09042023 BUSINESS

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FTX chief orders Bahamas: Hand over SBF interviews

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

FTX’s US chief is accusing his Bahamian counterparts of seeking to “shield from scrutiny” details of their interviews with Sam Bankman-Fried and other key insiders that he now wants handed over.

John Ray, who heads 134 FTX entities currently in Chapter 11 bankruptcy protection, is urging the Delaware Bankruptcy Court to “compel” FTX Digital Markets and its Bahamian provisional liquidators to disclose their “discussions” with the crypto exchange’s embattled founder and other key staff on the basis that the contents could be critical to settling their long-standing jurisdictional battle.

Opening a new front in his ongoing fight with Brian Simms KC, the Lennox Paton senior partner and attorney, and PricewaterhouseCoopers (PwC) accountants Kevin Cambridge and Peter Greaves, the FTX US chief has seized on a deposition given by the latter to argue that the only evidence the crypto exchange’s international platform

and customers were transferred to the Bahamian subsidiary comes from Bankman-Fried and other former staff.

As a result, he is demanding that “Bahamian privilege” - the confidentiality afforded to communications between clients and their attorneys, and in investigating potential disputes - be swept aside and the necessary information by provided by the joint provisional liquidators and their attorneys to his team.

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Professional ‘step child’ hits $1bn permits mark

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Besides dealings with Mr Bankman-Fried and key former FTX staff, Mr Ray’s original document requests - filed with the Delaware Bankruptcy Court last Friday - reveal he is also seeking “all communications” between the Bahamian trio and their advisers and a current Cabinet minister, former Cabinet minister, government ministries, and local non-profits and businesses concerning Mr Bankman-Fried and the crypto exchange’s collapse.

Those targeted by Mr Ray are named as Clay Sweeting; Allyson Maynard-Gibson KC and her daughter, Zoe Gibson-Bowleg, who legal papers show also worked for

SEE PAGE B4

$3m Governor’s Harbour project in 45 full-time jobs

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A DEVELOPER is aiming to invest $3m in constructing a 49-unit subdivision and full-service marina at Governor’s Harbour that will create 45 full-time jobs once buildout is completed.

SLV Holdings, which operates under the brand name Barefoot Luxury Bahamas, is seeking to develop a 30.63-acre site located immediately to the east of the existing French Leave resort into what will be named Sunset Estates & Marina.

The developer’s website includes few details,

indicating this is likely its first project, but the Environmental Impact Assessment (EIA) produced by Bahamian consultancy, Bron, disclosed that around 40 construction posts will be created during the development phase.

The EIA, which was submitted to the Department of Environmental Planning and Protection (DEPP) on July 7, states: “Sunset Estates and Marina at Governor’s Harbour intends to maintain a full-service marina located in Governor’s Harbour on Eleuthera with an overall capital investment estimated to be $3m.

SEE PAGE B10

Corporate income tax: Not ‘holding the bag’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Bahamas Motor Dealers Association’s (BMDA) president says a corporate income tax levied on net profits would be “fantastic” for the industry if it eliminates a Business Licence regime that can tax companies into a loss.

Ben Albury, also Bahamas Bus & Truck’s general manager, told Tribune Business the proposed reforms - if implemented as outlined in the Government’s ‘green paper’ - could ensure that price-controlled, high turnover/low margin sectors

such as the auto industry are no longer left “holding the bag” by a taxation regime that is presently levied on gross revenue or turnover.

“I think it depends on which one of the

THE BAHAMIAN Contractors Association’s (BCA) president says the construction industry is still being treated like a “step child” despite data showing it is already a $1bn per year industry.

Leonard Sands told Tribune Business the industry’s economic contribution would be even greater if the Government fully enacts the Construction Contractors Act’s self-regulatory and licensing regime as it would give more developers and investors confidence to do business in The Bahamas.

Speaking after the Bahamas National Statistical Institute revealed that construction permits issued in 2022 were valued at a combined $1.044bn, representing a $337.588m or

48 percent year-over-year increase, he added that the BCA was fielding “at least two calls per week” from US and European investors who are ultimately deterred from coming to The Bahamas by the absence of construction industry regulation.

Mr Sands told this newspaper that, as a result, the sector and wider economy are missing out on a

BEN ALBURY

LEONARD SANDS

JOHN RAY BRIAN SIMMS KC

NAVIGATING THE CHALLENGES TO DRIVE INCREASED DEMAND

The Bahamas, often celebrated for its breathtaking natural landscapes and vibrant cultural heritage, stands poised with immense potential for economic growth.

Throughout this two-part series, we will thoroughly explore the pressing need to invigorate and foster the growth of the local economy. It is crucial to grasp the essence and significance of what constitutes an economy, as it serves as the backbone upon which the prosperity and well-being of a nation and its people are built.

What is an Economy?

An economy refers to the system of production, distribution and consumption of goods and services within a region or country. This system involves the collaborative efforts of both the private and public sectors.

It encompasses everything that people do to earn a living, from farming and manufacturing to providing services such as healthcare and tourism.

The private sector, comprising businesses and entrepreneurs, plays a pivotal role in driving economic growth and wealth

creation. Through innovation and investment, private enterprises contribute to the expansion of industries, job creation and the generation of income for individuals and their families. By identifying market demands and offering goods and services, they stimulate consumer spending, further fuelling economic activity.

On the other hand, the public sector, represented by government institutions and agencies, is responsible for creating a conducive environment for economic growth. Governments formulate policies

and regulations to ensure fair competition, safeguard consumer rights and protect the environment. They also invest in public infrastructure such as transportation networks, education and healthcare facilities, providing a foundation for private businesses to thrive.

The challenge of Bahamian economic growth

The Bahamas, like many regions, faces the challenge of reconciling the notion that over-saturating the market does not necessarily equate to local economic growth. In recent years, the country has witnessed a surge in businesses, particularly within key sectors such as tourism and retail, driven by the perception that increased competition inherently fosters economic expansion. However, this perspective overlooks the complexities of market dynamics and fails to consider potential negative repercussions. The overabundance of similar businesses, often accompanied by price wars, compromised service quality and unsustainable ventures, poses a significant

issue that hinders genuine economic progress. Let us consider a hypothetical example involving restaurants in The Bahamas that specialise in selling similar items, such chicken wings and fries, to illustrate the concept that over-saturating the market does not guarantee economic growth. There are a couple of restaurants that have established a reputation for their delicious chicken wings and fries. These restaurants have been operating successfully for years, serving both locals and tourists with highquality meals. The demand for this meal has been met adequately by these establishments, resulting in consistent patronage and steady revenues. Seeing the success of these restaurants, several entrepreneurs decide to open their own establishments, all focusing on selling chicken wings and fries. The prevailing belief is that the more options available, the greater the appeal to customers and the stronger the economic growth. However, this assumption fails to consider the dynamics of market saturation.

As more restaurants offering the same menu spring up, several issues arise:

1. Increased Competition: With more restaurants offering identical items, competition becomes intense. Each business competes for the same customer base, leading to lower profit margins for all participants.

2. Price Erosion: Intense competition often leads to price wars, where restaurants begin to lower their prices to attract customers. While this may be beneficial for customers in the short-term, it can strain the profit margins of all restaurants, potentially leading to financial instability.

3. Quality Compromises: In a bid to cut costs and offer lower prices, some restaurants might compromise on the quality of ingredients or cooking methods. This results in a decline in the overall dining experience, ultimately deterring customers and harming the reputation of the cuisine itself.

4. Market Oversaturation: The influx of new restaurants offering the same menu could lead to an over-saturation of the market. This

over-saturation might result in some restaurants struggling to attract sufficient customers to sustain their operations, leading to closures and job losses.

5. Lack of Innovation: The intense focus on a single type of cuisine can stifle culinary innovation in the local dining scene. Restaurants may be less likely to experiment with new dishes or unique dining experiences, limiting the overall appeal to both locals and tourists.

Increased demand

Increased demand serves as a pivotal catalyst in nurturing the local economy and addressing the conundrum of market saturation. As demand swells for products or services, businesses gain access to a broader customer base, countering the adverse impacts of over-saturation. This surge in demand stimulates a culture of innovation, compelling businesses to refine and distinguish their offerings, fostering uniqueness amid competition. Concurrently, demand escalation generates a surge in job opportunities and

Combine AI with human expertise on compliance

Regulatory compliance is undoubtedly a key component of trust between institutions and consumers in the financial services industry. Thus an important question facing corporate governance professionals in the era of fintech (financial technology) innovation is whether to invest in Artificial Intelligence (AI) for compliance or rely on the traditional

expertise of risk and compliance professionals.

