11042016 business by tribune242

FRIDAY, NOVEMBER 4, 2016

business@tribunemedia.net

$4.10

$4.14

Top investors lead Port Dept’s $5m debtor list By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Cruise lines owe thousands, taking 5 years to pay

The Port Department has been blasted for failing to collect almost $5 million in due revenues, with some of the Bahamas’ largest investors owing unpaid bills dating back to the last century. A newly-released Auditor General’s report, which examined the agency’s accounts over a two-year period to end-June 2016, expressed “great concern” over “weak internal controls” and its failure to enforce the law. The report, which has been obtained by Tribune Business, revealed that at end-June 2016

Atlantis marina said to owe $363k in annual fees Auditor General slams non-enforcement, controls some $3.868 million in annual fees and tariffs for services provided by the Port Department had not been collected in New

Providence or the Family Islands. And a further $921,390 in due revenues was outstanding at Potter’s Cay, with the monies due including pierage fees for mailboats and fishing vessels, plus water provided by the Port Department. The Auditor General’s report also disclosed that some of the Bahamas’ largest, and wealthiest, foreign investors were among the Port Department’s greatest debtors. The Atlantis marina was shown as owing some $363,837 in annual fees, with part of this debt dating back almost two decades to 1998 - when Kerzner International still owned the

property. And the world’s two leading cruise lines, Carnival and Royal Caribbean, owe the Port Department some $628,284 for water supplied to them at Prince George Wharf. Some of these debts date back to 2010, with the cruise lines’ accounting for 86.5 per cent of the total $725,535 owed for water usage at the Bahamas’ main cruise port. “As a result of our examination of the accounting record, we noted that outstanding amounts continue to increase,” the Auditor General’s report said. “We were advised by the See pg b4

Employment may ‘slightly improve’ after Matthew By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

The Baha Mar development.

‘Low hanging fruit’ to receive $8-$10m Baha Mar payout By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Payments start for 150200 Bahamian creditors

Baha Mar’s creditor payout committee yesterday estimated that up to 200 Bahamian companies will receive a collective $8-$10 million, as it begins cheque distributions to more “low hanging fruit”. See pg b5

Companies owed $500k or less set to benefit Payout committee ‘right on target’ for year-end finish

Key industries to get ‘more flexibility’ on foreign capital access By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Certain industries will be given “more flexibility” than others to raise financing from foreign sources should the Central Bank’s latest proposed exchange control relaxations be approved, its Governor said yesterday. John Rolle, while not naming these sectors, indicated that they would be those playing key roles in the Bahamas’ national development, and/or having significant potential to earn foreign currency. He confirmed to Tribune Business that the latest measures being eyed by the Central Bank were designed to boost economic (GDP) and business growth by improving Bahamian firms’ ease of access to credit. “We do not want to prejudge the outcome,” Mr Rolle told this newspaper via e-mail of the latest proposed liberalisation measures. “However, the expectations is that some sectors more than others would be given more flexibility to raise financing outside the Bahamas or in foreign currency (from local sources), provided the activities are also aligning with our national development goals or would enhance our ability to earn net foreign ex-

Exchange control reforms to aid growth, funding Private sector lending down $51.5m year-to-date Central Bank seeking data to bolster case

John Rolle change. “We are also keeping an open mind as to how our commercial banks could be involved in any reformed outcomes.” Tribune Business reported yesterday how the Central Bank is eyeing further exchange control liberalisation measures that would allow Bahamian companies to obtain capital and See pg b6

The Central Bank of the Bahamas yesterday gave a mixed short-term outlook for the Bahamian economy post-Hurricane Matthew, predicting that employment may “slightly improve” even though the tourism industry will be “below trend” in the Christmas run-up. The regulator, in an analysis prepared by its research department, suggested that the Category Four storm’s impact on the 12.7 per cent unemployment rate depends on whether construction industry activity offsets reduced tourism jobs. Noting that the Department of Labour is currently preparing its November Labour Force survey, the Central Bank said: “Employment should be stable to slightly improved due to construction labour demand.

Central Bank sees construction offset to tourism Banks foreign currency purchases fall 25% Reinsurers meet $200m, or 50%, of insured losses “Results will be influenced by the large increase in demand for construction workers for building repair activities. Temporary underemployment will, however, persist in the resort sector in Grand Bahama.” The Central Bank also warned that “skills shortages could surface” in the construction industry, “given the significant volume of repair See pg b5

$4.14

Minister admits Small Homes surveyor did ‘not produce’ properly And contractors not required to show proficiency Public Accounts minority back key FNM findings Brand China Ambassador’s conflict as ‘moot’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A Cabinet Minister has admitted that the company hired to oversee Urban Renewal’s $3.2 million Small Homes repair project was out of its depth, and that there were minimal qualifications required from contractors. The Public Accounts Committee’s (PAC) minority report on the programme, while intended to rebut the findings of its FNM majority, actually backed up several of the latter’s key findings when it came to project oversight and contractor quality. The minority report, presented by Shane Gibson, minister of labour and national insurance, conceded that CCMG Consulting, the quantity surveyor hired to oversee the Small Homes project, found the task “stressful and daunting”. The document, tabled in the House of Assembly, said the hiring of CCMG and its principal, Lisa Tucker, was approved by Deputy Prime Minister Philip Davis “after the Ministry of Works and Housing advised that they could not assist with providing a quantity surveyor or building inspectors”. The PAC minority report, produced by governing party members, Mr Gibson and Ryan Pinder, the Elizabeth MP, said “two professional quantity surveyors” were employed by CCMG. However, the minority duo then conceded: “CCMG found the workload heavier than expected, and the urgency for certificates of completion, stressful and daunting. “The [Urban Renewal] Commission realised it needed an in-house quantity surveyor as CCMG was not producing as expected, and engaged Randolph John to fulfill that role in August.” Messrs Gibson and Pinder do not provide a date for Mr John’s hiring, and their See pg b4

