Water Corp price rises, private wells tax
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A CABINET minister last night said “no formal decision” has been taken on Water & Sewerage Corporation proposals to increase consumer prices or impose taxes on homeowners with private wells.
Leon Lundy, minister of state in the Prime Minister’s Office with responsibility for the Corporation, in a messaged reply to Tribune Business inquiries said these recommendations - contained in its 2023-2028 Corporate Business Plan - as well as associated proposals from the Inter-American Development Bank (IDB) are “in the early phases” of being considered by the Government.
He confirmed the proposals are accurate, and genuine, after this newspaper obtained an IDB document, dated May 24, 2024, and released earlier this month on September 6, which revealed that an increase in consumer water rates as well as new and/or increased taxes for homes with private wells are included within the Corporation’s plan.
‘Married women’
By NEIL HARTNELL
Editor
THE Acting Chief Justice is urging Parliament to “do everything in its power” to reform a 140 year-old law designed to protect married women and “cure” uncertainties that could spark increasing legal disputes.
Justice Deborah Fraser made her plea after ruling in favour of three life insurance policyholders in their separate disputes with Family Guardian over the BISX-listed carrier’s refusal to let them change the policy beneficiaries following deaths in their families.
Mertis Archer, Pamela Russell and Almanda
nhartnell@tribunemedia.net
THE Water & Sewerage Corporation sucked up $55m in Bahamian taxpayer subsidies in 2022 to help cover a -$31m negative operating margin that had more than doubled over a 12-year period. An Inter-American Development Bank (IDB) document, detailing a total $100m project loan to finance the latest overhaul of The Bahamas’ water and sanitation systems, reveals
The report, outlining steps to modernise and overhaul the legal and regulatory regime that governs the Bahamian water industry, also discloses that among the Corporate Business Plan’s recommendations are to impose taxes on reverse osmosis plants that companies use for self-supply; increase Customs duties on equipment for private wells; and to mandate that all businesses have “an active water connection”.
Noting that draft legislation to reform water industry regulation was readied in 2016, but never moved forward after the Minnis administration
was elected to office, the IDB report said: “With the passage of time, adoption of and changes in government objectives, some of the recommended language in the draft legislation prepared in 2016 needs to be updated and modified to meet the current requirements.”
This, it added, involved “the following items identified in Water & Sewerage Corporation’s corporate business plan for 2023-2028”. Among these are proposals to “set Water &
law reform call over FamGuard dispute
Clarke all sought adjustments after originally-selected beneficiaries pre-deceased them, but Family Guardian asserted that it was prevented from effecting these changes for all three by section seven of the Married Women’s Property Act 1884. This stipulates that the payout from any life insurance policy taken out by a husband and wife, with their spouse and/or children listed as the beneficiaries, goes into an automaticallycreated “statutory trust” that is kept separate from the insured’s estate upon their death.
that over the same 12-year period the Corporation’s staffing costs increased by 52.6 percent or $10m - surging from $19m to $29m.
Detailing the stateowned water provider’s “low operating efficiency”, with consumer tariffs set below what it costs to supply them with water, the report reveals that the $100m IDB financing will account for 42 percent of the Water & Sewerage Corporation’s total $239.4m capital investments planned for the period between 2023 and 2028.
That spans the utility’s new corporate business plan, which has yet to be publicly disclosed, but the IDB document seen by Tribune Business asserts the upgrades to be financed by the multilateral lender will benefit some 65,000 households - around
Taxi ‘price gouge’ fear over gas margin rise
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Bahamas Taxi Cab Union’s (BTCU) president is voicing fears that the imminent margin increases granted to petroleum retailers may force some drivers to “price gouge” once again.
Wesley Ferguson told Tribune Business that the margin rises, which Prime Minister Philip Davis KC last week confirmed have been approved, will “eat into tremendously” the recent 10 percent fare increase granted to drivers by the Government given the high volume of fuel they require to operate.
While not criticising the petroleum retailers for their advocacy efforts, he argued that “getting an increase on the back of someone else” was not the best way to address that sector’s concerns as he called for taxi drivers to be given a discounted rate on their fuel purchases.
Acknowledging that some may view his comments as “over the top”, Mr Ferguson told this newspaper that the margin increase impact has to be viewed in the context of already-high costs to operate a taxi in The Bahamas. He pointed to the need for a public service driver’s licence, BahamaHost training and multiple vehicle inspection stickers as just some of the expenses that taxi drivers and owners grapple with regularly, as well as higher insurance and maintenance costs and the need to replace vehicles on a regular basis.
Speaking after it was confirmed that petroleum dealers will shortly enjoy 25 cent and 16 cent increases in their per gallon gasoline and diesel mark-ups, respectively, Mr Ferguson told Tribune Business: “That will have a very negative impact on the taxi drivers. That will be, in essence, taking back the 10
‘URGENT ALERT’ FOR NIB ON WIDENING BENEFITS GAP
By NEIL HARTNELL
THE widening gap between benefit payouts and contribution income is an “urgent alert” for National Insurance Board (NIB) reform, a multilateral lender is warning, as it urges cuts in administrative costs.
The Inter-American Development Bank, in its latest Caribbean Quarterly Bulletin report, praised The Bahamas for seeking to place NIB and civil service pensions “on the right track” by implementing the initial stages of pension reform given the growing signals that the present circumstances for both are unsustainable.
In particular, it noted that prior to the 2008-2009 global financial crisis, NIB’s total contribution income from both employers and employees was equal to 1.05 percent of Bahamian economic output and outpaced benefits at 0.86 percent of
gross domestic product (GDP).
However, the IDB report said the financial crisis represented an “inflection point” for the Bahamian social security system as annual benefits paid out have exceeded contribution income ever since. And the gap has been widening ever since, growing from 0.1 percent of GDP in 2010 to 0.15 percent of GDP in 2014 and 0.4 percent in 2019.
“In response to the COVID-19 pandemic, as expected, the gap increased further, reaching around 1 percent of GDP in 2020 and 2021,” the IDB document said. “Although the gap seems manageable, it poses an alert about the lack of sustainability of NIB and signals the urgency to adjust the scheme.
“This is relevant, considering not only that its sustainability will be further constrained by the compromising demographic trends, but also by the challenges inherent to the system characteristics.” The
Government has already moved to start addressing NIB’s challenges by increasing the overall contribution rate by 1.5 percent with effect from July 1 this year, splitting the burden 50/50 between employer and employee.
The increases raise the employer and employee contributions by 0.75 percentage points each. The employer contribution will rise to 6.65 percent from the existing 5.9 percent, while that for employees will grow from 3.9 percent to 4.65 percent, as the total rate jumps to 11.3 percent.
But financial studies, known as actuarial reports, state this contribution rate is still too low to ensure NIB’s medium and long-term survival and prevent the $1.5bn reserve fund from being depleted in 2028 as predicted.
“An increase of the contribution rate by 2 percent (over the existing 9.8 percent) every two years starting on July 1, 2022, and ending on July 1, 2036,
could restore the short and medium-term financial sustainability of the scheme,” the last NIB actuarial report said.
“Starting in 2029, the required annual contribution rate to pay for all expenditures becomes the pay-as-you-go (PAYG) rate. As an illustration, the contribution rate will have to increase from 9.8 per cent to 16.9 per cent in 2029, and will reach 32.3 per cent in 2078.”
This is further than the Government wants to go at present, with the next NIB rate increase decision due in 2026 based on the two-year cycle, which is likely to be a general election year. As a result, any further NIB rate rise decisions are likely to be deferred until after the general election.
The IDB report, meanwhile, recommended that The Bahamas’ tackle NIB’s relatively high administrative expenses which, at 24.37 percent of contribution income in 2021, are more than double all other Caribbean countries. The next highest, according to the sample, was Guyana at 9.61 percent of contribution income, while Barbados and Jamaica were at 5.63 percent and 3.94 percent, respectively.
