By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A BISX-listed bank has been ordered to hand over $63,000 from accounts belonging to an ex-MP and Supreme Court judge to help repay a multi-million dollar debt owed to a US investor.
Deborah Fraser, the acting chief justice, in a September 11, 2024, verdict ruled that a “third party debt order” be made final and CIBC Caribbean (Bahamas) must pay this sum to Dr Paul Fuchs from accounts beneficially owned by Elliott Lockhart KC, his law firm and another entity the latter is affiliated with.
While relatively small compared to the total $3.033m allegedly owed by Mr Lockhart and his firm, the order and award nevertheless represents a start in Dr Fuchs attempting to recover these debts. Tribune Business earlier this month reported that authorities were also trying to seize other assets, such as real estate, believed to be beneficially owned by the ex-judge to help repay the outstanding sum. However, Dr Fuchs will only gain just over two-thirds of the total $119,886 found to be held in the multiple bank accounts owned by Mr Lockhart and his law firm. For the acting chief justice found that $17,000 of this figure should be “excluded” as it represented monies belonging to “innocent third parties”
- namely clients of the former MP who he was providing legal services to.
And Justice Fraser also deducted a further $40,000 as due to Mr Lockhart under the Supreme Court Order that froze his bank accounts some 40 weeks ago. That stipulated he was allowed to withdraw $1,000 per week to cover his “ordinary living expenses”, hence the $40,000 total calculation, as the dispute with Dr Fuchs played out.
Detailing the path to her latest verdict, Justice Fraser recalled how she granted Dr Fuchs and his company, MC Grotto LLC, summary judgment in October 11, 2023, that mandated Mr Lockhart, his law firm and employee Patricia Bullard return the $3.033m with interest to the US investor.
Airline warning: ‘We’re being taxed to death’
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A SENIOR tourism executive yesterday urged The Bahamas “to convert our proximity into affordability” after multiple airlines serving this destination warned: “We’re being taxed to death.”
Kerry Fountain, the Bahamas Out Island Promotion Board’s executive director,
while moderating a panel discussion at the Abaco Business Outlook conference also challenged this nation’s focus on “record-breaking” arrivals numbers as masking cost competitiveness concerns and the ever-escalating reliance on lower spending cruise visitors.
Both Tracey Cooper, Bahamasair’s managing director, and Stuart Handley, Aztec Airways’ chief executive and owner, identified taxes and fees
imposed on the airline industry and its passengers as the leading challenge their operations face in providing the necessary airlift access to fuel this nation’s largest industry.
Mr Handley, asked to name the greatest obstacle faced by his company, replied: “It’s one word: Taxes.” To which Mr Fountain replied: “Say that again?” Mr Handley
PM: BPL grid deal finalised ‘in a week’
URCA to ‘use all avenues under law’ on GB Power
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Utilities Regulation and Competition Authority (URCA) yesterday pledged it “will use all avenues available under the law” in responding to Grand Bahama Power Company’s bid for a rate increase.
The energy sector regulator, which is already locked in a Supreme Court battle with GB Power over whether it has supervisory authority over the latter, pushed back over the Grand Bahama Port Authority’s (GBPA) confirmation that a 45-day public consultation process over the rate rise application has started by warning about potential non-compliance with the Electricity Act 2024.
“The Utilities Regulation and Competition Authority (URCA) wishes to affirm its position as the independent regulator for all public electricity suppliers in The Bahamas, as mandated by the Electricity Act 2024,” it said.
“URCA has taken note of the recent press release from the Grand Bahama Port Authority (GBPA) concerning a public consultation process for a proposed rate increase application submitted by the Grand Bahama Power Company (GBPC). In line with its statutory mandate, URCA remains committed to ensuring that all public electricity suppliers operate in compliance with the established regulatory framework.
“Pursuant to its statutory obligations to all stakeholders, URCA will use all avenues available under the law to enforce compliance with the Electricity Act and the Natural Gas Act, safeguarding the interests of electricity consumers and all stakeholders across The Bahamas,” URCA added.
“We urge all stakeholders, including public electricity suppliers, to engage with URCA on matters relating to electricity regulation and tariffs, to ensure transparency and adherence to the regulatory processes designed to protect consumers.”
Juan McCartney, URCA’s corporate and consumer relations manager, told Tribune Business he was unable to comment beyond
The Prime Minister yesterday defended his administration’s decision to outsource New Providence’s electricity grid to private investor control while revealing the deal will be finalised in “about another week”.
Philip Davis KC, speaking at his office’s weekly media briefing, said transferring the capital’s energy grid to Bahamas Grid Company, a special purpose vehicle 60 percent majority-owned by undisclosed private investors, will deliver consumers a 50 percent saving on Bahamas Power & Light’s (BPL) transmission and distribution network.
“We have about another week before it’s completely
finalised,” said Mr Davis said of the agreement with Bahamas Grid Company.
“The fundamental structures have been agreed upon, and it’s just the operational details that are now being worked on.
“For example, we would want some key performance indicators included in the operational agreement.
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
BAHAMAS Power & Light’s (BPL) top executive is “pretty confident” it will be able to handle Abaco’s 30 mega watt (MW) energy demand that is forecast to shatter pre-Dorian records next summer. Shevonn Cambridge, the state-owned energy provider’s chief executive, told yesterday’s Abaco Business Outlook conference that the island’s peak demand in summer 2025 is predicted to be 9 percent higher than what was required prior to the catastrophic Category
Five hurricane that struck in September 2019. Speaking just over five years after the devastating storm hit the island, he added that BPL was “just starting” renovations to its Marsh Harbour power plant in a bid to increase its generation capacity by 8 MW and have sufficient redundant capacity to meet Abaco’s needs during next summer’s peak. Mr Cambridge also made an impassioned plea to Abaconians to report increased copper theft that has disrupted BPL’s efforts to counter lightning strikes, thus undermining
KERRY FOUNTAIN
PHILIP DAVIS KC
ELLIOTT LOCKHART KC
PM eyes Lucayan deal ‘in two weeks’
By FAY SIMMONS Tribune Business Reporter
THE Prime Minister yesterday confirmed “intense discussions” have been held with a potential buyer for the Grand Lucayan resort and he expects a deal to be finalised over the next two weeks.
