MONDAY, NOVEMBER 18, 2024
Nearly 2,000 will share $1m Auto H&L payout
By NEIL HARTNELL
ALMOST 2,000 Bahamians will
today start to receive a nearly-$1m collective payout as compensation for being over-charged interest on their loans by one of this nation’s largest used car dealers.
Tribune Business can reveal that the first group of Auto H&L victims were contacted last week about the payments, and to make appointments to collect their cheque, although not all will receive a cash payout. It is understood that those with outstanding loans which have yet to be fully repaid, or are in arrears or delinquent in their obligations, will instead receive an “adjustment” to the interest and balance owing on their account.
The payments are likely to take place in three groups spread out over four weeks, which means borrowers will be reimbursed for the excess interest they paid in time for Christmas and the holiday season. Auto H&L, which “miscalculated” the interest it was demanding vehicle buyers pay and, in the process, violated the Rate of Interest Act, is said to have “willingly corrected” the error.
Christina Rolle, the Securities Commission’s executive director, told Tribune Business: “I can confirm the
payments are going to take place, and they’re being handled by Baker Tilly Gomez.” The accounting firm was appointed by the regulator, which supervised under the Financial and Corporate Service Providers Act 2020, to verify its conclusions about the interest breach and act as payment agent for the reimbursements.
Craig A ‘Tony’ Gomez, the Baker Tilly Gomez accountant and managing partner, declined to comment when contacted by this newspaper.
However, one well-placed source, speaking on condition of anonymity, said the first group of Auto H&L borrowers have already been contacted and told which location to visit to pick up their cheques.
Only those whose auto loans have been fully repaid, though, will receive a cash payment. Those who are still repaying their debt, or are in default, will be compensated via a reduction in the balance owing on their account and will not be picking up a cheque. Giving those in arrears a cash payment was especially viewed as a ‘no, no’ because it would in effect reward their delinquency.
It is also understood that, in return for being compensated, impacted borrowers will have to sign a ‘Deed of Release’ whereby they surrender the right to take future legal action over this matter against Auto H&L, whose
principal is Hal Shearer. Several sources have suggested the company, which was once one of The Bahamas’ largest used car dealerships, either plans to - or is in the process of - winding down operations.
“People were called for Monday and can show up to their appointment,” the source said, adding that those not contacted will have to wait. “The cheques are drawn and ready. If your loan is already paid, you will get a cash payment. If you have an existing loan, you’ll get an adjustment to your account; an adjustment to the loan balance and an adjustment to the interest rate going forward.
“It’s just under 2,000 people and close to $1m in interest adjustments. Not $1m, but close to $1m. They are going to be paid in at least three tranches. The people being called now are only the first tranche. It will likely take place over four weeks as they are trying to make sure this is all done by mid-December.”
The Securities Commission in May 2024 said it had identified the breaches by the auto dealer when it conducted on-site examinations in March 2022 and again one year later. While the regulator did not give specifics, the Rate of Interest Act is designed to protect Bahamians from becoming victims of predatory or usury lending.
‘NO ROCKET SCIENCE’: EASE HOUSING CRISIS VIA 70% LOT DISCOUNT
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A FOUR-TIME Bahamas Real Estate Association (BREA) president is urging the Government to “put a dent in the housing crisis” by offering home buyers lots at a 70 percent discount, adding: “It’s not rocket science.”
Patrick Strachan told Tribune Business that such a move would significantly enhance home ownership prospects for many Bahamians by giving them equity they can then use to finance the high down payments demanded by mortgage lenders while also covering closing costs such as legal and real estate fees.
Speaking out after Keith Bell, the housing minister, recently said this nation was suffering from a 12,000-unit affordable home shortage, the ex-BREA chief writes
in today’s paper (see Page 6 in the main section) that the lack of availability can be solved if the Government would put its vast reserves of Crown Land to productive use.
He argued that it should identify suitable sites in areas where there is coming or existing demand for housing, then partner with private sector developers via private-public partnership (PPP) arrangements. Mr Strachan said that by taking out the land acquisition costs, and conveying such sites to private developers for a nominal fee, the latter would be able to construct affordable homes while still making a profit. Calling for fresh thinking and creative vision, Mr Strachan argued that key officials in the housing sector are “bankrupt of ideas” when it comes to
SEE PAGE SEVEN
RESORTS REBOUND FROM 5-15% FALL OCCUPANCY DROP
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
BAHAMIAN resort occupancies, which fell by between 5-15 percent during “a really soft” fall 2024, are now rebounding towards levels “pretty close or equal to” last year’s for Thanksgiving and Christmas.
Robert Sands, the Bahamas Hotel and Tourism Association’s (BHTA) president, told Tribune Business the country’s largest industry is “seeing pick up” for the two holidays that traditionally kick-off the peak winter season following a slowdown that began in late June and carried through the four months to end-October.
While room rates and yields remained flat compared to 2023, he said the drop-off in occupancies was likely attributable to the damage inflicted in
major source markets such as Florida by hurricanes Helene and Milton, combined with the impact on traveller confidence and disruption to airports/ aviation caused by these weather-related events. Mr Sands said uncertainty, and the ‘wait and see’ approach typically adopted by many Americans in the run-up to a presidential election, may also have impacted travel demand for The Bahamas during this period. However, based on bookings to-date, both he and Joy Jibrilu, the Nassau/ Paradise Island Promotion Board’s chief executive, told this newspaper that tourism business volumes for the Thanksgiving and Christmas/New Year festive period should be “at least pretty close or equal to” 2023 which produced record-breaking numbers for the industry.
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Government has beaten its debt buy back target by agreeing to repurchase almost $216m in Bahamian foreign currency bonds that were listed and traded on major international stock exchanges. The total to be acquired, using financing from a $300m loan provided by Standard Chartered bank, slightly exceeds the original $210m goal and was disclosed in a statement issued on the
Government’s behalf before global markets closed on Friday. The release revealed that the Government received $445.817m worth of offers by investors to sell their holdings of Bahamian sovereign bonds spread across six different issues with principal maturity dates ranging from 2028 to 2038. The $215.687m to be repurchased means that the Davis administration accepted just under half, or 48.3 percent, of investor offers.
Bahamas urged: ‘Revisit’ crowd funding strategies
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
A FORMER Senator has called on The Bahamas to “revisit” crowd funding as a critical means for financing innovative start-ups and entrepreneurs that lack access to capital.
Quinton Lightbourne, now the Inter-American Development Bank’s (IDB) alternate Caribbean director, told the Invest Fest forum that crowd funding can reach a broad investor audience and is an effective capital-raising tool depending on the type of project, the platform chosen, the promotional strategy and its appeal to the target market.
“I’m pleased to see the growth of BISX over the years, and I see the immense potential in terms of growth in the IPO (initial public offering) market for local companies. This would allow local companies to raise capital and expand their business through a viable channel,” he added.
“Crowd funding projects haven’t been as successful as some would want to be in The Bahamas, but it’s something that I think can be and must be revisited. Crowd funding can offer options like all or nothing funding in order to receive or meet a financial target. If those aren’t met, the fund and project won’t proceed.
“And so that also helps the investor to be viable, and also puts more emphasis on yourself to go out and get the additional funding that’s needed. Also, the market validation of successfully-funded projects that are very high in demand, and these are persons that are going to help you and hold you accountable for their investment.”
Mr Lightbourne said venture capital allows businesses to access financing without giving up equity in their companies, thereby allowing them to fund revenue-generating projects without losing ownership.
“Venture capital funds are very important and imperative to the success
of our country. There’s the Bahamas Venture Capital Fund that’s already in place, and those developments, they help small and medium-sized businesses,” said Mr Lightbourne
“Businesses also issue debt. This is very important, issuing debt in terms of a business. It allows you, as an investor, to receive funds, but also you do not give up equity in your company. So when you do not give up the equity in your company, you also you can maintain ownership.
“Your debt level is now outsourced as a loan, as leverage, and you’re able to maintain and fulfill all of your obligations, but you are still able to maintain control of your company. And this is something that must be looked at, and something that I think a lot of persons do not look at in our country.”
Mr Lightbourne said that although the Caribbean as a whole depends heavily on public sector-driven investments and multilateral development banks such as the IDB, the future of
capital markets will shift to greater private sector participation as governments face high fiscal deficits.
Asserting that strengthening the capital markets will allow businesses to access local and domestic funds, and expand their offerings, he said: “The future of capital markets in The Bahamas holds significant promise, but it also requires deliberate actions to overcome challenges like low liquidity and the region’s susceptibility to economic and environmental shocks.
“By embracing integration digitalisation, sustainable finance and broader access to global capital, The Bahamas can position itself as a capital market hub and key driver for regional development and economic growth.
“With the great reforms and innovation in financial products, the region and The Bahamas can become and attract more and more investors to support private sector expansion and build resilience against future challenges.”
