The Tribune.
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Title: The Tribune.
Uniform Title: Tribune. (Nassau, Bahamas).
Alternate Title: Nassau tribune
Physical Description: v. : ill. ; 58 cm.
Language: English
Publisher: Tribune
Publication Date: 3/22/2011
Spatial Coverage: Bahamas
General Note: Description based on: Vol. 79, no. 210 (Aug. 3, 1983); title from caption.
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Source Institution: University of Florida
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Resource Identifier: oclc - 09994850
oclc - 9994850
System ID: UF00084249:01814


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N ASSA U AND BAHAMA ISLANDS LEADING NEWSPAPER Bran McCartney resigns from FNM V olume: 107 No.99TUESDAY, MARCH 22, 2011 PRICE 75 (Abaco and Grand Bahama $1.25 W EATHER MOSTLY SUNNY HIGH 84F LOW 70F F E A T U R E S SEEWOMANSECTION S P O R T S The distant SEESECTIONE Love Outstanding performance By PAUL G TURNQUEST Tribune Staff Reporter pturnquest@ KEEPING in line with reports that he intends to form his own political party, Bamboo Town MP Branville McCartney offi cially resigned from the governing Free National Movement yesterday. According to sources close to the MP, this decision has been in the works for some time. Reportedly the final straw which tilted the scales was Prime Minister Hubert Ingrahams recent comments calling for all FNM MPs to vote in favour of the sale of 51 per cent of BTC to Cable and Wireless. This, sources said, appeared as a threat to democracy to the young MP, who reportedly has plans of his own to offer to the Bahamian people another option other than the PLP or the FNM. This option, the source added, will have 41 candidates. While some FNM MPs yesterday appeared taken aback by Mr McCart neys announcement, which came by way of a statement sent to the partys chairman Carl Bethel and party leader Hubert Ingraham, there were some who said they had known of this move for some time. From his perspective, the partys chairman said this move is not entirely unexpected. P arty chairman says move not unexpected TRY OUR D OUBLE M cFISH The Tribune THEPEOPLESPAPER BIGGESTANDBEST L ATESTNEWSONWWW.TRIBUNE242.COM BAHAMASBIGGEST CARSFORSALE, HELPWANTED ANDREALESTATE I N S I D E SEE page 10 By PAUL G TURNQUEST Tribune Staff Reporter OPPOSITION leader Perry Christie commended the coura geous and highly-principled decision by Bamboo Town MP Branville McCartney to resign from the FNM during the debate on the sale of 51 per cent of BTC to Cable and Wireless. After reports began to make the rounds in the House of Assem bly yesterday of what the MP had done, Mr Christie held a press conference in the partys common room. Reminding the public that he himself had walked a similar path at an earlier stage in his political career, Mr Christie said he knows how difficult it is to sepCHRISTIE COMMENDS COURAGEOUS MP SEE page 10 By NOELLE NICOLLS Tribune Staff Reporter BTC protesters said they were offended by the use of police chains that restricted access for hundreds of demonstrators to Rawson Square and Bay Street. Jennifer Isaacs-Dotson, president of the National Congress of Trade Unions (NCTU perturbed and almost brought to tears at the sight of chains used to lock protesters out of Rawson Square. It was very distressing to see the chains on barricades. That our government would make a decision to lock our people outside of the people's square, said Mrs Isaacs-Dotson. Protesters marched from Clifford Park yesterday, along Bay Street, to chants from protest leaders: Rise up mighty people, peaceful ly but forcefully. Unlike previous demon strations, protesters were met by police barricades that stretched across the road from Parliament Square to Rawson Square. Protesters POLICE and emergency medical services personnel had to be called to PLP headquarters last night as protesters, reportedly paid to demonstrate on Bay Street yesterday, became agitated when they went to collect their funds at Gam bier House. According to eyewitnesses, bus loads of persons arrived at the party's headquarters on Farrington Road and it was shortly afterwards that a fight broke out. Police were quickly called to quiet the rowdy mob, while those who were injured had to be rushed to the Princess Margaret Hospital. By CELESTE NIXON Tribune Staff Reporter AN OPPOSITIONMP has called for a commission of inquiry into the sale of BTC to Cable and Wireless. Fort Charlotte MP Alfred Sears labelled the sale antiBahamian and said he could not support the deal because it lacks transparency. Speaking in the House of Assembly yesterday, Mr Sears said the PLP is not against pri vatisation of BTC, as it is in the best interest of the country. However, he said, the party must oppose the current sale to Cable and Wireless (CWC because it undervalues the asset, is not transparent, and contains "anti-competitive and anti-Bahamian aspects." According to Mr Sears, ana lysts have advised that the $210 million sale is far below the "sector value" and that BTC should be valued between $700 and $800 million. MP CALLS FOR COMMISSION OF INQUIRY INTO BTC SALE SEE page 10 FIGHT AT PLP HQ AS PROTESTERS GO TO COLLECT FUNDS POLICE and emergency medical services at the PLP headquarters last night. SEE page 10 BTC PROTESTERS OFFENDED BY RESTRICTED ACCESS TO RAWSON SQUARE PROTESTERS against the sale of BTC carry signs in D owntown Nassau yesterday. Photo/ Jessica Robertson THE country's homicide toll climbed again following the fatal shooting of a 36year-old man in Ragged Island Street yesterday afternoon and the shooting of a2 4-year-old man in Montel Heights on Sunday night. M eanwhile, police are searching for the motive behind the vehicle fire that burned a body beyond recognition in Bamboo Town on Sunday evening. The latest shooting took p lace at the Exclusive Salon on Cordeaux Avenue and R agged Island Street yesterday afternoon. The 36-yearold man was reportedly 36-YEAR-OLD MAN IS SHOT DEAD SEE page 10 RESIGNATION : Branville McCartney


B y NOELLE NICOLLS Tribune Staff Reporter THE police took extra precautions in securing the House of Assembly yesterday, after receiving intelli gence of possible seditious behaviour, according to Tribune sources. Glenn Miller, assistant commissioner of police, said the changes in strategy were a result of a review and cri tique of the methods used during the last protest. We had information they wanted to get into the House of Assembly. We were not going to let that happen. That is still our intention not to let that happen. We are not going to let 300-plus people barge into House of Assembly without a pass to get inside there, said Mr Miller. Based on the last demonstration, he said, it was obvi ous the barricades needed to be fortified. During the last major protest, there was a violent clash with police that resulted in some police and civilian injuries; protesters lifted the barricades in the air and police officers used batons on crowd members to try to reestablish control. Mr Miller said several necessary changes were made to ensure there was a peaceful demonstration. Barricades used to block access to Rawsons Square were bound with metal chains and were braced with large cement boulders. Police barricades also prevented protesters from assembling on the road in front of Rawsons Square. What we found today, the persons who turned out were more peaceful. They did not seem too arrogant. They showed more respect for themselves and others. In our briefings with our officers, we instructed them to exercise professionalism in the execution of their duty, said Mr Miller. The Penal Code contains a section that speaks to sedi tious behaviour, including what it calls seditious intention. This includes actions to bring into hatred or contempt or to excite disaffection against the person of Her Majesty, Her Heirs or successors, or the Government of the Bahamas as by law established; or to excite Her Majesty's subjects or inhabi tants of the Bahamas to attempt to procure the alteration, otherwise than by law ful means, of any other matter in the Bahamas as by law established; or to bring into hatred or contempt or to excite to disaffection against the administration of justice in the Bahamas; or to raise discontent or disaffection amongst Her Majesty's subjects or inhabitants of the Bahamas. The Penal Code also clarifies various acts, speech, or publications that are not seditious, including those that intend: To show that Her Majesty has been misled or mistaken in any of her measures; or to point out errors or defects in the government or constitution of the Bahamas as by law established or in legislation or in the administration of justice with a view to the remedying of such errors or defects; or to persuade Her Majesty's subjects or inhabitants of the Bahamas to attempt to procure by lawful means the alteration of any matter in the Bahamas as by law estab lished; or to point out, with a view to their removal, any matters which are producing or have a tendency to produce feelings of ill-will and enmity between different classes of the population of the Bahamas. LOCAL NEWS PAGE 2, TUESDAY, MARCH 22, 2011 THE TRIBUNE CommonwealthBreweryLimitedInvitesyoutotheir InitialPublicOeringPresentation BritishColonialHilton|WindsorRoomMonday March 28th, 20116:00 pm 8:00 pmFinancialAdvisor&PlacementAgent Dress:BusinessCasualRSVP:tina.kelly@royaldelity.comorCall:1.242.397.4523RefreshmentsServed AN HISTORIC vote in the House of Assembly yester day paved the way for the sale of 51 per cent of BTC to Cable and Wireless later this week. Moving for the adoption of three new Bills, Prime Minis ter Hubert Ingraham called the vote the final process before privatisation takes place. The Bills are: A Bill for an Act to Facilitate the Privatisation of the Bahamas Telecommunications Company and for Con nected Purposes A Bill for an Act to Amend the Communications Act, 2009 A Bill for an Act to Amend the Utilities Regulation and Competition Authority Act, 2009 MPs also voted on two resolutions one to confirm the transfer of nine parcels of land from the Treasurer to BTC, upon or from which BTC conducts business. The second sought the approval of the House for the privati sation of BTC and the sale of 51 per cent of its shares to Cable and Wireless. Mr Ingraham said: BTC is now a mature enterprise and for the past 14 years, gov ernments of the Bahamas have been seeking to find a partner for it. The search was expensive and costly. The public bidding exer cise in 2003 and again in 2010 resulted in unacceptable offers. And, an intended engagement days before the last general election was called off. Now we have a partner for BTC CWC. Mr Ingraham emphasised that the privatisation process has not be hurried or taken casually. He said: Serious time, money and effort has been spent over the past 14 years by government and its advi sors experts in telecommunications, in privatisation and in investments to ensure that we got this right. When it was determined that circum stances did not provide a good deal for the Bahamas, government has opted not to proceed. We have taken BTC to the altar of privatisation on two separate occasions; once on the watch of members opposite who continued a process which we had commenced, and secondly fol lowing our return to office in 2007. We have spent enormous sums of money in the exer cise. Great damage will be done to the image and reputation of the Bahamas if, after two attempts, we fail to privatise BTC. We, believe, are soundly convinced, that this deal is a good deal and that this hour is the appropriate hour for us to move forward on the privatisation of BTC. The vote was suspended last night and will resume today at 3pm. Police receive intelligence of possible seditious behaviour, secure House Historic vote set to pave way for BTC privatisation Necessary changes were made to ensure a peaceful demonstration DEAL OF DEATH: A protester holds up a model of a coffin during the BTC protest yesterday outside the House of Assembly. MAKING APOINT: PLP MP Fred Mitchell (background J e s s i c a R o b i n s o n / T r i b u n e s t a f f


LOCAL NEWS T HE TRIBUNE TUESDAY, MARCH 22, 2011, PAGE 3 A MAGISTRATE yesterday convicted a 71-year-old man of bigamy. Prosecutors had argued that James Roker, alias James Cyril Roker, on May 17, 2007, married Donna Marie Smith, knowing thathe was still married to Catherine Roker, although the two had been separatedfor some time. Roker was also charged with making a false declaration for the purpose of mar riage on May 14, 2007. While Roker contended that he was not previously married, Deputy Chief Mag istrate Carolita Bethell con victed him of the offences following a trial. Roker is expected back in court on May 2 when a probation report will be presented to the court. A JURY was selected yesterday in the trial of an American teenager and a Bahamian man accused of murder. Zyndall McKinney, 23, of Isabella Boulevard, and the teenage girl alleged to be his girlfriend, are accused of the murder of Anna Garrison. It is alleged that between Sunday, February 25 and Saturday, July 4, 2009, McKinney and the girl, being concerned together, caused the death of the victim. Mrs Garrison's badly decomposed body was discovered in a bushy area off Fox Hill Road South near the Blue Water Cay development on Saturday, July 4, 2009 at around 6.20pm. Her body had been wrapped in sheets and her feet were wrapped in plastic bags. The 33-year-old woman first came to the attention of police on February 25, 2009, when they received a missing person report from the United States Embassy in Nassau. A jury of eight women and four men was selected to hear evidence in the trial yesterday. The trial is being heard before Senior Justice Jon Isaacs. Tony Scriven and Ambrose Armbrister appear for the Crown. McKinney is represented by Murrio Ducille and the girl is being represented by Elliot Lockhart. By CELESTE NIXON Tribune Staff Reporter PRIME Minister Hubert Ingraham has encouraged BTC employees to come to terms with the majority sale of the company. In his address to parliament yesterday morning, Mr Ingraham pointed out that sale is going to happen, that Cable and Wireless would be in charge as soon as next month, and told BTC workers they should engage with the company. Mr Ingraham said: "I want to encourage the BTC unions to engage with CWC a nd I encourage the staff of BTC to urge their union representatives to engage with CWC this can only serve you interests". The prime minister said that as CWC will become the majority owner, operator and manager of the company, it only makes sense for employees to communicate with them. Responding to complaints from seated opposition members of the House, Mr Ingraham said all BTC employees were over the age of 18 and could make up their m inds on the matter, adding that he was just giving them some advice. Mr Ingraham thanked all BTC employees and any others who had a hand in what BTC has done and what it has been doing for the Bahamas during its 45 years of existence, and assured them that CWC was the best partner for the company. JURY SELECTED IN ANNA GARRISON MURDER TRIAL 7 1YEAR-OLD MAN CONVICTED OF BIGAMY PM tells BTC staff engage with CWC T HE FNM claims the leak o f an internal email conversation among senior PLPs has revealed their cynical campaign to manipulate the Bahamian people with rehearsed lines and silly slogans. A statement issued by the g overning party yesterday, said the opposition members statements mistakenly sent to the press, show they are guided by what they hope might work to further their narrow interests, rather t han by core and consistent p rinciples. In the email exchange PLP deputy leader Philip Davis advised his colleagues that the oppositions stop, review and cancel slogan that they have been repeating for four years is not res onating with the Bahamian people. The FNM said: It is not only the PLPs slogans and p ublic relations programmes t hat are not resonating with B ahamians. The PLP itself its failed leadership andr ecord in office as well as its r eckless behaviour in opposition is not resonating with the majority of Bahamians. This includes its attacks on the police, and mob behaviour. The oppositions arrog ance is stunning. They do not realise that their cam paign of distortion is failing b ecause the Bahamian peo p le know better. Bahamians understand that the worst financial crisis in generations hit most of the world econo m y including the Bahamas. The desperate and delusional leadership of the PLPp refer sticking their heads in the sand because they cannot bring themselves to a dmit what is plain to most B ahamians. Prime Minister Ingraham and the FNM rescued the economy, preserved public sector employment, created jobs through the most ambitious public infrastructure investments in Bahamian his tory, and helped to turn the dream of Baha Mar into a reality. In the midst of the financ ial crisis the FNM launched l andmark unemployment a nd prescription drug benefits as well as the NationalR etraining Programme. Prime Minister Ingrahams seasoned leadership during the financial crisis is recognised globally. For the first time ever, a Bahamian Prime Minister in the person of Mr Ingraham has beens elected to chair the Annual Meetings of the Boards of Governors of the Interna-t ional Monetary Fund and W orld Bank Group. The PLPs vision is blurred and smudgy because of how long they have keptt heir heads in the sand. When they look in the mirror they suffer from delusionsa nd hallucinations. In claim ing to see others, they are seeing themselves. THREE PLP MPs and one newly independent parliamentarian did not vote yesterday on the amendments to the Communications Act, which paved the way for the ultimate vote on the sale of 51 per cent of BTC to Cable and Wireless. The amendments were passed with a Yes vote of 22 to 14. All FNM MPs voted in favour, with the PLP MPs present voting against. P LP MPs Anthony Moss, Fred Mitchell, and V Alfred Gray were all absent during the initial vote. The FNMs former MP for Bamboo Town Branville McCartney was not present for the role-call. While Mr McCartney, who momentarily popped in and out of the parliamentary chamber, is rumoured to disagree with the sale of BTC, concern was raised over why the PLP MPs might have failed to appear for such an historic vote. According to Mr Moss, the reason he was not present for the v ote was that his flight from Exuma was a little bit late this morning. So I never got here to the House until about 11am. So there is no conspiracy. I am not in support of the sale of BTC, particularly to foreigners, he said. Mr Mitchell declined to comment on his absence, although his party leader indicated that he was out with the demonstrators at the time of the vote. Mr Gray was also not available at the time of the vote, as he w as reportedly in the Supreme Court. THREE PLPS, ONE INDEPENDENT, FAIL TO VOTE ON COMMUNICATIONS ACT AMENDMENTS By CELESTE NIXON Tribune Staff Reporter PLP deputy leader Brave Davis said that the release by a local media house of a "private communication" between leaders of his party was unethical and was intended to cause mischief. On Sunday evening, an email exchange between PLP members concerning a state ment they intended to release in response the FNM's Saturday night rally, was mistakenly sent to members of the media. A local newspaper printed an article based on the exchange yesterday, which quoted Mr Davis as saying he felt the "stop, review and cancel message" campaign which the party has been running was "not resonating" with voters. The campaign is intended to stir up outrage over FNM leader Hubert Ingrahams decision to suspend and review a number of PLP initiatives when he became prime minister in 2007. The e-mail was quoted as saying: "The stop, review and cancel is not resonating as we have not been able to persuade the elec torate that it is management and not the global economy that is causing the woes today. Mr Davis told The Tribune yesterday that he learned on Sunday that his "private" comments pertaining to a first draft statement from opposition leader Perry Christie had been released to the public. He said: "It was a private communication between myself and the persons involved in the construction of Mr Christie's contribution to the press; it was clearly noted as private in the exchange and it is a clear breach of that privacy". According to Mr Davis, the article concerning his communica tion was intended to cause "mischief" for the PLP and is what he deems "unethical behaviour". Mr Davis claimed he was not contacted for comment on the mat ter before the article was published, and said he intends to take up the issue with that newspapers management when the time is right. He did not speak about the comments in the email, or whether he stood by them. FNM claims internal email leak shows cynical PLP campaign Brave Davis: release of private comm unication was unethical PHILIPBRAVE DAVIS


