cannot bear it. It would all boil down to the consumer having to pay the additional cost, and it’s hard

enough as it is. It could be crippling.”

She added that while addressing Marsh Harbour’s deficiencies is now “beyond critical”, the Government “are certainly not treating it with any urgency” based on the relative silence since bids were submitted more than a year ago.

“I think the Abaco community deserves some announcement or update as to where we stand with the rebuild of the port,”

Mrs DeGregory-Miaoulis said. “It’s a major asset. If they shut us down it could be crippling. It’s as simple as that. I don’t think there’s anything more I can say that would be printable.”

Asked whether she believed Abaco is being neglected by Nassau-based policymakers, she replied: “It certainly is. They are certainly not making us a priority on their list. I’m not quite sure what their priorities are at the moment.”

Both the Abaco Chamber president and other sources said it is difficult to quantify how badly the port’s condition is impacting Abaco’s economy. “I don’t think it has had any negative impact per se because we are just making do and putting up with it,” Mrs DeGregory-Miaoulis said.

Another contact, speaking on condition of anonymity, added of the ISPS threat: “It’s like the sword of Damocles hanging over our heads. It would destroy the economy here without a doubt. At this point the impact’s been difficult to tell because we’ve been operating for five years like this. We don’t know how much better it could have been. At the same time, the port is still non-compliant.”

The Government has also, at the same time as the Marsh Harbour port RFP, initiated a bidding process for the Cooper’s Town facility in north Abaco that was constructed for $41m by China Harbour Engineering Company (CHEC).

Little further has been heard on that process, too. “That port is just sitting there deteriorating,” Mrs DeGregory-Miaoulis said. “It’s a lot of money spent and it’s not doing anything to really help the island’s development. We thought it was going to help to promote commerce to increase in the north, but it’s nonfunctioning. If Treasure Cay gets sold and open it will certainly help to increase the need for imports on the northern end of the island.”

Tribune Business previously revealed that the Government was eyeing a combined $100m investment to transform Abaco’s two commercial shipping ports into facilities that meet global best practices and standards.

The public-private partnership (PPP) tender documents for both the Marsh Harbour and Cooper’s Town ports revealed that bidders on the former must show they have combined equal capital and access to debt financing of “at least $60m” on the former. For Cooper’s Town, the figure was slightly less at $40m in collective equity and debt funding.

The tender documents revealed that the Government wanted the ownership structure for both Abaco port PPPs to mirror that which was put in place for BISX-listed Arawak Port Development Company (APD), operator of the Nassau Container Port, and which bid on the Marsh Harbour RFP.

For both the Marsh Harbour and Cooper’s Town

ports, the RFPs stipulated that a combined 20 percent equity ownership will be “offered for sale to the general public” although it did not specify whether this will be via an initial public offering (IPO) or other method.

The remaining 80 percent ownership interest was to be split evenly between the Government and winning PPP bidder, with each holding 40 percent. This split matches APD’s structure, where the Government and shipping industry each hold a 40 percent stake.

Meanwhile, among the expansion opportunities identified at the Cooper’s Town port was a 120-slip marina together with international and domestic warehouses, although no such opportunities were identified at Marsh Harbour.

Both RFP documents stated that each port will be leased to the winning bidder for a 25-year period, in an attempt to ensure they get a return on their upfront capital investment, with the Government wanting them to employ a workforce that is 80 percent Bahamian at a minimum.

NOTICE

NOTICE is hereby given that SHERLOCK PRINCE of 13 Wisteria Drive, Freeport, 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 26th 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 JEFFERY MCDOUGAL of P. O. Box N-3011 #4 Carter Street, Oakesfeld, 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 2nd day of September, 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 RENEE SHANIQUE BROWN of Bamboo Avenue, Nassau, 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 26th day of August, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE is hereby given that JUDITE APOLLON of #64 Bruce Avenue, 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 2nd day of September, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

COMPANIES ARE CRAFTING NEW WAYS TO GROW COCOA, AND CHOCOLATE ALTERNATIVES, TO KEEP UP WITH DEMAND

By AMY TAXIN and TERRY CHEA Associated Press

CLIMATE change is stressing rainforests where the highly sensitive cocoa bean grows, but chocolate lovers need not despair, say companies that are researching other ways to grow cocoa or develop cocoa substitutes.

