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N ASSA U AND BAHAMA ISLANDS LEADING NEWSPAPER Govt officials son in cutlass rampage Volume: 107 No.318FRIDAY, NOVEMBER 4, 2011 PRICE 75 (Abaco and Grand Bahama $1.25 WEATHER PARTLY SUNNY HIGH 86F LOW 67F By DENISE MAYCOCK T ribune Freeport Reporter email@example.com T HE son of a top government official on Grand Bahama was shot dead by police yesterday after he went b erserk with a cutlass severely injuring five people. The victims of the bloody r ampage were rushed to hospital. One of them was airlifted to Nassau for further medical treatment. Police have not released the names of the victims. However, unconfirmed reports are that Ron Darville, deputy chairman of Bahamas Agricultural & Industrial Corporation (BAIC Joseph, were among the five persons attacked. Police shoot attac ker dead as f iv e hur t TRY OUR PINA COLADA McFLURRY The Tribune THEPEOPLESPAPER BIGGESTANDBEST LATESTNEWSONWWW.TRIBUNE242.COM By KHRISHNA VIRGIL I F an emergency strikes on c ertain mail boats, passengers aboard might not live to tell the tale, according to one con c erned citizen, who said the vessels do not have the prop er emergency equipment or procedures. T he frequent mail boat pas senger, who wished to remain By SANCHESKA BROWN Tribune Staff Reporter firstname.lastname@example.org THE lawyer representing the families of the men who were killed in the Lake Kil larney plane crash is frustrated at not receiving an official investigation report from the Department of Civil Aviation. RAMI WEISFISCH and lawyer Philip Brave Davis seen leaving the chambers of Mr Justice Abdulai Conteh Thursday morning after a closed session with the Appeals Court judge. Mr Davis is the trustee of APW Trust, which is involved in a dispute between Rami Weisfisch and Amir Weiss fisch, two millionaire Israeli brothers, who spell their surnames differently. Mr Justice Stephen Isaacs the fourth Supreme Court judge to be involved in the case, each of the others having recused themselves for various reasons described the dispute in open court on October 25 as involving two brothers who are locked in what began as an accounting By CELESTE NIXON Tribune Staff Reporter email@example.com DNA leader and former immigration minister Branville McCartney criticised the government for failing to deal with the illegal immigration problem, which he said continues to drain the countrys resources. Responding to current minister Brent Symonettes remarks about the regularisa tion of eligible non-Bahamians, Mr McCartney said the FNM should concentrate on By CELESTE NIXON Tribune Staff Reporter firstname.lastname@example.org THE DEMOCRATIC National Alliance (DNA announced five new candi dates who will run on the partys ticket in the next general election. RONDARVILLE, deputy chairm an of BAIC, who was among the five people attacked. S S E E E E p p a a g g e e 2 2 S S E E E E p p a a g g e e 8 8 S S E E E E p p a a g g e e 8 8 S S E E E E p p a a g g e e 8 8 S S E E E E p p a a g g e e 8 8 S S E E E E p p a a g g e e 7 7 BACK TO COURT FOR BROTHERS BATTLE PHILIP BRAVEDAVIS, front, and Rami Weisfisch leave the Appeals Court yesterday. LAWYER FRUSTRATED BY REPORT DELAY R O T ARY CLUB PROVIDES A LIFE-CHANGING GIFT THE ROTARY CLUB of East Nassau and the Bahamas Association for the Physically Disabled has made a life-changing contribution, having donated 50 wheelchairs to 50 handicapped people. See page 7 for the full story. CANDIDATES NAMED BRAN:IMMIGRATION DRAINS THE NATION C ONCERNS RAISED OVER MAILB O AT S AFET Y im lovin it I NSIDETODAY 5 5 0 0 Y Y E E A A R R S S Y Y O O U U N N G G A A T T N N E E W W O O R R I I E E N N T T A A L L ANNIVERSARY SUPPLEMENT NEWS SPORT FASHION MOVIES TV MUSIC ONSALETOMORROW S S A A V V E E , S S A A V V E E , S S A A V V E E E E V V E E R R Y Y W W E E E E K K
LOCAL NEWS PAGE 2, FRIDAY, NOVEMBER 4, 2011 THE TRIBUNE By LAMECH JOHNSON email@example.com A SANDILANDS Village resident will return to Magis-t rates Court today for a bail hearing after being charged in connection with theft of more than $90,000. T he accused is alleged to have stolen the money from his employer over a 20-day p eriod this month. Aluacardo Jolly, 32, who pleaded not guilty to fourc ounts of stealing by reason of employment before Mag istrate Carolyn Vogt-Evans yesterday afternoon, will learn i f he will be remanded to Her Majestys Prison or given bail following submissions to the court by his attorney Bernard Ferguson. Jolly, of Village Road, is alleged to have stolen $ 91,906.86 in cash and cheques on four separate occasions. T he incidents are said to have taken place between October 6 and October 25 and the victim is alleged to h ave been Bahamas Office and School Supplies. According to court dockets, the first theft occurred on Thursday, October 6, w hen the accused allegedly stole $29,958.87. Six days later on October 12, Jolly is accused of making off with $19,742.02. A week later, on October 19, $10,439.54 was allegedly s tolen. The last incident is said to have occurred on Tuesday,O ctober 25, when $31,766.43 was allegedly stolen. Seven witnesses are expected to testify in the matter a fter a trial date is set. Todays bail hearing is set to take place before Magistrate Vogt-Evans in Court 6, Parliament Street. T he Tribune h as also learned that Michael Darville, the youngest son of Ron D arville, was shot by police s hortly after fleeing the scene of the attack at Dampier Drive, Freeport. T he drama began sometime around 5am at the home of Ron Darville. R eports are that Michael D arville then went across the street to a neighbours residence and attacked three peo-p le there with a cutlass. Police were called to inves tigate and discovered five vict ims with various injuries. Assistant Superintendent Clarence Reckley did not disclose the identities, but con f irmed that the suspect had injured two family members and three other neighboursb efore fleeing the area. A total of five persons were injured and are present-l y at hospital being treated, h e said. Mr Reckley said officers spotted the suspect and gave c hase in the area of Sum merville Drive. He stated that the suspect c onfronted officers. He had a block and a screw driver and charged at t he officers. They were in fear for their lives and fired their service revolver which resulted in the suspect being f atally injured, Mr Reckley said. Marco City MP Zhivargo L aing described the incident as a tragedy. He said: It is an unfortun ate situation involving a fam i ly, and fortunately at this point there is no loss of life, b ut I understand severe injuries have been caused to a number of persons. M r Laing knows the Darville family very well. He said the FNM party is v ery saddened by what has h appened and is very con cerned for the family and oth e r victims. Our focus right now is trying to support the recovery of t he persons who are injured. This has been very diffi cult and traumatic also for the c ommunity because there would have been some adults and children who were inc lose proximity to the incid ent. According to a local resident, the area is a relatively q uiet neighbourhood. We are shocked about what has happened, the per s on said. L arge amounts of blood could be seen on the road, on a fence, and at the two resi dences in the area. Mr Laing, who is the representative for the area, said he i s trying to provide counselling for those affected by the incident. BACK IN COURT ON THEFT CHARGE GOVERNMENT OFFICIALS SON IN CUTLASS RAMPAGE f f r r o o m m p p a a g g e e o o n n e e I NVESTIGATORSEXAMINE t he scene yesterday, where blood was splattered across the walls following the attack with a cutlass that left five people injured. A HOUSE GATEPOST is s plashed with blood at the scene. FAMILYANDFRIENDS at the hospital after the incident.
B y LAMECH JOHNSON firstname.lastname@example.org T HE resentencing of murder convict Maxo Tido was delayed yesterday morning duet o the absence of both his attorney and a necessary document. Tido, who was sentenced to death in 2006, saw his sen t ence overturned by the Privy Council in June of this year. He told Senior Justice Jon I saacs in Supreme Court yes terday that he had hired an attorney but did not knoww hy he was not present. S enior Justice Isaacs asked the convict if he needed coun sel for the resentencing and h e replied, Yes sir. On the question of Tidos probation report, prosecutor J illian Williams said the document was not ready, noting that prison officials werer esponsible for preparing it. The judge said five years should have been sufficient time for it to be completed. He said the document is crucial to determining the appropriate sentence. Senior Justice Isaacs adjourned the resentencing to Friday, February 10, 2012. He also told the convict he would be appointed an attorney by the court. Your remand continues until that time, the judge told Tido. Tido replied: That aint no r emand. They still treat me like I condemn. Asked to elaborate, the c onvict said that, despite being a remand prisoner, he was still being treated as if he was on Death Row. O n March 20, 2006, a jury convicted Tido of murdering 16-year-old Donnell Conoveri n 2002. Her body was found off Cowpen Road battered and bruised, her skull crushed. E vidence also revealed that parts of Ms Conovers body were burned after her death. A month after his convic t ion, then Senior Justice Ani ta Allen (now Court of Appeal President) ruled that the crime committed by Tido warranted the death penalty. The decision came days after the Privy Council ruled that the mandatory death sen-t ence in place up until that point in the Bahamas was not constitutional. I n 2009, the Committee for the Prerogative of Mercy decided the law should take its course, as Tidos case was n ot one that warranted mercy. However Tido, appealed to the Privy Council, the high-e st court of appeal recognised in the Bahamas, which ruled that the killing of Conover didn ot warrant execution. LOCAL NEWS THE TRIBUNE FRIDAY, NOVEMBER 4, 2011, PAGE 3 B y LAMECH JOHNSON email@example.com A MAN was acquitted of armed robbery charges in theS upreme Court. K enneth Pennerman was f reed on Wednesday when the jury found him not guilty by a count of 9-0. The prosecution had alleged that on May 15, 2006,w hile armed with a knife, P ennerman attempted to rob Cheresa Campbell-Roach of cash in a parking lot across from a Cable Beach hotel. Mrs Campbell-Roach, having just left a training seminara t the Nassau Beach Hotel, h ad just got into her car when the incident occurred. Before the jury left to deliberate, Justice Vera Watkins summarised the evidence given by prosecution witnesses and a lone witness for the defence. Mrs Campbell-Roach had testified that she had left the training seminar and walked with a co-worker to the park-i ng lot across the street. After the colleague left, she said, she walked over to where her vehicle was parked and noticed a white van parked next to it. She testified to hearing v oices in the van, and seeing two men, one of whom was the accused. When she got into her gold Hyundai Jeep to start the engine, a knife was held toh er neck by a man with most of his face covered with a black mask with the exception of his eyes and forehead. She noted that the electricity had been off for a while but her car light allowed her to see his eyes clearly. She was threatened with death if she did not give him cash. The victim refused and was forced into the passenger seat by the masked robber w earing a yellow shirt and blue jeans who threatened her again if she screamed. She managed to escape from the car and signal police who were nearby. When she went to CDU, she picked out a susp ect based on the forehead and slanted eyes of the robber among eight men who, she said, did not look alike. As to the evidence given by the accused in the case, it w as revealed that Pennerman had borrowed the white van from a friend of his and on the way to Cable Beach to meet his cousin, two persons had caught a ride with him. One of them being former accused in the case Kerby St Brave, and another young man wearing a yellow shirt and jeans who had caught a ride with him from Cocktails and Dreams to as far as them ajor resorts in Cable Beach. Pennerman said he parked the van with the two men inside and went inside the Crystal Palace Casino to meet up with his cousin Justin Greene who worked in the e ngineering and air conditioning unit. When told by workers that his cousin was not available at the time, he waited some 30-40 minutes before deciding to leave. I t was then that he answered a phone call and felt a kick in one of his legs. He looked at the plainclothed person and asked what he had done to be attacked, but received no answer. He ran for help but fell down a ramp only to be abused and then handcuffed. He inquired about what he was being arrested for, but was told by the plainclothedo fficer that he would find out once he arrived at the police station. Pennerman had complained of leg and chest pains to the officers, but was allegedly told that more was to come. H e was taken to the Central Detective Unit the next day where he was fingerprinted and put with other men of no similar build or complexions for an identifi-c ation parade. In Cpl Anthony McCartneys evidence, he told the court that he had possession of a photo of when the defendant was arrested in connection with the incident. The photo showed that the accused appeared to be wearing a red and white top though he said the colour could have been burgundy or maroon and not red. F ollowing the summary of the trials evidence, the jury deliberated for three hours before returning to court to deliver a unanimous not guilty verdict. After they were dismissed, Justice Watkins t old Pennerman that he was free of the charge in his matter, but was not free to go, as it was revealed that he was on remand for a pending matter before the courts. P ennerman thanked V Alfred Gray for representing him in the trial and was escorted out of court in handcuffs by police. Anthony Delaney prosecuted the case. POLICE are looking for two armed men who robbed a Texaco Service Station. The gunmen burst into the station on Prince Charles Dri v e at noon on Wednesday, both armed with handguns, and demanded cash. The pair robbed the station and escaped in a gold Honda Accord, licence plate number 225384. A short while later, police found the car abandonedt hrough a track road off Prince Charles Drive. P olice have asked for any one with information on this robbery to contact them on911 or 919; the Central Detective Unit on 502-9991 or 5029910; or Crime Stopper on 328-TIPS. DEU FIND GUN DRUG ENFORCEMENT Unit officers found a highpowered firearm, a handgun and ammunition during a search of some bushes near Faith Avenue. The discovery was made at 6pm Wednesday, but no arrests have been made. Active police investigations continue. CRIMETIP POLICE have warned businesses to increase on-site security to reduce the chanceof armed robberies. To reduce the chance of being targeted by armed robbers: install closed circuit tele vision cameras. make frequent bank deposits and vary time and routes. ensure that parking lots are well lit and free of overgrown bushes. keep doors and windows free of signs and posters. always be on the lookout for suspicious people, cars and activities. create a business crime watch in your area. build a relationship with the police to discuss addition al security measures. For more information on ways to protect your home or business, call the National Crime Prevention Office on 302-8430/1. By DANA SMITH firstname.lastname@example.org M ORE than 30 per cent of sentenced inmates at HerM ajestys Prison, Fox Hill, say t hey committed crimes for economic reasons, according to a study presented yesterdaya t a research symposium on violence in the Bahamas. More than 247 inmates were questioned and the researchers found that 34 per cent of them put the commis-s ion of crimes such robbery d own to the need for money. Researchers Jessica Minnis a nd Michael Stevenson presented their study at the Col-l ege of the Bahamas. Our key finding was that around 30 per cent of the r esponses indicated an aspect o f the economy as the underlying cause of crime, MrS tevenson said. That was our m ost significant finding. We define economic in terms of responses that indicate any level of material w ants or needs, or register a ny concern about the means of attaining material wants or n eeds, Mr Stevenson said. According to responses f rom the inmates, they com m itted crimes to gain material wealth for reasons such as: debt, showing off to friends, u nemployment, homelessness, w anting the finer things in l ife, providing for children, love of money, poverty, envy, and wanting fast money. A lthough 59 per cent said they were employed at the t ime of their incarceration, r esearchers said they still committed these crimes because they lacked enough money to cover needs and wants. Most of them were employed in semiskilled or unskilled professions so the salaries are not going to be high, Ms Minnis said. Theyre working but thes alary is not enough to meet their needs and also to buy some of the things society says that they should have. T he research comes on the h eels of yet another spate of a rmed robberies, including four in just one day this week. S uperintendent Ashton G reenslade, officer in charge of the Northeastern Division, s aid: Its a very commendable s ymposium and we want to t ake this message back to our d ivisions and share it with the other officers. Its a step in the right direction to avoid some of the youth of this nation from heading in the wrong direction.I ts very useful and very helpful to our nation. T he other researchers include EThegra Symonette, Yvette Pintard-Newry, and Tonya Gibson. FOUR men were acquitted of robbery and conspiracy c harges in the Supreme Court yesterday after no case submissions were made to the presiding judge. Dwayne Anderson, Shan Lightbourne, James Miller and Jamal Armbrister weref reed after Justice Roy Jones ruled in favour of the defence, which submitted that the prosecution had no case. The four accused were charged in connection with t he January 27, 2003 robbery o f Bank of the Bahamas. Prosecutors Kristan Stubbs and Aaron Johnson hada lleged the men conspired to commit the offence and stole $18,452.01 and $7,125.25 from C hristopher Ferguson and J ewel Ferguson, respectively. Both victims of the incident were BOB employees. M iller was also charged with receiving a fraction of the stolen cash $5,380. The accused men were repr esented by Murrio Ducille, Perry Albury and Dorsey McPhee. FOUR CLEARED OF ROBBERY JURY GIVES UNANIMOUS VERDICT TO CLEAR MAN OF ARMED ROBBERY TWO ROB GAS STATION COURT HITCHES DELAY MURDER SENTENCE MONEY THE MOTIVE FOR MANY INMATES HER MAJESTYS P rison, Fox Hill, w here researchers i nterviewed inmates to determine their m otives for committing crime.