Nathan Christensen, chief executive of Mineral, and a Forbes Council member, wrote: “The technology will evolve rapidly, and by identifying the unique strengths of both humans and AI - and designing systems that bring them together - organisations can bring more value at faster speeds and lower costs to the businesses they serve.”

Against this backdrop, this article will briefly discuss the benefits and drawbacks of both AI and human expertise in the context of governance, risk and compliance, then propose a hybrid approach.

The case for AI The power of artificial intelligence lies in its scalability, efficiency and unerring accuracy, attributes often lacking in manual processes. For

example, an artificial intelligence system can sift through millions of transactions in real time to identify suspicious activity. This task is virtually impossible for a human being to accomplish within a similar timeframe. In addition, AI platforms are built to acquire new knowledge from new sets of data. Therefore, they are reported to adapt to new compliance risks much faster than humans, whose

learning curve is naturally steeper and slower.

It is important to note that AI’s data analytics capabilities become even more valuable when we consider the complexity of international regulations, such as the European Union’s General Data Protection Regulation (GDPR), and local laws, such as the Financial Transactions Reporting Act (FTRA) and Commercial Entities (Substance Requirements)

Bill 2023, which require granular scrutiny and interpretation. Automated compliance systems can also drastically reduce noncompliance costs, such as fines, legal fees and reputational damage.

The human element

It should be noted, however, that the role of a compliance expert is far from obsolete. Even though AI can provide quantitative analysis, it lacks the qualitative judgment from years of experience and a nuanced understanding of regulatory frameworks. The contextual perspective provided by human experts is not available to machines. Taking a particular action may not align with the business rationale or reputational implications, even if AI can flag an abnormal transaction. Moreover, AI technologies cannot address the ethical dimension of compliance, which is often grey and open to interpretation. During this time, a seasoned compliance officer is invaluable for their wisdom, ethical background and discretion.

A hybrid approach

Considering these factors, the most effective approach for corporate governance in financial services is not to choose between AI and human experts but to integrate them into a collaborative framework. It is possible to create a robust compliance strategy with a hybrid model that employs artificial intelligence to handle data-intensive tasks, and human experts to handle qualitative judgments and ethical considerations.

The initial stages of transaction monitoring, risk

assessment and data analysis can be handled by AI, while compliance officers can handle the final evaluation and decision-making. This ensures that AI’s speed and accuracy complement human experts’ ethical and contextual intelligence.

Conclusion In short, maintaining rigorous compliance standards requires adopting forwardlooking strategies as the financial landscape continues to evolve. Combining AI capabilities with human expertise can create a robust, flexible, cost-effective compliance framework. Using this hybrid model, artificial intelligence and human expertise are not competitors but partners, enhancing the other’s capabilities to develop a new gold standard in corporate governance.

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‘NOTHING TO EASE PRESSURE’ OVER HIGH INSURANCE COSTS

BAHAMIAN insurers are warning there is “nothing that will ease the pressure” on soaring catastrophe coverage costs as they nervously await the total damages and insured losses from Hurricane Idalia’s strike on Florida.

Timothy Ingraham, Summit Insurance Company’s managing director, told Tribune Business that reinsurance costs and availability are “about as tight as I’ve seen it” in almost 30 years since Hurricane Andrew’s aftermath in the mid-1990s.

Pointing out that these pressures stem not just from hurricane claims payouts, but all manner of disasters such as wildfires, earthquakes and floods, he explained that total reinsurance industry catastrophe-related losses during

the 2023 first half are “on pace” to match the average $120bn that the sector has incurred on an annual basis for the past five to six years. As a result, Mr Ingraham told this newspaper that premium prices paid by Bahamian homeowners and businesses to insure their properties against all perils are unlikely to ease when renewals are issued for 2024. And, given that it is still peak Atlantic hurricane season, there may be renewed pressure for further increases should storms hit this nation or elsewhere in the region before year-end.

Risk analysts at UBS, the Swiss bank, last week estimated that average insured losses from Idalia’s strike on Florida’s west coast could reach up to $9.36bn, with a 50 percent chance losses could hit $4.05bn.

However, catastrophe risk modeller, Karen Clark & Company (KCC), has

pegged privately insured losses from Hurricane Idalia at close to $2.2bn, and it will still take several weeks to develop final figures for this and total damages.

As a result, Bahamian property and casualty underwriters must wait to determine what the precise fall-out will be for this market given that global reinsurers tend to lump it with Florida when they do their risk modelling and treaty pricing. “It’s still too early to tell,” Mr Ingraham confirmed. “The initial estimate I’ve seen are coming in around $10bn for that loss [Idalia].

“By comparison, Ian was $50bn-$60bn. It’s obviously not as big a loss as Ian, so we don’t expect to see the same impact as Ian.” However, Mr Ingraham explained that reinsurers are assessing a much bigger catastrophe loss situation than just hurricanes.

“For the first half of this year, reinsurance catastrophe losses are on pace to equal the catastrophe losses they’ve had for the last five to six years,” the Summit chief explained. “For the last five to six years, they’ve been paying out on average $120bn in catastrophe losses.

“The pace for the five to six years prior to that was $80bn in catastrophe losses. This year, at the mid-point, it looked on pace to sustain the industry paying out what it’s been seeing for the last five to six years.” That represents a 50 percent average annual increase compared to the previous five years and, based on the 2023 first half, Mr Ingraham said there is nothing that would soften Bahamian property and casualty rates in the near term.

“At the very least we don’t expect there to be any change compared to what we are seeing now,

and compared to the last renewal, but it depends on what happens over the rest of this year,” he told Tribune Business. “This region, thus far, has not seen a lot, but it all comes from the same reinsurance catastrophe loss pot. From what we’ve seen in the first half, there’s nothing to ease the pressure, so to speak.

“We still find this a difficult reinsurance market. It’s very likely there will be no reduction in costs depending on what happens for the rest of the year. Reinsurers will sell capacity at the same price or increase it. There’s no short-term easy fox to it. If we saw more capacity come into the market, that would help to relieve the pressure a bit. The only real fix is lower long-term catastrophe claims payouts. That’s not just for us, but other places.”

Given the effects of climate change, with more frequent and severe

‘Road map’ for 5G plan amid Starlink pushback

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

REGULATORS have pledged “to develop a road map” for deploying 5G (fifth generation) technology in The Bahamas amid continuing concerns from the two incumbent operators about the arrival of Elon Musk’s Starlink.

Both Cable Bahamas/ Aliv and the Bahamas Telecommunications Company (BTC), in their first-round responses to the Utilities Regulation and Competition Authority’s (URCA) 5G consultation, both cited the disruptive potential of the Tesla and Twitter (X) magnate’s satellite Internet service provider when it came to their future investment plans.

BTC, in particular, asserted that Starlink’s licensing by URCA will both undermine the communications industry’s growth and affect its 5G planning and roll-out plans. Its BISX-listed rival, meanwhile, raised queries about the nature of Starlink’s licence and how it was issued.

“URCA’s licensing of Starlink may impede local electronic communications sector development growth and goals, and will have implications for 5G planning and deployment in The Bahamas,” URCA surmised of BTC’s submission. As for Cable Bahamas and Aliv, they noted that “URCA has issued a class licence to Starlink, and has not published any information about the nature of its licence or the process for issuing it”.

URCA did not respond to ether operator’s specific Starlink concerns on the basis that a 5G consultation was not the correct forum for addressing them. However, many observers will likely view their submissions as further confirmation that both are worried by the competitive threat posed by the upstart entrant.

URCA granted a class operating licence and class spectrum licence to Starlink Services Bahamas, which was represented by the Lennox Paton law firm, on February 15, 2023. Starlink is an affiliate of Elon Musk’s SpaceX, which is not only seeking to offer satellite Internet services but also mobile services.

Starlink and SpaceX are backed by the considerable financial resources of Mr Musk, the Tesla/X magnate

and entrepreneur, who has been ranked by both Forbes and Bloomberg’s Billionaires Index as the world’s second richest man with an estimated net worth between $167bn and $176.2bn. Starlink’s Internet and, potentially, mobile satellite services are already drawing interest in the Family Islands where Cable Bahamas and BTC’s networks do not extend or are seen as unreliable.

Meanwhile URCA, in its results statement on the first-round 5G consultations, reiterated that “affordable access to high-quality networks and carriage services in all regions of The Bahamas” remains one of its key objectives and goals under the communications sector policy.

“URCA is cognisant that advancements in

technology are a catalyst for innovation and future development of The Bahamas. As such, it is crucial that cutting-edge technology such as 5G be available for consumption in The Bahamas where necessary,” it added.

