Citation
The Tribune

Material Information

Title:
The Tribune
Uniform Title:
Tribune (Nassau, Bahamas)
Portion of title:
Nassau tribune
Place of Publication:
Nassau, Bahamas
Publisher:
Tribune
Publication Date:
Copyright Date:
2008
Frequency:
Daily, except Sunday
daily
normalized irregular
Language:
English
Physical Description:
v. : ill. ; 58 cm.

Subjects

Genre:
newspaper ( sobekcm )
newspaper ( marcgt )
Spatial Coverage:
Bahamas

Notes

General Note:
Description based on: Vol. 79, no. 210 (Aug. 3, 1983); title from caption.

Record Information

Source Institution:
University of Florida
Holding Location:
University of Florida
Rights Management:
This item was contributed to the Digital Library of the Caribbean (dLOC) by the source institution listed in the metadata. This item may or may not be protected by copyright in the country where it was produced. Users of this work have responsibility for determining copyright status prior to reusing, publishing or reproducing this item for purposes other than what is allowed by applicable law, including any applicable international copyright treaty or fair use or fair dealing statutes, which dLOC partners have explicitly supported and endorsed. Any reuse of this item in excess of applicable copyright exceptions may require permission. dLOC would encourage users to contact the source institution directly or dloc@fiu.edu to request more information about copyright status or to provide additional information about the item.
Resource Identifier:
09994850 ( OCLC )

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Full Text
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Volume: 104 No.133

FEATURES











Third murder
in a week on
Grand Bahama

@ By DENISE MAYCOCK
Tribune Freeport
Reporter
dmaycock@tribunemedia.net

FREEPORT - A 25-year-
old Freeport man was found
dead following a shooting in
the Coral Gardens area on
Monday evening.

This latest incident pushes
the 2008 homicide count to
five on Grand Bahama, where
three people have now been
murdered within a week. °

According to reports, offi-
cers at Police Control Room
received reports of gunshots
being fired at Coral Gardens.

When officers arrived at
Coral Way and Peridot Place,
they discovered the body of a
black, identified as Senecca
Rahming of Easter Avenue,
lying in the parking area of an
apartment building.

Asst Supt Loretta Mackey
said officers examined the

SEE page 11

Two men expected to be charged
with last week’s double murder

& By DENISE MAYCOCK
Tribune Freeport Reporter
dmaycock@tribunemedia.net

FREEPORT - Two men are expected to be arraigned in the
Freeport Magistrate’s Court today in connection with the double

murder last week in Freeport.

The men, aged 31 and 29, are accused of the murders of Andy
Wilfred Weekes and Terrel Mingo, who were shot at Adventurers

Way and Watlins Lane.

Weekes died shortly after his arrival at Rati Memorial Hospi-
tal and Mingo died the following evening. Their deaths were the 3rd
and 4th homicides on Grand Bahama this year.

Asst Supt Loretta Mackey thanked the public for information
that assisted police in their investigations.

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reflections on
ENM Cabinet
appointments

@ By BRENT DEAN
Tribune Staff Reporter
bdean@tribunemedia.net

IN THE current govern-
ment, Prime Minister Hubert
Ingraham has given many
young members of his caucus
a chance to shine in front of
the public through appoint-
ments as Cabinet ministers.

After one year in office,
however, some of these
potential future leaders of
governing party have shone
more than others.

Mr Ingraham, who is 60
years old, has dominated the
post-Pindling era of politics
in the Bahamas.

He has no rival.who is

“equal in stature to him in his

political party or in the oppo-

SEE page 13

| mBy NATARIO

One year on:

| weekend stabbing death of a

, | Roger Gomez at Court One,

| the matter, which has been



Man found dead
after shooting

Man i in court over stabbing WT

nei el eagaaae

Felipé Major/T ribune staff




“ANTON WRIGHT outside of
court yesterday.




McKENZIE




A MAN charged in the





22-year-old Kemp Road res-
ident was arraigned in a
Magistrate’s Court yester-
day afternoon.

Anton Wright, 27, of
Union Village, appeared
before Chief Magistrate









Bank Lane, yesterday,
charged with the murder of
Theron Armbrister.

Court dockets state that
Wright intentionally and
unlawfully caused Armbris-
ter’s death on Saturday,
April 26. Wright was not
required to plead to the
murder charge. A prelimi-
nary inquiry will be held into













adjourned to May 15 and
transferred to Court i; Nas-
sau Street.

According to reports,
Armbrister was stabbed ear-
ly Saturday morning while
attending a party. Initial
reports said the deceased
and another man became

SEE page 11









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_ SEE NEWS SECTION PAGE 15

‘No live case’
against Rubie
Cuneta Oke

@ By KARIN HERIG
Tribune Staff Reporter
kherig@tribunemedia.net



THERE is currently no mat-
ter pending against Supreme
Court appointee Rubie Nottage
in the United States, according
to US Ambassador to the
Bahamas Ned Siegel.

Being once again asked to

of Mrs Nottage by the Judicial

and Legal Services Commission,

Ambassador Siegel said that
information'from the US

Department of Justice indicates

that there is no live case against
Mrs Nottage.

This information comes as
Mrs Nottage is scheduled to be
sworn in as Supreme. Court
judge at: Government House
today.

Speaking as a guest on Island
FM’s radio talk show Parlia-
ment Street at the weekend, the
ambassador had the following
to say about Mrs Nottage’s sit-
uation:

“There is a statute of limita-
tions and there is no, to my
understanding from the Depart-
ment of Justice, based on my
information, (no) continued
proceeding on behalf of her.”

Ambassador Siegel also reit-

‘SEE page 11

Nassau flight delayed
following bomb scare

@ By KARIN HERIG
Tribune Staff Reporter-
kherig@tribunemedia.net



Ambassador Siegel



A FLIGHT from Fort Lauderdale to Nassau was delayed and a
man taken into custody following a bomb scare on a Spirit Airlines
plane.

A male passenger was detained by officers from the Broward
Sheriff’s Office on Monday afternoon after he made a bomb threat
on board Spirit Airlines flight 461 to Nassau.

According to reports from the airline, the plane’s crew was
preparing for take-off from Fort Lauderdale-Hollywood Interna-
tional Airport at around 4pm on Monday when the incident
occurred.

Crew members told a passenger to take his seat, but the man
refused. He then threatened the plane with a bomb.

The crew immediately notified the Broward Sheriff’s Office and
deputies searched the plane.

Corporate communications officer for Spirit Air Misty Pinson told
The Tribune yesterday that the airline removed all 105 passen-
gers from the flight and performed a full security check, including
a search by K-9 units.

No explosives were found, Ms Pinson said.

The Broward Sheriff’s Office also confirmed that no bomb was
found on the plane. *

Ms Pinson said that although the passenger may have made the
threat in jest, Spirit Airlines took the matter seriously, “as we

SEE page 11

Coat ae tor a





PAGE 2, WEDNESDAY, APRIL 30, 2008

THE TRIBUNE



ea aaa ee ee ee ee eee
Homeowner ‘told to pay thousands’

for home allegedly not yet complete |

@ By BRENT DEAN
Tribune Staff Reporter
bdean@tribunemedia.net

A HOMEOWNER in Pride
Estates whose housega damaged

by flooding due to defects in the
structure is now being told by the
Bahamas Mortgage Corporation to
pay thousands of dollars for a home
that she claims is not yet completed.

Faye McKenzie first spoke to

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The Tribune in January last year

after a flood at her house caused .

significant damage to the walls,
floor and other structures. It is
believed the damage occurred
because pipes in the house were

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not properly sealed.
Consequently, water burst
through the yet to be completed
house when the service was turned
on in the area.
The homeowner was forced to
cut out significant portions of the

walls in the house behind which °

mildew had grown, remove her cab-
inets and replace the floor tiling,
among many other repairs, in
response to the flooding. i

The ministry, during the tenure
of the last PLP government, award-
ed her $10,000 to fix the damage. In
repairing the home, however, Mrs
McKenzie said that she discovered
numerous other defects and used
her own money to attempt to com-
plete the home.

Cheap tiles, slide-down windows
that do not lock, low quality fix-
tures, old wood with putty covering
cracks, were just some of the other
problems she had to deal with,
along with the fact that no cable or

telephone wires were run through .

the house.

Mrs McKenzie used the money
the ministry gave her to make
repairs, but she told The Tribune
in an interview that she was forced
to spend at least another $10,000
in an attempt to finish the house.

Payments

She finally moved in during Feb-
ruary this year with what she
thought was an understanding from
the ministry that mortgage pay-
ments would begin when the house
was completed. The $875 per
month payments initially were
scheduled to begin on March 1,
2007, she said. A letter dated March
12 from the BMC was posted on
Mrs McKenzie’s door last month, to
her embarrassment, claiming her
mortgage was “seriously in arrears”.

The note said she owed the cor-
poration $4,375 for five months of
payments.

Another letter was placed on her
door this month, dated April 9, stat-
ing that her bill was now $5,250 for

* six months of payments.

Months of back and forth with
the government and contractors to
sort out the mess at her home led
Mrs McKenzie to lose her job on
February 1 this year. The hours
spent in this process kept her away
from work for too much time, she
said.

“T’ve been trying to get them to
agree what they will pay, but no-
one wants to sit with me. I’m just a

























‘small man’,” she said.
Mrs McKenzie said she is now
looking for the ministry-to-_provide

. funds to complete the home, addi-

tional funds to compensate her and
her family for the more than
$10,000 they had to pump into the
house to make repairs beyond the
money the ministry has already pro-
vided, and she is also looking for
mortgage payments to be suspend-
ed until the issue can be resolved.

“We are not trying to get any-
thing we do not deserve,” she
added. “I need this to come to an
end.”

: e
Advice

Melvin Seymour, chief housing
officer at the department of hous-
ing, told The Tribune the follow-
ing in response to questions about
Mrs McKenzie's situation: "Mrs
McKenzie's house was completed
and she moved in. Mrs McKenzie
complained and we assessed the
situation. The technical advice was
sought from internally and we
thought at that time that the
amount of funds that should be
expended on matters like that, and
others in that subdivision, was to
have amounted to some nine to 10
thousand dollars - around that
region. We are in the process of
doing some adjustments to houses
in there and we thought that, you
know, her particular claim and her
payment was adequate."

Mr Seymour said that they have
noticed that the homeowner wants
to transform the house or make
other changes, such as windows
with awnings rather than single-
hung windows.

There is nothing is wrong with
that, he said, as homeowners have
the right to recreate their homes as
they desire.

When asked about Mrs McKen- |
_zie's claims that there were further

deficiencies in the house beyond

what the $10,000 from the ministry

was designated to fix, Mr Seymour
said:

"Well, the full assessment was
done and the technical advisors
here in the department have
advised that there is no further busi-
ness that we have to do at that
house."

The Tribune also attempted to
reach Brensil Rolle, parliamentary
secretary in the Ministry of Hous-
ing, for comment. However, Mr
Rolle did not return calls up to
press time.





In brief

Superintendent Stephen Dean



Neighbourhood
crime watch
associations host

breakfast meeting
at police station

AS PART of an ongoing
effort to foster a closer rela-
tionship with their police offi-
cers, leaders of several of the
Southeastern Division neigh-
borhood crime watch associa-
tions hosted a breakfast meet-
ing at the South Beach Police
Station as way to promote more
effective communication
between the Police and the
Community.

The police and community
leaders used the meeting to dis-
cuss an ongoing effort to
improve relations between the
police and citizens and encour-
age a willingness to work
together to improve neighbor-
hood stability.

In attendance were Superin-
tendent Stephen Dean and stu-
dents from the Sadie Curtis Pri-
mary School, who serenaded
the group with the popular
Bahamian song “Persevere”.

Jennifer Marshall-Mackey,
who spoke on behalf of the
group leaders, said: “Creating a
safe community is not an easy
task. The police alone cannot
do it. The implementation of
the various Southeastern Divi-
sion neighborhood crime watch
groups will create a better
understanding of the problems
within our community and pro-

: vide the opportunity for the

police and residents to join
forces to make our neighbor-
hoods safe and more livable."

Assistant Superintendent
Linda Moxey thanked the
crime watch group’s leaders for
their willingness to work with
the police and promised that
officers will to listen to
citizens, take their problems
seriously, and work towards
solving them.

Minister urges men to be
better fathers to their sons

FATHERS were told they must accept full responsibility for
making “real men” out of their sons.

National Security Minister Tommy Turnquest said Bahami-
an men must share the task of raising their children with moth-
ers “in order to put our country back on track”.

“The choice is clear. If you don’t, want to be a father, if you
don’t want to accept responsibility for a child, then don’t father

one,” Mr Turnquest said.

Crime

Addressing a father-son seminar this week, Mr Turnquest said
the inability, or lack of commitment on behalf of some men to
develop “special” relationships with their sons, is negatively
impacting the country via and has led to an increase in crime and

violence.

“As fathers, we have been given a special role and responsi-
bility in our families and for our children as protectors and
providers,” he noted. “Our commitment and contribution to our
families is essential to the strength, growth and stability of our
families, our children and by extension, our communities.”

He added: “The best way for a boy to transition in a decent
way to a man is to follow in the footsteps of his father. A cursory
look at traditional societies shows that the rite of passage from
boy to man, for the most part, happens in me care and control,

if not the company, of his father.



THE TRIBUNE







Centipede
‘invasion’ is.
investigated

ENVIRONMENTAL
health inspectors yesterday
began investigating an
“invasion” of poisonous
centipedes at a Nassau sub-
division.

Inquiries began after resi-

dents of Stevenson sub-
division, off Mackey Street,
complained of centipedes
up to eight inches long
entering their homes.
Officials are trying to
identify the source of the
problem and gauge
whether there is anything

in the area that is attracting ;

the creatures, which can
bite if caught or cornered.

In yesterday’s Tribune,
Miss Heidi Kemp was pic-
tured with a six-inch cen-
tipede she caught and
killed in her home.

Walkathon
in aid of
Sandilands
nurses

WALKERS can help
raise money for nurses at
Sandilands rehabilitation
centre by taking part ina
walkathon from Montagu

foreshore on Saturday.
_ Walkers are asked to

meet at Montagu before the

walk starts at six, and will
walk along Eastern Road

and up Fox Hill Road to the

Sandilands centre.
The trek will raise funds
for the Eloise Penn charity,

which funds scholarships for

Sandilands nurses in the
Bahamas and abroad.

To take part, call Sandi-
lands on 364-9632 or turn
up at Montagu foreshore
from. 5.30am on Saturday,
May 3.

ian pleads
guilty to
shootings in

Miami in 2004.

33 MIAMI

A MIAMI man got a 30-year
prison sentence after pleading :
guilty to shootings in 2004 that ;

left a 9-year-old boy dead,
according to Associated Press.

Twenty-three-year-old Der- :
rick Brockington pleaded guilty :
to second-degree murder and }
other charges Tuesday as part :
of a plea deal with prosecutors, :
Brockington must serve a mini- }

mum of 20 years.

Police said Brockington shot }
31-year-old Clinton Young dur- }
ing an argument on a Miami :
sidewalk. A stray bullet struck :
and killed 9-year-old Quinton }
Young. A third person was also }

shot but survived.

Prosecutors say the families :
of the victims who died agreed }

with the plea deal.

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LOCAL NEWS

‘Government expected t

WEDNESDAY, APRIL 30, 2008, PAGE 3



expand sea turtle laws

@ By ALISON LOWE
Tribune Staff Reporter
alowe@tribunemedia.net

THE government is expected :

to expand the laws relating to
the capture and commercial sale
of sea turtles in the Bahamas in
the wake of calls from environ-
mentalists and nature lovers, The
Tribune has learned.

: Minister of agriculture and
marine resources Larry
Cartwright said yesterday that
“the government is considering
the situation and something
should be coming out very, very
soon — something positive that
is.”

The director of operations at

the Bahamas Humane Society, °

an organisation which has played
a major part in the campaign to
ban the capture and slaughter
of sea turtles, confirmed that he
had received information indi-
cating that the government is set
to move on the recommenda-
tions in short order.

“Well from what we’ve been
hearing, and it’s been coming
from pretty high up, they would
come up with something posi-
tive. I think the pressure is on
for them,” said Mr Stephen
Turnquest.

According to Mr Cartwright,
the development is to be expect-
ed within the next month.

Over the last few months The
Tribune has published numer-
ous photos showing sea turtles
laid out upside down and alive
for sale on docks in New Provi-
dence.

One, which. was bought from
its captors by a group of con-
cerned individual for $800 in an
effort to save its life, iater died at
the Atlantis marine rescue cen-
tre, with staff there saying that
the turtle had been “in very poor
condition” upon arrival.

Pictures were sent to the



THERE HAS been a campaign to ban the me and siauatial of
sea turtles.

media accompanied by protes-
tations that the government
must act to bring to such situa-
tions.

“Things like that need to be
brought to the public attention
usually to get the government’s
attention,” said Mr Turnquest,
who claims the BHS has been
working on the issue for around
10 years.

e e :
Petition

In the meantime, an online
petition has been running since
the end of 2007 appealing for
the government to ban not only
the slaughter of endangered sea
turtles but also their capture and
possession.

As of yesterday it had attract-
ed 4,994 signatures — 474 more
than when The Tribune last
checked on April 8.

A copy of the petition, which
is addressed to Prime Minister
Hubert Ingraham, Mr
Cartwright and tourism minis-
ter Neko Grant, was submitted
to the prime minister and the
concerned ministers last year
along with accompanying letters,
documents and articles.

Eric Carey, director of the

Our Lucaya Resort occupancy

expected to drop off next week

@ By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

. FREEPORT - Occupancy levels are expected to drop off in
the next week or so at the Our Lucaya Resort — which could
result in less work days for employees.

According to hotel and union officials, a major group stay-
ing at the resort is scheduled to leave the island sometime this
week. They say this will result in a dip in occupancy.

Earnestine Moxyz, public relations spokesman, said that the
resort had has several large groups in and employees have
been very busy and working long hours.

“Tt is nothing new...

people work according to occupancy

levels we have at the resort and when things are slow they

work may two or three days,”

she said.

Roy Colebrook, president of the Bahamas Hotel Catering
and Allied Workers Union, said the resort now relies on

group business quite often.

Business

“The resort is dealing with a lot of group business and right
now a lot of their occupancy is taken up by groups, and I
know that one group is there end of the week,” he said.

Mr Colebrook said any time occupancy levels drop, it is

normal for workers to be placed ona

week.

a two or three day work

The Our Lucaya Resort and the hotel union are presently ;

negotiating a new labour contract for the 500 employees. The
previous contract expired in September 2006.

“The union has-been negotiating for a new contract under
two administrations and we are hoping to complete negotia-

tions,” Mr Colebrook said.

He and union officials are expected to meet with hotel man-
agement today to resolve some of the outstanding issues.

Mr Colebrook noted that some workers employed in differ-
ent areas at the resort were left out of the contract proposal.

ancing Available Through
ou eaerMtay



Bahamas National Trust, said
yesterday that while he had not
been officially informed that a
ban would be enacted, “that’s
what everyone keeps saying.”

“We’ve gotten very good
feedback from our queries,” he
said.

The Tribune understands that
government has been consulting
with local fishermen before it
finally moves to change the fish-
eries regulations.

Asked what form the BNT
would like the rules change to
take, Mr Carey said that the

. trust has pushed for an “interim

position” whereby, rather than
banning outright the capture and
slaughter of the creatures, their
commercial sale is outlawed.

This would mean that while a
“family island fisherman” could
still capture a turtle for his own
consumption, a lack of commer-
cialisation would likely cut down
on the occurrence of sea turtles
being laid out for hours in the
sun for sale.

Mr Carey said that the trust
hopes that in addition to this
move, Officials will enforce the
law as it currently exists in rela-

.tion to cruelty against animals.

Eventually the BNT would
like to see a total ban, he said.

It is unclear at this stage
whether the government action
will, if it goes ahead, comply
with the more broad-ranging
appeals of the petition or the
slightly less prohibitive “inter-
im” demands of the BNT.





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PAGE 4, WEDNESDAY, APRIL 30, 2008

EDITORIAL/LETTERS TO THE EDITOR

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.) LL.D., D.Litt.

Publisher/Editor 1919-1972
Contributing Editor 1972-1991

EILEEN DUPUCH CARRON, C.M.G., M.S., B.A., LL.B.

Publisher/Editor 1972-

Published Daily Monday to Saturday

Shirley Street, RO. Box N-3207, Nassau, Bahamas
Insurance Management Building., P.O. F-485, Freeport, Grand Bahama

TELEPHONES
Switchboard (News, Circulation and Advertising) 322-1986
Advertising Manager - (242) 502-2352
Circulation Department - (242) 502-2387
Nassau Fax: = (242) 328-2398

Israel gets ready to deal

IN A MESSAGE to Syria’s President Bashar
Assad last week, Israeli Prime Minister Ehud
Olmert affirmed that Israel would give all the
occupied Golan Heights back to Syria in
exchange for a comprehensive peace agreement.
This move was belated but wise. It could alter the
Middle East chessboard for the better, greatly
reducing the chances of a disastrous new region-
al conflagration.

The Israeli gesture to Syria will have meaning
only if the two governments follow it up with
serious diplomatic engagement.

Recent exchanges between the two have been
indirect; in 3/8Rd, a Syrian cabinet minister said
the recent Israeli offer was relayed to Assad by
Turkish Prime Minister Recep Tayyip Erdogan.
The last full-fledged negotiations between Israel
and Syria foundered in 2000 over a dispute about
control of the northern shore of Lake Galilee.
Since then, the dangers confronting each side
have only mounted.

Today more than ever, both countries would
benefit from a peace accord that resolves disputes
over territory and security, finally ending the
conflict between them. ©

Olmert gave the signal that Assad wanted to
hear: that Israel was ready to trade all the Golan
Heights for peace with Syria.

Both sides accept that there will be no Syrian
retrieval of the Golan without an agreement on
security issues, and no security pact without
return of the Golan.

In any talks about security, Israel will want
Syria to stop arming the Lebanese Shi’ite militia
Hezbollah, stop helping Iran to arm and super-
vise Hezbollah, and stop harboring leaders of
Palestinian militant ‘groups such as Hamas and
Islamic Jihad.

Above all, an Israeli-Syrian peace deal will
have to remove Syria from Iran’s sphere of influ-
ence.

This strategic objective is not unique to Israel.
Egypt, Jordan, Saudi Arabia, and the other Arab
Gulf states also want Syria to return to the Arab
fold.

The Bush administration ought to be striving
for the same goal. Until recently, however, Pres-
ident Bush seemed hypnotized by the neocon-
servative notion that America need not talk to
troublemakers, much less bargain with them.
Indeed, Israeli officials have hinted that, until
recently, the American administration was hold-
ing Israel back from making a serious overture to
Syria.Assad has made no secret of his intent to
parlay any peace treaty with Israel into a rap-
prochement with Washington. But last week, he
said that peace negotiations with Israel will prob-
ably have to wait until there is a new US presi-

dent. The rehabilitation of American foreign .

policy cannot come soon enough:

Editorial courtesy of The Boston Globe

NOTICE

NOTICE is hereby given that RONY DUROSEAU of

Empty rhetoric
by the tankful

- CONTINUED high demand for tight supplies
of gasoline has pushed the price to about $3.60 a
gallon. So what do two of the three candidates for
president propose to do? Drop the federal tax on

_ the fuel during the summer - so drivers will be

encouraged to drive even more, increasing con-
sumption of gas and pushing the record-level
profits of the oil companies even higher.

Republican Senator John McCain first pro-
posed to suspend the 18.4-cent tax on gasoline
from Memorial Day to Labor Day, a move that
has political appeal but undercuts his Senate
record as an advocate of reducing greenhouse gas
emissions by curbing fossil-fuel use. Now Demo-
cratic Senator Hillary Clinton has followed suit
in this game of monkey see, monkey pander.
Ironically, it was President Bill Clinton who
raised the tax to its current level 15 years ago -
one of the steps that helped the federal budget
move out of the red and into surplus by the time
he left office.

Just to keep up with inflation, Congress should
have raised the tax to 27 cents a gallon by now.

Senator Barack Obama opposes the summer
tax holiday as a short-term approach to rising fuel
prices, though he too favored a temporary sus-
pension of most of the Illinois tax on gasoline as
a state senator in 2000.

To her credit, Clinton at least proposes a way
to recoup the'$10 billion in road-building money
that the Highway Fund would lose if the tax on
gasoline and diesel were suspended: She wants
Congress to pass a windfall-profits tax on oil

companies. But the Senate rejected a similar tax -

last December, and there is nothing to indicate
that it would approve one now - certainly not in
time to make up for lost gas-tax revenues this
summer. A quick-fix approach like the gas-tax
holiday might make sense if there were any evi-
dence. that oil at more than $100 a barrel is a
passing phenomenon. But energy analysts say
the high prices mainly reflect increased demand
from China, India, and other quick-growing
countries. By slightly reducing the cost of gaso-
line to US consumers, the tax holiday will only
increase consumption, with the likely result that
the pump price might not drop at all. McCain and
Clinton also seem to have given no thought to
Tuesday, Sept. 2. That’s the day after Labor
Day, when Americans will still need to drive - to
work, not to the beach - and will have’ to do so
with gas costing 18.4 cents more. Will McCain
and ;einton then propose to end the gasoline tax
altogether, further accelerating the deteriora-
tion of the nation’s roads and bridges?

The public needs a holiday from demagogic
politics more than from the gasoline tax.

Editorial courtesy of The Boston Globe



MARSH HARBOUR, ABACO, NASSAU, BAHAMAS is

applying to the Minister responsible for Nationality and
Citizenship, for registration/naturalization as a citizen
of The Bahamas, and that any person who knows any
reason why registration/ naturalization should not be
granted, should send a written and signed statement
of the facts within twenty-eight days from the 23rd day
of April 2008 to the Minister responsible for Nationality |
and Citizenship, P.O.Box N- 7147, Nassau, Bahamas.

Hardwood Floor

‘A tale of two

cities ....

e

cost of living’

EDITOR, The Tribune.

I FIND it remarkable, as a
trained economist and a lawyer,
that there has been absolutely
no.announcement by the FNM
administration as to how it pro-
poses to cushion what is clearly
an emerging recession in the
USA as it relates to The
Bahamas. —

It is understandable that the
current Prime Minister is not
an economist, albeit he did
work in a local bank for a num-
ber of years.

The Minister of State, how-
ever, ‘the Hon Zhivarzo Laing
(FNM-Marco City) holds him-
self out as an individual who
has had some exposure to eco-
nomic and financial education
(where exactly has never been
revealed in detail).

The Bahamas has rapidly
evolved as a two-tiered society
in all aspects.

There is an almost insur-
mountable gap between the
haves and the have nots. Those
Bahamian families which have
traditionally been loaded with
cash; real estate and other assets
are still large and in charge.

In fact, successive ‘black’ gov-
ernments have literally ensured
the expansion of the wealth of
the so-called ‘white’ Bahamians
and their business allies.

The average black person,
however, is still subjected to sit-
ting at the back of the prover-

bial bus from an economic point ©

of view.

He or she must still eke out a
meager living, such as it might
be, by being hewers of wood
and bearers of water, some 41
years after “the Quiet Revolu-
tion”. Collectively, we blacks
own less than 10 per cent of our
natural patrimony.

Many of us, and alinost all of
our children, will never be able
to buy the smallest piece of real
estate anywhere in The
Bahamas.

The cost of ordinary living is
literally killing the average
Bahamian, day in and day out.
Utility costs are already off the
chain and there is no relief in
sight with oil being priced at
over US$100.00 per barrel. .

Fuel for ones vehicle, if one
has one, is now in excess of
B$5.00 per gallon.

Mechanical repairs due to
damage inflicted upon our auto-
mobiles due to our poorly main-
tained road systems are beyond
the monthly budget of thou-
sands of Bahamians.

As a result, we must catch a

.jitney and hope that the driver

of the day is lucid and in a good
mood.

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Food prices are sky rocket-
ing even as you pause to read
this article.

Breadbasket items are just
that.....breadbasket because all
one is able to purchase, in many
cases, is ‘a small basket (plastic
bag) of groceries and maybe a
small loaf of unhealthy white
bread.

Many Bahamians cannot tell
you the last time he or she
would have eaten a good choice
cut steak much less a baked lob-
ster with garlic butter sauce.

I personally know of many
Bahamian families which are
relegated to eating steam
corned beef and white rice, reli-
giously, each and every Sunday
that the Lord tarries.

Mind you, there is absolutely
nothing wrong with a constant
diet of corned beef but should
the working masses not be able
to afford a piece of tough round
steak once per month?

Electrical bills are literally
causing thousands of ordinary
Bahamians to fall out from
stress and the embarrassment
of having no electrical supply.
Telephones are out of service
for months due to the inability
to pay the requisite bills on
time. School fees for private
schools are in the upper atmos-
phere yet our children are being
taught by callous and indifferent
teachers.

Thousands of children have
had to be removed (or kicked
out) from our private schools
because their parents are unable
to pay B$700.00 and more per
term.

The public schools then

become over crowded and class
room sizes go up like Gussie
Mae and her six sisters. wag
cares?

Rent and mortgage savmionts
have never been so high and ~
never before have we seen the
spectacle of so many Bahamians
losing their homes and/or sleep-
ing wherever night catches
them.

Our political leaders are
blind; deaf and dumb when it
comes down to the black,
unwashed masses.

In one year of governance,
there has been no announce-
ment from the Prime Minister
as to the way forward. In fact,
we have hardly seen Mr Ingra-
ham, except in the House of

‘Assembly, usually for a half day

on Wednesdays, if we are lucky.

Yes, he is a busy man but is
he too busy to address those
issues and concerns of ordinary
Bahamians? Is he doing us, col-
lectively, some sort of favours?

The judicial system (or is it
shambles) is badly broken down
and no one has a clue how to
repair it, except to place yet
another leaking band aid on the
gaping putrid wound.

Lawyers abound in the par-
liament but you’d never know
that if I did not tell you so. Yes,
dear readers, we have a two-
tiered system in The Bahamas.

One for the whites; rich and
famous and another for blacks;
poor people and the inconse-
quential.

* Who cares? Certainly not our
political and spiritual leaders.
To God then, Who does not dis-
criminate, in all things, be the
glory.

ORTLAND
H BODIE JR
Nassau,

April 10, 2008.

I pray this poem will change
behaviour in The Bahamas

EDITOR, The Tribune.

The poem attached was inspired by a discussion recently on The
Way Forward with Joan Savoury, Sabrina Skinner, Judith Cooper,
Jacqueline Knowles, led by Michael Pintard.

This poem is my addition to that debate.

I pray it helps to advance the debate beyond the debate, to the
point of modifying behaviour in The Bahamas.

OBEDIA MICHAEL SMITH

Solutions or Problem

What if irresponsible parenting,

‘instead of sustaining us, is hastening

the extinction of our species

When I see trash everywhere

beside Bahamian streets,

when I see graffiti soiling and sullying

When I hear the noises,
those randomly added

and ambiguously raised, make

Hear of misbehaviour, murder, rape

it seems as if, more and more

are being born, not to sustain, extend —

not to enhance us - our species

but instead to wipe us out

What is a human being

without human values, but animal,
but beast, but part of what human is,

of what human means

Philip Larkin, in “Dockery and Son,”
suggest that instances of reproduction,

instead of being addition,

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it seems many are being added

to our numbers only to sully and to soil,

to subtract, to kill our species, our planet — to be a blight upon cre-
ation

Should who is born instead

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THE TRIBUNE

WEDNESDAY, APRIL 30, 2008, PAGE 5



re re fe ae ee tte a



Food scientists
recommen

stopping biofuels to.

fight world hunger
WASHINGTON

SOME top international
food scientists Tuesday rec-
ommended halting the use of
food-based biofuels, such as
ethanol, saying it would cut .
corn prices by 20 percent dur-
ing a world food crisis,
according to Associated Press.

But even as the scientists
were calling for a moratori-
um, President Bush urged the
opposite. He declared the
United States should increase
~ ethanol use because of
national energy security and
high gas prices.

The conflicting messages
Tuesday highlighted the
‘ongoing debate over food

and fuel needs.

The three senior scientists
with an international
research consortium pushing
a biofuel moratorium said
nations need to rethink pro-
grams that divert food such
as corn and soybeans into
fuel, given the burgeoning
worldwide food crisis. The
group, CGIAR, is a global
network that.uses science to
fight hunger. It is funded by
dozens of countries and pri-
vate foundations.

If leading nations stopped
biofuel use this year, it would

lead to a price decline in corn -

by about 20 percent and
wheat by about 10 percent
from 2009-10, said Joachim
von Braun. He heads the
International Food Policy
Research Institute in Wash-
ington, the policy arm of
CGIAR. The United States is
the biggest biofuel producer.

He and the other scientists
said work should be stepped
up on the use of non-grain
crops, such as switchgrass, for
biofuel.

Another scientist, not asso-
ciated with the group,
agreed with their call for a
halt on the use of grain for
fuel.

“We need to feed the stom-
ach before we need to feed
our cars,” said Rattan Lal, an
Ohio State University soil sci-
ences professor who in the

past has been a critic of some , :

of CGIAR’s priorities. “We
have 1 billion people who are
food insecure. We can’t
afford the luxury of not tak-
ing care of them and taking
care of gasoline.”

In an interview after the
CGIAR teleconference, von
Braun said the United States
and other countries have to
make a hard choice between
fighting high fuel prices and
fighting world hunger.

' “Tf you place a high value
of food security for poor peo-
ple, then the conclusion is
clear that we step on the
brake awhile,” said von
Braun. “If you place a high
value on national energy
security, other considerations
come into play.”

Energy security is what

Bush emphasized in his press. :

conference. When asked
about the conflict with world
hunger and the rising cost of
food at home, he said the
high price of gasoline would
“spur more investment in
ethanol as an alternative to-’
gasoline.




Accept cheques easy as credit

ahamas struggle to

feed families in stricken nation

Global food crisis sees average cost
of rice rise by 96 per cent in western
hemisphere’s poorest country

@ By MEGAN REYNOLDS
Tribune Staff Reporter

HAITIANS in the Bahamas are being

forced to work harder to send money to

their families in Haiti who are starving in
the global food crisis.

Food prices have rocketed by more
than 50 per cent worldwide over the last
12 months in the biggest price surge in 30
years and Haiti’s poorest people are riot-
ing in the streets because they are unable
to meet the cost of basic foods imported
from the United States and Dominican
Republic.

The poorest country in the western
hemisphere depends on imports for rice
and beans but with the average cost of
rice rising by 96 per cent, the country’s

poorest people and majority of. the
population are unable to meét the
cost.

And Haitian people living in The »

Bahamas are struggling to work harder

just to keep their families alive.
Haitian-born lawyer Eliezer Regnier,

who works in Nassau, said: “Every Hait-

-jan in The Bahamas is affected because

everybody has family back in Haiti and
they are from the rural areas...

“The economic situation is not good at
all and invariably there is no income to
fall back on so they will certainly face
misery, especially when it comes to tak-
ing care of their children. They are trying
to provide as best they can.’

Mr Regnier said Haitian people i in The
Bahamas who have not been “regu-



Ariana Cubillos/AP

CHILDREN WAIT outside a ‘church, where aid workers were e giving out bags of food
donated by the Venezuelan government, in Port-au-Prince, Friday, April 18, 2008. Hun-
dreds of Haitians stood in long lines Saturday, just as others had walked for hours
throughout the week to receive the U.N. and regional food aid pouring into the country

after a spate of deadly riots.

larised” have become more fearful of
being forced to return to Haiti in the
current crisis.

He has just returned from a tour of
the country where he saw begging and
riots in even the most peaceful regions.

He said: “The economic depression is .

so severe, there is a thin line between
peace and hunger in Haiti.

“For as long as the economic crisis
continues it will continue to get worse in
Haiti, it is the country that will have the
most dramatic and immediately felt
effects.of the economic crisis.”

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PIC TU RUCR ITEC CHL ce ea ie area

Bahamians reflect on one year of FNM govt

Te A ir

SAAT |



WITH the first anniversary
of the FNM’s election win fast
approaching, The Tribune
scoped the downtown area
and asked what people
thought of the government’s
performance so far.

While the majority of those
interviewed voiced disap-
pointment with the state of the
country at the moment, some
thought this was due to fail-
ures and errors by the FNM,
while others blamed baggage
inherited from the PLP.

Eighty-eight year old Diana
Thompson, president of the
Straw Vendors Union is upset
that the FNM stopped the con-
struction of a new straw mar-
ket. \

Vendors

“The government ain’t do
nothing for me,” said Mrs
Thompson, who claims to be

‘ the oldest straw vendor alive in

the Bahamas. She said that
she asked the government to
find a way to keep the rain
from seeping through the tent
which has been used by ven-
dors since the old market
burned down in 2001, but

nothing has happened yet.
While agreeing that Prime .

Minister Hubert Ingraham “is
a good man”, she said he fae

not done enough for straw

vendors — but added: “God
will fix that.”

Decked out bright red yes-
terday, Samuel Ingraham
insisted that this was just a
coincidence, as in fact, he is a
supporter of the PLP.






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Diana Thompson



“There is room for improve-
ment,” Mr Ingraham told The
Tribune when asked about the
state of the country.

He added that. he is con-
cerned about the economy and
wishes that the government
would “create more jobs for
young people and settled
folks”.

Richard Cartwright, a local
construction worker, said that
he feels the FNM had a
smoother transition into pow-
er in 1992 than this time
around.

He explained that in May of
last year: “Ingraham took
power from someone who was
inexperienced, and didn’t
know much about governance.
To replace someone who has
only stayed one term means
that you have to make up their
term along with your term, so
it’s more work.

“The PLP. government of
the last election was less effi-
cient than the previous PLP
who had 25 years,” he said:



‘ ae



Samuel Ingraham

He added that although he
has his criticisms of the FNM’s
performance thus far, he finds
that Bahamians are too

“caught up in. the. politics’,

This, he said, is what is causing
the country to stumble.

“The biggest cry from peo-
ple in government agencies is:
‘Tam a PLP and the FNM gov-
ernment in charge, so J am not
going to co-operate,’ or vice
versa,” he said.

“We need to incorporate the
ideas of everyone,” he
explained. “You're no longer
an FNM or PLP after May 2 —
you’re Bahamian.”

One area of concern that Mr
Cartwright has is the state of
the educational system, which
he feels is a PLP failure that
the FNM now has to deal
with.

He said: “For every time we
have a major project in the
construction field, the cry has
always been that there aren’t
sufficient Bahamians to do the
job. Everyone is not going to

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Richard Cartwright



be an academic student. What
they need to do is create more
technical schools whereby you
can identify those students

..who.are,not academically,,..

inclined.

“We also need to get

focused on the more impor-

tant issues, like finding ways —

to produce alternative fuel,
because every time fuel
goes up, it stagnates our econ-
omy. “

A person who expressed
similar sentiments was 38-year-
old Allen Aranha, a disabled
man that sells souvenirs at
Perry’s T-Shirt Stand.

“Although people say that
it’s still too early to grade their

performance, in many ways’

the FNM is moving too slow,”
he said.

Mr Aranha added that
Loretta Butler Turner, the
new Minister of State for
Social Development, does not

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impress him. He said she has
been ineffective in helping
people with disabilities.

“I heard someone say that
she said she will lighten, the
_ burden, of people with impair-

oe “ments,” said, Mr. Aranha. “If

she said that, there is no evi-
dence of it.”

Mr Aranha added that he
was disappointed at the FNM
for stopping foreign invest-
ment projects signed under the
PLP, which he feels were
“dropped out ef spite”.

Due to this, he claimed,
crime has “sky rocketed”
because most people cannot
find jobs in tourism.

“The government needs to
open up their hands, and start
to release some of these pro-
jects and see where we can go
forward to better empower
our males.

“Our young men killing up
and robbing each other,” he
said. “They need something to
do, or they will resort to any-
thing.”








BILLY'S DREAM

UTNE





PAGE 6, WEDNESDAY, APRIL 30, 2008 THE TRIBUNE





Basketball stars: S|

THE TRIBUNE, along with its “Down Your Street”
Ts feature, which appears in our Tuesday and Friday edi-
SU Siaiiay cy 6 CONS, will be spotlighting events at various schools
PHONE: 322-2157 throughout the country. This is the second in a special
series.



ah







BASKETBALL
stars at St Thomas
More School proved
they have the mak-
ing of champions
when they won the
annual Catholic
Archdiocesan Bas-
ketball Tournament





TENDER FOR THE PROVISION OF =| for the school year.
VICE
CONSULTANGY SER be s It was yet another
PUBLIC RELATIONS | victory for the team,
and/or which became the

ADVERTISING & MARKETING
Hoytes Colina

ate nah ae : é a Imperial Classic

e Bahamas Electricity Corporation _ .

invites Tenders from eligible bidders for champ tons af ter

the provision of Consultancy Services in — playing teams from
Public Relations and/or Advertising& | Nassau and

Marketing for the Corporation. Freeport in Freeport,
%

_ Bidders are required to collect packages | Grand Bahama, in
from the Corporation’s Administration |
Office, Blue Hill & Tucker Roads by Fe ebruary. .
~. contacting Mrs. Delmeta Seymour,
: Phone No. 302-1 158.






.



Tenders are to be delivered on or before
1st May, 2008, 3:00 p.m.
and addressed as follows: _





Mr. Kevin Basden _
_ GeneralManager _
. Bahamas Electricity Corporation

Taking to the streets

’ ST Thomas More students from kinder-



Blue Hill & Tucker Roads ‘ . garten to grade six took to the streets of

Nassau, Bahamas OE Nassau for the school’s annual PTA walk-a-

<< : thon in February. The students walked in a

Marked: Tender No. 660/08 2 : pi loop from the school in Madeira Street to

Consultancy Services in Public Rela- | . e ae el Wulff Road and Montrose Avenue before
tions and/or Advertising & Marketing | “ Ss returning to the school.

The Corporation reserves the right to
accept or reject the whole or such
part of any Tender the Corporation

deems necessary. -










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on selected Items this
_Friday and Saturday ONLY

ST Thomas More stu-
dents in the inter-school
sports competition at the
Thomas A Robinson Sta-
dium on April 10.





i





A STORY reading at
Xavier’s Lower School featured
students from every year group
at St Thomas More School who
read stories to their peers.

Ellen Davies, principal at St
Thomas More said: “This
school is filled with gifted and
talents students and teachers
and lives by its motto: enter to
be challenged; exit to be of ser-
vice.”










RESTART TPAD mE ’ PRIMES seu ce SS TS a EE





THE TRIBUNE



aa so NLL TC ae
Bahamas targets

money on tourism
promotion in US

m By ALISON LOWE
Tribune Staff Reporter

alowe@tribunemedia.net

THE Bahamas spent more on
tourism promotion in the United
States than all other Caribbean
countries in the first six months
of 2007, it has been revealed.

The spending came at a time
when the Bahamas was experi-
encing a significant decline in
tourism numbers.

According to the Foreign
Agents Registration Act’s semi
annual report to the US congress,
the Bahamas outdid even its clos-
est Caribbean rival in the pro-
motional-spending stakes —
Bermuda — by around $10 mil-
lion.

The report said the big bucks
spent by the Bahamas in the run
up to June 30, 2007 were towards
promoting the country’s tourism
sector through “participating in
conventions, familiarisation trips,
expos, trade/consumer shows,
conferences, and seminars.”

$1,065,011.25 of the total was
also given to Washington DC
based CMGRP to help “develop
and execute tourism promotions
for the Bahamas,” said the
report.

Other Caribbean countries
whose tourism spending patterns
were detailed in the report were
Aruba, Bermuda, the Cayman
Islands, Jamaica and Turks and
Caicos.

The figures in part due to the

fact that in December of 2007,
the Bahamas launched a new $12
million campaign in New York to
attract visitors to the islands. This
reflects the country’s dependence
on the US tourism market.

‘The Tribune understands the

$12 million campaign, revealed

to be the most expensive ever
undertaken by this country’s
Ministry of Tourism, resulted in
some increases in tourism arrivals
in the latter part of 2007, but it



MINISTER of Tourism. Neko
Grant revealed that visitor
arrivals were down 3.4 per cent
last year.

did not achieve the kind of
upturn that the ministry had
anticipated.

In total, visitor arrivals for last
year were down 3.4 per cent
overall, Minister of Tourism
Neko Grant revealed in Febru-
ary 2008.

A review released by the Min-
istry of Tourism’s research and
statistics team in the same month
indicated that the Bahamas’
reliance on the US tourism mar-
ket, hit by an economic down-
turn, “came back to bite” last
year.

It suggested that the Bahamas
needed to “hold on to what it
has while aggressively going after
new markets” — an aim that
“may not be so simple” given the
success of the Dominican Repub-
lic and Cuba in targeting the
Canadian and European tourists.



cheques at your Business
Etre tee ae Sc
cards, with the confidence of cash



IN THE FIRST SIX

million in the six month run up

— $7,227,179.61 tax dollars ©
towards promotion during the

tions” fora film festival that was

You Run Your Business
Vite ae ate te CaS

Take the risk out of accepting

Vantage ARGS

328-4568

2A Dewgard Plaza Madeira Street



COMPETITOR SPENDING
MONTHS OF 2007

Bermuda spent $9,918,181

to June 30, 2007, while the Cay-
man Islands had the third
biggest outlay, putting

semi-annual period ending
March 31.

Jamaica spent a relatively
meagre $547,385.82 in the six
months before March 31, while
Turks and Caicos was reported
to have shelled out $39,985.00
to Georgia-based Goodworks
International in aid of “a promo-
tional reception in Las Vegas,
Nevada, during the Trumpet
Awards Foundation Annual Cele-
bration” and “planned promo-_

held in the islands in October
2006.

THE FOREIGN AGENTS
REGISTRATION ACT

THE Foreign Agents Regis-
tration Act (FARA) report has
been compiled since the Act
was passed in 1938.

FARA is a disclosure statute
which requires American per-
sons or companies acting as
agents for foreign principals —
governments, for example — to
make periodic disclosures
about their relationship with
those principals, including
related activities and receipts.








WEDNESDAY, APRIL 30, 2008, PAGE 7



Wines ~ Gins ~ Rums ~ Vodkas
Scotches ~ Whisky’s ~ Liqueurs
ALL AT UNBELIEVABLE

Bahamas Supermarkets SCN ess ee
for a combined 1,300 years of service

fe





When Bernard Beneby started working at
City Market in the late 1960’s, the US was
in the midst of the Vietnam War, the Green
Bay Packers had just won Super Bowl II,
The Beatles would soon release The White
Album and man had not yet walked on the
moon. On a recent afternoon Beneby, with
more than 50 other Bahamas Supermarkets
Limited employees, was honored for a
combined total of 1,285 years of service to
the company.

The Annual City Market Employee Service
Awards Luncheon, held at the Wyndham
Resort in Nassau, featured stories of
friendships and camaraderie spanning
decades, two moving impromptu vocal
solos by employees Mario Pugh and
Christine Sands, heaping plates of
sumptuous food, and generous gifts for the
numerous honorees. 3

Ken Burns, CEO, Bernard Beneby (40 years) and
Bryan Knowles, CFAO. .

Beneby started working for City Market at
the age of 14 and is currently the produce
manager at the Seagrapes location. One of
three employees celebrating 40 years of
continuous service, he said that much has



changed in the past four decades. Oy NCE,
“Bahamian consumers expect more choice, 2a
and better quality. The products that City
Market now carries, especially in terms of
produce, certainly reflect the recognition

of the demands of our customers.”

Bryan Knowles, CFAO, with 40 year veterans
Bridgette Sands, Bernard Beneby and Rowena Miller
and Ken Burns, CEO.

longevity on the job also reflects the
company’s reputation for job security. This
year, 18 persons were honoured for 10 years
service, another 18 for 15 years and yet
another 18 for 20 years. Nine had spent 25
years with City Market, two were with the
company for 30 years and one, 35 in
addition to the three who had been there
since 1968 when it was first founded.

Ken Burns, CEO, giving congratulatory address to
the assembled honorees.

“Your tenure makes a difference,” said Ken
Burns, CEO of Bahamas Supermarkets, in
his address to the assembled honorees.
“Newer employees, children and staff will ’
watch, listen, and copy you. Each one of
you can make a difference in mapping the
future of this company, and we need and |
value your continued support. Again I
congratulate each one of you and your
accomplishments. Thank you for what you
do, and thank your families for sharing you
with us. Bless each of you.”

City Market, with 12 stores across Freeport
and New Providence, recently initiated a
massive $4 million IT upgrade, which
included the successful installation of price
scanners 1n all of its stores.

Each year when Bahamas Supermarkets
recognises long-serving employees,
honouring those who celebrate 10, 15, 20,
up to 40 years, the numbers increase in one
category — those who.have never worked
for anyone other than City Market.

The high percentage of employees with

Fifteen year veterans of City Market celebrating with
BSL executives.



PAGE8 , WEDNESDAY, APRIL 30, 2008



KPMG leiephone 242 393 2007
PO Box N 123 bax 242 393 1772
Montague Sterling Centre intemnes www kptng.com bs

Eact Bay Strect
Nassau, Baharnas

INDEPENDENT AUDITORS’ REPORT

‘To the Shareholder of HSBC International Trustce (Bahamas) Limited

x

We have audited the accompanying balance sheet of HSBC International Trustee (dahamas)
Limited (“the Trust”) as at December 31, 2007, and a summary of significant accounting policies
and other explanatory notes (together “financial statement”).

Management's Responsibility for the Kinancial Statement

Management is responsible for the preparation and tair presentation of this financial statement in
accordance with International Financial Reporting Standards (“IFRS”). This responsibility
includes: designing, implementing and maintaining internal control relevant to the preparation
and fair. presentation of the financial statement that is free from material misstatement, whether

duc to fraud or crror; selecting and applying appropriate accounting policics; and making —

accounting estimates that are reasonable in the circumstances.
Auditors’ Responsibility *

Our responsibility is to express an opinion on this financial statement based on ‘our audit. We
conducted our audit in accordance with International Standards on Auditing. Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance whether the financial statement is free of material*misstatement,

An audit involves performing procedurcs to obtain audit evidence about the amounts and
disclosures in the financial statement. The procedures sclected depend on our judgmeat,
including the assessment of the risks of matcrial misstatement of the financial statement, whether
due to fraud or error. In making those risk assessments, we consider internal contrul relevant to
the Trust’s preparation and fair presentation of the financial statement in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Trust's internal control. An audit also includes evaluating the
appropriatencss of accounting policies used and the reasonableness of accounting estimates, if
any, made by management, as well as cvaluating the overall presentation of the financial
Statement.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for pur audit opinion, | ’

AME
. Opinion

In our opinion, the financial statement presents fairly. in all material respects, the financial
position of the Trust as at December 31, 2007 in accordance with IFRS.

Emphasis of Matier

Without qualifying our opinion we emphasize that this financial statement Uvoes not comprise a
complete set of financial statements prepared in accordance with IFRS. Information on results of
operations, cash flows and changes in equity is necessary to obtain a complete understanding of
thé financial position, performance and cash flows of the Trust.

hhh

Nassau, Bahamas ‘
’ April 8, 2008 ,

HSBC INTERNATIONAL TRUSTEE (BAHAMAS) LIMITED

Balance Sheet

December 31, 2007, with corresponding figures for 2006
(Expressed in United States dollars)













ae oe Note . 2007 2006
Assets
Cash - group company . , 4.5 : $ 19,140 34.460
‘Term deposit - group company 4,5 1,000,000 1.000.000
Refundable deposits . 835 1950
interest receivable - group company 5 3.383 3,348
Other assets ° 11.790 25°
To et ee eg © A095 dR = 1 010.789
Liabilities
Accrucd expenses , ; 3 32,340 12.510
Shareholder’s Equity
Share capital 6. 1,000,000 1,000,000
Share premium 4 325,000 425.000
Accumulated deficit . (522.692) (397,721)
Total shareholder's equity / 1,002.308







See accompanying notes iv balance sheet:

The-batani ICEL eye pe eae: for issue by the Board of melons on April 8. 2008 by:







qooenente ee Director
aie <= a SS
Vat 5 me eel Director

Notes ty Balance Sheet

December 31, 2007
(ixpressed in United States dollars)



t, Reporting entity

HSBC oe Trustee (Bahamas) Lunited ¢ the

Erase fermerky farnaiime
ae nts Lt

« Was incorporated under the hays of The Commenwealtl oft

“The ae don October 28, 2004, ‘The name of the
fine stments Lid on November 23, 2004. The ‘rast is ficensed to Cathy or tous business
from within She Bahamas under The Banks and ‘Trust C aapaes Re, wations Aer 09
Phe Hosts parent is HSBC International Trustee Limited. BYE ¢the Parent) which 1s

Inorperned ia fhe British Virgin Islands. ‘The altimate holding, compatis is cee Hobdineys
ple neorperrted: in Euptand.

Padus,



rust wars changed: thom: Ramaicoie

The address of the rewistured: atin oooh une Prist

wud its
PAC IDaT pit. of busitess is One Bay Steet. Nassau, Balaciats

Tae came cpal ao vities of the ‘Trust consist of Gondictiar



Pee dab orp ae alinerest nie ana

Hasbeet preparation

‘of compliance

‘sheet has been prepared un
andards i"IFRS”.

Avcordatige stl hateanatietia

surement

sheet has bein prepated esi te distor oot bs

ind presentation currency

sheet ie paesenled nib nae Mates oars bos

Teh.

THE TRIBUNE

(d) Use of estimates and judgements

lhe preparation of the valance sheet in conformity with IFRS requires management to
make judgements, estimates and assumptions that affect the application of accounting

Policies and the amounts reported in the balance shect and the accompanying notes,
These esumates are based on relevant information available at the balance sheet date and,
as such, actual results may differ from these estimates.

Estimates and underlying assumptions are 1eviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the estimates are revised and
inany future periods affected

A key source of estimation uncertainty is discussed in note 3(g). ,

3. Significant accounting policies

The accounting policies set out below have been applicd consistently to all periods presented
In this balance sheet.

(a) Foreign currency translation

Transactions in forcign currencies are wanslated at exchange rates prevailing at the dates
of the transactions. Monetary assets and liabilities denvminated in foreign currencies at
the reporting date are wanslated to the functional currency at the exchange rales at that
date.

(b) Financial assets and liabilities
(i) Classification

Financiai assets that are refundable deposits and interest receivable are classified as
luans and receivables.

Financial abiliues that are not at fair value through ptolit or loss are accrued
expenses.

Qi) Recognition and derecognition

A financial asset is recognized when the Trust has control over the contractual rights
that comprise the asset and is derecugnized when theTrust no loager has control over

such contractual rights, w hich occurs when the rights are realized, expire or are
surrendered,

A financial liability is recognized when the obligation specified in the contract is
entered inte aid is derecognized when such obligation is discharged, cancelled or
eNpired. :

cit) Measurement

Loans and receivables are measured at amortized cost plus accrued interest as of the
baiance sheet date. Financial assets that are stated at amortized cost are reviewed ai
cach baiance sheel date for impairment.

«c) Cash and cash equivalents

Cash and cash equivalents include cash and term deposit, These are short, term “highly
liquid investments” which are readily convertible into known amounts of cash without
notice. are sudject to an insignificant risk of changes in value with original maturities of
iess nan three months.

Cash and cash equivalents are carried at amoriised cost in the balance sheet.
id) Related parties

- Transactions with the Trust's parent and with group companies, which are companies
wholly-owned directly or indirectly by the Trust's ultimate parent, are disclosed in these
financial statements as balances and wansactions with "group companies”.

(e) Impairment

Financial assets are reviewed at each balance sheet date for evidence of impairment. If
such indication exists, the asset's recoverable Amount is estimated. An impairment loss is
recognized whenever the carrying amount of an asset excecds its recoverable amount.

An impairment less is reversed only to the extent that the asset's carrying amount does
net exceed the carrsing amount that would have. been determined, net of depreciation. if
ne iMpairment loss had been recognized.

4.0 Cash and term deposit — greup companys

Ai December 34, 2007 cash represents a call account with a balance of $19,140 (2006 -'
S34.466) which earns inierest at 1.50% (2606 — 1.59) per annum. :

Ar December 31. 2007 the ternedepesit af$1.000,000 (2006 '-.$ 1,000,000) earns interest-at
HEes 7c) perannunand: ‘matures March 7, 2008.



un

Related party tr aligaction

\ number of transactions are entered into with related parties in the normal course of
business. These, transactions were carried out on an arms length basis. Balances and
ansacuions described as related party relatc to balances and transactions with the Parent and
its subsidiaries and affiliates by virtue of common ownership by the Parent.

wads Casi. torn deposit and accrued interes
Cash and isrm deposit of the Trust are kept with The Hongkong and Shanghai
Banking Corporation, Nassau Branch ¢*Nassau Branch” ) in the amount of $19,140

(2000 - $34.460: and $1.600,000, (2006 -*$1.000.000) respectively.. The related
interest recervabie totalled $3,383 (2006 - $3,348). a



6. Share capital and share premium

ihe authorised share capita ts $1,000,000 divided inte 1,000 shares of USS$1.U00 each issued
aid full paidans Phe surpius ef the issue price over the nominal vaiue of the shares is
thetaded as shure premium in equity.





Beard of Directors approved the proposed
mount of $125,000 and $1U0.000, respectively. These amounts

titted as share oremium and paid by the Parent vn March 8, 2006 and January 10,
Secs
20" 2 respects viv,

On Marcin i. 2006 and December 1). 2006 the
HYeCUOT OF Sapalad in thas



Wore esi)



Asset under administration

Vhes Tepre: sretee er * Aa : i. esses

Vhe Trust sdministers trusts threugh an outsourcing arrangement with affiliates. At
December 31. 2007, assets heid in trust with a total value of approximately $113 million
P2U0G S23 million: are not included in the balance sheet

‘Vrust, é



. as these are noi assets of the

S. binancial instruments

Maiagement estimates that the fair values of cash and term deposit - group company do not
materially Tren: the carrviug vaiues. givett that the average elfective interest rates
dpprocinate Une Sunes mterest rates available to the Trust for

abies



similar facilities with similar
TMG TU iets

SHH ot fotinaaibyy deposits approapmates carrying value due to its short-term



40 Pinaneial rish management

fae Pntraduction and overvicn
ee
Phe Deus tees cpyocpirce toy tbe Wear vie om " :
Phe Trust has expestie to ihe falling risics from its use of financial instruments.
Ore isk
° RM Ds
eo Maraet rish
what Deak
Tats nety presents nocmauen abcut the Prust’s exposure to each of the abose risks, the
tives. peligs and process for measuri. and managiny risk



Ries maenaeniens ome wort

The Board ef Directors has overnd respensibility for the establishment and oversight ot
ork. which is based on that of the Par

ished the Trusts Asstan Pb sabilin, and Operaticna: Ris. :



he Prusts rsh management tram
seard has ests







He gysponsibie ter Goo elopin meaternis the Trost s risk omgnascment
Bach cerimtiqn Eup Seth oii amd mon wectiey embers and repert
the Boge dip by 1









a habusp mob anab. co tine risks
’ wee .
‘ ‘ wy whats ed Dioner psks and
TERY ' ” “ny or ef oe ere "y *
! ! : ine ' pee Pub ards te
sie prob toma awn ey Merc Pao Poreet chragen
aes : ru Wer wo Gee Men acdpeiptieod apg
“ » ited Noo ! | \ iets vse
al
' ! i ’
Vthe my t ’ ‘ wt ' ve ‘ uw
’





(b) Credit risk

The Trust is exposed to credit risk, which is the risk that one party te: franca!
instrument will fail to discharge an obligation and cause the
financial loss.

ether Pars loomeur a
As substanually all of the Trust's assets and ibe: are sath ores

companies, the risk of financial loss is considered low

(c) Liquidity risk

Liquidity risk is the risk that the Trust will encounter difficully in meeting ebhgations
from its financial Habilities. The Trust's approach to managing liquidity is to ensure. as
far as possible, that it will always have sufficient liquidity to meet its liabilities when duc,
under normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Trust’s reputation. As there are no residual contractual maturities ot
financial Habilitics, liquidity risk is considered low.

(d) Market risk
Market risk is the risk that changes in market prices, such as interest rate and foreign
exchange rates will affect the Trust's income or the value of its holdings of financial
instruments. ‘he nature and terms of the Trust's financial assets and liabiliues docs net
expose it ty significant market risk.

(e) Operational risk
Operational risk is the risk of direct or indirect loss arising from a wide variety of causes
associated with the Trust's processes, personnel, technology and infrastructure, and from
external factors other than credit. market and liquidity risks such as these arising from
legal and regulatory requirements and generally accepted standards of corporaie

behavior.
The Trust's objective is to manage operational risk, based on the operational risk
framework of the Parent, so as to balance the avoidance of financial losses and damuase to

the Trust's reputation with overall cost efiectivencss and to avoid control procedures that
restrict initiative and creativity.
The primary responsibility for the development and implementation of controls to
address opefational risk is assigned to the Operational Risk Commitice of the ‘Trust. ‘This
responsibility is supported by the adherence to overall Group standards for the
management of operational risk. Compliance with Group standards is supported by
periodic reviews undertaken by Internal Audit. ‘he results of Internal Audit reviews are
discussed with the management of the Trust. with summaries submitted to the Audit
Committee and senior management of the Parent.
10. Capital management
The Trust's lead regulator, The Central Bank of The Bahamas, sets and monitors vapital
requirements for the Trust. The current capital requirements require the Trust to maintain a
minimum capital of $1,000,000. The Trust has complied with the capital requirements
imposed throughout the year.

11. Subsequent event

On January 31, 2GU8 the Parent injected vapital in the amount of $140.G00 into the Trust.
This amount was designated as share premium.

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Renewable
energy and —
the Bahamas
Electricity |
Corporation

HE Bahamas Electricity

Corporation is inviting
proposals for renewable energy
power purchase agreements in
several technologies, officials have
told Tough Call.

Although there has been lots of
talk, this marks a dramatic policy
shift. It is driven by fear that esca-
lating oil prices and supply prob-
lems could disrupt the economy.
International concerns about pol-
lution and climate change are also
a big factor.

The pending request for pro-
posals follows the appointment of
a special committee at BEC to
research the most viable utility
scale renewable energy technolo-
gies for the Bahamas. This group
is headed by Jerome Elliot, a top
engineer, and includes Brian Tay-
lor, Robert Hall and Errol Davis.

They have identified the most
promising alternative methods to
produce electricity for the
Bahamas. These candidate tech-
nologies include solar photo-
voltaics (especially concentrating
trough collectors), hydrokinetics
(including ocean wave and tidal
systems), thermal conversion (such
as OTEC and biomass systems),
gasification (including the capture
of biogas from landfills) and wind
turbines.

“We are not yet at the point
where renewable energy is an eco-
nomic alternative at utility scale,”
BEC chairman Fred Gottlieb told

mein an interview. “But thistmay. :

come sooner rather than later giv-
en the escalating cost of fuel. Our
challenge is to get up and running
to prepare for that point. The
committee has put a lot of effort
into this - we are not just dabbling.
It is a part of this government’s
strategy and it is being actively
pursued.”

BEC supplies 85 per cent of all
Bahamian consumers, with an
installed capacity of about 400
megawatts. Grand Bahama Power
Company has an installed capaci-
ty oLabout 140 megawatts.

The cost to import the oil to
generate electricity in the
Bahamas is now running at over
$800 million a year. And BEC is
investing hundreds of millions in

‘new oil-fired generators for New

Providence, Abaco, Eleuthera and
Bimini to meet rising power
demands.

“Unfortunately, renewable
energy options cannot meet the
present rising demand on these
islands,” said BEC general man-
ager Kevin Basden. “But we are

looking to form public/private

partnerships with RE firms. I am
an engineer with 27 years experi-
ence at BEC and I totally support
these efforts, but it has to be prop-
erly managed.”

According to the committee,
BEC’s long-term planning must
seek to replace conventional fuels
with some combination of renew-
able energy technologies. A ratio
of at least nine megawatts of con-
ventional power to one megawatt
of power from renewable sources
has been proposed.

Among the most promising
alternative technologies for
Bahamian conditions is concen-
trating solar power -. using reflec-
tors to focus sunlight on to a tube
to heat a fluid which. produces
steam to drive a turbine that gen-
erates power.

This is the most mature solar
power technology, having been in
use since the 1980s. Six gigawatts
of capacity are now under devel-
opment around the world. How-
ever, these plants typically require
up to 500 acres of land for utility-

‘scale generation, which makes

them more appropriate for the
less-developed out islands, con-
nected via undersea cable to New
Providence.

At least one prospective
investor - Renewable Energy
Holdings of the United Kingdom
- has offered to finance a subma-
rine cable from Eleuthera to trans-
mit electricity produced by sun-
light, ocean waves or wind - or
some combination of each. REH
is a publicly traded company led
by Sir John Baker, who managed
Britain’s electricity privatisation
and restructuring programme.

TN=1-\an) Vine

The company owns, or is devel-
oping, wind farms in Germany,
Poland and Britain. It also owns a
landfill gas project in Wales and
has developed. advanced wave
power technology that pumps
high-pressure sea water ashore to
supply a reverse osmosis desali-

nation plant, or to generate zero-

emission electricity.

REH has offered to build such a
plant off the Atlantic coast of
Eleuthera, and BEC officials are
planning to visit a prototype plant
in Australia where this technology
is being tested.

Before its viability was threat-
ened by the withdrawal of a major
partner, the Baha Mar resort
development on New Providence
had proposed using OTEC tech-

‘nology to provide air condition-

ing to its waterfront hotels.

The Bahamas is considered an
ideal location for OTEC plants,
which must be within the tropics,
have a steep drop-off where the
ocean plunges to over 3,000 feet,
and be close to a power grid. New
Providence meets all these criteria.



warm surface sea water
into a tank. The air in the tank is
ptimped out to create a vacuum,
which vapourises the water. The
steam can be used to-spin a tur-

bine to generate electricity, and ©

then passes through a heat
exchanger where it is condensed -
by cold water pumped up from
the ocean - into fresh water.

BEC officials say that although
this technology is very capital
intensive and still in the develop-
ment stage, utility-scale joint ven-
tures with developers could be
“cautiously explored”. The Baha
Mar OTEC cooling project would
have cut the resort’s projected 23
megawatt electricity demand by
half, experts say.

Wind power is the world’s
fastest-growing renewable energy
technology with global capacity
currently at about 94 gigawatts,
but proposals for wind farms in
the Bahamas have fallen on deaf
ears in recent years. One reason is
because BEC’s investigation of
wind resoutces in 1991 concluded
that the costs did not justify an
investment in utility-scale genera-

tion. But that view has now °

changed.

“In the intervening years, all of
the previous objections (to wind
power) have been overcome,” the
BEC committee reported, “save
that of the visual impact of the
turbines.”

To understand what that means,
a few years ago an American com-
pany proposed building two large
wind farms on Abaco and
Eleuthera, each with 250 turbines
on thousands of acres of shore-
line. The two megawatt turbines
would have stood 450 feet high.
But this has to be weighed against
the cons of continued reliance on
fossil fuels.

The BEC committee has called
for a re-examination of the coun-
try’s wind resources in the light of
current technology and costs. It
also recommended a pilot wind
farm on the out islands, and sug-
gested that a hybrid wind farm
and wave power plant could sup-
ply all of Eleuthera’s energy needs.
BEC officials plan to visit the 23
megawatt Wigton wind farm in
Jamaica to see how the turbines
stand up to hurricane conditions.

Biofuel was not seen as a viable
solution for power generation in
the Bahamas, but a small produc-
tion plant is being set up in Nassau
by Bahamas Waste and Cape Sys-
tems of South Eleuthera. This
plant could produce sufficient
quantities of fuel from used cook-
ing oil to run BEC’s diesel vehicle
fleet. But as the committee points
out, burning biofuels will not elim-
inate carbon emissions, and large-
scale use will require continued

‘in OTEC plant\punips”.

=



reliance on costly imports.

In summary, the committee's
preliminary recommendations call
for BEC to build experimental
solar power facilities at its Blue
Hills and Clifton Pier sites, to
explore wave technology, to plan a
pilot wind farm, to explore fur-
ther co-operation on solar power
with Cape Systems on Eleuthera,
and to study the possibility of con-
sumer-scale implementation of
solar photovoltaics through net
metering.

According to Mr Basden, BEC
will also revisit the installation of
solar street lighting, which was
tried in Nassau on an experimen-
tal basis some 15 years ago but
never pursued due to maintenance
problems. BEC’s sub-stations and
public parks on New Providence
may also be fitted with solar lights,
he said.

And the corporation is promot-
ing energy efficiency at customer
education events around the coun-
try. The first energy fair was held
on Abaco recently and the next
will be on Eleuthera. The idea is to
push conservation measures that
.ordinary consumers can take - like

‘replacing old-style bulbs with com-

pact fluorescents. Experts say that
such measures alone could reduce
our energy costs by a third.

One technology that the com-
mittee did not explore in detail
was the production of energy from
garbage. But at least two firms are
already pursuing multi-million-
dollar waste-to-energy proposals
with the Ministry of Health, which
is responsible for landfills and sol-
id waste collection and disposal.

Innviron is a Florida-based firm
that manages more than 40 solid
waste facilities worldwide,-includ-
ing landfills, compost plants, recy-
cling facilities, and waste treat-
ment facilities. Innviron wants to
sort and ship metals, plastics and

-paper for recycling overseas, com-

post organic waste, and capture
landfill gas for energy production.

Meanwhile - as we reported last
week - a local group called
Bahamas Renewable Energy
Resources (headed by Waste-Not
Ltd's Virginia McKinney) is
proposing a thermal conversion
process that will virtually elimi-
nate landfills, compost organics
and convert most solid waste to a
non-toxic slag that can be used in
road-building and block-making.

“As we reduce garbage by 90

" per cent we will be able to power

over 70,000 households on New
Providence,” Mrs McKinney told
me, “as well as making millions
of gallons of potable water
through distillation.”

il prices are expected to

remain high and geopo-
litical issues are likely to cause
supply disruptions in the near-
term future, so it is more urgent
than ever for small island devel-
oping states like the Bahamas to
begin shifting their energy econo-
my away from fossil fuels.

The plain fact is that within 20
years we may be unable to afford
to buy the oil to run our economy.
We currently spend almost one
sixth of our GDP on fuel imports,
and by all accounts that price tag
will only go up. And if the tanker
doesn’t come, the country will shut
down.

To cut our dependence on fossil
fuels requires aggressive energy
conservation in the short term, as
well as a policy framework to
encourage research, development
and investment in a range of alter-
natives.

Another government-appointed
committee - headed by Philip
Weech, the new chairman of the
BEST Commission - is looking
into changing the legal and finan-
cial framework to provide for pri-
vate power generation and net
metering, and to promote invest-
ment in renewable energy.



PAGE 10, WEDIWE



SORY, APA. 30, 2008

mane

7 KPMG Telephone 242 394 200!
PO Box N i23 tax DA? 393 VTE
Montague Sterling Cerire Internet Wey ping Gam fs

East Bay Street
Nassau, Bahamas

INDEPENDENT AUDITORS’ REPORT

To the Shareholders of
Hang Seng Bank Trustee (Bahamas) Limited

We have audited the accompanying balance sheet of Hang Seng Bank Trustee (Bahanias) Limited
(“the Company”) as at 31 December 2007, and a summary of significamt accounting policies and
other explanatory notes (together “financial statement’ ae

Management's Responsibility for the Financial Statement

Management is responsible for the preparation and fair presentation of this financial Matement in.

accordance with International Financial Reporting Standards (“IFRS"). ‘This responsibility
includes: designing, implementing and maintaining internal control relevant to the preparalion
and fair presentation of the financial statement that is free from material misstaiement, whether
due to fraud or error: selecting ‘and applying appropriate accounting policies: and making
accounting estimates that are reasonable in the circumstances.

Auditors’ Responsibility

Our responsibility is to cxpress an opinion on this financial statement based on our audit, We
conducted our audit in accordance with International Standards on Auditing. Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance whether the financial'statement is free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statement. The procedures selected depend on, our judgment,
including the assessment of the risks of material misstatement of the financial statement, whether
duc to fraud or error. In making those risk assessments. we consider internal control relevant lo

the Company's preparation and fair presentation of the financial statement in order to design audit

procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company's intemal control. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of accounting estimates, if
any, made by management. as well as evaluating the overall presentation of the financial
statement.

:
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
- basis for our audit opinion.

Opinion

In our opinion, the financial statement presents fairly, in all material respects. the financial
position of the Hang Seng Bank Trustee (Bahamas) Limited as at 31 December 2007 in
accordance with IFRS.

Emphasis of Matter

Without qualifying our opinion we emphasize that this financial statcment does not comprise a
complete set of financial statements prepared in accordance with IFRS. Information on results of
operations, cash flows and changes in equity is necessary to obtain a complete understanding of
the financial position, performance and cash flows of the Company.

rPMK

Chartered Accountants
Nassau, Bahamas a

28 April 2008

HANG SENG BANK TRUSTEE (BAHAMAS) LIMITED

Balance Sheet

31 December 2007, with corresponding figures for 2006
(Expressed in United States dollars)









a Roe Nise essa
Assets :
Cash and cash equivalents "3&4 S L7T4ASTS — LS1S.889
Accounts receivable and other assets | 3 and Sia) , - 14.796
Total assets ~ S$ _1774.578 1.828.685

















Liabilities

oceans payable and other liabilities 3 and S(b) S 17,504 , 17,470
Current liabilities : NT SOF NATO
Equity :

Share capital : 5 S 1.000.000 1.000.000
Accumulated surplus nee he 787, O74 SUL2Q0S
Total equity 1.754.074 ae bss
Total liabilities and equity a oa



See accompanying notes to balance sheet.

The balance sheet has been approved by the Board of Directors on 28 April 2008 by the
following:

Mr. Joe Kennedy Chung King Cheng Director

Mr. Chi Son Leung Director



HANG SENG BANK TRUSTEE (BAHAMAS) LIMITED

Notes to Balance Sheet

31 December 2007
(Expressed in United States dollars)

SR I I ET

1. General information and significant accounting policies

(a) General information:

Hang Seng Bank Trustee (Bahamas) Limited (the Company). a wholly-owned
subsidiary of Hang Seng Bank (Bahamas) Limited, which is Incorporated under the
laws of the Commonwealth of The Bahamas. is inc orpurated under the laws of the
Commonwealth of The Bahamas and is licensed by the Ministry ef Finance of the
Bahamas Government to carry on trust business. :

(b) Ultimate holding company:

The ultimate holding company of the Company ix HSBC Holdmg> ple. which ts
incorporated in England. ,

(c) Statement of compliance:

The balance sheet has been prepared in accordance with International Finanesal
Reporting Standards (IFRS) and interpretations Promulgated by the iteration
Accounting Standards Board (LASBâ„¢) and the requirements of the kaws of the
Commonwealth of The Bahamas.

(d) Changes in accounting policies:

The LASB has issued a number of new and revised FERSs and Interpretations tint are
first effective or available for early adoption far the current a Counts

Shted ot the
Company.



Fee TAU

There have been no significant changes to the accounting policies applied in this
balance sheet for the years presented as a result of these development. However, as 4
result of the adoption of IFRS 7. “Financial instruments: Disclosures” and the
amendment to LAS | “Presentation of financial statements: Capital disclosures”. there
have been some additional disclusures provided as follows:

As a result of the adoption of IFRS 7. the financial statements include expanded
disclosure about the significance of the financial instruments and the nature and
extent of risks arising from) those instruments, compared with the information
previously required to be disclosed by [AS 32. “Financial instruments: Disclosure
and presentation”. These disclosures are provided throughout this balance sheet. in
paruculac in notes 2 and 8. -

The amendment to LAS | introduces additional disclosure requirements to provide
information about the level of capital and the Company's objectives. policies and
processes lor managing capital. These new disclosures are set out in note 5.

Both LERS 7 and the amendment to LAS | do not have any material impact on the
classification, recognition and measurement of the amounts recognized in the balance
sheet,

The Company has not applied any new. standard or interpretation that is not yet
effective for the current accounting period (see note 1c)». ‘

! New standards and injerpretations net vet adopted

A number of new standards, amendments to standards and interpretavions, are not yet
elfective for the year ended 31 December 2007, and have not deen applied in
preparing this eel sheet.

The Company. is in the process of making an assessment of what the impact of these
amendments, new standards and new interpretations is expected to be in the period of
initial application. So far it has concluded that the adoption of them is unlikely to
have a significant impact on the Company's results of operations and financial: :
position.

: In addition, the revised IASL: Presentation of financial statements. which becomes
effective for accounting periods beginning on or after 1 January 2009, may result in
new or amended disclosures in the balance sheet.

ifi Baste of preparation:

The balance sheet is presented in United States dollars, and are prepared on the
historical cost basis.

ft is the intention of the Directors to commence a voluntary liquidation of the
Company in the near future and a plan for closure is being developed. The Directors
consider that the most appropriate basis to prepare the financial statements is on a
break-up ‘basis. Asscts included in the balance shect are therefore stated at net
realizable value and estimated costs to be incurred for the voluntary liquidation will
be fully borne by the immediate holding company.

ww Use of estimates and judgments

The preparation of the balance sheet in conformity with TFRS requires management
to make judgments. estimates and assumptions that affect the application of
accounting policies and the amounts reported in the balance sheet and the
accompanying notes. ‘These estinittes and associated assumptions are based on
relevant infurmation available at the balance sheet date and. as such, actual results
nay differ from these estimates. ;

The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions te accounting estimates are recognized in the period in which the estimates
are revised and in any future perivds alfected.

in Cash and cash equivalenis

For the purpose of the statement of cash flows. cash and cash equivalents include
highly liquid investments that are readily convertible into known amounts of cash
and which are subject to an insignificant risk of change in value. Such investments
are normally those with less than three months” maturity from the date of acquisition,
and include cash and balances at central banks. treasury bills and other eligible bills,
loans and advances tw banks. and certificates of depusit.

a Foreign Currency IPGNSGCHONN

Transacligas. in foreign currencies are wanslated to United States dollars at the

forcig n eSchatige rates rulifig at the Gi of the Wansactions. Monetary assets and

iablitienglo minted in foreign curtencics at the balance sheet datecare translated :
United Stites doilars ait the foreign exchange tates ruling at that dite), Non- monétary

assets and liabilities denominated in foreign currencies, which are stated at historical

cast. are translated to United States dollars at the forsign exchange rates ruling at the

dates of the wansactions.



Tia

(pe Accounts paveile and omer iabilitics

Accounts payable are initially recognized at fair value and thereafier stated at
amortized cost unless the effeet of discounting would be immaterial, in which case
\

they are stated at cost. ae oe

2. Financial risk management

The Company has evposure to liquidity risk from its business and use of. financial
instrunvats. This note presents information about the Company's exposure. to this risk. the
Compaay’s objectives. policies and processes for measuring and managing risks. Further
quantitative disclusures are included throughout this balance sheet.

The Board of Directors has overall responsibility for the establishment and. oversight of the
Company's risk Hanagement framework.

As the Company is part ota larger group, the Cumpany follows the risk management policies
established by the group to identity and analyze the risks faced by the Company. to set
appropriate isk limits and controls, and to monitor-risks and adherence to limits. Risk
Management pohicies and systems are reviewed regularly to reflect changes in’ market
conditions and the Company's activities. The Company. through its training and management
standards and procedures. aims to develop a disciplined and.constructive control environment
in which wl eiplovees understand their roles and oblizauons.

The group audit commitice oversees how Management monitors compliance with the group's
tisk management policies and: procedures and reviews the adequacy of the risk management
framework in relation to the risks faced by the Company. The group audit committee is
assisted ii its oversight role by internal audit. Intemal audit undertakes both regular and ad
hoo reviews af risk management « vunttols and procedures. the results of which are reported to
the audit commitive

facgiandigy rixk

Paguudlts risk is the risk thatthe Company will not be able to meet its financial obligations as
they fail due. “Phe Comps 's inajet creditur ts its fellow subSidiary Uhat has ne plan to recall
the habilitios as at balance sheet date. The Company's approach to managing liquidity is to
ersure. as kit as posatble, that it will always have sufficient liquidity vo net its liabilities
When dug. under both normal and stressed conditions. without incurring unacceptable losses

vprsking damage tothe Company's reputation,
-

The contractual undiscoumted cash Hows of the Company's finanei liabilities are computed

at amounts not materially ditterent trom their carving values and are e\pected to be settled
wathin tf seats Avcordingly. exposure to liquidity risk is Limited and minimal.

§. Vransactions with related parties

Ia the normal Course vt business. the Company entered ity transactions with its intermediate
and inimediate holding companies and fellow subsidiaries. The transactions were priced
haocd on robo aint market rates atthe Cate of each transaction. and were under the same terms
te tose Geaubtble to other counterparties, Balances with) these relied parties as at 31
December 2U00 and 2000 are summarised below

etn seensnsennseansnsncneanmsnsns

2 oe _ a ‘007 2000
Cath and cast cquny alent. Ss POC iS7S ESTASSO
Ascounts recensabhe and other assets A730
\.counts pavable and other abilities 120M} HQ.299

2K as

TE

Cast cand caosty caquis saleats

Lc SSSR

_ we 2006 ,

CUrbent tec ouinit S hese POSE Zoe

wot sepostts 30] : 32.020
> ot ATS LST3.SNo

COSTE nh or a eh sO percon 26On Ser mer Garam Pte



wba ttt bee dO ta 2 et das



USL we, NP OU te, ey

Man in court over

stabbing death

court on time.

Mr Hanna told the court that it had been like a
game of “hide and seek” trying to track: down
embroiled in an altercation which ultimately led _ his client for the arraignment. Mr Hanna said his
to the deceased being stabbed multiple times chambers had made numerous inquiries through-
with a sharp object. out the day as to where Wright was being

Armbrister was reportedly rushed to Princess arraigned. Hanna told the court that his client’s |
Margaret Hospital in a private vehicle but died arraignment had been scheduled for Monday,
later as a result of his injuries. then Tuesday morning and then his chambers

ee Yesterday, Wright’s attorney Dwayne Hanna _ was informed shortly before 2pm yesterday that
Maturities of assets and liabilities told the court that his client had received death ‘Wright was being arraigned.
—_—_——$—$—$—$—$— rrr ee threats and asked that Wright be kept in solitary Chief Magistrate Gomez agreed that since he
facets, SS confinement away from the general prison pop- __ was representing Wright, he should have been
ulation. told when the arraignment was taking place.

Mr Hanna also expressed displeasure at the Magistrate Gomez said he would call the
way his client and his chambers had been treated _ prison to ask them to take special care of his
in regards to having his client brought to client.

Nassau flight delayed ‘jan found]

FROM page One passengers on this flight, but

: safety and security as always
always do for all such com- come first and we'll continue to

ments.” follow the same procedures for

vive ov



5. Share capital

ee
‘ 2007 2006

% Sie ae ne

Authorised, issued and fully paid:

1.000.000 shares of S] cach 1.000.000 100.000

The Company's primary objectives hen managing Capital are to safeguard Uhe Companys
ability to continue as a going concern, se that it can continue te provid \
shateholders and benefits for other stakeholders. by pricing products and sv tees
commensurately with the Jevel of risk and by securing ieeess to fimanee ala bests
The Company defines “Capital” as including all components ol equily.

ec oreturus bea

FROM page one

enable casi

$avith due regard to tie

The Company's capital structure is regularly review ed and managec
Adjustments are

capital management practice of the group ly which the Company belongs.
made to the capital structure in light of changes in economic conditions allecting: the
Company. to the extent that these do not conflict with the Directors’ fiducnirs duties towards
the Company. The Company's overall strategy remains unchanged fronithe pret year,

fay Accounts receivable and other assets

Within | year -
|
(by Accounts payabie and elitr iandities

Within 1 vear

f * a .
this caused for all of our other

Geographical distribution of asset

(ay Cashat bank innediate Noidiuniy «capitis

Americas

thy Call deposit die fromanionnedicte iaddine Conipot «

After the search, all passen-
gers, except the man making
the threat, were allowed to re-
board the aircraft and the flight
departed with a few hours
delay.

“We regret the inconvenience

all such threats,” the spokesper-
son said. |
Ms Pinson could not reveal

the identity of the man making

the threat and said she does not
know his purpose for travelling
to Nassau.

FROM page one

body and observed an

Asia-Paciti¢
apparent gunshot wound to

the head. :

Ms Mackey said initial
reports indicate that a lone
gunman shot the victim. The

erated that it is not the role of the US to interfere with the appoint- motive is not known. Last
ment process or selection of Supreme Court nominees ina foreign : Wednesday, two men were
country. : also’ shot in the head at
“That’s not my role,” he noted. : Adventurers Way and
Commenting on the almost 20-year-old indictment, the US Watlins Lane.
Ambassador said he was astonished to learn of it. Andy Wilfred Weekes,
“T was surprised to learn of that information the same way every- 32, died on arrival at hospi-
body else was,” he said. tal, and Terrel Mingo, also
However, he emphasised that it is not for “us Americans or the known as Jamaal Stubbs, 30,
Embassy to make a comment.” of Nassau, died the next
Mrs Nottage, at 64, is only months away from the constituted day. Their deaths were the
retirement age. 3rd and 4th of the year.
However, it is expected that Mrs Nottage will be given an exten- It is not known whether
sion so she can serve beyond her 65th birthday. | adhe two shootine According to the Bahamas Constitution, a Supreme Court judge { 4g g
can be permitted to serve until the age of 67, providing that the: :
Governor General, acting on the recommendation of the prime
‘minister and after consultation with the leader of the opposition,
agrees to it.

‘Wo live case’ against Rubie Nottage in US
FROM page one

Financial instruments 6

Financial assets of the Cumpany imelude cash and cash cquisaleats and atc counts tecans ale
and other assets. Financial liabilities of the Company meiude aecoants payable and other
liabilities. The fair value. of the financial iastruments was net matonlh. ditigren’ prone: ie
carrying amounts at 31 December 200" and 2u06

There were no off-balance sheet financial contacts critstandne ab the babap ce siyet dai
hedges of anticipated future transaeuons



Police are asking anyone
with information to assist
ee . them with their investiga-

CHARTER SERVICE tions.

