By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
ALIV’S “far over-subscribed” $120m preference share issue beat its target by 33 percent and “bodes well” for future capital raises coming to market, an investment banker asserted yesterday.
Michael Anderson, president of RF Bank & Trust, which acted as adviser and placement agent to the mobile operator’s recently-closed private offering, told Tribune Business he had been surprised by the amount of investor demand which allowed them to expand the raise beyond the initial $90m target.
By NEIL HARTNELL
RESORTS World Bimi-
ni’s majority owner is accusing its minority partner of trying “to extract an exorbitant payment” by demanding $600m in damages via an alleged “massive” accounting fraud claim.
Genting Americas’ Malaysian parent has blasted the lawsuit launched against it by RAV Bahamas, the vehicle owned by Miamibased developer Gerardo Capo and his family, as an attempt to “inflict severe reputational damage” on the publicly-listed resort, gaming and leisure group through a series of “baseless” allegations.
The conglomerate, which was required to provide greater disclosure on its Bimini legal woes by the Malaysian stock exchange, has asserted that RAV Bahamas’ action will not have “any material impact” on its financial or operating performance because the allegations are “entirely baseless and without merit”.
With no financial losses anticipated, apart from legal costs involved in defending the claim in the south Florida federal court, Genting told the markets and investors that
“We raised $120m. We were far over-subscribed,” he confirmed.
“We had a number of existing preference shareholders who increased the amount of their investment
it is preparing “a comprehensive response” to RAV Bahamas’ allegations that will be filed with the court soon.
“RAV Bahamas and Genting Americas have had a long-standing business relationship to develop and operate the Resorts World Bimini resort in The Bahamas through BB Entertainment Ltd. RAV recently filed a complaint in the US District Court for the southern district of Florida asserting baseless allegations against Genting Americas,” Genting said in its stock market filing.
“The suit is nothing more than a shareholder dispute in which RAV seeks unsubstantiated damages in excess of $600m, and also requests pre and post-judgment interest at unspecified rates. These malicious and baseless claims are an attempt by RAV and its principals to extract an exorbitant payment from Genting Americas and inflict severe reputational damage upon Genting Americas.....
“As the complaint is entirely baseless and without merit, we do not expect there to be any material impact on the financial results or operations of the Genting Group from such claims. There are no expected losses, other than the cost of defence...
and above what they rolled.” Aliv had been seeking to rollover, or redeem, around $56m in existing preference shares will also seeking to raise an additional $34m from investors purchasing new securities.
“People that already had shares were given the chance to buy that $34m,” Mr Anderson explained.
By NEIL HARTNELL Tribune Business Editor
AN ex-prime minister yesterday asserted that a New York judge’s ruling “may just be the tip of the iceberg” involving wrongdoing over Baha Mar’s construction amid calls for a Commission of Inquiry into the affair.
Dr Hubert Minnis, whose administration inherited the just-opened mega resort following Sarkis Izmirlian’s ousting, told Tribune Business that Judge Andrew Borrok’s verdict awarding Baha Mar’s original developer a combined $1.6bn in damages and interest represents “a black eye for The Bahamas”.
Describing the ruling, together with its contents, as “too big” and something this nation “cannot just leave” as if it does not exist, he also voiced scepticism that Prime Minister Philip Davis KC’s promised “review”
of Judge Borrok’s findings will result in any meaningful action or reforms.
Mr Davis, in a brief response to Mr Izmirlian’s near-total legal victory, said he had instructed Ryan Pinder KC, the attorney general, to conduct the review but Dr Minnis argued that this was akin to “asking them to investigate themselves”. Mr Davis was deputy prime minister in the Christie administration that dealt with the Baha Mar dispute, while Mr Pinder also served in the same Cabinet but resigned before it erupted. Branville McCartney, the former Democratic National Alliance (DNA) leader, echoed Dr Minnis yesterday by asserting that the “review”
Residents voice concern on Mosko Group zip line
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
RESIDENTS last night voiced concerns over the proposed zip line, as well as increased noise and traffic, that will result from the Mosko Group’s Rock Point “day trip” destination on New Providence’s north coast.
Lambert Knowles, civil engineer for Vakis Ltd, the Mosko Group entity spearheading the project, said the feedback was “kind of expected” but residents will eventually see the long-term
benefits even though they voiced concern over the zip line’s placement in front of the public beach between Caves Village and Sandyport.
Pointing out that some residents were supportive of the development, Mr Knowles conceded that while the location chosen for the zip line was the most “adventurous” the developer is open to making adjustments as it is a “minor component of a very large project”.
“What we heard was what we kind of expected,” he said. “I’m actually very much encouraged by it. We had people openly
Bonefish fears over $985m south Abaco resort project
By NEIL HARTNELL Tribune Business Editor
ENVIRONMENTAL
activists yesterday voiced fears that a $985m south Abaco resort project will negatively impact “essential bonefish habitats” and undermine a multi-million industry that attracts highend visitors.
The Bonefish & Tarpon Trust, in a statement released just days ahead of the public consultation on the Kakona project’s
Environmental Impact Assessment (EIA) this Thursday, warned that the Cross Harbour pre-spawning grounds that supply the Abaco, Andros and Grand Bahama bonefishing economies could be endangered unless the developers adopt a cautious approach.
Noting that bonefishing was estimated to have generated an annual $169m impact for the Bahamian economy as recently as 2018, and represents “a cornerstone of sportsfishing tourism”, the Trust
called for a “balanced approach” to development that emphasises preservation of this country’s natural resources as well as jobs and growth.
“Bonefish & Tarpon Trust (BTT) is deeply concerned about the potential impact of the proposed Kakona development on essential bonefish habitats near Cross Harbour, Abaco. These areas include one of the largest and most vital pre-spawning aggregation (PSA) sites for bonefish in The Bahamas
- habitats that support the rich bonefishing economies of Abaco, Andros Grand Bahama and across the country,” it said.
“While BTT embraces the importance of sustainable development and job creation, it is crucial to ensure that these activities do not compromise the same natural systems that support high-value ecotourism jobs like those in the flats fishing industry.”
Pointing to the bonefishing sector’s economic
supporting of the development. I would anticipate persons who have been in the neighbourhood don’t want things to change. But I think once they look at it in the long-term, they will see the benefit of this and they’ll come around.”
“Everything is under consideration. Where we chose it,we thought would be the most adventurous one,” Mr Knowles added of the zip line. “It would end up being something that we would have people wanting to come to go to.
SEE PAGE B5
MICHAEL ANDERSON
BRANVILLE MCCARTNEY
BAHAMAS TRADE DEFICIT GROWS TO HIT $1.145BN
THE Bahamas’ trade deficit expanded to $1.145bn for the 2024 second quarter as imports grew by almost double the rate of exports.
The Bahamas National Statistical Institute (BNSI), in unveiling its quarterly trade report for the three months to end-June, revealed that the total value of goods imported into The Bahamas during this period increased by 25 percent year-over-year to $1.366bn.