EDITOR, The Tribune. A QUESTION for fellow motorists throughout The Bahamas: Are you a busy mother with school drop-off and pick up, soccer practice and grocery shopping? Are you a salesman who vir tually lives in his vehicle? Maybe a teenager who likes to impress his friends by burn ing an inch of rubber off his tyres when accelerating? Or youre a grandmother or grandfather who visits a friend through the week and goes to church on Sunday? If your profile fits either of those described above, you have an obligation to your vehi cle, no matter if its an entry level model or top of the line. That obligation to your vehicle is maintenance! In The Bahamas we drive under extreme conditions, i.e. high temperatures, idling in traffic, short trips of less than five miles and in some cases severe dust. These conditions are taxing on your vehicles engine and its life blood lubricating oil. Even if you cannot afford all the maintenance recommended by the manufacturer in your owners manual, changing the vehicles oil and filter, using the recommended grade of oil, every 3,000 miles or 4,800 kilometers you will save thousands of dollars on normally unnecessary repairs. Not to mention the time your vehicle will be off the road. And if you are of the opinion that motor oil does not wear out, youre dead wrong. Stick to this belief and you will pay the price. This is not an advertisement for any dealership, repair garage or oil company. Its simply good advice. NORMAN A. WHITLOCK Nassau, March 18, 2011. E DITOR, The Tribune. EVERYTHINGin The Bahamas is the worlds best and internationallyr enowned, but why is Tourism down in comparison with the Caribbean? When journalists describe or report on events with dif-f erent glasses and misuse superlatives/adjectives to describe the event facility, etc, they injure our prod-u ct. Have you noticed that journalists over use superlativest o describe even the most s imple issue as if this is a g lobal break-through or world crashing event when it really is a matter-of-fact issue? J ust yesterday, Saturday, M arch 5th, a new restaurant was described as a five-star establishment when it really is a run of the mill one ZNS described the Agro fair on Gladstone Road as if we suddenly and miraculously were able to feed ourselves and stopped importing foreign food last week again ground breaking of a Private Aircraft facility (FBO Bahama this was projected t hrough a misquote to receive o ver 50,000 aircraft a year, impossible probably in 10 years and it goes on and on. Everything here is the w orlds best internationally r enowned the minute it o pens. W e seem to nationally forg et one has to earn credits....what we are actually d oing is falsely teaching everyone that we dont have to work at providing service, pricing the service correctly and basically earning them erit, credit etc. The Cacique Awards are yet a further example of what is wrong such an Award should have to be earned noty ou get 20 friends to put your name in and suddenly you are a recipient of a National Cacique Award you shouldh ave to earn it. Why cant the scheme be set-up where the customersr ate, give recommendations s o you will get a real Award s cheme earned? Of course that will kill the scheme which in my opinion is manipulated anyway. H KNOWLES Nassau. March 6, 2011. E DITORIAL/LETTERS TO THE EDITOR P AGE 4, TUESDAY, MARCH 22, 2011 THE TRIBUNE The Tribune Limited NULLIUS ADDICTUS JURARE IN VERBA MAGISTRI Being Bound to Swear to The Dogmas of No Master LEON E. H. DUPUCH, Publisher/Editor 1903-1914 SIR ETIENNE DUPUCH, Kt., O.B.E., K.M., K.C.S.G., (Hon. Publisher/Editor 1919-1972 Contributing Editor 1972-1991 EILEEN DUPUCH CARRON, C.M.G., M.S., B.A., LL.B. Publisher/Editor 1972Published Daily Monday to Saturday Shirley Street, P.O. Box N-3207, Nassau, Bahamas Insurance Management Building., P.O. F-485, Freeport, Grand Bahama W EBSITE updated daily at 2pm DURING yesterdays rally Bahamas Communications and Public Officers Union president Bernard Evans expressed the hope that between now and the vote something will happen to derail the sale of BTC to Cable & Wireless. We are certain that the Bahamian woman who called a radio show yesterday morning to complain that she tried to pay her tele phone bill but found no cashier on duty at any of the outlets except at the BTC Marathon office to assist her is anxious for the sale to go through. She is probably among the many Bahamians who unlike Mr Evans cannot wait for the company to be privatised so that persons like herself will get the standard of service they have every right to expect. It is presumed that instead of manning their stations yesterday many of the missing staff were on Bay Street protesting the saleof BTC. Lower fees, better service and more choice in their public communications is what the public wants as far as many of them are concerned, it cannot come soon enough. Sunday night an internal e-mail, claiming to have been sent by Philip Brave Davis to six party members, mysteriously found its way to the desks of several newspaper editors and reporters. With daily information being supplied by TV, Twitter, Face book and all the other new fangled means of information, Bahami ans are sufficiently well informed not to buy into the PLPs propaganda blaming the Bahamas economic downturn on the Ingra ham government, rather than where it rightfully belongs the world economic crash. We have not been able to persuade the electorate that it is management and not the global economy that is causing the woes today said the e-mail. Party members have been advised to change their tactics. The e-mail claims that what is resonating is the intentional delay and slothfulness to get things started that was left in place. We do not think that what the PLP like to call stop, review and cancel will resonant with Bahamians either if they fully understand what the Ingraham government has saved for them by going over all agreements left in place by the Christie government. When they realise what they would have lost had this not been done, we do not believe that even this propaganda slogan will resonate with anyone. The Davis e-mail suggested that the cho rus line to this weeks debate about the sale has to be the five reasons why the BTC deal stinks and this word has to be the cho rus line to all contributions. Taking Mr Davis advice yesterday, Fort Charlotte MP Alfred Sears during his contribution to the debate called for a Commission of Inquiry because the deal does not pass the smell test. The Christie camp is certainly desperate to win an election. They are clutching at any and every straw that passes their way to try to capture votes. The e-mail advised the party stalwarts to be dismissive of the rally. This was a reference to Saturday nights FNM rally attend ed by a large, enthusiastic and orderly crowd. We presume that the directive was to ignore it, but one intrepid PLP MP broke ranks and suggested that the FNM were disappointed by the poor turnout to their rally. The police estimated that on Saturday night the rally drew a crowd of about 7,000 hardly a poor turnout. One bystander watching yesterdays demonstration outside the House believed the people should protest, but wondered if anyone is listening. Why should anyone listen when reports persist that party operatives are paying many of them to be there. We have been told by eyewitnesses that when the House broke for lunch around 1pm yesterday, a long line from the top to the bottom of the stairs of demonstrators waited outside the Oppositions office door in the Bayparl building, demanding payment for doing what they claimed they were paid to do at the rally. One of them urinated on the stairs, they were smok ing grass, swearing and saying they wanted their money, an eyewitness said. We then had reports of another disturbance at the PLPs Gambier headquarters last night when a fight broke out and police and an ambulance had to be called. Again, according to an eyewitness, it was claimed that a bus load of persons arrived demanding payment. How can anyone listen to demonstrators, a large number of whom are being paid by party operatives to swell the ranks. Obviously many of them neither understand nor care about the issues. Despite these alleged inducements, the turnout has been sparse, especially for an issue about which Opposition politicians claim the people are so passionate. Paid protesters do not reflect the opinion of the general public and, there fore, cannot be taken seriously. This tactic of paying this type of person some of whom the police say are well known to them to disturb the peace is dangerous. One only has to look at what eventually happened to politicians in Jamaica who played this game too long. Edward Seaga is a case in point. It would be wise for Bahamian politicians especially after what must be to them an embarrassing episode to call a halt and change course. Bahamians want to know the truth for a change. They are tired of propaganda. Why is tourism down in comparison with the Caribbean? LETTERS Election tactics to fool Bahamians in full swing -RE9DFDQF\$QHVWDEOLVKHG1DVVDXEDVHGFRPSDQ\ VHHNVWRWKHSRVLWLRQRI $VVLVWDQW $GPLQLVWUDWRULQWKH3URFXUHPHQWDQG $VVHWDQDJHPHQW/RJLVWLFV'HSW $OODSSOLFDQWVSRVVHVVWKH IROORZLQJ &ROOHJHGHJUHHLQ%XVLQHVV$FFRXQWLQJ ,7NQRZOHGJH 7KHDELOLW\WROHDUQTXLFNO\ 7KHDELOLW\WRZRUNLQGHSHQGHQWO\ $QH\HIRUGHWDLOV ([FHOOHQWFRPPXQLFDWLRQDQGWHDPZRUN VNLOOV2QO\FRPPLWWHGKDUGZRUNLQJDQGVHOI PRWLYDWHGSHUVRQVQHHGDSSO\5HVXPHVVKRXOGEHVXEPLWWHGWRMREYDFDQF\EV#KRWPDLOFRP$OOUHVXPHVPXVWEHUHFHLYHGE\ WK 0DU EDITOR, The Tribune. Kindly permit me space in your valuable columns to express special thanks to Ms Athena Damianos for her comments on the survival of the tick-tack-toe building on Bay Street and the significance of Austin T Levys Harrisville Company-operated chain of Hatchet Bay Farms milk stands. In fact, the demise of the Levys enterprise Hatchet Bay Farms did set The Bahamas back some four decades in our faltering effort to achieve self-sufficiency through agriculture, where we now have annual budgets but no well distributed harvest or sincere buy-in by the Bahamian consumer. These remaining milk stands throughout New Providence are silent but staunch reminders of the lowness to which we may be brought through racial prejudice and our tragic tendency to politicize everything we do in this country. It further speaks volumes of discontent when local politi cians of any stripe assume that they have a monopoly on good business sense or sound judgment. The results of such political or personal hubris are neither noble, heroic nor enhancing to our nation's progress and development. Bahamians will only move from the survival mode to prevailing progressively when we transcend the politics of party, personality and patron age. W LESTER BOWLEG Nassau, February 24, 2011. Thank you to Athena Damianos for comments on tick-tack-toe building E DITOR, The Tribune. As a two-time President of the Bahamas Real EstateA ssociation, obviously I am passionate about the direction our association is head e d. And obviously our direc tion is headed in reverse. However, members have an opportunity to changet he course of history for BREA for the year 20112012. Elections are sched u led to be held on Thursday, March 24th and I understand that Franon Wilson has been nominated for the post of Vice President. I would encourage members to bypass the VP post and elect Franon for our President. He has the profile, the intellect and a vision to take our Association to another level. PAT STRACHAN Nassau, March 17, 2011. A question for fellow motorists Chance to change BREA s course for 2011-2012