SCHEDULE SERVICE

‘| rrezronr-NASSAU.

FREEPORT

Re Hee

STARTING —
Thursday, May Ist

Equipment: SAAB340 - 33 a in fight ee
DAILY FLIGHT SCHEDULE

Freeport to Nassau:

Fit Departs Equip. Freq.
501 7:00 am SAAB340 Daily
503 12:00 pm SAAB340 Daily
505 6:00 pm SAAB340 Daily

Nassau to Freeport:
Departs Arrives Equip. .- Freq.
7:55 am. 8:35 am SAAB340 Daily
» 12:55 pm 1:35 pm SAAB340 Daily
7:05 pm 7:45 pm SAAB340 Daily











The 2008 Carens is an all-new model, only the name of the previ-
ous model has been retained. Longer, wider and taller than its
predecessor (by 55, 50 and 40 mm respectively), the latest
Carens does not share a single panel with the old model and its
smoother exterior, with elegant detailing, results in significantly
improved aerodynamics.

For reservations: (Freeport) Regional Air at (242) 351-5614/352-7121 or 352-7969
(Nassau) SkyBahamas at (242) 327-8993/327-0250 or (242) 377-8777 on weekends
| Toll Free (242) 300-0294

Flights Operated By ¢





ON THE SPOT FINANCING AVAILABLE WITH
COMMONWEALTH BANK

INSURANCE AVAILABLE WITH ADVANTAGE
INSURANCE BROKERS & AGENTS LTD

SANPIN MOTORS LIMITED
Thompson Blyd, Oaks Field

Phone 242-326-6377

fax: 262:326-6315

FOR ALL YOUR

ADVERTISING
NEEDS CALL 322-1986



We are sorry for the inconvienience, there was an error
in yesturday’s paper, Tuesday, April 29th, 2008.





FAUE 12, WOUVINCOVAIL, AD Mik vy, cvvy

L ~~

INDEPE

To the Shareholders of

KPMG lelephone 242 393 2007
PO Box N 123 Fax 242 393 1/72
Montague Sterling Centre In t www.kpmg.com.bs



East Bay Street
Nassau, Bahamas

NDENT AUDITORS’ REPORT

Hang Seng Bank Trustee International Limited

We have audited the accompanying balance sheet of Hang Seng Bank Trustee International
Limited (“the Company”) as at 31 December 2007, and a summary of significant accounting

policies and

other explanatory notes (together “financial statement”).

Management's Responsibility for the Financial Statement

Management is responsible for the preparation and fair presentation of this financial statement in

accordance

with International Financial Reporting Standards (“IFRS”). This responsibility

includes: designing, implementing and maintaining internal control relevant to the preparation

and fair pre

sentation of the financial statement that is free from material misstatement, whether

due to fraud or error; selecting and applying appropriate accounting policies; and making
accounting estimates that are reasonable in the circumstances.

Auditors’ Responsibility

Our responsibility is to express an opinion on this financial statement based on our audit. We
conducted our audit in accordance with International Standards on Auditing. Those’standards

require that

we comply with ethical requirements and plan and perform the audit to obtain

reasonable assurance whether the financial statement is free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and

disclosures

in the financial statement. The procedures selected depend on our judgment,

including the assessment of the risks of material misstatement of the financial statement, whether
due to fraud of error. In making those risk assessments, we consider internal control relevant to
the Company's preparation and fair presentation of the financial statement in order to design audit

procedures

that are appropriate in the circumstances, but not for the purpose of expressing an

opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of accounting estimates. if

any, made
statement.

We believe

by management, as well as evaluating the overall presentation of the financial

that the audit evidence we have obtained is sufficient and appropriate to provide a

basis for our audit opinion.

Opinion

In our opinion, the financial statement presents fairly, in all material respects, the financial

position of

the Hang Seng Bank Trustee International Limited as at 31 December 2007 in

accordance with IFRS.

Emphasis of Matter

Without qualifying our opinion we emphasize that this financial statement does not comprise a
complete set of financial statements prepared in accordance with IFRS. Information on results of
operations, cash flows and changes in equity is necessary to obtain a complete understanding of

the financial

position, performance and cash flows of the Company.

KPM&-

' Chartered Accountants
Nassau, Bahamas

28 April 2008

HANG SENG BANK TRUSTEE INTERNATIONAL LIMITED

Balance Sheet

31 December 2007, with corresponding figures for 2006
(Expressed in United States dollars) ;











Note * 2007 2006
Assets
Cash and cash equivalents 3&4 S$ 1,100,320 1,211,596
Accounts receivable and other assets 3 & 6(a) 230,264 164,197
Total assets $ 1,330,584 1,375,793
Liabilities
Accounts payable and other liabilities 3 & 6(b) $ 203,519 19331 1
Current liabilities’ $ 203,519 see
Equity
Share capital 5 $ 1,000,000 1,000,000
Contributed surplus 300,000 * 300,000
Accumulated deficit (172,935) (117,518)
Total equity 1,127,065 1,182,482
Total liabilities and equity $ 1,330,584 1,375,793

See accompanying notes to balance sheet.

The balance
following:

sheet has been approved by the Board of Directors on 28 April 2008 by the

Mr. Joe Kennedy Chung King Cheng Director

Mr. Chi Son Leung Director

HANG SENG BANK TRUSTEE INTERNATIONAL LIMITED

Notes to Balance Sheet

31 December 2007
(Expressed in United States dollars)



1. General information and significant accounting policies

(a)

(b)

(c)

General information:

Hang Seng Bank Trustee International Limited (“the Company”), a wholly-owned
subsidiary of Hang Seng Bank Limited, which is incorporated in Hong Kong, is
incorporated under the laws of the Commonwealth of The Bahamas and is licensed
by the Ministry of Finance of the Bahamas Government to carry on trust business.

Ultimate holding company:

The ultimate holding company of the Company is HSBC Holdings plc, which is
incorporated in England. ,

Statement of compliance:

The balance sheet has been prepared in accordance with International Financial
Reporting Standards (“IFRS”) and interpretations promuigated by the International
Accounting Standards Board (“IASB”) and the requirements of the laws of the
Commonwealth of The Bahamas.

f

d) Changes in accounting policies:

The LASB has issued a number of new and revised IFRSs'and Interpretations that are
first effective or available for early adoption for the current accounting period of the
Company.
There have been no significant changes to the accounting policies applied in the
balance sheet for the years presented as a result of these development. However, as a
result of the adoption of IFRS 7, “Financial instruments: Disclosures’ and the
amendment to IAS 1 “Presentation of financial statements: Capital disclosures”, there
have been some additional disclosures provided as follows:

As a result of the adoption of IFRS 7, the financial statements include expanded
disclosure about the significance of the financial instruments and the nature and
extent of risks arising from those instruments, compared with the information
previously required to be disclosed by LAS 32, “Financial instruments: Disclosure
and presentation”. These disclosures are provided throughout this balance sheet, in
particular in notes 2 and 8. : \

The amendment to LAS 1 introduces additional disclosure requirements to provide
information about the level of capital and the Company’s objectives, policies and
processes for managing capital. These new disclusures are set out in note 5.

Both IFRS 7 and the amendment to IAS 1 do not have any material impact on the
classification, recognition and measurement of the amounts recognized in the balance

sheet.

The Company has not applied any new standard or interpretation that is not yet
effective for the current accounting period (see note 1(c)).

(¢) New standards and interpretations not yet adopted

A number of new standards, amendments to standards and interpretations are not yet
effective for the year cnded 31 December 2007, and have not been applied in
preparing this balance sheet. oe

The Company is in the process of making an assessment of what the impact of these
amendments, new standards and new interpretations is expected to be in the period of
initial application. So far it has concluded that the adoption of them is unlikely to
have a significant impact-on the Company's results of operations and financial
position.

In addition, the revised LAS1: Presentation of financial statements, which becomes
effective for accounting periods beginning on or after 1 January 2009, may result in
new or amended disclosures in the balance shect.

(f) Basic of preparation:

The balance sheet is presented in United States dollars, and are prepared on the
historical cost basis.

Use of estimates and judgments

The preparation of the balance sheet in conformity with IFRS requires management
to make judgments, estimates and assumptions that affect the application of
accounting policies and the amounts reported in the balance sheet and the
accompanying notes. These estimates and associated assumptions are based on
relevant information available at the balance sheet date and, as such, actual results
may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognized in the period in which the estimates
are revised and in any future periods affect: 1.

(h) Cash and cash equivalents

For the purpose of the statement of cash ws, cash and cash equivalents include
highly liquid investments that are readily nvertible into known amounts of cash
and which are subject to an insignificant r. . of change in value. Such investments
are normally those with less than three moni ° maturity from the date of acquisition,
and include cash and balances at central bar _,, treasury bills and other eligible bills,
loans and advances to banks, and certificates ~ deposit.

(i) Foreign currency transactions

Transactions in foreign currencies are trar ited to United States dollars at the
foreign exchange rates ruling at the dates of 1e transactions. Monetary assets and
liabilities denominated in foreign currencies 2 he balance sheet date are translated to
United States dollars at the foreign exchange es ruling at that date. Non-monetary
assets, and liabilities denominated in foreign.c_ rencies, which are stated at historical
cost, are translated to United States dollars at > foreign exchange rates ruling at the
dates of the transactions.

(j) Accounts receivable

Accounts receivable are initially recognized fair value and thereafter stated at
amortized cost less impairment losses for ba and doubtful debts (see note !(1)),

except where the receivables are interest-free ans made to related parties without
any fixed repayment terms or the effect of disc inting would be immaterial. In such
cases, the receivables are stated at cost less in airment losses for bad and doubtful
debts (see note {(m)).

(k) Accounts payable and other liabilities

Accounts payable are initially recognized a Jair value and thereafter stated at
amortized cost unless the effect of discounting vould be immaterial, in which case
they are stated at cost.

(I) Impairment of assets

Current and non-current receivables that are stated at cost are reviewed at each
balance sheet date to determine whether there is objective evidence of impairment. If
any such evidence exists, any impairment loss is determined and recognized as the
difference between the carrying amount of the financial asset and the estimated future
cash flows, discounted at the current market rate of return for a similar financial asset
where the effect of discounting is material. ;

If in a subsequent period the amount of an impairment loss decreases and the
decrease can be related objectively to an event occurring after the impairment loss
was recognized, the impairment loss is reversed through statement of income. A
reversal of an impairment loss shall not result in the asset's carrying amount
exceeding that which would have been determined had no impairment loss been
recognized in prior years.

Financial risk management

The Company has exposure to credit risk, liquidity risk and currency risk from its business
and use of financial instruments. This note presents information about the Company's
exposure to these risks, the Company's objectives, policies and processes for measuring and
managing risks. Further quantitative disclosures are included throughout this balance sheet.

The Board of Directors has overall responsibility for the establishment and oversight of the
Company's risk management framework.

As the Company is part of a larger group, the Company follows the risk management policies
established by the group to identify and analyze the risks faced by the Company, to set
appropriate fisk limits and controls, and to monitor risks and adherence to limits. Risk
management policies and systems are reviewed regularly to reflect changes in market
conditions and the Company's activities. The Company, through its training and management
standards and procedures, aims tc develop a disciplined and constructive control environment
in which all employees understand their roles and obligations.

The group audit committee oversees how management monitors compliance with the group's
risk management policies and procedures and reviews the adequacy of the risk management
framework in relation to the risks faced by the Company. The group audit committee is
assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad
hoc reviews of risk management controls and procedures, the results of which are reported to
the audit committee.

Credit risk

Credit risk is the risk that financial loss arises from the failure of a customer or counterparty
to meet ils obligations under a contract. It is primarily attributable to cash and cash
equivalents, accounts receivable and other assets. ,

The Company follows the group's established policies and systems for monitoring and control
of credit risk.

At the balance sheet date there were no significant concentrations of credit risk. The
Maximum exposure to credit risk is represented by the carrying amount of each financial
asset in the balance sheet after deducting any impairment allowance. The Company does not
provide any other guarantees which would expose the Company to credit risk.

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as
they fall due. The Company's major creditor is its fellow subsidiary that has no plan to recall
the liabilities as at balance shect date. The Company's approach to managing liquidity is to
ensure, as far as possible, that i: will always have sufficient liquidity to meet its liabilities
when due, under both normal and stressed conditions. without incurring unacceptable losses
or risking damage to the Company's reputation,



THE TRIBUNE

WEDNESDAY, APRIL 30, 2008, PAGE 13



‘The contractual undiscounted cash flows of the Company s financial abilities are computed
at amounts not materially different from their carrying vadues and are expected te be setthed

within | year. Accordingly. exposure to liquidity risk is Limited and minimal

Currency risk

The Company's forcign exchange exposure, which arose from currene, exposes onginated
by its insurance premium, 's managed within foreign exchange position limits approved by
the immediate holding company.

3. Transactions with related parties

In the normal course of business. the Company entered into transactions with tts inunediate
holding companies and fellow subsidiaries. The transactions were priced based on relevant
market rates at the time of each transaction, and were under the same terms as those available
to other counterparties. Balances with these related purties as at 31 December 2007 and 2006
are summarized below:







Cash and cash equivalents ; S 1.100,320 1.21 1SY6
Accounts receivable and other asscts 55.780 AO227
110,278 138.03 |

Accounts payable and other liabilities

4. Cash and cash equivalents









oe,
; 2007 2000

Current account S OS2471 1.132.703
Savings account 42.340 ae

Call deposit 105.809, 30.171

S$ 1.100.320 121.90

The effective interest rate on savings account and call deposit were 1.03 percent (2006:
1.18%) per,annum.

5. Share capital



Authorised, issued and fully paid:

1.000 shares of $1,000 each S 1.000.000 1.00.00

The Company's primary objectives when managing capital are to safeguard the Company's
ability to continue as a going concern, so that it can continue to provide returns for
shareholders and benefits for other stakeholders. by pricing products and services
commensurately with the level of risk and by securing aecess to finanee ata reasonable cost
The Company defines “Capital” as including all components of equity.

The Company’s capital structure is regularly reviewed and managed with due regard io the
capital management practice of the group to which the Company belongs. Adjustments are
made to the capital structure in light of changes in economic conditions affecting the
- Company. to the extent that these do net conflict with the Directors’ fidueiary duties tow ards
the Company. The Company's overall strategy remains unchanged from the prer year.

6. Maturities of assets and liabilities



aS
2007 2006

fay Accounts receivable and otiter dysety
Within | year S 213.529 1o4.197
Between 1-5 years 16. 33 -
$ 230, ser 164.197

(b) Accounts payable and other liabilities

Within | year $ 203,519

7. Geographical distribution of assets

Cash and cash equivalents ~ call deposit and savings

Asia-Pacific lou 1G

Cash and casi equiveients ~ current account

Americas 1o0 1a

8. Financial instruments

Financial assets of the Company include cash and cash equivalents and accounts receivable
and other assets. Financial liabilities of the Company include accounts payable and other
abilities. The fair values of the financial instruments was not materially dilferem from the
carrying amounts at 31 December 2007 and 2006.

There were no off-balance sheet financial contracts Gulstandi! ag at the balance slivet date as
hedges of anticipated future transactions.

If

IN THIS FRIDAY ’S
EDITION OF
THE TRIBUNE



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One year on:
reflections on

FNM Cabinet
appointments

FROM page one

sition.
In appointing his most

- recent senior team, Mr Ingra-

ham brought nearly all of his
23 elected members of the
House of Assembly into his
Cabinet, including many
young faces and future aspi-
rants to the top post in the
FNM.

Former FNM leader Tom-
my Turnquest, Dion Foulkes,
Carl Bethel and Zhivargo
Laing are among the top
names when considering a
successor to Mr Ingraham,
along with current Deputy
Prime Minister, Brent
Symonette, who sometimes is
left out of such discussions
because he is a white man in
a predominantly black coun-
try.

One senior FNM told The
Tribune yesterday that it is
too early in this new term to
fully judge the performance

-of these ministers as poten-

tial future leaders.

The prime minister makes
his appointments, the source
said, in the case of junior
ministers, to “get a feel for
their management skills more
than anything else.”

“We are one year on now,
and | think it’s time that he
would be doing that review.
It’s normally done after the
first year, not within the first
two months or even two
weeks,” he said.

The prime minister will
make this assessment of

younger members, the source
sadded, along with the more
“experienced members from’ ‘
“ prior administrations, and “it

is during this time that he
would make those shuffles.”

Tommy Turnquest, who
lost much political capital
during the 2005 leadership
race when Mr Ingraham came
back, has been given a fresh
chance to revitalise his polit-
ical career-in one of the high-
profile Cabinet posts: Nation-
al Security.

And, as an additional vote
of confidence, the prime min-
ister has made Mr Turnquest
leader of government busi-
ness in the House.

“Tommy Turnquest has
been given a second life,”
said the source. “It’s obvious
that the prime minister has
taken him under his wing
once again and he has been
given an opportunity to shine
and to show the type of lead-
ership skill that would ren-
der him attractive in the next
dispensation.”

The difficulty Mr Turn-
quest has, however, is record
levels of violent crime in 2007
that continue in 2008. The
consequence of this is that
the public has become

increasingly fearful and sen--

sitive to reports of violence
and murders that consistently
remain on the front page of
newspapers and as lead sto-

ries on the broadcast media.

Though no minister or
commissioner of police can
» solve the problem alone, the
country is looking for lead-
ers who can at least make
some positive contribution.

Consequently, there will be
close scrutiny of Mr Turn-
quest's performance inside
and outside'of his party, and
it will be hard for him to
claim successes when all indi-
cators reveal that high levels
of crime will persist in the
Bahamas.

Dion Foulkes has been hid-
den away from the regular
view of the public because of
the nature of his portfolio as
Minister of Labour and Mar-
itime Affairs.

“You measure that in
accordance with what hap-
pens in that area — whether
there are some demonstra-
tions, work stoppages. He is
not in one of those high-pro-
file ministries,” said the
source.

As a consequence Mr
Foulkes has been almost ‘the
lost man’ of this senior group.
The fact that he has been
unable to win a seat in two
consecutive elections, in addi-

Carl Bethel

tion to his less than exciting
post, further diminishes his
currency among his party and
colleagues for future leader-
ship consideration.

Carl Bethel, as Minister of
Education, has been enthusi-
astic about his portfolio.
However, the issue of school
violence may overshadow
other initiatives the minister
works diligently towards.

As new literacy pro-
grammes go unreported, los-
ing space to school stabbing
after stabbing, Mr Bethel will
need to find a way to break
through these headlines in

order to make a mark for.
himself in the post, if he

remains there.

The source also said that
Mr Bethel “has to temper
himself a little more” as “he
has a tendency to always say
exactly what he feels.”

Though, he added, the
Seabreeze MP, who is very
intelligent, listens more since
he first entered politics.

Zhivargo Laing has been
given great latitude by Mr
Ingraham to be the public
face of finance for the gov-
ernment, while Mr Ingraham
holds the substantive post.

But the Mona Vie affair,
which is now before the
courts, has somewhat thrown
a cloud over his political
career.

“He needs to be more per-
sonable. He seems to be
unapproachable at times.
And he needs to listen more,
too. But he has great poten-
tial. He knows finance —
that’s where he is, that’s
something that he knows. He
lives and breathes that,” the
FNM insider said.

Brent Symonette is regard-
ed by the FNM analyst as “a
good and astute politician.”
What must be remebered, he
said, when people question
Mr Symonette’s electability
is that he was “elected”
deputy leader of the FNM,
and not appointed.

Delegates at convention
mirror society at large, added
the source, and the majority
of these people are black,
indicating that Mr Symonette
does have support.

Tennyson Wells, who still
regards himself as an FNM,
despite his resignation from
the Ingraham cabinet in 1999,
said that Mr Turnquest, Earl
Deveaux, Mr Bethel and Mr
Laing appear to be the ones
who have been visible in this
government, along with the
prime minister.

“They seem to be the peo-
ple that are projecting them-
selves. The other young fel-
las, you don’t see them, I
don’t know if they are just
sitting there or whether they
are making up a number or
what,” he said, noting that
the public is even hearing less
from Mr Symonette in recent
months.

Though the FNM has sev-
eral young members with
eyes on the leadership post,
Mr Wells believes the prime
minister will run again in the
next election.

“If they are able to revive
the economy and things are



Dion Foulkes









Zhivargo Laing .



Ingraham will go
said Mr Wells,

good,
another term,”

. who does not think that the

age of 64 or 65 years is too
old for a person to seek re-
election.

Asked if he thinks the
young members will become
restless if Mr Ingraham seeks
re-election again, Mr Wells
said:

“No. Nobody in there is
strong enough to challenge
Ingraham — not that I see
there. If Ingraham wants to
go another term with the
group he has there, not a man
would say a word,” said Mr
Wells. “He (has) free rein.”

This inability of the next
FNM generation to step up
and be willing to stand out or
challenge the status quo in
the party is something Mr
Wells thinks is not ideal for
the country.

“What the country needs
now in Cabinet are people
who could be policy-makers
who could chart a new
course, so to speak, or be
innovative and get things
done like in the transporta-
tion system; in the agricul-
tural sector; in the tourism
sector,” Mr Wells added.

Former FNM Cabinet min-
ister Pierre Dupuch, who has
been a vocal critic of Mr
Ingraham since he was fired
in 1999, does not think any
of the FNM cabinet, thus far,
has stood out from the pack.

“My feeling is that when
Hubert says jump, they say
how high on the way up.” he
said. “That's my analysis of
it.”

Mr Dupuch said he does
not think the Cabinet has
shown much independence at
all thus far. And if these
would-be leaders wish to con
vince the public that they can
lead the country in the future,
he said, “they have to come
up with some original ideas”
and “they have to show a lit-
tle bit of independence.”

The prime minister is by
nature a “one man show”
suggested Mr Dupuch, which
makes it difficult for others
to come to the forefront.



PAGE 14, WEDNESDAY, APRIL 30, 2008 THE TRIBUNE



INTERNATIONAL NEWS

Dog survives eight days trapped in
rubble after Colorado explosion

@ BRECKENRIDGE, Colo.

A DOG was found alive and in relatively
good shape after spending eight days trapped
in the rubble of a building that exploded,
critically injuring the pup’s owner, accord-
ing to Associated Press.

Lulu, a Springer spaniel, was rescued Sun-
day after the owner of the business that had
been housed in the two-story building heard



1. HAWKSBILL SUBDIVISION,
FREEPORT.
LOT NO. 152
PROPERTY DESCRIPTION: Single
Family Residence
PROPERTY SIZE: 0.12 acres
LOCATION: Northwestern side of
intersection of Inagua Drive & Court #3

APPRAISED VALUE: $82,250

2. FREEPORT CITY SECTION 2,
FREEPORT
LOT NO. 113
PROPERTY DESCRIPTION: Four-Plex
Apartment Building
PROPERTY SIZE: 12,564 sq. ft.
LOCATION: On north of Nansen Avenue
and east of Forbisher Drive
APPRAISED VALUE: $200,000

FREEPORT

LOT NO. 57

PROPERTY DESCRIPTION: Single
Family Residence

PROPERTY SIZE: 5,487 sq. ft.
LOCATION: Abaco Drive
APPRAISED VALUE: $89,000

4, HUDSON ESTATES, FREEPORT
LOT NO. 393
PROPERTY DESCRIPTION: Incomplete
Structure, 1,284 sq. ft.
PROPERTY SIZE: 7,493 sq. ft.
LOCATION: Nansen Avenue & west of
Coral Road :
APPRAISED VALUE: $34,000

5, QUEENS COVE, FREEPORT.
LOT NO. 5 Block 25
PROPERTY DESCRIPTION: Single
Family Residence
PROPERTY SIZE: 0.22 acres
LOCATION: Along Victoria Lane south
of Whitehall Place

APPRAISED VALUE: $170,000

6. CHESAPEAKE SUBDIVISION,

FREEPORT te . /
kOT:NO.15 Block:31°. . ! i

| PROPERTY DESCRIPTION: Single
Family Residence
PROPERTY SIZE: 0.37 acres
LOCATION: Adjacent to a mini cul-de-
sac off the western section of Cutlass
Avenue :
APPRAISED VALUE: $147,000

LOT NO. 5 Block 17

PROPERTY DESCRIPTION: Single
Family Residence, 4 beds/ 3 baths
PROPERTY SIZE: 0.28 acres
LOCATION: Northern side of a cul-de-
sac called Churchill Court
APPRAISED VALUE: $307,420

1. BAHAMIA WEST REPLAT, FREEPORT
LOT NO. 19 Block 20
PROPERTY SIZE: Single Family Lot
0.27 acres
LOCATION: Western Side of Perth Court
cul-de-sac
APPRAISED VALUE: $27,000

2. FORTUNE POINT SUBDIVISION,
FREEPORT
LOT NO. 15 Block 7 Unit 4
PROPERTY SIZE: Single Family
12,075 sq. ft.
LOCATION: Eastern Side of Cooper
Road
APPRAISED VALUE: $35,000

3. DERBY SUBDIVISION, FREEPORT .
LOT NO. 9 Block 17 Unit 3
PROPERTY SIZE: Single Family Lot
0.30 acres
LOCATION: Queens Highway &
Dagenham Drive
APPRAISED VALUE: $33,000

4, LINCOLN GREEN SUBDIVISION, _

FREEPORT
LOT NO. 14 Block 10 Unit 2
PROPERTY SIZE: Multi / Single Family
0.44 acres
LOCATION: Government Road west of

. Fortune Bay Drive :
APPRAISED VALUE: $30,000

5. GRAND BAHAMA EAST SUBDIVISION,
FREEPORT
LOT NO. 152 Block “D” Section 2
PROPERTY SIZE: Single Family Lot
0.23 acres
LOCATION: South side of Kay Avenue
west of Drayton Street intersection
APPRAISED VALUE: $15,000

6, VOYAGER BAY SUBDIVISION,
FREEPORT
LOT NO. 1 Block 25
PROPERTY SIZE: Multi-Family
21,009 sq. ft.
LOCATION: Fronts along the curve o
Bradfield Lane. .
APPRAISED VALUE: $57,000

her whimpering.

“We turned off the radio and started call-
ing out Lulu’s name. Then we heard some
yelping,” Brian Hold, owner of Good Times
Adventures, told the Summit Daily News in
Tuesday’s editions.

Lulu’s owner, Brian Mislanski, had been
critically injured in the April 19 explosion
and remained at St. Anthony. Central Hos-
pital in Denver on Tuesday.

14.CORAL REEF ES

8. BAHAMA BEACH, GRAND BAHAMA

LOT NO. 264

PROPERTY DESCRIPTION: Single
Family Residence, 4 beds / 3 baths
PROPERTY SIZE: 0.16 Acres .
LOCATION: Western side of Rocky Point
Road :

APPRAISED VALUE: $211,536

9. HAWKSBILL SUBDIVISION,

FREEPORT

LOT NO. 124 ;
PROPERTY DESCRIPTION: Single
Family Residence, 1 bed / 1 bath
PROPERTY SIZE: 5,400 sq. ft.
LOCATION: Abaco Drive
APPRAISED VALUE: $70,000

FREEPORT

LOT NO. 5 Block 17

PROPERTY DESCRIPTION: Single
Storey Residence, 3 Bed / 2 Bath
PROPERTY SIZE: 15,000 sq. ft.
LOCATION: North along Dominica
Avenue and east of Beach Way Drive
APPRAISED VALUE: $250,000

411.,BAHAMIA WEST REPLAT

SUBDIVISION, FREEPORT

LOT NO. 22 Block 16

PROPERTY DESCRIPTION: Single
Family Residence, 3 beds / 2 baths
PROPERTY SIZE: 16,300 sq. ft.
LOCATION: On Iverness Lane
APPRAISED VALUE: $259,000

12.CIVIL INDUSTRIAL AREA, FREEPORT

LOT NO. 6 Block V

PROPERTY DESCRIPTION: Split Level
Commercial

PROPERTY SIZE: 17,500 sq. ft.
LOCATION: Fronting Walton Street and
east of Wimpole Street.

APPRAISED VALUE: $625,000

13, BAHAMIA NORTH SUBDIVISION,

FREEPORT
LOT NO. “Fairway Manor” Condominium

‘Apartment #304

PROPERTY DESCRIPTION: 1 bed / 1
bath

PROPERTY SIZE: 650 sq. ft.
LOCATION: Opposite the Golf Course
APPRAISED VALUE: $65,000

FREEPORT

LOT NO. 63 :
PROPERTY DESCRIPTION: Single
Storey Residence ‘
PROPERTY SIZE: 9,810 sq. ft.
LOCATION: Fronts along the eastern
side of Coral Reef Boulevard
APPRAISED VALUE: $119,000

. HUDSON ESTATES SUBDIVISION,

FREEPORT

LOT NO. 206

PROPERTY SIZE: Single Family Lot
7,300 sq. ft.

LOCATION: East of the intersection of
Rutherford Circle and Triana Drive.
APPRAISED VALUE: $20,000

. LINCOLN GREEN SUBDIVISION,

FREEPORT __

LOT NO. 46 Block 16 Unit'5
PROPERTY SIZE: Single Family Lot
0.26 acre

LOCATION: Southern side of Moor
Close east of intersection of Moor drive
& Moor Close.

APPRAISED VALUE: $31,000

|. LINCOLN GREEN SUBDIVISION,



EEPORT
LOT NO. 26 Block 1 Unit 1
PROPERTY SIZE: Duplex Lot
13,800 sq. ft.
LOCATION: South Side of Ludford Drive
APPRAISED VALUE: $38,000

10.BAHAMA PALM SHORES, ABACO

LOT NO. 11 &12 Block 27
PROPERTY SIZE: 20,000 sq. ft.
Single / Multi-Family lot

LOCATION: Southeast of Ocean View
Drive

APPRAISED VALUE: $52,000

411.ROYAL BAHAMIAN ESTATES,

FREEPORT

LOT NO. 36 Block 1

PROPERTY SIZE: 0.34 acres

Single Family lot

LOCATION: Eastern side of Honduras
Drive

APPRAISED VALUE: $28,000

412.LINCOLN GREEN SUBDIVISION,

LOT NO. 3 Block 16 Unit 2
PROPERTY SIZE: 20,250 sq. ft.
Multi Family lot

LOCATION: Southern side of Fulton
Lane and East Sunrise Highway
APPRAISED VALUE: $47,000

“I’m happy,” Mislanski told The Associ-
ated Press on Tuesday. He declined to com-
ment further, but friends who are caring for
Lulu said they took her to visit him — with
permission from the hospital.

Veterinarian Christine Murphy said Lulu
suffered mild dehydration and had some trau-
ma to her left eye. She probably survived by
drinking melting snow and eating food she
found in the debris, Murphy said.



15.REGENCY PARK SUBDIVISION,

FREEPORT

LOT NO. 60 Unit 2 / Section Ill
PROPERTY DESCRIPTION: Single
Storey Residence, 3 bed / 2 bath
PROPERTY SIZE: 11,340 sq. ft.
LOCATION: 265 yards west of the
intersection of West Regency Drive and
Brighton Drive.

APPRAISED VALUE: $132,300

FREEPORT

LOT NO. 27 Block 8

PROPERTY DESCRIPTION: Single
Storey Residence, 3 bed / 2 bath
PROPERTY SIZE: 0.19 Acres
LOCATION: Southern Side of
Independence Avenue.
APPRAISED VALUE: $118,440

17.HUDSON ESTATES, FREEPORT

LOT NO. 443

PROPERTY DESCRIPTION: Single
Storey Residence, 3 bed / 2 bath
PROPERTY SIZE: 0.24 Acres
LOCATION: Southeast corner of Nansen
Avenue and Mandeville Road
APPRAISED VALUE: $126,445

18.ARDEN FOREST SUBDIVISION,

FREEPORT

LOT NO. 38 Block 10 Unit5 = -
PROPERTY DESCRIPTION: Incomplete
Single Family Residence to belt
PROPERTY SIZE: 14,083 sq. ft.
LOCATION: Duke Drive

APPRAISED VALUE: $52,000

VACANT LOTS

13.BAHAMIA SOUTH, SECTION Vi,

SUBDIVISION, FREEPORT.

LOT NO. 5 Block 9

PROPERTY SIZE: Multi Family
Residential - 1.03 acres :
LOCATION: Southern side of Pint
Avenue and Santa Maria Avenue.
APPRAISED VALUE: $75,000

14.MURPHY TOWN, ABACO

LOT NO. #67 Crown Allotments #1
PROPERTY SIZE: 6,935 sq. ft.

Single / Multi-Family lot

LOCATION: Main Street of Murphy Town
APPRAISED VALUE: $11,096'

15.HOLMES ROCK, GRAND BAHAMA

LOT: Tract of Land

PROPERTY SIZE: Single Family lot
0.20 acres

LOCATION: Southern side of Queens
Highway / eastern side of PC Plaza
APPRAISED VALUE: $20,000

16. MURPHY TOWN, ABACO.

LOT NO. #67 Crown Allotments #2
PROPERTY SIZE: 12,100 sq. ft.

Single / Multi-Family lot

LOCATION: Main Street of Murphy Town
APPRAISED VALUE: $19,360

LOT NO. 13 Block 2 Unit 2
PROPERTY SIZE: Multi Family Lot
17,500 sq. ft.

LOCATION: Along Heybridge Drive 125
Ft. along the waterfront

APPRAISED VALUE: $64,000

INTERESTED PARTIES SHOULD SUBMIT OFFERS (INCLUDE TELEPHONE CONTACT AND POSTAL ADDRESS)
TO: ASSISTANT VICE PRESIDENT, CREDIT RISK, P. 0. BOX SS-6263, TEL. 394-6465; FAX: 393-2883, OR CHRISTOPHER KNOWLES
(FREEPORT), P.O. BOX F-40876, TEL: 352-8307; FAX: 352-8221 FOR FURTHER INFORMATION.

* WE RESERVE THE RIGHT TO REJECT ANY OR ALL OFFERS

©2008 CreativeRolations.not



ATE



TIBETAN EXILES, including monks and nuns, participate ina silent



Binod Joshi/AP



march to protest against China in Katmandu, Nepal, Monday, April 28,
2008. Thousands of Tibetans, mostly monks and nuns, held another of
their near-daily demonstrations Monday in Nepal's capital, urging the
U.N. to investigate China's crackdown on protests, but for the first time
they were not stopped by police. The protesters began their demon-
stration Monday in Swayambhu, an area dotted with Buddhist monas-
teries and Tibetan refugee camps, and marched two kilometers (one
mile) to the United Nations’ human rights office, where they handed a
statement to officials asking the world body to investigate alleged
killings and other alleged violations of human rights in Tibet.

China sentences
30 people over
riots in Tibet

® BEWING

SIX BUDDHIST monks
were among 30 people sen-
tenced by a Chinese court Tues-
day to jail terms ranging from
three years to life for taking part
in deadly riots in Tibet, accord-
ing to Associated Press.

The punishments were the
first to assaults, burning, loot-
ing and vandalism mainly tar-
geting Han Chinese and their
businesses in the Tibetan capital
of Lhasa and nearby areas
between March 14-16. ’

The violence and subsequent
government crackdown drew
worldwide attention to China’s
human rights record and its rule
in Tibet ahead of the Beijing
Olympics. Celebrations mark-
ing 100 days to the start of the
games take place Wednesday.

Trial

The sentences were
announced during two sessions
of a one-day trial at the Inter-
mediate People’s Court of
Lhasa, the official Xinhua News
Agency reported. China Cen-
tral Tclevision’s evening news-
cast showed the convicts being
led out by police with bowed
heads in front of a packed court-
room.

Xinhua said three men
received life sentences, including
a Buddhist monk identified as
Basang who allegedly led 10
people, including five other
monks, to destroy local govern-
ment offices, burn down shops
and attack policemen.

Two of Basang’s alleged
monk accomplices were sen-
tenced to 20 years, and the oth-
er three to 15 years in jail.

So@nam Cering, a driver for a
Lhasa real estate company, was
sentenced to life in jail.

The third man to receive a life
sentence was a 30-year-old busi-
nessman who was identified
only by his last name, Cering,
Xinhua said. The agency report-
ed that he was convicted of incit-
ing others to commit arson and
looting shops and vehicles dur-
ing riots in his home county of
Lingzhou, about 40 miles east
of Lhasa, on March 15 and 16.

CCY said seven people were
sentenced to about 15 years in
prison, and the other 20 received
sentences of between three to
14 years. The charges included
arson, robbery, interruption of
law enforcement, and theft, it
said.

The quick trials and their
prominent coverage by state
media signaled China’s resolve
in putting a firm lid on domestic
Tibetan dissent ahead of the

_ Summer Games.

“The party has a long tradi-
tion of carrying out speeded up
trials with minimum forms of
process for defendants whenev-
er it wants to send a strong mes-
sage to local people,” said Rob-
bie Barnett, an expert in mod-
ern Tibet at Columbia Univer-
sity.

Such trials originated in China
in the early 1980s in so-called
“Strike Hard” campaigns,
intended to speed up prosecu-
tions for crimes considered at
threat to social stability, he said.

Foreign Ministry spokes-
woman Jiang Yu defended the
judicial process, saying during a
regular press briefing Tuesday
that the competent authorities
would handle the Tibetan law-
breakers “according to the lo
moved to tamp down tensions
diplomatically. The government
announced last week that it
would be willing to begin talks
with representatives to the Dalai
Lama, the exiled spiritual leader
of Tibet whom Beijing has
blamed for fomenting the
unrest.

Jiang said “specifics of the
contact and consultation have
still yet to be further discussed.”

The gesture comes after rights
groups and pro-Tibetan sup-
porters outside China protest-
ed against the Olympic torch
relay at several stops around the
world, resulting in massive dis-
ruptions and clashes with pro-
China groups in some cities.

Investigators

On Monday, Tibetan author-
ilies announced the reopening
of one of Tibet’s main monas-
teries, the Sera, which was
closed after the riots, something
officials had said would happen
once investigators determined
if any monks took part in the
unrest.

China has said 22 people died
in the riots; Tibet’s government-
in-exile said Tuesday it believes
at least 203 Tibetans were killed
in the ensuing crackdown,

The estimate was compiled
from the government-in-exile’s
own sources, Tibetan exile
groups and official Chinese
media. [t was impossible to inde-
pendently verify the informa-
tion.

The protests, initially led by
Buddhist monks, started peace-
fully on March 10, the anniver-
sary of a failed Tibetan upris-
ing against Chinese rule.

They became violent four
days later as Tibetans attacked
cars and shops run by Han Chi-
nese, China’s majority ethnic
group.



THE TRIBUNE




' WEDNESDAY, APRIL 30,

INSIDE ¢ International sports news —

PAGE 15

Sanceeeeeeeensneee









2008

Ne middleweight champion waiting for opponent

FIRST CLASS PROMOTIONS is forced to wait once again to conclude arrangements for Jermaine ‘Choo Choo’ Mackey’s British Commonwealth

title fight...



(ee

‘Choo Choo’ Mackey training for
British Commonwealth

# By BRENT STUBBS
Senior Sports Reporter
bstubbs@tribunemedia.net

irst Class Promotions

is forced to wait once

again to conclude

arrangements for
Jermaine ‘Choo Choo’ Mack-
ey's British Commonwealth
title fight.

Mackey, the Bahamian and
undisputed World Boxing
Council’s Caribbean Boxing
Federation and World Boxing
Association’s FedeCaribe
super middleweight champion,
was originally scheduled to
fight African Charles “The Cru-
sader’ Adamu for the vacant
British Commonwealth title.

But during a waiting period
to finalise financial arrange-
ments for the fight, Adamu was
stabbed in his homeland and
promoter Michelle Minus said
they had to go back to the
drawing board for another
opponent.

First Class eventually settled
on Irishman Brian McGee.

The fight was set for Satur-
day, May 24, at Kendal Isaacs
Gymnasium. But Minus said
they once. again had to. delay
the completion of the deal after
McGee got injured in training.

Minus, however, said the
fight is still on, but they are in
the process of trying to find yet
another opponent for Mackey.

“This isn’t anything new.
Things like this happen all the
time in boxing,” Minus stated.
“It’s not the first time that we
have had opponents lined up
and they didn’t fight because
of an injury.”

Minus said they are waiting
on word from Bahamas Boxing
Commission secretary Fred

NPSA gets set for fast-pitch season

@ By BRENT STUBBS
Senior Sports Reporter
_ bstubbs@tribunemedia.net

THERE will be some new
faces on some different teams
this year as the New Provi-
dence Softball Association gets
set to start its 2008 fast-pitch
season.

On Saturday night at
_ Banker’s Field at Baillou Hills
Sporting Complex, the NPSA
will begin the new campaign
under a new executive board.

In a rematch of last year’s
final, defending champions
Electro Telecom Wildcats will
square off against runners-up
Proper Care Pool Lady Sharks
in the women’s opener at 7pm.

And in the men’s nightcap
at 8.30pm, defending champi-
ons D’s Truckers will put their
title on the line against the
youthful New Breed.

Sidney ‘Bobby Baylor’ Fer-
nander, who will begin his first
sting as the new president, said
they are anticipating a very
competitive year with seven
men’s and five women’s teams
lined up to compete this year.

In addition to the Truckers
and New Breed, the NPSA will
see the return of the Royal
Bahamas Defence Force
Floaters. The Mighty Mitts,
Outlaws and the Dorcy Park
Boyz are also entered.

Joining the Wildcats and the
Lady Sharks in the women’s
division are the BTC Connec-
tors and the Bommer George
Swingers. The DHL Brack-
ettes are also coming back this
year.

“Everything seems to be in
place. We are a little bit behind
in funds, collecting our fees,
but other than that, we’re ren-
ovating the field, redoing the
lights and putting up the score-
board,” Fernander noted.

“We’ve made some changes
to the structure of the field.

We’re doing some last-minute:

touches, but we will be ready
to go on Saturday. It should
be a very exciting season.”

Fernander noted that, while
they have lost one or two
teams, they welcome back the
Defence Force in the men’s
and the Brackettes in the wom-
en’s competition.

The Brackettes, managed by
Fernander, will be in a rede-
velopment stage with a virtu-
ally young squad on the field.

“Nobody wants to develop.
Everybody wants to win,” Fer-
nander pointed out. “We’re
not strong at all. All we have is
a bunch of young players.

“I don’t anticipate anything.
We’re just going to go out
there and play as best as we
can and try to develop the
young kids. We’re not looking
for anything. If the opportuni-
ty develops where we can look
good, we will take it. But most
of the teams have all of the
experienced players.”

While Fernander just wants
to go out and play, Proper
Care Pool will be looking to
improve on their runner-up
position last year in the wom-
en’s division.

“This time, we want to go all
the way,” said manager
Stephen ‘Bishop’ Beneby. “We
lost our lead-off batter (Keisha
Pratt) to pregnancy, but every-
body else is back.

“Two or three of my girls
may not be here for the open-
ing game because they had
already booked flights to be
abroad this weekend, but we
still should have a super sea-
son.”

Kelly Smith, Alex Taylor,
Thela Johnson and Rosemary
Greene are among players who
should once again make an

es

AN ELECTRO Telecom Wildcats player (pitching) in action...

impact for the Lady Sharks.
Beneby, who serves as the
new secretary, said he also
anticipates the NPSA having
a “super season” this year.
“We’ve added the Defence
Force men and in the ladies,



the Brackettes are back,” he
stated. “All of them should be
very strong, especially the
Defence Force.”

Commodore Clifford ‘Butch’
Scavalla, who hasn’t played
since the dynasty of the Bud-

weiser Eagles came to an end,

is expected to head the .

Defence Force team along
with veteran outfielder the Rev
Dencil ‘Joe Black’ Clarke.

With the Defence Force
coming back into the league,
they have lured officers
Ramon Storr and brothers
Philip and Terrance Culmer
from the Truckers, leaving the
defending champions a little
weaker. Dwayne Mackey i
also on their roster.

Along with the Defence
Force, New Breed, coached by
the association’s first vice-pres-
ident Martin ‘Pork’ Burrows,
are expected to be another
team to watch in the men’s as
they are a little more experi-
enced than they were last year.

Alcott Forbes, the best
young pitcher in the league,
along with Rashad Seymour
and Erin Adderley, are some
of their key players.

The Truckers, managed by
Perry Seymour, are back with
all of their other players,
including veteran pitcher
Leroy Thompson and infielder
Marvin ‘Tougie’ Wood.

All of the rosters have not
yet been submitted to Bene-
by. But, based on what he’s
seen from those turned in,
Beneby stated that the fans can
look forward to some compet-
itive teams across the board.

While the Wildcats report-
edly lost some players like
Chryshan Percentie, Renee
‘Sunshine’ Curry and Jean
‘Bubbles’ Minus, they are still
looking at ace Mary ‘Cruise’
Edgecombe on the mound.

Percentie, along with Chris-
tine Jenoure, have joined the
Swingers.

Manager Gary ‘Super’ John-
son will still rely on pitcher
Desiree Taylor and versatile
Nerissa Seymour.



title fight

Sturrup, who is attending a

British Commonwealth board

meeting in England.
Meanwhile, Minus said they

are still going on with their

preparation for the show,
which will have an all-Bahami-
an undercard.

In the co-main event, there
will be a heavyweight elimina-
tion bout between Jerry ‘Big
Daddy’ Butler and James
‘Killer’ Coakley scheduled for
10 rounds. The winner will
work towards a shot at the
Bahamas heavyweight title
held by Renaldo ‘The Termi-
nator’ Minus.

Also expected to fight on the
undercard are Ryan ‘Big
Youth’ McKenzie against
Richardo ‘One Shot’ Bethel;
Keisno Major will make his pro
debut against Ramon ‘Smok-
ing’ Rolle and Damian ‘The
Blade’ Tinker will go up
against Hensley ‘The Bruiser’
Strachan.

“Although we are still wait-
ing on a new opponent to be
named for Jermaine Mackey,
we are still going ahead with
all of our plans for the show,”
Minus said.

A press conference is
planned for May 8 when full
details of the show will be
released to the media.

Meanwhile, Minus said
Mackey is in the gym at the
Baillou Hills Sporting Complex
and. he’s working out vigor-
ously in preparation for his
long-awaited British Com-
monwealth title bout.

Mackey is hoping to become
the next Bahamian to win a
British Commonwealth title,
following in the footsteps of his
trainer and mentor, Ray Minus
Jr.

Cricket:
WR CHITRA

lefeats
Police

SATURDAY, April 26,
Dockendale defeated the
youthful Police team by 264
runs.

Dockendale, batting first,
scored 387.



Team captain and
Bahamas national team
captain, Narendra

Ekanayake, scored 124 not
out.

Police scored 123.

National team players
Greg Taylor, Marc Taylor
and Randolph Coakley
scored 24 runs each.

Sunday’s match between
Dorsey Park Boyz and St
Agnes was a thriller.

Dorsey Park Boyz batted
first and scored 205.

Mario Ford was the top
scorer for Dorsey Park with
56.

Bowling for St Agnes,
Hesketh Dean and Carl
Thomas took three wickets
each.

St Agnes scored 184 to
lose the match by 21 runs.

Jeff Stuart made his
debut batting for St Agnes
and scored a 40 runs.

Next weekend Dock-
endale will face off against
Commonwealth on Satur-
day while Paradise and St
Agnes will meet on Sunday.

The BCA teams will
begin playing League
matches in uniform on Sat-
urday, May 3, a first for the
Bahamas.



PAGE 16, WEDNESDAY, APRIL 30, 2008

TRIBUNE SPORTS



i ee aa aa ae
lanchester United sets up first

all-English European Cup final

@ By ROBERT MILLWARD
AP Soccer Writer

MANCHESTER, England (AP) —
Soccer’s European champion will be
from England.

Manchester United set up the first
all-English final in the history of the
Champions League, beating Barcelona
1-0 Tuesday night behind Paul Scholes’
goal in the 14th minute.

After winning the home-and-home
semifinal on 1-0 aggregate, Manches-
ter will meet Chelsea or Liverpool in
the final on May 21 at Moscow.

“It doesn’t matter who we play,”
United manager Alex Ferguson said.

Chelsea hosts Liverpool on Wednes-
day after gaining a 1-1 tie at Anfield
last week when Liverpool’s John Arne
Riise accidentally headed the ball into
his own net during the fifth minute of
injury time.

Manchester United and Chelsea won
their home games against each other in
the Premier League this season and tied
1-1 at Wembley in the Community
Shield. United swept its two league
matches against Liverpool.

“Whoever is put in front of us we’re
going to have to get past,” United mid-
fielder Michael Carrick said. “We’re
happy with anything. We’re there, and
we can enjoy it now.”

The final will be just the third involv-
ing clubs from the same nation in the 52-
year history of the competition. Real
Madrid defeated Valencia in 2000's all-
Spanish matchup, and AC Milan beat
Juventus in 2003’s all-Italian final.

“T think that the level of the English
teams is very high,” Barcelona coach
Frank Rijkaard said. “It’s strange to see
English teams defending, defending and
defending with their lives and trying to
win with the counterattack.”

A 33-year-old midfielder easily visible
because of his red hair, Scholes beat
goalkeeper Victor Valdes on a 25-yard
shot after a giveaway by Gianluca Zam-
brotta. That put Manchester United in
its first Champions League final since
1999.

Scholes scored just his second goal
of the season, his first since August 15 in
a Premier League match against
Portsmouth. He missed the 1999 final, a
victory over Bayern Munich, because
of a suspension.

After the match, he exited through a
side door and did not speak with
reporters.

“I don’t think we can expect Paul
Scholes to score 10-15 goals a season



MANCHESTER United’s Ji-Sung Park (left) battles for the ball with Barcelona’s Lionel Messi during Champions League semifinal second-
leg soccer match at Old Trafford stadium in Manchester, England, yesterday.

like he used to do when he was younger,
but he certainly delivered one tonight
for us,” Ferguson said. “It makes up for
the all the goals that he can’t score
because of his age now.”

.United, which also won the title in
1968, extended its home winning streak
in Champions League play to 12 games.
Manchester United also is closing in on
its second straight Premier League title.
With two matches left, it is tied with
Chelsea at 81 points but ahead on goal
difference.

Barcelona, struggling in recent weeks,

has been held scoreless in four straight
matches in all competitions.

“J have no intention of leaving,”
Rijkaard said. “The players in the dress-
ing room are very down, sad and disap-
pointed, but it’s easy to kick people
when they are down. Instead they need
help and support and to lift them, so
they can show their courage and per-
form well between now and the end of
the season.”

Wayne Rooney was missing from
Man United’s lineup after aggravating a
hip injury during Saturday’s 2-1 league

(AP Photo/Paul Thomas)

loss at Chelsea, leaving Cristiano Ronal-
do and Carlos Tevez up front.

In a physical game, Scholes knocked
down Barcelona’s Lionel Messi just out-
side the penalty area in the first minute.
But Messi’s ensuing free kick was
blocked.

Barcelona, in an effort to find an elu-
sive tying goal, brought on Thierry Hen-
ry in the 60th minute and 17-year-old
Bojan Krkic in the 72nd. Henry had a
good chance on a header off a corner
kick, but it went directly to goalkeeper
Edwin van der Sar.

China marks 100 days until Olympics

& By STEPHEN WADE
AP Sports Writer



BEIJING (AP) — Shim-

* mering stadiums and billions
of dollars spent to remake
Beijing into a modern city
have been overshadowed by
pro-Tibet protests, chaos on
the Olympic torch relay, and
an anti-Western backlash by
angry Chinese who sense
their coming-out party is
being spoiled.

With 100 days to go, the
battle has. been lost to keep
politics out of the Beijing
Olympics.

A year ago, former Interna-
tional Olympic Committee
President Juan Antonio
Samaranch predicted Beijing
would be the “best in
Olympics history.” A few
weeks ago, his successor,
Jacques Rogge, said the
games were “in crisis.”

The shine is off, and the
question is this: Can China
and the IOC restore some
luster by returning sports and
goodwill to the games?

The Olympics have been
visited by politics before, but
these have become the most
contentious since the boycotts
of the 1980s.

“The Chinese leadership
has a major international
public relations problem on
its hands,” said David L
Shambaugh, a political scien-
tist and director of the China
policy programme at George
Washington University.

“The Chinese government
and citizenry are now
involved in fighting a propa-
ganda war with the West and
the Western media in particu-
lar. This stance, taken togeth-
er with hyper Chinese nation-
alism, has all the makings of a
public relations disaster for
the Olympic Games.”

There’s a rancorous atmos-
phere in Beijing these days.

Deadly riots last month in
Tibet spurred anti-China
protests in London, Paris, San

‘Francisco and other cities of
the torch relay. Last-minute
rerouting of some legs creat-

ed a farce. In Pakistan, India
and elsewhere, organizers
shortened routes, tightened
security, and turned the relay
into invitation-only events
that kept out the general pub-
lic.

The coverage of these
protests has been met with a
propaganda war by China, |
accusing the Western media
of orchestrated bias — partic-
ularly CNN and the British
Broadcasting Corp.

There have been nasty out-
breaks of Chinese national-
ism, fueled by the attack on a
young Chinese athlete in a
wheelchair who defended the
Olympic torch at the relay in
Paris. Claiming an insult to
national pride, protesters’
have gathered outside the
French retailer Carrefour in
about a dozen Chinese cities,
with small scuffles between
Chinese and foreigners.

The Beijing Olympics were
political from the moment
China was chosen seven years
ago by the IOC. This was fol-
lowed by lavish, unprecedent-
ed spending on every phase
of the games, a strategy by
the ruling Communist Party
aimed at showcasing China’s
growing economic and politi-
cal power.

There’s still time to rescue
the games.

A tiny turnaround might
begin with several low-key
events Wednesday as organiz-
ers celebrate 100 days to go: a
mini-marathon race around
the two iconic Olympic
venues — the National Stadi-
um, known as the Bird’s Nest,
and the swimming and diving
arena dubbed the Water
Cube — and the finals of a
four-year contest to pick offi-
cial Olympic songs.

The return of the Olympic
flame to mainland China in
early May could signal that
the worst is over, with the
domestic portion of the relay
likely to have few protests —
at least that anyone will see.

The flame arrives in Hong
Kong on Wednesday. Three
pro-Tibet activists who
planned to protest in Hong

THIS JS NoTEâ„¢A

start

‘



IN THIS March 26, 2008 file photo, an activist protests witha poster against the violation of human rights in
Tibet, in Hanover, northern Germany. ~

Kong were deported after

. they arrived at its airport

Tuesday. On Saturday, three
Danish human rights activists
also were detained and
deported.

Despite security clamp-
downs and tightened visa
restrictions to keep out trou-
blesome foreigners, disrup-
tions still could occur during
the torch relay elsewhere in
China, particularly in Tibet or
the western region of Xin-
jiang.

Any partial boycott of the
opening ceremony — a
response to the crackdown in
Tibet — would stir more anti-
Western sentiment.

China’s offer last week to
start talks with representa-
tives of the Nobel Peace lau-
reate Dalai Lama might help
to defuse demonstrations.

English-speaking Chinese
volunteers — about 70,000
are expected at the games —
may also soften the edge once
the games begin. At test
venues, they’ve swarmed for-
eign reporters, helping with
translation, or simply stood at
attention wearing yellow, smi-
ley-face buttons.

A draconian plan to shut
down heavy industries and
halt construction has been
announced to temporarily rid

Beijing of its air pollution,
which had been the most
menacing problem for the
games until the Tibet rioting.

“I believe the image of Chi-
na’s Olympics is still good,”
said Jin Yuanpu, a political
scientist and executive direc-
tor of the Humanistic
Olympic Center at Renmin
University in Beijing. “It’s
just the Western media and
some Westerners who are
taking this opportunity to
attack us. Chinese are trying
their best to be a good host.”

Of course, potential flash-
points loom.

During the games, protests
of Chinese policies in Tibet
and Darfur could attract wide
coverage by 30,000 journal-
ists, testing government toler-
ance. Spared so far, high-pro-
file Olympic sponsors such as
Coca-Cola and General Elec-
tric could be dragged in.

“If someone unfurls a Tibet
banner in the crowd, it will be
recorded on TV or by a
mobile phone even if the
police move in fairly quickly,’
said Brian Bridges, a political
scientist at Hong Kong’s
Lingnan University.

China and the IOC have
always said the games are
about sports, not politics. At
a news conference earlier this

>

(AP Photo/Kai-Uwe Knoth, File)

month with top-ranking IOC
officials, however; the first
comment from Wang Wei,
the executive vice president
and general secretary of the
Beijing organizing committee,
was a long defense of China’s
Tibet policy.

Wang sat beside Hein Ver-
bruggen, and his comments
came as the Dutch IOC mem-
ber gave an impassioned
defense of the IOC, saying it’s
a sporting body that should
avoid political issues.

“There is a very thick, fat
red line between the two,”
Verbruggen said of politics
and sports.

At several sports venues
during test events, politics
were on the table. A 180-page
government-published book
in English was available to
reporters explaining Chinese
foreign policy, defense policy,
religious freedom and human
rights.

A year ago, a state-pub-
lished magazine wrote that
“Chinese security experts
expect no serious problems”
for the Olympics.

Now, government officials
are warning that terrorism is
the biggest threat to the
games, and they’ve been
promised cooperation from
Interpol to thwart any attack.

Thousands
cheer torch
through
Vietnam's
largest city

@ By CHRIS BRUMMITT
Associated Press Writer

HO CHI MINH CITY,
Vietnam (AP) — Thousands
cheered the Olympic torch
through Vietnam’s largest city
Tuesday, ending to the inter-
national leg of the flame’s
relay after weeks of protests
and disruptions by anti-China
activists.

The torch now will be taken
to the Chinese territories of
Hong. Kong and Macau and
then the mainland, including
restive Tibet and the summit
of Mount Everest, and finally
to the Games themselves in
Beijing in August.

The relay got off to a shaky
start in Ho Chi Minh City
after the flame went out less
than 700 feet from the start
outside the city’s 19th century
opera house, but Olympic offi-

‘ cials reignited it after several

minutes.

Chinese citizens, mostly
those working or studying in
Vietnam, were the loudest
among the crowds in this
southern city, which was once
known as Saigon. Waving
huge red flags, they chanted
“Beijing! China!” repeatedly
as if they were at a soccer
match. -

“Seeing this makes me so
happy,” said Emily Chen, a
Chinese worker at a Nike fac-
tory in Vietnam. “More power
to China!”

Vietnam had assured its
communist ally and giant
northern neighbor it would
not allow demonstrators to
disrupt the parade, but several
demonstrators staged a brief
rally earlier in the capital.

They were detained after
unfurling an anti-China ban-
ner and shouting “Boycott the
Beijing Olympics” in a market
in Hanoi, two witnesses said
on condition of anonymity
because they were afraid of
getting into trouble with
authorities. Police declined
comment.

The torch relay has been
disrupted by protests or con-
ducted under extremely heavy
security since it left Greece on
March 24, turning an event
that should have built up
excitement for the Games into
something of a public relations
disaster for the hosts.

The protests have mostly
been in response to China’s
crackdown last month on anti-
government riots in Tibet and
to more general concerns over
human rights issues in China.

China and Vietnam fought a
border war in 1979, but ties
have improved in recent years.

“T don’t know about the
protests in other countries, but
as far as Vietnam is con-
cerned, we are happy to wel-
come this torch,” said Vu Thi
Van, a 61-year-old woman
who was carrying an Olympic
flag.

Scores of Western tourists
along with ordinary Viet-
namese, some with children
on their shoulders, jostled to
get a view of the torch as,it
was carried past famous land-
marks, including the Rex
Hotel, where many U.S. mili-
tary officers stayed during the
Vietnam War.

“The protests have been
mistaken,” said Nguyen Manh
Hung, an economics student.
“Sport should bring people
together.”

The torch arrived in Viet-
nam from North Korea, where
tens of thousands of citizens
were mobilized to celebrate
the relay in Pyongyang in the
flame’s first visit to the
authoritarian nation.

Even though the flame will
soon be on Chinese soil, there
are no guarantees of an easy
ride.

On Tuesday, three pro-
Tibet activists who planned to
protest during the Hong Kong
leg of the torch relay were
stopped on arrival at the terri-
tory’s airport and deported,
said Lhadon Tethong of Stu-
dents fora Free Tibet.

Hong Kong Immigration
Department spokeswoman Ho
Tse Bing-yee declined com-
ment.

Disruptions also could occur
during the torch relay in main-
land China, particularly in
Tibet or the western region of
Xinjiang.



TRIBUNE SPORTS

WEDNESDAY, APRIL 30, 2008, PAGE 17



ia eM aa ALORS ol ae ee a

5

mane
Magic get
OB COS AT



for second
round

@ By TRAVIS REED
Associated Press
Writer

ORLANDO, Florida
(AP) — Orlando Magic
coach Stan Van Gundy
doesn’t want his players to
see or hear him for two days.
After all, they deserve it.

The Magic were getting
rested up for the second
round Tuesday as the rest of
the Eastern Conference con-
tinued to slog through the
first round. Orlando
wrapped up its series against
the Toronto Raptors 4-1
after a 102-92 home win
Monday.

“All I want them to do the
next two days is enjoy it,”
“Van Gundy said. “And then
on Thursday I’ll go back to
being myself again and we’ll
start getting ready. But for
the next two days I want
them to enjoy it. I don’t
want them to have to see
me. I won’t yell at anybody
about anything. They can
just have some fun.”

Orlando already looked °

like it was having plenty on
the court. Dwight Howard
was even better than in the
regular season, if that’s pos-
sible. He had 19 points and
12 rebounds in Game 3 and
19 points, 16 rebounds and a
franchise-record eight blocks
in Game 4.

Those were the off-days.-

Howard had at least 20
points and 20 rebounds in
each of the other three
games, the first player since
Wilt Chamberlain in the
1972 NBA finals to accom-
plish that feat three times in
a series, according to the
Elias Sports Bureau.

Howard and'the Magic
felt they had something to
prove. Although Orlando
won 52 games, 12 more than
last season, and locked. up
the No. 3 seed in the Eastern
Conference, few considered
the Magic a legitimate con-
tender. That could change,
with the heavily favored
Boston Celtics and Detroit
Pistons struggling in sepa-
rate series that will last at
least six games.

The Magic will play the
winner of Pistons-76ers, on
several days of rest. If it’s
Philadelphia, they'll even
have home-court advantage.

The Magic rolled despite
losing the 3-point touch that
had helped carry them all
year. Orlando shot 38.6 per
cent in the regular season,
fourth-best in the league. In
five games against Toronto
they hit 32.4 per cent, includ-
ing 9-for-32 Monday night,
9-for-31 in Game 2 and 6-
for-27 in Game 3.

“Jameer and I’ve been
here, it’s been a long road
for us,” Howard said of
point guard Jameer Nelson,
who along with him was
drafted in 2004 after the
Magic finished 21-61.
“We've always been doubt-
ed, and for us to close out a
series, it feels good.”

The Magic have been try-
ing in vain for more than a
decade to return to their glo-
ry days of the 1990s, when
Shaquille O’Neal led them
to back-to-back division
championships and they
made the NBA finals in 95,
then the Eastern Conference
finals in 796.

This was the first time
Orlando advanced out of the
first round since that run 12
years ago.

“We’re happy that we
won the first round, but we
still have business to take
care of,” Nelson said.
“We’re not totally satisfied
right now. Our goal is to def-
initely win a championship,
and we’re headed in the
right direction.”

INSIGHT

For the stories

behind the news,
ie=F-Co Mp -Tfo/ 4) 4
on Mondays



“

James confiden

heading to Game

@ By TOM WITHERS
AP Sports Writer



INDEPENDENCE, Ohio (AP) —
LeBron James whistled an unrecognizable
tune — no, it wasn’t one of Jay-Z’s — as he
practiced free throws. He seemed blissfully

serene.

Staying that way will be tough. He’s got
to go at least one more round with the

Washington Wizards.

A target of taunts and physical abuse
almost since the opening tip in Game 1,
James and the Cavaliers can eliminate the
Wizards from the playoffs for the third
straight season Wednesday night.

James, who has enhanced his profession-
al resume by dispatching the Wizards on
early summer vacations, knows it won’t be
easy to end this first-round series. The Wiz-
ards are in a bind, even desperate.

“They ain’t go no choice but to be des-
perate,” said James, who is averaging 29.5
points, 8.5 rebounds and 6.5 assists in four
games. “They’re down 3-1. We need to put

them away.”

On Tuesday, James wouldn’t comment
on the latest insult from Wizards center
Brendan Haywood, who a day earlier
mocked Cleveland’s All-Star by saying,
“Awww, they’re trying to hurt me” in a
whiny voice in response to James’ asser-
tion following Game 4 that the Wizards are

out to get him.

But James stood by his remark: He does-
n’t think the Wizards can come back to win

the series.

“T just have confidence in our team,” he
said. “It has nothing to do with the Wizards.

They’re a very good team, but they’ve got to

beat us three straight games and I can’t see

that happening.”

The Wizards haven’t been eliminated on
the road since 1988, when they were
knocked out in the first round at Detroit. To
avoid a similar fate in Game 5, they'll need

to do a better job on James.



WASHINGTON Wizards’ Antawn Jamison (second from left) and Brendan Haywood (second from

right) rush in to separate Cleveland Cavaliers’ LeBron James (left) and Washington Wizards’

DeShawn Stevenson (right) in the second quarter of Game 4 of a first-round basketball playoff series,
Sunday, April 27, 2008 in Washington. Stevenson was charged with a flagrant foul on the play after
hitting James and knocking his headband off.

(AP Photo/Pablo Martinez Monsivais)

Larry Brown to coach Jordan-led Bobcats

@ By MIKE CRANSTON
AP Sports Writer

CHARLOTTE, N.C. (AP)
— Larry Brown wanted to res-
urrect his vagabond, Hall of
Fame coaching career. Michael
Jordan needed a veteran
teacher and a big hire to rescue
his sinking reputation as an
NBA executive.

The two former North Car-
olina players teamed up Tues-
day when Jordan introduced
Brown as coach of the Char-
lotte Bobcats — his ninth NBA
coaching job. Brown agreed to a
four-year contract, returning to
the state where his nomadic
coaching journey began.

“How are you going to say
no to Michael?” Brown said.
“T’ve known him a long time.
The things he stands for have
made our game better. There’s
no way I could say no to him. It
was a pretty easy decision once
my wife said yes.”

The 67-year-old Brown
replaces Sam Vincent, whom
Jordan hired last year despite
no NBA head coaching experi-
ence. Vincent, who was fired
Saturday, struggled to find con-
sistent rotations and clashed
with players in a 32-50 season.

Brown’s nine NBA teams are
three more than any other
coach — Kevin Loughery and
Lenny Wilkens each coached
SIX.
“T think ’ve coached almost
everybody in the NBA, but I’m
going to challenge everybody
to do their best,” Brown said.
“That’s what Michael is about
and that’s what I’m about.”

The Bobcats are in their
fourth year, and Brown gives
the struggling franchise instant
credibility. He’s one of only five
NBA coaches with more than
1,000 wins and the only coach to
lead teams to NBA and NCAA
titles.

“J don’t want to put too much
pressure on Larry,” Jordan said.
“But I think this is the atmos-
phere he enjoys.”

But Brown hasn’t lasted any-
where long, and has had some
ugly divorces. His last coaching
job was the disastrous 2005-06
season in New York, when the
Knicks went 23-59 and Brown
clashed with management.

His dismissal was followed by
a long dispute over how much
money he was owed for the rest
of his contract.

A deal eventually was struck
and Brown became an execu-
tive vice president with the
Philadelphia 76ers, but Brown
yearned to return to the bench.

“I was a bad coach. I did a
bad job. I learned from that,”
Brown said, referring to his time
with the Knicks. “But being out
of it in the last few years, even
though I had a title in Philly ... I



THIS October 21, 2005 file photo shows New York Knicks head coach Larry Brown gesturing during the first quar-
ter of pre-season NBA game. Brown has reached an agreement to return to the NBA as coach of the Charlotte
Bobcats, a person familiar with the decision told the Associated Press on. Monday, April 28, 2008.

just missed being around the
game. I love it. | want to be a
part of it.”

Jordan said he contacted
Brown before hiring Vincent
last spring, but Brown said he
wasn’t ready to return. He
changed his mind late this sea-
son, quitting his job in Philadel-
phia after being interviewed for
the Stanford opening.

Shortly after the Bobcats
fired Vincent on Saturday, Jor-
dan called Brown again. The
Bobcats job was more appealing
and didn’t entail a cross-country
move from Philadelphia.
Brown’s mother lives in Char-
lotte and he has other relatives

there.

“I’m from California, but we
just moved in September,” said
Brown’s wife, Shelly. “Selfishly,
I would not be ready to up and
move to another coast. I think
here Larry is surrounded by a
lot of great guys with the same
value system, same character.
And they all want to win.”

Brown was a point guard at
North Carolina under Dean
Smith, decades before Jordan
led the school to a national title
under the same coach. Brown’s
coaching career took root in this
state. He was hired to coach
Davidson, only to resign a
month later without a coaching

(AP Photo/LM Otero, File)

a game. He then went on to
coach the ABA’s Carolina
Cougars.

While Brown took UCLA to
the Final Four and won an
NCAA title with Kansas, most
of his experience has been in
the NBA. Brown improved
teams in Denver, San Antonio,
Indiana and Philadelphia and
won an NBA title with the
Detroit Pistons in 2004.

“I’m very excited, of course,”
Bobcats point guard and for-
mer Tar Heel Raymond Felton
said. “Carolina guy. He loves
his point guards, for one. And
on top of that he’s a great
coach. He’s going to come in

Celtics,
Hawks
escape
(liscipline
for Game 4
Skirmish

By JIMMY GOLEN
AP Sports Writer

WALTHAM, Mass. (AP) —
Boston Celtics coach Doc
Rivers remembers being in a
couple of fights in his playing
days, so he understands what’
was going through Kevin Gar-
nett’s mind when he pushed off
from a referee who was trying
to make peace. .

“Right afterward, I felt like
a dunce,” Rivers said. “At. the
time, though, there was noth-
ing in me that didn’t feel like it
was the right thing to do.”

The rough-and-tumble play-
off series between the Celtics

‘and Hawks returns to Boston

for a fifth game on Wednesday
night, with both teams getting
good news from the league after
practice on Tuesday. NBA
spokesman Tim Frank said
there would be no fines or sus-
pensions for a Game 4 alterca-
tion that resulted in double
technicals to each side.

“The game’s emotional for
everyone,” Rivers said after the
team’s workout but before the
league’s decision was
announced. “It’s easy to say,
*Just step away.’ We, as a team,
have to stop putting the league
in a position where they have
to make a decision. That’s on
us; that’s not on the league.”

The incident in the second
quarter of Atlanta’s 97-92 vic-
tory on Monday night began
when Garnett cleared out Zaza
Pachulia with an elbow, and the
Hawks forward went foréhead-
to-forehead with the Celtics
star.

Referee Ed Rush grabbed
Garnett, but he, too, got a push
as Garnett struggled to break
free. “The referee grabbed me,”
Garnett said.. .

“In the heat of the battle like
that, you never know what’s
going on,” said Hawks forward
Marvin Williams, who also
escaped discipline. “You never
know who’s grabbing you. ’m
sure he had no intention of
hurting anybody. He just plays
hard. It got pretty emotional
out there.”

Williams and Celtics center
Kendrick Perkins both admit-
ted stepping onto the floor to
see what was happening — a
no-no in the NBA, especially
with commissioner David Stern
in the crowd. But they were not
punished under the rule
designed to keep incidents from
escalating into bench-clearing
brawls.

“Technically, I broke the
rule,” Williams said. “But I had
no intentions of doing anything
on the court. I was just trying to
see what was going on.”

Said Perkins: “I didn’t real-
ize it until I watched the tape.”

. every day and he’s going to try

to get us better. I’m definitely
looking forward to this experi-
ence.”

Brown, who was inducted
into the Hall of Fame in 2002,
will now try to get the Jason
Richardson-led Bobcats into the
playoffs and help Jordan taste
success for the first time in two
stints running NBA teams.

While Jordan won six NBA
titles with the Chicago Bulls,
he’s made several questionable
moves in the front office.

Vincent’s ouster marked the
second time a coach Jordan
hired lasted only one season.
Leonard Hamilton resigned
after going 19-63 with the
Washington Wizards in 2000-
01.

Jordan was fired by the Wiz-
ards. He bought a minority
stake in the Bobcats in 2006 and
took over the decision-making
from Bernie Bickerstaff. When
Bickerstaff moved to the front
office after three seasons on the
bench, Jordan replaced him
with Vincent.

“I told Michael, *?’'m not com-
ing here unless I know you're
fully committed,’ Brown said.
“He told me that last year and
he told me it again. You know
how competitive he is. He wants
to win. I can get to him at any-
time, and he’s surrounded him-
self with people that I really
respect and like.” :



PAGE 18, WEDNESDAY, APRIL 30, 2008



| WEDNESDAY EVENING APRIL 30, 2008

7:30






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THE TRIBUNE.















































lL et Charlie the
Bahamian Puppet and ,
his sidekick Derek out a

some smiles on your :

kids’s faces.








| Bring your children to the
Mctlappy Hour at McDonald 's in
Malborough Street every Thursday
from 3:30pm to 4:30pm d uring the
month of April 9008. |
















Enjoy Great Food, Prizes and Lots of Fun.

{T\

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THE TRIBUNE

WEDNESDAY, APRIL 30, 2008, PAGE 19



INTERNATIONAL NEWS

Nearly 200 opposition supporters
in Zimbabwe are released by police



Tsvangirayi Mukwazhi/AP

ws

WOMEN AND children from Nyamapanda about 300 kilometres north of Harare, attend a press conference in
Harare, Tuesday, April, 29, 2008. The women who are opposition party supporters spoke of how they had
their homes burnt by suspected Zanu PF supporters after they were accused of voting against President
Robert Mugabe in the March 29 election. Cases of political violence are on the rise in Zimbabwe in the after-
~ math of the election which saw Zanu PF loosing its majority in parliament and with results of the Presidential

polls still to be announced exactly a. month after voting.
“my FAMGUARD
* 3) CORPORATION LIMITED






Vee Mi ACaliGa STRENGTH & SECURITY








INSURANCE COMPANY LIMITED

i FAMILY GUARDIAN

forward, onward

With over 40 years of expertise, stability and financial Bahama *Elealth
strength, we’re proud to be the choice of Bahamians a
navigating their way through life. Whether you’ve just
started your journey or you're already on your way,
we can help you chart your course for financial
security. For life, for health and for wealth.
Call 396.4000 or log onto www.famguardbahamas.com.

BROKERAGE & ADVISORY SERVICES

ee FG CAPITAL MARKETS

KJ £G FINANCIAL
GG) PENSIONS & INVESTMENTS

© 2008 ADWORKS

@ HARARE, Zimbabwe

POLICE on Tuesday
released nearly 200 people who
were arrested last week in a raid
at opposition headquarters,
while President Bush called on
Zimbabwe’s neighbors to step
up the pressure on longtime
leader Robert Mugabe, accord-
ing to Associated Press.

Many of the 215 people
arrested on Friday had fled to
Harare to escape mounting vio-

lence and intimidation in rural .

areas that used to be ruling par-
ty strongholds but turned
against Mugabe in the March
29 elections.

Twenty-nine people, mainly
women and children, were
released almost immediately.
The rest were freed from vari-
ous police stations in the capital
Tuesday in accordance with a
High Court order issued Mon-
day, opposition defense lawyer
Alec Muchadehama said.

One month after the vote,
results from the presidential

A ch i





election still have not been
released.

Independent observers say
that opposition leader Morgan
Tsvangirai defeated Mugabe,
but did not secure an outright

“majority necessary to avoid a

runoff. Tsvangirai insists he did,

_ while Mugabe has stayed silent.

Nations

Bush said at a news confer-
ence Tuesday that “it’s really
incumbent on the nations in the
neighborhood to step up and
lead.” He stopped:short of say-
ing that Mugabe had lost the
election, but added that it was
clear that the country had voted
for change.

However, Tendai Biti, the
second-in-command in Tsvan-
girai’s opposition party, said
Tuesday he hoped the United
Nations would send a special
envoy to Zimbabwe to assess
the situation and help solve the
crisis.



“It is unacceptable, the abuse
of human rights, the killings that
are going on at the present
moment,” Biti, secretary-gen-
eral of the Movement for
Democratic Change, said in an
interview with Associated Press
Television News. “It is unac-
ceptable, the use of food as a
weapon and the deliberate star-
vation of our people. And again
it is unacceptable, the deliberate
assault on democracy that is
taking place in Zimbabwe.

“Those are clearly not region-
al and sub-regional issues.
Those are U.N. issues, and the
(U.N.) Charter is very clear on
that.”

On Monday, the Zimbabwe
Electoral Commission conclud-
ed the recount of 23 disputed
parliamentary seats, the state-
run Herald newspaper reported.
The commission would there-
after “invite presidential candi-
dates or their election agents
for the verification and colla-
tion of the results,” the Herald
said Tuesday.





“2 PICTET

A



j & xy
hd ae Ww

CCC CC CCA CLT AL




TE



Cheque Presentation To
The College of The Bahamas

| Cheque presentation of BSD 30,000 to the College
| of The Bahamas Endowment Fund by Mr. Yves
| Lourdin, President/Managing Director and the
| Bank's Executive Committee.

i} Photo: (left to right) Mark Richford, Larry Glinton, Pierre Colle, Shawn
|} Forbes, Jan Mezulanik, Yves Lourdin, Felicity Humblestone - Dir. of
Development-C.0.B., Marilyn Cambridge and Eric Messmer.

ee |













PAGE 20, WEDNESDAY, APRIL 30, 2008 THE TRIBUNE |
:

“£0 PICTET

1805

1978 - 2008
Celebrating 30 years in The Bahamas



Date of incorporation: April 27, 1978 License date: May 24, 1978

We would like to say THANK YOU to
ALL of our valuable employees






1

Pictet Bank & Trust Limited
_ Bayside Executive Park
Building No. 1
West Bay Street and Blake Road
P.O. Box N-4837
Nassau, Bahamas
Tel. (+1 242) 302-2222
Fax (+1 242) 327-6610
www.pictet.com



Geneva Lausanne Zurich London Luxembourg Frankfurt Paris Madrid Barcelona Turin Milan
Rome Florence Dubai Singapore Hong Kong Tokyo Montreal Nassau °







CFAL to
kickstart
Global
Bond
Fund
President says he

would have liked
$10m initial foreign

currency allocation

from Central Bank
to give funds
‘critical mass’
and defray costs

@ By NEIL HARTNELL
Tribune Business Editor

CFAL yesterday said it will
use the $1.89 million in foreign
currency allocated to it by the
Central Bank to kick-start its
CFAL Global Bond Fund, the
company’s president adding
that he would have liked to the
regulator to provide at least
$10 million upfront to give its
international investment funds
critical mass.

Anthony Ferguson, the
Bahamian investment advisory
firm’s president, said it was
__placing_all its 2008 first quarter

~ foreign currency allocation into
the CFAL Global Bond Fund
to get that up and running,
having used its previous allot-
ments to start the CFAL Glob-
al Equity Fund.

Describing reaction to
CFAL’s international invest-
ment funds, which also include
the CFAL High Grade Bond
Fund as “pretty good”, with “a
lot of people having interest”,
Mr Ferguson said the compa-
ny’s strategy now was to estab-
lish the CFAL Global Bond
Fund.

SEE page 5B

Bahamas gives 16.7
per cent profit rise
for Butterfield

@ By NEIL HARTNELL
Tribune Business Editor

BUTTERFIELD Bank’s
Bahamian operations saw their
2008 first quarter net income
increase by 16.7 per cent to
$0.7 million, compared to $0.6
million the year before, with
revenues ahead 15.5 per cent
year-on-year.

Announcing its results for
the three months to March 31,
2008, the Bermuda-headquar-
tered bank said the increase in

Drive a Honda Fit and get up to
40 miles per gallon



WEDNESDAY,



‘Seaman

APRIL. 3:0,



2008

SECTION B + business@tribunemedianct



‘Mind boggling’ internal theft
could cost food stores $25m_

@ By NEIL HARTNELL
Tribune Business Editor

nternal -theft | J
- causes Bahamian
businesses “mind |
boggling” losses |
every year, the |
Bahamas Chamber of
Commerce’s president |
told The Tribune yes-
terday, estimating that
this combined with
shrinkage could cost
food stores in this nation
a combined $25 million every year.

Dionisio D’Aguilar, who is also

eat

D’Aguilar



Superwash’s president, said assuming
that, on average, 5 per cent of invento-
ry was lost to pilferage and shrinkage,

and total food sales in the Bahamas

were $500 million per annum, then the
value of products lost in this sector alone
came up to $25 million.

“You do the maths. Just in that indus-
try alone, it’s mind-boggling,” Mr
D’ Aguilar said of internal theft losses in

the Bahamas, and their impact on’

Bahamian businesses.

“Internal theft is enormous. In busi-
nesses with many moving parts, like
food stores, it’s very hard to control,
‘with employees or customers. You get
hit in so many different directions.”

Bahamas Supermarkets, parent com-
pany of City Markets, said last week
that a $4 million investment in retail

infrastructure and information technol-
ogy (IT) was intended to curb food pil-

ferage that contributed to rising food |

prices.’

The company added that the new
technology had been able to detect a
number of irregularities that led to the
arrest of several employees.

Internal theft by employees adds fur-
ther to the cost of goods at a time when
consumer prices are already soaring due

‘to energy and food hikes, and the
_Chamber president said: “Internal theft
is a significant cost to many, many busi-
nesses in this country. There’s a sense of
frustration within the business commu-

nity that very little gets done on the

white collar crime front.”

Many Bahamian companies, Mr
D’ Aguilar said, “wrote off” losses
caused by employee theft and “moved
on”, adding that seemingly “significant
sums of money” needed to be involved
in an offence to get the Royal Bahamas
Police Force, and its Commercial
Crimes Unit, “interested”.

With very few cases involving internal
theft and dishonest employees being
prosecuted and making it to court, Mr
D’ Aguilar said the lack of will to tackle
the issue was noted by criminals, who
felt they could get away with offences
time and again.

Many employers felt it was “not worth
it” to prosecute employees for stealing,
given the time and money consumed by
cases that went nowhere.

Mr D’ ihciias told The Tribune: “I’m

sure white collar crime is under-report-~

ed. Internal theft is a significant cost,
there’s no doubt about it. The solution
to the problem is that you have to do it
yourself. You can’t rely on the; state,
you can’t rely on the police, and you

can’t rely on the judicial system to do it ;

for you. You have to be proactive and
do it yourself.”. :

The Chamber president warned
Bahamian companies that with the
economy facing a downturn, sparked
by a decline in tourist arrivals and for-
eign direct investment resulting from
the US and global economic woes, and
Bahamians likely to.experience reduced
incomes and job losses, internal theft
and armed robberies were likely to

- increase. Rising food and energy costs
were also likely to prompt some employ-

ees into stealing.

“The percentage of the population
that has to,steal to make a living increas-
es when less people are employed and

‘they have less money,” Mr D’Aguilar

said. “To make ends meet and meet
their commitments, they think they have
to steal.”

When it came to armed robberies, Mr
D’ Aguilar urged business owners to
vary their routines and not hola large
amounts of cash in the tills or on the
premises, given that “a high percent-

SEE page 5B

BORCO buyers inject $550m in equity capital

@ By NEIL HARTNELL
Tribune Business Editor

THE Bahamas Oil Refining Compa-
ny International (BORCO) Company’s
purchasers yesterday said the acquisi-
tion had been capitalised with $550 mil-
lion in equity, the deal closing after it
received all necessary government
approvals.

First Reserve Corporation, the world’s
largest private equity investor in the oil,
gas and energy industries, and its part-
ner, Dutch-based oil storage operator
Vopak, said in a statement issued yes-
terday that BORCO’s equity value post-
acquisition would be $550 million.

The Grand Bahama-based oil stor-
age facility’s ownership will now be split

year-on-year revenues to $3.1
million at its Bahamian opera-
tions reflected “strong growth
in net interest income and fees
earned from trust services”.

At quarter-end, Butterfield-
’s total Bahamian assets stood
at $188 million, compared to
$170 million a year ago.

The Bahamian group’s loan
portfolio was said to have
more than doubled in one
year, growing by 104.3 per cent
at 2008 first quarter-end com-
pared to the same period last
year.

The expanding Bahamian
business had also contributed
to an increase in staffing levels.

The company’s Bahamian

SEE page 5B

Correction

IN a front page story in 7ri-
bune Business on Monday,
April 28, about the Govern-
ment formalising a partnership
with the Massachusetts Insti-
tute of Technology (MIT) to
construct a framework for sus-
tainable development planning
throughout the Bahamas, it
was reported that a thesis
paper on this issue was pub-
lished by Dr Alia Sabur, an
MIT graduate.

This is not correct. The true
author is Nakeischea Loi, Mas-
ter of City Planning (MCP).
Tribune Business apologises
for the error.

$900m purchase of Grand Bahama-based oil

storage terminal closes with all government
approvals received, and ownership split
80/20 between First Reserve and Vopak

80/20 between affiliates of First
Reserve’s Fund XI and Vopak, with the
former having the majority.

Although the purchase price has nev-
er been disclosed, Carl Bethel, minis-
ter of education, youth and sports, said
in the House of Assembly last week that
the deal was worth $900 million, and
would produce $40 million in Stamp
Tax for the Government.

Mr Bethel added that First Reserve
and Vopak were proposing to invest
between $300-$600 million in upgrad-
ing BORCO, with the Dutch company
acting as the management/operational
partner.

BORCO will be renamed Vopak Ter-

SEE page 4B

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dividends re?

