business@tribunemedia.net
THURSDAY, NOVEMBER 23, 2023
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Maritime contracts signed ‘maliciously’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A SENIOR civil servant is alleging that two controversial multi-million dollar maritime contracts were executed “negligently, unlawfully and maliciously” in contravention of public service rules. Antoinette Thompson, the top civil servant in the then-Ministry of Transport and Housing until she was placed on “unrecorded leave” in April 2023, is claiming in legal documents that the two “large contracts” were signed and executed by junior officials “without the knowledge or authority” of herself even though - as permanent secretary - she was the one required to sign-off.
t 5PQ PGmDJBM T MBXTVJU TQPUMJHIUT NVMUJ NJMMJPO EFBMT t &YFDVUJPO AJSSFHVMBS WJPMBUFE QVCMJD TFSWJDF SVMFT t A/P GVOEJOH GPS DPOUSBDUT BUUBDLFE CZ 1JOUBSE And she alleged that one of the contracts, which committed the Government to pay $3.355m for the development of an online portal to capture private boat and yacht charter fees, was signed by Gaynell Rolle, the Ministry of Transport and Housing’s under-secretary, prior to all the necessary documents arriving at the ministry’s offices.
That contract, handed to DigieSoft Technologies, as well as the annual $3.57m award to Adolpha Maritime Group for the maintenance of navigational aids in Nassau and other harbours across The Bahamas, were both cited for procedural irregularities in Ms Thompson’s October 27, 2023, action naming both Prime Minister Philip Davis KC and her then-minister,
THE BAHAMAS must not implement a corporate income tax “on the narrow performance of entities” such as Shell which last year paid zero tax on its local subsidiary’s $1.55bn profits. Hubert Edwards, the Organisation for Responsible Governance’s (ORG) economic development committee head, told Tribune Business that the massive 2022 earnings generated by Shell’s Bahamian affiliate posed “an interesting question” as to whether this nation should capture
a portion of that $1.55bn by switching to corporate income tax. He argued, though, that a much wider analysis of the impact from such a seismic taxation change must be conducted on the entire Bahamian economy and businesses of all sizes must be conducted before a decision is taken on which direction to move in. Mr Edwards, while acknowledging the Government’s need for revenues to fund public services and infrastructure development, told this newspaper that this must be balanced
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Liquidators control 30% of FTX Bahamas cash By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net FTX’s Bahamian liquidators have to-date gained control of just 30 percent of the local subsidiary’s $255.2m cash assets despite locating fresh recoveries in Switzerland. Brian Simms KC, the Lennox Paton senior partner, and PricewaterhouseCoopers (PwC) accounting duo, Kevin Cambridge and Peter Greaves, in their third report to the Supreme Court revealed that they have identified a further $35.7m in FTX Digital Markets’ name at a Swiss financial institution.
BRIAN SIMMS KC However, until they are officially recognised by the Swiss courts as FTX Digital Markets’ liquidators, they are unable to gain control over the funds held in a bank account with Kiarpay AG. Together with the $143.2m seized by the US
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Top housing official rapped over ‘excessive spending’ t PG ZFBS T CVEHFU TQFOU JO TFWFO NPOUIT By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
GAYNELL ROLLE Jobeth Coleby-Davis as defendants. The allegations will draw further scrutiny, and likely reignite the controversy surrounding the Digiesoft and Adolpha Maritime Group contracts, which erupted during the 2023-2024 Budget debate after Michael Pintard,
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‘Don’t base corporate income tax decision on Shell $1.55bn’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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THE GOVERNMENT’S chief housing officer was reprimanded for “excessive spending” that allegedly exhausted 92 percent of the department’s budget within the fiscal year’s first seven months. Antoinette Thompson, the top civil servant in the then-Ministry of Transport and Housing until she was placed on “unrecorded leave” in April 2023, is alleging in legal filings that Oral Lafleur “negligently executed contracts” without her knowledge or permission despite she being the senior financial officer in the ministry until her removal. This, according to a document attached to her fixed claim, led to a meeting with Simon Wilson, the Ministry of Finance’s financial secretary, and a budget
ORAL LAFLEUR analyst from the same ministry where Mr Lafleur was purportedly “admonished” for the Department of Housing’s spending and “consequent depletion of funds”. Ms Thompson, in a February 17, 2023, minute paper, told the chief housing officer to “cease making contractual commitments” without first confirming funds are available because 92 percent of the Department’s budget allocation
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PAGE 2, Thursday, November 23, 2023
THE TRIBUNE
Data-driven insights key for sustainable success I
n the dynamic realm of business and technology, the role of data-driven decisionmaking stands out as a cornerstone for successful digital transformation. As industries adapt to the demands of the digital era, leveraging data strategically has become a crucial factor in gaining a competitive edge. Moving beyond decisions based solely on intuition, the landscape now incorporates advanced analytics, artificial intelligence (AI) and machine learning, placing data at the forefront. Companies and organisations have gained the capability to collect, process and analyse vast data sets in real-time, enabling precise and informed decision-making. The adoption of data-driven decision-making creates multiple advantages. This approach not only streamlines operations, identifies bottlenecks and optimises
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ROYE II workflows for heightened overall productivity, but also enhances the customer experience. By analysing customer behaviour, businesses can tailor products and services, fostering satisfaction and long-term loyalty. Moreover, data-driven insights serve as a foundation for strategic planning, enabling companies to stay ahead by analysing market trends and predicting future industry shifts. Proactive risk mitigation through historical data analysis becomes crucial in navigating an unpredictable business environment. However, amid the significant benefits, companies must grapple with challenges such as data security, privacy concerns and the need for skilled professionals. Successfully navigating these hurdles is crucial for fully realising the potential of data-driven decision-making. Addressing these challenges requires the pivotal
role of leadership. Strong leadership commitment becomes the linchpin for successful implementation. Leaders must cultivate a data-centric culture, invest in technology and talent, and actively champion data integration into decisionmaking processes. Looking towards the future, as we stand on the brink of the fourth Industrial Revolution, companies embracing datadriven decision-making are poised for sustainable success. This shift is not just a passing trend but a strategic imperative for those aspiring to thrive in the digital age. In conclusion, the seamless fusion of data and decision-making is not just a strategic necessity; it is the pathway to leadership in shaping the future of business and industry. Companies and orgasnisations adept at understanding, adapting and harnessing the power of data will undoubtedly lead the way. UÊ \Ê i Ì Ê , ÞiÊ Ê ÃÊ Ì iÊ V ivÊ «iÀ>Ì ÃÊ vwViÀÊ vÊ * >Ì Ê « >Ê ià } ]Ê >Ê Lië iÊ Ã vÌÜ>ÀiÊ `iÛi « i ÌÊ V «> ÞÊ Ì >ÌÊ Ã«iV > ÃiÃÊ Ê LÕà iÃÃÊ ivwV i VÞÊ > `Ê «À wÌ>L ÌÞ°Ê / À Õ} ÕÌÊ ÃÊ V>ÀiiÀÊ Ê Ã vÌÜ>ÀiÊ `iÛi « i Ì]Ê , ÞiÊ >ÃÊ ÃiÀÛi`Ê >ÃÊ V ivÊ Ã vÌÜ>ÀiÊ i } iiÀÊ v ÀÊ V «> iÃÊ Ê/ iÊ > > >ÃÊ> `Ê Ì iÊ1-°Ê ÃÊÜ À Ê >ÃÊ i`Ê ÀÊ >Ãà ÃÌi`Ê V «> iÃÊ Ê }i iÀ>Ì }Ê ÃÊ vÊ ` >ÀÃÊ Ê «>Ãà ÛiÊ ÀiÛi Õi]Ê Ü iÊ Ã>Û }Ê ÃÊ Ì À Õ} Ê VÕÃÌ Êà vÌÜ>ÀiÊ`ià } °
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Thursday, November 23, 2023, PAGE 3
Gov’t urged: ‘Stop talking nonsense’ on GBPA sale By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE GRAND Bahama Chamber of Commerce’s president yesterday said the Government has to “stop talking nonsense” over the Grand Bahama Port Authority (GBPA). James Carey told Tribune Business he has heard the Government’s talk about being “ready to sign [off on] the right buyer, or that they are willing to buy it, but is the GBPA willing to sell? Because how do you get someone to sell something that they don’t want to sell?” Philip Davis KC, the Prime Minister, said ahead of the weekly Cabinet meeting in Eight Mile Rock that the Government is willing to “step to the plate”
and acquire the GBPA itself. He added that the Government had informed the existing owners of Freeport’s quasi-governmental authority - the Hayward and St George families - is prepared to acquire the Port and its affiliated assets if no suitable private buyer emerges. Asked to confirm if the GBPA might be sold, and the Government acquire it, the Prime Minister replied: “If it’s going to be sold, it requires government approval, and we’ll approve any agreement for the sale of the Port Authority once it’s going to align with the benefits we have identified that could be had by Grand Bahamians and The Bahamas in particular. “And the Government itself is willing to step to the plate to acquire the Port, and we’ve made that known
to the families as well.” Mr Davis’ comments reaffirm what multiple sources have been telling Tribune Business for some time, namely that the Government has been speaking to both the St George and Hayward families, and their representatives, about its willingness to acquire the GBPA for months. Mr Carey, though, said: “We need to stop talking nonsense. The Government doesn’t have any money, but they can find some or they can borrow it. “I have no idea of how much the GBPA is worth, if it’s worth hundreds of millions or well into the billions. It is also interesting that the Prime Minister said that there were over $1.5bn in investments slated for Grand Bahama already, but it’s the same figure the GBPA talks about too.