PRIME Minister Hubert yesterday tabled a documenti n the House of Assembly illustrating the differences between the offers for BTC submitted by Bluewater Ven-t ures (entertained by the PLP in 2007) and Cable & Wire less Communication (CWC I n the document, the BTC offers are compared point for point: Operations Bluewater had no tele com operations; was run by a group of ex-telecom execu tives. CWC specialises in mobile, fixed and broadband services, as well as in entertainment. Nature of business/scope of resources Bluewater has no financial statements available. CWC has 11m subs, $2.3 billion in revenues and $866 in net earnings before interest taxes depreciation and amortisation. Financial partner funding Bluewater had 100 per cent financial investors, butthe source is unknown. The offer by the CWC is funded 100 per cent by the company. Price for 49 per cent of shares for Bluewater; 51 per cent for CWC Bluewater offered $260 million, paid as follows: $220 million at closing; $25 millionat the end of five years; $15 million at the end of six years after the deal is closed. There was no mention of stamp duty (assumed gross price which includes stamp duty). CWC is paying $217, inclusive of stamp tax. Cellular exclusivity period Bluewater would have had six years of exclusivity, with a mobile virtual network operator (MVNO operator that does not own its own licenced frequency and usually does not have itsown network infrastructure coming in during the fourth year. CWC gets three years of exclusivity before the process for a second cellular licence is started; there will be no third licence issued until five years after the deal closes. Landline exclusivity Bluewater would have gotten six years exclusivity. As CWCs offer comes in 2011, landlines are already liberalised Due diligence Bluewater: There was no financial or share ownership information provided. CWC: Complied with sale process rules; is a public company. Financing capability Bluewater: No evidence of financing capacity or fund ing for the transaction. CWC: The offer is fully funded from CWCs existing balance sheet and capital resources. Pledges of BTC shares Bluewater wanted the ability to pledge its shares immediately suggesting financing was dependent ona pledge of shares. CWC has no pledges of shares. Transfers of shares restric tions Bluewater: 1. Free ability to transfer shares after initial period 2. After initial period, rights to first offer; 30 days notice 3. Tag along rights 4. Timing/nature of any initial public offering was not agreed 5. Pre-emption rights for new issues of shares CWC: 1. No share transfers for five years 2. After five years, rights to first offer; 45 days of notice 3. If rights not taken up, then CWC can sell to established telecoms company, oth erwise requires government approval to sell. 4. Any transfer at all times subject to NEC/Exchange Control approval 5. Government may sell nine per cent on BISX in first three years; up to 25 per cent thereafter. 6. Tag along rights 7. Government may com pulsorily acquire CWC shares in the event of CWC insolvency event or material breach of shareholders agree ment. LOCAL NEWS T HE TRIBUNE TUESDAY, MARCH 22, 2011, PAGE 5 B y NATARIO McKENZIE T ribune Staff Reporter ATTORNEY Maurice Glinton claimed yesterday that a judges decision to strike out an action broughtb y two unions attempting to block the sale of BTC was premature and based on a mistaken view of the law and procedure. Mr Glinton, who repres ents the Bahamas Communications and Public Officers U nion (BCPOU B ahamas Public Managers Union (BCPMU i n the Court of Appeal yesterday on an appeal of a decision by Supreme Court Justice Neville Adderley in February. T he BCPOU and the B CPMU had filed a joint a ction in the Supreme Court q uestioning the governmen ts right to sell 51 per cent B TC to Cable and Wireless. The unions contend that t he government does not h ave the legal right to sell B TC. Justice Adderley ruled however that the action wasa nullity and that the unions l acked the legal capacity to institute and maintain the action in their own names for t he declarations sought. M r Glinton stated yesterday: We submit that he went too far because heo perated under a mistaken understanding of the law and mistaken interpretation of t he Industrial Relations A ct. H e noted that the unions were spurred into action by t he governments announce ment of its decision to sell majority shares of the stateowned telecommunications company to the British tele-c om company Cable and W ireless, and the signing of a memorandum of understanding. M r Glinton argued that t he judge had acted prematurely in acceding to an application to strike out thea ction brought by the unions. He contended that the judge had failed to apprecia te the essence of the case. T he hearing resumes in t he Court of Appeal today before Appellate Court Presi dent Anita Allen, and Jus tices Christopher Blackman and Abdulai Conteh. BLUEWATER had planned to freeze t he pension plans of BTC workers as soon a s possible after buying the company so no new benefits would accrue, documentst abled in the House of Assembly by Prime M inister Hubert Ingraham reveal. According to the document, Bluewater Ventures the company seeking to purchase 49 per cent of BTC shares in 2007u nder the PLP administration would have required BTC employees to join a new d efined contribution plan. T he government would have been responsible for all contributions to fund the deficito f the defined benefit plan. T he privatisation process was not com peted by the PLP before the 2007 general election. Just days before the election, the Cabi n et took a decision not to sell the company. Attorney: judges decision on attempt to block BTC sale was premature PM tables document showing differences between Cable & Wireless and Bluewater Ventures offers PRIMEMINISTER Hubert Ingraham PM: Bluewater planned to freeze pension plans of BTC workers W W e e s s u u b b m m i i t t t t h h a a t t h h e e w w e e n n t t t t o o o o f f a a r r b b e e c c a a u u s s e e h h e e o o p p e e r r a a t t e e d d u u n n d d e e r r a a m m i i s s t t a a k k e e n n u u n n d d e e r r s s t t a a n n d d i i n n g g o o f f t t h h e e l l a a w w a a n n d d m m i i s s t t a a k k e e n n i i n n t t e e r r p p r r e e t t a a t t i i o o n n o o f f t t h h e e I I n n d d u u s s t t r r i i a a l l R R e e l l a a t t i i o o n n s s A A c c t t . Attorney Maurice Glinton


L OCAL NEWS P AGE 8, TUESDAY, MARCH 22, 2011 THE TRIBUNE SOME families who lost everything in a devastating fire last week are now starting the gruelling process of rebuilding. Approximately 45 persons were left homeless after a fire destroyed eight uninsured houses situated on a plot of generation land in the Ferguson Subdivision. Social Services provided the fire victims all blood relatives with temporary accommodations at the Corner Hotel on Faith Avenue. Unless extended, their one week stay expires today. In the wake of such a catastrophe victims run through their savings pretty quickly purchasing the essentials, said Charles Maynard, Minister of Youth, Sports and Culture. Any financial assistance would be greatly appreciated and building supplies even better. The fire victims resided in his Golden Isles constituency. According to Mr Maynard, some of the men who lost their homes work in construction. They are rebuilding their own homes. If we could obtain donations of building supplies that would go a long way in helping them to help themselves, he said. Many persons in the community have rallied around the families, offering their support. People have reached out to me to offer the fire victims clothes and other assistance, Mr Maynard said. In fact, the Catholic Archdiocese of the Bahamas sent a representative to me to find out what they could do. Apparently, they have a special unit that deals with these type cases. Mr Maynard disclosed that Sandals Emerald Bay in Exuma has also pledged some items. We are working with them to get those items for the fire victims, he said. The Cabinet Minister went on to express his pleasure with the publics response thus far. We are very happy to see people calling and offering a full range of items. The families are very grateful. He added: Some things I sent to the Corner Hotel. I also directed donors with urgent items to go there. Some things the residents wouldnt need until they are ready to move back in, if they are able to rebuild. We are going to arrange storage until they find more permanent accommodations. With regards to clothing, the Golden Isles MP said children required school uniforms and adults needed work clothes. When you lose everything, every need is pressing, said Mr Maynard. We are simply trying to bring some degree of normalcy back into their lives. By K QUINCY PARKER Press Attach Embassy of The Bahamas WASHINGTON, DC National Security Min ister Tommy Turnquest reiterated the commitment o f the Bahamas to the fight against terrorism, which he said remains a critical issue for the international community despite the tremendous strides in the enhancement of security measures. Mr Turnquest last week opened the 11th Regular Session of the Inter-American Committee Against Terrorism (CICTE over the last year. The theme for CICTE XI which the minister welcomed as timely and relevant is Reaffirming our Commitment to prevent, combat and eliminate Terrorism and to strengthen Member State Capacity and Regional Cooperation. Speaking before a room full of representatives from all the democratic states in the Western Hemisphere, Mr Turnquest said: The devastating effects of terrorism do not discriminate and therefore, if we are to be successful in the fight against this phe nomenon, our national efforts must be comple m ented and informed by a hemispheric approach. My country is committed to the fight against terrorism. At the regional level, through CARICOM, we have considered how to approach the security of the Caribbean to better address the threat of terrorism. (We have collaborated on of prosecutors, magistrates and Financial Intelli gence Unit personnel on measures to prevent, deter and identify threats of terrorism and terrorist financ-i ng. At the international level, he continued, this has been accomplished within the United Nations framework, through the international conventions, instruments and resolutions which seek to guide our countries in combating, preventing and countering terrorism. OVERVIEW OF CICTE X The Bahamas year-long chairmanship of the CICTE under the theme of public/private sector partnerships in the fight against terrorism ends this week. Speaking of the success of this programme, Mr Turnquest cited the development of close partnerships between CICTE and such organisations as the UN Office for Drugs and Crime ( UNODC), the Counter-Terrorism Committee (CTC nism for implementing UN Resolution 1540 on obliging states, inter alia, to refrain from supporting by any means non-state actors from developing, acquiring, manufacturing, possessing, transporting, transferring or using nuclear, chemical or biological weapons and their delivery systems. Specifically, the minister cited the pilot project o n the Physical Protection of Nuclear and Related Materials, plus a number of border control and cyber-security training workshops. Although the CICTE is established to promote security in the hemisphere, we know that in todays transnational landscape, borders can be very porous. Therefore, CICTEs initiatives in maritime security, such as the Port Security Assistance Partnership, and initiatives in aviation security (CICTE schol-a rships for the ICAO Civil Aviation Security Workshop) have had a global impact, Mr Turnquest said. Indeed, the Government of the Bahamas has benefitted from such initiatives and has partnered with the CICTE to host a number of workshops aimed at promoting security in the region through capacity building and training exercises. Secretary General of the OAS Jose Miguel Insulza a lso addressed the inaugural session of CICTE XI, noting that terrorism is part of the regions history. Mr Insulza cited a number of terrorism incidents including incidents in Argentina, Panama and con cluding with the infamous bombing of the World Trade Centres and the Pentagon on September 11, 2001 all with a combined death toll in the thousands. He said: With all these and many other victims of t errorism, we give our recognition and our efforts to combat this scourge. Mr Insulza said the fact that there has not been a new attack in the hemisphere of the same magnitude as /11 is due to vigilance and multilateral efforts. The Secretary General recognised the efforts of the Bahamas over the past year, thanking the Gov ernment of the Bahamas for its leadership in under scoring the importance of public/private sector collaboration in counter terrorism. Such cooperation would, he said, preserve the stable democracies of the Americas. BAHAMAS REAFFIRMS ANTI-TERRORISM COMMITMENT THE BAHAMAS DELEGATION to CICTE XI included Freddie Tucker, counsellor; Kimberly Lam, second secretary; Police Commissioner Ellison Greenslade, Ambassador CA Smith, Minister of National Security Tommy Turnquest, and National Security permanent secretary Carl Smith. THE FIRE destroyed eight uninsured houses situated on a plot of generation land in the Ferguson Subdivision. Families start the rebuilding process after devastating fire 45 left homeless after blaze in Ferguson Subdivision