Speaking at his office’s weekly press briefing, Philip Davis KC said he did not want to sell the hotel just to “tick a box” and expects to have a “world class” brand attached to the property.
“With respect to the Grand Lucayan, we had intense discussions with an intended buyer. The issue for us, of course, is to ensure that we just don’t sell for selling’s sake or to tick a box,” said Mr Davis.
“We’ll make sure that when we sell, we’ve indicated that we want a world-class brand name to be associated with re-opening. And I’m hopeful, and I’m encouraged, that we will have that. Within the next two weeks or so, we should be closing an arrangement. Until then, just stay tuned and we will let you know.”
Tribune Business previously revealed that the Grand Lucayan’s potential buyer plans to demolish all its existing properties to make way for three new hotel towers and two casinos as part of an investment that could hit $2bn.
Multiple sources, speaking on condition of anonymity, have told Tribune Business the prospective purchaser is a US-based investor/ developer with strong and already-existing casino industry links. “It’s a little vague, but it’s a US-based company with casino connections,” one contact said.
“They’re apparently going to knock all the hotels down and put up three towers and two casinos. If it’s true, it’s encouraging.
“It’s this big company, and they have big plans with the three towers. I don’t know why they would knock down
the big hotel in the middle, which is the only one that has value.” Another source said of the buyer: “These aren’t people looking to try and find a demand. They have that demand. They are building a supply for that demand. These are real investors, real developers and people who have real money.”
Only one of the Grand Lucayan’s three resort properties, Lighthouse Point, is presently open to guests. Both Breaker’s Cay and the former Memories property have been closed for numerous years - the latter ever since Hurricane Matthew struck the island in October 2016.
Subsequent checks by this newspaper confirmed that its contacts have not been misinformed, with other well-placed sources also confirming the purchaser’s plans. It is also understood that Australian golfer, Greg Norman’s, companies will be hired to design and manage the new resort complex’s golf courses which are likely to number more than one as part of ambitions to again make Freeport a tourism destination.
Many Grand Bahama residents and other observers, sceptical after both the Royal Caribbean/ITM Group and Electra America purchase offers foundered, will likely only believe a Grand Lucayan deal has been achieved when they see it.
However, Tribune Business understands a sales agreement has been signed and, most important in any real estate-based transaction, a deposit has been paid. The buyer and the Government, as the seller, are now involved in the due diligence process and more detailed negotiations necessary to close a sale and Heads of Agreement.
The Grand Lucayan was acquired from Cheung Kong (CK) Property Holdings, Hutchison Whampoa’s real estate arm, by the Minnis administration for $65m to head-off the resort’s threatened closure by its former owner.
URCA TO ‘USE ALL AVENUES UNDER LAW’ ON GB POWER
what was contained in the release, while Prime Minister Philip Davis KC declined to be drawn out on the matter.
He added, though, that the Government will “abide by the conduct of URCA” and expects the regulator to deal with any issues that arise with GB Power. “I think URCA has indicated what their position is on the matter, and I’ll just abide by the conduct of URCA in respect to that, so I would not interfere or say anything on that at this time,” said Mr Davis.
“I just expect URCA to deal with those issues that have come up with the power company in Grand Bahama.” GB Power’s existing challenge to URCA’s regulatory authority in Freeport still remains before the Supreme Court after some eight years.
GB Power initially sought an injunction to prevent URCA “from regulating, or seeking to exercise licensing and regulatory authority” over it. GB Power’s action is founded on the basis that, as a GBPA licensee, it is licensed and regulated by the latter via the Hawksbill Creek Agreement - and not by URCA and the original Electricity Act 2015.
It is arguing that the previous Electricity Act’s sections 44-46, which gave URCA the legal right to licence and oversee energy providers, “are inconsistent, and conflict with, the rights and privileges vested in [GB Power] and the Port Authority” by the Hawksbill Creek Agreement.
GB Power’s statement of claim argues that itself and the GBPA “have been vested with the sole authority to operate utilities”, including electricity generation and transmission and distribution, within the Port area until the Hawksbill Creek’s expiration in 2054. Cable Bahamas, too, also has a separate legal
Efforts to find a private buyer for the resort, including the Royal Caribbean/ ITM Group deal submitted to the former administration and the bid by Electra America Hospitality Group, have thus far failed to secure a purchaser. And, in the meantime, the Bahamian taxpayer has been forced to subsidise the Grand Lucayan’s annual losses to sustain its operations.
The 2024-2025 Budget provides a $17m subsidy for the resort and its immediate holding company, Lucayan Renewal Holdings, which matches the current fiscal year’s allocation. However, the $17m provided for the 2023-2024 Budget year was virtually exhausted at endMarch 2024, with some $16.632m having been spent, meaning that Bahamian taxpayers will almost certainly incur cost overruns.
And, given that the Government provided Lucayan Renewal Holdings with $17.882m in the 2022-2023 fiscal year, the resort is set to cost taxpayers close to $54m by the time the upcoming fiscal year closes at end-June 2025. Given this subsidy run rate, taxpayer exposure to the Grand Lucayan now likely exceeds $200m with much of this sum unlikely to be recovered via a sale.
Meanwhile, Mr Davis yesterday said plans for Grand Bahama International Airport’s revival are “moving along” and he intends to have a meeting with all stakeholders in the redevelopment next week. “In respect to the airport that is moving along. I anticipated by now we should have had shovels in the ground,” said Mr Davis.
“I’m to have a meeting now with all the stakeholders and those who have indicated that they wish to participate in that renovation. That meeting should be held either tomorrow early, or early next week, as soon as I’m back from the [United Nations] General Assembly, but we are moving seriously to ensure that that is happening.”
action contesting URCA’s jurisdiction and authority to regulate its Freeport subsidiary.