In contrast, The Bahamas’ total goods exports, including commodities known as ‘re-exports’ that
transit through this nation before being shipped onwards to their final overseas destination, shrank by 13 percent to just $221m when compared to the 2023 second quarter.
Subtracting total exports from total imports produces this nation’s quarterly trade deficit, which measures by how much the combined value of commodities brought into this nation exceeds that of Bahamian products sent to overseas markets.
The expanding trade deficit thus places greater
Street musician initiative to bring downtown alive
A STREET Musician
Programme was yesterday announced by the tourism authorities in a bid to enhance downtown Nassau’s cultural and entertainment offerings for visitors.
The Ministry of Tourism, Investments and Aviation, which has partnered with the Tourism Development Corporation (TDC) on the initiative, said in a statement that the effort is designed to transform public spaces in the city centre while also showcasing the talents of Bahamian musicians.
It added that applications from musicians to participate in the programme will be accepted through November 8. Some 15 Bahamian musicians will be selected to perform in hightraffic tourist areas such as Pompey Square, Rawson Square, Prince George Wharf and other spots.
Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, said in a statement: “Downtown Nassau is about to come alive with the sounds of Bahamian talent. This initiative reflects our commitment to enhancing the visitor experience while empowering our local musicians to thrive by showcasing their craft to the world.
“Moreover, it aligns with the Government’s broader efforts to promote the Orange Economy, providing creative industries with opportunities for growth and economic contribution.” The Ministry of Tourism, Investments and Aviation said the goal is to deepen the connection between visitors and Bahamian culture by infusing the atmosphere of the city’s streets with the authentic,
unplugged sounds of local music. It added that it will also provide local musicians with a valuable platform for visibility, helping them build a fan base and earn income through live performances.
The ministry said the initiative is also expected to drive foot traffic to nearby businesses, thereby promoting economic growth and contributing to the revival of Downtown Nassau.
“This is an incredible opportunity for our musicians to gain exposure and connect with new audiences,” said Ian Ferguson, the TDC’s executive director. “It’s also a great way to stimulate local economic activity and bring the Bahamian cultural experience to life for our visitors. When visitors are brought into a thrilling experience, there is a greater likelihood that they will increase their spend.”
All applying musicians must be Bahamian citizens, aged 18 and older. The programme is open to all - from hobbyists to those just starting their musical careers, and no professional experience is required. Eligible musicians must play unplugged, non-electric instruments such as acoustic guitars, hand drums, saxophones, violins, harmonicas and similar instruments.
Interested applicants are required to submit a 90-second video performance showcasing their musical talents and unique style by the deadline. Once musicians are selected, performances will take place from Monday through to Friday, with each musician or group performing up to five sets daily. Persons can apply at https://www.bahamas.com/ pilot-street-musician.
pressure on The Bahamas’ key services industries, especially tourism and also financial services, to generate increased foreign currency-related export earnings to bridge this gap and fund domestic consumption.
“Estimates on commodities imported into The Bahamas totaled some $1.366bn, resulting in an increase of 25 percent when compared with the same period last year,” the Bahamas National Statistical Institute (BNSI) said in its report.
“‘Machinery and transport equipment’, the largest contributor to imports, totalled some $325m or 24 percent of all imports. This was followed by the category of ‘mineral fuels, lubricants and related materials’, which accounted for 22 percent or $299m.
“Other categories that contributed significantly to total imports were ‘food and live animals’, ‘manufactured goods classified chiefly by materials’, and ‘miscellaneous manufactured articles’ with a combined total of
$530m (39 percent of total imports).”
As for exports, the Bahamas National Statistical Institute said: “Total exports (domestic and reexports) for the second quarter 2024 totalled $221m, resulting in a significant decrease of 13 percent when compared to the same period last year.
“The major categories of exports consisted mainly of ‘machinery and transport equipment’ totalling $90m, (41 percent of total exports), ‘manufactured goods classified chiefly by
materials’ totalling $54m (25 percent of total exports) and ‘mineral fuels, lubricants and related articles’ totalling $19m (9 percent of total exports).
“‘Animal and vegetable oils and fats’, ‘mineral fuels, lubricants and related articles’ and ‘crude minerals, inedible except fuels’ showed decreases of 50 percent, 37 percent and 34 percent, respectively.”
Aliv’s $120m raise beats goal by 33% FROM
PAGE B1
“That $34m easily got subscribed by the different investors, and we then had a really large investor come in. We went back to Aliv and asked for approval to accept $30m more than the original $90m. “We got approved to accept $30m more and, at the end of the day, the full $120m was raised. We had these guys come in and ask for more. We asked how much more we could place and, based on the enthusiasm we saw in the market, we thought we could increase it by $30m. Aliv agreed to extend the offering by $30m and the full amount was taken up.”
Mr Anderson, revealing that investor appetite surprised even RF Bank & Trust, told this newspaper: “We already thought there would be good support for the $90m. We didn’t realise there would be enough support to do the $120m. Aliv was very happy with the uptake, and the confidence
the public has in it now that the company is cash flow positive.”
Franklyn Butler, chief executive and president of BISX-listed Cable Bahamas, which owns 48.25 percent of Aliv and has Board and management control, was travelling yesterday and could not be reached for comment before press time.
However, he told Tribune Business earlier this month that the capital raise which closed last Tuesday, October 15, “takes us where we need to be” by “cleaning up” multiple inter-company loans and providing funds for capital investment as well as refinancing a substantial amount of the mobile provider’s existing debt.
Mr Anderson, meanwhile, said the extra $30m will give Aliv greater “flexibility” in terms of how it deploys the capital raised. The mobile provider now has a total $64m, over and above the $56m that refinanced the existing
preference shares, that can be employed in areas such as network upgrades and expansion plus the likes of fifth generation (5G) technology.
“They already had plans for how to deploy the $34m, and adding the extra $30m in gives them flexibility in terms of use of the use of funds. They have a chance to decide what to do with it. They have greater flexibility over what to do with it,” he added.
Mr Butler had been hoping that the $120m issue would attract a lower interest coupon, but Mr Anderson said it was recommended to keep the same 8 percent rate as the preference shares that were replaced because investor funds would now be locked in for the full ten-year term prior to maturity.
Explaining that these terms were slightly different to those attached to the replaced issue, he added:
“The price of these new shares was clearly attractive to investors. The shares replaced early were amortising share. They were in an amortised state, starting at $70m in principal and dropping to $56m.
“The new shares were issued for the full tenyear period. Because of the additional term, it was recommended to stay at 8 percent. These were tenyear preference shares at the same rate. Investors thought the increased risk of the increased terms was acceptable given the rate they will get paid.
“We were very happy with the reaction and enthusiasm that investors displayed,” Mr Anderson told Tribune Business. “It bodes well for more investments coming to the market. There’s still some level of liquidity in the market and, as we go into next year, it will be able to take up any additional offerings that come to market.
“These offerings come out intermittently. We had known about the Aliv offering for some time. We were expecting it, so I think a number of people were
expecting it and waiting for it. There’s not that many offerings and investment opportunities that come out every year.