arate ones self from a political party to which one has become and long been affiliated. But I think it is fair to say that given the timing, the fact that he chose this day, and this debate to do it, indicates the nature of the principle decision that he made and that it has everything to do with using himself and his decision to demonstrate how very important this debate is, and how very important to the future of our country the conclusion of this debate that is the transfer of 51 per cent of the shares of BTC is to the Commonwealthof the Bahamas, said Mr C hristie. At this particular juncture of his own political career, it raises the question of what next for him. But it should make all Bahamians, at least give them and place them in a position to at least consider commending him for demonstrating the courage of his conviction in such an unequivocal and dramatic fashion. With political pundits already speculating on whether or not Mr McCartney will now join up w ith the PLP, Mr Christie said whatever his decision will be, he can be assured of the respect and admiration of very many Bahamians for the step he took today. The PLP will contest every seat in the next general election. That is our intention and that is a declared intention. ButI will also say that we are a party that we characterize as a having a big tent. There is alwaysan open invitation to persons who are interested in being with us to join us, particularly when it appears that the philosophical position they took is similar to the philosophical position that we are taking. Bran McCartney obviously has thought out his own position. He has not consulted me on that matter, even though we have had discussions as MPs, fellow Bahamians, and having common family, so there is a connection there. We leave it entirely to him and his understanding of Bahamian politics to determine for himself the path he must take. Describing the now Independent MP as one of the bright stars in the FNM, Mr Christie said Mr McCartney is a person who many people felt had the greatest future amongst the young members of the FNM. For his part, Mr Christie said that Mr McCartneys resignation is a piercing arrow to the FNM. He has made a major decision of immense implications and he has to make a decision as to the path he is taking. My colleagues around me know, that we are a party that is moving forward and we are moving forward aggressively. And we will respect whatever decision he makes and we wish him well. Throughout this public discussion in our country on the sale of BTC, we have taken the position that it is manifestly not in the interest of the Bahamian people and we ask the government to reconsider its position as opposed to going deeper in it, and even the manner in which the vote was done today was a political event calculated to cause embarrassment. Because we had one member on his way from Exuma, one member on the march, and one member in the Supreme Court. The fact of the matter is though, when it comes to the vote every single PLP MP will use the opportunity to vote No. We will have that opportunity at the conclusion of this debate when we vote on the resolution and we shall vote No. And our Senators in the other place will vote No. The point arising out of this is this is only the beginning and not the conclusion. Because however flippant the other side may be with respect to our commitment, we have made a commitment that when we win the next election this matter will be subjected to the scrutiny of the new government with the principled intention of lawfully taking steps to revert back to the Bahamian position of having ownership of the majority at the very least of the shares of BTC. So this debate is a precursor to a major decision that the people of this country will make, he said. L OCAL NEWS P AGE 10, TUESDAY, MARCH 22, 2011 THE TRIBUNE We certainly regret that Mr McCartney has decided upon this course of action. The party will consider it and we will at some point in the future make a formal statement on the matter. But we do, of course, wish Mr McCartney all the best for the future and we do regret his decision, Mr Bethel said. When asked if he felt the Prime Ministers recent comments had any affect on Mr McCartneys decision, Mr Bethel said absolutely not. If you would have checked the tapes even of this House of Assembly, at the last meeting of the House Mr McCartney and I sat next to each other for most of the morning and we had a very cordial discussion telling jokes and basically being convivial. So any suggestion that any pressure was being brought on Mr McCartney is absolutely untrue. The other letter, Mr Bethel said, was addressed to the party leader Prime Minister Hubert Ingraham. At this time, the FNMs chairman said he would not speculate on the future of the now former FNM MP, and whether or not he would form an alliance with the PLP or form his own political party. He is his own man, he will make his own decisions, he said. In the statement to the FNMs chairman, Mr McCartney said he has been taxed with this decision of determining the best way forward for him and his family for months. It has been difficult, to say the least, facing challenges, which con tradicted my philosophy, convictions and values. I have prayed constantly for an answer to solve this dilemma and my prayers have been answered. I have made a conscience decision to severe my relationship with the Free National Movement. I want to state clearly that this decision is not coded in anyway with animosity or any kind toward the leadership or members of the party, but a decision out of the need to satisfy my conscience. I realise that service above self is the greatest service one can give. I was happy to give my best at the executive level of government. Further, I fully intend to serve the constituents of Bamboo Town by continuing to provide the caliber of representation to which they have become accustomed, he said. The vote on the sale of 51 per cent of BTC continues in the House of Assembly with a resolution for the sale coming by Thursday of this week. were not allowed to congregate on Bay Street in front of Rawson Square. The barricades used to block access to Rawson Square were bound with metal chains and braced with large cement boulders. When will we shake off these chains? We are tired of being chained up; locked up. They chained us before and they have chained us again. This land is our land and we must preserve it for Bahamians, said Bahamian author Eugene Robinson Moore, a participant in the protest. Demonstrators marching under the banner of the Committee to Save BTC for Bahamians, included union members, political supporters from the Progressive Liberal Party, National Development Party and the Workers Party, as well as representatives from non-political groups, such as The demonstration peaked at about 600 people, according to Glenn Miller, assistant commissioner of police. As a young Bahamian of 25, I appreciate seeing the revolutionary fire in an ordinarily passive set of people. I implore people who want change to seek the bigger picture. This is a bigger fight. The people who are the major are not in control and dont have the power to make our own choices, said Robin Lightbourne. Police sources said the application for the demonstration was for Parliament Square, where the bust of Sir Milo Butler is located, and not Rawson Square, where the statue of the Queen is located. Parliament Square was not blocked to protesters, although barricades were set up to channel the protesters down Parliament Street North in order to enter the square. Protesters chose to stay on Bay Street and were spread out around the intersection of Bay Street and Parliament Street. On-looking supporters clapped the demonstrators as they arrived on the scene. When the demonstrators passed the straw market, protest leaders recognised straw vendors on the bull horn, and were cheered i n response. In protest of the police barricades, protesters chanted, open the gates, and sang the Bahamian national anthem. Tanya Roberts, a participant in yesterdays protest, said she would be disappointed if the deal passed in parliament despite the protest; however, she said it should not end there. We cannot give up. We need to band together to continue to march and agitate, she said. Bahamians need to realise the power is in our hands. B ernard Evans, president of the Bahamas Communications and Public Officers Union (BCPOU now and the vote something will happen to derail the sale. He said the movement against the sale of BTC to CWC has ushered in a new way of thinking for Bahamians. As a result of the movement, he said, we are awakening the human spirit. He acknowledged the fact that Bahamians are known to be passive and laid back, and usually only come together for political rallies, Junkanoo and parties. That the BTC opposition was a sustained ando rganised group, he said, indicated any legislative matter after this will come under great scrutiny and will not be able to be pushed down the throats of Bahamians. Dwayne Bain said the government should not look only at the number of protesters at yesterdays demonstration as an indication of those who oppose the sale. Because you don't see as many bodies as we would have liked doesn't mean there is not support. If you listen to the radio, television, small groups, many Bahamians in the wider community do not support this deal, said Mr Bain. The country is split by this issue. The government should want to see the country united. They should want to see unity. This is one of the biggest uproars since the government took office, he said. SEEPAGETWO The sale is unreasonable and not in the best interest of the Bahamas making no commercial sense, he said. Mr Sears also questioned the integrity of the Utilities Regulation and Competition Authority (URCA body, which is supposed to be transparent and non-discriminatory of being biased towards the sale. URCA as a telecommunications regulator has a constitutional obligation of impartiality, he said. Earlier this month, URCA approved CWCs acquisition of a 51 per cent stake in BTC without imposing additional conditions. Mr Sears noted that some URCA senior officials are former employees of CWC. In calling for the commission of inquiry, Mr Sears said it must be held because the deal does not pass the smell test. He added that BTC should be sold to an established telecom munications company that is on the cutting edge of technology. SEEPAGESTWO, THREEANDFIVE FROM page one BTC protesters offended FROM page one CHRISTIE COMMENDS COURAGEOUS MP MP calls for Commission of inquir y into BTC sale approached by another man with a handgun and shot in the head. The victim was taken to hospital but died of his injuries a short time later. According to reports, the second victim was shot in the head shortly after 10pm on Sunday by unknown culprits. Twentyf our-year-old Derick Johnson was at a residence on Bowe Avenue. He was wearing a brown plaid shirt and blue jeans when he was approached by a vehicle. The vehicles occupants opened fire. The fatal shooting was preceded by the stabbing of 20year-old Renaldo DJon Appoleon, who died in the street earlier that morning. The man was attacked with a knife inside a barber shop shortly before 1am. The vehicle fire was report ed shortly before 11pm. Fire services discovered a Cherokee Jeep engulfed in flames on a track road at Dorsette Street. After extinguishing the blaze, officers discovered the body in the rear seat of the jeep. Then, shortly after 11.30pm, a 26-year-old man was shot in the buttocks by a hooded cul prit armed with a handgun. According to reports, the victim, who was walking on Pal metto Avenue near Crooked Island Street, was approached by a man wearing a black hooded jacket. The victim was taken to hospital by ambulance where he is listed in stable condition. In other crime-related matters, police officers arrested a 25-year-old Key West Street resident after they recovered a quantity of ammunition. Police were called to the area after it was reported that gunshots w ere being fired. The ammu nition was recovered after police conducted a search of the 25-year-old shortly after midnight yesterday. Officers of Rapid Strike recovered a handgun with ammunition outside Sids Bar at Baillou Hill Road on Sunday evening. No one was arrested in the matter. Shortly after noon yesterday, Kenuths Electric on Tonique Williams-Darling Highway was robbed by two men, one of whom was allegedly armed with a handgun. The men reported ly robbed the establishment and an employee of cash before fleeing the scene. And around 4.00pm, there was a robbery at Bahama Subs on Baillou Hill Road. Two men, one allegedly armed with a handgun, reportedly robbed the store of an undetermined amount of cash before fleeing. Anyone with any informa tion relating to the murders or any ongoing criminal investiga tion should call police as a matter of urgency at 911 919 or call Crime Stoppers immediately on 328-TIPS (8477 24-y ear-old man is shot dead FROM page one Bran McCartney resigns from FNM FROM page one PLP LEADER Perry Christie


ZWITINA, Libya Associated Press THE INTERNATIONALmilitary intervention in Libya is likely to last "a w hile," a top French official s aid Monday, echoing Moammar Gadhafi's warni ng of a long war ahead as rebels, energized by the strikes on their opponents, s aid they were fighting to r eclaim a city under siege f rom the Libyan leader's forces. B urned-out tanks and pers onnel carriers littered the main desert road leading southwest from Benghazi, the rebel's capital in the east of the country the remains of a pro-Gadhafi force that h ad been besieging the city until it was pounded by intern ational strikes the past two n ights. R ebel fighters in Benghazi h ad now pushed down that highway to the outskirts of the city of Ajdabiya, which pro-Gadhafi forces have surrounded and been pounding with artillery and strikes since last week. The rebels s wept into the nearby oil port of Zwitina, just northeast of the city, which was also the s cene of heavy fighting last w eek though now had b een abandoned by regime forces. There, a power station hit by shelling on Thurs-d ay was still burning, its blackened fuel tank crum pled, with flames and black smoke pouring out. O il prices held above $102 a barrel after the second night of allied strikes in the OPEC nation raised fears ofp rolonged fighting that has already slowed Libyan oil production to a trickle. H enri Guaino, a top advise r to the French president, said two nights of bombing runs and missile attacks had hobbled Libya's air defenses,s talled Gadhafi's troops and all but ended attacks on civilians. A cruise missile late Sunday blasted Gadhafi's residential compound nearhis iconic tent, and fighter jets destroyed a line of tanks m oving on the rebel capital. I t was not known where Gadhafi was when the mis-s ile hit Sunday, but it seemed t o show that he is not safe. Guaino, asked how long the allied efforts would continue, replied simply: "Aw hile yet." The U.N. resolution authorizing international militarya ction in Libya not only sets up a no-fly zone but allows "all necessary measures" to prevent attacks on civilians.S ince the airstrikes began, t he number of civilians flee ing Libya has decreased as Libyans in particular wait out the rapidly changing situa tion, the U.N. refugee agency said Monday. It was a dramatic turn a round in Libya's month-old u pheaval: For 10 days, Gadh afi's forces had been on a triumphant offensive againstt he rebel-held east, driving o pposition fighters back with the overwhelming firepower of tanks, artillery, warplanes and warships. Last week, asr ebels fell back, the stream of civilians crossing into Egypt alone reached 3,000 ad ay. Then, after the no-fly zone was imposed Friday, the number fell to about 1,500 ad ay, said UNHCR spokesw oman Sybella Wilkes. Mohammed Abdul-Mullah, a 38-year-old civil engineer from Benghazi who was fighting with the rebel force, said government troops stopped all resistance aftert he international campaign b egan. "They were running, by foot and in small cars," he said. "The balance hasc hanged a lot. But pro-Gadh afi forces are still strong. They are a professional mili tary and they have good e quipment. Ninety percent of us rebels are civilians, while Gadhafi's people are professional fighters." R ebel fighters descending from Benghazi met no resis tance as they moved to the outskirts of Ajdabiya. In a field of dunes several miles (kilometers a round 150 fighters massed. Some stood on the dunes with binoculars to survey the positions of pro-Gadhafif orces sealing off the e ntrances of the city. Ajd abiya itself was visible, black smoke rising, apparentlyf rom fires burning from fight ing in recent days. "There are five Gadhafi tanks and eight rocketl aunchers behind those trees and lots of 4x4s," said one rebel fighter, Fathi Obeidi, standing on a dune and pointing at a line of trees between his position and the city. G hadafi forces have ringed t he city's entrance and were battling with opposition fighters inside, rebels said. The plan is for the rebel forces from Benghazi "to pinch" the regime troops while "those inside will push out," Obeidi said. New fighting also broke out Monday in Misrata, the last rebel-held city in west ern Libya, according to reports from Al-Jazeera and Al-Arabiya. In Cairo, a group of Libyans angry at the inter national intervention in their homeland blocked the path of U.N. Secretary-General Ban Ki-moon following his meeting at the Arab League on Monday. Ban had finished talks with the Arab League chief Amr Moussa and left the organization's headquarters in Cairo to walk around nearby Tahrir Square, the center piece of Egyptian uprising that last month toppled Hosni Mubarak, when dozens of Libyan protesters converged on him and his security detail. The Libyans, carrying pic tures of Gadhafi and banners critical of the United States and United Nation, blocked Ban's path, forcing him to return to the league and leave from another exit. The resolution makes Gadhafi's forces potential targets for U.S. and Euro pean strikes. U.S., British and French planes went after tanks head ed toward Benghazi, in the opposition-held eastern half of the country. On Sunday, at least seven demolished tanks smoldered in a field 12 miles (20 kilometers Benghazi, many of them with t heir turrets and treads blown off, alongside charred armored personnel carriers, jeeps and SUVs of the kindu sed by Gadhafi fighters. T he U.S. military, for now at the lead of the interna tional campaign, is trying to w alk a fine line over the end game of the assault. It is avoiding for now any appearance that it aims to take outG adhafi or help the rebels oust him, instead limiting its stated goals to protecting civilians. Britain also is treading carefully. Foreign Secretary William Hague refused Mond ay to say if Gadhafi would o r could be assassinated, insisting he would not "get drawn into details about what or whom may be targeted." "I'm not going to speculate on the targets," Hague said in a heated interview with BBC radio. "That depends on the circumstances at the time." A military official said Air Force B-2 stealth bombers flew 25 hours in a round trip from Whiteman Air Force Base in Missouri and dropped 45 2,000-pound bombs. What happens if rebel forces eventually go on the offensive against Gadhafi's troops remains unclear. Rebels defended their sup port of the international intervention into Libya apparently feeling the sting of criticism from other Libyans and Arabs who warned the country could be divided or collapse into a civil war. "Libya will not turn into Somalia or Iraq. It will not be divided. We are battling the Libyan people are battling a gang of mercenaries," Mohammed al-Misrati, a rebel spokesman in the stronghold of Misrata, told Al-Jazeera on Monday. U.S. Defense Secretary Robert Gates said late Sunday that the U.S. expects turn over control of the oper ation to a coalition headed by France, Britain or NATO "in a matter of days," reflect ing concern that the U.S. military was stretched thin by its current missions. Turkey was blocking NATO action, which requires agreement by all 28 members of the alliance. I NTERNATIONAL NEWS P AGE 12, TUESDAY, MARCH 22, 2011 THE TRIBUNE affordable terms swift response down payment as low as 5%*all of the above*with mortgage indemnity insuranceown the home of your dreams A MBESTA-ExcellentFinancialStrengthRating call our morgage department today at (242396-4040 (Nassau242Freeport A SUBSIDIARY OFNASSAU I FREEPORT I ABACO I ELEUTHERA I EXUMA I FINANCIAL CENTRE I CORPORATE CENTRE I Libya action could last while, official says THIS PHOTO provided Monday, March 21, 2011 by the French army shows a pilot exiting a Mirage 2000 jet fighter on the Solenzara air base after a mission to Libya, Corsica island, Mediterranean sea, Sunday March, 20, 2011. France has sent about 15 planes to eastern Libya on Sunday, French military spokesman Thierry Burkhard said, and said no civilian casualties have been reported by French forces in the region. (AP IN THIS IMAGE provided by the French Defense Ministry, a French pilot i s seen aboard a Mirage 2000 jet fighter before a mission to Libya, at S olenzara air base, Corsica island, Mediterranean Sea, Monday. (AP A LIBYAN r ebel patrols the front line of the outskirts of the city of Ajdabiya, south of Benghazi, east-e rn Libya, Monday, March 21, 2011. The international military intervention in Libya is likely to last "a while," a top French official said Monday, echoing Moammar Gadhafi's warning of a long war ahead as rebels, energized by thes trikes on their opponents, said they were fighting to reclaim a city under siege from the Libyan lead-e r's forces. (AP