However, the new Electricity Act 2024, which treats Grand Bahama as a Family Island, makes the Grand Bahama Power Company the “approving authority” for anyone submitting a proposal to supply electricity to the public on the island. The Act states that any approvals by such an “authority” must also be given the go-ahead by URCA, and this has been interpreted as a neat way of circumventing the GBPA’s utilities regulatory authority in Freeport and transferring it to URCA via GB Power Company. Thus the stage for a major regulatory and legal clash has been set.
Pastor Eddie Victor, head of the Coalition of Concerned Citizens (CCC) and a long-time GB Power critic, yesterday backed URCA’s intervention while hitting out at what he described as the utility’s bid to force customers - rather than its Canadian owner - to finance its multi-million dollar capital investment programme.
GB Power’s three-year tariff proposal which, if approved as is, would impose a “maximum” 4 percent increase in total electricity costs for all consumers in 2026, was also branded “crazy” by Pastor Victor due to the impact it will potentially have on consumers. He argued that if Emera, its 100 percent owner, fails to reform its business model to “a municipal concept” than it needs to “move out the way” and exit.
“The economy cannot bear this increase, the average person cannot bear this increase, businesses definitely cannot bear this increase,” Pastor Victor told Tribune Business. “The company needs to fully review their business plan for Grand Bahama and needs to change to a municipality concept of providing energy.
“Emera needs to decide if it can provide a municipality concept of power provision to Grand Bahama or not. If they cannot they need to move out the way and allow another power company to work with the concept and public-private partnership in the provision of energy. There needs to be a complete overhaul of how that company operates in Grand Bahama, and they need to change their business model.”
GB Power has unveiled a five-year, $76.6m capital investment plan. Among the key investments that the tariff increase will finance are a $3m expansion of GB Power’s sub-station three next year, which the utility touted will “ensure system reliability in a critical area that is experiencing growth”.
What was termed “major maintenance” at GB Power’s generation plants, worth $2.8m in 2025 and $2.6m in 2027, is required “to ensure plant reliability and availability”, while a collective $9m investment in battery energy storage systems (BESS) is needed to support the utility’s solar power drive.
“These investments increase the availability of solar power to days and times when power is required, and the solar projects are not able to produce due to weather and/or time of day issues,” it was stated.
GB Power plans to make some $13.5m worth of capital investments in 2025, followed by $16.3m in 2026 and $22.9m in 2027. That totals $52.7m across the three years covered by the present tariff proposal, with a further $11.9m and $12m planned for 2028 and 2029, respectively. However, Pastor Victor argued that these investments should be financed from GB Power’s profits and retained earnings, or Emera, rather than consumers. “They should finance it out of their profits and the customers shouldn’t have to pay for it. Simple economics,” he said. “If you invest in a business, you should pay for capital upgrades from your profits.”
BUILDING ENTREPRENEURS OFFERS CLEAR ADVANTAGE
Research shows that countries which provide support to entrepreneurial ventures among their local population often experience unprecedented, sustained growth and development. Entrepreneurial activity helps create new jobs, fosters innovation and drives market competition, which ultimately benefits consumers. Entrepreneurship in island communities becomes particularly critical for sustaining and promoting growth.
Some of the clear benefits of entrepreneurship in a local community and economy include:
* More jobs are created
* The standard of living is raised
* It provides economic independence
* It encourages capital investment
* It drives market innovation, and
* It brings the community together
We focus this week’s column on sharing business ideas, specifically in tourism and hospitality, which will complement the blue (ocean-based), green (environmental) and orange (cultural) economies.
Blue Economy
* Bonefishing adventures
* Reef-fishing adventures
* Glass bottom boat sightseeing tours
* Exploring blue holes
* Snorkelling adventures
* Underwater cave exploration
* Jet ski rentals
* Power boat adventures
* Banana boat adventures
* Umbrellas and chairs on secluded beaches
* Lake and ocean kayaking
* Water bicycles
* Mangrove planting (Mission for Mangroves)
* Coral restoration activities (Coral Vita et al)
* Surfing
* Swimming pigs
* Dolphin encounters
* Seal lion encounters
* Safe swimming with sharks
Green Economy
* Jeep tours
* ATV adventures
* Bicycle rentals and tours
* Scooter rentals and tours
* City and country tours
* Island settlement tours
* Birding tours
* Nature hikes
* Crabbing adventures
* Wild boar hunting
* Historic tours
* Cultural tours
* Museum and expo tours
* Historic church tours
* Culinary tours
* Beer Hop Tours
* Farm visits (farm to table experiences)
* Local cooking tours and tutorials
* Local market shopping
Orange Economy
* Local artist concerts
* Street performers
* Local handicrafts using Bahamian raw materials (coconut, sand, salt, fish scales, conch shell, drift wood, tree bark, leaves)
* Design consulting
* Creative content production
* Innovative hubs
* Everything virtual including tours, museums, etc
Most business ideas on this list are not new to The Bahamas, but can certainly reap great benefits for entrepreneurs who put in the work and seek support offered by the many agencies supporting micro, small and medium-sized (MSME) businesses including the Tourism Development Corporation, the Small Business Development Centre (SBDC), the Bahamas Development Bank, the Bahamas Entrepreneurial Venture Fund and the Bahamas Agricultural and Industrial Corporation (BAIC).
a talent management and-
MARINE FORECAST
Minister backs calls to ease building red tape
By FAY SIMMONS Tribune Business
A CABINET minister yesterday said he shortly hopes to ease red tape associated with the approval of Family Island building plans.
Clay Sweeting, minister of works and Family Island Affairs, told the Abaco Business Outlook conference he backed calls for the 2,500 square foot threshold - above which construction plans must be sent to Nassau for approval - to be raised in a bid to reduce the associated bureaucracy.
Mr Sweeting spoke after Roscoe Thompson, chairman of the Marsh Harbour/ Spring City Township,
CLAY SWEETING
questioned why building plans that exceed 2,500 square feet must be sent to Nassau for Department of Environmental Planning and Protection (DEPP) approval when there are Ministry of Works and
Ministry of Environment and Natural Resources representatives on the ground in Abaco.
Mr Sweeting said he agrees with expanding the square footage to eliminate the red tape for residents and businesses. and is hopeful some changes will be made to the process in the coming months.