EDITOR, The Tribune. My heart was overcome with joy during the DNA Town meeting on the econom y at the British Colonial Hotel. Mr Rodney Moncur was publicly announced as the DNAs candidate for Bain and Grants Town. This is by all means a big deal. You see Mr Moncur is a taxi driver by profession. He lives in Black Village and he is of humble means. He doesnt drive a fancy car and he isa happily married man. Mr Moncur is just an ordinary citi zen who has finally received a well-deserved chance to rep resent the people of the Bahamas on a higher level. He represents the grass root man in spirit and in person. Mr Moncur has fought for decades for the citizens in this country with no voices. He has fought for citizens who dont have the fight in them selves. He understands the plight of many disenfranchised Bahamians and I believe that if he is elected that he would be an outstanding Member of Parliament. Mr Moncur, you have given m any Bahamians hope with your nomination. All is not lost. You have proven that you dont have to be a doctor or lawyer or be a member of an esteemed family to become a political candidate from a worthy political party. Congratulations, Mr Moncur, and all the best to you, sir. DEHAVILLAND MOSS Nassau, October 29, 2011. EDITOR, The Tribune. ON THE south side of P rince Charles Drive, and about 200 feet west of Culberts Hill, a very lovely old multi-trunked ficus tree has been partially uprooted andh as been reposing at a 50 degree angle since hurricane Irene visited us. Despite having many roots t orn from the ground, the tree appears to still be very much alive. I assume from its loca-t ion that it is on public land. Its prolonged neglect does not create an image that resid ents nor visitors admire. It would be a loss of a lovel y resource to allow this magnificent tree to die of neglect. Your departmental staff (Public Works still very busy dealing witho ther storm damage so I hope some public assistance might be welcomed. M y hope has been that some civic-minded entities (given only supporting endorsement and liability protection by Government) would rally volunteer help tor e-erect the tree and add temp orary wooden shoring or steel cables to deep buried dead-men in the roadside soil. I f there is any association of road towing operators, the donation of a couple hours of t ruck time with two or three powerful towing vehicles could be a great way to burnish their image in the publice ye. Perhaps a Rotary type organisation could contribute to the hire of payloader to diga hole to accommodate a multi-ton boulder and a steel cable anchored to the upper trunk of the tree. Maybe our Builders Assn c ould supervise this proposed salvage task, subject to your (Public Works staff approval. It is a task w orth doing and our grandchildren will appreciate it. B ILL BARDELMEIER Nassau, October 29, 2011. PS: I am sending a copy of t his to two local papers; not to put pressure on govt nor cause embarrassment but solely in the hope that some civic volunteering of help maye merge. EDITORIAL/LETTERS TO THE EDITOR P AGE 4, FRIDAY, NOVEMBER 4, 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 I nsurance Management Building., P.O. F-485, Freeport, Grand Bahama TELEPHONES S witchboard (News, Circulation and Advertising) 322-1986 A dvertising Manager (242 C irculation Department (242 N assau Fax: (242 F reeport, Grand Bahama: 1-(242 Freeport fax: (242 EUROPEAN leaders have struggled mightily to keep Greece in thee urozone, despite the drag that its economic weakness places on their growth. The reason is this: If Greecea bandons the euro, the chaos it would wreak on the global economy can hardly be overstated. A Greek exit from the euro would a lmost certainly cause the country to default completely on its debts. A bankrupt Greece would be unable to pay pensions and salaries, and therew ould be a run on banks, causing them to collapse as people lined up to withdraw euros before the currency changed to drachmas. Greeks owing money in euros but being paid in drachmas essential-l y, a huge currency devaluation would find their debts suddenly too l ar ge to pay and would go bankrupt themselves. In a country where street violence accompanies even minor civil servant demonstrations, that's a volatile mix. And for any help, the only place Gr e ece would be able to tur n would be the International Monetary Fund, which is alr eady one of its bailout cr editors and would insist on even mor e austerity measur e s in r etur n f or r escue loans, bringing the entir e e quation full circle. B eyond Greece, the consequences would be even mor e dire. R ather than 50 per cent losses on Gr e ek bonds that the banks have alr e ady said they can handle, private cr e ditors would see those bonds simply disappear Eurozone countries, the European Central Bank and the IMF would also give up hope of getting back the money they lent Greece. Above all, a messy default would trigger massive insurance payouts on those bonds. Because financial groups do not usually disclose how much they hold in sovereign debt, such as Greek bonds, global markets would be seized by a panic over who would collapse. That would essentially be a repeat of what happened in 2008 after U.S. investment bank Lehman Brothersf ailed only worse. The uncertainty would likely push other weak eurozone states like Italya nd Spain from chaos into disaster. And failures that size would destroy the euro altogether. A lready, Italys borrowing rates h ave jumped to record levels at the mere thought of a Greek default. If Greece does default, investors would be prone to think that otherc ountries might, too and they know full well that Italy's economy is too big for Europe to bail out. French President Nicolas Sarkozy claimed it would never come to that. e cannot accept the explosion o f the euro, which would mean the explosion of Europe, he said in C annes at a summit of leaders fr om the Group of 20 most powerful economies. But Europes defenses are still weak. If it wer e aggressive in buying national bonds, the European Central Bank might be able for a time to keepa lid on those borrowing costs before they r ose to the point that Italy's gov er nment would no longer be able to finance itself on capital markets. O n the other hand, if the ECB w ere to shy away from such an a pproach then the risk of contagion would gr o w. The ECB made clear T hursday it is uncomfor table playing such a r o le. Gr e ece appeared to step back from the brink on Thursday and cancelled plans for a r e ferendum. If its feuding politicians can agree to the plan launched in Brussels last week, they'll get the next batch of 8 billion ($11 billion) in bailout money. But even then, the problems are far from over. T rue, the agreement would reduce Greece's debt but not by much. In 2020, in the best scenario, Greece would have the same level of debt that it did thr ee years ago. When the crisis began. By Don Melvin, Associated Press. Storm damage to valued tree LETTERS email@example.com Leaving the Euro carries massive costs Now through Sat Nov 12 on Mackey StDURING NASSAU GLASS COMPANYSART GALLERY & LIGHTING CENTREPre~Christmas SaleA M O S F E R G U S O N O R I G I N A L ST a k e a d v a n t a g e o f t h i s o p p o r t u n i t y t o s a v e !L i m i t e d s u p p l y o f A m o s p a i n t i n g s a v a i l a b l e D o n t m i s s o u t o n o w n i n g a c h e r i s h e d A m o s O r i g i n a l F ICUS TREE a t Prince Charles Drive, tipped over since Hurricane Irenes visit. GL AD T O SEE RODNEY MONCUR RATIFIED
THE Cabinet Office announced that Education Permanent Secretary Elma Garraway has been asked to continue in office until the end of the current school year in July 2012. In a statement issued yesterday, the Cabinet Office said: Mrs Garraways continued engagement beyond her expected retirement date will facilitate certain organisational and administrative changes being implemented at the Ministry of Education. The Cabinet Office noted that Mrs Garraway has given 49 years of exemplary public service. During that time, she earned the full confidence and respect of successive administrations, the statement said. Prime Minister Hubert Ingraham, who first appointed Mrs Garraway to the post of permanent secretary, expressed his good opinion and high regard for the senior administrator and his satisfaction at her having agreed to postpone a well deserved retirement to complete yet another assignment in the service to the Bahamian people. LOCAL NEWS THE TRIBUNE FRIDAY, NOVEMBER 4, 2011, PAGE 5 The Bahamas very own street philosopher B y AVA TURNQUEST Tribune Staff Reporter firstname.lastname@example.org P LP MP Melanie Griffin slammed the government yesterday for subjecting troubled y ouths to horrifying condi tions as a result of its poor management of teen rehabil-i tative centres. Poor housing, maintenance and schooling at the Simpson Penn Centre for Boys has engendered extremely low staff morale and increased breakouts, according to the f ormer minister of Social Services. "If these young men are housed in conditions unsuit a ble for animals, how does it impact their behaviour while confined, and then uponr elease? Ms Griffin asked. Are we contributing to mak ing criminals? That is the q uestion we have to always be asking. Ms Griffin added: The government has had moret han enough time to build a proper facility at Simpson Penn to house the older boys it was mandated to take by the Child Protection Act. It has had more than e nough time to hire staff to p roperly manage, secure, and supervise the residents. After touring the centre earlier this week, Ms Griffin said she was horrified by t he state of the housing. Many of them were sleeping on mattresses on the floor a nd some of the existing beds a re supported by board. In the cottages, the area that is usually the sitting area therew as hard wooden makeshift benches and tables. In the kitchen, cabinets w ere unhinged and hanging, t he doors were hanging, bathrooms were out of order, uncleaned and smelly, rust w as just about everywhere, Ms Griffin said. Due to the lack of external s ecurity, Ms Griffin said staff a t the boys centre were fear ful for their safety and out n umbered by the residents in their care. While declining to comment on the living conditions at the c entre, Marva Russell-Minns, deputy director of Social Services, refuted claims that older residents were left idle. She also confirmed that there was a psychologist on staff at the centre. We don't have as many programmes as we would like to have at the centre, but theya re engaged in culinary arts with the chef at the centre, Mrs Russell-Minns said. We have a tailor on staff, and not all of the boys, but some of them, do tailoring. They are assigned to the laundry, there are laundresses o n staff. They work along with them and are taught how to operate a washing machine a nd a dryer. T he core education unit at the centre is a Ministry of Education programme thatg oes up to Bahamas Junior Certificate (BJC Children are grouped a ccording to ability, and resid ents capable of sitting the Bahamas General Certificate of Secondary Education ( BGCSE) exams are also facilitated, Mrs Russell Minns said. W hile it is not mandatory f or children over 16 to attend school, Mrs Russell-Minns s aid the department is in the planning stages for a vocational programme for older residents. Through the volunteer programme we expect to get some persons with good character and integrity that can come in and teach the resi dents some skills. We would also like to improve on our m entoring programme, we have persons who would like to do it but its not sustained. The children are not just sitting, there are activities for them to do, Mrs RussellMinns said. It may not be a large variety but they do engage them in activities and we rotate them. SUMMIT Academy PTA's adult casino night fundraiser Shanghai Nights will take place tonight from 7pm until midnight. Previous reports indicating the event was scheduled for Saturday, November 5, were incorrect. The casino will be held on the school grounds next to Club Waterloo on East Bay Street. Tickets are $40 in advance, $50 at the door and include dinner and $100 in play money. There will be more than $10,000 in prizes. Call 394-4781 or email email@example.com for more information. RAISING MONEY IN SHANGHAI EDUCATION SECRETARY ASKED TO CONTINUE PLPMPHITS OUT AT GOVERNMENT OVER TROUBLED YOUTHS Y AMACRAW MP M elanie Griffin, flanked by Elizabeth MP Ryan Pinder and Fox Hill MP Fred Mitchell, hits o ut at poor living conditions and overcrowding at the Simpson Penn Centre for boys. Photo: Tim Clarke
CENTRAL Andros natives b roke into an enthusiastic r ound of applause as government executed a $1,738,490 contract for the reconstruction of the Fresh Creek Dock. Public Works and Transport Minister Neko Grants aid the dock will be totally r ebuilt, with new sheet piling, concrete slab paving, renovations to the dock masters building, construction of a timber dock for fishing vessels, solar lighting, fencing and d rainage wells. T he existing Customs and Administration building will also be refurbished. Mr Grant said the reconstruction of the Fresh Creek Dock is one of three majorp rojects that will be undert aken thanks to a $10.1 million loan agreement between the government and the C aribbean Development Bank (CDB The other projects are the r ehabilitation of the Deep and L ittle Creek Bridges in South Andros and re-construction of Three Island Dock in North Eleuthera. Among those witnessing the event at the LighthouseY acht Club on Wednesday w as Minister of State for Local Government Byron Woodside, Permanent Secre-t ary Colin Higgs, director of P ublic Works John Canton, project engineer Dion Munroe and local engineerG arnett Campbell. A lso present were local government Officials including Sr Deputy AdministratorO scar Munroe, heads of gove rnment departments, leaders of the religious community and members of the Cen-t ral Andros Junior Council. M r Grant thanked the CDB, the Ministry of Finance and the Ministry of Lands and Local Government for their support in planning the project. H e also acknowledged the technical team including Mr Munroe for their efforts in advancing the project to its p resent stage. He congratulated Emille Knowles of Knowles Cons truction Co Ltd on getting the contract. Knowles Construction b rings many years of experi ence in the execution of public and private sector projects. We therefore look forward tot he successful completion of the proposed works within the allotted time frame, he said. M r Woodside said the signing was historic. He said although Local G overnment has not had suff icient funds in some districts for up to three years, major works are still being carried out throughout the islands by central government. The peoples money is b eing used for the betterment of the people. Today its all about Andros, Mr Woodside said. MINISTER OF Public Works and Transport Neko Grant (3rd from left) chats with Emille Knowles. Byron Woodside, Minister of State for Local Government (left and Permanent Secretary Colin Higgs (right MINISTER OF State for Local Government Byron Woodside and Minister of Public Works and Transport Neko Grant talk near the Customs and Administration building in Fresh Creek as Sr Deputy Administrator Oscar Munroe looks on. Photos:Letisha Henderson/BIS LOCAL NEWS PAGE 6, FRIDAY, NOVEMBER 4, 2011 THE TRIBUNE NEW DOCK ON THE WAY FOR CENTRAL ANDROS I NSPECTING THE DOCK i n Fresh Creek, Andros are, from left in front row: director of Public Works John Canton; Emille Knowles of Knowles Construction, and Permanent Secretary Colin Higgs. The peoples money is being used for the betterment of the people. Today its all about Andros. M inister Byron Woodside