PAGE 2, Friday, November 4, 2016

THE TRIBUNE

Employee well-being is vital post-Matthew

braham Maslow provides a psychological framework that reminds us of how important it is to meet human needs, thus allowing people to achieve a level of self-actualisation, efficiency and productivity. When individuals are unable to have their very basic needs met, it becomes quite challenging for them to live out their best existence. Teachers, even in our local context, have proven this true. For on countless occasions they try to successfully engage students who have not enjoyed the necessary food and water intake. Every employer expects individuals to present themselves whole and complete

for work each day. They expect them to be physically, emotionally, spiritually and intellectually grounded, so that they have the capacity for a productive day’s work. Here, though, is our challenge. Life often throws curve balls that derail the normal stability and emotional well-being that, under normal circumstances, we experience. When death, loss, divorce, natural disasters or some other traumatising event occurs, we are often scrambling to regain our composure. The last thing on our minds is workplace efficiency. Hurricane Matthew has disrupted the normal psychology for many in the workforce, resulting in reduced productivity and self-

actualisation. The dimensions in Maslow’s ‘hierarchy of needs’ that are most affected are physiological and safety needs. We have long regarded the basic human needs as being food, water and shelter. When there exists a threat to any of these, persons have good cause to raise the alarm and allow their actions to slip into survival mode. The large number of displaced individuals in our various workplaces results in real fears that they will never replace the many things that they have lost. Additionally, the issue of safety - and our natural human need for it - is front and centre for many post-

Matthew. The chief concern is a fear of job insecurity. As a tourist destination, and with as many as 20,000 jobs severely impacted as a result of the storm, anxiety has begun to set in. In addition to the thousands who will not work for some time as a result of Matthew, there are many thousands who realise that their promotion, pay increase, company bonus and other benefits are on hold as a result of the devastation. These fears are real because the needs are real. Those employers serious about helping employees regain a strong sense of self-actualisation will acknowledge where the staff are, and offer support to ensure they get on the road

to recovery. Here is a quick three step plan to beginning this process: 1. Acknowledge that employees in your company have been affected. 2. Ascertain the severity of the concerns and needs that employees have as a result of the storm. 3. Provide a variety of interventions, ranging from loan assistance programmes to employee counselling, to address these concerns. NB: Ian R. Ferguson is a talent management and organisational development consultant, having completed graduate studies with regional and international universities. He has served

Ian ferguson organsations, both locally and globally, providing relevant solutions to their business growth and development issues. He may be contacted at tcconsultants@ coralwave.com

BISX executives address COB governance students Senior Bahamas International Securities Exchange (BISX) executives have met with, and fielded questions from, the College of the Bahamas’s (COB) corporate governance class. BISX’s chief executive,

Keith Davies, and chief operating officer, Holland Grant, spoke about the exchange, Exchange, securities law, and the listing and trading of securities. Mr Davies said: “These young lawyers in training

will be the generation that writes the next iteration of the BISX Rules and the Securities Industry Act, so it’s important to ensure that they are familiar with what went into previous versions of these documents.”

He added: “I would like to thank Ms Lisa Benjamin for having contacted BISX to arrange the session. As a former COB student, I know that I owe so much of what I have been able to accomplish to the hard work of my lecturers. As a lawyer, I’m also always enthused for an opportunity to meet with the next generation of legal professionals.” Ms Benjamin added: “The students thoroughly enjoyed the experience as did I. To have students learn about the exchange directly from the operators of it was invaluable. “Students were able to hear about the direct application of corporate govern-

ance principles, including the role of directors’ duties to the operation of the exchange, from both Mr Davies and Mr Grant. This application of theoretical principles to real world scenarios brings alive the issues we discuss in class. “ Gabriel Brown, a COB corporate governance student, said: “I thoroughly enjoyed our trip to the Bahamas International Securities Exchange. The session was truly an engaging, interactive and highly informative one. “We were informed about the history of the exchange up to the current day-to-day running, and even about possible future enterprises.

I can say that I acquired a vast amount of information in such a short session, and would advise others to take the time out to learn more about our very own Bahamian International Securities Exchange.” Mr Grant added: “BISX has a long history with the College. Both Keith and I are former students, and I donate time to the college as a part time-lecturer. “Keith is a frequent speaker to my class. We see this donation of time as one of the best ways to invest in those persons that will become our future employees, future investors and future business partners.”

Pictured is BISX Chief Executive Officer, Keith Davies (far right) with the group of students from the Corporate Governance class of The College of The Bahamas’s (COB) LL.B. Programme.

Trust analyst passes the Series 7 exam A Bahamas-based J. P. Morgan trust analyst has passed the broker/dealer Series 7 exam after training with the Nastac Group. Thurl Edwards said: “I would like to thank Almighty God for his guidance and favour upon my life. Also thanks to sublecture Anthony Stubbs, course instructor, and Reece Chipman, [Nastac] managing director.”

The Series 7 exam is administered by the New York Stock Exchange (NYSE) and the National Association of Securities Dealers (NASD). Mr Edwards can now apply to the Securities Commission of the Bahamas to be registered as a licensed broker and financial advisor. Thurl Edwards and Reese Chipman are pictured.

Share your news The Tribune wants to hear from people who are making news in their neighbourhoods. Perhaps you are raising funds for a good cause, campaigning for improvements in the area or have won an award. If so, call us on 322-1986 and share your story.