SECTIONB TUESDAY, MARCH 22, 2011 THETRIBUNE $4. 68 $4. 51 $4. 69The information contained is from a third party and The Tribune can not be held responsible for errors and/or omission f rom the daily report.$ $5.10 $5.12 $4.72 n!" rnn tnrf n!nnr By NEIL HARTNELL Tribune Business Editor The two rejected bidders i n the last Bahamas Telecommunications Com pany (BTC r ound offered purchase prices for a 51 per cent controlling stake that were $64 million and $37 million lower, respectively, thant he $217 million sum (sales price plus Stamp Duty) set to be paid by Cable & Wireless Communications (CWC A ccording to documents tabled by the Government in the House of Assembly yesterday, the offer submitted by One Equity Part ners, JP Morgans private equity arm, and its operating partner, Vodafone, was estimated at between $160-$180 million, while the bid from Atlantic TeleNetwork/CFAL was for $153 million. Both prices were assumed to be gross offers, meaning Rival BTC bids $37-$64 million below CWC s SEE page 5B By NEIL HARTNELL T ribune Business Editor The Bahamas Telecom munications Company (BTCh ave paid little to no tax or fees to the Government had Bluewater Ventures successfully closed its $260 million purchase of a 49 perc ent stake in the stateowned incumbent, docu ments tabled in the House LITTLE T O N O TAX FROM BLUEWATER BTC PURCHASE Wanted full five year duty waiver on equipment imports, with government agreeable to3 3%, three-year drop Christie government s buyer wanted to close existing BTC employee pension plan, with PLP also agreeing to fund deficit* Suggestion share pledge showed Bluewater planned leverage buyout Six-year monopolies on cellular and landline sought SEE page 6B By NEIL HARTNELL T ribune Business Editor G rowth in the sale of illegal alcohol imports represents the largest singlet hreat to sales growth at the Commonwealth Brewe ry group, the memorandum for the $62.5 million initial public offering (IPOr eveals, with this segment estimated to account for 1520 per cent of all alcohol sales in the Bahamas. Setting aside the economi c downturns impact on Commonwealth Breweryst op-line, the company said: Management believes the growth of the illegal ParallelM arket in the country presents the largest single threat to sales growth. These i mports shipped in illegally from the United States to a void Customs duties are estimated to represent 1520 per cent of the alcoholicb everage industry in the country. These combined e vents have placed downward pressure on volume and, as a result, the net saleso f the Commonwealth Brewery group. On a regional basis, both New Providence and Grand Bahama witnessed a rev-e nue decline in 2010. The other islands category,w hich represents approximately 30 per cent of total revenue, was down 6 perc ent in 2010, ending the year at $34 million, down from $36 million in 2009. Comm onwealth Brewery management again attributes this d rop to the development and expansion of the illegal Parallel Market. T he offering memorandum, released yesterday, a lso disclosed that Kalik is the only beer brand to have enjoyed sales growth inr ecent years, with its sales now accounting for 23 per cent of the Commonwealth Brewery groups total sales. The company added that w hile beer remains the main contributor to the groupsb ottom line, spirits sales were rising. Management Illegal alcohol sales 1520% of Bahamas market n IPO offering document describes this as companys greatest threat n Kalik now best-selling brand for Commonwealth, accounting for 23% of total sales n H eineken gets Know How fee of 0.4% of net sales SEE page 4B By NEIL HARTNELL Tribune Business Editor and ALISON LOWE Tribune Business Reporter The Government is mak i ng inquiries about the possible purchase of the SG Hambros building on West Bay Street, near Cable Beach, a minister confirmed yesterday, as sources close to the matter suggested the proper-t y would be used to house g overnment departments relocated from the Cecil-Wallace Whitfield Building. Minister of State for Finance, Zhivargo Laing, con firmed to Tribune Business that the Government has an interest in the building but declined to go into details. Some inquiries are being made but I cannot comment on anything further at this time, said Mr Laing. A message left for SG Hambros Managing Director, Dorothy Hilton, seeking comment on the matter, was not returned up to press time. However, Tribune Business has been informed by sources who requested anonymity that SG Hambros staff were MINIS TER C ONFIRMS INQUIRIES ON $1 8M HAMBR OS PR OPER T Y Zhivargo Laing SEE page 4B By NEIL HARTNELL T ribune Business Editor The Bahamas International Secur ities Exchanges (BISX utive yesterday pledged that it would r eview the equities markets structure and pricing mechanism this year, particularly the 1,000 sharest raded threshold that triggers changes in a stocks closing price. We entirely intend to review the 1,000 share limit, Keith Davies told Tribune Business in an interview. One of the things we explained to members many yearsa go is that we needed some history behind us, and information as to what the average movement for symbol [stock] was over a certain period of time to see where that number should be, or if it should be removed. Currently, a minimum 1,000 shares must be traded to i nduce a change in the closing price of a BISX-listed stock, with a weighted average based on the volume of BISX pledges market review during 2011 1,000 share trade threshold to come under particular scrutiny KEITHDAVIES SEE page 4B B y NEIL HARTNELL Tribune Business Editor C ommonwealth Brewery has averaged a bettert han 60 per cent success rate in meeting key indicators such as profitability,i ts $62.5 million initial public offering (IPO r andum has revealed, although wholesale and retail drinks revenues haveb een on a 3 per cent per annum declining trend since 2008. Assessing the recessions impact on the groupsf inancial performance, the offering memorandum said Commonwealth Breweryst otal sales volumes had been especially challenged, w ith year-on-year volumes falling by 5 per cent in 2009, from 213,000 hec-t olitres to 203,000 hectolitres. And the pace oft his decline increased in 2010, with an 8 per cent Brewers better than 60% target achievement rate SEE page 7B


B y the time you read this article, the great Parliamentary debate on the sale of theB ahamas Telecommunica tions Company (BTC in full swing. I suspect the lucid details of the previous Bluewater deal will have been revealed, and additional information about Cable andW ireless Communications ( C&W), both positive and negative, made public. The PLP is not denying that it was going to sell to Bluewater, and the FNM will sell to C&W. Notwithstanding this, I was amazed to hear a PLP supporter say the Bluewater deal is irrelevant because it did not go through in the endeven though the PLP would have sold BTC to Bluewater if it had more time. I find this to be a most interesting position indeed. Comparison A head-to-head compari son of both deals would give the Bahamian people great insight into not only the deals themselves but also into judgment, competence and the skills of the respective admin istrations to negotiate such transactions, in the best interest of the Bahamian people. Remember now, BTC is only the first of many privatisations that will undoubtedly occur in the Bahamas. Positions The unions seem to be tak ing the position: Privatisa tion yes, C&W no. From what I can gather there seem to be two underlying sub-positions. The first position is that C&W may not be a fit oper ator, and the second position is that BTC should only be sold to Bahamians. On the first position, the unions need to put their case to theor membership and the Bahamian public at large. Yes, somebody needs to explain how C&W got to the table after not having initially submitted a bid. To the objective observer that is still a question mark. However, in the final analysis it does not seem that this position (C&W being unfit garnered widespread or sufficient traction thus far to make the population at large vocally and tangibly lend its support to this particular point. The second position regarding the sale of BTC to Bahamians is an emotional one. If Bahamians meet the established criteria, then they should have every opportuni ty to purchase BTC. We were told that there were groups with Bahamian interests bidding for BTC. The Bahamian people should be told why these groups were eliminated. Hopefully, such explanations will produce learning points that would make future Bahamian bids even stronger. The fact that a Bahamianled bid is not the finalist does not in any way invalidate the entire privatisation process, but at a minimum there should be a clear articulation of the shortfalls of such a bid. Further, just because a bid is a Bahamian bid does not automatically mean its acceptance is in the best interest of the nation. Hopefully, this position will be put to bed during the debate. Public Discussion There is a view being advanced that there was no public discussion regarding the privatisation process. I reject this view because, if I am not mistaken, previous manifestos of both the FNM and PLP highlighted privatisation as a key and fundamental policy to be pursued if elected. For those unaware: A man ifesto is a public declaration of principles and intentions, often political in nature. Therefore, if there was insufficient public discussion then there was a collective failure on behalf of the Government pursuing a privatisation agenda, the official oppo sition, the free press, the collective union movement and civil society organisationsa full and complete system failure. People tend to forget that the privatisation journey began in 1992. All parties mentioned above had almost 20 years to develop, refine and put their position on this all-important matter to the Bahamian people. However, I would concede that within the privatisation process, there must be provisions to ensure job and training opportunities for Bahamian professionals down the road. We need to maintain jobs in the Bahamas, and Bahamians must have opportunities within the larger operations of the acquiring organisations. Outcome There is a lot of specula tion going around town that there will be dissension when it comes time to vote on the resolution. I predict that every FNM Member of Parliament will vote for the resolution, and every PLP Member and the newly independent Member for Bamboo Town will vote against it. In other words, every single Member of Parliament (except Branville McCartney will toe the party line and it will be much ado about nothing. The only possible wildcard to this scenario is if you get 15,000 or more people in Rawson Square expressing their opposition to the sale of BTC. So far, the numbers have been nowhere near these required levels. Without a truly legitimate number of demonstrators against the resolution, there will be no re-think. The Bahamian people have a right to access the relevant information leading to this most important decision. This is indeed the essence of fairness, transparency and accountabilityideals that all political parties claim to adhere to. Until next week NB: Larry R. Gibson, a Chartered Financial Analyst, is vice-president pensions, Colonial Pensions Services (Bahamas subsidiary of Colonial Group International, which owns Atlantic Medical Insurance and is a major shareholder of Security & General Insurance Company in The Bahamas. The views expressed are those of the author and do not necessarily represent those of Colonial Group International or any of its subsidiary and/or affiliated com panies. Please direct any questions or comments to "mailto:Larry.Gibson@atlanti" Larry.Gib BUSINESS PAGE 2B, TUESDAY, MARCH 22, 2011 THE TRIBUNE BTC debate must provide complete transparency Financial Focus By Larry Gibson Bahamas Realty has won two Leading Real Estate Companies of the World Awards. The awards were presented on March 9 at the 2011 Conference of Leading Real Estate Companies of the World at The Cosmopolitan of Las Vegas in Nevada. Bahamas Realty was named the Top International Luxury Brokerage by Luxury Portfolio International. The award is presented to the firm based outside the US that epitomises the quality, strength and luxury market expertise synonymous with the Luxury Portfolio brand. In addition, the Bahamian realtor received the First Place Award in its category for Luxury Portfolio Marketing. This award recognises the company that best uses the Luxury Portfolio branding in the marketing of its luxury properties, and in the quality of its marketing materials. Bahamas Realty chief executive, Larry Roberts, attributed much of the success for winning the awards to the job that the companys marketing coordinator, Kendenique Moxey, is doing in capitalising on the resources of the Luxury Portfolio brand. Bahamas Realty is the Bahamian representative of Leading Real Estate Companies of the World, the network of more than 600 premier locally-branded firms, which is represented by 5,000 offices and 150,000 associates in more than 30 countries, producing $250 billion in annual home sales. REALTOR WINS TOP GLOBAL HONOURS Bahamas Realtys chief executive was a speaker at the 2011 Leading Real Estate Companies of the World conference on March 8-10, at The Cosmopolitan of Las Vegas in Nevada. The topic of discussion, in which Larry Roberts was one of the panellists, was R eal Estate Without Borders. Are you ready? China, and the expansion of its business interests worldwide, featured greatly in the session, so Mr Roberts gave an overview of the $2.6 billion Baha Mar development that has recently broken ground on Cable Beach. The development is being financed by the China Export-Import Bank, and is being built by the China State Construction & Engineering Company. The resort is scheduled for completion in 2014. Some 800 top real estate brokers, managers, relocation professionals, sponsors and guests attended the conference from the US and eight countries around the world. The week-long series of four conferences in one boasted over 150 speakers from within the real estate industry and beyond, who addressed a broad range of topics relating to real estate management, technology, marketing and business development. B AHAMAS REAL TY CHIEF SPEAKER AT KEY CONFERENCE WINNINGSMILES: Kendenique Moxey, marketing coordinator, Bahamas Realty; Paul Boomsma, president of Luxury Portfolio and chief operating officer of Leading Real Estate Companies of the World; Larry Roberts, chief executive of Bahamas Realty. AWARDED: Harold Crye, chairman of Leading Real Estate Companies of the World; Larry Roberts, chief executive of Bahamas Realty. PROTESTING: The BTC deal protest yesterday outside Parliament.