LOCAL NEWS THE TRIBUNE FRIDAY, NOVEMBER 4, 2011, PAGE 7 T HE ROTARY Club of East Nassau and the Bahamas Association for the Physically Disabled changed the lives of many yesterday when they donated 50 wheelchairs to 50h andicapped persons. President of the Rotary Club of East Nassau Adam Darville said: This is what Rotary is all about in the Bahamas, helping people and helping the community. Among the guests at the event was Sir Durward Knowles, the renowned sailor. a nonymous,said he believes safety is a joke to some captains. There is near complete lack of any form of safety precautions in the formof life boats, life jackets, noticesa dvising people of what to do in case there is an accident or if a boat starts to sink, he said. This is the same reason w hy that plane crashed in Lake Kilarney because people dont maintain their crafts. He also said many of the boats display the lowest degree of hygienic standards. The source criticised the filth, the roaches, just the totall ack of upkeep, the non-working toilets andthe terrible food. H e believes that mail boats, sometimes carrying 60-80 people, should be regulated as strictlyas airplanes, and safety instructions should be given at the beginning of each voyage. Every time you get on an a irplane, he said, they tell you the instructions, even if youregoing from here to Andros in the plane before it takes off you know. But no one takesnotice, no one listens to it. And whenit gets toA ndros and takes off again it informsthe passengers exactly of procedures, the lights, the emergency windows and all. Nothing is done on the m ail boats. If something happened no one would have the slightest idea of what to do. To add fuel to the fire, the man said, no one really knows where the life jackets a re on many of the boats. If they know, they cover up where they are with tons and tons of freight so you cant get to them. A boat can sink very fast, so passengers shouldknow where the (lifev ests) are. He admits a handful of mail boats do a good job, keeping their facilities clean andensuring that proper safety equipment is on board. Evidence of the serious c onsequences of marine accidents was seen almost 60 years agowhen the Zelma Rose, a 30-ton motor vessel, sank in minutes. T hirteen of the boats 26 passengers and crew piled onto one small dingy in an attempt to savetheir lives. Others clung to floating oil drums and swam for their lives. Still others drowned. P resented with the mans accusations, Port Controller Commander Patrick McNeil brieflyoutlined some procedures that must be followed for mail boat owners to have licenses renewed. A ship inspection officer, he said, goes on board, sees what is there in terms of life savingequipment and that they are operational. Hatches shouldbe able to be properly secured, andhe would havec hecked and certified those for the time period they are on board. Insuranceis also a must to cover passengers and cargo. C ommander McNeil admitted, however, that although boat captains are expected to follow standards, whether they maintain the vessel for the duration of the license is solely their responsibility. CONCERNSRAISEDOVERMAILBOATSAFETY f f r r o o m m p p a a g g e e o o n n e e MEN QUIZZED AS FIREARM FOUND THREE men were questioned by police after officers found a handgun and ammu nition. Mobile Division officers were on patrol at 12.15am yesterday on Scott Street, when they saw a white car with three men inside acting suspiciously. After conducting a search, the officers found the weapon and ammunition, along with a mask and a pair of gloves. The investigation continues. R OTARYS GIFT CHANGES LIVES ADAM DARVILLE, president of the Rotary Club of East Nassau, addresses the audience at the presentation of the wheelchairs. LORETTA BUTLER-TURNER, Minister of Social Services, helps one of the recipients into his new wheelchair. ADAMDARVILLE, president of the Rotary Club of East Nassau, with special guest at the even Sir Durward Knowles. Photos: Tim Clarke /Tribune Staff
A t a street meeting held on t he corner of East and Hay S treets last night leader of the DNA Branville McCartney announced the candidates and called on Bahamians to come together, regardless of party l ines. Our challenges are great, he said, but the spirit of the B ahamian people unites us to be even greater. The DNA announced that K endall Smith will run in the Fox Hill constituency, Maur ice Smith in the constituency of St Thomas More, Prince Smith in the St Annes constituency, William Hunt in South Eleuthera and Celi Moss will represent the DNA in the Farm Road and Cen t reville constituency. Kendall Smith, born in New Providence, has a Masters degree in Professional Writing f rom Dominion University, Norfolk, Virginia. Smith has experience in s ales and marketing, public relations and purchasing and negotiating with local and for e ign entities. He is manager of one of the countrys largest wholesale and retail organi zations. P assionate about the community, Smith founded Save Our Nation (SON which continues to affect the lives of many young Bahami ans. S mith has also served as a p art-time lecturer at The Col lege of The Bahamas School of English Studies. M auric Smith, born in New Providence, is a husband of 41 years and proud father of six children. Smith was graduated from Central State Uni versity in Wilberforce, Ohio, with an honours degree in A ccounting and Economics. He is an experienced banker of over 40 years, currently working as the General Manager of Austrobarik (Overseas) Ltd. William Hunt, a native of S outh Eleuthera, is a husband and proud father of five. Hunt has experience in the food and beverage field owning his o wn restaurant and lounge for the past two year. Hunt is currently the owner o f a commercial fishing business. He said he wants to repre s ent the constituency of South Eleuthera to take back the land and empower the Bahamian people. P rince Smith, a Nassau native, went to High School in Grand Bahama. Smith attended College of New York of the City University of New York (CUNYg raduated in 1995 with a B achelor of Arts degree in Political Science, a minor in Public Policy and a minor inE conomics Management and Administration. Smith is the owner and Business Manager of Bahamas Vacation Home & Villa Rentals and has also served as Verification and C ontract Manager, Settlement Department Manager, Operations Compliance Manager, Inventory Manager and Loss Prevention Manager for several of the largest, leading hotel and resortp roperties, wholesale and retail companies in the Bahamas. Celi Moss, born in the F arm Road area of New Providence, is determined to represent the area thatr aised him from a boy to man. Moss is a seasoned sales m an and passionate lover of the arts, culture and film industry. In 2004, Moss created and f ounded the Bahamas Film Festival (BFF for aspiring Bahamian filmmakers to showcase their tal ents. Among his efforts to give b ack to the community, Moss c reated the Farm Road Com munity Association. In a press statement r eleased yesterday, the DNA said the street meeting was a way to reignite the fearless Bahamian spirit that has been dampened by this time of hardship. those who are not eligible to b e here as they are having a crippling impact on the countrys educational system,h ealth care and social structure. Earlier this week, Mr S ymonette defended the governments efforts to reduce t he backlog of citizenship and permanent residency applications that have languished f or months and in some cases y ears at the Ministry of Immigration. A ny person born in the Bahamas after 1973 has a constitutional entitlement to a pply for citizenship between the ages of 18 and 19, regardless of their parental heritage, Mr Symonette said. He said there are many people who were born in the Bahamas, attended the local s chool system, lived in the c ountry all their lives, but feel d isfranchised by the fact they have not been regularised. "They are not Bahamian purely because their parents were not born Bahamian I do not think many people appreciate what that meanst o thousands of people in this c ountry," said Mr Symonette. Describing Mr Symonettes remarks as vague and non-c halant, the DNA leader s aid the biggest immigration challenge remains illegal immigrants and the way they a re treated in the Bahamas. It seems as if it is all right for people in the Bahamas i llegally to use our schools and social structures. We need to determine if w e are serious about dealing w ith our immigration probl ems and decide how to deal with it in a humane way. W hile he was a Cabinet M inister, Mr McCartney said, t here were 37 shanty towns in New Providence alone and in some Family Islands the ille-g als outnumber Bahamians. Mr McCartney questioned what is being done to crack d own on these illegals. The government should r egularise those persons who have a constitutional right to be here, however, the country c annot take on any more illeg als, said Mr McCartney, they should not be given the same rights as Bahamians, nor be on the same playing f ields. He said as a small country with a population of 350,000 a nd millions of people visiting each year, the country has t o be careful not to be inund ated with outsiders. M r McCartney said $200 m illion is allocated in the annual budget for education,y et he does not know of anyw here else in the world where p eople in a country illegally can use the education system for free. In Princess Margaret Hospital, eight out of 10 beds are being occupied by illegal i mmigrants, said Mr McCartn ey while there are persons d ying in the hallways that are Bahamian. Mr McCartney added that w hile everyone should be prov ided medical treatment, B ahamians must come first. LOCAL NEWS PAGE 8, FRIDAY, NOVEMBER 4, 2011 THE TRIBUNE Devard Francis said he n eeds the report in order to move forward with several law suits he plans to file on behalf of his clients. He represents the families for all of the men involved in t he October 5 plane crash, e xcept pilot Nelson Hanna. Mr Francis was tight-lipped on who the families intend to s ue, however, sources said t hey will file claims against the G overnment, the manufacturer of the plane and a comp any that inspected the airc raft and cleared it for flight. The findings of the crash probe, which was prepared byt he Department of Civil Aviation, were exclusively publ ished in T he Tribune e arlier this week. Tourism and Aviation Mini ster Vincent VanderpoolWallace said the official r eport is expected to be r eleased in less than month. However, Mr Francis said h e still has no idea what is in the report except for what he read in The Tribune d espite his many efforts. He said: This is ridiculous. I t has been more than a year a nd the families have yet to know what happened that day. We have written over a dozen letters to the aviation department and have gotten n o response. I called them up to yesterday but they insist the report is still not ready. How l ong does this process take? Most of the victims families are suffering financially with-o ut the men who were the bread winners of the households. Some of these people are l iterally going through a financial drought without their husbands and brothers. The insurance companies are not releasing money to them because the report has not been released. T hese people are going through hell, said Mr Francis. God forbid another plane c rashes and other families have to go through this delay. You have to remember that there were more victims than the people who died that day.T heir families have now also become victims. The 90-page report prep ared by Delvin Major, an investigator at the Departm ent of Civil Aviation, revealed several contributing f actors to the crash that killed all nine people aboard. Pilot N elson Hanna was not certified to operate commercial charter flights; he and his copilot ignored earlier signs that the planes left engine was fail-i ng and the Cessna 402C was more than 500lbs overweight. I t also revealed Mr Hanna turned off the power to his p lanes right engine, which showed no mechanical probl ems, while the planes left e ngine was failing and smoking. The Acklins Blue Air Charter went down minutes after t ake off from the Lynden Pin d ling International Airport on October 5, 2010. A ll nine men on board the plane died as a result of the crash. They are Clarence W illiams, 38; Chet Johnson, 39; C orey Farquharson, 41; Junior Lubin,23; Devon Storr, 27; Chanoine Mildor, 44; Lavard C urtis, 26; Delon Taylor, 28, and pilot Nelson Hanna, 43. exercise, but evolved into a pitched battle over the pro-c eeds of a metal trading busin ess accumulated between 1 992 and 2000. Justice Isaacs said that there appeared to be many millions of dollars earned by the business over that period, which is to be divided e qually between the two b rothers. In a 12-page decision, Justice Isaacs gave reasons for dismissing the request for him to step down from the case. After dismissing the r ecusal application, the court w ent into confidentiality hearings from which the press was excluded. M uch of the hearings have b een clouded in confidentiality. However, Mr Justice Stephen Isaacs in open court on October 25 gave reasons why he refused to recuse himself from the case at ther equest of Rami Weisfisch. T he elder Weisfisch had requested the judges recusal on the basis that a fair minde d and informed observer w ould conclude that there is a real possibility that Justice Isaacs was biased. Rami gave six reasons for his conclusion to support his request that the judge step down. Rami has set a very low b ar for himself in that he argues that a real danger of bias exists as opposed to actua l bias, said the judge. M r Justice Isaacs went through each of the complaints made by the elder Weisfisch, concluding that the recusal application is hereby dismissed. T he case goes back to 2006 w hen Rami Weisfisch, 65, was engaged in a court fight in London with his brother, A mir, over claims that Rami r efused to account to his younger brother for their partnership profits. The two brothers were the owners of one of the most prominent metals trading firms in Lon-d on Metals Resources G roup (MRG closed in 2000. f f r r o o m m p p a a g g e e o o n n e e f f r r o o m m p p a a g g e e o o n n e e f f r r o o m m p p a a g g e e o o n n e e f f r r o o m m p p a a g g e e o o n n e e BACK TO COURT FOR BROTHERS LONG-RUNNING BATTLE LAWYER FRUSTRATED BY REPORT DELAY BRAN:IMMIGRATION DRAINS THE NATION DNAREVEALSLATESTROUNDOFCANDIDATES