STRAW VENDORS HIT BACK OVER TRADEMARK CONCERN
By ANNELIA NIXON Tribune Business Reporter
STRAW Market vendors have hit back at fears they will undermine the new “Made in The Bahamas” quality certification trademark by applying the same slogan to foreign-made products that they sell.
Rebecca Small, president of the Straw Business Persons Society, said vendors should never should have been dragged into conversations on the new trademark during last week’s Bahamas Bureau of Standards and Quality (BBSQ) Town Hall meeting that was intended to promote it. The trademark is due to “roll out” in August or September 2025.
Several attendees questioned how the authorities will deal with straw vendors applying the “Made in The Bahamas” brand to foreign-manufactured goods, but Ms Small said her members are only trying to make a living and she is not arguing that everything they sell is made locally.
She added that although there are “unscrupulous people” who may have slapped ‘Made in The Bahamas’ on products they knew were foreignproduced, she added that it is not a regular occurrence. Ms Small said she has instead seen stickers stating ‘Souvenir of The Bahamas’.
“People like to come up against vendors in the Straw Market,” Ms Small said. “All we are is trying to make an honest living. And when we do have products in the market that are authentically made by Bahamians, people only recognise those things that we don’t make.
“And there lies the challenge. Because there are some things, [like] your clothes which you buy, that weren’t made in The Bahamas. And so we are not, as straw vendors, saying that everything in the market is made in The Bahamas. We have a quite considerable amount of
products that are made in The Bahamas, but the t-shirts, the mugs, the shot glasses, certain bags, certain hats are not made.
“But that’s not our focus. We want to be able to meet the demands of the tourists and make an honest living. So, my question at this point, is the people who are bringing up and saying some things are not authentic. We are not disputing that. And why is there a conversation about us in that?
That’s the challenge I’m having,” she continued.
“What I see in there, it’ll say ‘Souvenir of The Bahamas’. That’s what I see… You in The Bahamas, you get a souvenir and you may see a tag saying ‘Souvenir of The Bahamas’. That is the correct statement because you got a souvenir from The Bahamas, and so it’s ‘Souvenir of The Bahamas’. That’s what I have seen. Now you have certain unscrupulous people probably may put ‘Made in The Bahamas,’ but that’s not a general practice.
“Let them meet their criterias. They’re the ones who are trying to improve themselves, right? So what they bring up the straw vendors for?
We sell straw. We make straw. And not only straw. Whatever people could do in there, they will do it,” Ms Small said.
“But I feel, always, Bahamians attack straw vendors, period, full stop. It’s an attack on us and I’m sick and tired of it. And they are running on.
We have built the industry to where it is today. Where the Straw Market Authority now can hire probably about 30 to 40 staff.”
Ms Small’s comments came after an attendee at the Town Hall meeting questioned what would be done in regards to Straw Market vendors who place the ‘Made in The Bahamas’ brand on products that do not meet the criteria of the certification.
“How are we going to deal with the Straw Market ‘Made in The Bahamas’ products? In the Straw Market,
you can go right now, you can buy a cardboard and you can take that name ‘Made in The Bahamas’,” they said. “We’re going to go through all of this and still be competing with the Straw Market.
“I’m talking about every product in the Straw Market and, you know, most of it, 90 percent of it outside of the straw is not made in The Bahamas but all of them have ‘Made in The Bahamas’ on it.”
Another attendee added: “I don’t know how we could say ‘Made in The Bahamas’ if it’s not made in The Bahamas. I walked along there and these women here made these things with their hands here in The Bahamas, Bahamians. And those things are made in the Bahamas.
“...We have people who bring things in - and see I’m different from herfrom China. Or Taiwan or wherever else. I am saying that that should not be allowed for them to put ‘Made in The Bahamas’ on that because it’s not made in The Bahamas.”
Dr Renae Ferguson-Bufford, the BBSWQ director, said the Made in The Bahamas brand will be for those who want it and meet the criteria. “This is going to be a mark; a mark of excellence,” she said. “A mark, a brand that gives you a certifiable mark that’s separate and apart from just a writing that says ‘Made in The Bahamas’.
“Those are the products that the tourists really don’t want - the products that are in the Straw Market that have a fake ‘Made in The Bahamas’ on them. This will help elevate you as a business, elevate your product, be more competitive in the market.
“So we intend to work with all of the relevant business sectors, stakeholders, tourism.... who is on board with us. BAIC is here. We intend to work with all of the relevant personnel that is needed, the stakeholders, to bring sensitisation and elevate our businesses to another level,” she added.
MANDATORY PENSIONS TO BOOST CAPITAL MARKETS
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
MANDATORY pensions for Bahamian workers are likely to be recommended as a key reform for stimulating the capital markets and improving funding access for entrepreneurs, a top regulator confirmed yesterday. Christina Rolle, the Securities Commission’s executive director, told the Invest Fest forum that requiring all workers to have a pension will be
“critical” to growing the Bahamian capital markets as well as ensuring retirees have a sufficient pool of savings and retirement income. She added that the Securities Commission is currently working with the Bahamas International Securities Exchange (BISX) to investigate further ways to grow the capital markets, with mandatory pensions being one of the options. Implementing this will also push Bahamians to become more engaged with the capital markets
Mr Lightbourne said regional capital markets are now looking for global investors, and improving the regulatory landscape to ensure investors have confidence is critical to growth.
“Caribbean markets are now looking to attract foreign international investments by improving transparency, regulatory standards and market infrastructure. As international investors seek diversification in emerging markets, the Caribbean can become an attractive destination, particularly in sectors like tourism, natural resources and renewable energy,” said Mr Lightbourne
“There are few strategies to attract global capital, and the global market can be tapped into by improving our governance and improving transparency in financial reporting, corporate governance and regulatory oversight to meet international standards.”
Mr Lightbourne said improving the capital markets could also boost the
region’s resilience as markets can offer catastrophe bonds and other vehicles that will enhance recovery efforts after a natural disaster.
“The Caribbean is a highly vulnerable to economic and environmental shocks such as hurricanes, natural disasters and external financial crises. A future focus of the region’s capital markets will be a cornerstone for the future in building financial products and mechanisms that increase resilience,” said Mr Lightbourne.
“Resilience is the development of catastrophe bonds, insurance-linked securities to spread the risk of natural disasters and financial recovery efforts. These opportunities will create new financial possibilities and contingent financing mechanisms that allow countries and companies to quickly access funds in the event of an economic or environmental shock, also promoting disaster resilient infrastructure projects funded through capital markets.”
BAHAMAS IN NEW $1BN QUARTERLY TRADE DEFICIT
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE BAHAMAS incurred another $1bn-plus trade deficit during the three months to end-September 2024 as imported commodities grew at a pace six times’ faster than this nation’s exports.
The Bahamas National Statistical Institute (BNSI), unveiling the country’s goods trade performance for the year’s third quarter, disclosed that imports increased by 31 percent to $1.335bn compared to the same period for 2023. As for exports, which includes goods produced in The Bahamas for sale overseas as well as commodities from elsewhere that are transiting through this nation on their way to other markets, they expanded at a much slower 5 percent rate to $157m.
Thus the country’s trade deficit, which measures by how much physical goods imports exceeded exports, hit $1.178bn for the 2024 third quarter. This was slightly higher than the $1.145bn deficit generated for the 2024 second quarter, which includes the three months to end-June, with the growth rate for imports increasing quarter-overquarter from 25 percent to 31 percent.
However, the 2024 third quarter’s export growth reversed the prior threemonth period’s 13 percent year-over-decline. The sizeable trade deficits that The Bahamas incurs are not surprising, given that the nation’s economy is structured such that it imports most of what it consumes. The trade deficit also only captures the import and export of physical goods and commodities. This gap has to be financed from the Bahamian economy’s services exports, namely tourism, financial services and real estate purchases, and widening
deficits only serve to pile more pressure on these industries to generate ever-increasing foreign exchange inflows to finance these imports. The increase in imports, though, could be viewed as a sign of a growing economy. “Estimates on commodities imported into The Bahamas totalled some $1.335bn, resulting in an increase of 31 percent when compared with the same period last year,” the Bahamas National Statistical Institute said of the 2024 third quarter trade performance.
“‘Machinery and transport equipment’, the largest contributor to imports, totalled $317m or 24 percent of all imports. This was followed by the category of ‘mineral fuels, lubricants and related materials’, which accounted for 19 percent or $248m.
“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 $540m (40 percent of total imports).”
As for exports, the Bahamas National Statistical Institute said: “Total exports (domestic and reexports) for the 2024 third quarter totalled $157m, resulting in an increase of 5 percent when compared to the same period last year.