BUSINESS THE TRIBUNE TUESDAY, MARCH 22, 2011, PAGE 3B 326,7,21$9$,/$%/('HVNWRSDQG\VWHPV(QJLQHHU,QIRUPDWLRQHFKQRORJ\(%DQN7UXVW%DKDPDVf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f $ELOLW\WRXVHV\VWHPGHSOR\PHQWWRROV /DQJXDJHVNLOOV ([FHOOHQWYHUEDODQGZULWWHQFRPPXQLFDWLRQVNLOOV)OXHQF\LQ(QJOLVK )OXHQF\LQ)UHQFKDQGSDQLVKLQZULWWHQDQGVSRNHQIRUPZRXOGEHDQDVVHW ,QWHUHVWHGDQGTXDOLHGDSSOLFDQWVPXVWVXEPLWDSSOLFDWLRQVE\VW (UXVW%DKDPDVf/WG $WWQ+XPDQHVRXUFHVDQDJHU H'HVNWRSDQG\VWHPV(QJLQHHUf &HQWUHRI&RPPHUFHQG)ORRU 2QH%D\WUHHW 3 1DVVDXKH%DKDPDV 127,&( 6,5/<1'(1,1'/,1*(67$7(6 )250(5/<,1(:22'*$5'(16 ,,%',9,6,21 7KLV1RWLFHVHUYHVWRDGYLVHWKHJHQHUDOSXEOLFWKDWORWV ZLWKLQWKHIROORZLQJEORFNVSXUSRUWHGO\VROGDVORWVZLWKLQ DVVDX9LOODJH IRUPSDUWRIWKH6LU/\QGHQ3LQGOLQJ (VWDWHV6XEGLYLVLRQIRUPHUO\&HGDU*URYHVLQHZRRG *DUGHQV,,fDQGDUHWKHSURSHUW\RI$UDZDN+RPHV /LPLWHG 7KHVH%ORFNVDUH 7KHJHQHUDOSXEOLFLVIXUWKHUDGYLVHGWREHZDUHRISXUFKDVLQJ DQ\ORWVLQWKHDERYH%ORFNVXQOHVVWKHODQGLVGHVFULEHGDV EHLQJLQWKH6LU/\QGHQ3LQGOLQJ(VWDWHV6XEGLYLVLRQDQG LVEHLQJSXUFKDVHGIURP$UDZDN+RPHVOLPLWHGRUIURP D SHUVRQRUHQWLW\ZKLFKSXUFKDVHGIURP$UDZDN+RPHV /LPLWHG2WKHUZLVHWKHVHOOHUVfDUHQRWWKHRZQHUVRIWKH ODQG ,I\RXKDYHSXUSRUWHGO\SXUFKDVHGDQ\ORWVfZLWKLQWKH DERYHPHQWLRQHGEORFNV\RXDUDGYLVHGWRLPPHGLDWHO\ VHHNSURSHUDQGLQGHSHQGHQWOHJDODGYLFHIURP UHSXWDEOHODZUPRUDWWRUQH\ 6KRXOG\RXKDYHDQ\TXHVWLRQVSOHDVHFRQWDFW \ \ T S *(1(5$//(*$/&2816(/ $5$:$.+20(6/,0,7(' 3 1$66$8%$+$0$6 By ALISON LOWE Business Reporter Bunker surcharge increases unveiled yesterday by major shippers serving the Bahamas have retailers and wholesalers warning they will have to pass the extra financial burden on to consumers in the not too distant future. While Phil Lightbourne, proprietor of Phils Food Services on Gladstone Road, said he would seek to mitigate the impact of the announced increases by Crowley Maritime and Seaboard Marine through negotiating with shippers who will be keen to keep his high volume business, he warned that some in-store price increases should be expected by consumers in light of the rise in the bunker surcharge announced by the two companies last Friday. Meanwhile, Robert DAlbenas, managing director of DAlbenas agencies, said that not just Crowley Maritime and Seaboard Marine, but most of the shipping companies, have implemented price rises affecting some portion of their shipping costs in recent times. Add this to the increasing cost of manufactured goods, which rise as the companies which produce them feel their costs grow, and Bahamian retailers and wholesalers will not be able to continue to absorb the cost increases for much longer, said Mr DAlbenas. The fact that fuel increases affect the shipping portion is one aspect of it (any decision by local wholesalers and retailers to raise the prices they charge consumers), but the other aspect is the fuel increases also affect the manufacturers, so their costs go up. I think we will see manufacturers increases their prices, too, said Mr DAlbenas. Crowley Maritime and Seaboard Marine, members of the Florida-Bahamas Shipowners and Operators Association, announced a two-step increase in bunker surcharges that will take effect on April 17 and May 8. The carriers said they were announcing the two-step increases early for planning purposes. They said the increases were required by "the current unpredictable and rapid escalation in fuel prices. The surcharge on 20-foot containers will increase $75 on April 17, and another $50 on May 11. The surcharge of 40-foot containers will go up $150 on April 17, and another $100 on May 8. The surcharge on equipment larger than 40 feet will increase by $169 on April 17, and another $113 on May 8. The increases come on top of the increase in fuel surcharges the association implemented on February 20. The bunker surcharge represents the floating part of sea freight charges which is an addition due to oil prices. Mr Lightbourne described the rises as very, very significant, although likely to hit smaller importers harder than himself, as he can use the volume of importation he does as leverage to negotiate rates with shipping companies. If we stick with one steam line they tend to give us a little break, but it will cause some prices to go up, said Mr Lightbourne. He said that Phils Food Services does roughly around 10 per cent of its business with Crowley Maritime and a smaller percentage with Seaboard. An accountant for another major Bahamian retailer, who commented anonymously yesterday, said his company will also not be able to absorb the cost of the rise. Obviously, everyones got to pass it on. Its nothing we or the Bahamas can do anything about. If the cost of importing goods increases then thats just what you do. Were not going to profit from it but we cant absorb it, said the senior employee. Price rises loom from shipping surcharge rise By ALISON LOWE Business Reporter The Central Bank of the Bahamas is very closely monitoring commercial banks as loan delinquency continues to rise, its gove rnor suggesting it is very important for overall financial stability that banks make the necessary provisions for credit loss. Answering questions at the World Banking Institutes Conference y esterday, which is being hosted in the Bahamas for the first time, W endy Craigg, said the bank the regulator of the banks and t rust companies sector is having ongoing dialogue with financial institutions about the deteriorating credit quality being seen in t he industry. Certainly this is something that has come to our attention and we are monitoring it very closely. I cant say that [the banks] havent been provisioning. Its very important for us and for overall financial stability that the banks are m aking appropriate provisions, and that the capital is being maint ained to support the business, and so this is something we are f ocusing on very closely, said Ms Craigg. She spoke in response to a question from a member of the audience at the WBIC, where representatives of banking institutes from 14 countries, including the Bahamas, have gathered at the Atlantis resort on Paradise Island. B anking institutes promote training and further education for bankers, as part of an overall strategy to encourage the development and growth of the financial services sector. An audience member at the event, which began yesterday and c ontinues today, asked the Governor if the Central Bank of The Bahamas was taking any special steps to determine the accuracy of loan provisioning and collateral adequacy in light of rising l evels of bad credit in the Bahamas, as increasing numbers of borrowers fail to make expected payments. T he banking conference participant suggested there appears to be a lot of pressure for senior managers to stray from good cor porate governance when it comes to such provisions. H is query came after Ms Craigg spoke on the topic of trust and accountability from a regulatory perspective. She said t he Central Bank of the Bahamas has placed special emphasis on promoting good corporate governance in the wake of the recent financial cri-s is, as a means of minimising the likelihood of bank failures andc onsequent risk to the public. Go v er nance We have high expectations f or the governance of banks. By their very nature banks pose special risks to the broader economy. They perform a crucial role in the flow of capital, providing f inancing for businesses and other services and are integral to the payment system. They must operate in a way that promotes confidence amongst the public and their primary shareholders. A lack of sound governance can lead to bank failures, impose a significant public cost and have a contagion risk with broader public consequences and a a loss of public confidence in these institutions ability to manage their affairs... Good corporate governance is important to maintaining a s ound and stable financial system and a robust economy, said Ms Craigg. A mong the ways in which the Central Bank of the Bahamas promotes good corporate governance in Bahamas-based banks is t hrough providing guidance mostly based on best international practices; evaluating the implementation of those guidelines; and by maintaining an ongoing dialogue with a banks Board of Direct ors and senior management, bringing any issues to the attention of those groups so it can be addressed. As regulators we cant prevent all problems. We dont have the resources, nor is it feasible for us to check everything. So it is i mportant that there is a corporate governance structure that works and that there is the necessary accountability and checks and balances to enhance our confidence that these institutions areb eing operated prudently, said the Governor. Earlier this month a senior Bahamian banking executive yesterday said it was likely the Bahamian financial services sector would "hit" the 20 per cent loan delinquency threshold, after credit arrears rose by $52.2 million or 4.6 per cent to almost $1.2 billion during January 2011. P aul McWeeney, Bank of the Bahamas International's managing director, suggested the industry faces the prospect of "living with" these numbers for at least another two years. H is comments came as total delinquencies rose by $31.7 million or 12.4 per cent to $286.9 million in January 2011, with commercial loans 31-90 days past due growing by $22.9 million or 36.3 per cent. Non-performing commercial loans, which are 90 days or more p ast due, and upon which banks stop accruing interest, rose by $8.8 million or 4.6 per cent. There are some $1.217 billion in outstanding Bahamian dollar a nd foreign currency loans outstanding, so commercial loan delinquencies are now approaching 25 per cent meaning $1 out of every $4 extended as commercial credit is in default. Regulator closely watches bad loans W ENDY CRAIGG


believes this trend to be cons istent with consumer behaviour in other markets during economic downturns, which is to consume lowerc ost per unit of alcohol beverages, the offering memorandum said. Within the portfolio, the Heineken brand has exper ienced the most significant decline. Nonetheless, the brand continues to represent1 7 per cent of the Commonwealth Brewery Groups o verall volume. Kalik is the only beer brand that has enjoyed salesg rowth over the period, due in part to increased marketing activities targeted at spe-c ific cultural events as well as increased export to the US, where it has recently been introduced into seven new markets. Kalik now represents a greater share of the companys portfolio (23 per cent Heineken. Guinness and non-alcoholic beverages both account for 16 per cent of Commonwealth Brewerys total sales by brand, withs pirits generating 11 per c ent; wines 6 per cent; imported beer, 10 per cent;a nd other beer, 1 per cent. T he offering memorand um also gave extensive details on CommonwealthB rewerys related party t ransactions with 75 per cent m ajority shareholder, Heineken BV, particularlyt he switch from an annual management fee to a know how fee that is paid by the company to the international brewing giant. In relation to the marketing, brand support, finance, tax and accounting services p rovided by Heineken, the offering memorandum said: In exchange for these serv ices, the Commonwealth Brewery group paid a fixed management fee of $850,000 per annum to Heineken. As of June 30, 201o, this management fee was changed to a Know How f ee of 0.4 per cent of the c onsolidated net sales. From J anuary through June 2010, Commonwealth Brewery paid $325,000 of the $ 850,000 fee, and $297,000 from June through Decemb er under the new arrangement. As for other agreements, r elating to transportation, bottling, licensing and trademark use, a management agreement with Heinekenw as changed to allow for the p ayment of a lower fee by C ommonwealth Brewery. T his reduced the payment t o $725,747 in 2010, comp ared to $864,630 in 2009 and $1.17 million in 2008. Supply chain fees paid to Heineken fell from $220,149 in 2009 to $145,658 in 2010, having reached at $161,240 in 2008. Looking ahead, the Commonwealth Brewery offering memorandum said: Worldwide consumption ofb eer has increased by 2-3 per cent over the past couple o f years, driven mainly by developing markets. Mana gement believes that local e conomic recovery will occur albeit slowly and w ill result in moderate volu me growth for the compan y...... Despite substantial financ ial challenges over the past several years, Commonwealth Brewery continues t o distribute a substantial proportion of its net income t o shareholders. Using a market value as directed by this offering namely $249.9m illion and applying the 100 per cent net income divi dend payout policy for C ommonwealth Brewery o ver the past three years, the company would have had a dividend yield of 4.5 p er cent to a high of 7.7 per c ent. This compares favourably to the average yield of 3-4 per cent among listed stocks in the Bahamas. 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Stock prices are also restricted from moving more than 10 per cent either side oft he previous days close. Indicating that certain BISX-listed stocks, with broad shareholder bases, had enough liquidity and trading volume/activity to possibly make the ,000 shares traded threshold irrelevant, Mr Davies said the market structure r eview would take place in conjunction with the exchanges m embers. Structure We will be looking at this market structure again, and doing it this year in conjunction with our members, as we are required to so, and with leave from the Securities Commission at the end of the day, Mr Davies told TribuneB usiness. He added that even the larger Caribbean regional markets, s uch as Barbados, Trinidad and Jamaica, were also plagued by relatively low trading volumes and liquidity, pointing o ut that this was bound to be a fact of life in small countries such as the Bahamas. In response to complaints that low liquidity levels were depressing BISX share prices below their true value, with prices being influences by retail investors selling out for non-financial reasons, Mr Davies said most Bahamian stocks had appreciated upwards over time, especially those that w ere well-managed and generated strong profitability. FROM page 1B informed in a meeting on Friday that the Government was set to purchase the property for $18 million, and the bank would eventually relocate to rented office premises. SG Hambros has downsized its operations slowly over the years, and is said to no longer need an office of that size, which sources suggested would be perfect for an Office of the Prime Minister given its existing facilities, parking space and available land. The $18 million purchase price is also similar to the sum that Baha Mar is paying the Government to acquire the exist ing Cecil Wallace Whitfield building. MINIS TER C ONFIRMS INQUIRIES ON $18M HAMBROS PROPERTY FROM page 1B