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acquiring for the

ROYAL @ FIDELITY

Money at Work

NASSAU OFFICE

(242) 356-9801

FREEPORT OFFICE
(242) 351-3010

95% of road

project land

| OWhers now
identified

@ By NEIL HARTNELL
Tribune Business Editor

SOME 95 per
cent of
landowners §
whose property |
the Government
is compulsorily

upcoming New
Providence
Road Improve-
ment Project
have been identified, the min-
ister of works and transport
told The Tribune, with
appraisals and valuations
already carried out.

Dr Earl Deveaux said:
“Ninety-five per cent of the
claimants from the land acqui-
sitions have been identified
and contacted. The vetting

Deveaux



‘process for arrival at the

exchange of title is now near

* completion.....

“The valuations have been
done. The remaining 5 per cent
is where there is dispute on the
ownership, one person claim-
ing and the documents show-
ing something different. Usu-
ally, the amount [paid for the
land] is escrowed until owner-
ship is 100 per cent deter-
mined.”

The Government has had to
acquire some 446 parcels of ©
private property to facilitate
the project, which is viewed as
critical to reducing - at least in
the short-term - New Provi-
dence’s chronic road conges-
tion and traffic flow issues,
especially at peak hours.

An Inter-American Bank
(IDB) paper on the road
improvement project said
progress with the land valua-
tions/real estate appraisals for
the acquired properties, plus
the re-establishment of legal
boundaries and compensation

SEE page 2B

i,
A
2
&
&
Te
®

Royal Fidelity Brokerage Accounts

royalfidelity.com
info@royalfidelity.com

ROYAL @ FIDELITY

Money at Work

Nassau: 356.9801 ¢ Freeport: 351.3010





PAGE 2B, WEDNESDAY, APRIL 30, 2008

THE TRIBUNE



ee ee
Ninety five per cent of road project

land owners now identified

FROM page 1B

payments, had not yet been
completed.

When it came to the total
amount the Government was
likely to pay in compensation

BAHAMAS —

| perms .

to the property owners, Dr
Deveaux told The Tribune:
“We have a figure, but usually
the process is determined at
arm’s length.

“The evaluation is done, and
the landowner is given the
option of accepting that valua-
tion, which is based on market

i”



MANAGER TRAINEES/FUTURE LEADERS

Bahamas Supermarkets Limited operates a leading super-

value. If they reject that, they
have the option of going to
court.”

Dr Deveaux said the process
worked in exactly the same
way as that for the land com-
pulsorily acquired to facilitate
the south-west Bay Street road
re-routing for the $1.3 billion
Albany project.

Offered

There, landowners had been
offered a valuation some 33
per cent more than the higher
of two independent appraisals
that were done. To date, some
have accepted the valuations,
while others have not.

On the IDB report identify-

’ ing that some 200 Bahamas

Electricity Corporation (BEC)
remained to be moved to make

Road Improvement Project
(NPRIP), Dr Deveaux said the
work needed to be effected for
this had been incorporated in
the project’s financial projec-
tions so they would not “serve
as an impediment” to its
progress.

The Government is under-
stood to be in the final stages
of negotiating an IDB loan to
finance the road improvement
project, which when originally
conceived in the late 1990s,
was estimated to cost just over
$52 million.

Now, it has been projected
to cost at least $131 million,
Dr Deveaux acknowledging
that delays impacting the pro-
ject could cost the Bahamas an
extra $70-$100 million.

“We’ve lost many opportu-
nities in the meantime, and

market chain in The Bahamas. As a market leader, the
Company prides itself on delivering premier service through its
City Market supermarkets, having a strong commitment to its
customers, associates and community.

An opportunity for Management Trainees (Future Leaders)
exists in New Providence and Grand Bahama to join this
market leader.

Reporting to the Head of Retail Operations, the successful
applicants will;
¢ Be self-motivated and highly energetic.
Have effective supervisory skills
* Be highly flexible and mobile and prepared to work
evenings, weekends and holidays
Have a clean police record, drivers license, good
character references and be physically fit
¢ Have a university degree or currently in final year
¢.Have good communication (verbal and written) and
interpersonal skills
° Be numerate and analytical with the ability to
derive information from financial reports
¢ Be a strong problem solver :
¢ Have the ability to multi task
¢ Solid functional computer skills with working
knowledge of Microsoft applications

Salary and benefits will be commensurate with experience and
qualifications.

If you have what it takes to succeed in this challenging role,
forward your resume and cover letter to:

Human Resources
Bahamas Supermarkets Limited
East-West Highway « P. 0. Box N 3738 + Nassau, Batiamas
Or e-mail to: humanresources@bahamassupermarkets.com

No telephone inquiries please

City Markt



Malek aide delict a eAhenea LLM Ge

Client Accounting Department

A reputable financial institution headquartered in Bermuda, with offices in
The Bahamas, Barbados, the Cayman Islands, Guernsey, Switzerland,
Hong Kong, Malta and the United Kingdom, Butterfield Private Bank
offers a wide range of services to local and international clients.






















An exciting opportunity currently exists for a results oriented self starter
with a record of professional achievements to join our dynamic Client
Accounting team.





Core Responsibilities °

"Manage the client accounting department
® Review of Financial Statements
§ Preparation of monthly reports for senior management

"Ensure the implementation of standard practices relating to all
i accounting matters

"Ensure full awareness of and adherence to all applicable laws,
regulations, bank policies and procedures

" Provide training to client accounting staff

Desired Qualifications

® At least five (5) years experience in the Trust Industry

® Professional Designation of ‘CA, CPA or relevant experience
"Excellent working knowledge of accountancy

"Client driven background, including good understanding of deadlines

| ® Proficient in Microsoft Office suite of products

management and customer service skills

Closing Date: May 7, 2008

Contact

Human Resources

Butterfield Bank (Bahamas) Limited
P.O. Box N-3242

Nassau, Bahamas

Fax: (242) 393 3772

E-mail: recruitment@ butterfieldbank.bs

www.butterfieldbank.bs

te

|
® Strong interpersonal, communication, problem solving, project
j
{
|
}

Butterfield Private Bank _

way for the New Providence incurred many more chal-

WANTED

The position of Island Manager for Nassau is
open. A brief summary of the position is described
below. If you are interested in applying please
provide, by mailing to P.O. Box EE-15043 or call
424-0633, please include in the application a
detailed description of how you are qualified for
the position.






















- Management oversight of all activities in the
Nassau operation; administration and sales areas.

- Responsible for the a aa and growth of the
market.

- Focus on team and staff development

- Cost analysis and cost control

| - Ensure compliance with all ISPS, Super carrier

and local security initiatives




Minimum Requirements

* Bachelor’s Degree (or higher) in the maritime
field

¢ At least 5 years of management experience in
the shipping industry

¢ Excellent interpersonal, analytical,

organizational, and customer service skills

3h UBS

UBS (Bahamas) Ltd. is one of the world's leading financial
institutions in the Caribbean, Through our Business Area Wealth
Management we look after wealthy private clients by providing
them with comprehensive, value enhancing services. Our client
advisors combine strong personal relationships with the
resources that are available from across UBS, helping them
provide a full range of wealth management services.

In order to strengthen our IT team in Nassau, we are looking for
the following position:

IT Systems Engineer

in this challenging position you will be responsible for:

The deployment and management of business critical solutions.
You will be expected to be a self-starter, time oriented
individual with project management and documentation skills,
strong technical background, sound writing and
communications, as well as organizational skills and the ability
to work with local and international team members.

Minimum Requirements
« At least 4 years relevant networking. experience working in a
~ medium to large scale environment.
» B.S.C.LS., Computer Engineering or related field
* Strong proficiency and expertise in;
« Server management
» WAN/LAN
« Microsoft Exchange server / BBS
® Remote support
« Desktop and user support
* Routers, switches, fire walls, NAS, SAN
Cisco Certified Network Associate
UNIX operating system background
Proficient in Data Centre management and Server
deployment
Proficiency in: Networking (Server 2003, Windows 2000),
Desktop software, Security, Microsoft products (Office
Exchange)

Written applications should be addressed to:

UBS (Bahamas) Ltd.
Human Resources
P.O. Box N-7757
Nassau, Bahamas

hrbahamas@ubs.com or



lenges, but we think it’ll help
us deal more effectively in the
long-run with other projects in
the Bahamas,” Dr Deveaux
said of the experience.

Road

The New Providence Road
Improvement Project (NPRIP)
ran into problems back in 2001
when the chosen contractor,
Associated Asphalt, went
bankrupt.

Then, when the project was
put out to re-bid, only one
company met the IDB’s quali-

fications.

The bank is unable to lend
to projects where there is only
one bidder, so the former
Christie government instead
broke the project up into
smaller components that could
be handled by Bahamian con-
tractors.

Three of these smaller pro-
jects were completed, and now
after a competitive tendering
process, Argentine construc-
tion firm Jose Cartellone Con-
strucciones Civiles (JCC) was
selected as the lowest bidder
with an $88 million offer.

fe

Legal Notice

NOTICE

BERGERONETTE LIMITED

(In Voluntary Liquidation)

Notice is hereby given that the above-named
Company is in dissolution, which commenced on the
3rd day of March 2008. The Liquidator is Argosa
Corp. Inc., P.O. Box N-7757 Nassau, Bahamas.

ARGOSA CORP. INC.
(Liquidator)

Legal Notice

NOTICE

FORTUNE VALLEY INC.

(In Voluntary Liquidation)

Notice is hereby. given that the above-named
Company is in dissolution, which commenced on the
12th day of March 2008. The Liquidator is Argosa
Corp. Inc., P.O. Box N-7757 Nassau, Bahamas.

ARGOSA CORP. INC.
(Liquidator)

NOTICE

IN THE ESTATE OF FREDERICK
GEORGE HERMAN YOUNG, Late of
The Cottage Estate, Little Exuma,

Bahamas.

‘

NOTICE is hereby given that all persons having
any claim or demand against the above Estate
are required to send the same duly certified in
writing to the undersigned before the Closing
Date after which the Trustee will proceed to
distribute the assets having regard only to the
claims of which he shall then have had notice.
Beneficiaries are to forward by fax or email the

following information:
1) Name of beneficiary.

2) The beneficiary’s Fractional Share.

3) The amount.of Legal Expenses incurred in
obtaining Order For Sale.

4) Where the beneficiary is not a party named in
the Second Schedule of the 1967 Settlement, a
probate document (resealed if foreign) and

photocopy of passport.

5) Payment instructions.

The Trustee reserves the right to reject any claim
made after the 9" June, 2008 Closing Date.

The Trustee of The Cottage Estate,

Little Exuma

c/o JOSEPH C. LEDEE

"Chambers

Suite No. 6, Grosvenor Close

Shirley Street

P. O. Box N-8887
Nassau, Bahamas.

Telephone/Fax No. 1-242-325-3758
Email: j.ledee@yahoo.com





Bazaar owners in

BUSINESS

dark on Royal
Oasis plans

@ By CARA BRENNEN-
BETHEL
Tribune Business
Reporter

STORE owners. in
Freeport’s International
Bazaar are desperately wait-
ing for Harcourt Develop-
gents to announce its plans
for restoring the Royal Oasis
resort and injecting some eco-
nomic life into the depressed
area. .

Speaking with Tribune Busi-
ness yesterday, a source close
to the Bazaar’s Owners Asso-
ciation said the current state
of Grand Bahama’s economy
was “horrible”.

The source said the percep-
tion among Freeport business
owners was that it will be “at
least another two years” before
they begin to see a turnaround
in the economy as a result of
Harcourt’s $33 million Royal
Oasis purchase. “Things are
getting worse here, and it has
nothing to do with politics. Its
been horrible and people are
crying every day,” the source
added, saying Bahamian-

owned businesses in the

_Bazaar were continuing to

close, with complaints made to
the Association on a regular
basis.

The Royal Oasis property
is inclusive of a Towers, Coun-
try Club and Casino. The prop-
erty had 965 rooms and 98
timeshare units, but was shut in

‘September 2004 after Hurri-

cane Frances, forcing the lay
off of some 1,300 employees.

The property represented
one-third of Grand Bahama's
hotel room inventory, and was
also considered to be the main
economic lifeline for business
in the Bazaar. Just recently at
the Grand Bahama Business
Outlook, it was announced
that Foxwoods Development
Company had signed an agree-
ment with Harcourt Develop-
ments (Bahamas) to manage
the redeveloped resort.

It was hoped: that with the
Royal Oasis revitalisation and
the proposed billion dollar plus
Ginn Development pegged for
West End, Grand Bahama’s
struggling economy could be
turned around.

on av uilable at
prestigious private island fescit | in the Bahamas. Minimum

of 5 years of professional experience in U.S./Caribbean

resorts/ private clubs. Qualifications should include experi-
ence with power plants, reverse osmosis water generation
systems and general construction skills and management.

Excellent benefits package based on experience level,
including housing.
Interested persons should fax resume to 242-347-5004
or email to tstewart@catcayyachtclub.com

Br] Lots

For Sale

JCMOATINSY a

Fully furnished ROOMS, APARTMENT S

& Houses wanted for Short term stays

in the Bahamas Home Away From Home

., Preeram.

Contact Ms, Allen @ Stop-N-Shop Online

394-4949 or e-mail ;

Bahamas. HomeAwayFromHome@gmail.com

The Registrar General’s
Department

to inform
that its
in Annex
at the

Wish
public
located
and ‘B’



the |
offices |
eA?
Hilton |

Hotel will be relocating to |
Apsley House at #75]
Frederick Street next to}

- ee retell tat sree tel
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.













erie
ys ay
ORCS
ec 1o3: Bc 2} 0
Les Banos

Vacancy for the OTOL he

MANAGER, CREDIT RISK

Core responsibilities:

° Develop/promote/support, on an ongoing basis, improvements
to credit processes/procedures which will ensure the delivery
of the most cost-effective and efficient services to customers
without compromising effective management of risk.
Ensure compliance with the Bank’s credit policies and
procedures.

Adjudicate Credit Proposals within delegated authority.
Adjudicate/recommend and present Credit Proposals in
excess of delegated authority to appropriate Credit Committee.
Remain current on macroeconomic factors within the local
economy and their potential effects on the Banking Industry
in general and any specific Bank customer business. |
Ensure that the Bank’s delinquency and non-performing
ratios are maintained within the established guidelines.
Monitor quality of Bank’s asset portfolio via relevant
reports.
Oversee the conduct of reviews of the Credit Portfolio to
ensure that the integrity is being maintained.

. Assist in the development of training courses for Consumer
and Commercial Lending Officers.
Manage the Bank’s Loan Loss Provisioning and Write Off
process.

Knowledge, Skills and Abilities:

(=
ee:
)

0

2
We
a e

¢ Bachelor’s Degree and five or more years of credit experience.
e Strong accounting and financial analysis skills.

e Strong negotiation skills.

¢ Detailed knowledge of Credit and Collections.

¢ Core knowledge of legal practices and documentation.

Benefits include: Competitive salary commensurate with
experience and qualifications; Group Medical (includes dental
and vision) and life insurance; pension scheme.

Interested persons should apply no later than May 2, 2098 to:

DA #62008
c/o The Tribune
P.O. Box N3207
Nassau, The Bahamas



a Sle chal Exuma :



Join the
Bahamas National Trust
agers WE celebrate the ©

Caribbean Endemic
/ Bird Festival
| ROM THE TUNDRA TO |
THE TROPICS

Saturday, May 3, 2008

Sain - 1am

(

’ a THE RETREAT...»
BN Headquarters, Viliagé(Ra. Rd.

f f ose a

This year we are parthering with International
Migratory Bird Day and celebrating the nearly
350 species; of migratory birds that travel hun-
dreds of miles in the. fall to their non-breeding
grounds in Central America, Mexico and the Car-
ibbean returning in the spring to their breeding
grounds in North. Ainerica. Literally travelling

from the TUNDRA. TO THE TROPICS.

Members of the BNT Onihoieey Group will offer
an early morning birdwalk through The Retreat
Garden and viewing of the film "Singing in the
Rainforest" which highlights a rare glimpse into
the world of a bird that fits comfortably on a
tablespoon, weighs less than half an ounce and
flies many miles in the dark twice each year. ’
These tiny warblers are losing their homes at
both ends of their migration route and this film
allows us to look at séme of the conservation

efforts that are taking* place. for wore. warblers,’ ”

*Light Refreshments after. the walk

For more information call 393: 1317.. or email
bnt@bnt.bs





St. Andrews Presbyterian |
| Kirk (Church) and across |
from the Central Bank of |
The Bahamas with effect |
fromThursday May 1 ,2008 |







PAGE 4B, WEDNESDAY, APRIL 30, 2008

THE TRIBUNE





DCA ee eR

Se Oe ar ca

i



FG CAPITAL MARKETS

BROKERAGE & ADVISORY SERVICES






>



BISX ALL SHAR






Labs 9S YEE TEASE CREE PE ES SRO



Previous Close Today's Close ~~ Change Dail Vol. EPS $ Div $ P/E “Yield






j52wk-Hi__ 52wk-Low Securi

1.95 1.10 Abaco Markets 1.95 1.95 0.00 0.135 0.000 14.3 0.00%
11.80 11.50 Bahamas Property Fund 11.80 11.80 0.00 1.086 0.400 10.9 3.39%
9.68 9.02 Bank of Bahamas 9.61 9.61 0.00 0.643 0.160 14.9 2.71%
0.99 0.85 Benchmark 0.90 0.90 0.00 0.188 0.030 4.8 3.33%
3.74 2.50 Bahamas Waste 3.50 3.50 0.00 0.289 0.090 12.1 2.57%
2.70 1.30 — Fidelity Bank 2.39 2.39 0.00 0.058 0.040 41.2 1.67%
13.80 10.41. Cable Bahamas . ; 13.70 13.80 0.10 1800 1.093 0.240 12.6 1.74%
3.15 2.10 — Colina Holdings 2.87 2.87 0.00 0.091 0.040 31.5 1.39%
8.50 4.75 | Commonwealth Bank (S1) 7.13 7.13 0.00 0.440 0.290 16.2 4.07%
7.22 3.60 Consolidated Water BDRs 4.77 4.76 | *-0.01 0.157 0.052 30.4 1.09%
3.00 2.20 Doctor's Hospital 3.00 0.00 0.316 0.040 9.5 1.33%
8.00 5.94 Famguard 8.00 0.00 0.713 0.260 11.2 3.50%
13.01 12.49. Finco 12.50 0.00 250 0.810 0.570 15.4 4.56%
14.75 13.24 FirstCaribbean 13.24 0.00 0.651 0.470 20.3 3.55%
6.10 5.05 Focol (S) §.32 0.00 0.386 0.140 13.8 2.63%
1.00 0.54 Freeport Concrete 0.55 0.00 1,000 0.035 0.000 15.7 0.00%
8.00 6.86 ICD Utilities 6.86 0.00 0.411 0.300 16.7 4.37%
12.50 8.60 J. S. Johnson 12.30 0.00 1.059 0.620 11.6 5.04%
10.00 Premier Real Estate 0.00 1.167







10.00 _



10.00

me §

52wk-Hi _52wk-Low mbo s st Pri
| 14.60 14.25 Bahamas Supermarkets 14.60 15.60





















8.00 6.00 Caribbean Crossings (Pref) 6.25

0.54 0.20 __RND Holdings 40

' 41.00 41.00 ABDAB 43.00

i 14.60 14.00 Bahamas Supermarkets 15.60

| 0.55 0.40 RND Holdings

k : Bay

j52wk-Hi 52wk-Low Fund Name : NAV YTD% Last 12 Months Div$ Yield%

41.3081 1.2443 Colina Bond Fund 1.308126**** 1.25% 5.61%

}3.0008 2.6629 Colina MSI Preferred Fund 2.996573**** -0.14% 13.11%

1.2647 Colina Money Market Fund 1.387505*** 0.90% 3.87%
3.1827 Fidelity Bahamas G & | Fund 3.7011**** -2.52% 17.78%

412.1010 11.4992 Fidelity Prime Income Fund 12.1010** 1.40% 5.72%.

} 100.0060 100.0000 CFAL Global Bond Fund 100.00**

{100.0000 100.0000 CFAL Global Equity Fund 100.00**

i! .0000 1.0000 CFAL High Grade Bond Fund 1.00**

110.5000 9.6346 Fidelity International Investment Fund —_9.6346* -8.24% -8.24%





Vv. Key

*~ 29 February 2008
**~ 31 December 2007
***~ 41 April 2008

**** 31 March 2008

YIELD - last 12 month dividends divided by closing price
Bid $ - Buying price of Colina and Fidelity

Ask $ - Selling price of Colina and fidelity

Last Price - Last traded over-the-counter price

Weekly Vol. - Trading volume of the prior week

| BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00
52wk-Hi - Highest closing price in last 52 weeks




52wk-Low - Lowest closing price in last 52 weeks
_ Previous Close - Previous day's weighted price for daily volume
iay's Close - Current day's weighted price for daily volume





i To
' EPS $ - Acompany's reported earnings per share for the last 12 mths
NAV - Net Asset Value

N/M - Not Meaningful

FINDEX - The Fidelity Bahamas Stock Index. January 1, 1994 = 100



, Change - Chanae in closing price from day to day
Daily Vol. - Number of total shares traded today
DIV S$ - Dividends per share paid in the last 12 months
P/E - Closing price divided by the last'12 month earnings
i(S) - 4-for-1-Stock Split - Effective Date 8/8/2007: «
(S1) - 3-for-1 Stock Split - Effectiv:
TO TRADE CALL: CF,



E
feces

AAI

SAARI ANAAEARREREROIN

BORCO.
buyers
inject
$550m
in equity
capital

FROM page 1B

minal Bahamas and integrat-
ed into the Dutch company’s
global network, operating as a
facility for the storing and han-
dling of crude oil, fuel oil and
clean petroleum products.

It also has bunkering, blend-
ing and transhipment uses. The
new owners plan to expand
BORCO’s capacity from the
current three million cubic
metres, or 20 million barrels, to
up to give million cubic metres.

Vopak’s chairman, John
Paul Broeders, said in a state-
ment: “This terminal has the
potential to serve a greater
number of customers, with a
focus on the large nearby US
market for petroleum prod-
ucts, and aligns perfectly with
our strategy to grow our ter-
minal network worldwide to
support the success of our cus-
tomers.

“Vopak will leverage its
global customer portfolio to
increase the storage activities
at this strategic location. With
the high interest expressed by
future clients and the intention

to invest in improvements and
expansion, this terminal is
expected to become profitable
within the first couple of
years."

He added: “We welcome
BORCO and its employees to
the Vopak network, and look
forward to sharing our expe-
rience and expertise with local
management and employees
to further enhance the quality
of the operations.”

William McCauley, First
Reserve’s chairman and chief
executive, said: “The facility
will provide significant value
for our strategic partners, while
also providing tremendous
growth opportunities to the
Bahamas. ;

“The partnership with
Vopak at BORCO is an excit-
ing opportunity to support the
growth of the world's major oil
companies by providing long-
term access to facilities for
storage and distribution ser-
vices in a strategic part of the
world.”

The acquisition was part-
financed by a senior secured
credit facility fully underwrit-
ten by ABN Amro and DnB
Nor Bank ASA.



“Informative. ] can be sure to read something of value in The Tribune. It is filled with

pena





eT

SAROROECRES IEDR

The Tribune

ARERR

unportant to me. The Tribune is my newspaper.”

information about local news, sports, entertainment and world news ~ subjects that are

JASON RAHMING

CONSTRUCTION FOREMAN



THE TRIBUNE

WEDNESDAY, APRIL 30, 2008, PAGE 5B





Manufacturer

alters strategy Glo

m@ By CARA BRENNEN-BETHEL
Tribune Business Reporter

TO improve its competitiveness in a
challenging economic market, Androsia
Batik yesterday said it had made several
strategic changes to its manufacturing
process and launched an aggressive pub-
lic relations campaign to woo Bahamian
clients.

Jeffrey Birch, Androsia’s chief execu-
tive, said the company had secured
financing to invest in several new strate-
gies. He told The Tribune that the
revamping will include three major com-
ponents.

“The first thing that we are doing is
launching a massive public relations cam-
paign to educate Bahamians on how to
ensure that they are buying an authentic
Androsia product,” Mr Birch said, adding
that in recent months the company had
been hurt by persons passing off fake
fabric as Androsia.

“There is no question Bahamians like

Androsia and have an inherent attrac-
tion to it, so we want to ensure they are
buying Androsia and not some fabric
that was made elsewhere.”

Second, Mr Birch ‘explained that the
company was changing its production
methods to ensure it can cater to a retail

market.
Online

“What we have done is created an
online shopping cart so that domestic
and international customers can order
online. We have over 100 colours and
designs, and we can’t offer all of them,
but what we have done is taken 20-25
patterns and colours and put them on
offer, so more persons can purchase a
single item rather large orders,” Mr
Birch said.

“We have adapted our production
process, so that instead of cutting 200
shirts we are now cutting 200 different
products.”

The third thing, Mr Birch added, was to
ask his staff to adopt a new mindset to
achieve this strategy.

Mr Birch said: “Today, Androsia has
18 employees at its Fresh Creek factory.
Confronting the issue of the counterfeit
Androsia product made us think about
how we could save these 18 jobs.”

Referring to the foreign-made copycat
product, Mr Birch pointed out that
Bahamians should understand the mind-
set of their global competitors. “Foreign
companies don’t care about the Bahami-
an economy or Bahamian manufactur-
ers and jobs. So we have to adapt. We’ve
taken another risk with this loan, in the
hope that the Bahamian market will
chose to support local manufacturers.”

Authentic Androsia batik is a local
product, he explained. Based on Andros,
Androsia was first started-in 1973. The
company produces an extensive line of
hand-made batik fabrics and fashions, as
well as accessories and items for the
home.

“Mind boggling’ internal theft could cost food stores $25m

FROM page 1B

age” of such incidents were
“inside jobs”.

Typically, they were often
carried out with the involve-
ment or information from cur-
rent or former employee,
passing details on to friends
and relatives who organised
the robberies.

It had almost got to the
point, Mr D’Aguilar said,
where cash-based companies
had to operate “on the
premise that you will get
robbed from time to time”,
and take measures to limit
their exposure.

“One would expect those
to increase,” Mr D’Aguilar

said of armed robberies, “and
businesses have to redouble
their efforts to become more
vigilant. It’s not business as
usual. You’ve got to think
about all the costs in your .
operation, and impress upon
staff not to be silly with mon-
ey, and not develop a routine.

“Assume the robber knows
your routine. You have to
outsmart the robber. It seems
as if these robberies are
becoming more violent, so if
there is a limited amount of
cash on the premises, the
incentive to fight for it dimin-
ishes, and you come away
with your life.”

Mr D’Aguilar estimated
that Bahamian companies, on

average, spent a sum equiva- »

Bahamas gives 16.7 per cent
profit rise for Butterfield

FROM page 1B

operations have two aspects -
Butterfield Bank (Bahamas),
which handles the private
wealth management and trust
business, and Butterfield Fund
Services (Bahamas), which
deals with fund administration.

Butterfield Bank first
entered the Bahamian finan-
cial services market in 2003
when it acquired Thorand
Bank & Trust, plus the
Bahamian operations of
Leopold Joseph. Then, in ear-
ly 2004, it purchased Deerfield
Fund Services.

Banca del Sempione (Overseas) Ltd.

Employment Opportunity
Assistant Portfolio Manager

Banca del Sempione (Overseas) Ltd. is looking for an
Assistant Portfolio Manager to join its select team of

professionals.

Responsibilities:

- Asset allocation for customer accounts
- Application of investment strategies

- Trading of securities

- Review of performance of portfolios
- Liaison with clients and external portfolio managers

Minimum qualification:

- 5 years experience in asimilar position ,
- excellent knowledge of European securities markets
- English and Italian written and spoken fluently

- Bachelors degree or similar

- Knowledge of other foreign languages is an advantage.

Salary will be commensurate with experience. Interested
candidates sho'!ld forward a copy of their resume to:

Human Resources

Banca del Sempione (Overseas) Ltd.
P.O. Box N-8159

Nassau, Bahamas

Only persons being interviewed for this position

will be contacted.



lent to between 2-3 per cent of
their annual sales on securi-
ty, and if the situation wors-
ened the amount spent in this
area would inevitably
increase.

The Bahamas still being a
cash-based society was one
reason why so many violent
robberies occurred, the
Chamber president said,
adding that this again rein-



forced the need for the clear-
ing banks to introduce their
Automated Clearing House
(ACH) and SWITCH system.

He recalled how at a Home
Depot store in the US, once
$200 in cash was placed into
the till by a teller, the till froze
and could only be opened by a
manager with a swipe card,
noting that this would be use-
ful in the Bahamas.

CFAL to
kickstart

FROM page 1B

CFAL had used its previous
two allocations from the Cen-
tral Bank to start its equities
fund, which now had $4-$5
million invested in it, and Mr
Ferguson said the strategy was
now to do the same for the
CFAL Global Bond Fund
using this period’s and the 2008
second quarter allocations.

Once that was achieved, the
company would then focus on
the CFAL High Grade Bond
Fund.

“What we want to do is offer
diversification and alternative
options to our clients, and not
put it all into equities,” Mr Fer-
guson told The Tribune.

He added, though, that he
would have liked the Central
Bank to provide at least $10

_ million to each of the three eli-

gible Bahamian broker/deal-
ers with its initial allocation to
give their funds critical mass
and defray operational costs.

Mr Ferguson explained that
a 1.75 per cent currency. con-
version tax was imposed on the
Central Bank allocation. If the
allocation was $2 million, this
fee -would work out to
$37,5000.

On top of that came audit
fees of $25,000, plus $20,000 in
fees that had to be paid to the

bal Bond
Fund

independent fund administra-
tor. When this was all totalled
up, Mr Ferguson explained,
this came to more than $80,000
- a sum equivalent to 4.125 per
cent of the fund’s assets.

“IT would have liked them to
give us $10 million up front,”
Mr Ferguson said of the Cen-
tral Bank. “It becomes very
expensive. Really, you need a
critical mass of $10 million in
the fund to make the adminis-
trative costs more reasonable.

“What ends up happening
now is that as a company you
have to absorb those costs,
rather than pass them on to
the customer.”

The CFAL Global Bond
Fund is being launched as a
result of the last exchange con-
trol reforms unveiled by the
Central Bank of the Bahamas.

Those reforms make avail-
able to three Bahamas-based
broker/dealers, at quarterly
intervals throughout the year, a
total of $25 million for use in
investment funds that provide
Bahamians with access to
international capital markets
without having to pay the 12.5
per cent exchange control pre-
mium.

With three broker/dealers
competing for the quarterly
$6.25 million allocation, it is
effectively split three ways into
usually just over $2 million
each.



THE TRIBUNE



eeu








PAGE 68, WEDNESDAY, APRIL 30, 2008



°

COMICS PAGE



JUDGE PARKER












WITH YOUR * 3 I DON’T
RECORD, YOU 3 | WANT TO LIVE
COULP WORK \ 3 ANYWHERE
WITH ANY FIRM = ELSE BUT

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IN THE COLINTRY, FZ
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_--AND I WOULD
RATHER NOT WORK \>
FOR ANY LAW FIRM
BUT THIS ONE!



I'VE HAD
pf’ OFFERS, BUT TURNED.

ae
THEM ALL DOWN! :

APARTMENT 3-G
NEXT MORNING, AS TOMMIE RETURNS WOME...

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THE HOSPITAL SAID DR. KELLY









3 t, yf, d
REQUESTED ME SPECIFICALLY, 5 en ce
TOMMIE, WHY ARE YOU \ I WAS PAGED IN THE é ; 1
WEARING SCRUBS? = | MIDDLE OF DINNER, ie “WHILE YOU'RE AT IT, COULD YOU CLEAR
DIDN’T YOU AND GARY / LU ANN. La WV a ME & PAFH To JOYS HOUSE?
HAVE A DATE LAST oa. (\ We
| NIGHT ?? VWF D) Uy = AX \;
Me tha Sy

BLONDIE

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SHOVELING, WE
HAVE IMPORTANT / THIS DONE

WORK TO DO! / (

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©2008 by Nort



Contract Bridge

By Steve Becker



The Step-by-Step Approach

South dealer.
Both sides vulnerable.

1. I cannot make the contract
without tilizing the club suit.



WEDNESDAY,

NORTH 2. The best way to play the clubs
@K74 is to finesse against West. If he has APR 30
Â¥652 the king, I will make the contract :
@A8 with overtricks. AQUARIUS - Jan 21/Feb 18
&AQIS3 3. Suppose I win the first heart Pay attention to what you spend
WEST EAST with the king, try the club finesse and money on ‘this week, Aquarius. The
. #586 #10932 it loses to East? The outcome will bills could pile up faster than you
j ay ere ¥A 10843 ¥Q9 then depend on how the opposing had expected. You can stay in con-
7 ez #3932 #Q1075 hearts are divided. If West started J trol if you’re alert.
&6 KS 4 with only four hearts, I am safe. But TCHS
. MARVIN SOUTH if he started with five hearts, a heart retin ie ee fia
: -— 4AQ5 retum by East through my J-7 will | on yourself. Pisces. Money has b ue
[LOoK, BERNIE, THERE'S \WELL...L GUESS S VKI7 allow West to score four hearts,andI_ [fa siressful subject. thi ¥, nas, Deen
| PLENTY OF ROOM. JU eK 64 will go down one. Seale Uae Weems youl
ST g figure out how to earn m:
| SIT ALITTLE FARTHER Es N #) 1072 4. Is there any way I can protect | apipg_ yf 1/Apr 20
DOWN ON THE BENCH me The bidding: against West having five hearts and | PAS o> 78 fe ; ah :
Tae UP South West North East the king of clubs? USHnESss:ANd Far ys WU Dey cue Lop
| 1& Pass 3 Pass 5. Eureka! I can assure the con- ee week, a alee 48
ae 3.NT tract regardless of how the opposing Weinecd Pe h : a ee
Opening lead —- four of hearts. - cards are divided. All I have to do is CUNESOAy, WELDS a key ay Osten



NON SEQUITUR |



2008 by tiarth America Syreloate, be. World righ in reacreed.



Most winning plays in bridge are
arrived at by simple step-by-step rea-
soning. While this process may be
applied at any time during the play,
without question the most ‘requent
occasion for its use occurs at trick
one.

For a typical illustration, con-
sider this deal. West leads a low heart
against three notrump. East plays the
queen, at which point declarer should

to allow East’s queen of hearts to
hold the first trick, retaining the K-J
as a stopper. Assuming East returns a
heart, if he subsequently gains the
lead with the king of clubs and the
hearts were originally divided 5-2, he
won’t have a heart to return. And if
the hearts are divided 4-3, the oppo-
nents can’t get more than four tricks
no matter how they defend.

The ducking play at trick one

contracts and the like. ;
TAURUS - Apr 21/May 21

You may have had an argument with
a romantic parmer, but luckily things
will get back to normal this week,
Taurus. Hang in there for another few
days for a resolution. '

GEMINI - May 22/Jun 21

You will have to be mentally ready
to make a change this week, Gemini.
This likely involves changing a bad

& see eeu ; Z . i 7
‘ : : take the time to analyze the situation __ thus assures South of scoring af least it aleine: ds with 2
a oS a2 before doing anything. Here is what nine wicks, and, as the cards lie, he eh eaaned con Re
i
2 OK, OK. Family members will be at the fore-
s ui (STAND front this week, Cancer. Just be ready
© to do some soul-searching. Also,

Se ose. OY vutieere, Fs

LAND 2S NILA WK, IWC,

TIGER

CORRECTED.
IT CAN GET




CO CORNICS.CofA (pou sSEQuITER




















| CRYPTIC PUZZLE |



FASY SOLUTIONS

CABLY
















-

34
35
36
37
38

Number (5)
Kernel (3) -
Sharp (5)
Japanese bed (5)
Sharp pain (5)

TARGET.

YESTERDAY'S SOLUTION
deeper deer doer
dorm dorp dower
drew drop empower

. EMPOWERED erode
ewer mere more
mower peér peered
perm permed pore
pored powder power
powered premed prod
proem prom prow .
redeem redo reed rode
romp romped rope
roped rowed weeder
weeper were word
wore worm wormed



25 Enclosure (3!
27 Hit (5)

28 Relaxes (5)
39 Engine (5)
32. Miserly (4)
33 Disapproving
sound (3)



[DIN|L
FIL
D|T|F

HOW many words of
four letters or more can
you make from the
letters shown here? In
making a word, each
letter may be used once
only. Each must contain
the centre letter and
there must be at least
one nine-letter word. No
! plurals, or verb forms
— ending in “s”, no words

you’re feeling the need to spend -
some money on your home.

LEO -— Jul 23/Aug 23

You have a perfect week ahead to get
your way, Leo. Plus, it will be much
calmer than last week when too
many things were up in the air. Give
yourself plenty of time to enjoy.

VIRGO — Aug 24/Sept 22

You will have more money to spend in
the days to come, Virgo, particularly
because the stars are aligned in your
financial comer. Enjoy a takeout din-
her or a night on the. town.

LIBRA - Sept 23/Oct 23

This week, see if you can get out of
town, Libra. New scenery will do
you good. With just a little change,
your mood will brighten and you’ll
feel refreshed.

SCORPIO — Oct 24/Nov 22
You should have a fabulous time
with your family this week,.Scorpio.
Visit Mom, or take your children out
for a spur-of-the-moment outing
they're not soon to forget.



with initial capitals and
1 : no words with a hyphen SAGIFTARIUS — Nov 23/Dec 21
R - ACROSS or apostrophe You're considering making a career
: ; Sala DOWN ermitted. The first change, Sagittarius, because you °‘
3 A fishy trick? (5) ; i i P -
| 8 C ful fled 1 Provide the cash for a rise? (3,2) word ofaphraseis _ feel you've grown beyond your cur-
Phe relat sere ot engin 2 Sharply taking a short route to a permitted (e.g. inkjet i rent job. Find someone who can
B on smoke it (5) cathedral city (7) naa ete Se | lend an ear to your situation.
eA: ae Epes oy eo eltot 4 — Octogenarian's song (4) Good 13; very good 20; CAPRICORN -— Dec 22/Jan 20
U- central Wembley (5) 5 Fretted about Charlie being less excellent 25 (or more). You will be so busy with work in the
- 11 One half hour with a Yankee (3) than half fed (6) Solution Monday. ae few Nees that working week-
N 12 One home of athletic 6 ie onset dating (5) ends may become a necessity to catch
footballers (5) 7 Soft-hearted girl's source of coconut ee ee
E 13 Al departs from down under for the oil (5) NE ere Sean
ty country (7) : 9 Lettuce produced by a firm at
~ ; 15 Hasa id of noisy Ponders End (3) ‘
organs as
gtk a 12 Strange place for a prohibition on
18 In time, one is transformed (3) alcoholic drinks! (4,3) Cc H ESS oY] Leo na rd Ba Kez)
W 19 Very important pianist, 14 Frothy rubbish? (3)
O : Pe m8) a 16. Jordan's morning fellow (5)
- Asis in a different version (7) 17. Aslow, screw-headed
we Spot'a key agent (4) fixin ‘
ig device (5) : ntaitigte
ay nee i fellow's nasty, 19 Atthe wicket, they score no runs! (7) heen at ies be 2007
i oy oe : ‘ 20 Quick to accept a late finish to a tEieete Ivanchuk a the top ,
idicule at takeoff? (7; one
N Stata sak ‘ ) great meal (5) seed for the $2 million contest, and
: a po 21. Annual trouble about public all went well until he suddenly
cl ? : : fees a <
2 imber? (6) iy _ relations (5) ACROSS DOWN cracked in today’s position against a
29 One must do so ord aa is ok z
i $ ie in 23 Significantly if not competently (7) 3 Symbol (5) 1 Organised sound (5) tough Romanian. Ivanchuk is a
0 eens) 24 Injur: caused by lions getting out of ty ee eS pawn up as White but under
31 Stories least edited (5) 10 Asian country (5) 4 Honest (4) :
N Stories le it the cage rear? (6) 11 Distress call (3) 5 — Sufficient (6) pressure. Black’s g6 rook menaces
32 Manage with warm heart to dispel 25 Outboard propeller (3) lw 2 MEI IENS (5) ’ 6 — Underground (5) the white king, the a6 bishop
E 7 ariget ”) Bi bic 27. Standard Anglo-Saxon soldiers, = ig workers : oe threatens to take lvanchuk's fl rook.
- ss ants with fresh ideas (5) informally? (5) N 15. Desires (5) 12 Discovers (7) Ivanchuk’s counter was his last
35 To rub the wrong way is a 28 Leads astray in tra :sactions (5) — 18 Devour (3) ’ move £243, which offers rook for
natural thing (3) SA ueisaee Wal Aiea rua carne os a. 19 Braggart (6) 14 Spoil (3) bishop but gives Black a solid
a a 30 Concede that a bargee cannal p 21 Wail (7 16 Donated (5) osition for a slight material deficit.
wy * sibly be big-headed (5) 2 22 Insect (4) 17 Room for quiet U h
i 37 arless of ee stly for raisi ” 23 Peruse (4 work (5) pnertunatcly, habe loans
Q | 32 Are such engines mostly for raising a (4) ’ two got it completely wrong. After
Jon ae “ore? (4) Lu $2. Mere peapras (7) Je eee Black’s next turn in the dia ram
38 The Mas : zc io (6) 20 Collect (5) Wnnead | Wiatacs 5
Ak ; 33 Half Nubian. that’s the 9 Allow (3 21 Bend (5) ad to resign.
foot! (5) point (3) 31 Wonderful (5) 23 Entourage (7) Black’s one-move knock-out?
32 Check (7) 24 Road (6) LEONARD BARDEN



Chess 8603: 1...8c4! and White resigned. The queen
has no good escape square. If 2 Qc3 or Qc2 Bxfl wins

a fOOK.

ACROSS Anon 14 juma *5, Ar’

a ek Vaex 27 A “fm Si ent 2 See 27. Hae OG
gam 29, Oous %6 20 ‘ :
i $ AP tty ov NY 2 Agan ‘ Cory & Nosing 9 Soseet lec 12
— ce a eee Se ‘ ;



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sidihenniiabidé ed ee ory De me 9 ERT 2 Fe = EET EE TT



THE TRIBUNE WEDNESDAY, APRIL 30, 2008, PAGE'7B

Votorantim Bank Limited

Votorantim Bank Limited
Financial Statements at
December 31, 2007

Statement of Changes In Equity
Expressed in thousands of U.S. dollars



i Number of | Number of
and Report of Independent Auditors ee Te |
shares shares capital earnings Total
CEWATERHOUSE( COPERS Balances at December 31,
m4 2005 1,000,000 23,785,584 41,290 9,253 50,543
PricewaterhouseCoopers Net income for the year - : - — 4,281 . 4,281
Providence House
ey arses ; Balances at December 31,’
Nassau, Bahamas 2006 1,000,000 23,785,584 41,290 — 13,534 54,824
Website: www.pwe.com
E-mail: pwobs@bs. pwe.com Repurchase of treasury ;
Telephone (242) 302-5300 shares (Note14) (757,814) (18,025,050) (31,290) : - (31,290)
Facsimile (242) 302-5350
Dividend paid - - - (9,253) (9,253)
9
INDEPENDENT AUDITORS’ REPORT Nec inconis torihevear : : . 2.883 2883

ee

Balance at December 31,
2007 242,186

To the Directors and Shareholders of Votorantim Bank Limited .

, . ; : 5,760,534 10,000 | 7,164 17,164
We have audited the accompanying financial statements of Votorantim Bank Limited (the Bank), —Ss esi emcees seen
which comprise the balance sheet as of December 31, 2007, and the income statement, statement
of changes in equity and cash flow statement for the year then ended, and a summary of

pe : ce Cash Flow Statement
significant accounting policies and other explanatory notes.

Year Ended December 31
Expressed in thousands of U.S. dollars



Management's Responsibility for the Financial Statements

2007 2006

Management is responsible for the preparation and fair presentation of these financial statements Gaal howa iro oneewiing wonvies

in accordance with International Financial Reporting Standards. This responsibility includes: interest received , 2.801 4,449
designing, implementing and maintaining internal control relevant to the preparation and fair Interest paid (960) (939)
presentation of financial statements that are free from material misstatement, whether due to ean ae ee ivi Hos fad
fraud or error; selecting and applying appropriate accounting policies; and making accounting Depreciation 4 :
estimates that are reasonable in the circumstances. - Net trading gain 105 101
, i > op one Net cash provided by operating activities before
Auditors’ Responsibility changes in operating assets and liabilities 3,009 4,475
Our responsibility is to express an opinion on these financial statements based on our audit. We (Increase) Decrease in operating assets |
conducted our audit in accordance with International Standards on Auditing. Those standards Securities held-for-trading (14,853) 6,074
require that we comply with ethical requirements and plan and perform the audit to obtain pels a iia : oe :
. paneer _(538) _
reasonable assurance whether the financial statements are free from material misstatement. 3
. . . . ; ; Increase (decrease) in operating liabilities : .

An audit involves performing procedures to obtain audit evidence about the amounts and Demand deposits - customers 1,192 846
disclosures in the financial statements. The procedures selected depend on the auditors’ _ Time deposits - customers : (2,428) (772)
judgment, including the assessment of the risks of material misstatement of the financial Other liabilities . 1014 (205)
statements, whether due to fraud or error. In making those risk assessments, the auditors consider Schaal MGatiused lah hei Goaratine eelvios aol ‘eeaas
internal control relevant to the entity’s preparation and fair presentation of the financial ——_ (12,590) __ 10,445
statements in order to design audit procedures that are appropriate in the circumstances, but not Cash flows from investing activities
for the purpose of expressing an opinion on the effectiveness of the entity’s internal.control. An Purchases of fixture, furniture and equipments 1,604 -
‘audit also includes evaluating the appropriateness of accounting policies. used and the Escuidcue toni insneing nantes
reasonableness of accounting estimates made by management, as well as evaluating the overall Aesuiciase of ieueucy snares (1,200 ;
presentation of the financial statements. Dividend paid (9,253) -

: . . Fi en . . : Net cash used in financing activities (40,543) 7
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a . ee
basis for our audit opinion. : Net (decrease) increase in cash and cash equivalents (54,737) 10,445
Opinion Cash and cash equivalents, beginning of year ___ 70,481 0,036

8 3 : a ‘ : Cash and cash equivalents, end of year 15,744 70,481:

In our opinion, the accompanying financial statements present fairly, in all material respects, the ES ———————
financial position of the Bank as of December 31, 2007, and its financial performance and its Cash and cash equivalents are composed of:
cash flows for the year then ended in accordance with International Financial Reporting Cash and demand deposits 480 300
Standards. Due from banks - interest bearing 15,264 70,181

»

(retasale howe CONO

Chartered Accountants
Nassau, Bahamas
March 27, 2008

Yotorantim Bank Limited

Salance Shest at December 34
Expressert in thousands of U5. dollars

.







Azsets Note. 2007 2
Cash and demand depasrs 486 Soe
Due fret harks - interest hearing ¥ 15,234 70,183
Securities held Jor-trading $ TFBS 8,798
Loans and ackances % - +4
Other avsats 3 BUS Bf
Finhwes, furriiire and equipment 1506 :
Total anants: 3U,2e8 75,604
Liabilities

DEMOrK GODUGHS « TAISEN ADS ? 8,288 FRTE
“Toros cagosile - oastorrenns R 43423 13,836
Cittber Ealitie $ US 466
‘Total liabilities LASER 20,870
Equity . oe
Share card 4 49,008 31200
Retained aarings Fags RBS
Total equity AP 8S Ga BOS
Fated lebllities and acuity 37,728 on HS

os ANG APPROVED POR ISSUE ON BEHALF OF THE BOARD OF QIRECTORS:




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rego: Wilken Macuy # tl BOOK bittan Roberta Pernire

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Marche), 2th
Votorantim Bank Limited
Income Statement

Year Ended December 31
Expressed in thousands of U.S. dollars

Note 2007 2006

Interest income
Securities held-for-trading 750 900

Loans and advances - 4

Bank deposits 1,843 3,287
Total interest income 2,593, 4,191
Interest expense

Time deposits - customers (875) (873)
Total interest expense (875) (873)
Net interest income 1,718 3,318
Non-interest income (expenses)

General and administrative expenses (341) (257)

Net trading gain 10,15. 105 101

Other income 11 1,448 1,131

Other expenses (47) (12)

1,165 963

Net income for the year 2,883 4,281

45,744 70,481

Notes to the Financial Statements
at December 31, 2007
Expressed in thousands of U.S. dollars

1 Incorporation and Background Information

Votorantim Bank Limited ("the Bank") is incorporated under the laws of the Commonwealth of
The Bahamas and was licensed on March 8, 1995 by the Central Bank of The Bahamas to
conduct unrestricted banking business. Banco Votorantim S.A. and Votorantim Finang¢as S.A.,
which are incorporated in Brazil, own 4.03% (representing 100% of the ordinary shares) and
95.84% respectively, of the shares of the Bank. The minority shareholders own 0.13% of the
preference shares. : ;

The Bank's business activities include banking services, advisory and management of funds
and investment and trading in international financial markets. In April, 2007, the Board
Directors decided to engage, exclusively, in private banking activities. ;

The registered office of the Bank is located at Saffrey Square Building, Suite 204, Bay Street,
Nassau, Bahamas. A related party provides administrative and accounting services to the
“Bank.

These financial statements have been approved for issue by the Board of Director on March
27, 2008.

2 Summary of Significant Accounting Policies
(a) Statement of compliance

The financial statements have been prepared in accordance with International Financial
Reporting Standards ("IFRS") as promulgated by the International. Accounting Standards
Board. The preparation of the financial statements in conformity with IFRS requires
management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and reported amounts of revenues and expenses during the year. Actual results
could differ from those estimates.

The accounting policies have been consistently applied by the Bank and are consistent with
those used in the previous year.

(b) Basis of preparation

The financial statements are presented in United States dollars rounded to the nearest
thousand. The financial statements have been prepared under the historical cost convention,
as modified by revaluation of financial assets and liabilities held-for-trading.

In the current year, the Bank has adopted IFRS 7 Financial Instruments: Disclosures and the
amendments to IAS 1 Presentation of Financial Statements, which became effective for fiscal
periods beginning on or after 1 January 2007. The impact of the adoption of IFRS 7 and the
changes to IAS 1 has been to expand the disclosures provided in these financial statements
regarding the Bank’s financial instruments and management of capital.

The remaining standards and amendments and interpretations to published standards that
became effective for fiscal periods beginning on or after 1 January 2007 were not relevant to
the Bank’s operations and accordingly did not impact the Bank’s accounting policies or
financial statements. :

The application of new standards and amendments and interpretations to existing standards
that have been published but are not yet effective are not expected to have a material impact
on the Bank's accounting policies or financial statements in the period of initial application.

(c) Financial instruments
(i) Classification

The Bank classifies its financial assets in the following categories: financial assets at fair value
through profit or loss and loans and receivables. Management determines the classification of
its investments at initial recognition.

Financial assets at fair value through profit or loss consists of financial assets held-for-trading
and those designated by management as at fair value through profit or loss at inception. A
financial asset Is classified as held-for-trading If acquired principally for the purpose of short-
term profit taking.



PAGE 8B, WEDNESDAY, APRIL 30, 2008

(ii)

(iii)

(iv)

(v)

(vi)

(vii)

(viii)

(d)

(e)

(f)

(9)

(h)

(i)

Loans and receivables are non-derivative financial assets with fixed or determined payments
that are not quoted in an active market. They consist of loans and advances created by the
Bank providing money to a debtor, other than those created with the intention of short term
profit taking, which are classified as held-for-trading.

Recognition

The Bank recognises financial assets at fair value through profit or loss on the date it commits
to purchase the assets (trade date). Loans and receivables are recognised on the settlement
date, being the date cash is advanced to the borrowers.

Measurement

Financial assets are measured initially at fair value plus transaction costs for all financial
assets not carried at fair value through profit or loss. :

Subsequent to initial recognition all financial assets at fair value through profit or loss are
measured at fair value, except for any instrument that does not have a quoted market price in
an active market and whose fair value cannot be reliably measured is stated at cost including
transaction costs, less impairment losses.

Loans and advances are measured at amortized cost using the effective interest method.

Non-trading financial instruments including margin collateral associated with transactions such
as repurchase agreements, demand deposits, payable to brokers and dealers and time
deposits-customers are measured at historical cost plus accrued interest less impairment
losses.

Fair value measurement principles

The fair value of financial instruments is based on their quoted bid price at the balance sheet
date without any deduction for transaction costs. If a quoted market price is not available, the
fair value of the instrument is estimated using pricing models or discounted cash flow
techniques.

Gains and losses on subsequent measurement

The change in fair value of trading securities and derivative financial instruments, and
gains/losses from their sales are included in "net trading (loss)/gain" in the income statement.

Derecognition

A financial asset is derecognised when the Bank loses control over the contractual rights that
comprise that asset. This occurs when the rights to receive cash flows from the financial asset
have expiréd or where the Bank has transferred substantially all risks and rewards of
ownership. A financial liability is derecognised when it is extinguished.

Assets held-for-trading that are sold are derecognised and corresponding receivables from the
buyer for the payment are recognised as of the date the Bank commits to sell the assets. The
Bank uses the specific identification method to determine the gain or loss on derecognition.

Impairment

Financial assets are reviewed at each balance sheet date to determine whether there is
objective evidence of impairment. If any such evidence exists, the assets recoverable amount
is estimated and carrying amount of the asset is reduced to its estimated recoverable amount
either directly or through the use of an allowance account. The amount of the loss is included
in the income statement. ,

Loans and advances

The recoverable amount of loans and advances is calculated as the present value of the
expected future cash flows, discounted at the instrument's original effective interest rate.
Short-term balances are not discounted. :

Loans and advances are presented net of specific and general allowances for uncollectibility.
Specific allowances are made against the carrying, amount of loans and advances that are
identified as being impaired based on regular reviews of outstanding balances to reduce these
loans and advances to their recoverable amounts. General allowances are maintained to
reduce the carrying amount of portfolios of similar loans and advances to their estimated

‘recoverable amounts at the balance sheet date. The expected cash flows for portfolios of

similar assets are estimated based on previous experience and considering the credit rating of
the underlying customers and late payments of interest or penalties. Increases in the
allowance account are recognised in the income statement. When a loan is known to be
uncollectible and all the necessary legal procedures have been completed, the final loss is
determined and the loan is written off. ‘

If in a subsequent period the amount of an impairment loss decreases and the decrease can
be linked objectively to an event occurring after the write-down, the write-down or allowance is
reversed through the income statement.

Specific instruments :
Cash and cash equivalents

Cash and cash equivalents in the cash flow statement include cash on hand, cash held on
demand with banks and interest-bearing deposits with banks, which have maturities of three
months or less. ,

Liabilities

Liabilities evidenced by securities including demand and time deposits are classified as non-
trading liabilities.

Property, plant and equipment

All property, plant and equipment is stated at historical cost less accumulated depreciation.
Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Segment reporting

A business segment is a group of assets and operations engaged in providing products or
services that are subject to risks and returns that are different from those of other business
segments. A geographical segment is engaged in providing products or services within a
particular economic environment that are subject to risks and returns different from those of
segments operating in other economic environments.

Foreign currency

Items included in the financial statements of the Bank. are measured using the currency of the
primary economic environment in which the entity operates (“the functional currency”). The
financial statements are presented in United States dollars, which is the Bank’s functional and
presentation currency.

Transactions in foreign currencies are translated to United States dollars at the foreign
exchange rate prevailing at the date of the transaction. Monetary assets and liabilities
denominated in currencies other than the United States dollar at the balance sheet date are
translated to United States dollars at the foreign exchange rate ruling at that date. Foreign
exchange differences arising on translation are recognised in “other income/expenses" in the
income statement.

Interest income/interest expense

Interest income and interest expense are recognised in the income statement using the
effective interest method. :

Interest income and interest expense include the amortisation of any discount or premium or
other differences between the initial carrying amount of an interest bearing instrument and its
amount at maturity calculated on an effective interest rate basis.

Net trading (loss)/gain

Net trading (loss)/gain includes gains and losses arising from the disposal of securities held-
for-trading and changes in their fair value.

Income tax

The Bank's financial statements reflect no provision for taxes since there is no income tax
imposed in Nassau, Bahamas. However, the Bank may be subject to capital gains tax on
financial instruments in other jurisdictions.

Preference shares

Preference shares are non-voting and in a winding up of the Bank, are given priority for
repayment of capital over all other shares. In all other respects, ordinary shares and
preference shares rank "pari passu” and both classes participate in the surplus profits of the
Bank which are from time to time distributed by way of dividends at the discretion of the
directors.

(k)

(1)

10

11

12

13

14

THE TRIBUNE

Related parties

Related parties comprise the Bank's shareholders and affiliated entities, which are related on
the basis of common management/ownership and control, as well as directors and officers of
these entities and the Bank.

Fair value estimates

Fair value estimates are made at a specific point in time, based on relevant market information
and information about the financial instrument. These estimates do not reflect any premium or
discount that could result from offering for sale at one time the Bank's entire holdings of a
particular financial instrument. These estimates are subjective in nature and involve
uncertainties and matters of significant judgement and, therefore, cannot be determined with

precision. Changes in assumptions could significantly affect the estimates.

The carrying amounts of the Bank's significant financial instruments approximate their fair
values because of one or more of the following reasons:

Immediate or short-term maturity.
Carrying value approximates market value.
Interest rates approximate current market rates.

Due From Banks - Interest Bearing Deposits

Balances included in this caption, as of 31 December, 2007, represent deposits placed with
banks maturing within three months of the balance sheet date and earning interest at rates

ranging from 3.15% to 4.75% (2006 - 5.16% to 5.28%) per annum.

Securities
2007 2006
Held-for-trading
’ United States government debt securities 19,782 -
Brazilian government debt securities - 5,135
19,782 5,135
Loans and Advances |
2007 2006
Customers - 14



Loans and advances are offered by the Bank to its customers to fund operations and import
and export activities.

Other Assets

Other assets consist mainly of account receivables in the amount of US$ 557 (2006 - US$ 51).

Demand Deposits - Customers

The balances under this caption represent money market deposits. At December 31, 2007,
interest paid to the Bank's depositors was 2.82% to 4.08% (2006 - 3.67% to 4.00%) per
annum.

Time Deposits - Customers

Balances under this caption represent deposits placed with the Bank, which, at December 31,
2007, earn interest at fixed.rates ranging from 4.05% to 6.00% (2006 - 3.90% to 5.60%) per
annum.

Other Liabilities

Other liabilities comprise account payables in the amount of US$ 1,135 (2006 - US$ 160).

Net trading gain

Net trading gain consists mainly of gains on the mark to market of held-for-trading securities of
US$ 105 (2006 - US$ 101).

Other income

Other income consists mainly of underwriting fees of US$ 647 (2006 — US$ 431), brokerage
fees of US$ 20 (2006 - US$ 350), custody fees of US$ 129 (2006 - US$ 335) and
management fees US$ 631 (2006 - Nil). ;

Maturity Analysis of Assets and
Liabilities — current and non-current assets

The following table summarises maturities of assets and liabilities, which are based on
remaining period at the balance sheet to the contractual maturity dates:



2007 2006
Cash and cash equivalents
Within three months 15,744 70,481
Securities held-for-trading
Three months to one year 19,782 -
More than five years - 9,135
Loans and advances :
Within three months - 7
Three menths to one year -. 7
- 14
Other assets
Within three months 602 64
Demand deposits-customers
Within three months 8,266 7,074
Time deposits - customers
Within three months 10,277 12,311
Three months to one year 846 1,325
11,123 13,636
Other liabilities
Within three months 1,175 160
Related-party Transactions and Balances
(Banco Votorantim S.A., Banco Votorantim S.A.
- Nassau Branch and Votorantim Finangas S.A.)
2007 2006
Assets
Cash and cash equivalents 1 1
Liabilities ;
Demand deposits - customers 120 -
Income statement
General and administrative expenses ‘ (84) (106)

General and administrative expenses represent technical services rendered by Raltic S.A., an
affiliate, during the year in accordance with a service agreement.

Share Capital

On April 13, 2007, the Bank repurchased treasury shares in the amount of US$ 31,290,
represented by 757,814 ordinary shares and 18,025,050 preference shares in accordance with
The Central Bank of The Bahamas approval and authorization for the reduction of capital of
US$ 41,290 to US$ 10,000.

On December 31, 2007, the Bank has authorised capital of US$ 10,000 (2006 — US$ 41,290)
divided into 5,760,534 (2006 — 23,785,584) preferred shares and 242,186 (2006 — 1,000,000)
ordinary shares with no par value. All of the shares have been issued and fully paid as follows:

2007 2006

Ordinary shares 344 1,419
Preference shares 9,656 39,871
10,000 41,290



THE TRIBUNE WEDNESDAY, APRIL 30, 2008, PAGE 9B

Liquidity risk



The ordinary shares are entitled to one vote per share. The preference shares are non-voting,

i tion. oe age . Pgs
do:nor have: stated: interest rats andido.hot have:staled (sums offedempl This is the risk that the Bank has the necessary liquidity to meet its obligations on borrowed

funds, bonds and other securities on contractual maturity. The Bank manages its liquidity by
matching as far as possible liabilities with assets of similar maturity periods. The relevant
maturity groupings based on the remaining period at the balance sheet date to the contractual
maturity date are as follows, considering an undiscounted cash flow:

During 2007, the Bank paid a dividend to ordinary and preference shareholders of US$ 0.373
per share totalling US$ 9,253 (2006 - Nil).

Financial Risk Management
As of December 31, 2007
Over five

The Bank's activities expose it to a variety of financial risks and those activities involve the

analysis, evaluation, acceptance and management of some degree of risk or combination of Upto tipts oncia ears oF
risks. Taking risk is core to the financial business, and the operational risks are an inevitable — ene mentt one vet the years —__undated
consequence of being in business. The Bank’s aim is therefore to achieve an appropriate
balance between risk and return and minimize potential adverse effects on the Bank financial

performance.

Demand deposits — customers 8,266
Time deposits — customers 9,597
Other liabilities

Total liabilities
The Bank’s risk management policies are designed to identify and analyze these risks, to set Tote eakets
appropriate risks limits and controls, and to monitor the risks and adherence to limits by means
of reliable and up-to-date information systems. The Bank regularly reviews its risks -
management policies and systems to reflect changes in market, products and emerging best
practices.

Liquidity assets

As of December 31, 2006

Over five
Risk management is carried out by a central treasury department (Group treasury) under one month one year five years coca
policies approved by the Board of Directors. Group treasury identifies, evaluates and hedges :

financial risks in close co-operation with the Group’s operating units. The Board provides
written principles for overall risk management, as well as written policies covering specifics
areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivatives financial

instruments and non-derivatives financial instruments.

Demand deposits - customers
Time deposits - customers
Other liabilities

Total liabilities

Total assets

Market risk Liquidity assets

Market risk is managed on a consolidated basis by the Votorantim Group.

Interest rate risk

The Votorantim Group performs operations involving derivative financial instruments, operating
in organized and over the counter markets, in order to ensure the management of market risk

appropriate to the Group policy.

Cash flow interest rate risk is the'risk that the future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. Fair value rate risk is the risk that the
value of a financial instrument will fluctuate because of changes in market interest rates.

Market risk management is performed centrally, by the administrative area, which is
independent from the operations desk and is also monitored by the Risks Committee,
comprising the board of executive officers and vice presidency of Banco Votorantim S.A.,
which meet periodically to assess the risks and define operating limits. The basic procedures
for risk management are as follows: a) monitoring the adequacy of positions and risks
compared with the limits established by the Risks Committee and legal limits; b) integrity of the
pricing of assets and derivatives; c) evaluation of the market risk using the “Value at Risk”
methodology and by simulating scenarios; d) keeping track of daily results using the back-test
methodology.

The policy for managing market risk also considers the use of derivative financial instruments
for hedging positions to meet the demand of counterparties and as a means of reversing
positions at times of significant oscillations. The operations observe the limits agreed by the
Committee and imposed by legislation, after analyzing credit and liquidity risks, when
appropriate, when they involve the liquidity and credit policies and the decisions of the
respective Committee.

The Bank’s interest bearing financial assets and liabilities consist of demand deposits, due
from banks — interest bearing, securities held-for-trading, demand deposits — customers and
time deposits — customers. The analysis of assets and liabilities disclosed under Note 12
Maturity Analysis of Assets and Liabilities is indicative of the analysis of interest bearing
financial instruments at carrying value, categorized by maturity dates.

Capital Management

The Bank’s objectives when managing capital, which is a broader concept than ‘equity’ on the
face of the balance sheet, are: :

To comply with the capital requirements set by the Central Bank of The Bahamas (the
Central Bank);

To safeguard the Bank’s ability to continue as a going concern so that it can continue to

provide returns for its shareholders and benefits for other stakeholders; and to maintain a *

Currency risk strong capital base to support the development of its business.

Capital adequacy and the use of regulatory capital are monitored by the Bank’s
management, employing techniques designed to ensure compliance with guidelines
established by the Central Bank. The required information is filed with the Central Bank on a
quarterly basis.

The Bank attempts to manage currency and interest rate risks by monitoring transactions to

ensure that the exposure to particular currencies/rates does not exceed established limits.

These limits are established using the "value at risk" methodology. The Bank also attempts to

reduce interest rate and currency risks by entering into hedging transactions such as currency

solange: At December 31, 2007, the Central Bank requires the Bank to maintain a ratio of total
ee . ; regulatory capital to risk-weighted assets at or above a minimum of 20% (2006 — 8%).

The Bank's assets were denominated in United States dollars as of the balance sheet date,

except for the following which were denominated in other currencies. The table below summarises the composition of regulatory capital and shows the capital

: adequacy ratio of the Bank as of the balance sheet date. During 2007 and 2006, the Bank has

2007 complied with all of the externally imposed capital requirements to which it was subject.

Deposits denominated in GBP 20 : 20 we ~ . Bai! : a . 2007 :

Deposits denominated in Euro 132

Deposits denominated in. Reais . «gl 1
Deposits denominated in YEN - 2
Deposits denominated in Bahamian dollar 25 24 x otal

Tier 1 capital
Share capital
Retained earnings

Risk-weighted assets

Total assets : 178 164
Capital adequacy ratio

Foreign currency gain for the year totalled US$ 13 (2006 - gain US$ 15) and is included in

"other income" in the income statement.
Credit risk , The following is a classification of assets and liabilities by geographical location:

’ Credit risk is the risk that a counter-party will cause a financial loss to the Bank by failing to —________ereentage _
perform according to the terms of the contract. Credit exposures arise principally in lending ‘ 2007 2006
activities that lead to loans and advances, and Investment activities that bring debt securities Assets
and other bills into the Bank’s asset portfolio. There is also credit risk in off-balance sheet alae &
financial instruments such as loan commitments. The gross notional or contract amounts of oe
derivative financial instruments do not represent the Bank's exposure to credit risk. The Bank's
credit risk exposures at any given time is defined as the gross replacement value of the total Liabillties
receivable balance under outstanding contracts, which are marked to market on a daily basis. Brazil . 71
The Bank attempts to minimize its exposure to credit risk by dealing with creditworthy counter- Caribbean 18
parties and through the use of various credit monitoring techniques, including collateral policies ~ Gre tice 5
and position and credit exposure limits which are based on the financial condition of the oe

applicable counterparties.

Assets and Liabilities Geographical Distribution

100

100






PUBLIC NOTICE |

INTENT TO CHANGE NAME BY DEED POLL

The Public is. hereby advised that |, KHADAJAH PHYLICIA |
CURTIS of PO. Box N-10060, Nassau, Bahamas, intend to
change my name to KHADAJAH PHYLICIA FERGUSON. If
‘there, are any objections to this change of name by Deed
Poll, you may write such objections to the Chief Passport
Officer, PO.Box N-742, Nassau, Bahamas no later than thirty
(30) days after the date of the publication of this notice.

NOTICE

NOTICE is hereby given that NIXON ANESTOR of
COWPEN ROAD, NASSAU, BAHAMAS is applying to
the Minister responsible for Nationality and Citizenship,
for registration/naturalization as a citizen of The
Bahamas, and that any person who knows any reason
why registration/ naturalization should not be granted,
should send a written and signed statement of the facts
within twenty-eight days from the 30th day of April 2008
to the Minister responsible for Nationality and Citizenship,
P.O.Box N- 7147, Nassau, Bahamas.

NOTICE

Election for president on Friday 2nd
May 2008 from 10:00 am - 6:00 pm at
Police Headquaters. All members of
the Association and The Retired
Police Officers Association will be
eligible to vote.












NOTICE



NOTICE PUBLIC NOTICE

NOTICE is hereby ‘given that DONNEL ST. VIL of
BALLS ALLEY, NASSAU, BAHAMAS is applying to the
Minister responsible for Nationality and Citizenship, for
registration/naturalization as a citizen of The Bahamas,
and that any person who knows any reason why
registration/ naturalization should not be granted, should
send a written and signed statement of the facts within
twenty-eight days from the 30th day of April 2008 to
the Minister responsible for Nationality and Citizenship,
P.O.Box N- 7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that ELYSEE ARTY of #84
WASHINGTON STREET, NASSAU, BAHAMAS is
applying to the Minister responsible for Nationality and
Citizenship, for registration/naturalization as a citizen
of The Bahamas, and that any person who knows any
reason why registration/ naturalization should not be
granted, should send a written and signed statement
of the facts within twenty-eight days from the 23rd day
of April 2008 to the Minister responsible for Nationality
and Citizenship, P.O.Box N- 7147, Nassau, Bahamas.





NOTICE is hereby given that RONELL VILBURN of

‘GOLDEN ISLE OFF CARMICHAEL ROAD, P.O. BOX

SS-6156, NASSAU, BAHAMAS is applying to the
Minister responsible for Nationality and Citizenship, for
registration/naturalization as a citizen of The Bahamas,
and that any person who knows any reason why
registration/ naturalization should not be granted, should
send a written and signed statement of the facts within
twenty-eight days from the 30th day of April 2008 to
the Minister responsible for Nationality and Citizenship,
P.O.Box N- 7147, Nassau, Bahamas.

Established Bahamian Company in Construction,
Service and Retail
Is looking to hire an energetic and ambitious Bahamian person as

MANAGER

Salary plus incentive scheme. Also possible share
purchase option. Reply in writing with resume

“MANAGER”, P.O. Box CB-11541





SU a





INTENT TO CHANGE NAME BY DEED POLL
The Public is hereby advised that |, PATRICIA ELAINE
CAPRON of PO. Box N-7940, Nassau, Bahamas, intend to
change my name to TRISHA ELAINE LARODA. If there are
any objections to this change of name by Deed Poll, you
may write such objections to the Chief Passport Officer,
P.O.Box N-742, Nassau, Bahamas no later than_ thirty
(30) days after the date of the publication of this notice.





For Global Shipping Line

Applicants must have:
* Prior shipping experience
¢ Knowledge of shipping industry
¢ Excellent oral & written skills
¢ Strong negotiation‘kills
Written applications should be addressed to
P.O. Box CB-12762 (Suite #223)

West Bay Street Shopping Centre
Nassau, The Bahamas





PAGE 10B, WEDNESDAY, APRIL 30, 2008

Banco Votorantim S.A. -
Nassau Branch

Financial Statements at
December 31, 2007
and Report of Independent Auditors

PRICEWATERHOUSE( COOPERS

PricewaterhouseCoopers
Providence House

East Hill Street

P.O. Box N-3910

Nassau, Bahamas

Website: www.pwe.com
E-mail: pwebs@bs.pwe.com
Telephone (242) 302-S300
Facsimile (242) 302-5350

INDEPENDENT AUDITORS’ REPORT
To the Board of Directors of Banco Votorantim S.A. — Nassau Branch

We have audited the accompanying financial statements of Banco Votorantim S.A. — Nassau
Branch (the Branch), which comprise the balance sheet as of December 31, 2007, and the income
statement, statement of changes in due to Head Office and cash flow statement for the year then
ended, and a summary of significant accounting policies and other explanatory notes.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements
in accordance with International Financial Reporting Standards. This responsibility includes:
designing, implementing and maintaining internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to
fraud or error; selecting and applying appropriate acco: nting policies; and making accounting
estimates that are reasonable in the circumstances.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with International Standards on Auditing. Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance whether the financial statements are free from material misstatement. —

An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors’
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditors consider
internal control relevant to the entity’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An
audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.

Opinion

In our opinion, the accompanying financial statements present fairly, in all material respects, the
financial position of the Branch as of December 31, 2007, and its financial performance and its
cash flows for the year then ended in accordance with International Financial Reporting
Standards. ,















THE TRIBUNE _

Banco Votorantim S.A. - Nassau Branch

Statement of Changes in Due to Head Office
Expressed in thousands of U.S. dollars





Due to Retained
Head office earnings Total
Balances at December 31,
2005 250,000 122,872 372,872
Net income for the year - 45,986 45,986
Balances at December 31,
2006 250,000 168,858 418,858
Net income for the year - 22,597 22,597
Balance at December 31,
2007 250,000 - 191,455 441,455
Cash Flow Statement
at December 31, 2007
Expressed in thousands of U.S. dollars
2007 2006
Cash flows (used in) from operating activities .
Interest received 165,375 190,072
Interest paid (337,256) (311,926)
Other income received 445 298
Net trading gain/loss 176,679 187,880
Other payments from operating activities (15,527) (27,731)
Net cash (used in) from operating activities before
changes in operating assets and liabilities (10,284) 38,593
(Increase) decrease in operating assets
Securities purchased under resale agreements (9,848) 68,722
Securities held-for-trading (684,948) 663,776
Loans and advances 103,187 (82,246)
Credit collateral 110,650 (244,250)
Other assets (1,027) (10,476)
Purchase of fixture, furniture and equipments (107) -
Increase (decrease) in operating liabilities
Demand deposits (147) 151
Linked deposits (9,602) 569
Credit linked notes (86,239) 25,033
Time deposits — customers 91,242 (137,660)
Certificate of deposits — customers 409,589 (128,328)
Securities sold under repurchase agreements 86,807 (300,315)
Other liabilities (94,188) . 13,633

Net cash flows used in operating activities

(94,915) ___ (92,804)

Cash flows from (used in) financing activities





; Equity linked notes 19,408 14,578
fo Seliacsal Funds borrowed 140,770 (69,966)
ee Cone Net cash flows from (used in) financing activities 160,178 (55,388)

Chartered Accountants . . : ar

Natsai Bahamas Cash flows from investing activities

March 27, 2008 Securities held-to-maturity et 58,120

Banco Votorantim $.A. - Nassau Branch Net increase (decrease) in cash and cash equivalents 166,020 (90,072)

Balance Sheet al Dacember 34 Cash and cash equivalents at beginning of year 321,604 41 1,676

Expressed It thous s } : eae

Expressed in thougands of UiS. dollars | Cash and cash equivalents at end of year 487,624 321,604

| Cash and cash equivalents are composed of: : HONB As
Cash and demand deposits. : a8 3,889 5,527
Due from banks -— Interest bearing deposits 483,735 316,077
; 487,624 __321,604
: Notes to the Financial Statements
; at December 31, 2007
~ Expressed in thousands of U.S. dollars
F Ie and BouOMent :
wm — ment 1 Incorporation and Background Information
& Wt
Bs $286 Piper Banco Votorantim S.A. - Nassau Branch (the “Branch") has been registered in the
3a s ‘. Commonwealth of The Bahamas and is authorised to operate under a branch banking license
M4 issued on February 20, 2002 by the Central Bank of The Bahamas to Banco Votorantim
2 aureornents 3 S.A.(the “Bank”), a Brazilian bank which is 99.88% owned by Votorantim Finangas S.A.
#h
38
$8 The Branch's operations, which complement those of Banco Votorantim S.A., its Head Office,
include banking services, advisory, investment and trading in international financial markets. A
significant portion of the «ssets of the Branch comprises investments in Brazilian capital
markets.
‘ The registered office of the Branch is located at Saffrey Square Building, Suite 204, Bay Street,
; ‘ ere Nassau, Bahamas. A related party provides administrative and accounting services to the
j mie eee Branch.
AND APPROYED FOR ISSUE ON BEHALF OF THE 804m
The financial statements have been approved for issue by the Board of Directors on March 27,
2008.
arc ect rr
Ehactine 2 Summary of Significant Accounting Policies
a Mitton Roberto Pereira
ace, Pepaeaeae vee (a) Statement of compliance

Banco Votorantim S.A. - Nassau Branch The financial statements have been prepared in accordance with International Financial

scome Statenient Reporting Standards ("IFRS") as promulgated by the International Accounting Standards

Year Ended December 31 Board. The preparation of the financial statements in conformity with IFRS requires

Expressed in thousands of U.S. dollars management to make estimates and assumptions that affect the reported amounts of assets

= and liabilities and disclosure of contingent assets and liabilities at the date of the financial
Note 2007 2006 statements and reported amounts of revenues and expenses during the year. Actual results
could differ from those estimates.

Interest income
ee eg = teresenealng 2epoit serie tlt The accounting policies have been consistently applied by the Branch and are consistent with
Securities purchased under resale agreements 6.419 2,427 those used in the previous year, unless otherwise stated.

Securities held-for-trading 92,785 87,324

Securities held-to-maturity 12,336 16,602 (b) Basis of preparation

Loans and advances 25,418 21,362

Other assets - margin collateral 4,911 6.985 The financial statements are presented in United States dollars rounded to the nearest

Total interest income 192.040 ~ 482.419 ‘ thousand. The financial statements have been prepared under the historical cost convention,

ee as modified by revaluation of derivative contracts and financial assets and liabilities held-for-

Interest expense trading.

Linked deposits 476 835
Time deposits - customers 15,971 61,885 In the current year, the Branch has adopted IFRS 7 Financial Instruments: Disclosures and the
Credit linked notes 13,836 19,738 amendments to IAS 1 Presentation of Financial Statements, which became effective for fiscal
Pats ao ee 4,892 1,041 periods beginning on or after 1 January 2007. The impact of the adoption of IFRS 7 and the
Sinise oy reeteci ieee coreenens ze =e ee changes to IAS 1 has been to expand the disclosures provided in these financial statements
Funds borrowed: : 39.666 34.685 regarding the Branch’s financial instruments and management of capital.
Total interest expense 331,018 296,568 The remaining standards and amendments and interpretations to published standards that
. became effective for fiscal periods beginning on or after 1 January 2007 were not relevant to
Net interest expense ___(138,978) ____—(114,449) the Branch’s operations and accordingly did not impact the Branch’s accounting policies or
; g gP

Provision for loan losses 7 (605) (469) financial statements.

Non-interest income (expenses) The application of new standards and amendments and interpretations to existing standards
Net trading gain 12 and 18 176,679 187,880 that have been published but are not yet effective are not expected to have a material impact
Administrative expenses (9,170) (15,883) on the Branch’s accounting policies or financial statements in the period of initial application.

gp Pp
Other income 3,292 349
Other expenses 19 and 21 1,857 3,632 . .
‘i ( ) ___@,682) (c) Financial assets
168,944 168,714
(i) Classification

Net income before tax 29,361 53,796
oxcexbenses 4 6.764 7.810 The Branch classifies its financial assets in the following categories: financial assets at fair
. * * value through profit or loss; loans and receivables; and held-to-maturity financial assets.

22,597 45,986 Management determines the classification of its investments at initial recognition.

Net income for the year



THE TRIBUNE

(i)

(il)

(iii)

(iv)

(v)

(vi)

(vii)

(viii)

Classification (continued)

Financial assets at fair value through profit or loss consist of financial assets held-for-trading
and those designated by management as at fair value through profit or loss at inception. A
financial asset is classified as held-for-trading if acquired principally for the purpose of short-
term profit taking. Derivatives are also categorized as “held-for-trading” unless they are
designated as hedges. All trading derivatives in a net receivable position (positive fair value)
are reported as other assets. All trading derivatives in a net payable position (negative fair
value) are reported as other liabilities.

Loans and receivables are non-derivative financial assets with fixed or determined payments
that are not quoted in an active market. They consist of loans and advances created by the
Bank providing money to a debtor, other than those created with the intention of short term
profit taking, which are classified as held-for-trading.

Held-to-maturity securities are non-derivative financial assets with fixed or determjnable
payments and fixed maturities that the Branch has the positive intention and ability to hold to
maturity. These include certain debt investments.

Recognition

The Branch recognizes financial assets at fair value through profit or loss and held-to-maturity
assets on the date it commits to purchase the assets (trade date). Loans and receivables are
recognised on the settlement date, being the date cash is advanced to the borrowers.

Measurement

Financial instruments are measured initially at fair value, including transaction costs for all
financial assets not carried at fair value through profit or loss.

Subsequent to initial recognition all financial assets at fair value through profit or loss are
measured at fair value, except that any instrument that does not have a quoted market price in
an active market and whose fair value cannot be reliably measured is stated at cost including
transaction costs, less impairment losses.

Loans and advances and held-to-maturity assets are measured at amortized cost using the
effective interest method.

Non-trading financial instruments including margin collateral associated with transactions such
as repos, linked deposits, credit linked notes, time deposits-customers, certificates of deposit-
customers, securities sold under repurchase agreements and funds borrowed, are measured
at historical cost plus accrued interest less impairment losses.

Equity linked notes are debt instruments which are directly linked to embedded derivatives and
are measured at fair value.

Fair value measurement principles

The fair value of financial instruments is based on their last quoted bid price at the
balance.sheet date without any deduction for transaction costs. If a quoted market price
is not available, the fair value of the instrument is estimated using pricing models or
discounted cash flow techniques.

Gains and losses on subsequent measurement

The change in fair value of trading securities and derivative financial instruments, and
gains/losses from their sales are included in "net trading gain/loss" in the income statement.

Derecognition

A financial asset is derecognised when the Branch loses control over the contractual rights that
comprise that asset. This occurs when the rights to receive cash flows from the financial asset
have expired or where the Bank has transferred substantially all risks and rewards of
ownership. A financial liability is derecognised when it is extinguished.

Held-for-trading assets that are sold are derecognised and corresponding receivables from the
buyer for the payment are recognised as of the date the Branch commits to sell the assets.
The Branch uses the specific identification method to determine the gain or loss on
derecognition.

Impairment

Financial assets are reviewed at each balance sheet date to determine whether there is
objective evidence of impairment. If any such evidence exists, the asset's recoverable amount
is estimated and the carrying amount of the asset is reduced to its estimated recoverable
amount either directly or through the use of an allowance account. The amount of the loss is
included in the income statement.

Loans and advances

The recoverable amount of loans and advances is calculated as the present value of the
expected future cash flows, discounted at the instrument's original effective interest rate. Short-
term balances are not discounted. :

Loans and advances are presented net of specific allowances for uncollectibility. Specific
allowances are made against the carrying amount of loans and advances that are identified as
being impaired based on regular reviews of outstanding balances to reduce these loans and
advances to their recoverable amounts. The provision for loan losses is based on an analysis
by management of the outstanding loan portfolio, in order to determine the amount sufficient to
cover estimated losses and takes into consideration the political and economic environment

_ and the specific and general portfolio risks of the countries of origin of the customers.

Increases in the allowance account are recognised in the income statement. When a loan is
known to be uncollectible and all the necessary legal procedures have been completed, the
final loss is determined and the loan is written off.

If in a subsequent period the amount of an impairment loss decreases and the decrease can
be linked objectively to an event occurring after the write-down, the write-down or allowance is
reversed through the income statement.

Specific instruments
Cash and cash equivalents
Cash and cash equivalents in the cash flow statement include cash on hand, cash held on

demand with banks and interest-bearing deposits with banks which have maturities of three
months or less.

‘Securities sold under repurchase agreements/
' purchased under resale agreements

Securities sold under repurchase agreements are treated as collateralized financing
transactions and are carried at their contractual amounts plus accrued interest, as specified in
the respective agreements. It is the Bank's policy to take possession of securities with market
value in excess of the principal amount loaned, plus accrued interest, in order to collateralize
resale agreements. Similarly, the Branch is required to provide securities to counterparties in
order to collateralize repurchase agreements recorded as securities sold under repurchase
agreements. The Branch's agreements with counterparties contain contractual provisions
allowing for additional collateral to be obtained, or excess collateral returned, when necessary.

The difference between the sale and repurchase consideration is recognised on an accrual
basis over the period of the transaction and is included in "Interest expense-securities sold
under repurchase agreements" and "Interest income - securities repurchased under resale
agreements" in the income statement.

Funds borrowed, linked deposits,
credit linked notes and equity linked notes

Funds borrowed, linked deposits and credit linked notes are carried at principal plus accrued
interest using the effective interest rate method.

Equity linked notes are funding linked to embedded derivatives where the counterparty is
assured the receipt the principal amount and the equity payout liability depends on the return
of the underlying equity.

Securities sold short

Securities sold short comprise borrowed stock sold for future delivery and are recorded at fair
value.

Liabilities

Liabilities evidenced by sécurities including demand deposits, time deposits and certificates of

deposit are classified as non-trading liabilities.

(d)

(e)

(f)

(9)

(h)

i)

WEDNESDAY, APRIL 30, 2008, PAGE 11B

Derivative financial instruments

Derivative financial instruments, including futures, forwards and interest and foreign currency
swaps are measured in accordance with the accounting policy for held-for-trading instruments.

The net amount of derivative financial instruments is included in "Other assets" and "Other

liabilities" in the balance sheet.

Segment report

A business segment is a group of assets and operations engaged in providing products
or services that are subject to risks and returns that are different from those of other
business segments. A geographical segment is engaged in providing products or
services within a particular economic environment that are subject to risks and returns
different from those of segments operating in other economic environments.

Foreign currency

Items included in the financial statements of the Bank are measured using the currency of the
primary economic environment in which the entity operates (“the functional currency”). The
financial statements are presented in United States dollars, which is the Bank’s functional and

‘presentation currency.