THE TRIBUNE

Friday, November 4, 2016, PAGE 3

Bahamas ‘fortunate’ over Registry leak

Cargo carrier gives 20% discount for storm-hit islands

By NATARIO McKENZIE

Junkanoo Air, a Bahamian-owned cargo airline, has aided Hurricane Mathew relief efforts, especially in Lowe Sound, Andros. “I am a son of the soil, so it was a natural response that Junkanoo Air helped my people,” said Christopher King, the carrier’s president, who is a Mangrove Cay native. With flights every weekday from Fort Lauderdale to the Bahamas, Junkanoo Air purchased and donated much-needed supplies, such as canned goods, water cases, baby diapers, feminine hygiene products and cereal. “It was really heartbreaking to see the devastation, but it was heartwarming to see Bahamians from near and far chip in to lend their support and assistance in any way necessary to bring most hard-hit areas back to some degree of normalcy,” said Mr King. Junkanoo Air is now offering discounted relief flights into the affected islands until 2017. All char-

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Bahamas Financial Services Board’s (BFSB) chief executive yesterday said the Bahamas had been “fortunate” in that the 1.3 million files ‘leaked’ from its Companies Registry were already public documents. Tanya McCartney, referring to the so-called ‘Bahamas papers’ leak, said the already-public nature of the information disclosed by the International Consortium of Investigative Journalists (ICIJ) mitigated any negative impact for this nation and its financial services industry. Ms McCartney, addressing a one-day Cyber Defense and Business Continuity workshop hosted by the Bahamas Telecommunications Company (BTC), said recent global events have emphasised the impor-

Impact ‘mitigated’ as documents already public tance of personal privacy and data protection. “In promoting the Bahamas as a responsible international financial centre (IFC), we extol the virtues of why people should choose to be here in the Bahamas. Key to this is personal privacy and the advanced infrastructure – both physical and technological - that we offer in the Bahamas,” said Ms McCartney “Recent global events have emphasised the importance of personal privacy and data protection. We need only look at the current events influencing the US presidential elections, the unauthorised access to the client information of a firm in Panama, and the recent publication of data

Tanya McCartney from our Registrar General’s Department.” A free online database, created from 1.3 million files from the Bahamas’ corporate registry, was released by the ICIJ in September, giving the names of directors and some shareholders for more than 175,000 Bahamian-domiciled companies. The disclosure came five months after the Bahamian

financial services sector was dragged into the spotlight as a so-called tax haven’ following the infamous ‘Panama Papers’ release. “Fortunately, in the case of our registry, this information was publicly available, thereby mitigating any adverse impact of the disclosure,” said Ms McCartney. She added that good business practice, and the need to comply with the law, requires that cyber security measures are put in place. “This is especially important for the financial services sector, where persons expect, and the law requires, data confidentiality,” Ms McCartney said. “The reality is that most of the recent and far-reaching breaches have been as a result of third-party relationships with vendors. Ultimately, breaches in cyber security can have implications for our reputation as a responsible financial centre.”

Matthew highlights need for Business Continuity By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

Hurricane Matthew’s impact has underscored the need for Bahamian companies to implement business continuity management (BCM) and disaster recovery strategies, the Bahamas Financial Services Board’s (BFSB) chief executive said yesterday. Tanya McCartney, addressing a one-day Cyber Defense and Business Continuity symposium hosted by the Bahamas Telecommunications Company (BTC), said: “As it relates to business continuity, we need only to think back to the recent Hurricane Matthew - which I am sure many of us wish we could forget - to see how important it is to have contingencies in place to ensure continued busi-

Average US 30year mortgage rate rises to 3.54 percent WASHINGTON (AP) — Long-term U.S. mortgage rates jumped this week, reaching their highest levels since late June amid indications of strength in the economy. Mortgage giant Freddie Mac said Thursday the average for a 30-year fixed-rate mortgage rose to 3.54 percent from 3.47 percent last week. Rates remain near historically low levels, however. The benchmark 30-year rate is down from 3.87 percent a year ago. Its all-time low was 3.31 percent in November 2012. The 15-year fixed-rate mortgage, popular with homeowners who are refinancing, increased to 2.84 percent from 2.78 percent. Government data issued Monday showed that consumers boosted their spending in September at the fastest pace in three months, while their incomes grew by a modest amount. The latest positive economic news added to the momentum behind an expected interestrate increase by the Federal Reserve next month. Record-low interest rates this year have helped spur home purchases and boost the housing market. The Fed has been holding its key short-term rate at a record low near zero for seven years, since the onset of the financial crisis. At their meeting this week that concluded Wednesday, the Fed policymakers didn't move on rates so close to Election Day. But the Fed hinted that it would raise rates soon, possibly next month. To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

ness operations. “There are laws and regulatory guidelines which govern both data protection and business continuity here in the Bahamas, placing duties on financial institutions to ensure that there are adequate controls in place to mitigate security breaches and business disruption.” Ms McCartney added that the need to have business continuity plans in place became evident after the September 11 terror attacks. “Closer to home, imagine if BTC or the Bahamas

Broadcasting Corporation did not have business continuity plans in place after hurricane Matthew?” she said. “We would not have been able to communicate or know what was going on around us.” Ms McCartney added that the Central Bank of the Bahamas has issued Business Continuity Guidelines for its licensees. “Every financial institution should have a Business Continuity Management (BCM) strategy that is all encompassing – a strategy outlining policies, proce-

dures and standards for ensuring that its operations can be maintained or recovered expeditiously should there be an interference or break in delivery of service,” she said. “This should be embodied in a documented Business Continuity Plan (BCP), which sets out precise action to be taken in the case of a business disruption. That is, the procedures, processes and systems necessary to continue or restore the operation of an organisation in the event of a disaster or major operational disruption.”

ters for relief during this period will be discounted by up to 20 per cent. Junkanoo Air is planning another company-sponsored relief effort in the upcoming weeks. It is asking anyone in the Florida area who wants to donate to contact is at relief@junkanoo. com to make arrangements. Mr King said: “Every little helps. No matter how small the donation, or a quiet prayer. “One thing I am certain about is that our indomitable spirit as the God-favoured people of the Bahamas will not be broken. Not yesterday, not today, not ever.” Junkanoo Air provides air cargo transport services between the US (primarily South Florida), the Bahamas and surrounding countries including Turks and Caicos, Haiti and Cuba. Junkanoo Air is authorised by the Department of Civil Aviation and the Federal Aviation Authority (US) to operate commercially.