that they included Stamp Duty, while the One Equity Partners/Vodafone price was estimated becauset heir offer only mentioned a multiple range of 4.25-5 times sustainable EBITDA[ operating income]. Julian Francis, BTCs e xecutive chairman and a key player on the privatisation committee that ulti m ately recommended CWC as the preferred BTC strategic partner, previously told Tribune Business that while the One EquityP artners/Vodafone bid was looked at as the front runner among the four players who qualified for the extended due diligencep hase, it was ultimately rejected because the duo were unable or unwilling to structure a deal where Vodafone had a significant equity stake. Concerned Despite having 303 million subscribers worldwide, along with $69.3 billion in revenues and $24.5 billionin operating income, Vodafones business is concentrated mainly on the cellular/wireless side, and without a major ownership interest in the BTC bid, the privatisation committee is understood to have been concerned about whether the UK-based company would remain involved in the Bahamas long-term. Indeed, financing for the One Equity Partners/Voda fone bid was to be 90 per cent-plus provided by the JP Morgan private equity fund, with Vodafone having minimal equity, although one advantage was that no debt financing was required. In other words, there were concerns about whether Vodafone could vanish almost overnight, leaving BTC without the financial, technical and managerial resources it needed. The pri vatisation committee is also likely to have harboured questions over whether Vodafone, as a management rather than ownership partner, would bring the required focus to BTC. In the documents tabled by the Government yester day, it was confirmed that Vodafone Partner Markets would have received a man agement contract to run B TC. While no financial terms were set out in the One Equity Partners/Vodafone bid document, the Government said these werel ikely to come at a significant cost. Meanwhile, the Atlantic T ele-Network/CFAL bid was the only one to have a B ahamian component in the shape of Colinas investment advisory arm. Mr Francish ad previously told Tribune Business that while he took his hat off to CFAL, the bid was ultimately rejected because Atlantic Tele-Net-w ork was considered too small a strategic partner. BTC, the executive chairman added, should be acquiring Atlantic Tele-Net-w ork, not the other way around. There is some justification in that comment, for Atlantic Tele-Network, despite having 1.2 million subscribers, generated only $242 million in revenues in 2009, almost $120 million than BTCs $361 million. Atlantic Tele-Networks $70 million in operating income for that year, though, was closer to BTCs. A round 90 per cent of the financing for this bid was to come from Atlantic TeleNetwork, with the remain ing 10-15 per cent set to c ome via CFAL and Bahamian investors. This financing, though, was dependent on an existing and new loan facility with a ccordion feature, and Atlantic Tele-Network would have received a man a gement contract worth 3-4 per cent of BTCs annual gross revenues. Agreements That latter sum is greater than the 2 per cent of grossr evenues which CWC will receive from support services, know how and trade mark agreements, plus a cost-based fee for certain support services. One advantage of the Atlantic TeleNetwork/CFAL bid was that it was willing to liberalise the cellular market earlier than CWC, insisting only ona two-year post-privatisation monopoly before a rival licence is issued, compared to the three years CWC will h ave prior to the start of such a bidding process. One Equity Partners and Vodafone, in contrast, want ed a four-year exclusivity on c ellular. And the other major dif ference between CWCs bid a nd the two rejected offers was that both the latter had serious reservations with the transfer of share restrictions, neither being will i ng to accept hardly any proposed by Government. In contrast, CWC has agreed that it cannot sell or transfer any of its 51 perc ent majority stake for five years post-privatisation. Once that deadline is met, the Government has the right of first refusal, and if itd oes not take this up then CWC has the right to sell to another established telecommunications company. Elsewhere, there were many similarities between the CWC offer and the two rejected bids, all basing their submissions on the Government receiving $11 million per annum in communications fees from BTC, plus 3 per cent of revenues. BUSINESS THE TRIBUNE TUESDAY, MARCH 22, 2011, PAGE 5B By ALISON LOWE Business Reporter The supervisory and regulatory pract ices in place in the Bahamas financial services sector may be superior to those in developed nations, where the demand for the implementation of such initiatives first arose, the Attorney General yesterday told a gathering of international bankers. J ohn Delaney QC, also Minister of Legal Affairs, said the Bahamas is today comp etitively placed as a respected (financial s ervices) jurisdiction in this new environm ent, with an opportunity to do well without apology. He was addressing the World Banking Institutes Conference as its keynote speaker. The event, which has attracted partici-p ants from 14 countries, including the B ahamas, began yesterday and continues t oday at the Atlantis resort, Paradise Island. Mr Delaney, a former director of the Bahamas Financial Services Board (BFSB s aid: In the last decade, we have undert aken the most comprehensive reform of o ur financial services sector ever, in order to ensure compliance with a new regulatory and supervisory architecture, which was ther esult of three distinct global initiatives. We do recognise that the reforms under taken added a greater complexity to the sector, but we have no doubt now that the sector is substantially more robust, and that the welfare of the users of its services and, indeed, the welfare of the broader economy have been considerably enhanced. We are proud of the progress we have made in responding to these global initiat ives, but we note, with more than passing interest, that in comparison to some of the industrial jurisdictions where the demandf or the initiatives arose, our own supervisor y and regulatory practices may be superior. Mr Delaney said the Government believes the greatest contribution it can make to the financial services sector in the Bahamas is to enable, as much as possible, the creation oft he most progressive financial services environment. He noted that the introduction of e-government, set to be launched in the middle oft his year, and the imminent privatisation of t he government-owned telecommunications provider factor into this effort. Without cost-efficient, comprehensive a nd state-of-the-art telecommunications, the g oal of becoming a networked society with a rapidly developing e-business sector would be unattainable. Our liberalised telecommunications sec t or policy is already in place, and so with the imminent privatisation of BTC we will have fully positioned ourselves to support our commercial competitiveness in this techno-l ogical revolution which continues to unfold, said Mr Delaney. Bahamas regulation beats top countries FROM page 1B Rival BTC bids $37-$64 million below CWCs JOHN DELANEY N EW YORK Treasurys slipped Monday after the government announced plans to start selling $142 billion in mortgage bonds and worries about Japan started to fade. The Treasury said that it will sell up to $10 billion of mortgagebacked bonds each month beginning in March. The Monday announcement marks another step by the government to end emergency programs launched in 2008 and 2009 to help markets t hrough the financial crisis. The sales also add to the supply of government-backed bonds in the market and could draw investors away from lower-paying Treasurys. In afternoon trading, the 10-year Treasury note fell 50 cents per $100 invested. Its yield rose to 3.33 percent from 3.27 percent late Friday. Bond yields rise when prices fall. As fears about Japan's stricken nuclear reactors eased, investors didn't feel the need to stock up on Treasury bonds. The Nuclear R egulatory Commission said the situation at the Fukushima Daiichi plant appeared to be stabilizing. Containment at three of the plant's six reactors was intact, the commission said. The price on the 30-year bond fell 56.2 cents. Its yield rose to 4.45 percent from 4.42 percent. TREASURYS FALL ON NEWS OF MORTGAGE-BOND SALE



MIAMI Despite rising fuel costs and more stringent environmental regulations, the cruise industry expects modest growth in 2011 as eight new large ships debut and consumers continue to shake off the effects of a recession, industry executives said. The Cruise Lines International Association predicts that 16 million people three-quarters of them from North America will vacation aboard cruise ships this year, up 6.6 per cent from 2010. Last year's numbers exceeded the trade association's projections. CEOs of six of the leading cruise lines, speaking during a panel discussion at the annual Cruise Shipping Miami conference, expressed tempered optimism for continued growth, noting the large untapped market worldwide for cruising. The industry said cruising still makes up around3 per cent of the vacation sector in the United States. Holland America Line CEO Stein Kruse said baby boomers who hold the majority of the wealth are a huge untapped customer base as the economy improves and vacation spending picks up again. "They're living better, they're living longer, they have more interest in travel and cruising appeals to them," Kruse said. Capacity Cruise companies managed to keep their ships at c apacity during the last few y ears by cutting prices. That made cruising more affordable for more people whose positive experience likely will bring them back for future vacations, said Gerald R. Cahill, president and CEO of Carnival Cruise Lines. "Once again, the industry showed how resilient it was," Cahill said. "We filled our ships (with were still profitable as an industry, which is a big deal. The industry continued to grow, we added new ships and we innovated." Among the new ships this year is the 4,000-passenger Disney Dream, the cruise line's third ship and its first new one in more than a decade. The Dream is sailing to the Bahamas from Florida's Port Canaveral. In May, Carnival Cruise Lines is debuting its largest ship, Carnival Magic. The 3,690-passenger vessel, sailing from Barcelona, is industry leader Carnival's 23rd ship. Norwegian Cruise Line CEO Kevin Sheehan said newer ships are more fuel efficient and feature betterd esigned and more comforta ble cabins, more diverse dining options, more entertainment and innovative outdoor spaces including water rides, and on-deck movie theatres and nightclubs. "It's not enough for our guests to just smell the sea air, they want to breathe it and feel it, and we're figuring out more new and creative ways to bring our guests closer and closer to the sea," he said. Industry officials cited rising fuel costs, more restrictive emission control regulations and lack of standardized regulations around the world as the most pressing chall enges. BUSINESS THE TRIBUNE TUESDAY, MARCH 22, 2011, PAGE 7B ( 03/2<0(17,7< ROIURIHVVLRQDO'HYHORSHU.H\HVSRQVLELOLWLHV &RPPXQLFDWHRQDGDLO\EDVLVZLWKWKH*HQHUDO 0DQDJHUDQG$VVLVWDQW*HQHUDODQDJHUWRHQVXUH D FRRUGLQDWHGHIIRUWDWSURYLGLQJ\HDUURXQGTXDOLW\ H[SHULHQFHVIRUPHPEHUVDQGJXHVWV &RRUGLQDWHGHYHORSPHQWRIRSHUDWLQJDQGFDSLWDO EXGJHWVDFFRUGLQJWRWKHEXGJHWFDOHQGDUPRQLWRUV PRQWKO\DQGWDNHVHIIHFWLYHFRUUHFWLYHDFWLRQDV UHTXLUHG $QDO\]HVRWKHUQDQFLDOVWDWHPHQWVDQGHVWDEOLVKHV FRQWUROVWRVDIHJXDUGIXQGVHYLHZVLQFRPHDQG FRVWVUHODWLYHWRJRDOVWDNHVFRUUHFWLYHDFWLRQDV QHFHVVDU\ :HOFRPHVQHZFOXEPHPEHUVPHHWVDQGJUHHWVDOO FOXEPHPEHUVDVSUDFWLFDOGXULQJWKHLUYLVLWVWRWKH FOXE (QIRUFHDOORIWKHFOXEUXOHVDQGUHJXODWLRQVJRYHUQLQJ WKHXVHRI%DNHUV%D\IDFLOLWLHV (VWDEOLVKSHUDWLQJ&ULWHULDIRU*ROISHUDWLRQV 'HYHORSDQRSHQLQJFULWLFDOSDWKIRU*ROISHUDWLRQV 'HYHORSVWDQGDUGVRIVHUYLFHIRU*ROISHUDWLRQV DQGDQRSHQLQJDQGRQJRLQJWUDLQLQJSURJUDPIRUQHZ HPSOR\HHV 2YHUVHHWKHGHVLJQSXUFKDVHDQGLQVWDOODWLRQRIDOO *ROISHUDWLRQV'HSDUWPHQW))t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further fall to 187,000 hectolitres. The Commonwealth Brewery group responded aggress ively to offset this decline and realised significant cost savings through innovative cost-cutting measures across all a spects of the business, including energy consumption, shipping and raw material costs, and packing material resourcing, the offering memorandum said. These measures produced savings of approximately $1.7 million for the Brewery and $0.8 for the distribution arm of t he business [Burns House] in 2010. Raw materials, consummables and services costs were reduced 5 per cent yearover-year between 2009 and 2010. W holesale sales had dropped from $79.934 million in 2008 to $76.067 million in 2009, with a further drop to $ 73.886 million. The same trend had taken place on the Burns House retail distribution front where, after a slight sales increase from $33.479 million in 2008 to $35.318 milliont o 2009, revenues had dropped slightly to $34.426 million in 2010. The only area showing revenue growth was exports, which rose from $418,229 in 2008 to $447,993 in 2009, and then to $1.064 million in 2010, a trend of 137 per cent growth. T he brewery, though, still remains the groups profit centre. Net income here rose from $8.109 million in 2008 to $10.573 million in 2009, and then to $11.348 million in 2010,t hose figures accounting for 57 per cent, 67 per cent and 56 per cent of total group profitability respectively for those y ears. The wholesale segment recovery back to 27 per cent of net income, which matched 2008 performance, having slumpedt o 12 per cent in 2009, came after profits here rose to $5.441 million in 2010 compared to $1.841 million in 2009. Profits f rom this segment were $3.872 million in 2008. On the retail front, its share of net income dropped from 21 per cent in 2009 to 17 per cent in 2010, which was stilla head of the 16 per cent achieved in 2008. Profits here rose slightly to $3.461 million in 2010 from $3.324 million in 2009, and compared to $2.308 in 2008. With focused marketing campaigns and price increases, the Commonwealth Brewery group managed to counterl ower volume results for the period, but could not turn around overall revenue in 2010, which was lower than in pre vious years, the offering memorandum said. N et sales per hectolitre produced were $585 and $551 in 2010 and 2009, a 6 per cent year-over-year increase, with the 2008 figure being $534. O n the cost side, operating costs per hectolitre rose by 2 per cent year-over-year to $494 in 2010, compared to $480 t he year before. This was due to the increase in taxes and excise duties. The Government increased excise duties on locally-pro d uced alcoholic beverages by 25 per cent and increased duty on raw and packaging materials to 10 per cent, the offering memorandum said. Despite government being a key stakeholder and major revenue recipient of the business, these increases highlight the current and future vulnera b ility of the Commonwealth Brewery group to government policies. Noting that cost-cutting had been aggressive, Com monwealth Brewery said that while capital spending on plant and internal systems had declined over the past three years, the group was maintaining a repairs and mainte nance budget of about 1 per cent of total revenues. Brewers better than 60% target achievement rate F ROM page 1B Cruise industry heads optimistic about 2011 CURT ANDERSON, AP Legal Affairs Writer HOLLYWOOD, Florida Bank executives rarely face money laundering charges because investigators don't usually uncover the kind of decisive evidence needed to convict them, prosecutors said Monday at an international conference in Florida. "You don't find the smoking gun email where an executive says, 'I know it's drug money, but go do it anyway,'" said Evan Weitz, a New York federal prosecutor, during a panel discussion at the annual anti-money laun dering conference. Instead, prosecutors usually target the bank or financial institution itself. Adam Kaufmann, chief of the investigative division of the Manhattan district attorney's office, said even then the preferred practice is to work out a settlement known as a deferred prosecution agreement rather than indict ing the institution. "An indictment can be a death sentence for a financial institution," said Kaufmann, adding that ruining large banks or other insti tutions can trigger unforeseen economic ripple effects. Major banks investigated for doing business with countries facing U.S. economic sanctions have reached agreements four times since January 2009. In those settlements, the institutions pay large fines and agree to meet certain requirements, but no executives face jail time. Last year, U.S. District Judge Emmett Sullivan of Wash ington labeled one such settlement a "sweetheart deal." In that settlement, Barclays Bank paid $298 million in penalties but faced no charges. "Why isn't the government getting rough with these banks?" Sullivan said at an August 2010 hearing. In such cases, Kaufmann said, prosecutors could have indicted lower-level employees who are actually handling the illegal transactions on a day-to-day basis. But that wouldn't get at the execu tives who made the decisions and figuring out exactly who that is can be daunting. "It becomes very difficult to sort of identify the person you want to prosecute," he said. Earlier Monday, Manhattan District Attorney Cyrus R. Vance Jr. told the more than 1,000 conference attendees that prosecutors and investigators increasingly work alongside bank regulators to spot money-laundering trends involving drug traffickers, corrupt foreign officials and even terrorist financiers. Attendees are part of a diverse group that includes prosecutors, financial officials and regulators from around the world. PROSECUTORS: BANK EXECS ARE NOT EASY TO CHARGE INTERNATIONAL BUSINESS