However, Cable Bahamas and Aliv, in there feedback warned that the financial and “business case” for the nationwide roll-out of 5G mobile technology is “difficult” - especially where the more sparsely-populated and unprofitable Family Islands are concerned. As a result, 5G deployment is likely to take at least three to five years.

“The financial business case for the rollout of 5G throughout the entire Bahamas is difficult,” Cable Bahamas and Aliv said. “It is more likely that 5G will develop initially for specific

hurricanes, achieving such an outcome could be extremely difficult. Mr Ingraham told this newspaper that the last time current reinsurance market conditions were endured, with reduced coverage capacity and soaring costs, was in Hurricane Andrew’s aftermath in the mid1990s. Property insurance premiums, calculated as a percentage of the home’s replacement value, rose five-fold after the Category Five storm.

“This is about as tight as I’ve seen it,” he conceded. “The last time we saw it was in Andrew’s aftermath. Prior to Hurricane Andrew we had an average rate in this market of 0.3 percent. Three years afterwards, it had gone to 1.5 percent, the average rate to insure a building for catastrophe. We haven’t seen anything like that increase since, and

customers or hot spot locations, and thereafter be rolled out incrementally to meet customer demands.

“The timescale for the rollout of 5G across The Bahamas is most likely to be three to five years. However, the need for specific locations may come much sooner. The regulatory environment for 5G needs to be established early on to permit the selective rollout of 5G to meet demand. URCA’s proposed next steps do not reflect this requirement and can be characterised as ‘wait and see’.”

URCA, in its response, said technologies other than 5G “may be more technically and economically feasible to serve more remote areas in The

FTX CHIEF ORDERS BAHAMAS: HAND OVER SBF INTERVIEWS

FTX; Jean Chalopin, Deltec Bank & Trust’s chairman; and “the University of the Bahamas, Quality Home Centre, Bahamas Humane Society, the Agricultural Development Organisation, the Ministry of Education, BAARK or the Ministry of Youth, Sports and Culture”.

It is unclear why any dealings between the Bahamian provisional liquidators and these individuals and entities have attracted Mr Ray’s interest, although several of the non-profits named are thought to have received donations from FTX. There is no suggestion that those named have done anything wrong in relation to FTX and its late 2022 implosion.

Mr Simms and the PwC accountants, though, objected to Mr Ray’s demands and refused to provide the information sought because the request is “vague, ambiguous, overly broad and unduly burdensome.

“The FTX Digital Markets defendants further object on the grounds that this request seeks documents that are entirely irrelevant to this adversary proceeding and therefore not proportional to the needs of the case. The FTX Digital Markets defendants further object to this request to the extent it seeks privileged information,” they added.

This, though, has not halted Mr Ray’s pursuit of the matter. Sascha Rand, a US attorney representing the US chief, wrote to counsel for the Bahamian provisional liquidators on August 10, 2023, asking:

“We understand that you

intend to assert privilege over any pre-liquidation communications with counsel to FTX Digital Markets. “Please confirm, however, that you will not withhold communications with Allyson Maynard-Gibson, who was retained by chapter 11 Debtor FTX Trading, not FTX Digital Markets, whether such communications occurred before, on, or after November 10, 2022.” That is the date when FTX Digital Markets was placed into liquidation before the Supreme Court of The Bahamas.

Jason Zakia, an attorney with White & Case, the law firm acting for Mr Simms and the PwC duo, replied on August 22, 2023, stating: “We will review any documents collected in response to this request for privilege, including any documents or communications by or between anyone who acted as FTX Digital’s counsel, such as Allyson Maynard-Gibson.”

However, Mr Ray’s counsel, via an e-mail sent on August 24, 2023, asked White & Case to confirm their understanding that the Bahamian provisional liquidators will not release “communications with Allyson Maynard Gibson or anyone else at the Clement Maynard firm, who was retained by FTX Trading on June 25, 2021” on the basis that these are covered by legal privilege.

The same e-mail also sought confirmation that the Bahamian trio “intend to withhold.... as privileged” all details of their interviews, discussions and meetings with BankmanFried during the month

between FTX’s November 10, 2022, implosion and his arrest on December 12 last year.

Mr Ray’s interest appears to have been sparked by Mr Greaves’ June 6, 2023, deposition in which he confirmed he had interviewed the FTX founder in-person along with his provisional liquidation colleagues. Asked when he interviewed Bankman-Fried, Mr Greaves replied: “Over a period roughly from, again, I suspect it wasn’t November 14, but the 15th or 16th of November, through to the day that he was arrested.”

However, the Bahamian liquidators’ attorneys shut the line of questioning down, and told the PwC accountant not to answer when asked what was discussed with the FTX founder, on the basis that witness interviews as part of the trio’s investigation “would be privileged as a matter of Bahamian law”.

Earlier, asked how the Bahamian provisional liquidators had determined FTX’s international

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platform and customers had been moved to FTX Digital Markets, which is now in their care, Mr Greaves said this information came chiefly from former FTX chief operating officer, Constance Wong, and compliance head, Jessica Ferguson Murray.

“We were in a position where a lot of people had fled the scene, but there were a number of individuals who were still around who were employees of FTX Digital Markets that we could speak to,” Mr Greaves said.

“There were little or no paper files. That’s not the way this group seemed to operate. The majority of electronic data, so I don’t know, Word documents, if they used such things, spreadsheets, e-mails, messaging were all kept on the cloud and we were denied access to that. That was switched off from us [by Mr Ray and his team].”

The FTX US chief is now demanding that the Delaware court order that legal privilege be breached, and the contents of these

interviews disclosed, as he is arguing they form the only evidence the Bahamian provisional liquidators have that the crypto exchange’s international platform and clients, together with their assets, belong in the FTX Digital Markets estate rather than the Chapter 11 proceedings.

“The joint provisional liquidators have asserted that the debtors’ assets, property and customers ‘migrated’ to FTX Digital Markets in the months before the petition date. The joint provisional liquidators’ purported core evidence to support that assertion is their month’slong discussions with Sam Bankman-Fried, his co-conspirators and others,” Mr Ray alleged.

“The information and materials the joint provisional liquidators obtained from these dozens of meetings, which purport to anchor their claims concerning FTX Digital Markets’ ownership of the FTX international exchange’s assets, are highly relevant both to this adversary proceeding and to the joint provisional liquidators’ expansive, multi-billion-dollar proofs of claim [over $9bn].”

“Through a blanket assertion of ‘Bahamian privilege’, the joint provisional liquidators now seek to shield these discussions and related information from disclosure and scrutiny. These materials, which purportedly include records of extensive discussions with the debtors’ own founders, executives, agents and employees concerning the formation, purpose and operations of FTX Digital

Markets and the location of various FTX assets, go to the heart of the issues in this proceeding,” he added.

“The joint provisional liquidators’ effort to shield the substance of their discussions with former insiders is particularly inappropriate given that the core executives of the debtors are either facing criminal charges or criminal exposure, and the materials the debtors seek from the joint provisional liquidators reflect the only currently available sources of those insiders’ views on key issues and facts.”

Mr Ray also produced David Alexander KC, a UK attorney, to rebut the ‘privilege’ argument and explain why the Bahamian liquidators “cannot now shield these materials from disclosure”. He then claimed: “The plain fact is that the joint provisional liquidators’ claim that FTX Digital Markets now owns the debtors’ assets grew out of Bankman-Fried and his co-conspirators’ desperate efforts in November and early December 2022 to retain control of his fraudulent empire and ensconce himself in The Bahamas.

“And this is the genesis of the debtors’ instant Motion - understanding exactly what the joint provisional liquidators’ discussions with Bankman-Fried and the other co-conspirators were concerning the formation of FTX Digital Markets, FTX Digital Markets’ role in the FTX scheme, and Bankman-Fried’s efforts to maintain control over the FTX international exchange and its assets.”

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August is behind us and markets worldwide had a more or less quiet month.

In New York, caution about the forthcoming labour market report has somewhat pushed the hopes of an interest rate pause by the US Federal Reserve into the background. The leading index, the Dow Jones Industrial Average, slipped gradually until the end of August and posted a loss of 2.4 percent. The market-wide S&P 500 fell also by around 1.5 percent, and the technology-heavy and therefore particularly interest-sensitive selection index, Nasdaq 100, closed lower by approximately 1.6 percent. But there were also some winners this month. SAP competitor, Salesforce, has increased its forecast for the current quarter, and its share price is rising

sharply. Salesforce specialises in enterprise software for customer management and also offers, among other things, the acquired office communication service, Slack. Salesforce has increased its forecast for the current quarter. The business software specialist expects sales of $8.71bn, when analysts on average had expected $8.66bn. The shares rose by more than 7 percent last week.