call 502-2394 to advertise today! LEGAL NOTICE

If anyone knows the whereabouts of EDY PAUL, a Haitian National, whose last known address was Wulf Road, Nassau, please contact the Law Office of Murrio Ducille Chambers, Suite #9 Bayparl Building Nassau, Bahamas or Call 326-5229. THE MATTER IS URGENT

PAGE 4, Friday, November 4, 2016

Top investors lead Port Dept’s $5m debtor list From pg B1 accounts personnel that letters of outstanding balances have been forwarded to the cruise line operators. However, large amounts are still pending.” The report disclosed that the largest ‘water debtors’ are the two Carnival vessels, the Sensation and the Fascination, which are said to owe the Port Department $194,838 and $138,765, respectively. Some 11 cruise ships were shown as having outstanding balances worth more than $10,000. The Auditor General urged the Port Department to “vigorously pursue the collection of the amounts outstanding”, and either establish a collections centre or enforce penalties against defaulters. Adding that financial sanctions could be levied via the 2003 amendments to

the Ports Authorities Act, the report warned: “There is a great concern in regards to the large amount of revenue that remains outstanding on an annual basis for services provided by the Port Department. “The Port Department is not enforcing the laws (penalties) as prescribed by the Act. They are allowing persons/companies to utilise Port services without paying the required fees. As a result, the Government continues to lose revenue, and has to bear the cost of these services.” The Auditor General’s report, tabled in the House of Assembly late on Wednesday night, also revealed that Carnival’s cruise vessels were taking “an inordinate time” to pay their Prince George water bills - some requiring up to five years to pay.

Minister admits Small Homes surveyor did ‘not produce’ properly From pg B1 report effectively confirms the FNM majority’s findings that Ms Tucker/CCMG were inexperienced and unable to perform the job required. This, in turn, likely had major implications for the

Small Home repairs programme, given that CCMG was tasked with determining the ‘scope of repair works’ on each home and estimating the costs. It was also supposed to carry out physical site inspections before, and after, the work was performed -

VACANCY Applications are invited for the position of

Corporate administrator Applicants must have: • At least five years’ experience in corporate administration including a thorough knowledge of the incorporation, maintenance & liquidation of companies, preparation of annual returns, corporate resolutions, notices and other corporate documents; • A thorough understanding of due diligence and compliance; • Computer literacy, including advanced proficiency in the use of Microsoft Applications, Viewpoint and CP or other similar time and billing software; • Sound organisational skills and the ability to consistently produce high quality work under pressure, to use initiative, work as a team player and be able to work overtime at short notice. Qualified candidates may apply in confidence no later than November 11, 2016 to: corpvacancy@gmail.com

And a further $569,417 was owed to the Port Department in tug boat fees, with the cruise lines again among the major culprits. The Majesty of the Sea and Monarch of the Sea vessels were said to owe $24,892 and $38,354, respectively, with a further $17,009 due from the Orient Spirit. The failure to collect due revenue, weak internal controls and inability to enforce the law is a familiar story across most government department, especially those charged with collection by the Public Treasury. It leaves the government with insufficient revenues to fund public services and infrastructure. The near-$5 million sum owed to the Port Department also highlights how revenue enforcement and collection failures continue to place an ever-increasing burden on legitimate, compliant Bahamian taxpayers - a trend that ultimately led to Value-Added Tax (VAT).

And the Government is having to finance the provision of services to some of the Bahamas’ largest, wealthiest investors, who are effectively getting a ‘free ride’ through the Bahamian taxpayer. The Auditor General, meanwhile, found that the Port Department was owed a further $705,638 in uncollected licence fees for New Providence, with 80 per cent of this sum due from just five entities. More than 50 per cent, or some $363,837, was said to be owed by the Atlantis marina, with a portion of the bill dating back to 1998. The second largest bill was due from George Mosko, and totalled $127,186, with some of these monies dating from 1997. Rounding out the five were TPA Ltd, Union Wharf Development and Caribbean Maritime Management, all of whom owed a five-figure sum. The Auditor General’s report found that the situation was even worse in the

in the latter instance, to ensure it had been carried out properly. Given that CCMG had the critical oversight role, in terms of determining/ controlling costs and preventing shoddy workmanship, its failings will likely have jeopardised ‘value for money’ for the Bahamian taxpayer on the $3.2 million spent to repair 312 homes. The PAC ‘minority’ report also conceded that valid Business Licences, and being current with National Insurance Board (NIB) requirements, were the only qualifications required from contractors hired to perform the repairs. “The Government’s policy for the Small Home repairs programme, as outlined by the Prime Minister, is to give employment to small local contractors and tradespersons in the innercity and traditional communities,” the report said. “In this regard, the requirements for Small Home repairs contracts were limited to those with current Business Licences and current National Insurance contributions.” The PAC minority report said the Government purchased Contractors’ All-Risk Insurance for the small contractors involved in the project, which may intrigue some, given the failure to do so over the now-notorious BAMSI dormitory fire. And, in a final riposte to the PAC majority criticisms, the minority said: “The Government did not require the cited qualifications for this programme.”

The majority report, produced by FNM MPs Hubert Chipman, K P Turnquest and Richard Lightbourn, said there was “no evidence” of pre-qualification for contractors engaged by the Small Homes repairs initiative, and “in most cases” where Business Licences were produced, they were for other professions. “In most cases, the Business License was for business other than construction/handyman or maintenance services. No technical proficiency was demanded to repair homes under this project,” the majority PAC report said. Gregory Butler, the Urban Renewal Commission’s deputy director, was also said to have admitted that “most contractors” were hired based on recommendations from their MP rather than being ‘best man or woman for the job’. With proficiency and technical qualifications ‘out the window’, as conceded by Mr Gibson and the PAC ‘minority’, this raises questions as to whether homeowner/resident health and safety may have been compromised by shoddy workmanship. Not to mention exposing the Government, and Bahamian taxpayer, to extra repair costs and other liabilities. The situation further highlights the need to pass the Contractors Bill, as this would establish a self-regulating licensing system to certify contractors according to their capabilities. Mr Gibson, meanwhile, also sought to downplay the alleged ‘conflict of interest’