Scientists and entrepreneurs are working on ways to make more cocoa that stretch well beyond the tropics, from Northern California to Israel.

California Cultured, a plant cell culture company, is growing cocoa from cell cultures at a facility in West Sacramento, California, with plans to start selling its products next year. It puts cocoa bean cells in a vat with sugar water so they reproduce quickly and reach maturity in a week rather than the six to eight months a traditional harvest takes, said Alan Perlstein, the company's chief executive. The process also no longer requires as much water or arduous labor.

"We see just the demand of chocolate monstrously outstripping what is going to be available," Perlstein said. "There's really no other way that we see that the world could significantly increase the supply of cocoa or still keep it at affordable levels without extensive either environmental degradation or some significant other cost."

Cocoa trees grow about 20 degrees north and south of the equator in regions with warm weather and abundant rain, including West Africa and South America. Climate change is expected to dry out the land under the additional heat. So scientists, entrepreneurs and chocolate-lovers are coming up with ways to grow cocoa and make the crop more resilient and more resistant to pests — as well as craft chocolatey-tasting cocoa alternatives to meet demand.

The market for chocolate is massive with sales in the United States surpassing $25 billion in 2023, according to the National Confectioners Association. Many entrepreneurs are betting on demand growing

faster than the supply of cocoa. Companies are looking at either bolstering the supply with cell-based cocoa or offering alternatives made from products ranging from oats to carob that are roasted and flavored to produce a chocolatey taste for chips or filling.

The price of cocoa soared earlier this year because of demand and troubles with the crop in West Africa due to plant disease and changes in weather. The region produces the bulk of the world's cocoa.

"All of this contributes to a potential instability in supply, so it is attractive to these lab-grown or cocoa substitute companies to think of ways to replace that ingredient that we know of as chocolatey-flavored," said Carla D. Martin, executive director of the Fine Cacao and Chocolate Institute and a lecturer in African and African American Studies at Harvard University.

The innovation is largely driven by demand for chocolate in the U.S. and Europe, Martin said. While three-quarters of the world's cocoa is grown in West and Central Africa, only 4% is consumed there, she said.

The push to produce cocoa indoors in the U.S. comes after other products, such as chicken meat, have already been grown in labs. It also comes as supermarket shelves fill with evolving snack options — something that developers of cocoa alternatives say shows

people are ready to try what looks and tastes like a chocolate chip cookie even if the chip contains a cocoa substitute.

They said they also are hoping to tap into rising consciousness among consumers about where their food comes from and what it takes to grow it, particularly the use of child labor in the cocoa industry.

Planet A Foods in Planegg, Germany, contends the taste of mass market chocolate is derived largely from the fermentation and roasting in making it, not the cocoa bean itself. The company's founders tested out ingredients ranging from olives to seaweed and settled on a mix of oats and sunflower seeds as the best tasting chocolate alternative, said Jessica Karch, a company spokesperson. They called it "ChoViva" and it can be subbed into baked goods, she said.

"The idea is not to replace the high quality, 80% dark chocolate, but really to have a lot of different products in the mass market," Karch said.

Yet while some are seeking to create alternative cocoa sources and substitutes, others are trying to bolster the supply of cocoa where it naturally grows. Mars, which makes M&Ms and Snickers, has a research facility at University of California, Davis aimed at making cocoa plants more resilient, said Joanna Hwu, the company's senior director of cocoa plant science. The facility hosts a

NOTICE

NOTICE is hereby given that RASHADO LOUIS of Hanna Road, 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 2nd day of September, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

living collection of cocoa trees so scientists can study what makes them diseaseresistant to help farmers in producing countries and ensure a stable supply of beans.