Transactions in foreign currencies are translated to United States dollars at the foreign
exchange rate prevailing at the date of the transaction. Monetary assets and liabilities
denominated in other than United States dollar currency at the balance sheet date are
translated to United States dollars at the foreign exchange rate ruling at that date. Foreign
exchange differences arising on translation are recognised in "Other income/expenses" in the
income statement.

Interest income/interest expense

Interest income and interest expense are recognised in the income statement using the
effective interest method.

Tax income

Under the current laws of The Bahamas, there is no income, estate, corporation, capital gains
or other tax payable by the Branch. However, the Branch is subject to taxation on gains on
financial instrument operations carried out in other jurisdictions. This amount is recognized on
the income statement.

Net trading gain

Net trading gain/loss includes gains and losses arising from disposals of securities and
changes in the fair value of securities held-for-trading and derivative financial instruments.

Related parties

Related parties comprise the Head Office and affiliated entities which are related on the basis
of common management/ownership and control, as well as directors and officers of tne Head
Office and affiliates. :

Fair value estimates

Fair value estimates are made at a specific point in time, based on relevant market information
and information about the financial instrument. These estimates do not reflect any premium or
discount that could result from offering for sale, at one time, the Branch's entire holdings of a
particular financial instrument. These estimates are subjective in nature and involve
uncertainties and matters of significant judgement and, therefore, cannot be determined with
precision. Changes in assumptions could significantly affect the estimates.

The carrying amounts of the Branch's significant financial instruments, except for securities
held-to-maturity as disclosed in note 6, approximate their fair values because of one or more of
the following reasons:

Immediate or short-term maturity.
Carrying value approximates market value.
Interest rates approximate current market rates.

Due from Banks - Interest-bearing Deposits ;

Balances included in this caption represent deposits placed with banks maturing within three
months of the balance sheet date and earn interest at rates ranging from 3.50 % to 5.02%
(2006 - 5.12% to 5.45%) per annum.

Credit Collateral

Credit collateral represents deposits placed at financial and non financial counterparties in
order to guarantee Credit Default Swap activities. At December 31, 2007 the amount of these
deposits were US$ 461,583 (2006 — US$ 571,301) and earned interest rates ranging from
4.40% to 5.61% (2006 - from 4.40% to 5.46%) per annum.

Securities Purchased under Resale Agreements

The Branch lent funds by purchasing financial instruments under agreements to resell the
instruments at future dates at the same price plus accrued interest at a predetermined rate.
Securities purchased under agreements to resell represent primarily Brazilian Federal
Eurobonds, which were purchased by the Branch with a commitment to resell them. At
December 31, 2007 the amount of these agreements outstanding were US$ 17,918 (2006 —
US$ 8,052) and earned interest rates ranging from 4.00% to 4.25% (2006 - 5.20%) per annum.

Securities

2007 2006
Held-for-trading

Eurobonds 4,131,171 449,814
Bank deposit certificates 265,218 265,221
Brazilian government debt securities 306,367 276,758
Brazilian Brady Bonds - 1,751
Variable income securities 31,761 4,566
Treasury Bills 495 20,592
1,735,012 1,018,702



Held-for-trading securities amounting to US$ 113,506 (2006 — US$ 48,045) have been pledged
as collateral for repurchase agreements as described in Note 13.

2007 2006

Held-to-maturity
Brazilian Federal Republic - maturity January 2007 - 41,887
Brazilian Federal Republic - maturity July 2007 - 58,898
Brazilian Federal Republic - maturity March 2008 130,189 134,630
130,189 235,415

As of December 31, 2007, the fair value of held-to-maturity securities was US$ 125,876 (2006
- US$ 239,217). ,

Loans and Advances

2007 2006

Customers 352,214 456,577
Allowance for losses (1,803) (1,148)
350,411 455,429

Loans and advances are offered by the Bank to its customers to fund operations and import
and export activities. At December 31, 2007, the loans and advances earned interest at rates
ranging from 4.50% to 9.42% (2006 - 5.00% to 10.12%) per annum.

There were no overdue loans in the Branch's portfolio as at December 31, 2007. However, the
Branch recorded a provision for loan losses according to ratings established by Branch Credit
Management considering the historical experience and characteristics of the client.

Reconciliation of movement in allowance account for losses on loans and advances is as
follows:

’



PAGE 12B, WEDNESDAY, APRIL 30, 2008

Loans and Advances (Continued)

10

11

12

13

14

15



2007 2006 —
Balance at January 1 (1,148) (679)
Provision for loan impairment (655) (469)
Balance at December 31 (1,803) (1,148)

Other Assets

Other assets comprise mainly receivable from brokers and dealers of US$ 20,914 (2006 - US$
125,675), margin collateral of US$ 10,426 (2006 - 32,864) associated with transactions such
as ADRs dealing. Margin collateral is held with other banks and earns interest at an average
rate of 4.70% (2006 - 5.00%) per annum.

Linked Deposits

Linked deposits represent funds received as guarantees of transactions with third parties. At
December 31, 2007, they bear interest at a rate of 5.55% (2006 - 4.00% to 8.00%) per annum.

Equity Linked Notes and Credit Linked Notes

Equity linked notes are fixed interest rate instruments with interest rates at December 31,
2007, ranging from 15.02% to 48.89% (2006 — 13.00% to 22.50%) per annum and their
maturity periods are up to March 2008 (2006 — March 2007). At December 31, 2006, credit
linked notes were fixed interest rate instruments with interest rates ranging from 4.85% to
13.17%. Equity linked notes and credit linked notes are instruments by which the Branch is
obligated to return at maturity the principal amount at fair value and principal amount plus
accrued interest, respectively, unless certain specified events occur, in which case, the
counterparty may choose to receive specified securities as settlement of the amount due or,
depending on the event, the Branch may not have to return any amounts to the counterparty
and will receive the full amount of the liability as income.

Time Deposits - Customers
Balances under this caption represent deposits placed with the Branch, which, at December

31, 2007, are based on the Brazilian Interbank Deposit Rate (CDI) plus interest at fixed rates
ranging from 4.00% to 12.37% (2006 - 5.25% to 7.98%) per annum.

Certificate of Deposits - Customers

2007 2006

Global Short-Term Notes 384,347 100,949
Global Medium-Term Notes 1,316,675 1,188,789
__ 1,701,022 1,289,738

Certificate of deposits comprise amounts payable under the Branch's Global Short-term Notes,
which were issued at face value of US$ 390,261 (2006 - US$ 98,830) with annual fixed rates
ranging from 5.20% to 22.00% (2006 - 8.00% to 22.00%) and CDI per annum, at December
31, 2007 and 2006, and the Global Medium-Term Notes, which were issued at face value of
US$ 1,286,332 (2006 - US$ 1,188,009) with annual fixed rates ranging from 4.50% to 17.10%
(2006 - 4.50% to 17.10%) per annum, at December 31, 2007 and 2006.

At December 31, 2007, the Branch's management reflected the portfolio of Global Medium-
term notes at market prices which resulted in a loss of US$ 584 (2006 - US$ 11,583, loss),
being included in "Net trading gain/(loss)" in the income statement.

Securities Sold under Repurchase Agreements

The Branch raises funds by selling financial instruments under agreements to repay the funds
by repurchasing the instruments at future dates at the same. price plus accrued interest at a,
predetermined.rate. Repurchase agreements are commonly used:as a tool for medium-term
financing of interest-bearing assets, depending on prevailing interest rates. Securities sold
under agreements to repurchase represent primarily Brazilian Federal Eurobonds, which were
sold by the Branch with a commitment to repurchase them. At December 31, 2007, these
agreements bore interest at rates ranging from 5.40% to 6.97% (2006 - 6.92% to 6.98%) per
annum.

Assets sold under repurchase agreements were as follows:

Carrying .
Fair value of Amount of Latest
underlying corresponding repurchase Repurchase
assets liabilities date price
At December 31, 2007
Securities held-for-trading 113,506 122,427 01.11.08 99,458
At December 31, 2006
Securities held-for-trading 48,045 32,904 03.12.08 32,019

Funds Borrowed

Funds borrowed comprise amounts advanced by financial institutions, which, at December 31,
2007, bear interest at rates ranging from 5.11% to 8.01% (2006 — 3.07% to 8.16%) per annum.

Other Liabilities

Other liabilities consist of payable to brokers and dealers in the amount of US$ 20,725 (2006 —
US$130,356), sale of collateral pledged to the Branch under resale agreement of US$ 17,827
(2006 — Nil), profit sharing bonus payable US$ 2,465 (2006 — Nil) and other payables in the
amount of US$ 581 (2006 - US$ 18,885). .

Maturity Analysis of Assets and °
Liabilities — current and non-current

The following table summarizes maturities of assets and liabilities, which are based on the
remaining period at the balance sheet dates to the contractual maturity dates:

THE TRIBUNE

2007 2006
Cash and cash equivalents

Within three months 487,624 321,604
487,824 _321,604

Credit collateral .
Within three months 395,796 2,133
Three months to one year 65,787 -
One to five years - 285,875
More than five years - 283,293
461,583 _571,301

Securities purchase under resale agreements
Three months to one year

Securities held-for-trading

Within three months 157,041 33,192
Three months to one year 232,547 ° 4,733
One to five years 924,920 862.276
More than five years 420,504 118,501
1,735,012 1,018,702
Securities held-to-maturity

Within three months 130,189 41,887
Three months to one year - 58,898
One to five years - 134,630
130,189 235,415

17,918 8,052

2007 2006
Loans and advances
Within three months 213,945 229,874
Three months to one year 135,400 147,688
One to five years 1,066 70,310
More than five years - 7,557
350,411 455,429
Other assets
Within three months 50,350 185,996
Three months to one year 79,847 22,575
One to five years 139,798 57,176
More than five years 2,738 5,307
272,733 271,054
Demand deposits
Within three months 4 151
Linked deposits
Within three months 5,780 11,873
Three months to one year - 794
One to five years - 3,385
5,780 16,052
Credit linked notes
Within three months ---—— - 34,794
Three months to one year - 68,836
- 103,630
Equity linked notes
Within three months 35,144 14,803
Time deposits — customers
Within three months 267,210 97,239
Three months to one year 70,790 146,063
338,000 243,302
Certificate of deposits
Within three months 366,762 79,202
Three months to one year 249,337 130,383
~ One to five years 444,650 568,806
More than five years 640,273 511,347
1,701,022 1,289,738
Securities sold under repurchase agreements
Within three months 69,611 21,493 .
Three months to one year 52,676 -
One to five years - 11,411
122,287 32,904
Funds borrowed
Within three months 476,023 271,243
Three months to one year 124,093 102,033
One to five years 145,684 228,594
745,800 601,870
Other liabilities
Within three months 51,208 143,590
Three months to one year 208 293
One to five years 12,371 7,125
More than five years 2,343 9,308
66,130 160,316
17 Related Party Transactions and Balances
-» (Banco Votorantim S.A.; Votorantim-Bank Limited,
Votorantim International Business Limited and Raltic S.A.)
Related party balances outstanding at the year end and related expenses and income for the
year are as follows:
2007 2006
Assets
Securities held-for-trading 642,404 273,483
Loans and advances 81,076 241,477
Derivatives financial instruments 75,578 53,962
Liabilities
Other liabilities 2,531 -
Income statement /
Interest income on due from banks - interest bearing deposits - 424
Interest income on securities held-for-trading 24,034 15,162
Interest income on loans and advances 6,733 8,511
Net trading loss — derivatives 63,446 65,893
Administrative expenses (key management personnel costs) (1) 6,300 13,461
Administrative expenses — other 613 487
Other expenses 1,664 :
Administrative expenses represent technical services rendered by Raltic S.A., an affiliate
during the year in accordance with a service agreement.
(1) During the years 2007 and 2006 the Branch incurred profit sharing expenses payable to
management of the Bank in the amounts of US$ 6,300 and US$ 13,461, respectively.
18 Derivative Financial Instruments

The Branch engages in a variety of transactions in derivative financial instruments in
connection with the management of market risk and proprietary trading activities. The notional
amount of derivative financial instruments is not recorded in the balance sheet and may only
indicate the Branch's degree of use of derivatives. During the year ended December 31, 2007,
the Branch recorded a net gain in the amount of US$ 232,840 (2006 - US$ 213,523) from
derivative instruments, which has been recognized in "Net trading gain" in the income

statement.

The Branch's open positions are summarized as follows:

Notional
Type of instrument amount Fair value
December 31, 2007
Forward - U.S. dollar/Reais 432,000 7,144
Forward - U.S. dollar/Euro . 2,026 61
Futures treasuries 122,493 14,504
Commodities swap 2,224 28
Interest rate swap contract 1,343,840 190,407
Credit default swap 526,000 25,812
First to default swap 565,000 3,253
Derivative financial assets 241,209
Interest rate swap contract 848,850 (12,725)
Commodities swaps 12,933 (810)
Credit default swap 1,069,923 (2,566)
Forward - U.S. dollar/Reais 50,000 (2,250)
Forward - U.S. dollar/Euro 3,894 (155)
Futures treasuries 181,180 (6,026)
Derivative financial liabilities (24,532)
December 31, 2006
Forward - U.S. dollar/Reais 484,106 1,485
Interest rate swap contract 1,330,333 83,780
Credit default swap 611,000 4,870
. First to default swap 510,000 963
Premium options — index 124,400 21,114
Derivative financial assets 112,212
Interest rate swap contract 817,072 (10,733)
Credit default swap 580,000 (69)
Forward - U.S. dollar/Reais 125,000 (13)
Premium options - securities 35,000 (257)

Derivative financial liabilities

(11,072)



THE TRIBUNE

19

(a)

(ii)

(iii)

‘ (b)

(c)

Financial Risk Management

The Branch’s activities expose it to a variety of financial risks and those activities involve the
analysis, evaluation, acceptance and management of some degree of risk or combination of
risks. Taking risk is core to the financial business, and the operational risks are an inevitable
consequence of being in business. The Branch’s aim is therefore to achieve an appropriate
balance between risk and return and minimize potential adverse effects on the Branch’s
financial performance.

The Branch’s risk management policies are designed to identify and analyze these risks, to set
appropriate risks limits and controls, and to monitor the risks and adherence to limits by means
of reliable and up-to-date information systems. The Branch regularly reviews its risk
management policies and systems to reflect changes in market, praducts and emerging best
practices.

Risk management is carried out by a central treasury department (Group treasury) under
policies approved by the Board of Directors. Group treasury identifies, evaluates and hedges
financial risks in close co-operation with the Group’s operating units. The Board provides
written principles for overall risk management, as well as written policies covering specifics
areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivatives financial
instruments and non-derivatives financial instruments.

Liquidity risk

>
This is the risk that the Branch is unable to meet its payment obligations associated with its
financial liabilities when they fall due and to replace funds when they are withdrawn. The
Branch manages its liquidity by matching as far as possible liabilities with assets of similar
maturity periods. The. relevant. maturity groupings based on the remaining period at the
balance sheet date to the contractual maturity date are as follows, considering an
undiscounted cash flow: .

Non-derivative cash flows

As of December 31, 2007

Over five
Up to Up to One to years or
one month one year five years Undated Total
$ $ $ $ $
Demand deposits 4 - : - 4
Linked deposits - 5,829 - - §,829
Equity linked notes 19,510 16,659 - : 36,169
Time deposits — customers 186,747 154,786 ss - 341,533
Certificate of deposits — customers 128,447 594,279 1,105,010 300,124 2,127,860
Securities sold under repurchase agreements 319 125,990 11,865 9,781 147,955
Funds borrowed 27,924 223,325 567,715 3,492 822,456
Other tiabilities 12,655 . 2,921 71 16,552 32,199
Total liabilities 375,606 * 4,123,789 1,684,661 329,949 3,514,005
mee
Total assets 885,827 897,323 1,583,654 770,765 4,137,569
eee
Liquidity assets 510,221 (226,466) (101,007) 440,816 623,564
pee ee ee

As of December 31, 2006

Over five
Up to Up to One to years or
one month One year five years Undated Total
$ $ $ $ $
Demand deposits 151 - : - 151
Linked deposits 6,402 5,978 4,127 - 16,507
Credit linked notes 23,952 94,283 : 118,235
Equity linked notes 2,305 12,884 - - 15,189
Time deposits — customers 161 248,260 - - 248,421
Certificate of deposits — customers 28,890 318,564 1,174,830 102,360 1,624,644
Securities sold under repurchase agreements 21,866 1,055 15,585 6,471 44,977
Funds Borrowed 4,845 102,568 598,220 3,28¢ 708,914
Other liabilities 16,840 12 : 124,357 141,209
Total liabilities 105,412 783,604 1,792,762 236,469 2,918,247
eee
Total assets 730,688 752,822 1,504,615 502,630 3,490,755
meee
Liquidity assets 625,276 (30,782) (288,147) 266,161 572,508
eee eee

Derivative cash flows — settled on a net basis
The Branch’s derivatives that will be settled on a net basis include:

° Foreign exchange derivatives: over-the-counter (OTC) non deliverable forward
e Interest rate derivatives: over-the-counter (OTC) interest rate swap ~

The table below analyses the Branch’s derivative financial liabilities that will be settled on a net
basis into relevant maturity groupings based on the remaining period at the balance sheet to
the contractual maturity date. The amounts disclosed in the table are the contractual
undiscounted cash flows.

_ As of December 31
Over five
Up to Up to One to years or
one month One year five years Undated Total
$ $ $ $ $
Derivatives held for trading — 2007
Foreign exchange derivatives 2,250 - - - 2,250
Interest rate derivatives 1,195 486 22,448 13,304 37,433 °
Derivatives held for trading — 2006
Foreign exchange derivatives - 12 - - 12
Interest rate derivatives 2,716 8,473 13,332 573 25,094

Derivative cash flows — settled on a gross basis
The Branch’s derivatives that will be settled on a gross basis include:

e Foreign exchange derivatives: over-the-counter (OTC) non deliverable forward
The table below analysis the Branch’s derivative financial liabilities that will be settled on a
gross basis into relevant maturity groupings based on the remaining period at the balance

sheet to the contractual maturity date. The amounts disclosed in the table are the contractual
undiscounted cash flows.

As of December 31
Over five
Up to Up to One to years or
one month One year five years Undated Total”
$ $ $ $ $
Derivatives held for trading — 2007
Outflow : 3,201 2,908 71 - 6,180
Inflow 11,035 3,530 : - 14,566
Derivatives held for trading — 2006
Outflow - : - - -
Inflow - 367 : : 367

Market risk
Market risk is managed on a consolidated basis by the Votorantim Group.

Votorantim Group performs operations involving derivative financial instruments, operating in
organized and over the counter markets, in order to ensure the management of market risk
appropriate to the Group policy.

Market risk management is performed centrally, by the administrative area, which is
independent from the operations desk and is also monitored by the Risks Committee,
comprising the board of executive officers and vice presidency of Banco Votorantim S.A.,
which meet periodically to assess the risks and define operating limits. The basic procedures
for risk management are as follows: a) monitoring the adequacy of positions and risks
compared with the limits established by the Risks Committee and legal limits; b) integrity of the
pricing of assets and derivatives; c) evaluation of the market risk using the “Value at Risk”
methodology and by simulating scenarios; d) keeping track of daily results using the back-test
methodology.

The policy for managing market risk also considers the use of derivative financial instruments
for hedging positions to meet the demand of counterparties and as a means of reversing
positions at times of significant oscillations. The operations observe the limits agreed by the
Committee and imposed by legislation, after analyzing credit and liquidity risks, when
appropriate, when they involve the liquidity and credit policies and the decisions of the
respective Committee. : :

Currency risk ‘

The Branch attempts to manage currency and interest rate risks by monitoring transactions to
ensure that the exposure to particular currencies/rates does not exceed established limits.

These limits are established using the Value at Risk - VaR methodology. The Branch also
attempts to reduce currency risks by entering into transactions such as currency forwards.

The Branch's transactions gives rise to foreign currency gains and losses that are recognized
in the income statement. These exposures comprise the monetary assets and monetary
liabilities of the Branch that are not denominated in its functional currency, net of derivative
transactions as of the balance sheet date. These foreign currency exposures denominated in
United States dollars were as follows:

(e)

(f)

(9)

20

21

22

WEDNESDAY, APRIL 30, 2008, PAGE 13B

Reais
____ 2007, 2006
Bank deposits denominated in Reais 12 -
Eurobonds denominated in Reais 127,156 15,085
Swap denominated in Reais 1,470,767 448,704
Forward denominated in Reais 81,054 196,934
Total assets denominated in Reais 1,678,989 660,723
Certificate of deposits denominated in Reais 784,648 515,980
Swap denominated in Reais 610,166 140,135
Time deposits denominated in Reais 374,555 4,023
Total liabilities denominated in Reais 1,769,369 660,138
Net exposure denominated in Reais (90,380) 585
Euro
2007 2006 -
Bank deposits denominated in Euro 23 -
Eurobonds denominated in Euro 1,485 -
Overnight deposits denominated in Euro 2,357 -
Forward denominated in Euro 2,088 108
Total assets denominated in Euro . 5,953 108
Medium Term Notes in Euro 1,989 -
Forward denominated in Euro 4049, :
Total liabilities denominated in Euro 6,038 -

Net exposure denominated in Euro

(85) 108

Foreign currency gain for the year totalled US$ 2,847 is included in “Other income” (2006 -
US$ 165 - loss is included in "Other expenses") in the income statement.



As of December 31, 2007, the Branch has no derivative instruments designated as hedges for
accounting purposes.

Credit risk

Credit risk is the risk that a counterparty will cause a financial loss to the Branch by failing to
perform according to the terms of the contract. Credit exposures arise mainly in lending
activities that lead to loans and advances, and investment activities that bring debt securities
and other bills into the Branch’s asset portfolio. There is also credit risk in off-balance sheet
financial instruments such as -loan commitments. The gross notional or contract amounts of
derivative financial instruments do not represent the Branch's exposure to credit risk. The
Branch's credit risk exposures at any given time is defined as the gross replacement value of
the total receivable balance under outstanding contracts, which are marked to market on a
daily basis. The Branch attempts to minimize its exposure to credit risk by dealing with
creditworthy counter-parties and through the use of various credit monitoring techniques,
including collateral policies and position and credit exposure limits which are based on the
financial condition of the applicable counterparties.

Interest rate risk

Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will
fluctuate becauge of changes in market interest rates. Fair value rate risk is the risk that the
value of a financial instrument will fluctuate because of changes in market interest rates.

The Branch’s interest bearing financial assets and liabilities consist of demand deposits, due
from banks — interest-bearing deposits, credit collateral, securities purchased under resale
agreements, securities held-for-trading, securities held-to-maturity, loans and advances,
derivative financial instruments, demand deposits, linked deposits, credit linked notes, equity
linked notes, time deposits — customers, certificate of deposits — customers, securities sold
under repurchase agreements, funds borrowed and other liabilities: The analysis of assets and.
liabilities disclosed under Note 16 Maturity Analysis of Assets and Liabilities is indicative of the -
analysis of interest bearing financial instruments at carrying value, categorized by maturity
dates. ;

At December 31, 2007, if the Brazilian sovereign yield had been 10 basis points higher/lower
with all other variables held constant the profit would have been US$ 14 (2006 — US$ 897)
lower/higher mainly as a result of decrease/increase in the fair value of fixed income bonds,
borrowings/fundings and derivatives. If the interest rate on Libor (London Interbank Offering
Rate) had been 10 basis point higher/lower with all other variables held constant the profit
would have been US$ 1,504 (2006 — US$ 852) lower/higher mainly as a result of
decrease/increase in the fair value of loans, collaterals and derivatives.

Additionally, the Group applies a “Value at Risk” methodology (VaR) to each trading portfolio to
estimate market risk of position held and the maximum losses expected, which is monitored
daily by Group Treasury.

Capital management

The Branch’s objectives when managing capital are to safeguard the Branch’s ability to
continue as a going concern in order to provide returns-for the shareholders of the Bank and
benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost
of capital. .

In order to maintain or adjust the capital structure, the Branch may adjust the amount of
remittances of earnings to Head Office, reduce or increase the amount due to Head Office or

_ sell assets to reduce financial liabilities.

Currently, the Branch does not have any financial liabilities for which it does not have liquid
assets to match, and its retained earnings are available for distribution to the Head Office, as
and when requested.

Assets and Liabilities Geographical Distribution

The following is a classification of assets and liabilities by geographical location:

_ Percentage

2007 2006
Assets
Brazil 58 51
Caribbean 2 5
United States 21 33
Europe 19 11
100 100
Percentage
2007 = 2006
Liabilities
Caribbean 25 22
United States . 17 23
Brazil 20 20
Europe 38 35
100 100

Other Expenses

Other expenses in the income stafement are composed by mainly commission and fee
expenses in the amount of US$ 1,454 (2006 - US$ 2,545), rendered services expenses in the
amount of US$ 67 (2006 - US$ 1,019) and brokerage fee US$ 336 (2006 — US$ 17).

Tax expenses are mainly represented by withholding tax on financial operations in the
Brazilian financial market, arising from derivative instruments and loans and advances, and
amounting to US$ 6,600 (2006 — US$7,526).

Corresponding Figures

Prior year figures in the income statement and cash flow statement have been reclassified to
ensure comparability and consistency with the financial statement presentation adopted for the
current year.



_PAGE 14B, WEDNESDAY, APRIL 30, 2008

THE TRIBUNE

C ORN ER =} Cornér Bank (Overseas) Limited

_ #8 Ernst & YOUNG

* Chartered Accountants # hon:
«Oy magihi Pace fu



Yee LST



Independent Auditors’ Report to the Shareholder and Directors of
Cornér Bank (Overseas) Limited

We have audited the accompanying consolidated balance sheet of Comér Bank (Overseas)
Limited (the “Bank”), which as at December 31, 2007, and a surumacy of significant accounting
policies and other explanatory notes. :

Management’s Responsibility for the Balance Sheet

Management is responsible for the preparation and fair presentation of the consolidated balance
sheet in accordance with International Financial Reporting Standards. This responsibility
includes: designing, implementing and maintaining internal control relevant to the preparation
and fair presentation of the balance sheet that is free from material misstatement, whether due to
fraud or error: selecting and applying appropriate accounting policies; and making accounting
estimates that are reasonable in the circumstances. ‘ :

Auditors’ Responsibility

Our responsibility is to express an opinion on the balance sheet based on our audit. We
conducted our audit in accordance with International Standards on Auditing. Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance whether the balance sheet is free from material misstatement. ,

An audit invelves performing procedures to obtain evidence about the amounts and disclosures
in the balance sheet. The procedures selected depend on the auutitors’ judgment, including the
assessment of the risks of material misstatement of the balance sheet, whether due to fraud or
error. In muking those risk assessments, the auditor considers intemal control relevant to the
entity’s preparation aod fair presentation of the balance sheet in order to design audit procedures
that are appropriate for the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entity’s internal control. An audit also. includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made
by management, as well as evaluating the overall presentation ofthe balance sheet.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion,

Opinion
In our opinion, the consolidated balance sheet presents fairly, in all material respects, the
financial pasition of the Bank as of December 31, 2007, in accordance with Intemational

Financial Reporting Standards.
Roamer + ft

A member fiem of Emst & Young Gabsl Lamuted

Apsil 14. 2008

Cornér Bank (Overseas) Limited
Consolidated Balance Sheet





December 31, 2007
2007 29)
Assets
Due from banks
Due from banks — sight CHF 46,556,543 CHF 43,397,973
Due from banks — time 648,211,614 622,173,460
Loans and advances, net (notes 3 and 4) 10,300,832 14,563,882
Accrued interest income 2,924,955 2,629,704
Other assets (note 5) 1,377,928 622,559
Total assets ‘CHF 709,371,872 CHF 683,387,578
Liabilities and shareholder’s equity
Liabilities
Due to banks
Due to banks - sight , CHF 27,894 CHF = 147,828
Due to banks - time 1,851,701 75,345
Due to customers (note 4)
Sight deposit 38,738,332 56,944,670
Time deposit : 573,084,052 542,809,276
_ Accrued interest 2,133,535 1,747,097
_.. Other liabilities — . 1,859,811 835,201
“Total liabilities *'* 617,695,325 602,559,417
Shareholder’s Equity (note 6)
Share capital
Authorized, issued and fully paid
10,000 shares of CHF 1,000 par value 10,000,000 10,000,000
Retained earnings - 81,676,547 70,828,161
Total shareholder’s equity 676,54 80,828,161
Total liabilities and shareholder’s equity CHF 709,371,872 CHF 683,387,578
Commitments and Contingencies (note 9)
Approved By The Board:
Dr. Paolo Cornaro Director Dr. Marco Cant Director



See accompanying notes.

Cornér Bank (Overseas) Limited
Notes to Consolidated Balance Sheet
December 31, 2007

1. Corporate Information

Cornér Bank (Overseas) Limited (the “Bank”) was incorporated under the laws of the Commonwealth of The Bahamas on
December 13, 1995. It is a wholly owned subsidiary of Cornér Banca, Lugano, Switzerland (the Parent). The Bank is
authorized to perform banking activities under The Bahamas Banks and Trust Companies Regulation Act 2000 to provide
offshore private banking and trust services. The principal activities of the Bank consist of providing banking and investment
management services.

The registered office of the Bank is located at Bayview House, East Bay Street, Nassau, Bahamas.

The consolidated balance sheet of the Bank for the year ended December 31, 2007, was authorized for issue by the Directors
on April 14, 2008. : ‘

2. Summary of Significant Accounting Policies

Statement of compliance ‘
The consolidated balance sheet has been prepared in accordance with International Financial Reporting Standards.

Basis of preparation

The consolidated balance sheet was prepared under the historical cost convention, except for financial assets and liabilities and
loans and advances, which are measured at fair value. The consolidated balance sheet is presented in Swiss Francs (CHF).
Swiss Francs reflect the economic substance of the operations and circumstances of the Bank.

Basis of consolidation .

The accompanying consolidated balance sheet comprises the balance sheet of the Bank and its wholly-owned subsidiaries,
C.B. Management Ltd. and C.B. Strategy Ltd. The financial statements of the subsidiaries were prepared using consistent
accounting policies. :

The subsidiaries were incorporated in the British Virgin Islands on January 23, 1997. The activities of the subsidiaries are to
serve as nominee shareholders, incorporator and director of International Business Companies on behalf of the Bank and its
customers.

The subsidiaries are fully consolidated from the date on which control is transferred to the Bank. Control is achieved where
the Bank has the power to govern the financial and operational policies of an entity so as to obtain benefits from its activities.

Adoption of IFRSs during the year :

The Bank has adopted the following new and amended IFRSs and IFRIC interpretations during the year. Adoption of these
revised standards and interpretations did not have any effect on the financial performance or position of the Bank. They did
however give rise to additional disclosures, including in some cases, revisions to accounting policies.

° IFRS 7
° TAS]

Financial Instruments: Disclosures
Amendment — Presentation of Financial Statements

The principle effect of the changes to the disclosures in the consolidated financial statements is as follows:

IFRS 7 Financial Instruments: Disclosures

This standard required disclosures that enable users of the financial statements to evaluate the significance of the Bank’s
financial instruments and the nature and extent of risks arising from those financial instruments. The new disclosures are
included throughout this:consolidated balance sheet. While there has been no effect on the financial position, comparative
information has been revised where needed.

IAS | Amendment — Presentation of Financial Statements
This amendment requires the Bank to make new disclosures to enable users of this balance sheet to evaluate the Bank’s
objectives, policies and processes for managing capital.

Foreign currency transactions and translations

The Bank’s consolidated balance sheet is presented in Swiss Francs, which is the Bank’s functional and presentational
currency, however it transacts business in other currencies. Monetary assets and liabilities denominated in other currencies are
translated into Swiss Francs at the rate of exchange in effect on the date of the consolidated balance sheet.

Financial assets
Financial assets in the scope of IAS 39 are classified as financial assets at fair value through profit or loss; loans and
receivables; held to maturity investments; or as available-for-sale financial assets, as appropriate. The Bank determines the
classification of its financial assets at initial recognition and re-evaluates this designation at each financial year end. All

’ financial assets are measured initially at their fair value.

All regular way purchases and sales of financial assets are recognised on the trade date, being the date that the Bank commits to
purchase or sell the asset. Regular way transactions require delivery of assets within the timeframe generally established by
regulation or convention in the market place. The subsequent measurement cf financial assets depends on their classification.

At December 31, 2007 the Bank’s primary financial assets are represented by loans and advances and due from banks. After
initial measurement, loans and advances and due from banks are measured as follows:

Loans and advances and due from banks

Loans and advances and due from banks are financial assets with fixed or determinable payments and fixed maturities that are
not quoted in the active market. They are not entered into with the intention of immediate or short-term resale and are not
classified as, available-for-sale or financial assets designated at fair value through profit or loss. After initial measurement, loans
and advances and due from banks are subsequently measured at amortized cost using the effective interest rate method less
allowance for impairment, if any.

Impairment and uncollectibility of financial assets

An assessment is made at each balance sheet date to determine whether there is objective evidence that a financial asset may be’
impaired. If such evidence exists;the carrying amount of the asset is reduced to its estimated recoverable amount either directly
or through the use of an allowanc€%iccount. :

Loans and advances and due from banks

The Bank reviews its problem loans and advances at each reporting date to assess whether an allowance for impairment should
be recorded. In particular, judgment by management is required in the estimation of the amount and timing of future cash flows
when determining the level of allowance required. Such estimates are based on assumptions about a number of factors such as
the Bank’s past credit loss experience, known and inherent risks in the portfolio, adverse situations that may affect the
borrower’s ability to repay the estimated value of the underlying collateral and current economic conditions. In a subsequent
year, the amount of the recognized impairment loss is increased or reduced by adjusting the allowance account. If a future
write-off is later recovered, the recovery is credited to the ‘Credit loss’ expense.

Derecognition of financial assets and financial liabilities
Financial assets
A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is derecognized
where:
* the rights to receive cash flows from the asset have expired, or
° the Bank has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and
* either (a) the Bank has transferred substantially all the risks and rewards of the asset, or (b) the Bank has neither
transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Bank has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, and
has neither transferred nor retained substantially all the risks and, rewards of the asset nor transferred control of the asset, the
asset is recognized to the extent of the Bank’s continuing involvement in the asset. Continuing involvement that takes the form
of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum
amount of consideration that the Bank could be required to repay.
Financial liabilities
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. Where an
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original
liability and the recognition of a new liability. :

Derivative financial instruments

The Bank only engages in the purchase and sale of derivative financial instruments such as forward foreign exchange contracts
on behalf and on the instructions of its clients. It is currently not the Bank’s policy to trade in derivative financial instruments
for its own account.

The fair value of forward exchange contracts is calculated by reference to current forward exchange rates for contracts with
similar maturity profiles. Derivatives are accounted for in other assets and other liabilities.

Leases
Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases.

Cash and cash equivalents +
Cash and cash equivalents consist of due from banks at sight and due from banks at time with original maturities of three

months or less.

Fixed assets

All fixed asset acquisitions are expensed when incurred.

Taxation

There are no income taxes imposed on the Bank in the Commonwealth of The Bahamas.

Fiduciary activities
The Bank provides custody and administration of investments, investment management and advisory services to third parties.
Those assets that are held in a fiduciary capacity are not included in this consolidated balance sheet.

Provisions

Provisions are recognized when the Bank has a present obligation (legal or constructive) as a result of a past event, and it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.

~ Employee benefits

The Bank offers a defined contribution plan in which the plan’s assets are managed by a committee elected by members of the
plan. The pension plan is funded by its members as a fixed percentage of members’ salaries and contributions are matched by
the Bank.

IFRIC and IFRS Interpretations not yet effective
The Bank has not adopted the following IFRSs and IFRIC Interpretations that have been issued but are not yet effective:

The following IFRS and IFRIC Interpretations, are not expected to have any implications for the Bank when they become
effective. ‘

¢ IAS 23 Borrowing Costs Capitalization.

¢ IFRS 8 Operating Segments

¢ IFRIC 11 Group and Treasury Share Transactions with Employees
¢ IFRIC 12 Public-to-Private Service concession arrangements.

¢ IFRIC 13 Loyalty Award Credits.

° IFRIC 14 Assets of Defined Benefit Schemes.

3. Loans and Advances

Loans and advances are stated net of total provisions of CHF173,754 (2006 - CHF168,735) and generally are repayable in less
than a year. There were no loans written-off during the year nor were there any recoveries of arrears previously written-off.
Loans and advances represent fixed term loans, overdrafts on current accounts, and withdrawn credit lines. Loans are
collateralized primarily by cash deposits and marketable securities,

No loans to employees were included in loans and advances during the year (2006 - CHF 146,270). At December 31, 2007
there was one loan where interest was suspended in the amount of CHF173,754 (2006 - CHF168,735).

4. Customers by Domicile
At December 31, due from customers, classified by domicile of the borrower, are as follows (in thousands of CHF):

2007 2006

Bahamas and the Caribbean CHF 429 CHF = 1,175
Europe 1,275 3,384
Central and North America 8,545 10,005
Other 2 :
CHF 10,301 CHF 14,564

At December 31, customiers’ deposits, classified by domicile of the depositors, are as follows (in thousands of CHF):



2007 2006
Central and North America CHF 229,839 CHF 227,451 +
Bahamas and the Caribbean 263,114 229,465
Europe 73,427 101,984
Other 45,442 40.854
CHF 611,822 CHF 599,754
5. Other Assets
At December 31, other assets are comprised of the following (in thousands of CHF).
2007 2006
Fair value of derivatives - CHF 1,190 CHF -
Other 188 623
CHF = 1,378 CHF 623

6. Capital

The Bank maintains an actively managed capital base to cover risks inherent in the business. The adequacy of the Bank's capital
is monitored using, among other measures, the rules and ratios established by the Central Bank of The Bahamas.

During the past year, the Bank had complied in full with all its externally imposed capital requirements.

Capital management

The primary objectives of the Bank’s capital management are to ensure that the Bank complies with externally imposed capital
requirements and that the Bank maintains strong credit ratings and healthy capital ratios in order to support its business and to
maximize shareholders’ value.

Since incorporation it has been the Bank’s practice to fully retain profits as a means of reinforcing these objectives, and no
change in capital policies, objectives or a process are not contemplated, nor is a dividend expected to be declared.

The Bank will however continue to manage its capital structure and make any necessary adjustments to it in the light of changes
in economic conditions and the risk characteristics of its activities.

Regulatory capital consists of share capital and retained earnings including current year profit. At December 31, 2007 the
required capital of the Bank was CHF12,064,491 (2006: CHF11,877,557). At December 31, 2007 the actual capital of the Bank
was CHF91,676,547 (2006: CHF80,828,161).



THE TRIBUNE

7, Related Party Balances
All balances with the Parent and affiliated banks controlled by the Parent are shown in this consolidated balance sheet as
affiliates. These balances at December 31 are analyzed as follows (in thousands of CHF):



2007 2006
Parent bank:
Assets
Due from banks - sight CHF 28,483 CHF 27,282
Due from banks — time 122,297 134,401
Accrued interest and other assets 2,020 924
Total due from parent CHF 152,800 CHF 162,607
Liabilities
Due to banks — sight CHF - CHF = 123
Accrued interest and other liabilities 1 2
Total due to parent , CHF | CHF 125
Affiliated banks:
Assets
Due from banks — sight CHF 16,381] CHF 15,937
Due from banks — time 527,304 487,773
Accrued interest and other assets 2,029 1,952
Total due from affiliates (CHF 545,714 CHF 505,662
Liabilities
Due to banks — time CHF 1,880 CHF 75
Accrued interest and other liabilities 50. 106
Total due to affiliates CHF 1,930 CHF 181

8. Employee Pension Plan
The Bank has a defined contribution pension plan managed and held by an external third-party that covers the majority of its
employees. Contributions to the plan amounted to CHF51,754 in 2007 (2006 - CHF51,166).

9. Commitments and Contingencies

Derivative financial instruments ‘

The Bank enters into forward currency contracts solely as part of its client-related asset management activities or upon
customer instructions. Forward currency contracts are contracts to purchase and to sell foreign currencies at specific rates of
exchange on specific dates in the future. Risk arises from the potential inability of counterparties to perform under the terms
of the contracts (credit risk) and from fluctuations in the foreign exchange rates (market risk).

The contract amounts of open forward currency contracts on December 31, (in thousands of CHF) were as follows:

2007 2006
Commitments to purchase CHF 100,314 CHF 160,719
Commitments to sell CHF 100,319 CHF 160,704

The contract amounts of these instruments reflect the extent of the Bank’s involvement in forward currency contracts
undertaken on behalf of and at the risk of its customers.

Guarantees

The Bank makes available to its customers guarantees which may require that the Bank makes payments on their behalf in
the event of fulfillment or non-fulfillment of pre-established conditions. At December 31, 2007, the Bank was contingently
liable for CHF91,847,400 (2006 - CHF96,002,692) as a result of financial guarantees and letters of credit issued on behalf of
its customers. These guarantees are fully secured by clients’ assets held with the Bank or affiliates.

Lease agreement

The Bank entered into a new ten-year operating lease with Bayview House Limited that commenced on February 1, 2007. As
of December 31, 2007, CHF230,327 (2006 — CHF 230,917) in expenses were attributable to the current lease. The future’
estimated minimum annual rentals under this lease agreement on December 31, 2007 (in thousands of CHF) are as follows:

Within one year CHF = 148
After one year but not more than five years 774
More than five years 510

CHF 1,432

10. Risk Management

General

Risk is inherent in the Bank’s activities but it is managed through a process of ongoing identification, measurement and
monitoring, subject to risk limits and other controls. The process of risk management is critical to the Bank’s ongoing
profitability and each individual within the Bank is accountable for the risk exposures related to their responsibilities. The
Bank is exposed to credit risk, liquidity risk and market risk. The Bank is also subject to general operating risks.

The independent risk control process does not include business risks such as changes in the environment, technology and
industry. These risks are managed through the Bank’s strategic management processes.

Risk management structure

The Bank’s risks are measured using a method which retlects both expected and unexpected losses. The risk measurements
are based on historical experiences, adjusted for changes in the banking industry and other environmental factors. The Bank
also operates within the limits provided by its Parent and its regulators. The Board of Directors is ultimately responsible for
identifying and controlling risks such as credit, interest rate and liquidity. In addition, the Bank monitors its aggregate risk
exposure across all risks types and activities.

Risk mitigation as

The Bank uses derivatives and other instruments to manage exposures related to the portfolio management activities executed
on behalf of its clients. For its own account, the Bank does not hold any trading or investment positions in financial
instruments such as derivatives or other types of tradable securities (e.g. stocks, bonds, options). The Bank only lends to
established customers and only when fully collateralized by liquid assets.

Credit risk

Credit risk is the risk that a customer or counterparty will be unable or unwilling to meet a commitment that it has entered
into with the Bank. The Bank manages credit risk associated with deposit assets by making placements primarily with other
affiliate banks but may also do so with financial institutions contained within the confirmed aggregation as established by the
group. Customer credit is monitored on a daily basis by management.

Credit risk arises principally from financial assets. The Board of Directors is responsible for setting book, portfolio and
individual credit limits and these are monitored on an ongoing intra-day basis.

Maximum exposure to credit risk without taking account of any collateral and other credit enhancements

The table below shows the maximum exposure to credit risk for the components of the consolidated balance sheet, including
derivatives on December 31. The maximum exposure is shown gross, before the effect of mitigation through the use of
collateral agreements.





2007 2006
Due from banks CHF 694,768 CHF. 665,571
Loans and advances 10,301 14,563
Accrual interest income 1,378 2,630
Other assets 2,925 623
Total 709,372 683,387
Contingent liabilities (note 9) 91,847 96,002
Commitments (note 9) 235 245
Total 92,082 96,247
Total credit risk exposure CHF 801,454 CHF 779,634

Additional information on the maximum credit exposure related to the classes of financial assets noted above may be found
in the specific notes related to each of the assets. :

Risk concentrations of the maximum exposure to credit risk
The maximum credit exposure to any client or counterparty as at December 31, 2007 before taking account of any credit
enhancements is the amounts due from banks which are held with the Bank as presented on the consolidated balance sheet.

The amount and type of collateral required depends on an assessment of the credit risk of the counterparty. Guidelines are
implemented regarding the acceptability of types of collateral and valuation parameters.

Risk concentrations of the maximum exposure to credit risk (continued)

Management monitors the market value of collateral, requests additional collateral in accordance with the underlying
agreement, and monitors the market value of collateral obtained during its review of the adequacy of the allowance for
impairment losses.

Group transactions and balances are guaranteed by the Parent.

Credit quality per class of financial assets __

The credit quality of financial assets is managed by the Bank using internal credit ratings which are based on the Asset
Classification Rating System according to the Guidelines for the Management of Credit Risks issued by the Central Bank of
The Bahamas for loans and advances. .

The Bank’s loan portfolio at December 31, 2007 is fully collateralized and is classified as standard grade. At December 31,
2007, there were no loans that were considered past due and impaired except for the loan noted in note 3.

Credit risk exposure for each internal risk rating .

The purpose of credit rating is to provide a simple, but effective and ongoing system of credit risk gradation by which
relative credit worthiness of borrowers may be identified and accordingly the level of credit enhancements, degree of
monitoring, frequency of reviews, level of provisioning can be determined and pricing can be determined. Credit rating
would reflect both the likelihood of default and any possibility of financial loss suffered in the event of default.

The Bank conducts an impairment assessment on each of its loans monthly. The main considerations for the loan impairment
assessment include whether any payments of principle or interest are overdue by more than 90 days or there are any known
difficulties in cash flows of counterparties or the quality of collateral. The Bank addresses impairment on an individual basis,
assessing each individual credit facility. The Bank has no history of defaults.

Liquidity risk management

Liquidity risk is the risk that the Bank will encounter difficulty in realizing assets or otherwise raising funds to meet
commitments. The Bank monitors expected cash outflow on a daily basis. Its policy throughout the year has been to ensure
liquidity by maintaining at all times sufficient high quality liquid assets to cover expected net cash outflow.

The contractual maturities of assets, liabilities and shareholder’s equity have been determined on the remaining period at the
balance sheet date to the contractual maturity date. The maturity profile is monitored by management to ensure adequate
liquidity is maintained. It is the policy of the Bank to match all deposits with a placement of similar maturity (and
vice-versa) thus ensuring the lowest possible liquidity risk profile. The Bank depends on commitments from its Parent for
funding in emergency situations. The Bank is also subject to regulatory guidelines related to liquidity requirements.

LUGANOLOCARNOLAUSANNELUXEMBORGMILANNASSAUASCONA CASSARATEMASSACNOPARADISOPREGASSONA

anit yen

/

WEDNESDAY, APRIL 30, 2008, PAGE 15B

The table below summarizes the maturity profile of the Bank’s assets, liabilities and shareholder's equity, presented in order of
maturity as at December 31, (in thousands of CHF): :



















2007
More Non-
. Due on Less than 3-12 than 12 ‘maturity
demand 3 months months —_ months items Total
Assets
Due from banks - sight CHF 46,556 CHF - CHF - CHF - CHF - CHF 46,556
Due from banks - time - 549,305 26,692 72,215 - 648,212
Loans and advances - 1,404 613 8,284 - 10,301
Other assets - - - 1,378 - 1,378
Accrued interest income 6 834 326 1,759 - 2,925
Total assets CHF 46,562 CHF 551,543 CHF 27,631 CHF 83,636 CHF - CHF 709,372
Liabilities and
shareholder’s equity
Due to banks - sight CHF 28 CHF - CHF - CHF - CHF - CHF 28
Due to banks - time - 1,239 447 166 - 1,852
Due to customers - sight 38,738 - - - - 38,738
Due to customers - time - 482,015 26,692 64,377 - 573,084
Accrued interest 1,860° - - - - 1,860
Other liabilities 947 838. 326 22 - 2,133
Shareholder’s equity : : : : 91,677 91,677
Total liabilities and
sharéholder’s equity CHF 41,573 CHF 484,092 CHF 27,465 CHF 64,565 CHF 91,677 CHF 709,372
2006
More Non-
Due on Less than 3-12 thani2 Maturity
Demand 3 months months months Items Total
Assets ,
Due from banks - sight CHF 43,398 CHF - CHF -CHF - CHF - CHF 43,398
Due from banks - time - 578,577 27,719 15,877 - 622,173
Loans and advances - 146 - 14,418 - 14,564
Accrued interest income 2,630 - - - - 2,630
Other assets 622 - - - - 622
Total assets CHF 46,650 CHF 578,723 CHF 27,719 CHF 30,295 CHF —- CHF 683,387
Liabilities and
sharholder’s equity
Due to banks - sight CHF: 148 CHF - CHF - CHF - CHF - CHF 148
Due to banks - time - 75 - - - 75
Due to customer - sight 56,945 - - - - 56,945
Due to customer - time - 499,213 27,719 15,877 - 542,809
Accrued interest 1,747 - - - - 1,747
Other liabilities 835 - - - - 835
Shareholder’s equity = - 7 - 80,828 80,828
Total liabilities and ; ;
shareholder’s equity CHF 59,675 CHF 499,288 CHF 27,719 CHF 15,877 CHF 80,828CHF 683,387

All contingent liabilities and commitments are due on demand.

Market risk

Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of changes in
market variables such as interest rates or foreign exchange rates. The Bank does not have any trading positions. All positions
are managed and monitored using sensitivity analyses. The Bank has no significant concentrations of market risk.

Interest rate risk

Exposure to interest rate risk is the risk that arises where there is an imbalance between rate and non rate-sensitive assets and
liabilities. It is the Bank’s policy to match all deposits with a placement of similar maturity (and vice-versa) thus essentially
negating this risk. The Bank has performed an interest rate sensitivity analysis and determined the impact due to change in
interest rates was immaterial as any gains in the matched assets were offset by decreases in the matched liabilities.

Currency risk

Foreign currency risk is the risk that the value of a financial instrument will fluctuate because of changes in foreign exchange
rates. The Bank’s foreign exchange exposure arises from providing services to customers. The Bank’s policy is to hedge
against foreign exchange risk by matching currency liabilities with currency assets. Currency exposure is monitored on a daily
basis and reviewed by management.

In addition to the Bank’s policies regarding currency risk, regulatory guidelines of the Central Bank of the Bahamas also
requires the monitoring of financing assets and financial liabilities based on currency to limit the exposure to foreign currency
fluctuations in the market.

The following is an analysis of assets, liabilities and shareholder’s equity on December 31, 2007 by currency (in thousands of
CHF): ; bs



2007

rr USD CHF EURO OTHERS TOTAL
Assets : ‘

Due from banks - sight CHF 9,146 CHF 18,319 CHF 15,753 CHF 3,339 CHF 46,557

Due from banks - time 120,542 142,240 353,493 31,936 648,211

Loans and advances 4,492 ° 299 3,856 1,654 10,301

Accrued interest income - 2,925 - - 2,925

Other assets 647 611 75 45 1,378
Total assets CHF 134,827 CHF 164,394 CHF 373,177 CHF 36,974 CHF 709,372

Liabilities and shareholder’s
equity

Due to banks - sight CHF - CHF - CHF - CHF 28 CHF 28
Due to banks - time - - 612 1,240 1,852
Due to customers - sight 12,127 4,193 18,828 3,590 38,738
Due to customers - time 120,542 67,220 353,386 31,936 573,084
Accrued interest 626 1,136 64 34 1,860
Other liabilities - 2,134 - - 2,134
Shareholder’s equity - 91,676 - - 91,676

Total liabilities and shareholder’s
equity | CHF 133,295 CHF 166,359 CHF 372,890 CHF 36,828 CHF 709,372
2006
USD CHF EURO OTHERS TOTAL

~ Assets

Due from banks — sight CHF 7,967 CHF 12,902 CHF 19,610 CHF 2,919 CHF 43,398
Due from banks — time 130,579 112,545 345,093 33,956 622,173
Loans and advances 809 5,338 7,795 622 14,564
Accrued interest income - 2,630 - - 2,630
Other assets 48 563 ll 622

Total assets CHF 139,355 CHF 133,463 CHF 373,061 CHF 37,508 CHF 683,387

Liabilities and shareholder’s
equity

Due to bank - sight CHF 24 CHF - CHF - CHF 124 CHF 148
Due to bank - time - - - 715 75
Due to customers - sight 14,645 8,319 30,295 3,686 56,945,
Due to customers - time 129,360 37,590 342,522 33,337 542,809
Accrued interest - 1,747 - - 1,747
Other liabilities - 804 31 - 835
Shareholder’s equity - 80,828 - - 80,828
Total liabilities and shareholder’s

equity CHF 144,029 CHF 129,288 CHF 372,848 CHF37,222 CHF 683,387

Excessive risk concentrations

Concentrations arise when a number of counterparties are engaged in similar business activities, similar geographic regions or
have similar economic features which may cause their ability to meet contractual obligations to be similarly affected by
changes in economic, political and other conditions. Concentrations indicate the relative sensitivity of the Bank’s performance
to developments in a particular industry or geographic region.

In order to avoid excessive concentrations of risk, the Bank’s policies and procedures include specific guidelines to focus on
maintaining diversified portfolios. In addition to the Bank’s own policies and procedures, regulatory guidance related to the
concentration of risks must also be adhered to.

The distribution of assets and liabilities at December 31, (in thousands of CHF) by geographic region was as follows:
2007



2006

Assets Liabilities Assets Liabilities

Switzerland CHF - 152,117 CHF 29,163 CHF 161,645 CHF 44,779
Western Europe * 544,853 46,420 507,303 57,435
Bahamas & Caribbean 3,791 266,339 14,439 459,491
Other 8.611 275,773 : 40,854
CHF — 709,372 CHF 617,695 CHF 683,387 CHF 602,559

* excluding Switzerland

Operational risk

Operational risk is the risk of loss arising from systems failure, human error, fraud or external events. When controls fail to
perform, operational risks can cause damage to reputation, have legal or regulatory implications, or lead to financial loss. The
Bank cannot expect to eliminate all operational risks, but through a control framework and by monitoring and responding to
potential risks, the Bank is able to manage the risks. Controls over these risks include effective segregation of duties, access,
authorization and reconciliation procedures, staff education and assessment processes, including the use of internal controls.
The Bank carries out a regular review of all operational areas to ensure operational risks are being properly identified,
controlled and reported. Contingency plans are in place to achieve business continuity in the event of serious disruptions to
business operations.

11. Fair Value of Financial Instruments

Financial instruments utilized by the Bank include recorded assets and liabilities, as well as items that principally involve
off-balance sheet risk. The majority of the Bank’s financial instruments are either short-term in nature or have interest rates
that automatically reset to market on a periodic basis. Accordingly, the estimated fair value is not significantly different from
the carrying value for each major category of the Bank’s recorded assets and liabilities.



PAGE 16B, WEDNESDAY, APRIL 30, 2008

CAXSUTUAN KPMG Telephone 24? 29° 200/

PO Box N 123 Fax 242 393 17/2
Montague Sterling Centre Internet www kprag com bs
East Bay Sureet

Nassau, Bahamas

INDEPENDENT AUDITORS' REPORT

To: the Sharehoider
Cuscatlan International Bank & Trust Limited

We have audited the accompanying balance sheet of Cuscatlan International Bank & Trust
Limited (‘the Bank") as at December 31. 2007, and a summary of significant accounting policies
and other expianatory notes (together “the financial statement’).

Management's Responsibility for tne Financial Statement

Management is responsible for the preparation and fair presentation of this financial statement in
accordance with International Financial Reporting Standards ("IFRS"). This responsibility includes:
designing, implementing and maintaining internal controi relevant to the preparation and fair
presentation of the financial.statement that is free from material misstatement, whether due to
fraud or error, selecting and applying appropriate accounting policies; and making accounting
estimates thai are reasonable in the circumstances.

Auditors’ Responsibility

Our responsibility is to express an opinion on this financial statement based on our audit. We
conducied our audit in accordance with International Standards on Auditing. Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance wheiher the financial statement is free of material misstatement.

An audit involves performing procedures to abtain audit evidence about the amounts and
disclosures in the financial statement. The procedures selected depend on our judgment,
inciuding the assessment of the risks of material misstatement of the financial statement, whether
due to fraud or error. In making those risk assessments, we consider internal control relevant to
the Bank’s preparation and fair presentation of the financial statement in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Bank’s internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates, if
any, made by management, as well as evaluating the overall presentation of the financial
statement.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a

desis for our audit opinicn.
Opinion

In our opinion, the financial statement presents fairly, in all material respects, the financial position
of the Bank as at December 31, 2007 in accordance with IFRS.

Emphasis of Matter

Without qualifying our Opinion we emphasize that this financial Statement does not comprise a
complete set of financial statements prepared is'sccorgance with IFRS. Information on results of
Operations, cash flows and changes in equity is necessary to obtain a complete understanding of
the financial position, performance and cash flows of the Bank.

KPMG
Nassau, Bahamas
March 7, 2008

CUSCATLAN INTERNATIONAL BANK & TRUST LIMITED
Balance Sheet

December 31, 2007, with corresponding figures for 2006
(Expressed in United States dallars)







Notes ‘2007 2006
ASSETS. - ace
Cash and cash equivalents - Demand 5 $ 18,344,644 " (9,814,031
- Time : 2,250,000 12,640,944
4&5 20,594,644 22,454,975
Loans and advances to banks 6 11,334,516 5,000,000
Loans and advances to customers 4&6 217,449,321 204,313,127
Investments a 2,578,622 28,549,580
Accrued interest receivable 4,6&7 1,026,306 1,800,582
Accounts receivable 4&8 71,597 21,652
Furniture and equipment, net 9 161,921 249,775
Assets held for sale 10 2,476,896 3,583,580
Intangible assets 11 964,906 677,853
Other assets 96,517 119,278
Total assets ; $ 256,755,246 266,770,402
£8, IY BUS
LIABILITIES AND SHAREHOLDER'S EQUITY
Liabilities:
Demand deposits - Customers 4&12 $ 22,648,773 24,286,328
Demand deposits - Financial Entities 4&12 4,316,982 2,540,008
Time deposits - Customers 4&12 148,489,202 176,638,127
Time deposits - Financial Entities 12 11,524,315 9,550,000
Loans payable 4&13 44,799,417 28,059,127
Accrued interest payable 4 1,637,159 1,461,361
Accounts payable and other liabilities 4 565,110 415,087
Total liabilities 233,980,958 242,950,038
Shareholder's Equity:
Share capital: authorized, issued and fully paid
14,000 shares of $1,000 each 14,000,000 14,000,000
Unrealized (loss)/gain on investments 3 (344) 35,856

Retained earnings : 8,774,632 9,784,508

; 22,774,288 23,820,364
Commitments 14

ay LAL
Total liabilities and shareholder's equity $ 256,755,246 266,770,402

See accompanying notes to balance sheet.

This balance sheet was approved on behalf of the Boards of Directors on March 7, 2008
by the following:

1 lly

rico Bauer
Difector



stian Schneider
Director




‘

. CUSCATLAN INTERNATIONAL BANK & TRUST LIMITED

Notes to Balance Sheet

December 31, 2007
(Expressed In United States dollars)



1. . Reporting entity

Cuscatlan International Bank & Trust Limited (“the Bank”) was incorporated under the laws
of the Commonwealth of the Bahamas and is licensed by the Central Bank of the Bahamas
to engage in banking business. The Bank is a subsidiary of Grupo Financiero Cuscatlan de
Costa Rica, S.A (“the Group”) a Costa Rican company, which is wholly owned by
Corporacién Accionaria UBC, S.A. incorporated in Costa Rica, a 100% subsidiary of
Citibank Overseas ‘Investment Corporation (COIC), which is a direct subsidiary of Citibank,
NA. The Bank's registered office is located at 5th Floor Citigroup Building Thompson
Boulevard, P.O. Box N-9307 Nassau, Bahamas. A related party provides administrative
services to the Bank. The Bank is primarily involved in investment, corporate and retail
banking.

In July 2007, the Central Bank of Costa Rica solicited action plans from financial groups for
scaling back their offshore banking operations, without interrupting the financial system in
that country. The intent was to eliminate the offshore entities, whict: make it more difficult to
manage monetary policy.

The action plan of the Group (the parent company) proposes the elimination of the Bank by
first reducing its assets and liabilities with clients. This will be done by realizing assets in
the normal course of business and/or transferring/selling assets to related parties, settling
liabilities and then merging with Banco Cuscatlan de Costa Rica, S.A., which operates in
Costa Rica. This proposal was presented to the legal authorities in both Costa Rica and
The Bahamas and is in the process of being implemented.

THE TRIBUNE

As a result, the Bank intends to cease conducting banking business and return its banking
license to The Central Bank of The Bahamas by June 30, 2008.

Basis of preparation

(a)

(b)

(c)

(d)

Statement of compliance

The Bank's balance sheet has been prepared in accordance with International
Financial Reporting Standards (“IFRSs”).

In preparing this balance sheet, during the current year the Bank adopted IFRS 7
Financial Instruments: Disclosures and the amended IAS 1: Presentation of
Financial Statements. The adoption of IFRS 7 and the amendments to IAS 1
impacts the type and amount of disclosures made in this balance sheet, but has no
impact on the reported profits or financial position of the Bank. In accordance with
the requirements of these standards, the Bank has provided corresponding
information.

Basis of measurement

The balance sheet has been prepared on the historical cost basis except for
available-for-sale financial assets which are measured at fair value.

Management has determined that despite the decision to cease banking business
by June 30, 2008 and-merge with-Banco Cuscatlan de Costa Rica, S.A., the Bank
expects to recover the carrying value of all of its assets and settle its liabilities in full,
as they become due. In addition, because of the nature of the merger with Banco
Cuscatlan de Costa Rica, S.A., management has determined that there are no
matters that require adjustments to be made to the carrying value of assets and
liabilities at December 31, 2007 relating to the decision to cease banking business.
Accordingly, the basis of measurement described above is considered. to be
appropriate for the preparation of this balance sheet.

Functional and presentation currency

This balance sheetis presented in United States dollars, which is the Bank's
functional currency.

Use of estimates and judgments

The preparation of the balance sheet requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and the
reported amounts of assets and liabilities. Actual results may differ from these
estimates. Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognized in the period in which the
estimate is revised and in any future periods affected. .

In particular, information about significant areas of estimation uncertainty and
critical judgments in applying accounting policies that have the most significant
effect on the amounts recognized in the balance sheet are included in the following
notes:

e Fair value measurement — note 3(d) (iv) and note 22
e Impairment — note 3(d) (vii) and note 3(j) :
e Classification of financial instruments — Note 3 (d) (i)

Significant accounting policies

The accounting policies set out below have been applied consistently to all periods
presented in this balance sheet. .

(a)

(b}

Foreign currency
* The Bank's functional currency is the United States dollar. At December 31, 2007
and 2006, the Bank had no financial assets or liabilities denominated in currencies
other than the United States dollar.
Financial instruments
(i) Classification
Financial instruments include financial assets and financial liabilities.
_ In classifying financial assets in each of the categories described below, the
‘Bank has determined that it meets the description or criteria set out in the
accounting policies.
Financial liabilities include demand deposits, time deposits, loans payable,
accrued interest payable, accounts payable and other liabilities.
(ii) Recognition
The Bank initially recognizes loans and advances, deposit liabilities and loans
payable on the date that they are originated. All other financial assets and
liabilities are initially recognized on the trade date at which time the Bank
becomes a party to the contractual provisions of the instrument.
(iii) Measurement

e

Financial instruments are measured initially at fair value plus, with the
exception of financial assets or financial liabilities at fair value through profit
or loss and available-for-sale investments, transaction costs that are directly
attributable to the acquisition or issue of the financial asset or financial
liability. Transaction costs on financial assets and financial liabilities at fair
value through profit or loss and available-for-sale investments are expensed
immediately, while on other financial instruments they are amortized.

Subsequent to the initial recognition, financial assets classified as loans and
receivables and held-to-maturity investments are carried at amortized cost
using the effective interest rate method, less impairment losses, if any.
Financial liabilities are carried at amortized cost. Any sale or reclassification
of a significant amount of held-to-maturity investments not close to their
maturity. would result in the reclassification of all held-to-maturity investments
as available-for-sale, and prevent the Bank from classifying investment
securities as held-to-maturity for the current and the following two financial

years.

Subsequent to initial recognition, available-for-sale investments are carried ’
fair value and the change in the fair value is recognized directly in equity until
an asset is considered to be impaired, at which time the loss is recognized in
profit or loss. When the asset is sold, collected, or otherwise disposed of, the
cumulative gain or loss recognized in equity is transferred to profit or loss.

(iv) Fair value measurement

The determination of fair values of investments is based on quoted market: :
prices for similar assets traded in active markets. Unquoted equity securities
whose fair value cannot be reliably measured are carried at cost less ©
impairment. For all other financial instruments fair values are determined by
using valuation techniques, such as net present value and discounted cash
flow methods. Some or all of the inputs into these models may not be market
observable, and are derived from market prices or rates or are estimated
based on assumptions. When entering into a transaction, the financial
instrument is recognized initially at the transaction price, which is the best
indicator of fair value, although the value obtained from the valuation model
may differ from the transaction price.

(v) Derecognition

The Bank derecognizes a financial asset when the contractual rights to the
cash flows from the asset expire, or when the Bank transfers the rights to
receive the contractual cash flows of the financial asset in a transaction in
which substantially all the risks and rewards of ownership of the financial
asset are transferred. Any interest in transferred financial assets that is
created or retained by the Bank is recognized as a separate asset or liability.

The Bank derecognizes a financial liability when its contractual obligations
are discharged, cancelled or expired.

The Bank also derecognizes certain assets when it charges off balances
deemed to be uncollectible.



THE TRIBUNE

(vi) Offsetting

Financial assets and liabilities are set off and the net amount presented in the
balance sheet when, and only when, the Bank has a legal right to set-off the
amounts and intends either to settle on a net basis or to realize the asset and
settle the liability simultaneously.

(vii) Identification and measurement of impairment

(b)

At each balance sheet date the Bank assesses whether there is objective
evidence that financial assets not carried at fair value through profit or loss
are impaired. Financial assets are impaired when objective evidence
demonstrates that a loss event has occurred after the initial recognition of the
asset, and that the loss event has an impact on the future cash flows on the
asset that can be estimated reliably.

The Bank considers evidence of impairment at both a specific asset and a
collective level. All individually significant financial assets are assessed for
specific impairment. All significant assets found not to be specifically impaired
are then collectively assessed for any impairment that has been incurred but
not yet identified. Assets that are not individually significant are then
collectively assessed for impairment by grouping together financial assets
(carried at amortized cost) with similar risk characteristics.

Objective evidence that financial assets (including equity securities) are
impaired can include default or delinquency by a borrower, restructuring of a
loan or advance by the Bank on terms that the Bank would not otherwise
consider, indications that a borrower or issuer will enter bankruptcy, the
absence of an active market for a security, or other observable data relating
to a group of assets such as adverse changes in the payment status of
borrowers or issuers in the group, or economic conditions that correlate with
defaults in the group.

Impairment losses on assets carried at amortized cost are measured as the
difference between the carrying ‘amount of the financial assets and the
present value of estimated cash flows discounted at the assets’ original
effective interest rate. When a subsequent event causes the amount of an
impairment loss to decrease, the impairment loss is reversed. Impairment
losses on available-for-sale investment securities are recognized by -
transferring the difference between the carrying amount and current fair value
from equity to profit or loss. When a subsequent event causes the amount of
an impairment loss on an available-for-sale securities to decrease, the
impairment loss is reversed.

Financial instruments, continued

(viii) | Derivative financial instruments

(c)

(d)

(e)

(

(9)

(h)

(i)

Derivatives held for risk management purposes are measured at fair value in
the balance sheet. The treatment of changes in their fair value depends on
their classification into the following categories: fair value hedge, cash fiow
hedge, net investment hedge, otner non trading derivatives, and embedded

derivatives.

The Bank has not designated a qualifying hedge relationship, therefore all

changes in its fair values of derivatives are recognized immediately in profit or
loss. :

2

Loans

Loans are stated at the amount of outstanding principal and are presented net of
specific and general allowances for collectibility.

Specific allowances are made against the carrying amount of loans that are
identified as being impaired based on regular reviews of outstanding balances to
reduce these loans to their recoverable amounts. General allowances are
maintained to reduce the carrying amount of portfolios of similar loans to their
estimated recoverable amounts at the balance sheet date. The expected cash flows
for portfolios of similar assets are estimated based on previous experience and
‘considering the credit rating of the underlying customers and late payments of
interest or penalties. Once a loan is determined to be uncollectible, all necessary

_ legal procedures have been completed, and the final loss has been quantified, the

loan is written off.

Assets held for sale

Bs
Assets held for sale represent assets. assigned to the Bank in payment of loans.
The Bank has legal title to these assets, which primarily comprise property. These
assets are recorded at the lower of cost and net realisable value. Net realisable
value is determined based on the selling price of the asset net of direct selling
costs.

4
Furniture and equipment

Furniture and equipment are stated at cost less accumulated depreciation and
impairment losses. Depreciation is calculated on the straight-line basis over the
estimated useful lives as follows:

10 years
5 years

Furniture and equipment
Computer hardware

Cost of renewals and improvements are added to furniture and equipment.
Intangibles

Software is amortized from the date it is available for use. Software acquired by the
Bank is stated at cost less accumulated amortization and accumulated impairment
losses. The estimated useful life of software is five years.

Impairment of non-financial assets

The carrying amounts of the Bank’s non-financial assets are reviewed at each
reporting date to determine whether there is any indication. of impairment. If any
such indication exists, then the asset's recoverable amount is estimated. An
impairment loss is recognized if the carrying amount of an asset or its cash-
generating unit exceeds its recoverable amount. A cash-generating unit is the
smallest identifiable asset group that generates cash flows that are largely
independent from other assets and groups. The recoverable amount of an asset or
cash-generating unit is the greater of its value in use and its fair value less costs to
sell. In assessing value in use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset.
Impairment losses recognized in prior periods are assessed at each reporting date
for any indications that the loss has decreased or no longer exists. An impairment
loss is reversed if there has been a change in the estimates used to determine the
recoverable amount. An impairment loss is reversed only to the extent that the
asset's carrying amount does not exceed the carrying amount that would have been
determined, net of depreciation or, amortization, if no impairment loss had been
recognized. :

Related parties
A party is related to the Bank if:
(a) Directly, or indirectly through one or more intermediaries, the party:
e Controls, is controlled by, or is under common control with, the Bank;
° Has an interest in the Bank that gives it significant influence over the Bank;

(b) The party is a member of the key management personnel, including directors
and officers of the Bank or its shareholder and parent companies:

(c) The party is a close member of the family of any individual referred to in (b)
above.

(d) The party is an entity that is controlled, jointly controlled or significantly
influenced by, or for which significant voting power in-such entities resides with,
directly or indirectly, any individual referred to in (b) or (c) above.

New standards and interpretations not yet adopted

A number of new standards, amendments to standards and interpretations are not
yet effective for the year ended December 31, 2007, and have not been applied in
preparing this balance sheet.

e IFRS 8 Operating Segments introduces the “management approach” to
segment reporting. IFRS 8, which becomes mandatory for the Bank's 2009
balance sheet, will require the disclosure of segment information based on the
internal reports regularly reviewed by the Bank's Chief Operating Decision
Maker in order to assess each segment's performance and to allocate
resources to them.

4..

(i)

oa Cte ig TMU ie VU, BU, TTI TF

e Revised IAS 23 Borrowing Costs removes the option to expense borrowing
costs and requires that an entity capitalize borrowing costs directly attributable
to the acquisition, construction or production of a qualifying asset as part of the
cost of that asset. The revised IAS 23 will become mandatory for the Bank's
2009 balance sheet and is not expected to have any impact on the balance
sheet.

e IFRIC 11~Bank and Treasury Share Transactions requires a share-based
payment arrangement -in which an entity receives goods or services as
consideration for its own equity instruments to be accounted for as an equity-
settled share-based payment transaction, regardless of how the equity
instruments are obtained. IFRIC 11 will become mandatory for the Bank's 2008
balance sheet, with retrospective application required. It is not expected to
have any impact on the balance sheet.

New standards and interpretations not yet adopted, continued

e IFRIC 12 Service Concession Arrangements provides guidance on certain
recognition and measurement issues that arise in accounting for public-to-
private service concession arrangements. IFRIC 12, which becomes mandatory
for the Bank's 2008 balance sheet, is not expected to have any impact on the
balance sheet.

e IFRIC 13 Customer Loyalty Programmes addresses the accounting by entities
that operate, or otherwise participate in, customer loyalty programmes for their
customers. It relates to customer loyalty programmes under which the
customer can redeem credits for awards such as free or discounted goods or
services. IFRIC 13, which becomes mandatory for the Bank’s 2009 balance
sheet, is not expected to have any impact on the balance sheet.

e IFRIC 14 The Limit on a Defined Benefit Asset, Minimum Funding
Requirements and their Interaction clarifies when refunds or reductions in future
contributions in relation to defined benefit assets should be regarded as
available and provides guidance on the impact of minimum funding
requirements (MFR) on such assets. It also addresses when a MER might give
rise to a: liability. IFRIC 14 which becomes mandatory for the Bank’s 2008
balance’ sheet, with retrospective application, is not expected to have any
impact on the balance sheet.

Balances with related parties

Related party balances are included in the following accounts.

2007 2006

ASSETS ‘
Cash and cash equivalents $ 14,929,130 280,269

Loans and advances to customers

Directors 88,266 406,712
Entities owned by directors 393,513 1,684,379
Investments 2,250,000 s =:
Accrued interest receivable 2,780 9,097
_..Accounts receivable 59,053 oe.



$ 17,722,742 —*2,380,457
80ST

LIABILITIES
Demand deposits
Affiliates $ 4,316,982 2,570,674
Directors 5,294 147,731
Entities owned by directors - 30,823
Time deposits
Directors ' 200,573 1,631,908
Entities owned by directors - -
Accrued interest payable t 190,868 19,470
Loans payable 39,000,000 -

__Accounts payable and other liabilities 1,725 a
$ 43,715,442 4,400,606
———— A 4,400,606_

During the current year, the Bank purchased loans from a related party for $22,007,044
(2006: $3,088,992).

te

Cash and cash equivalents

Cash balances earn interest at a rate between 2.42% and 5.01% (2006: 3.60% and 4.94%)
per annum. ,

Loans

Loans outstanding by country of the borrower are as follows:
—_—_————





2007 2006
Percentage Percentage
Amount of total loans Amount of total loans
Costa Rica $ 215,085,434 92.00% 177,003,892 83.00%
Honduras 8,568,290 4.00% 10,954,721 §.00%
British Virgin Islands - - 10,315,877 5.00%
Guatemala 6,622,474 3.00% 4,818,750 2.00%
El Salvador 1,200,152 0.50% 4,662,642 2.00%
Bahamas - - 4,300,000 2.00%
Panama 1,350,000 0.50% 1,496,390 1.00%
232,826,350 100.00% 213,552,272 100.00%
Less: Provision for possible 7
loan losses (3,996,298) (4,131,245)
Deferred loan fees (46,215) (107,900)

$ 228,783,837 209,313,127
—————----a quiere
At December 31, 2007, interest rates on loans range between 4.25% and 16.00% (2006:

4.25% to 14.00%) per annum. Accrued interest receivable amounted to $995,573 (2006:
$1,021,184).

In 2007, syndicated loans with a carrying value of $5,152,858 (2006: $8,072,554) are

secured by properties that were appraised at a value approximating the carrying amount of
the loans.

In 2007, a total of $114,146,016 (2006: $91,707,500) corresponds to loans extended to
economic interest groups, of which $481,779 (2006: $2,091,091) is for loans to related

parties, as disclosed in note 4, including loans fully-collateralized amounting to $88,608 in
2006.

The movement in the allowance for loan losses is shown below.

-__ eee“

2007 2006



OO 2006
Balance at beginning of year $ 4,131,245 4,554,427
Loans charged-off . (199 790)

Provision reversal

134,947 223,392
Balance at end of year $ 3,996,298 4,131,245
o 1 a SS eS

In 2007, the provision reversal corresponds to loans where the previous delinquency status
improved during the current year. In 2006, the provision reversal represents an excess of

the provision for possible loan losses, as a result of additional security that was assigned to
the Bank from a loan in default.

For the years ended December 31, 2007 and 2006, there were no provision recoveries from
loans written-off.

Investments

Investments comprise the following:



es 2007 2006
Available-for-sale $ 2,578,622 1 5,468 340
Held-to-maturity ; - 13,081,240



$ 2,578,622 28,549,580
_ 8,949,580

* Available-for-sale investments are shown below.
2007 2006

Investments in securities issued by foreign Central
Governments, with interest at 9.34% (2006: 3.63%) per
annum, maturing in 2009 (2006: maturing in 2007), cost
$594,696 (2006: cost $1,979,598) $

Investments in securities issued by foreign financial entities,
with interest at 3.00% (2006: 2.63% and 7.50%) per
annum, maturing in 2008 (2006: 2007 and 2008), cost
$1,984,270 (2006: cost $13,496,203) _ 1,985,440 13,489,940

~ $ 2,578,622 15,468,340

593,182 1,978,400





Ce a ed

Held-to-maturity investments are shown below:

2007 2006
Investments in securities issued by foreign financial entities,
with interest between 9.05% and 9.40% per annum,
maturing in 2009 $ - 10,000,000
Investments in securities issued by foreign Central
Governments, with interest at 6.55%, maturing in 2014 - 2,035,825 .
Investments in securities issued by foreign non-financial
entities, with interest at 7.10% per annum, maturing in
2013 : 1,045,415
$ : 13,081,240



Accrued interest receivable on investments amounted to $51,204 (2006: $779,398).

During 2007, the Asset and Liability Committee, following Citibank NA’s policies, authorized
the reclassification of held-to-maturity investments with a carrying value of $13,072,817 to
the available-for-sale category. These investments were then sold resulting in a gain of
$501,973.

At December 31, 2006, the fair value of held-to-maturity investments was:$13,814,845.

At December 31, 2006 included in investments in securities issued by foreign financial
entities is a security with a carrying value of $5,000,000 which has been pledged as security
for certain loans payable as described in note 13.

Accounts receivable

Accounts receivable comprise the following:





2007 2006

Employees $ - 11,382

Reimbursable insurance costs 5,406 6,857

Service fees 6,763 2,604

Customers - 1,672

Due from related parties 59,053 -

Other 1,643 -

Loan fees and commissions 490 -

73,355 22,515

Less: Provision for doubtful accounts (1,758) (863)

Accounts receivable, net $ 71,597 21,652

Furniture and equipment, net
Furniture and equipment comprises the following:
2007
Furniture and Computer

: uipment hardware Totat



Cost:
At January 1, 2007 $ 561,824 752,979 4,314,803
Additions _ - 1,206 1,206
Disposals (18,640) (12,818) (31,458)
At December 31, 2007 543,184 741,367 1,284,551
Depreciation: ~ .
At January 1, 2007 379,180 _ 685,848 1,065,028
Charges for the year 35,861 51,449 87,310
Disposals 17,204 12,504) (29,708)
At December 31, 2007 397,837 724,793 1,122,630
Net book value $ 145,347 16,574 161,921
2006
. Furniture and Computer

. uipment hardware - Total

Cost: .

At January 1, 2006 $ 603,070 1,471,337 2,074,407
Disposals __ 41,246 718,358) 759,604
At December 31, 2006 561,824 752,979 1,314,803

Depreciation: .

“At January 1, 2006 (374,110) (1,288,490) (1,662,600) -
Charges for the year (42,871) (109,633) (152,504)
Disposals 37,801 712,275 750,076
At December 31, 2006 (379,180) (685,848) (1,065,028)

Net book value Sek shell en Ses 182,644 ~ 87,131 et 249,778

10. Assets held for sale

Assets held for sale comprise land and buildings assigned to the Bank as a result of loan

defaults.

e

Costs incurred in connection with maintaining the assets held for sale amounted
$255,621 (2006: $583,868). ‘

11. Intangible assets

12.

13.

to

Intangible assets represent computer software. The movement in this account is shown













below.

2007 2006
Cost:
At January 1, 2006 $ 925,873 1,206,210
Acquisitions 477,399 _ 598,104
Disposals and retirements ; - (878,444)
At December 31, 2006 1,403,272 925,873
Accumulated amortization:
At January 1, 2007 (248,020) — (1,036,063)
Amortization for the year (190,346) (78,430)
Disposals and retirements : ae 866,473
At December 31, 2007 (438,366) (248,020)
Net balance at December 31, 2006 $ 677,853 170,147
Net balance at December 31, 2007 $ 964,906 677,853

Deposits

. Interest rates paid on these deposits are detailed as follows:

Sst nner

Ss
: Between 0.40% and ©

2.50% per annum.
Between 2.13% and
8.75% per annum.

Demand deposits and current accounts

Time deposits

Loans payable

Loans payable are detailed as follows:

2007 2006

Between 0.25% and
1.25% per. annum.

Between 2.13% and
9.50% per annum.

__-_->-:———o nn



2007 2006
Year of Face Carrying Face Carrying
7 maturity value amount ss svalue amount
Loans with financial entities:
Bearing interest between
4.78% and 5.19% per annum. 2008 $ 39,029,571 39,029,571 - -
Bearing interest of 5.47% per
annum. 2010 4,000,000 4,000,000 ~ -
Bearing interest between ;
5.82% and 5.87% per annum. 2007 - - 9,856,000 9,850,000
43,029,571 43,029,571 9,850,000 9,850,000
Other loans 2007 - - 5,000,000 5,000,000
Due to banks - Letters of
* credit issued 2008 1,769,846 1,769,846 13,209,127 13,209,127
Total loans payable $ 44,799,417 44,799,417 28,059,127 28,059,127
“Due to banks - Letters of credit issued”, represent amounts due to international banks as a result of

those banks advancing funds to suppliers of the Bank’s customers in connection with letters of

credit.

At December 31, 2007, the loans payable to related parties (see note 4) are unsecured. At
December 31, 2006, the loans payable were unsecured, except for the American Express

International loan, which was secured by an investment in a foreign financial entity with
value of $5,000,000 at December 31, 2006 as described in note 7.

a carrying



14,

15.

16.

Commitments and contingencies

ie MmwmBowc ”

Letters of credit include exposure to credit risk in the event of non performance by the customer.
The Bank's credit policies and procedures to approve credit commitments and financial guarantees

are the same as those for granting loans.

The Bank has guaranteed letter of credit totalling

$257,945 (2006: $5,129,737). The Bank does not expect to incur losses as a result of these

commitments.

Assets and liabilities classified by geographical area

Significant assets and liabilities analysed by geographical area are detailed as follows:

2007

Central America,

Panama andthe —_ United States of

ttle ee CAFibbean America Other Total

ASSETS

Cash and cash

equivalents — ay $ 374,896 20,184,428 35,320 20,594,644

Investments 593,182 - - 1,985,440 2,578,622

Loans 232,826,350 ee - 232,826,350

LIABILITIES

Deposits 179,361,315 7,456,303 161,654 186,979,272

Loans payable : - 44,769,846 - 29,571 44,799,417

2006
Central America,
Panama and the United States:
Caribbean of America Other Total

ASSETS

Cashandcash

equivalents . $ 2,780,269 11,651,560 8,023,146 22,454,975
_ Investments 3,081,240 10,999,300 14,469,040 28,549,580

Loans 198,936,395 -, 14,615,877 213,552,272

LIABILITIES

Deposits 206,906,030 5,663,679 444,754 213,014,463

Loans payable 5,000,000 22,209,127 __- 850,000 28,059,127

Maturity of significant assets and liabilities

The contractual maturities of significant categories of assets and liabilities are summarized
below.

; Maturity (days) : 2007 2006

Assets: .
Cash and cash equivalents a $ 18,344,644 9,814,031
ime
Up to 1 month 2,250,000 998,430
. From 1 to 3 monihs 214,642,514
. 20,594,644 22,454,975
tnvestments Up to 7 month $98,350 1,748,828
From 1 to 3 months - 8,801,572
From 8 months to 4 year 987,090 3,952,380.

Over 4 year 593,182 14,046,800
2,578,622 28,549,580

Up to 1 month

Loans 32,036,176 25,433,035
From 1 to 3 months 36,004,044 26,556,308
From 3 to 6 months 38,320,386 35,245,061
From 6 months to 4 year 47,318,044 - 57,306,359
: Over 1 year 79,147,700 _ 69,011,509
; 232,826,350 213,552,272
Liabilities: : .

Demand and time deposits Up to. 1 month 41,896,785 58,442,445
From 1 to 3 months 50,893,824 48,925,457
From 3 to 6 months ‘$9,602,960 37,612,351
From 6 months to 1 year 32,447,871 25,064,015
Over 1 year 2,137,832 _ 42,970,195
/ 186,979,272 213,014,463
Loans payable Up to.4 month _ 8,632,750 §,041,715
: From 1 to 3 months 3,500,000 9,137,076
From 3 to 6 months 30,000,000 13,528,400
From 6 months to 1 year: - 351,942

. Over 4 year 2 667

aed : 3 A4,799,417 28,059,127

A financial instrument is any contract that gives rise to both a financial asset of one
enterprise and a financial liability or equity instrument of another enterprise. The Bank's
balance sheet is mainly comprised of financial instruments.

The Bank's Executive Committee and Board of Directors are responsible for establishing
and monitoring risk management policies for financial instruments. For such purposes,
committees have been formed to manage and periodically monitor the Bank's risks, namely

- the Asset and Liability Committee, Credit Committees, and Investment Committee.

The Bank is also subject to the regulations of The Central Bank of The Bahamas with
respect to risk concentration, liquidity, and capital structure, among others.

Credit risk

Credit risk is the risk that the debtor or issuer of a financial asset owned by the Bank will fail
to make payments in a timely manner, in conformity with the agreed terms and conditions.

Exposure to credit risk Is monitored by the Bank on-an ongoing basis through portfolio
Status reports and classification of the credit portfolio. Credit evaluations include periodic
assessments of the customer's financial standing. The Bank's credit manual establishes
policies for extending financing. All credit operations require. prior authorization from the
Bank's Credit Committees.