“The major categories of exports consisted mainly of ‘manufactured goods classified chiefly by materials’, totalling $48m (30 percent of total exports); ‘chemicals’ totalling $37m (24 percent of total exports) and ‘mineral fuels, lubricants and related articles’ totalling $26m (16 percent of total exports).”
‘Crude Minerals, Inedible Except Fuels’, ‘Animal and Vegetable Oils and Fats’ and ‘Machinery & Transport Equipment’ showed decreases of 70%, 69%, 50% respectively.
CHRISTINA ROLLE
‘All paid up’: Cable financials revised on $5m tax liabilities
By NEIL HARTNELL Tribune Business Editor
CABLE Bahamas’ top executive yesterday said “all our taxes are now paid up” after it was forced to partially restate its 2023 and 2022 accounts due to more than $5m in unrecognised tax liabilities.
Franklyn Butler, the BISX-listed communications provider’s president and chief executive, told Tribune Business that issue has been resolved following a Department of Inland Revenue (DIR) audit that covered five-and-a-half years of VAT and Business Licence filings.
The findings, and Cable Bahamas’ own internal review, resulted in its accounts payables being revised upwards by $5.217m for the financial year that closed at end-June 2023. And the 2022 financial year’s endbalance for accounts payables was also increased by $5.566m as a result of what was branded “a material misstatement of previously reported tax liabilities.
Cable Bahamas, in its just-released audited financial statements for the 12 months to endJune 2024, said: “During the year, the company underwent an audit by the DIR covering the period January 1, 2018, to June 30, 2022. The audit principally resulted in the reassessment of certain tax positions in VAT and Business Licence filings in the prior years.
“Further to the audit,
the group performed an internal review of filings made during the year ended June 30, 2023, and applied tax positions assessed by DIR. The reassessment resulted in a material misstatement of previously reported tax liabilities recognised in prior financial years, and a corresponding misstatement of tax expenses in the consolidated statement of profit or loss and other comprehensive income.”
Mr Butler, speaking to this newspaper, said the issues leading to the financial statement revisions have now been resolved. “While there was a liability due to the Government, this was one where we in many instances sought an understanding with the Government on taxes that we were holding. We now have all of our taxes effectively paid up to the Government.”
Cable Bahamas’ 2024 financial statements show the revisions actually reduced the group’s $143.689m operating expenses and net and comprehensive loss by $348,952 in both cases. However, the financial statements make clear that this is not the BISXlisted communications provider’s sole tax dispute with the Department of Inland Revenue and the Government.
Cable Bahamas has paid a $1.594m deposit to the tax authorities to enable itself and its Aliv mobile subsidiary to challenge the Department of Inland Revenue’s demand for further payments. Mr
Butler explained the dis-
pute largely involves the payment of VAT on international inbound roaming charges, which the wider communications industry believes should not be incurred because consumption is outside The Bahamas.
“In the context of the $1.5m relating to inbound international roaming, and whether liability accrues with that, we in the industry disagree,” he said. “BTC will find themselves in a similar position. In our initial conversation, we reached out to them to validate, and we are in the same position that we generally don’t accrue VAT on international inbound roaming.
“We both [Cable Bahamas and the Government] agree we have an understanding on all matters. They’ve been resolved. This matter [international inbound roaming] is a technical dispute. They understand we are going to challenge their position on this.”
Cable Bahamas, in its 2024 financial statements, confirmed: “As of June 30, 2024, the company and Aliv were involved in formal disputes with the Department of Inland Revenue (DIR) regarding assessments issued by the DIR for unpaid taxes and fees totaling $2.313m.
“Aliv’s assessment, covering the period from April 1, 2017, to December 31, 2021, amounts to $1.594m and relates to VAT and Business Licence fees on insurance proceeds,
international inbound roaming charges and other items. The company’s assessment, covering the period from January 1, 2018, to June 30, 2022, amounts to $718,830 and pertains to VAT on international inbound voice charges.
“The group, with the assistance of legal counsel, has initiated formal disputes against the DIR and, to avoid potential penalties, has deposited the disputed amounts with the DIR. These payments were made without waiving any rights in the ongoing disputes, and the group intends to vigorously contest the assessments.”
Mr Butler also yesterday confirmed that Cable Bahamas and the Government’s refinancing of Aliv is largely completed. Besides the recentlyclosed $120m preference share offering, the mobile operator’s two shareholders also agreed a debt-for-equity swap “to ensure Aliv’s solvency” moving forward.
The Government, through HoldingCo, owns a majority 51.25 percent equity stake in Aliv but Cable Bahamas, which holds the remaining 48.25 percent, has Board and management control. The two parties, besides agreeing to convert promissory notes and payables that the mobile operator owed to each of them,also agreed to restructure Cable Bahamas’ $70m loan to its affiliate.
“On October 31, 2023, the company and HoldingCo, acting in their capacity as
shareholders, entered into a Deed of Contribution with Aliv to implement certain measures to enhance Aliv’s current and future net assets by a sum of $70m on a pro rata basis. The objective of the deed was to ensure Aliv’s solvency,” Cable Bahamas’ 2024 financial statements said. This included both shareholders making matching capital contributions equal to the amount of “certain payables” owed to each of them by Aliv, plus the restructure of Cable Bahamas’ $70m loan by eliminating the compounding of interest. Both the Government and Cable Bahamas were to inject further total capital of $11.317m, in proportion to their respective shareholdings, over the two years to end-October 2025.
The capital injection was made subject to a “revaluation of Aliv”. Giving an update to shareholders, Cable Bahamas said that during its 2024 financial year “the company funded a portion of its capital commitment through the conversion of debt due by Aliv under the MSA (master service agreement) totalling $8.414m”.
“In addition, and as specified in the deed, converted promissory notes due to it by Aliv, along with accrued interest payable, in the aggregate amount of $12.711m,” Cable Bahamas added. “The conversions from debt to equity made by the company were eliminated on consolidation and, therefore, have no impact on the consolidated financial statements.
“The $70m loan was
restructured. The resulting modification gain for Aliv and loss for the company, along with the loan itself, were eliminated on consolidation, but resulted in an increase in net and comprehensive income (loss) for the year attributable to non-controlling interest.
“HoldingCo met its capital contribution requirement under the deed through creation of a financial obligation to Aliv in the amount of $9.024m, which is recognised as a receivable at the year end. In addition, it converted promissory notes due to it by Aliv along with accrued interest payable in the aggregate amount of $13.168m,” Cable Bahamas continued.
“The substance of these actions under the deed has been recognised as capital contributions with no gain or loss being recognised. In the case of HoldingCo, its capital contribution has been recognized as an increase attributable to non-controlling interest in the statement of changes in equity.”
Mr Butler yesterday said the transaction contemplated by the deed to secure Aliv’s future was “just about” completed. “We are papering it,” he explained. “It’s not fully, properly signed, sealed and delivered. We are now working through their lawyers and our lawyers to go through the paperwork to put it all completely behind us.
“Aliv is now in great shape, EBITDA (earnings before interest, taxation, depreciation and amortisation) positive and net income positive. We think Aliv is in great shape.”
UNION LEADERS HIT OUT ON FINANCIAL GRIEVANCES
By ANNELIA NIXON Tribune Business Reporter anixon@tribunemedia.net
LABOUR leaders detailed a variety of financial grievances involving pensions, insurance coverage, salaries and stipends at Saturday’s Trades Union Congress (TUC) Town Hall meeting.
Sandra Major, president of the Bahamas Educators, Counsellors & Allied Workers Union, voiced concern that Family Island teachers are expected to cover the higher cost of living, especially increased rents, from their own financial resources rather than the Government stepping up to take responsibility.
“Our greatest concern
right now is the rental of our teachers going on the family of islands because we’re finding out you’re sending young teachers, just coming out, leaving their parents home, and they go and they have to pay the difference of whatever the grant is,” Ms Major said. “Teachers would call to say this month should I pay the rent that’s left owing or should I pay the light? And we think it’s so unfair that they’re not going and looking for things that are over the range of what it’s supposed to be.
“We’re reasonable people, and we’re doing it within the agreement - within our agreement. And so what we’re saying to the Government of The
Bahamas is this: If teachers are going to the islands, you need us because we want to know that every child in The Bahamas is educated. But in going you’re causing me undue stress,” she added.
“We want to know that every part of our agreement is important, and that must be addressed in a timely manner so that the next group of people would not have this issue coming up. So that’s what we’re really addressing at this moment.
“And we also speak to teacher’s allowances. We work. We don’t want it to be a long time to get paid. So if you work in the summer, if you do the extended learning programme, if you do the
Gov’t beats bond buy back target at $216m
from page one
Neither Simon Wilson, the Ministry of Finance’s financial secretary, nor Michael Halkitis, minister of economic affairs, responded to Tribune Business calls and messages seeking comment before press time last night. However, the combined value of the offers accepted by the Government following the transaction’s closing represents just 8.8 percent of the combined $2.425bn in principal covered by the outstanding bond issues.