“Higher administrative costs imply fewer resources available to pay out benefits. The Bahamas has the highest proportion of administrative expenditure as a share of contribution income at 24.37 percent, double the share in Guyana, which is the next highest,” the IDB study said.
“Caribbean pension funds are limited by (dis)economies of scale and, therefore,
unfortunately, administrative costs are particularly high. While scale almost inevitably drives up administrative costs per beneficiary, data show that the degree of administrative efficiency varies substantially across Caribbean countries.”
Successive administrations, though, have always argued that The Bahamas unlike all other Caribbean nations is an archipelago with numerous populated islands. As a result, it has to replicate NIB and other government and public services on multiple islands, which drives up administrative costs. It is now focusing on technology as a means to reduce this.
However, NIB was found to have relatively generous pension payouts - standing at an average $297 per month - that are more than double what the IDB identified as the international poverty line. Only Barbados was shown as having a more generous social security system with its benefits as a percentage of the international poverty line standing at 149.6 percent compared to The Bahamas 106.1 percent.
“While payment levels in The Bahamas, Barbados and Guyana exceed the poverty line twice over, programmes in Jamaica and Suriname fall significantly below it. In Trinidad and Tobago, the Senior Citizens Programme provides a range of benefits that can go above or beyond the poverty line, since the benefit varies depending on existing sources of income of the prospective beneficiary,” the IDB report said.
“In terms of adequacy, the monthly benefits of social assistance pensions have
consistently remained above the purchasing power parity (PPP) poverty line of $6.85 per day, as defined by the World Bank, which amounts to PPP $205.50 monthly,” it added of The Bahamas.
“Since 2003, monthly benefits in terms of 2017 PPP dollars have increased modestly from around 110.5 percent of the poverty line to around 115.1 percent in 2021, suffering a sharp decline the last couple of years to 105.8 percent in 2023. In terms of the share of benefits with respect to monthly GDP per capita, the trend is modestly upward, reaching 9.9 percent in 2023 versus 9.2 percent in 2003.”
Noting that NIB’s contribution rates do not support the relatively high income replacement rates offered to retirees, the IDB report said: “This has led to important shortfalls, which states that, all things being equal, NIB funds will be depleted by 2028. It also prompted the recent increase in contribution rates, which has reduced the need for budgetary transfers to make up for the difference.
“Using the average wage of a formal sector worker who contributes continuously to the pension system from the time of reaching working age until the minimum retirement age, replacement rates in The Bahamas are around 58 percent, which approximates the Caribbean median....
“In The Bahamas, the rate of decline in current support ratios still favors gradual implementation of reforms rather than abrupt adjustments. Having said that, timely action is still important. Regarding the increase in NIB contribution rates, according to its last actuarial review, achieving sustainability of the NIB would require that contribution rates continue increasing in the coming years.
“The proposed schedule for rate increases is 1.5 percent every two years over the next 20 years.”
Union chief: Gov’t ‘gone rogue’ over civil service retiree hiring
By NEIL HARTNELL Tribune Business Editor
THE Bahamas Public Services Union’s (BPSU) president last night asserted the Government has “gone rogue” over rehiring civil service retirees as he hit back at concerns of a ‘hollow middle’.
Kimsley Ferguson, head of the union that acts as the bargaining agent for central government civil servants, told Tribune Business that the Davis administration is “blatantly disregarding the policies and procedures” that govern the promotion and movement of civil servants by bringing back so many retirees in senior positions.
Asserting that Pia GloverRolle, minister of labour and the public service was suggesting “incompetence” within the civil service, and this was the reason for the Government’s actions, he also denied that himself and the union have been consulted to-date on the public service salary review.
Mrs Glover-Rolle, in a statement at the weekend, said that an audit had uncovered what she described as a ‘hollow middle’ in the public service that the Government plans to fill through the training and promotion of suitablyqualified civil servants.
She added that the Government will continue promoting lifelong learning and continuous skills development to ensure public servants can meet the demands of a 21st century labour environment and develop leadership skills.
“When we audited the public service, we discovered a ‘hollow middle’ that we will fill through regularly scheduled promotions,” Mrs Glover-Rolle said. “To qualify public servants for these promotions, general training and education, as well as accredited leadership courses, will be vital in helping us with succession
planning and leadership development.
“This will enable us to end the practice of bringing back retired leaders for their expertise and institutional knowledge.” An unimpressed Mr Ferguson, though, argued that the implication retirees are being brought back to supervise civil servants lacking the required skills “could not be further from the truth”.
“The minister’s statement, regardless of how mild mannered it may appear, in actuality is really suggesting incompetence, which is insulting to the hard-working human resource professionals across the public service,” the BPSU chief blasted.
“The reappointment of retirees is an indictment on those very individuals who have previously occupied these positions, demitted office and failed to mentor or train replacements to assume their roles and to function in the positions they once held. At some point prior to vacating office thought should have been given to preparing others to carry on the functions of the public service and succeed them.”
Mr Ferguson is not the only public sector union leader head to voice concerns over the practice of rehiring civil service retirees aged over 65. Deron Brooks, the Bahamas Customs Immigration & Allied Workers Union (BCIAWU) president, told Tribune Business earlier this month that it is blocking promotion possibilities for existing civil servants.
“The Government has gone rogue, blatantly disregarding the policies and procedures that speak to the elevation and movement of staff in the public service,” Mr Ferguson charged. “The policies that speak to the reengagement of retired public officers are designed to protect the prospects of serving officers
and to ensure that the same are not prejudiced.
“The only time a retired public servant should be reappointed is when the vacancy cannot otherwise be filled, and should be on temporary terms or on short-term contracts, and should only be done if it is necessary to fill an essential post for which no likely candidate is envisaged for some time to come.”
As for the Government’s public service salary review, which is designed to ensure compensation and benefits are competitive with what is offered in the private sector, the BPSU president said: “Historically, I am unaware of any salary reviews or compensation studies implemented before they were totally completed.
“Apparently, the exercises have come to a screeching halt and the only public officers that have benefited from the said review is the permanent secretaries. The Minister of Labour and the Public Service in her press statement said that she has reached out to the president of the Bahamas Public Services Union in reference to the salary review.
“I wish to state emphatically that this statement is inaccurate and no discussions were held between the union and the Government in this regard. We have written to the minister, Pia Glover-Rolle and the permanent secretary, Gina Thompson, reminding them that the BPSU is the sole bargaining agent for public servants and that there should be no adjustments to
the terms and conditions of employment of members of our bargaining unit prior to consultation with the union.
“To date, we have not received a response. The Government’s behaviour towards unions is to be considered nothing less than union busting. If unions are to be considered partners then our relationship ought to be consistent if the intent is to foster harmonious labour relations.”
N O T I C E
IN THE ESTATE OF GEORGE BENJAMIN WATKINS late of Imperial Park in the Eastern District of the Island of New Providence, one of the Islands of the Commonwealth of The Bahamas, deceased.
NOTICE is hereby given that all persons having any claim or demand against the above Estate are required to send the same duly certifed in writing to the Undersigned on or before 4 November 2024, after which date the Administratrix will proceed to distribute the assets having regard only to the claims of which she shall then have had notice.
AND NOTICE is hereby also given that all persons indebted to the said Estate are requested to make full settlement on or before the date hereinbefore mentioned.
DELANEY PARTNERS
Attorneys for the Administratrix
Chambers P. O. Box CB-13007
Lyford Cay House, 5th Floor Western Road Lyford Cay New Providence, The Bahamas
KIMSLEY FERGUSON PIA GLOVER-ROLLE
AI governance vital to corporate futures
ARTIFICIAL Intelligence (AI) has transformed industries by improving decision-making, streamlining operations and enhancing customer experiences. The risks associated with AI, however, are also substantial. This is evidenced by the fact that AI takes centre stage (28 AI exhibitors and 4 AI-themed professional sessions) at international professional conferences such as the ACAMS Assembly in Las Vegas.