"We see it as an opportunity, and our responsibility," Hwu said.

In Israel, efforts to expand the supply of cocoa are also under way. Celleste Bio is taking cocoa bean cells and growing them indoors to produce cocoa powder and cocoa butter, said cofounder Hanne Volpin. In a few years, the company expects to be able to produce cocoa regardless of the impact of climate change and disease — an effort that has drawn interest from Mondelez, the maker of Cadbury chocolate.

"We only have a small field, but eventually, we will have a farm of bioreactors," Volpin said.

That's similar to the effort under way at California

Cultured, which plans to seek permission from the U.S. Food and Drug Administration to call its product chocolate, because, according to Perlstein, that's what it is. It might wind up being called brewery chocolate, or

local chocolate, but chocolate no less, he said, because it's genetically identical though not harvested from a tree.

"We basically see that we're growing cocoa — just in a different way," Perlstein said.

NOTICE

NOTICE is hereby given that BIDE LOUIDOR of Cowpen Road, 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 2nd day of September, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

Wall Street climbs as S&P 500 closes out fourth straight winning month

By ALEX VEIGA AP Business Writer

STOCKS on Wall Street

finished broadly higher Friday as the market closed out its fourth straight winning month with solid gains.

A late-afternoon rally helped stocks bounce back from a midafternoon slide.

The S&P 500 rose 1%, with about 76% of the stocks in the index notching gains.

The benchmark S&P 500 closed August with a 2.3% gain for the month. It's now up 18.4% so far this year and is within 0.4% of the all-time high it set in July.

The Dow Jones Industrial Average rose 0.6%, setting its fourth all-time high this week.

The Nasdaq composite ended 1.1% higher.

Wall Street spent the day mulling over encouraging reports on inflation, consumer spending and income.

The Commerce Department said its personal

consumption and expenditures report showed prices rose just 0.2% from June to July, up slightly from the previous month's 0.1% increase. Compared with a year earlier, inflation was unchanged at 2.5%.

Economists had expected the PCE, which is the Federal Reserve's preferred measure of inflation, would to show that inflation edged up to 2.6% in July. It was as high as 7.1% in the middle of 2022.

The report confirms price increases are cooling, keeping the central bank on track to cut rates for the first time in more than four years at its upcoming meeting next month. The market is betting that the Fed will cut its benchmark rate by a full 1% by the end of the year.

"Weakening inflation gives the Fed plenty of room to begin cutting rates, while still resilient household spending is the recipe for a soft landing," said

David Alcaly, lead macroeconomic strategist at Lazard Asset Management.

Bond yields were mixed in the Treasury market. The yield on the 10-year Treasury rose to 3.92% from 3.86% late Thursday.

Technology stocks led the market. Marvell Technology climbed 9.2% after its latest quarterly results hit Wall Street's sales and profit targets. Other chipmakers also rose. Broadcom added 3.8% and Nvidia gained 1.5%.

Dell also beat analysts' second-quarter forecasts, boosted by record server and networking revenue as companies continue to beef up their artificial intelligence infrastructure. Its shares rose 4.3%.

Mall-based cosmetics retailer Ulta Beauty fell 4% after its sales and profit fell short of expectations. Ulta also trimmed its guidance below analysts' forecasts.

Warren Buffet's Berkshire Hathaway revealed it holds

a stake in the company earlier this month, All told, the S&P 500 rose 56.44 points to 5,648.40. The Dow rose 228.03 points to close at 41,563.08. The Nasdaq gained 197.19 points to 17,713.62.

Mostly solid U.S. earnings and economic growth updates capped off a month of encouraging reports for the broader economy.

Data from various reports in August have shown that retail sales, employment and consumer confidence remain strong.