The rationale for the debt buy back, and strategy behind it, have yet to be fully disclosed although the Government is likely to be exchanging highercost bonds for a Standard Chartered loan carrying a lower interest rate, later maturity date and more favourable terms. And the interest savings generated are supposed to finance a conservation trust fund set up by the Government to help safeguard the marine environment.
The transaction thus has some characteristics of a so-called debt-for-nature swap. The Bahamas is also
understood to be working on a similar such transaction, possibly worth up to $500m, with the Inter-American Development Bank (IDB) - a deal that the latter’s president recently confirmed is being worked on in an interview with international media.
The Government, as part of its core debt management objectives, also seeks to keep its debt servicing (interest) costs as low as possible while also spreading out the maturity dates of its international bond issue so that it does not have to come up with substantial sums of foreign currency to finance repayment at the same time.
Both these goals are likely to be involved here, although the $215.687m buy back is likely one piece in a much bigger debt management puzzle. And one source, speaking on condition of anonymity, yesterday queried whether the Standard Charteredfinanced deal is at least partially an effort to reduce pressure on The Bahamas’ sinking funds.
These vehicles were created to accumulate foreign currency assets and earnings that will be used
to finance repayment of bond principal to international investors when these issues mature. However, during the 2023-2024 fiscal year, more than half the assets - some $203m - in these sinking funds were drawn down - a move likely undertaken to help the Government cover its deficit without resorting to more borrowing.
The $203m is a similar sum to the $216m involved in this latest debt buy back, and the source said: “The drawdown on the sinking funds feeds into this. They [the Government] did not get the chance to rollover the debt they wanted to last year. They couldn’t find the financing. Now they were able to finally source some financing.
“I think this is tied to the fact they’ve drawn down on the sinking funds and those assets are no longer there to finance future repayments.” They added that it was impossible to properly assess the buy back, and its impact on the Government’s debt management strategy, without first knowing the rationale or how the bonds compare to the interest rate, maturity and terms on the Standard Chartered loan.
However, more than $190m of the accepted investor offers - some 88.5 percent - relate to the three international foreign currency bond issues that mature first in 2028 and 2029. Those are just four and five years away from happening, and involve bonds with interest coupons of 6 percent, 9 percent and 6.95 percent.
The Government accepted $140.664m, or 59.9 percent, of the $234.768m bonds tendered by investors in the first issue due to mature in 2028. It also accepted $24.107m and $26.126m of offers concerning the two bond issues maturing in 2029 - sums accounting for close to twothirds of what was tendered by holders.
In total, investors offered to sell back to the Government some $445.817m of its debt - a figure representing 18.4 percent of the total collective $2.425bn outstanding spread across the six issues. Settlement of the transaction is due to occur on November 25, 2024.
“The Government has, pursuant to the terms set forth in the offer to purchase, increased the maximum aggregate consideration amount to
$215.687m excluding accrued but unpaid interest, which will also be paid on the notes accepted for purchase,” the Government’s Friday statement said. This compared to the initial $210m target.
The initial offering document, which was obtained by Tribune Business, stated:
“The offer is part of the Government’s refinancing transaction, whereby the Government has entered into a $300m senior unsecured term facility, dated November 7, 2024, with Standard Chartered Bank (Hong Kong) as the lender under which it will procure a loan.
“All or a portion of the proceeds of the loan under the facility are expected to be used to conduct the offer and fund transaction fees and expenses related to the transactions contemplated by the facility. A portion of the proceeds of the loan under the facility may also be used to refinance other Government indebtedness.
“The net savings generated by conducting the offer and, if applicable, refinancing of other Government indebtedness out of the proceeds of the loan under the facility, will be applied to fund the Government’s
payments to a conservation trust fund for the duration of the facility pursuant to a conservation agreement in order to promote certain government marine conservation objectives.”
The Davis administration ever since taking office has looked for creative ways to access relatively low-cost foreign currency financing while avoiding the global bond markets, such as the $200m-plus repo or repurchase transaction with Goldman Sachs and the growing reliance on policy-based guarantees from multilaterals such as the Inter-American Development Bank (IDB).
A key influence is likely to have been Rothschild & Co, the major financial group hired to advise the Government on its debt strategy back 2022, and which is named as the adviser in the $210m ‘buy back’ offering.
This newspaper reported then that the bank, which has some 3,800 employees across 40 countries, was hired to help navigate the way forward after Hurricane Dorian and COVID-19 sparked a debt blow-out that worsened already-deepening fiscal woes.
UNION LEADERS HIT OUT ON FINANCIAL GRIEVANCES
from page three
after school programmes, there is a time limit to when you should be paid.
Anita Ellis-Tynes, president of the United Artist Bahamas Union, said entertainers that perform on resort properties are suffering a 5 percent deduction in levies. And she also called for it to have greater representation on the Board of Trustees overseeing artist pensions.
“Now we request that the United Artist Bahamas Union will be granted a seat on the Board of Trustees for the Bahamas Musicians and Entertainers Union,”
Ms Ellis-Tynes said. “This is critical since the funds are being deducted and put into
the airport. “Our members should be part of this pension fund. [It] is essential that we represent them for ensuring that their rights and their interests are safeguarded. So, when it’s time for them to retire, they will get their pension that they deserve because they put the money into it.”
Hinsey McKenzie, president of the Air Traffic Controller’s Union, said he has been discussing salary adjustments with management for over a year. “They have decided to bring somebody from Abaco who was in Nassau, which affected the salary of everybody above that person,” he explained.
“They have not adjusted the salary for more than a year. We are expected to
meet with the Department of Labour on Monday. So most of my issues are on my trade dispute, and hopefully they’ll be resolved on Monday when I meet with them.”
Both Deron Brooks, president of the Bahamas Customs, Immigration and Allied Workers Union, and Muriel Lightboure, president of The Bahamas Nurses Union, said insurance was a key concern for their members. Mr Brooks said newer employees are unable to add dependents to their insurance coverage, while Ms Lightbourne said some nurses do not have access to health insurance.
“One of the main things is the insurance, and for some of our nurses they are not able to access the insurance that is available to us
in our industrial agreement. My take is if it’s a benefit for the nurses union, all of our nurses under that industrial agreement should be able to access that,” Ms Lightbourne said.
“It’s very taxing because it is unfair for me, who is a member of the union, and another nurse was also a member of the union and she doesn’t have that insurance and I have it. It’s unfair because when we work in our areas it does not matter if you’re working in Sandilands. I know our patients aren’t going to ask ‘you have the insurance before I knock you?’ When we work in the other hospital settings, it doesn’t matter. Germs don’t care.
“Some of our departments do not have the insurance administrator to help us to enrol in it, and it takes a long time. So after you would have passed that window of opportunity where you don’t enrol
in this insurance, where you don’t have to do a physical and all that other stuff, then that’s where you are.”
Charelle Lockhart, president of the Consultant Physicians Staff Association (CPSA), added: “We’ve talked about this so much. It’s ridiculous that we don’t have the benefit of health insurance...”
In terms of industrial agreements, Ms Lockhart said the CPSA’s previous deal ended in 2021 “and we are still desperately fighting to get a new agreement signed within that.” Nadia Vanderpool, president of the Union of Public Officers, stated the negotiations process with the National Insurance Board (NIB) is at a standstill.
“So we have been in active negotiations of this new agreement now for a little over one year with the company. Mr [Obie] Ferguson sat with us at the negotiations table as our
lead negotiator. And the issue we’re having right now is the financials of our negotiations, the financial package. So the company and I, the Board of Directors and executives at the company, they are trying to cut all of our benefits,” she alleged.
“When I say cut the increments, they want to lower our increment amounts. They want to lower all of the benefit amounts that we had in our now-expired industrial agreement. And we cannot accept that. When we go to the table, we are there to negotiate benefits on behalf of the workers.
“And, as we all know, everything in the country, in this world, is increasing. So how is it that they expect for us to agree to lower the benefits for the members at this stage now in the negotiations? So we’re at a standstill right now in the negotiation process.”
Welcome to the party
By CHRIS ILLING CCO @ ActivTrades Corp
ON THE financial markets, the “Trump trade” is in full swing, and Bitcoin & Co are among the top favorites.
The bull market has already driven the cryptocurrency above the $90,000 mark.
After the election victory of Donald Trump, cryptocurrencies are experiencing an unprecedented hype.
Preliminary highlight was last Wednesday when Bitcoin temporarily rose to more than $93,000, a new record high.
The fear of missing out, the renunciation of control and Donald Trump’s big promises are driving Bitcoin & Co up.
If you missed the Bitcoin price rally in the fall of 2020, you want to be there at least now: Since Donald Trump’s election victory on November 6, Bitcoin has gained more than 20 percent within a week and cracked the $90,000 mark with this “Trump Jump”. The popular round mark of $100,000 is in sight, and since the beginning of the year, the Bitcoin price has more than doubled.