“So it’s interesting to note that the Prime Minister didn’t say if these investments were something the Government procured or if it was what the GBPA had secured, so we need to understand that first.” This newspaper was told the St George estate is united in its willingness to exit, and sell, their 50 percent interest in the GBPA and its Port Group Ltd if the terms and price are right. However, the intentions of the Hayward side are understood to be less clear. The Sir Jack Hayward 1993 Discretionary Settlement, which is the trust that holds the family’s 50 percent GBPA interest, is currently under the control of Supreme Courtappointed judicial trustees. These are Paul Winder, an expatriate banker with
Lyford Cay-based Deltec Bank & Trust, and Mark Richford. It is understood that the judicial trustees have requested that one of the ‘Big Four’ accounting firms conduct a valuation of the GBPA and Port Group Ltd assets, and their worth, to determine a reasonable purchase price that could stand up to future challenge. More than one source has suggested talks with the Government have focused on a price in the $150m-$175m range for the entire concern. Other contacts, though, have scoffed at such figures and suggested it was both highly unlikely that the Hayward family will sell or that the Government would buy-out the St Georges and settle for becoming its 50/50 partner. It was also suggested that no formal offer
JAMES CAREY has been forthcoming from the Government yet. Tribune Business understands, though, that the Government plans to use its financial claims against the GBPA as leverage to squeeze the families if it is unable to achieve a smooth sale. The Davis administration has already invoked sections in the Hawksbill Creek Agreement that stipulate the GBPA must reimburse it if the cost of providing public services in Freeport exceeds the city’s tax revenues. The dispute may be put into arbitration if the two sides are unable to resolve their
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DISTRIBUTION CONTRACTS MAY FRUSTRATE COMPETITION PLAN By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A FOOD retailer yesterday said the long-standing distribution contracts that many Bahamian wholesalers have with global brands could frustrate the Government’s plans to introduce more competition. Philip Beneby, the Retail Grocers Association (RGA) president, told Tribune Business the Davis administration’s warnings that it will seek to introduce more competition into the food distribution industry in a bid to reduce prices will face obstacles from
wholesale agreements have been in place for more than 60 years. And he pointed out that there is “nothing” the Government can do to stop a foreign supplier from selecting its Bahamian distributor of choice, otherwise it could be accused of restraint of trade and unlawful interference in private commercial relationships. Mr Beneby was responding to comments by Michael Halkitis, minister for economic affairs, who recently signalled that the Government is eyeing laws, policies and regulations to facilitate greater competition in the food distribution industry as a means to combat
inflation and reduce consumer prices. “Now, we are looking at the draft competition policy and draft competition legislation that looks at market dominance, and looks at people involved in wholesale and retail,” Mr Halkitis said, “and the question is, is it actually fair and how do we impact competition in that way? We are promoting more local production because most of the food that we consume is imported, and so we’re impacted by that imported inflation.” Mr Beneby, though, said: “You have companies like Asa H Pritchard, who are the agents for Hellman’s, along with some
of the other products like Libby’s and Chef Boyarde, as well as the sole agents for Mahatma Rice. Then you have the D’Albenas Agency, who are the agents for Kraft, Johnson and Johnson, so I don’t know how he’s going to break that. “What Mr Halkitis may be saying is that it is something they are thinking of, but they would have to sit down and speak with those wholesalers, in particular, if that’s what they are looking at. A lack of consultation is part of the reason why the Government doesn’t get it right sometimes. They have to talk to the people who are the agents because they have been doing this since
before some of them were born. “Because before Mr Halkitis was born, Asa H Pritchard had the distributorship for Hellman’s and Mahatma Rice and Libby’s and much more, and the same thing with the D’Albenas agency with their products. This won’t be something that will be easy for the Government to do.” The Bahamas has long lacked an antitrust regulatory regime that promotes competition and safeguards the interests of consumers. Implementing competition laws and regulations was among the obligations this nation was supposed to fulfill when it signed on to
the Economic Partnership Agreement (EPA) with the European Union (EU) in 2009, but almost 15 years later it has thus far failed to do so. A draft competition law was upgraded under the Minnis administration, when the Government was looking at restarting the accession process for full membership in the World Trade Organisation (WTO). However, this effort fizzled and ultimately came to nothing, with competition legislation again placed ‘on the shelf’ in the Ministry of Economic Affairs.
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THE TRIBUNE
Maritime contracts signed ‘maliciously’ FROM PAGE B1 the Opposition’s leader, challenged the Government over whether the awards breached public procurement laws then in existence. Both Mr Davis and Mrs Coleby-Davis defended the Digiesoft Technologies contract award against Mr Pintard’s claims, but Ms Thompson’s legal claim asserts that there was a failure “to follow civil service procedure” in the presentation and handling of both that and the Adolpha Maritime Group deal. And documents attached to her filings revealed “that no funding is available” in the ministry’s 2022-2023 Budget for either project. Ms Thompson, as the thenpermanent secretary in the Ministry of Transport and Housing, said she only became aware of the two contracts when the Port Department requested the release of funds so that both winning bidders could “mobilise” to perform their obligations. “Some time in February 2023, shortly after the claimant’s return from vacation, a request from the acting port controller for mobilisation funding for two large contracts was placed on the claimant’s desk for her attention,” Ms Thompson’s fixed claim alleged. The mobilisation request, sent on Lieutenant Commander Berne Wright’s
behalf on February 7, 2023, requested that Adolpha Maritime Group be paid $1.192m - a sum equivalent to a four-month payment on its annual $3.576m contract - to kickstart “the maintenance and upkeep of aids to navigation throughout the territorial waters of The Bahamas”. As for Digiesoft, the sum requested was $1.678m or 50 percent “of the total cost for the Port Department Software Development Project”. The Port Department added: “This payment is required to ensure the necessary resources, materials and equipment for the initiation of this project. Grateful for your assistance in seeking release of funds to expedite these requests.” A notation to the Port Department’s memorandum, dated February 9 and seemingly written by Ms Thompson, passed the financing request on to another Ministry of Transport and Housing official “for your attention and further necessary action”. Pamela Rutherford, a financial officer and account supervisor, replied to Ms Thompson the same day, and said: “I am acknowledging receipt of documents for Adolpha Maritime Group and Digiesoft. After review of capital budget, and consultation with budget analyst (Hall), it was concluded that no funding
is available in budget for these projects.” However, Ms Thompson’s claim alleged: “Subsequent to the procurement process, the claimant, upon further inquiry discovered the fifth defendant [Ms Rolle] executed one of the agreements (DigieSoft) in January 2023 as ‘permanent secretary(acting). “Additionally, the fifth defendant appeared to have executed the DigieSoft LLC agreement in January 2023 prior to the contract being received in office and therefore pre-dated the document prior to its official receipt in the Ministry of Transport and Housing. “Both the Digiesoft LLC and the Adolpha Maritime Group contracts were executed by [Ms Rolle] as acting permanent secretary without the knowledge or authority of the claimant who was in office at the time of execution of the contract,” Ms Thompson continued. “Unaware of the executed agreements, the claimant formally referred the request for mobilisation to the Ministry of Finance. The claimant also questioned [Ms Rolle[ regarding her execution of the documents and her authority to execute them. The fifth defendant’s response was dismissive and unconcerned.” The February 9, 2023, minute paper from Ms Rutherford has two
hand-written notations on it. One appears to be from Ms Thompson to Ms Rolle, saying: “You would wish to be aware, Kindly advise accordingly.” The second, which appears to be a reply from Ms Rolle to Ms Thompson dated one day later on February 10, 2023, is harder to decipher but seems to say that the financing for both the DigieSoft and Adolpha Maritime Group contracts “should have been requested as per the ministry’s capital allocation as previously requested of the” Ministry of Finance. Still, Ms Thompson’s fixed claim alleged of Ms Rolle: “The fifth defendant negligently, unlawfully and maliciously executed the DigieSoft LLC and Adolpha Maritime Group contracts as the principal finance officer in the Ministry of Transport and Housing, which gave the impression that the claimant was complicit in having the fifth defendant incorrectly and negligently executing contracts on behalf of the Ministry of Transport and Housing that, if in fact were not properly vetted, would make the Government liable to breach of contract and suffer significant and avoidable loss.” Public service sources, speaking on condition of anonymity, described the chain of events detailed by Ms Thompson’s legal filings as highly irregular if accurate. “Only the permanent secretary, the principal accounting officer, can sign off,” one said. “The minister cannot sign, and nobody junior can sign. Only the head of department.” Ms Thompson is alleging negligence, including “failing to follow civil service procedure” in the presentation of the DigieSoft Technologies and Adolpha Maritime Group contracts, and effectively cutting her out of the process and “usurping [her] authority”. Tribune Business previously reported that Mr Davis, in concluding the 2023-2024 Budget debate, asserted that proper processes were followed in