Friday's Commerce Department report also showed that Americans stepped up their spending by a vigorous 0.5% from June to July, up from 0.3% the previous month, and incomes rose 0.3%, faster in July than in the previous month.

The trends have encouraged Wall Street. Still, stocks have historically done poorly in September.

Since 1950, the S&P 500 has finished higher in September only 43% of the time, making it the worst month for stocks, said Adam Turnquist, chief technical strategist for LPL Financial.

"During the month, the index tends to trade sideways during the first half, with losses beginning to accumulate into month end," Turnquist said.

Investors will be looking for clues on the Fed's next move next Friday, when the government serves up its latest monthly jobs report. Economists polled by FactSet are expecting the economy added 155,000 jobs in August. That would follow a gain of 114,000 the previous month.

"The payroll data next week is incredibly important," said Liz Young Thomas, head of investment strategy at SoFi. Markets in Europe rose initially following a report showing inflation fell sharply in the European Union this month. The report sets up the European Central Bank to cut interest rates next month. Major stock indexes in the region turned red by late afternoon. France's CAC 40 slipped 0.1%, Germany's DAX and Britain's FTSE 100 were essentially flat. Markets in Asia rose. Japan's benchmark Nikkei 225 added 0.7% to finish at 38,647.75 after data on the world's fourth largest economy came in mostly positive. U.S. stock exchanges will be closed Monday for the Labor Day holiday.

PEOPLE approach the New York Stock Exchange on Aug. 27, 2024, in New York.

Photo:Peter Morgan/AP

On the first day without X, many Brazilians say they feel disconnected from the world

By GABRIELA SÁ PESSOA, BARBARA ORTUTAY and DAVID BILLER Associated Press

THE blocking of social media platform X in Brazil divided users and politicians over the legitimacy of the ban, and many Brazilians on Sunday had difficulty and doubts over navigating other social media in its absence.

The shutdown of Elon Musk's platform started early Saturday, making it largely inaccessible on both the web and through mobile apps after the billionaire refused to name a legal representative to the country, missing a deadline imposed by Supreme Court Justice Alexandre de Moraes. The blockade marks an escalation in a monthslong feud between Musk and de Moraes over free speech, far-right accounts and misinformation.

Brazil has been one of the biggest markets for X, with tens of millions of users. "I've got the feeling that I have no idea what's happening in the world right now. Bizarre," entertainment writer and heavy X user Chico Barney wrote on Threads, a text-based app developed by Instagram that Barney was using as an alternative. "This Threads algorithm is like an all-youcan-eat restaurant where the waiter keeps serving things I would never order." Bluesky, a social media platform that was launched last year as an alternative to X and other more established sites, has seen a large influx of Brazilians in the past couple of days. The company said Friday it has seen about 200,000 new users from Brazil sign up during that time, and the number "continues to grow by the minute." Brazilian users are also setting records for activities such as follows and likes, Bluesky said.

Previous users of other platforms welcomed Brazilians to their ranks. "Hello literally everyone in Brazil," a user wrote on Threads. "We're a lot nicer than Twitter here," said another.

Platform migration isn't uncommon for Brazilians, who were huge adopters of Orkut, and when Orkut went kaput, they very gladly moved to other platforms.

X is not as popular in Brazil as Facebook, Instagram, YouTube or TikTok. However, it remains an important platform on which Brazilians engage in political debates and is highly influential among politicians, journalists and other opinion makers.

It's also where they share their sense of humor. Many of the country's most famous memes originate from posts on X before spreading to other social networks. Last week, for instance, Brazilians collaboratively crafted an absurd storyline for a fictional

telenovela, complete with a theme song created using artificial intelligence tools.

Pop stars and their fanbases were also hit by Brazilians being left off the platform.