By DR HUBERT MINNIS AS the MP for Killarney, I had a vision of working fort he people, a vision of peop le working with people. This vision has come to fruition. We decided as a community to partner together with government and each othert o transform our homes and f amilies, improve our environment, and meet the needs of the less fortunate amongst us. Killarnians embraced these concepts through our various commu-n ity programmes. Killarney Kares,Klick with Killarney and Konnect with Killarney are successful catalyst community programmes launched t hroughout the years. Killarney now wants to introduce you to our KYNP rogramme.Knowing Your Neighbour means that you know their needs, theirw ants and what it takes to meet the desired results. Wea lso understand what the g overnment can do, what we c an do for ourselves, and finally what we can do for others. W hen one examines this concept, it is not a new one. From the medical industry,y ou must know your status t o prevent illnesses and outbreaks.In the banking industry, you should know y our customer to prevent fraud and illegal transactions. E ach Member of Parliament is a leader within the communities represented; we must show the leadership qualities by working to consolidate those communities through the facilitation ofN eighbourhood Associations. Our goal is to celebrate the family and to strengthen o ur communities through social, civic, spiritual and physical initiatives. Whole-n ess is our focus, making a difference, moment by moment, event by event,o ne life at a time. Making a difference involves sacrifice. R ichard Whately states: A man isc alled selfish not for pursu ing his own work, but for neglecting his neigh bours. As a community, we will need to sacrifice our time, finances, our skills and ideas. When we pool our resources, many benefit. J esus miracle of feeding the m ultitude with five loaves a nd two fish was done to t each us an important les son; a small sacrifice can y ield much, when faithfully g iven and properly allocat ed. Volunteerism is the vehi c le by which we give of our t ime and skills to serve oth ers. Our government in recognition of such has called us as a nation to volunteer. Although every communi t y has universal needs, each has its unique needs. By knowing your neighbour, it enables you to know the n eeds of the elderly, our children, the sick, the hun gry, and all that are disenfranchised. Such awareness ought to motivate us to respond. What are proper responses? Mentoring, particularly m ale mentoring, tutoring, c ar-pooling, community c lean-ups, community gard ening, assisting the elderly (grocery or medicine picku p), and home repairs are j ust some examples of vol unteering within our com munity. K illarney was successful in p assing the spirit of KYN to bridge the generations, through the introduction of our summer tutoring programme. Young students tutored kids in core s ubjects. We look to expand and have retired teachers within our communities facilitate t utoring in their core compe tencies. In addition to services and assistance, social interaction is vital as well. Studies conducted at the University of Minnesota shows that seniors who have regular c onversations with their n eighbours and depend on t hem, have much better o dds of surviving strokes than those with less interact ion. K illarney is excited, enthusiastic and motivated to make a difference. Therea re eight Neighbourhood A ssociations in Killarney, that work tirelessly to embrace the core principles previously mentioned, and we are excited that more associations are on the horizon. Our challenge is to work t ogether to maximise our i ndividual contributions to i mprove our communities. W ith imagination, innova tion, sacrifice and commitm ent, we can make a differe nce. So I challenge you today to Know Your Neigh bour. T he Killarney Constituenc y is pleased to extend our KYN programme to Christ mas Caroling during the Yuletide Season and a Killarney Bowling Tournament for all our Neighbourhood Associations.Stay in touch with Killarney. The second a rticle in this KYN series w ill further explain our A ssociation's and Commun ity Programmes, like crime watch, CCTV and how we a re embracing the KYN prog ramme. For a better, stronger, safer, healthier, and futuristic Bahamas, letu s all begin KYN. It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change. Author unknown. LOCAL NEWS THE TRIBUNE FRIDAY, NOVEMBER 4, 2011, PAGE 9 TIME TO REACH OUT TO YOUR NEIGHBOURS D R HUBERT MINNIS h as called on people in Killarney to join in a new programme, Knowing Your Neighbour, the latest of a series of schemes in the area to try to bring people t ogether as a community.
B y NATARIO McKENZIE Tribune Business Reporter firstname.lastname@example.org SUNWING, the Canadian l ow cost airline, yesterday said it expects load factors on its newly-launched Nassau routeN assau to be above 90 per cent. Sunwing made its inaugural flight from Toronto to Nas sau yesterday and Lawrence Elliot, vice0-president for business and corporate affairs, s aid: "We're a very aggressive company. We don't like emp ty seats. I would suggest that w e will operate above 90 per cent load factors all the time." We have a plan that we will operate, and are committed to operate twice weekly right through to next yearw ith our Boeing 737-800, 189 seats, and we will meet thatc ommitmentl. But we have a long-term goal." Mr Elliot said the airline is already in talks about expanding its services within the Bahamas, with Grand Bahama being the most likely next destination. We are 100 per cent leisure driven,he added. We're not engaged in the commercial market carrying business, and what drives us is the product itself. Thats why I have always been a big believer in the Bahamas, because to me everything is here. You have the beaches, the casinos, the shows as well as golf. That's what fills our planes. What we are looking for is to see if we can work close ly with the hotel infrastruc ture, and see if we can develop a product that we think will be suitable for our market." $4. 68 $4. 51 $4. 69The information contained is from a third party and The Tribune can not be held responsible for errors and/or omission from the daily report.$ $5.09 $5.19 $5.04 T HETRIBUNE SECTIONB email@example.comFRIDAY, NOVEMBER 4, 2011 *Trademark of The Bank of Nova Scotia, used under licence (where applicable) Entertain at home. Discover whats possibleSocializing at home is much cheaper than going out. You and your friends can take turns hosting get-togethers on the weekends.Thats one easy way to save money. For more simple tips, get your free booklet at your nearest branch or visit us online today.scotiabank.com/worldsavingsdaySimple Saving Tip #15 NASSAU I FREEPORT I ABACO I ELEUTHERA I EXUMA I FINANCIAL CENTRE I CORPORATE CENTRE I www.famguardbahamas.com +242-396-1300+242-396-1300+242-396-1400+242-396-4076+242-396-4076 Charting Your Financial Future Well help you chart your course for life, health, and wealth. FAMGUARD CORPORATION +242-396-4000 By NEIL HARTNELL Tribune Business Editor ATLANTISis anticipating a very strong peak FebruaryApril winter season, Kerzner International (Bahamasd ent said yesterday, with booki ngs for the first two months of that period 35 per cent up on 2 011 comparative levels. While emphasising that the booking picture could changef requently, George Markantonis, who is also the companys managing director, said that driven by very strong group bookings, April 2012s bookings w ere currently up on the same m onth this year by 28 per cent. By NEIL HARTNELL Tribune Business Editor THE BAHAMAS TELECOMM UNICATIONS COMPANY (BTC f or the revenue and gross margin increases generated by Cable & Wirel ess Communications (CWC C aribbean businesses during the six months to end-September 2011, it was revealed yesterday, producing $37 million in operating income and a $177 million top-line. Unveiling the first-half results for BTCs 51 per cent majority owner yesterday, Tony Rice, CWCs Londonbased chief executive, described BTCa s having high potential and a lot o f upside once a major transformaBy NEIL HARTNELL Tribune Business Editor T HE BAHAMAS TELECOMMUNICATIONS COMPANY (BTC a nnum costs by slashing the wholes ale and retail pre-paid phone card c ommissions to market norms, it was revealed yesterday, with its major-i ty owner paying $6 million less for i ts 51 per cent stake than originally advertised. Tim Pennington, chief financial offi cer for Cable & Wireless Communications (CWC analysts conference that the company ultimately paid $204 million, not the advertised $210 million, for its con t rolling equity interest because BTCs working capital on the deal-closing d ate was lower than agreed with t he Government. T he Ingraham administration has never revealed that the gross pricep aid by CWC slipped by $6 million, b ut Mr Pennington revealed: The final price was $204 million, not $210 million. It was a post-completion net asset a djustment there, so the final consid eration was $204 million, not $210 million. O ther noteworthy items disclosed b y CWC yesterday included the savi ngs it has achieved from introducing the EZTop-Up electronic top-ups forp re-paid cellular customers, a move t hat shocked the market and resulted in what some may perceive as a wealth transfer from street vendors/whole-s alers back to BTC. By NEIL HARTNELL Tribune Business Editor T HE $3 MILLION year-over-year d ecrease in international trade taxes (Customs duties concern, a former finance ministers aid yesterday, warning it was a sign that the 2010-2011 Budget tax increases had not yielded more revenue. J ames Smith, also a former Central B ank governor, said the continual primary deficits the Bahamas was running were becoming a greater problemt hat was getting worse and worse, because recurrent revenues were failing to keep up with the Governments f ixed-cost or recurrent spending. Emphasising that he tended not to look at the fiscal numbers on a monthly basis, due to seasonal and payment timing issues, M r Smith nevertheless highlighted to Tribune Business the f act that international trade taxes for the first two months of the 2011-2012 fiscal year had declined by $3 million year-overyear. W hile this was indicative of continuing economic weakness, Mr Smith added: That should be a major concern, because that will be a year after tax increases and, other things being equal, ATLANTIS: WINTER BOOKINGS UP 35% Resort eyes very strong peak 2012 winter, w ith February/March leading way and April up 28% 2012 group bookings running 18-20% ahead of this year Thanksgiving occupancies expected to be in 90% range, compared to 53% in prior years SEE page 4B ANTICIPATINGASTRONG SEASON: Atlantis HIGH POTENTIAL BTC ACCOUNTS FOR 100% OF LIME RISE Carrier generates $37m EBITDA, and $177m top-line, in six m onths post-privatisation Responsible for all LIMEs sales and gross margin increase Cost centre drop from 250 to 40 Original workforce to drop 35% S EE page 2B BTC RECOVERS $8M VIA PHONE CARD MARGIN CUT CWC pays $6m less than advertised for 51%, going from $210m to $204m $79m in BTC balance sheet cash at end-September Cash inherited used to finance restructuring costs of $52m SEE page 4B $3M TRADE TAX FALL BIG CONCERN Ex-minister says sign tax increases not worked Continuing primary deficit becoming greater problem JAMESSMITH SEE page 3B NEW AIRLINE EYES 90% N ASSAU LOADS SEE page 4B