The ACAMS Assembly in Las Vegas is a leading anti-financial crimes (AFC) and anti-money laundering (AML) conference that this columnist is currently attending while writing this article. Companies operating in, or doing substantial business with, European Union (EU) companies must prepare for strict extra-territorial compliance standards under the EU’s AI Act. The Harvard Review noted: “Put simply, the Act is akin to Europe’s General Data Protection Regulation (GDPR), passed in 201 6, but for artificial intelligence.”
This article will provide insight into the steps various stakeholders must take to ensure robust AI governance in anticipation of imminent legislative rollouts, referencing the EU’s AI Act for context. Boards of directors and management executives must act
DEREK SMITH BY
now to implement governance best practices that protect their companies from regulatory and reputational harm.
Governance inclusive of AI Risks
As Europe’s most significant artificial intelligence regulation, the AI Act imposes penalties of up to 20m euros or 6 percent of a company’s global turnover for serious violations. These penalties echo the punitive measures of the General Data Protection Regulation (GDPR), demonstrating the EU’s commitment to holding companies accountable for AI misuse.
Fines are not the only concern. Reputational damage caused by unethical AI practices could have lasting effects on any company. The real challenge is aligning AI strategies with
broader ethical responsibilities rather than merely achieving compliance. First, a comprehensive gap analysis of current governance frameworks is essential. In order to effectively mitigate AI-related risks, an assessment of existing structures, policies, workflows and technologies is required.
The Board’s responsibility: Asking the right questions
AI governance is more than a technical issue. It is a strategic one that requires the attention of those at the top of a company. It is the responsibility of Boards to ensure that their companies are prepared for the operational and ethical challenges AI presents, even if they currently feel unqualified to engage deeply in AI issues. A critical mistake would be to avoid these issues as “too technical”.
To fulfill their oversight role, Board members should ask the following questions:
* Who within management is responsible for AI compliance and risk management?
* Are training programmes in place to help employees identify ethical or regulatory AI risks?
* What metrics will track compliance, ethical practices and the success of AI initiatives?
In addition, Boards must ensure that AI models are regularly reviewed and that they are adapted
N O T I C E
IN THE ESTATE OF DR. TIMOTHY EDWARD AUGUSTUS BARRETT, SR. late of Tower Estates Drive, Sans Souci in the Eastern District of the Island of New Providence, one of the Islands of the Commonwealth of The Bahamas, deceased.
NOTICE is hereby given that all persons having any claim or demand against the above Estate are required to send the same duly certifed in writing to the Undersigned on or before 4 November 2024, after which date the Administratrix will proceed to distribute the assets having regard only to the claims of which she shall then have had notice.
AND NOTICE is hereby also given that all persons indebted to the said Estate are requested to make full settlement on or before the date hereinbefore mentioned.
DELANEY PARTNERS
Attorneys for the Administratrix Chambers
P. O. Box CB-13007 Lyford Cay House, 5th Floor Western Road Lyford Cay New Providence, The Bahamas
to changing risks. It is important to note that the absence of ethical breaches does not guarantee a company’s safety, especially since new AI technologies or partnerships can introduce unknown risks. It is important for Boards to stay vigilant, ensuring their companies are not simply compliant but also ethically sound.
The executive suite’s role: Operationalising AI governance
While Boards provide strategic oversight, executive management is responsible for executing AI governance. It is important to begin with a gap analysis, which identifies areas where the company’s existing risk management structures are inadequate. To build an effective AI governance framework, cross-functional collaboration is essential between IT, legal, data science and risk management departments. Although the article emphasises the importance of people and processes, identifying AI-related risks requires the use of technology, which is more than just an after-thought. Automation platforms, AI auditing tools and data analysis systems can provide ongoing oversight and ensure that AI governance processes are scalable. In short, for AI
governance to be effective, people, processes and technology must all be balanced. It is also imperative that management establish clear key performance indicators (KPIs) and objectives for measuring the effectiveness of AI governance. These metrics should not just focus on compliance but also assess the broader ethical and operational impacts of AI deployments. It is crucial to assign a single executive to oversee AI governance, whether that is a chief risk officer or a newly-appointed chief AI ethics officer, to ensure accountability and avoid conflicts of interest.
The managerial imperative: Implementing ethical AI
An integral part of AI governance is integrating it into day-to-day operations by managers. In light of the fact that the EU AI Act was not written by operations experts, much of the responsibility for operationalising compliance rests with the companies themselves.
Throughout the AI lifecycle, managers should remain vigilant for any changes in AI risk. It is possible for an AI model designed for one purpose to be used in a way it was not intended, raising new ethical concerns. Continuous monitoring and reassessment of AI systems are essential to prevent such risks. In short, as AI continues to shape industries, governance structures must evolve to ensure compliance and ethical responsibility. Companies must act now to assess their AI governance frameworks, ensuring they are prepared not only for regulatory compliance but also for the ethical challenges AI poses. Boards and management executives should prioritiae comprehensive AI governance strategies to protect their company’s reputations and bottom lines. Ethical AI is not just a regulatory requirement - it is a business imperative.
Smith Jr a governance, risk, and compliance professional for more than 20 years with leadership, innovation, and the author of ‘The CompliLaundering Specialist Vice President, CompliAtlantic’s family of companies (member of Coralislemas, St Vincent & The Grenadines, St Lucia and
Digital banking drive holds week-long event
BAHAMIAN financial services providers have teamed with the Central Bank for a week-long drive aimed at improving consumer confidence and understanding when it comes to digital banking.
The six domestic commercial banks, digital wallet providers and credit unions are joining their regulator to stage Live Digital Week that begins today, pooling resources and co-ordinating events for a five-day initiative that is part of an ongoing two-year educational campaign launched earlier this year.
The event, which runs through Friday, September 27, aims to show the convenience, cost-savings and real-time benefits of digital payment solutions.
A Live Digital Tech Expo, expected to draw an invitation-only capacity crowd of 300 to the British Colonial hotel, is set for Thursday, September 26.
“If it were up to me, I would call this coming week the five days of red carpet treatment,” said Central Bank governor, John Rolle.
“The goal is to provide opportunities for customers to meet with experts who will guide them through every step of digital banking practices, whether it is a credit card application, setting up or amending
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online banking, use of a digital wallet or familiarising themselves with Sand Dollar.”
The week’s events include radio shows, extra in-branch assistance with completing credit or debit card applications, and mentoring on online banking.
Participating commercial banks include Bank of The Bahamas, Commonwealth Bank, Fidelity Bank (Bahamas), CIBC FirstCaribbean International Bank (Bahamas), RBC Royal Bank (Bahamas) and Scotiabank (Bahamas). Several credit unions and digital wallet providers are also participating.
Gowon Bowe, the Clearing Banks Association’s chairman, said focused attention will help erase any confusion or mystery surrounding the term “digital”. He added: “The word digital simply means conducting a transaction using an electronic device.
“Digital payment solutions are as simple as tapping a credit or debit card or paying a bill through online banking. However, for many persons the very phrase ‘digital banking’ sounds daunting and confusing, so it is important that banks find a way to broaden the understanding.”
Mr Bowe said the adaptation to alternative measures of making and receiving payments beyond paper transactions is critical. “Consistent with every business, costs are increasing, particularly for in-person activities, and to compensate for these increasing costs businesses must find ways of increasing revenues, which sometimes will mean increasing fees for certain services,” he said.
“There is always the concern among customers that such fees are unfair, and banks are not immune to this concern being expressed by [their] customers. However, sustainability and stability in the commercial banking sector in The Bahamas is paramount to its continued national development, which will require adjustments to fees periodically.
“Customers can, and should be encouraged to, take action to keep their cost of banking to a minimum and one powerful means of doing so is by going digital. In addition to the benefits of lower costs, there are also the benefits of efficiency, no waiting in lines to transact, accountability with an appropriate audit trail, faster, safer and greener. This is what it’s all about.”