"Wait a lot of my fan pages are Brazilian!!! Come back hold up!!," Cardi B said Friday on X. A fan page dedicated to Timothée Chalamet, known by the handle TimotheeUpdates, said it would temporarily cease updating as all of its administrators are Brazilian.

De Moraes said X will stay suspended until it complies with his orders, and he also set a daily fine

of 50,000 reais ($8,900) for people or companies using virtual private networks, or VPNs, to access it. Some legal experts questioned the grounds for that decision and how it would be enforced. Others suggested the move was authoritarian.

The Brazilian Bar Association said Friday in a statement that it would request the Supreme Court review the fines imposed on all citizens using VPNs or other means to access X without due process. The bar argued that sanctions should never be imposed summarily before ensuring an adversarial process and the right to full defense.

"I've used VPNs a lot in authoritarian countries like China to continue accessing news sites and social networks," Maurício Santoro, a political science professor at the State University of Rio de Janeiro, said on the platform before its shutdown. "It never occurred to me that this type of tool would be banned in Brazil. It's dystopian."

A search Friday on X showed hundreds of Brazilian users inquiring about VPNs that could potentially enable them to continue using the platform by making it appear they are logging on from outside the country.

"Tirants want to turn Brazil into another commie dictatorship but we won't back down. I repeat: do not vote on those who don't respect free speech. Orwell was right," right-wing congressman Nikolas Ferreira, one of former President Jair Bolsonaro's closest allies, published before X went off. Musk replied with an emoji suggesting agreement: "100". Ferreira is a 28-year-old YouTuber who received the most votes of the 513 elected federal lawmakers in the 2022 election.

BRAZILIAN Supreme Court Chief Justice Alexandre de Moraes arrives for a court hearing, in Brasilia, Brazil, June 22, 2023. Photo:Eraldo Peres/AP

Strikes start at top hotel chains as housekeepers seek higher wages and daily room cleaning work

By ALEXANDRA OLSON AP Business Writer

WITH up to 17 rooms to clean each shift, Fatima Amahmoud's job at the Moxy hotel in downtown Boston sometimes feels impossible.

There was the time she found three days worth of blond dog fur clinging to the curtains, the bedspread and the carpet. She knew she wouldn't finish in the 30 minutes she is supposed to spend on each room. The dog owner had declined daily room cleaning, an option that many hotels have encouraged as environmentally friendly but is a way for them to cut labor costs and cope with worker shortages since the COVID-19 pandemic.

Unionized housekeepers, however, have waged a fierce fight to restore automatic daily room cleaning at major hotel chains, saying they have been saddled with unmanageable workloads, or in many cases, fewer hours and a decline in income.

The dispute has become emblematic of the frustration over working conditions among hotel workers, who were put out of their jobs for months during pandemic shutdowns and returned to an industry grappling with chronic staffing shortages and evolving travel trends.

Some 10,000 hotel workers represented by the UNITE HERE union walked off the job Sunday at 25 hotels in eight cities, including Honolulu, Boston, San Francisco, San Jose, San Diego and Seattle. Hotel workers in other cities could strike in the coming days, as contract talks stall over demands for higher wages and a reversal of service and staffing cuts. At total of 15,000 workers have voted to authorize strikes.

"We said many times to the manager that it is too much for us," said Amahmoud, whose hotel was among those where workers have authorized a strike but have not yet walked out.

Michael D'Angelo, Hyatt's head of labor relations for the Americas, said the company's hotels have contingency plans to minimize the impact of the strikes. "We are disappointed that UNITE HERE has chosen to strike while Hyatt remains willing to negotiate," he said.

In a statement before the strikes began, Hilton said it was "committed to negotiating in good faith to reach fair and reasonable agreements." Marriott and Omni did not return requests for comments.

The labor unrest serves as a reminder of the pandemic's lingering toll on low-wage women, especially Black and Hispanic women who are overrepresented in front-facing service jobs. Although women have largely returned to the workforce since bearing the

brunt of pandemic-era furloughs — or dropping out to take on caregiving responsibilities — that recovery has masked a gap in employment rates between women with college degrees and those without.