The crypto community is also relying on one of Trump’s central promises: to dismantle the supposedly annoying and anti-progress regulation.
“Deregulation” was already a key term during Trump’s first term in office, which put the financial and oil industries in high spirits. The incoming president
wants to get rid of annoying crypto critics such as SEC chairman Gary Gensler and Sherrod Brown, chairman of the Senate Banking
Committee. And in a second step, ensure that the US crypto industry is no longer controlled by the SEC. Senator Brown’s successor on the powerful Senate Banking Committee is expected to be Republican Tim Scott of South Carolina, who has already announced plans to ease the requirements for crypto trading houses.
In addition to dismantling control, the crypto lobby is working flat out to make it easier for institutional investors and major US banks to access cryptocurrencies.
Many large investors have held back in the past because of the extreme price fluctuations and low liquidity of cryptocurrencies. If it is possible to establish crypto as a normal asset class, which is recommended by commercial banks and asset managers as an “admixture” for the portfolio, this would be a milestone for the industry. The savvy investor will follow the party invitation list.
MANDATORY PENSIONS TO BOOST CAPITAL MARKETS
from page two
and incentivise their “maturity and sophistication”.
“Going forward, I have already foreshadowed that the Securities Commission will be working closely with BISX, and we’ve already been working closely with BISX to develop a paper that will look to how the capital markets in The Bahamas can grow. We anticipate that one of the key features of this paper will be a recommendation for mandatory pensions,” Ms Rolle explained.
“We believe that this is critical for the development, for the future, of The Bahamas; for the development
and the funding of capital in The Bahamas. We also think that it will be one of the key drivers in serving to grease the wheels, as it were, and also to enable more maturity and sophistication in our markets.
“If Bahamians are to become engaged, then they need an avenue by which they would become engaged, and certainly mandatory pensions will provide that avenue.”
Ms Rolle said global capital markets are in a “continuous state of evolution” as evidenced by the increasing adoption of in digital assets.
“The capital markets are in continuous state of evolution, which is most recently seen in new asset
classes and the advance of FinTech (financial technology) and their associated risks. These all demand appropriate regulatory responses to facilitate those seeking to raise capital and to provide appropriate protections, and hence confidence, to those seeking to invest,” said Ms Rolle.
“Let me just say briefly that the capital markets in The Bahamas are critical for the growth and the development of the Bahamian economy. Entrepreneurs need critical funding in order to advance their ideas, in order to advance their businesses, in order to advance their growth. BISX plays a critical role in this.”
‘I have already foreshadowed that the Securities Commission will be working closely with BISX, and we’ve already been working closely with BISX to develop a paper that will look to how the capital markets in The Bahamas can grow. We anticipate that one of the key features of this paper will be a recommendation for mandatory pensions.’
Nearly 2,000 will share $1m Auto H&L payout
It regulates the interest that can be charged on loans, stipulating that this must not exceed 20 percent per annum on credit of more than $100 or 30 percent on sums below $100. While the Securities Commission’s release then did not specifically say so, the fact Auto H&L was “in breach” seems to imply it was charging interest in excess of those percentages. The auto dealer, which was based on Tonique Williams Highway, had “asserted that these
miscalculations were inadvertent” and has pledged to “fully reimburse” all impacted Bahamians for the period between 2019 and 2023. However, the compensation effort was complicated because some Auto H & L client files were “irreparably damaged” by what was described as an “on-site accident”. Tribune Business understands that Baker Tilly Gomez had to reconstruct some of Auto H&L’s via electronic means after a truck allegedly ran into the building where paper-based files were kept. “How could a big truck, a garbage truck,
hit the exact spot where the records were?” one source queried. “It hasn’t been found, and no one showed up at the hospital for injuries.”
The loan amounts were relatively small, representing credit issued for the purchase of autos and other consumer items to lower and middle income Bahamians. The Securities Commission, in its May 15, 2024, statement, confirmed that Auto H&L was one of its licensees under the Financial and Corporate Service Providers Act 2020.
“Through an on-site examination conducted in
March 2022, and followedup in March 2023, the Commission became aware that Auto H&L miscalculated the interest on loans for its customers as required under the Rate of Interest Act,” the regulator said.
“Subsequent to its follow-up examination in March 2023, the Commission engaged the audit firm, Baker Tilly Gomez, to conduct an independent examination focused on interest calculations during the period 2019 to 2023.
The examination confirmed that Auto H&L was in breach of the Rate of Interest Act and a final report
RESORTS REBOUND FROM 5-15% FALL
from page one
“Yes, pick up is happening for that period and obviously festive,” Mr Sands said in reference to Thanksgiving and Christmas. “We are seeing pick up for Thanksgiving and the festive period.... Coming out of a very soft October, and even softer September, the pick up quite frankly is encouraging for that time period.
“I think were getting close to the levels of 2023, and the lead time for bookings is still a short window. I think we should see some occupancies close to what was achieved last year. I think we’re going to be pretty close or equal to what we may have achieved
in terms of occupancy levels.
“It’s not only occupancy itself but rates, so we have to see how yields for that period turn out. They were extremely strong [in 2023].
I think it’s fair to say, as we look at the last two weeks in November, they are very respectable comparisons and it continues to grow,” he added. “Festive is always, and when I speak of festive I’m talking about December 20 onwards, very strong. That’s not a difficult time period to fill.”
Asked just how soft recent months have been, Mr Sands replied: “I would say that occupancies varied from approximately 5-15 percent [down] at different resorts compared to last
year. That started at the end of June. We had a low July, August, September and certainly October, but now we are coming out of it.
“We’ll see what happens in November. We may be off but not by much. From a rate perspective, combined there was no growth. It was more an occupancy issue and no real growth in rates. There was no growth. We saw that last through July, August, September and October, but it’s reversed itself.”
The BHTA president was backed by Mrs Jibrilu, who told Tribune Business that this year’s September-October period - traditionally the slowest months in the Bahamian tourism calendar - had interrupted
the progress this nation has made in reducing the impact of “seasonality” on the industry.
“It’s been really soft, and the softness has been felt across the board,” she said of those two months. “It’s not just the hotels; it trickles down to the taxi drivers and suppliers. We’re really pleased to see what’s ahead.
“At the beginning of the year we went through the travel advisory. It impacted travel then, and to have two weak months.... We were doing well as a destination, getting rid of seasonality, but to have the bumps this year it’s good to get back on track.
“We are looking at a very good result for Thanksgiving and most of our hotels are reporting a robust or strong December, so it’s very good news after the slow September and October. The fact we are rebounding so swiftly in November and December is great news.”
Mr Sands, meanwhile, said the room rates that the industry achieves are key to just how successful the Thanksgiving and Christmas/New Year
was provided to Auto H&L in January 2024. “In its defence, Auto H&L has asserted that these miscalculations were inadvertent and, as such, has agreed to fully reimburse all clients who were impacted,” the Securities Commission added.
“Persons affected by Auto H&L’s miscalculations may include both present and past clients of Auto H&L during the years 2019 to 2023.
“However, due to an onsite accident, certain client records of Auto H&L were irreparably damaged. As such, the Commission
requires Auto H&L to reach out to the public in order to ascertain, as best as possible, the full population that may have been impacted by the interest miscalculations.”
Borrowers were given until August 30, 2024, to supply proof of their identity, their loan and its terms/ rate, and payments made on it to Mr Gomez and Baker Tilly Gomez. “Note that if you are unable to locate any of the above required documents, Auto H&L may not be able to disburse any owed amounts to you,” the Securities Commission warned at that time.
OCCUPANCY DROP
holiday periods will be for Bahamian resorts. “The question is: Can we yield?” he told this newspaper. “Occupancy is not the issue. It’s can we get the type of returns that we’re actually looking for in the destination?
“I think so. The demand is very strong. During the last two weeks, certainly for New Year, we will be sold out. Very strong. But let’s not count our chickens before they are hatched. With no unforeseen external issues I think Bahamian tourism should have a very strong Thanksgiving and a strong festive season.”
Both Mr Sands and Mrs Jibrilu attributed the soft 2024 fall period to the impact of devastating hurricanes that hit key source markets such as Florida, Georgia and the Carolinas, which made persons “nervous” about travelling to The Bahamas and the wider region. The Nassau/ Paradise Island Promotion Board chief said this nation was not an outlier as other Caribbean states suffered similar trends.
“I think we need to put things in context,” Mr
Sands said. “There were a number of contributing elements to that. Number one, the pending US presidential election. Number two, there were a number of weather-related incidents during that period that resulted in airports being closed in source markets for different periods of time. There was some tentativeness in the market until the US got through their difficult period.”