In the last quarter, Salesforce increased sales by a good 11 percent year-onyear to $8.6bn. The bottom line is that profits rose from $68m to just under $1.27bn in the quarter that ended in July. At the beginning of the year, the group resorted

to, among other things, job cuts in order to become more profitable.

SAP’s share price development lags far behind that of its US competitor. The company is Salesforce’s largest competitor. SAP’s shares only reacted to the figures from Salesforce with moderate gains at the end of last week.

SAP shares have gained a good third this year so far, making them one of the DAX favourites. With an increase of 62 percent since the turn of the year, Salesforce is the leader in the US index, Dow Jones Industrial. Analysts expect that In order to trigger new impulses on the upside, the SAP price would now have

Building material suppliers watching for Idalia fall-out

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

BAHAMIAN building materials costs and availability could come under pressure from post-Hurricane Idalia reconstruction on Florida’s west coast, local suppliers have warned.

Anthony Roberts, City Lumber Yard’s general manager, told Tribune Business that any fall-out for The Bahamas will take several weeks to determine until the rebuilding effort starts in earnest. He added that, post-COVID, the delivery time for certain product orders has increased but the industry has largely adapted to this.

“It does take a little longer than it used to. The basic supplies like plywood and sheeting takes longer than it used to, but we have been able to adjust to it,” he said, adding of Idalia: “We would anticipate some supplies becoming a little more or lead times being a little longer on shingles once they get into their recovery and rebuilding, but it will be a few weeks until we feel that.

“We are just trying to keep our inventories at a level. We are okay now. We

try to keep a little more on hand for the hurricane.”

Brent Burrows general manager of CBS Bahamas (Commonwealth Building Supplies), said one order suffered a “delay” last week because one of his supplier’s warehouses in Jacksonville had to close due to Idalia’s passage. “We have our other shipping location in Miami, so we have no ill effects right now on shipping, but I don’t know what’s going to happen within the next couple of weeks or a month as far as supply issues are concerned because you know any time someone gets hit hard with a natural disaster demand starts to go up on things like plywood and shingles,” he said. Besides last week’s delay, CBS expects building materials supplies to run smoothly for the remainder of hurricane season. “We’re

fully stocked and we have more things coming in. We just had a huge supply of hurricane shutters come in a couple of weeks ago, so we are ready,” Mr Burrows said. Pricing has “settled down somewhat” on building materials, and CBS is “not seeing huge jumps”. Some have even gone down.

Christopher Lleida, Premier Importers’ chief executive, said that he met with one of his suppliers two weeks and added: “The storm hit the west coast of Florida and we don’t do very much business in that direction.

“I know there is a lot of damage on the west coast of Florida, and I was thinking that it might disrupt shipping and, also with Hurricane Franklin, that it may cause disruptions but we have not seen anything like that.”

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Business Banking Officer - Grand Turk Branch

Salary - $52,725 - $68,242

The Manager, Business Banking is responsible for managing a portfolio of up to 100 business banking customers by meeting their total personal and business banking needs (clients typically defined as having commercial credit needs up to USD$250,000). The portfolio primarily contains business banking customers whose business needs are increasingly complex and referral of customers to this level of manager is triggered by the business needs, not by the complexity of the personal needs.

About You

• Time spent in a sales capacity, preferably previous personal and business banking experience

• 2-3 years’ experience dealing with and servicing small business clients

• Working knowledge of the small business banking industry and the needs of small business clients, current events, business affairs, trends in the marketplace, and the environment in which business is transacted locally.

• Business Banking Accreditation desired or in process of completing.

• Good selling, influencing and negotiating skills.

About Our Offer

You will have a challenging, diverse experience with opportunities for professional growth. Our compensation and reward package is attractively structured and performance bonuses are offered

To apply for this and any other positions, kindly visit https://www.cibcfcib.com/about-us/careers. Applications with detailed resumes should be submitted no later than 15 September, 2023.

CIBC FirstCaribbean thanks all applicants for their interest, however only those under consideration will be contacted.

CBS Bahamas unveils managerial promotions

A BAHAMIAN building materials and home improvement merchant yesterday unveiled several promotions within its management team as part of an ongoing expansion strategy.

Commonwealth Building Supplies (CBS Bahamas), in a statement, said Duran Wallace has been promoted to vice-president of operations while Brent Burrows II has been named as vicepresident of retail and sales.

Mr Wallace, who joined the company in 1994, has

BRENT BURROWS II DURAN WALLACE

held various roles in inventory management, purchasing and shipping, facilities management and operations. He played a key role in relocating CBS Bahamas from its original Robinson Road location to its current flagship 30,000 square foot home centre in the Southwest Plaza on Carmichael Road.

The new operations head was also involved in the launch and development of the CBS PROstore, which provides contractors and

other industry professionals with building materials in bulk quantities.

Mr Burrows II, who joined CBS Bahamas fulltime in 2019 after part-time involvement for the past decade, spearheaded the launch of cbsbahamas. com, the company’s online e-commerce platform and home improvement catalogue.

Founded in March 1973 by the late building contractor, Carl G Treco, CBS Bahamas started with only

six staff members and two major distributorships. Fifty years later, it has evolved into a retailer and contract supplier with a variety of departments and specialised offerings.

CBS Bahamas now represents brands such as Kohler, Valspar Paints, US Cabinet Depot, Milwaukee Tools, Boise Cascade, USG and Choice Flooring. The retailer’s subsidiaries also includes Aluminum Fabricators.

Navigating the challenges to drive increased demand

FROM PAGE B2

expansions, mitigating the risk of job losses caused by market over-saturation.

As businesses expand to meet this rising demand, they contribute to economic vitality by investing in infrastructure, technology and human resources. Higher demand often translates into enhanced profit margins, reducing the likelihood of price wars that frequently accompany over-saturated markets and enabling businesses to channel resources into quality enhancements and sustainable growth endeavours. Moreover, heightened demand beckons external investments, as investors are inclined to support enterprises exhibiting growth potential within markets marked by demand outstripping supply. For The Bahamas, augmenting demand in segments catering to tourists bolsters the visitor experience, potentially amplifying recommendations and return visits. This ripple effect extends beyond individual enterprises, potentially benefiting auxiliary industries

and nurturing a robust communal identity.

However, the key to successfully increasing demand lies not solely in promotional efforts, but in understanding consumer needs, adapting to evolving trends and consistently delivering superior value. Striking a balance between supply and demand, while upholding quality and sustainability, remains critical to fostering Bahamian economic growth while adeptly navigating market saturation challenges.

It’s not that easy Boosting demand to foster economic growth involves navigating several complex challenges. Two crucial aspects to consider are the need to increase disposable income and the implications of population growth.

1. Increasing Disposable Income: One of the key factors in driving demand is the ability of consumers to spend money, known as disposable income. However, achieving this is intricate. Economic inequality, inconsistent job opportunities

and inflation can all impact people’s spending power. Balancing wage growth with the cost of living is critical for empowering consumers to spend more. This requires co-operation between businesses, government entities and labour groups to ensure fair wages and a stable economic environment.

2. Population Growth:

A growing population can lead to increased demand, but it brings its own set of challenges. Managing population growth means we need to invest in infrastructure, housing, healthcare and education. Striking a balance between sustainable development and catering to the needs of both existing and new residents is crucial. This involves considerations such as urban planning, transportation improvements and environmental sustainability.

Solving these challenges demands a holistic approach. Governments must implement policies that promote fair income distribution, job creation and price stability. Businesses need responsible

pricing and fair wage practices. Strategic urban planning and infrastructure investment are necessary to accommodate a larger population while maintaining quality of life, while targeted marketing, product innovation and financial education can maximise the impact of disposable income and population growth on demand.

Collaboration between different stakeholders, from policymakers and businesses to community leaders and citizens, is essential to overcoming these challenges. By increasing disposable income and managing population growth, local economies can set the stage for sustained demand expansion and economic prosperity.

The National Development Plan

The National Development Plan (NDP) can establish a clear and consistent framework that supports business growth and innovation. By helping to streamline regulations, reducing bureaucratic obstacles and ensuring

transparent and fair processes, the NDP can create an environment in which businesses operate efficiently and confidently. The plan also emphasises infrastructure development to create a conducive environment for companies to operate in. Improved transportation networks, reliable energy supply, modern communication systems and efficient logistics are critical for attracting private sector investment.