Each day this week will focus on a different aspect of digital payments. Monday and Tuesday are designated as debit and credit card days; Wednesday is dedicated to assisting with online banking and with credit union applications for new accounts or other credit union business. Thursday is business banking day, and Friday is digital wallet and business banking day.
JOHN ROLLE GOWON BOWE
PM: SAFEGUARD $150M FLATS FISHING OVER CLIMATE CHANGE
By FAY SIMMONS
THE Prime Minister has urged lodges, resorts and other industry operators to invest in renewable energy and sustainable equipment to help protect the $150m flats fishing industry against climate change.
Speaking at the Bahamas Flats Fishing Guide Homecoming Conclave on Friday, Philip Davis KC said: “As an integral part of our tourism landscape, flats fishing is the lifeblood of many Family Island communities.
“Of course, it is also a significant generator of revenue at the national level, contributing over $150m annually to our GDP. And we know there is even more room for growth.” But Mr Davis said rising sea temperatures have reduced fishing stocks, which could have a detrimental effect on an industry that helps to sustain many Family Island communities.
“This is a sector of immense cultural and economic value, and it has long been a shimmering feature of Bahamian life,” said Mr Davis. “But like so many other facets of our society, it is under threat from a climate emergency we had no hand in bringing about.
“Rising ocean temperatures are impacting fish stock productivity – less fish are surviving until adulthood. When productivity levels fall, it hurts the wider ecosystem. These worrying patterns, observed all over the world, are only amplified by other climate
extremes, like the worsening storms that strike our region.”
Mr Davis encouraged hotels and fishermen to help mitigate the effects of climate change by embracing renewable energy and investing in sustainable fishing equipment. “Hotels
and lodges can solarise,” he added.
“Fishers can invest in sustainable equipment. And visitors can conserve resources over the course of their stay. We can protect our resources and our livelihoods. Commercial and environmental interests don’t have to compete. They can exist in harmony.”
Mr Davis said concessions and exemptions have been implemented to help stakeholders grow the flats fishing industry. “Facilitating world class fly-fishing tournaments and initiating strategic marketing initiatives are just two of the ways this government has supported the expansion of the flats fishing industry,” he added.
“Concessions and exemptions have also been put in place, as we know that running a business is a big financial undertaking. We understand that is in our national best interest to support the flats fishing industry in whatever ways we can. And we can do even more to help you to build this industry up to what we all know it can be.”
Mr Davis said the operational budget for local government has been increased by more than 10 percent, and while the industry is driven by foreign visitors it is “essential” that its economic benefits are reaped by Bahamians.
“These are Bahamian assets that should be controlled by, and benefit, Bahamians and our economy,” said Mr Davis.“While we appreciate that the industry is driven by foreign visitors and brokers from around the world who can influence where anglers go, it is essential to discuss how we can ensure that the economic benefits remain for Bahamians.
“Already, we have increased the operation budget for local government by over 10 percent. With these additional funds, district councils are in a better position to empower entrepreneurs within and adjacent to the industry. Through these measures, and through the efforts of so many here today, flats fishing in The Bahamas has grown from a small niche into a flourishing sphere.”
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IN THE ESTATE of MARCEL JOHN JUSTIN MAURY IV late of the Township of Marsh Harbour Abaco, one of the Islands of The Commonwealth of The Bahamas, deceased.
Notice is hereby given that all persons having any claim or demands against the above named Estate are required to send their names, addresses and particulars of the same duly certifed in writing to the undersigned on or before the 23rd day of September A.D., 2024, and if required, prove such debts or claims, or in default be excluded from any distribution; after the above date the assets will be distributed having regard only to the proved debts or claims of which the Executor shall then have had Notice.
And Notice is hereby given that all persons indebted to the said Estate are requested to make full settlement on or before the aforementioned date.
MICHAEL A. DEAN & CO., Attorneys for the Executor Alvernia Court, 49A Dowdeswell Street P.O. Box N-3114 Nassau, The Bahamas NOTICE
PHILIP DAVIS KC
‘Married women’ law reform call over FamGuard dispute
Asserting that this section applied to all three policyholders, Family Guardian took the position it was unable to change the policy beneficiaries because the Act created “an absolute vested interest” that was irrevocable in favour of the original beneficiary and thus could not be changed.
Its position on the disputes, which have lasted between eight to ten years, triggered policyholder complaints against Family Guardian to industry regulator, the Insurance Commission of The Bahamas (ICB). The latter, according to Justice Fraser’s ruling, took a different stance to the BISX-listed life and health insurer as the two “were unable to reach an agreement on the issue” leaving it for the Supreme Court to settle.
The Acting Chief Justice, in her September 13, 2024, verdict called on both houses of Parliament to act on legislative reforms that would clear up when section seven of the Married Women’s Property Act applies so as to avoid an ever-increasing number of contract and trust-related disputes.
“I believe it is time for the legislature to revisit the statutory regime currently in place to avoid any potential claims for breach of contract or breach of trust that may arise based on differing interpretations of existing laws. Express language should be used so there is no confusion as to how and when section 7 of the Married Women’s Property Act applies (if at all),” Justice Fraser wrote.
“Until section seven of the Married Women’s Property Act is cured, this is bound to cause future issues and the legislature should do everything in its power to provide express terms that are not open to any other interpretation.”
The Married Women’s Property Act was designed to protect the wife’s right to own, buy and sell assets, both her own and those accumulated during the marriage, as well as give her a separate legal identity from her husband.
Justice Fraser, consolidating the three disputes into one ruling because they all raised similar legal issues, noted that Mrs Archer
converted her original term life insurance policy, taken out on July 28, 2009, to a select life plan policy with Family Guardian on December 28, 2011. The policy had a face value of $100,000. The beneficiaries, who stayed the same under both policies, were Mrs Archer’s husband, Bertram Archer, and her children, Karla Prince, Karie Prince, Damian Tomlinson and Karow Prince. “It is alleged that, at no time prior to the issuance of the policies, were such policies designated as irrevocable,” Justice Fraser noted.
Mr Archer pre-deceased his wife on January 20, 2016, and she sought to invoke the ‘owner and beneficiary’ clause that allowed her to change any policy beneficiary without their approval provided it was lawful to do so.
“In February 2016, Mrs Archer instructed Family Guardian to remove her husband as a beneficiary under the select life policy, thereby leaving her four children as the sole beneficiaries,” Justice Fraser wrote in her judgment.
“Family Guardian advised Mrs Archer that she could not make any changes to the select life policy until her husband’s estate was probated. She also attempted to obtain the cash surrender value of the select life policy, but Family Guardian did not allow her to do so.”
After Mrs Archer complained to the Insurance Commission, Family Guardian told the regulator via a March 8, 2017, letter that she “would not be permitted to change her beneficiaries as a resulting trust was created by virtue of section seven of the Married Women’s Protection Act”.
Thus led Mrs Archer to initiate Supreme Court legal action on April 29, 2019, seeking declarations that the statutory trust created under that Act is revocable; that she can remove her late husband as a beneficiary; that her instructions “are valid and fully effective” under the Insurance Act 2009; and that upon her death the policy payout will go to her four children.
In similar fashion, Ms Russell named her
NOTICE
NOTICE is hereby given that ASHLEY SIMEON of Golden Isles, 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 23th day of September, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
PUBLIC NOTICE
The Public is hereby advised that I, STACY CORA DEAN, of Marshall Road, Nassau, The Bahamas, intend to change my name to STACY CORA SAUNDERS. 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, The Bahamas no later than thirty (30) days after the date of publication of this notice.
NOTICE
NOTICE is hereby given that JULIET ELAINE DANN of P. O. Box EE17031, Farrington Road, New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 16th day of September, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
daughter, Arimentha Clarke, as beneficiary of the $10,000 whole life policy she took out with Family Guardian on November 13, 1989. The policy again stated that Ms Russell could change the beneficiary upon written request.