awarding the $3.355m contract to DigieSoft Technologies even though the Government’s own procurement site listed another company as the winner. The Government’s procurement portal lists Infrasoft Technologies as the bid winner but, when the ‘view award’ link is clicked, the pop-up states: “The Ministry of Transport and Housing has awarded the contract for the creation of the online portal for the Port Department to DigieSoft Technologies.” This was picked up by Mr Pintard, who blasted: “We attempted to research DigieSoft Technologies, the company that supposedly won the bid, but we found no company website, LinkedIn page or any information whatsoever about its track record in technology projects. “These circumstances raise numerous questions that the Government must address. Why was the contract not awarded to the winning bidder? A project of this magnitude would have required scrutiny by the Tenders Board. What decision did the Tenders Board reach? Did DigieSoft submit a bid during the formal bidding process? Why did the Government award a substantial $3m contract to a company with no apparent track record in delivering such a solution? “How did the Government determine the capabilities of this seemingly new company to handle a project of this size and scope? How many technical staff does DigieSoft have? How many similar projects have the company undertaken? Is DigieSoft merely outsourcing the work to another firm, thus providing no real value to the initiative?” Mr Davis described Mr Pintard’s assertions as “incorrect”. He added that the Infrasoft bid was never approved by Cabinet and, instead, DigieSoft went through the necessary vetting and approval by his Cabinet. “We are happy and proud of the young Bahamian
men behind DigieSoft who are creative, talented and extremely bright. It is high time young Bahamians were given equal opportunity to compete for Government contracts,” he said, without identifying DigieSoft’s principals. “These young men have educated themselves, returned home and are making a positive contribution to the Bahamas. They have earned whatever reward they receive, and deserve our support and respect.” However, Kwasi Thompson, the Opposition’s finance spokesman, subsequently challenged why the Government was committing $3.5m of taxpayer monies to the DigieSoft contract when the private sector - via the Association of Bahamas Marinas (ABM) - had provided exactly the same online fee collection solution via SeaZ Pass at no cost to the Public Treasury. The Government and Ministry of Finance ordered that the SeaZ Pass portal close in October 2022 amid a dispute over whether its digital payments provider, Omni Financial Services, had passed on all funds due to the Public Treasury. This was vehemently denied and disputed by Omni. Mr Thompson argued that if the Government had concerns over whether it was receiving the fees due, it could simply have ordered the ABM to drop Omni and switch to another digital payments provider to perform the same function. And Mr Pintard, his party leader, also voiced concern over the $3.57m harbour navigational aids contract awarded to Adolpha Maritime Group on the basis that no competitive bidding process could be found on the Government’s procurement portal. Adolpha’s website lists its address as Mackey Street with a contact number that appears to be a cell phone. Its founder is named as Kyle Larune Russell.
Gov’t urged: ‘Stop talking nonsense’ on GBPA sale FROM PAGE B3 differences, with Freeport’s quasi-governmental authority arguing that the Government is incorrectly interpreting this clause to cover multiple public
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services not contemplated by the original agreement. However, it is thought the Government plans to repeatedly come back to this issue in the belief the families will be unable to pay what is owed. Mr Davis, when asked yesterday whether the GBPA has paid what the Government claims is due and owing to Bahamian taxpayers, replied: “Well, I’m waiting to hear what they have to say. This is a matter we’ve discussed and they ought to have gotten back to us by the end of October.”
However, he blamed the West Grand Bahama and Bimini by-election, which will be held today, and other events such as the upcoming COP28 climate change conference, for dominating the agenda. “Unfortunately, as you know, things have happened so I’ve not been able to pay any particular attention to it, but after this event tomorrow and early next week we’ll be back at the table to see where they are and what they’re thinking.”
THE TRIBUNE
Thursday, November 23, 2023, PAGE 5
ANNUAL INFLATION RATE UP SLIGHTLY IN AUGUST THE year-long decline in The Bahamas’ annual inflation rate came to a halt with the slightest of increases for August 2023 as food and beverage prices rose by 5 percent. The Bahamas National Statistical Institute, yesterday unveiling consumer price index and inflation date for that month, revealed that the trailing 12-month inflation rate increased to 2.3 percent for
August compared to 2.2 percent for July 2023. This marked the first increase in the annual inflation rate since September 2022, when it rose to 6.5 percent compared to 6.3 percent in August that year. Ever since the former month, the annual rate of price increases was on a downward trend until August 2023. “On a year-over-year basis, the consumer price index rose a little over
2 percent over the same period last year in 2022,” the Bahamas National Statistical Institute said. “The major categories that contributed to this rise included alcoholic beverages, tobacco and narcotics at 10.7 percent, furnishing and household equipment at 8.9 percent, health 8 percent and food and nonalcoholic beverages at 5 percent. “Diesel prices along with gasoline continue to
register a decline of 12.2 percent and 23.8 percent, respectively, compared to this period in 2022. Meanwhile, compared to July 2023, both gasoline and diesel prices saw increases. Gasoline increased by 3.5 percent, and diesel an increase of 2.4 percent for the month of August 2023.” Assessing inflation on a month-to-month basis, the Bahamas National Statistical Institute said: “The monthly inflation rate in
The Bahamas, which represents the overall change in prices for 2023, increased by 0.2 percent when compared to July 2023. “This increase is reflected in the overall price of items purchased by the average consumer during this period. This August 2023 increase followed a 0.6 percent increase between the months of June 2023 and July 2023. “Meanwhile, on a monthto-month, the categories of
housing, electricity, water and gas, along with furnishings and household equipment, saw increases of 0.8 percent and 0.5 percent, respectively. Meanwhile, health, clothing and footwear saw declines of 0.9 percent and 0.4 percent, respectively, for the month of August when compared to the July 2023.”
Farquharson replaced as Gov’ts labour chief ATTORNEY Howard Thompson has replaced Robert Farquharson as the Government’s director of labour with the latter taking on a new role as executive manager of special projects. The Ministry of Labour and the Public Service, in a statement, described Mr Thompson as a seasoned attorney who has worked in practice areas such as labour and employment law; dispute resolution; and civil litigation. He has worked at law firms such as McKinney, Bancroft and Hughes, while serving as a partner at Baycourt Chambers as well as Maynard and Thompson. More recently, Mr Thompson worked as a supervisor at the Office
of the Judiciary Research Council and served as a non-executive director at the Bank of The Bahamas. Mr Farquharson, former head of the Bahamas Communications and Public Officers Union (BCPOU), previously served for a number of years as a labour consultant with responsibilities related to the National Tripartite Council and Special Projects Unit, as well as chief technical officer with responsibility for industrial relations and employeremployee relations. He has served as the Department of Labour’s director since September 27, 2021. Prior to working in the public service, he was an associate at Anthony Thompson & Company and
Lord Ellor & Company, where he led the industrial relations units. The leadership change was announced as the Department of Labour prepares to roll out several initiatives, beginning with the Notice of Vacancy Policy and Enforcement Unit, which it said will be launched within the next few months. This unit will enforce the law related to the hiring of non-Bahamians, and the identification and training of Bahamian understudies to occupy roles held by non-Bahamians. The Ministry of Labour and Public Service is also in the midst of implementing the International Labour Organisation’s
(ILO) Decent Work Country Programme. A major component of this initiative is the proposed National Apprenticeship Programme, which will focus on on-the-job skills development for hundreds of participants. Pia Glover-Rolle, minister of labour and the public service, said the leadership change is necessary to enhance executive capacity as her Ministry pursues its objectives. “Howard Thompson brings such great experience to the role. He has a wealth of knowledge as a labour and employment law specialist who has also led negotiations and resolved legal disputes,” she said.
“He has earned a professional reputation as a top performer and a highly productive, hands-on leader. As you can imagine, these are all traits that make him an ideal director for the Department of Labour.” She added Mr Farquharson’s leadership and focus were required to ensure the successful implementation of key initiatives at the Department. “Mr Farquharson is highly experienced and has deep institutional knowledge that made him the ideal candidate to work on special projects that we are launching, beginning with the ILO Decent Work Country Programme and the
National Apprenticeship Programme,” Mrs GloverRolle said. “These initiatives are of critical importance, so the decision was made to transition him away from general duties so that he can focus his strengths as a leader on these key projects that he is uniquely positioned to lead in his new role as an executive manager in the Department.” The handover process will be completed in the coming days as Mr Thompson and Mr Farquharson settle into new roles that ministry officials believe will maximise their strengths and position them for sustained success.