“People are looking to improve the yields and returns they get on bank deposits. The market is looking for investments to participate in to improve their yields. This was a very timely offering. There was a lot of investor money out there.”
Mr Butler, speaking earlier this month just prior to the Aliv preference share issue launch, said: “I think we’ve done a good job getting Aliv to EBITDA (earnings before interest, taxation, depreciation and amortisation) positive.
“I have every confidence that we’ve reduced the risk to the preference shareholders and bondholders. This [the $90m raise] is just to refinance some of the current debt. We started to repay the initial $70m, and I think we had it down to $56m or some number like that. We are actually just replacing some of the current debt, refinancing and replacing it.”
And he added: “We will be in a strong position. This cleans up all the inter-company loans and puts them in their correct position. We believe this puts us in a great position for the group. We don’t anticipate any additional borrowing at this stage of the game save and apart from some 5G stuff and the unexpected.
“We believe Aliv’s debtto-EBITDA ratio will improve from hereon and that will give us flexibility even if we have to go back out. It’s a fully mature business. With EBITDA at around $35m-$37m, and a $90m preference share issue, we’re around three times’ debt-to-EBITDA which is great for our industry.
“When we were building Aliv we had to gamble and hope the EBITDA would come. Now we are showing we are producing returns for those investors. That’s why I feel we should be getting less than an 8 percent interest rate on this issue.”
TOURIST CROSS THE STREET DOWNTOWN NASSAU, BAHAMAS
BPL TARGETS CHRISTMAS CHEER FOR OVER 2,000 DISCONNECTED CLIENTS
By FAY SIMMONS Tribune Business
THE Government yesterday unveiled an initiative to turn on the electricity supply for more than 2,000 disconnected Bahamas Power & Light (BPL) customers if they pay just 10 percent of the past-due bill.
JoBeth Coleby-Davis, minister of energy and transport, announced BPL’s ‘Merry and Bright, turn on your lights” Christmas reconnection drive where residential customers can visit BPL between November 1 and January 31 to pay the reconnection minimum. She added that BPL will offer payment options with “favourable terms” to collect the remaining balance.
“There are exactly 2,050 Bahamians households disconnected without power,” said Mrs Coleby-Davis.
“The Ministry of Energy and Transport is partnering with BPL to address this challenge. We are pleased to officially announce the
‘Merry and Bright, turn on your lights’ holiday reconnection programme.
“Between the November 1, 2024, and January 31, 2025 disconnected residential customers can pay as little as 10 percent of their outstanding balances to have their electricity turned on and reconnected. For the remaining balance, BPL is offering flexible payment terms that allow these customers to repay BPL on favourable terms.”
Mrs Coleby-Davis said all customers that take part
in the reconnection scheme must make their monthly payments. She added that the initiative has the potential to impact over 8,000 persons this Christmas.
“While some may consider this unfair as BPL’s over 111,000 customers must make timely payments to avoid disconnection, I must impress upon you the importance of doing what is right as we head into the holiday season,” said Mrs Coleby-Davis.
“If the average household is four people, we
have the potential to positively impact the lives of 8,000 Bahamians, many of whom are children across The Bahamas. Let me also say clearly that all customers who take advantage of the ‘Merry and bright, turn on your light’ holiday reconnection programme must make their monthly payments.”
Toni Seymour, BPL’s chief executive, said many customers face difficulties making timely payments during the summer as higher consumption leads to increased bills. She added that the initiative will allow these persons to pay their outstanding balance during the winter months when consumption is lower, and said most participants should be able to pay off their outstanding balances in six months.
“As we enter the cooler months when consumption typically decreases, we aim to reconnect our customers who have been disconnected and enable them to pay off their outstanding balances over time
‘MORE STAFF SOON’ FOR EXUMA MINI-HOSPITAL
By ANNELIA NIXON Tribune Business
EXUMA is set to receive more doctors, nurses and new medical equipment at the Community Mini-Hospital in the near future, according to Minister of Health and Wellness Michael Darville.
Dr Darville told Tribune Business he has plans to upgrade both Exuma and Abaco’s sister clinics with Exuma’s upgrading to an urgent care facility, providing more services. As of current, residents have spoken on the facility lacking many services and healthcare professionals to which Dr Darville said is due to a worldwide shortage of doctors and nurses.
“Now, coming out of the COVID pandemic, there was a shortage of manpower resources around the world. And you could still see it being played out at our tertiary facility here in New Providence, where there’s shortage of nurses and there’s shortage of other allied healthcare professionals. And so for about eight months, I brought in 40 Cuban allied healthcare professionals and 16 biomedical engineers.
“When we look at Exuma, the total requirement of doctors in Exuma is seven. We only have three. So I’m short of four for Exuma.”
Dr Darville said his short-term plan is to recruit
from around the world while training Bahamians to take over in the longterm. Mr Darville revealed there are 40 allied healthcare professionals in the country “getting ready to be deployed to the Family Islands”.
He said: “Based on finding the manpower resources we’ve been recruiting from the Philippines, Cuba, Africa, very difficult to recruit from the United States back to this area. And we have a very limited recruitment process in the Caribbean because we’re experiencing shortages ourselves. And so as part of CARICOM, we’ve made the decision that we should not recruit from one another, so we have to go to other countries.
“I have been trying to recruit doctors for the last 15 months and I’m pleased to report that we are in the final stages of bringing into the island some 25 physicians from Africa. We already finished all of our interviews of nurses, and I plan to bring 60 nurses from Africa in three tranches of 20 over the next few months. On top of that, we plan to bring in an additional 23 doctors from abroad to assist us with the massive shortages we have to deliver in the public health throughout the Family Island, including Exuma and Abaco.”
Mr Darville added he has to recruit from abroad to temporarily bandage the healthcare worker shortage
because it takes about five years to train nurses.
He added: “It takes you about two years to train clinical nurses. It takes you about two years to train radiographers and lab technicians, pharm techs and renal techs and orthopedic techs. All of these are essential professionals that you need to run your clinics and your hospital. And take into consideration during the COVID pandemic and even up to today, there’s still recruitment in The Bahamas by the United States and Canada, particularly in the nursing population. And so we have to keep recruiting and training.”
He said the government will provide scholarships for allied healthcare professionals “but on contract for employment” which will bond the, for a period of time. He said he will reveal more information on training, including information concerning Grand Bahama.
“I’ve broken ground for the hospital in Grand Bahama. And the rule of thumb is when you break ground, you must start training almost parallel so that you’ll have the manpower resources to do it.”
Dr Darville added he is trying to “attract students in their relative communities” so instead of having to be deployed, they will simply return home.
He said: “You take, for instance, in Exuma. We would like to recruit nurses as well as allied healthcare professionals from Exuma,
train them so that they could be domicile at home, rather than bringing someone in from Nassau. The ones in Exuma, they just go home. And so the PHA, my ministry, we’ll be sending flyers and information to all of our clinics throughout the family islands, trying to recruit students to be a part of this program that we’re starting with training with Bahamas Baptist University, where they can come into Nassau, they can be trained and on completion with their clinical rotations in the hospital, they can be placed in the community, particularly at Exuma clinic that is going to be converted to an urgent care facility first, and then we’ll add additional services after we finish that blueprint.”