He daughter passed on June 25, 2008, and Ms Russell subsequently “attended Family Guardian’s office numerous times and requested that Family Guardian change the beneficiary of the whole life policy to Ms Russell’s grandchildren, Rikera Ingraham and Michael Bain Jr, who are two of Ms Clarke’s children.
“On each visit to Family Guardian, it refused to effect the requested change,” Justice Fraser wrote. “An unidentified insurance agent of Family Guardian purportedly advised Ms Russell to cease making payments on the whole life policy as Family Guardian refused to allow her to change her beneficiary. Ms Russell stopped making payments on June 27, 2013, thus the whole life policy lapsed.
“Ms Russell then formally wrote to Family Guardian on October 24, 2013, with the same request to have her grandchildren designated as her beneficiaries under the whole life policy. She sent a copy of this letter to the Insurance Commission of The Bahamas.
“On January 30, 2014, Family Guardian sent a letter to Ms Russell stating that Family Guardian was prepared to allow the beneficiary change to be made provided that, if Arimentha Clarke had a will, it contained a bequest of the proceeds payable under the whole life policy to Ms Russell’s grandchildren.
“Family Guardian also stated that, in the event that Arimentha Clarke died intestate, it required confirmation that the two named grandchildren were Arimentha Clarke’s only children and a release from Arimentha Clarke’s husband containing a hold harmless provision in respect of future claims in relation to the whole life policy.”
Following an investigation by the Insurance Commission, Family Guardian again cited section seven of the Married Women’s Property Act for why it would not permit the beneficiary to be changed, leading to Ms Russell filing legal action similar to that initiated by Mrs Archer.
In the final case, Alamanda Clarke took out a Family Guardian $5,000 whole life policy on October 16, 1995, designating her son, Simeon Clarke, as beneficiary. However, he passed on December 22, 2013, and in accordance with the policy terms Alamanda Clarke applied to Family Guardian on February 9, 2015, to change the beneficiary to her daughter, Nicolette Clarke.
“Family Guardian refused to comply with the request and has declined to acknowledge Ms Clarke as the new beneficiary under the whole life policy,” Justice Fraser ruled. “On May 15, 2015, Ms Clarke’s mother filed a formal complaint with the Insurance Commission against Family Guardian for its failure to carry out her instructions to remove Simeon L. Clarke as the named beneficiary and replace him with Ms Clarke.
“On October 10, 2015, Almanda Clarke passed away. The death benefit payable under the whole life policy has not been paid to Ms Clarke.” This triggered the third legal claim subject to Justice Fraser’s judgment.
Krystle Saunders, Family Guardian’s general counsel, revealed in an affidavit that the Insurance Commission disagreed with the position taken by the BISX-listed insurer based on legal opinions it had received “but the parties were unable to reach an agreement on the issue”. The carrier stuck to its position that the Married Women’s Property Act and its section seven prevented it from making the beneficiary changes. Justice Fraser said the issue of whether this Act applied, and how, to the three life insurance policies in dispute had to determined alongside the
Insurance Act 2009 and the Trustee Act. She added that the former, which would apply only to Mrs Archer’s case as the policy was taken out after the Insurance Act came into effect, allowed any policyholder to revoke or alter a named beneficiary. And the Insurance Act’s section 241 also asserted specifically that the Married Women’s Protection Act had no impact on insurance policies taken out after 2009 when it came to changing beneficiaries. The Acting Chief Justice also noted that the Trustee Act allows a trust settlor to retain powers to change the beneficiaries with no effect on the trust itself, and also applies to any trust in existence.
Referring to the three disputes before her, Justice Fraser wrote: “As all three policies in the instant case are statutory trusts, which all have a change of beneficiary clause, the Trustee Act applies to them and the settlor (or policyholder) retaining the power to change the named beneficiary does not invalidate the trust.”
Applying all this to the three life insurance policies before her, the Acting Chief Justice found that in the case of Mrs Archer it was “patently clear” she could change the beneficiaries and that the Insurance Act coming into force meant the Married Women’s Protection Act did not apply.
As a result, this had created a revocable trust with “wide powers” for Mrs Archer to remove and/or add beneficiaries as long as she complied with the policy’s terms. “Accordingly, I rule that Mrs Archer’s select life policy is revocable and that no absolute interest vested in her late husband,” Justice Fraser said. “Mrs Archer is entitled to change the named beneficiaries in accordance with the select life policy.”
As for Ms Russell, the Acting Chief Justice said it was clear she wanted to change beneficiaries if she so chose. And she, too, had “wide powers” for achieving that provided she complied with the policy’s terms.
“Family Guardian’s counsel asserts that the wording of section seven of the Married Women’s Protection Act creates an absolute trust in favour of any originally named beneficiary,” Justice Fraser said, referring to Robert Adams KC of Delaney Partners.
“Courts must adopt a more robust approach to statutory interpretation on occasions where rigid or strict adherence to express wording would create an absurdity or create circumstances which clearly is the opposite to what a private individual intended to do with his assets – particularly when a statute may not necessarily reflect modern commercial practices, and the intentions of parties under a private contract.”
Taking the Married Women’s Protection Act section seven, and reading it alongside the Trustee Act’s section three, Justice Fraser said it was clear that a settlor (policyholder) can change beneficiaries but the trust stays valid.
“I find it difficult to accept that it was in the contemplation of the settlor that she intended a deceased beneficiary’s estate (who pre-deceases her) to benefit from the proceeds of a life insurance policy and the insured is expected to continue paying for said policy,” Justice Fraser said of Ms Russell’s circumstances.
“That, in my view, cannot be the true intention of the settlor/insured or the purpose of the trust. I do not believe this is a true reflection of the legislative regime together with the express terms of the statutory trust. It goes against the very nature and tenor of the trust.”
As a result, she ruled that Family Guardian “must comply” with Ms Russell’s instructions to change the beneficiaries. She gave a similar verdict in the case of Ms Clarke. Timothy Eneas KC and Ashley Sands represented the three policyholders.
TAXI ‘PRICE GOUGE’ FEAR OVER GAS MARGIN RISE
percent [fare] increase they already have.
“It’s September which is usually very slow. It’s extremely slow right now, and with the increase in the number of taxis on the road, the fares will not be very frequent for drivers. They will not have as many fares as they normally do for September and October, and to pay more for gas especially after the fare increase, it may cause taxi drivers to be forced to price gouge.”
The increases approved by the Government will take the margins to 79 cents per gallon of gasoline, as opposed to the current 54 cents, and 50 cents for diesel, representing 46.2 percent and 47 percent rises respectively.
Mr Ferguson asserted that, given the amount of gas that tax drivers have to purchase and the frequency with which they have to do this, the margin increases will erode the impact of his industry’s recentlyapproved fare rise and “eat into that tremendously”.
The union chief said it normally costs drivers between $70-$80 per time to totally fill their tank from empty on Japanesemanufactured vehicles, estimating they do this at least once every two days when enjoying regular customer volumes. As a result, he suggested most drivers are spending at least between $200 and $300 per week on fuel alone, and sometimes more.
“It’s seven days a week,” Mr Ferguson added of the taxi business. “It’s not like you have a regular day off. They have to fill up every day. They cannot do without it.... We have to do a balancing act on how much fuel we’ll put in, and use the monies we spend on fuel to operate.
“A taxi, some people may think my statements are over the top, but when you look at it it costs a lot to operate with regards to driver’s licence, public service driver’s licence. We have to do BahamaHost
training and there are two inspection stickers we have to pay for every year.
“We also pay more for insurance. Maintenance costs a lot, and we have to factor in the cost of replacing a vehicle after a couple of terms.” Diesel prices at Rubis, Esso and Shell were yesterday said to be $5.05, $4.70 and $5.04 per gallon, respectively. Based on this, a taxi running on diesel and filling up with $80 at either Rubis or Shell would be able to purchase 15.85 gallons. The 16 cent per gallon margin increase would add about $2.53 to the driver’s fuel purchase price.