FUND TO COMPENSATE DEVELOPING NATIONS FOR CLIMATE CHANGE IS UNFINISHED BUSINESS AT COP28 By GAURAV SAINI AND SIBI ARASU Associated Press SUNIL Kumar watched helplessly in July as his home and 14 others were washed away by intense monsoon rains lashing the Indian Himalayas. "All my life's work vanished in an instant. Starting over feels impossible, especially with my three children relying on me," said Kumar, a waste collector in the village of Bhiuli, in the mountainous state of Himachal Pradesh. This year's monsoon season in India was devastating, with local governments estimating 428 deaths and more than $1.42 billion in property damage in the region. But India was just one of many developing nations to suffer from extreme weather made worse or more likely by climate change, caused largely by greenhouse gas emissions
that result from the burning of fossil fuels. Tropical storm Daniel hammered Libya with massive flooding in September, and Cyclone Freddy battered several African nations early in the year. Activists say all three disasters show how poorer nations, which historically have contributed less to climate change because they have emitted fewer planet-warming gases than developed countries, are often hit hardest by the impacts of global warming. Developing nations had long sought to address the problem, and finally broke through with an agreement at last year's annual United Nations climate talks, known as COP27, to create what's known as a loss and damage fund. But many details were left unresolved, and dozens of contentious meetings were held in the year since to negotiate things like who would
contribute to it, how large it would be, who would administer it, and more. A draft agreement was finally reached earlier this month, just a few weeks before this year's COP28 talks open Nov. 30 in Dubai. The agreement will be up for final approval at the climate talks, and dissatisfaction from both wealthy and developing nations could block approval or require additional negotiations. "For us, it's a matter of justice," said New Delhibased Harjeet Singh, head of global political strategy at Climate Action Network International, a group that spent the past decade lobbying to compensate those nations. "Poor communities in developing countries are losing their farms, homes, and incomes due to a crisis caused by developed countries and corporations." A recent report by the United Nations estimates that up to $387 billion will
be needed annually if developing countries are to adapt to climate-driven changes. Even if details of a loss and damage fund are worked out, some are skeptical that it will raise anything close to that amount. A Green Climate Fund that was first proposed at the 2009 climate talks in Copenhagen, and began raising money in 2014, hasn't come close to its goal of $100 billion annually.
Chandra Bhushan, head of New Delhi-based climate think tank International Forum for Environment, Sustainability and Technology, said he doesn't expect countries to contribute more than a few billion dollars to the loss and damage fund. "Developing countries should be ready to manage these events independently, as seen with COVID-19.
They can't always rely on others," Bhushan said. The draft agreement calls for the World Bank to temporarily host the fund for the next four years. It lays out basic goals for the fund, including its planned launch in 2024, and specifies how it will be administered and who will oversee it, with a requirement that developing countries get a seat on the board.
PAGE 6, Thursday, November 23, 2023
THE TRIBUNE
Top housing official rapped over ‘excessive spending’ FROM PAGE B1 for the fiscal year 20222023 had been exhausted with some five months still remaining. “Some time in or around mid-February 2023, a matter was brought to the claimant’s attention involving the chief housing officer in the Ministry of Housing,” Ms Thompson, who was the ministry’s permanent secretary, alleged. “The claimant, in her capacity as principal financial officer of the Ministry of Transport and Housing, had cause to question the excessive spending and subsequent depletion of that Department’s budget by the chief housing officer. The chief housing officer was discovered to have negligently executed contracts without the knowledge and authorisation of the claimant. “The claimant, after consultation with the financial secretary, wrote to the chief housing officer directing him
to ‘refer all matters within the remit of the permanent secretary’ to the claimant’s office,” Ms Thompson added, which was required by the Public Finance Act. “Some time in or around late March 2023, after meeting with the financial secretary, the chief housing officer was formally directed to show authorisation for the executing of multiple contracts and expenses for which the Government was liable.” Ms Thompson, in the February 17, 2023, minute paper addressed to Mr Lafleur, wrote: “During the aforementioned meeting with financial secretary Wilson and the Ministry of Finance’s budget analyst, you were admonished regarding spending and the consequent depletion of funds in the Department of Housing budget to the point where it was suggested a financial analyst was needed to help manage the fund.” This was in addition to the recent hiring of a financial
officer, and Ms Thompson continued: “However, to my point, the admonition was made for better management of the Department’s funds and to cease making contractual commitments for projects without first confirming the availability of funds to facilitate the same. “The budget analysts advised you that funding was approximately 92 percent depleted and consequently there should be better management of the fund. You were also advised by financial secretary Wilson to seek to ensure that there is a better return on investment so that the Department’s programmes would result in funds being available for payments.” Ms Thompson’s paper also urged the chief housing officer “to create a situation where government is not only funding the housing projects and incidentals but also having to continually pay for infrastructural works... Financial secretary
Wilson alluded to the way the Department of Housing functioned in the 1980s utilising the return on investment for the sale of houses”. The then-permanent secretary also urged Mr Lafleur to ensure that contracts and documents contained all the necessary signatures before being presented to her for signing. Ms Thompson’s fixed claim also revealed this was not the only matter she had to address with the Department of Housing. “Some time in or around March 2023, the claimant had cause to draft a memorandum to the acting chief housing officer in the Department of Housing describing the conflict of interest of a postman in the General Post Office,” Ms Thompson alleged. “In breach of general orders 900 and 913, the postman had been awarded a few contracts and those contracts were referred to the claimant for signing. Recognising the conflict of interest, the
Liquidators control 30% of FTX Bahamas cash FROM PAGE B1 Justice Department as restitution for the collapsed crypto exchange’s victims, some $178.9m or 70 percent of the Bahamian subsidiary’s cash assets remain outside the trio’s reach. “Since the last report, the liquidators have identified further cash held in accounts in the name of FTX Digital Markets with Kiarpay AG,” Mr Simms and the PwC duo revealed. “These funds have been secured to the control of the liquidators on behalf of FTX Digital Markets. “The liquidators were initially granted control over the bank accounts held in FTX Digital Markets’ name with Kiarpay AG. However, Kiarpay AG provided notice that they require evidence of court recognition in Switzerland to enable the liquidators to operate the account. On July 15, 2023, the liquidators instructed Swiss counsel who have applied to obtain recognition.
“Access to the funds is restricted pending the determination of an application for formal recognition of FTX Digital Markets’ liquidation proceedings in The Bahamas. The liquidators continue to investigate the existence of further funds or other assets, and to examine whether funds held by other parties, including affiliates and related parties, belong to FTX Digital Markets.” The $35.7m held by Kiarpay represents a valuable source of fiat cash recovery for FTX Digital Markets creditors, investors and clients, as well as potential financing for the work of the liquidation trio. Thus far, Mr Simms and his PwC colleagues have gained control of just $76.3m of the Bahamian subsidiary’s identified $255.2m in cash assets. The recoveries thus far include $31.5m that was held by Fidelity Bank (Bahamas); $300,000 with Deltec Bank & Trust; $26.7m with Equity Bank; and $18.1m
with BCB Bank. However, some $178.9m presently remains outside the liquidators’ reach, with the bulk of that sum representing the monies seized by the US Justice Department around year-end 2022. The Bahamian liquidators’ third report was almost as notable for what it did not say as its actual contents. Previous reports confirmed the trio were negotiating with the Department of Justice for the $143.2m’s return, and were even contemplating legal action against the US federal government institution if talks did not result in a fruitful outcome. The only mention in the latest report, dated November 10, was that the Supreme Court authorised the liquidators to continue talking to the US Justice Department “in relation to the funds in bank accounts in the US in the company’s name that have been seized.. and, if so advised, issuing proceedings in the US against the
Department of Justice for the release of said funds”. There was also no reference to any plans to pursue the estimated 1,500 “Bahamian” clients who received preferential treatment when Sam Bankman-Fried, the FTX founder recently found guilty of multiple fraudrelated crimes by a New York jury, allowed them to withdraw a combined $100m in assets in violation of Bahamian and US court asset freezes. The $86.2m in cash balances inherited by the Bahamian liquidators, when they took control of FTX Digital Markets on November 14, 2022, have since reduced by 45.5 percent or $39.2m to $47m at endOctober 2023. Most of the reduction is attributed to the combined $34.5m paid to the liquidators ($22.2m) and their advisers ($12.3m) as approved by the Supreme Court to cover their costs. Other costs have been incurred in safeguarding assets belonging to FTX Digital Markets and its creditors, which has required the payment of insurance,
claimant addressed the matter with the chief housing officer.” Housing was split from Transport in the Government’s latest reshuffle, and is now in Keith Bell’s ministerial portfolio. Ms Thompson’s action is seeking damages being placed on “leave” from April 2023 with no details provided on this or when she is to return to work, leaving her in “an uncertain state of limbo”. Asserting that her reputation has been “stained” by “erroneous” comments from Fred Mitchell, then-minister of the public service, and on PLP and governmentlinked social media blogs, she is arguing that the Davis administration has since April 2023 “effectively punished and disciplined the claimant without justification and the opportunity to address her accusers”. Named as defendants are Prime Minister Philip Davis KC; Jobeth Coleby-Davis, now-minister of transport
and energy; Nicole Campbell in her capacity as Cabinet secretary; Gina Thompson, permanent secretary in the Ministry of Public Service; Gaynell Rolle, under-secretary in the Ministry of Transport and Housing; and Dr Donna Miller, who has replaced Ms Thompson as acting permanent secretary. The fixed claim portrays a situation where Ms Thompson’s relationship with Mrs Coleby-Davis, as her minister, and Ms Rolle and other officials in her ministry and its various departments appeared to have broken down such that she was being excluded from key meetings and allegedly squeezed out of her post. “The actions of the defendants have created an untenable environment in the public service should the claimant return,” Ms Thompson alleged.