He said the equipment at the hospital are also currently being assessed.
“For the last five months, my biomedical engineers have been at both facilities assessing the facilities, determining which pieces of equipment is now redundant and replacing them with more modern equipment.”
Multiple residents, including Exumian Kenneth Nixon, complained of the current mini hospital not having a dentist to provide free dental care. Dr Darville said equipping the island with a public dentist is also on his checklist. He said a biomedical team of five is going to Exuma for the final assessment to look at dental chairs, dental
with flexible terms,” said Ms Seymour. “Disconnected customers should visit any of BPL’s business offices in New Providence or the Family Islands. A customer service representative will meet each customer to review their outstanding balance and current situation, offering the most favourable repayment options available.
“We anticipate that most customers will be able to pay off their balances within six months. This means they can be in good standing with BPL before the peak summer period of 2025, clearing their previous debts.”
“Our data indicates that more than half of the 2,000 customers without service are located in New Providence. Eleuthera has about 200 disconnected accounts, while Abaco has just under 150,” said Ms Seymour.
“Despite lower numbers in the Family Islands, every jurisdiction in The Bahamas has customers who can benefit from this campaign, and we encourage them to take part. We view this reconnection initiative as part of our corporate social responsibility, and our analysis suggests that ‘Merry and Bright, turn on your lights’ campaign will be advantageous for BPL as well as the customer.
“It will help foster positive relationships between our customers and ourselves. I take pride in initiatives like this that allow us to collaborate on strategies that benefit our customers while addressing our receivables challenges.”
Ms Seymour said participants can expect to be reconnected within two days of paying the 10 percent deposit. However, those that have been disconnected for more than six months will require a meter inspection to ensure safety. She indicated that outstanding balances range from $500 to thousands of dollars, and the initiative will benefit customers and BPL.
x-rays, and to “get the actual main x-ray up and going in order for us now to begin to take that facility to an urgent care facility”.
“And so we intend to get the dental service,” Dr Darville said. “As a matter of fact, me, the director of public health and the director of oral surgery will be in Thailand, I think sometime this month or early next month to make sure that all of the WHO requirements are met for us to expand our footprint for dental services throughout the Family Islands as well.
So my biomedical engineers will be in their next week, weather permit, for the final checks for us to ensure that all of the dental equipment and the panoramic x-ray machine that was put in there initially, we believe that they’re currently obsolete now, and we need to replace them.
And so they’re going to be looking at our x-ray machines to disassemble the unit, because we have already gotten approval for 14 new x-ray machines to be placed throughout the Family Islands, and one of them will be in Exuma. And we are moving swiftly to get the medical equipment in place now that I have a formula for the manpower. We got the medical equipment. And so our first step for Exuma is to get Exuma up to an urgent care facility, and we have the manpower resources that we intend to bring in the country before the end of the year to start the process. But as I speak, I have the allied healthcare professionals already in the country doing their
Housing shortage hits Exuma hospital staffing
By ANNELIA NIXON Tribune Business
A CABINET minister is urging Exuma residents to invest in rental housing so that the staff required to make the island’s mini-hospital fully operational have somewhere to live.
Dr Michael Darville, minister of health and wellness, told Tribune Business that “Exuma housing is a problem” given that four more doctors are needed to staff the mini-hospital. “Healthcare is a growing profession,” he added. “We want to expand the services in Exuma. We’re planning to do it.
“We have finally finished our interviewing exercises to recruit nurses and doctors to be able to accomplish this. Yes, there are shortages. And so the community of Exuma could rise to the occasion to assist the Government for accommodation of nurses, doctors, teachers. It’s a growing workforce, and they need accommodation. So the private sector may develop apartments, and if not, the Government will have to intervene.”
“And so we’re going to have to find accommodations, and the community must be able to work with us in order to do it because
healthcare professionals, dental professionals are absolutely essential, along with teachers,” Dr Darville added.
“And so we’ve been looking at our assets that we have on the Family Islands. I know, in Abaco, I have some assets that have been dilapidated for about eight, nine years that we are now looking at to renovate because sometimes we have to find accommodation for our staff.”
Dr Darville said Bahamians can “win” by allowing the Government to rent from them as it could “pump” significant money into the economy.
“Sometimes going into these Family Islands,
essential rotations at the Princess Margaret Hospital before being deployed to the Family Islands.”
Mr Nixon also pointed out the need for a doctor specialised in handling dialysis, however, Dr Darville told Tribune Business that a dialysis unit is not on the agenda for this budget cycle.
“Dialysis is a very complicated thing - the economic situation associated with dialysis. We’re not speaking about putting a dialysis unit in Exuma. We need to renovate the Princess Margaret Hospital, legacy ward, and create additional dialysis beds in new providence. So my entire dialysis program as it stands right now, is focus, laser focus, on improving the delivery of dialysis services in new Providence first.”
Mr Nixon also stressed the need for a gynaecologist and prenatal care on the island to which Dr Darville said will become able once the facility has been upgraded to urgent care status.
“When we create this into an urgent care facility, we will be doing the antenatal services in Exuma. We may not in the initial stages, do general deliveries, simply because we have to put some other things in place.
“So let’s do one step at a time. Step one is urgent care. Step two is going into more sophisticated things, like getting some surgeries done there. And step three is to add more secondary healthcare services at the facility itself.”
accommodations are very hard. And I had a major problem in Inagua with that. So that is an issue that the ministry is looking at,” he said.
“But we are also hoping that private sector groups on Exuma and the Family Islands will invest in accommodation and win from us renting. So we’re looking to find a way for how locals could be empowered with real estate to rent to the Government. Because it’s not always good to go there and build it. Sometimes it’s good to pump into the economy.
“So there is a great need for rental space in Exuma, Abaco and even Bimini. And yes, I’m bringing in 23 to 25 doctors to fill in the gaps. Fortunately, the bulk of the doctors, the majority of four, will be in Exuma. I need an additional in Abaco,” Dr Darville continued.
“I do not really need that many, but Exuma will be the one that gets the largest amount of doctors out of the batch that’s coming in. So, yes, that’s something that we have a discussion on, on where they would stay, first of all, in the short-term and then in the long-term. So that’s an issue. Housing is always been an issue.”
Dr Darville said transportation is another issue
he is facing as it pertains to sending healthcare workers to Exuma. However, an Inter-American Development Bank (IDB) loan has helped finance 15 ambulances to improve ground transportation.
The minister said he is looking to train students from the Family Islands through grants and scholarships and have them return to their respective islands for service. “You take, for instance, in Exuma,” he said. “We would like to recruit nurses as well as allied healthcare professionals from Exuma, train them so that they could be domicile at home.
the Family Islands, trying to recruit students to be a part of this programme that we’re starting with Bahamas Baptist University, where they can come into Nassau.