“I will say that that we are looking at it because I do agree,” said Mr Sweeting. “So, I have them assessing on where we can expand the square footage to go to Nassau, because then I understand Family Island development, you want to eliminate red tape.
“So, I do support it. I will say that Abaco was the only Family Island that didn’t do this. This has been a policy
for some time. This isn’t new. I think this might have been enacted about five years ago.
“Most single-family homes, for middle class income persons, would be over 2,500 square feet so I agree with you. I think that we just started in Abaco, ensuring that Abaco was in line with the rest of the Family Islands. I’m hoping that within a few months we’ll have some change to that.”
Mr Sweeting also confirmed that proposed reforms to the Local Government Act, which have been drafted and are expected to be tabled in Parliament within the coming months, will give local councils revenue-raising powers.
He explained that a key feature of the legislation will be allowing local government to raise funds that will assist in financing projects that central government may not be able to fund. “The local government draft legislation is complete,” said Mr Sweeting.
“We’re fine tuning some things, so we hope to have that tabled in the House in the next month or so.
That’s something where all local council members were engaged; in that everybody got some say. So, we’ll be happy about that.
“One aspect of it would be able to have revenueraising powers with proper auditing, where local councils can actually help be a part and raise funding to
Aviation chief targets Abaco year-end air arrivals rebound
By FAY SIMMONS
THE Government’s aviation chief yesterday said Abaco’s higher-spending air arrivals are still 12 percent down on pre-Dorian’s 2019 numbers as the island’s revival from the devastating storm progresses.
Dr Kenneth Romer, also deputy director-general of tourism, told the Abaco Business Outlook conference that the World Tourism Organisation had predicted Abaco’s tourism sector would not recover until 2027 but current indicators suggest it may achieve this by year-end.
“At the end of 2019, Abaco’s total air numbers for the first six months was about 76,000. We saw over in 2023 the numbers were about 57,000, far off from 2019. As a matter of fact, it’s about a 24 percent decline. So, at that time, Abaco’s recovery was about 75 percent,” he said.
“At the end of the first six months in 2024, Abaco’s numbers stood now at about 67,000, trending now about 12 percent behind where you were in your best year at that time, 2019. We predict now that by the end of this year, Abaco is going to be in single digits when it comes down to your overall recovery for air arrivals.”
Dr Romer said current trends indicate there is a significant demand for Abaco, and visitors are now returning and sharing positive reviews about the
island. “Obviously there is significant demand for Abaco,” he added.
“Persons are coming back, and it’s more than just the sympathisers of Dorian. These are persons who are now returning, and these are your loyal visitors to Abaco who are speaking about your brand, those who are speaking about what they can do to help Abaco.
“Abaco will not wait until 2027 for full recovery. As a matter of fact, we’re going to push it so heavy. We believe that Abaco is positioned for full recovery for airlift probably by the end of 2024, we’re doing all we can to make that happen for Abaco.”
Dr Romer said the Department of Aviation has introduced “innovative” forms of airlift to Abaco
NOTICE
INTERNATIONAL BUSINESS COMPANIES ACT, 2000 THENOS CORP (IN VOLUNTARY LIQUIDATION)
NOTICE IS HEREBY GIVEN that in accordance with section 138(4) of the International Business Companies Act, 2000, as amended, THENOS CORP is in dissolution.
The dissolution of the said Company commenced on September 16, 2024, when the Articles of Dissolution were submitted to and registered with the Registrar General in Nassau, The Bahamas.
The sole liquidator of the said Company is Kim D Thompson of Equity Trust House, Caves Village, West Bay Street, P O Box N 10697, Nassau, Bahamas. Kim D Thompson Sole Liquidator
Incorporated under the
Companies Act, 2000 of the
of
number 201374 B (In Voluntary Liquidation) Notice is hereby given that the above-named Company is in
commencing on the 18th day of September A.D. 2024. Articles of Dissolution have been duly registered by the Registrar. The Liquidator is Mrs. Gilda Maria Santos Macedo, whose address is R. Maestro Elias Lobo 764 Jardim Paulista, São Paulo, São Paulo, Brazil. Any Persons having a Claim against the above-named Company are required on or before the 19th day of October A.D. 2024 to send their names, addresses and particulars of their debts or claims to the Liquidator of the Company, or in default thereof they may be excluded from the beneft of any distribution made before such claim is proved.
Dated this 18th day of September A.D. 2024.
GILDA MARIA SANTOS MACEDO LIQUIDATOR
such as sea planes and helicopters to attract high value visitors to the destination.
“We are really working to see how the airlift numbers could match pre-Dorian, and then we will have a strategy now to exceed those numbers by some innovative methods and approaches to airlift, inclusive of amphibious airlift,” said Dr Romer.
“You’re looking at the sea plane landing and also a vertical airlift, your helicopter landing, that takes you into Baker’s Bay and it’ll bring a great set of value clients to Abaco.”
Dr Romer said the new $177m Heads of Agreement for the redevelopment of Treasure Cay includes the development of the island’s airport, and the Government is entering a private-public partnership (PPP) for the $10m expansion of the Leonard
Thompson International Airport.
“The new Heads of Agreement with GreenPointe holdings, we’re already engaging them about the development of an airport in Treasure Cay and also an FBO (fixed base operation),” said Dr Romer.
“We know the IDB, again, had allocated funding for airside improvements, but that was prior to Dorian. That’s how long we’ve not used the loan.. We are looking also at the expansion of the existing Leonard Thompson International Airport. We’ve gone out to market March of last year and proposed the $10 million capital expenditure under a PPP arrangement.”
Dr Romer said the Airport Authority will also conduct “short fixes” to the airport until the PPP
NOTICE
ARPL INVESTMENTOS LTD. (In Voluntary Liquidation)
Notice is hereby given that the above-named Company is in dissolution, commencing on the 11th day of September 2024. A1iicles of Dissolution have been duly registered by the Registrar. The liquidator is AMICORP BAHAMAS MANAGEMENT LIMITED, of Nassau, Bahamas.
Dated this 18th day of September 2024
AMICORP BAHAMAS MANAGEMENT LIMITED LIQUIDATOR
arrangements have been finalised.