Mr Ferguson told Tribune Business he was not opposed to the petroleum retailers enjoying a margin increase but argued that taxi drivers are deserving of their “own special price” on fuel purchases because of the quantities that they consume and how reliant their business is on this commodity.
“I would not disenfranchise anyone’s business,” he said. “Only they know what it costs to operate a fuel station franchise according to the law. I would not discourage anyone from calling for an increase because inflation over the last three to four years has gone up so much that everyone is entitled to an increase.
“I don’t want to disparage anyone for an increase. I don’t run a service station, so I don’t know how much it costs to operate it on a daily basis. I don’t want to make it seem like the taxi drivers received it and no one else. Costs are increasing all around so everybody needs extra financial assistance to make sure their business runs smoothly.
“It’s important that they get an increase, but they should not get an increase on the back of someone else. That’s not an effective increase.... It would have been a better idea if the Government would give the taxi drivers a break on the fuel. There should be a special price for taxi drivers
because we consume the lion’s share of fuel.” Transportation industries will be among those hardest hit by the gas margin increase. Jitney drivers and operators last week warned they may stage a protest of their own as a result unless public transportation companies receive similar financial relief.
Harrison Moxey, the United Public Transportation Company’s (UPTC) president, told Tribune Business the industry has been seeking fare increases for years to help counter ever-increasing operating costs but has not received what it needs.
While the Government granted a recent rise, he added that it fell short of what was asked for, and argued that the Davis administration should now provide further incentives to bus owners and drivers to ease the burden that will be imposed once the new 16 cents per gallon margin increase for diesel takes effect.
Otherwise, Mr Moxey warned, they will “have to be the next protestors”. He added: “We need relief on some other end. We was requesting that the Government look at other measures to try to offset the cost to the public transportation industry.
“That is giving us some type of relief on licences when you have to licence the vehicles, or where the Government would give some incentive, some fuel incentive, for us to operate because it’s already hard operating under these inflated conditions, even with servicing and maintaining the vehicles.
“We have had, in some cases, a 100 percent to 150 percent increase on parts and things that we have to purchase. Insurance has also gone up. Everything has gone up. It only makes it that much harder for us to survive. And so we’ll be pushing for them to let us know what the position would be towards us, or we’ll have to be the next protesters.”
Water Corp margins slide 138% to -$31m
180,000 persons - in New Providence and the Family Islands through improved access to, and the provision of, drinking water.
Critical to improving the Water & Sewerage Corporation’s performance, and achieving the project’s objectives, will be reducing increasing non-revenue water (NRW) which represents water supply lost from the utility’s network through leaks, theft and other problems before it reaches the end user and cannot be billed to customers.
Noting that these losses rose to 3.85m gallons on New Providence in 2022, thereby reversing the declines/gains made over the previous decade, the IDB report revealed that 55 percent - more than half - of the water pumped through the Water & Sewerage Corporation’s Family Island distribution systems in 2022 was lost before it reached the end consumer.
These losses, the document added, are well above the 30 percent NRW benchmark seen as the standard that “a well-performing” water utility should achieve. And they force the stateowned utility to purchase
more water from already “expensive” privatelyowned reverse osmosis plants, which is critical given that this and staffing costs alone account for a combined 87 percent of the Corporation’s operating costs.
Providing further insight into these challenges, the IDB report said: “A major factor exacerbating the Water & Sewerage Corporation’s operational and financial performance is its low operating efficiency. In 2022 NRW stood at 35 percent in New Providence and 55 percent in the Family Islands.
“This is particularly concerning since 81 percent of water supplied is from desalination, leading to the cost of purchasing water accounting for 49 percent of Water & Sewerage Corporation’s operating expenses..... The larger the physical losses, the more water needs to be produced from expensive reverse osmosis plants.
“Lowering NRW improves operating efficiency, contributes to improved financial performance as well as improved resilience and quality of service since recovered water can be distributed to new customers or production can be decreased. In New
Providence, NRW decreased from 2011 to 2019 before increasing to 3.85m imperial gallons in 2022,” the IDB report continued.
“In the Family Islands, NRW increased from 1.66m imperial gallons (equivalent to 41 percent) in 2019 to 2.67m imperial gallons (equivalent to 55 percent) in 2022. It is commonly accepted that a well performing utility should have an NRW below 30 percent.
“Reducing the Water & Sewerage Corporation’s NRW and raising the productivity of its staff could lower operating expenses since water purchases and staffing accounted for 87 percent of operating expenses in 2022.”
The IDB report also revealed that the Corporation’s workforce had expanded by some 73 persons between 2017 and 2022, a period mostly covered by the former Minnis administration’s time in office, even though productivity and efficiency metrics were declining and operating losses increasing.
“According to the corporate business plan, the Water & Sewerage Corporation needs to increase the efficiency of its staff as highlighted by an increase in the number of employees
from 411 in 2017 to 484 in 2022; a deterioration in the standard staffing efficiency indicator (eight employees per 1,000 water connections in 2022); an increase in staff costs from $19m in 2010 to $29m in 2022; and the high proportion of operational expenditure represented by staff costs - 36 percent in 2022, up from 28 percent in 2012,” the IDB report said. “Revenues have remained relatively flat, increasing from $41m in 2010 to $51m in 2022. As a result of the larger increase in operating expenses than revenues, Water & Sewerage Corporation’s EBITDA margin worsened from a negative $13m, equivalent to a negative 32 percent in 2010, to a negative $31m, equivalent to a negative 61 percent, in 2022.” In dollar terms, that represents a 138 percent increase.
A negative operating income, or earnings before interest, taxation, depreciation and amortisation (EBITDA), margin means that the Water & Sewerage Corporation - and any corporate entity in a similar financial position - is unable to cover its operating expenses from its regular revenues and earnings. This signals cash flow issues and is viewed as a “red alert”,
‘NO DECISION’ ON WATER CORP PRICE RISES, PRIVATE WELLS TAX
Sewerage Corporation’s tariffs to reflect the cost of providing service”, which clearly means an increase in rates and prices charged to Bahamian households and businesses given that they are currently charged below the cost of supply.
“Because of its poor operating efficiency and tariffs that are not sufficient to cover costs, the Water & Sewerage Corporation relies heavily on increasingly greater subsidies from the Government to cover some of its operating expenses and nearly all its capital investments,” the IDB report said.
“Increasing the efficiency of collections could improve its cash flow and lessen its reliance on subsidies from the Government. Operating subsidies were $55m in 2022.”
The state-owned utility is also aiming to persuade the Government to “set taxes on desalination plants used by private companies for selfsupply”, and to “set property taxes on homes that use private wells”. It also wants the Government to “‘increase import duties on equipment used for private wells” and “mandate, as per the Business License Act, that all businesses have an active water connection”.
The IDB report gave no figures, range or the extent to which the Water & Sewerage Corporation may seek to increase consumer tariffs which have remained unchanged since 1999 or a quarter-of-a-century despite ever-increasing operating costs and inflation. Selling water below production cost is what has driven it into
increasingly heavy losses and reliance on taxpayer subsidies that hit $55m in 2022.
Similarly, no details were included on the type and rate of taxes proposed for private well owners and companies with their own reverse osmosis plants. It is unclear whether the Corporation is pushing for new taxes or an increase in existing taxation, say real property tax, but the approach appears to be to drive private well owners back to using its own supply via the imposition of financial penalties. Private well homeowners, according to a separate IDB report, account for a significant water market share of 39 percent on New Providence and 30 percent in the Family Islands. Any move that mandates they are required to pay extra for the privilege of having a well is likely to receive push back, and be viewed as anticompetitive, anti-freedom of choice and trying to create a government monopoly. Cabinet approval, though, will be required to implement any of those measures and Mr Lundy last night sought to reassure that this was some way off if it ever happens at all.