maintenance and security fees. The Bahamian liquidators have also placed the four One Cable Beach properties into the complex’s rental pool as a means to recoup holding costs. Talks between the trio and John Ray, the FTX US chief heading 134 entities in Chapter 11 bankruptcy protection, on developing an “overall strategy to preserve value and ultimately maximise” creditor recoveries through selling the crypto exchange’s 41-strong Bahamian property portfolio - purchased for a collective $256m - have resumed. “The liquidators held meetings with the debtors during the last three months to develop the sales strategy further and, in the interim, have continued to discuss options with brokers and take actions to maintain the status quo with respect to the properties,” the third Supreme Court report said. “This includes actions to preserve and protect them as relevant by way of insurance renewals, repairs and liaising with One Cable Beach to place four properties into the rental pool to cover ongoing holding costs. These costs have been met at the expenses of the FTX Digital
Markets estate, in line with the pre-bankruptcy position on the basis that FTX Digital Markets will be indemnified from the sale proceeds.” The Bahamian liquidators have warned FTX clients, though, that covering the winding-up costs by using a yet-to-be determined proportion of their assets held in a trust, fiduciary or escrow capacity has been approved by the Supreme Court. And the trio were also, on June 22, 2023, given permission by the Supreme Court to reimburse the Securities Commission for some $3.776m in legal fees, expenses and other disbursements incurred as a result of FTX’s collapse. These costs related to the regulator’s US legal fees plus expenses related to the storage, and safeguarding, of digital assets transferred to its care from FTX Digital Markets. The monies were paid using $10m held with Fidelity Bank (Bahamas) as a “restricted amount” related to FTX’s licence from the Securities Commission.
THE TRIBUNE
Thursday, November 23, 2023, PAGE 7
What does Sam Altman’s firing — and quick reinstatement — mean for the future of AI? Iannopollo, principal analyst at Forrester. The lesson, Iannopollo said, is that companies can't alone deliver the level of safety and trust in AI that society needs. "Rules and guardrails, designed with companies and enforced by regulators with rigor, are crucial if we are to benefit from AI," he added.
NEW YORK Associated Press IT'S BEEN quite a week for ChatGPT-maker OpenAI — and co-founder Sam Altman. Altman, who helped start OpenAI as a nonprofit research lab back in 2015, was removed as CEO Friday in a sudden and mostly unexplained exit that stunned the industry. And while his chief executive title was swiftly reinstated just days later, a lot of questions are still up in the air. If you're just catching up on the OpenAI saga and what's at stake for the artificial intelligence space as a whole, you've come to the right place. Here's a rundown of what you need to know. WHO IS SAM ALTMAN AND HOW DID HE RISE TO FAME? Altman is co-founder of OpenAI, the San Francisco-based company behind ChatGPT (yes, the chatbot that's seemingly everywhere today — from schools to health care ). The explosion of ChatGPT since its arrival one year ago propelled Altman into the spotlight of the rapid commercialization of generative AI — which can produce novel imagery, passages of text and other media. And as he became Silicon Valley's most sought-after voice on the promise and potential dangers of this technology, Altman helped transform OpenAI into a worldrenowned startup. But his position at OpenAI hit some rocky turns in a whirlwind that was the past week. Altman was fired as CEO Friday — and days later, he was back on the job with a new board of directors. Within that time, Microsoft, which has invested billions of dollars in OpenAI and has rights to its existing technology, helped drive Altman's return, quickly hiring him as well as another OpenAI co-founder and former president, Greg Brockman, who quit in protest after the CEO's ousting. Meanwhile,
WHAT IS GENERATIVE AI? HOW IS IT BEING REGULATED?
OPENAI CEO Sam Altman participates in a discussion during the Asia-Pacific Economic Cooperation (APEC) CEO Summit, Nov. 16, 2023, in San Francisco. Altman, the ousted leader of ChatGPT-maker OpenAI, is returning to the company that fired him late last week, the latest in a saga that has shocked the artificial intelligence industry. San Francisco-based OpenAI said in a statement late Tuesday, Nov. 21: “We have reached an agreement in principle for Sam Altman to return to OpenAI as CEO with a new initial board of Bret Taylor (Chair), Larry Summers, and Adam D’Angelo.” Photo:Eric Risberg /AP hundreds of OpenAI employees threatened to resign. Both Altman and Brockman celebrated their returns to the company in posts on X, the platform formerly known as Twitter, early Wednesday. WHY DOES HIS REMOVAL — AND REINSTATEMENT — MATTER? There's a lot that remains unknown about Altman's initial ousting. Friday's announcement said he was "not consistently candid in his communications" with the then-board of directors, which refused to provide more specific details. Regardless, the news sent shockwaves throughout the AI world — and, because OpenAI and Altman are such leading players in this space, may raise trust concerns around a burgeoning technology that many people still have questions about. "The OpenAI episode shows how fragile the AI ecosystem is right now, including addressing AI's risks," said Johann Laux, an expert at the Oxford Internet Institute focusing on
human oversight of artificial intelligence. The turmoil also accentuated the differences between Altman and members of the company's previous board, who have expressed various views on the safety risks posed by AI as the technology advances. Multiple experts add that this drama highlights how it should be governments — and not big tech companies — that should be calling the shots on AI regulation, particularly for fast-evolving technologies like generative AI. "The events of the last few days have not only jeopardized OpenAI's attempt to introduce more ethical corporate governance in the management of their company, but it also shows that corporate governance alone, even when
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well-intended, can easily end up cannibalized by other corporate's dynamics and interests," said Enza
Unlike traditional AI, which processes data and completes tasks using predetermined rules, generative AI (including chatbots like ChatGPT) can create something new. Tech companies are still leading the show when it comes to governing AI and its risks, while governments around the world work to catch up. In the European Union, negotiators are putting the final touches on what's expected to be the world's first comprehensive AI regulations. But they've reportedly been bogged down over whether and
how to include the most contentious and revolutionary AI products, the commercialized largelanguage models that underpin generative AI systems including ChatGPT. Chatbots were barely mentioned when Brussels first laid out its initial draft legislation in 2021, which focused on AI with specific uses. But officials have been racing to figure out how to incorporate these systems, also known as foundation models, into the final version. Meanwhile, in the U.S., President Joe Biden signed an ambitious executive order last month seeking to balance the needs of cutting-edge technology companies with national security and consumer rights. The order — which will likely need to be augmented by congressional action — is an initial step that is meant to ensure that AI is trustworthy and helpful, rather than deceptive and destructive. It seeks to steer how AI is developed so that companies can profit without putting public safety in jeopardy.