“The Airport Authority has been given a mandate to go and do a complete revision for the small, low hanging fruit at the airport,” said Dr Romer.
“The doors can’t close, the floors are sweating, that becomes now a deterrent to those who are traversing your major port of entry. We are allocating resources to allow for short fixes to the Leonard Thompson International Airport. But, at the same time, have mobilised a comprehensive plan under a PPP arrangement to address ongoing development in Abaco.”
Dr Romer said Abaco is the boating capital of the
help out their communities where our central government might lack funding sometimes.”
Mr Sweeting said a private-public partnership (PPP) aimed at constructing 56 miles of asphalt roads including sea walls, draining and road markings from Marsh Harbour to Sandy Point, will be signed shortly.
“There are also future works in the pipeline for Abaco, where the Ministry of Works has received a proposal for extensive road rehabilitation and safety improvements in South Abaco,” said Mr Sweeting.
“This PPP aims to restore and construct approximately 56 miles of asphalt roads, including safety
Bahamas, and local businesses should capitalise on that and work to make Abaco the boating capital of the Caribbean.
“Abaco really is the boating capital for The Bahamas and you really have to capitalise on that,” said Dr Romer.
“Each island has its own set of unique attributes. Abaco cannot be a jack of all trades. You’re doing very well now when it comes to boating, and I think you’ve got to drive that. You have to really make Abaco not just the boating capital in the in The Bahamas, but you’ve got to now start going after making it the boating capital in the entire region, so you’ve got to think big picture.”
Airline warning: ‘We’re being taxed to death’
continued: “Fees. We are being taxed to death. It would be nice to bring you as many as we can, and everyone wants affordable lift, but when I have to pay the same landing fees and same Customs fees for my plane as American Airlines for a 100-seater it’s kind of imbalanced.”
The Aztec Airways chief was backed by the national flag carrier’s chief executive, with Mr Cooper also identifying the level of taxation at all stages of the tourism process - from airlines to the airports and the hotels - as the top concern for Bahamasair.
“It’s just what you’ve spoken to already. Obviously, the taxes not just on the air side but also on the land side, the hotels etc,” he said. “I tell everyone that Abaco probably has the best airport outside of Lynden Pindling International Airport (LPIA). The infrastructure is there, the runway is nice, and there’s the ability to land at almost any time which is not something you get at many airports around The Bahamas.
“The real issue is just the affordability. I was talking to my colleague who is in charge of the charter section over there, and she was putting together a quote for a charter which was about to
go from Nassau to Aruba. It was $100, $104 to be exact, for each passenger for taxes along with what we have to charge.
“Sometimes it puts a bit of pressure on our pricing structure. We have to be a bit less aggressive in pricing than we would like to be because of the overall price tag to the consumer. They may be going some place else rather than coming our way. I’m being real cautious here. I work for the Government myself. It’s something we have to look at.”
Recent Customs inbound and outbound fee increases, as part of reforms introduced with the 2024-2025 Budget, have already provoked uproar among the private aviation industry. Mr Fountain yesterday warned that these airline and aviation-related fees, especially if there are increases, are almost inevitably passed on to passengers in the air fare which, in turn, raises tourist costs to access this destination.
“Let me explain and to you all and ask the tourism folks,” the Promotion Board chief said. “When we so a SWOT analysis for The Bahamas - strengths, weaknesses, opportunities and threats - the number one strength with The Bahamas is proximity.
“You would think ,like a taxi cab, you’d hop in the
cab and the ride is shorter, so you pay less. It actually costs more to fly from Fort Lauderdale to here than it costs to fly from Fort Lauderdale to Puerto Rico. Sometimes to Cayman, sometimes to Cancun. Does that make any sense?”
Mr Fountain attributed the relatively high air fare costs to the taxes built into passenger tickets. While US taxes were included in this, he pointed out that Bahamian-related taxes also account for a significant share of these costs.
“You have to look at the ticket you buy,” he added. “If it’s $250m, do you know how much of it is taxes?
A lot of it is US taxes, but there’s also our taxes. And, to compound the problem, do you know how cheap it is to get here now on a cruise? I’m sharing all of this because you all need to know.
“So when we start talking about these record-breaking numbers who do we want? Do we want a cruise visitor who spends $110 or $80, or someone who spends $2,500 and stays four or five nights? You see, that’s the business of tourism. When we talk about fees, that’s how important it is. We have to convert our proximity into affordability. That’s the challenge.”
The Bahamas is increasingly viewed as a high-cost, high-end tourist destination
that has priced itself out of several travel segments including mid-market tourism. Hotel owners and operators, though, will argue that they have no choice but to target the market’s top end otherwise they would be unable to achieve a profit due to this country’s relatively high electricity and labour costs.
Meanwhile, other airlines servicing The Bahamas yesterday revealed their greatest challenge is often the lack of co-operation they receive from key government agencies - especially Customs and Immigration. Esmond Johnson, Silver Airways’ regional manager, said the carrier has been “working through challenges” of encouraging officers to remain at their stations for an extra hour when a flight is delayed.
“It comes down to sometimes airport staffing,” he explained. “We do have a challenge from time to time with some of our business partners, some agencies in terms of supporting the operation whenever there are irregular operations. That is something we have been working through.”
Confirming that Silver Airways has sometimes had to “involve” Dr Kenneth Romer, deputy tourism director-general and aviation director, to resolve these woes, Mr Johnson
confirmed that the agencies he was referring to were Customs and Immigration.
“That’s one of our major challenges from time to time,” he added.
“We all want the airlift. Airlines are being asked to increase their frequency and add more routes. We also need our business partners on the ground to help support those operations. The aviation business is one with many challenges and intricacies.
“There are many things that can cause delays and can cause diversions, like I said, irregular operations. From time to time, whenever you are a little off schedule, you may have a situation where there are certain agencies that may not want to remain in place in support of the operation,”
Mr Johnson continued.
“We don’t want to cancel the flight, so we have to try to do our best to work with those partners to say we need to bring this aircraft in, we have ‘x’ passengers on board, we have people waiting to depart, can you stay an extra 30 minutes or extra hour to support the operation? We’ve been working through it and it seems to be getting better, but it’s a challenge.”