“Rather than bringing someone in from Nassau, the ones in Exuma, they just go home. And so the Public Hospitals Authority, my ministry, we’ll be sending flyers and information to all of our clinics throughout
“They can be trained and, on completion with their clinical rotations in the hospital, they can be placed in the community, particularly at the Exuma clinic that is going to be converted to an urgent care facility first, and then we’ll add additional services after we finish that blueprint.”
DR MICHAEL DARVILLE
Minnis: $1.6bn Sarkis verdict ‘tip of iceberg’
announced by the Prime Minister will “sweep it under the rug” and address none of the questions raised by Judge Borrok’s verdict.
Arguing that Mr Izmirlian “is owed an apology” by the Government and then-Christie administration, Mr McCartney told this newspaper that the matter “warrants an independent Commission of Inquiry” to deliver the answers sought by the Bahamian public and also reassure investors that their projects and capital are safe in this nation.
Tribune Business reported yesterday that the ruling, and way in which it found for Mr Izmirlian and his BML Properties vehicle on all the key points, will again renew questions, scrutiny and doubts over the then-Christie administration’s handling of the Baha Mar dispute and why it so eagerly went all-in to support China Construction America (CCA) while opposing the original
developer’s Chapter 11 protection bid. Key decision-makers in the Baha Mar dispute were tight-lipped yesterday. Former prime minister, Perry Christie, declined to speak on the basis that he had yet to read the 74-page ruling. “I’ve got to read the judgment before I comment on it,” he said. Similarly, Sir Baltron Bethel, who was Mr Christie’s senior policy adviser and one of the leading officials working on resolving the Baha Mar impasse, also declined to respond. Asked by this newspaper whether he wanted to comment on the judgment’s findings, especially those sections relating to himself and his son, Leslie, he replied: “None whatsoever. I’ve said everything I want to say.”
However, Fred Mitchell, minister of foreign affairs and the PLP’s chairman, sought to largely downplay and dismiss Judge Borrok’s verdict in a message that aimed to reassure party supporters while telling Mr Izmirlian to “suck salt”.
Urging Bahamians not to accept the judgment at face value, the Fox Hill MP also described corruption-related allegations against Bahamian officials as “almost certainly false” and “irrelevant” to the legal issues at the heart of the dispute. He also branded Mr Izmirlian as a “failed developer”.
Judge Borrok had ruled the “evidence establishes” that $2.3m paid by CCA to Notarc Management Group, a company run by Sir Baltron’s son, Leslie, was designed to “curry favour” and “gain access” to Mr Christie’s senior policy advisor and the Bahamian government when the Baha Mar dispute was at its peak.
However, both Sir Baltron and his son denied to Tribune Business two years ago that the payments influenced the former’s stance towards the dispute and its participants, or his advice to the Government and its actions.
Sir Baltron, who was the Government’s ‘point
person’ in dealing with the Baha Mar controversy, said he had acted “with complete integrity and objectivity” on the Government’s behalf and there was no connection or interaction between himself and Notarc “at that time”. Leslie Bethel, meanwhile, asserted that claims of anything untoward over the $2.3m payments were “political mischief”, and they were “unrelated” to Baha Mar.
Dr Minnis, though, was unconvinced. “There really needs to be an independent investigation into who may have received improper payments in the Baha Mar situation,” he told Tribune Business. “There may have been others in the former PLP administration who received such funds.
“This ruling may just be the tip of the iceberg of what really happened with the building of Baha Mar, and I will have more to say when Parliament convenes. This is too big, this is too big. It’s a black eye for The
Bahamas. We cannot just leave it like that.” Asked whether a Commission of Inquiry into the Baha Mar controversy, and the Christie administration’s handling of it, is justified given the multi-billion dollar project’s significance to the Bahamian economy and involvement of Chinese government-owned entities, Dr Minnis replied: “You hit the nail on the head.”
His position was backed by Mr McCartney, who told this newspaper: “It would seem that Mr Izmirlian is owed an apology first and foremost. I note the Prime Minister said he was going to have the attorney general loo at the judgment or do an inquiry. I think we all know nothing will come out of that.
“I think something more substantive ought to be done for public consumption as opposed to there being just an inquiry as the Prime Minister suggested. This is such a significant judgment, and has a lot of implications especially where they’ve alluded to fraud being perpetrated in that judgment.
“I think it’s warranted that more than an inquiry be done in this matter. Certainly I think it warrants an independent Commission of Inquiry. The fact the Prime Minister says he’s asked the Prime Minister, that’s sweeping it under the rug. Nothing happens. We’ve seen previously where the Prime Minister has called for inquiries to be done and nothing has been done. This warrants a Commission of Inquiry.”
The Government’s opposition to Mr Izmirlian’s Chapter 11 bankruptcy protection bid was cited as a key reason why the Delaware judge ultimately rejected the case and allowed it to be resolved by the Bahamian judicial system. This contributed to the series of events that ultimately led to the original Baha Mar developer being ousted.
Explaining why a Commission of Inquiry is required, Mr McCartney said: “This really has implications for The Bahamas and future foreign investors. Looking at the judgment, looking at the ruling, determining what the judge has said and alluding to fraud and what have you, I think for The Bahamas’ sale and the sake of those wishing to invest in The Bahamas further, that a Commission of Inquiry be done.
“This will settle the minds of the Bahamian people first and foremost, and secondly of any foreign investor, as this could act as a turn-off for any further investments in this country. The Government ought to do a Commission of Inquiry. Whether that would be politically astute for the PLP, that’s another story, but in the interests of the country a Commission of Inquiry is warranted.”
Mr McCartney said the 2015-2017 controversy surrounding Baha Mar left multiple unanswered questions, including the then-Christie administration’s decision to “switch sides almost overnight” and back CCA and Baha Mar’s financier, the China Export-Import Bank, over Mr Izmirlian. It was critical, he added, to determine whether its actions and decisions worked in the best interests of The Bahamas and its people.
“I think the Bahamian people have the right to know what is the real deal,” the ex-DNA leader said.
“Let’s see where it goes. If the Government is serious, and seriously wants the answer to these questions, he would ensure that an independent Commission of Inquiry is done as opposed to sweeping it under the rug. This review by the attorney general is pushing it down the road and hoping Bahamians forget about it.
“This was a huge development. The Bahamian people should get the answers. They ought to know whether or not the things that the then-government did were best for them or otherwise. They ought to know because of the significance of it. The judgment speaks about developments that happened in The Bahamas. It’s for the economy and future development of the country.”
Mr Mitchell, though, argued that the Christie administration’s actions at the time had worked in The Bahamas’ favour because Baha Mar has been open for more than seven years and employing more than 5,000 persons under current owner, Chow Tai Fook Enterprises (CTFE).
“Bahamians should approach with caution and scepticism the recent ruling in the case of the failed Baha Mar developers against China Construction,” Mr Mitchell said. “The judgments in US courts have been known to have a history of being overturned on appeal.