NOTICE IN THE ESTATE OF JOAN CAROL LORAINE GRAY late of Coral Lakes, Coral Harbour in the Western District of the Island of New Providence, The Bahamas, deceased. Notice is hereby given that all persons having any claim or demands against the above named Estate are required to send their names, addresses and particulars of said demands or claims duly certified in writing to the undersigned on or before the 27th day of December, A.D., 2023, and if required, to prove such debts or claims or in default, be excluded from any distribution having regard only to the proved debts or claims of which the Executors shall then have notice. And Notice is hereby given that all persons indebted to the said Estate are requested to make full settlement on or before the abovementioned date. PYFROM FARRINGTON CHAMBERS Attorney for the Executors Braxon House #23 Buen Retiro Road Off Shirley Street Nassau, Bahamas Phone: (242) 323-3228
PAGE 10, Thursday, November 23, 2023
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‘Don’t base corporate income tax decision on Shell $1.55bn’ FROM PAGE B1 against the possibility that implementing corporate income tax would drive international business and associated jobs away from The Bahamas. The G-20/OECD minimum 15 percent global corporate tax initiative, if ever implemented, could act as a barrier to corporate flight given that - in theory - there would be no hiding from the ‘one size fits all’ worldwide taxation this seeks to impose. The Bahamas is among 140 countries that have already signed up to the 15 percent minimum initiative, hence this year’s corporate income tax consultation. As to whether the mammoth untaxed profits earned by Shell justify The Bahamas taking a deeper look at corporate income tax regardless of global pressures, Mr Edwards said this nation cannot justify changing its system on the basis of
figures generated by just a few entities. “It’s an interesting question to pose,” he told Tribune Business of corporate income tax. “I think that what one has to be mindful of is the fact that The Bahamas prides itself on, and creates a value proposition, by having no corporate income tax or low taxation in many regards compared to other jurisdictions. “The fact an organisation would be here without the expectation of paying income tax or corporate income tax is to be expected. Whether or not that strengthens the argument [for corporate income tax], I don’t think one should want to do so on the basis of just one large entity. It should be on the broader needs and broader strategic thrust of the country, and where we want to go exactly with our tax infrastructure.” Mr Edwards argued that basing tax reform decisions on just the revenues and profits generated by
BRANVILLE MCCARTNEY large multinational entities such as Shell could produce a skewed outcome that ignores potential “downsides” for smaller economic operators. “It’s not a decision to be made on the narrow performance of one or two entities,” he said. “It’s certainly a ‘pro and con’ analysis which needs to take place because movement in one direction could change the value proposition, and the question is will the changed circumstance benefit the country more than what currently exists? “All factors need to be taken into consideration. There’s a need for more government revenue and providing services and the requirement to expand infrastructure and so forth. On the flip side, if there’s such a change in the tax base will this result in companies moving away from The Bahamas or reducing their operations in The Bahamas?
NOTICE IN THE ESTATE OF LEROY ROLLE late of the Settlement of Black Point of the Island of Exuma of the Islands of New Providence, The Bahamas, deceased. Notice is hereby given that all persons having any claim or demands against the above named Estate are required to send their names, addresses and particulars of said demands or claims duly certified in writing to the undersigned on or before the 27th day of December, A.D., 2023, and if required, to prove such debts or claims or in default, be excluded from any distribution having regard only to the proved debts or claims of which the Executor shall then have notice. And Notice is hereby given that all persons indebted to the said Estate are requested to make full settlement on or before the abovementioned date. PYFROM FARRINGTON CHAMBERS Attorney for the Executor Braxon House #23 Buen Retiro Road Off Shirley Street Nassau, Bahamas Phone: (242) 323-3228
HUBERT EDWARDS
Will that result in a loss of jobs? “We have to look at this in a holistic manner. If you tip on one side, you have to pay the piper on the other side. We expect policymakers to be very deliberate, intentional and balanced in that regard.” Shell, unveiling its 2022 global “tax contribution” report, revealed that Bahamas-based Shell Western Supply and Trading earned pre-tax profits equal to 12.4 percent of the country’s $12.556bn total public sector but none of this reached the Public Treasury in the absence of a corporate income tax. Shell Western, which employs 37 persons in The Bahamas, specialises in the buying and selling (trading) of crude oil sourced from Africa and Latin America. It generated total revenues worth $28.29bn from these activities last year - a sum that is more than double, or twice as large, as The Bahamas’ total public sector debt. Combined revenues produced by Shell’s Bahamian
subsidiary increased by almost $7bn or 31 percent year-over-year, while profits nearly tripled from the $571.441m achieved in 2021. Yet the energy giant’s report made clear that none of its millions/billions were taxed in The Bahamas and, as an International Business Company (IBC), it only paid a very modest amount of taxes and fees locally. “Shell has been present in The Bahamas since 2002. As of 2018, Shell’s principal business in the Bahamas is Shell Western Supply and Trading (SWST). SWST sources crude oil from West Africa and Latin America, and trades globally,” the Shell report said. “The Bahamas does not impose corporate income tax on international business companies (IBCs) operating in the country. However, international business companies pay indirect taxes and fees in The Bahamas. The increase in profit before tax is the result of higher crude oil prices.” Shell’s Bahamian subsidiary had $2.409bn in
accumulated earnings on its books at year-end 2022, and $868.316m in “tangible assets”, all built by a company with just $100,000 in stated capital. A corporate income tax would ensure The Bahamas complies and fulfills its obligations as one of 140 countries that have signed on to the G-20/Organisation for Economic Co-Operation and Development (OECD) drive for a minimum 15 percent global corporate tax. In the first instance, this applies only to corporate groups and their subsidiaries that have a minimum annual turnover in excess of 750m euros. The ‘green paper’ on “corporate income tax strategies for The Bahamas” revealed that none of the four corporate income tax options being considered will have a positive impact on Bahamian economic growth, employment, foreign and domestic investment, with the fall-out negative in all bar two instances. The Davis administration, following studies by the Deloitte & Touche accounting firm, said it has to consider “the trade-off between raising government revenue at the expense of economic activity” in all four scenarios as it mulls historical changes that will potentially eliminate Business Licence fees for most companies and replace them with a corporate income tax. Several financial services executives have suggested The Bahamas implement a lower corporate income tax rate than the 15 percent in a bid to gain a competitive advantage. However, the G-20/OECD initiative would allow a company’s home jurisdiction to impose a so-called ‘top up’ tax that would take the rate levied on repatriated Bahamian profits to 15 percent. This nation would thus miss out on the difference.
THE TRIBUNE
Thursday, November 23, 2023, PAGE 11
U.S. EGG PRODUCERS CONSPIRED TO FIX PRICES FROM 2004 TO 2008, A FEDERAL JURY RULED By ISABELLA VOLMERT Associated Press AN Illinois jury ruled this week that several major egg producers conspired to limit the U.S.'s supply of eggs in order to raise prices in a case stemming from a federal lawsuit originally filed 12 years ago. Several large food manufacturing companies including Kraft Foods Global, Inc. and The Kellogg Company alleged in the lawsuit originally filed in 2011 that producers used various means to limit the U.S. domestic supply of eggs to increase the prices of eggs and egg products during the 2000s. The time frame of the conspiracy was an issue throughout the case; jurors ultimately determined damages occurred between 2004-2008. A jury unanimously delivered its verdict Tuesday in the Northern District of Illinois and damages will be decided in a trial scheduled for next week. The suppliers include the family company of an Indiana egg farmer running for the U.S. Senate in the state. Attorneys for the four egg suppliers named in the lawsuit did not immediately return phone messages on Wednesday. Court documents show the defendants denied the claims. The jury found that the egg suppliers exported eggs to reduce the overall supply in the domestic market, as well as limiting the number of chickens through means including cage space, early slaughter and flock reduction, court documents say. "We are incredibly pleased by the jury's decision to hold egg producers Cal-Maine Foods and Rose Acre Farms accountable alongside United Egg Producers and United States Egg Marketers for conspiring to inflate the price of eggs," Brandon Fox, an attorney representing the
food manufacturers, said in a statement. "For the first time, the defendants have been held liable for their antitrust violations. We are now going to turn our attention to the damages phase." Court documents say the jury found the food manufacturers suffered injury in the timeframe of 2004 to 2008. Jurors were specifically told not to consider more recent egg pricing during their deliberations. Other food manufacturers joining as plaintiffs in the lawsuit against the egg producers are General Mills, Inc. and Nestle USA, Inc. The jury found the egg suppliers who participated in the conspiracy were CalMaine Foods, Inc., United Egg Producers, Inc., United States Egg Marketers, Inc. and Rose Acre Farms, Inc., a southern Indiana-based company previously chaired by John Rust. Rust, who is running for Indiana's U.S. Senate seat in 2024, declined to comment Wednesday citing the ongoing litigation. Rose Acre Farms identifies itself as the second-largest egg producer in the U.S. Rust is currently suing Indiana's Secretary of State over a contested state law that could prevent his name from getting on the primary ballot as a Republican. According to the law, a candidate must vote in two primaries with the party they are affiliated with or the county party chair must approve their candidacy. Rust has argued the law is unconstitutional and vague. The egg farmer faces an uphill battle for the GOP nomination: opponent U.S. Rep. Jim Banks has received the endorsement of the Indiana Republican Party and former President Donald Trump. The seat is currently held by Republican Mike Braun, who is instead running for governor next year.
PUBLIC NOTICE This is to inform the public that B.K.B Enterprises Machine Shop located on #96 Miami Street will be closing permenantly on Friday, November 24th, 2023 Signed BKB Enterprises Management
CHICKENS stand in their cage at the Rose Acre Farms, Monday, Nov. 16, 2009, near Stuart, Iowa. An Illinois jury ruled Tuesday, Nov. 21, 2023, that several major egg producers, including Rose Acre Farms, conspired to limit the U.S.’s supply of eggs in order to raise prices in a lawsuit first filed 12 years ago. Photo:Charlie Neibergall/AP "Today's verdict proves John Rust isn't just a conman pretending to be a Republican, he is a crook who exploits working class Hoosiers across Indiana for his own financial gain," Banks said in a written statement. "While Indiana families struggle to put food on the table, he's making it even harder to do that."