Patricia Summerfield, director of sales and partnerships at Tropic Ocean Airways, told the panel
discussion that the carrier has been receiving increasing push back from Customs over its requests for landing permission for its seaplanes at various locations in the Abaco cays.
“Separate from scheduled service, and Dr Romer I was going to talk to you about this, it’s been accessibility,” she said of Tropic’s greatest Bahamian challenge. “For those who don’t know, we have a fleet of 14 aircraft and a lot of those are seaplanes, amphibious, so they can land on the runway or in the water.
“Historically we’ve been able to land with no issues, and Customs has come out to meet us on-site, and now it seems other than Baker’s Bay most of the time Customs is pushing back and says we need landing permission. We’ve searched for several locations throughout the Abaco cays but it just takes a bit of time.
“We want to offer that direct route. That’s why they’re taking a seaplane and they don’t want to have to stop for Customs because why are they paying extra money to land right there? That’s the biggest challenge so far.” Ms Summerfield said Tropic’s ambition was to build tourism without building runways via its amphibious fleet.
Let’s say, for example, on the transmission lines, it is indicated that we’ll have at least a 50 percent savings that we should see passing on to consumers. That is the representation. For example, we want that as a KPI (key performance indicator) if that is not achieved. There ought to be consequences.
“Those are some of the details we are talking about that are across all of the gamut of this arrangement. So, we’re making sure that whatever we do at the end of the day it is the Bahamian people and the consumers that are benefiting,” the Prime Minister continued.
“So those details are still being worked out. Hopefully by next week we should be able to indicate that it has been done and,
in the appropriate time, we will be, of course, making sure that the details that are required to the public will be made public.”
Mr Davis added that he would have “no objection” to tabling the agreement with Bahamas Grid Company in Parliament, adding:
“We have no objection to doing that. I could do that.”
The Government itself holds the remaining minority 40 percent ownership interest in Bahamas Grid Company, which it gained by contributing BPL transmission and distribution assets valued at $100m. While most would view the present BPL and energy industry status quo as untenable, especially if the Government’s reforms deliver the promised consumer savings and improvements, questions
remain over the deal with Bahamas Grid Company and its manager, Island Grid, which have hired USbased Pike Electrical to lead the grid upgrades. Eric Pike, Pike Electrical’s chair, is also an Island Grid and Bahamas Grid director. The concerns include the Government’s decision not to put the grid deal out to competitive bidding, which means it cannot be certain that it has obtained the best possible arrangement, especially given that this is a generational deal given the 25-year lease that Bahamas Grid Company will obtain with an option to renew for a further ten.
Bahamas Grid Company’s owners have obtained their 60 percent equity interest with a combined investment of $30m, compared to the $100m of assets contributed
by the Government for its 40 percent minority interest, leading some observers to argue that the size of each group’s stake should be the other way around with the latter in the majority.
Queries have also been expressed over why the Government has elected not to go with a simple management agreement, or build, own, operate and transfer (BOOT) arrangement, that would see Bahamas Grid Company hand the transmission and distribution network back to BPL at no cost when its lease has expired.
Instead, the Government can buy it back at ‘fair market value’, which some persons have likened to a so-called ‘poison pill’ designed to deter future administrations from seeking to unwind the deal, because it will never have the financing to fund this.
The Prime Minister indicated that the transmission and distribution network reforms will not cost Bahamian taxpayers or require a government guarantee, whereas it would have “put more pain” on the public purse had his administration elected to finance BPL’s combined $500m new investment needs itself.
“The amount of finances that’s required to transform BPL was not within the remit of this government in the context that, if the Government decided to go that route, we may have to look at how we increase taxes to the Bahamian people to pay for what we have to do,” said Mr Davis.
Mr Davis, though, defended the decision to transfer BPL’s grid assets to Bahamas Grid Company as opposed to contracting Island Grid and Pike Electrical on a management services contract to upgrade the transmission and distribution network. He signalled that the deal, which is effectively privatising New Providence’s electricity grid, had to be structured this way to make it attractive for private capital.
“We met BPL with a $500m legacy debt. To transform the transmission and distribution, and the other savings that is required, will need probably another $400m so we’re looking at near a $1bn investment. The way to do that is we have to bring in partners so as not to be able to put more pain on the Bahamian people through taxes, and we were able to negotiate that position.
“What we have done is we have gone into a partnership with Pike, and we have developed a partnership where the Bahamian people will be a part of that as well. We are headed to transfer the transmission and distribution to a special purpose vehicle that will own that transmission and distribution, but that ownership would still be with
BPL. Other Bahamians will invest in that special purpose vehicle.”
Mr Davis said it is “disappointing” that BPL union leaders say they still have concerns related to the deal, and sought to reassure them that no jobs will be lost in the process and that the benefits and working conditions in their industrial agreements are safe.
“It is rather disappointing that we continue to hear these sorts of concerns when both union executives have been assured in meetings before that they need not be concerned about their workers, as we intend to ensure that we live up to our industrial agreement that workers jobs are secure, and there’ll be no change in their arrangements,” said Mr Davis.
“They will have a choice to go to this, the special purpose vehicle, or remain at BPL. And if they go there, and there’s some concerns about whether they want to be there, the door will be open for them to go back.
“Those details, I know that the minister [Jobeth Coleby-Davis] has agreed to have a transitional team that will meet with the units and address any of those issues. But they are assured that they need not be concerned about their job security, or whether or not provisions agreed upon in industrial agreements will be complied with.” PM:
COURT TO BANK: HAND OVER DEBTOR EX-MP’S $63,000
However, the ex-MP and former Supreme Court judge had at that time failed to disclose the existence of any of his CIBC Caribbean (Bahamas) bank accounts or the sums they contained.
Dr Fuchs and his Callenders & Co legal team, headed by Dawson Malone, then obtained a Production Order requiring the commercial bank to disclose the account details.
They subsequently obtained an interim third party debt order from the Supreme Court on December 8, 2023, against the bank.