The maximum exposure to credit risk is represented by the carrying amount of each
financial asset.and un-drawn letters of credit as shown below: ;
2007 2006

Cash ard cash equivalents $ 20,594,644 22,454,975
Loans and advances to customers 217,449,321 204,313,127
Loans and advances to banks 11,334,516 5,000,000
investments 2,578,622 28,549,580
Accrued interest receivable 1,026,306 1,800,582
Accounts receivable 71,597 21,652
Un-drawn letters of credit 257,945 §,129,737

$ 253,312,951 267,269,653
The Bank has a significant concentration of credit risk in Latin America, specifically Costa
Rica, as a result of loans due from entities domiciled in that country. The Bank manages
this risk by periodically analyzing the Costa Rican economic, political, and financial
environments, and their potential impact on business sectors. The Bank also considers the
customer's ability to generate cash flows to meet their loan commitments.

The following tabie analyzes the Bank's credit risk with fespect to loans and measurement







of impairment
ee a
— wn 2007 2006
Individually impaired: a
Class 7 and 6
—!mpairment provision eee 8,268,833
Carrying amount cece ———-{1,954.320) (4,919,013) _
8,560,182 6,449 820
Collectively impaired: ,
Class 1
Class 2 95,308,289 76,292,613
Class 3 1,359,531 20,569,218
Class 4 15,341,615 13,872,695
Class 5 24,319,409 16,756,405
- Class6 73,122,943 52,819,694
Loans with jotiated terms apes 21,584,074
Toss amount ’ 3,180,539
—lmpaitment provision oe 205,075,539
——farrying amount) 2.212.231
— 222,223,654 202,863,308

_Total carrying amount
= $__ 228,783,836 209,313,127 __

individually impaired:

hi i .

paid nu on hese oan, These eons ae a at incl and interest wb
Grading eyater, . are graded 7 to 8 in the Bank's internal credit risk



THE TRIBUNE

Loans with renegotiated terms
Loans with renegotiated terms are loans that have been restructured due to deterioration in

the borrower's financial position and where the Bank has made concessions that it would
not otherwise consider. Once the loan is restructured it remains in this category
independent of satisfactory performance after restructuring.

Allowances for impairment
The Bank establishes an allowance for impairment losses that represents its estimate of

incurred losses in its loan portfolio. The main components of this allowance are a specific
loss component that relates to individually significant exposures, and a collective loan loss
allowance established for groups of homogeneous assets in respect of losses that have
been incurred but have not been identified on loans subject to individual assessment for
impairment.

Write-off policy

The Bank writes off a loan (and any related allowances for impairment losses) when the
Bank determines that the loan 1s uncollectible. This determination is reached after

WEDNESDAY, APRIL 30, 2008, PAGE 198

Liquidity and financing risk

Liquidity and financing risk is the risk that the Bank will be Unable to meet its obligations due
to the unexpected withdrawal of funds by creditors or customers, impairment of loan
portfolio quality, write-down of investments, excessive concentration of liabilities in a single
source, mismatching of assets and liabilities, lack of liquidity of long-term assets matched
with short-term liabilities, etc.

Pursuant to the Guidelines of The Central Bank of The Bahamas, the Bank requires a
liquidity ratio of 20% of deposits. The Bank monitors its liquidity position on a daily basis.
The Bank also analyzes the matching of terms on a weekly basis and strives to minimize
any existing gaps when establishing deposit-taking, financing, and investment strategies.
Decisions that affect liquidity are made by the Asset and Liability Committee.

For purposes of the liquidity ratio, net liquid assets are represented by cash, cash
equivalents, and debt securities for which there is an active liquid market.

The Bank's liquidity ratios are shown below:













amo : ; 2007 2006
considering information such as the occurrence of significant changes in the borrower's
financial position such that the borrower can no longer pay the obligation, or that proceeds At December 34 22.4% 22.2%
from collateral will not be sufficient to pay back the entire exposure. For smaller balance Average for the period 24.0% 23.0%
standardized loans, charge off decisions generally are based on a product specific past due Period high 27.2% 24.7%
status. Period low 22.4% 22.2%
i i it risk relating to loans by sector and , eine en,
The Bank also monitors concentration of credit’ ris ating y : The contractual cash flows of financial liabilities are shown below:
geographical location. An analysis of risk concentration at the date of the balance sheet is .
as follows: , . _—_—_
Toans Carrying Expected Less than 1to3 3 months — 14to2 | More than
2007 2006 ; Amount Cash flow 1 month months to 1 year Years 2 years
ee ree Phe ees ea Aenea ot a Eee eo Sarin ee ee as ee ce aoe paren. ce eee av eee
Concentration by sector: ‘ December 31, 2007
Comporate $ a 208,705,863 Demand deposits 26,965,755 26,965,755 26,965,755 : = - -
onsumer 1 : comtih °
- .wonsumer aioe we en 5 Time deposits 160,013,517 163,573,208 15,434,653 49,996,830 95,050,423 2,755,043 336,259
232,826,350 / 5 434, .996, 050, »755, i
Total gross amount .. -232,826,350 Recite parabe
tration b raphical location: and other liabilities 565,110 665,110 565,110 fs - ‘ é
nae y, geparapnica'? , 4,350,000 1.496.390 Loans payable 44,799,417 . 45,725,633 11,482,553 3,546,388 30,696,692 : -
Latin America & the Caribbean : 231,476,350 212,055,882. 232,343,799 236,829,706 54,448,071 53,543,218 125,747,115 2,755,043 336,259
Total gross amount $ 232,826,350 213,552,272 OO
Loans outstanding by type of industry are shown below. ———_-
: Carrying Expected Less than 1to3 3 months 1to2 More than
2007 $ 2006 Amount Cash flow 4 month months to 1 year Years . 2 years
Se ee ad sera ace eS eb cet thereat :
Services $ 50,222,655 61,126,490 : Say eo eae
Wholesale & retail trade 65,592,325 49,557,355 December 31, 2006
Agriculture 22,074,758 33,027,042 Demand deposits 26,826,336 26,826,336 26,826,336 2S ‘ - 2
Construction 19,369,541 29,438,531 Time deposits 186,188,127 191,939,718 31,689,389 . 49,486,575 66,536,912 43,138,276 1,088,566
a ee Accounts payable
Manufacturing and engineering 15,160,345 14,221,665 and other liabilities 415,087 415,087 415,087 7 we FE - 2
Notified and accepted letters of credit 1,769,847 13,209,127 Loans payable 28,059,127 28,371,115 18,233,485 8,078,924 2,058,706 “+ -
Tourism 12,235,201 7,323,645 241,488,677 247,552,256 77,164,297 57,565,499 «68,595,618 43,138,276 1,088,566
Personal consumer loans 46,336,546 / 5,438,675 ‘ ;
Other 65,132 209,742 : :

$ 232,826,350 213,552,272 /
The above table includes the undiscounted cash flows on the Bank's financial: liabilities on the basis of their

Loans classified by type of security are shown below. earliest possible contractual maturity. The Bank's expected cash flows on these instruments may vary



20072006 Significantly from this analysis. For example, deposits from customers are expected to maintain a stable or
Securities $ 88,478,563 101,898,109 increasing balance. .
. Mortgages 77,738,015 64,679,477
Trust assets 36,152,081 27,387,944 Money laundering risk
Personal/corporate guarantee 27,432,185 16,431,840 Re ; ;
Chattel mortgage 3,025,506 3,154,902 This is the risk that the Bank’s products and services could be used in.such a way as to

cepurianierreentrintaachotiieadin tat

Sr tee ee sae

eb TN EE LR eS

NID AN TES

S.A TELE TNE TS OS

95S LETTS SUE

yer

prevent the detection of funds derived from illicit activities. The resultant. risks include

sanctions due to non-compliance with current anti-money laundering (“AML”) legislation and
damage to the Bank's reputation.

$ 232,826,350 213,552,272

At December 31, 2007, the collection of loans in default amounting to $6,740 (2006:
$285,198) was being pursued by legal means. /
Canes The Bank has implemented controls to counter money laundering risk in the form of a

: series of money laundering policies and procedures that uphold high standards.and comply
with international norms (which are the basis. of the AML regulatory framework in The
Bahamas). These policies include the Money Laundering Prevention Policy and Know Your
Client Policy which apply to all personnel who receive specialized training annually with
regard to AML. The Bank conducts regular account monitéring for all accounts according to
a tisk rating system in place to identify potential Suspicious transactions and reports
suspicious transactions when necessary to the Financial Intelligence Unit.

Collateral: The Bank accepts collateral, typically mortgages or chattel mortgages, to secure
its loans. The value of collateral is determined by an appraisal made by an independent
appraiser, which indicates the estimated fair value at the time of borrowing, and generally
are not updated except when a loan is individually assessed as impaired.

The estimate of the fair value of collateral held for mortgages and chattel mortgages in
respect of financial assets is $178,411,787 (2006: $182,972,577).

Operating risk
Appraisals of property located in Costa Rica are made in Costa Rican Colones, and then
translated to United States dollars. The maximum percentage that can be used for
calculating allowances is 80% of.the appraisal value in the case of real estate and up to
65% of the appraisal value in the case of moveable property.

Operating risk is the risk of direct or indirect potential losses associated with the Bank's °
processes, personnel, technology and infrastructure that are unrelated to credit tisk, market
tisk, and liquidity risk. This risk is inherent to each sector in which the Bank operates and
all of its main supporting activities. It occurs various ways, particularly in the form of internal
control failures, errors, business interruptions, or inappropriate employee behaviour, and

may result in financial losses, sanctions imposed by regulatory authorities, or damage to the
Bank's reputation.

Personal/corporate guarantee: Sureties are also accepted from individuals or legal entities.
Both are evaluated based on their ability to'_pay debts on behalf of the debtor and their credit
history.

Market risk i biity ia i

The main responsibility for developing and implementing operating risk controls is assigned
to senior management in each business.area. This responsibility is supported by operating
risk management standards developed for the following areas :

This is the risk that the value of a financial asset will decrease as a result of changes in
interest rates, foreign exchange rates, stock prices, and other financial variables, as well as
the reaction of market participants to political and economic events due to underlying losses

and potential gains. The objective of market risk management is to manage and monitor s oe of duties. Yh te -

risk exposure and to ensure that such exposure does not exceed acceptable limits, thus quis ‘or effective transaction monitoring and reconciliation.
esters e Compliance with regulatory and legal requirements.

optimizing returns. e

Communication and application of guidelines for business conduct.

Mitigation of risk through insurance, where appropriate.

Reporting of operating losses and proposals for resolution.

Comprehensive planning: process for recovery of activities, which includes plans: to

Foreign currency risk

The Bank is exposed to this type of risk when the value of its assets and liabilities in foreign currency is

: * restore key operations and on and i iliti .
affected by exchange rate variations, and the corresponding amounts are mismatched. provided. y Op Offsite support facilities e ensure that services are
oa / ; Training provided to Bank employees.
At December 31, 2007 and 2006, the Bank has no monetary assets or liabilities denominated in ° Activities to mitigate risk, including security policies.
currencies other than the United States dollar. 5

The above policies are supported by periodic reviews conducted with the oversight of the
Internal Audit Department. The results of the reviews are discussed with business unit
managers and summaries are provided to the Audit Committee. -

Interest rate risk

This is the risk of exposure to losses in the value of a financial asset or liability due to fluctuations in
interest rates when the terms of asset and liability portfolios are mismatched and the Bank does not
have the required flexibility to make timely adjustments.

Capital Management

The Bank must comply with capital adequacy -requirements established by The Central
Bank of The Bahamas, which requires all banks to maintain a capital adequacy ratio of at
least 8% at all times. The capital adequacy ratio is calculated by dividing the Bank's eligible
Capital base by its total risk-weighted exposures. Management periodically monitors those

. : ; ; Pace requirements and reports compliance thereof to the Board of Directors. As of December
The Bank also follows the policy of including a clause in all loan contracts to provide for periodic interest 31, 2007, management has determined that the Bank's equity is 14.61% (2006: 15.72%) of

The Bank's management controls interest rate risk through weekly “Gap” reports, which are analyzed by
the Asset and Liability Committee. ;

rate adjustments. Decisions on terms, financing, and credit are aimed at controlling interest rate risk. risk weighted assets. :
The Investment Committee considers the risk of rate fluctuations when making decisions involving the .

purchase of investment securities. In respect of income-earning financial assets and interest-bearing
financial liabilities, the following table summarizes the Bank’s interest rate gap position which show the
periods in which they mature or, if earlier, re-price: Management may make recommendations to the Board of Directors as'to the payment of

dividends provided that capital adequacy requirements are being met and there is sufficient









2007 us : : ' :
Total 1 month {to2months __2to3months __3to6months __6 io. 9months _9 months to 1 year_More than 1 year capital to achieve the Bank's Projected growth trends.
Rate-sensiive assels: The Bank's strategy to capital management has not changed since 2006
Cash equivalents 2,250,000 2.250.000 : : : : * : r
Investments, 2,578,622 998,350 : . . : 987,090 593,182 | 7 eh
Loans 232,826:350 427,147,004 11,545.848 17,955,894 25,016.770 17,386,523 3,723,908 30,050,402 : 18. Fair value of financial instruments
: 237,654,972 130,395,354 11,545,848 17,955,894 25,016,770 17,386,523 4,710,998 30,643,584
Rate-sensibve liabilities: : * . /
poten depose Beene, ea testes ; , ; ; . : di value estimates are made on a given date, based on relevant market information and
Time deposist 360,013,517 17,261,817 27,193,253 20,524,625 59,549,160 30,645,506 2,039,926 2,798,830 information about the financial instrume : "
Loans payable 44758.417 11,299,417 : 3,500,000 19,000,000 11,000,000 : : di th ant. These estimates do not reflect any premium or
931,78.605_ 55,526,909 _27,10253. 24024625. ~78.549.160 ~4i.648,906. 2039926. 2.798.800" 'scount that could result from the offering for sale at one time of the Bank's entire holdings
: . ' of a particul i 7 + item :
Gap 5.876283 74,268,206 (15,647,404) (6.068.731) __ 153,532,390) __(24,259.383) 2671072 27.8 P eres financial TUE N(: These estimates are subjective in nature and involve
peat eee uncefaintios, and matters of significant judgment and, therefore, cannot be determined with
2006 precision. Changes in assumptions could Significantly affect the estimates.



SS
Tota! 4mth 4 to 2 mths 2to3 mths 3to 6 mths 6 to9 mths 9 mths to 4 year More than 4 year

The fair values of the Bank's significant financial instruments are shown below:





Rate-sensitive assets:
Cash equivalents 12640944 12,640,944 ; : : : : : Bok. ME eng | Me Sg ee
Investments 28,549,580 4,724,388 3,801,572 5,000,000 : 1,978,400 985,580 15,059,840 : '
Loans 213.552272 __ 7.730841 _ 12.578 :69 __ 12,164,565 15,446,743 12,388.4859 3640033 963,462. Sah eng gi ee ne --Ganying amount, "Fair value
254,742,796 112,096,173 _ 16,379,741 17,164,565 15,446,743 14,336,859 24,625,613 54,693,102 Cash and cash equivalents $ 20,594,644 20,594,644
Rate-sensitive liabilities’ ° ey 2,578,622 2,578,622
Cemand deposits 26826,335 26,826,336 : 2 oe . : : a 228,783,837 229,838,357
Time ceposits 185,188,127 «27,406,567 «22,501,533 —-—«24,829.278 += 33,164,130 —=—«33,161,130 33,537,961 11,590.428 Accrued interest receivable 1,026,306 * 4,026,306
Loans payable 26,059,127 13,209,127 5,000,000 . 7,850,000 2,000,0¢0 : ce Accounts receivable 71.597 "94.
241,073,590 67,442130 27,501,533 _—24,629.278 44,011,130 95,161,130 33,537,961 11,580,429 Deposits 4 all
‘ ioane b 188,979,272 188,032,520
) Paya le 44,799,417 44,819,318
At December 31, 2007 and 2006, a decline of 25 basis points in interest rates would result in a loss Accrued interest payable 1,637,159 1,637,159
of $60,000 and $43,000, respectively. This analysis assumes that all other variables remain Accounts payable and other liabilities 565,110 565,110
constant. A decrease of 25 basis foir's in interest rates at the Teporting date would have had the i
equal but opposite effect, on the basis ‘hat all other variables remain constant. ane .
: Hone es ne Se Carrying amount Fair value
Price risk Cash and cash equivalents $ 22,454,975 22,454,975
S . Investments 28,549,580 29,283,185
This is the risk that the value of a financial instrument will fluctuate due to changes in market prices, Loans 209,313,127 210,253,117
irrespective of whether they are caused by specific factors associated with the particular instrument Accrued interest receivable 1,800,582 1,800,582
Or its issuer, or by factors affecting all securities traded in the market. oe eee 21,652 21,652
eposits ‘
213,014,463
Theeank . ae . ; Accrued interest payable ee
is exposed to price risk in respect of the available-for-sale and held-to-maturity assets. Loans payable 1,461,361 1,461,361
Price variations on investments classified as available-for-sale are recorded in equity. Investments Accounts payable and other liabilit eee Tey
held-to-maturity are carried at amortized cost. In order to minimize the impact of price risk resulting . eee a/8,087 415,087

from its investments, the Bank diversifies its portfolio based on predefined limits and prudential
norms established by The Central Bank of The Bahamas.



PAGE 20B, WEDNESDAY, APRIL 30, 2008

iT THE MALL AT MARATHON 4

Register your Mom at participating Mall stores for

A Day of Pampering
to include a Make Over, Dinner, a Movie
and a $500.00 Shopping Spree.

Drawing Saturday May 10th, 2008,,_
at 12 noon | #



Take control of your financial future...
Attend this FREE Investment Seminar

“Women: Inspired, Motivated and
Challenged to Be The Best!”

Date: Saturday, May 3rd, 2008
Time: 9am-1pm
CASTES EL CE LLELL
OUNCE APS NIM ATem Seat

WOMERPE AMCIAG HEVEETENT GOODS
Reochssigs toed beset fa Boon Dasaegoiesas Be)

Speakers include:

- Loretta Butler-Turner, MP, Minister of State for Social Developrnent °
“Tackling Crime and Violence ante Women in the Bahamas”

-. G. Diane Stewart, Partner, McKinney, Bane roft & Hughes
“Protecting Our Children - Understanding Inheritance laws”

- Yvette Bethel, CEO, Organizational Soul
“Are you in the right job? What to do if you are not”

- Ursula Rolle, Assistant Vice President, Banque SCS Alliance (Nassau) Ltd.

“Making your Finances Recession Proof”

Space is lirnited, to RSVP call.328-8996, 328-8396/7

242-461-1000 | www.babfinancial.com B:

Freeport 242-352-7209 Exuma 242-336-3035 Abaco 242-367-5601

hAmerican

FEN AN CEA L



Ratings agency
confirms Family

Guardian strength



FAMILY Guardian, the
Bahamian life and health

* insurance company, yester-

day had its A- (Excellent)
financial strength rating reaf-
firmed by the leading inter-
national insurance rating

agency.

A. M. Best said that while
the positive trends in Family
Guardian’s business over the
past five years had given it
competitive strengths in the
limited Bahamian market,

‘among the negative issues

facing the company was the
high concentration of mort-
gage loans within its invest-
ment assets and the “weak”
performance by its financial
services segment in 2007.

A. M. Best said: “These
rating actions are based on
Family Guardian's very good
risk-adjusted capitalisation,

SINGS CeC STIR Ue este
and profitability strengths
matched by concern at

mortgage loan concentration
and ‘weak’ financial services
performance in 2007

' profitable aggregate opera- °
tions and expanded market-
ing presence in the Bahamas.
“Trends in profitability and
stockholders' equity continue
to remain positive on a con-
sistent basis, with growth in



equity over the past five
years despite dividend pay-
ments. Family Guardian's
three core business segments
- home service, financial ser-
vices and group division, led
by BahamaHealth - provide
business diversification and

British

competitive advantages in a
generally limited and mature
marketplace.”

Yet it added: “Partially off-
setting these positive rating
factors are the weak operat-
ing results reported in 2007
from its financial services seg-
ment, the volatility and risk
inherent in its health busi-
ness, and high concentration
of mortgage loans within its
invested assets. The ratings
also recognise the high level °
of competition in the
Bahamas in Family
Guardian's core business
lines.”

A.M. Best reaffirmed
Family Guardian’s issuer
credit rating of ‘a-’, adding
that the outlook for both that
and the financial strength rat-
ing was stable.


























‘The Tribune

Piet Bank & Trust Limited

Anniversaty
*20 PICTET |

Pictet Bank & Trust Limited is pleased to offer a four (4) year
Scholarship (tuition and books) for one (1) Bahamian Student to
attend The College of the Bahamas

Criteria for Applicants:

e Graduate from High School in June 2008 with a Grade Point |
Average of at least 3.0 Hl

e Obtain a letter of recommendation from the School Principal ‘ :
or a member of an Academic Faculty a |

¢ Acceptance into the Banking / Finance Bachelor’s Degree |
Program at The College of the Bahamas

° Maintain a minimum Grade Point Average of 3.0

¢ Provide a Resume that demonstrates good interpersonal skills,
effective leadership and social involvement in community
activities \

e Write an essay (500 words maximum) describing the positive
effects of the International Banking Industry to the Bahamian
Economy

¢ Be willing to work at Pictet Bank & Trust Limited during the
summer holidays

Send Applications to:-

Human Resources Manager
Pictet Bank & Trust Limited
Building 1, Bayside Executive Park
West Bay Street & Blake Road
P.O. Box N-4837
Nassau, Bahamas

Deadline for receipt of applications is 23rd May, 2008

The final decision to award this Scholarship rests entirely with Pictet Bank & Trust Limited.



Full Text


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|
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Volume: 104 No.133

FEATURES











Third murder
in a week on
Grand Bahama

@ By DENISE MAYCOCK
Tribune Freeport
Reporter
dmaycock@tribunemedia.net

FREEPORT - A 25-year-
old Freeport man was found
dead following a shooting in
the Coral Gardens area on
Monday evening.

This latest incident pushes
the 2008 homicide count to
five on Grand Bahama, where
three people have now been
murdered within a week. °

According to reports, offi-
cers at Police Control Room
received reports of gunshots
being fired at Coral Gardens.

When officers arrived at
Coral Way and Peridot Place,
they discovered the body of a
black, identified as Senecca
Rahming of Easter Avenue,
lying in the parking area of an
apartment building.

Asst Supt Loretta Mackey
said officers examined the

SEE page 11

Two men expected to be charged
with last week’s double murder

& By DENISE MAYCOCK
Tribune Freeport Reporter
dmaycock@tribunemedia.net

FREEPORT - Two men are expected to be arraigned in the
Freeport Magistrate’s Court today in connection with the double

murder last week in Freeport.

The men, aged 31 and 29, are accused of the murders of Andy
Wilfred Weekes and Terrel Mingo, who were shot at Adventurers

Way and Watlins Lane.

Weekes died shortly after his arrival at Rati Memorial Hospi-
tal and Mingo died the following evening. Their deaths were the 3rd
and 4th homicides on Grand Bahama this year.

Asst Supt Loretta Mackey thanked the public for information
that assisted police in their investigations.

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‘BAHAMAS EDITION

gai
international

RS es






reflections on
ENM Cabinet
appointments

@ By BRENT DEAN
Tribune Staff Reporter
bdean@tribunemedia.net

IN THE current govern-
ment, Prime Minister Hubert
Ingraham has given many
young members of his caucus
a chance to shine in front of
the public through appoint-
ments as Cabinet ministers.

After one year in office,
however, some of these
potential future leaders of
governing party have shone
more than others.

Mr Ingraham, who is 60
years old, has dominated the
post-Pindling era of politics
in the Bahamas.

He has no rival.who is

“equal in stature to him in his

political party or in the oppo-

SEE page 13

| mBy NATARIO

One year on:

| weekend stabbing death of a

, | Roger Gomez at Court One,

| the matter, which has been



Man found dead
after shooting

Man i in court over stabbing WT

nei el eagaaae

Felipé Major/T ribune staff




“ANTON WRIGHT outside of
court yesterday.




McKENZIE




A MAN charged in the





22-year-old Kemp Road res-
ident was arraigned in a
Magistrate’s Court yester-
day afternoon.

Anton Wright, 27, of
Union Village, appeared
before Chief Magistrate









Bank Lane, yesterday,
charged with the murder of
Theron Armbrister.

Court dockets state that
Wright intentionally and
unlawfully caused Armbris-
ter’s death on Saturday,
April 26. Wright was not
required to plead to the
murder charge. A prelimi-
nary inquiry will be held into













adjourned to May 15 and
transferred to Court i; Nas-
sau Street.

According to reports,
Armbrister was stabbed ear-
ly Saturday morning while
attending a party. Initial
reports said the deceased
and another man became

SEE page 11









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_ SEE NEWS SECTION PAGE 15

‘No live case’
against Rubie
Cuneta Oke

@ By KARIN HERIG
Tribune Staff Reporter
kherig@tribunemedia.net



THERE is currently no mat-
ter pending against Supreme
Court appointee Rubie Nottage
in the United States, according
to US Ambassador to the
Bahamas Ned Siegel.

Being once again asked to

of Mrs Nottage by the Judicial

and Legal Services Commission,

Ambassador Siegel said that
information'from the US

Department of Justice indicates

that there is no live case against
Mrs Nottage.

This information comes as
Mrs Nottage is scheduled to be
sworn in as Supreme. Court
judge at: Government House
today.

Speaking as a guest on Island
FM’s radio talk show Parlia-
ment Street at the weekend, the
ambassador had the following
to say about Mrs Nottage’s sit-
uation:

“There is a statute of limita-
tions and there is no, to my
understanding from the Depart-
ment of Justice, based on my
information, (no) continued
proceeding on behalf of her.”

Ambassador Siegel also reit-

‘SEE page 11

Nassau flight delayed
following bomb scare

@ By KARIN HERIG
Tribune Staff Reporter-
kherig@tribunemedia.net



Ambassador Siegel



A FLIGHT from Fort Lauderdale to Nassau was delayed and a
man taken into custody following a bomb scare on a Spirit Airlines
plane.

A male passenger was detained by officers from the Broward
Sheriff’s Office on Monday afternoon after he made a bomb threat
on board Spirit Airlines flight 461 to Nassau.

According to reports from the airline, the plane’s crew was
preparing for take-off from Fort Lauderdale-Hollywood Interna-
tional Airport at around 4pm on Monday when the incident
occurred.

Crew members told a passenger to take his seat, but the man
refused. He then threatened the plane with a bomb.

The crew immediately notified the Broward Sheriff’s Office and
deputies searched the plane.

Corporate communications officer for Spirit Air Misty Pinson told
The Tribune yesterday that the airline removed all 105 passen-
gers from the flight and performed a full security check, including
a search by K-9 units.

No explosives were found, Ms Pinson said.

The Broward Sheriff’s Office also confirmed that no bomb was
found on the plane. *

Ms Pinson said that although the passenger may have made the
threat in jest, Spirit Airlines took the matter seriously, “as we

SEE page 11

Coat ae tor a


PAGE 2, WEDNESDAY, APRIL 30, 2008

THE TRIBUNE



ea aaa ee ee ee ee eee
Homeowner ‘told to pay thousands’

for home allegedly not yet complete |

@ By BRENT DEAN
Tribune Staff Reporter
bdean@tribunemedia.net

A HOMEOWNER in Pride
Estates whose housega damaged

by flooding due to defects in the
structure is now being told by the
Bahamas Mortgage Corporation to
pay thousands of dollars for a home
that she claims is not yet completed.

Faye McKenzie first spoke to

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after a flood at her house caused .

significant damage to the walls,
floor and other structures. It is
believed the damage occurred
because pipes in the house were

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not properly sealed.
Consequently, water burst
through the yet to be completed
house when the service was turned
on in the area.
The homeowner was forced to
cut out significant portions of the

walls in the house behind which °

mildew had grown, remove her cab-
inets and replace the floor tiling,
among many other repairs, in
response to the flooding. i

The ministry, during the tenure
of the last PLP government, award-
ed her $10,000 to fix the damage. In
repairing the home, however, Mrs
McKenzie said that she discovered
numerous other defects and used
her own money to attempt to com-
plete the home.

Cheap tiles, slide-down windows
that do not lock, low quality fix-
tures, old wood with putty covering
cracks, were just some of the other
problems she had to deal with,
along with the fact that no cable or

telephone wires were run through .

the house.

Mrs McKenzie used the money
the ministry gave her to make
repairs, but she told The Tribune
in an interview that she was forced
to spend at least another $10,000
in an attempt to finish the house.

Payments

She finally moved in during Feb-
ruary this year with what she
thought was an understanding from
the ministry that mortgage pay-
ments would begin when the house
was completed. The $875 per
month payments initially were
scheduled to begin on March 1,
2007, she said. A letter dated March
12 from the BMC was posted on
Mrs McKenzie’s door last month, to
her embarrassment, claiming her
mortgage was “seriously in arrears”.

The note said she owed the cor-
poration $4,375 for five months of
payments.

Another letter was placed on her
door this month, dated April 9, stat-
ing that her bill was now $5,250 for

* six months of payments.

Months of back and forth with
the government and contractors to
sort out the mess at her home led
Mrs McKenzie to lose her job on
February 1 this year. The hours
spent in this process kept her away
from work for too much time, she
said.

“T’ve been trying to get them to
agree what they will pay, but no-
one wants to sit with me. I’m just a

























‘small man’,” she said.
Mrs McKenzie said she is now
looking for the ministry-to-_provide

. funds to complete the home, addi-

tional funds to compensate her and
her family for the more than
$10,000 they had to pump into the
house to make repairs beyond the
money the ministry has already pro-
vided, and she is also looking for
mortgage payments to be suspend-
ed until the issue can be resolved.

“We are not trying to get any-
thing we do not deserve,” she
added. “I need this to come to an
end.”

: e
Advice

Melvin Seymour, chief housing
officer at the department of hous-
ing, told The Tribune the follow-
ing in response to questions about
Mrs McKenzie's situation: "Mrs
McKenzie's house was completed
and she moved in. Mrs McKenzie
complained and we assessed the
situation. The technical advice was
sought from internally and we
thought at that time that the
amount of funds that should be
expended on matters like that, and
others in that subdivision, was to
have amounted to some nine to 10
thousand dollars - around that
region. We are in the process of
doing some adjustments to houses
in there and we thought that, you
know, her particular claim and her
payment was adequate."

Mr Seymour said that they have
noticed that the homeowner wants
to transform the house or make
other changes, such as windows
with awnings rather than single-
hung windows.

There is nothing is wrong with
that, he said, as homeowners have
the right to recreate their homes as
they desire.

When asked about Mrs McKen- |
_zie's claims that there were further

deficiencies in the house beyond

what the $10,000 from the ministry

was designated to fix, Mr Seymour
said:

"Well, the full assessment was
done and the technical advisors
here in the department have
advised that there is no further busi-
ness that we have to do at that
house."

The Tribune also attempted to
reach Brensil Rolle, parliamentary
secretary in the Ministry of Hous-
ing, for comment. However, Mr
Rolle did not return calls up to
press time.





In brief

Superintendent Stephen Dean



Neighbourhood
crime watch
associations host

breakfast meeting
at police station

AS PART of an ongoing
effort to foster a closer rela-
tionship with their police offi-
cers, leaders of several of the
Southeastern Division neigh-
borhood crime watch associa-
tions hosted a breakfast meet-
ing at the South Beach Police
Station as way to promote more
effective communication
between the Police and the
Community.

The police and community
leaders used the meeting to dis-
cuss an ongoing effort to
improve relations between the
police and citizens and encour-
age a willingness to work
together to improve neighbor-
hood stability.

In attendance were Superin-
tendent Stephen Dean and stu-
dents from the Sadie Curtis Pri-
mary School, who serenaded
the group with the popular
Bahamian song “Persevere”.

Jennifer Marshall-Mackey,
who spoke on behalf of the
group leaders, said: “Creating a
safe community is not an easy
task. The police alone cannot
do it. The implementation of
the various Southeastern Divi-
sion neighborhood crime watch
groups will create a better
understanding of the problems
within our community and pro-

: vide the opportunity for the

police and residents to join
forces to make our neighbor-
hoods safe and more livable."

Assistant Superintendent
Linda Moxey thanked the
crime watch group’s leaders for
their willingness to work with
the police and promised that
officers will to listen to
citizens, take their problems
seriously, and work towards
solving them.

Minister urges men to be
better fathers to their sons

FATHERS were told they must accept full responsibility for
making “real men” out of their sons.

National Security Minister Tommy Turnquest said Bahami-
an men must share the task of raising their children with moth-
ers “in order to put our country back on track”.

“The choice is clear. If you don’t, want to be a father, if you
don’t want to accept responsibility for a child, then don’t father

one,” Mr Turnquest said.

Crime

Addressing a father-son seminar this week, Mr Turnquest said
the inability, or lack of commitment on behalf of some men to
develop “special” relationships with their sons, is negatively
impacting the country via and has led to an increase in crime and

violence.

“As fathers, we have been given a special role and responsi-
bility in our families and for our children as protectors and
providers,” he noted. “Our commitment and contribution to our
families is essential to the strength, growth and stability of our
families, our children and by extension, our communities.”

He added: “The best way for a boy to transition in a decent
way to a man is to follow in the footsteps of his father. A cursory
look at traditional societies shows that the rite of passage from
boy to man, for the most part, happens in me care and control,

if not the company, of his father.
THE TRIBUNE







Centipede
‘invasion’ is.
investigated

ENVIRONMENTAL
health inspectors yesterday
began investigating an
“invasion” of poisonous
centipedes at a Nassau sub-
division.

Inquiries began after resi-

dents of Stevenson sub-
division, off Mackey Street,
complained of centipedes
up to eight inches long
entering their homes.
Officials are trying to
identify the source of the
problem and gauge
whether there is anything

in the area that is attracting ;

the creatures, which can
bite if caught or cornered.

In yesterday’s Tribune,
Miss Heidi Kemp was pic-
tured with a six-inch cen-
tipede she caught and
killed in her home.

Walkathon
in aid of
Sandilands
nurses

WALKERS can help
raise money for nurses at
Sandilands rehabilitation
centre by taking part ina
walkathon from Montagu

foreshore on Saturday.
_ Walkers are asked to

meet at Montagu before the

walk starts at six, and will
walk along Eastern Road

and up Fox Hill Road to the

Sandilands centre.
The trek will raise funds
for the Eloise Penn charity,

which funds scholarships for

Sandilands nurses in the
Bahamas and abroad.

To take part, call Sandi-
lands on 364-9632 or turn
up at Montagu foreshore
from. 5.30am on Saturday,
May 3.

ian pleads
guilty to
shootings in

Miami in 2004.

33 MIAMI

A MIAMI man got a 30-year
prison sentence after pleading :
guilty to shootings in 2004 that ;

left a 9-year-old boy dead,
according to Associated Press.

Twenty-three-year-old Der- :
rick Brockington pleaded guilty :
to second-degree murder and }
other charges Tuesday as part :
of a plea deal with prosecutors, :
Brockington must serve a mini- }

mum of 20 years.

Police said Brockington shot }
31-year-old Clinton Young dur- }
ing an argument on a Miami :
sidewalk. A stray bullet struck :
and killed 9-year-old Quinton }
Young. A third person was also }

shot but survived.

Prosecutors say the families :
of the victims who died agreed }

with the plea deal.

ee ssa
Fertilizer, Fungicide,
Pest Control

ae CEs
cca ALY





LOCAL NEWS

‘Government expected t

WEDNESDAY, APRIL 30, 2008, PAGE 3



expand sea turtle laws

@ By ALISON LOWE
Tribune Staff Reporter
alowe@tribunemedia.net

THE government is expected :

to expand the laws relating to
the capture and commercial sale
of sea turtles in the Bahamas in
the wake of calls from environ-
mentalists and nature lovers, The
Tribune has learned.

: Minister of agriculture and
marine resources Larry
Cartwright said yesterday that
“the government is considering
the situation and something
should be coming out very, very
soon — something positive that
is.”

The director of operations at

the Bahamas Humane Society, °

an organisation which has played
a major part in the campaign to
ban the capture and slaughter
of sea turtles, confirmed that he
had received information indi-
cating that the government is set
to move on the recommenda-
tions in short order.

“Well from what we’ve been
hearing, and it’s been coming
from pretty high up, they would
come up with something posi-
tive. I think the pressure is on
for them,” said Mr Stephen
Turnquest.

According to Mr Cartwright,
the development is to be expect-
ed within the next month.

Over the last few months The
Tribune has published numer-
ous photos showing sea turtles
laid out upside down and alive
for sale on docks in New Provi-
dence.

One, which. was bought from
its captors by a group of con-
cerned individual for $800 in an
effort to save its life, iater died at
the Atlantis marine rescue cen-
tre, with staff there saying that
the turtle had been “in very poor
condition” upon arrival.

Pictures were sent to the



THERE HAS been a campaign to ban the me and siauatial of
sea turtles.

media accompanied by protes-
tations that the government
must act to bring to such situa-
tions.

“Things like that need to be
brought to the public attention
usually to get the government’s
attention,” said Mr Turnquest,
who claims the BHS has been
working on the issue for around
10 years.

e e :
Petition

In the meantime, an online
petition has been running since
the end of 2007 appealing for
the government to ban not only
the slaughter of endangered sea
turtles but also their capture and
possession.

As of yesterday it had attract-
ed 4,994 signatures — 474 more
than when The Tribune last
checked on April 8.

A copy of the petition, which
is addressed to Prime Minister
Hubert Ingraham, Mr
Cartwright and tourism minis-
ter Neko Grant, was submitted
to the prime minister and the
concerned ministers last year
along with accompanying letters,
documents and articles.

Eric Carey, director of the

Our Lucaya Resort occupancy

expected to drop off next week

@ By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

. FREEPORT - Occupancy levels are expected to drop off in
the next week or so at the Our Lucaya Resort — which could
result in less work days for employees.

According to hotel and union officials, a major group stay-
ing at the resort is scheduled to leave the island sometime this
week. They say this will result in a dip in occupancy.

Earnestine Moxyz, public relations spokesman, said that the
resort had has several large groups in and employees have
been very busy and working long hours.

“Tt is nothing new...

people work according to occupancy

levels we have at the resort and when things are slow they

work may two or three days,”

she said.

Roy Colebrook, president of the Bahamas Hotel Catering
and Allied Workers Union, said the resort now relies on

group business quite often.

Business

“The resort is dealing with a lot of group business and right
now a lot of their occupancy is taken up by groups, and I
know that one group is there end of the week,” he said.

Mr Colebrook said any time occupancy levels drop, it is

normal for workers to be placed ona

week.

a two or three day work

The Our Lucaya Resort and the hotel union are presently ;

negotiating a new labour contract for the 500 employees. The
previous contract expired in September 2006.

“The union has-been negotiating for a new contract under
two administrations and we are hoping to complete negotia-

tions,” Mr Colebrook said.

He and union officials are expected to meet with hotel man-
agement today to resolve some of the outstanding issues.

Mr Colebrook noted that some workers employed in differ-
ent areas at the resort were left out of the contract proposal.

ancing Available Through
ou eaerMtay



Bahamas National Trust, said
yesterday that while he had not
been officially informed that a
ban would be enacted, “that’s
what everyone keeps saying.”

“We’ve gotten very good
feedback from our queries,” he
said.

The Tribune understands that
government has been consulting
with local fishermen before it
finally moves to change the fish-
eries regulations.

Asked what form the BNT
would like the rules change to
take, Mr Carey said that the

. trust has pushed for an “interim

position” whereby, rather than
banning outright the capture and
slaughter of the creatures, their
commercial sale is outlawed.

This would mean that while a
“family island fisherman” could
still capture a turtle for his own
consumption, a lack of commer-
cialisation would likely cut down
on the occurrence of sea turtles
being laid out for hours in the
sun for sale.

Mr Carey said that the trust
hopes that in addition to this
move, Officials will enforce the
law as it currently exists in rela-

.tion to cruelty against animals.

Eventually the BNT would
like to see a total ban, he said.

It is unclear at this stage
whether the government action
will, if it goes ahead, comply
with the more broad-ranging
appeals of the petition or the
slightly less prohibitive “inter-
im” demands of the BNT.





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PAGE 4, WEDNESDAY, APRIL 30, 2008

EDITORIAL/LETTERS TO THE EDITOR

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.) LL.D., D.Litt.

Publisher/Editor 1919-1972
Contributing Editor 1972-1991

EILEEN DUPUCH CARRON, C.M.G., M.S., B.A., LL.B.

Publisher/Editor 1972-

Published Daily Monday to Saturday

Shirley Street, RO. Box N-3207, Nassau, Bahamas
Insurance Management Building., P.O. F-485, Freeport, Grand Bahama

TELEPHONES
Switchboard (News, Circulation and Advertising) 322-1986
Advertising Manager - (242) 502-2352
Circulation Department - (242) 502-2387
Nassau Fax: = (242) 328-2398

Israel gets ready to deal

IN A MESSAGE to Syria’s President Bashar
Assad last week, Israeli Prime Minister Ehud
Olmert affirmed that Israel would give all the
occupied Golan Heights back to Syria in
exchange for a comprehensive peace agreement.
This move was belated but wise. It could alter the
Middle East chessboard for the better, greatly
reducing the chances of a disastrous new region-
al conflagration.

The Israeli gesture to Syria will have meaning
only if the two governments follow it up with
serious diplomatic engagement.

Recent exchanges between the two have been
indirect; in 3/8Rd, a Syrian cabinet minister said
the recent Israeli offer was relayed to Assad by
Turkish Prime Minister Recep Tayyip Erdogan.
The last full-fledged negotiations between Israel
and Syria foundered in 2000 over a dispute about
control of the northern shore of Lake Galilee.
Since then, the dangers confronting each side
have only mounted.

Today more than ever, both countries would
benefit from a peace accord that resolves disputes
over territory and security, finally ending the
conflict between them. ©

Olmert gave the signal that Assad wanted to
hear: that Israel was ready to trade all the Golan
Heights for peace with Syria.

Both sides accept that there will be no Syrian
retrieval of the Golan without an agreement on
security issues, and no security pact without
return of the Golan.

In any talks about security, Israel will want
Syria to stop arming the Lebanese Shi’ite militia
Hezbollah, stop helping Iran to arm and super-
vise Hezbollah, and stop harboring leaders of
Palestinian militant ‘groups such as Hamas and
Islamic Jihad.

Above all, an Israeli-Syrian peace deal will
have to remove Syria from Iran’s sphere of influ-
ence.

This strategic objective is not unique to Israel.
Egypt, Jordan, Saudi Arabia, and the other Arab
Gulf states also want Syria to return to the Arab
fold.

The Bush administration ought to be striving
for the same goal. Until recently, however, Pres-
ident Bush seemed hypnotized by the neocon-
servative notion that America need not talk to
troublemakers, much less bargain with them.
Indeed, Israeli officials have hinted that, until
recently, the American administration was hold-
ing Israel back from making a serious overture to
Syria.Assad has made no secret of his intent to
parlay any peace treaty with Israel into a rap-
prochement with Washington. But last week, he
said that peace negotiations with Israel will prob-
ably have to wait until there is a new US presi-

dent. The rehabilitation of American foreign .

policy cannot come soon enough:

Editorial courtesy of The Boston Globe

NOTICE

NOTICE is hereby given that RONY DUROSEAU of

Empty rhetoric
by the tankful

- CONTINUED high demand for tight supplies
of gasoline has pushed the price to about $3.60 a
gallon. So what do two of the three candidates for
president propose to do? Drop the federal tax on

_ the fuel during the summer - so drivers will be

encouraged to drive even more, increasing con-
sumption of gas and pushing the record-level
profits of the oil companies even higher.

Republican Senator John McCain first pro-
posed to suspend the 18.4-cent tax on gasoline
from Memorial Day to Labor Day, a move that
has political appeal but undercuts his Senate
record as an advocate of reducing greenhouse gas
emissions by curbing fossil-fuel use. Now Demo-
cratic Senator Hillary Clinton has followed suit
in this game of monkey see, monkey pander.
Ironically, it was President Bill Clinton who
raised the tax to its current level 15 years ago -
one of the steps that helped the federal budget
move out of the red and into surplus by the time
he left office.

Just to keep up with inflation, Congress should
have raised the tax to 27 cents a gallon by now.

Senator Barack Obama opposes the summer
tax holiday as a short-term approach to rising fuel
prices, though he too favored a temporary sus-
pension of most of the Illinois tax on gasoline as
a state senator in 2000.

To her credit, Clinton at least proposes a way
to recoup the'$10 billion in road-building money
that the Highway Fund would lose if the tax on
gasoline and diesel were suspended: She wants
Congress to pass a windfall-profits tax on oil

companies. But the Senate rejected a similar tax -

last December, and there is nothing to indicate
that it would approve one now - certainly not in
time to make up for lost gas-tax revenues this
summer. A quick-fix approach like the gas-tax
holiday might make sense if there were any evi-
dence. that oil at more than $100 a barrel is a
passing phenomenon. But energy analysts say
the high prices mainly reflect increased demand
from China, India, and other quick-growing
countries. By slightly reducing the cost of gaso-
line to US consumers, the tax holiday will only
increase consumption, with the likely result that
the pump price might not drop at all. McCain and
Clinton also seem to have given no thought to
Tuesday, Sept. 2. That’s the day after Labor
Day, when Americans will still need to drive - to
work, not to the beach - and will have’ to do so
with gas costing 18.4 cents more. Will McCain
and ;einton then propose to end the gasoline tax
altogether, further accelerating the deteriora-
tion of the nation’s roads and bridges?

The public needs a holiday from demagogic
politics more than from the gasoline tax.

Editorial courtesy of The Boston Globe



MARSH HARBOUR, ABACO, NASSAU, BAHAMAS is

applying to the Minister responsible for Nationality and
Citizenship, for registration/naturalization as a citizen
of The Bahamas, and that any person who knows any
reason why registration/ naturalization should not be
granted, should send a written and signed statement
of the facts within twenty-eight days from the 23rd day
of April 2008 to the Minister responsible for Nationality |
and Citizenship, P.O.Box N- 7147, Nassau, Bahamas.

Hardwood Floor

‘A tale of two

cities ....

e

cost of living’

EDITOR, The Tribune.

I FIND it remarkable, as a
trained economist and a lawyer,
that there has been absolutely
no.announcement by the FNM
administration as to how it pro-
poses to cushion what is clearly
an emerging recession in the
USA as it relates to The
Bahamas. —

It is understandable that the
current Prime Minister is not
an economist, albeit he did
work in a local bank for a num-
ber of years.

The Minister of State, how-
ever, ‘the Hon Zhivarzo Laing
(FNM-Marco City) holds him-
self out as an individual who
has had some exposure to eco-
nomic and financial education
(where exactly has never been
revealed in detail).

The Bahamas has rapidly
evolved as a two-tiered society
in all aspects.

There is an almost insur-
mountable gap between the
haves and the have nots. Those
Bahamian families which have
traditionally been loaded with
cash; real estate and other assets
are still large and in charge.

In fact, successive ‘black’ gov-
ernments have literally ensured
the expansion of the wealth of
the so-called ‘white’ Bahamians
and their business allies.

The average black person,
however, is still subjected to sit-
ting at the back of the prover-

bial bus from an economic point ©

of view.

He or she must still eke out a
meager living, such as it might
be, by being hewers of wood
and bearers of water, some 41
years after “the Quiet Revolu-
tion”. Collectively, we blacks
own less than 10 per cent of our
natural patrimony.

Many of us, and alinost all of
our children, will never be able
to buy the smallest piece of real
estate anywhere in The
Bahamas.

The cost of ordinary living is
literally killing the average
Bahamian, day in and day out.
Utility costs are already off the
chain and there is no relief in
sight with oil being priced at
over US$100.00 per barrel. .

Fuel for ones vehicle, if one
has one, is now in excess of
B$5.00 per gallon.

Mechanical repairs due to
damage inflicted upon our auto-
mobiles due to our poorly main-
tained road systems are beyond
the monthly budget of thou-
sands of Bahamians.

As a result, we must catch a

.jitney and hope that the driver

of the day is lucid and in a good
mood.

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Food prices are sky rocket-
ing even as you pause to read
this article.

Breadbasket items are just
that.....breadbasket because all
one is able to purchase, in many
cases, is ‘a small basket (plastic
bag) of groceries and maybe a
small loaf of unhealthy white
bread.

Many Bahamians cannot tell
you the last time he or she
would have eaten a good choice
cut steak much less a baked lob-
ster with garlic butter sauce.

I personally know of many
Bahamian families which are
relegated to eating steam
corned beef and white rice, reli-
giously, each and every Sunday
that the Lord tarries.

Mind you, there is absolutely
nothing wrong with a constant
diet of corned beef but should
the working masses not be able
to afford a piece of tough round
steak once per month?

Electrical bills are literally
causing thousands of ordinary
Bahamians to fall out from
stress and the embarrassment
of having no electrical supply.
Telephones are out of service
for months due to the inability
to pay the requisite bills on
time. School fees for private
schools are in the upper atmos-
phere yet our children are being
taught by callous and indifferent
teachers.

Thousands of children have
had to be removed (or kicked
out) from our private schools
because their parents are unable
to pay B$700.00 and more per
term.

The public schools then

become over crowded and class
room sizes go up like Gussie
Mae and her six sisters. wag
cares?

Rent and mortgage savmionts
have never been so high and ~
never before have we seen the
spectacle of so many Bahamians
losing their homes and/or sleep-
ing wherever night catches
them.

Our political leaders are
blind; deaf and dumb when it
comes down to the black,
unwashed masses.

In one year of governance,
there has been no announce-
ment from the Prime Minister
as to the way forward. In fact,
we have hardly seen Mr Ingra-
ham, except in the House of

‘Assembly, usually for a half day

on Wednesdays, if we are lucky.

Yes, he is a busy man but is
he too busy to address those
issues and concerns of ordinary
Bahamians? Is he doing us, col-
lectively, some sort of favours?

The judicial system (or is it
shambles) is badly broken down
and no one has a clue how to
repair it, except to place yet
another leaking band aid on the
gaping putrid wound.

Lawyers abound in the par-
liament but you’d never know
that if I did not tell you so. Yes,
dear readers, we have a two-
tiered system in The Bahamas.

One for the whites; rich and
famous and another for blacks;
poor people and the inconse-
quential.

* Who cares? Certainly not our
political and spiritual leaders.
To God then, Who does not dis-
criminate, in all things, be the
glory.

ORTLAND
H BODIE JR
Nassau,

April 10, 2008.

I pray this poem will change
behaviour in The Bahamas

EDITOR, The Tribune.

The poem attached was inspired by a discussion recently on The
Way Forward with Joan Savoury, Sabrina Skinner, Judith Cooper,
Jacqueline Knowles, led by Michael Pintard.

This poem is my addition to that debate.

I pray it helps to advance the debate beyond the debate, to the
point of modifying behaviour in The Bahamas.

OBEDIA MICHAEL SMITH

Solutions or Problem

What if irresponsible parenting,

‘instead of sustaining us, is hastening

the extinction of our species

When I see trash everywhere

beside Bahamian streets,

when I see graffiti soiling and sullying

When I hear the noises,
those randomly added

and ambiguously raised, make

Hear of misbehaviour, murder, rape

it seems as if, more and more

are being born, not to sustain, extend —

not to enhance us - our species

but instead to wipe us out

What is a human being

without human values, but animal,
but beast, but part of what human is,

of what human means

Philip Larkin, in “Dockery and Son,”
suggest that instances of reproduction,

instead of being addition,

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it seems many are being added

to our numbers only to sully and to soil,

to subtract, to kill our species, our planet — to be a blight upon cre-
ation

Should who is born instead

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THE TRIBUNE

WEDNESDAY, APRIL 30, 2008, PAGE 5



re re fe ae ee tte a



Food scientists
recommen

stopping biofuels to.

fight world hunger
WASHINGTON

SOME top international
food scientists Tuesday rec-
ommended halting the use of
food-based biofuels, such as
ethanol, saying it would cut .
corn prices by 20 percent dur-
ing a world food crisis,
according to Associated Press.

But even as the scientists
were calling for a moratori-
um, President Bush urged the
opposite. He declared the
United States should increase
~ ethanol use because of
national energy security and
high gas prices.

The conflicting messages
Tuesday highlighted the
‘ongoing debate over food

and fuel needs.

The three senior scientists
with an international
research consortium pushing
a biofuel moratorium said
nations need to rethink pro-
grams that divert food such
as corn and soybeans into
fuel, given the burgeoning
worldwide food crisis. The
group, CGIAR, is a global
network that.uses science to
fight hunger. It is funded by
dozens of countries and pri-
vate foundations.

If leading nations stopped
biofuel use this year, it would

lead to a price decline in corn -

by about 20 percent and
wheat by about 10 percent
from 2009-10, said Joachim
von Braun. He heads the
International Food Policy
Research Institute in Wash-
ington, the policy arm of
CGIAR. The United States is
the biggest biofuel producer.

He and the other scientists
said work should be stepped
up on the use of non-grain
crops, such as switchgrass, for
biofuel.

Another scientist, not asso-
ciated with the group,
agreed with their call for a
halt on the use of grain for
fuel.

“We need to feed the stom-
ach before we need to feed
our cars,” said Rattan Lal, an
Ohio State University soil sci-
ences professor who in the

past has been a critic of some , :

of CGIAR’s priorities. “We
have 1 billion people who are
food insecure. We can’t
afford the luxury of not tak-
ing care of them and taking
care of gasoline.”

In an interview after the
CGIAR teleconference, von
Braun said the United States
and other countries have to
make a hard choice between
fighting high fuel prices and
fighting world hunger.

' “Tf you place a high value
of food security for poor peo-
ple, then the conclusion is
clear that we step on the
brake awhile,” said von
Braun. “If you place a high
value on national energy
security, other considerations
come into play.”

Energy security is what

Bush emphasized in his press. :

conference. When asked
about the conflict with world
hunger and the rising cost of
food at home, he said the
high price of gasoline would
“spur more investment in
ethanol as an alternative to-’
gasoline.




Accept cheques easy as credit

ahamas struggle to

feed families in stricken nation

Global food crisis sees average cost
of rice rise by 96 per cent in western
hemisphere’s poorest country

@ By MEGAN REYNOLDS
Tribune Staff Reporter

HAITIANS in the Bahamas are being

forced to work harder to send money to

their families in Haiti who are starving in
the global food crisis.

Food prices have rocketed by more
than 50 per cent worldwide over the last
12 months in the biggest price surge in 30
years and Haiti’s poorest people are riot-
ing in the streets because they are unable
to meet the cost of basic foods imported
from the United States and Dominican
Republic.

The poorest country in the western
hemisphere depends on imports for rice
and beans but with the average cost of
rice rising by 96 per cent, the country’s

poorest people and majority of. the
population are unable to meét the
cost.

And Haitian people living in The »

Bahamas are struggling to work harder

just to keep their families alive.
Haitian-born lawyer Eliezer Regnier,

who works in Nassau, said: “Every Hait-

-jan in The Bahamas is affected because

everybody has family back in Haiti and
they are from the rural areas...

“The economic situation is not good at
all and invariably there is no income to
fall back on so they will certainly face
misery, especially when it comes to tak-
ing care of their children. They are trying
to provide as best they can.’

Mr Regnier said Haitian people i in The
Bahamas who have not been “regu-



Ariana Cubillos/AP

CHILDREN WAIT outside a ‘church, where aid workers were e giving out bags of food
donated by the Venezuelan government, in Port-au-Prince, Friday, April 18, 2008. Hun-
dreds of Haitians stood in long lines Saturday, just as others had walked for hours
throughout the week to receive the U.N. and regional food aid pouring into the country

after a spate of deadly riots.

larised” have become more fearful of
being forced to return to Haiti in the
current crisis.

He has just returned from a tour of
the country where he saw begging and
riots in even the most peaceful regions.

He said: “The economic depression is .

so severe, there is a thin line between
peace and hunger in Haiti.

“For as long as the economic crisis
continues it will continue to get worse in
Haiti, it is the country that will have the
most dramatic and immediately felt
effects.of the economic crisis.”

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PIC TU RUCR ITEC CHL ce ea ie area

Bahamians reflect on one year of FNM govt

Te A ir

SAAT |



WITH the first anniversary
of the FNM’s election win fast
approaching, The Tribune
scoped the downtown area
and asked what people
thought of the government’s
performance so far.

While the majority of those
interviewed voiced disap-
pointment with the state of the
country at the moment, some
thought this was due to fail-
ures and errors by the FNM,
while others blamed baggage
inherited from the PLP.

Eighty-eight year old Diana
Thompson, president of the
Straw Vendors Union is upset
that the FNM stopped the con-
struction of a new straw mar-
ket. \

Vendors

“The government ain’t do
nothing for me,” said Mrs
Thompson, who claims to be

‘ the oldest straw vendor alive in

the Bahamas. She said that
she asked the government to
find a way to keep the rain
from seeping through the tent
which has been used by ven-
dors since the old market
burned down in 2001, but

nothing has happened yet.
While agreeing that Prime .

Minister Hubert Ingraham “is
a good man”, she said he fae

not done enough for straw

vendors — but added: “God
will fix that.”

Decked out bright red yes-
terday, Samuel Ingraham
insisted that this was just a
coincidence, as in fact, he is a
supporter of the PLP.






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Diana Thompson



“There is room for improve-
ment,” Mr Ingraham told The
Tribune when asked about the
state of the country.

He added that. he is con-
cerned about the economy and
wishes that the government
would “create more jobs for
young people and settled
folks”.

Richard Cartwright, a local
construction worker, said that
he feels the FNM had a
smoother transition into pow-
er in 1992 than this time
around.

He explained that in May of
last year: “Ingraham took
power from someone who was
inexperienced, and didn’t
know much about governance.
To replace someone who has
only stayed one term means
that you have to make up their
term along with your term, so
it’s more work.

“The PLP. government of
the last election was less effi-
cient than the previous PLP
who had 25 years,” he said:



‘ ae



Samuel Ingraham

He added that although he
has his criticisms of the FNM’s
performance thus far, he finds
that Bahamians are too

“caught up in. the. politics’,

This, he said, is what is causing
the country to stumble.

“The biggest cry from peo-
ple in government agencies is:
‘Tam a PLP and the FNM gov-
ernment in charge, so J am not
going to co-operate,’ or vice
versa,” he said.

“We need to incorporate the
ideas of everyone,” he
explained. “You're no longer
an FNM or PLP after May 2 —
you’re Bahamian.”

One area of concern that Mr
Cartwright has is the state of
the educational system, which
he feels is a PLP failure that
the FNM now has to deal
with.

He said: “For every time we
have a major project in the
construction field, the cry has
always been that there aren’t
sufficient Bahamians to do the
job. Everyone is not going to

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Richard Cartwright



be an academic student. What
they need to do is create more
technical schools whereby you
can identify those students

..who.are,not academically,,..

inclined.

“We also need to get

focused on the more impor-

tant issues, like finding ways —

to produce alternative fuel,
because every time fuel
goes up, it stagnates our econ-
omy. “

A person who expressed
similar sentiments was 38-year-
old Allen Aranha, a disabled
man that sells souvenirs at
Perry’s T-Shirt Stand.

“Although people say that
it’s still too early to grade their

performance, in many ways’

the FNM is moving too slow,”
he said.

Mr Aranha added that
Loretta Butler Turner, the
new Minister of State for
Social Development, does not

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Monday - Saturday
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AV ANUal ar.

impress him. He said she has
been ineffective in helping
people with disabilities.

“I heard someone say that
she said she will lighten, the
_ burden, of people with impair-

oe “ments,” said, Mr. Aranha. “If

she said that, there is no evi-
dence of it.”

Mr Aranha added that he
was disappointed at the FNM
for stopping foreign invest-
ment projects signed under the
PLP, which he feels were
“dropped out ef spite”.

Due to this, he claimed,
crime has “sky rocketed”
because most people cannot
find jobs in tourism.

“The government needs to
open up their hands, and start
to release some of these pro-
jects and see where we can go
forward to better empower
our males.

“Our young men killing up
and robbing each other,” he
said. “They need something to
do, or they will resort to any-
thing.”








BILLY'S DREAM

UTNE


PAGE 6, WEDNESDAY, APRIL 30, 2008 THE TRIBUNE





Basketball stars: S|

THE TRIBUNE, along with its “Down Your Street”
Ts feature, which appears in our Tuesday and Friday edi-
SU Siaiiay cy 6 CONS, will be spotlighting events at various schools
PHONE: 322-2157 throughout the country. This is the second in a special
series.



ah







BASKETBALL
stars at St Thomas
More School proved
they have the mak-
ing of champions
when they won the
annual Catholic
Archdiocesan Bas-
ketball Tournament





TENDER FOR THE PROVISION OF =| for the school year.
VICE
CONSULTANGY SER be s It was yet another
PUBLIC RELATIONS | victory for the team,
and/or which became the

ADVERTISING & MARKETING
Hoytes Colina

ate nah ae : é a Imperial Classic

e Bahamas Electricity Corporation _ .

invites Tenders from eligible bidders for champ tons af ter

the provision of Consultancy Services in — playing teams from
Public Relations and/or Advertising& | Nassau and

Marketing for the Corporation. Freeport in Freeport,
%

_ Bidders are required to collect packages | Grand Bahama, in
from the Corporation’s Administration |
Office, Blue Hill & Tucker Roads by Fe ebruary. .
~. contacting Mrs. Delmeta Seymour,
: Phone No. 302-1 158.






.



Tenders are to be delivered on or before
1st May, 2008, 3:00 p.m.
and addressed as follows: _





Mr. Kevin Basden _
_ GeneralManager _
. Bahamas Electricity Corporation

Taking to the streets

’ ST Thomas More students from kinder-



Blue Hill & Tucker Roads ‘ . garten to grade six took to the streets of

Nassau, Bahamas OE Nassau for the school’s annual PTA walk-a-

<< : thon in February. The students walked in a

Marked: Tender No. 660/08 2 : pi loop from the school in Madeira Street to

Consultancy Services in Public Rela- | . e ae el Wulff Road and Montrose Avenue before
tions and/or Advertising & Marketing | “ Ss returning to the school.

The Corporation reserves the right to
accept or reject the whole or such
part of any Tender the Corporation

deems necessary. -










he CABLE BEACH g
ee yee enive,
© UY ~ Westridge c QD

turday 9:00a.m. to 6:00 p.m.

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on selected Items this
_Friday and Saturday ONLY

ST Thomas More stu-
dents in the inter-school
sports competition at the
Thomas A Robinson Sta-
dium on April 10.





i





A STORY reading at
Xavier’s Lower School featured
students from every year group
at St Thomas More School who
read stories to their peers.

Ellen Davies, principal at St
Thomas More said: “This
school is filled with gifted and
talents students and teachers
and lives by its motto: enter to
be challenged; exit to be of ser-
vice.”










RESTART TPAD mE ’ PRIMES seu ce SS TS a EE


THE TRIBUNE



aa so NLL TC ae
Bahamas targets

money on tourism
promotion in US

m By ALISON LOWE
Tribune Staff Reporter

alowe@tribunemedia.net

THE Bahamas spent more on
tourism promotion in the United
States than all other Caribbean
countries in the first six months
of 2007, it has been revealed.

The spending came at a time
when the Bahamas was experi-
encing a significant decline in
tourism numbers.

According to the Foreign
Agents Registration Act’s semi
annual report to the US congress,
the Bahamas outdid even its clos-
est Caribbean rival in the pro-
motional-spending stakes —
Bermuda — by around $10 mil-
lion.

The report said the big bucks
spent by the Bahamas in the run
up to June 30, 2007 were towards
promoting the country’s tourism
sector through “participating in
conventions, familiarisation trips,
expos, trade/consumer shows,
conferences, and seminars.”

$1,065,011.25 of the total was
also given to Washington DC
based CMGRP to help “develop
and execute tourism promotions
for the Bahamas,” said the
report.

Other Caribbean countries
whose tourism spending patterns
were detailed in the report were
Aruba, Bermuda, the Cayman
Islands, Jamaica and Turks and
Caicos.

The figures in part due to the

fact that in December of 2007,
the Bahamas launched a new $12
million campaign in New York to
attract visitors to the islands. This
reflects the country’s dependence
on the US tourism market.

‘The Tribune understands the

$12 million campaign, revealed

to be the most expensive ever
undertaken by this country’s
Ministry of Tourism, resulted in
some increases in tourism arrivals
in the latter part of 2007, but it



MINISTER of Tourism. Neko
Grant revealed that visitor
arrivals were down 3.4 per cent
last year.

did not achieve the kind of
upturn that the ministry had
anticipated.

In total, visitor arrivals for last
year were down 3.4 per cent
overall, Minister of Tourism
Neko Grant revealed in Febru-
ary 2008.

A review released by the Min-
istry of Tourism’s research and
statistics team in the same month
indicated that the Bahamas’
reliance on the US tourism mar-
ket, hit by an economic down-
turn, “came back to bite” last
year.

It suggested that the Bahamas
needed to “hold on to what it
has while aggressively going after
new markets” — an aim that
“may not be so simple” given the
success of the Dominican Repub-
lic and Cuba in targeting the
Canadian and European tourists.



cheques at your Business
Etre tee ae Sc
cards, with the confidence of cash



IN THE FIRST SIX

million in the six month run up

— $7,227,179.61 tax dollars ©
towards promotion during the

tions” fora film festival that was

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COMPETITOR SPENDING
MONTHS OF 2007

Bermuda spent $9,918,181

to June 30, 2007, while the Cay-
man Islands had the third
biggest outlay, putting

semi-annual period ending
March 31.

Jamaica spent a relatively
meagre $547,385.82 in the six
months before March 31, while
Turks and Caicos was reported
to have shelled out $39,985.00
to Georgia-based Goodworks
International in aid of “a promo-
tional reception in Las Vegas,
Nevada, during the Trumpet
Awards Foundation Annual Cele-
bration” and “planned promo-_

held in the islands in October
2006.

THE FOREIGN AGENTS
REGISTRATION ACT

THE Foreign Agents Regis-
tration Act (FARA) report has
been compiled since the Act
was passed in 1938.

FARA is a disclosure statute
which requires American per-
sons or companies acting as
agents for foreign principals —
governments, for example — to
make periodic disclosures
about their relationship with
those principals, including
related activities and receipts.








WEDNESDAY, APRIL 30, 2008, PAGE 7



Wines ~ Gins ~ Rums ~ Vodkas
Scotches ~ Whisky’s ~ Liqueurs
ALL AT UNBELIEVABLE

Bahamas Supermarkets SCN ess ee
for a combined 1,300 years of service

fe





When Bernard Beneby started working at
City Market in the late 1960’s, the US was
in the midst of the Vietnam War, the Green
Bay Packers had just won Super Bowl II,
The Beatles would soon release The White
Album and man had not yet walked on the
moon. On a recent afternoon Beneby, with
more than 50 other Bahamas Supermarkets
Limited employees, was honored for a
combined total of 1,285 years of service to
the company.

The Annual City Market Employee Service
Awards Luncheon, held at the Wyndham
Resort in Nassau, featured stories of
friendships and camaraderie spanning
decades, two moving impromptu vocal
solos by employees Mario Pugh and
Christine Sands, heaping plates of
sumptuous food, and generous gifts for the
numerous honorees. 3

Ken Burns, CEO, Bernard Beneby (40 years) and
Bryan Knowles, CFAO. .

Beneby started working for City Market at
the age of 14 and is currently the produce
manager at the Seagrapes location. One of
three employees celebrating 40 years of
continuous service, he said that much has



changed in the past four decades. Oy NCE,
“Bahamian consumers expect more choice, 2a
and better quality. The products that City
Market now carries, especially in terms of
produce, certainly reflect the recognition

of the demands of our customers.”

Bryan Knowles, CFAO, with 40 year veterans
Bridgette Sands, Bernard Beneby and Rowena Miller
and Ken Burns, CEO.

longevity on the job also reflects the
company’s reputation for job security. This
year, 18 persons were honoured for 10 years
service, another 18 for 15 years and yet
another 18 for 20 years. Nine had spent 25
years with City Market, two were with the
company for 30 years and one, 35 in
addition to the three who had been there
since 1968 when it was first founded.

Ken Burns, CEO, giving congratulatory address to
the assembled honorees.

“Your tenure makes a difference,” said Ken
Burns, CEO of Bahamas Supermarkets, in
his address to the assembled honorees.
“Newer employees, children and staff will ’
watch, listen, and copy you. Each one of
you can make a difference in mapping the
future of this company, and we need and |
value your continued support. Again I
congratulate each one of you and your
accomplishments. Thank you for what you
do, and thank your families for sharing you
with us. Bless each of you.”

City Market, with 12 stores across Freeport
and New Providence, recently initiated a
massive $4 million IT upgrade, which
included the successful installation of price
scanners 1n all of its stores.

Each year when Bahamas Supermarkets
recognises long-serving employees,
honouring those who celebrate 10, 15, 20,
up to 40 years, the numbers increase in one
category — those who.have never worked
for anyone other than City Market.

The high percentage of employees with

Fifteen year veterans of City Market celebrating with
BSL executives.
PAGE8 , WEDNESDAY, APRIL 30, 2008



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We have audited the accompanying balance sheet of HSBC International Trustee (dahamas)
Limited (“the Trust”) as at December 31, 2007, and a summary of significant accounting policies
and other explanatory notes (together “financial statement”).

Management's Responsibility for the Kinancial Statement

Management is responsible for the preparation and tair presentation of this financial statement in
accordance with International Financial Reporting Standards (“IFRS”). This responsibility
includes: designing, implementing and maintaining internal control relevant to the preparation
and fair. presentation of the financial statement that is free from material misstatement, whether

duc to fraud or crror; selecting and applying appropriate accounting policics; and making —

accounting estimates that are reasonable in the circumstances.
Auditors’ Responsibility *

Our responsibility is to express an opinion on this financial statement based on ‘our audit. We
conducted our audit in accordance with International Standards on Auditing. Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance whether the financial statement is free of material*misstatement,

An audit involves performing procedurcs to obtain audit evidence about the amounts and
disclosures in the financial statement. The procedures sclected depend on our judgmeat,
including the assessment of the risks of matcrial misstatement of the financial statement, whether
due to fraud or error. In making those risk assessments, we consider internal contrul relevant to
the Trust’s preparation and fair presentation of the financial statement in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Trust's internal control. An audit also includes evaluating the
appropriatencss of accounting policies used and the reasonableness of accounting estimates, if
any, made by management, as well as cvaluating the overall presentation of the financial
Statement.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for pur audit opinion, | ’

AME
. Opinion

In our opinion, the financial statement presents fairly. in all material respects, the financial
position of the Trust as at December 31, 2007 in accordance with IFRS.

Emphasis of Matier

Without qualifying our opinion we emphasize that this financial statement Uvoes not comprise a
complete set of financial statements prepared in accordance with IFRS. Information on results of
operations, cash flows and changes in equity is necessary to obtain a complete understanding of
thé financial position, performance and cash flows of the Trust.

hhh

Nassau, Bahamas ‘
’ April 8, 2008 ,

HSBC INTERNATIONAL TRUSTEE (BAHAMAS) LIMITED

Balance Sheet

December 31, 2007, with corresponding figures for 2006
(Expressed in United States dollars)













ae oe Note . 2007 2006
Assets
Cash - group company . , 4.5 : $ 19,140 34.460
‘Term deposit - group company 4,5 1,000,000 1.000.000
Refundable deposits . 835 1950
interest receivable - group company 5 3.383 3,348
Other assets ° 11.790 25°
To et ee eg © A095 dR = 1 010.789
Liabilities
Accrucd expenses , ; 3 32,340 12.510
Shareholder’s Equity
Share capital 6. 1,000,000 1,000,000
Share premium 4 325,000 425.000
Accumulated deficit . (522.692) (397,721)
Total shareholder's equity / 1,002.308







See accompanying notes iv balance sheet:

The-batani ICEL eye pe eae: for issue by the Board of melons on April 8. 2008 by:







qooenente ee Director
aie <= a SS
Vat 5 me eel Director

Notes ty Balance Sheet

December 31, 2007
(ixpressed in United States dollars)



t, Reporting entity

HSBC oe Trustee (Bahamas) Lunited ¢ the

Erase fermerky farnaiime
ae nts Lt

« Was incorporated under the hays of The Commenwealtl oft

“The ae don October 28, 2004, ‘The name of the
fine stments Lid on November 23, 2004. The ‘rast is ficensed to Cathy or tous business
from within She Bahamas under The Banks and ‘Trust C aapaes Re, wations Aer 09
Phe Hosts parent is HSBC International Trustee Limited. BYE ¢the Parent) which 1s

Inorperned ia fhe British Virgin Islands. ‘The altimate holding, compatis is cee Hobdineys
ple neorperrted: in Euptand.

Padus,



rust wars changed: thom: Ramaicoie

The address of the rewistured: atin oooh une Prist

wud its
PAC IDaT pit. of busitess is One Bay Steet. Nassau, Balaciats

Tae came cpal ao vities of the ‘Trust consist of Gondictiar



Pee dab orp ae alinerest nie ana

Hasbeet preparation

‘of compliance

‘sheet has been prepared un
andards i"IFRS”.

Avcordatige stl hateanatietia

surement

sheet has bein prepated esi te distor oot bs

ind presentation currency

sheet ie paesenled nib nae Mates oars bos

Teh.

THE TRIBUNE

(d) Use of estimates and judgements

lhe preparation of the valance sheet in conformity with IFRS requires management to
make judgements, estimates and assumptions that affect the application of accounting

Policies and the amounts reported in the balance shect and the accompanying notes,
These esumates are based on relevant information available at the balance sheet date and,
as such, actual results may differ from these estimates.

Estimates and underlying assumptions are 1eviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the estimates are revised and
inany future periods affected

A key source of estimation uncertainty is discussed in note 3(g). ,

3. Significant accounting policies

The accounting policies set out below have been applicd consistently to all periods presented
In this balance sheet.

(a) Foreign currency translation

Transactions in forcign currencies are wanslated at exchange rates prevailing at the dates
of the transactions. Monetary assets and liabilities denvminated in foreign currencies at
the reporting date are wanslated to the functional currency at the exchange rales at that
date.

(b) Financial assets and liabilities
(i) Classification

Financiai assets that are refundable deposits and interest receivable are classified as
luans and receivables.

Financial abiliues that are not at fair value through ptolit or loss are accrued
expenses.

Qi) Recognition and derecognition

A financial asset is recognized when the Trust has control over the contractual rights
that comprise the asset and is derecugnized when theTrust no loager has control over

such contractual rights, w hich occurs when the rights are realized, expire or are
surrendered,

A financial liability is recognized when the obligation specified in the contract is
entered inte aid is derecognized when such obligation is discharged, cancelled or
eNpired. :

cit) Measurement

Loans and receivables are measured at amortized cost plus accrued interest as of the
baiance sheet date. Financial assets that are stated at amortized cost are reviewed ai
cach baiance sheel date for impairment.

«c) Cash and cash equivalents

Cash and cash equivalents include cash and term deposit, These are short, term “highly
liquid investments” which are readily convertible into known amounts of cash without
notice. are sudject to an insignificant risk of changes in value with original maturities of
iess nan three months.

Cash and cash equivalents are carried at amoriised cost in the balance sheet.
id) Related parties

- Transactions with the Trust's parent and with group companies, which are companies
wholly-owned directly or indirectly by the Trust's ultimate parent, are disclosed in these
financial statements as balances and wansactions with "group companies”.

(e) Impairment

Financial assets are reviewed at each balance sheet date for evidence of impairment. If
such indication exists, the asset's recoverable Amount is estimated. An impairment loss is
recognized whenever the carrying amount of an asset excecds its recoverable amount.

An impairment less is reversed only to the extent that the asset's carrying amount does
net exceed the carrsing amount that would have. been determined, net of depreciation. if
ne iMpairment loss had been recognized.

4.0 Cash and term deposit — greup companys

Ai December 34, 2007 cash represents a call account with a balance of $19,140 (2006 -'
S34.466) which earns inierest at 1.50% (2606 — 1.59) per annum. :

Ar December 31. 2007 the ternedepesit af$1.000,000 (2006 '-.$ 1,000,000) earns interest-at
HEes 7c) perannunand: ‘matures March 7, 2008.



un

Related party tr aligaction

\ number of transactions are entered into with related parties in the normal course of
business. These, transactions were carried out on an arms length basis. Balances and
ansacuions described as related party relatc to balances and transactions with the Parent and
its subsidiaries and affiliates by virtue of common ownership by the Parent.

wads Casi. torn deposit and accrued interes
Cash and isrm deposit of the Trust are kept with The Hongkong and Shanghai
Banking Corporation, Nassau Branch ¢*Nassau Branch” ) in the amount of $19,140

(2000 - $34.460: and $1.600,000, (2006 -*$1.000.000) respectively.. The related
interest recervabie totalled $3,383 (2006 - $3,348). a



6. Share capital and share premium

ihe authorised share capita ts $1,000,000 divided inte 1,000 shares of USS$1.U00 each issued
aid full paidans Phe surpius ef the issue price over the nominal vaiue of the shares is
thetaded as shure premium in equity.





Beard of Directors approved the proposed
mount of $125,000 and $1U0.000, respectively. These amounts

titted as share oremium and paid by the Parent vn March 8, 2006 and January 10,
Secs
20" 2 respects viv,

On Marcin i. 2006 and December 1). 2006 the
HYeCUOT OF Sapalad in thas



Wore esi)



Asset under administration

Vhes Tepre: sretee er * Aa : i. esses

Vhe Trust sdministers trusts threugh an outsourcing arrangement with affiliates. At
December 31. 2007, assets heid in trust with a total value of approximately $113 million
P2U0G S23 million: are not included in the balance sheet

‘Vrust, é



. as these are noi assets of the

S. binancial instruments

Maiagement estimates that the fair values of cash and term deposit - group company do not
materially Tren: the carrviug vaiues. givett that the average elfective interest rates
dpprocinate Une Sunes mterest rates available to the Trust for

abies



similar facilities with similar
TMG TU iets

SHH ot fotinaaibyy deposits approapmates carrying value due to its short-term



40 Pinaneial rish management

fae Pntraduction and overvicn
ee
Phe Deus tees cpyocpirce toy tbe Wear vie om " :
Phe Trust has expestie to ihe falling risics from its use of financial instruments.
Ore isk
° RM Ds
eo Maraet rish
what Deak
Tats nety presents nocmauen abcut the Prust’s exposure to each of the abose risks, the
tives. peligs and process for measuri. and managiny risk



Ries maenaeniens ome wort

The Board ef Directors has overnd respensibility for the establishment and oversight ot
ork. which is based on that of the Par

ished the Trusts Asstan Pb sabilin, and Operaticna: Ris. :



he Prusts rsh management tram
seard has ests







He gysponsibie ter Goo elopin meaternis the Trost s risk omgnascment
Bach cerimtiqn Eup Seth oii amd mon wectiey embers and repert
the Boge dip by 1









a habusp mob anab. co tine risks
’ wee .
‘ ‘ wy whats ed Dioner psks and
TERY ' ” “ny or ef oe ere "y *
! ! : ine ' pee Pub ards te
sie prob toma awn ey Merc Pao Poreet chragen
aes : ru Wer wo Gee Men acdpeiptieod apg
“ » ited Noo ! | \ iets vse
al
' ! i ’
Vthe my t ’ ‘ wt ' ve ‘ uw
’


(b) Credit risk

The Trust is exposed to credit risk, which is the risk that one party te: franca!
instrument will fail to discharge an obligation and cause the
financial loss.

ether Pars loomeur a
As substanually all of the Trust's assets and ibe: are sath ores

companies, the risk of financial loss is considered low

(c) Liquidity risk

Liquidity risk is the risk that the Trust will encounter difficully in meeting ebhgations
from its financial Habilities. The Trust's approach to managing liquidity is to ensure. as
far as possible, that it will always have sufficient liquidity to meet its liabilities when duc,
under normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Trust’s reputation. As there are no residual contractual maturities ot
financial Habilitics, liquidity risk is considered low.

(d) Market risk
Market risk is the risk that changes in market prices, such as interest rate and foreign
exchange rates will affect the Trust's income or the value of its holdings of financial
instruments. ‘he nature and terms of the Trust's financial assets and liabiliues docs net
expose it ty significant market risk.

(e) Operational risk
Operational risk is the risk of direct or indirect loss arising from a wide variety of causes
associated with the Trust's processes, personnel, technology and infrastructure, and from
external factors other than credit. market and liquidity risks such as these arising from
legal and regulatory requirements and generally accepted standards of corporaie

behavior.
The Trust's objective is to manage operational risk, based on the operational risk
framework of the Parent, so as to balance the avoidance of financial losses and damuase to

the Trust's reputation with overall cost efiectivencss and to avoid control procedures that
restrict initiative and creativity.
The primary responsibility for the development and implementation of controls to
address opefational risk is assigned to the Operational Risk Commitice of the ‘Trust. ‘This
responsibility is supported by the adherence to overall Group standards for the
management of operational risk. Compliance with Group standards is supported by
periodic reviews undertaken by Internal Audit. ‘he results of Internal Audit reviews are
discussed with the management of the Trust. with summaries submitted to the Audit
Committee and senior management of the Parent.
10. Capital management
The Trust's lead regulator, The Central Bank of The Bahamas, sets and monitors vapital
requirements for the Trust. The current capital requirements require the Trust to maintain a
minimum capital of $1,000,000. The Trust has complied with the capital requirements
imposed throughout the year.

11. Subsequent event

On January 31, 2GU8 the Parent injected vapital in the amount of $140.G00 into the Trust.
This amount was designated as share premium.

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Renewable
energy and —
the Bahamas
Electricity |
Corporation

HE Bahamas Electricity

Corporation is inviting
proposals for renewable energy
power purchase agreements in
several technologies, officials have
told Tough Call.

Although there has been lots of
talk, this marks a dramatic policy
shift. It is driven by fear that esca-
lating oil prices and supply prob-
lems could disrupt the economy.
International concerns about pol-
lution and climate change are also
a big factor.

The pending request for pro-
posals follows the appointment of
a special committee at BEC to
research the most viable utility
scale renewable energy technolo-
gies for the Bahamas. This group
is headed by Jerome Elliot, a top
engineer, and includes Brian Tay-
lor, Robert Hall and Errol Davis.

They have identified the most
promising alternative methods to
produce electricity for the
Bahamas. These candidate tech-
nologies include solar photo-
voltaics (especially concentrating
trough collectors), hydrokinetics
(including ocean wave and tidal
systems), thermal conversion (such
as OTEC and biomass systems),
gasification (including the capture
of biogas from landfills) and wind
turbines.

“We are not yet at the point
where renewable energy is an eco-
nomic alternative at utility scale,”
BEC chairman Fred Gottlieb told

mein an interview. “But thistmay. :

come sooner rather than later giv-
en the escalating cost of fuel. Our
challenge is to get up and running
to prepare for that point. The
committee has put a lot of effort
into this - we are not just dabbling.
It is a part of this government’s
strategy and it is being actively
pursued.”

BEC supplies 85 per cent of all
Bahamian consumers, with an
installed capacity of about 400
megawatts. Grand Bahama Power
Company has an installed capaci-
ty oLabout 140 megawatts.

The cost to import the oil to
generate electricity in the
Bahamas is now running at over
$800 million a year. And BEC is
investing hundreds of millions in

‘new oil-fired generators for New

Providence, Abaco, Eleuthera and
Bimini to meet rising power
demands.

“Unfortunately, renewable
energy options cannot meet the
present rising demand on these
islands,” said BEC general man-
ager Kevin Basden. “But we are

looking to form public/private

partnerships with RE firms. I am
an engineer with 27 years experi-
ence at BEC and I totally support
these efforts, but it has to be prop-
erly managed.”

According to the committee,
BEC’s long-term planning must
seek to replace conventional fuels
with some combination of renew-
able energy technologies. A ratio
of at least nine megawatts of con-
ventional power to one megawatt
of power from renewable sources
has been proposed.

Among the most promising
alternative technologies for
Bahamian conditions is concen-
trating solar power -. using reflec-
tors to focus sunlight on to a tube
to heat a fluid which. produces
steam to drive a turbine that gen-
erates power.

This is the most mature solar
power technology, having been in
use since the 1980s. Six gigawatts
of capacity are now under devel-
opment around the world. How-
ever, these plants typically require
up to 500 acres of land for utility-

‘scale generation, which makes

them more appropriate for the
less-developed out islands, con-
nected via undersea cable to New
Providence.

At least one prospective
investor - Renewable Energy
Holdings of the United Kingdom
- has offered to finance a subma-
rine cable from Eleuthera to trans-
mit electricity produced by sun-
light, ocean waves or wind - or
some combination of each. REH
is a publicly traded company led
by Sir John Baker, who managed
Britain’s electricity privatisation
and restructuring programme.

TN=1-\an) Vine

The company owns, or is devel-
oping, wind farms in Germany,
Poland and Britain. It also owns a
landfill gas project in Wales and
has developed. advanced wave
power technology that pumps
high-pressure sea water ashore to
supply a reverse osmosis desali-

nation plant, or to generate zero-

emission electricity.

REH has offered to build such a
plant off the Atlantic coast of
Eleuthera, and BEC officials are
planning to visit a prototype plant
in Australia where this technology
is being tested.

Before its viability was threat-
ened by the withdrawal of a major
partner, the Baha Mar resort
development on New Providence
had proposed using OTEC tech-

‘nology to provide air condition-

ing to its waterfront hotels.

The Bahamas is considered an
ideal location for OTEC plants,
which must be within the tropics,
have a steep drop-off where the
ocean plunges to over 3,000 feet,
and be close to a power grid. New
Providence meets all these criteria.



warm surface sea water
into a tank. The air in the tank is
ptimped out to create a vacuum,
which vapourises the water. The
steam can be used to-spin a tur-

bine to generate electricity, and ©

then passes through a heat
exchanger where it is condensed -
by cold water pumped up from
the ocean - into fresh water.