THE TRIBUNE

Family Islands, again highlighting how lax enforcement and collection becomes the further persons travel from Nassau. Some $1.841 million in uncollected fees are owed across the Family Islands, with 63 per cent of the outstanding balance said to be owed nine marinas and other entities. Again, some of the debts date from 1993. The largest Family Island balance, according to the Auditor General’s report, is the $274,813 owed by Great Harbour Cay Marina, some of which dates from 2001. Other six-figure debtors are the Old Bahama Bay resort at $157,061; Sampson Cay Club, which owes $122,753; and the Chub Cay Club marina, at $103,703. The Emerald Bay Resort in Exuma was said to owe the Port Department some $98,080, with another $98,484 due from the Staniel Cay Yacht Club. Milton Mosko and Eran Levin were said to owe $99,737 and $141,177, respectively, with these sums dating

from 1994 and 1993. The T Carter Williams Enterprise in San Salvador owes $60,471, dating from 2012. As for Potter’s Cay, the Auditor General’s report found that the Port Department had failed to collect $921,390 in revenues due “for the period June 30, 2016”. While outstanding pierage fees owed by fishing vessels totalled $589,222, a further $237,237 in such fees were due from mailboats and freight vessels. The report said five vessels were responsible for 42 per cent, or $101,960, of the fees. These included the Mia Dean, Lady Rosalind, Lady Rosalind 1, Lady Rosalind 2, and Trans Cargo 2. The Auditor General’s report said it had “determined that the risk at the [Port] Department is high with regard to revenue collection, as internal controls are weak”.

Shane Gibson involving the now-Bahamas ambassador to China, Paul ‘Andy’ Gomez, saying this had been rendered “moot” by his diplomatic appointment. This was in response to the PAC majority report raising concerns about Mr Gomez being a member of the Urban Renewal Foundation council, while also being managing partner of the Foundation’s external auditor, the Grant Thornton (Bahamas) accounting firm. Mr Gibson argued that it was “the considered opinion” that the Foundation, which solicits donations to finance Urban Renewal’s work, did not come under the Financial Administra-

tion and Audit Act. As a result, it did not need to be scrutinised by the Auditor General, but the Minister agreed this needed to be backed up by “a legal opinion”. As to Mr Gomez, the PAC minority report said: “Urban Renewal Foundation council member, Paul ‘Andy’ Gomez, has given his company’s services gratis [free] for the past two years. “Mr Gomez has accepted a Ministry of Foreign Affairs posting abroad [as ambassador to China]. Therefore, the perception of conflict of interest on behalf of his company, Grant Thornton (Bahamas), is now moot.”

NOTICE CORDIER LIMITED In Voluntary Liquidation

DC CAPITAL INC. Company No. 326904 (In Voluntary Liquidation)

NADEYA GLOBAL LIMITED Company No. 1769750 (In Voluntary Liquidation)

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, CORDIER LIMITED is in dissolution as of October 31, 2016

NOTICE is hereby given pursuant to Section 204 (1)(b) of the BVI Business Companies Act, 2004 that DC CAPITAL INC. is in voluntary liquidation. The voluntary liquidation commenced on 24th October, 2016 and Franz Buser of Gladbachstrasse 114, 8044 Zurich, Switzerland has been appointed as the Sole Liquidator.

NOTICE is hereby given pursuant to Section 204 (1)(b) of the BVI Business Companies Act, 2004 that NADEYA GLOBAL LIMITED is in voluntary liquidation. The voluntary liquidation commenced on 1st November, 2016 and COLIN FERRIS of Wengistrasse 1, 8004 Zurich, Switzerland has been appointed as the Sole Liquidator.

Dated this 24th day of October, 2016 Sgd. Franz Buser Voluntary Liquidator

Dated this 1st day of November, 2016 Sgd. COLIN FERRIS Voluntary Liquidator

NOTICE SERTERN CONSULTANCE LTD. In Voluntary Liquidation

APPLECROSS GLOBAL LIMITED Company No. 1769763 (In Voluntary Liquidation)

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, SERTERN CONSULTANCE LTD., is in dissolution as of October 31st, 2016.

NOTICE is hereby given pursuant to Section 204 (1)(b) of the BVI Business Companies Act, 2004 that APPLECROSS GLOBAL LIMITED is in voluntary liquidation. The voluntary liquidation commenced on 1st November, 2016 and COLIN FERRIS of Wengistrasse 1, 8004 Zurich, Switzerland has been appointed as the Sole Liquidator.

International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator. LIQUIDATOR ______________________ NOTICE AVANT CAPITAL MANAGEMENT LTD. In Voluntary Liquidation Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, AVANT CAPITAL MANAGEMENT LTD. is in dissolution as of October 31st, 2016. International Liquidator Services Inc. situated at 3rd Floor Withfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator. LIQUIDATOR ______________________

International Liquidator Services Inc. situated at 3rd Floor Withfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator. LIQUIDATOR ______________________

Dated this 1st day of November, 2016 Sgd. COLIN FERRIS Voluntary Liquidator

THE TRIBUNE

Friday, November 4, 2016, PAGE 5

‘Low hanging fruit’ to receive $8-$10m Baha Mar payout From pg B1 James Smith, the committee’s chairman, told Tribune Business that the payments to unsecured corporate creditors owed $500,000 or less, which began yesterday, represent the next phase in its work. Suggesting that the committee’s work was “moving along quite smoothly”, the former finance minister and Central Bank governor said it was “on target” to complete the Bahamian creditor payouts by year-end 2016. “We just started the payments today, and have actually sent out e-mails to those on the list,” Mr Smith told Tribune Business. “We don’t know what the response will be, but we’re asking them to come in, collect the cheque and sign the release form. “Preliminary estimates indicate that there are about 150 to 200 companies/persons, and the payout would be in the region of $8 million to $10 million.” To qualify, apart from

being owed $500,000 or less when Baha Mar filed for Chapter 11 bankruptcy protection in June 2015, the Bahamian vendors and contractors must also have submitted all necessary documentation to prove their claim. And the sum they claim is owed must match, or be “only slightly different”, from the amounts in Baha Mar’s records. “It’s really the low hanging fruit that we can deal with expeditiously,” Mr Smith told Tribune Business of those Bahamian creditors targeted in the latest payout phase. “We’re moving along quite smoothly we hope. These are basically the minor claims or ones where there is no dispute. Their figures line up with Baha Mar’s when we do the reconciliations.” He added: “It’s not so much the size of the business, as we have some very large firms that have small $200,000 claims. “This is just one part of