BySIMON COOPER R es Socius PERSONALLY, Im not in favour of regulating business, although I am in favour of generic controls such as health and safety, paying taxes andb eing fair and honest generall y. Beyond that, as far as I am concerned, all that regulation achieves is to push commercial expenses (and prices higher, while feeding fat cat tastes for corner offices and foreign business trips. Besides,b ribes are cheap and welcomed by many bureaucrats, and thats a fact. Decades ago, when New Zealand was in serious econ omic trouble, the government hired a brace of business consultants for advice. Tell us what youd do if New Zealand was your business, theya sked. Would you be surprised t o know what they were told? Deregulate Your laws are clogging up the wheels of commerce, and making it harder to trade F acilitate Your job is to lubricate the market with opportunity, so businesses can make the profits that pay the taxes that fund your programs. Why are you finding things that stop this happening? Say Yes Get rid of the notion that civil servants are in charge, and that their job is to be obstructive in terms of their own rules. Teach them to be supportive instead. T he rest is history, of course, a nd today New Zealand ( another isolated island nation by the way) has a robust economy that others envy. Newbie business people register instantly on the Internet theret hese days. Moreover, differe nt departments combine in single conveniently-located offices, so income tax, employee and other enquiries can take place across a single desk. Malaysia, which has been surprising people recently,t ook this a step further by merging company, social security, tax and employment fund registrations into a single electronic process. Just imagine how many different things would be here, too, if walls came down and vested inter-e sts were slapped down as w ell. I heard of a fellow who went over to the UK to establish a branch of his business there. When he registered for tax he asked for an explanation oft he system. Would you believe t hey provided him with two inspectors for the morning, and that their opening words were you dont have to pay more tax than is absolutely necessary sir, and were here to show you how. I guess this has a lot to do with reintroducing old-fashioned government civility. My grandfather was a civil servant. My dad told me he wasr equired to sign his letters off b y writing I am, sir/madam, y our obedient servant above his signature. Now thats a way to get the role of regulators right whos supposed to be in charge. N B: Simon Cooper is a founding partner of Res Socius, a business brokerage firm authorised by the Bahamas Investment Authority that facilitates the sale and purchase of businesses. Con-t act 636-8831 or visit www.ressocius.com. BUSINESS PAGE 2B, FRIDAY, NOVEMBER 4, 2011 THE TRIBUNE BUSINESS MUST LEAD, NOT THE REGULATORS S IMONCOOPER t ion of its operations and culture had occurred. T he Bahamian carriers $37 million contribution helped drive CWCs group operating income higher by 4 per cent yearo ver-year to $443 million, with total revenues for the UKb ased operator growing by 24 per cent to $1.4 billion again aided by BTC. CWCs results presentation again showed how vital the BTC acquisition was to the near-term growth prospects for its regiona l arm, LIME. BTCs inclusion accounted for all LIMEs revenue growth during the six months to end-September 2011, the $ 177 million from the Bahamas driving the top-line from $399 m illion to $576 million. Without BTC, LIME would not have been able to report its 4 4 per cent first half revenue growth. The same went for gross margins, where BTCs $145 million contribution took the resto f the Caribbeans 1 per cent growth, or $300 million, to $445 m illion and 49 per cent growth. And BTCs $37 million operating income or EBITDA drove L IMEs $95 million, or 17 per cent growth, to $132 million. The percentage increase here, though, dropped to 15 per cent, but B TC still accounted for 28 per cent more than one-quarter or o ne-in-four dollars of LIMEs operating income. T elling London-based analysts that BTC was shaping up n icely, Mr Rice said: Theres a long way to go in starting to transform this high potential business. Theres a lot to do, but were starting on a very major transformation exercise and see a lot of upside potential from it. On BTCs Voluntary Separation Programme (VSEP t iative designed to right-size BTCs estimated 1,200 strong workforce and get its cost structure in line with international benchmarks, Mr Rice said more than 400 applications had b een approved. This equated to about 35 per cent of the workforce, and 260 persons had left the business by end-September 2011, with a fur t her 100 set to go before year-end. Weve exceeded our expectations with the implementation of the plan, both in terms of the number of applications, but also in terms of the speed at which the plan is being imple m ented, Mr Rice said. He admitted that the level and speed of departures does give us some challenges in terms of staff capacity and capabilities, b ut it was necessary as it allows us to upskill the business and recruit back into areas such as retail sales and customer service. Mr Rice added of the VSEP, which was generating costs a nd savings as anticipated: Its a pretty important milestone for us, because were addressing an almost $100 million total staff cost in a business that turns over almost $350 million, so its av ery high proportion, 28-29 per cent (staff costs to turnover ratio). A key element in the acquisition process, agreed upfront with the Government, was to improve the cost and opera t ional efficiency of BTC to enable it to compete come the day when liberalisation arrived. CWC said that since taking majority control, management a ccounts were now being produced in four days, as opposed to 20 days previously, while cost centres had dropped from 250 to 40. For the six months to end-September, BTC generated $123 million, or 69 per cent of total revenue, from in cellular rev enues. Another $9 million came in broadband revenues; $36 million from fixed-line voice and $9 million from enterprise data. Total operating costs were $108 million. The CWC chief executive said it had found a fair amount of low hanging fruit when it entered BTC, and the first six months had perfectly encapsulated CWCs mission of bring ing world-class telecommunications capabilities to smaller mar kets. BTCs fourth generation (4G second half of CWCs 2011-2012 financial year, and Mr Rice added: Something that will take longer but is equally important is the cultural transformation of BTC into a customerfocused organisation. Its going to take some time, but needs to be completed before the mobile market is liberalised towards the end of 2014. BTC, he said, will also be integrated into LIMEs regional model. This had already been done with BTCs IT and inter national network connections, and other targeted areas for this will be the regional enterprise business, carrier services and procurement/purchasing. This, of course, not only has the ability to make improved operational efficiencies and customer services, but reduce operating costs, Mr Rice added. BTC was being transformed into a results, performance-driven organisation with units organised along the lines of the LIME model. Emphasising that both CWC and the Government were pleased with BTCs performance during the first six months post-privatisation, the CWC chief executive said the company had addressed one of the real bugbears in Bahamian telecommunications by eliminating inter-island calling charges. Mr Rice said that he asked Prime Minister Hubert Ingraham when the deal closed that if there was one thing CWC should change, what should it be. Mr Ingraham said the inter-island surcharge, which he described as an irritation for everyone in the Bahamas. Having done this, Mr Rice said CWC had also helped BTC to come to grips with the very high level of dropped calls from its 2G network. GSM traffic on it had increased by 7 per cent, Mr Rice joking about the continued existence of a 2G network. Reiterating that the BTC acquisition was proof of CWCs abilities, Mr Rice said the company was working to improve its products, services and value proposition offered to Bahami an consumers, businesses and the Government. Foundations were being laid to undergird the potential for the future growth and profitability of the business. Among the new product and service offerings set for launch in the second half of CWCs financial year are high speed mobile data and the iPhone. FROM page one HIGH POTENTIAL BTC ACCOUNTS FOR 100% OF LIME RISE
BUSINESS T HE TRIBUNE FRIDAY, NOVEMBER 4, 2011, PAGE 3B *** LEADERSHIPSEMINARS/WORKSHOPSWednesday,November9th-2:30pm-3:45pm SUMMITSCHEDULE( subject to change)REGISTERTODAY! LIMITED SPACE AVAILABLE! Seminar # 1 Steps To Starting A Business Mr. Larry Jordan Seminar # 2 Keys To Balance Marriage & Family LeadershipMr. John Smith Seminar # 3 Keys To Securing An Managing Finances For Your VisionMr. Dwight Nichols Seminar # 4 Ways To Develop Youth For LeadershipDr. Dave Burrows Seminar # 5The Role Of Media In Leadership EffectivenessMs. Margaret ElcockSUNDAY,NOVEMBER6TH9:30am-12:00noonSESSION#1THE SPIRITUAL FOUNDATION FOR EFFECTIVE LEADERSHIP Dr. Jerry Horner MONDAY,NOVEMBER7TH 8:30am-10:00pmRegistration (Lower Hotel Lobby) 10:00am-11:00amFormal Opening Ceremonies / Dignitaries / Opening Address 11:00am-12:00noonSESSION #2THE TOP QUALITIES OF THE 21ST CENTURY GLOBAL LEADER Dr. Myles Munroe 12:00noon-1:00pmSESSION #3 THE DYNAMICS OF EMERGING THIRD WORLD LEADERSHIP TBA 1 :30pm-7:15pmLunch, Afternoon Break and Leadership Networking 6:00pm-6:45pmDelegates Orientation and Leadership Reception 7:15pm-9:45pmSESSION #4Opening Plenary Session ITWLA and ILTI Presentation and Introduction of New Structure -Dr. M. Munroe/Dr. P. MorganTHEPRINCIPLESOFPERSONAL,CORPORATE&NATIONALLEADERSHIP-Dr. Myles Munroe TUESDAY,NOVEMBER8TH-TRACK #1 PERSONAL LEADERSHIP DEVELOPMENT8:00am-9:00amSESSION #5DISCOVERING PERSONAL PURPOSE Dr. Myles Munroe 9:00am-10:00amSESSION #6CULTIVATING PASSION IN LEADERSHIP Mr. Martin Williams 10:00am-11:00amSESSION #7CAPTURING AND CASTING PERSONAL VISION Dr. Derek Grier 11:00am-11:30amBreak 11:30am-12:30pmSESSION #8ACCOUNTABILITY&CORPORATERESPONSIBILITYINLEADERSHIP -Dr. Richard Demeritte12:30pm-1:30pmSESSION #9 DEVELOPING PERSONAL DISCIPLINE, ETHICS AND VALUES Mrs. Sylvia Jordan 1:30pm-7:00pmLunch, Afternoon Break and Leadership Networking FreeTime-Networking,Rest,Relaxation,Fellowship(Exhibition&Resourcesopen) 7:00pm-8:00pmSESSION #10REDEFINING THE THIRD WORLD MENTALIT Mr. Raphael Massiah 8:00pm-9:00pmSESSION #11THE PRINCIPLE AND POWER OF MENTORING AND SUCCESSION Dr. Myles Munroe WEDNESDAY,NOVEMBER9THTRACK #2 CORPORATE LEADERSHIP8:00am-9:00amSESSION #12THE POWER OF CORPORATE PURPOSE, MISSION AND VISION Dr. Myles Munroe 9:00am-10:00amSESSION #13HOW TO SELECT YOUR LEADERSHIP TEAM Dr. Richard Pinder 10:00am-11:00amSESSION #14EFFECTIVE PRINCIPLES FOR SMALL BUSINESS DEVELOPMENT -Mr. Jerome Edmondson11:00am-11:30amBreak 11:30am-12:30pmSESSION #15KEYS TO EFFECTIVE MANAGEMENT Mr. Leon Williams 12:30pm-1:30pmSESSION #16THE PURPOSE AND ROLE OF CORPORATE CORE VALUES -Mrs. Beverley Saunders 1:30pm-2:30pmLunch 2:30pm-3:45pmSESSION #17 LEADERSHIP SEMINARS AND WORKSHOPS *** 3:45pm-7:30pmAfternoonBreak-Networking,Rest,Relaxation,Fellowship(Exhibition&Resourcesopen) 7:00pm-8:00pmSESSION #18DEVELOPING PERSONAL CHARACTER Dr. Myles Munroe 8:00pm-9:30pmSESSION #19 21ST CENTURY LEADERSHIP ROUNDTABLE (Global Leadership Discussion (Pat Morgan, Charles Phillips, Phillip Phinn, Walter Koch, Cheryl Chew, Darrell Wilson, Halson Moultrie, Titus Matthews, Trista Kragh, Charlie Masala, Deavra Daughtry, John Ringgold, Tony Sebastiao) THURSDAY,NOVEMBER10TH-TRACK#3-NATIONALLEADERSHIP8:00am-9:00amSESSION #20KEYS TO DEVELOPING A NATIONAL PURPOSE AND VISION Dr. Myles Munroe 9:00am-10:00amSESSION #21THE ROLE OF NATIONAL IDEALS, VALUES AND MORALITY Dr. Peter Morgan 10:00am-11:00amSESSION #22KEYS TO CULTIVATING NATIONAL UNITY & PRIDE The Hon. Zhivargo Laing11:00am-11:30amBreak 11:30am-12:30pmSESSION #23PRINCIPLES FOR NATIONAL DISCIPLINE & SOCIAL ORDER Mr. Bertril Baird 12:30pm-1:30pmSESSION #24THE DIVINE MANDATE FOR ENVIRONMENTAL RESPONSIBILIT Dr. Pepe Ramnath 1:30pm-2:30pmBreak Leadership Networking, Exchange, Exhibitions open 2:30pm-4:00pm 21st CENTURY LEADERSHIP AWARDS LUNCHEON 4:00pmEnd of Summit NOVEMBER6TH-10THSheratonNassauBeachResort,CableBeachRediscovering The Principles ofPERSONAL, CORPORATE & NATIONAL LEADERSHIPEquipping Todays And Tomorrows Leaders For Unique 21st Century Challenge MylesMunroeInternational&TheInternationalThirdWorldLeadersAssociation Dr. Myles MunroeSummit Host R E V B E R T R I L B A I R D T r i n i d a d D R R I C H A R D D E M E R I T T E B a h a m a s D R D E R E K G R I E R U S A M R J E R O M E E D M O N D S O N U S A P A S S Y L V I A J O R D A N U S A D R J E R R Y H O R N E R U S A T H E H O N .Z H I V A R G O L A I N GB a h a m a s R E V R A P H A E L M A S S I A H G u y a n a D R P E T E R M O R G A N T r i n i d a d D R R I C H A R D P I N D E R B a h a m a s D R P E P E R A M N A T H U S A .M R S B E V E R L E YS A U N D E R S B a h a m a s P A S M A R T I N W I L L I A M S U S A M R L E O N W I L L I A M S B a h a m a s S PEAKERSG E N E R A L R E G I S T R A T I O N$ 3 1 5.00p p .DAILYRATE$ 1 5 0.00p.p.Check forSpecial Rates for Groups/ Married Couples/ ITWLAMembers/ MMIPartners/ MMIMentees / BFMIMembersTel.461-6442/5 461-6471FAX:341-6936Website:www.bfmmm.comEmail:firstname.lastname@example.org F R E E N i g h t S e s s i o n s By NATARIO McKENZIE Tribune Business Reporter email@example.com T HE new compressor permit rule is a step in the right direction but not e nough to curb the growing threat of foreign fishermen operating in Bahamian waters, the Bahamas Commercial FishingA lliances (BCFA d ay, estimating that foreigners make up o n-third of the industry workforce opera ting out of New Providence. Adrian LaRoda told Tribune Business: "That rule, while it is a good one and is the beginning of a step in the right direction, it still didn't go far enough and the Ministry should have taken the opportunity to take it to the next level of what we have b een asking for. One of the things we have been asking for is for these compressor permits to bear t he photos of the person who the permit w as issued to. What you find is the fishing b oats that employ the foreign labour, say they have 10 foreigners on the boat and w ould employ five or 10 Bahamians to w ork as helpers or keep up me for the foreign diver. The compressor permit would be in the name of the Bahamian, so that's how they circumvent the law." Mr LaRoda further noted: "Then you have the RBDF intercept these vessels, and when they do the boarding and i nspection, the Bahamians would basically be quiet. What we have been making for is to initiate a rule where they would have a drivers license-type permit, which would clearly state what they are and bear the photograph of the bearer. That would e liminate the problem of people using c ompressor illegally. It would also elimin ate the problem of having foreigners w orking in the industry. M r LaRoda said the issue of foreigners b eing employed in the Bahamian fishing industry is a serious one. It's a big problem; its a serious probl em, he added. Right now foreigners in the industry, particularly the boats that work out of New Providence, they would make up approximately one-third of the N ew Providence fishing workforce. While t he number of vessels they work on may be a small number, the number of individuals that are working is high." Minister of Agriculture and Marine Resources, Larry Cartwright, recently told Tribune Business that his ministry had moved to enforce a rule that compressor p ermits be issued to "Bahamians only", something that has caused it to receive a "lot of flack" from foreign nationals previously operating in this nation's waters. Mr Cartwright said this rule took effect as of August 1, 2011, the opening of the c rawfish season. I n a Tribune Business story last week, B ahamian fishermen expressed concern o ver what they claimed was a growing t hreat to the Bahamian fishing industry, w ith Bahamian boat owners