“One must be careful also on accepting comments and conclusions in a judgment that has nothing to do with the central issues in the case. That is certainly the position with any comments about alleged corruption with Bahamian officials. On the face of it, the comments are irrelevant to the central legal issues and almost certainly false.”
Mr Izmirlian cannot reclaim ownership of Baha Mar as that has long been put beyond doubt. Hitting out at the original developer, Mr Mitchell added:
“The facts, as we know it, are that the failed developers defaulted twice on their obligations to pay their bills.
“The first loan was called by Scotiabank. They were then rescued by the China Export-Import Bank through the intervention of the Bahamas Government. The developers defaulted again on their obligations even as they were in good faith negotiations with the Government to rescue the project.
“They, without notice in those good faith negotiations, filed for bankruptcy in the US courts. The US courts declined jurisdiction in favour of The Bahamas,” the PLP chairman added.
“The liquidation was a pure and simple case of default on a mortgage, and the property was put up for sale on the open market. It is now a huge success with 5,000 Bahamian workers and a banner year in tourism.
“Because the failed developers didn’t get their way in the Bahamian courts, they ran to the US courts, where they have now found fertile ground.... The Baha Mar project is a success. The judgment is irrelevant to that success and, unfortunately, for them, the failed developers have to suck salt.”
Pintard wants independent investigation of Baha Mar
By ANNELIA NIXON Tribune Business Reporter anixon@tribunemedia.net
THE Opposition’s leader yesterday demanded an independent investigation into the then-Christie administration’s handling of the Baha Mar dispute following the original developer’s $1.6bn legal victory. Michael Pintard argued that claims the former administration helped China Construction America (CCA), Baha Mar’s main contractor, oust Sarkis Izmirlian and his BML
Properties vehicle “tarnish the reputation of The Bahamas as a credible and legitimate place to conduct business.”
Pointing out that Prime Minister Philip Davis KC was deputy prime minister during the Baha Mar controversy, Mr Pintard argued that “credible and independent parties” need to examine how the thenadministration handled the matter to produce an “appropriate and impartial and fully transparent set of conclusions.”
“We believe that the gravity of this situation demands that the Prime
Minister act responsibly and ensure an immediate investigation by credible and independent parties into the claims that officials of the administration where he served as deputy prime minister may have been influenced in their decisions and recommendations regarding the Baha Mar matter,” Mr Pintard said.
“The Prime Minister must rise above his instincts to protect members of the PLP and demonstrate that The Bahamas is a country of laws and that no one, absolutely no one, is above justice at this time.” Mr Pintard said at the time the
Opposition found it strange that the Christie administration became involved in the dispute by siding with CCA and opposing Mr Izmirlian’s Chapter 11 bankruptcy protection bid.
“What we actually said was that there was a commercial dispute between partners. I was chairman of the FNM at the time, and that this commercial conflict had to be resolved in the best interest of our jurisdiction, given the value of that investment and its potential impact not just on our economy, but the reputation of the country, which would affect future
BONEFISH FEARS OVER $985M SOUTH ABACO RESORT PROJECT
importance, the Trust added: “Bonefishing, a cornerstone of Bahamian sportfishing tourism, contributed upwards of $169m annually to the national economy in 2018 and has thrived since then.
“The preservation of critical habitats, like the PSA sites, is essential to the continued success of this industry, which supports local fishing guides, resorts and other tourism businesses across the islands. Each year, bonefish return to their ancestral spawning routes, gathering at PSA sites before migrating into the deep sea to reproduce.
“Alterations to the coastline, or construction of marinas and other overwater structures, could block these natural pathways. Such disruptions risk decreasing successful bonefish spawning, causing population declines that could undermine the fishery’s long-term viability.”
Urging caution from both the developers and government regulators, the Trust added: “Scientific studies, such as fish tagging, should
be employed to understand the potential effects of the development on bonefish migration. These and other studies can guide necessary protective measures and ecosystem restoration plans to minimise any fishery disruptions and offset environmental harm from construction.
“Protecting bonefish PSA sites and migration routes is crucial not only for the health of the bonefish population but also for the livelihoods of Bahamians who depend on this fishery.
A balanced solution is possible, one that allows for economic growth in South Abaco while safeguarding our natural resources for future generations.
“BTT is committed to working with all stakeholders to find that balance.
As public consultations on the Kakona development advance, we call on the developers and government officials to fully consider local community voices and the latest scientific evidence in their decision-making process.”
Kakona’s own EIA acknowledges the importance of fisheries to Sandy
Point and South Abaco’s existing economy. “Fishing is a major source of food and income for residents of Sandy Point,” it said. “Sports fishing is also a popular activity in the area with reef fish, mangrove species and deep water species as targeted species...
“Recreational fishing activities are popular in Sandy Point ranging from bone fishing in the sandy flats surrounding the settlement or other forms of sports fishing, scuba diving and marine mammal watching in the deep waters of the north-west Providence channel less than a mile off the coast of south Abaco.”
The developer’s EIA, produced by Bahamian consultancy BRON Ltd, said the natural resources of the nearby Abaco National Part “hold great potential for eco-tourism opportunities for residents and visitors”. It added:
“The park is easily accessible and the supporting tourism infrastructure in Abaco lends itself to the development of nature tourism activities with birding and hiking being the
two most popular activities in the park.
“Abaco has the best birding of any island in The Bahamas. The Abaco National Park is an important bird area (IBA) as it protects critical feeding and breeding grounds for the endemic Bahama Parrots as well as other endemic birds.... It is possible to see more Bahamian specialties on Abaco than on any other island.”
However, Kakona’s EIA warned construction activities could have “severe adverse impacts” at the three sites they plan to develop. South Abaco Land Development Company plans to develop three sites - one on Abaco’s southwestern tip, and two on the eastern side. To the west, Leeward Harbour will be located one mile south of Sandy Point with its northern boundary immediately adjacent to the community’s air strip.
Among the planned amenities is a 225-slip marina. The project, which will be flagged by the highend Setai resort brand, also intends to develop two sites to be called High Bank Bay
investments,” Mr Pintard said.
“We found it not only strange, but we found it to have a bad scent, that the Government was injecting itself into this commercial conflict and immediately choosing a particular side in this conflict. Given some of the other allegations that were swirling at the time about conflicts of interest between not just persons who were on the front line of politics, but persons who were connected to them, politically exposed persons, we thought the Government was opening itself up to accusations that would sully not just their reputation but the reputation of the country.
and Conch Sound Point on the Abaco’s south-eastern tip. The former will cover 503 acres, and feature a 30-room resort, 25 cottages and 150 residential lots available for sale, plus an 18-hole golf course.
Conch Sound Point, meanwhile, is a 375-acre tract that will include another hotel, 25 cottage and 100 “private estate lots”. The EIA confirms that High Bank Bay “abuts” the Abaco National Park on its western boundary, and acknowledges that “the park protects a critical breeding habitat for the endemic Abaco Parrot”.