Employment may ‘slightly improve’ after Matthew From pg B1 activities alongside ongoing investment projects”. Hotel industry unemployment may be short-lived, given that Grand Bahama’s key resorts, Memories and the Grand Lucayan, are both projected to re-open before Christmas - in time for the key winter season. However, the Sunwing airline, which is affiliated with Memories and is responsible for bringing most stopover visitors to Grand Bahama, has temporarily suspended flights until repairs are completed prompting Prime Minister Perry Christie to make an impassioned plea to the company for the resumption of services as soon as possible. The Central Bank report was also produced before the One & Only Ocean Club announced it would only re-open in February 2017, creating uncertainty about the immediate future of its 350 staff. Still, the Central Bank predicted: “Overall impact on the tourism sector will be muted and shortlived, due to the timing outside of the peak winter season, and limited disruptions with the exception of Grand Ba-

hama.” It acknowledged, though, that tourism activity “remained relatively soft” during 2016, with Nassau Airport Development Company (NAD) data showing one million visitor departures from the capital in the nine months to end-September 2016 - a 2.3 per cent year-over-year increase. However, the Central Bank said there was a 25 per cent decline in commercial banks’ net foreign currency purchases to $176.5 million over the same time period. Given that this indicator is influenced by tourism inflows, it suggests business levels have fallen for the Bahamas’ ‘number one’ industry. “In light of these developments, and the closure of all airports within the country during the hurricane, arrivals are expected to be modestly below trend for the fourth quarter,” the Central Bank said. “Given the reduced room inventory, tourism receipts are also likely to fall below trend during this period.” Matthew has also dealt a blow to the Government’s fiscal position, with the unexpected $150 million borrowing to cover restoration

the larger process. We put them altogether, the claims, and go after the ones we can deal with swiftly, leaving some of the far more difficult cases.” Having paid nearly 2,000 ex-Baha Mar staff what the committee deems they are owed in terms of outstanding salary, severance pay and other benefits, the creditor claims payout committee is now moving to deal with the corporate claimants. The former staff, and businesses that fall into the ‘owed $500,000 or less’ category, are likely to be ‘made whole’ and receive 100 per cent of what they are owed. “I guess the important issue is complete documentation,” Mr Smith said of the corporate creditors, adding that his earlier concerns about inadequate ‘proof of claim’ had “for the most part” been addressed “Most of this stuff had been submitted in the provisional liquidation process, so to find duplicates should not be a hard stretch,” he added. The Bahamian creditor payouts are being financed by Perfect Luck Claims, the special purpose vehicle (SPV) created by Baha Mar’s secured creditor, the China Export-Import

Bank. The Chinese state-owned institution has provided around $100 million in financing to compensate Baha Mar’s Bahamian creditors, although it is unclear whether anything will be left over for ex-foreign staff and creditors. For those creditors with “large variances” between their claims, and what the payout committee believes is due, Mr Smith suggested that “lengthy negotiations” was unlikely to be an option. Given that many Bahamian companies had likely already written-off or discounted the sums owed by Baha Mar, the former minister suggested they would likely be amenable to receiving what the committee was offering. “We’ll likely just make an offer first to avoid any lengthy negotiations,” Mr Smith told Tribune Business. “It’s a gratis payment, and some of these companies will have already written-off what they are owed. “If they’ve submitted a claim for $600,000, and the committee is offering $520,000, they may say: ‘We’ll take it’. They will probably have written it off, not expecting anything, and couldn’t get anything

from the formal liquidation process. Their response is likely to be: We’ll take it.” Mr Smith’s “gratis” comment refers to the fact that the China Export-Import Bank is under no obligation to make any payment to the Bahamian creditors, given that the debts were owed by Baha Mar and its original developer, Sarkis Izmirlian. The bank has undertaken to make the payments as part of the agreement reached with the Christie administration for Baha Mar’s construction completion, the Government having prioritised payment of all outstanding sums owed to Bahamian contractors, vendors and former Baha Mar staff. The payouts being made by Mr Smith and the committee, though, are only to direct creditors of Baha Mar. Bahamian contractors who were hired by the project’s main contractor, China Construction America (CCA), have to receive their compensation from it. Mr Smith said the payout committee, which includes the Government’s liquidation claims adviser, Grant Lyons, plus representatives from China Export-Import Bank, CCA and the Deloitte & Touche receivers, was now starting to

look at larger claims worth $500,000 or more. The biggest Bahamian creditor is the Government, and its various agencies, who claimed to be owed $59 million when it petitioned to put Baha Mar into liquidation last year. The majority of this sum, some $26 million, was said to be owed to the Bahamas Electricity Corporation (BEC), with the remainder spread around the likes of NIB, Water & Sewerage, the Gaming Board and the Treasury in terms of unpaid taxes. Of Baha Mar’s 20 largest unsecured creditors at the time of the Chapter 11 filing, only a few besides BEC were Bahamian. They were Osprey’s joint venture with Yates, valued at $5.281 million; TBI Caribbean’s $2.353 million; Cable Bahamas with $1.435 million; Cable Beach Resort Association at $1.219 million; and Island Site Development with $1.153 million. “The Committee expects to meet its deadline for completion at the end of December 2016,” Mr Smith told Tribune Business. “We’re right on target for that.”