The duo also credited sporting and events-driven tourism for stimulating visitor interest and driving resort bookings with the ‘Battle 4 Atlantis’ and ‘Baha Mar Hoops’ tournaments at Thanksgiving. Mrs Jibrilu said: “The spill over is Comfort Suites picks up a lot of rooms, so the trickle down effect is very important.”
advertise
SEBAS’S DEALER IN CHINESE ELECTRIC VEHICLE PARTNERSHIP
By NEIL HARTNELL
Business Editor
SEBAS Bastian’s electric vehicle dealership has signed an exclusive distribution deal to introduce a Chinese manufacturer’s commercial autos to the Bahamian market.
EV Motors, in a statement, said the tie-up with Karry Commercial International, a provider of all-electric commercial vehicles, will introduce autos targeted at businesses seeking to upgrade to cleaner, more efficient fleets.
The Bahamian dealer added that it will carry
ten models from Karry’s line-up, including passenger vans, cargo vans, light commercial trucks, commercial flatbeds and box trucks. Karry Commercial International operates under Chery Auto, focusing on developing all-electric commercial vehicles.
“This partnership with Karry Commercial International allows EV Motors to lead the charge in bringing all-electric commercial vehicles to The Bahamas,” said Mr Bastian, chairman of EV Motors.
“We’re proud to offer Karry’s dependable and environmentally-friendly vehicles to Bahamian businesses. By combining these
vehicles with our strong after-sales service and flexible financing options, we’re confident that Karry will become the preferred commercial vehicle brand in The Bahamas.”
EV Motors said it has partnered with Bahamian banks to provide financing options for electric vehicle purchases. It is also offering inhouse leasing options to reduce upfront costs and make electric vehicles more accessible. It added that buyers will gain a strong factory warranty, readily available in-stock parts and service centres equipped to keep Karry vehicles operating efficiently.
‘No rocket science’: Ease housing crisis via 70 percent lot discount
from page one
overturning the status quo.
And he warned that the Government will have “to work through the bureaucracy” if much-needed housing reforms are to succeed.
“Under the previous administration I worked as a consultant in the Department of Housing on contract,” Mr Strachan said in a letter also sent to Tribune Business.
“At that time, I believed the Government was on the right course in that it was making it possible to own a lot by offering a 70 percent discount off the appraised value.
“This was perfect in that it allowed the financial institution to use the equity owned by the prospect towards his/her down payment and closing costs for a pre-constructed home. The fact of the matter is the Government owns hundreds of acres of Crown Land in New Providence.
“For example, the Government’s newest subdivision, The Renaissance, formerly known as Carmichael Estates, has almost 400 lots. I am advised that those lots are being sold for $80,000 to $85,000 as part of the cost of a newly constructed home,” Mr Strachan continued.
“If the Government
really wants to put a dent in the housing crisis it would discount those lots by 70 percent. This would now enable hundreds of Bahamians to qualify for a home. The house and lot package price remains the same. The financial institution understands that it is an incentive for new home buyers. That would make a hell of difference for many Bahamians.
“It is Crown Land. The Government never paid a red cent for it. And the 30 percent [of the purchase price] collected on the lot by the Government should cover the cost of infrastructure. This can be done. It should be done for those hundreds of Bahamians who dream of owning a roof over their heads. I believe it is incumbent for the Government to push those persons over the finish line.”
Speaking subsequently to Tribune Business, Mr Strachan reaffirmed of his 70 percent discount plan: “That would enable many more Bahamians to qualify for a home. The point I want to make is that if these guys want to make a change they can do something. It doesn’t take a rocket scientist.
“You can cuss Minnis out as much as you want but what he was doing was very good for prospective home buyers. Any
financial institution, if you go to them and you have 60-70 percent equity in the project they are going to give you a break on your closing fees and down payment.
“What I’m suggesting doesn’t take a rocket scientist. This talk, talk, talk. I believe only 20 percent of home buyers can qualify under the present system. But they [the Government] have to have the desire and be committed to this thing. What do they say about insanity? It’s doing the same thing over and over again and getting the same results,” he added.
“The real problem is that people in key positions are bankrupt of ideas. You never hear them come up with any creative ideas. We continue down the same road we have always been doing. We have got to take some chances, be creative and see where we go.”
Describing increased home ownership and related construction activity as a “win-win” because of the economic boost generated, Mr Strachan reiterated: “We’ve got to get excited and do something new. There has to be a commitment there to do it, and also we need people to work through the bureaucracy. Who is willing to work through that?
“If we can find some
people to work through that and see the vision of what I’m suggesting then we are on the road to putting a dent in the housing crisis.” The ex-BREA president also called for reform at the Bahamas Mortgage Corporation, arguing it had drifted away from its original purpose “to assist the small man” with home ownership to competing with the likes of Royal Bank of Canada and other commercial lenders.
“Their interest rates should not be more than 2 percent above Prime,” he argued. “There are creative ways where down payments can be as low as zero or 2.5 percent. They need the ability and creative vision to make it happen.”
Mr Strachan also called on the Government to put its “acres and acres of Crown Land” to more productive use and partner with developers to ease the housing shortage. “Let them develop it with the
understanding they would give prospective purchasers a discount on the lot,” he added. Providing the land at a discount, and agreeing terms on price and construction costs, would also ensure developers keep units affordable.
The former BREA president, in his letter, wrote:
“Because the government is in possession of thousands of acres of Crown Land, it may want to entertain the idea of assigning 25, 50, 75 or 100 acres to private home developers with the understanding that when the land is developed, it will offer lots at 70 percent off the appraised value assuming the prospect is buying a new home.
“I can almost guarantee that this will enable hundreds of Bahamians to own a piece of the rock. The point is we need creative solutions to solve our housing crisis. If we continue with the status quo we will continue to get what we are getting.”
He added: “As for the Bahamas Mortgage Corporation (BMC), they have lost their way a long time ago. They were created to help ‘the small man’. However, nowadays they are competing with the commercial banks. BMC’s interest rate ought to be in the ball park of 2 percent.
“The down payment should be 5 percent maximum or zero down payment. These would enable many Bahamians to qualify for a home mortgage. In the US, federal mortgage agencies provide mortgages with zero down payment. This can work in The Bahamas if our desire to help is strong enough.
“The question is: Do we really want to help the single mothers? The less fortunate? I believe government has a duty too. And if they really care about putting a dent in the crisis it will happen. But it will take effort and focus. And a commitment.”
SEBAS Bastian has signed an exclusive deal to introduce Karry Commercial International vehicles to the Bahamian market.
Boeing issues layoff notices to hundreds of its workers
SEATTLE Associated Press
BOEING has delivered layoff notices to more than 400 members of its professional aerospace labour union, part of thousands of cuts planned as the company struggles to recover from financial and regulatory trouble as well as an eight-week strike by its machinists’ union.
The pink slips went out last week to members of the Society of Professional Engineering Employees in Aerospace, or SPEEA, The Seattle Times reported. The workers will remain on the payroll through mid-January.
Boeing announced in October that it planned to cut ten percent of its workforce, about 17,000 jobs, in the coming months. CEO Kelly Ortberg told employees the company must “reset its workforce levels to align with our financial reality”.
The Society of Professional Engineering Employees in Aerospace, or SPEEA, union said the cuts had affected 438 members.
The union’s local chapter has 17,000 Boeing employees who are largely based in Washington, with
some in Oregon, California and Utah.
Of those 438 workers, 218 are members of SPEEA’s professional unit, which includes engineers and scientists. The rest are members of the technical unit, which includes analysts, planners, technicians and skilled tradespeople. Eligible employees will receive career transition services and subsidised health care benefits for up to three months. Workers will also receive severance, typically about one week of pay for every year of service.
Boeing’s unionised machinists began returning to work earlier this month following the strike. The strike strained Boeing’s finances. But Ortberg said on an October call with analysts that it did not cause the layoffs, which he described as a result of overstaffing.
Boeing, based in Arlington, Virginia, has been in financial and regulatory trouble since a panel blew off the fuselage of an Alaska Airlines plane in January. Production rates slowed to a crawl, and the Federal Aviation Administration capped production of the 737 MAX at 38 planes per month, a threshold Boeing has yet to reach.
DOZENS ARE SICKENED AND 1 PERSON DIED AFTER EATING CARROTS CONTAMINATED WITH E. COLI
By CATHY BUSSEWITZ Business Writer
AN OUTBREAK of E. coli has infected dozens of people who ate bagged organic carrots, and one person died from the infection.
Altogether, 39 people were infected and 15 were hospitalised in 18 states after eating organic whole and baby carrots sold by Grimmway Farms, the federal Centers for Disease Control and Prevention said on Sunday.
Grimmway Farms, based in Bakersfiled, California, has recalled the carrots, which included whole and baby organic carrots sold in bags under multiple brand names including 365, CalOrganic, Nature’s Promise, O-Organics, Trader Joe’s and Wegmans, among others.