BEC officials say that although
this technology is very capital
intensive and still in the develop-
ment stage, utility-scale joint ven-
tures with developers could be
“cautiously explored”. The Baha
Mar OTEC cooling project would
have cut the resort’s projected 23
megawatt electricity demand by
half, experts say.

Wind power is the world’s
fastest-growing renewable energy
technology with global capacity
currently at about 94 gigawatts,
but proposals for wind farms in
the Bahamas have fallen on deaf
ears in recent years. One reason is
because BEC’s investigation of
wind resoutces in 1991 concluded
that the costs did not justify an
investment in utility-scale genera-

tion. But that view has now °

changed.

“In the intervening years, all of
the previous objections (to wind
power) have been overcome,” the
BEC committee reported, “save
that of the visual impact of the
turbines.”

To understand what that means,
a few years ago an American com-
pany proposed building two large
wind farms on Abaco and
Eleuthera, each with 250 turbines
on thousands of acres of shore-
line. The two megawatt turbines
would have stood 450 feet high.
But this has to be weighed against
the cons of continued reliance on
fossil fuels.

The BEC committee has called
for a re-examination of the coun-
try’s wind resources in the light of
current technology and costs. It
also recommended a pilot wind
farm on the out islands, and sug-
gested that a hybrid wind farm
and wave power plant could sup-
ply all of Eleuthera’s energy needs.
BEC officials plan to visit the 23
megawatt Wigton wind farm in
Jamaica to see how the turbines
stand up to hurricane conditions.

Biofuel was not seen as a viable
solution for power generation in
the Bahamas, but a small produc-
tion plant is being set up in Nassau
by Bahamas Waste and Cape Sys-
tems of South Eleuthera. This
plant could produce sufficient
quantities of fuel from used cook-
ing oil to run BEC’s diesel vehicle
fleet. But as the committee points
out, burning biofuels will not elim-
inate carbon emissions, and large-
scale use will require continued

‘in OTEC plant\punips”.

=



reliance on costly imports.

In summary, the committee's
preliminary recommendations call
for BEC to build experimental
solar power facilities at its Blue
Hills and Clifton Pier sites, to
explore wave technology, to plan a
pilot wind farm, to explore fur-
ther co-operation on solar power
with Cape Systems on Eleuthera,
and to study the possibility of con-
sumer-scale implementation of
solar photovoltaics through net
metering.

According to Mr Basden, BEC
will also revisit the installation of
solar street lighting, which was
tried in Nassau on an experimen-
tal basis some 15 years ago but
never pursued due to maintenance
problems. BEC’s sub-stations and
public parks on New Providence
may also be fitted with solar lights,
he said.

And the corporation is promot-
ing energy efficiency at customer
education events around the coun-
try. The first energy fair was held
on Abaco recently and the next
will be on Eleuthera. The idea is to
push conservation measures that
.ordinary consumers can take - like

‘replacing old-style bulbs with com-

pact fluorescents. Experts say that
such measures alone could reduce
our energy costs by a third.

One technology that the com-
mittee did not explore in detail
was the production of energy from
garbage. But at least two firms are
already pursuing multi-million-
dollar waste-to-energy proposals
with the Ministry of Health, which
is responsible for landfills and sol-
id waste collection and disposal.

Innviron is a Florida-based firm
that manages more than 40 solid
waste facilities worldwide,-includ-
ing landfills, compost plants, recy-
cling facilities, and waste treat-
ment facilities. Innviron wants to
sort and ship metals, plastics and

-paper for recycling overseas, com-

post organic waste, and capture
landfill gas for energy production.

Meanwhile - as we reported last
week - a local group called
Bahamas Renewable Energy
Resources (headed by Waste-Not
Ltd's Virginia McKinney) is
proposing a thermal conversion
process that will virtually elimi-
nate landfills, compost organics
and convert most solid waste to a
non-toxic slag that can be used in
road-building and block-making.

“As we reduce garbage by 90

" per cent we will be able to power

over 70,000 households on New
Providence,” Mrs McKinney told
me, “as well as making millions
of gallons of potable water
through distillation.”

il prices are expected to

remain high and geopo-
litical issues are likely to cause
supply disruptions in the near-
term future, so it is more urgent
than ever for small island devel-
oping states like the Bahamas to
begin shifting their energy econo-
my away from fossil fuels.

The plain fact is that within 20
years we may be unable to afford
to buy the oil to run our economy.
We currently spend almost one
sixth of our GDP on fuel imports,
and by all accounts that price tag
will only go up. And if the tanker
doesn’t come, the country will shut
down.

To cut our dependence on fossil
fuels requires aggressive energy
conservation in the short term, as
well as a policy framework to
encourage research, development
and investment in a range of alter-
natives.

Another government-appointed
committee - headed by Philip
Weech, the new chairman of the
BEST Commission - is looking
into changing the legal and finan-
cial framework to provide for pri-
vate power generation and net
metering, and to promote invest-
ment in renewable energy.
PAGE 10, WEDIWE



SORY, APA. 30, 2008

mane

7 KPMG Telephone 242 394 200!
PO Box N i23 tax DA? 393 VTE
Montague Sterling Cerire Internet Wey ping Gam fs

East Bay Street
Nassau, Bahamas

INDEPENDENT AUDITORS’ REPORT

To the Shareholders of
Hang Seng Bank Trustee (Bahamas) Limited

We have audited the accompanying balance sheet of Hang Seng Bank Trustee (Bahanias) Limited
(“the Company”) as at 31 December 2007, and a summary of significamt accounting policies and
other explanatory notes (together “financial statement’ ae

Management's Responsibility for the Financial Statement

Management is responsible for the preparation and fair presentation of this financial Matement in.

accordance with International Financial Reporting Standards (“IFRS"). ‘This responsibility
includes: designing, implementing and maintaining internal control relevant to the preparalion
and fair presentation of the financial statement that is free from material misstaiement, whether
due to fraud or error: selecting ‘and applying appropriate accounting policies: and making
accounting estimates that are reasonable in the circumstances.

Auditors’ Responsibility

Our responsibility is to cxpress an opinion on this financial statement based on our audit, We
conducted our audit in accordance with International Standards on Auditing. Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance whether the financial'statement is free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statement. The procedures selected depend on, our judgment,
including the assessment of the risks of material misstatement of the financial statement, whether
duc to fraud or error. In making those risk assessments. we consider internal control relevant lo

the Company's preparation and fair presentation of the financial statement in order to design audit

procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company's intemal control. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of accounting estimates, if
any, made by management. as well as evaluating the overall presentation of the financial
statement.

:
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
- basis for our audit opinion.

Opinion

In our opinion, the financial statement presents fairly, in all material respects. the financial
position of the Hang Seng Bank Trustee (Bahamas) Limited as at 31 December 2007 in
accordance with IFRS.

Emphasis of Matter

Without qualifying our opinion we emphasize that this financial statcment does not comprise a
complete set of financial statements prepared in accordance with IFRS. Information on results of
operations, cash flows and changes in equity is necessary to obtain a complete understanding of
the financial position, performance and cash flows of the Company.

rPMK

Chartered Accountants
Nassau, Bahamas a

28 April 2008

HANG SENG BANK TRUSTEE (BAHAMAS) LIMITED

Balance Sheet

31 December 2007, with corresponding figures for 2006
(Expressed in United States dollars)









a Roe Nise essa
Assets :
Cash and cash equivalents "3&4 S L7T4ASTS — LS1S.889
Accounts receivable and other assets | 3 and Sia) , - 14.796
Total assets ~ S$ _1774.578 1.828.685

















Liabilities

oceans payable and other liabilities 3 and S(b) S 17,504 , 17,470
Current liabilities : NT SOF NATO
Equity :

Share capital : 5 S 1.000.000 1.000.000
Accumulated surplus nee he 787, O74 SUL2Q0S
Total equity 1.754.074 ae bss
Total liabilities and equity a oa



See accompanying notes to balance sheet.

The balance sheet has been approved by the Board of Directors on 28 April 2008 by the
following:

Mr. Joe Kennedy Chung King Cheng Director

Mr. Chi Son Leung Director



HANG SENG BANK TRUSTEE (BAHAMAS) LIMITED

Notes to Balance Sheet

31 December 2007
(Expressed in United States dollars)

SR I I ET

1. General information and significant accounting policies

(a) General information:

Hang Seng Bank Trustee (Bahamas) Limited (the Company). a wholly-owned
subsidiary of Hang Seng Bank (Bahamas) Limited, which is Incorporated under the
laws of the Commonwealth of The Bahamas. is inc orpurated under the laws of the
Commonwealth of The Bahamas and is licensed by the Ministry ef Finance of the
Bahamas Government to carry on trust business. :

(b) Ultimate holding company:

The ultimate holding company of the Company ix HSBC Holdmg> ple. which ts
incorporated in England. ,

(c) Statement of compliance:

The balance sheet has been prepared in accordance with International Finanesal
Reporting Standards (IFRS) and interpretations Promulgated by the iteration
Accounting Standards Board (LASBâ„¢) and the requirements of the kaws of the
Commonwealth of The Bahamas.

(d) Changes in accounting policies:

The LASB has issued a number of new and revised FERSs and Interpretations tint are
first effective or available for early adoption far the current a Counts

Shted ot the
Company.



Fee TAU

There have been no significant changes to the accounting policies applied in this
balance sheet for the years presented as a result of these development. However, as 4
result of the adoption of IFRS 7. “Financial instruments: Disclosures” and the
amendment to LAS | “Presentation of financial statements: Capital disclosures”. there
have been some additional disclusures provided as follows:

As a result of the adoption of IFRS 7. the financial statements include expanded
disclosure about the significance of the financial instruments and the nature and
extent of risks arising from) those instruments, compared with the information
previously required to be disclosed by [AS 32. “Financial instruments: Disclosure
and presentation”. These disclosures are provided throughout this balance sheet. in
paruculac in notes 2 and 8. -

The amendment to LAS | introduces additional disclosure requirements to provide
information about the level of capital and the Company's objectives. policies and
processes lor managing capital. These new disclosures are set out in note 5.

Both LERS 7 and the amendment to LAS | do not have any material impact on the
classification, recognition and measurement of the amounts recognized in the balance
sheet,

The Company has not applied any new. standard or interpretation that is not yet
effective for the current accounting period (see note 1c)». ‘

! New standards and injerpretations net vet adopted

A number of new standards, amendments to standards and interpretavions, are not yet
elfective for the year ended 31 December 2007, and have not deen applied in
preparing this eel sheet.

The Company. is in the process of making an assessment of what the impact of these
amendments, new standards and new interpretations is expected to be in the period of
initial application. So far it has concluded that the adoption of them is unlikely to
have a significant impact on the Company's results of operations and financial: :
position.

: In addition, the revised IASL: Presentation of financial statements. which becomes
effective for accounting periods beginning on or after 1 January 2009, may result in
new or amended disclosures in the balance sheet.

ifi Baste of preparation:

The balance sheet is presented in United States dollars, and are prepared on the
historical cost basis.

ft is the intention of the Directors to commence a voluntary liquidation of the
Company in the near future and a plan for closure is being developed. The Directors
consider that the most appropriate basis to prepare the financial statements is on a
break-up ‘basis. Asscts included in the balance shect are therefore stated at net
realizable value and estimated costs to be incurred for the voluntary liquidation will
be fully borne by the immediate holding company.

ww Use of estimates and judgments

The preparation of the balance sheet in conformity with TFRS requires management
to make judgments. estimates and assumptions that affect the application of
accounting policies and the amounts reported in the balance sheet and the
accompanying notes. ‘These estinittes and associated assumptions are based on
relevant infurmation available at the balance sheet date and. as such, actual results
nay differ from these estimates. ;

The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions te accounting estimates are recognized in the period in which the estimates
are revised and in any future perivds alfected.

in Cash and cash equivalenis

For the purpose of the statement of cash flows. cash and cash equivalents include
highly liquid investments that are readily convertible into known amounts of cash
and which are subject to an insignificant risk of change in value. Such investments
are normally those with less than three months” maturity from the date of acquisition,
and include cash and balances at central banks. treasury bills and other eligible bills,
loans and advances tw banks. and certificates of depusit.

a Foreign Currency IPGNSGCHONN

Transacligas. in foreign currencies are wanslated to United States dollars at the

forcig n eSchatige rates rulifig at the Gi of the Wansactions. Monetary assets and

iablitienglo minted in foreign curtencics at the balance sheet datecare translated :
United Stites doilars ait the foreign exchange tates ruling at that dite), Non- monétary

assets and liabilities denominated in foreign currencies, which are stated at historical

cast. are translated to United States dollars at the forsign exchange rates ruling at the

dates of the wansactions.



Tia

(pe Accounts paveile and omer iabilitics

Accounts payable are initially recognized at fair value and thereafier stated at
amortized cost unless the effeet of discounting would be immaterial, in which case
\

they are stated at cost. ae oe

2. Financial risk management

The Company has evposure to liquidity risk from its business and use of. financial
instrunvats. This note presents information about the Company's exposure. to this risk. the
Compaay’s objectives. policies and processes for measuring and managing risks. Further
quantitative disclusures are included throughout this balance sheet.

The Board of Directors has overall responsibility for the establishment and. oversight of the
Company's risk Hanagement framework.

As the Company is part ota larger group, the Cumpany follows the risk management policies
established by the group to identity and analyze the risks faced by the Company. to set
appropriate isk limits and controls, and to monitor-risks and adherence to limits. Risk
Management pohicies and systems are reviewed regularly to reflect changes in’ market
conditions and the Company's activities. The Company. through its training and management
standards and procedures. aims to develop a disciplined and.constructive control environment
in which wl eiplovees understand their roles and oblizauons.

The group audit commitice oversees how Management monitors compliance with the group's
tisk management policies and: procedures and reviews the adequacy of the risk management
framework in relation to the risks faced by the Company. The group audit committee is
assisted ii its oversight role by internal audit. Intemal audit undertakes both regular and ad
hoo reviews af risk management « vunttols and procedures. the results of which are reported to
the audit commitive

facgiandigy rixk

Paguudlts risk is the risk thatthe Company will not be able to meet its financial obligations as
they fail due. “Phe Comps 's inajet creditur ts its fellow subSidiary Uhat has ne plan to recall
the habilitios as at balance sheet date. The Company's approach to managing liquidity is to
ersure. as kit as posatble, that it will always have sufficient liquidity vo net its liabilities
When dug. under both normal and stressed conditions. without incurring unacceptable losses

vprsking damage tothe Company's reputation,
-

The contractual undiscoumted cash Hows of the Company's finanei liabilities are computed

at amounts not materially ditterent trom their carving values and are e\pected to be settled
wathin tf seats Avcordingly. exposure to liquidity risk is Limited and minimal.

§. Vransactions with related parties

Ia the normal Course vt business. the Company entered ity transactions with its intermediate
and inimediate holding companies and fellow subsidiaries. The transactions were priced
haocd on robo aint market rates atthe Cate of each transaction. and were under the same terms
te tose Geaubtble to other counterparties, Balances with) these relied parties as at 31
December 2U00 and 2000 are summarised below

etn seensnsennseansnsncneanmsnsns

2 oe _ a ‘007 2000
Cath and cast cquny alent. Ss POC iS7S ESTASSO
Ascounts recensabhe and other assets A730
\.counts pavable and other abilities 120M} HQ.299

2K as

TE

Cast cand caosty caquis saleats

Lc SSSR

_ we 2006 ,

CUrbent tec ouinit S hese POSE Zoe

wot sepostts 30] : 32.020
> ot ATS LST3.SNo

COSTE nh or a eh sO percon 26On Ser mer Garam Pte



wba ttt bee dO ta 2 et das
USL we, NP OU te, ey

Man in court over

stabbing death

court on time.

Mr Hanna told the court that it had been like a
game of “hide and seek” trying to track: down
embroiled in an altercation which ultimately led _ his client for the arraignment. Mr Hanna said his
to the deceased being stabbed multiple times chambers had made numerous inquiries through-
with a sharp object. out the day as to where Wright was being

Armbrister was reportedly rushed to Princess arraigned. Hanna told the court that his client’s |
Margaret Hospital in a private vehicle but died arraignment had been scheduled for Monday,
later as a result of his injuries. then Tuesday morning and then his chambers

ee Yesterday, Wright’s attorney Dwayne Hanna _ was informed shortly before 2pm yesterday that
Maturities of assets and liabilities told the court that his client had received death ‘Wright was being arraigned.
—_—_——$—$—$—$—$— rrr ee threats and asked that Wright be kept in solitary Chief Magistrate Gomez agreed that since he
facets, SS confinement away from the general prison pop- __ was representing Wright, he should have been
ulation. told when the arraignment was taking place.

Mr Hanna also expressed displeasure at the Magistrate Gomez said he would call the
way his client and his chambers had been treated _ prison to ask them to take special care of his
in regards to having his client brought to client.

Nassau flight delayed ‘jan found]

FROM page One passengers on this flight, but

: safety and security as always
always do for all such com- come first and we'll continue to

ments.” follow the same procedures for

vive ov



5. Share capital

ee
‘ 2007 2006

% Sie ae ne

Authorised, issued and fully paid:

1.000.000 shares of S] cach 1.000.000 100.000

The Company's primary objectives hen managing Capital are to safeguard Uhe Companys
ability to continue as a going concern, se that it can continue te provid \
shateholders and benefits for other stakeholders. by pricing products and sv tees
commensurately with the Jevel of risk and by securing ieeess to fimanee ala bests
The Company defines “Capital” as including all components ol equily.

ec oreturus bea

FROM page one

enable casi

$avith due regard to tie

The Company's capital structure is regularly review ed and managec
Adjustments are

capital management practice of the group ly which the Company belongs.
made to the capital structure in light of changes in economic conditions allecting: the
Company. to the extent that these do not conflict with the Directors’ fiducnirs duties towards
the Company. The Company's overall strategy remains unchanged fronithe pret year,

fay Accounts receivable and other assets

Within | year -
|
(by Accounts payabie and elitr iandities

Within 1 vear

f * a .
this caused for all of our other

Geographical distribution of asset

(ay Cashat bank innediate Noidiuniy «capitis

Americas

thy Call deposit die fromanionnedicte iaddine Conipot «

After the search, all passen-
gers, except the man making
the threat, were allowed to re-
board the aircraft and the flight
departed with a few hours
delay.

“We regret the inconvenience

all such threats,” the spokesper-
son said. |
Ms Pinson could not reveal

the identity of the man making

the threat and said she does not
know his purpose for travelling
to Nassau.

FROM page one

body and observed an

Asia-Paciti¢
apparent gunshot wound to

the head. :

Ms Mackey said initial
reports indicate that a lone
gunman shot the victim. The

erated that it is not the role of the US to interfere with the appoint- motive is not known. Last
ment process or selection of Supreme Court nominees ina foreign : Wednesday, two men were
country. : also’ shot in the head at
“That’s not my role,” he noted. : Adventurers Way and
Commenting on the almost 20-year-old indictment, the US Watlins Lane.
Ambassador said he was astonished to learn of it. Andy Wilfred Weekes,
“T was surprised to learn of that information the same way every- 32, died on arrival at hospi-
body else was,” he said. tal, and Terrel Mingo, also
However, he emphasised that it is not for “us Americans or the known as Jamaal Stubbs, 30,
Embassy to make a comment.” of Nassau, died the next
Mrs Nottage, at 64, is only months away from the constituted day. Their deaths were the
retirement age. 3rd and 4th of the year.
However, it is expected that Mrs Nottage will be given an exten- It is not known whether
sion so she can serve beyond her 65th birthday. | adhe two shootine According to the Bahamas Constitution, a Supreme Court judge { 4g g
can be permitted to serve until the age of 67, providing that the: :
Governor General, acting on the recommendation of the prime
‘minister and after consultation with the leader of the opposition,
agrees to it.

‘Wo live case’ against Rubie Nottage in US
FROM page one

Financial instruments 6

Financial assets of the Cumpany imelude cash and cash cquisaleats and atc counts tecans ale
and other assets. Financial liabilities of the Company meiude aecoants payable and other
liabilities. The fair value. of the financial iastruments was net matonlh. ditigren’ prone: ie
carrying amounts at 31 December 200" and 2u06

There were no off-balance sheet financial contacts critstandne ab the babap ce siyet dai
hedges of anticipated future transaeuons



Police are asking anyone
with information to assist
ee . them with their investiga-

CHARTER SERVICE tions.

SCHEDULE SERVICE

‘| rrezronr-NASSAU.

FREEPORT

Re Hee

STARTING —
Thursday, May Ist

Equipment: SAAB340 - 33 a in fight ee
DAILY FLIGHT SCHEDULE

Freeport to Nassau:

Fit Departs Equip. Freq.
501 7:00 am SAAB340 Daily
503 12:00 pm SAAB340 Daily
505 6:00 pm SAAB340 Daily

Nassau to Freeport:
Departs Arrives Equip. .- Freq.
7:55 am. 8:35 am SAAB340 Daily
» 12:55 pm 1:35 pm SAAB340 Daily
7:05 pm 7:45 pm SAAB340 Daily











The 2008 Carens is an all-new model, only the name of the previ-
ous model has been retained. Longer, wider and taller than its
predecessor (by 55, 50 and 40 mm respectively), the latest
Carens does not share a single panel with the old model and its
smoother exterior, with elegant detailing, results in significantly
improved aerodynamics.

For reservations: (Freeport) Regional Air at (242) 351-5614/352-7121 or 352-7969
(Nassau) SkyBahamas at (242) 327-8993/327-0250 or (242) 377-8777 on weekends
| Toll Free (242) 300-0294

Flights Operated By ¢





ON THE SPOT FINANCING AVAILABLE WITH
COMMONWEALTH BANK

INSURANCE AVAILABLE WITH ADVANTAGE
INSURANCE BROKERS & AGENTS LTD

SANPIN MOTORS LIMITED
Thompson Blyd, Oaks Field

Phone 242-326-6377

fax: 262:326-6315

FOR ALL YOUR

ADVERTISING
NEEDS CALL 322-1986



We are sorry for the inconvienience, there was an error
in yesturday’s paper, Tuesday, April 29th, 2008.


FAUE 12, WOUVINCOVAIL, AD Mik vy, cvvy

L ~~

INDEPE

To the Shareholders of

KPMG lelephone 242 393 2007
PO Box N 123 Fax 242 393 1/72
Montague Sterling Centre In t www.kpmg.com.bs



East Bay Street
Nassau, Bahamas

NDENT AUDITORS’ REPORT

Hang Seng Bank Trustee International Limited

We have audited the accompanying balance sheet of Hang Seng Bank Trustee International
Limited (“the Company”) as at 31 December 2007, and a summary of significant accounting

policies and

other explanatory notes (together “financial statement”).

Management's Responsibility for the Financial Statement

Management is responsible for the preparation and fair presentation of this financial statement in

accordance

with International Financial Reporting Standards (“IFRS”). This responsibility

includes: designing, implementing and maintaining internal control relevant to the preparation

and fair pre

sentation of the financial statement that is free from material misstatement, whether

due to fraud or error; selecting and applying appropriate accounting policies; and making
accounting estimates that are reasonable in the circumstances.

Auditors’ Responsibility

Our responsibility is to express an opinion on this financial statement based on our audit. We
conducted our audit in accordance with International Standards on Auditing. Those’standards

require that

we comply with ethical requirements and plan and perform the audit to obtain

reasonable assurance whether the financial statement is free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and

disclosures

in the financial statement. The procedures selected depend on our judgment,

including the assessment of the risks of material misstatement of the financial statement, whether
due to fraud of error. In making those risk assessments, we consider internal control relevant to
the Company's preparation and fair presentation of the financial statement in order to design audit

procedures

that are appropriate in the circumstances, but not for the purpose of expressing an

opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of accounting estimates. if

any, made
statement.

We believe

by management, as well as evaluating the overall presentation of the financial

that the audit evidence we have obtained is sufficient and appropriate to provide a

basis for our audit opinion.

Opinion

In our opinion, the financial statement presents fairly, in all material respects, the financial

position of

the Hang Seng Bank Trustee International Limited as at 31 December 2007 in

accordance with IFRS.

Emphasis of Matter

Without qualifying our opinion we emphasize that this financial statement does not comprise a
complete set of financial statements prepared in accordance with IFRS. Information on results of
operations, cash flows and changes in equity is necessary to obtain a complete understanding of

the financial

position, performance and cash flows of the Company.

KPM&-

' Chartered Accountants
Nassau, Bahamas

28 April 2008

HANG SENG BANK TRUSTEE INTERNATIONAL LIMITED

Balance Sheet

31 December 2007, with corresponding figures for 2006
(Expressed in United States dollars) ;











Note * 2007 2006
Assets
Cash and cash equivalents 3&4 S$ 1,100,320 1,211,596
Accounts receivable and other assets 3 & 6(a) 230,264 164,197
Total assets $ 1,330,584 1,375,793
Liabilities
Accounts payable and other liabilities 3 & 6(b) $ 203,519 19331 1
Current liabilities’ $ 203,519 see
Equity
Share capital 5 $ 1,000,000 1,000,000
Contributed surplus 300,000 * 300,000
Accumulated deficit (172,935) (117,518)
Total equity 1,127,065 1,182,482
Total liabilities and equity $ 1,330,584 1,375,793

See accompanying notes to balance sheet.

The balance
following:

sheet has been approved by the Board of Directors on 28 April 2008 by the

Mr. Joe Kennedy Chung King Cheng Director

Mr. Chi Son Leung Director

HANG SENG BANK TRUSTEE INTERNATIONAL LIMITED

Notes to Balance Sheet

31 December 2007
(Expressed in United States dollars)



1. General information and significant accounting policies

(a)

(b)

(c)

General information:

Hang Seng Bank Trustee International Limited (“the Company”), a wholly-owned
subsidiary of Hang Seng Bank Limited, which is incorporated in Hong Kong, is
incorporated under the laws of the Commonwealth of The Bahamas and is licensed
by the Ministry of Finance of the Bahamas Government to carry on trust business.

Ultimate holding company:

The ultimate holding company of the Company is HSBC Holdings plc, which is
incorporated in England. ,

Statement of compliance:

The balance sheet has been prepared in accordance with International Financial
Reporting Standards (“IFRS”) and interpretations promuigated by the International
Accounting Standards Board (“IASB”) and the requirements of the laws of the
Commonwealth of The Bahamas.

f

d) Changes in accounting policies:

The LASB has issued a number of new and revised IFRSs'and Interpretations that are
first effective or available for early adoption for the current accounting period of the
Company.
There have been no significant changes to the accounting policies applied in the
balance sheet for the years presented as a result of these development. However, as a
result of the adoption of IFRS 7, “Financial instruments: Disclosures’ and the
amendment to IAS 1 “Presentation of financial statements: Capital disclosures”, there
have been some additional disclosures provided as follows:

As a result of the adoption of IFRS 7, the financial statements include expanded
disclosure about the significance of the financial instruments and the nature and
extent of risks arising from those instruments, compared with the information
previously required to be disclosed by LAS 32, “Financial instruments: Disclosure
and presentation”. These disclosures are provided throughout this balance sheet, in
particular in notes 2 and 8. : \

The amendment to LAS 1 introduces additional disclosure requirements to provide
information about the level of capital and the Company’s objectives, policies and
processes for managing capital. These new disclusures are set out in note 5.

Both IFRS 7 and the amendment to IAS 1 do not have any material impact on the
classification, recognition and measurement of the amounts recognized in the balance

sheet.

The Company has not applied any new standard or interpretation that is not yet
effective for the current accounting period (see note 1(c)).

(¢) New standards and interpretations not yet adopted

A number of new standards, amendments to standards and interpretations are not yet
effective for the year cnded 31 December 2007, and have not been applied in
preparing this balance sheet. oe

The Company is in the process of making an assessment of what the impact of these
amendments, new standards and new interpretations is expected to be in the period of
initial application. So far it has concluded that the adoption of them is unlikely to
have a significant impact-on the Company's results of operations and financial
position.

In addition, the revised LAS1: Presentation of financial statements, which becomes
effective for accounting periods beginning on or after 1 January 2009, may result in
new or amended disclosures in the balance shect.

(f) Basic of preparation:

The balance sheet is presented in United States dollars, and are prepared on the
historical cost basis.

Use of estimates and judgments

The preparation of the balance sheet in conformity with IFRS requires management
to make judgments, estimates and assumptions that affect the application of
accounting policies and the amounts reported in the balance sheet and the
accompanying notes. These estimates and associated assumptions are based on
relevant information available at the balance sheet date and, as such, actual results
may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognized in the period in which the estimates
are revised and in any future periods affect: 1.

(h) Cash and cash equivalents

For the purpose of the statement of cash ws, cash and cash equivalents include
highly liquid investments that are readily nvertible into known amounts of cash
and which are subject to an insignificant r. . of change in value. Such investments
are normally those with less than three moni ° maturity from the date of acquisition,
and include cash and balances at central bar _,, treasury bills and other eligible bills,
loans and advances to banks, and certificates ~ deposit.

(i) Foreign currency transactions

Transactions in foreign currencies are trar ited to United States dollars at the
foreign exchange rates ruling at the dates of 1e transactions. Monetary assets and
liabilities denominated in foreign currencies 2 he balance sheet date are translated to
United States dollars at the foreign exchange es ruling at that date. Non-monetary
assets, and liabilities denominated in foreign.c_ rencies, which are stated at historical
cost, are translated to United States dollars at > foreign exchange rates ruling at the
dates of the transactions.

(j) Accounts receivable

Accounts receivable are initially recognized fair value and thereafter stated at
amortized cost less impairment losses for ba and doubtful debts (see note !(1)),

except where the receivables are interest-free ans made to related parties without
any fixed repayment terms or the effect of disc inting would be immaterial. In such
cases, the receivables are stated at cost less in airment losses for bad and doubtful
debts (see note {(m)).

(k) Accounts payable and other liabilities

Accounts payable are initially recognized a Jair value and thereafter stated at
amortized cost unless the effect of discounting vould be immaterial, in which case
they are stated at cost.

(I) Impairment of assets

Current and non-current receivables that are stated at cost are reviewed at each
balance sheet date to determine whether there is objective evidence of impairment. If
any such evidence exists, any impairment loss is determined and recognized as the
difference between the carrying amount of the financial asset and the estimated future
cash flows, discounted at the current market rate of return for a similar financial asset
where the effect of discounting is material. ;

If in a subsequent period the amount of an impairment loss decreases and the
decrease can be related objectively to an event occurring after the impairment loss
was recognized, the impairment loss is reversed through statement of income. A
reversal of an impairment loss shall not result in the asset's carrying amount
exceeding that which would have been determined had no impairment loss been
recognized in prior years.

Financial risk management

The Company has exposure to credit risk, liquidity risk and currency risk from its business
and use of financial instruments. This note presents information about the Company's
exposure to these risks, the Company's objectives, policies and processes for measuring and
managing risks. Further quantitative disclosures are included throughout this balance sheet.

The Board of Directors has overall responsibility for the establishment and oversight of the
Company's risk management framework.

As the Company is part of a larger group, the Company follows the risk management policies
established by the group to identify and analyze the risks faced by the Company, to set
appropriate fisk limits and controls, and to monitor risks and adherence to limits. Risk
management policies and systems are reviewed regularly to reflect changes in market
conditions and the Company's activities. The Company, through its training and management
standards and procedures, aims tc develop a disciplined and constructive control environment
in which all employees understand their roles and obligations.

The group audit committee oversees how management monitors compliance with the group's
risk management policies and procedures and reviews the adequacy of the risk management
framework in relation to the risks faced by the Company. The group audit committee is
assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad
hoc reviews of risk management controls and procedures, the results of which are reported to
the audit committee.

Credit risk

Credit risk is the risk that financial loss arises from the failure of a customer or counterparty
to meet ils obligations under a contract. It is primarily attributable to cash and cash
equivalents, accounts receivable and other assets. ,

The Company follows the group's established policies and systems for monitoring and control
of credit risk.

At the balance sheet date there were no significant concentrations of credit risk. The
Maximum exposure to credit risk is represented by the carrying amount of each financial
asset in the balance sheet after deducting any impairment allowance. The Company does not
provide any other guarantees which would expose the Company to credit risk.

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as
they fall due. The Company's major creditor is its fellow subsidiary that has no plan to recall
the liabilities as at balance shect date. The Company's approach to managing liquidity is to
ensure, as far as possible, that i: will always have sufficient liquidity to meet its liabilities
when due, under both normal and stressed conditions. without incurring unacceptable losses
or risking damage to the Company's reputation,
THE TRIBUNE

WEDNESDAY, APRIL 30, 2008, PAGE 13



‘The contractual undiscounted cash flows of the Company s financial abilities are computed
at amounts not materially different from their carrying vadues and are expected te be setthed

within | year. Accordingly. exposure to liquidity risk is Limited and minimal

Currency risk

The Company's forcign exchange exposure, which arose from currene, exposes onginated
by its insurance premium, 's managed within foreign exchange position limits approved by
the immediate holding company.

3. Transactions with related parties

In the normal course of business. the Company entered into transactions with tts inunediate
holding companies and fellow subsidiaries. The transactions were priced based on relevant
market rates at the time of each transaction, and were under the same terms as those available
to other counterparties. Balances with these related purties as at 31 December 2007 and 2006
are summarized below:







Cash and cash equivalents ; S 1.100,320 1.21 1SY6
Accounts receivable and other asscts 55.780 AO227
110,278 138.03 |

Accounts payable and other liabilities

4. Cash and cash equivalents









oe,
; 2007 2000

Current account S OS2471 1.132.703
Savings account 42.340 ae

Call deposit 105.809, 30.171

S$ 1.100.320 121.90

The effective interest rate on savings account and call deposit were 1.03 percent (2006:
1.18%) per,annum.

5. Share capital



Authorised, issued and fully paid:

1.000 shares of $1,000 each S 1.000.000 1.00.00

The Company's primary objectives when managing capital are to safeguard the Company's
ability to continue as a going concern, so that it can continue to provide returns for
shareholders and benefits for other stakeholders. by pricing products and services
commensurately with the level of risk and by securing aecess to finanee ata reasonable cost
The Company defines “Capital” as including all components of equity.

The Company’s capital structure is regularly reviewed and managed with due regard io the
capital management practice of the group to which the Company belongs. Adjustments are
made to the capital structure in light of changes in economic conditions affecting the
- Company. to the extent that these do net conflict with the Directors’ fidueiary duties tow ards
the Company. The Company's overall strategy remains unchanged from the prer year.

6. Maturities of assets and liabilities



aS
2007 2006

fay Accounts receivable and otiter dysety
Within | year S 213.529 1o4.197
Between 1-5 years 16. 33 -
$ 230, ser 164.197

(b) Accounts payable and other liabilities

Within | year $ 203,519

7. Geographical distribution of assets

Cash and cash equivalents ~ call deposit and savings

Asia-Pacific lou 1G

Cash and casi equiveients ~ current account

Americas 1o0 1a

8. Financial instruments

Financial assets of the Company include cash and cash equivalents and accounts receivable
and other assets. Financial liabilities of the Company include accounts payable and other
abilities. The fair values of the financial instruments was not materially dilferem from the
carrying amounts at 31 December 2007 and 2006.

There were no off-balance sheet financial contracts Gulstandi! ag at the balance slivet date as
hedges of anticipated future transactions.

If

IN THIS FRIDAY ’S
EDITION OF
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good cause, campaigning
for improvements in the
area or have won an
award.

If so, call us on 322-1986
and share your story.















One year on:
reflections on

FNM Cabinet
appointments

FROM page one

sition.
In appointing his most

- recent senior team, Mr Ingra-

ham brought nearly all of his
23 elected members of the
House of Assembly into his
Cabinet, including many
young faces and future aspi-
rants to the top post in the
FNM.

Former FNM leader Tom-
my Turnquest, Dion Foulkes,
Carl Bethel and Zhivargo
Laing are among the top
names when considering a
successor to Mr Ingraham,
along with current Deputy
Prime Minister, Brent
Symonette, who sometimes is
left out of such discussions
because he is a white man in
a predominantly black coun-
try.

One senior FNM told The
Tribune yesterday that it is
too early in this new term to
fully judge the performance

-of these ministers as poten-

tial future leaders.

The prime minister makes
his appointments, the source
said, in the case of junior
ministers, to “get a feel for
their management skills more
than anything else.”

“We are one year on now,
and | think it’s time that he
would be doing that review.
It’s normally done after the
first year, not within the first
two months or even two
weeks,” he said.

The prime minister will
make this assessment of

younger members, the source
sadded, along with the more
“experienced members from’ ‘
“ prior administrations, and “it

is during this time that he
would make those shuffles.”

Tommy Turnquest, who
lost much political capital
during the 2005 leadership
race when Mr Ingraham came
back, has been given a fresh
chance to revitalise his polit-
ical career-in one of the high-
profile Cabinet posts: Nation-
al Security.

And, as an additional vote
of confidence, the prime min-
ister has made Mr Turnquest
leader of government busi-
ness in the House.

“Tommy Turnquest has
been given a second life,”
said the source. “It’s obvious
that the prime minister has
taken him under his wing
once again and he has been
given an opportunity to shine
and to show the type of lead-
ership skill that would ren-
der him attractive in the next
dispensation.”

The difficulty Mr Turn-
quest has, however, is record
levels of violent crime in 2007
that continue in 2008. The
consequence of this is that
the public has become

increasingly fearful and sen--

sitive to reports of violence
and murders that consistently
remain on the front page of
newspapers and as lead sto-

ries on the broadcast media.

Though no minister or
commissioner of police can
» solve the problem alone, the
country is looking for lead-
ers who can at least make
some positive contribution.

Consequently, there will be
close scrutiny of Mr Turn-
quest's performance inside
and outside'of his party, and
it will be hard for him to
claim successes when all indi-
cators reveal that high levels
of crime will persist in the
Bahamas.

Dion Foulkes has been hid-
den away from the regular
view of the public because of
the nature of his portfolio as
Minister of Labour and Mar-
itime Affairs.

“You measure that in
accordance with what hap-
pens in that area — whether
there are some demonstra-
tions, work stoppages. He is
not in one of those high-pro-
file ministries,” said the
source.

As a consequence Mr
Foulkes has been almost ‘the
lost man’ of this senior group.
The fact that he has been
unable to win a seat in two
consecutive elections, in addi-

Carl Bethel

tion to his less than exciting
post, further diminishes his
currency among his party and
colleagues for future leader-
ship consideration.

Carl Bethel, as Minister of
Education, has been enthusi-
astic about his portfolio.
However, the issue of school
violence may overshadow
other initiatives the minister
works diligently towards.

As new literacy pro-
grammes go unreported, los-
ing space to school stabbing
after stabbing, Mr Bethel will
need to find a way to break
through these headlines in

order to make a mark for.
himself in the post, if he

remains there.

The source also said that
Mr Bethel “has to temper
himself a little more” as “he
has a tendency to always say
exactly what he feels.”

Though, he added, the
Seabreeze MP, who is very
intelligent, listens more since
he first entered politics.

Zhivargo Laing has been
given great latitude by Mr
Ingraham to be the public
face of finance for the gov-
ernment, while Mr Ingraham
holds the substantive post.

But the Mona Vie affair,
which is now before the
courts, has somewhat thrown
a cloud over his political
career.

“He needs to be more per-
sonable. He seems to be
unapproachable at times.
And he needs to listen more,
too. But he has great poten-
tial. He knows finance —
that’s where he is, that’s
something that he knows. He
lives and breathes that,” the
FNM insider said.

Brent Symonette is regard-
ed by the FNM analyst as “a
good and astute politician.”
What must be remebered, he
said, when people question
Mr Symonette’s electability
is that he was “elected”
deputy leader of the FNM,
and not appointed.

Delegates at convention
mirror society at large, added
the source, and the majority
of these people are black,
indicating that Mr Symonette
does have support.

Tennyson Wells, who still
regards himself as an FNM,
despite his resignation from
the Ingraham cabinet in 1999,
said that Mr Turnquest, Earl
Deveaux, Mr Bethel and Mr
Laing appear to be the ones
who have been visible in this
government, along with the
prime minister.

“They seem to be the peo-
ple that are projecting them-
selves. The other young fel-
las, you don’t see them, I
don’t know if they are just
sitting there or whether they
are making up a number or
what,” he said, noting that
the public is even hearing less
from Mr Symonette in recent
months.

Though the FNM has sev-
eral young members with
eyes on the leadership post,
Mr Wells believes the prime
minister will run again in the
next election.

“If they are able to revive
the economy and things are



Dion Foulkes









Zhivargo Laing .



Ingraham will go
said Mr Wells,

good,
another term,”

. who does not think that the

age of 64 or 65 years is too
old for a person to seek re-
election.

Asked if he thinks the
young members will become
restless if Mr Ingraham seeks
re-election again, Mr Wells
said:

“No. Nobody in there is
strong enough to challenge
Ingraham — not that I see
there. If Ingraham wants to
go another term with the
group he has there, not a man
would say a word,” said Mr
Wells. “He (has) free rein.”

This inability of the next
FNM generation to step up
and be willing to stand out or
challenge the status quo in
the party is something Mr
Wells thinks is not ideal for
the country.

“What the country needs
now in Cabinet are people
who could be policy-makers
who could chart a new
course, so to speak, or be
innovative and get things
done like in the transporta-
tion system; in the agricul-
tural sector; in the tourism
sector,” Mr Wells added.

Former FNM Cabinet min-
ister Pierre Dupuch, who has
been a vocal critic of Mr
Ingraham since he was fired
in 1999, does not think any
of the FNM cabinet, thus far,
has stood out from the pack.

“My feeling is that when
Hubert says jump, they say
how high on the way up.” he
said. “That's my analysis of
it.”

Mr Dupuch said he does
not think the Cabinet has
shown much independence at
all thus far. And if these
would-be leaders wish to con
vince the public that they can
lead the country in the future,
he said, “they have to come
up with some original ideas”
and “they have to show a lit-
tle bit of independence.”

The prime minister is by
nature a “one man show”
suggested Mr Dupuch, which
makes it difficult for others
to come to the forefront.
PAGE 14, WEDNESDAY, APRIL 30, 2008 THE TRIBUNE



INTERNATIONAL NEWS

Dog survives eight days trapped in
rubble after Colorado explosion

@ BRECKENRIDGE, Colo.

A DOG was found alive and in relatively
good shape after spending eight days trapped
in the rubble of a building that exploded,
critically injuring the pup’s owner, accord-
ing to Associated Press.

Lulu, a Springer spaniel, was rescued Sun-
day after the owner of the business that had
been housed in the two-story building heard



1. HAWKSBILL SUBDIVISION,
FREEPORT.
LOT NO. 152
PROPERTY DESCRIPTION: Single
Family Residence
PROPERTY SIZE: 0.12 acres
LOCATION: Northwestern side of
intersection of Inagua Drive & Court #3

APPRAISED VALUE: $82,250

2. FREEPORT CITY SECTION 2,
FREEPORT
LOT NO. 113
PROPERTY DESCRIPTION: Four-Plex
Apartment Building
PROPERTY SIZE: 12,564 sq. ft.
LOCATION: On north of Nansen Avenue
and east of Forbisher Drive
APPRAISED VALUE: $200,000

FREEPORT

LOT NO. 57

PROPERTY DESCRIPTION: Single
Family Residence

PROPERTY SIZE: 5,487 sq. ft.
LOCATION: Abaco Drive
APPRAISED VALUE: $89,000

4, HUDSON ESTATES, FREEPORT
LOT NO. 393
PROPERTY DESCRIPTION: Incomplete
Structure, 1,284 sq. ft.
PROPERTY SIZE: 7,493 sq. ft.
LOCATION: Nansen Avenue & west of
Coral Road :
APPRAISED VALUE: $34,000

5, QUEENS COVE, FREEPORT.
LOT NO. 5 Block 25
PROPERTY DESCRIPTION: Single
Family Residence
PROPERTY SIZE: 0.22 acres
LOCATION: Along Victoria Lane south
of Whitehall Place

APPRAISED VALUE: $170,000

6. CHESAPEAKE SUBDIVISION,

FREEPORT te . /
kOT:NO.15 Block:31°. . ! i

| PROPERTY DESCRIPTION: Single
Family Residence
PROPERTY SIZE: 0.37 acres
LOCATION: Adjacent to a mini cul-de-
sac off the western section of Cutlass
Avenue :
APPRAISED VALUE: $147,000

LOT NO. 5 Block 17

PROPERTY DESCRIPTION: Single
Family Residence, 4 beds/ 3 baths
PROPERTY SIZE: 0.28 acres
LOCATION: Northern side of a cul-de-
sac called Churchill Court
APPRAISED VALUE: $307,420

1. BAHAMIA WEST REPLAT, FREEPORT
LOT NO. 19 Block 20
PROPERTY SIZE: Single Family Lot
0.27 acres
LOCATION: Western Side of Perth Court
cul-de-sac
APPRAISED VALUE: $27,000

2. FORTUNE POINT SUBDIVISION,
FREEPORT
LOT NO. 15 Block 7 Unit 4
PROPERTY SIZE: Single Family
12,075 sq. ft.
LOCATION: Eastern Side of Cooper
Road
APPRAISED VALUE: $35,000

3. DERBY SUBDIVISION, FREEPORT .
LOT NO. 9 Block 17 Unit 3
PROPERTY SIZE: Single Family Lot
0.30 acres
LOCATION: Queens Highway &
Dagenham Drive
APPRAISED VALUE: $33,000

4, LINCOLN GREEN SUBDIVISION, _

FREEPORT
LOT NO. 14 Block 10 Unit 2
PROPERTY SIZE: Multi / Single Family
0.44 acres
LOCATION: Government Road west of

. Fortune Bay Drive :
APPRAISED VALUE: $30,000

5. GRAND BAHAMA EAST SUBDIVISION,
FREEPORT
LOT NO. 152 Block “D” Section 2
PROPERTY SIZE: Single Family Lot
0.23 acres
LOCATION: South side of Kay Avenue
west of Drayton Street intersection
APPRAISED VALUE: $15,000

6, VOYAGER BAY SUBDIVISION,
FREEPORT
LOT NO. 1 Block 25
PROPERTY SIZE: Multi-Family
21,009 sq. ft.
LOCATION: Fronts along the curve o
Bradfield Lane. .
APPRAISED VALUE: $57,000

her whimpering.

“We turned off the radio and started call-
ing out Lulu’s name. Then we heard some
yelping,” Brian Hold, owner of Good Times
Adventures, told the Summit Daily News in
Tuesday’s editions.

Lulu’s owner, Brian Mislanski, had been
critically injured in the April 19 explosion
and remained at St. Anthony. Central Hos-
pital in Denver on Tuesday.

14.CORAL REEF ES

8. BAHAMA BEACH, GRAND BAHAMA

LOT NO. 264

PROPERTY DESCRIPTION: Single
Family Residence, 4 beds / 3 baths
PROPERTY SIZE: 0.16 Acres .
LOCATION: Western side of Rocky Point
Road :

APPRAISED VALUE: $211,536

9. HAWKSBILL SUBDIVISION,

FREEPORT

LOT NO. 124 ;
PROPERTY DESCRIPTION: Single
Family Residence, 1 bed / 1 bath
PROPERTY SIZE: 5,400 sq. ft.
LOCATION: Abaco Drive
APPRAISED VALUE: $70,000

FREEPORT

LOT NO. 5 Block 17

PROPERTY DESCRIPTION: Single
Storey Residence, 3 Bed / 2 Bath
PROPERTY SIZE: 15,000 sq. ft.
LOCATION: North along Dominica
Avenue and east of Beach Way Drive
APPRAISED VALUE: $250,000

411.,BAHAMIA WEST REPLAT

SUBDIVISION, FREEPORT

LOT NO. 22 Block 16

PROPERTY DESCRIPTION: Single
Family Residence, 3 beds / 2 baths
PROPERTY SIZE: 16,300 sq. ft.
LOCATION: On Iverness Lane
APPRAISED VALUE: $259,000

12.CIVIL INDUSTRIAL AREA, FREEPORT

LOT NO. 6 Block V

PROPERTY DESCRIPTION: Split Level
Commercial

PROPERTY SIZE: 17,500 sq. ft.
LOCATION: Fronting Walton Street and
east of Wimpole Street.

APPRAISED VALUE: $625,000

13, BAHAMIA NORTH SUBDIVISION,

FREEPORT
LOT NO. “Fairway Manor” Condominium

‘Apartment #304

PROPERTY DESCRIPTION: 1 bed / 1
bath

PROPERTY SIZE: 650 sq. ft.
LOCATION: Opposite the Golf Course
APPRAISED VALUE: $65,000

FREEPORT

LOT NO. 63 :
PROPERTY DESCRIPTION: Single
Storey Residence ‘
PROPERTY SIZE: 9,810 sq. ft.
LOCATION: Fronts along the eastern
side of Coral Reef Boulevard
APPRAISED VALUE: $119,000

. HUDSON ESTATES SUBDIVISION,

FREEPORT

LOT NO. 206

PROPERTY SIZE: Single Family Lot
7,300 sq. ft.

LOCATION: East of the intersection of
Rutherford Circle and Triana Drive.
APPRAISED VALUE: $20,000

. LINCOLN GREEN SUBDIVISION,

FREEPORT __

LOT NO. 46 Block 16 Unit'5
PROPERTY SIZE: Single Family Lot
0.26 acre

LOCATION: Southern side of Moor
Close east of intersection of Moor drive
& Moor Close.

APPRAISED VALUE: $31,000

|. LINCOLN GREEN SUBDIVISION,



EEPORT
LOT NO. 26 Block 1 Unit 1
PROPERTY SIZE: Duplex Lot
13,800 sq. ft.
LOCATION: South Side of Ludford Drive
APPRAISED VALUE: $38,000

10.BAHAMA PALM SHORES, ABACO

LOT NO. 11 &12 Block 27
PROPERTY SIZE: 20,000 sq. ft.
Single / Multi-Family lot

LOCATION: Southeast of Ocean View
Drive

APPRAISED VALUE: $52,000

411.ROYAL BAHAMIAN ESTATES,

FREEPORT

LOT NO. 36 Block 1

PROPERTY SIZE: 0.34 acres

Single Family lot

LOCATION: Eastern side of Honduras
Drive

APPRAISED VALUE: $28,000

412.LINCOLN GREEN SUBDIVISION,

LOT NO. 3 Block 16 Unit 2
PROPERTY SIZE: 20,250 sq. ft.
Multi Family lot

LOCATION: Southern side of Fulton
Lane and East Sunrise Highway
APPRAISED VALUE: $47,000

“I’m happy,” Mislanski told The Associ-
ated Press on Tuesday. He declined to com-
ment further, but friends who are caring for
Lulu said they took her to visit him — with
permission from the hospital.

Veterinarian Christine Murphy said Lulu
suffered mild dehydration and had some trau-
ma to her left eye. She probably survived by
drinking melting snow and eating food she
found in the debris, Murphy said.



15.REGENCY PARK SUBDIVISION,

FREEPORT

LOT NO. 60 Unit 2 / Section Ill
PROPERTY DESCRIPTION: Single
Storey Residence, 3 bed / 2 bath
PROPERTY SIZE: 11,340 sq. ft.
LOCATION: 265 yards west of the
intersection of West Regency Drive and
Brighton Drive.

APPRAISED VALUE: $132,300

FREEPORT

LOT NO. 27 Block 8

PROPERTY DESCRIPTION: Single
Storey Residence, 3 bed / 2 bath
PROPERTY SIZE: 0.19 Acres
LOCATION: Southern Side of
Independence Avenue.
APPRAISED VALUE: $118,440

17.HUDSON ESTATES, FREEPORT

LOT NO. 443

PROPERTY DESCRIPTION: Single
Storey Residence, 3 bed / 2 bath
PROPERTY SIZE: 0.24 Acres
LOCATION: Southeast corner of Nansen
Avenue and Mandeville Road
APPRAISED VALUE: $126,445

18.ARDEN FOREST SUBDIVISION,

FREEPORT

LOT NO. 38 Block 10 Unit5 = -
PROPERTY DESCRIPTION: Incomplete
Single Family Residence to belt
PROPERTY SIZE: 14,083 sq. ft.
LOCATION: Duke Drive

APPRAISED VALUE: $52,000

VACANT LOTS

13.BAHAMIA SOUTH, SECTION Vi,

SUBDIVISION, FREEPORT.

LOT NO. 5 Block 9

PROPERTY SIZE: Multi Family
Residential - 1.03 acres :
LOCATION: Southern side of Pint
Avenue and Santa Maria Avenue.
APPRAISED VALUE: $75,000

14.MURPHY TOWN, ABACO

LOT NO. #67 Crown Allotments #1
PROPERTY SIZE: 6,935 sq. ft.

Single / Multi-Family lot

LOCATION: Main Street of Murphy Town
APPRAISED VALUE: $11,096'

15.HOLMES ROCK, GRAND BAHAMA

LOT: Tract of Land

PROPERTY SIZE: Single Family lot
0.20 acres

LOCATION: Southern side of Queens
Highway / eastern side of PC Plaza
APPRAISED VALUE: $20,000

16. MURPHY TOWN, ABACO.

LOT NO. #67 Crown Allotments #2
PROPERTY SIZE: 12,100 sq. ft.

Single / Multi-Family lot

LOCATION: Main Street of Murphy Town
APPRAISED VALUE: $19,360

LOT NO. 13 Block 2 Unit 2
PROPERTY SIZE: Multi Family Lot
17,500 sq. ft.

LOCATION: Along Heybridge Drive 125
Ft. along the waterfront

APPRAISED VALUE: $64,000

INTERESTED PARTIES SHOULD SUBMIT OFFERS (INCLUDE TELEPHONE CONTACT AND POSTAL ADDRESS)
TO: ASSISTANT VICE PRESIDENT, CREDIT RISK, P. 0. BOX SS-6263, TEL. 394-6465; FAX: 393-2883, OR CHRISTOPHER KNOWLES
(FREEPORT), P.O. BOX F-40876, TEL: 352-8307; FAX: 352-8221 FOR FURTHER INFORMATION.

* WE RESERVE THE RIGHT TO REJECT ANY OR ALL OFFERS

©2008 CreativeRolations.not



ATE



TIBETAN EXILES, including monks and nuns, participate ina silent



Binod Joshi/AP



march to protest against China in Katmandu, Nepal, Monday, April 28,
2008. Thousands of Tibetans, mostly monks and nuns, held another of
their near-daily demonstrations Monday in Nepal's capital, urging the
U.N. to investigate China's crackdown on protests, but for the first time
they were not stopped by police. The protesters began their demon-
stration Monday in Swayambhu, an area dotted with Buddhist monas-
teries and Tibetan refugee camps, and marched two kilometers (one
mile) to the United Nations’ human rights office, where they handed a
statement to officials asking the world body to investigate alleged
killings and other alleged violations of human rights in Tibet.

China sentences
30 people over
riots in Tibet

® BEWING

SIX BUDDHIST monks
were among 30 people sen-
tenced by a Chinese court Tues-
day to jail terms ranging from
three years to life for taking part
in deadly riots in Tibet, accord-
ing to Associated Press.

The punishments were the
first to assaults, burning, loot-
ing and vandalism mainly tar-
geting Han Chinese and their
businesses in the Tibetan capital
of Lhasa and nearby areas
between March 14-16. ’

The violence and subsequent
government crackdown drew
worldwide attention to China’s
human rights record and its rule
in Tibet ahead of the Beijing
Olympics. Celebrations mark-
ing 100 days to the start of the
games take place Wednesday.

Trial

The sentences were
announced during two sessions
of a one-day trial at the Inter-
mediate People’s Court of
Lhasa, the official Xinhua News
Agency reported. China Cen-
tral Tclevision’s evening news-
cast showed the convicts being
led out by police with bowed
heads in front of a packed court-
room.

Xinhua said three men
received life sentences, including
a Buddhist monk identified as
Basang who allegedly led 10
people, including five other
monks, to destroy local govern-
ment offices, burn down shops
and attack policemen.

Two of Basang’s alleged
monk accomplices were sen-
tenced to 20 years, and the oth-
er three to 15 years in jail.

So@nam Cering, a driver for a
Lhasa real estate company, was
sentenced to life in jail.

The third man to receive a life
sentence was a 30-year-old busi-
nessman who was identified
only by his last name, Cering,
Xinhua said. The agency report-
ed that he was convicted of incit-
ing others to commit arson and
looting shops and vehicles dur-
ing riots in his home county of
Lingzhou, about 40 miles east
of Lhasa, on March 15 and 16.

CCY said seven people were
sentenced to about 15 years in
prison, and the other 20 received
sentences of between three to
14 years. The charges included
arson, robbery, interruption of
law enforcement, and theft, it
said.

The quick trials and their
prominent coverage by state
media signaled China’s resolve
in putting a firm lid on domestic
Tibetan dissent ahead of the

_ Summer Games.

“The party has a long tradi-
tion of carrying out speeded up
trials with minimum forms of
process for defendants whenev-
er it wants to send a strong mes-
sage to local people,” said Rob-
bie Barnett, an expert in mod-
ern Tibet at Columbia Univer-
sity.

Such trials originated in China
in the early 1980s in so-called
“Strike Hard” campaigns,
intended to speed up prosecu-
tions for crimes considered at
threat to social stability, he said.

Foreign Ministry spokes-
woman Jiang Yu defended the
judicial process, saying during a
regular press briefing Tuesday
that the competent authorities
would handle the Tibetan law-
breakers “according to the lo
moved to tamp down tensions
diplomatically. The government
announced last week that it
would be willing to begin talks
with representatives to the Dalai
Lama, the exiled spiritual leader
of Tibet whom Beijing has
blamed for fomenting the
unrest.

Jiang said “specifics of the
contact and consultation have
still yet to be further discussed.”

The gesture comes after rights
groups and pro-Tibetan sup-
porters outside China protest-
ed against the Olympic torch
relay at several stops around the
world, resulting in massive dis-
ruptions and clashes with pro-
China groups in some cities.

Investigators

On Monday, Tibetan author-
ilies announced the reopening
of one of Tibet’s main monas-
teries, the Sera, which was
closed after the riots, something
officials had said would happen
once investigators determined
if any monks took part in the
unrest.

China has said 22 people died
in the riots; Tibet’s government-
in-exile said Tuesday it believes
at least 203 Tibetans were killed
in the ensuing crackdown,

The estimate was compiled
from the government-in-exile’s
own sources, Tibetan exile
groups and official Chinese
media. [t was impossible to inde-
pendently verify the informa-
tion.

The protests, initially led by
Buddhist monks, started peace-
fully on March 10, the anniver-
sary of a failed Tibetan upris-
ing against Chinese rule.

They became violent four
days later as Tibetans attacked
cars and shops run by Han Chi-
nese, China’s majority ethnic
group.
THE TRIBUNE




' WEDNESDAY, APRIL 30,

INSIDE ¢ International sports news —

PAGE 15

Sanceeeeeeeensneee









2008

Ne middleweight champion waiting for opponent

FIRST CLASS PROMOTIONS is forced to wait once again to conclude arrangements for Jermaine ‘Choo Choo’ Mackey’s British Commonwealth

title fight...



(ee

‘Choo Choo’ Mackey training for
British Commonwealth

# By BRENT STUBBS
Senior Sports Reporter
bstubbs@tribunemedia.net

irst Class Promotions

is forced to wait once

again to conclude

arrangements for
Jermaine ‘Choo Choo’ Mack-
ey's British Commonwealth
title fight.

Mackey, the Bahamian and
undisputed World Boxing
Council’s Caribbean Boxing
Federation and World Boxing
Association’s FedeCaribe
super middleweight champion,
was originally scheduled to
fight African Charles “The Cru-
sader’ Adamu for the vacant
British Commonwealth title.

But during a waiting period
to finalise financial arrange-
ments for the fight, Adamu was
stabbed in his homeland and
promoter Michelle Minus said
they had to go back to the
drawing board for another
opponent.

First Class eventually settled
on Irishman Brian McGee.

The fight was set for Satur-
day, May 24, at Kendal Isaacs
Gymnasium. But Minus said
they once. again had to. delay
the completion of the deal after
McGee got injured in training.

Minus, however, said the
fight is still on, but they are in
the process of trying to find yet
another opponent for Mackey.

“This isn’t anything new.
Things like this happen all the
time in boxing,” Minus stated.
“It’s not the first time that we
have had opponents lined up
and they didn’t fight because
of an injury.”

Minus said they are waiting
on word from Bahamas Boxing
Commission secretary Fred

NPSA gets set for fast-pitch season

@ By BRENT STUBBS
Senior Sports Reporter
_ bstubbs@tribunemedia.net

THERE will be some new
faces on some different teams
this year as the New Provi-
dence Softball Association gets
set to start its 2008 fast-pitch
season.

On Saturday night at
_ Banker’s Field at Baillou Hills
Sporting Complex, the NPSA
will begin the new campaign
under a new executive board.

In a rematch of last year’s
final, defending champions
Electro Telecom Wildcats will
square off against runners-up
Proper Care Pool Lady Sharks
in the women’s opener at 7pm.

And in the men’s nightcap
at 8.30pm, defending champi-
ons D’s Truckers will put their
title on the line against the
youthful New Breed.

Sidney ‘Bobby Baylor’ Fer-
nander, who will begin his first
sting as the new president, said
they are anticipating a very
competitive year with seven
men’s and five women’s teams
lined up to compete this year.

In addition to the Truckers
and New Breed, the NPSA will
see the return of the Royal
Bahamas Defence Force
Floaters. The Mighty Mitts,
Outlaws and the Dorcy Park
Boyz are also entered.

Joining the Wildcats and the
Lady Sharks in the women’s
division are the BTC Connec-
tors and the Bommer George
Swingers. The DHL Brack-
ettes are also coming back this
year.

“Everything seems to be in
place. We are a little bit behind
in funds, collecting our fees,
but other than that, we’re ren-
ovating the field, redoing the
lights and putting up the score-
board,” Fernander noted.

“We’ve made some changes
to the structure of the field.

We’re doing some last-minute:

touches, but we will be ready
to go on Saturday. It should
be a very exciting season.”

Fernander noted that, while
they have lost one or two
teams, they welcome back the
Defence Force in the men’s
and the Brackettes in the wom-
en’s competition.

The Brackettes, managed by
Fernander, will be in a rede-
velopment stage with a virtu-
ally young squad on the field.

“Nobody wants to develop.
Everybody wants to win,” Fer-
nander pointed out. “We’re
not strong at all. All we have is
a bunch of young players.

“I don’t anticipate anything.
We’re just going to go out
there and play as best as we
can and try to develop the
young kids. We’re not looking
for anything. If the opportuni-
ty develops where we can look
good, we will take it. But most
of the teams have all of the
experienced players.”

While Fernander just wants
to go out and play, Proper
Care Pool will be looking to
improve on their runner-up
position last year in the wom-
en’s division.

“This time, we want to go all
the way,” said manager
Stephen ‘Bishop’ Beneby. “We
lost our lead-off batter (Keisha
Pratt) to pregnancy, but every-
body else is back.

“Two or three of my girls
may not be here for the open-
ing game because they had
already booked flights to be
abroad this weekend, but we
still should have a super sea-
son.”

Kelly Smith, Alex Taylor,
Thela Johnson and Rosemary
Greene are among players who
should once again make an

es

AN ELECTRO Telecom Wildcats player (pitching) in action...

impact for the Lady Sharks.
Beneby, who serves as the
new secretary, said he also
anticipates the NPSA having
a “super season” this year.
“We’ve added the Defence
Force men and in the ladies,



the Brackettes are back,” he
stated. “All of them should be
very strong, especially the
Defence Force.”

Commodore Clifford ‘Butch’
Scavalla, who hasn’t played
since the dynasty of the Bud-

weiser Eagles came to an end,

is expected to head the .

Defence Force team along
with veteran outfielder the Rev
Dencil ‘Joe Black’ Clarke.

With the Defence Force
coming back into the league,
they have lured officers
Ramon Storr and brothers
Philip and Terrance Culmer
from the Truckers, leaving the
defending champions a little
weaker. Dwayne Mackey i
also on their roster.

Along with the Defence
Force, New Breed, coached by
the association’s first vice-pres-
ident Martin ‘Pork’ Burrows,
are expected to be another
team to watch in the men’s as
they are a little more experi-
enced than they were last year.

Alcott Forbes, the best
young pitcher in the league,
along with Rashad Seymour
and Erin Adderley, are some
of their key players.

The Truckers, managed by
Perry Seymour, are back with
all of their other players,
including veteran pitcher
Leroy Thompson and infielder
Marvin ‘Tougie’ Wood.

All of the rosters have not
yet been submitted to Bene-
by. But, based on what he’s
seen from those turned in,
Beneby stated that the fans can
look forward to some compet-
itive teams across the board.

While the Wildcats report-
edly lost some players like
Chryshan Percentie, Renee
‘Sunshine’ Curry and Jean
‘Bubbles’ Minus, they are still
looking at ace Mary ‘Cruise’
Edgecombe on the mound.

Percentie, along with Chris-
tine Jenoure, have joined the
Swingers.

Manager Gary ‘Super’ John-
son will still rely on pitcher
Desiree Taylor and versatile
Nerissa Seymour.



title fight

Sturrup, who is attending a

British Commonwealth board

meeting in England.
Meanwhile, Minus said they

are still going on with their

preparation for the show,
which will have an all-Bahami-
an undercard.

In the co-main event, there
will be a heavyweight elimina-
tion bout between Jerry ‘Big
Daddy’ Butler and James
‘Killer’ Coakley scheduled for
10 rounds. The winner will
work towards a shot at the
Bahamas heavyweight title
held by Renaldo ‘The Termi-
nator’ Minus.

Also expected to fight on the
undercard are Ryan ‘Big
Youth’ McKenzie against
Richardo ‘One Shot’ Bethel;
Keisno Major will make his pro
debut against Ramon ‘Smok-
ing’ Rolle and Damian ‘The
Blade’ Tinker will go up
against Hensley ‘The Bruiser’
Strachan.

“Although we are still wait-
ing on a new opponent to be
named for Jermaine Mackey,
we are still going ahead with
all of our plans for the show,”
Minus said.

A press conference is
planned for May 8 when full
details of the show will be
released to the media.

Meanwhile, Minus said
Mackey is in the gym at the
Baillou Hills Sporting Complex
and. he’s working out vigor-
ously in preparation for his
long-awaited British Com-
monwealth title bout.

Mackey is hoping to become
the next Bahamian to win a
British Commonwealth title,
following in the footsteps of his
trainer and mentor, Ray Minus
Jr.

Cricket:
WR CHITRA

lefeats
Police

SATURDAY, April 26,
Dockendale defeated the
youthful Police team by 264
runs.

Dockendale, batting first,
scored 387.



Team captain and
Bahamas national team
captain, Narendra

Ekanayake, scored 124 not
out.

Police scored 123.

National team players
Greg Taylor, Marc Taylor
and Randolph Coakley
scored 24 runs each.

Sunday’s match between
Dorsey Park Boyz and St
Agnes was a thriller.

Dorsey Park Boyz batted
first and scored 205.

Mario Ford was the top
scorer for Dorsey Park with
56.

Bowling for St Agnes,
Hesketh Dean and Carl
Thomas took three wickets
each.

St Agnes scored 184 to
lose the match by 21 runs.

Jeff Stuart made his
debut batting for St Agnes
and scored a 40 runs.

Next weekend Dock-
endale will face off against
Commonwealth on Satur-
day while Paradise and St
Agnes will meet on Sunday.

The BCA teams will
begin playing League
matches in uniform on Sat-
urday, May 3, a first for the
Bahamas.
PAGE 16, WEDNESDAY, APRIL 30, 2008

TRIBUNE SPORTS



i ee aa aa ae
lanchester United sets up first

all-English European Cup final

@ By ROBERT MILLWARD
AP Soccer Writer

MANCHESTER, England (AP) —
Soccer’s European champion will be
from England.

Manchester United set up the first
all-English final in the history of the
Champions League, beating Barcelona
1-0 Tuesday night behind Paul Scholes’
goal in the 14th minute.

After winning the home-and-home
semifinal on 1-0 aggregate, Manches-
ter will meet Chelsea or Liverpool in
the final on May 21 at Moscow.

“It doesn’t matter who we play,”
United manager Alex Ferguson said.

Chelsea hosts Liverpool on Wednes-
day after gaining a 1-1 tie at Anfield
last week when Liverpool’s John Arne
Riise accidentally headed the ball into
his own net during the fifth minute of
injury time.

Manchester United and Chelsea won
their home games against each other in
the Premier League this season and tied
1-1 at Wembley in the Community
Shield. United swept its two league
matches against Liverpool.

“Whoever is put in front of us we’re
going to have to get past,” United mid-
fielder Michael Carrick said. “We’re
happy with anything. We’re there, and
we can enjoy it now.”

The final will be just the third involv-
ing clubs from the same nation in the 52-
year history of the competition. Real
Madrid defeated Valencia in 2000's all-
Spanish matchup, and AC Milan beat
Juventus in 2003’s all-Italian final.

“T think that the level of the English
teams is very high,” Barcelona coach
Frank Rijkaard said. “It’s strange to see
English teams defending, defending and
defending with their lives and trying to
win with the counterattack.”

A 33-year-old midfielder easily visible
because of his red hair, Scholes beat
goalkeeper Victor Valdes on a 25-yard
shot after a giveaway by Gianluca Zam-
brotta. That put Manchester United in
its first Champions League final since
1999.

Scholes scored just his second goal
of the season, his first since August 15 in
a Premier League match against
Portsmouth. He missed the 1999 final, a
victory over Bayern Munich, because
of a suspension.

After the match, he exited through a
side door and did not speak with
reporters.

“I don’t think we can expect Paul
Scholes to score 10-15 goals a season



MANCHESTER United’s Ji-Sung Park (left) battles for the ball with Barcelona’s Lionel Messi during Champions League semifinal second-
leg soccer match at Old Trafford stadium in Manchester, England, yesterday.

like he used to do when he was younger,
but he certainly delivered one tonight
for us,” Ferguson said. “It makes up for
the all the goals that he can’t score
because of his age now.”

.United, which also won the title in
1968, extended its home winning streak
in Champions League play to 12 games.
Manchester United also is closing in on
its second straight Premier League title.
With two matches left, it is tied with
Chelsea at 81 points but ahead on goal
difference.

Barcelona, struggling in recent weeks,

has been held scoreless in four straight
matches in all competitions.

“J have no intention of leaving,”
Rijkaard said. “The players in the dress-
ing room are very down, sad and disap-
pointed, but it’s easy to kick people
when they are down. Instead they need
help and support and to lift them, so
they can show their courage and per-
form well between now and the end of
the season.”

Wayne Rooney was missing from
Man United’s lineup after aggravating a
hip injury during Saturday’s 2-1 league

(AP Photo/Paul Thomas)

loss at Chelsea, leaving Cristiano Ronal-
do and Carlos Tevez up front.

In a physical game, Scholes knocked
down Barcelona’s Lionel Messi just out-
side the penalty area in the first minute.
But Messi’s ensuing free kick was
blocked.

Barcelona, in an effort to find an elu-
sive tying goal, brought on Thierry Hen-
ry in the 60th minute and 17-year-old
Bojan Krkic in the 72nd. Henry had a
good chance on a header off a corner
kick, but it went directly to goalkeeper
Edwin van der Sar.

China marks 100 days until Olympics

& By STEPHEN WADE
AP Sports Writer



BEIJING (AP) — Shim-

* mering stadiums and billions
of dollars spent to remake
Beijing into a modern city
have been overshadowed by
pro-Tibet protests, chaos on
the Olympic torch relay, and
an anti-Western backlash by
angry Chinese who sense
their coming-out party is
being spoiled.

With 100 days to go, the
battle has. been lost to keep
politics out of the Beijing
Olympics.

A year ago, former Interna-
tional Olympic Committee
President Juan Antonio
Samaranch predicted Beijing
would be the “best in
Olympics history.” A few
weeks ago, his successor,
Jacques Rogge, said the
games were “in crisis.”

The shine is off, and the
question is this: Can China
and the IOC restore some
luster by returning sports and
goodwill to the games?

The Olympics have been
visited by politics before, but
these have become the most
contentious since the boycotts
of the 1980s.

“The Chinese leadership
has a major international
public relations problem on
its hands,” said David L
Shambaugh, a political scien-
tist and director of the China
policy programme at George
Washington University.

“The Chinese government
and citizenry are now
involved in fighting a propa-
ganda war with the West and
the Western media in particu-
lar. This stance, taken togeth-
er with hyper Chinese nation-
alism, has all the makings of a
public relations disaster for
the Olympic Games.”

There’s a rancorous atmos-
phere in Beijing these days.

Deadly riots last month in
Tibet spurred anti-China
protests in London, Paris, San

‘Francisco and other cities of
the torch relay. Last-minute
rerouting of some legs creat-

ed a farce. In Pakistan, India
and elsewhere, organizers
shortened routes, tightened
security, and turned the relay
into invitation-only events
that kept out the general pub-
lic.

The coverage of these
protests has been met with a
propaganda war by China, |
accusing the Western media
of orchestrated bias — partic-
ularly CNN and the British
Broadcasting Corp.

There have been nasty out-
breaks of Chinese national-
ism, fueled by the attack on a
young Chinese athlete in a
wheelchair who defended the
Olympic torch at the relay in
Paris. Claiming an insult to
national pride, protesters’
have gathered outside the
French retailer Carrefour in
about a dozen Chinese cities,
with small scuffles between
Chinese and foreigners.

The Beijing Olympics were
political from the moment
China was chosen seven years
ago by the IOC. This was fol-
lowed by lavish, unprecedent-
ed spending on every phase
of the games, a strategy by
the ruling Communist Party
aimed at showcasing China’s
growing economic and politi-
cal power.

There’s still time to rescue
the games.

A tiny turnaround might
begin with several low-key
events Wednesday as organiz-
ers celebrate 100 days to go: a
mini-marathon race around
the two iconic Olympic
venues — the National Stadi-
um, known as the Bird’s Nest,
and the swimming and diving
arena dubbed the Water
Cube — and the finals of a
four-year contest to pick offi-
cial Olympic songs.

The return of the Olympic
flame to mainland China in
early May could signal that
the worst is over, with the
domestic portion of the relay
likely to have few protests —
at least that anyone will see.

The flame arrives in Hong
Kong on Wednesday. Three
pro-Tibet activists who
planned to protest in Hong

THIS JS NoTEâ„¢A

start

‘



IN THIS March 26, 2008 file photo, an activist protests witha poster against the violation of human rights in
Tibet, in Hanover, northern Germany. ~

Kong were deported after

. they arrived at its airport

Tuesday. On Saturday, three
Danish human rights activists
also were detained and
deported.

Despite security clamp-
downs and tightened visa
restrictions to keep out trou-
blesome foreigners, disrup-
tions still could occur during
the torch relay elsewhere in
China, particularly in Tibet or
the western region of Xin-
jiang.

Any partial boycott of the
opening ceremony — a
response to the crackdown in
Tibet — would stir more anti-
Western sentiment.

China’s offer last week to
start talks with representa-
tives of the Nobel Peace lau-
reate Dalai Lama might help
to defuse demonstrations.

English-speaking Chinese
volunteers — about 70,000
are expected at the games —
may also soften the edge once
the games begin. At test
venues, they’ve swarmed for-
eign reporters, helping with
translation, or simply stood at
attention wearing yellow, smi-
ley-face buttons.

A draconian plan to shut
down heavy industries and
halt construction has been
announced to temporarily rid

Beijing of its air pollution,
which had been the most
menacing problem for the
games until the Tibet rioting.

“I believe the image of Chi-
na’s Olympics is still good,”
said Jin Yuanpu, a political
scientist and executive direc-
tor of the Humanistic
Olympic Center at Renmin
University in Beijing. “It’s
just the Western media and
some Westerners who are
taking this opportunity to
attack us. Chinese are trying
their best to be a good host.”

Of course, potential flash-
points loom.

During the games, protests
of Chinese policies in Tibet
and Darfur could attract wide
coverage by 30,000 journal-
ists, testing government toler-
ance. Spared so far, high-pro-
file Olympic sponsors such as
Coca-Cola and General Elec-
tric could be dragged in.

“If someone unfurls a Tibet
banner in the crowd, it will be
recorded on TV or by a
mobile phone even if the
police move in fairly quickly,’
said Brian Bridges, a political
scientist at Hong Kong’s
Lingnan University.

China and the IOC have
always said the games are
about sports, not politics. At
a news conference earlier this

>

(AP Photo/Kai-Uwe Knoth, File)

month with top-ranking IOC
officials, however; the first
comment from Wang Wei,
the executive vice president
and general secretary of the
Beijing organizing committee,
was a long defense of China’s
Tibet policy.

Wang sat beside Hein Ver-
bruggen, and his comments
came as the Dutch IOC mem-
ber gave an impassioned
defense of the IOC, saying it’s
a sporting body that should
avoid political issues.

“There is a very thick, fat
red line between the two,”
Verbruggen said of politics
and sports.

At several sports venues
during test events, politics
were on the table. A 180-page
government-published book
in English was available to
reporters explaining Chinese
foreign policy, defense policy,
religious freedom and human
rights.

A year ago, a state-pub-
lished magazine wrote that
“Chinese security experts
expect no serious problems”
for the Olympics.

Now, government officials
are warning that terrorism is
the biggest threat to the
games, and they’ve been
promised cooperation from
Interpol to thwart any attack.

Thousands
cheer torch
through
Vietnam's
largest city

@ By CHRIS BRUMMITT
Associated Press Writer

HO CHI MINH CITY,
Vietnam (AP) — Thousands
cheered the Olympic torch
through Vietnam’s largest city
Tuesday, ending to the inter-
national leg of the flame’s
relay after weeks of protests
and disruptions by anti-China
activists.

The torch now will be taken
to the Chinese territories of
Hong. Kong and Macau and
then the mainland, including
restive Tibet and the summit
of Mount Everest, and finally
to the Games themselves in
Beijing in August.

The relay got off to a shaky
start in Ho Chi Minh City
after the flame went out less
than 700 feet from the start
outside the city’s 19th century
opera house, but Olympic offi-

‘ cials reignited it after several

minutes.

Chinese citizens, mostly
those working or studying in
Vietnam, were the loudest
among the crowds in this
southern city, which was once
known as Saigon. Waving
huge red flags, they chanted
“Beijing! China!” repeatedly
as if they were at a soccer
match. -

“Seeing this makes me so
happy,” said Emily Chen, a
Chinese worker at a Nike fac-
tory in Vietnam. “More power
to China!”

Vietnam had assured its
communist ally and giant
northern neighbor it would
not allow demonstrators to
disrupt the parade, but several
demonstrators staged a brief
rally earlier in the capital.

They were detained after
unfurling an anti-China ban-
ner and shouting “Boycott the
Beijing Olympics” in a market
in Hanoi, two witnesses said
on condition of anonymity
because they were afraid of
getting into trouble with
authorities. Police declined
comment.

The torch relay has been
disrupted by protests or con-
ducted under extremely heavy
security since it left Greece on
March 24, turning an event
that should have built up
excitement for the Games into
something of a public relations
disaster for the hosts.

The protests have mostly
been in response to China’s
crackdown last month on anti-
government riots in Tibet and
to more general concerns over
human rights issues in China.

China and Vietnam fought a
border war in 1979, but ties
have improved in recent years.

“T don’t know about the
protests in other countries, but
as far as Vietnam is con-
cerned, we are happy to wel-
come this torch,” said Vu Thi
Van, a 61-year-old woman
who was carrying an Olympic
flag.

Scores of Western tourists
along with ordinary Viet-
namese, some with children
on their shoulders, jostled to
get a view of the torch as,it
was carried past famous land-
marks, including the Rex
Hotel, where many U.S. mili-
tary officers stayed during the
Vietnam War.

“The protests have been
mistaken,” said Nguyen Manh
Hung, an economics student.
“Sport should bring people
together.”

The torch arrived in Viet-
nam from North Korea, where
tens of thousands of citizens
were mobilized to celebrate
the relay in Pyongyang in the
flame’s first visit to the
authoritarian nation.

Even though the flame will
soon be on Chinese soil, there
are no guarantees of an easy
ride.

On Tuesday, three pro-
Tibet activists who planned to
protest during the Hong Kong
leg of the torch relay were
stopped on arrival at the terri-
tory’s airport and deported,
said Lhadon Tethong of Stu-
dents fora Free Tibet.

Hong Kong Immigration
Department spokeswoman Ho
Tse Bing-yee declined com-
ment.

Disruptions also could occur
during the torch relay in main-
land China, particularly in
Tibet or the western region of
Xinjiang.
TRIBUNE SPORTS

WEDNESDAY, APRIL 30, 2008, PAGE 17



ia eM aa ALORS ol ae ee a

5

mane
Magic get
OB COS AT



for second
round

@ By TRAVIS REED
Associated Press
Writer

ORLANDO, Florida
(AP) — Orlando Magic
coach Stan Van Gundy
doesn’t want his players to
see or hear him for two days.
After all, they deserve it.

The Magic were getting
rested up for the second
round Tuesday as the rest of
the Eastern Conference con-
tinued to slog through the
first round. Orlando
wrapped up its series against
the Toronto Raptors 4-1
after a 102-92 home win
Monday.

“All I want them to do the
next two days is enjoy it,”
“Van Gundy said. “And then
on Thursday I’ll go back to
being myself again and we’ll
start getting ready. But for
the next two days I want
them to enjoy it. I don’t
want them to have to see
me. I won’t yell at anybody
about anything. They can
just have some fun.”

Orlando already looked °

like it was having plenty on
the court. Dwight Howard
was even better than in the
regular season, if that’s pos-
sible. He had 19 points and
12 rebounds in Game 3 and
19 points, 16 rebounds and a
franchise-record eight blocks
in Game 4.

Those were the off-days.-

Howard had at least 20
points and 20 rebounds in
each of the other three
games, the first player since
Wilt Chamberlain in the
1972 NBA finals to accom-
plish that feat three times in
a series, according to the
Elias Sports Bureau.

Howard and'the Magic
felt they had something to
prove. Although Orlando
won 52 games, 12 more than
last season, and locked. up
the No. 3 seed in the Eastern
Conference, few considered
the Magic a legitimate con-
tender. That could change,
with the heavily favored
Boston Celtics and Detroit
Pistons struggling in sepa-
rate series that will last at
least six games.

The Magic will play the
winner of Pistons-76ers, on
several days of rest. If it’s
Philadelphia, they'll even
have home-court advantage.

The Magic rolled despite
losing the 3-point touch that
had helped carry them all
year. Orlando shot 38.6 per
cent in the regular season,
fourth-best in the league. In
five games against Toronto
they hit 32.4 per cent, includ-
ing 9-for-32 Monday night,
9-for-31 in Game 2 and 6-
for-27 in Game 3.

“Jameer and I’ve been
here, it’s been a long road
for us,” Howard said of
point guard Jameer Nelson,
who along with him was
drafted in 2004 after the
Magic finished 21-61.
“We've always been doubt-
ed, and for us to close out a
series, it feels good.”

The Magic have been try-
ing in vain for more than a
decade to return to their glo-
ry days of the 1990s, when
Shaquille O’Neal led them
to back-to-back division
championships and they
made the NBA finals in 95,
then the Eastern Conference
finals in 796.

This was the first time
Orlando advanced out of the
first round since that run 12
years ago.

“We’re happy that we
won the first round, but we
still have business to take
care of,” Nelson said.
“We’re not totally satisfied
right now. Our goal is to def-
initely win a championship,
and we’re headed in the
right direction.”

INSIGHT

For the stories

behind the news,
ie=F-Co Mp -Tfo/ 4) 4
on Mondays



“

James confiden

heading to Game

@ By TOM WITHERS
AP Sports Writer



INDEPENDENCE, Ohio (AP) —
LeBron James whistled an unrecognizable
tune — no, it wasn’t one of Jay-Z’s — as he
practiced free throws. He seemed blissfully

serene.

Staying that way will be tough. He’s got
to go at least one more round with the

Washington Wizards.

A target of taunts and physical abuse
almost since the opening tip in Game 1,
James and the Cavaliers can eliminate the
Wizards from the playoffs for the third
straight season Wednesday night.

James, who has enhanced his profession-
al resume by dispatching the Wizards on
early summer vacations, knows it won’t be
easy to end this first-round series. The Wiz-
ards are in a bind, even desperate.

“They ain’t go no choice but to be des-
perate,” said James, who is averaging 29.5
points, 8.5 rebounds and 6.5 assists in four
games. “They’re down 3-1. We need to put

them away.”

On Tuesday, James wouldn’t comment
on the latest insult from Wizards center
Brendan Haywood, who a day earlier
mocked Cleveland’s All-Star by saying,
“Awww, they’re trying to hurt me” in a
whiny voice in response to James’ asser-
tion following Game 4 that the Wizards are

out to get him.

But James stood by his remark: He does-
n’t think the Wizards can come back to win

the series.

“T just have confidence in our team,” he
said. “It has nothing to do with the Wizards.

They’re a very good team, but they’ve got to

beat us three straight games and I can’t see

that happening.”

The Wizards haven’t been eliminated on
the road since 1988, when they were
knocked out in the first round at Detroit. To
avoid a similar fate in Game 5, they'll need

to do a better job on James.



WASHINGTON Wizards’ Antawn Jamison (second from left) and Brendan Haywood (second from

right) rush in to separate Cleveland Cavaliers’ LeBron James (left) and Washington Wizards’

DeShawn Stevenson (right) in the second quarter of Game 4 of a first-round basketball playoff series,
Sunday, April 27, 2008 in Washington. Stevenson was charged with a flagrant foul on the play after
hitting James and knocking his headband off.