Conclusion

In conclusion, The Bahamas holds immense promise for economic growth, given its stunning landscapes and rich cultural heritage. There is a need to nurture and invigorate the local economy, and navigating these challenges demands a collective effort and strategic planning. In doing so, our country can not only overcome the pitfalls of market saturation but also cultivate an environment where growth thrives, creating a better future for all.

NOTICE is hereby given that SANDRA LILITH PIERRE-FELIX of #16 Spruce Street, Nassau Village, New Providence, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 4th day of September, 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

‘Road map’ for 5G plan amid Starlink pushback

Bahamas” although it did not identify any specifics.

“URCA acknowledges

Cable Bahamas/Aliv’s position that 5G technology will be initially used in The Bahamas to deliver existing mobile services more efficiently, not necessarily new ones, and that the 5G business case is based on revenue retention rather than additional revenues, which are difficult to obtain from customers who are used to unlimited use bundles and a saturated market, combined with high

roll-out costs,” the regulator conceded. “URCA is cognisant that there may need to be some amendments and/ or additions to the existing regulatory framework in The Bahamas to facilitate 5G, including but not limited to assessing the need to issue additional spectrum; ensuring all mobile operators have access to fibre backhaul connectivity on reasonable terms; and/ or facilitating site sharing where feasible.”

BTC, meanwhile, said existing operators were struggling to properly plan their investments amid

ongoing uncertainty over whether the Government will licence a third mobile operator in The Bahamas.

“Operators are hesitant to plan and strategise on their near to medium-term investments as licensing of a third mobile operator would significantly impact the profitability of existing mobile licensees and negatively impact investment in lower population density areas,” it added.

However, Cable Bahamas and Aliv argued that “URCA’s primary focus should be to develop a regulatory regime that addresses the barriers to 5G

AS G20 LEADERS PREPARE TO MEET IN RECENTLY FLOODED NEW DELHI, CLIMATE POLICY ISSUES ARE UNRESOLVED

By PIYUSH NAGPAL, ALTAF QADRI AND SIBI

ARASU

Associated Press

REKHA Devi, a 30-year-old farm worker, is dreading the moment when her family will be ordered

to leave their makeshift tent atop a half-built overpass and return to the Yamuna River floodplains below, where their hut and small field of vegetables is still under water from July's devastating rains.

Devi, her husband and their six children fled as the record monsoon rains triggered flooding that killed more than 100 people in northern India, displaced thousands and inundated large parts of the capital, New Delhi. The waters

investments as much as possible, while also recognising the substantial investment risk to the operators in the market”.

Giving their views on how the 5G roll-out will likely play out, the two companies said: “In the short-term, the demand for 5G services is likely to come from services for tourists in specific locations, for example for those used to high-speed 5G services at home, or for the provision of services, such as gaming, that take advantage of 5G’s low latency.

Small businesses using fixed wireless access as a substitute for mobile or

took her husband's work tools, the children's school uniforms and books and everything else the family had accumulated over 20 years, forcing them and thousands of others into makeshift relief camps. Their temporary perch is less than 10 kilometers (6 miles) from the site of this weekend's Group of 20 summit at which leaders will have a final chance to

fixed broadband, and companies employing large data networks to connect remote or mobile points, such as ports, airports, distribution businesses and network businesses, were also identified as being among the likely early adopters.

“Cable Bahamas and Aliv expressed that, in the medium-term, demand for 5G services is likely to come from organisations that need to connect to mobile customers with high-speed reliable networks (banking, health, gaming), and from residential customers who can gain benefit from faster speeds and/or reduced

decide how to better protect people like Devi when the next extreme weather event batters the city. But she expects little — except eviction as part of security measures for the meetings.

"If the leaders lived here, would they have taken their kids into the deep waters to live? Right now, no one is doing anything for us. We will see when they do something," she said. Despite

latency and who can afford a 5G handset,” URCA said of their position.

“Cable Bahamas and Aliv noted that the Government has major opportunities to develop digital services over broadband, both for internal networks and for communications with citizens. The emergency services network and the networks operated by the Royal Bahamas Defence Force and the Royal Bahamas Police Force may benefit from 5G. Cable Bahamas/Aliv noted that it appears that URCA has not considered the demand for 5G from these sectors.”

cyclones, extreme rains, landslides and extreme heat affecting India and the rest of the world in the last few months, climate ministers of the G20 nations — the world's largest economies and producers of most of its greenhouse gases —ended their last meeting for the year in July without resolving major disagreements on climate policies.

FOOD PROCESSORS

the country as part of the Government’s drive to boost food security.

saw both companies also receive $25,000 in financing to boost their production.

TWO Bahamian food processors have signed a contract that will see a major wholesaler distribute their products throughout

The deal between Milo Butler and Sons (MBS), and Island Buzz Apiary and V and V Condiments, was facilitated by the Bahamas Agricultural and Industrial Corporation (BAIC) and

Leroy Major, BAIC’s chairman, said Milo Butler and Sons will distribute the processors’ products in the US as well as The Bahamas. He added that the agreement was a “step in the right direction” for this nation’s food security.

“Today, the owners of Island Buzz of Exuma, Mr and Mrs Musgrove, and owner of V and V Condiments, producers of jams, pepper sauce and seasoning, Ms Vianna Gibson, signed contracts with Milo Butler and Sons to have their products distributed throughout the Commonwealth of the Bahamas and in the United States of America,” he affirmed. “This is truly a step in the right direction towards food security and food sustainability.”

Milo Butler & Sons signed a memorandum of understanding (MOU) with BAIC in 2022, and has pledged to ensure that 25 percent of the products it sources are locally produced by 2025. The agreement was the first public-private partnership (PPP) for BAIC, and will result in Milo Butler & Sons purchasing from BAIC-approved vendors.

Mr Major explained that BAIC acts as quality control by inspecting production sites and ensuring that products are up to standard before connecting retailers with wholesalers.

He said: “A huge part of the BAIC collaboration with this whole enterprise is that BAIC acts in the capacity almost of quality control. [The team] makes sure that any product that is passed on to Milo Butler and Sons meets some very strict and rigid standards. [BAIC] goes and inspects their production sites, in most cases to ensure that it is up to a standard because these are items for human consumption.”

Allan Butler, chairman of Milo Butler Corporation, said the wholesaler intends to support Bahamian businesses in any way it can and that the products offered by the two companies are “world class”.

“It is indeed our trajectory as a company, and as a family business, to see to it that Bahamian businesses are supported and are helped in any way possible that we can help,” he added. “We’ve had samples of all of these products so far, and they are par excellence. They are world class, definitely world class.”

Mr Butler added that the COVID-19 pandemic and war in Ukraine have shown the importance of local production for food security and price stability. He encouraged Bahamians to give serious “consideration” to food sustainability.

He said: “As we celebrate our 50th year of independence we have to see ourselves moving ahead as one. We must see ourselves being able to support ourselves and, in many ways, COVID-19 would have taught us numerous lessons that we really ought have serious consideration for.

“And there’s no telling whether or not this may

repeat itself in some way, shape or form right now. There’s a war going on with Ukraine. With that moving forward, we ought to definitely consider how do we sustain ourselves.”

Mr Butler said the products the wholesaler will distribute could be found at all the major grocery stores and on the Family Islands. He disclosed that Milo Butler and Sons will be marketing the vendors’ products to hotels so that visitors will have greater access to the goods.

“Throughout the retail stores that we sell to at present, which is all the major food stores and, of course, the Family Islands, we have persons who actually go to those Family Islands and are able to sell those products. And we’ll also be reaching out to the hotels so that we will be able to get our products into the hands of tourists as well,” he added.

While the initial cost of goods sourced from the two vendots may be higher than more established brands, because their expense base is higher and they are not producing goods on a large scale, Mr Butler said these costs will eventually decrease as the companies grow.

“It will be affordable for Bahamians,” he added.

“However, from the onset, you may find there will be some challenges in that because of the fact that we’re not producing in this country to the scale of other countries. It’s going to take a while for that to happen. But that also comes into play as to how much we support each other. If we support, we can bring down the prices and help these individuals who produce these products to get their costs a little cheaper.

“Their cost of production may be slightly elevated… Therefore, we have to make sure we do our part to make sure that those things are actually kept at a minimum so those individuals can come to market and be competitive. So initially, no, it may not be. However, over time, we do expect that will actually happen.”

Mr Butler said Milo Butler and Sons would like to establish an “ongoing system” with other local businesses and see a “diversification’” in Bahamian-manufactured products.

“And we would like to know that this is not just a government situation where governments come and governments go, where this is not continued. We would like for this to really be something that we can really look forward to, to be an ongoing system, because these are successive plans that help us as a country and not just as party politics,” he added.