The carrots are no longer in stores, but the CDC is warning consumers to not eat recalled bag carrots and to check their refrigerators or freezers and throw away any carrots that fit the description.
Most of the infected people live in New York, Minnesota and Washington, followed by California and Oregon, although infections have been reported in states throughout the country, according to the CDC. There have been several
E. coli outbreaks in recent months. In October, more than 100 McDonald’s customers were sickened by an E. coli outbreak in the US linked to slivered onions.
In the UK, one person died in an E. coli outbreak in June linked to lettuce that sickened at least 275 people. Organic walnuts sickened consumers in 19 states with E. coli infections in April.
Despite the number of recent outbreaks, experts say the food supply is generally safe, although there hasn’t been much progress in curbing infections caused by E. coli.
The recalled organic baby carrots have best-by dates ranging from September 11 through November 12, according to the US Food and Drug Administration.
Symptoms of E. coli infection usually start three to four days after eating the bacteria and include severe stomach cramps, diarrhea, which is often bloody, and vomiting. People with severe symptoms of an E. coli infection should seek medical attention and tell the provider what they ate, the CDC said.
The bacteria E. coli can cause serious and sometimes fatal infections in young children, elderly people and those with weakened immune systems, according to the FDA.
NOTICE is hereby given that ANEL ACCEUS, Hawkins Hill, Nassau, Bahamas, applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 11th day of November, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
UNION WORKERS PICKET FOR THIRD DAY AT LAS VEGAS CASINO WITH NO TALKS SLATED
LAS VEGAS Associated
Press
PICKETING continued on Sunday outside a hotelcasino near the Las Vegas Strip that remained open with no talks scheduled between management and union members striking for a new contract.
Workers are seeking a pay raise and benefits comparable to pacts reached
last year at other resorts. The walkout by the Culinary Workers Union laborers at Virgin Hotels Las Vegas comes a week before the second annual Las Vegas Grand Prix is due to draw hundreds of thousands of fans for Formula 1 racing on the Strip and nearby streets. It’s the first open-ended strike since 2002 for the largest labor union in Nevada, which has
about 60,000 members.
No new negotiations were scheduled, said union spokesperson Bethany Khan and Terri Maruca, media representative for Virgin Hotels, owner of the 1,500-room property.
Maruca said the company has fielded applications from more than 600 prospective contract and temporary workers since Friday. The union pays
striking workers $500 per week for at least five days for picketing shifts. Guest room attendants, cocktail and food servers, porters, bellmen, cooks, bartenders and laundry workers are among those carrying picket signs at the property, where workers also staged a 48-hour job action last May to call for Virgin Hotels to agree to a new five-year deal with expanded benefits and
increased wages. Other casinos on and off the Strip reached deadline agreements with the union just before the Formula 1 race a year ago, with contracts containing salary increases of about 32 percent over five years for tens of thousands of workers at properties including the Bellagio, Paris Las Vegas, MGM Grand and Caesars Palace.
In a statement on Sunday, Virgin Hotels called those contracts “economically unsustainable” and said it wants a “reasonable agreement” for its 1,710 employees. It has accused union leaders of refusing to engage in “meaningful negotiations.”
Culinary Union members last went on strike in 2002 for ten days at the Golden Gate hotel-casino in downtown Las Vegas.
Notice is hereby given that, in accordance with Section 138 (4) of the International Business Companies Act, FIDCOM INTERNATIONAL LTD. is in dissolution. The date of 14th November is the Liquidator and can Etzelstrasse 80, 8808 Pfaffikon,
All persons having claims against the above-named Company are required to send their names, addresses and particulars of their debts or claims to the Liquidator
Casuarina Advisory Ltd. In Voluntary Liquidation
Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, Casuarina Advisory Ltd., is in dissolution as of October 3, 2024.
Lighthouse Corporate Services Ltd., situated at Unit #3, Pineapple Grove, Western Road, Nassau, The Bahamas is the liquidator.
MEMBERS of the Culinary Workers Union picket in front of the Virgin Hotels Las Vegas, on Friday, in Las Vegas.
Photo: John Locher/AP
Will the antitrust showdown launched under Biden turn into
‘Let’s Make A Deal’ under Trump?
By MICHAEL LIEDTKE AP Business Writer
THE US antitrust watchdogs that pounced on Big Tech and deterred corporate deal making throughout President Joe Biden’s administration may be kept on a shorter leash by Donald Trump after he returns to the White House next year.
Although regulators began cracking down on tech powerhouses such as Google and Facebook during Trump’s first term as president, most experts expect his second administration to ease up on antitrust enforcement and be more receptive to mergers and deal-making after years of hypervigilance under Biden’s watch.
One of the biggest reasons underlying the anticipated pivot stems from the widespread belief that the chief architects of the Biden administration’s get-tougher stance — Lina Khan of the US Federal Trade Commission and the Justice Department’s Jonathan Kanter — won’t be part of the Trump regime.
Both the Justice Department and FTC didn’t respond to request for comment.
Trump’s announcement of billionaire Elon Musk, who once anointed himself as “Technoking,” to oversee an advisory effort focused on slashing government spending could end up reducing the staffs and regulators trying to rein in deep-pocketed companies.
And Trump’s nomination of combative supporter Matt Gaetz to be US Attorney General has thrown even more uncertainty into the game. Gaetz has previously lashed out at social media platforms’ policies he claims suppress conservative views, and has, at times, joined in on calls to break up Big Tech. He also has a track record of supporting causes trumpeted by Trump.
“There are going to be some profound changes” in antitrust policies, predicts John Kwoka, an economics professor at Northeastern University that has periodically worked on antitrust issues with the FTC and Justice Department. “Elon Musk could end up having a larger-than-life influence on policy, and that isn’t something we have seen before, where a single person whispers in the ear of the President.”
Other experts interviewed by The Associated Press mostly agree with Kwoka’s sentiments. But they also believe it’s highly unlikely the anticipated shift will result in regulators abandoning existing antitrust cases against Big Tech firms, partly because those legal showdowns coalesce with populist worries about the industry’s increasing power and influence on
people’s lives.
“We are in uncharted territory, but the idea of going up against Big Tech still has legs to it,” said Rebecca Allensworth, a Vanderbilt University law professor who tracks antitrust issues.
But the changing of the guard may open a door for Google, Apple, Amazon and Facebook to avert prolonged court battles and negotiate settlements under a president that relishes in deal making.
“Maybe Big Tech should buy a copy of ‘The Art of The Deal’ to figure out how to best negotiate with this administration,” suggested Paul Swanson, an antitrust attorney for the law firm Holland & Hart. “I won’t be surprised if they find ways to reach some accommodations and we end up seeing more negotiated resolutions and consent decrees.”
While the fate of existing antitrust cases remains in a realm of pure speculation, almost everyone is betting the Trump administration will be more receptive to mergers that typically come with a promise of lower costs and other benefits for consumers.
The stage is set for “a golden era for deal flow among public and private tech players over the next 12 to 18 months,” Wedbush Securities analyst Dan Ives wrote in a research note after Trump’s reelection.
It’s a belief widely shared by most investors, which helped fuel a run up in the overall stock market since Election Day and boosted shares in companies trying to close deals announced during the Biden administration. One such example involves Capital One Financial and Discover, who aim to consummate their merger in a stock swap next year. Capital One’s market value has increased by 11% while Discover’s market value has climbed 16%.
The change in administration could also sway a proposed merger between the country’s two biggest supermarket chains, Kroger and Albertsons, which forged a $24.6 billion deal to combine in 2022. But
the FTC’s challenge to the Kroger-Albertsons merger. In another case that has been cheered by hordes of consumers, the Justice Department is seeking to break up Ticketmaster and its corporate parent Live Nation in a lawsuit claiming their practices are driving up the cost of concerts and other entertainment.
Despite the grassroots support for that case, Live Nation executives are signaling they think they can preserve the current system under a Trump presidency.
the FTC filed a lawsuit in federal court earlier this year to block the merger, claiming the deal would eliminate competition, leading to higher prices and lower wages for workers. But the two companies say a merger would help them lower prices and compete against bigger rivals like Walmart.
Given grocery prices remain a hot-button issue among consumers still feeling shell shocked from post-pandemic inflationary spikes, Allensworth believes the Trump administration is less likely to “abandon or soft pedal”
“We are hopeful that we’ll see a return to the more traditional antitrust approach, where the agencies have generally tried to find ways to solve problems they see with targeted remedies that minimize government intervention in the marketplace,” Live Nation President Joe Berchtold said during a conference call with investors shortly after the election.
Deals that got torpedoed by the Biden administration could find new life with Trump in command. American and JetBlue are already considering resurrecting a partnership after an earlier proposal got torpedoed by a legal challenge by Biden’s antitrust team — a decision that was recently upheld by a Boston appeals court.