costs - estimated to total $600 million - set to both increase the $6.778 billion national debt and widen the 2016-2017 beyond the initial $100 million projection. Revenue inflows have also been disrupted by the interruption to business activity in Matthew’s aftermath, plus the ‘tax breaks’ granted by the Government’s exigency Order to assist the rebuilding programme. “Expectations are that hurricane-related outlays to facilitate the repair of Government infrastructure and higher social assistance spending, alongside some abatement in near-term revenue potential, will place additional pressure on the

fiscal position,” the Central Bank said. “The restart of the Baha Mar project, along with extensive domestic rebuilding and repair work, should provide strong construction stimulus, although potential skills shortages and projected upward pressures on prices for building materials could pose significant risks to the sector. Downside factors could impact employment over the near-term, due to temporary business closures.” The Central Bank said Matthew damages will likely “exceed” $600 million, with some $400 million of this covered by private insurance. This leaves

one-third, or some $200 million, as uninsured losses and damage to public buildings and infrastructure, not to mention the economic losses. Referring to information from the Bahamas Insurance Association (BIA), the Central Bank added that by end-2016 some 50 per cent of insured losses, amounting to $200 million, will be covered by foreign currency reinsurance inflows. The Central Bank also

warned Bahamians to “expect some modest cost pressures” as a result of Hurricane Matthew, with building materials prices set to rise as a result of demand both in the Bahamas and the US. There will also be “pressures in the local construction sector due to queuing of jobs and potential skills shortages”, while the continuing increase in oil prices could further stoke inflation.

NOTICE BERRYFIELDS LTD. In Voluntary Liquidation Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, BERRYFIELDS LTD. is in dissolution as of October 31, 2016 International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

BARDSEA GLOBAL LIMITED Company No. 1769748 (In Voluntary Liquidation)

TRICUSA FINANCE LTD. Company No. 630860 (In Voluntary Liquidation)

NOTICE ORIENA LIMITED In Voluntary Liquidation

NOTICE is hereby given pursuant to Section 204 (1)(b) of the BVI Business Companies Act, 2004 that BARDSEA GLOBAL LIMITED is in voluntary liquidation. The voluntary liquidation commenced on 1st November, 2016 and COLIN FERRIS of Wengistrasse 1, 8004 Zurich, Switzerland has been appointed as the Sole Liquidator.

NOTICE is hereby given pursuant to Section 204 (1)(b) of the BVI Business Companies Act, 2004 that TRICUSA FINANCE LTD. is in voluntary liquidation. The voluntary liquidation commenced on 1st November, 2016 and JACQUELINE MEIER of Stockerstrasse 4, 8810 Horgen, Switzerland has been appointed as the Sole Liquidator.

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, ORIENA LIMITED is in dissolution as of October 31, 2016

Dated this 1st day of November, 2016 Sgd. COLIN FERRIS Voluntary Liquidator

Dated this 1st day of November, 2016 Sgd. JACQUELINE MEIER Voluntary Liquidator

LIQUIDATOR ______________________

NOTICE CHABRIQUE LIMITED In Voluntary Liquidation

NOTICE HILLSEA LIMITED In Voluntary Liquidation

NOTICE BLUEREDPHILA LTD. In Voluntary Liquidation

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, CHABRIQUE LIMITED is in dissolution as of October 31, 2016

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, HILLSEA LIMITED is in dissolution as of October 31, 2016

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, BLUEREDPHILA LTD. is in dissolution as of November 2nd, 2016.

International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

International Liquidator Services Inc. situated at 3rd Floor Withfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

LIQUIDATOR ______________________

International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator. LIQUIDATOR ______________________

International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

PAGE 6, Friday, November 4, 2016

Key industries to get ‘more flexibility’ on foreign capital access From pg B1 financing overseas, while also removing remove obstacles to their participation in, and the financing of, investments overseas. The need for such reforms was further highlighted by Central Bank data released yesterday, which showed that commercial bank lending to businesses had contracted by $51.5 million for the first nine months of 2016.

Residential mortgage lending also contracted $18.3 million over the same period, as Bahamian banks focused on consumer lending, which expanded by $39.3 million. Overall, private sector credit contracted by $30.4 million in the nine months to end-September 2016, accelerating the $21.5 million decline the year before. The contraction in commercial lending to the Bahamian private sector will

be taken by many observers as a further indication of the difficulties businesses face in accessing capital for expansion and job creation, boosting the case for the Central Bank proposals. “Our focus is on reforms that would ultimately increase growth potential,” Mr Rolle told Tribune Business, adding that the Central Bank wanted to try and ‘level the playing field’ between Bahamian and foreign investors. He added: “We want to ensure that in areas where foreign investment is already admitted, local investors would also have more ease of taking on such ventures, to the extent that access to financing is not a

constraint. “There may also be existing sectors reserved for Bahamians, with foreign exchange earning potential or with net foreign exchange savings capacity, where we would want to rule out ease of access to funding as an inhibitor.” The Central Bank has issued a survey to Bahamian companies, in a bid to gain data on the “issues and financial circumstances” facing businesses of all sizes. Mr Rolle confirmed that this was intended to generate ‘hard data’ that would support the Central Bank’s case for further exchange control liberalisation. “This is an exercise to

THE TRIBUNE

gain an.... informed position against which the Central Bank can make recommendations to the Government for adjustments to the exchange control regime,” he explained. “One outcome of this exercise would be to identify, in a very strategic way, locally initiated activities that would be allowed more access to foreign currency financing, while still being very considerate of the sustainability of such financing to maintaining the stability of our currency.” Mr Rolle added: “The survey is designed to help us gauge the desire of resident businesses to obtain capital-related financing that may otherwise not be

available from the banking sector, or in some other way may be prohibited because of the existing exchange controls. This will allow us to better design any liberalisation proposals that we may wish to put forward to the Government. “The Bank has continually reviewed how the administration of exchange controls could be less burdensome on the private sector. This is not a new exercise. This time, however, we are looking more at the investment and capital raising side of the economy for additional benefits, rather than on trade or the current account where most of the past focus has traditionally been.”