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STOCK MARKET TODAY
Wall Street ends higher ahead of Thanksgiving holiday in the US By DAMIAN J. TROISE AND ALEX VEIGA AP Business Writers STOCKS closed broadly higher on Wall Street Wednesday, keeping the market on pace for a fourth straight winning week. The S&P 500 rose 0.4%, with nearly all of its sectors notching gains on the final day of trading ahead of the Thanksgiving holiday in the U.S. The Dow Jones Industrial Average and the Nasdaq composite each rose 0.5%. All told, the S&P 500 added 18.43 points to 4,556.62. The Dow rose 184.74 points to 35,273.03, and the Nasdaq gained 65.88 points to 14,265.86. Technology and communications services stocks accounted for a big share of the gains for the S&P 500. Microsoft rose 1.3% and Google parent Alphabet added 1.1%. Energy stocks were the only laggard, slipping 0.1%. The price of U.S. crude oil fell 0.9% after OPEC said it would postpone its latest conference to next week. The oil cartel has been maintaining a tight market for crude oil with production cuts. The drop in oil prices weighed on energy
A BIKE approaches the New York Stock Exchange on Tuesday, Nov. 21, 2023 in New York. World shares were mixed on Wednesday in cautious trading after Wall Street’s rally ran out of momentum. Photo:Peter Morgan/AP companies. Energy giant Exxon Mobil fell 0.4% and oilfield services company Halliburton dropped 0.8%. The pullback in oil prices helped boost shares in airlines and other companies that stand to benefit from lower fuel costs. United Airlines rose 0.9% and American Airlines gained 1.5%. Cruise line operator Carnival rose 1.9%. Nvidia fell 2.5%, despite handily beating analysts' profit and revenue forecasts. The company continues to face pressure because of export
restrictions to China. Nvidia's stock has more than tripled this year amid booming demand for its chips in artificial intelligence applications. Treasury yields were relatively steady. The yield on the 10-year Treasury rose to 4.41% from 4.40% late Tuesday. The yield on the 2-year Treasury slipped to 4.88% from 4.89% late Tuesday. Stocks in Asia and Europe ended mostly mixed. Trading tapered off ahead of holidays in the U.S. and Japan, with few data releases to give markets direction. Markets will be closed in the U.S. on Thursday for Thanksgiving
and will close early on Friday. A consumer sentiment survey by the University of Michigan showed that confidence remains strong. Wall Street has been closely watching consumer spending and confidence reports for more clues on the economy's path ahead. "There's a real sense out there that we're making progress," said Brad McMillan, chief investment officer for Commonwealth Financial Network. "Slowing, but growing is what the economy is doing." Forecasts for a potential recession have been pushed further out into 2024 while also being softened. The rate of inflation continues to ease, consumer spending remains solid and the economy is generally humming along. That has encouraged hopes, and bets, that the Federal Reserve is done raising interest rates and could soon consider cutting rates. Fed officials, though, have said the outlook for the economy remains uncertain and they'll make upcoming decisions on rates based on incoming reports. The Fed will get another big update next week when the government releases its October report for a key inflation measure tracked by the central bank.
THE TRIBUNE
Thursday, November 23, 2023, PAGE 13
LAWSUIT BLAMING TESLA'S AUTOPILOT FOR DRIVER'S DEATH CAN GO TO TRIAL, JUDGE RULES By TERRY SPENCER Associated Press A JURY should decide whether Tesla and Elon Musk oversold the capabilities of the electric car company's Autopilot system and caused the fatal crash of a software engineer who engaged it, took his hands off the steering wheel and seconds later slammed into a truck, a Florida judge has ruled. Circuit Judge Reid Scott rejected Tesla's motion to summarily dismiss Kim Banner's lawsuit accusing the company of causing her husband Jeremy Banner's death in 2019. In a 23-page ruling, Scott found that Kim Banner's attorneys presented sufficient evidence to let the case proceed to trial sometime next year. Scott also found that Banner can seek punitive damages from the company that, if awarded, could reach millions of dollars. Scott, citing other fatal crashes involving Autopilot, wrote last week that there is a "genuine dispute" over whether Tesla "created a foreseeable zone of risk that posed a general threat of harm to others." Autopilot is supposed to automatically steer and brake the car when engaged. The judge had ordered his rulings sealed but they were mistakenly available Wednesday on the Palm Beach County court clerk's website. They were taken down shortly after The Associated Press retrieved the ruling. Tesla attorney Whitney Cruz declined to comment Wednesday and the company did not respond to an email. Musk eliminated Tesla's media and public relations department four years ago. Banner attorney Trey Lytal said in a Wednesday statement that Scott's ruling "shows how Tesla's conduct was not just negligent, but involved intentional and reckless decisions that led to the death of customers, including Jeremy Banner." He believes Scott will soon fully release his decision.
"The public is entitled to know these findings and we feel strongly that will happen in the next few weeks," Lytal said. Scott, in rejecting Tesla's motion, focused on the company's marketing and Musk's comments about Autopilot, and noted other deaths that have occurred during its use. The company says in court documents that it warns drivers that its cars are not fully selfdriving, that they still must pay attention to the road and that they are ultimately responsible for steering and braking. But Scott agreed that Banner's attorneys had provided enough evidence for the case to proceed. Banner's attorneys have argued that by naming the system Autopilot, Musk and Tesla implied that the cars are self-driving and don't require the driver's full attention. They also cite numerous comments Musk made years before 50-yearold Jeremy Banner's crash saying that Autopilot was already better than human drivers and would soon be autonomous. The attorneys also point to a 2016 marketing video for Autopilot that is still on the company's website. It begins with a statement reading, "The person in the driver's seat is only there for legal reasons. He is not doing anything. The car is driving itself." The Tesla then maneuvers through a town on winding roads in traffic. It halts at traffic lights and stop signs, avoids other cars, pedestrians and bicyclists and speeds up and slows down as appropriate. It then parallel parks itself. The camera is positioned to show that the man in the driver's seat never touches the steering wheel or pedals. Under questioning by Banner's attorneys, Tesla employees revealed that the car in the ad was programmed with mapping software not available to the public and "still performed poorly and even ran into a fence while filming."