CIBC Caribbean ultimately produced details on the type and number of accounts they held for Mr Lockhart and his law firm, along with the balances they contained.
“The bank confirmed that the debtors have approximately $119,886.03 in all accounts held by the bank,” Justice Fraser noted as she moved to consider whether
the “interim” third party debt Order against CIBC Caribbean should be made a final one.
CIBC Caribbean reported that it held four accounts in Mr Lockhart’s name and an equal number under that of his law firm, with one final facility associated with an entity called Cyclops and containing a $10,897 loan. The nine account balances ranged from a low of $400.17 to a high of $94,156.
However, Dena Feaste, in an August 14, 2024, affidavit on behalf of the debtors alleged that not all the $119,886 was Mr Lockhart’s property. Separate affidavits from Trudy Reid Ford and Ricardo James Morley, filed at the same time, alleged they had transferred $10,000 and $7,840 to Mr Lockhart, respectively, in connection with legal matters where he was representing them.
Mr Morley’s payment was said to represent VAT due to the Public Treasury on a
Minister backs calls to ease building red tape
features like sea walls, drainage and road markings. The project will focus primarily on the southern region of Abaco, stretching from Marsh Harbour to Sandy Point, and be spearheaded by a Bahamian incorporated company, backed by experienced local contractors.”
Mr Sweeting said $8m in road and water works for Sweeting’s Village has been budgeted in the current 2024-2025 fiscal year, while Central Pines will gain $6.5m of roadworks.
“For the major hub, Marsh Harbour, we have an upcoming project for the Sweeting Village community,” said Mr Sweeting.
“This project will replace the existing roadways with
hot mix asphalt and include the installation of new water lines. This project will ensure that we put the water in first before we pave the roads. This is included in the 2024-2025 Budget at an estimated cost of approximately $8 m.
“In Central Pines, the ministry has prepared a project package to address a reconstruction of roughly seven miles of roadway at approximately $6.5m. Actually, I signed the tender report for this project yesterday, so the contract should be awarded within the next few weeks, and you will see the contractor on the ground in Central Pines to start to pave all of the roads there in that area.”
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL
The Public is hereby advised that I, LETISHA DANIELLE RAHMING of the Island of Freeport, Grand Bahama, Bahamas, intend to change my child’s name from ETHAN VALENTINO RAHMING to ETHAN VALENTINO GREEN If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Offcer, P.O. Box N-742, Nassau, New Providence, Bahamas no later than thirty (30) days after the date of publication of this notice.
NOTICE
NOTICE is hereby given that ALEXANDERA OLIUS of Caspen Road, Soldier 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 13th 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 WALKINGS ZAMOR of Bacardi Road, New Providence, Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 20th day of September, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE
NOTICE is hereby given that JASON TELAMOR of Market Street, Coconut Grove Avenue, New Providence, Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 20th day of September, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
real estate deal. However, Justice Fraser said his affidavit “merely provides that Mr Morley retained Elliott Lockhart KC to assist him in a real estate transaction. An agreement for sale and closing statement is exhibited. However, no numerical value has been evidenced confirming what amount of funds was sent to Mr Lockhart KC”.
However, another purported client, Ludell Wright, said she had transferred a further $8,000 to Mr Lockhart. And Ms Feaste alleged that some $66,118 represented “settlement proceeds due from the Attorney General’s Office to another client, Rodney Livingstone Forbes.
As a result, she argued that a total $94,074 or 78.5 percent of the total should be excluded from any payout to Dr Fuchs because these were monies belonging to third-party clients that Mr Lockhart was holding n trust for them.
Justice Fraser said that despite objections from Dr Fuchs and his attorneys it was clear a collective $17,000 of the near-$120,000 belonged to Mr Lockhart’s clients. “The creditor’s counsel valiantly attempted to debunk the aforementioned evidence and challenge its credibility,” she ruled.
“I accept, in part, the challenges contained in the submissions. However, the debtor has evidenced that certain funds in the account - which the creditor seeks to have taken out of to satisfy
the debt - are funds which belong to innocent third parties who are not before the court.”
She did, though, reject Mr Morley’s claim to $7,840 as there were no receipts or invoices to prove had had paid it. As for the $66,118 alleged to belong to Mr Forbes, the acting chief justice wrote: “There was no wire transfer confirmation from the opposing side or any account number evidencing that such funds were sent as a settlement for Mr Forbes’ matter. In the premises I do not accept this evidence.
“Furthermore, the e-mail which the debtors seek to rely on to prove the settlement proceeds were sent is from 2020, which is before the Freezing Order came into effect). This court finds it difficult to accept that settlement proceeds for a client remained in an attorney’s client account for years.
“In my view, that is highly unlikely. I thus reject this - as evidencing any such settlement proceeds in the debtors’ bank account on behalf of Rodney Livingstone Forbes.” However, Justice Fraser found there was sufficient evidence to prove Trudy Reid-Ford and Ludell Wright had transferred $9,000 and $8,000, respectively, to Mr Lockhart and these sums should be excluded from Dr Fuchs’ recovery.
“I shall exclude the $17,000 from the total $119,886.03 held by the bank on behalf of the debtors,
NOTICE
NOTICE is hereby given that MILANDE PETIT-DE of Nassau Village, New Providence, Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 20th day of September, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
representing funds belonging to third innocent parties. Accordingly, I shall make the appropriate order to ensure that such funds are not affected by the final debt order,” she added.
“With respect to the debtor’s submission that under the Freezing Order he is permitted to withdraw $1,000 per week for his ordinary living expenses and it has been approximately 40 weeks since the Freezing Order was in effect - resulting in $40,000.00 being owed to [Mr Lockhart] - such funds will be kept on account to ensure compliance with the Freezing Order.”
And Justice Fraser also pointed out: “The sum total in the debtor’s bank accounts is thus $119,886.03. Though the funds in the aforementioned accounts do not satisfy the debt in their entirety, the creditors are at liberty to pursue the debtors further to recover the outstanding judgment debt.
“It is unclear if the debtor has any other accounts or other financial means. However, based on the evidence or lack thereof from the debtor, I am unaware of any financial hardship/insolvency that would follow if I make a Final Third Party Debt Order... There is no affidavit evidence demonstrating that the debtors would be insolvent if the Third Party Debt Order is made final.”