“We look forward to all the support that we can render, and that you will also render, and as we move forward as Bahamians. We would like to see further diversification in the products that are being presented that we need as Bahamians, but this is a good start… and we look forward to growing together with you”

PURCHASING contracts were signed between Milo Butler & Sons and two of the Bahamas Agricultural and Industrial Corporation’s (BAIC) affiliated local food processors and vendors at the Corporation on Thursday, August 31, 2023. Present were Executive Chairman, BAIC, Leroy Major; Chief Executive Officer, Milo Butler & Sons, Allan Butler; Island Buzz Apiary of Exuma (honey) owners and founders, Marsha and Wentworth Musgrove; V&V Condiments owner, Vianna Gibson; General Manager, BAIC, Troy Sampson and other members of the Corporation’s management team.

Photo:Patrice Johnson/BIS

INCOME TAX: NOT ‘HOLDING THE BAG’

directions they go,” he said of the potential impact. “It is going to be scaling back on other taxes? Is it going to be on gross turnover? Is it going to be on net profit?

If it is going to be on net profit, that would be fantastic because we’re high dollar turnover and low profit margin.

“It will definitely be pro to us, and I’ve spoken to a number of businesses that follow the same model and they’re echoing the same sentiments. As it stands now, you could generate a great deal of sales, but with slim profit margins and the high cost of business and expenses, you could end up losing money but still paying the Government or paying them based on a high turnover where, in the end, you come up short and are left holding the bag.

“That would be a fair way to do it, based on the net profit. It’s something we could get behind and would be happy to pay our fair share. With price controls and the high cost of doing business, it’s difficult when you have to pay Business Licence fees on your gross turnover.”

Mr Albury told this newspaper the Association hopes to discuss the rationale for continued imposition of price controls on the auto industry with the Government given that such restrictions are “a little outdated” given the intense competition dealers face both in The Bahamas and abroad.

Presently, the allowed mark-ups or margins on new and used cars stand at 25 percent and 15 percent, with the BMDA president describing the latter as “pretty tight when you look at expenses and costs”. Parts, too, are also price controlled with a 75 percent margin permitted.

“Definitely its something during this term in government that we’d like to have a chat with the present administration on to see what their views are on that,” Mr Albury said of price controls. “In this day and age it’s not like we’re selling a necessity which we have a monopoly on, in which case it would require some restrictions and we would have some controls.

“I totally understand that we don’t want people gouged and taken advantage of, but in this day and age in our industry it’s a little outdated. Opportunities we may have to capitalise on, with big purchase discounts and where we find a deal, we’re not able to go ahead and exploit that.

In this competitive day and age, the market will restrict itself where necessary. As other businesses have to do, too, we would have to remain in line.”

The BMDA president said Bahamians would seek

to purchase vehicles online, or physically go to the US, if local dealer prices were uncompetitive or totally out of line. He added that staying competitive on price also ensures money continues circulating within the local economy, creating the prospect that it “comes back to me” at some point.

Meanwhile, the Bahamas National Statistical Institute released data showing that inflation and price increases are slowly starting to moderate, although many families will argue they have not seen or felt the effects yet. For May 2023, the monthover-month inflation rate increased to 0.4 percent, representing a slight decline on April’s 0.6 percent.

As for the trailing 12 months, the inflation rate to May 2023 dropped to 3.6 percent compared to 4 percent for April. This was the first time the annual inflation rate dropped below 4 percent since February 2022, some 15 months ago, and was the lowest 12-month trailing figure since the 3.4 percent recorded for July 2021 almost two years ago.

Gas and diesel prices fell by 6.5 percent and 16.6 percent year-over-year for May 2023, respectively, continuing the decline seen in April.

“The monthly inflation rate in The Bahamas, which represents the overall change in prices for 2023, increased by 0.4 percent when compared to April 2023,” the Institute said.

“This increase is reflected in the overall price of items purchased by the average consumer during this period. This May 2023 increase followed a 0.6 percent increase between the months of March 2023 and April 2023. The category of ‘restaurants and hotels’ saw an increase of 1 percent when compared to the previous month. The housing, water, electricity and other fuels category also recorded an increase of 1 percent for the month of April 2023.

“On a year-over-year basis, the consumer price index rose 4 percent over the same period last year in 2022. The major categories that contributed to this rise included ‘alcoholic beverages’, along with ‘furnishing, household equipment and routine household maintenance’ and ‘recreation and culture’ with increases of 10 percent, 8 percent and 8% percent, respectively,” it added.

“Diesel prices, along with gasoline, declined 17 percent and 7 percent respectively compared to this period in 2022. However, compared to April 2023, gasoline prices increased by 2 percent while diesel prices declined 2 percent for the month of April 2023.”

$3m Governor’s Harbour project in 45 full-time jobs

“The Project is anticipated to generate direct and indirect long-term, sustainable benefits to the local economy as well as surrounding island destinations near Eleuthera.” These include “direct employment of approximately 40 persons during the construction phase and utilities installation, and approximately 45 persons during the operation phase for management and commercial development”.

“Every effort will be made to maintain 100 percent local employees during

both construction and operation,” the EIA pledged, noting that other construction jobs will be created once lot purchasers start building their homes. “The food and beverage operations will deliver additional revenue for the settlement. Fuel sales will create direct and indirect employment opportunities through delivery services as well as serving other non-member boaters,” it added.

“The project would also be a recreational facility, which will contain restaurants, bars and shops offering goods for sale to tourists and the public. This

includes goods and services from Bahamian artists, musicians, cooks and other specialists. Adding marina amenities and security will increase property values in the surrounding area.

Dive charters, fishing charters and retail entrepreneurial opportunities were listed as some of the activities that Sunset Estates and Marina has the potential to stimulate.

“The proposed development will include a subdivision, a community area and a full-service marina on a 30.63-acre tract in the Governor’s Harbour constituency of central

Eleuthera. The project will also include a main site entrance and parking access from the Queen’s Highway main road, with parking spaces in the southern area of subdivision,” the EIA said.

“The proposed conceptual plan for the subdivision includes 49 single-family residential lots ranging from 14,000 to 30,000 square feet in size, a vegetative corridor and a two-lane access road from Queen’s Highway to each of the lots within the site. The project’s purpose is to add attractive, modern residential homes while maintaining the

distinctive native Bahamian architectural style within the Governor’s Harbour community.

“The proposed marina will be constructed with timber piles and timber framing structures to facilitate 32 boat slips, water and electrical utilities, underground fuel storage, one 3,200 square foot dockside building and two 900 square foot dockside buildings for amenities such as a restaurant and bar, a charter shop and an administration building,” the document added.

“The 32 boat slips will have the capacity to support boat vessels of up to 45 feet length overall. Located on the project site just north of the existing, non-operational government clinic, the underground fuel storage is intended to house fuel lines that will be installed under the Queen’s Highway and will lead to the end of the dock. There will be no fuel storage on the marina side of Queen’s Highway.”

The EIA revealed that the land upon which Sunset Estates & Marina will be developed is owned by another entity. “The parcel of land is owned by Governor’s Harbour Resort and Marina Ltd, who has authorised SLV Holdings Ltd to develop the project at the site. The site is in a natural, undeveloped and disturbed state.

“An open green space area is expected to function as a community centre covering approximately 8,000 square feet of retail and commercial spaces, including a clubhouse, recreational facilities such as a kids’ playground, pool, tennis court and a gym, and approximately 16,000 square feet of rental villas.

“The proposed development provides a unique opportunity for the Governor’s Harbour community,

and for tourists that visit the area, to experience a safe and secure facility. The facility will be designed to the Bahamas Building Code and shall withstand hurricane conditions. The project will bring many direct and indirect benefits to the community and adjacent neighbourhoods, to the island of Eleuthera and, more broadly, the Bahamian economy.

Elsewhere, a three-acre beach club has been proposed for Exuma’s Stocking Island. The Environmental Baseline Survey for the Coconut Club project, also performed by BRON, stipulates: “The developer intends to set up an ecofriendly beach club with a fixed-entry dock for beach access and boat parking, food stands and associated dining service containers, a bar, private cabanas, sporting and game areas, a kids’ zone and swim platforms.

“These activities will be collectively referred to as the project. There will be some negative, short-term impacts related to noise, air quality, turbidity altering the existing marine and coastal habitats, as well as increased marine traffic and human traffic, and increasing waste management pressures for the Stocking Island area.