(AP Photo/Pablo Martinez Monsivais)

Larry Brown to coach Jordan-led Bobcats

@ By MIKE CRANSTON
AP Sports Writer

CHARLOTTE, N.C. (AP)
— Larry Brown wanted to res-
urrect his vagabond, Hall of
Fame coaching career. Michael
Jordan needed a veteran
teacher and a big hire to rescue
his sinking reputation as an
NBA executive.

The two former North Car-
olina players teamed up Tues-
day when Jordan introduced
Brown as coach of the Char-
lotte Bobcats — his ninth NBA
coaching job. Brown agreed to a
four-year contract, returning to
the state where his nomadic
coaching journey began.

“How are you going to say
no to Michael?” Brown said.
“T’ve known him a long time.
The things he stands for have
made our game better. There’s
no way I could say no to him. It
was a pretty easy decision once
my wife said yes.”

The 67-year-old Brown
replaces Sam Vincent, whom
Jordan hired last year despite
no NBA head coaching experi-
ence. Vincent, who was fired
Saturday, struggled to find con-
sistent rotations and clashed
with players in a 32-50 season.

Brown’s nine NBA teams are
three more than any other
coach — Kevin Loughery and
Lenny Wilkens each coached
SIX.
“T think ’ve coached almost
everybody in the NBA, but I’m
going to challenge everybody
to do their best,” Brown said.
“That’s what Michael is about
and that’s what I’m about.”

The Bobcats are in their
fourth year, and Brown gives
the struggling franchise instant
credibility. He’s one of only five
NBA coaches with more than
1,000 wins and the only coach to
lead teams to NBA and NCAA
titles.

“J don’t want to put too much
pressure on Larry,” Jordan said.
“But I think this is the atmos-
phere he enjoys.”

But Brown hasn’t lasted any-
where long, and has had some
ugly divorces. His last coaching
job was the disastrous 2005-06
season in New York, when the
Knicks went 23-59 and Brown
clashed with management.

His dismissal was followed by
a long dispute over how much
money he was owed for the rest
of his contract.

A deal eventually was struck
and Brown became an execu-
tive vice president with the
Philadelphia 76ers, but Brown
yearned to return to the bench.

“I was a bad coach. I did a
bad job. I learned from that,”
Brown said, referring to his time
with the Knicks. “But being out
of it in the last few years, even
though I had a title in Philly ... I



THIS October 21, 2005 file photo shows New York Knicks head coach Larry Brown gesturing during the first quar-
ter of pre-season NBA game. Brown has reached an agreement to return to the NBA as coach of the Charlotte
Bobcats, a person familiar with the decision told the Associated Press on. Monday, April 28, 2008.

just missed being around the
game. I love it. | want to be a
part of it.”

Jordan said he contacted
Brown before hiring Vincent
last spring, but Brown said he
wasn’t ready to return. He
changed his mind late this sea-
son, quitting his job in Philadel-
phia after being interviewed for
the Stanford opening.

Shortly after the Bobcats
fired Vincent on Saturday, Jor-
dan called Brown again. The
Bobcats job was more appealing
and didn’t entail a cross-country
move from Philadelphia.
Brown’s mother lives in Char-
lotte and he has other relatives

there.

“I’m from California, but we
just moved in September,” said
Brown’s wife, Shelly. “Selfishly,
I would not be ready to up and
move to another coast. I think
here Larry is surrounded by a
lot of great guys with the same
value system, same character.
And they all want to win.”

Brown was a point guard at
North Carolina under Dean
Smith, decades before Jordan
led the school to a national title
under the same coach. Brown’s
coaching career took root in this
state. He was hired to coach
Davidson, only to resign a
month later without a coaching

(AP Photo/LM Otero, File)

a game. He then went on to
coach the ABA’s Carolina
Cougars.

While Brown took UCLA to
the Final Four and won an
NCAA title with Kansas, most
of his experience has been in
the NBA. Brown improved
teams in Denver, San Antonio,
Indiana and Philadelphia and
won an NBA title with the
Detroit Pistons in 2004.

“I’m very excited, of course,”
Bobcats point guard and for-
mer Tar Heel Raymond Felton
said. “Carolina guy. He loves
his point guards, for one. And
on top of that he’s a great
coach. He’s going to come in

Celtics,
Hawks
escape
(liscipline
for Game 4
Skirmish

By JIMMY GOLEN
AP Sports Writer

WALTHAM, Mass. (AP) —
Boston Celtics coach Doc
Rivers remembers being in a
couple of fights in his playing
days, so he understands what’
was going through Kevin Gar-
nett’s mind when he pushed off
from a referee who was trying
to make peace. .

“Right afterward, I felt like
a dunce,” Rivers said. “At. the
time, though, there was noth-
ing in me that didn’t feel like it
was the right thing to do.”

The rough-and-tumble play-
off series between the Celtics

‘and Hawks returns to Boston

for a fifth game on Wednesday
night, with both teams getting
good news from the league after
practice on Tuesday. NBA
spokesman Tim Frank said
there would be no fines or sus-
pensions for a Game 4 alterca-
tion that resulted in double
technicals to each side.

“The game’s emotional for
everyone,” Rivers said after the
team’s workout but before the
league’s decision was
announced. “It’s easy to say,
*Just step away.’ We, as a team,
have to stop putting the league
in a position where they have
to make a decision. That’s on
us; that’s not on the league.”

The incident in the second
quarter of Atlanta’s 97-92 vic-
tory on Monday night began
when Garnett cleared out Zaza
Pachulia with an elbow, and the
Hawks forward went foréhead-
to-forehead with the Celtics
star.

Referee Ed Rush grabbed
Garnett, but he, too, got a push
as Garnett struggled to break
free. “The referee grabbed me,”
Garnett said.. .

“In the heat of the battle like
that, you never know what’s
going on,” said Hawks forward
Marvin Williams, who also
escaped discipline. “You never
know who’s grabbing you. ’m
sure he had no intention of
hurting anybody. He just plays
hard. It got pretty emotional
out there.”

Williams and Celtics center
Kendrick Perkins both admit-
ted stepping onto the floor to
see what was happening — a
no-no in the NBA, especially
with commissioner David Stern
in the crowd. But they were not
punished under the rule
designed to keep incidents from
escalating into bench-clearing
brawls.

“Technically, I broke the
rule,” Williams said. “But I had
no intentions of doing anything
on the court. I was just trying to
see what was going on.”

Said Perkins: “I didn’t real-
ize it until I watched the tape.”

. every day and he’s going to try

to get us better. I’m definitely
looking forward to this experi-
ence.”

Brown, who was inducted
into the Hall of Fame in 2002,
will now try to get the Jason
Richardson-led Bobcats into the
playoffs and help Jordan taste
success for the first time in two
stints running NBA teams.

While Jordan won six NBA
titles with the Chicago Bulls,
he’s made several questionable
moves in the front office.

Vincent’s ouster marked the
second time a coach Jordan
hired lasted only one season.
Leonard Hamilton resigned
after going 19-63 with the
Washington Wizards in 2000-
01.

Jordan was fired by the Wiz-
ards. He bought a minority
stake in the Bobcats in 2006 and
took over the decision-making
from Bernie Bickerstaff. When
Bickerstaff moved to the front
office after three seasons on the
bench, Jordan replaced him
with Vincent.

“I told Michael, *?’'m not com-
ing here unless I know you're
fully committed,’ Brown said.
“He told me that last year and
he told me it again. You know
how competitive he is. He wants
to win. I can get to him at any-
time, and he’s surrounded him-
self with people that I really
respect and like.” :
PAGE 18, WEDNESDAY, APRIL 30, 2008



| WEDNESDAY EVENING APRIL 30, 2008

7:30






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( & & & WORLD TRADE CEN-







THE TRIBUNE.















































lL et Charlie the
Bahamian Puppet and ,
his sidekick Derek out a

some smiles on your :

kids’s faces.








| Bring your children to the
Mctlappy Hour at McDonald 's in
Malborough Street every Thursday
from 3:30pm to 4:30pm d uring the
month of April 9008. |
















Enjoy Great Food, Prizes and Lots of Fun.

{T\

i'm lovin’ it






THE TRIBUNE

WEDNESDAY, APRIL 30, 2008, PAGE 19



INTERNATIONAL NEWS

Nearly 200 opposition supporters
in Zimbabwe are released by police



Tsvangirayi Mukwazhi/AP

ws

WOMEN AND children from Nyamapanda about 300 kilometres north of Harare, attend a press conference in
Harare, Tuesday, April, 29, 2008. The women who are opposition party supporters spoke of how they had
their homes burnt by suspected Zanu PF supporters after they were accused of voting against President
Robert Mugabe in the March 29 election. Cases of political violence are on the rise in Zimbabwe in the after-
~ math of the election which saw Zanu PF loosing its majority in parliament and with results of the Presidential

polls still to be announced exactly a. month after voting.
“my FAMGUARD
* 3) CORPORATION LIMITED






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INSURANCE COMPANY LIMITED

i FAMILY GUARDIAN

forward, onward

With over 40 years of expertise, stability and financial Bahama *Elealth
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@ HARARE, Zimbabwe

POLICE on Tuesday
released nearly 200 people who
were arrested last week in a raid
at opposition headquarters,
while President Bush called on
Zimbabwe’s neighbors to step
up the pressure on longtime
leader Robert Mugabe, accord-
ing to Associated Press.

Many of the 215 people
arrested on Friday had fled to
Harare to escape mounting vio-

lence and intimidation in rural .

areas that used to be ruling par-
ty strongholds but turned
against Mugabe in the March
29 elections.

Twenty-nine people, mainly
women and children, were
released almost immediately.
The rest were freed from vari-
ous police stations in the capital
Tuesday in accordance with a
High Court order issued Mon-
day, opposition defense lawyer
Alec Muchadehama said.

One month after the vote,
results from the presidential

A ch i





election still have not been
released.

Independent observers say
that opposition leader Morgan
Tsvangirai defeated Mugabe,
but did not secure an outright

“majority necessary to avoid a

runoff. Tsvangirai insists he did,

_ while Mugabe has stayed silent.

Nations

Bush said at a news confer-
ence Tuesday that “it’s really
incumbent on the nations in the
neighborhood to step up and
lead.” He stopped:short of say-
ing that Mugabe had lost the
election, but added that it was
clear that the country had voted
for change.

However, Tendai Biti, the
second-in-command in Tsvan-
girai’s opposition party, said
Tuesday he hoped the United
Nations would send a special
envoy to Zimbabwe to assess
the situation and help solve the
crisis.



“It is unacceptable, the abuse
of human rights, the killings that
are going on at the present
moment,” Biti, secretary-gen-
eral of the Movement for
Democratic Change, said in an
interview with Associated Press
Television News. “It is unac-
ceptable, the use of food as a
weapon and the deliberate star-
vation of our people. And again
it is unacceptable, the deliberate
assault on democracy that is
taking place in Zimbabwe.

“Those are clearly not region-
al and sub-regional issues.
Those are U.N. issues, and the
(U.N.) Charter is very clear on
that.”

On Monday, the Zimbabwe
Electoral Commission conclud-
ed the recount of 23 disputed
parliamentary seats, the state-
run Herald newspaper reported.
The commission would there-
after “invite presidential candi-
dates or their election agents
for the verification and colla-
tion of the results,” the Herald
said Tuesday.





“2 PICTET

A



j & xy
hd ae Ww

CCC CC CCA CLT AL




TE



Cheque Presentation To
The College of The Bahamas

| Cheque presentation of BSD 30,000 to the College
| of The Bahamas Endowment Fund by Mr. Yves
| Lourdin, President/Managing Director and the
| Bank's Executive Committee.

i} Photo: (left to right) Mark Richford, Larry Glinton, Pierre Colle, Shawn
|} Forbes, Jan Mezulanik, Yves Lourdin, Felicity Humblestone - Dir. of
Development-C.0.B., Marilyn Cambridge and Eric Messmer.

ee |










PAGE 20, WEDNESDAY, APRIL 30, 2008 THE TRIBUNE |
:

“£0 PICTET

1805

1978 - 2008
Celebrating 30 years in The Bahamas



Date of incorporation: April 27, 1978 License date: May 24, 1978

We would like to say THANK YOU to
ALL of our valuable employees






1

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_ Bayside Executive Park
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Geneva Lausanne Zurich London Luxembourg Frankfurt Paris Madrid Barcelona Turin Milan
Rome Florence Dubai Singapore Hong Kong Tokyo Montreal Nassau °




CFAL to
kickstart
Global
Bond
Fund
President says he

would have liked
$10m initial foreign

currency allocation

from Central Bank
to give funds
‘critical mass’
and defray costs

@ By NEIL HARTNELL
Tribune Business Editor

CFAL yesterday said it will
use the $1.89 million in foreign
currency allocated to it by the
Central Bank to kick-start its
CFAL Global Bond Fund, the
company’s president adding
that he would have liked to the
regulator to provide at least
$10 million upfront to give its
international investment funds
critical mass.

Anthony Ferguson, the
Bahamian investment advisory
firm’s president, said it was
__placing_all its 2008 first quarter

~ foreign currency allocation into
the CFAL Global Bond Fund
to get that up and running,
having used its previous allot-
ments to start the CFAL Glob-
al Equity Fund.

Describing reaction to
CFAL’s international invest-
ment funds, which also include
the CFAL High Grade Bond
Fund as “pretty good”, with “a
lot of people having interest”,
Mr Ferguson said the compa-
ny’s strategy now was to estab-
lish the CFAL Global Bond
Fund.

SEE page 5B

Bahamas gives 16.7
per cent profit rise
for Butterfield

@ By NEIL HARTNELL
Tribune Business Editor

BUTTERFIELD Bank’s
Bahamian operations saw their
2008 first quarter net income
increase by 16.7 per cent to
$0.7 million, compared to $0.6
million the year before, with
revenues ahead 15.5 per cent
year-on-year.

Announcing its results for
the three months to March 31,
2008, the Bermuda-headquar-
tered bank said the increase in

Drive a Honda Fit and get up to
40 miles per gallon



WEDNESDAY,



‘Seaman

APRIL. 3:0,



2008

SECTION B + business@tribunemedianct



‘Mind boggling’ internal theft
could cost food stores $25m_

@ By NEIL HARTNELL
Tribune Business Editor

nternal -theft | J
- causes Bahamian
businesses “mind |
boggling” losses |
every year, the |
Bahamas Chamber of
Commerce’s president |
told The Tribune yes-
terday, estimating that
this combined with
shrinkage could cost
food stores in this nation
a combined $25 million every year.

Dionisio D’Aguilar, who is also

eat

D’Aguilar



Superwash’s president, said assuming
that, on average, 5 per cent of invento-
ry was lost to pilferage and shrinkage,

and total food sales in the Bahamas

were $500 million per annum, then the
value of products lost in this sector alone
came up to $25 million.

“You do the maths. Just in that indus-
try alone, it’s mind-boggling,” Mr
D’ Aguilar said of internal theft losses in

the Bahamas, and their impact on’

Bahamian businesses.

“Internal theft is enormous. In busi-
nesses with many moving parts, like
food stores, it’s very hard to control,
‘with employees or customers. You get
hit in so many different directions.”

Bahamas Supermarkets, parent com-
pany of City Markets, said last week
that a $4 million investment in retail

infrastructure and information technol-
ogy (IT) was intended to curb food pil-

ferage that contributed to rising food |

prices.’

The company added that the new
technology had been able to detect a
number of irregularities that led to the
arrest of several employees.

Internal theft by employees adds fur-
ther to the cost of goods at a time when
consumer prices are already soaring due

‘to energy and food hikes, and the
_Chamber president said: “Internal theft
is a significant cost to many, many busi-
nesses in this country. There’s a sense of
frustration within the business commu-

nity that very little gets done on the

white collar crime front.”

Many Bahamian companies, Mr
D’ Aguilar said, “wrote off” losses
caused by employee theft and “moved
on”, adding that seemingly “significant
sums of money” needed to be involved
in an offence to get the Royal Bahamas
Police Force, and its Commercial
Crimes Unit, “interested”.

With very few cases involving internal
theft and dishonest employees being
prosecuted and making it to court, Mr
D’ Aguilar said the lack of will to tackle
the issue was noted by criminals, who
felt they could get away with offences
time and again.

Many employers felt it was “not worth
it” to prosecute employees for stealing,
given the time and money consumed by
cases that went nowhere.

Mr D’ ihciias told The Tribune: “I’m

sure white collar crime is under-report-~

ed. Internal theft is a significant cost,
there’s no doubt about it. The solution
to the problem is that you have to do it
yourself. You can’t rely on the; state,
you can’t rely on the police, and you

can’t rely on the judicial system to do it ;

for you. You have to be proactive and
do it yourself.”. :

The Chamber president warned
Bahamian companies that with the
economy facing a downturn, sparked
by a decline in tourist arrivals and for-
eign direct investment resulting from
the US and global economic woes, and
Bahamians likely to.experience reduced
incomes and job losses, internal theft
and armed robberies were likely to

- increase. Rising food and energy costs
were also likely to prompt some employ-

ees into stealing.

“The percentage of the population
that has to,steal to make a living increas-
es when less people are employed and

‘they have less money,” Mr D’Aguilar

said. “To make ends meet and meet
their commitments, they think they have
to steal.”

When it came to armed robberies, Mr
D’ Aguilar urged business owners to
vary their routines and not hola large
amounts of cash in the tills or on the
premises, given that “a high percent-

SEE page 5B

BORCO buyers inject $550m in equity capital

@ By NEIL HARTNELL
Tribune Business Editor

THE Bahamas Oil Refining Compa-
ny International (BORCO) Company’s
purchasers yesterday said the acquisi-
tion had been capitalised with $550 mil-
lion in equity, the deal closing after it
received all necessary government
approvals.

First Reserve Corporation, the world’s
largest private equity investor in the oil,
gas and energy industries, and its part-
ner, Dutch-based oil storage operator
Vopak, said in a statement issued yes-
terday that BORCO’s equity value post-
acquisition would be $550 million.

The Grand Bahama-based oil stor-
age facility’s ownership will now be split

year-on-year revenues to $3.1
million at its Bahamian opera-
tions reflected “strong growth
in net interest income and fees
earned from trust services”.

At quarter-end, Butterfield-
’s total Bahamian assets stood
at $188 million, compared to
$170 million a year ago.

The Bahamian group’s loan
portfolio was said to have
more than doubled in one
year, growing by 104.3 per cent
at 2008 first quarter-end com-
pared to the same period last
year.

The expanding Bahamian
business had also contributed
to an increase in staffing levels.

The company’s Bahamian

SEE page 5B

Correction

IN a front page story in 7ri-
bune Business on Monday,
April 28, about the Govern-
ment formalising a partnership
with the Massachusetts Insti-
tute of Technology (MIT) to
construct a framework for sus-
tainable development planning
throughout the Bahamas, it
was reported that a thesis
paper on this issue was pub-
lished by Dr Alia Sabur, an
MIT graduate.

This is not correct. The true
author is Nakeischea Loi, Mas-
ter of City Planning (MCP).
Tribune Business apologises
for the error.

$900m purchase of Grand Bahama-based oil

storage terminal closes with all government
approvals received, and ownership split
80/20 between First Reserve and Vopak

80/20 between affiliates of First
Reserve’s Fund XI and Vopak, with the
former having the majority.

Although the purchase price has nev-
er been disclosed, Carl Bethel, minis-
ter of education, youth and sports, said
in the House of Assembly last week that
the deal was worth $900 million, and
would produce $40 million in Stamp
Tax for the Government.

Mr Bethel added that First Reserve
and Vopak were proposing to invest
between $300-$600 million in upgrad-
ing BORCO, with the Dutch company
acting as the management/operational
partner.

BORCO will be renamed Vopak Ter-

SEE page 4B

Do you know where :
your stocks, sre: and
dividends re?

Sh A ROYAL crea BROKERAGE reac

» Take control of all your finances :

td
Â¥

» Buy / sell stocks, bonds, preference shares,

CD’s, mutual funds, etc.

~ Become a more informed investor

» Benefit from professional expertise and objectivity



acquiring for the

ROYAL @ FIDELITY

Money at Work

NASSAU OFFICE

(242) 356-9801

FREEPORT OFFICE
(242) 351-3010

95% of road

project land

| OWhers now
identified

@ By NEIL HARTNELL
Tribune Business Editor

SOME 95 per
cent of
landowners §
whose property |
the Government
is compulsorily

upcoming New
Providence
Road Improve-
ment Project
have been identified, the min-
ister of works and transport
told The Tribune, with
appraisals and valuations
already carried out.

Dr Earl Deveaux said:
“Ninety-five per cent of the
claimants from the land acqui-
sitions have been identified
and contacted. The vetting

Deveaux



‘process for arrival at the

exchange of title is now near

* completion.....

“The valuations have been
done. The remaining 5 per cent
is where there is dispute on the
ownership, one person claim-
ing and the documents show-
ing something different. Usu-
ally, the amount [paid for the
land] is escrowed until owner-
ship is 100 per cent deter-
mined.”

The Government has had to
acquire some 446 parcels of ©
private property to facilitate
the project, which is viewed as
critical to reducing - at least in
the short-term - New Provi-
dence’s chronic road conges-
tion and traffic flow issues,
especially at peak hours.

An Inter-American Bank
(IDB) paper on the road
improvement project said
progress with the land valua-
tions/real estate appraisals for
the acquired properties, plus
the re-establishment of legal
boundaries and compensation

SEE page 2B

i,
A
2
&
&
Te
®

Royal Fidelity Brokerage Accounts

royalfidelity.com
info@royalfidelity.com

ROYAL @ FIDELITY

Money at Work

Nassau: 356.9801 ¢ Freeport: 351.3010


PAGE 2B, WEDNESDAY, APRIL 30, 2008

THE TRIBUNE



ee ee
Ninety five per cent of road project

land owners now identified

FROM page 1B

payments, had not yet been
completed.

When it came to the total
amount the Government was
likely to pay in compensation

BAHAMAS —

| perms .

to the property owners, Dr
Deveaux told The Tribune:
“We have a figure, but usually
the process is determined at
arm’s length.

“The evaluation is done, and
the landowner is given the
option of accepting that valua-
tion, which is based on market

i”



MANAGER TRAINEES/FUTURE LEADERS

Bahamas Supermarkets Limited operates a leading super-

value. If they reject that, they
have the option of going to
court.”

Dr Deveaux said the process
worked in exactly the same
way as that for the land com-
pulsorily acquired to facilitate
the south-west Bay Street road
re-routing for the $1.3 billion
Albany project.

Offered

There, landowners had been
offered a valuation some 33
per cent more than the higher
of two independent appraisals
that were done. To date, some
have accepted the valuations,
while others have not.

On the IDB report identify-

’ ing that some 200 Bahamas

Electricity Corporation (BEC)
remained to be moved to make

Road Improvement Project
(NPRIP), Dr Deveaux said the
work needed to be effected for
this had been incorporated in
the project’s financial projec-
tions so they would not “serve
as an impediment” to its
progress.

The Government is under-
stood to be in the final stages
of negotiating an IDB loan to
finance the road improvement
project, which when originally
conceived in the late 1990s,
was estimated to cost just over
$52 million.

Now, it has been projected
to cost at least $131 million,
Dr Deveaux acknowledging
that delays impacting the pro-
ject could cost the Bahamas an
extra $70-$100 million.

“We’ve lost many opportu-
nities in the meantime, and

market chain in The Bahamas. As a market leader, the
Company prides itself on delivering premier service through its
City Market supermarkets, having a strong commitment to its
customers, associates and community.

An opportunity for Management Trainees (Future Leaders)
exists in New Providence and Grand Bahama to join this
market leader.

Reporting to the Head of Retail Operations, the successful
applicants will;
¢ Be self-motivated and highly energetic.
Have effective supervisory skills
* Be highly flexible and mobile and prepared to work
evenings, weekends and holidays
Have a clean police record, drivers license, good
character references and be physically fit
¢ Have a university degree or currently in final year
¢.Have good communication (verbal and written) and
interpersonal skills
° Be numerate and analytical with the ability to
derive information from financial reports
¢ Be a strong problem solver :
¢ Have the ability to multi task
¢ Solid functional computer skills with working
knowledge of Microsoft applications

Salary and benefits will be commensurate with experience and
qualifications.

If you have what it takes to succeed in this challenging role,
forward your resume and cover letter to:

Human Resources
Bahamas Supermarkets Limited
East-West Highway « P. 0. Box N 3738 + Nassau, Batiamas
Or e-mail to: humanresources@bahamassupermarkets.com

No telephone inquiries please

City Markt



Malek aide delict a eAhenea LLM Ge

Client Accounting Department

A reputable financial institution headquartered in Bermuda, with offices in
The Bahamas, Barbados, the Cayman Islands, Guernsey, Switzerland,
Hong Kong, Malta and the United Kingdom, Butterfield Private Bank
offers a wide range of services to local and international clients.






















An exciting opportunity currently exists for a results oriented self starter
with a record of professional achievements to join our dynamic Client
Accounting team.





Core Responsibilities °

"Manage the client accounting department
® Review of Financial Statements
§ Preparation of monthly reports for senior management

"Ensure the implementation of standard practices relating to all
i accounting matters

"Ensure full awareness of and adherence to all applicable laws,
regulations, bank policies and procedures

" Provide training to client accounting staff

Desired Qualifications

® At least five (5) years experience in the Trust Industry

® Professional Designation of ‘CA, CPA or relevant experience
"Excellent working knowledge of accountancy

"Client driven background, including good understanding of deadlines

| ® Proficient in Microsoft Office suite of products

management and customer service skills

Closing Date: May 7, 2008

Contact

Human Resources

Butterfield Bank (Bahamas) Limited
P.O. Box N-3242

Nassau, Bahamas

Fax: (242) 393 3772

E-mail: recruitment@ butterfieldbank.bs

www.butterfieldbank.bs

te

|
® Strong interpersonal, communication, problem solving, project
j
{
|
}

Butterfield Private Bank _

way for the New Providence incurred many more chal-

WANTED

The position of Island Manager for Nassau is
open. A brief summary of the position is described
below. If you are interested in applying please
provide, by mailing to P.O. Box EE-15043 or call
424-0633, please include in the application a
detailed description of how you are qualified for
the position.






















- Management oversight of all activities in the
Nassau operation; administration and sales areas.

- Responsible for the a aa and growth of the
market.

- Focus on team and staff development

- Cost analysis and cost control

| - Ensure compliance with all ISPS, Super carrier

and local security initiatives




Minimum Requirements

* Bachelor’s Degree (or higher) in the maritime
field

¢ At least 5 years of management experience in
the shipping industry

¢ Excellent interpersonal, analytical,

organizational, and customer service skills

3h UBS

UBS (Bahamas) Ltd. is one of the world's leading financial
institutions in the Caribbean, Through our Business Area Wealth
Management we look after wealthy private clients by providing
them with comprehensive, value enhancing services. Our client
advisors combine strong personal relationships with the
resources that are available from across UBS, helping them
provide a full range of wealth management services.

In order to strengthen our IT team in Nassau, we are looking for
the following position:

IT Systems Engineer

in this challenging position you will be responsible for:

The deployment and management of business critical solutions.
You will be expected to be a self-starter, time oriented
individual with project management and documentation skills,
strong technical background, sound writing and
communications, as well as organizational skills and the ability
to work with local and international team members.

Minimum Requirements
« At least 4 years relevant networking. experience working in a
~ medium to large scale environment.
» B.S.C.LS., Computer Engineering or related field
* Strong proficiency and expertise in;
« Server management
» WAN/LAN
« Microsoft Exchange server / BBS
® Remote support
« Desktop and user support
* Routers, switches, fire walls, NAS, SAN
Cisco Certified Network Associate
UNIX operating system background
Proficient in Data Centre management and Server
deployment
Proficiency in: Networking (Server 2003, Windows 2000),
Desktop software, Security, Microsoft products (Office
Exchange)

Written applications should be addressed to:

UBS (Bahamas) Ltd.
Human Resources
P.O. Box N-7757
Nassau, Bahamas

hrbahamas@ubs.com or



lenges, but we think it’ll help
us deal more effectively in the
long-run with other projects in
the Bahamas,” Dr Deveaux
said of the experience.

Road

The New Providence Road
Improvement Project (NPRIP)
ran into problems back in 2001
when the chosen contractor,
Associated Asphalt, went
bankrupt.

Then, when the project was
put out to re-bid, only one
company met the IDB’s quali-

fications.

The bank is unable to lend
to projects where there is only
one bidder, so the former
Christie government instead
broke the project up into
smaller components that could
be handled by Bahamian con-
tractors.

Three of these smaller pro-
jects were completed, and now
after a competitive tendering
process, Argentine construc-
tion firm Jose Cartellone Con-
strucciones Civiles (JCC) was
selected as the lowest bidder
with an $88 million offer.

fe

Legal Notice

NOTICE

BERGERONETTE LIMITED

(In Voluntary Liquidation)

Notice is hereby given that the above-named
Company is in dissolution, which commenced on the
3rd day of March 2008. The Liquidator is Argosa
Corp. Inc., P.O. Box N-7757 Nassau, Bahamas.

ARGOSA CORP. INC.
(Liquidator)

Legal Notice

NOTICE

FORTUNE VALLEY INC.

(In Voluntary Liquidation)

Notice is hereby. given that the above-named
Company is in dissolution, which commenced on the
12th day of March 2008. The Liquidator is Argosa
Corp. Inc., P.O. Box N-7757 Nassau, Bahamas.

ARGOSA CORP. INC.
(Liquidator)

NOTICE

IN THE ESTATE OF FREDERICK
GEORGE HERMAN YOUNG, Late of
The Cottage Estate, Little Exuma,

Bahamas.

‘

NOTICE is hereby given that all persons having
any claim or demand against the above Estate
are required to send the same duly certified in
writing to the undersigned before the Closing
Date after which the Trustee will proceed to
distribute the assets having regard only to the
claims of which he shall then have had notice.
Beneficiaries are to forward by fax or email the

following information:
1) Name of beneficiary.

2) The beneficiary’s Fractional Share.

3) The amount.of Legal Expenses incurred in
obtaining Order For Sale.

4) Where the beneficiary is not a party named in
the Second Schedule of the 1967 Settlement, a
probate document (resealed if foreign) and

photocopy of passport.

5) Payment instructions.

The Trustee reserves the right to reject any claim
made after the 9" June, 2008 Closing Date.

The Trustee of The Cottage Estate,

Little Exuma

c/o JOSEPH C. LEDEE

"Chambers

Suite No. 6, Grosvenor Close

Shirley Street

P. O. Box N-8887
Nassau, Bahamas.

Telephone/Fax No. 1-242-325-3758
Email: j.ledee@yahoo.com


Bazaar owners in

BUSINESS

dark on Royal
Oasis plans

@ By CARA BRENNEN-
BETHEL
Tribune Business
Reporter

STORE owners. in
Freeport’s International
Bazaar are desperately wait-
ing for Harcourt Develop-
gents to announce its plans
for restoring the Royal Oasis
resort and injecting some eco-
nomic life into the depressed
area. .

Speaking with Tribune Busi-
ness yesterday, a source close
to the Bazaar’s Owners Asso-
ciation said the current state
of Grand Bahama’s economy
was “horrible”.

The source said the percep-
tion among Freeport business
owners was that it will be “at
least another two years” before
they begin to see a turnaround
in the economy as a result of
Harcourt’s $33 million Royal
Oasis purchase. “Things are
getting worse here, and it has
nothing to do with politics. Its
been horrible and people are
crying every day,” the source
added, saying Bahamian-

owned businesses in the

_Bazaar were continuing to

close, with complaints made to
the Association on a regular
basis.

The Royal Oasis property
is inclusive of a Towers, Coun-
try Club and Casino. The prop-
erty had 965 rooms and 98
timeshare units, but was shut in

‘September 2004 after Hurri-

cane Frances, forcing the lay
off of some 1,300 employees.

The property represented
one-third of Grand Bahama's
hotel room inventory, and was
also considered to be the main
economic lifeline for business
in the Bazaar. Just recently at
the Grand Bahama Business
Outlook, it was announced
that Foxwoods Development
Company had signed an agree-
ment with Harcourt Develop-
ments (Bahamas) to manage
the redeveloped resort.

It was hoped: that with the
Royal Oasis revitalisation and
the proposed billion dollar plus
Ginn Development pegged for
West End, Grand Bahama’s
struggling economy could be
turned around.

on av uilable at
prestigious private island fescit | in the Bahamas. Minimum

of 5 years of professional experience in U.S./Caribbean

resorts/ private clubs. Qualifications should include experi-
ence with power plants, reverse osmosis water generation
systems and general construction skills and management.

Excellent benefits package based on experience level,
including housing.
Interested persons should fax resume to 242-347-5004
or email to tstewart@catcayyachtclub.com

Br] Lots

For Sale

JCMOATINSY a

Fully furnished ROOMS, APARTMENT S

& Houses wanted for Short term stays

in the Bahamas Home Away From Home

., Preeram.

Contact Ms, Allen @ Stop-N-Shop Online

394-4949 or e-mail ;

Bahamas. HomeAwayFromHome@gmail.com

The Registrar General’s
Department

to inform
that its
in Annex
at the

Wish
public
located
and ‘B’



the |
offices |
eA?
Hilton |

Hotel will be relocating to |
Apsley House at #75]
Frederick Street next to}

- ee retell tat sree tel
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.













erie
ys ay
ORCS
ec 1o3: Bc 2} 0
Les Banos

Vacancy for the OTOL he

MANAGER, CREDIT RISK

Core responsibilities:

° Develop/promote/support, on an ongoing basis, improvements
to credit processes/procedures which will ensure the delivery
of the most cost-effective and efficient services to customers
without compromising effective management of risk.
Ensure compliance with the Bank’s credit policies and
procedures.

Adjudicate Credit Proposals within delegated authority.
Adjudicate/recommend and present Credit Proposals in
excess of delegated authority to appropriate Credit Committee.
Remain current on macroeconomic factors within the local
economy and their potential effects on the Banking Industry
in general and any specific Bank customer business. |
Ensure that the Bank’s delinquency and non-performing
ratios are maintained within the established guidelines.
Monitor quality of Bank’s asset portfolio via relevant
reports.
Oversee the conduct of reviews of the Credit Portfolio to
ensure that the integrity is being maintained.

. Assist in the development of training courses for Consumer
and Commercial Lending Officers.
Manage the Bank’s Loan Loss Provisioning and Write Off
process.

Knowledge, Skills and Abilities:

(=
ee:
)

0

2
We
a e

¢ Bachelor’s Degree and five or more years of credit experience.
e Strong accounting and financial analysis skills.

e Strong negotiation skills.

¢ Detailed knowledge of Credit and Collections.

¢ Core knowledge of legal practices and documentation.

Benefits include: Competitive salary commensurate with
experience and qualifications; Group Medical (includes dental
and vision) and life insurance; pension scheme.

Interested persons should apply no later than May 2, 2098 to:

DA #62008
c/o The Tribune
P.O. Box N3207
Nassau, The Bahamas



a Sle chal Exuma :



Join the
Bahamas National Trust
agers WE celebrate the ©

Caribbean Endemic
/ Bird Festival
| ROM THE TUNDRA TO |
THE TROPICS

Saturday, May 3, 2008

Sain - 1am

(

’ a THE RETREAT...»
BN Headquarters, Viliagé(Ra. Rd.

f f ose a

This year we are parthering with International
Migratory Bird Day and celebrating the nearly
350 species; of migratory birds that travel hun-
dreds of miles in the. fall to their non-breeding
grounds in Central America, Mexico and the Car-
ibbean returning in the spring to their breeding
grounds in North. Ainerica. Literally travelling

from the TUNDRA. TO THE TROPICS.

Members of the BNT Onihoieey Group will offer
an early morning birdwalk through The Retreat
Garden and viewing of the film "Singing in the
Rainforest" which highlights a rare glimpse into
the world of a bird that fits comfortably on a
tablespoon, weighs less than half an ounce and
flies many miles in the dark twice each year. ’
These tiny warblers are losing their homes at
both ends of their migration route and this film
allows us to look at séme of the conservation

efforts that are taking* place. for wore. warblers,’ ”

*Light Refreshments after. the walk

For more information call 393: 1317.. or email
bnt@bnt.bs





St. Andrews Presbyterian |
| Kirk (Church) and across |
from the Central Bank of |
The Bahamas with effect |
fromThursday May 1 ,2008 |




PAGE 4B, WEDNESDAY, APRIL 30, 2008

THE TRIBUNE





DCA ee eR

Se Oe ar ca

i



FG CAPITAL MARKETS

BROKERAGE & ADVISORY SERVICES






>



BISX ALL SHAR






Labs 9S YEE TEASE CREE PE ES SRO



Previous Close Today's Close ~~ Change Dail Vol. EPS $ Div $ P/E “Yield






j52wk-Hi__ 52wk-Low Securi

1.95 1.10 Abaco Markets 1.95 1.95 0.00 0.135 0.000 14.3 0.00%
11.80 11.50 Bahamas Property Fund 11.80 11.80 0.00 1.086 0.400 10.9 3.39%
9.68 9.02 Bank of Bahamas 9.61 9.61 0.00 0.643 0.160 14.9 2.71%
0.99 0.85 Benchmark 0.90 0.90 0.00 0.188 0.030 4.8 3.33%
3.74 2.50 Bahamas Waste 3.50 3.50 0.00 0.289 0.090 12.1 2.57%
2.70 1.30 — Fidelity Bank 2.39 2.39 0.00 0.058 0.040 41.2 1.67%
13.80 10.41. Cable Bahamas . ; 13.70 13.80 0.10 1800 1.093 0.240 12.6 1.74%
3.15 2.10 — Colina Holdings 2.87 2.87 0.00 0.091 0.040 31.5 1.39%
8.50 4.75 | Commonwealth Bank (S1) 7.13 7.13 0.00 0.440 0.290 16.2 4.07%
7.22 3.60 Consolidated Water BDRs 4.77 4.76 | *-0.01 0.157 0.052 30.4 1.09%
3.00 2.20 Doctor's Hospital 3.00 0.00 0.316 0.040 9.5 1.33%
8.00 5.94 Famguard 8.00 0.00 0.713 0.260 11.2 3.50%
13.01 12.49. Finco 12.50 0.00 250 0.810 0.570 15.4 4.56%
14.75 13.24 FirstCaribbean 13.24 0.00 0.651 0.470 20.3 3.55%
6.10 5.05 Focol (S) §.32 0.00 0.386 0.140 13.8 2.63%
1.00 0.54 Freeport Concrete 0.55 0.00 1,000 0.035 0.000 15.7 0.00%
8.00 6.86 ICD Utilities 6.86 0.00 0.411 0.300 16.7 4.37%
12.50 8.60 J. S. Johnson 12.30 0.00 1.059 0.620 11.6 5.04%
10.00 Premier Real Estate 0.00 1.167







10.00 _



10.00

me §

52wk-Hi _52wk-Low mbo s st Pri
| 14.60 14.25 Bahamas Supermarkets 14.60 15.60





















8.00 6.00 Caribbean Crossings (Pref) 6.25

0.54 0.20 __RND Holdings 40

' 41.00 41.00 ABDAB 43.00

i 14.60 14.00 Bahamas Supermarkets 15.60

| 0.55 0.40 RND Holdings

k : Bay

j52wk-Hi 52wk-Low Fund Name : NAV YTD% Last 12 Months Div$ Yield%

41.3081 1.2443 Colina Bond Fund 1.308126**** 1.25% 5.61%

}3.0008 2.6629 Colina MSI Preferred Fund 2.996573**** -0.14% 13.11%

1.2647 Colina Money Market Fund 1.387505*** 0.90% 3.87%
3.1827 Fidelity Bahamas G & | Fund 3.7011**** -2.52% 17.78%

412.1010 11.4992 Fidelity Prime Income Fund 12.1010** 1.40% 5.72%.

} 100.0060 100.0000 CFAL Global Bond Fund 100.00**

{100.0000 100.0000 CFAL Global Equity Fund 100.00**

i! .0000 1.0000 CFAL High Grade Bond Fund 1.00**

110.5000 9.6346 Fidelity International Investment Fund —_9.6346* -8.24% -8.24%





Vv. Key

*~ 29 February 2008
**~ 31 December 2007
***~ 41 April 2008

**** 31 March 2008

YIELD - last 12 month dividends divided by closing price
Bid $ - Buying price of Colina and Fidelity

Ask $ - Selling price of Colina and fidelity

Last Price - Last traded over-the-counter price

Weekly Vol. - Trading volume of the prior week

| BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00
52wk-Hi - Highest closing price in last 52 weeks




52wk-Low - Lowest closing price in last 52 weeks
_ Previous Close - Previous day's weighted price for daily volume
iay's Close - Current day's weighted price for daily volume





i To
' EPS $ - Acompany's reported earnings per share for the last 12 mths
NAV - Net Asset Value

N/M - Not Meaningful

FINDEX - The Fidelity Bahamas Stock Index. January 1, 1994 = 100



, Change - Chanae in closing price from day to day
Daily Vol. - Number of total shares traded today
DIV S$ - Dividends per share paid in the last 12 months
P/E - Closing price divided by the last'12 month earnings
i(S) - 4-for-1-Stock Split - Effective Date 8/8/2007: «
(S1) - 3-for-1 Stock Split - Effectiv:
TO TRADE CALL: CF,



E
feces

AAI

SAARI ANAAEARREREROIN

BORCO.
buyers
inject
$550m
in equity
capital

FROM page 1B

minal Bahamas and integrat-
ed into the Dutch company’s
global network, operating as a
facility for the storing and han-
dling of crude oil, fuel oil and
clean petroleum products.

It also has bunkering, blend-
ing and transhipment uses. The
new owners plan to expand
BORCO’s capacity from the
current three million cubic
metres, or 20 million barrels, to
up to give million cubic metres.

Vopak’s chairman, John
Paul Broeders, said in a state-
ment: “This terminal has the
potential to serve a greater
number of customers, with a
focus on the large nearby US
market for petroleum prod-
ucts, and aligns perfectly with
our strategy to grow our ter-
minal network worldwide to
support the success of our cus-
tomers.

“Vopak will leverage its
global customer portfolio to
increase the storage activities
at this strategic location. With
the high interest expressed by
future clients and the intention

to invest in improvements and
expansion, this terminal is
expected to become profitable
within the first couple of
years."

He added: “We welcome
BORCO and its employees to
the Vopak network, and look
forward to sharing our expe-
rience and expertise with local
management and employees
to further enhance the quality
of the operations.”

William McCauley, First
Reserve’s chairman and chief
executive, said: “The facility
will provide significant value
for our strategic partners, while
also providing tremendous
growth opportunities to the
Bahamas. ;

“The partnership with
Vopak at BORCO is an excit-
ing opportunity to support the
growth of the world's major oil
companies by providing long-
term access to facilities for
storage and distribution ser-
vices in a strategic part of the
world.”

The acquisition was part-
financed by a senior secured
credit facility fully underwrit-
ten by ABN Amro and DnB
Nor Bank ASA.



“Informative. ] can be sure to read something of value in The Tribune. It is filled with

pena





eT

SAROROECRES IEDR

The Tribune

ARERR

unportant to me. The Tribune is my newspaper.”

information about local news, sports, entertainment and world news ~ subjects that are

JASON RAHMING

CONSTRUCTION FOREMAN
THE TRIBUNE

WEDNESDAY, APRIL 30, 2008, PAGE 5B





Manufacturer

alters strategy Glo

m@ By CARA BRENNEN-BETHEL
Tribune Business Reporter

TO improve its competitiveness in a
challenging economic market, Androsia
Batik yesterday said it had made several
strategic changes to its manufacturing
process and launched an aggressive pub-
lic relations campaign to woo Bahamian
clients.

Jeffrey Birch, Androsia’s chief execu-
tive, said the company had secured
financing to invest in several new strate-
gies. He told The Tribune that the
revamping will include three major com-
ponents.

“The first thing that we are doing is
launching a massive public relations cam-
paign to educate Bahamians on how to
ensure that they are buying an authentic
Androsia product,” Mr Birch said, adding
that in recent months the company had
been hurt by persons passing off fake
fabric as Androsia.

“There is no question Bahamians like

Androsia and have an inherent attrac-
tion to it, so we want to ensure they are
buying Androsia and not some fabric
that was made elsewhere.”

Second, Mr Birch ‘explained that the
company was changing its production
methods to ensure it can cater to a retail

market.
Online

“What we have done is created an
online shopping cart so that domestic
and international customers can order
online. We have over 100 colours and
designs, and we can’t offer all of them,
but what we have done is taken 20-25
patterns and colours and put them on
offer, so more persons can purchase a
single item rather large orders,” Mr
Birch said.

“We have adapted our production
process, so that instead of cutting 200
shirts we are now cutting 200 different
products.”

The third thing, Mr Birch added, was to
ask his staff to adopt a new mindset to
achieve this strategy.

Mr Birch said: “Today, Androsia has
18 employees at its Fresh Creek factory.
Confronting the issue of the counterfeit
Androsia product made us think about
how we could save these 18 jobs.”

Referring to the foreign-made copycat
product, Mr Birch pointed out that
Bahamians should understand the mind-
set of their global competitors. “Foreign
companies don’t care about the Bahami-
an economy or Bahamian manufactur-
ers and jobs. So we have to adapt. We’ve
taken another risk with this loan, in the
hope that the Bahamian market will
chose to support local manufacturers.”

Authentic Androsia batik is a local
product, he explained. Based on Andros,
Androsia was first started-in 1973. The
company produces an extensive line of
hand-made batik fabrics and fashions, as
well as accessories and items for the
home.

“Mind boggling’ internal theft could cost food stores $25m

FROM page 1B

age” of such incidents were
“inside jobs”.

Typically, they were often
carried out with the involve-
ment or information from cur-
rent or former employee,
passing details on to friends
and relatives who organised
the robberies.

It had almost got to the
point, Mr D’Aguilar said,
where cash-based companies
had to operate “on the
premise that you will get
robbed from time to time”,
and take measures to limit
their exposure.

“One would expect those
to increase,” Mr D’Aguilar

said of armed robberies, “and
businesses have to redouble
their efforts to become more
vigilant. It’s not business as
usual. You’ve got to think
about all the costs in your .
operation, and impress upon
staff not to be silly with mon-
ey, and not develop a routine.

“Assume the robber knows
your routine. You have to
outsmart the robber. It seems
as if these robberies are
becoming more violent, so if
there is a limited amount of
cash on the premises, the
incentive to fight for it dimin-
ishes, and you come away
with your life.”

Mr D’Aguilar estimated
that Bahamian companies, on

average, spent a sum equiva- »

Bahamas gives 16.7 per cent
profit rise for Butterfield

FROM page 1B

operations have two aspects -
Butterfield Bank (Bahamas),
which handles the private
wealth management and trust
business, and Butterfield Fund
Services (Bahamas), which
deals with fund administration.

Butterfield Bank first
entered the Bahamian finan-
cial services market in 2003
when it acquired Thorand
Bank & Trust, plus the
Bahamian operations of
Leopold Joseph. Then, in ear-
ly 2004, it purchased Deerfield
Fund Services.

Banca del Sempione (Overseas) Ltd.

Employment Opportunity
Assistant Portfolio Manager

Banca del Sempione (Overseas) Ltd. is looking for an
Assistant Portfolio Manager to join its select team of

professionals.

Responsibilities:

- Asset allocation for customer accounts
- Application of investment strategies

- Trading of securities

- Review of performance of portfolios
- Liaison with clients and external portfolio managers

Minimum qualification:

- 5 years experience in asimilar position ,
- excellent knowledge of European securities markets
- English and Italian written and spoken fluently

- Bachelors degree or similar

- Knowledge of other foreign languages is an advantage.

Salary will be commensurate with experience. Interested
candidates sho'!ld forward a copy of their resume to:

Human Resources

Banca del Sempione (Overseas) Ltd.
P.O. Box N-8159

Nassau, Bahamas

Only persons being interviewed for this position

will be contacted.



lent to between 2-3 per cent of
their annual sales on securi-
ty, and if the situation wors-
ened the amount spent in this
area would inevitably
increase.

The Bahamas still being a
cash-based society was one
reason why so many violent
robberies occurred, the
Chamber president said,
adding that this again rein-



forced the need for the clear-
ing banks to introduce their
Automated Clearing House
(ACH) and SWITCH system.

He recalled how at a Home
Depot store in the US, once
$200 in cash was placed into
the till by a teller, the till froze
and could only be opened by a
manager with a swipe card,
noting that this would be use-
ful in the Bahamas.

CFAL to
kickstart

FROM page 1B

CFAL had used its previous
two allocations from the Cen-
tral Bank to start its equities
fund, which now had $4-$5
million invested in it, and Mr
Ferguson said the strategy was
now to do the same for the
CFAL Global Bond Fund
using this period’s and the 2008
second quarter allocations.

Once that was achieved, the
company would then focus on
the CFAL High Grade Bond
Fund.

“What we want to do is offer
diversification and alternative
options to our clients, and not
put it all into equities,” Mr Fer-
guson told The Tribune.

He added, though, that he
would have liked the Central
Bank to provide at least $10

_ million to each of the three eli-

gible Bahamian broker/deal-
ers with its initial allocation to
give their funds critical mass
and defray operational costs.

Mr Ferguson explained that
a 1.75 per cent currency. con-
version tax was imposed on the
Central Bank allocation. If the
allocation was $2 million, this
fee -would work out to
$37,5000.

On top of that came audit
fees of $25,000, plus $20,000 in
fees that had to be paid to the

bal Bond
Fund

independent fund administra-
tor. When this was all totalled
up, Mr Ferguson explained,
this came to more than $80,000
- a sum equivalent to 4.125 per
cent of the fund’s assets.

“IT would have liked them to
give us $10 million up front,”
Mr Ferguson said of the Cen-
tral Bank. “It becomes very
expensive. Really, you need a
critical mass of $10 million in
the fund to make the adminis-
trative costs more reasonable.

“What ends up happening
now is that as a company you
have to absorb those costs,
rather than pass them on to
the customer.”

The CFAL Global Bond
Fund is being launched as a
result of the last exchange con-
trol reforms unveiled by the
Central Bank of the Bahamas.

Those reforms make avail-
able to three Bahamas-based
broker/dealers, at quarterly
intervals throughout the year, a
total of $25 million for use in
investment funds that provide
Bahamians with access to
international capital markets
without having to pay the 12.5
per cent exchange control pre-
mium.

With three broker/dealers
competing for the quarterly
$6.25 million allocation, it is
effectively split three ways into
usually just over $2 million
each.
THE TRIBUNE



eeu








PAGE 68, WEDNESDAY, APRIL 30, 2008



°

COMICS PAGE



JUDGE PARKER












WITH YOUR * 3 I DON’T
RECORD, YOU 3 | WANT TO LIVE
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RATHER NOT WORK \>
FOR ANY LAW FIRM
BUT THIS ONE!



I'VE HAD
pf’ OFFERS, BUT TURNED.

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THEM ALL DOWN! :

APARTMENT 3-G
NEXT MORNING, AS TOMMIE RETURNS WOME...

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THE HOSPITAL SAID DR. KELLY









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REQUESTED ME SPECIFICALLY, 5 en ce
TOMMIE, WHY ARE YOU \ I WAS PAGED IN THE é ; 1
WEARING SCRUBS? = | MIDDLE OF DINNER, ie “WHILE YOU'RE AT IT, COULD YOU CLEAR
DIDN’T YOU AND GARY / LU ANN. La WV a ME & PAFH To JOYS HOUSE?
HAVE A DATE LAST oa. (\ We
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©2008 by Nort



Contract Bridge

By Steve Becker



The Step-by-Step Approach

South dealer.
Both sides vulnerable.

1. I cannot make the contract
without tilizing the club suit.



WEDNESDAY,

NORTH 2. The best way to play the clubs
@K74 is to finesse against West. If he has APR 30
Â¥652 the king, I will make the contract :
@A8 with overtricks. AQUARIUS - Jan 21/Feb 18
&AQIS3 3. Suppose I win the first heart Pay attention to what you spend
WEST EAST with the king, try the club finesse and money on ‘this week, Aquarius. The
. #586 #10932 it loses to East? The outcome will bills could pile up faster than you
j ay ere ¥A 10843 ¥Q9 then depend on how the opposing had expected. You can stay in con-
7 ez #3932 #Q1075 hearts are divided. If West started J trol if you’re alert.
&6 KS 4 with only four hearts, I am safe. But TCHS
. MARVIN SOUTH if he started with five hearts, a heart retin ie ee fia
: -— 4AQ5 retum by East through my J-7 will | on yourself. Pisces. Money has b ue
[LOoK, BERNIE, THERE'S \WELL...L GUESS S VKI7 allow West to score four hearts,andI_ [fa siressful subject. thi ¥, nas, Deen
| PLENTY OF ROOM. JU eK 64 will go down one. Seale Uae Weems youl
ST g figure out how to earn m:
| SIT ALITTLE FARTHER Es N #) 1072 4. Is there any way I can protect | apipg_ yf 1/Apr 20
DOWN ON THE BENCH me The bidding: against West having five hearts and | PAS o> 78 fe ; ah :
Tae UP South West North East the king of clubs? USHnESss:ANd Far ys WU Dey cue Lop
| 1& Pass 3 Pass 5. Eureka! I can assure the con- ee week, a alee 48
ae 3.NT tract regardless of how the opposing Weinecd Pe h : a ee
Opening lead —- four of hearts. - cards are divided. All I have to do is CUNESOAy, WELDS a key ay Osten



NON SEQUITUR |



2008 by tiarth America Syreloate, be. World righ in reacreed.



Most winning plays in bridge are
arrived at by simple step-by-step rea-
soning. While this process may be
applied at any time during the play,
without question the most ‘requent
occasion for its use occurs at trick
one.

For a typical illustration, con-
sider this deal. West leads a low heart
against three notrump. East plays the
queen, at which point declarer should

to allow East’s queen of hearts to
hold the first trick, retaining the K-J
as a stopper. Assuming East returns a
heart, if he subsequently gains the
lead with the king of clubs and the
hearts were originally divided 5-2, he
won’t have a heart to return. And if
the hearts are divided 4-3, the oppo-
nents can’t get more than four tricks
no matter how they defend.

The ducking play at trick one

contracts and the like. ;
TAURUS - Apr 21/May 21

You may have had an argument with
a romantic parmer, but luckily things
will get back to normal this week,
Taurus. Hang in there for another few
days for a resolution. '

GEMINI - May 22/Jun 21

You will have to be mentally ready
to make a change this week, Gemini.
This likely involves changing a bad

& see eeu ; Z . i 7
‘ : : take the time to analyze the situation __ thus assures South of scoring af least it aleine: ds with 2
a oS a2 before doing anything. Here is what nine wicks, and, as the cards lie, he eh eaaned con Re
i
2 OK, OK. Family members will be at the fore-
s ui (STAND front this week, Cancer. Just be ready
© to do some soul-searching. Also,

Se ose. OY vutieere, Fs

LAND 2S NILA WK, IWC,

TIGER

CORRECTED.
IT CAN GET




CO CORNICS.CofA (pou sSEQuITER




















| CRYPTIC PUZZLE |



FASY SOLUTIONS

CABLY
















-

34
35
36
37
38

Number (5)
Kernel (3) -
Sharp (5)
Japanese bed (5)
Sharp pain (5)

TARGET.

YESTERDAY'S SOLUTION
deeper deer doer
dorm dorp dower
drew drop empower

. EMPOWERED erode
ewer mere more
mower peér peered
perm permed pore
pored powder power
powered premed prod
proem prom prow .
redeem redo reed rode
romp romped rope
roped rowed weeder
weeper were word
wore worm wormed



25 Enclosure (3!
27 Hit (5)

28 Relaxes (5)
39 Engine (5)
32. Miserly (4)
33 Disapproving
sound (3)



[DIN|L
FIL
D|T|F

HOW many words of
four letters or more can
you make from the
letters shown here? In
making a word, each
letter may be used once
only. Each must contain
the centre letter and
there must be at least
one nine-letter word. No
! plurals, or verb forms
— ending in “s”, no words

you’re feeling the need to spend -
some money on your home.

LEO -— Jul 23/Aug 23

You have a perfect week ahead to get
your way, Leo. Plus, it will be much
calmer than last week when too
many things were up in the air. Give
yourself plenty of time to enjoy.

VIRGO — Aug 24/Sept 22

You will have more money to spend in
the days to come, Virgo, particularly
because the stars are aligned in your
financial comer. Enjoy a takeout din-
her or a night on the. town.

LIBRA - Sept 23/Oct 23

This week, see if you can get out of
town, Libra. New scenery will do
you good. With just a little change,
your mood will brighten and you’ll
feel refreshed.

SCORPIO — Oct 24/Nov 22
You should have a fabulous time
with your family this week,.Scorpio.
Visit Mom, or take your children out
for a spur-of-the-moment outing
they're not soon to forget.



with initial capitals and
1 : no words with a hyphen SAGIFTARIUS — Nov 23/Dec 21
R - ACROSS or apostrophe You're considering making a career
: ; Sala DOWN ermitted. The first change, Sagittarius, because you °‘
3 A fishy trick? (5) ; i i P -
| 8 C ful fled 1 Provide the cash for a rise? (3,2) word ofaphraseis _ feel you've grown beyond your cur-
Phe relat sere ot engin 2 Sharply taking a short route to a permitted (e.g. inkjet i rent job. Find someone who can
B on smoke it (5) cathedral city (7) naa ete Se | lend an ear to your situation.
eA: ae Epes oy eo eltot 4 — Octogenarian's song (4) Good 13; very good 20; CAPRICORN -— Dec 22/Jan 20
U- central Wembley (5) 5 Fretted about Charlie being less excellent 25 (or more). You will be so busy with work in the
- 11 One half hour with a Yankee (3) than half fed (6) Solution Monday. ae few Nees that working week-
N 12 One home of athletic 6 ie onset dating (5) ends may become a necessity to catch
footballers (5) 7 Soft-hearted girl's source of coconut ee ee
E 13 Al departs from down under for the oil (5) NE ere Sean
ty country (7) : 9 Lettuce produced by a firm at
~ ; 15 Hasa id of noisy Ponders End (3) ‘
organs as
gtk a 12 Strange place for a prohibition on
18 In time, one is transformed (3) alcoholic drinks! (4,3) Cc H ESS oY] Leo na rd Ba Kez)
W 19 Very important pianist, 14 Frothy rubbish? (3)
O : Pe m8) a 16. Jordan's morning fellow (5)
- Asis in a different version (7) 17. Aslow, screw-headed
we Spot'a key agent (4) fixin ‘
ig device (5) : ntaitigte
ay nee i fellow's nasty, 19 Atthe wicket, they score no runs! (7) heen at ies be 2007
i oy oe : ‘ 20 Quick to accept a late finish to a tEieete Ivanchuk a the top ,
idicule at takeoff? (7; one
N Stata sak ‘ ) great meal (5) seed for the $2 million contest, and
: a po 21. Annual trouble about public all went well until he suddenly
cl ? : : fees a <
2 imber? (6) iy _ relations (5) ACROSS DOWN cracked in today’s position against a
29 One must do so ord aa is ok z
i $ ie in 23 Significantly if not competently (7) 3 Symbol (5) 1 Organised sound (5) tough Romanian. Ivanchuk is a
0 eens) 24 Injur: caused by lions getting out of ty ee eS pawn up as White but under
31 Stories least edited (5) 10 Asian country (5) 4 Honest (4) :
N Stories le it the cage rear? (6) 11 Distress call (3) 5 — Sufficient (6) pressure. Black’s g6 rook menaces
32 Manage with warm heart to dispel 25 Outboard propeller (3) lw 2 MEI IENS (5) ’ 6 — Underground (5) the white king, the a6 bishop
E 7 ariget ”) Bi bic 27. Standard Anglo-Saxon soldiers, = ig workers : oe threatens to take lvanchuk's fl rook.
- ss ants with fresh ideas (5) informally? (5) N 15. Desires (5) 12 Discovers (7) Ivanchuk’s counter was his last
35 To rub the wrong way is a 28 Leads astray in tra :sactions (5) — 18 Devour (3) ’ move £243, which offers rook for
natural thing (3) SA ueisaee Wal Aiea rua carne os a. 19 Braggart (6) 14 Spoil (3) bishop but gives Black a solid
a a 30 Concede that a bargee cannal p 21 Wail (7 16 Donated (5) osition for a slight material deficit.
wy * sibly be big-headed (5) 2 22 Insect (4) 17 Room for quiet U h
i 37 arless of ee stly for raisi ” 23 Peruse (4 work (5) pnertunatcly, habe loans
Q | 32 Are such engines mostly for raising a (4) ’ two got it completely wrong. After
Jon ae “ore? (4) Lu $2. Mere peapras (7) Je eee Black’s next turn in the dia ram
38 The Mas : zc io (6) 20 Collect (5) Wnnead | Wiatacs 5
Ak ; 33 Half Nubian. that’s the 9 Allow (3 21 Bend (5) ad to resign.
foot! (5) point (3) 31 Wonderful (5) 23 Entourage (7) Black’s one-move knock-out?
32 Check (7) 24 Road (6) LEONARD BARDEN



Chess 8603: 1...8c4! and White resigned. The queen
has no good escape square. If 2 Qc3 or Qc2 Bxfl wins

a fOOK.

ACROSS Anon 14 juma *5, Ar’

a ek Vaex 27 A “fm Si ent 2 See 27. Hae OG
gam 29, Oous %6 20 ‘ :
i $ AP tty ov NY 2 Agan ‘ Cory & Nosing 9 Soseet lec 12
— ce a eee Se ‘ ;



oWDOZONO



Sez 43° 74 ©
6 Nosirg 9 “1
sidihenniiabidé ed ee ory De me 9 ERT 2 Fe = EET EE TT
THE TRIBUNE WEDNESDAY, APRIL 30, 2008, PAGE'7B

Votorantim Bank Limited

Votorantim Bank Limited
Financial Statements at
December 31, 2007

Statement of Changes In Equity
Expressed in thousands of U.S. dollars



i Number of | Number of
and Report of Independent Auditors ee Te |
shares shares capital earnings Total
CEWATERHOUSE( COPERS Balances at December 31,
m4 2005 1,000,000 23,785,584 41,290 9,253 50,543
PricewaterhouseCoopers Net income for the year - : - — 4,281 . 4,281
Providence House
ey arses ; Balances at December 31,’
Nassau, Bahamas 2006 1,000,000 23,785,584 41,290 — 13,534 54,824
Website: www.pwe.com
E-mail: pwobs@bs. pwe.com Repurchase of treasury ;
Telephone (242) 302-5300 shares (Note14) (757,814) (18,025,050) (31,290) : - (31,290)
Facsimile (242) 302-5350
Dividend paid - - - (9,253) (9,253)
9
INDEPENDENT AUDITORS’ REPORT Nec inconis torihevear : : . 2.883 2883

ee

Balance at December 31,
2007 242,186

To the Directors and Shareholders of Votorantim Bank Limited .

, . ; : 5,760,534 10,000 | 7,164 17,164
We have audited the accompanying financial statements of Votorantim Bank Limited (the Bank), —Ss esi emcees seen
which comprise the balance sheet as of December 31, 2007, and the income statement, statement
of changes in equity and cash flow statement for the year then ended, and a summary of

pe : ce Cash Flow Statement
significant accounting policies and other explanatory notes.

Year Ended December 31
Expressed in thousands of U.S. dollars



Management's Responsibility for the Financial Statements

2007 2006

Management is responsible for the preparation and fair presentation of these financial statements Gaal howa iro oneewiing wonvies

in accordance with International Financial Reporting Standards. This responsibility includes: interest received , 2.801 4,449
designing, implementing and maintaining internal control relevant to the preparation and fair Interest paid (960) (939)
presentation of financial statements that are free from material misstatement, whether due to ean ae ee ivi Hos fad
fraud or error; selecting and applying appropriate accounting policies; and making accounting Depreciation 4 :
estimates that are reasonable in the circumstances. - Net trading gain 105 101
, i > op one Net cash provided by operating activities before
Auditors’ Responsibility changes in operating assets and liabilities 3,009 4,475
Our responsibility is to express an opinion on these financial statements based on our audit. We (Increase) Decrease in operating assets |
conducted our audit in accordance with International Standards on Auditing. Those standards Securities held-for-trading (14,853) 6,074
require that we comply with ethical requirements and plan and perform the audit to obtain pels a iia : oe :
. paneer _(538) _
reasonable assurance whether the financial statements are free from material misstatement. 3
. . . . ; ; Increase (decrease) in operating liabilities : .

An audit involves performing procedures to obtain audit evidence about the amounts and Demand deposits - customers 1,192 846
disclosures in the financial statements. The procedures selected depend on the auditors’ _ Time deposits - customers : (2,428) (772)
judgment, including the assessment of the risks of material misstatement of the financial Other liabilities . 1014 (205)
statements, whether due to fraud or error. In making those risk assessments, the auditors consider Schaal MGatiused lah hei Goaratine eelvios aol ‘eeaas
internal control relevant to the entity’s preparation and fair presentation of the financial ——_ (12,590) __ 10,445
statements in order to design audit procedures that are appropriate in the circumstances, but not Cash flows from investing activities
for the purpose of expressing an opinion on the effectiveness of the entity’s internal.control. An Purchases of fixture, furniture and equipments 1,604 -
‘audit also includes evaluating the appropriateness of accounting policies. used and the Escuidcue toni insneing nantes
reasonableness of accounting estimates made by management, as well as evaluating the overall Aesuiciase of ieueucy snares (1,200 ;
presentation of the financial statements. Dividend paid (9,253) -

: . . Fi en . . : Net cash used in financing activities (40,543) 7
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a . ee
basis for our audit opinion. : Net (decrease) increase in cash and cash equivalents (54,737) 10,445
Opinion Cash and cash equivalents, beginning of year ___ 70,481 0,036

8 3 : a ‘ : Cash and cash equivalents, end of year 15,744 70,481:

In our opinion, the accompanying financial statements present fairly, in all material respects, the ES ———————
financial position of the Bank as of December 31, 2007, and its financial performance and its Cash and cash equivalents are composed of:
cash flows for the year then ended in accordance with International Financial Reporting Cash and demand deposits 480 300
Standards. Due from banks - interest bearing 15,264 70,181

»

(retasale howe CONO

Chartered Accountants
Nassau, Bahamas
March 27, 2008

Yotorantim Bank Limited

Salance Shest at December 34
Expressert in thousands of U5. dollars

.







Azsets Note. 2007 2
Cash and demand depasrs 486 Soe
Due fret harks - interest hearing ¥ 15,234 70,183
Securities held Jor-trading $ TFBS 8,798
Loans and ackances % - +4
Other avsats 3 BUS Bf
Finhwes, furriiire and equipment 1506 :
Total anants: 3U,2e8 75,604
Liabilities

DEMOrK GODUGHS « TAISEN ADS ? 8,288 FRTE
“Toros cagosile - oastorrenns R 43423 13,836
Cittber Ealitie $ US 466
‘Total liabilities LASER 20,870
Equity . oe
Share card 4 49,008 31200
Retained aarings Fags RBS
Total equity AP 8S Ga BOS
Fated lebllities and acuity 37,728 on HS

os ANG APPROVED POR ISSUE ON BEHALF OF THE BOARD OF QIRECTORS:




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Marche), 2th
Votorantim Bank Limited
Income Statement

Year Ended December 31
Expressed in thousands of U.S. dollars

Note 2007 2006

Interest income
Securities held-for-trading 750 900

Loans and advances - 4

Bank deposits 1,843 3,287
Total interest income 2,593, 4,191
Interest expense

Time deposits - customers (875) (873)
Total interest expense (875) (873)
Net interest income 1,718 3,318
Non-interest income (expenses)

General and administrative expenses (341) (257)

Net trading gain 10,15. 105 101

Other income 11 1,448 1,131

Other expenses (47) (12)

1,165 963

Net income for the year 2,883 4,281

45,744 70,481

Notes to the Financial Statements
at December 31, 2007
Expressed in thousands of U.S. dollars

1 Incorporation and Background Information

Votorantim Bank Limited ("the Bank") is incorporated under the laws of the Commonwealth of
The Bahamas and was licensed on March 8, 1995 by the Central Bank of The Bahamas to
conduct unrestricted banking business. Banco Votorantim S.A. and Votorantim Finang¢as S.A.,
which are incorporated in Brazil, own 4.03% (representing 100% of the ordinary shares) and
95.84% respectively, of the shares of the Bank. The minority shareholders own 0.13% of the
preference shares. : ;

The Bank's business activities include banking services, advisory and management of funds
and investment and trading in international financial markets. In April, 2007, the Board
Directors decided to engage, exclusively, in private banking activities. ;

The registered office of the Bank is located at Saffrey Square Building, Suite 204, Bay Street,
Nassau, Bahamas. A related party provides administrative and accounting services to the
“Bank.

These financial statements have been approved for issue by the Board of Director on March
27, 2008.

2 Summary of Significant Accounting Policies
(a) Statement of compliance

The financial statements have been prepared in accordance with International Financial
Reporting Standards ("IFRS") as promulgated by the International. Accounting Standards
Board. The preparation of the financial statements in conformity with IFRS requires
management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and reported amounts of revenues and expenses during the year. Actual results
could differ from those estimates.

The accounting policies have been consistently applied by the Bank and are consistent with
those used in the previous year.

(b) Basis of preparation

The financial statements are presented in United States dollars rounded to the nearest
thousand. The financial statements have been prepared under the historical cost convention,
as modified by revaluation of financial assets and liabilities held-for-trading.

In the current year, the Bank has adopted IFRS 7 Financial Instruments: Disclosures and the
amendments to IAS 1 Presentation of Financial Statements, which became effective for fiscal
periods beginning on or after 1 January 2007. The impact of the adoption of IFRS 7 and the
changes to IAS 1 has been to expand the disclosures provided in these financial statements
regarding the Bank’s financial instruments and management of capital.

The remaining standards and amendments and interpretations to published standards that
became effective for fiscal periods beginning on or after 1 January 2007 were not relevant to
the Bank’s operations and accordingly did not impact the Bank’s accounting policies or
financial statements. :

The application of new standards and amendments and interpretations to existing standards
that have been published but are not yet effective are not expected to have a material impact
on the Bank's accounting policies or financial statements in the period of initial application.

(c) Financial instruments
(i) Classification

The Bank classifies its financial assets in the following categories: financial assets at fair value
through profit or loss and loans and receivables. Management determines the classification of
its investments at initial recognition.

Financial assets at fair value through profit or loss consists of financial assets held-for-trading
and those designated by management as at fair value through profit or loss at inception. A
financial asset Is classified as held-for-trading If acquired principally for the purpose of short-
term profit taking.
PAGE 8B, WEDNESDAY, APRIL 30, 2008

(ii)

(iii)

(iv)

(v)

(vi)

(vii)

(viii)

(d)

(e)

(f)

(9)

(h)

(i)

Loans and receivables are non-derivative financial assets with fixed or determined payments
that are not quoted in an active market. They consist of loans and advances created by the
Bank providing money to a debtor, other than those created with the intention of short term
profit taking, which are classified as held-for-trading.

Recognition

The Bank recognises financial assets at fair value through profit or loss on the date it commits
to purchase the assets (trade date). Loans and receivables are recognised on the settlement
date, being the date cash is advanced to the borrowers.

Measurement

Financial assets are measured initially at fair value plus transaction costs for all financial
assets not carried at fair value through profit or loss. :

Subsequent to initial recognition all financial assets at fair value through profit or loss are
measured at fair value, except for any instrument that does not have a quoted market price in
an active market and whose fair value cannot be reliably measured is stated at cost including
transaction costs, less impairment losses.

Loans and advances are measured at amortized cost using the effective interest method.

Non-trading financial instruments including margin collateral associated with transactions such
as repurchase agreements, demand deposits, payable to brokers and dealers and time
deposits-customers are measured at historical cost plus accrued interest less impairment
losses.

Fair value measurement principles

The fair value of financial instruments is based on their quoted bid price at the balance sheet
date without any deduction for transaction costs. If a quoted market price is not available, the
fair value of the instrument is estimated using pricing models or discounted cash flow
techniques.

Gains and losses on subsequent measurement

The change in fair value of trading securities and derivative financial instruments, and
gains/losses from their sales are included in "net trading (loss)/gain" in the income statement.

Derecognition

A financial asset is derecognised when the Bank loses control over the contractual rights that
comprise that asset. This occurs when the rights to receive cash flows from the financial asset
have expiréd or where the Bank has transferred substantially all risks and rewards of
ownership. A financial liability is derecognised when it is extinguished.

Assets held-for-trading that are sold are derecognised and corresponding receivables from the
buyer for the payment are recognised as of the date the Bank commits to sell the assets. The
Bank uses the specific identification method to determine the gain or loss on derecognition.

Impairment

Financial assets are reviewed at each balance sheet date to determine whether there is
objective evidence of impairment. If any such evidence exists, the assets recoverable amount
is estimated and carrying amount of the asset is reduced to its estimated recoverable amount
either directly or through the use of an allowance account. The amount of the loss is included
in the income statement. ,

Loans and advances

The recoverable amount of loans and advances is calculated as the present value of the
expected future cash flows, discounted at the instrument's original effective interest rate.
Short-term balances are not discounted. :

Loans and advances are presented net of specific and general allowances for uncollectibility.
Specific allowances are made against the carrying, amount of loans and advances that are
identified as being impaired based on regular reviews of outstanding balances to reduce these
loans and advances to their recoverable amounts. General allowances are maintained to
reduce the carrying amount of portfolios of similar loans and advances to their estimated

‘recoverable amounts at the balance sheet date. The expected cash flows for portfolios of

similar assets are estimated based on previous experience and considering the credit rating of
the underlying customers and late payments of interest or penalties. Increases in the
allowance account are recognised in the income statement. When a loan is known to be
uncollectible and all the necessary legal procedures have been completed, the final loss is
determined and the loan is written off. ‘

If in a subsequent period the amount of an impairment loss decreases and the decrease can
be linked objectively to an event occurring after the write-down, the write-down or allowance is
reversed through the income statement.

Specific instruments :
Cash and cash equivalents

Cash and cash equivalents in the cash flow statement include cash on hand, cash held on
demand with banks and interest-bearing deposits with banks, which have maturities of three
months or less. ,

Liabilities

Liabilities evidenced by securities including demand and time deposits are classified as non-
trading liabilities.

Property, plant and equipment

All property, plant and equipment is stated at historical cost less accumulated depreciation.
Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Segment reporting

A business segment is a group of assets and operations engaged in providing products or
services that are subject to risks and returns that are different from those of other business
segments. A geographical segment is engaged in providing products or services within a
particular economic environment that are subject to risks and returns different from those of
segments operating in other economic environments.

Foreign currency

Items included in the financial statements of the Bank. are measured using the currency of the
primary economic environment in which the entity operates (“the functional currency”). The
financial statements are presented in United States dollars, which is the Bank’s functional and
presentation currency.

Transactions in foreign currencies are translated to United States dollars at the foreign
exchange rate prevailing at the date of the transaction. Monetary assets and liabilities
denominated in currencies other than the United States dollar at the balance sheet date are
translated to United States dollars at the foreign exchange rate ruling at that date. Foreign
exchange differences arising on translation are recognised in “other income/expenses" in the
income statement.

Interest income/interest expense

Interest income and interest expense are recognised in the income statement using the
effective interest method. :

Interest income and interest expense include the amortisation of any discount or premium or
other differences between the initial carrying amount of an interest bearing instrument and its
amount at maturity calculated on an effective interest rate basis.

Net trading (loss)/gain

Net trading (loss)/gain includes gains and losses arising from the disposal of securities held-
for-trading and changes in their fair value.

Income tax

The Bank's financial statements reflect no provision for taxes since there is no income tax
imposed in Nassau, Bahamas. However, the Bank may be subject to capital gains tax on
financial instruments in other jurisdictions.

Preference shares

Preference shares are non-voting and in a winding up of the Bank, are given priority for
repayment of capital over all other shares. In all other respects, ordinary shares and
preference shares rank "pari passu” and both classes participate in the surplus profits of the
Bank which are from time to time distributed by way of dividends at the discretion of the
directors.

(k)

(1)

10

11

12

13

14

THE TRIBUNE

Related parties

Related parties comprise the Bank's shareholders and affiliated entities, which are related on
the basis of common management/ownership and control, as well as directors and officers of
these entities and the Bank.

Fair value estimates

Fair value estimates are made at a specific point in time, based on relevant market information
and information about the financial instrument. These estimates do not reflect any premium or
discount that could result from offering for sale at one time the Bank's entire holdings of a
particular financial instrument. These estimates are subjective in nature and involve
uncertainties and matters of significant judgement and, therefore, cannot be determined with

precision. Changes in assumptions could significantly affect the estimates.

The carrying amounts of the Bank's significant financial instruments approximate their fair
values because of one or more of the following reasons:

Immediate or short-term maturity.
Carrying value approximates market value.
Interest rates approximate current market rates.

Due From Banks - Interest Bearing Deposits

Balances included in this caption, as of 31 December, 2007, represent deposits placed with
banks maturing within three months of the balance sheet date and earning interest at rates

ranging from 3.15% to 4.75% (2006 - 5.16% to 5.28%) per annum.

Securities
2007 2006
Held-for-trading
’ United States government debt securities 19,782 -
Brazilian government debt securities - 5,135
19,782 5,135
Loans and Advances |
2007 2006
Customers - 14



Loans and advances are offered by the Bank to its customers to fund operations and import
and export activities.

Other Assets

Other assets consist mainly of account receivables in the amount of US$ 557 (2006 - US$ 51).

Demand Deposits - Customers

The balances under this caption represent money market deposits. At December 31, 2007,
interest paid to the Bank's depositors was 2.82% to 4.08% (2006 - 3.67% to 4.00%) per
annum.

Time Deposits - Customers

Balances under this caption represent deposits placed with the Bank, which, at December 31,
2007, earn interest at fixed.rates ranging from 4.05% to 6.00% (2006 - 3.90% to 5.60%) per
annum.

Other Liabilities

Other liabilities comprise account payables in the amount of US$ 1,135 (2006 - US$ 160).

Net trading gain

Net trading gain consists mainly of gains on the mark to market of held-for-trading securities of
US$ 105 (2006 - US$ 101).

Other income

Other income consists mainly of underwriting fees of US$ 647 (2006 — US$ 431), brokerage
fees of US$ 20 (2006 - US$ 350), custody fees of US$ 129 (2006 - US$ 335) and
management fees US$ 631 (2006 - Nil). ;

Maturity Analysis of Assets and
Liabilities — current and non-current assets

The following table summarises maturities of assets and liabilities, which are based on
remaining period at the balance sheet to the contractual maturity dates:



2007 2006
Cash and cash equivalents
Within three months 15,744 70,481
Securities held-for-trading
Three months to one year 19,782 -
More than five years - 9,135
Loans and advances :
Within three months - 7
Three menths to one year -. 7
- 14
Other assets
Within three months 602 64
Demand deposits-customers
Within three months 8,266 7,074
Time deposits - customers
Within three months 10,277 12,311
Three months to one year 846 1,325
11,123 13,636
Other liabilities
Within three months 1,175 160
Related-party Transactions and Balances
(Banco Votorantim S.A., Banco Votorantim S.A.
- Nassau Branch and Votorantim Finangas S.A.)
2007 2006
Assets
Cash and cash equivalents 1 1
Liabilities ;
Demand deposits - customers 120 -
Income statement
General and administrative expenses ‘ (84) (106)

General and administrative expenses represent technical services rendered by Raltic S.A., an
affiliate, during the year in accordance with a service agreement.

Share Capital

On April 13, 2007, the Bank repurchased treasury shares in the amount of US$ 31,290,
represented by 757,814 ordinary shares and 18,025,050 preference shares in accordance with
The Central Bank of The Bahamas approval and authorization for the reduction of capital of
US$ 41,290 to US$ 10,000.

On December 31, 2007, the Bank has authorised capital of US$ 10,000 (2006 — US$ 41,290)
divided into 5,760,534 (2006 — 23,785,584) preferred shares and 242,186 (2006 — 1,000,000)
ordinary shares with no par value. All of the shares have been issued and fully paid as follows:

2007 2006

Ordinary shares 344 1,419
Preference shares 9,656 39,871
10,000 41,290
THE TRIBUNE WEDNESDAY, APRIL 30, 2008, PAGE 9B

Liquidity risk



The ordinary shares are entitled to one vote per share. The preference shares are non-voting,

i tion. oe age . Pgs
do:nor have: stated: interest rats andido.hot have:staled (sums offedempl This is the risk that the Bank has the necessary liquidity to meet its obligations on borrowed

funds, bonds and other securities on contractual maturity. The Bank manages its liquidity by
matching as far as possible liabilities with assets of similar maturity periods. The relevant
maturity groupings based on the remaining period at the balance sheet date to the contractual
maturity date are as follows, considering an undiscounted cash flow:

During 2007, the Bank paid a dividend to ordinary and preference shareholders of US$ 0.373
per share totalling US$ 9,253 (2006 - Nil).

Financial Risk Management
As of December 31, 2007
Over five

The Bank's activities expose it to a variety of financial risks and those activities involve the

analysis, evaluation, acceptance and management of some degree of risk or combination of Upto tipts oncia ears oF
risks. Taking risk is core to the financial business, and the operational risks are an inevitable — ene mentt one vet the years —__undated
consequence of being in business. The Bank’s aim is therefore to achieve an appropriate
balance between risk and return and minimize potential adverse effects on the Bank financial

performance.

Demand deposits — customers 8,266
Time deposits — customers 9,597
Other liabilities

Total liabilities
The Bank’s risk management policies are designed to identify and analyze these risks, to set Tote eakets
appropriate risks limits and controls, and to monitor the risks and adherence to limits by means
of reliable and up-to-date information systems. The Bank regularly reviews its risks -
management policies and systems to reflect changes in market, products and emerging best
practices.

Liquidity assets

As of December 31, 2006

Over five
Risk management is carried out by a central treasury department (Group treasury) under one month one year five years coca
policies approved by the Board of Directors. Group treasury identifies, evaluates and hedges :

financial risks in close co-operation with the Group’s operating units. The Board provides
written principles for overall risk management, as well as written policies covering specifics
areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivatives financial

instruments and non-derivatives financial instruments.

Demand deposits - customers
Time deposits - customers
Other liabilities

Total liabilities

Total assets

Market risk Liquidity assets

Market risk is managed on a consolidated basis by the Votorantim Group.

Interest rate risk

The Votorantim Group performs operations involving derivative financial instruments, operating
in organized and over the counter markets, in order to ensure the management of market risk

appropriate to the Group policy.

Cash flow interest rate risk is the'risk that the future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. Fair value rate risk is the risk that the
value of a financial instrument will fluctuate because of changes in market interest rates.

Market risk management is performed centrally, by the administrative area, which is
independent from the operations desk and is also monitored by the Risks Committee,
comprising the board of executive officers and vice presidency of Banco Votorantim S.A.,
which meet periodically to assess the risks and define operating limits. The basic procedures
for risk management are as follows: a) monitoring the adequacy of positions and risks
compared with the limits established by the Risks Committee and legal limits; b) integrity of the
pricing of assets and derivatives; c) evaluation of the market risk using the “Value at Risk”
methodology and by simulating scenarios; d) keeping track of daily results using the back-test
methodology.

The policy for managing market risk also considers the use of derivative financial instruments
for hedging positions to meet the demand of counterparties and as a means of reversing
positions at times of significant oscillations. The operations observe the limits agreed by the
Committee and imposed by legislation, after analyzing credit and liquidity risks, when
appropriate, when they involve the liquidity and credit policies and the decisions of the
respective Committee.

The Bank’s interest bearing financial assets and liabilities consist of demand deposits, due
from banks — interest bearing, securities held-for-trading, demand deposits — customers and
time deposits — customers. The analysis of assets and liabilities disclosed under Note 12
Maturity Analysis of Assets and Liabilities is indicative of the analysis of interest bearing
financial instruments at carrying value, categorized by maturity dates.

Capital Management

The Bank’s objectives when managing capital, which is a broader concept than ‘equity’ on the
face of the balance sheet, are: :

To comply with the capital requirements set by the Central Bank of The Bahamas (the
Central Bank);

To safeguard the Bank’s ability to continue as a going concern so that it can continue to

provide returns for its shareholders and benefits for other stakeholders; and to maintain a *

Currency risk strong capital base to support the development of its business.

Capital adequacy and the use of regulatory capital are monitored by the Bank’s
management, employing techniques designed to ensure compliance with guidelines
established by the Central Bank. The required information is filed with the Central Bank on a
quarterly basis.

The Bank attempts to manage currency and interest rate risks by monitoring transactions to

ensure that the exposure to particular currencies/rates does not exceed established limits.

These limits are established using the "value at risk" methodology. The Bank also attempts to

reduce interest rate and currency risks by entering into hedging transactions such as currency

solange: At December 31, 2007, the Central Bank requires the Bank to maintain a ratio of total
ee . ; regulatory capital to risk-weighted assets at or above a minimum of 20% (2006 — 8%).

The Bank's assets were denominated in United States dollars as of the balance sheet date,

except for the following which were denominated in other currencies. The table below summarises the composition of regulatory capital and shows the capital

: adequacy ratio of the Bank as of the balance sheet date. During 2007 and 2006, the Bank has

2007 complied with all of the externally imposed capital requirements to which it was subject.