ostensibly employing Dominicans as labourers and mechanics, but instead using them asd ivers. Mr Cartwright said that this was not a new issue but was something that has been going on for many years. MINISTRY URGED: DO MORE TO FIGHT FOREIGN FISHERMEN By NATARIO McKENZIE T ribune Business Reporter firstname.lastname@example.org The BAHAMAS Electricity Corporations (BEC chairman, Michael Moss, y esterday shot down it o wes Morton Salt more than $1 million for fuel supp lies to its Inagua generati ng facilities, stating that t he figure was "totally out of whack with reality. M r Moss told Tribune Business yesterd ay: "All I can say is we sell electricity to Morton in Inagua, and Morton provides us with fuel. So, one party owes for electricity provided, and another party from time to time owes the other party for fuel. "Those figures seem totally out of whack with reality, and is totally out of line with w hat I would have as information regardi ng what we would typically owe them for fuel and what they would owe us for elect ricity." M r Moss estimated that BEC used b etween 25,000 to 30,000 gallons of fuel per month on Inagua, but was unable to say how much the corporation spent on it. Glen Bannister, the managing director of Morton Bahamas while acknowledging the claim offered no comment. Mr Bannister directed Tribune Business to contactt he company's communication's director, Denise Lauer, who said BEC had a $318,000 balance owing on the fuel supply contract to Inagua. S he said the parties were working to e nsure payment, and power had not been cut off on the island. BEC DISMISSES $1M INAGUA FUEL CLAIM AS OUT OF WHACK Morton confirms $318,000 balance; says both partiesw orking to settle and p ower not cut off MICHAELMOSS Compressor permit step in the right direction that [revenues from internationa l trade taxes] should have gone u p. But we have continued poor performance of the econo my, the main revenue items are bringing in less, expenditures gone up and we have r aised taxes. Were in for a long, rough ride. Mr Smith told Tribune Busi n ess he had always believed the Bahamas main weakness was its primary deficit, where recur rent revenues were always e xceeded by recurrent spendi ng. W hile the Government could control capital spending through reducing its borrow-i ng or projects it embarked on, its fixed costs salaries, rents, wages and emoluments continued to exceed recurrent revenues. Its getting to be a greater problem, Mr Smith explained. If youre having no real i mpact on the primary deficit, its going to get worse and worse, if revenue collected isn ot keeping pace with expen diture. F or the first two months of t he Governments 2011-2012 Budget year, the Central Bank said the total fiscal deficit felly ear-over-year by 13.5 per cent or $8.6 million to $54.9 million, driven by a 2.8 per cent or $5.1 million improvement in recurrent revenues to $188.3 million. Tax receipts rose 2.2 per cent to $172.7 million, driven by a$ 4.6 million increase in busin ess and professional fees, and a $1.7 million rise in services taxes. This offset a $3 milliond ecline in the Bahamas main revenue source, taxes on intern ational trade. N on-tax collections increased by 9.3 per cent to $15.5 million, due to a rise in fines, forfeitsa nd administrative fees. The Governments total spending, meanwhile, fell by 1.4 per cent to $243.2 million, due largely to a 43.7 per cent decline in capital outlays to $15.9 million. This reflected af all in asset acquisitions and i nfrastructure outlays, by $8.2 million and $4.1 million respectively. Recurrent spending,t hough, rose by 4.1 per cent to $222 million. $3M TRADE TAX FALL BIG CONCERN FROM page one SAN FRANCISCO Associated Press D aily deals pioneer Groupon priced its initial public offering late Thursday at $20 per share. The price gives Groupon Inc. a market value of $12.7 billion, making its IPO the second largest by an Internet compa ny behind only that of Google Inc. in 2004. The price is above the expected range of $16 to $18, indicat ing investors are excited to buy the company's shares. Groupon is expected to make its trading debut Friday on the Nasdaq Stock Market under the ticker symbol "GRPN." The online search leader made its public debut at a market cap of $23.1 billion seven years ago. In comparison, LinkedIn Corp. went public in May with a market value of $4.3 billion and was worth $8.4 bil lion at the end of trading Thursday. The pricing is a milestone in a process that served as a reality check for Groupon, a rapidly growing company that has evoked memories of the dotcom boom's exuberance. Coming at a time of worldwide mar ket turbulence and deep economic woes, Groupon's IPO has been closely watched by fel low Web startups looking to follow a similar path. It's a lofty appraisal for a service that started just three years ago, but a big comedown from the $25 billion estimate floated when the company filed its IPO plans in June, months after rejecting a $6 billion buyout offer from Google. Groupon began in 2008 when computer programmer Andrew Mason figured out how to get people excited about the lowmargin coupon business. The company sends out daily emails to subscribers offering a chance to buy discount deals for anything from spa services to messenger bags to restaurant meals, provided enough people sign up for the deal. The com pany then takes a cut of what people pay and gives the rest to the merchant. Though some businesses see this as good advertising, others have complained that Groupon leaves them inundated with couponclasping bargain hunters who never return. At the end of September, Groupon operated in 175 markets in North America and 45 countries. The company had 143 million subscribers at the end of September, and sold 33 mil lion Groupons in the July-September quarter. Groupon faced a number of difficulties leading up to its IPO. It drew scrutiny from the Secu rities and Exchange Commis sion, and rival companies and critics have been popping up left and right. "This is not Facebook where they can do no wrong," said longtime IPO analyst Scott Sweet, the owner of IPO Boutique. He called Groupon an "accident waiting to happen." Sweet pointed to problems the company has had with the SEC that have led Groupon to restate the way it accounts for revenue, cutting it in half from what it originally reported. The analyst is also one of those who question the company's business model, its high marketing expenses and frantic hiring pace that has swelled its ranks to more than 10,000 employees. That is about four times as many as Facebook. GROUPON PRICES IPO AT $20 PER SHARE
Telling Tribune Business that Atlantiss Thanksgiving occupancy levels were likely to be in the 90 percentage point range, compared to 53p er cent for both 2009 and 2010, as a result of hosting the Battle 4 Atlantis collegiate b asketball tournament, Mr M arkantonis said the company was aiming to host the event for 10 years. A s for group business, Mr Markantonis said Atlantis expected to finish 2011 some 3 3 per cent up on 2010 levels. For 2012, this category was running 18-20 per cent ahead o f this year. However, the Kerzner International (Bahamas it would not likely be until2 013 before Atlantis started to see business levels approaching those achieved p rior to the 2008 Lehman Brothers collapse and peak recession, adding that this stilld epended on the health of the U S and world economy. Were very encouraged by how the winter bookings areg oing, Mr Markantonis told Tribune Business. The winter booking pace is up, and It hink were going to see very strong February, March and April months. Mays looking a little soft right now. Were very pleased and ahead of pace for February, March and April. Right now, t hanks to some very strong group bookings, were tracking 35 per cent ahead for Febr uary and March, and 28 per cent ahead with April. A lot of that is due to group book ings. E xplaining that May tended to be a shoulder month, Mr Markantonis said Atlantis w ould look to stimulate demand, and create excite ment, for its Paradise Island p roduct with concert weeke nds and other special events. It has used these to success fully drive occupancy during t he depths of the recession, although room rates and yields seemingly remain down,a s evidenced by the per cent off promotion the resort is currently running for the January-March period. M eanwhile, Mr Markanto nis said the decision to host the Battle 4 Atlantis basketb all tournament really has worked for us, with the resort looking to host it for a 10-year s tretch to drive occupancies and business levels at a relatively quiet time of year. With 12 games set to be c overed by 22 hours of tele vision programming set to be beamed to a US audience, the K erzner International (Bahamas Were probably going to runi n the 90 per cent occupancy p oints for Thanksgiving. Both years prior weve run 53 per cent for that period..... I think were just so encouraged by how its gone. It suggests weve made the righti nvestment for the next 10 years. Ten years is our goal. Thats our plan. On the group bookings side, M r Markantonis said the beauty of that strength is that it allows you to yield other b ookings. Group bookings are traditionally booked far in advance, and provide a sol id core around which resorts c an arrange their leisure customers. W hile Atlantis had expected to finish 2011 with group bookings up 33 per cent, as all b usiness indicators pointed to this, and was ahead of this year for 2012, Mr Markantonis said there were a lot of ten-t atives the resort had to wait on before they were confirmed. You dont want to c ount your chickens, he added. Despite the improved book i ng pace, Mr Markantonis said A tlantis was not there yet in terms of recovering to preLehman crash levels. If we get there, its more likely that 2013 will be the year when we can start seeingt hose levels again, but that is very dependent on the world economy, he told Tribune Business. E xpressing optimism that the US would not fall into a so-called double-dip recess ion, Mr Markantonis said of Atlantiss prospects: Our metrics are looking good, and if the world is stable we shouldb e the beneficiaries of that stability. BUSINESS PAGE 4B, FRIDAY, NOVEMBER 4, 2011 THE TRIBUNE Minister of Works and Transport, Neko Grant, said: "We are a excited to have Canada's leading high frills, low cost airline service. Mr Grant said the airline has been named one of Canada's fastest growing companies by the magazine Profit 100 from 2006 to 2010. "We are committed to promoting the Bahamas and our tourism assets to the Canadian market, and to providing qual ity experiences for your customers and, indeed, to all visitors to our shores. In this regard we continue to upgrade our infra structure in Nassau as well as throughout our other island des tinations, Mr Grant said. T ony Rice, CWCs Londonbased chief executive, told the conference called to discuss BTCs half-year results for the period to end-March 2012 -that EZTop-Up had been introduced to the Bahamian market three m onths ahead of schedule, e nabling it to cut wholesale/retail m argins to levels more in line w ith global benchmarks. This has enabled us to reduce mobile distribution commissions on pre-paid cards to market norms, Mr Rice added, and to recover cost opportunities which,i n a full year, would be around $ 8 million in savings. B TCs chief executive Geoff H ouston, and spokesman Marlon Johnson, previously admit-t ed that the EZTop-Up introd uction, together with the cuts in commission rates, had not been explained well to the market. Although numerous vendors had immediately exited the market, they argued that many had since come back after adjusting t o the new rates. M r Pennington, meanwhile, s aid CWC had funded the Volu ntary Separation Package ( VSEP) scheme at BTC somet hing that will see over 400 staff, or 35 per cent of the workforce at acquisition, leave the business through cash balances it inherited at BTC when the dealc losed. Revealing that BTC still had $79 million of cash on its balance sheet at end-September 2011, Mr Pennington said: At the start of the year, we estimated exceptional charges would be around $ 50-$60 million for the Bahamas. W e have moved quickly on this w ith the restructuring, so weve booked the majority of charges in the first half of this year. We made a good start in the Bahamas with the restructuring plan, and are moving ahead of our plan. We booked most of those restructuring charges in the f irst half. Emphasising that CWC expected BTCs restructuring charges, includinssg the VSEP, to stay within the $60 million guidance for the full year, Mr Pennington said the company viewed these exceptionals as part of the acquisition. It inherited $ 59 million in cash balances w hen it acquired BTC. H e added that CWC expected t o fund the restructuring with t he cash balances BTC brought w ith it. CWC had long signalled its intention to do this, and of the $58 million in exceptionals incurred during the six months to end-September, some $52 million resulted from the Bahamas. Some $29 million of CWCs cash w as used in the exercise, its financials showed. Mr Pennington added that the i ncrease in CWCs net debt to $ 1.4 billion at end-September, c ompared to just under $1 billion at prior year-end in March 2011, resulted largely from the BTC acquisition. CWC, though, had not changed its expectation that BTC would generate between $90$ 100 million in operating income p er annum (EBITDA or earni ngs before interest, taxation, depreciation and amortisation) once the restructuring was complete and the business firing on all cylinders. Operating income of $60-$80 million was expected for BTCs current financial year. Looking ahead, the CWC chief f inancial officer added: The Bahamas put in a very solid first half performance...... Theres still a lot to do, so were not inclined to change the guidance range of $60-$80 million [EBITDA] for the full year. CWCs financials showed that it had written down BTCs $403 m illion book value to $277 mill ion, a $126 million reduction, l argely due to a write-down of p roperty, plant and equipment f rom $384 million to $255 mill ion a $129 million drop. Trade payables were also written down by a further $10 million, going from $93 million to $103 million, but a $31 million gain from BTCs customer contracts and relationships was b ooked. A $5 million provision was also included. Acquisition goodwill was valu ed at $63 million, with the Gove rnments interest valued at $136 m illion as of the acquisition date. FROM page one NEW AIRLINE EYES 90% N ASSAU LOADS BTC RECOVERS $8M VIA PHONE CARD MARGIN CUT FROM page one B TCS CHIEF EXECUTIVE G eoff Houston FROM page one ATLANTIS: WINTER BOOKINGS UP 35 PER CENT