“The project will result in positive impacts by removing the deposited dredge spoils that has hardened on the beach shore area of the site due to weathering and wave action over a 20-year period, extend the beach habitat and create additional tourist attractions and activities to increase visitation and economic growth. Beach nourishment activities will also contribute to improving the aesthetics of the immediate area by providing a sand beach and beach bar amenities for recreation and leisure.”

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

NOTICE SP2 Investments USA Ltd.

Incorporated under the International Business Companies Act, 2000 of the Commonwealth of The Bahamas.

Registration Number 211313 B (In Voluntary Liquidation)

Notice is hereby given that the above-named Company is in dissolution, commencing on the 31st day of August, A.D. 2023.

Articles of Dissolution have been duly registered by the Registrar. The Liquidator is Mr. Cesar Augusto Pires Viana whose address is Av Ibirapuera 2332 CJT 111 Torres 2 –Indianopolis 04028-002 Sao Paulo -SP, Brazil. Persons having a Claim against the above-named Company are required on or before the 30th day of September, A.D. 2023 to send their names, addresses and particulars of their debts or claims to the Liquidator of the Company, or in default thereof they may be excluded from the beneft of any distribution made before such claim is proved.

Dated this 4th day of September, A.D. 2023.

Cesar Augusto Pires Viana Liquidator

NOTICE

MAHABHUTA CAPITAL LTD.

Incorporated under the International Business Companies Act, 2000 of the Commonwealth of The Bahamas.

Registration Number 205661 B (In Voluntary Liquidation)

Notice is hereby given that the above-named Company is in dissolution, commencing on the 31st day of August, A.D. 2023.

Articles of Dissolution have been duly registered by the Registrar. The Liquidator is Mr. Juliano Primavesi whose address is Av. Juca Batista, 8000 Casa 192 CEP 97181200, Porto Alegre, Brazil. Persons having a Claim against the above-named Company are required on or before the 30th day of September, A.D. 2023 to send their names, addresses and particulars of their debts or claims to the Liquidator of the Company, or in default thereof they may be excluded from the beneft of any d tr but on made before such claim is proved.

Dated this 4th day of September, A.D. 2023.

Liquidator

‘Nothing to ease pressure’ over high insurance costs

FROM PAGE B3

Bahamian property and casualty underwriters must acquire huge amounts of reinsurance annually because their relatively thin capital bases mean they cannot cover the multibillion dollar assets at risk in this nation, thus making them dependent on the cost and availability of such global support.

The large, and more frequent, payouts associated with hurricanes in the Caribbean means some reinsurers now either have a reduced appetite for underwriting risks in this region or have withdrawn from it altogether. Hence the reduction of capacity and increase in pricing, which has been passed on to Bahamian consumers.

Insurance Company of The Bahamas (ICB), in its just released 2022 annual report, confirmed the drop in reinsurance availability has already pushed property insurance costs for Bahamian homeowners and businesses to the highest levels it has seen in its 26-year history. Mr Ingraham said interest rate hikes in advanced economies have also enticed risk-averse investors into switching money from reinsurance to higher-earning bank deposits.

Meanwhile Anton Saunders, RoyalStar Assurance’s managing director, told Tribune Business that Idalia’s impact will be contained if losses are below $5bn and there are no other major hurricane events in 2023. “I think everyone in the Caribbean is watching closely what the fall-out is going to be from the latest storm and projections on what it’s going to cost,” he said.

“If it’s going to be below $5bn for the whole storm I don’t think it will create too big a change in reinsurance market appetite. If it’s the only one, and everyone will be crossing everything they have, if it is below $5bn I think the market can sustain that and there shouldn’t be any big changes.

“But if it goes beyond that, and there are one or two others ones, the concerns will be multiplied. If there’s more landfalls that happen, and it’s severe, I’d be more concerned, but one-offs like this I don’t think the reinsurance market will have any difficulty dealing with that,” Mr Saunders added.

“I don’t see any fall-out from this one if it’s confined at $5bn or less. They’ve already priced for that. If this event is in isolation, and we have no more events, I don’t see any significant fall-out from that.”

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NOTICE

NOTICE is hereby given that DORETHEA FREDERIKA HYPOLITE, of Governors Harbour, Queens Highway, Eleuthera, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 4th day of September, 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that SOPHIA ANN MARIE HARRISON, of Sandilands Village, New Providence, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 4th day of September, 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

I don’t think we could bear something like that.”

PAKISTANI shopkeepers close their businesses during strike against inflation in Peshawar, Pakistan, Saturday, Sept. 2, 2023. Pakistani traders on Saturday went on strike against the soaring cost of living, including higher fuel and utility bills and record depreciation of the rupee against the dollar, which has led to widespread discontent among the public.

PAKISTANI TRADERS STRIKE COUNTRYWIDE AGAINST HIGH

INFLATION AND UTILITY

By ZARAR KHAN Associated Press

Pakistani traders on Saturday went on strike against the soaring cost of living, including higher fuel and utility bills and record depreciation of the rupee against the dollar, which has led to widespread discontent among the public.

The traders pulled their shutters down across the country, while protesters burned tires on roads to express their anger.

The strike was called by ex-senator Sirajul Haq, who heads the religious political party Jamaat-e-Islami, and it was largely endorsed by trade and business bodies, market associations, lawyers associations and transporters.

The country's commercial and economic hub, Karachi, was almost completely closed and vehicle traffic was thin on roads, with all markets and shopping centers closed.

"We have shut our shops in protest so that our message reaches the ruling class. If they don't consider our problems, we will devise further strategies, said Fahad Ahmed, a trader in Karachi, adding, "If you pay 100,000 rupees ($330) in rent for your shop and you have to pay an equal amount in electricity bill, how can you survive?"

In the eastern city of Lahore, the capital of Punjab province, all the main markets were closed for the day, lawyers remained out of courts and intercity and local public transport weren't operating. The northwestern city of Peshawar and southwestern city of Quetta were partially closed.

Pakistan's annual inflation rate was 27.4% in August, according to data released by the state-run Bureau of Statistics.

Pakistan was on the verge of default before securing a lifeline deal with the

BILLS

International Monetary Fund. As part of the conditions for the bailout package, Pakistan was required to reduce subsidies that had been in place to cushion the impact of rising living costs. This likely contributed to the increase in prices, especially energy costs.

Mohammad Sohail, a prominent economist and head of Topline Securities, said that in spite of the IMF program Pakistan is going through a challenging time. He said the government is trying to implement the painful IMF-dictated reforms while political polarization is affecting sentiments.

"Inflation is a big problem for common Pakistanis. And this inflation is mainly led by the falling rupee. Strict stabilization measures with improving foreign exchange reserves can stabilize the currency and inflation going forward," Sohail said.

The value of the Pakistani rupee has significantly depreciated against the dollar, crossing a historic threshold of 300 rupees to the dollar. Exchange rate depreciation has led to higher import costs which in turn can contribute to inflation.

Jamal Uddin, a shopkeeper who was participating in a protest rally in Dera Ghazi Khan, said he and other traders were keeping their businesses shut in protest because it simply wasn't possible anymore for them to feed their families.

Shamim Bibi, a widow and mother of three in Multan, said that her daughters had to quit school and her young son went to run a food stall to meet the daily needs of the family.

"But now our life is miserable due to extremely inflated electricity bills, high fuel and food prices and increasing house rent," she said.

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

Photo:Muhammad Sajjad/AP

What’s at stake when Turkey’s leader meets Putin in a bid to reestablish the Black Sea grain deal

By ANDREW WILKS AND ELISE MORTON

Associated Press

TURKISH President

Recep Tayyip Erdogan will meet with Vladimir Putin on Monday, hoping to persuade the Russian leader to rejoin the Black Sea grain deal that Moscow broke off from in July.

The meeting in Sochi on Russia's southern coast comes after weeks of speculation about when and where the two leaders might meet.

Erdogan previously said that Putin would travel to Turkey in August.

The Kremlin refused to renew the grain agreement six weeks ago. The deal — brokered by the United Nations and Turkey in July 2022 — had allowed nearly 33 million metric tons (36 million tons) of grain and other commodities to leave three Ukrainian ports safely despite Russia's war.

However, Russia pulled out after claiming that a parallel deal promising to remove obstacles to Russian exports of food and fertilizer hadn't been honored.

Moscow complained that restrictions on shipping and insurance hampered its agricultural trade, even though it has shipped record amounts of wheat since last year. Since Putin withdrew from the initiative, Erdogan has repeatedly pledged to renew arrangements that helped avoid a food crisis in parts of Africa, the Middle East and Asia. Ukraine and Russia are major suppliers of wheat, barley, sunflower oil and other goods that developing nations rely on. The Turkish president has maintained close ties to Putin during the 18-month war in Ukraine. Turkey hasn't joined Western sanctions against Russia following its invasion, emerging as a main trading partner and logistical hub for Russia's overseas trade.