The U.S. hotel industry employs about 1.9 million people, some 196,000 fewer workers than in February 2019, according to Bureau of Labor Statistics. Nearly 90% of building housekeepers are women, according to federal statistics.

It's a workforce that relies overwhelmingly on women of color, many of them immigrants, and which skews older, according to UNITE HERE.

Union President Gwen Mills characterizes the contract negotiations as part of long-standing battle to secure family-sustaining compensation for service workers on par with more traditionally male-dominated industries.

"Hospitality work overall is undervalued, and it's not a coincidence that it's disproportionately women and people of color doing the work," Mills said.

we will work this out," Mata said.

Guests at the Hilton Hawaiian Village often tell Nely Reinante they don't need their rooms cleaned because they don't want her to work too hard. She said she seizes every opportunity to explain that refusing her services creates more work for housekeepers.

Since the pandemic, UNITE HERE has won back automatic daily room cleans at some hotels in Honolulu and other cities, either through contract negotiations, grievance filings or local government ordinances.

But the issue is back on the table at many hotels where contracts are expiring. Mills said UNITE HERE is striving for language to make it difficult for hotels to quietly encourage guests to opt out of daily housekeeping.

The U.S. hotel industry has rebounded from the pandemic despite average occupancy rates that remain shy of 2019 levels, largely due to higher room rates and record guest spending per room. Average revenue

“Hospitality work overall is undervalued, and it’s not a coincidence that it’s disproportionately women and people of color doing the work.”

Gwen Mills

The union hopes to build on its recent success in southern California, where after repeated strikes it won significant wage hikes, increased employer contributions to pensions, and fair workload guarantees in a new contract with 34 hotels. Under the contract, housekeepers at most hotels will earn $35 an hour by July 2027.

The American Hotel And Lodging Association says 80% of its member hotels report staffing shortages, and 50% cite housekeeping as their most critical hiring need.

Kevin Carey, the association's interim president and CEO, says hotels are doing all they can to attract workers. According to the association's surveys, 86% of hoteliers have increased wages over the past six months.

"Now is a fantastic time to be a hotel employee," Carey said in an emailed statement to The Associated Press.

Hotel workers say the reality on the ground is more complicated.

Maria Mata, 61, a housekeeper at the W Hotel in San Francisco, said she earns $2,190 every two weeks if she gets to work full time. But some weeks, she only gets called in one or two days, causing her to max out her credit card to pay for household expenses

"It's hard to look for a new job at my age. I just have to keep the faith that

per available room, a key metric, is expected to reach a record high of $101.84 in 2024, according the hotel association.

David Sherwyn, the director of the Cornell University Center for Innovative Hospitality Labor & Employment Relations, said UNITE HERE is a strong union but faces a tough fight over daily room cleaning because hotels consider reducing services part of a long-term budget and staffing strategy.

"The hotels are saying the guests don't want it, I can't find the people and it's a huge expense," Sherwyn said. "That's the battle."

Workers bristle at what they see as moves to squeeze more out of them as they cope with erratic schedules and low pay.

While unionized housekeepers tend to make higher wages, pay varies widely between cities.

Chandra Anderson, 53, makes $16.20 an hour as a housekeeper at the Hyatt Regency Baltimore Inner Harbor, where workers have not yet voted to strike. She is hoping for a contract that will raise her hourly pay to $20 but says the company came back with a counteroffer that "felt like a slap in the face."

Anderson, who has been her household's sole breadwinner since her husband went on dialysis, said they had to move to a smaller house a year ago in part because she wasn't able to get enough hours at her job.

UNION members from Local 26, representing workers in the hospitality industries of Massachusetts, picket outside the Hyatt Regency Boston, Wednesday, July 17, 2024, in Boston.

Photo:Charles Krupa/AP