NEW YORK Associated Press TOTALU.S. money market mutual fund assets fell$11.93 billion to $2.622 tril lion for the week that ended Wednesday, the Investment Company Institute said Thursday. Assets of the nation's retail money market mutual funds fell $1.39 billion to $935.98 billion, the Washington-based mutual fund trade group said. Assets of taxable money mar ket funds in the retail category fell $2.5 billion to $742.35 billion. Tax-exempt retail fund assets rose $1.11 billion to $193.63 billion. Meanwhile, assets of insti tutional money market funds fell $10.55 billion to $1.686 trillion. Among institutional funds, taxable money market fund assets fell $10.58 billion to $1.592 trillion; assets of t ax-exempt funds rose $30 million to $94.41 billion. The seven-day average yield on money market mutual funds was 0.02 percent in the week that ended Tues day, unchanged from the previous week, said Money Fund Report, a service of iMoneyNet Inc. in Westborough, Mass. The 30-day aver age yield was also unchanged at 0.02 percent. The seven-day compounded yield was flat at 0.02 percent, as was the 30-day com pounded yield at 0.02 percent, Money Fund Report said. The average maturity of the portfolios held by money market mutual funds was unchanged at 42 days from the previous week. The online service Bankrate.com said its survey of 100 leading commercial b anks, savings and loan associations and savings banks in the nation's 10 largest mar kets showed the annual percentage yield available on money market accounts fell to 0.14 percent 0.15 percent in the previous week. The North Palm Beach, Fla.-based unit of Bankrate Inc. said the annual percent age yield available on interest-bearing checking was unchanged from the week before at 0.06 percent Bankrate.com said the annual percentage yield on six-month certificates of deposit fell to 0.22 percent from 0.23 percent. Yields fell to 0.35 percent from 0.36 percent on one-year CDs, to 0.56 percent from 0.57 percent on2 1/2-year CDs; and to 1.19 percent from 1.20 percent on five-year CDs. BUSINESS T HE TRIBUNE FRIDAY, NOVEMBER 4, 2011, PAGE 5B MONEY FUND ASSET S FALL TO $2.622 TRILLION WASHINGTON Associated Press RECENT COLLEGE graduate Molly Katchpole has $2,200 to her name, holds down two part-time jobs one of them as a n anny and describes h er financial situation as paycheck-to-paycheck. S o when Bank of Ameri ca announced that it w ould begin charging debit card users a $5 monthly fee, Katchpole got mad and started an online petit ion. More than 300,000 people signed it. A nd on Tuesday, the nation's second-largest bank backed down. N ow the 22-year-old is getting the credit for the e nd of the debit card fee. Unions Katchpole is a Rhode Island native who lives in Washington, where she does freelance work for a political communications f irm that supports unions and other Democraticleaning causes. She describes herself as a pro-g ressive and says she s tands in solidarity with the Occupy Wall Street movement. She has a tat-t oo below her collarbone that reads: "Empathy." "I believe that is the most important qualityt hat a person can have, is the ability to empathize with others," she said. "When I first started thep etition, and even now, people were saying, 'Just close your bank accounta nd go to another bank.' I think people are forgett ing that not everybody c an easily close their bank and join a credit union. T here are some neighborh oods in this country where there's only one b ank." S hortly after Bank of A merica announced plans a month ago to start charging the fee, she putt he petition on Change.org, a nonpartisan website that allows individuals and advocacy groups to launch campaigns on any topic. After the bank relente d, Change.org declared o n its home page: "We W on." It's an awesome disp lay of the potential powe r that real people can have when they come together," said Ben Rat tray, the site's founder and CEO. Katchpole credited the popularity of her petition t o good timing, calling it "stupid" for Bank of America to announce the f ees in the midst of the W all Street protests. Her boyfriend, Ben Sisko, said Katchpole succeeded because she expressed hero utrage so clearly and concisely. The petition read, in p art: "The American people bailed out Bank of America during a finan cial crisis the banks helped c reate. ... How can you j ustify squeezing another $60 a year from your deb it card customers? This is d espicable." A Bank of America executive called Katchpole more than three weeks ago to explain the f ees, but by then it had a lready lost her as a customer to a community b ank. B ank spokesman Ernesto Anguill declined t o say precisely what role t he petition played. He s aid Bank of America scrapped the fees after listening to public reactiona nd gauging the competition from other banks that backed off plans for similar charges. The outcry over Bank of America prompted other major banks, including J PMorgan Chase & Co. a nd Wells Fargo & Co., to c ancel tests of their own d ebit card fees. M ichael McCauley, a s pokesman for Consumers Union, the advocacy arm of Consumer Reports Magazine, said the petition was a sign that Bank of America had misjudged its customers, just as Netf lix did when it tried to divide its DVD-rental and online streaming busin esses. He called Katchp ole an inspiration to con sumers who feel they are being treated poorly. Impact The debit card issue pushed her over the edge, and she took action, and look at the impact thats he's had. I think it's remarkable," he said. Katchpole grew up in C umberland, R.I., a town of 33,000, and graduated last spring from Roger Williams University inB ristol, R.I., with a degree in art and architectural history. She was on thed ebate team in high school and wrote letters to her local paper. When she had somet hing that she wanted to say, she usually said it, and if she felt other peo ple needed to know, then s he found the avenue to express it," said her mother, Kathy Katchpole, ap hysical therapist. "She's always had pretty strong views one way or the oth e r." S he and her boyfriend live in a tiny, one-bedroom basement apart ment, where they split the $ 1,250 rent. Sisko works as a paralegal, and Katchpole is hoping to find af ull-time job in politics. Katchpole's parents and boyfriend remain Bank ofA merica customers. I haven't decided if I'm going to switch yet," Sisko said. After all, he said, "the p etition worked!" MOLLY KATCHPOLE, 22 is seen in her Washington apartment Thursday, Nov. 3, 2011 Recent college g raduate Katchpole has $2,200 to her name, holds down two part-time jobs one of them as a nanny and describes her financial situation as paycheck-to-paycheck. So when Bank of America announced that it would begin charging debit card users a $5 monthly fee, Katchpole got mad and started ano nline petition. More than 300,000 people signed it. And on Tuesday, the nation's second-largest bank b acked down. Now the 22-year-old is getting the credit for the end of the debit card fee. (AP PART-TIME NANNY HELPS END BANK OF AMERICA FEE
SAN FRANCISCO Associated Press ADVANCEDMicro Devices Inc. is cutting s ome 1,400 workers as a w eak computer market and manufacturing delays have hurt the world's second-biggest maker of microprocessors for PCs. The layoffs announced T hursday amount to about 12 percent of the compan y's 12,000 workers and a re the first big move by A MD's new CEO, Rory Read, who was hired fromL enovo Group in August. T he cuts will unfold over the next five months. AMD is struggling with an industrywide problem: PC sales growth, particularly in the U.S. and Europe, has been anemic b ecause of the weak econo my and competition from smartphones and tablets. A lthough PC shipments c ontinue to grow, the pace i s slowing sharply and more than market research firms IDC andG artner Inc. expected. That has raised concerns about the strength of the market going into the holi day shopping season. Most of AMD's business is in chips for PCs. It doesn 't have a meaningful p resence in smartphones a nd tablets. Read's job in large part i s to help devise a strategy f or AMD to penetrate computing markets where it and rival Intel Corp. have been largely absent.T he battle has taken on a new dimension as AMD's and Intel's market share in PCs has reached a steady balance for years Intel's chips are in about 80 percent of thew orld's PCs, and AMD's a re in essentially the rest. Not having much presence in mobile devices has hurt AMD more than Intel because of its smaller size, and it was a key reason AMD ousted Read's pre d ecessor, Dirk Meyer, in J anuary. Meyer in some ways had an excuse: He was orches trating triage as he tried to manage the company's spinoff of its manufactur ing operations while fend ing off Intel and oversee i ng the launch of an important new type of chip for AMD. That chip can process sophisticated graphics and general data on the same piece of sili con, a technical achieve ment. T he rise of mobile devices, meanwhile, is benefiting chip makers such as Qualcomm Inc. and Texas Instruments Inc., whose processors were designed to consume l ess power. A variety of financial struggles has led to several rounds of layoffs at AMD in recent years. It let about 3,300 workers go in 2008 and 2009. Contributing to Thursday's announcement were manufacturing problems that have postponed the shipment of AMD'sn ewest chips, which it calls "accelerated processing units." The layoffs and other unspecified operational changes are expected to save $200 million in 2012. A company spokesman s aid is severance benefits will vary based on location and local laws. AMD shares increased 5 cents, or nearly 1 per cent, to $5.78 in extended trading Thursday after the cuts were announced. BUSINESS PAGE 6B, FRIDAY, NOVEMBER 4, 2011 THE TRIBUNE 52wk-Hi52wk-LowSecurit y Previous CloseToday's CloseChangeDaily Vol.EPS $Div $P/EYield 1 .190.97AML Foods Limited1.181.180.000.1480.0408.03.39% 10.639.05Bahamas Property Fund10.6310.630.00-0.6420.080-16.6 0.75% 7.504.40Bank of Bahamas6.936.930.000.2300.10030.11.44% 0.530.17Benchmark0.180.180.00-0.0480.000N/M0.00% 2.842.55Bahamas Waste2.702.700.000.0300.09090.03.33% 1 .961.77Fidelity Bank1.771.770.000.0970.04018.22.26% 1 1.108.29Cable Bahamas8.468.460.000.2450.32034.53.78% 2.802.33Colina Holdings2.382.380.000.4380.0405.41.68% 8.508.33Commonwealth Brewery8.508.500.000.7400.00011.50.00% 7.006.21Commonwealth Bank (S1 6.546.540.000.4960.32013.24.89% 2.001.63Consolidated Water BDRs1.821.890.070.1110.04517.02.38% 1.771.31Doctor's Hospital1.371.370.000.0740.04018.52.92% 5.504.75Famguard5.435.430.000.4980.24010.94.42% 7.505.35Finco5.355.350.000.7570.0007.10.00% 9.457.75CIBC FirstCaribbean Bank8.148.140.006,0000.4940.35016.54.30% 6.005.00Focol (S 5.335.330.0020,0000.4350.22012.34.13% 1.001.00Focol Class B Preference1.001.000.000.0000.000N/M0.00% 7.305.58ICD Utilities7.307.300.00-0.1220.240-59.8 3.29% 10.809.80J. S. Johnson9.829.820.000.8800.64011.26.52% 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 1 00.00100.00Fidelity Bank Note 13 (Series C) +FBB13100.000.00 1 00.00100.00Fidelity Bank Note 15 (Series D) +FBB15100.000.00BISX LISTED & TRADED SECURITIES AS OF:7% Interest 1 9 October 2022 Prime + 1.75% P rime + 1.75% 6.95%T HURSDAY, 3 NOVEMBER 2011BISX ALL SHARE INDEX: CLOSE 1,364.62 | CHG 0.07 | %CHG 0.01 | YTD -134.89 | YTD % -9.00BISX LISTED DEBT SECURITIES (Bonds trade on a Percentage Pricing basis)Maturity 19 October 2017 W W W.BISXBAHAMAS.COM | TELEPHONE: 242-677-BISX (2479) | FACSIMILE: 242-323-2320FINDEX: YEAR END 2008 -12.31%3 0 May 2013 20 November 2029 7 % RoyalFidelityMerchantBank&TrustLtd(Over-The-CounterSecurities) 29 May 2015 52wk-Hi52wk-LowSymbolBid $ A sk $Last PriceDaily Vol.EPS $Div $P/EYield 10.065.01Bahamas 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 Holdings0.650.750.400.0290.00024.130.00% 52wk-Hi52wk-LowFund NameNAVYTD%Last 12 Months %NAV 3MTH 1.57791.4674CFAL Bond Fund1.5779263.39%5.87%1.548717 3.02482.9020CFAL MSI Preferred Fund3.02482.63%3.94%2.981382 1.61281.5289CFAL Money Market Fund1.61512.61%4.53%1.591803 2.72022.5398Royal Fidelity Bahamas G & I Fund2.5730-5.41%-9.79% 13.849313.2825Royal Fidelity Prime Income Fund13.73472.82%1.94% 114.128999.4177CFAL Global Bond Fund114.09222.35%13.88%114.128861 118.4255101.6693CFAL Global Equity Fund118.42552.30%8.26%116.580785 1.17491.0000FG Financial Preferred Income Fund1.18773.59%4.94% 1.13431.0000FG Financial Growth Fund1.14152.06%4.07% 1.17641.0000FG Financial Diversified Fund1.18903.47%5.04% 9.9952 9.5078Royal Fidelity Bah Int'l Investment Fund Principal Protected TIGRS, Series 19.94330.98%4.58% 11.49859.8690Royal Fidelity Bah Int'l Investment Fund Principal Protected TIGRS, Series 210.96520.78%5.70% 10.68139.6635Royal Fidelity Bah Int'l Investment Fund Principal Protected TIGRS, Series 310.60135.75%13.20% 8.85647.8830Royal Fidelity Int'l Fund Equities Sub Fund8.65073.01%18.38% BISX ALL SHARE INDEX 19 Dec 02 = 1,000.00 YIELD last 12 month dividends divided by closing price 52wk-Hi Highest closing price in last 52 weeks Bid $ Buying price of Colina and Fidelity 52wk-Low Lowest closing price in last 52 weeks Ask $ Selling price of Colina and fidelity Previous Close Previous day's weighted price for daily volume Last Price Last traded over-the-counter price Today's Close Current day's weighted price for daily volume Weekly Vol. Trading volume of the prior week Change Change in closing price from day to day EPS $ A company's reported earnings per share for the last 12 mths Daily Vol. Number of total shares traded today NAV Net Asset Value DIV $ Dividends per share paid in the last 12 months N/M Not Meaningful P/E Closing price divided by the last 12 month earnings FINDEX 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 7/11/2007NAV Date 31-May-11 30-Sep-11BISX Listed Mutual Funds30-Jun-11 30-Sep-11 NAV 6MTH 1.535365 2.952663 1.580804 111.469744 115.762221TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-752531-Jul-11 30-Jun-11 31-Jul-11 5-Aug-11 30-Jun-11MARKET TERMS30-Sep-11 31-Jul-11 RoyalFidelity Merchant Bank & Trust Ltd (Over-The-Counter Securities) CFAL Securities Ltd. (Over-The-Counter Securities)31-Jul-11 31-Jul-11 31-Jul-11 NOTICEIN THE ESTATE OF CHARLES PERCY THOMPSON late of Marsh Harbour. Abaco, The