BUSINESS PAGE 8B, TUESDAY, MARCH 22, 2011 THE TRIBUNE 52wk-Hi52wk-LowSecurit y Previous CloseToday's CloseChangeDaily Vol.EPS $Div $P/EYield 1.130.95AML Foods Limited1.091.090.004,5640.1230.0408.93.67% 10.639.05Bahamas Property Fund10.6310.630.000.0130.200817.71.88% 5.754.40Bank of Bahamas4.934.930.002,5000.1530.10032.22.03% 0.530.17Benchmark0.180.180.00-0.8770.000N/M0.00% 2.842.70Bahamas Waste2.702.700.000.1680.09016.13.33% 2.201.96Fidelity Bank1.961.960.000.0160.040122.52.04% 12.409.43Cable Bahamas9.439.430.001.0500.3109.03.29% 2.852.35Colina Holdings2.402.400.000.7810.0403.11.67% 7.005.80Commonwealth Bank (S1)6.826.820.005,3210.4880.26014.03.81% 2.861.90Consolidated Water BDRs2.252.23-0.020.1110.04520.12.02% 2.541.40Doctor's Hospital1.401.400.000.1070.11013.17.86% 6.305.22Famguard5. 9.275.65Finco6.107.501.401,5000.6820.00011.00.00% 1 1.408.77FirstCaribbean Bank9.309.300.000.4940.35018.83.76% 6.004.57Focol (S)5.475.480.011,2000.4520.16012.12.92% 1.001.00Focol Class B Preference1. 7.305.50ICD Utilities7.407.30-0.101,5500.0120.240608.33.29% 10.509.80J. S. Johnson9.829.820.000.8590.64011.46.52% 10.0010.00Premier Real Estate10.0010.000.001.2070.2008.32.00% 52wk-Hi52wk-LowSecuritySymbolLast SaleChangeDaily Vol. 99.4699.46Bahamas Note 6.95 (2029BAH2999.460.00 100.00100.00Fidelity Bank Note 17 (Series A) +FBB17100.000.00 100.00100.00Fidelity Bank Note 22 (Series B) +FBB22100.000.00 100.00100.00Fidelity Bank Note 13 (Series C) +FBB13100.000.00 100.00100.00Fidelity Bank Note 15 (Series D) +FBB15100.000.00 52wk-Hi 52wk-Low Symbol Bid$ Ask$ LastPrice DailyVol EPS$ Div$ P/E Yield BISX LISTED & TRADED SECURITIES AS OF:7% Interest 7%RoyalFidelity Merchant Bank & Trust Ltd. (Over-The-Counter Securities)29 May 2015 W W W.BISXBAHAMAS.COM | TELEPHONE:242-677-BISX (2479) | FACSIMILE: 242-323-232019 October 2022 Prime + 1.75% Prime + 1.75% 6.95%20 November 2029MONDAY, 21 MARCH 2011BISX ALL SHARE INDEX: CLOSE 1,470.49 | CHG 18.96 | %CHG 1.31 | YTD -29.02 | YTD % -1.94BISX LISTED DEBT SECURITIES (Bonds trade on a Percentage Pricing basis)Maturity 19 October 2017FINDEX: YEAR END 2008 -12.31%30 May 2013 52wk Hi 52wk Low Symbol Bid $ Ask $ Last Price Daily Vol EPS $ Div $ P/E Yield 1 0.065.01Bahamas SupermarketsN/AN/A14.00-2.9450.000N/M0.00% 0.550.40RND Holdings0.350.400.550.0010.000256.60.00% 41.0029.00ABDAB30.1331.5929.004.5400.0009.030.00% 0.550.40RND Holdings0.450.550.550.0020.000261.900.00% 52wk-Hi52wk-LowFund NameNAVYTD%Last 12 Months %NAV 3MTH 1.51221.4076CFAL Bond Fund1.51795.51%6.90%1.498004 2.95272.8300CFAL MSI Preferred Fund2.94860.04%1.45%2.918256 1.58371.5141CFAL Money Market Fund1.58370.61%4.59%1.564030 3.20252.8522Royal Fidelity Bahamas G & I Fund2.7049-0.56%-15.54% 13.638813.0484Royal Fidelity Prime Income Fund13.43920.61%-0.22% 114.3684101.6693CFAL Global Bond Fund114.36849.98%12.49%109.392860 106.552899.4177CFAL Global Equity Fund106.55284.75%7.18%100.779540 1.14651.0000FG Financial Preferred Income Fund1.14655.20%5.20% 1.11851.0000FG Financial Growth Fund1.11854.73%4.73% 1.14911.0000FG Financial Diversified Fund1.14915.35%5.35% 9.74859.1005Royal Fidelity Bah Int'l Investment Fund Principal Protected TIGRS, Series 19.79504.85%5.45% 11.236110.0000Royal Fidelity Bah Int'l Investment Fund Principal Protected TIGRS, Series 210.6417-1.20%0.50% 10.12669.1708Royal Fidelity Bah Int'l Investment Fund Principal Protected TIGRS, Series 310.12661.27%1.27% 8.45104.8105Royal Fidelity Int'l Fund Equities Sub Fund8.45100.72%9.95% BISX ALL SHARE INDEX 19 Dec 02 = 1,000.00YIELD last 12 month dividends divided by closing price 52wk-Hi Highest closing price in last 52 weeksBid $ Buying price of Colina and Fidelity 52wk-Low Lowest closing price in last 52 weeksAsk $ Selling price of Colina and fidelity Previous Close Previous day's weighted price for daily volumeLast Price Last traded over-the-counter price Today's Close Current day's weighted price for daily volumeWeekly Vol. Trading volume of the prior week Change Change in closing price from day to dayEPS $ A company's reported earnings per share for the last 12 mths Daily Vol. Number of total shares traded todayNAV Net Asset Value DIV $ Dividends per share paid in the last 12 monthsN/MNot Meaningful P/E Closing price divided by the last 12 month earningsFINDEX The Fidelity Bahamas Stock Index. January 1, 1994 = 100 (S) 4-for-1 Stock Split Effective Date 8/8/2007 (S1) 3-for-1 Stock Split Effective Date 7/11/200731-Jan-11BISX Listed Mutual FundsNAV Date 30-Nov-10 31-Dec-10 31-Jan-11CFAL Securities Ltd. (Over-The-Counter Securities)TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-752530-Nov-10 30-Sep-10 28-Feb-11 11-Feb-11 31-Jan-11MARKET TERMS31-Dec-10 NAV 6MTH 1.475244 2.910084 1.545071 107.570619 105.776543 30-Jun-10 31-Dec-10 30-Nov-10 31-Jan-11 THE COLLEGE OF THE BAHAMASVisit our website at ACUL TY V ACANCY A pplications are invited for suitably qualified individuals for the position of: Assistant Professor, Public Administration, School of Social Sciences ,with responsibility for teaching undergraduate courses, participating in the revision of the existing baccalaureate degree programme in Public Administration, contributing to the development and implementation of a masters degree programme in Public Administration, participating in student recruitment and advisement, engaging in scholarly/professional activities and serving on departmental and college-wide committees. Applicants should possess: an earned Ph.D from an accredited institution; have a strong commitment to undergraduate instruction; skills in programme and course development and implementation; and a commitment to scholarly research. For a detailed job description, visit www Interested candidates should submit a detailed resume and cover letter of interest no later than Thursday,March 31st to Associate Vice President, Human Resources, The College of the Bahamas, P. O. Box N-4912, Poinciana Drive & Thompson Boulevard OR email: DAVID K. RANDALL, AP Business Writers STAN CHOE, A P Business Writers NEW YORK Stocks started the week with big gains Monday on a major telecommunicationsd eal and signs that Japan's nuclear crisis was stabilizing. The Dow Jones industrial average closed above 12,000 for the firsttime since a nuclear power plant in Japan f ailed following a massive earthquake and tsunami. In the U.S., AT&T Inc. said it would buy rival T-Mobile USA for $39 billion, creating the largest U.S. cellphone compan y. Charles Schwab Corp. said it would buy online brokerage services provider OptionsXpress for $1 billion. The deals raised hopes that more corporate buyouts c ould be on the way as businesses become more confident in the economic recovery. You only expand when you have a good feeling about the future," said Peter Cardil-l o, chief market economist at New Yorkbased brokerage house Avalon Partners. T he Dow Jones industrial average rose 178.01 points, or 1.5 percent, to 12,036.53. T he index has gained 3.6 percent over the last three trading days, its largest jump over the same amount of time since September. T he S&P 500 index gained 19.18, or 1.5 percent, to 1,298.38. The Nasdaq compos-i te rose 48.42, or 1.8 percent, to 2,692.09. Energy stocks led the market higher after o il prices climbed back above $103 per barrel. Schlumberger Ltd., which helps comp anies drill for oil and gas, rose 4.4 percent to $89.73. ConocoPhillips rose 2.9 percent to $77.55. Worries about Japan's stricken nuclear reactors eased after the Nuclear Regulator y Commission said the situation at the Fukushima Dai-ichi plant appeared to be stabilizing. Containment at three of the plant's six reactors was intact, the commis-s ion said. T iffany & Co. rose 5.1 percent to $60.22 after reporting higher-than-expected earnings. The jeweler said Japan's earthquake could hurt its earnings because of storec losings and limited hours. The company does 18 percent of its business there. T he violence in Libya and Japan's earth quake have led to many large swings in the Dow since late February. The Dow rose o r fell by 100 points or more during three days last week. Eight of the 15 trading days since the start of March have had swings that large. I n the latest signs of trouble in the U.S. h ousing market, the National Association of Realtors reported that sales of previously occupied homes fell 10 percent last month. The supply of unsold homesr emains relatively high at 3.5 million. Five stocks rose for every one that fell on t he New York Stock Exchange. Consoli dated volume came to 4.5 billion shares. PAUL WISEMAN, AP Economics Writer WASHINGTON The Japanese economy has been staggered by an earthquake, a tsunami and a nuclear crisis. But history suggests it will bounce back with no lasting damage. Wealthier countries with stable government institutions are especially suited to benefit from reconstruction after a natural disaster. So are countries with vast international trade and those that can easily raise money. Japan falls into all those categories. Its own Kobe area recovered unusually quickly from a 1995 earthquake, for example. And researchers say the May 2008 quake in the Sichuan province of China led to stronger growth that same year. The World Bank estimates Japan will spend up to five years rebuilding from the March 11 disaster. Reconstruction projects contribute to growth by putting people to work. Economies also benefit as damaged roads, ports, buildings and equipment are replaced. And typically, they are replaced with more efficient structures that help expand the nation's productivity and growth. "We expect growth in Japan will pick up as reconstruction efforts accelerate," Vikram Nehur, the World Bank's chief economist for East Asia, said Monday. In the aftermath of the nuclear crisis, Japan also stands to benefit from research and development projects designed to find alternative energy and reduce its dependence on nuclear energy and imported oil, says Reinhard Mechler, an economista t Austria's International Institute for Applied Systems Analys is. Researchers have documented that natural disasters, for all the death and destruction they leave, cause surprisingly little lasting economic damage. A report last year by the Inter-American Development Bank found that natural disasters tend to cause long-term economic damage only when they trigger political upheaval. Iran andN icaragua, for instance, were crippled economically by 1979 revolutions that followed killer earthquakes. Otherwise, economies usually respond with long-term resilience after natural calamities. Chinese government researchers have calculated that the Sichuan earthquake and the massive reconstruction effort that followed added to China's sizzling 9.6 percent growth in 2008. And consider the deadly earthquake that hit Kobe, Japan, in January 1995. Experts predicted the area would need a decade to recover. Instead, Kobe's manufacturers were producing at 98 percent of pre-quake levels within a year and three months, according to a study by the late Purdue University economist George Horwich. About four in five retail shops, including all department stores, were open in a year and a half. Even with the devastation in Kobe, Japan's economic growth more than doubled from 1994 to 1995. Similarly, Hurricane Katrina devastated coastal Louisiana and Mississippi in 2005 but "didn't puncture investment or growth in the rest of the country," says Robert Shapiro, a former Commerce Department official and chairman of the econom ic consulting firm Sonecon. And the reconstructions that followed the 1989 Northern Cal ifornia quake and the 1994 Southern California quake are widely believed to have helped the California economy. Countries without deep financial reserves, trade relation ships or skilled work forces are much less likely to benefit from rebuilding programs. Impoverished Haiti, for instance, lacked the resources to handle the aftermath of a deadly quake last year even with help pouring in from overseas. Japan, by contrast, has the institutions to handle a massive reconstruction effort, says Mark Skidmore, a Michigan State University economist. "They have high human capital," he says. "They have pretty darn good institutions." And "if you've got trade, you've got ports and other distri bution resources" that speed delivery of relief supplies and construction material to disaster zones. Even in the developing world, the economic damage is typically short-lived. A poor country's economy typically shrinks in the first year after a calamity, then bounces back as investments pour in and money moves around, Mechler says. Sonecon's Shapiro raises the concern that Japan won't prove as resilient this time as it was after the Kobe quake in '95. This month's quake damaged power plants, leaving communi ties with crippling electricity shortages. Shapiro says the threat of radiation leaks from a nuclear power plant damaged in the quake also could paralyze the economy. And the Tokyo government is deep in debt. Some question whether it could finance a rebuilding effort that is expected to cost more than $200 billion. Others point out that the Japanese government can raise money by selling bonds to the Japanese public, which has a high savings rate. The United States, by contrast, relies heavily on foreign governments and investors to finance massive government deficits. In its report Monday, the World Bank estimated that Japan's disaster would reduce the country's growth by up to 0.5 percentage points this year. But it also says the slowdown won't last much beyond mid-year. Deals help push the Dow back above 12,000 PAST SUGGESTS LITTLE LASTING HARM TO JAPAN ECONOMY (AP Photo/David Guttenfelder BLOCKED: Two Japanese soldiers stop to look at a ship which was blocking a road which their men were trying to clear in the earthquake and tsunami destroyed town of Onagawa, Miyagi Prefecture, northeastern Japan Sunday, March 20, 2011. UNCERTAINTIMES: In this photo taken March 14, 2011, traders work on the floor of the New York Stock Exchange. SEVERELY DAMAGED: Battered boats are seen in the Keehi Small Boat harbor, Friday, March 11, 2011 in Honolulu. A tsunami gener ated by the Japan earthquake hit Oahu causing damage around the island. The harbors piers and many boats were severely damaged by the tsunami. Many boats were freely floating in the harbor. Several were sinking. W ASHINGTON F ewer Americans bought previously occupied homes in F ebruary and those who did purchased them at steep dis counts. The weak sales and rise in foreclosures pushed home prices down to their lowest level in nearly 9 years. The National Association of R ealtors said Monday that sales of previously occupied homesf ell last month to a seasonally adjusted annual rate of 4.88 mil l ion. That's down 9.6 percent from 5.4 million in January. The pace is far below the 6 million homes a year that economists say represents a healthy mark et. Nearly 40 percent of the sales last month were eitherf oreclosures or short sales, when the seller accepts less t han they owe on the mortgage. One-third of all sales were purchased in cash twice the rate from a year ago. In trou bled housing markets such as L as Vegas and Miami, cash deals represent about half ofs ales. The median sales price fell 5.2 percent to $156,100, the lowest level since April 2002. "This information suggests that value investors are entering the market, possibly a sign that home sales and construction are nearing a bottom," said Joseph A. LaVorgna, chief U.S. economist for Deutsche Bank Securities. HOME S ALES FELL 9.6 PCT. IN FEBRUARY

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