Greek retirees rally against planned new pension cuts ATHENS, Greece (AP) — Greek retirees staged an anti-government rally in Athens on Thursday to protest a new round of cuts under the country’s international bailout program. More than 5,000 protesters marched to the labor ministry and outside parliament, burning copies of a letter send by Labor Minister George Katrougalos explaining the pension changes. “They have torn us apart with all the cuts, and they are telling us we are supposed to be happy with these measures. We are sending the minister’s letter back to him, and will continue our protests in Athens and other cities,” protest organizer Dimos Koumbouris said. The country’s largest labor union also called a 24-hour strike for Dec. 8. Separate anti-austerity protests were also planned later Thursday in Greece’s

Legal Notice

Protesters shout slogans during a rally in Athens, yesterday. About 5,000 pensioners took part in an anti-government rally in the Greek capital to protest a new round of cuts introduced under the country’s international bailout program. (AP Photo)

second-largest city, Thessaloniki. Under pressure to make deeper cuts, the Greek government has imposed reductions on most supplementary pensions paid out by smaller state-backed funds. Inspectors from the International Monetary Fund and European Union institutions are due to return to Athens this month to oversee major changes to labor laws and union regulations, as well as measures to ease pressure on domestic banks from high levels of non-performing loans. Prime Minister Alexis

Legal Notice

NOTICE

INTERNATIONAL BUSINESS COMPANIES ACT (No. 45 of 2000)

UNITED COMMERCIAL INDUSTRIAL CORPORATION

AVIATION INVESTMENT GUIDANCE LTD.

Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act (No. 45 of 2000), UNITED COMMERCIAL INDUSTRIAL CORPORATION, has been dissolved and struck off the Register according to the Certificate of Dissolution issued by the Registrar General on the 18th day of October 2016.

Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act (No. 45 of 2000), AVIATION INVESTMENT GUIDANCE LTD., has been dissolved and struck off the Register according to the Certificate of Dissolution issued by the Registrar General on the 18th day of October 2016.

ROCKWELL LTD. 25 Mason Complex Stoney Ground The Valley, British Anguilla Liquidator

In Voluntary liquidation

Tsipras’ left-wing government is trailing opposition conservatives in opinion polls, with the gap widening in recent weeks, after extending emergency taxes imposed by previous government that he had promised to scrap. Speaking at a Greek-Arab business conference across town, Tsipras said bailout lenders would grant Greece a first round of debt relief measures by the end of the year. He also insisted that Greece’s ambitious growth targets for 2017 were attainable and promised to qualify for the European Central Bank’s bond-buying pro-

gram, known as quantitative easing. “We have kept our commitments. The successful completion of the first (bailout) review demonstrates our willingness to reform,” Tsipras said. “Reforms are needed for economic recovery, but they are not enough. We all know the high national debt is a hurdle. That’s why we are seeking agreement to combine reforms with the actions necessary — with specific measures — to alleviate the debt,” he said.

NOTICE

MITSOURI LIMITED NOTICE IS HEREBY GIVEN as follows: (a) MITSOURI LIMITED is in dissolution under the provisions of the International Business Companies Act 2000. (b) The dissolution of the said Company commenced on the 2ND day of November, 2016 when its Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said Company is Mr. Delano Aranha of Ocean Centre, Montagu Foreshore, East Bay Street, P.O. Box N-3247, Nassau, Bahamas H & J CORPORATE SERVICES LTD. Registered Agent for the above-named Company

N O T I C

UP OFFSHORE (HOLDINGS) LTD. ____________________________________

Pursuant to the Provisions of Section 138 (8) of the International Business Companies Act 2000 notice is hereby given that the above-named Company has been dissolved and struck off the Register pursuant to a Certificate of Dissolution issued by the Registrar General on the 25th day of October, 2016.

Delano Aranha Liquidator of UP OFFSHORE (HOLDINGS) LTD.

LEGAL NOTICE INTERNATIONAL BUSINESS COMPANIES ACT

(No.45 of 2000) Semel International Investments Ltd. (the “Company”)

NOTICE INTERNATIONAL BUSINESS COMPANIES ACT 2000 (No. 46 of 2000)

STAR INTERNATIONAL SERVICES CORP. (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 of Semel International Investments Ltd. has been completed, a Certificate of Dissolution has been issued and the Company has therefore been struck off the Register. The date of completion of the dissolution was the 24th day of October, 2016.

Pursuant to the provisions of Section 138 (8) of the International Business Companies Act, No. 45 of 2000, the Dissolution of STAR INTERNATIONAL SERVICES CORP., has been completed. The Company was struck off the Register and a Certificate of Dissolution has been issued by the Registrar General on the 13th day of October, 2016.

Kavan EE Liquidator

Anthony Dupuch Liquidator

NOTICE INTERNATIONAL BUSINESS COMPANIES ACT (No. 46 of 2000) OSCUL INVESTMENT LTD IBC No. 171954 B (In Voluntary Liquidation) NOTICE is hereby given that as follows: (a) That OSCUL INVESTMENT LTD is in Dissolution under the provisions of The International Business Companies Act 2000. (b) The Dissolution of the said Company commenced on the 21st day of October, 2016 when the Articles of Dissolution were submitted and registered by the Registrar General. (c) The Liquidator of the Company is Sterling (Bahamas) Limited of 2nd Floor, Saffrey Square, Bank Lane and Bay Street, Nassau, Bahamas. (d) Any person having a Claim against the above name Company are required on or before the 21st day of November, 2016 to send their name, address and particulars of the debt or claim to the Liquidator of the Company, or in default thereof they may be excluded from the benefit of any distribution made before such claim is approved. Sterling (Bahamas) Limited Liquidator