Bahamas Notice is hereby given that all persons having any claims or demand against the above Estate writing to the undersigned on or before the 18th d ay of November, A.D., 2011, after which date the Executors will proceedto distribute the assets having regard to the claims which they shall have had notice. An Notice is hereby given that all persons indebted to the said Estate are requested to make full settlement on or before the 18th day of November, A.D., 2011. MICHAELA. DEAN & CO., Loyalist Plaza Don Mackey Blvd. Marsh Harbour, Abaco, The Bahamas Attorneys for the Executors ADVANCED MICRO DEVICES (AMD Santa Clara, California. (AP AMD TO CUT 1,400 WORKERS, NEW CEO'S FIRST BIG MOVE Share your news The Tribune wants to hear from people who are making news in their neighbourhoods. Perhaps you are raising funds for a good cause, campaigning for improvements in the area or have won an award. If so, call us on 322-1986 and share your story. SAN FRANCISCO Associated Press ONLINEprofessional networking service LinkedIn got demoted by many investors after suffering its first quarterly loss in its brief career as a publicly traded company. The third-quarter setback, announced late Thursday, didn't come as a surprise. LinkedIn's stock dropped by about 9 percent. That wiped out some of the paper gains made since the company stimulated more interest in Internet companies with a rousing initial public offering of stock nearly six months ago. Even before the IPO, LinkedIn Corp. made it clear that shortterm losses were possible as it increased investments in buying more computers and hiring more employees in trying to build a business that changes the way people find jobs and advance their careers. The third quarter showed LinkedIn isn't backing off that promise. LinkedIn filed plans to sell an additional $100 million of its stock to fund its ambitions. The company's investments so far appear to be paying off. Its revenue growth is still accelerating, while its service is adds about 5 million new members every month. But evidently it will take more than that to support a stock that has been flying high since LinkedIn's stock market debut. The company's shares shed $7.90 to $79.60 in Thursday's extended trading. After LinkedIn shares were priced at $45 in the initial public offering, they quickly doubled. Investors' rabid response sparked a debate about whether another investment bubble is forming around Internet companies, similar to the late 1990s dot-com boom that set the stage for a costly meltdown. The fervor has subsided amid mounting worries about a fragile economy, although things could be about to heat up again. Online coupon distributor Groupon Inc. is expected to make its stock market debut Friday after pricing its IPO late Thursday. Zynga Inc., the maker of popular Web games such as CityVille, may go public later this month. LinkedIn's third-quarter results provided a reminder of the growing pains that usually accompany hard-charging businesses. The company lost $1.6 million, or 2 cents per share, in the JulySeptember as it invested more money to expand. That contrasted with earnings of $4 million, or 2 cents per share, at the same time last year. The latest quarter marked the first time that LinkedIn has recorded a loss since the final three months of 2009, according to documents filed in preparation for its IPO. If not for items unrelated to its ongoing business, LinkedIn said it would have earned 6 cents per share. On that basis, analysts polled by FactSet had expected LinkedIn to break even. Revenue more than doubled from last year to $139 million about $11 million higher than analysts forecast. The company expects to generate as much as $158 million in revenue in the current quarter ending in December, up from nearly $82 million at the same time last year. LINKEDIN POSTS 3Q LOSS, REVENUE GROWTH ACCELERATES
ATHENS, Greece Associated Press Greece was in turmoil and the world economy in limboT hursday as a high-stakes game of political brinkmanship in Athens led Prime Minister George Papandreou to abandon his explosive plan to put a European rescue dealt o a referendum. T he dramatic developments o vershadowed the G20 summit of world leaders in the French resort of Cannes, where President Barack Oba-ma implored European leade rs to swiftly work out a eurozone plan to deal with the continent's crisis, which threatens to push the world back into recession. Papandreou sparked a global crisis this week whenh e announced plans to put the latest European deal to cut G reece's massive debt a hard-fought accord that took m onths of negotiations to a popular vote. The idea horrified other EU nations, Greece's creditors and financial markets as investors wor-r ied over the prospect that Greece could be forced into a d isorderly default. Faced with mounting opposition at home and abroad, Papandreou withdrew the referendum call after the maino pposition conservatives indicated they backed the debt deal. With them potentially on board, his finance minister argued, there was no longer a need to put the issue t o the Greek people. S tocks rose sharply in the United States and Europe on news the referendum planh ad been scrapped, as well as a surprise move by the European Central Bank to cut i nterest rates. The Dow Jones industrial average jumped 208 points, or 1.8 percent, to close above 12,000 for only the t hird time since early August. But Papandreou's government was still in danger. The prime minister faces a crucial confidence vote in Parliamentat midnight Friday, after two d ays of acrimony that saw many of his own lawmakers and ministers rebel. Many asked for his resignation, furi-o us that his insistence on a referendum had endangered the debt deal and led Euro pean leaders to question Greece's treasured participa tion in the euro, the common currency used by 17 EU n ations. The governing Socialists have a slim two-seat majorityi n the 300-member legislature, a nd at least one lawmaker has publicly threatened to vote against the Papandreou gov e rnment. In an address to Parliament, Papandreou stressed his onlyi nterest was Greece's wellbeing, and hinted he was will ing to eventually step down. "I don't care about being re-elected. I am interested in saving the country," he said, adding that he was open to the mounting calls for the cre ation of a transitional government that would secure the debt deal, and make sure Greece receives the next, vital installment of its existing bailout funds. After that, he said, he would be open to holding elections. "Let everything be discussed the makeup of the government and anything else. ... I am not glued to my seat," Papandreou said. "My position is crystal clear: Let talks start immediately to create a formation that is broadly accepted, efficient and able to deal with the national interest in this difficult time for the country." Once Greece is on an even course, he said, "then, of course, we can head to an election process. But a gov ernment resignation would have left the country in the lurch." An angry Antonis Samaras, the head of the main opposi tion conservatives, insisted Papandreou had to go and dispelled any impression of unity. He argued he had already agreed to back the vital new deal, and demanded quick elections within the next six weeks if possible. "Mr. Papandreou pretends that he didn't understandwhat I told him," he said. "I called on him to resign." Papandreou "nearly pulled the universe apart to supposedly persuade me to agree to something that I had already said was unavoidable." He then led his lawmakers i n walking out of the parliamentary debate on the confidence vote although a par t y official told The Associated Press they would attend the vote itself on Friday. A mid the political mayhem, Greece's cost of borrowing ballooned, with the interest demanded by markets to buyG reek 10-year bonds exceed ing 31 percent compared with 2 percent for European p owerhouse Germany. Papandreou's surprise referendum announcement sos tartled world leaders that F rench President Nicolas Sarkozy and German Chancellor Angela Merkel, two architects of the debt deal, summoned Papandreou to Cannes for emergency talks Wednesday. T here, they made clear that if any referendum were held, it would determine whetherG reece stayed in the euro zone, and said Athens wouldn't get its $11 billion (?8 billion) installment of last year's $152 billion (?110 billion bailout until the dust had set tled. On Thursday, Obama declared his solidarity with Sarkozy and Merkel, telling G20 leaders that resolving the financial crisis was "the most important aspect of our task over the next two days." But with parts of the res cue undefined, he added: "We're going to have to flesh out more of the details about how the plan will be fully and decisively implemented." The drama in Greece sent immediate ripples throughout Europe. Premier Silvio Berlusconi's government in I taly was teetering after it failed to come up with a credible plan to deal with its dan g erously high debts, and Por tugal demanded more flexi ble terms for its own bailout. It was a surreal farce today ... worthy of a Monty Python film," said Alexis Tsipras, head of a small left-wing par-t y. Greece's new debt deal would give the country an e xtra $179 billion (?130 bil lion) in rescue loans from the rest of the eurozone and theI nternational Monetary Fund on top of the $152 billion it was granted a year ago. It would also see banks forgive Athens 50 percent of the money it still owes them. The goal is to reduce Greece's massive debts to the point w here the country is able to handle its finances without constant bailouts. P olls indicate the Greek public is close to the breaking point after more than 20 months of harsh austerity cuts and tax hikes. Recent opinion surveys show 90 percent oppose Papandreou's policies and just 20 percent support his party. Underlining that point, 300 people held a peaceful antiausterity protest in central Athens late Thursday. The past does not bode well for Papandreou: The two oth er European governments besides Greece that have received bailouts Portugal and Ireland have seen their governments fall during the economic turmoil. BUSINESS T HE TRIBUNE FRIDAY, NOVEMBER 4, 2011, PAGE 7B GREEK PRIME MINISTER George Papandreou speaks during a parliament session in Athens, Thursday, Nov. 3, 2011. Papandreou a bandoned his explosive plan to put a European rescue deal to popu lar vote Thursday, keeping his government alive but passionate squabbling in Athens left the country's solvency in doubt and the euro zone in turmoil. Greek Prime Minister reversed course after a rebell ion within his own Socialist party over the referendum, but ignored repeated calls to resign and call elections. (AP GREECE IN TURMOIL OVER DEBT PLAN, MARKETS IN LIMBO
BUSINESS PAGE 8B, FRIDAY, NOVEMBER 4, 2011 THE TRIBUNE 127,&( :25/'7(&+12/2*<7' 1RWLFHLVKHUHE\JLYHQWKDW*HQHUDO0HHWLQJRI WKH6KDUHKROGHURIWKHDERYHQDPHG&RPSDQ\GXO\ FRQYHQHGDQGKHOGRQWKH WK GD\RI2FWREHU WKHIROORZLQJUHVROXWLRQVZHUHSDVVHG 5(62/9(' WKDW:25/'7(&+12/2*< /7'EHZRXQGXSYROXQWDULO\ 5(62/9(' WKDW,QWHUQDWLRQDO/LTXLGDWRU 6HUYLFHV,QFEHDSSRLQWHGWKH/LTXLGDWRUIRUWKH SXUSRVHRIZLQGLQJXS 'DWHGWKH WK 00*%$+$0$6/7' 5HJLVWHUHGIFH )RUWKHDERYHQDPHG&RPSDQ\ BBBBBBBBBBBBBBBBBBBBBB SEATTLE Associated Press Starbucks Corp.'s fiscal fourth-quarter profit jumped nearly 29 percent on stronger sales of its coffee in its cafes and at other retailers. The company, based in Seattle, reported Thursday that it earned $358.5 million, or 47 cents per share. That's up from $278.9 mill ion, or 37 cents per share, l ast year. After adjusting for one-time gains and an extra w eek in the prior quarter, t he company earned 37 c ents compared with 32 cents last year. Revenue rose 7 percent t o $3 billion, with some benefit from foreign exchange rates. Revenue jumped 15 percent after adjusting for the extra week last year. T he results beat Wall S treet's expectations and s hares jumped more than 3 percent in after-hours trading. Analysts polled by Fact-S et anticipated the company would earn 36 cents per share on revenue of $2.95 billion. Starbucks has been a standout among its peers despite the tough economy a s consumers have begun to a fford themselves more s mall luxuries like a latte. The company also hase xpanded overseas and i ncreased its presence in grocery stores and other retailers to help drive growth. T he company said it saw those trends continue in the fourth quarter. Starbucks said revenue from its stores open at leasta year, considered a key financial indicator as it stripsa way the impact of recently o pened or closed stores, increased 9 percent during the period as customers came in more often and spent more. This measure jumped 10 percent in the U.S. and 6p ercent for its international b usiness. Sales softened in the U.K. and Europe, where consumers have been hit the hardest by economic problems, but the company said that it sees growth ahead a round the globe in its 2012 f iscal year. "Starbucks today is exec uting in all markets and a cross all channels," H oward Schultz, CEO of S tarbucks, said in a statem ent. "We have never been b etter positioned to go hard and go fast after the tremendous opportunity that liesa head in 2012 and beyond." Starbucks said its full fiscal year net income jumped nearly 32 percent to $1.25 b illion, or $1.62 per share. That's up from $945.6 mil lion, or $1.24 per share, int he prior year. Starbucks e arned $1.52 on an adjusted basis, versus $1.23 in the prior year. Revenue increased 7 percent to $11.7 billion for the year. S tarbucks says it expects to earn $1.75 to $1.82 for the coming fiscal year on an a djusted basis with the bulk of the growth coming in the s econd half of the year as some costs for ingredients come down. Analysts expect $ 1.82 per share. Shares of the company rose $1.40, more than 3 per cent, to $42.58 in after-hours t rading. A CUSTOMER exits a Starbucks Wednesday in Beachwood, Ohio. Starbucks Corp., reports quarterly financial results Thursday, a fter the market close. (AP STARBUCKS 4Q PROFIT UP 29 PER CENT IN THIS PHOTO released on Wednesday, Nov. 2, 2011, taken by AP Images for Starbucks, Mike Sponsler loads the last pallets of Starbucks coffee K-Cup Portion Packs onto a truck in Seattle, WA. More than 200 trucks left five distribution centers across the U.S. en route to grocery and specialty retailers for the first-ever delivery of Starbucks coffee K-Cup Packs. (Kevin P. Casey/AP Images for Starbucks