NATO member Turkey, however, has also supported Ukraine, sending arms, meeting Ukrainian President Volodymyr Zelenskyy and backing Kyiv's bid to join NATO.

Erdogan angered Moscow in July when he allowed five Ukrainian commanders to return home. The soldiers had

been captured by Russia and handed over to Turkey on condition they remain there for the duration of the war.

Putin and Erdogan — both authoritarian leaders who have been in power for more than two decades — are said to have a

close rapport, fostered in the wake of a failed coup against Erdogan in 2016 when Putin was the first major leader to offer his support.

Traditional rivals Turkey and Russia grew closer over the following years as trade levels rose and they

embarked on joint projects such as the Turkstream gas pipeline and Turkey's first nuclear power plant. Ankara's relations with Moscow have frequently alarmed its Western allies. The 2019 acquisition of Russianmade air defense missiles led to Washington kicking

Turkey off the U.S.-led F-35 stealth fighter program. Russia-Turkey relations in fields such as energy, defense, diplomacy, tourism and trade have flourished despite the countries being on opposing sides in conflicts in Syria, Libya and Nagorno-Karabakh.

THE WEATHER REPORT

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

Professional ‘step child’ hits $1bn permits mark

significant “windfall” as he suggested the industry’s contribution could expand from the $340.16m worth of construction starts enjoyed in 2022 to closer to $1bn per year.

Questioning why an industry responsible for $1bn in new permits is still not regulated, with no licensing or certification regime for its contractors, the BCA chief said: “I’ve said it before and will say it again, and say it stronger this time. If the Construction Contractors Act becomes fully enacted, with the appointment of a Board to licence contractors and a process for contractors to be licensed, the $340m in starts you’re seeing for 2022 would triple to $1bn a year.

“That’s the magnitude of what investors are waiting on to spend money in The Bahamas. I said two years ago that all the Government of The Bahamas is doing is holding up a windfall for contractors and a windfall for the country. If they want to see that number [starts] hit $1bn a year, have licensing for contractors.

“We have persons calling the BCA wanting to do projects here, joint venture with Bahamian contractors, but they’re not prepared to do that without a legal framework in place and, until such time as it is in place they will keep their

millions in their home jurisdiction. I’ve explained that to the minister, explained that to the Prime Minister. We’re waiting for them to do the right thing so we can triple the value of construction starts we had in 2022.”

The Act was passed into law in 2016 with now-prime minister, Philip Davis KC, the then-minister of works, the Cabinet member primarily responsible for bringing it to Parliament. However, it has never been brought into practical effect because the joint publicprivate sector Board that is supposed to oversee the industry’s self-regulation, and the licensing/certification of contractors according to ability and scope of work performed, has never been appointed. The initial “grandfathering in” period for all pre-existing contractors under the Act also expired in 2018 and now has to be reset. This period was designed to give all contractors wishing to practice sufficient time to apply to the Board to be registered and licensed. As a result, the Bahamian construction industry remains arguably the largest and most important sector not to have its own regulatory body or licensing criteria that would help set industry standards and qualifications.

Contrasting this to the likes of Bahamian engineers and architects, both

of whom are self-regulated by such bodies, Mr Sands told this newspaper: “We feel like the step child of the professions in the country. That shouldn’t be. Neither the engineers nor the architects represent the value of GDP that construction contributes to this country.

“Construction across the entire country is just under $1bn a year. They know this, they recognise this, but continue to treat our industry as if we don’t matter. I want to see how transformative this administration is going to be as they’ve spent the last two years finding reasons why they cannot do this. The country cannot wait any longer.”

Clay Sweeting yesterday replaced Alfred Sears KC as minister of works in the Prime Minister’s Cabinet reshuffle, so he will now likely have responsibility for the construction industry. Mr Sands, meanwhile, added: “We get at least two calls a week from investors in the US and Europe, making inquiries.

“They want to do business, and ask questions about becoming a general contractor in The Bahamas, and they have a project they’re looking at doing. We have to be real and say that we don’t have a licensing regime in The Bahamas. They tell us to let them now when we get it together, and they will come and do some business in The Bahamas.”

The Bahamas National Statistical Institute, using data obtained from the Ministry of Works, Grand Bahama Port Authority and Family Island administrators, unveiled data suggesting the construction industry maintained its post-COVID rebound in 2022. While total construction starts declined in number by 58 or 10 percent, falling from 601 to 543 yearover-year, their combined value rose by $26.448m or 8 percent to $340.16m compared to $313.712m in 2021.

As for construction completions across The Bahamas, these increased by 12 percent or 75 to 700, with the corresponding cumulative value surging by 42 percent to finish $128.161m higher at $435.452m compared to $307.291m the prior year.

“The total number of permits issued for all The Bahamas was 1,584 for the period 2022, an increase of six projects when compared to 1,578 projects issued in 2021,” the Institute said. “There was also an increase in the value of permits during this period of approximately $338m. In the private/residential sector, the number of permits issued in 2022 was 1,266 compared with 1,285 in 2021, which showed a decrease of 19 projects and a corresponding decrease in value of $45m.

“The commercial/industrial sector had an increase of five projects while the public sector permits issued doubled when compared to 2021, moving from 20 projects to 40 in 2022. The commercial/industrial and the public sectors both had increases in the value of permits issued of $373m and approximately $9m, respectively.”

Broken down by island, New Providence saw the total value of issued construction permits increase by almost 22 percent or $132m year-over-year, rising from $605.194m to $737.516m. Grand Bahama was flat at $73.967m compared to $66.757m the year before, while the Family Islands saw a more than seven-fold jump in construction permit value - from $34.516m in 2021 to $232.572m.

“The total number of construction starts showed a decrease of 58 projects when compared to 601 projects started in 2021. However, there was an increase in the total value of $26m,” the Institute said.

“The private/residential sector starts decreased by 28 projects, while showing an increase in the value of approximately $142m.

“The commercial/industrial sector starts decreased by 33 projects and the value also decreased by approximately $118m. Conversely, the public sector had an

increase in the number of projects started by three units and an increased value of approximately $2m.” New Providence accounted for more than $308m in new construction starts, and Grand Bahama over $30m.

“The construction completions increased in total number by 75 projects completed. The number of private/residential sector completions increased by 90, while the commercial/ industrial sector decreased by 12 and the Public Sector by three,” the Institute added.

“There was an increase in the value of completions in the private/residential sector of approximately $41m and the commercial/ industrial sector of approximately $101m, while the public sector completions value decreased by approximately $14m.”

Mr Sands said much of the increase was likely sparked by investors deciding to proceed with previously-planned projects that were delayed by the COVID pandemic. He added that the value of completions, plus construction starts and permits issued, was also increased to some extent by global and local inflationary pressures which have raised both building material and labour costs.

By MAE ANDERSON

AP Business Writer

FOR small businesses that rely on summer tourism to keep afloat, extreme weather is replacing the pandemic as the determining factor in how well a summer will go.

The pandemic had its ups and downs for tourism, with

a total shutdown followed by a rush of vacations due to pent-up demand. This year, small businesses say vacation cadences are returning to normal. But now, they have extreme weather to deal with — many say it’s hurting business, but more temperate spots are seeing a surge.

Tourism-related businesses have always been at the mercy of the weather. But with heat waves, fires and storms becoming more frequent and intense, small businesses increasingly see extreme weather as their next long-term challenge.

For Jared Meyers, owner of Legacy Vacation Resorts, with eight

locations, including four in Florida, Hurricane Idalia’s landfall Wednesday as a Category 3 storm led to a loss in revenue as he temporarily closed one resort and and closed another to new guests. It also means a lengthy cleanup period to fix gutter and other damage and beach cleanup, including replanting of sea grass,

sea grapes and other plants to protect against the next storm.

“Even when the hurricane doesn’t hit directly, it wreaks havoc economically, emotionally — to those that have suffered previous losses — and to our way of life,” he said.

A lifelong Florida resident, he’s used to

hurricanes, but fears their intensity is getting worse. In fact, the number of storms that intensify dramatically within 240 miles (385 kilometers) of a coastline across the globe grew to 15 a year in 2020 compared to five a year in 1980, according to a study published in Nature Communications.

“It does feel like and probably will continue to feel like we’re just hopping from one emergency to another based on climate change,” Meyers said.

For small biz reliant on summer tourism, extreme weather is the new pandemic -- for better or worse