While detailing a series of mitigation strategies that “have the potential to lessen and even eradicate environmental impacts” from the project’s development activities, the EIA added: “The potential socio-economic benefits of this project are muchneeded among the locals and stakeholders of South Abaco.
“Despite the potentially adverse impacts associated with the construction and operation of the proposed project, the overall design of the project and developer’s commitment to a low density, low impact residential community will allow
Residents voice concern on Mosko Group zip line
“It’s a little bit more of a thrill ride going over it, but we will look at it. It’s not the only thing we’re trying to do here, so if we have to look at that more closely to keep the entire project on, of course we will, but it’s just one minor component of a very large project.”
The project, which is intended to appeal to both Bahamians and tourists, is targeted for a site between Sandyport and Caves Village that is already owned by Vakis Ltd, which also holds developments such as the Harbour Bay Shopping Centre. It will be centred around the former residence of George Mosko, which featured in the James Bond movie, Thunderball.
Mr Knowles said the project is expected to create 50 to 100 jobs in the construction phase and over 50 full-time positions. He added that there will be “no delay” in beginning construction once the required approvals are granted.
Mr Hanna, a nearby resident, urged the developers
to reconsider placing the zip line as it would block the view of beach goers and be a “tacky” addition to the public beach. “A lot of us go out on that beach area, sit down and just enjoy the view and watch the sunset in the evenings; we do it a lot,” said Mr Hanna.
“I definitely do not want to see people on zip line screaming up and down when I’m trying to catch the beautiful sunset.. That zip line, I have a serious problem with that, and so I would ask that your team reconsider.
“Honestly, I don’t think that would be a good idea putting that there, particularly for the residents in this area. That zip line would look so tacky, and while you’re trying to enjoy the beach there are screaming people going up and down. So, certainly I would not agree or support that zip line.”
Senator Michaela Barnett-Ellis raised concerns of pedestrian safety and increased traffic due to persons crossing the street to
get from the parking lot to the Rock Point beach club.
“I’m also concerned about the level of traffic, because the parking lot is on the other side of the road,” she said.
“What I’m trying to determine is the level of traffic that’s going to be crossing, particularly as that part of the road, there’s no traffic lights, there’s no crosswalks. Persons drive it because it is a quicker route because you don’t have those stops. Obviously, if there’s now going to be pedestrians regularly crossing that road, that impacts the flow of traffic.
“The volume of people walking across the road is going to impact the road users that use that area. In considering whether this project is suitable for this location, part of considering that is how is it going to impact those who use that area.”
Mr Cowell, a nearby resident, said the development could ruin the “peace and quiet” of the neighbourhood as guests traverse the
property and participate in activities. “All these people who live here in Sea Beach, the quiet is going to be gone,” said Mr Cowell.
“I have no problem, no issues with anybody going on the beach and having fun, but you’re talking about a commercial property now into a residential area, and you have 50 to 100 people, perhaps on a daily basis, frequenting this property and the residents are going to have to put up with that 24/7, 365.”
Mr Cowell also raised concerns about pedestrian safety while accessing the project, and suggested signage and pedestrian crossings be installed to prevent “liability issues”.
“If you have a full day and the parking lot is filled and there’s no more parking, where are the residents going to go?” he said.
“You know how people go. Maybe they’ll park all over the road. What about the kids that are going to be traversing from the parking lot to the beach? You’re going to have accidents
“So the outcome today is not strange. It is strange to others, maybe, who are not familiar with that situation. And it may also be strange to Bahamians who fail to recognise what this government is doing right now.”
for effective mitigation strategies to be employed during construction and operations phases of the project.”
Breaking down Kakona’s impact by site, the EIA said: “The project’s activities at Leeward Harbour, which have the potential to cause severe adverse impacts, include impacts to terrestrial and marine habitats due to upland clearing and creation of upland infrastructure associated with the marina and aerodrome, as well as the impact to the marine environment due to the creation of the marina and flushing channels....
“The proposed project development at High Bank Bay and Conch Sound Point will have some moderate to severe impacts on-site and potentially on the immediate environments surrounding the properties. High Bank Bay and Conch Sound Point project activities which have the potential to cause severe adverse impacts include impacts to terrestrial habitats and bird populations due to land clearing during the creation of the golf practice courses and upland infrastructure.” Historical ruins could also be affected by construction and road clearing.
and fatalities. Kids are only thinking about having fun. They’re not looking for the traffic. You know, they’re not mindful of those things.
“Think about things like proper signage and barriers to prohibit people from crossing over into the property from the beach. Now, that’s something that I think really, really needs to be looked into - the pedestrian access,” he continued.
“I think that there are a lot of issues there... the crossing from the road, the main road. It’s something that you’ve got to really consider about having some type of crossing there for pedestrians to go across.
That’ll be a lot of liability issues.”
Another resident said he is in “full support” of the development as it will create more activities in the area for short-term rental owners to attract guests and boost the economy. He noted that for the development to operate in that location the road would have to be repaired.
“I’m in full support of your project,” he said. “You are here to open a beach club, which is good for the Bahamian economy. It’s good for those who have vacation rentals in the neighborhood, which I’m sure a lot of you do. I don’t know about y’all but I’m sick and tired of when foreign guests come to me, and they’re like, so what is there to do, just Baha Mar and Atlantis?
“I’m sick and tired of telling them that. Now we can say, hey, we got the Rock Point development right up the street. Have a good time. That road, I think if you could get that rerouted, I think you’re on to something but that’s something that should be top priority. I love the idea and I’m in support of the zip line. I love the zip line.”
NOTICE IS HEREBY GIVEN that in accordance with section 138(6) of the International Business Companies Act, 2000, as amended, the winding up and dissolution of HHI CORPORATION LIMITED is complete.
Kim D Thompson Sole Liquidator
MICHAEL PINTARD
$600m Bimini lawsuit an ‘exorbitant payment’ ploy
Genting Americas is preparing a comprehensive response to the complaint, which will be filed with the court in the coming weeks.”
RAV Bahamas, which holds 22 percent equity ownership of Resorts World Bimini and BB Entertainment, is alleging that Genting Americas turned the project into a “financial wasteland” via a near-billion dollar liability “dump”. The spectacular breakdown in the longstanding relationship with the multibillion dollar Malaysian conglomerate was revealed in a lawsuit filed with the south Florida federal court on Monday, October 7, with RAV Bahamas asserting that “a massive and coordinated fraud” has left the real estate and other assets it contributed to their Bimini partnership “essentially worthless”.
RAV Bahamas is essentially accusing Genting of using its 78 percent majority ownership, plus Board and management control, to conceal how it funnelled hundreds of millions of dollars in liabilities incurred elsewhere in its global
empire on to the Bimini resort’s books. Complaining that this has undermined the value of its investment, while also “depriving” it of expected profits, RAV Bahamas claimed that Genting “has deliberately kneecapped” its attempts to gain a true understanding of Resorts World Bimini’s true financial position by denying “full access” to the property’s financial records and its calls for an independent audit. The financial statements for BB Entertainment, the Bahamian-incorporated holding company for Resorts World Bimini, reveal that the project has consistently incurred annual losses amounting to tens of millions of dollars ever since RAV Bahamas teamed with Genting some 12 years ago in 2012. BB Entertainment’s 2022 audited financials saw the EY (Ernst & Young) accounting firm qualify the report by noting a “material uncertainty related to going concern”. It wrote: “We draw attention to note two in the financial statements, which indicates that the company incurred a net
loss of $151.284m during the year ended December 31, 2022.