“We are still taking a look
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at it,” American Airlines CEO Robert Isom said shortly after the election.
“We will take everything that the court has fed back, and we’ll put that into consideration.”
Similar conversations are likely taking place among other executives re-examining deals that seemed off-limits during the Biden administration, said Colin Kass, an antitrust attorney at the law firm Proskauer Rose,
“It’s almost certain there were deals that people put the brakes on because of antitrust concerns and those will be revisited to decide whether they still make economic sense,” Kass said. “If so, they will present it to the DOJ. And if there needs to be a fix, it’s more likely to get fixed than blocked outright. So it’s worth taking a chance at getting these deals done.”
As for the efforts to dismantle Big Tech monopolies, the first case brought by the Trump administration against Google is now in the hands of a federal judge who ruled in August that the company’s dominant search engine is an illegal monopoly. U.S. District Judge Amit Mehta in Washington, D.C. is now weighing what kind of punishment to impose on Google. A decision is expected by August next year.
In a preliminary proposal filed last month, the Justice Department indicated it might try to persuade Mehta to order that key parts of Google be broken up to restore competition.
The Justice Department’s final draft of recommended penalties is due this Wednesday. The filing isn’t likely to be influenced by the specter of the Trump administration taking over next January as Kanter and the rest of the team he assembled at Justice get one final chance to state their case against Google, said David Olson, an associate law professor for Boston College.
A reshuffled team of antitrust regulators appointed by Trump could still backtrack from whatever position is staked out in the Nov 20 filing and take a different stance when Mehta presides over the hearings about the proposed punishments next spring.
“It is disheartening to see,” Kwoka said. “A tougher policy was in order because the tech companies in particular had been allowed to behave without any significant restraint for 20 years. And then we all recognised it was going to take more than four years to establish a tougher policy and show its merits. Now, that may not happen.”
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1st December, 2023 to all shareholders of record as of Friday,
LINA KHAN, one of the architects of the get-tough stance by the Biden administration, will not be part of the new Trump regime. Photo: Mark Schiefelbein/AP
A vintage occasion
ATTENDEES at Gray-
cliff restaurant enjoyed an Fifty Vintages of Caymus wine pairing dinner. The evening’s celebration featured the winery’s 50th-anniversary vintage - the 2022 Caymus Cabernet Sauvignon.
The wines produced by the Wagner Family, Mer Soleil Chardonnay, Emmolo Sauvignon Blanc, Emmolo Merlot, and the Caymus Cabernets, were paired with six courses.
Since 1972, the Wagner family has produced wines in limited quantities, and are best known for their Napa Valley Cabernet Sauvignons
“The evening was truly exceptional, and the expertise of sommelier Kyle Stubbs was unparalleled,” said attendee Delmaro Duncombe. “His tasting notes were spot on, and his knowledge of the wine varieties was impressive. I eagerly anticipate the next event.”
Bristol Wine and Spirits offers wine pairing dinners, which are ideal for novices or enthusiasts to discover and enjoy a variety of wines and extraordinary meals.
Gricelle Richmond, brand manager for Caymus Vineyards, advised that a special offer is available to those who purchased the $250 ticketed event - and that an introductory discount for the anniversary wine us available to the public.
GRAYCLIFF’S ENRICO GARZAROLI, left, with Gricelle Richmond, brand manager for Caymus Vineyards.
Photo: Azaleta Ishmael-Newry
Alaska political leaders hope to see Trump undo restrictions on oil drilling
By BECKY BOHRER Associated Press PRESIDENT-ELECT
Donald Trump promised repeatedly during his campaign to expand oil drilling in the US, which is good news for political leaders in Alaska, where oil is the economic lifeblood and many felt the Biden administration has obstructed efforts to boost the state’s diminished production.
A debate over drilling on federal lands on Alaska’s petroleum-rich North Slope will likely be revived in the coming months, particularly in the Arctic National Wildlife Refuge, which environmentalists have long sought to protect as one of the country’s last wild places.
On Saturday, Trump named Chris Wright — a campaign donor, fossil fuel executive and vocal advocate of oil and gas development — to serve as energy secretary in his second administration.
The question of drilling on the refuge’s coastal plain, as Trump sought to do during his first term, also divides Alaska Native communities. Some welcome the potential new revenue while others worry about how it will impact wildlife in an area they consider sacred.
What is the Arctic National Wildlife Refuge?
The largest wildlife refuge in the country covers an area of north-east Alaska roughly the size of South Carolina. It boasts a diverse landscape of mountains and glaciers, tundra plains, rivers and boreal forest, and is home to a variety of wildlife including polar bears, caribou, musk ox and birds.
The fight over whether to drill in the refuge’s coastal plain along the Beaufort Sea goes back decades.
Drilling advocates say development could create thousands of jobs, generate billions of dollars in revenue, and spur US oil production. While the US Bureau of Land Management has said the coastal plain could contain 4.25 billion to 11.8 billion barrels of recoverable oil, there is limited information about the amount and quality of oil. And it’s unclear whether companies will want to risk pursuing projects that could become mired in litigation. Environmentalists and climate scientists have pushed for a phase-out of fossil fuels to avert the worst consequences of climate change. The refuge is east of the oil fields in Prudhoe Bay and the National Petroleum Reserve-Alaska, where the Biden administration approved the controversial Willow oil project but also made about half the
petroleum reserve off-limits to oil and gas leasing.
Have there been efforts to drill in the refuge?
An exploration well was drilled in the 1980s on lands where Alaska Native corporations held rights, but little information has been released about the results.
Still, opening the coastal plain to drilling has been a longtime goal for members of Alaska’s congressional delegation.
In 2017, they added language to a tax bill mandating two oil and gas lease sales by late 2024.
The first sale took place in the waning days of the last Trump administration, but President Joe Biden quickly called on Interior Secretary Deb Haaland to review the leasing programme.
That led to the cancelation of seven leases that had been acquired by the Alaska Industrial Development and Export Authority, a state
corporation. Smaller companies gave up two other leases. Litigation is pending over the canceled leases.
The Biden administration recently released a new environmental review, ahead of the deadline for the second required sale.
It proposes offering what the Bureau of Land Management said would be the minimum acreage the 2017 law allows — a proposal Alaska’s Republican US senators cast as a mockery of the law meant to encourage exploration.
What do Alaska Natives want?
There are sharp divisions.
Leaders of the Iñupiaq community of Kaktovik, which is within the refuge, support drilling. Gwich’in officials in communities near the refuge have said they consider the coastal plain sacred. Caribou they rely on calve there.
Galen Gilbert, first chief
of Arctic Village Council, said the refuge should be off-limits to drilling.
Arctic Village is a Neets’aii Gwich’in community.
“We don’t want to bother anybody. We don’t want anything. We just want our way of life, not only for us, but for our future generations,” Gilbert said.
Leaders in Kaktovik have vowed to fight any attempt by the US Fish and Wildlife Service to designate the lands as sacred. Josiah Patkotak, mayor of the North Slope Borough, which includes Kaktovik, said in an October opinion piece that the land “has never been” Gwich’in territory.
“The federal government must understand that any attempt to undermine our sovereignty will be met with fierce resistance,” he wrote.
Oil is vital to the economic wellbeing of North Slope communities, said Nagruk Harcharek, president of Voice of the Arctic Iñupiat,
a nonprofit advocacy group whose members include leaders from that region. Responsible development has long coexisted with subsistence lifestyles, he said.
After Trump’s election, what might change?
In a video posted on X by Republican Governor Mike Dunleavy, Trump said he would work to ensure a natural gas pipeline project long sought by state political leaders is built.
The project, opposed by environmentalists, has floundered over the years due to changes in direction under various governors, cost concerns and other factors.
While voters “might not have been head over heels” for Trump, “they appreciated that his policies, when they come to resource development, are clearly policies that work to benefit an economy like Alaska’s,” Trump critic US Senator Lisa Murkowski told reporters.
“So I would anticipate that we would see, again, a return to greater economic opportunities through resource development,” she said.
Dunleavy said Trump could undo restrictions imposed by the Biden administration on new oil and gas leasing on 13 million acres of the petroleum reserve. Harcharek’s group sued over the restrictions, arguing that the region’s elected leaders had been ignored.
Erik Grafe, an attorney for Earthjustice in Alaska, said the petroleum reserve was not set aside “to get oil out at all costs.” Other important resources must be considered and afforded protections under the law, he said. “Oil is not the future and it can’t be,” Grafe said. “The state needs to start thinking of a Plan B, post-oil.”
EDWIN SOLOMON, 18, right, stands in the wind and snow while filling up a truck with regular gas at a price of $7.50 a gallon, in Kaktovik, Alaska.
Photo: Lindsey Wasson/AP