“We acknowledge the recommendations from the IDB regarding potential changes to the Bahamas’ water regulatory regime and are taking them into consideration,” he told Tribune Business.
“However, it is important to note that these suggestions are still in the preliminary stages, and no formal decisions or reviews have been finalised at this time. As with many of the IDB’s reports for various countries, these proposals
INTERNATIONAL BUSINESS COMPANIES ACT, 2000 KULORE LTD. In Voluntary Liquidation
NOTICE is hereby given that in accordance with Section 138(4) of The International Business Companies Act, 2000, KULORE LTD. is in dissolution.
The date of commencement of the dissolution was the 19th day of September A.D., 2024.
Mr. Michael C. Miller, P.O. Box EE-17971, Nassau, Bahamas is the liquidator of KULORE LTD. Michael C. Miller Liquidator
NOTICE
INTERNATIONAL BUSINESS COMPANIES ACT (No.45 of 2000)
THE ARAS GROUP LTD (the “Company”)
Notice is hereby given that, in accordance with Section 138 (8) of the International Business Companies Act, No.45 of 2000, the Dissolution THE ARAS GROUP LTD. has been completed a Certifcate of Dissolution has been issued and the Company has therefore been struck off the Register. The date of completion of the dissolution was the 28th August, 2024.
indicating fundamental operational issues.
“Because of its poor operating efficiency and tariffs that are not sufficient to cover costs, the Water & Sewerage Corporation relies heavily on increasingly greater subsidies from the Government to cover some of its operating expenses and nearly all its capital investments,” the IDB report spelled out on the consequences.
“Increasing the efficiency of collections could improve its cash flow and lessen its reliance on subsidies from the Government. Operating subsidies were $55m in 2022.” The Water & Sewerage Corporation’s reverse osmosis supplier have also consistently complained about unpaid bills and multimillion dollar arrears due to them that they are having to carry on their balance sheets.
BISX-listed Consolidated Water, which supplies the Corporation and all its New Providence customers with water from its two reverse osmosis plants, Blue Hills and Windsor, in its most recent financial filings has pegged these arrears at around $25m-$26m.
The IDB financing is to be broken down in tranches, with the first $50m to be disbursed over a five-year period. Some $33m, or the bulk of that figure will be devoted to reducing the
Water & Sewerage Corporation’s non-revenue water losses, both “physical and commercial”, across its Family Island markets.
“The contract’s main target will be to reduce NRW in the Family Islands from a baseline of about 1.5 million imperial gallons per day, which is subject to review and confirmation, at an average annual system pressure of 25 psi within a maximum of five years, focusing on Abaco, Eleuthera and Exuma,” the report added.
“About 65,000 households - some 180,000 people - in New Providence and the Family Islands are expected to directly benefit with access to, or improved provision of, drinking water services. Underserved communities in New Providence and the Family Islands are expected to benefit from the expansion of access to potable water supply under the project.
“The Water & Sewerage Corporation will also benefit from institutional strengthening and improving the operational efficiency of the utility - reduction of NRW, energy efficiency and the installation of smart meters.... The Water & Sewerage Corporation is targeting investments funded by the IDB of $100m out of $239.4m from its initial prioritised capital investment plan for 2023 to 2028.”
are advisory in nature and are not mandates. We are currently in the early phases of assessing their potential impact, and discussions have yet to move forward on any specific measures.
“At this stage, there are no details available on tariff adjustments, taxes or implementation timelines. Should these recommendations progress further, they will require extensive review and consultation, including approval from the Cabinet, to ensure alignment with national policies and priorities.”
Detailing the extent of private well provision in The Bahamas, the IDB said: “The Water & Sewerage Corporation’s potable water and wastewater collection and treatment coverages are low compared to other utilities in the Caribbean.
“According to the Water & Sewerage Corporation’s corporate business plan 2023-2028, in 2022 the overall estimated level of potable water supply coverage was 63 percent. The water supply coverage for New Providence was 61 percent, which is lower than the 70 percent estimate for the Family Islands.
“Wastewater coverage was estimated to be around
13.5 percent for New Providence and 0.7 percent for the Family Islands, resulting in an overall coverage of 10.8 percent. The reason for the lower coverage in New Providence is that many households draw water from private wells.”
Tribune Business understands that the private well homeowner tax proposal has been motivated, at least in part, by concerns that such water sources may be unsafe and represent potential health hazards as a result of groundwater contamination. Hence the proposal to incentivise consumers to move back to Water & Sewerage Corporation supply via economic means.
The IDB, in its paper on reforming the water industry regulatory framework, said: “The Water and Sewerage Corporation and the Government of the Bahamas have identified the urgent need to update the legal and regulatory framework that governs the Water & Sewerage Corporation and the water and sanitation sector in The Bahamas.
“There are ten separate Acts that govern the water and sanitation sector in The Bahamas. The Acts in place are not consistent with a modern water and sanitation
Legal Notice NOTICE
LIFE CHIROPRACTIC CENTRE LIMITED
NOTICE IS HEREBY GIVEN that at an Extraordinary General Meeting of the Shareholders of the abovenamed Company was duly convened and held on the 10th day of June, 2024 the following resolutions were passed:
RESOLVED that LIFE CHIROPRACTIC LIMITED be wound up voluntarily.
RESOLVED that PETER MAILLIS of Fort Nassau, Marlborough Street, Nassau, Bahamas be appointed the Liquidator for the purpose of such winding up.
Dated the 10th day of June, 2024.
Maillis & Maillis Registered Offce
For the above-named Company Nassau, Bahamas
NOTICE
INTERNATIONAL BUSINESS COMPANIES ACT (No.45 of 2000)
VIVALDI HOLDINGS SERVICES LTD (the “Company”)
Notice is hereby given that, in accordance with Section 138 (8) of the International Business Companies Act, No.45 of 2000, the Dissolution VIVALDI HOLDINGS SERVICES LTD has been completed a Certifcate of Dissolution has been issued and the Company has therefore been struck off the Register. The date of completion of the dissolution was the 28th August, 2024.
sector. For example, the legal and regulatory framework in New Providence is different from that which applies to the Family Islands. Further, there is not an independent economic regulator, nor an effective environmental regulator, in the sector.”
To overhaul the regulatory regime, some $3.5m out of a proposed $50m IDB loan is being earmarked for the institutional strengthening of the Utilities Regulation and Competition Authority (URCA) and the Department of Environmental Planning and Protection (DEPP). The former will take over as the sector’s economic regulator, while the DEPP will be responsible for the environmental side.
“The existing governance framework for the water and sanitation sector lacks provisions for adequate accountability and autonomy of the Water & Sewerage Corporation,” the IDB said.
“This is a result of multiple factors, including the lack of sector policies and objectives; clear governance for the Water & Sewerage Corporation and, most notably, low tariffs which do not cover the cost of providing the services.
“The Bahamas does not have a water and sewerage sector policy that clearly states objectives and plans for the sector
and the financial means to achieve them. The lack of an independent economic regulatory authority for the sector implies that there is no mechanism for regularly adjusting tariffs. There is no independent environmental regulator.
“Water & Sewerage Corporation is a service provider and holds regulatory functions, a clear conflict of interest. Further, Water & Sewerage Corporation has limited resources and expertise to sufficiently carry out any regulatory functions,” the IDB added.
“Water & Sewerage Corporation’s governance practices limit autonomy to make the decisions needed to improve the service, making it essential to clarify and strengthen Water & Sewerage Corporation’s governance to improve the utility’s operational and financial performance.
“Lastly, the regulatory framework on extraction and use of water from private wells and the discharge of wastewater is outdated, contributing to over-abstractions and improper sewerage discharges which contributes to sea water intrusion and pollution of the freshwater aquifer, reducing water availability and posing an urgent public health risk to the people of The Bahamas.”