TESLA CEO Elon Musk speaks before unveiling the Model Y at Tesla's design studio March 14, 2019, in Hawthorne, Calif. A Florida judge ruled Friday, Nov. 17, 2023, that a jury should decide whether Tesla and Elon Musk oversold the electric car company's Autopilot system that caused the fatal crash of a software engineer who engaged it and took his hands off the steering wheel. A trial is scheduled for 2024. Photo:Jae C. Hong/AP
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THE TRIBUNE
REGULATORS AND LAW ENFORCEMENT CRACK DOWN ON CRYPTO'S BAD ACTORS. CONGRESS HAS YET TO TAKE ACTION By FATIMA HUSSEIN AND KEN SWEET Associated Press WHILE the scandals in the cryptocurrency industry seem to never end, Washington policymakers appear to have little interest in pushing through legislation to codify the structure of the industry. The latest shoe to drop is Binance's multibillion dollar settlement with U.S. authorities and the resignation of its CEO this week. Before that came the conviction of FTX founder Sam Bankman-Fried for stealing billions from customers and the implosion of smaller crypto companies that cost investors large sums of money. When cryptocurrencies collapsed and a number of companies failed last year, Congress considered multiple approaches for how to regulate the industry in the future. However, most of those efforts have gone nowhere, especially in this chaotic year that has been dominated by geopolitical tensions, inflation and the upcoming 2024 election. In fact, the appetite for new rules seems more diminished than ever. U.S. Treasury Secretary Janet Yellen said Tuesday that existing regulations already apply to
cryptocurrency at a news conference announcing the $4 billion settlement with Binance: "I think today's actions show that we are serious about enforcing strong regulations that are already in place to make sure that illegal transactions are not fostered by cryptocurrency entities," she said. "In cases like this, where there are violations of a truly egregious nature," she said "of course we want to make sure our tools stay up to date and are adjusted so that we can address emerging threats. We believe we have strong tools and we have been increasingly deploying them to counter this type of abuse." And a group of more than 100 mostly Democratic lawmakers in October said the responsibility for preventing the use of crypto to finance terrorism belongs to the White House, calling for the Biden Administration to act. Changpeng Zhao, the CEO of Binance, pleaded guilty Wednesday to a felony related to his failure to prevent money laundering on the platform. Zhao stepped down and Binance admitted to violations of the Bank Secrecy Act and apparent violations of sanctions programs, including its failure to implement
BINANCE founder and CEO Changpeng Zhao, right, leaves federal court in Seattle, Tuesday, Nov. 21, 2023, after pleading guilty to violations of U.S. anti-money laundering laws. Photo: Ken Lambert/AP reporting programs for suspicious transactions. As part of the settlement agreement, the U.S. Treasury said Binance will be subject to five years of monitoring and "significant compliance undertakings, including to ensure Binance's complete exit from the United States." Binance is a Cayman Islands limited liability company. U.S. Attorney General Merrick Garland called the settlement one of the
largest corporate penalties in the nation's history. Now the largest entities in crypto over the past couple of years — Binance, Coinbase and FTX — are either in severe legal trouble, under investigation or have collapsed altogether. Without Congress, federal regulators like the Securities and Exchange Commission have stepped in to take their own enforcement actions against the industry, including the filing of lawsuits against
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NOTICE
NOTICE is hereby given that RODOLFO SANDY CABRERA SUERO of #3 South Beach, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twentyeight days from the 16th day of November, 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE is hereby given that JENIFFER ANGELLA WOODS, P.O Box SS-19549 #70 Gunipe Tree Street, Nassau, The Bahamas, 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 23rd day of November 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
Coinbase and Binance and Kraken, three of the biggest cryptocurrency exchanges. Kraken was charged by the SEC this week with operating its crypto trading platform as an unregistered securities exchange. Additionally, PayPal received a subpoena from the SEC related to its PayPal USD stablecoin, the company said in a filing with securities regulators this month. The firm says its cooperating with authorities. Some members of Congress have opposed the SEC's actions on crypto, arguing that the SEC needs congressional approval to justify going after bad actors, or that crypto should be regulated more like a commodity, which would be under the jurisdiction of the Commodity Futures Trading Commission. One or both of those arguments have been made by legislatures in both political parties. Sens. Debbie Stabenow, D-Mich., and John Boozman, R-Ark., proposed last year to hand over the regulatory authority over cryptocurrencies such as bitcoin and ether to the CFTC. Stabenow and Boozman lead the Senate Agriculture Committee,
which has authority over that regulator. So while Congress has made proposals it has yet to act. Part of the reluctance to act stems from lawmakers' inability to coalesce around what crypto is in the first place, and further, the opposition from some powerful members of Congress to crypto altogether. One of those members opposed is Sen. Sherrod Brown, D-Ohio, chair of the Senate Banking Committee. Brown has been highly skeptical of cryptocurrencies as a concept and he's been generally reluctant to put Congress' blessing on them through legislation. He's held several committee hearings over cryptocurrency issues, ranging from the negative impact on consumers to use of the currencies to fund illicit activities, but has not advanced any legislation out of his committee. "Americans continue to lose money every day in crypto scams and frauds," Brown said in a statement after Bankman-Fried was convicted. "We need to crack down on abuses and can't let the crypto industry write its own rulebook." In the House, a bill that would put regulatory guardrails around stablecoins — cryptocurrencies that are supposed to be backed by hard assets like the U.S. dollar — passed out of the House Financial Services Committee this summer. But that bill has gotten zero interest from the White House and the Senate. Consumer advocates are skeptical about the need for new rules, or the usefulness of crypto itself. "The lawlessness if not criminal activities of crypto will continue and increase until all prosecutors, regulators and elected officials force the industry to act like all other law-abiding people and firms in the financial industry," said Dennis Kelleher, president of Better Markets, a nonprofit that works to "build a more secure financial system for all Americans," according to its website.
NOTICE NOTICE is hereby given that CHESLIN LALANE of Christie Avenue, Stapeldon Gardens, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twentyeight days from the 16th day of November, 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE NOTICE is hereby given that GILBERT FAB of Claridge Road off Wulff Road, New Providence, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 16th day of November, 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE NOTICE is hereby given that GUILAINE LUBIN of Chippingham, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twentyeight days from the 16th day of November, 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
THE TRIBUNE
Thursday, November 23, 2023, PAGE 15
BLACK FRIDAY IS ALMOST HERE. WHAT TO KNOW ABOUT THE HOLIDAY SALES EVENT’S HISTORY AND EVOLUTION By WYATTE GRANTHAM-PHILIPS AP Business Writer IF YOU didn't already guess it from a barrage of sales ads in your inbox, the holiday shopping season is upon us. And Black Friday is right around the corner. While Black Friday may no longer look like the crowd-filled, in-person mayhem that it was just decades ago — in large part due to the rising dependence on online shopping that was accelerated by the COVID-19 pandemic — the holiday sales event is still slated to attract millions of consumers. The National Retail Federation projects that an estimated 182 million are planning to shop in-stores and online through the fiveday Thanksgiving weekend. Black Friday is set to lead the charge, making up for 130.7 million of the potential shoppers. At the same time, economists note that fear of inflation, while down from a year ago, is still a concern looming in consumers' minds — and could lead to somewhat modest spending this season. The extension of Black Friday sales and growing strength of other shopping events (hello Cyber Monday ) is also changing what holiday spending looks like today. Here's what you need to know about Black Friday's history and where things stand in 2023. Black Friday falls on the Friday after Thanksgiving each year. In 2023, Black Friday is Nov. 24. The term "Black Friday" is several generations old, but it wasn't always associated with the holiday retail frenzy that we know today. The gold market crash of September 1869, for example, was notably dubbed Black Friday. The phrase's use in relation to shopping the day after Thanksgiving, however, is most often traced to Philadelphia in the mid20th century — when police and other city workers had to deal with large crowds who collected before the annual Army-Navy game and to take advantage of seasonal sales. "That's why the bus drivers and cab drivers call today 'Black Friday.' They think in terms of headaches it gives them," a Gimbels department store sales manager told The Associated Press in 1975, while watching a police officer try to control jaywalkers the day after Thanksgiving. Earlier references date back to the 50s and 60s. Jie Zhang, a professor of marketing and the Harvey Sanders Fellow of Retail Management at the University of Maryland's Robert H. Smith School of Business, points to a 1951 mention of "Black Friday" in a New-York based trade publication — which noted that many workers called in sick the day after Thanksgiving in hopes of having a long holiday weekend. Starting in the 1980s, retailers nationwide also began claiming that Black Friday represented the time when they went from operating in the red to the black as sales boost profits. But since many operate in the black at various times of the year, this interpretation should be taken with a grain of salt, experts say.
In recent decades, Black Friday became infamous for floods of people in jampacked stores and endless lines of shoppers camped out at midnight in hopes of scoring deep discounts. But the rise of online shopping has made it easier to do most, if not all, holiday purchases from your couch — something that was only accelerated by COVID-19. And while malls and inperson stores have bounced back to decent-sized crowds compared to the start of the pandemic, the growing strength of e-commerce isn't going away. The peak of brick and mortar retail sales for the month of November was seen 20 years ago, according to Jay Zagorsky, a clinical associate professor at Boston University's Questrom School of Business. In 2003, e-commerce accounted for just 1.7% of total retail sales in the fourth quarter, per the U.S. Commerce Department. Unsurprisingly, online sales make up for a much bigger slice of the pie today. For last year's holiday season, e-commerce accounted for about 16.3% of all nonadjusted retail sales in the fourth quarter, according to the Commerce Department. That's up from 12.7% seen at the end of 2019. Beyond the rise of online shopping, the prices of some big ticket items that historically attracted swaths of in-person shoppers — like a new TV — are significantly cheaper than they were decades ago, Zagorsky adds. About 20 years ago, for example, Zagorsky says a new flatscreen TV would typically go for several thousand dollars — meaning that a 15% or 20% off Black Friday deal could mean saving hundreds. But today, consumers can find a comparable 32-incher for as low as $80. "20% off an $80 TV is $16... I'm not standing in line at midnight for $16," he said, noting that shoppers can also find those deals from the comfort of their homes online today — and, of course, before and beyond the day after Thanksgiving. It's no secret that Black Friday sales don't last 24 hours anymore. Today, you might be getting emails with Black Friday-like sales even before Halloween, Zhang said. "It literally becomes a month... (and) this is not a very recent phenomenon," she said, noting that retailers have been moving these holiday deals earlier and earlier for about a decade. This "widening" of Black Friday comes from both rising competition among retailers and needs to ease pressure on shipping logistics, which were particuarly strained at the start of the particularly, Zhang said. Offering early deals for holiday sales helps extend that window. Using the term "Black Friday" in these preThanksgiving sales is also a marketing technique, she said — noting that it's a name consumers recognize and associate with big bargains. Zagorsky adds that there's "more and more temporary sales" during this period, further creating opportunities that entice consumers to act fast.
CROWDS walk past a large store sign displaying a Black Friday discount in midtown Manhattan, Friday, Nov. 23, 2018, in New York. While Black Friday may no longer look like the crowd-filled, in-person mayhem that it was just decades ago — in large part due to the rising dependence on online shopping that was accelerated by the COVID-19 pandemic — the holiday sales event is still slated to attract millions of consumers. Photo:Bebeto Matthews/AP