Dr Fuchs and his attorneys have already moved to seize other assets belonging to Mr Lockhart. The Supreme Court has reviewed,
approved and signed off on a so-called ‘fieri
cation that authorises court officers such as the provost marshall to seize assets and chattels belonging to persons who have failed to pay Supreme Court judgment awards imposed against them. The $3.033m debt represents the sum paid to Mr Lockhart over a real estate transaction involving an Exuma-based property. When the deal fell through, Dr Fuchs asked the ex-judge to return the funds, which should have been held in escrow in his law firm’s client account, but the latter allegedly failed to do so. Mr Lockhart’s current whereabouts are unknown although he is thought unlikely to still be in The Bahamas. Back in June 2024, he was the subject of an Interpol ‘red notice’, which is a worldwide alert issued to all law enforcement authorities, asking them to help locate, and provisionally arrest, the former MP and ex-Supreme Court judge who was once chairman of Nassau Flight Services, the Gaming Board and the Police Inspectorate. Prior to the Interpol action, the Royal Bahamas Police Force in early 2024 had issued a ‘wanted poster’ for Mr Lockhart after Dr Fuchs lodged a criminal complaint against him. The Interpol action also revealed that other aggrieved investors were making similar allegations to those asserted by Dr Fuchs. Mr Lockhart is represented by attorney Norwood Rolle.
NOTICE
NOTICE is hereby given that GERLIN LEONCE of Governor’s Harbour, General Delivery, Eleuthera, Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 20th day of September, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
BPL ‘pretty confident’ on record Abaco demand
FROM PAGE A24
“the reliability and integrity of the system you enjoy”. He also revealed that BPL is seeking “strategic partners” on Abaco’s cays who can provide “emergency response” and temporary repairs to keep the power on until full work crews arrive.
Disclosing that BPL’s Abaco customer base is now less than 2,000 away from pre-Dorian levels, the chief executive said: “When we talk about the growth in Abaco, pre-Dorian we were at 9,900 customers. Just yesterday, when I checked, we were at about 8,000.
“That is what we have been told; that Abaco is 75 percent to 80 percent back, and we are already there. So our forecasting is showing us that, by the end of next year or by next summer we can expect there will be about 10,000 customers.
“Our pre-Dorian load peak was 27.5 MW. I think our peak so far this year was 21.5 MW. Our forecasting is showing us that we are going to need about 30 MW of capacity for next summer. That being said, we have about 48 MW installed at Wilson City, of which about 36 MW is active right now,” Mr Cambridge continued.
“We have another 8 MW at Marsh Harbour power station. We are just starting the renovations there, and we are hoping to see those 8 MW available by next summer. Between that and what we have at Wilson City, they give us about 56 MW in generation for what we expect to be a 30 MW load.”
Roscoe Thompson, chairman of the Marsh Harbour/ Spring City Township, said that based on Mr Cambridge’s figures it appeared that one of BPL’s largest units - capable of producing 12 MW - was out of service as he challenged whether it will be returned and in service in time for summer 2025.
The BPL chief executive, in response, assured that it would be as he pledged: “We intend to be ready for next summer.” Confirming that the 12 MW generator is suffering from a “long-term outage”, he added that BPL throughout its network has been challenged by long lead times and the wait for parts due to supply chain shortages and backlogs stemming from the COVID-19 pandemic.
“When we plan, we plan based on an ‘n-2’ safety factor. We can lose two of our largest engines and still be able to meet demand,” Mr Cambridge said. “The two largest engines, being 12 MW each, that will allow us to lose 24 MW and still have 34 MW available and that does not include back-up power on the cays. Tribune Business calculations, though, put the latter figure at 32 MW - just above projected demand.
However, the BPL chief asserted: “We’re pretty confident that we’ll be able to meet the load.” He added that a 10 MW renewable energy project, developed by the private sector and based on solar photovoltaic
(PV) power with back-up liquefied natural gas (LNG) and battery energy storage, is expected to come online in Abaco within 18-24 months as part of the Government’s energy reforms. Mr Cambridge, though, disclosed that BPL’s Abaco transmission and distribution network is being increasingly challenged by outages caused by lightning strikes. With the island’s forests still recovering from Dorian, he added that lightning was finding its way to the ground through BPL’s poles.
“The reality of it is we are transmitting power 60 miles each way out of Wilson City on an island where the only thing standing now are our poles,” he asserted. “If you know anything about lightning, lightning tries to find the quickest path to the ground. We’ve been analysing our forced outage reports and are finding most of our outages in Abaco are as a result of lightning.
“Unfortunately, until the forests come back that’s going to be a problem that we have. So, one might ask what are we doing to address that? What we are now doing is that we are putting in more ground wires on our static lines. Where we had one every ten poles, we’re going every three poles to try and direct that lightning to the ground.”
However, BPL’s efforts in this area have encountered human disruption.
“It pains me to say it, but unfortunately when we do it with copper individuals see that as an opportunity to make money,” Mr Cambridge said. “So we’ve had copper theft and moved to other materials that are not as efficient as copper.
“So, if there’s one thing that the community can do it is to please, if you see it, report it, because it’s hurting the reliability and integrity of the system you enjoy.” The BPL chief added that he was often asked why the utility does not place more of its infrastructure underground, but said this is three times’ more expensive than installing traditional overhead lines.
Noting that persons were building back bigger from Dorian, with what were once 1,000 square foot homes in the Abaco cays now becoming 5,000 square foot homes, Mr Cambridge said BPL is also exploring ways to minimise outage times and effect repairs more rapidly.
“We’re looking to identify strategic partners on the various cays who we can train to be able to provide some emergency response; not a full-fledged response but somebody who may be able to go out at night a refuse a line for us,” he explained.
“So you don’t have to wait until morning until the crew gets there. When we dispatch a crew from Marsh Harbour to Crown Haven or Sandy Point it takes two hours for them to do that, so if we can identify individuals in those locations who can assist us in that regard. These are the types of things we are doing.”