LIFE CHIROPRACTIC CENTRE LIMITED (In Voluntary Liquidation)
Creditors having debts or claims against the above-named Company are required to send particulars thereof to the undersigned c/o P.O. Box N-4014, Nassau, Bahamas on or before the 20th day of June, 2024. In default thereof they will be excluded from the beneft of any distribution made by the Liquidator.
Dated the 10th day of June, 2024.
PETER MAILLIS LIQUIDATOR of
LIFE CHIROPRACTIC CENTRE LIMITED
Legal Notice NOTICE
INTERNATIONAL BUSINESS COMPANIES ACT (No.45 of 2000)
In Voluntary Liquidation
Notice is hereby given that, in accordance with Section 138 (4) of the International Business Companies Act, (No.45 of 2000), VISINHO OVERSEAS INC. (the “Company”) is in dissolution. The date of commencement of the dissolution is 18th September 2024. Mr. Isaac Nachbar at Av das Americas, 645 - Barra da Tijuca, Rio de Janeiro / RJ, CEP: 22640100, Brazil. All persons having claims against the above-named Company are required to send their names, addresses and particulars of their debts or claims to the Liquidator before 18th October 2024
Wall Street closes its record-setting week mixed as FedEx slumps and Nike jumps
By STAN CHOE AP Business Writer
A
RECORD-SETTING
week for Wall Street closed on a quieter note Friday, as U.S. stocks drifted around the highs they hit during a worldwide rally the day before.
The S&P 500 slipped 0.2% from its record, and the Nasdaq composite fell 0.4%. The Dow Jones Industrial Average, meanwhile, added 38 points, or 0.1%, to its all-time high.
FedEx dragged on the market with a drop of 15.2% after its profit and revenue for the latest quarter fell short of analysts' expectations. It said U.S. customers sent fewer packages through priority services, while it had to contend with higher wages for workers and other costs.
FedEx also cut its forecast for revenue growth for its fiscal year.
Helping to limit the market's losses was Nike, which ran 6.8% higher after it named Elliott Hill as its
chief executive. Hill, 60, had spent more than three decades at Nike in various leadership positions before retiring in 2020. Constellation Energy also leaped 22.3% after announcing it will restart the Three Mile Island nuclear plant and sell the power to Microsoft.
Shares in Trump Media and Technology Group fell 7.8% as its biggest shareholder, former President Donald Trump, won the freedom to sell his shares if he wants.
Trump owns more than half of the $2.7 billion company behind the Truth Social platform. But Trump and other insiders in the company had been unable to cash in because a "lockup agreement" prevented them from selling any of their shares. Before the lockup expired, Trump said he was in no rush to sell.
two-decade high in hopes of slowing the U.S. economy enough to stamp out high inflation. Now that inflation has fallen from its peak two summers ago, Chair Jerome Powell said the Fed can focus more on keeping the job market solid and the economy out of a recession. The Fed is still under pressure because hiring has begun to slow under the weight of higher interest rates. Some critics say the central bank waited too long to cut rates and may have damaged the economy.
stocks have looked this expensive on such measures in the past, he said a recession and sharp downturn for stocks has followed.
He also warned in a report that slowing hiring "is now symbolic of recession risk."
No economic releases were on the calendar for Friday to show where the economy may be heading. Next week will have preliminary reports on U.S. business activity, the final revision for how quickly the economy grew during the spring and the latest update on spending by U.S. consumers.
Homebuilder Lennar fell 5.3% after delivering a mixed earnings report. Its profit for the latest quarter topped expectations. But it also said it made less in profit on each $100 of home sales, and it expects that margin to stay flat in the current quarter.
TMTG stock has dropped below $14 from more than $60 in March, and it's taken a roller-coaster ride there. Over the last six months, the stock has often swung by at least 5% in a day, up or down.
Conditions may be set to improve for homebuilders, though. The Federal Reserve earlier this week cut its main interest rate for the first time in more than four years, with more likely to come. That could make mortgages more affordable for home buyers.
The cut closed the door on a run where the Fed kept its main interest rate at a
Critics also say the U.S. stock market may be running too hot on the belief the Federal Reserve will pull off what seemed nearly impossible earlier: getting inflation down to 2% without creating a recession.
Barry Bannister, chief equity strategist at Stifel, is still calling for a sharp drop for the S&P 500 by the end of the year. He points to how much faster stock prices have climbed than profits at companies. When
The S&P 500 ended this week at 5,702.55 after slipping 11.09 points. The Dow rose 38.17 to 42,063.36, and the Nasdaq fell 65.66 to 17,948.32.
In the bond market, the yield on the 10-year Treasury ticked up to 3.74% from 3.72% late Thursday. In stock markets abroad, indexes slumped across much of Europe after rising in Asia.
MARINE FORECAST
A BUS passes the Wall St. subway station on Wednesday, Sept. 18,
Tour operator’s ‘clear’ vision for expansion
By ANNELIA NIXON anixon@tribunemedia.net
A NEWLY-launched tour operator yesterday said its “vision” to give tourists a clear view of Bahamian waters has ambitions to eventually expand to the Family Islands and other parts of the Caribbean.
Lincoln Deal, Clear Boat Bahamas co-founder, said the business has grown to a four-vessel fleet, which allows guests to see the waters beneath them via a transparent floor, and 20-strong workforce since the concept was first developed in 2021 from clear-bottom kayaks.
“Ninety-eight percent of those young people are under the age of 35,” he said. “These persons, among many of the others that are trying to stay behind the scenes working, are the backbone of this company. They are young Bahamians who are skilled, educated and passionate about the tourism industry.
“They are all captains, mates, and they have extensive experience in this industry because we believe that although there are many from around the world that enjoy our tourism industry, we believe that Bahamians should also have a big piece of that opportunity.”
Mr Deal said he ultimately wants to “revolutionise the way people see and experience The Bahamas”. He added that Clear Boat has ambitions
of expanding to the Family Islands and parts of the Caribbean.
“This industry has so much potential, and we owe it to ourselves and our country to keep pushing the envelope,” Mr Deal explained. “That is why we didn’t just stop with the kayaks or the jet cars or the other adventures that we would have tapped into.
“But today, we are proud to announce that we will be expanding, not only to Exuma, the honourable minister [Chester Cooper], and Bimini and Grand Bahama, the honourable leader of the Opposition [Michael Pintard], but with something truly groundbreaking. The jet car, the clear boats and a few more adventures that we will be announcing shortly.”
Mr Deal added that the boats are “made of high quality material designed with safety, durability and visibility in mind”, and staff have been well trained.
Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, forecast that Clear Boat Bahamas will need more boats soon and he looks forward to seeing the business grow and flourish. He added that many tourists who arrive in The Bahamas often day there are too few activities, tours and excursions to do.
Pledging the Government’s support for Clear Boat , Mr Cooper said: “The agencies of government will be there to support the entrepreneurs.
We have the Tourism Development Corporation, the Small Business Development Centre, the Bahamas Development Bank, the entrepreneurship fund.
“This is a magnificent idea. It certainly has my endorsement. I think, you know, the Tourism Development Corporation can certainly work with the technical support and build a progressive map for expansion and work with them in doing so.
“The Tourism Development Corporation, the Tourism Development Fund are two of the most transformative organisations that we will see in the Commonwealth of The Bahamas when it comes to empowerment, entrepreneurship and creating linkages to tourism. This is something that we have talked about now for five decades, and we are doing it, and I am very pleased to see it happening,” Mr Cooper added.
“We talk a lot about owning tourism, owning the economy. We see it happening. This is a great example. We talk a lot, we hear a lot about people who say they’re not feeling the impact. Those people who are not feeling the impact should come and talk to the Tourism Development Corporation. We have experts who are able to help to guide them as to how to get involved, and how to participate and how to be successful in business.”
LINCON DEAL II, co-founder of Clear Boats Bahamas, speaks at the businesses official opening event.
Photo:Chappell Whyms Jr