“As of that date, the company’s current liabilities exceeded its current assets by $70.546m and had a net equity deficit of $693.665m. As stated in note two, these events or conditions, along with other matters as set forth in note two indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.”
That year’s $151.284m loss followed $114.22m worth of ‘red ink’ that Resorts World Bimini incurred in 2021, which both exceeded the $105.581m loss generated in 2020 when the COVID-19 pandemic was at its height and the $69.624m hit sustained in 2019.
BB Entertainment’s financials showed that, at year-end 2022, the company was effectively insolvent with some $191.511m in assets dwarfed by $885.176m in total liabilities to produce the $693.665m solvency deficiency. Of the $191.511m in total assets,
ployee looks on during a visit to McDonald’s in Feasterville-Trevose, Pa.,
the majority - $165.254m - represented the value of Resorts World Bimini’s real estate, with its holding entity possessing just under $3m in cash and equivalents.
The majority of BB Entertainment’s liabilities, some $795.452m, was described in the financials as “borrowings” from BB Investment Holdings, the entity through which Genting holds its 78 percent majority stake in the project. Some $578.848m of this sum was said to be “interest bearing” at a rate of Bahamian Prime plus 5 percent, which would be 9.25 percent.
It is unclear if RAV Bahamas lawsuit is impacting Resorts World Bimini’s operations, with the hotel and associated amenities responsible for employing several hundred Bahamians and serving as the ‘anchor’ project and main economic activity driver for the island. However, the nature of the dispute between the project’s sole two shareholders, and Boardroom divide, can only be negative for all concerned.
Setting out the crux of its complaint, RAV Bahamas
alleged in its lawsuit: “To date, BB Entertainment has not distributed any profits to RAV from this venture because Genting Americas, who controls BB Entertainment’s finances, has used BB Entertainment as its financial wasteland.
“Through its stranglehold over BB Entertainment and its finances, Genting Americas has used BB Entertainment to conceal a medley of fraudulent activities.” Detailing at least five such sins, Mr Capo and RAV Bahamas said that, through their minority interest in Resorts World Bimini, they have been forced “to absorb 22 percent of various costs and expenses illegitimately shifted in to BB Entertainment’s” accounts.
“What is clear is that Genting Americas’ fraudulent accounting practices have drowned BB Entertainment in hundreds of millions of dollars in illegitimate debt,” RAV Bahamas blasted. “BB Entertainment’s 2022 audited financial reports reflect total liabilities of nearly a billion dollars ($885.176m).
“Only a massive and coordinated fraud could dump nearly a billion dollars of debt on a small island resort where RAV had already developed most of the significant infrastructure. Genting Americas buried the nearlybillion dollar liabilities in consolidated statements using vague categories of expenses to conceal the fraud from RAV.
“Genting Americas, at every turn, has deliberately kneecapped RAV’s efforts to obtain clarity into the financials, including denying RAV full access to BB Entertainment’s financial records and denying its requests for an independent audit,” RAV Bahamas continued.
“This lawsuit seeks the damages that Genting Americas’ continuing fraud has caused, which include but are certainly not limited to rendering RAV’s contribution to BB Entertainment - the 20 acres of land - entirely worthless.” As a result, Miami-based Mr Capo and his development vehicle are demanding that the south Florida court award damages that “exceed $600m”.
MCDONALD'S AGREED TO TRUMP EVENT BUT SAYS IT ISN'T ENDORSING
A PRESIDENTIAL CANDIDATE
By DEE-ANN DURBIN AP Business Writer
MCDONALD'S Corp. agreed to host former President Donald Trump at a Pennsylvania store over the weekend but said it isn't endorsing a candidate in the U.S. presidential race. Trump staffed the fry station at a McDonald's in suburban Philadelphia on Sunday before answering questions through the drive-thru window. The restaurant was closed to the public for the Republican nominee's visit.
In a message to employees obtained Monday by The Associated Press, McDonald's said the owner-operator of the location, Derek Giacomantonio, reached out after he learned of Trump's desire to visit a Pennsylvania restaurant. McDonald's agreed to the event.
"Upon learning of the former president's request, we approached it through the lens of one of our core values: we open our doors to everyone," the company said. "McDonald's does not endorse candidates for elected office and that remains true in this race for the next president. We are not red or blue – we are golden."
The Chicago burger giant said franchisees have also invited Vice President Kamala Harris, the Democratic nominee, and her running mate, Gov. Tim Walz, to their restaurants.
The Associated Press left a message seeking comment with the Harris campaign.
McDonald's said it has "been a fixture of conversation this election cycle" even though it hasn't sought that attention. At several campaign stops and during interviews, Harris has recalled working at McDonald's for spending money during her college years. Trump has claimed – without evidence – that Harris is lying.
McDonald's sidestepped that issue in its employee message. The company said it is proud of "Harris's fond memories working under the arches" and noted the often-cited figure that 1 in 8 Americans works at McDonald's at some point.
"While we and our franchisees don't have records for all positions dating back to the early '80s, what makes '1 in 8' so powerful is the shared experience so many Americans have had," McDonald's said.
Trump's appearance led to some backlash on social media. Google searches for "boycott McDonald's" briefly surged Monday
morning, and some Twitter users vowed not to return to the chain after Trump's event. Chris Hydock, a marketing professor at Tulane University's Freeman School of Business, said that authorizing the visit was a risky move for McDonald's. Hydock said his research shows that when brands become associated with divisive candidates or positions, whether purposefully or not, customers who dislike those positions tend to react more strongly than those who don't dislike them.
Small companies can still benefit sometimes, Hydock said, since even a divisive position wins them attention and customers. But in the case of a big company like McDonald's, everyone is already aware of the company.
"Trump working at McDonald's can't attract more customers," he said. "All it can end up doing is pissing some people off."
But Lori Rosen, president of the public relations firm Rosen Group, said McDonald's won't likely see long-term damage from the event.
"The coverage and publicity alone generated from McDonald's agreeing to have former President Trump work at one of their franchises already surpasses the negative chatter on social media ," Rosen said. "I am not sure if the American people will benefit from this publicity stunt. However, McDonald's comes out ahead."
Bruce Newman, a professor in business ethics and marketing at DePaul University's Driehaus College of Business, agrees.
"They look like the company that's getting the attention of the presidential candidates, and it heightens the awareness of the brand," he said.
Newman added that Trump was likely trying to put a different, more casual face on his campaign, wearing a smile and an apron instead of a suit jacket.a
REPUBLICAN presidential nominee former President Donald Trump, left, uses a frier as an em-