Deposits denominated in GBP 20 : 20 we ~ . Bai! : a . 2007 :

Deposits denominated in Euro 132

Deposits denominated in. Reais . «gl 1
Deposits denominated in YEN - 2
Deposits denominated in Bahamian dollar 25 24 x otal

Tier 1 capital
Share capital
Retained earnings

Risk-weighted assets

Total assets : 178 164
Capital adequacy ratio

Foreign currency gain for the year totalled US$ 13 (2006 - gain US$ 15) and is included in

"other income" in the income statement.
Credit risk , The following is a classification of assets and liabilities by geographical location:

’ Credit risk is the risk that a counter-party will cause a financial loss to the Bank by failing to —________ereentage _
perform according to the terms of the contract. Credit exposures arise principally in lending ‘ 2007 2006
activities that lead to loans and advances, and Investment activities that bring debt securities Assets
and other bills into the Bank’s asset portfolio. There is also credit risk in off-balance sheet alae &
financial instruments such as loan commitments. The gross notional or contract amounts of oe
derivative financial instruments do not represent the Bank's exposure to credit risk. The Bank's
credit risk exposures at any given time is defined as the gross replacement value of the total Liabillties
receivable balance under outstanding contracts, which are marked to market on a daily basis. Brazil . 71
The Bank attempts to minimize its exposure to credit risk by dealing with creditworthy counter- Caribbean 18
parties and through the use of various credit monitoring techniques, including collateral policies ~ Gre tice 5
and position and credit exposure limits which are based on the financial condition of the oe

applicable counterparties.

Assets and Liabilities Geographical Distribution

100

100






PUBLIC NOTICE |

INTENT TO CHANGE NAME BY DEED POLL

The Public is. hereby advised that |, KHADAJAH PHYLICIA |
CURTIS of PO. Box N-10060, Nassau, Bahamas, intend to
change my name to KHADAJAH PHYLICIA FERGUSON. If
‘there, are any objections to this change of name by Deed
Poll, you may write such objections to the Chief Passport
Officer, PO.Box N-742, Nassau, Bahamas no later than thirty
(30) days after the date of the publication of this notice.

NOTICE

NOTICE is hereby given that NIXON ANESTOR of
COWPEN ROAD, NASSAU, BAHAMAS is applying to
the Minister responsible for Nationality and Citizenship,
for registration/naturalization as a citizen of The
Bahamas, and that any person who knows any reason
why registration/ naturalization should not be granted,
should send a written and signed statement of the facts
within twenty-eight days from the 30th day of April 2008
to the Minister responsible for Nationality and Citizenship,
P.O.Box N- 7147, Nassau, Bahamas.

NOTICE

Election for president on Friday 2nd
May 2008 from 10:00 am - 6:00 pm at
Police Headquaters. All members of
the Association and The Retired
Police Officers Association will be
eligible to vote.












NOTICE



NOTICE PUBLIC NOTICE

NOTICE is hereby ‘given that DONNEL ST. VIL of
BALLS ALLEY, NASSAU, BAHAMAS is applying to the
Minister responsible for Nationality and Citizenship, for
registration/naturalization as a citizen of The Bahamas,
and that any person who knows any reason why
registration/ naturalization should not be granted, should
send a written and signed statement of the facts within
twenty-eight days from the 30th day of April 2008 to
the Minister responsible for Nationality and Citizenship,
P.O.Box N- 7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that ELYSEE ARTY of #84
WASHINGTON STREET, NASSAU, BAHAMAS is
applying to the Minister responsible for Nationality and
Citizenship, for registration/naturalization as a citizen
of The Bahamas, and that any person who knows any
reason why registration/ naturalization should not be
granted, should send a written and signed statement
of the facts within twenty-eight days from the 23rd day
of April 2008 to the Minister responsible for Nationality
and Citizenship, P.O.Box N- 7147, Nassau, Bahamas.





NOTICE is hereby given that RONELL VILBURN of

‘GOLDEN ISLE OFF CARMICHAEL ROAD, P.O. BOX

SS-6156, NASSAU, BAHAMAS is applying to the
Minister responsible for Nationality and Citizenship, for
registration/naturalization as a citizen of The Bahamas,
and that any person who knows any reason why
registration/ naturalization should not be granted, should
send a written and signed statement of the facts within
twenty-eight days from the 30th day of April 2008 to
the Minister responsible for Nationality and Citizenship,
P.O.Box N- 7147, Nassau, Bahamas.

Established Bahamian Company in Construction,
Service and Retail
Is looking to hire an energetic and ambitious Bahamian person as

MANAGER

Salary plus incentive scheme. Also possible share
purchase option. Reply in writing with resume

“MANAGER”, P.O. Box CB-11541





SU a





INTENT TO CHANGE NAME BY DEED POLL
The Public is hereby advised that |, PATRICIA ELAINE
CAPRON of PO. Box N-7940, Nassau, Bahamas, intend to
change my name to TRISHA ELAINE LARODA. If there are
any objections to this change of name by Deed Poll, you
may write such objections to the Chief Passport Officer,
P.O.Box N-742, Nassau, Bahamas no later than_ thirty
(30) days after the date of the publication of this notice.





For Global Shipping Line

Applicants must have:
* Prior shipping experience
¢ Knowledge of shipping industry
¢ Excellent oral & written skills
¢ Strong negotiation‘kills
Written applications should be addressed to
P.O. Box CB-12762 (Suite #223)

West Bay Street Shopping Centre
Nassau, The Bahamas


PAGE 10B, WEDNESDAY, APRIL 30, 2008

Banco Votorantim S.A. -
Nassau Branch

Financial Statements at
December 31, 2007
and Report of Independent Auditors

PRICEWATERHOUSE( COOPERS

PricewaterhouseCoopers
Providence House

East Hill Street

P.O. Box N-3910

Nassau, Bahamas

Website: www.pwe.com
E-mail: pwebs@bs.pwe.com
Telephone (242) 302-S300
Facsimile (242) 302-5350

INDEPENDENT AUDITORS’ REPORT
To the Board of Directors of Banco Votorantim S.A. — Nassau Branch

We have audited the accompanying financial statements of Banco Votorantim S.A. — Nassau
Branch (the Branch), which comprise the balance sheet as of December 31, 2007, and the income
statement, statement of changes in due to Head Office and cash flow statement for the year then
ended, and a summary of significant accounting policies and other explanatory notes.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements
in accordance with International Financial Reporting Standards. This responsibility includes:
designing, implementing and maintaining internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to
fraud or error; selecting and applying appropriate acco: nting policies; and making accounting
estimates that are reasonable in the circumstances.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with International Standards on Auditing. Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance whether the financial statements are free from material misstatement. —

An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors’
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditors consider
internal control relevant to the entity’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An
audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.

Opinion

In our opinion, the accompanying financial statements present fairly, in all material respects, the
financial position of the Branch as of December 31, 2007, and its financial performance and its
cash flows for the year then ended in accordance with International Financial Reporting
Standards. ,















THE TRIBUNE _

Banco Votorantim S.A. - Nassau Branch

Statement of Changes in Due to Head Office
Expressed in thousands of U.S. dollars





Due to Retained
Head office earnings Total
Balances at December 31,
2005 250,000 122,872 372,872
Net income for the year - 45,986 45,986
Balances at December 31,
2006 250,000 168,858 418,858
Net income for the year - 22,597 22,597
Balance at December 31,
2007 250,000 - 191,455 441,455
Cash Flow Statement
at December 31, 2007
Expressed in thousands of U.S. dollars
2007 2006
Cash flows (used in) from operating activities .
Interest received 165,375 190,072
Interest paid (337,256) (311,926)
Other income received 445 298
Net trading gain/loss 176,679 187,880
Other payments from operating activities (15,527) (27,731)
Net cash (used in) from operating activities before
changes in operating assets and liabilities (10,284) 38,593
(Increase) decrease in operating assets
Securities purchased under resale agreements (9,848) 68,722
Securities held-for-trading (684,948) 663,776
Loans and advances 103,187 (82,246)
Credit collateral 110,650 (244,250)
Other assets (1,027) (10,476)
Purchase of fixture, furniture and equipments (107) -
Increase (decrease) in operating liabilities
Demand deposits (147) 151
Linked deposits (9,602) 569
Credit linked notes (86,239) 25,033
Time deposits — customers 91,242 (137,660)
Certificate of deposits — customers 409,589 (128,328)
Securities sold under repurchase agreements 86,807 (300,315)
Other liabilities (94,188) . 13,633

Net cash flows used in operating activities

(94,915) ___ (92,804)

Cash flows from (used in) financing activities





; Equity linked notes 19,408 14,578
fo Seliacsal Funds borrowed 140,770 (69,966)
ee Cone Net cash flows from (used in) financing activities 160,178 (55,388)

Chartered Accountants . . : ar

Natsai Bahamas Cash flows from investing activities

March 27, 2008 Securities held-to-maturity et 58,120

Banco Votorantim $.A. - Nassau Branch Net increase (decrease) in cash and cash equivalents 166,020 (90,072)

Balance Sheet al Dacember 34 Cash and cash equivalents at beginning of year 321,604 41 1,676

Expressed It thous s } : eae

Expressed in thougands of UiS. dollars | Cash and cash equivalents at end of year 487,624 321,604

| Cash and cash equivalents are composed of: : HONB As
Cash and demand deposits. : a8 3,889 5,527
Due from banks -— Interest bearing deposits 483,735 316,077
; 487,624 __321,604
: Notes to the Financial Statements
; at December 31, 2007
~ Expressed in thousands of U.S. dollars
F Ie and BouOMent :
wm — ment 1 Incorporation and Background Information
& Wt
Bs $286 Piper Banco Votorantim S.A. - Nassau Branch (the “Branch") has been registered in the
3a s ‘. Commonwealth of The Bahamas and is authorised to operate under a branch banking license
M4 issued on February 20, 2002 by the Central Bank of The Bahamas to Banco Votorantim
2 aureornents 3 S.A.(the “Bank”), a Brazilian bank which is 99.88% owned by Votorantim Finangas S.A.
#h
38
$8 The Branch's operations, which complement those of Banco Votorantim S.A., its Head Office,
include banking services, advisory, investment and trading in international financial markets. A
significant portion of the «ssets of the Branch comprises investments in Brazilian capital
markets.
‘ The registered office of the Branch is located at Saffrey Square Building, Suite 204, Bay Street,
; ‘ ere Nassau, Bahamas. A related party provides administrative and accounting services to the
j mie eee Branch.
AND APPROYED FOR ISSUE ON BEHALF OF THE 804m
The financial statements have been approved for issue by the Board of Directors on March 27,
2008.
arc ect rr
Ehactine 2 Summary of Significant Accounting Policies
a Mitton Roberto Pereira
ace, Pepaeaeae vee (a) Statement of compliance

Banco Votorantim S.A. - Nassau Branch The financial statements have been prepared in accordance with International Financial

scome Statenient Reporting Standards ("IFRS") as promulgated by the International Accounting Standards

Year Ended December 31 Board. The preparation of the financial statements in conformity with IFRS requires

Expressed in thousands of U.S. dollars management to make estimates and assumptions that affect the reported amounts of assets

= and liabilities and disclosure of contingent assets and liabilities at the date of the financial
Note 2007 2006 statements and reported amounts of revenues and expenses during the year. Actual results
could differ from those estimates.

Interest income
ee eg = teresenealng 2epoit serie tlt The accounting policies have been consistently applied by the Branch and are consistent with
Securities purchased under resale agreements 6.419 2,427 those used in the previous year, unless otherwise stated.

Securities held-for-trading 92,785 87,324

Securities held-to-maturity 12,336 16,602 (b) Basis of preparation

Loans and advances 25,418 21,362

Other assets - margin collateral 4,911 6.985 The financial statements are presented in United States dollars rounded to the nearest

Total interest income 192.040 ~ 482.419 ‘ thousand. The financial statements have been prepared under the historical cost convention,

ee as modified by revaluation of derivative contracts and financial assets and liabilities held-for-

Interest expense trading.

Linked deposits 476 835
Time deposits - customers 15,971 61,885 In the current year, the Branch has adopted IFRS 7 Financial Instruments: Disclosures and the
Credit linked notes 13,836 19,738 amendments to IAS 1 Presentation of Financial Statements, which became effective for fiscal
Pats ao ee 4,892 1,041 periods beginning on or after 1 January 2007. The impact of the adoption of IFRS 7 and the
Sinise oy reeteci ieee coreenens ze =e ee changes to IAS 1 has been to expand the disclosures provided in these financial statements
Funds borrowed: : 39.666 34.685 regarding the Branch’s financial instruments and management of capital.
Total interest expense 331,018 296,568 The remaining standards and amendments and interpretations to published standards that
. became effective for fiscal periods beginning on or after 1 January 2007 were not relevant to
Net interest expense ___(138,978) ____—(114,449) the Branch’s operations and accordingly did not impact the Branch’s accounting policies or
; g gP

Provision for loan losses 7 (605) (469) financial statements.

Non-interest income (expenses) The application of new standards and amendments and interpretations to existing standards
Net trading gain 12 and 18 176,679 187,880 that have been published but are not yet effective are not expected to have a material impact
Administrative expenses (9,170) (15,883) on the Branch’s accounting policies or financial statements in the period of initial application.

gp Pp
Other income 3,292 349
Other expenses 19 and 21 1,857 3,632 . .
‘i ( ) ___@,682) (c) Financial assets
168,944 168,714
(i) Classification

Net income before tax 29,361 53,796
oxcexbenses 4 6.764 7.810 The Branch classifies its financial assets in the following categories: financial assets at fair
. * * value through profit or loss; loans and receivables; and held-to-maturity financial assets.

22,597 45,986 Management determines the classification of its investments at initial recognition.

Net income for the year
THE TRIBUNE

(i)

(il)

(iii)

(iv)

(v)

(vi)

(vii)

(viii)

Classification (continued)

Financial assets at fair value through profit or loss consist of financial assets held-for-trading
and those designated by management as at fair value through profit or loss at inception. A
financial asset is classified as held-for-trading if acquired principally for the purpose of short-
term profit taking. Derivatives are also categorized as “held-for-trading” unless they are
designated as hedges. All trading derivatives in a net receivable position (positive fair value)
are reported as other assets. All trading derivatives in a net payable position (negative fair
value) are reported as other liabilities.

Loans and receivables are non-derivative financial assets with fixed or determined payments
that are not quoted in an active market. They consist of loans and advances created by the
Bank providing money to a debtor, other than those created with the intention of short term
profit taking, which are classified as held-for-trading.

Held-to-maturity securities are non-derivative financial assets with fixed or determjnable
payments and fixed maturities that the Branch has the positive intention and ability to hold to
maturity. These include certain debt investments.

Recognition

The Branch recognizes financial assets at fair value through profit or loss and held-to-maturity
assets on the date it commits to purchase the assets (trade date). Loans and receivables are
recognised on the settlement date, being the date cash is advanced to the borrowers.

Measurement

Financial instruments are measured initially at fair value, including transaction costs for all
financial assets not carried at fair value through profit or loss.

Subsequent to initial recognition all financial assets at fair value through profit or loss are
measured at fair value, except that any instrument that does not have a quoted market price in
an active market and whose fair value cannot be reliably measured is stated at cost including
transaction costs, less impairment losses.

Loans and advances and held-to-maturity assets are measured at amortized cost using the
effective interest method.

Non-trading financial instruments including margin collateral associated with transactions such
as repos, linked deposits, credit linked notes, time deposits-customers, certificates of deposit-
customers, securities sold under repurchase agreements and funds borrowed, are measured
at historical cost plus accrued interest less impairment losses.

Equity linked notes are debt instruments which are directly linked to embedded derivatives and
are measured at fair value.

Fair value measurement principles

The fair value of financial instruments is based on their last quoted bid price at the
balance.sheet date without any deduction for transaction costs. If a quoted market price
is not available, the fair value of the instrument is estimated using pricing models or
discounted cash flow techniques.

Gains and losses on subsequent measurement

The change in fair value of trading securities and derivative financial instruments, and
gains/losses from their sales are included in "net trading gain/loss" in the income statement.

Derecognition

A financial asset is derecognised when the Branch loses control over the contractual rights that
comprise that asset. This occurs when the rights to receive cash flows from the financial asset
have expired or where the Bank has transferred substantially all risks and rewards of
ownership. A financial liability is derecognised when it is extinguished.

Held-for-trading assets that are sold are derecognised and corresponding receivables from the
buyer for the payment are recognised as of the date the Branch commits to sell the assets.
The Branch uses the specific identification method to determine the gain or loss on
derecognition.

Impairment

Financial assets are reviewed at each balance sheet date to determine whether there is
objective evidence of impairment. If any such evidence exists, the asset's recoverable amount
is estimated and the carrying amount of the asset is reduced to its estimated recoverable
amount either directly or through the use of an allowance account. The amount of the loss is
included in the income statement.

Loans and advances

The recoverable amount of loans and advances is calculated as the present value of the
expected future cash flows, discounted at the instrument's original effective interest rate. Short-
term balances are not discounted. :

Loans and advances are presented net of specific allowances for uncollectibility. Specific
allowances are made against the carrying amount of loans and advances that are identified as
being impaired based on regular reviews of outstanding balances to reduce these loans and
advances to their recoverable amounts. The provision for loan losses is based on an analysis
by management of the outstanding loan portfolio, in order to determine the amount sufficient to
cover estimated losses and takes into consideration the political and economic environment

_ and the specific and general portfolio risks of the countries of origin of the customers.

Increases in the allowance account are recognised in the income statement. When a loan is
known to be uncollectible and all the necessary legal procedures have been completed, the
final loss is determined and the loan is written off.

If in a subsequent period the amount of an impairment loss decreases and the decrease can
be linked objectively to an event occurring after the write-down, the write-down or allowance is
reversed through the income statement.

Specific instruments
Cash and cash equivalents
Cash and cash equivalents in the cash flow statement include cash on hand, cash held on

demand with banks and interest-bearing deposits with banks which have maturities of three
months or less.

‘Securities sold under repurchase agreements/
' purchased under resale agreements

Securities sold under repurchase agreements are treated as collateralized financing
transactions and are carried at their contractual amounts plus accrued interest, as specified in
the respective agreements. It is the Bank's policy to take possession of securities with market
value in excess of the principal amount loaned, plus accrued interest, in order to collateralize
resale agreements. Similarly, the Branch is required to provide securities to counterparties in
order to collateralize repurchase agreements recorded as securities sold under repurchase
agreements. The Branch's agreements with counterparties contain contractual provisions
allowing for additional collateral to be obtained, or excess collateral returned, when necessary.

The difference between the sale and repurchase consideration is recognised on an accrual
basis over the period of the transaction and is included in "Interest expense-securities sold
under repurchase agreements" and "Interest income - securities repurchased under resale
agreements" in the income statement.

Funds borrowed, linked deposits,
credit linked notes and equity linked notes

Funds borrowed, linked deposits and credit linked notes are carried at principal plus accrued
interest using the effective interest rate method.

Equity linked notes are funding linked to embedded derivatives where the counterparty is
assured the receipt the principal amount and the equity payout liability depends on the return
of the underlying equity.

Securities sold short

Securities sold short comprise borrowed stock sold for future delivery and are recorded at fair
value.

Liabilities

Liabilities evidenced by sécurities including demand deposits, time deposits and certificates of

deposit are classified as non-trading liabilities.

(d)

(e)

(f)

(9)

(h)

i)

WEDNESDAY, APRIL 30, 2008, PAGE 11B

Derivative financial instruments

Derivative financial instruments, including futures, forwards and interest and foreign currency
swaps are measured in accordance with the accounting policy for held-for-trading instruments.

The net amount of derivative financial instruments is included in "Other assets" and "Other

liabilities" in the balance sheet.

Segment report

A business segment is a group of assets and operations engaged in providing products
or services that are subject to risks and returns that are different from those of other
business segments. A geographical segment is engaged in providing products or
services within a particular economic environment that are subject to risks and returns
different from those of segments operating in other economic environments.

Foreign currency

Items included in the financial statements of the Bank are measured using the currency of the
primary economic environment in which the entity operates (“the functional currency”). The
financial statements are presented in United States dollars, which is the Bank’s functional and

‘presentation currency.

Transactions in foreign currencies are translated to United States dollars at the foreign
exchange rate prevailing at the date of the transaction. Monetary assets and liabilities
denominated in other than United States dollar currency at the balance sheet date are
translated to United States dollars at the foreign exchange rate ruling at that date. Foreign
exchange differences arising on translation are recognised in "Other income/expenses" in the
income statement.

Interest income/interest expense

Interest income and interest expense are recognised in the income statement using the
effective interest method.

Tax income

Under the current laws of The Bahamas, there is no income, estate, corporation, capital gains
or other tax payable by the Branch. However, the Branch is subject to taxation on gains on
financial instrument operations carried out in other jurisdictions. This amount is recognized on
the income statement.

Net trading gain

Net trading gain/loss includes gains and losses arising from disposals of securities and
changes in the fair value of securities held-for-trading and derivative financial instruments.

Related parties

Related parties comprise the Head Office and affiliated entities which are related on the basis
of common management/ownership and control, as well as directors and officers of tne Head
Office and affiliates. :

Fair value estimates

Fair value estimates are made at a specific point in time, based on relevant market information
and information about the financial instrument. These estimates do not reflect any premium or
discount that could result from offering for sale, at one time, the Branch's entire holdings of a
particular financial instrument. These estimates are subjective in nature and involve
uncertainties and matters of significant judgement and, therefore, cannot be determined with
precision. Changes in assumptions could significantly affect the estimates.

The carrying amounts of the Branch's significant financial instruments, except for securities
held-to-maturity as disclosed in note 6, approximate their fair values because of one or more of
the following reasons:

Immediate or short-term maturity.
Carrying value approximates market value.
Interest rates approximate current market rates.

Due from Banks - Interest-bearing Deposits ;

Balances included in this caption represent deposits placed with banks maturing within three
months of the balance sheet date and earn interest at rates ranging from 3.50 % to 5.02%
(2006 - 5.12% to 5.45%) per annum.

Credit Collateral

Credit collateral represents deposits placed at financial and non financial counterparties in
order to guarantee Credit Default Swap activities. At December 31, 2007 the amount of these
deposits were US$ 461,583 (2006 — US$ 571,301) and earned interest rates ranging from
4.40% to 5.61% (2006 - from 4.40% to 5.46%) per annum.

Securities Purchased under Resale Agreements

The Branch lent funds by purchasing financial instruments under agreements to resell the
instruments at future dates at the same price plus accrued interest at a predetermined rate.
Securities purchased under agreements to resell represent primarily Brazilian Federal
Eurobonds, which were purchased by the Branch with a commitment to resell them. At
December 31, 2007 the amount of these agreements outstanding were US$ 17,918 (2006 —
US$ 8,052) and earned interest rates ranging from 4.00% to 4.25% (2006 - 5.20%) per annum.

Securities

2007 2006
Held-for-trading

Eurobonds 4,131,171 449,814
Bank deposit certificates 265,218 265,221
Brazilian government debt securities 306,367 276,758
Brazilian Brady Bonds - 1,751
Variable income securities 31,761 4,566
Treasury Bills 495 20,592
1,735,012 1,018,702



Held-for-trading securities amounting to US$ 113,506 (2006 — US$ 48,045) have been pledged
as collateral for repurchase agreements as described in Note 13.

2007 2006

Held-to-maturity
Brazilian Federal Republic - maturity January 2007 - 41,887
Brazilian Federal Republic - maturity July 2007 - 58,898
Brazilian Federal Republic - maturity March 2008 130,189 134,630
130,189 235,415

As of December 31, 2007, the fair value of held-to-maturity securities was US$ 125,876 (2006
- US$ 239,217). ,

Loans and Advances

2007 2006

Customers 352,214 456,577
Allowance for losses (1,803) (1,148)
350,411 455,429

Loans and advances are offered by the Bank to its customers to fund operations and import
and export activities. At December 31, 2007, the loans and advances earned interest at rates
ranging from 4.50% to 9.42% (2006 - 5.00% to 10.12%) per annum.

There were no overdue loans in the Branch's portfolio as at December 31, 2007. However, the
Branch recorded a provision for loan losses according to ratings established by Branch Credit
Management considering the historical experience and characteristics of the client.

Reconciliation of movement in allowance account for losses on loans and advances is as
follows:

’
PAGE 12B, WEDNESDAY, APRIL 30, 2008

Loans and Advances (Continued)

10

11

12

13

14

15



2007 2006 —
Balance at January 1 (1,148) (679)
Provision for loan impairment (655) (469)
Balance at December 31 (1,803) (1,148)

Other Assets

Other assets comprise mainly receivable from brokers and dealers of US$ 20,914 (2006 - US$
125,675), margin collateral of US$ 10,426 (2006 - 32,864) associated with transactions such
as ADRs dealing. Margin collateral is held with other banks and earns interest at an average
rate of 4.70% (2006 - 5.00%) per annum.

Linked Deposits

Linked deposits represent funds received as guarantees of transactions with third parties. At
December 31, 2007, they bear interest at a rate of 5.55% (2006 - 4.00% to 8.00%) per annum.

Equity Linked Notes and Credit Linked Notes

Equity linked notes are fixed interest rate instruments with interest rates at December 31,
2007, ranging from 15.02% to 48.89% (2006 — 13.00% to 22.50%) per annum and their
maturity periods are up to March 2008 (2006 — March 2007). At December 31, 2006, credit
linked notes were fixed interest rate instruments with interest rates ranging from 4.85% to
13.17%. Equity linked notes and credit linked notes are instruments by which the Branch is
obligated to return at maturity the principal amount at fair value and principal amount plus
accrued interest, respectively, unless certain specified events occur, in which case, the
counterparty may choose to receive specified securities as settlement of the amount due or,
depending on the event, the Branch may not have to return any amounts to the counterparty
and will receive the full amount of the liability as income.

Time Deposits - Customers
Balances under this caption represent deposits placed with the Branch, which, at December

31, 2007, are based on the Brazilian Interbank Deposit Rate (CDI) plus interest at fixed rates
ranging from 4.00% to 12.37% (2006 - 5.25% to 7.98%) per annum.

Certificate of Deposits - Customers

2007 2006

Global Short-Term Notes 384,347 100,949
Global Medium-Term Notes 1,316,675 1,188,789
__ 1,701,022 1,289,738

Certificate of deposits comprise amounts payable under the Branch's Global Short-term Notes,
which were issued at face value of US$ 390,261 (2006 - US$ 98,830) with annual fixed rates
ranging from 5.20% to 22.00% (2006 - 8.00% to 22.00%) and CDI per annum, at December
31, 2007 and 2006, and the Global Medium-Term Notes, which were issued at face value of
US$ 1,286,332 (2006 - US$ 1,188,009) with annual fixed rates ranging from 4.50% to 17.10%
(2006 - 4.50% to 17.10%) per annum, at December 31, 2007 and 2006.

At December 31, 2007, the Branch's management reflected the portfolio of Global Medium-
term notes at market prices which resulted in a loss of US$ 584 (2006 - US$ 11,583, loss),
being included in "Net trading gain/(loss)" in the income statement.

Securities Sold under Repurchase Agreements

The Branch raises funds by selling financial instruments under agreements to repay the funds
by repurchasing the instruments at future dates at the same. price plus accrued interest at a,
predetermined.rate. Repurchase agreements are commonly used:as a tool for medium-term
financing of interest-bearing assets, depending on prevailing interest rates. Securities sold
under agreements to repurchase represent primarily Brazilian Federal Eurobonds, which were
sold by the Branch with a commitment to repurchase them. At December 31, 2007, these
agreements bore interest at rates ranging from 5.40% to 6.97% (2006 - 6.92% to 6.98%) per
annum.

Assets sold under repurchase agreements were as follows:

Carrying .
Fair value of Amount of Latest
underlying corresponding repurchase Repurchase
assets liabilities date price
At December 31, 2007
Securities held-for-trading 113,506 122,427 01.11.08 99,458
At December 31, 2006
Securities held-for-trading 48,045 32,904 03.12.08 32,019

Funds Borrowed

Funds borrowed comprise amounts advanced by financial institutions, which, at December 31,
2007, bear interest at rates ranging from 5.11% to 8.01% (2006 — 3.07% to 8.16%) per annum.

Other Liabilities

Other liabilities consist of payable to brokers and dealers in the amount of US$ 20,725 (2006 —
US$130,356), sale of collateral pledged to the Branch under resale agreement of US$ 17,827
(2006 — Nil), profit sharing bonus payable US$ 2,465 (2006 — Nil) and other payables in the
amount of US$ 581 (2006 - US$ 18,885). .

Maturity Analysis of Assets and °
Liabilities — current and non-current

The following table summarizes maturities of assets and liabilities, which are based on the
remaining period at the balance sheet dates to the contractual maturity dates:

THE TRIBUNE

2007 2006
Cash and cash equivalents

Within three months 487,624 321,604
487,824 _321,604

Credit collateral .
Within three months 395,796 2,133
Three months to one year 65,787 -
One to five years - 285,875
More than five years - 283,293
461,583 _571,301

Securities purchase under resale agreements
Three months to one year

Securities held-for-trading

Within three months 157,041 33,192
Three months to one year 232,547 ° 4,733
One to five years 924,920 862.276
More than five years 420,504 118,501
1,735,012 1,018,702
Securities held-to-maturity

Within three months 130,189 41,887
Three months to one year - 58,898
One to five years - 134,630
130,189 235,415

17,918 8,052

2007 2006
Loans and advances
Within three months 213,945 229,874
Three months to one year 135,400 147,688
One to five years 1,066 70,310
More than five years - 7,557
350,411 455,429
Other assets
Within three months 50,350 185,996
Three months to one year 79,847 22,575
One to five years 139,798 57,176
More than five years 2,738 5,307
272,733 271,054
Demand deposits
Within three months 4 151
Linked deposits
Within three months 5,780 11,873
Three months to one year - 794
One to five years - 3,385
5,780 16,052
Credit linked notes
Within three months ---—— - 34,794
Three months to one year - 68,836
- 103,630
Equity linked notes
Within three months 35,144 14,803
Time deposits — customers
Within three months 267,210 97,239
Three months to one year 70,790 146,063
338,000 243,302
Certificate of deposits
Within three months 366,762 79,202
Three months to one year 249,337 130,383
~ One to five years 444,650 568,806
More than five years 640,273 511,347
1,701,022 1,289,738
Securities sold under repurchase agreements
Within three months 69,611 21,493 .
Three months to one year 52,676 -
One to five years - 11,411
122,287 32,904
Funds borrowed
Within three months 476,023 271,243
Three months to one year 124,093 102,033
One to five years 145,684 228,594
745,800 601,870
Other liabilities
Within three months 51,208 143,590
Three months to one year 208 293
One to five years 12,371 7,125
More than five years 2,343 9,308
66,130 160,316
17 Related Party Transactions and Balances
-» (Banco Votorantim S.A.; Votorantim-Bank Limited,
Votorantim International Business Limited and Raltic S.A.)
Related party balances outstanding at the year end and related expenses and income for the
year are as follows:
2007 2006
Assets
Securities held-for-trading 642,404 273,483
Loans and advances 81,076 241,477
Derivatives financial instruments 75,578 53,962
Liabilities
Other liabilities 2,531 -
Income statement /
Interest income on due from banks - interest bearing deposits - 424
Interest income on securities held-for-trading 24,034 15,162
Interest income on loans and advances 6,733 8,511
Net trading loss — derivatives 63,446 65,893
Administrative expenses (key management personnel costs) (1) 6,300 13,461
Administrative expenses — other 613 487
Other expenses 1,664 :
Administrative expenses represent technical services rendered by Raltic S.A., an affiliate
during the year in accordance with a service agreement.
(1) During the years 2007 and 2006 the Branch incurred profit sharing expenses payable to
management of the Bank in the amounts of US$ 6,300 and US$ 13,461, respectively.
18 Derivative Financial Instruments

The Branch engages in a variety of transactions in derivative financial instruments in
connection with the management of market risk and proprietary trading activities. The notional
amount of derivative financial instruments is not recorded in the balance sheet and may only
indicate the Branch's degree of use of derivatives. During the year ended December 31, 2007,
the Branch recorded a net gain in the amount of US$ 232,840 (2006 - US$ 213,523) from
derivative instruments, which has been recognized in "Net trading gain" in the income

statement.

The Branch's open positions are summarized as follows:

Notional
Type of instrument amount Fair value
December 31, 2007
Forward - U.S. dollar/Reais 432,000 7,144
Forward - U.S. dollar/Euro . 2,026 61
Futures treasuries 122,493 14,504
Commodities swap 2,224 28
Interest rate swap contract 1,343,840 190,407
Credit default swap 526,000 25,812
First to default swap 565,000 3,253
Derivative financial assets 241,209
Interest rate swap contract 848,850 (12,725)
Commodities swaps 12,933 (810)
Credit default swap 1,069,923 (2,566)
Forward - U.S. dollar/Reais 50,000 (2,250)
Forward - U.S. dollar/Euro 3,894 (155)
Futures treasuries 181,180 (6,026)
Derivative financial liabilities (24,532)
December 31, 2006
Forward - U.S. dollar/Reais 484,106 1,485
Interest rate swap contract 1,330,333 83,780
Credit default swap 611,000 4,870
. First to default swap 510,000 963
Premium options — index 124,400 21,114
Derivative financial assets 112,212
Interest rate swap contract 817,072 (10,733)
Credit default swap 580,000 (69)
Forward - U.S. dollar/Reais 125,000 (13)
Premium options - securities 35,000 (257)

Derivative financial liabilities

(11,072)
THE TRIBUNE

19

(a)

(ii)

(iii)

‘ (b)

(c)

Financial Risk Management

The Branch’s activities expose it to a variety of financial risks and those activities involve the
analysis, evaluation, acceptance and management of some degree of risk or combination of
risks. Taking risk is core to the financial business, and the operational risks are an inevitable
consequence of being in business. The Branch’s aim is therefore to achieve an appropriate
balance between risk and return and minimize potential adverse effects on the Branch’s
financial performance.

The Branch’s risk management policies are designed to identify and analyze these risks, to set
appropriate risks limits and controls, and to monitor the risks and adherence to limits by means
of reliable and up-to-date information systems. The Branch regularly reviews its risk
management policies and systems to reflect changes in market, praducts and emerging best
practices.

Risk management is carried out by a central treasury department (Group treasury) under
policies approved by the Board of Directors. Group treasury identifies, evaluates and hedges
financial risks in close co-operation with the Group’s operating units. The Board provides
written principles for overall risk management, as well as written policies covering specifics
areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivatives financial
instruments and non-derivatives financial instruments.

Liquidity risk

>
This is the risk that the Branch is unable to meet its payment obligations associated with its
financial liabilities when they fall due and to replace funds when they are withdrawn. The
Branch manages its liquidity by matching as far as possible liabilities with assets of similar
maturity periods. The. relevant. maturity groupings based on the remaining period at the
balance sheet date to the contractual maturity date are as follows, considering an
undiscounted cash flow: .

Non-derivative cash flows

As of December 31, 2007

Over five
Up to Up to One to years or
one month one year five years Undated Total
$ $ $ $ $
Demand deposits 4 - : - 4
Linked deposits - 5,829 - - §,829
Equity linked notes 19,510 16,659 - : 36,169
Time deposits — customers 186,747 154,786 ss - 341,533
Certificate of deposits — customers 128,447 594,279 1,105,010 300,124 2,127,860
Securities sold under repurchase agreements 319 125,990 11,865 9,781 147,955
Funds borrowed 27,924 223,325 567,715 3,492 822,456
Other tiabilities 12,655 . 2,921 71 16,552 32,199
Total liabilities 375,606 * 4,123,789 1,684,661 329,949 3,514,005
mee
Total assets 885,827 897,323 1,583,654 770,765 4,137,569
eee
Liquidity assets 510,221 (226,466) (101,007) 440,816 623,564
pee ee ee

As of December 31, 2006

Over five
Up to Up to One to years or
one month One year five years Undated Total
$ $ $ $ $
Demand deposits 151 - : - 151
Linked deposits 6,402 5,978 4,127 - 16,507
Credit linked notes 23,952 94,283 : 118,235
Equity linked notes 2,305 12,884 - - 15,189
Time deposits — customers 161 248,260 - - 248,421
Certificate of deposits — customers 28,890 318,564 1,174,830 102,360 1,624,644
Securities sold under repurchase agreements 21,866 1,055 15,585 6,471 44,977
Funds Borrowed 4,845 102,568 598,220 3,28¢ 708,914
Other liabilities 16,840 12 : 124,357 141,209
Total liabilities 105,412 783,604 1,792,762 236,469 2,918,247
eee
Total assets 730,688 752,822 1,504,615 502,630 3,490,755
meee
Liquidity assets 625,276 (30,782) (288,147) 266,161 572,508
eee eee

Derivative cash flows — settled on a net basis
The Branch’s derivatives that will be settled on a net basis include:

° Foreign exchange derivatives: over-the-counter (OTC) non deliverable forward
e Interest rate derivatives: over-the-counter (OTC) interest rate swap ~

The table below analyses the Branch’s derivative financial liabilities that will be settled on a net
basis into relevant maturity groupings based on the remaining period at the balance sheet to
the contractual maturity date. The amounts disclosed in the table are the contractual
undiscounted cash flows.

_ As of December 31
Over five
Up to Up to One to years or
one month One year five years Undated Total
$ $ $ $ $
Derivatives held for trading — 2007
Foreign exchange derivatives 2,250 - - - 2,250
Interest rate derivatives 1,195 486 22,448 13,304 37,433 °
Derivatives held for trading — 2006
Foreign exchange derivatives - 12 - - 12
Interest rate derivatives 2,716 8,473 13,332 573 25,094

Derivative cash flows — settled on a gross basis
The Branch’s derivatives that will be settled on a gross basis include:

e Foreign exchange derivatives: over-the-counter (OTC) non deliverable forward
The table below analysis the Branch’s derivative financial liabilities that will be settled on a
gross basis into relevant maturity groupings based on the remaining period at the balance

sheet to the contractual maturity date. The amounts disclosed in the table are the contractual
undiscounted cash flows.

As of December 31
Over five
Up to Up to One to years or
one month One year five years Undated Total”
$ $ $ $ $
Derivatives held for trading — 2007
Outflow : 3,201 2,908 71 - 6,180
Inflow 11,035 3,530 : - 14,566
Derivatives held for trading — 2006
Outflow - : - - -
Inflow - 367 : : 367

Market risk
Market risk is managed on a consolidated basis by the Votorantim Group.

Votorantim Group performs operations involving derivative financial instruments, operating in
organized and over the counter markets, in order to ensure the management of market risk
appropriate to the Group policy.

Market risk management is performed centrally, by the administrative area, which is
independent from the operations desk and is also monitored by the Risks Committee,
comprising the board of executive officers and vice presidency of Banco Votorantim S.A.,
which meet periodically to assess the risks and define operating limits. The basic procedures
for risk management are as follows: a) monitoring the adequacy of positions and risks
compared with the limits established by the Risks Committee and legal limits; b) integrity of the
pricing of assets and derivatives; c) evaluation of the market risk using the “Value at Risk”
methodology and by simulating scenarios; d) keeping track of daily results using the back-test
methodology.

The policy for managing market risk also considers the use of derivative financial instruments
for hedging positions to meet the demand of counterparties and as a means of reversing
positions at times of significant oscillations. The operations observe the limits agreed by the
Committee and imposed by legislation, after analyzing credit and liquidity risks, when
appropriate, when they involve the liquidity and credit policies and the decisions of the
respective Committee. : :

Currency risk ‘

The Branch attempts to manage currency and interest rate risks by monitoring transactions to
ensure that the exposure to particular currencies/rates does not exceed established limits.

These limits are established using the Value at Risk - VaR methodology. The Branch also
attempts to reduce currency risks by entering into transactions such as currency forwards.

The Branch's transactions gives rise to foreign currency gains and losses that are recognized
in the income statement. These exposures comprise the monetary assets and monetary
liabilities of the Branch that are not denominated in its functional currency, net of derivative
transactions as of the balance sheet date. These foreign currency exposures denominated in
United States dollars were as follows:

(e)

(f)

(9)

20

21

22

WEDNESDAY, APRIL 30, 2008, PAGE 13B

Reais
____ 2007, 2006
Bank deposits denominated in Reais 12 -
Eurobonds denominated in Reais 127,156 15,085
Swap denominated in Reais 1,470,767 448,704
Forward denominated in Reais 81,054 196,934
Total assets denominated in Reais 1,678,989 660,723
Certificate of deposits denominated in Reais 784,648 515,980
Swap denominated in Reais 610,166 140,135
Time deposits denominated in Reais 374,555 4,023
Total liabilities denominated in Reais 1,769,369 660,138
Net exposure denominated in Reais (90,380) 585
Euro
2007 2006 -
Bank deposits denominated in Euro 23 -
Eurobonds denominated in Euro 1,485 -
Overnight deposits denominated in Euro 2,357 -
Forward denominated in Euro 2,088 108
Total assets denominated in Euro . 5,953 108
Medium Term Notes in Euro 1,989 -
Forward denominated in Euro 4049, :
Total liabilities denominated in Euro 6,038 -

Net exposure denominated in Euro

(85) 108

Foreign currency gain for the year totalled US$ 2,847 is included in “Other income” (2006 -
US$ 165 - loss is included in "Other expenses") in the income statement.



As of December 31, 2007, the Branch has no derivative instruments designated as hedges for
accounting purposes.

Credit risk

Credit risk is the risk that a counterparty will cause a financial loss to the Branch by failing to
perform according to the terms of the contract. Credit exposures arise mainly in lending
activities that lead to loans and advances, and investment activities that bring debt securities
and other bills into the Branch’s asset portfolio. There is also credit risk in off-balance sheet
financial instruments such as -loan commitments. The gross notional or contract amounts of
derivative financial instruments do not represent the Branch's exposure to credit risk. The
Branch's credit risk exposures at any given time is defined as the gross replacement value of
the total receivable balance under outstanding contracts, which are marked to market on a
daily basis. The Branch attempts to minimize its exposure to credit risk by dealing with
creditworthy counter-parties and through the use of various credit monitoring techniques,
including collateral policies and position and credit exposure limits which are based on the
financial condition of the applicable counterparties.

Interest rate risk

Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will
fluctuate becauge of changes in market interest rates. Fair value rate risk is the risk that the
value of a financial instrument will fluctuate because of changes in market interest rates.

The Branch’s interest bearing financial assets and liabilities consist of demand deposits, due
from banks — interest-bearing deposits, credit collateral, securities purchased under resale
agreements, securities held-for-trading, securities held-to-maturity, loans and advances,
derivative financial instruments, demand deposits, linked deposits, credit linked notes, equity
linked notes, time deposits — customers, certificate of deposits — customers, securities sold
under repurchase agreements, funds borrowed and other liabilities: The analysis of assets and.
liabilities disclosed under Note 16 Maturity Analysis of Assets and Liabilities is indicative of the -
analysis of interest bearing financial instruments at carrying value, categorized by maturity
dates. ;

At December 31, 2007, if the Brazilian sovereign yield had been 10 basis points higher/lower
with all other variables held constant the profit would have been US$ 14 (2006 — US$ 897)
lower/higher mainly as a result of decrease/increase in the fair value of fixed income bonds,
borrowings/fundings and derivatives. If the interest rate on Libor (London Interbank Offering
Rate) had been 10 basis point higher/lower with all other variables held constant the profit
would have been US$ 1,504 (2006 — US$ 852) lower/higher mainly as a result of
decrease/increase in the fair value of loans, collaterals and derivatives.

Additionally, the Group applies a “Value at Risk” methodology (VaR) to each trading portfolio to
estimate market risk of position held and the maximum losses expected, which is monitored
daily by Group Treasury.

Capital management

The Branch’s objectives when managing capital are to safeguard the Branch’s ability to
continue as a going concern in order to provide returns-for the shareholders of the Bank and
benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost
of capital. .

In order to maintain or adjust the capital structure, the Branch may adjust the amount of
remittances of earnings to Head Office, reduce or increase the amount due to Head Office or

_ sell assets to reduce financial liabilities.

Currently, the Branch does not have any financial liabilities for which it does not have liquid
assets to match, and its retained earnings are available for distribution to the Head Office, as
and when requested.

Assets and Liabilities Geographical Distribution

The following is a classification of assets and liabilities by geographical location:

_ Percentage

2007 2006
Assets
Brazil 58 51
Caribbean 2 5
United States 21 33
Europe 19 11
100 100
Percentage
2007 = 2006
Liabilities
Caribbean 25 22
United States . 17 23
Brazil 20 20
Europe 38 35
100 100

Other Expenses

Other expenses in the income stafement are composed by mainly commission and fee
expenses in the amount of US$ 1,454 (2006 - US$ 2,545), rendered services expenses in the
amount of US$ 67 (2006 - US$ 1,019) and brokerage fee US$ 336 (2006 — US$ 17).

Tax expenses are mainly represented by withholding tax on financial operations in the
Brazilian financial market, arising from derivative instruments and loans and advances, and
amounting to US$ 6,600 (2006 — US$7,526).

Corresponding Figures

Prior year figures in the income statement and cash flow statement have been reclassified to
ensure comparability and consistency with the financial statement presentation adopted for the
current year.
_PAGE 14B, WEDNESDAY, APRIL 30, 2008

THE TRIBUNE

C ORN ER =} Cornér Bank (Overseas) Limited

_ #8 Ernst & YOUNG

* Chartered Accountants # hon:
«Oy magihi Pace fu



Yee LST



Independent Auditors’ Report to the Shareholder and Directors of
Cornér Bank (Overseas) Limited

We have audited the accompanying consolidated balance sheet of Comér Bank (Overseas)
Limited (the “Bank”), which as at December 31, 2007, and a surumacy of significant accounting
policies and other explanatory notes. :

Management’s Responsibility for the Balance Sheet

Management is responsible for the preparation and fair presentation of the consolidated balance
sheet in accordance with International Financial Reporting Standards. This responsibility
includes: designing, implementing and maintaining internal control relevant to the preparation
and fair presentation of the balance sheet that is free from material misstatement, whether due to
fraud or error: selecting and applying appropriate accounting policies; and making accounting
estimates that are reasonable in the circumstances. ‘ :

Auditors’ Responsibility

Our responsibility is to express an opinion on the balance sheet based on our audit. We
conducted our audit in accordance with International Standards on Auditing. Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance whether the balance sheet is free from material misstatement. ,

An audit invelves performing procedures to obtain evidence about the amounts and disclosures
in the balance sheet. The procedures selected depend on the auutitors’ judgment, including the
assessment of the risks of material misstatement of the balance sheet, whether due to fraud or
error. In muking those risk assessments, the auditor considers intemal control relevant to the
entity’s preparation aod fair presentation of the balance sheet in order to design audit procedures
that are appropriate for the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entity’s internal control. An audit also. includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made
by management, as well as evaluating the overall presentation ofthe balance sheet.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion,

Opinion
In our opinion, the consolidated balance sheet presents fairly, in all material respects, the
financial pasition of the Bank as of December 31, 2007, in accordance with Intemational

Financial Reporting Standards.
Roamer + ft

A member fiem of Emst & Young Gabsl Lamuted

Apsil 14. 2008

Cornér Bank (Overseas) Limited
Consolidated Balance Sheet





December 31, 2007
2007 29)
Assets
Due from banks
Due from banks — sight CHF 46,556,543 CHF 43,397,973
Due from banks — time 648,211,614 622,173,460
Loans and advances, net (notes 3 and 4) 10,300,832 14,563,882
Accrued interest income 2,924,955 2,629,704
Other assets (note 5) 1,377,928 622,559
Total assets ‘CHF 709,371,872 CHF 683,387,578
Liabilities and shareholder’s equity
Liabilities
Due to banks
Due to banks - sight , CHF 27,894 CHF = 147,828
Due to banks - time 1,851,701 75,345
Due to customers (note 4)
Sight deposit 38,738,332 56,944,670
Time deposit : 573,084,052 542,809,276
_ Accrued interest 2,133,535 1,747,097
_.. Other liabilities — . 1,859,811 835,201
“Total liabilities *'* 617,695,325 602,559,417
Shareholder’s Equity (note 6)
Share capital
Authorized, issued and fully paid
10,000 shares of CHF 1,000 par value 10,000,000 10,000,000
Retained earnings - 81,676,547 70,828,161
Total shareholder’s equity 676,54 80,828,161
Total liabilities and shareholder’s equity CHF 709,371,872 CHF 683,387,578
Commitments and Contingencies (note 9)
Approved By The Board:
Dr. Paolo Cornaro Director Dr. Marco Cant Director



See accompanying notes.

Cornér Bank (Overseas) Limited
Notes to Consolidated Balance Sheet
December 31, 2007

1. Corporate Information

Cornér Bank (Overseas) Limited (the “Bank”) was incorporated under the laws of the Commonwealth of The Bahamas on
December 13, 1995. It is a wholly owned subsidiary of Cornér Banca, Lugano, Switzerland (the Parent). The Bank is
authorized to perform banking activities under The Bahamas Banks and Trust Companies Regulation Act 2000 to provide
offshore private banking and trust services. The principal activities of the Bank consist of providing banking and investment
management services.

The registered office of the Bank is located at Bayview House, East Bay Street, Nassau, Bahamas.

The consolidated balance sheet of the Bank for the year ended December 31, 2007, was authorized for issue by the Directors
on April 14, 2008. : ‘

2. Summary of Significant Accounting Policies

Statement of compliance ‘
The consolidated balance sheet has been prepared in accordance with International Financial Reporting Standards.

Basis of preparation

The consolidated balance sheet was prepared under the historical cost convention, except for financial assets and liabilities and
loans and advances, which are measured at fair value. The consolidated balance sheet is presented in Swiss Francs (CHF).
Swiss Francs reflect the economic substance of the operations and circumstances of the Bank.

Basis of consolidation .

The accompanying consolidated balance sheet comprises the balance sheet of the Bank and its wholly-owned subsidiaries,
C.B. Management Ltd. and C.B. Strategy Ltd. The financial statements of the subsidiaries were prepared using consistent
accounting policies. :

The subsidiaries were incorporated in the British Virgin Islands on January 23, 1997. The activities of the subsidiaries are to
serve as nominee shareholders, incorporator and director of International Business Companies on behalf of the Bank and its
customers.

The subsidiaries are fully consolidated from the date on which control is transferred to the Bank. Control is achieved where
the Bank has the power to govern the financial and operational policies of an entity so as to obtain benefits from its activities.

Adoption of IFRSs during the year :

The Bank has adopted the following new and amended IFRSs and IFRIC interpretations during the year. Adoption of these
revised standards and interpretations did not have any effect on the financial performance or position of the Bank. They did
however give rise to additional disclosures, including in some cases, revisions to accounting policies.

° IFRS 7
° TAS]

Financial Instruments: Disclosures
Amendment — Presentation of Financial Statements

The principle effect of the changes to the disclosures in the consolidated financial statements is as follows:

IFRS 7 Financial Instruments: Disclosures

This standard required disclosures that enable users of the financial statements to evaluate the significance of the Bank’s
financial instruments and the nature and extent of risks arising from those financial instruments. The new disclosures are
included throughout this:consolidated balance sheet. While there has been no effect on the financial position, comparative
information has been revised where needed.

IAS | Amendment — Presentation of Financial Statements
This amendment requires the Bank to make new disclosures to enable users of this balance sheet to evaluate the Bank’s
objectives, policies and processes for managing capital.

Foreign currency transactions and translations

The Bank’s consolidated balance sheet is presented in Swiss Francs, which is the Bank’s functional and presentational
currency, however it transacts business in other currencies. Monetary assets and liabilities denominated in other currencies are
translated into Swiss Francs at the rate of exchange in effect on the date of the consolidated balance sheet.

Financial assets
Financial assets in the scope of IAS 39 are classified as financial assets at fair value through profit or loss; loans and
receivables; held to maturity investments; or as available-for-sale financial assets, as appropriate. The Bank determines the
classification of its financial assets at initial recognition and re-evaluates this designation at each financial year end. All

’ financial assets are measured initially at their fair value.

All regular way purchases and sales of financial assets are recognised on the trade date, being the date that the Bank commits to
purchase or sell the asset. Regular way transactions require delivery of assets within the timeframe generally established by
regulation or convention in the market place. The subsequent measurement cf financial assets depends on their classification.

At December 31, 2007 the Bank’s primary financial assets are represented by loans and advances and due from banks. After
initial measurement, loans and advances and due from banks are measured as follows:

Loans and advances and due from banks

Loans and advances and due from banks are financial assets with fixed or determinable payments and fixed maturities that are
not quoted in the active market. They are not entered into with the intention of immediate or short-term resale and are not
classified as, available-for-sale or financial assets designated at fair value through profit or loss. After initial measurement, loans
and advances and due from banks are subsequently measured at amortized cost using the effective interest rate method less
allowance for impairment, if any.

Impairment and uncollectibility of financial assets

An assessment is made at each balance sheet date to determine whether there is objective evidence that a financial asset may be’
impaired. If such evidence exists;the carrying amount of the asset is reduced to its estimated recoverable amount either directly
or through the use of an allowanc€%iccount. :

Loans and advances and due from banks

The Bank reviews its problem loans and advances at each reporting date to assess whether an allowance for impairment should
be recorded. In particular, judgment by management is required in the estimation of the amount and timing of future cash flows
when determining the level of allowance required. Such estimates are based on assumptions about a number of factors such as
the Bank’s past credit loss experience, known and inherent risks in the portfolio, adverse situations that may affect the
borrower’s ability to repay the estimated value of the underlying collateral and current economic conditions. In a subsequent
year, the amount of the recognized impairment loss is increased or reduced by adjusting the allowance account. If a future
write-off is later recovered, the recovery is credited to the ‘Credit loss’ expense.

Derecognition of financial assets and financial liabilities
Financial assets
A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is derecognized
where:
* the rights to receive cash flows from the asset have expired, or
° the Bank has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and
* either (a) the Bank has transferred substantially all the risks and rewards of the asset, or (b) the Bank has neither
transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Bank has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, and
has neither transferred nor retained substantially all the risks and, rewards of the asset nor transferred control of the asset, the
asset is recognized to the extent of the Bank’s continuing involvement in the asset. Continuing involvement that takes the form
of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum
amount of consideration that the Bank could be required to repay.
Financial liabilities
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. Where an
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original
liability and the recognition of a new liability. :

Derivative financial instruments

The Bank only engages in the purchase and sale of derivative financial instruments such as forward foreign exchange contracts
on behalf and on the instructions of its clients. It is currently not the Bank’s policy to trade in derivative financial instruments
for its own account.

The fair value of forward exchange contracts is calculated by reference to current forward exchange rates for contracts with
similar maturity profiles. Derivatives are accounted for in other assets and other liabilities.

Leases
Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases.

Cash and cash equivalents +
Cash and cash equivalents consist of due from banks at sight and due from banks at time with original maturities of three

months or less.

Fixed assets

All fixed asset acquisitions are expensed when incurred.

Taxation

There are no income taxes imposed on the Bank in the Commonwealth of The Bahamas.

Fiduciary activities
The Bank provides custody and administration of investments, investment management and advisory services to third parties.
Those assets that are held in a fiduciary capacity are not included in this consolidated balance sheet.

Provisions

Provisions are recognized when the Bank has a present obligation (legal or constructive) as a result of a past event, and it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.

~ Employee benefits

The Bank offers a defined contribution plan in which the plan’s assets are managed by a committee elected by members of the
plan. The pension plan is funded by its members as a fixed percentage of members’ salaries and contributions are matched by
the Bank.

IFRIC and IFRS Interpretations not yet effective
The Bank has not adopted the following IFRSs and IFRIC Interpretations that have been issued but are not yet effective:

The following IFRS and IFRIC Interpretations, are not expected to have any implications for the Bank when they become
effective. ‘

¢ IAS 23 Borrowing Costs Capitalization.

¢ IFRS 8 Operating Segments

¢ IFRIC 11 Group and Treasury Share Transactions with Employees
¢ IFRIC 12 Public-to-Private Service concession arrangements.

¢ IFRIC 13 Loyalty Award Credits.

° IFRIC 14 Assets of Defined Benefit Schemes.

3. Loans and Advances

Loans and advances are stated net of total provisions of CHF173,754 (2006 - CHF168,735) and generally are repayable in less
than a year. There were no loans written-off during the year nor were there any recoveries of arrears previously written-off.
Loans and advances represent fixed term loans, overdrafts on current accounts, and withdrawn credit lines. Loans are
collateralized primarily by cash deposits and marketable securities,

No loans to employees were included in loans and advances during the year (2006 - CHF 146,270). At December 31, 2007
there was one loan where interest was suspended in the amount of CHF173,754 (2006 - CHF168,735).

4. Customers by Domicile
At December 31, due from customers, classified by domicile of the borrower, are as follows (in thousands of CHF):

2007 2006

Bahamas and the Caribbean CHF 429 CHF = 1,175
Europe 1,275 3,384
Central and North America 8,545 10,005
Other 2 :
CHF 10,301 CHF 14,564

At December 31, customiers’ deposits, classified by domicile of the depositors, are as follows (in thousands of CHF):



2007 2006
Central and North America CHF 229,839 CHF 227,451 +
Bahamas and the Caribbean 263,114 229,465
Europe 73,427 101,984
Other 45,442 40.854
CHF 611,822 CHF 599,754
5. Other Assets
At December 31, other assets are comprised of the following (in thousands of CHF).
2007 2006
Fair value of derivatives - CHF 1,190 CHF -
Other 188 623
CHF = 1,378 CHF 623

6. Capital

The Bank maintains an actively managed capital base to cover risks inherent in the business. The adequacy of the Bank's capital
is monitored using, among other measures, the rules and ratios established by the Central Bank of The Bahamas.

During the past year, the Bank had complied in full with all its externally imposed capital requirements.

Capital management

The primary objectives of the Bank’s capital management are to ensure that the Bank complies with externally imposed capital
requirements and that the Bank maintains strong credit ratings and healthy capital ratios in order to support its business and to
maximize shareholders’ value.

Since incorporation it has been the Bank’s practice to fully retain profits as a means of reinforcing these objectives, and no
change in capital policies, objectives or a process are not contemplated, nor is a dividend expected to be declared.

The Bank will however continue to manage its capital structure and make any necessary adjustments to it in the light of changes
in economic conditions and the risk characteristics of its activities.

Regulatory capital consists of share capital and retained earnings including current year profit. At December 31, 2007 the
required capital of the Bank was CHF12,064,491 (2006: CHF11,877,557). At December 31, 2007 the actual capital of the Bank
was CHF91,676,547 (2006: CHF80,828,161).
THE TRIBUNE

7, Related Party Balances
All balances with the Parent and affiliated banks controlled by the Parent are shown in this consolidated balance sheet as
affiliates. These balances at December 31 are analyzed as follows (in thousands of CHF):



2007 2006
Parent bank:
Assets
Due from banks - sight CHF 28,483 CHF 27,282
Due from banks — time 122,297 134,401
Accrued interest and other assets 2,020 924
Total due from parent CHF 152,800 CHF 162,607
Liabilities
Due to banks — sight CHF - CHF = 123
Accrued interest and other liabilities 1 2
Total due to parent , CHF | CHF 125
Affiliated banks:
Assets
Due from banks — sight CHF 16,381] CHF 15,937
Due from banks — time 527,304 487,773
Accrued interest and other assets 2,029 1,952
Total due from affiliates (CHF 545,714 CHF 505,662
Liabilities
Due to banks — time CHF 1,880 CHF 75
Accrued interest and other liabilities 50. 106
Total due to affiliates CHF 1,930 CHF 181

8. Employee Pension Plan
The Bank has a defined contribution pension plan managed and held by an external third-party that covers the majority of its
employees. Contributions to the plan amounted to CHF51,754 in 2007 (2006 - CHF51,166).

9. Commitments and Contingencies

Derivative financial instruments ‘

The Bank enters into forward currency contracts solely as part of its client-related asset management activities or upon
customer instructions. Forward currency contracts are contracts to purchase and to sell foreign currencies at specific rates of
exchange on specific dates in the future. Risk arises from the potential inability of counterparties to perform under the terms
of the contracts (credit risk) and from fluctuations in the foreign exchange rates (market risk).

The contract amounts of open forward currency contracts on December 31, (in thousands of CHF) were as follows:

2007 2006
Commitments to purchase CHF 100,314 CHF 160,719
Commitments to sell CHF 100,319 CHF 160,704

The contract amounts of these instruments reflect the extent of the Bank’s involvement in forward currency contracts
undertaken on behalf of and at the risk of its customers.

Guarantees

The Bank makes available to its customers guarantees which may require that the Bank makes payments on their behalf in
the event of fulfillment or non-fulfillment of pre-established conditions. At December 31, 2007, the Bank was contingently
liable for CHF91,847,400 (2006 - CHF96,002,692) as a result of financial guarantees and letters of credit issued on behalf of
its customers. These guarantees are fully secured by clients’ assets held with the Bank or affiliates.

Lease agreement

The Bank entered into a new ten-year operating lease with Bayview House Limited that commenced on February 1, 2007. As
of December 31, 2007, CHF230,327 (2006 — CHF 230,917) in expenses were attributable to the current lease. The future’
estimated minimum annual rentals under this lease agreement on December 31, 2007 (in thousands of CHF) are as follows:

Within one year CHF = 148
After one year but not more than five years 774
More than five years 510

CHF 1,432

10. Risk Management

General

Risk is inherent in the Bank’s activities but it is managed through a process of ongoing identification, measurement and
monitoring, subject to risk limits and other controls. The process of risk management is critical to the Bank’s ongoing
profitability and each individual within the Bank is accountable for the risk exposures related to their responsibilities. The
Bank is exposed to credit risk, liquidity risk and market risk. The Bank is also subject to general operating risks.

The independent risk control process does not include business risks such as changes in the environment, technology and
industry. These risks are managed through the Bank’s strategic management processes.

Risk management structure

The Bank’s risks are measured using a method which retlects both expected and unexpected losses. The risk measurements
are based on historical experiences, adjusted for changes in the banking industry and other environmental factors. The Bank
also operates within the limits provided by its Parent and its regulators. The Board of Directors is ultimately responsible for
identifying and controlling risks such as credit, interest rate and liquidity. In addition, the Bank monitors its aggregate risk
exposure across all risks types and activities.

Risk mitigation as

The Bank uses derivatives and other instruments to manage exposures related to the portfolio management activities executed
on behalf of its clients. For its own account, the Bank does not hold any trading or investment positions in financial
instruments such as derivatives or other types of tradable securities (e.g. stocks, bonds, options). The Bank only lends to
established customers and only when fully collateralized by liquid assets.

Credit risk

Credit risk is the risk that a customer or counterparty will be unable or unwilling to meet a commitment that it has entered
into with the Bank. The Bank manages credit risk associated with deposit assets by making placements primarily with other
affiliate banks but may also do so with financial institutions contained within the confirmed aggregation as established by the
group. Customer credit is monitored on a daily basis by management.

Credit risk arises principally from financial assets. The Board of Directors is responsible for setting book, portfolio and
individual credit limits and these are monitored on an ongoing intra-day basis.

Maximum exposure to credit risk without taking account of any collateral and other credit enhancements

The table below shows the maximum exposure to credit risk for the components of the consolidated balance sheet, including
derivatives on December 31. The maximum exposure is shown gross, before the effect of mitigation through the use of
collateral agreements.





2007 2006
Due from banks CHF 694,768 CHF. 665,571
Loans and advances 10,301 14,563
Accrual interest income 1,378 2,630
Other assets 2,925 623
Total 709,372 683,387
Contingent liabilities (note 9) 91,847 96,002
Commitments (note 9) 235 245
Total 92,082 96,247
Total credit risk exposure CHF 801,454 CHF 779,634

Additional information on the maximum credit exposure related to the classes of financial assets noted above may be found
in the specific notes related to each of the assets. :

Risk concentrations of the maximum exposure to credit risk
The maximum credit exposure to any client or counterparty as at December 31, 2007 before taking account of any credit
enhancements is the amounts due from banks which are held with the Bank as presented on the consolidated balance sheet.

The amount and type of collateral required depends on an assessment of the credit risk of the counterparty. Guidelines are
implemented regarding the acceptability of types of collateral and valuation parameters.

Risk concentrations of the maximum exposure to credit risk (continued)

Management monitors the market value of collateral, requests additional collateral in accordance with the underlying
agreement, and monitors the market value of collateral obtained during its review of the adequacy of the allowance for
impairment losses.

Group transactions and balances are guaranteed by the Parent.

Credit quality per class of financial assets __

The credit quality of financial assets is managed by the Bank using internal credit ratings which are based on the Asset
Classification Rating System according to the Guidelines for the Management of Credit Risks issued by the Central Bank of
The Bahamas for loans and advances. .

The Bank’s loan portfolio at December 31, 2007 is fully collateralized and is classified as standard grade. At December 31,
2007, there were no loans that were considered past due and impaired except for the loan noted in note 3.

Credit risk exposure for each internal risk rating .

The purpose of credit rating is to provide a simple, but effective and ongoing system of credit risk gradation by which
relative credit worthiness of borrowers may be identified and accordingly the level of credit enhancements, degree of
monitoring, frequency of reviews, level of provisioning can be determined and pricing can be determined. Credit rating
would reflect both the likelihood of default and any possibility of financial loss suffered in the event of default.

The Bank conducts an impairment assessment on each of its loans monthly. The main considerations for the loan impairment
assessment include whether any payments of principle or interest are overdue by more than 90 days or there are any known
difficulties in cash flows of counterparties or the quality of collateral. The Bank addresses impairment on an individual basis,
assessing each individual credit facility. The Bank has no history of defaults.

Liquidity risk management

Liquidity risk is the risk that the Bank will encounter difficulty in realizing assets or otherwise raising funds to meet
commitments. The Bank monitors expected cash outflow on a daily basis. Its policy throughout the year has been to ensure
liquidity by maintaining at all times sufficient high quality liquid assets to cover expected net cash outflow.

The contractual maturities of assets, liabilities and shareholder’s equity have been determined on the remaining period at the
balance sheet date to the contractual maturity date. The maturity profile is monitored by management to ensure adequate
liquidity is maintained. It is the policy of the Bank to match all deposits with a placement of similar maturity (and
vice-versa) thus ensuring the lowest possible liquidity risk profile. The Bank depends on commitments from its Parent for
funding in emergency situations. The Bank is also subject to regulatory guidelines related to liquidity requirements.

LUGANOLOCARNOLAUSANNELUXEMBORGMILANNASSAUASCONA CASSARATEMASSACNOPARADISOPREGASSONA

anit yen

/

WEDNESDAY, APRIL 30, 2008, PAGE 15B

The table below summarizes the maturity profile of the Bank’s assets, liabilities and shareholder's equity, presented in order of
maturity as at December 31, (in thousands of CHF): :



















2007
More Non-
. Due on Less than 3-12 than 12 ‘maturity
demand 3 months months —_ months items Total
Assets
Due from banks - sight CHF 46,556 CHF - CHF - CHF - CHF - CHF 46,556
Due from banks - time - 549,305 26,692 72,215 - 648,212
Loans and advances - 1,404 613 8,284 - 10,301
Other assets - - - 1,378 - 1,378
Accrued interest income 6 834 326 1,759 - 2,925
Total assets CHF 46,562 CHF 551,543 CHF 27,631 CHF 83,636 CHF - CHF 709,372
Liabilities and
shareholder’s equity
Due to banks - sight CHF 28 CHF - CHF - CHF - CHF - CHF 28
Due to banks - time - 1,239 447 166 - 1,852
Due to customers - sight 38,738 - - - - 38,738
Due to customers - time - 482,015 26,692 64,377 - 573,084
Accrued interest 1,860° - - - - 1,860
Other liabilities 947 838. 326 22 - 2,133
Shareholder’s equity : : : : 91,677 91,677
Total liabilities and
sharéholder’s equity CHF 41,573 CHF 484,092 CHF 27,465 CHF 64,565 CHF 91,677 CHF 709,372
2006
More Non-
Due on Less than 3-12 thani2 Maturity
Demand 3 months months months Items Total
Assets ,
Due from banks - sight CHF 43,398 CHF - CHF -CHF - CHF - CHF 43,398
Due from banks - time - 578,577 27,719 15,877 - 622,173
Loans and advances - 146 - 14,418 - 14,564
Accrued interest income 2,630 - - - - 2,630
Other assets 622 - - - - 622
Total assets CHF 46,650 CHF 578,723 CHF 27,719 CHF 30,295 CHF —- CHF 683,387
Liabilities and
sharholder’s equity
Due to banks - sight CHF: 148 CHF - CHF - CHF - CHF - CHF 148
Due to banks - time - 75 - - - 75
Due to customer - sight 56,945 - - - - 56,945
Due to customer - time - 499,213 27,719 15,877 - 542,809
Accrued interest 1,747 - - - - 1,747
Other liabilities 835 - - - - 835
Shareholder’s equity = - 7 - 80,828 80,828
Total liabilities and ; ;
shareholder’s equity CHF 59,675 CHF 499,288 CHF 27,719 CHF 15,877 CHF 80,828CHF 683,387

All contingent liabilities and commitments are due on demand.

Market risk

Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of changes in
market variables such as interest rates or foreign exchange rates. The Bank does not have any trading positions. All positions
are managed and monitored using sensitivity analyses. The Bank has no significant concentrations of market risk.

Interest rate risk

Exposure to interest rate risk is the risk that arises where there is an imbalance between rate and non rate-sensitive assets and
liabilities. It is the Bank’s policy to match all deposits with a placement of similar maturity (and vice-versa) thus essentially
negating this risk. The Bank has performed an interest rate sensitivity analysis and determined the impact due to change in
interest rates was immaterial as any gains in the matched assets were offset by decreases in the matched liabilities.

Currency risk

Foreign currency risk is the risk that the value of a financial instrument will fluctuate because of changes in foreign exchange
rates. The Bank’s foreign exchange exposure arises from providing services to customers. The Bank’s policy is to hedge
against foreign exchange risk by matching currency liabilities with currency assets. Currency exposure is monitored on a daily
basis and reviewed by management.

In addition to the Bank’s policies regarding currency risk, regulatory guidelines of the Central Bank of the Bahamas also
requires the monitoring of financing assets and financial liabilities based on currency to limit the exposure to foreign currency
fluctuations in the market.

The following is an analysis of assets, liabilities and shareholder’s equity on December 31, 2007 by currency (in thousands of
CHF): ; bs



2007

rr USD CHF EURO OTHERS TOTAL
Assets : ‘

Due from banks - sight CHF 9,146 CHF 18,319 CHF 15,753 CHF 3,339 CHF 46,557

Due from banks - time 120,542 142,240 353,493 31,936 648,211

Loans and advances 4,492 ° 299 3,856 1,654 10,301

Accrued interest income - 2,925 - - 2,925

Other assets 647 611 75 45 1,378
Total assets CHF 134,827 CHF 164,394 CHF 373,177 CHF 36,974 CHF 709,372

Liabilities and shareholder’s
equity

Due to banks - sight CHF - CHF - CHF - CHF 28 CHF 28
Due to banks - time - - 612 1,240 1,852
Due to customers - sight 12,127 4,193 18,828 3,590 38,738
Due to customers - time 120,542 67,220 353,386 31,936 573,084
Accrued interest 626 1,136 64 34 1,860
Other liabilities - 2,134 - - 2,134
Shareholder’s equity - 91,676 - - 91,676

Total liabilities and shareholder’s
equity | CHF 133,295 CHF 166,359 CHF 372,890 CHF 36,828 CHF 709,372
2006
USD CHF EURO OTHERS TOTAL

~ Assets

Due from banks — sight CHF 7,967 CHF 12,902 CHF 19,610 CHF 2,919 CHF 43,398
Due from banks — time 130,579 112,545 345,093 33,956 622,173
Loans and advances 809 5,338 7,795 622 14,564
Accrued interest income - 2,630 - - 2,630
Other assets 48 563 ll 622

Total assets CHF 139,355 CHF 133,463 CHF 373,061 CHF 37,508 CHF 683,387

Liabilities and shareholder’s
equity

Due to bank - sight CHF 24 CHF - CHF - CHF 124 CHF 148
Due to bank - time - - - 715 75
Due to customers - sight 14,645 8,319 30,295 3,686 56,945,
Due to customers - time 129,360 37,590 342,522 33,337 542,809
Accrued interest - 1,747 - - 1,747
Other liabilities - 804 31 - 835
Shareholder’s equity - 80,828 - - 80,828
Total liabilities and shareholder’s

equity CHF 144,029 CHF 129,288 CHF 372,848 CHF37,222 CHF 683,387

Excessive risk concentrations

Concentrations arise when a number of counterparties are engaged in similar business activities, similar geographic regions or
have similar economic features which may cause their ability to meet contractual obligations to be similarly affected by
changes in economic, political and other conditions. Concentrations indicate the relative sensitivity of the Bank’s performance
to developments in a particular industry or geographic region.

In order to avoid excessive concentrations of risk, the Bank’s policies and procedures include specific guidelines to focus on
maintaining diversified portfolios. In addition to the Bank’s own policies and procedures, regulatory guidance related to the
concentration of risks must also be adhered to.

The distribution of assets and liabilities at December 31, (in thousands of CHF) by geographic region was as follows:
2007



2006

Assets Liabilities Assets Liabilities

Switzerland CHF - 152,117 CHF 29,163 CHF 161,645 CHF 44,779
Western Europe * 544,853 46,420 507,303 57,435
Bahamas & Caribbean 3,791 266,339 14,439 459,491
Other 8.611 275,773 : 40,854
CHF — 709,372 CHF 617,695 CHF 683,387 CHF 602,559

* excluding Switzerland

Operational risk

Operational risk is the risk of loss arising from systems failure, human error, fraud or external events. When controls fail to
perform, operational risks can cause damage to reputation, have legal or regulatory implications, or lead to financial loss. The
Bank cannot expect to eliminate all operational risks, but through a control framework and by monitoring and responding to
potential risks, the Bank is able to manage the risks. Controls over these risks include effective segregation of duties, access,
authorization and reconciliation procedures, staff education and assessment processes, including the use of internal controls.
The Bank carries out a regular review of all operational areas to ensure operational risks are being properly identified,
controlled and reported. Contingency plans are in place to achieve business continuity in the event of serious disruptions to
business operations.

11. Fair Value of Financial Instruments

Financial instruments utilized by the Bank include recorded assets and liabilities, as well as items that principally involve
off-balance sheet risk. The majority of the Bank’s financial instruments are either short-term in nature or have interest rates
that automatically reset to market on a periodic basis. Accordingly, the estimated fair value is not significantly different from
the carrying value for each major category of the Bank’s recorded assets and liabilities.
PAGE 16B, WEDNESDAY, APRIL 30, 2008

CAXSUTUAN KPMG Telephone 24? 29° 200/

PO Box N 123 Fax 242 393 17/2
Montague Sterling Centre Internet www kprag com bs
East Bay Sureet

Nassau, Bahamas

INDEPENDENT AUDITORS' REPORT

To: the Sharehoider
Cuscatlan International Bank & Trust Limited

We have audited the accompanying balance sheet of Cuscatlan International Bank & Trust
Limited (‘the Bank") as at December 31. 2007, and a summary of significant accounting policies
and other expianatory notes (together “the financial statement’).

Management's Responsibility for tne Financial Statement

Management is responsible for the preparation and fair presentation of this financial statement in
accordance with International Financial Reporting Standards ("IFRS"). This responsibility includes:
designing, implementing and maintaining internal controi relevant to the preparation and fair
presentation of the financial.statement that is free from material misstatement, whether due to
fraud or error, selecting and applying appropriate accounting policies; and making accounting
estimates thai are reasonable in the circumstances.

Auditors’ Responsibility

Our responsibility is to express an opinion on this financial statement based on our audit. We
conducied our audit in accordance with International Standards on Auditing. Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance wheiher the financial statement is free of material misstatement.

An audit involves performing procedures to abtain audit evidence about the amounts and
disclosures in the financial statement. The procedures selected depend on our judgment,
inciuding the assessment of the risks of material misstatement of the financial statement, whether
due to fraud or error. In making those risk assessments, we consider internal control relevant to
the Bank’s preparation and fair presentation of the financial statement in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Bank’s internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates, if
any, made by management, as well as evaluating the overall presentation of the financial
statement.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a

desis for our audit opinicn.
Opinion

In our opinion, the financial statement presents fairly, in all material respects, the financial position
of the Bank as at December 31, 2007 in accordance with IFRS.

Emphasis of Matter

Without qualifying our Opinion we emphasize that this financial Statement does not comprise a
complete set of financial statements prepared is'sccorgance with IFRS. Information on results of
Operations, cash flows and changes in equity is necessary to obtain a complete understanding of
the financial position, performance and cash flows of the Bank.

KPMG
Nassau, Bahamas
March 7, 2008

CUSCATLAN INTERNATIONAL BANK & TRUST LIMITED
Balance Sheet

December 31, 2007, with corresponding figures for 2006
(Expressed in United States dallars)







Notes ‘2007 2006
ASSETS. - ace
Cash and cash equivalents - Demand 5 $ 18,344,644 " (9,814,031
- Time : 2,250,000 12,640,944
4&5 20,594,644 22,454,975
Loans and advances to banks 6 11,334,516 5,000,000
Loans and advances to customers 4&6 217,449,321 204,313,127
Investments a 2,578,622 28,549,580
Accrued interest receivable 4,6&7 1,026,306 1,800,582
Accounts receivable 4&8 71,597 21,652
Furniture and equipment, net 9 161,921 249,775
Assets held for sale 10 2,476,896 3,583,580
Intangible assets 11 964,906 677,853
Other assets 96,517 119,278
Total assets ; $ 256,755,246 266,770,402
£8, IY BUS
LIABILITIES AND SHAREHOLDER'S EQUITY
Liabilities:
Demand deposits - Customers 4&12 $ 22,648,773 24,286,328
Demand deposits - Financial Entities 4&12 4,316,982 2,540,008
Time deposits - Customers 4&12 148,489,202 176,638,127
Time deposits - Financial Entities 12 11,524,315 9,550,000
Loans payable 4&13 44,799,417 28,059,127
Accrued interest payable 4 1,637,159 1,461,361
Accounts payable and other liabilities 4 565,110 415,087
Total liabilities 233,980,958 242,950,038
Shareholder's Equity:
Share capital: authorized, issued and fully paid
14,000 shares of $1,000 each 14,000,000 14,000,000
Unrealized (loss)/gain on investments 3 (344) 35,856

Retained earnings : 8,774,632 9,784,508

; 22,774,288 23,820,364
Commitments 14

ay LAL
Total liabilities and shareholder's equity $ 256,755,246 266,770,402

See accompanying notes to balance sheet.

This balance sheet was approved on behalf of the Boards of Directors on March 7, 2008
by the following:

1 lly

rico Bauer
Difector



stian Schneider
Director




‘

. CUSCATLAN INTERNATIONAL BANK & TRUST LIMITED

Notes to Balance Sheet

December 31, 2007
(Expressed In United States dollars)



1. . Reporting entity

Cuscatlan International Bank & Trust Limited (“the Bank”) was incorporated under the laws
of the Commonwealth of the Bahamas and is licensed by the Central Bank of the Bahamas
to engage in banking business. The Bank is a subsidiary of Grupo Financiero Cuscatlan de
Costa Rica, S.A (“the Group”) a Costa Rican company, which is wholly owned by
Corporacién Accionaria UBC, S.A. incorporated in Costa Rica, a 100% subsidiary of
Citibank Overseas ‘Investment Corporation (COIC), which is a direct subsidiary of Citibank,
NA. The Bank's registered office is located at 5th Floor Citigroup Building Thompson
Boulevard, P.O. Box N-9307 Nassau, Bahamas. A related party provides administrative
services to the Bank. The Bank is primarily involved in investment, corporate and retail
banking.

In July 2007, the Central Bank of Costa Rica solicited action plans from financial groups for
scaling back their offshore banking operations, without interrupting the financial system in
that country. The intent was to eliminate the offshore entities, whict: make it more difficult to
manage monetary policy.

The action plan of the Group (the parent company) proposes the elimination of the Bank by
first reducing its assets and liabilities with clients. This will be done by realizing assets in
the normal course of business and/or transferring/selling assets to related parties, settling
liabilities and then merging with Banco Cuscatlan de Costa Rica, S.A., which operates in
Costa Rica. This proposal was presented to the legal authorities in both Costa Rica and
The Bahamas and is in the process of being implemented.

THE TRIBUNE

As a result, the Bank intends to cease conducting banking business and return its banking
license to The Central Bank of The Bahamas by June 30, 2008.

Basis of preparation

(a)

(b)

(c)

(d)

Statement of compliance

The Bank's balance sheet has been prepared in accordance with International
Financial Reporting Standards (“IFRSs”).

In preparing this balance sheet, during the current year the Bank adopted IFRS 7
Financial Instruments: Disclosures and the amended IAS 1: Presentation of
Financial Statements. The adoption of IFRS 7 and the amendments to IAS 1
impacts the type and amount of disclosures made in this balance sheet, but has no
impact on the reported profits or financial position of the Bank. In accordance with
the requirements of these standards, the Bank has provided corresponding
information.

Basis of measurement

The balance sheet has been prepared on the historical cost basis except for
available-for-sale financial assets which are measured at fair value.

Management has determined that despite the decision to cease banking business
by June 30, 2008 and-merge with-Banco Cuscatlan de Costa Rica, S.A., the Bank
expects to recover the carrying value of all of its assets and settle its liabilities in full,
as they become due. In addition, because of the nature of the merger with Banco
Cuscatlan de Costa Rica, S.A., management has determined that there are no
matters that require adjustments to be made to the carrying value of assets and
liabilities at December 31, 2007 relating to the decision to cease banking business.
Accordingly, the basis of measurement described above is considered. to be
appropriate for the preparation of this balance sheet.

Functional and presentation currency

This balance sheetis presented in United States dollars, which is the Bank's
functional currency.

Use of estimates and judgments

The preparation of the balance sheet requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and the
reported amounts of assets and liabilities. Actual results may differ from these
estimates. Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognized in the period in which the
estimate is revised and in any future periods affected. .

In particular, information about significant areas of estimation uncertainty and
critical judgments in applying accounting policies that have the most significant
effect on the amounts recognized in the balance sheet are included in the following
notes:

e Fair value measurement — note 3(d) (iv) and note 22
e Impairment — note 3(d) (vii) and note 3(j) :
e Classification of financial instruments — Note 3 (d) (i)

Significant accounting policies

The accounting policies set out below have been applied consistently to all periods
presented in this balance sheet. .

(a)

(b}

Foreign currency
* The Bank's functional currency is the United States dollar. At December 31, 2007
and 2006, the Bank had no financial assets or liabilities denominated in currencies
other than the United States dollar.
Financial instruments
(i) Classification
Financial instruments include financial assets and financial liabilities.
_ In classifying financial assets in each of the categories described below, the
‘Bank has determined that it meets the description or criteria set out in the
accounting policies.
Financial liabilities include demand deposits, time deposits, loans payable,
accrued interest payable, accounts payable and other liabilities.
(ii) Recognition
The Bank initially recognizes loans and advances, deposit liabilities and loans
payable on the date that they are originated. All other financial assets and
liabilities are initially recognized on the trade date at which time the Bank
becomes a party to the contractual provisions of the instrument.
(iii) Measurement

e

Financial instruments are measured initially at fair value plus, with the
exception of financial assets or financial liabilities at fair value through profit
or loss and available-for-sale investments, transaction costs that are directly
attributable to the acquisition or issue of the financial asset or financial
liability. Transaction costs on financial assets and financial liabilities at fair
value through profit or loss and available-for-sale investments are expensed
immediately, while on other financial instruments they are amortized.

Subsequent to the initial recognition, financial assets classified as loans and
receivables and held-to-maturity investments are carried at amortized cost
using the effective interest rate method, less impairment losses, if any.
Financial liabilities are carried at amortized cost. Any sale or reclassification
of a significant amount of held-to-maturity investments not close to their
maturity. would result in the reclassification of all held-to-maturity investments
as available-for-sale, and prevent the Bank from classifying investment
securities as held-to-maturity for the current and the following two financial

years.

Subsequent to initial recognition, available-for-sale investments are carried ’
fair value and the change in the fair value is recognized directly in equity until
an asset is considered to be impaired, at which time the loss is recognized in
profit or loss. When the asset is sold, collected, or otherwise disposed of, the
cumulative gain or loss recognized in equity is transferred to profit or loss.

(iv) Fair value measurement

The determination of fair values of investments is based on quoted market: :
prices for similar assets traded in active markets. Unquoted equity securities
whose fair value cannot be reliably measured are carried at cost less ©
impairment. For all other financial instruments fair values are determined by
using valuation techniques, such as net present value and discounted cash
flow methods. Some or all of the inputs into these models may not be market
observable, and are derived from market prices or rates or are estimated
based on assumptions. When entering into a transaction, the financial
instrument is recognized initially at the transaction price, which is the best
indicator of fair value, although the value obtained from the valuation model
may differ from the transaction price.

(v) Derecognition

The Bank derecognizes a financial asset when the contractual rights to the
cash flows from the asset expire, or when the Bank transfers the rights to
receive the contractual cash flows of the financial asset in a transaction in
which substantially all the risks and rewards of ownership of the financial
asset are transferred. Any interest in transferred financial assets that is
created or retained by the Bank is recognized as a separate asset or liability.

The Bank derecognizes a financial liability when its contractual obligations
are discharged, cancelled or expired.

The Bank also derecognizes certain assets when it charges off balances
deemed to be uncollectible.
THE TRIBUNE

(vi) Offsetting

Financial assets and liabilities are set off and the net amount presented in the
balance sheet when, and only when, the Bank has a legal right to set-off the
amounts and intends either to settle on a net basis or to realize the asset and
settle the liability simultaneously.

(vii) Identification and measurement of impairment

(b)

At each balance sheet date the Bank assesses whether there is objective
evidence that financial assets not carried at fair value through profit or loss
are impaired. Financial assets are impaired when objective evidence
demonstrates that a loss event has occurred after the initial recognition of the
asset, and that the loss event has an impact on the future cash flows on the
asset that can be estimated reliably.

The Bank considers evidence of impairment at both a specific asset and a
collective level. All individually significant financial assets are assessed for
specific impairment. All significant assets found not to be specifically impaired
are then collectively assessed for any impairment that has been incurred but
not yet identified. Assets that are not individually significant are then
collectively assessed for impairment by grouping together financial assets
(carried at amortized cost) with similar risk characteristics.

Objective evidence that financial assets (including equity securities) are
impaired can include default or delinquency by a borrower, r